Advertising Principles and Practice, 8th Edition Moriarty Mitchell Wells Test Bank by Ace Test Banks

Advertising: Principles and Practice, 8th Edition by

Moriarty/Mitchell/Wells

Email: richard@qwconsultancy.com

CONTENTS Introduction

Part One: A Passion for the Business Chapter One: Introduction to Advertising ........................................................................1 Chapter Two: Advertising’s Role in Marketing .............................................................36 Chapter Three: Advertising and Society .........................................................................73

Part Two: Principle: Strategy is Creative, Too Chapter Four: How Advertising Works ........................................................................111 Chapter Five: The Consumer Audience ........................................................................144 Chapter Six: Strategic Research....................................................................................181 Chapter Seven: Strategic Planning................................................................................219

Part Three: Practice: Where are Media Heading? Chapter Eight: Media Basics and Print Media..............................................................252 Chapter Nine: Broadcast Media ....................................................................................286 Chapter Ten: Internet and Nontraditional Media ..........................................................324 Chapter Eleven: Media Planning and Buying ...............................................................359

Part Four: Principles: Creativity and Breakthrough Advertising Chapter Twelve: The Creative Side and Message Strategy ..........................................394 Chapter Thirteen: Copywriting .....................................................................................428 Chapter Fourteen: Design and Production ...................................................................461

Part Five: Principles: How to Win the Battle of the Buzz Chapter Fifteen: Direct-Response Marketing ..............................................................495 Chapter Sixteen: Sales Promotion, Events, and Sponsorships ....................................529 Chapter Seventeen: Public Relations ...........................................................................565 Chapter Eighteen: Special Advertising Campaigns .....................................................600 Chapter Nineteen: Evaluation of Effectiveness ...........................................................633

INTRODUCTION Welcome to the Test Item File for the Moriarty/Mitchell/Wells Advertising: Principles and Practice, 8th edition text. This test bank was designed with the student and instructor in mind. All questions in this manual are drawn directly from the master text.

New to the 8th Edition This Test Item File supports Association to Advance Collegiate Schools of Business (AACSB) International Accreditation

Each chapter of the Test Item File was prepared with the AACSB curricula standards in mind. Where appropriate, the answer line of each question indicates a category within which the question falls*. This AACSB reference helps instructors identify those test questions that support that organization’s learning goals. *Please note that not all test questions will indicate an AACSB category. What is the AACSB? AACSB is a not-for-profit corporation of educational institutions, corporations and other organizations devoted to the promotion and improvement of higher education in business administration and accounting. A collegiate institution offering degrees in business administration or accounting may volunteer for AACSB accreditation review. The AACSB makes initial accreditation decisions and conducts periodic reviews to promote continuous quality improvement in management education. Pearson Education is a proud member of the AACSB and is pleased to provide advice to help you apply AACSB Learning Standards.

What are AACSB Learning Standards? One of the criteria for AACSB accreditation is the quality of the curricula. Although no specific courses are required, the AACSB expects a curriculum to include learning experiences in such areas as: • Communication • Ethical reasoning • Analytical skills • Use of information technology • Multiculturalism and diversity • Reflective thinking These six categories are AACSB Learning Standards. Questions that test skills relevant to these standards are tagged with the appropriate standard. For example, a question testing the moral questions associated with externalities would receive the Ethical Reasoning tag. How can I use these tags? Tagged questions help you measure whether students are grasping the course content that aligns with AACSB guidelines noted above. In addition, the tagged questions may help to identify potential applications of these skills. This, in turn, may suggest enrichment activities or other educational experiences to help students achieve these goals. The learning objective for each question is also noted, where applicable. The objective refers to the number of the objective that is identified in the beginning of the chapter. Each chapter in the Test Item File contains 150 questions, with the following breakdown: 110 General Content questions: 70 Multiple Choice 35 True/False 5 Essay 40 Application Questions: 20 Multiple Choice 20 Short Answer Each question in the Test Item File is formatted with the question number, the question itself, potential answers, the correct answer, the difficulty scale, the page where the question and answer may be found in the textbook, the objective, and the AACSB topic. The page number suggests where the material for the question begins, not necessarily where it ends. The question information may continue to other pages, figures, or tables. For each chapter in the textbook, the questions within a given type of question in the Test Item File begin at the first page of the chapter and follow a logical sequence to the end of the chapter. Answers to essay and short-answer questions are provided for the convenience of the instructor. The answer provided in the Test Item File includes the information that was

given in the text for the instructor’s benefit. However, use discretion as to how much the student needs to provide to answer the question adequately. The application questions offer real-life situations that take students beyond basic chapter concepts and vocabulary covered in the General Content section, and ask them to apply concepts covered in the chapters. Before giving students examinations from the material contained in this Test Item File, the students should be encouraged to read and question the material in the textbook. They should also understand that a “best answer” will always be available to a question. Careful reading of the question to determine differences between potential answers would be prudent. In addition, students should be encouraged to read the opening vignettes, tables, and figures provided in each chapter of the textbook. There are questions in the Test Item File from these items.

The Difficulty Scale The instructor will notice the scale used at the end of each question. The scale is intended to aid the instructor in determining the degree of difficulty of the question and answer. The degree of difficulty scale appears as either “easy,” “moderate,” or “difficult.” Questions noted as “easy” do not require detailed knowledge of the topic, require only a casual reading of the text, and have rather obvious answers. The questions noted as “moderate” require the student to demonstrate understanding and see distinctions in the material offered in the text, while the questions noted as “difficult” require the student to synthesize and apply the information covered. Also, a question is labeled as “difficult” if it covers very specific information from the applied material in the chapter. Good luck with your course preparation, instruction strategies, and examination of your students. It is this author’s hope that this manual will help with your effort to conduct a successful and meaningful learning experience for your students. Should you have any difficulty with any questions or need assistance, please feel free to contact me. Thank you for using the Moriarty/Mitchell/Wells Advertising: Principles and Practice, 8th edition text. Mary M. Albrecht, Ph.D. Professor of Marketing Department of Marketing John E. Simon School of Business Maryville University – St. Louis 650 Maryville University Dr. St. Louis, MO 63005 (314) 529-9681 malbrecht@maryville.edu

CHAPTER ONE Introduction to Advertising

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

What of the following is NOT a stage in the evolution of advertising? a. identification b. information c. promotion d. pricing e. sales (d; moderate; pp. 7-8; LO4) In the early 20th century _______ was referred to by advertising legend Albert Lasker as "salesmanship in print driven by a reason why" which became the model for stating a claim and explaining the support behind it. a. advertising b. communications c. integrated marketing communications d. integrated communications e. product (a; difficult; p. 8; LO1; AACSB Communication) 2.

Which of the following is NOT a component of advertising? a. paid form of communication b. sponsor is identified c. usually personal in nature d. tries to inform, persuade, or influence the audience e. uses mass media (c; easy; p. 9; LO1; AACSB Analytical Skills) 4.

Paid persuasive communication that uses nonpersonal mass media to reach broad audiences—as well as other forms of interactive communication—to connect an identified sponsor with a target audience is known as ________. a. advertising b. personal selling c. public relations d. sponsorship e. marketing communication (a; easy; p. 8; LO1; AACSB Communication)

Part One: A Passion for the Business

Which of the following is NOT a fundamental concept of advertising? a. strategy b. creative idea c. creative execution d. media e. pricing (e; easy; p. 9; LO1; AACSB Communication) 6.

___________ is the logic and planning behind the advertisement that gives it direction and focus. a. Creative idea b. Execution c. Media d. Strategy e. Idea generation (d; easy; p. 9: LO1; AACSB Communication) 7.

Strategy, the creative idea, the creative executions, and the media must work in concert for an ad to be truly ________. a. efficient b. effective c. creative d. interesting e. entertaining (b; moderate; p. 9 [Figure 1.1]; LO1; AACSB Analytical Skills) 8.

In which fundamental concept of advertising does the advertiser develop the ad to meet specific objectives, carefully direct it to a certain audience, create its message to speak to that audience’s most important concerns, and run it in media that will reach its audience most effectively? a. advertising strategy b. creative strategy c. execution strategy d. media strategy e. evaluation strategy (a; easy; p. 9; LO1; AACSB Analytical Skills) 9.

The ________ is the ad’s central idea that grabs your attention and sticks in your memory. a. advertising strategy b. creative concept c. creative execution d. creative media e. tagline (b; moderate; p. 10; LO1; AACSB Communication)

Chapter One: Introduction to Advertising

10.

Which best describes a critical aspect of advertising that drives the entire field of advertising? a. strategic b. media c. nonpersonal d. mass e. creative (e; moderate; p. 9; LO1; AACSB Communication) 11.

Which fundamental concept of advertising involves the details, the photography, the writing, the acting, the setting, the printing, and the way the product is depicted all reflecting the highest production values available to the industry? a. advertising strategy b. creative idea c. creative execution d. creative media e. creative strategy (c; moderate; p. LO1; AACSB Communication) 12.

Which advertising approach uses reasons to persuade consumers? a. mass-sell b. logical-sell c. hard-sell d. soft-sell e. informative-sell (c; moderate; p. 11; LO2; AACSB Communication) 13.

Which advertising approach builds an image for a brand and attempts to touch consumers’ emotions? a. mass-sell b. logical-sell c. hard-sell d. soft-sell e. emotional-sell (d; moderate; p. 12; LO2; AACSB Communication) 14.

Which of the following is NOT a role that advertising plays in business and in society? a. marketing b. communication c. economic d. network e. all of the above (d; moderate; pp. 11-12; LO2; AACSB Communication)

Part One: A Passion for the Business

15.

Which of the following is a role advertising plays in business and in society? a. marketing b. communication c. economic d. societal e. all of the above (e; easy; pp. 11-12; LO2; AACSB Communication) 16.

The process a business uses to satisfy consumer needs and wants by providing goods and services is called ________. a. exchange b. economics c. marketing d. accounting e. value (c; easy; p. 11; LO2; AACSB Reflective Thinking) 17.

Computers, automobiles, and toothpaste are all examples of ________. a. services b. ideas c. exchanges d. goods e. markets (d; easy; p. 11; LO2; Analytical Skills) 18.

The classification to which a product is assigned is known as the ________. a. product category b. good c. service d. product class e. product mix (a; moderate; p. 11; LO2; AACSB Analytical Skills) 19.

The particular group of consumers thought to be potential customers for the goods and services of an organization constitute the ________. a. product category b. demographic segment c. product use segment d. feasible market e. target market (e; easy; p. 11; LO2; AACSB Analytical Skills)

Chapter One: Introduction to Advertising

20.

The target market of an organization is ________. a. demographically homogeneous b. the particular group of consumers thought to be potential customers for the organization’s goods and services c. the largest market segment d. made up of services and ideas, as well as goods e. referred to as the marketing objective (b; moderate; p. 11; LO2; AACSB Analytical Skills) 21.

Which of the following statements is true? a. Product category refers to whether the product is a good, a service, or an idea. b. The term product refers only to tangible goods, such as automobiles, clothing, or soft drinks. c. A product can be services and ideas, as well as goods. d. Advertising is the process a business uses to satisfy consumer needs and wants by providing goods and services to a target market. e. A tagline is the distinctive identity of a particular product that distinguishes it from its competitors. (c; moderate; p. 11; LO2; AACSB Communication) 22.

Which of the following is NOT considered a tool available in the marketing mix? a. product b. distribution c. price d. marketing communication e. customer relationship management (e; easy; p. 11; LO2; AACSB Analytical Skills) 23.

The four tools of product, price, place (distribution), and promotion are collectively referred to as the ________. a. product mix b. promotion mix c. marketing mix d. marketing elements e. exchange elements (c; easy; p. 11; LO2) 24.

The marketing mix is also known as the ________. a. four Es b. PSI c. P matrix d. tangible/intangible continuum e. four Ps (e; easy; p. 11; LO2)

Part One: A Passion for the Business

25.

The distinctive identity of a particular product that distinguishes it from its competitors is known as the ________. a. advertising b. brand c. tagline d. logo e. trademark (b; moderate; p. 11; LO2) 26.

Coke and Pepsi are examples of different ________ of soft drinks. a. trademarks b. taglines c. products d. brands e. ideas (d; easy; p. 11; LO2) 27.

Which of the following is considered a strength of advertising as a marketing technique? a. directly affects sales b. best communication tool for persuading consumers c. it’s inexpensive d. can reach a mass audience e. all of the above (d; moderate; p. 12 [Table 1.1]; LO2; AACSB Analytical Skills) 28.

Which of the following is NOT considered a strength of advertising as a marketing technique? a. persuades b. influences culture c. introduces products d. explains important changes e. reminds and reinforces (b; difficult; p. 12 [Table 1.1]; LO2; AACSB Analytical Skills) 29.

In which types of societies does advertising tend to flourish? a. ones where demand exceeds supply b. ones where there is little price competition c. ones where there are few distinguishing characteristics among product offerings by competitors d. ones in which government does not regulate commercial speech e. ones where supply exceeds demand (e; difficult; p. 11; LO2; AACSB Multicultural and Diversity)

Chapter One: Introduction to Advertising

30.

Which of the following is considered a social role of advertising? a. creates a more rational economy b. can reach a mass audience c. plays an educational role d. makes consumers focus on nonprice benefits e. all of the above (c; difficult; p. 12; LO2; AACSB Analytical Skills) 31.

Which of the following is NOT considered a social role of advertising? a. Advertising informs consumers about new and improved products. b. Advertising teaches consumers about new products and how to use them. c. Advertising helps consumers compare products and features, and generally keeps consumers informed about innovations and issues. d. Advertising reinforces past purchases and brand experiences. e. Advertising mirrors fashion and design trends and adds to our aesthetic sense. (d; difficult; pp. 12-13; LO2; AACSB Analytical Skills) 32.

Builds awareness of products and brands, creates a brand image, provides product and brand information, persuades people, provides incentives to take action, provides brand reminders, and reinforces past purchases and brand experiences are all ________ of advertising. a. criticisms b. strengths c. definitions d. roles e. functions (b; moderate; p. 12; LO2; AACSB Communication) 33.

The major type of advertising that announces facts about products that are available in nearby stores and focuses on stimulating store traffic and creating a distinctive image for a retailer is known as retail or ________ advertising. a. brand b. local c. direct-response d. institutional e. informational (b; moderate; p. 13; LO2; AACSB Communication)

Part One: A Passion for the Business

34.

________ advertising is the most visible type of advertising, and it focuses on the development of a long-term brand identity or image. a. Retail b. Image c. Brand d. Institutional e. Public service (c; easy; p. 13; LO2; AACSB Communication) 35.

________ advertising can use any advertising medium, but the message is different from other types of advertising in that it tries to stimulate a sale directly. a. Brand b. Local c. Direct-response d. Institutional e. Public service (c; easy; p. 13; LO2; AACSB Communication) 36.

Which of the following is NOT considered a major type of advertising? a. brand b. retail c. direct-response d. institutional e. informational (e; moderate; pp. 13-14; LO2; AACSB Communication) 37.

________ advertising is sent from one business to another. a. Brand b. Retail c. Direct d. Institutional e. Business-to-business (e; easy; p. 13; LO2; AACSB Communication) 38.

________ advertising focuses on establishing a corporate identity or winning the public over to the organization’s point of view. a. Brand b. Organizational c. Informational d. Institutional e. Business-to-business (d; easy; p. 13; LO2; AACSB Communication)

Chapter One: Introduction to Advertising

39.

Not-for-profit organizations, such as charities, foundations, associations, hospitals, orchestras, museums, and religious entities, advertise for customers, members, volunteers, and donations and other forms of program participation using which major type of advertising? a. nonprofit b. local c. direct-response d. institutional e. business-to-business (a; easy; p. 14; LO2; AACSB Analytical Skills) 40.

Which major type of advertising is used to communicate a message on behalf of some good cause, such as stopping drug abuse, and is usually created by advertising professionals free of charge with the necessary time and space often donated by the media? a. nonprofit b. social cause c. direct-response d. business-to-business e. public service (e; easy; p. 14; LO2; AACSB Communication) 41.

Which major type of advertising demands creative, original messages that are strategically sound and well executed? a. nonprofit b. brand c. direct-response d. business-to-business e. all of the above (e; easy; p. 14; LO2; AACSB Communication) 42.Which of the following is considered a “key player” in advertising? a. media b. advertiser c. agency d. audience e. all of the above (e; easy; p. 14; LO3; AACSB Analytical Skills)

Part One: A Passion for the Business

Which of the following is NOT considered a “key player” in advertising? a. media b. advertiser c. government d. agency e. suppliers (vendors) (c; moderate; p. 14; LO3; AACSB Analytical Skills) 43.

44.

Advertising begins with the ________, the person or organization that uses advertising to send out a message about its products. a. government b. media c. agency d. advertiser e. vendor (d; easy; p. 14; LO3; AACSB Reflective Thinking) 45.

The ________ initiates the advertising effort by identifying a marketing problem the advertising can solve. a. government b. media c. agency d. advertiser e. vendor (d; easy; p. 16; LO3; AACSB Analytical Skills) 46.

Which key player makes the final decisions about the target audience and the size of the advertising budget and also approves the advertising plan? a. advertiser b. media c. agency d. vendor e. audience (a; easy; p. 16; LO3; AACSB Analytical Skills) 47.

When an advertiser hires an advertising agency, the advertiser becomes the agency’s ________. a. customer b. client c. partner d. vendor e. supervisor (b; moderate; p. 16; LO3; AACSB Analytical Skills)

Chapter One: Introduction to Advertising

48.

Who is ultimately responsible for monitoring the work and paying the bills on an advertising account? a. agency b. vendor c. accountant d. traffic e. advertiser (e; moderate; p. 16; LO3; AACSB Analytical Skills) 49.

Independent organizations that are hired by advertisers to plan and implement part or all of their advertising efforts are known as ________. a. media b. professionals c. agencies d. externals e. clients (c; easy; p. 17; LO3; AACSB Analytical Skills) 50.

The working relationship between an advertiser and an advertising agency is known as the ________ partnership. a. agency-client b. professional-client c. advertising d. vendor-client e. strategic (a; moderate; p. 17; LO3; AACSB Reflective Thinking) 51.

When creating an advertisement or complete campaign, it is typically more efficient to use an outside agency for all of the following reasons, EXCEPT a. Agencies typically have fewer restrictions getting ideas approved. b. Agencies have creative expertise. c. Agencies have media knowledge. d. Agencies have workforce talent. e. Agencies have the ability to negotiate good deals for clients. (a; difficult; p. 17; LO3; AACSB Reflective Thinking) 52.

The primary responsibility of this department is to act as a liaison between the marketing department in large organizations and the advertising agency (or agencies) and other vendors. a. accounting department b. traffic department c. advertising department d. brand manager e. communications department (c; moderate; p. 18; LO3; AACSB Analytical Skills)

Part One: A Passion for the Business

53.

Big companies may have hundreds of agencies working for them, but they normally have a(n) ________, which does most of their business and may even manage the other agencies. a. agency-of-record b. primary agency c. lead agency d. agency-of-importance e. agency manager (a; moderate; p. 17; LO3 AACSB Analytical Skills) 54.

Which of the following is a task performed by an advertiser’s advertising department? a. creates the advertising b. coordinates activities with vendors, such as media, production, and photography c. determines the marketing objectives d. sets the price if it is included in an advertisement e. all of the above (b; moderate; p. 18; LO3) 55.

Which of the following is NOT a task performed by an advertiser’s advertising department? a. creates the advertising b. coordinates activities with vendors, such as media, production, and photography c. makes sure the work gets done as scheduled d. determines whether the work has achieved prescribed objectives e. all of the above (a; moderate; p. 18; LO3; AACSB Analytical Skills) 56.

In which type of advertising agency does an advertiser produce its own advertising? a. home agency b. agency-of-record c. in-house agency d. onsite agency e. advertising department (c; moderate; p. 18; LO3; AACSB Analytical Skills)

Chapter One: Introduction to Advertising

57.

Companies that need closer control over their advertising usually ________ that performs most, and sometime all, of the functions of advertising. a. hire an outside agency b. hire a vendor c. have their own advertising department d. have their own in-house agency e. have their own agency-of-record (d; difficult; p. 18; LO3; AACSB Reflective Thinking) Which “key player” is composed of the channels of communication that carry the message from the advertiser to the audience? a. advertiser b. agency c. media d. vendor e. distributors (c; easy; p. 18; LO3; AACSB Communication) 58.

59.

What is the biggest advantage of mass media advertising? a. provide specialized services regarding ad execution b. cost efficiency—because costs are spread over the large number of people reached by the ad c. high level of effectiveness d. few restrictions e. unlimited inventory available for advertisers (b; moderate; p. 18; LO3; AACSB Communication) 60.

Artists, writers, songwriters, photographers, directors, producers, and printers are all examples of which type of “key player” in advertising? a. advertiser b. agency c. media d. vendor e. audience (d; moderate; p. 19; LO3) 61.

Which of the following is NOT a reason other advertising players hire a vendor? a. vendors are the only ones that can produce commercials b. may not have expertise in that area c. may be overloaded d. may want a fresh perspective e. vendors provide specialized services (a; difficult; p. 19; LO3)

Part One: A Passion for the Business

62.

All advertising strategy starts with the identification of the ________. a. creative concept b. desired audience c. media vehicles to be used d. agency to be used e. outcomes to be gained by the advertising (b; moderate; p. 19; LO3; AACSB Communication) 63.

During the _______ in the late 1990s corporations were challenged on questions of social responsibility and insensitivity to diverse viewpoints. a. Age of Print b. Age of social responsibility c. Age of agencies d. Creative era e. Modern advertising era (b; easy; p. 23; LO4) 64.

For an advertisement to be considered effective, what is the first thing it must do? a. hold consumers’ interest b. gain consumers’ attention c. convince consumers to change their purchasing behavior d. convince consumers to continue buying the brand e. remind consumers of the brand and their positive feelings about it (b; moderate; p. 26; LO4; (AACSB Communication) 65.

Which of the following is NOT a characteristic of effective ads? a. hold consumers’ interest b. gain consumers’ attention c. convince consumers to change their purchasing behavior d. convince consumers to continue buying the brand e. provides all the necessary information so that consumers can make a purchase (e; difficult; p. 26; LO4) 66.

The advertisers’ desired impact on the target audience is formally stated as a(n) ________, which is the measurable goal or result that the advertising is intended to achieve. a. objective b. outcome c. effect d. strategy e. image (a; moderate; p. 26; LO4)

Chapter One: Introduction to Advertising

67.

On which level do ads and their goals work? a. satisfying consumers’ objectives by engaging them with a relevant message that catches their attention, speaks to their interests, and remains in their memories b. achieves the company’s marketing objectives c. are recognized by peers in the industry for their creativity d. A and B e. A, B, and C (d; difficult; p. 26; LO4; AACSB Analytical Skills) 68.

________ is the practice of unifying all marketing communication tools so they send a consistent, persuasive message promoting company goals. a. Marketing communications (MC) b. Integrated advertising execution (IAE) c. Integrated promotional activities (IPA) d. Integrated marketing communications (IMC) e. Global marketing communications (GMC) (d; easy; p. 25; LO4; AACSB Communication) 69.

All groups of people who have an interest in the brand, including such groups as employees, vendors and suppliers, distributors, investors, government and regulators, the community, watchdog groups, the media, and so forth, are known as ________. a. constituencies b. interest groups c. stakeholders d. regulators e. social forces (c; moderate; p. 25; LO4; AACSB Reflective Thinking) 70.

What is meant by the term effective with respect to advertising? a. The advertising delivers the results the marketer has specified for the advertising. b. The advertising wins creativity awards, such as the EFFIE or the CLIO. c. The advertising is remembered by at least 50 percent of the target audience. d. The advertising resulted in increased sales. e. The advertising media exposure was purchased at the lowest possible cost to reach the target audience. (a; difficult; p. 26; LO2) GENERAL CONTENT: TRUE/FALSE QUESTIONS 71. The sponsor is identified in an advertising message. (True; moderate; p. 9; LO4)

Part One: A Passion for the Business

72. In advertising, only the creative idea and execution require creative thinking. (False; moderate; p. 9; LO1; AACSB Communication) 73.

The logic and planning behind the advertisement that gives it direction and focus is known as the creative idea. (False; moderate; p. 9; LO1; AACSB Communication) 74. The classification in which a product is assigned is known as a brand. (False; easy; p. 11; LO2) (AACSB Communication) 75.

The particular group of consumers thought to be potential customers for the goods and services constitute the target market. (True; easy; p. 11; LO2) 76. A product can be services and ideas, as well as goods. (True; easy; p. 11; LO2) 77.

Advertising can be used to build a brand, which is the distinctive identity of a particular product that distinguishes it from its competitors. (True; moderate; p. 11; LO2; (AACSB Communication) 78.

Advertising is effective only for informing consumers about products and services. (False; moderate; p. 11; LO2; AACSB Communication) 79.

One point of view regarding advertising’s communication role believes that it is so persuasive that it decreases the likelihood that a consumer will switch to an alternative product. (False; difficult; p. 11; LO2; AACSB Communication) 80. Advertising has no redeeming social value. (False; difficult; p. 12; LO2; AACSB Communication) 81.

The major types of advertising include brand, retail/local, direct-response, directory, political, business-to-business, institutional, nonprofit, and public service advertising. (False; moderate; pp. 13-14; LO4; AACSB Communication) 82.

The objectives in local advertising tend to focus on stimulating store traffic and creating a distinctive image for the retailer. (True; moderate; p. 13; LO4) 83. Direct-response advertising tries to stimulate a sale directly. (True; moderate; p. 13; LO4; AACSB Analytical Skills)

Chapter One: Introduction to Advertising

84.

Advertising sent from one business to another is known as direct-response advertising. (False; moderate; p. 13; LO4; AACSB Communication) 85.

Advertising helps us shape an image of ourselves by setting up role models that we can identify with, and it gives us a way to express ourselves in terms of our personalities and sense of style through the things we wear and use. (True; moderate; p. 13; LO2; AACSB Communication) 86.

The key players in advertising are the advertiser, the agency, the media, the supplier, and the audience. (True; moderate; p. 14; LO2; AACSB Reflective Thinking) 87. Advertising begins with the agency. (False; moderate; p. 14; LO2; AACSB Reflective Thinking) 88.

The advertiser initiates the advertising effort by employing the services of an agency. (False; moderate; p. 16; LO2; AACSB Analytical Skills) The agency person in charge of an advertiser’s business is known as the “client manager.” (False; moderate; p. 17; LO2) 89.

90. Most large businesses have an in-house agency. (True; difficult; p. 17; LO2) 91.

Most companies have only one advertising agency working for them, known as the agency-of-record. (False; difficult; p. 17; LO2) 92.

Companies that need close control over their advertising are likely to use an agency-of-record. (False; moderate; p. 18; LO2; AACSB Communication) 93.

An in-house agency performs most, and sometimes all, of the functions of an outside advertising agency. (True; easy; p. 18; LO2) 94.

Newspapers, radio or TV stations, billboards, and so forth are known as media vehicles. (True; easy; p. 18; LO2; AACSB Communication) 95.

The primary advantage of advertising’s use of mass media is that the costs are spread over the large number of people that these media reach. (True; moderate; p. 18; LO2; AACSB Analytical Skills)

Part One: A Passion for the Business

96. Freelance writers, lighting specialists, and printers are examples of suppliers. (True; moderate; p. 19; LO2) 97.

Key players that provide specialized services that assist advertisers, advertising agencies, and the media in creating and placing ads are known as suppliers or vendors. (True; moderate; p. 19; LO2) 98.

Advertising strategy starts with the identification of the customer or prospective customer. (True; moderate; p. 19; LO2; AACSB Analytical Skills) 99. Purchasers and product users are synonymous terms. (False; moderate; p. 19; LO2) During the “Age of Print” stage of advertising’s evolution, ads were primarily like classified advertising in format, and print media carried them. (True; easy; p. 20; LO4; AACSB Analytical Skills) 100.

The period when advertising grew in importance and size was the “Modern Advertising” era. (False; moderate; p. 21; LO4) 101.

102.

Integrated marketing communication (IMC) means that ads can now be customized to individual consumers. (False; difficult; p. 25; LO4; AACSB Communication) 103. Award-winning ads are effective ads. (False; difficult; p. 26; LO4) 104.

Synergistic marketing communication (SMC) is the practice of unifying all marketing communication tools so they send a consistent, persuasive message promoting company goals. (False; moderate; p. 25; LO4;(AACSB Communication) 105.

The advertising question with respect to globalization is whether to standardize ads or advertising strategies across all cultures or to adapt ads and strategies to local markets. (True; moderate; p. 25; LO4; AACSB Multicultural and Diversity)

Chapter One: Introduction to Advertising

GENERAL CONTENT: ESSAY QUESTIONS 106.

Name and describe the four fundamental concepts of advertising and what makes an ad truly effective. Answer:

Strategy, creative idea, creative executions, and media planning must work in concert for an ad to be truly effective: (1) Advertising Strategy—The logic and planning behind the advertisement that gives it direction and focus. (2) Creative Idea—The ad’s central idea that grabs your attention and sticks in your memory. Creative really describes the entire field of advertising from planning the strategy, developing the research, and the buying and placing of ads in the media. (3) Creative Execution—Effective ads are well executed, which means that the details, the photography, the writing, the acting, the setting, the printing, and the way the product is depicted all reflect the highest production values available to the industry. (4) Media Planning and Buying—Every message has to be delivered somehow. (moderate; p. 9; LO1; AACSB Reflective Thinking)

Part One: A Passion for the Business

107.

Name and describe the four roles advertising plays in business and in society. Answer: (1)

Marketing Role—Marketing is the process a business uses to satisfy consumer needs and wants by providing goods and services. The tools available to marketing include the product, as well as its price, distribution (place), and marketing communication (promotion). Advertising is a tool used in the promotion mix. (2) Communication Role—Advertising is a form of mass communication. It transmits different types of market information to connect buyers and sellers in the marketplace. Advertising is just one tool used in marketing communication; others include sales promotion, public relations, direct response, events and sponsorships, packaging, and personal selling. (3) Economic Role—In societies that have some level of economic abundance, in which supply exceeds demand, advertising moves from being primarily informational to creating demand for a particular brand. A positive economic view of advertising sees it as a vehicle for helping consumers assess value through price as well as other elements, such as quality, location, and reputation, thereby viewing advertising as a means to objectively provide price/value information, creating a more rational economy. In contrast, another point of view sees advertising as so persuasive that it decreases the likelihood that a consumer will switch to an alternative product, regardless of the price charged, because of advertising that focuses consumers on nonprice benefits, such as psychological appeal. (4) Societal Role—Advertising has a number of social roles. It informs consumers about products, mirrors fashion design trends, and adds to consumers’ aesthetic sense. It has an educational role in that it teaches about new products and how to use them. It helps us shape an image of ourselves by setting up role models that we can identify with and express ourselves. (difficult; pp. 11-13; LO2; AACSB Reflective Thinking) 108.

Name and describe the five major players in advertising. Answer: (1) Advertiser—The person or organization that uses advertising to send out a message about its product. The advertiser initiates the advertising effort by identifying a marketing problem that advertising can solve and makes the final decisions about the target audience, the size of the advertising budget, and approves the advertising plan. Finally, the advertiser hires the advertising agency, becoming the agency’s client responsible for monitoring the work and paying the bills for the agency’s work on its account.

Chapter One: Introduction to Advertising

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Advertising Agency—Creates the advertising. Outside agencies are often more efficient in creating an advertisement or a complete campaign than the advertiser would be on its own. Large advertisers participate in the advertising process either through their advertising departments or through their in-house agencies. Advertising departments act as a liaison between the marketing department and the advertising agency and other vendors. In-house agencies perform most, and sometimes all, of the functions of an outside advertising agency. (3) Media—Composed of the channels of communication that carry the message from the advertiser to the audience. Media are referred to as channels of communication or media vehicles, with mass media being the most cost-efficient form. (4) Suppliers (Vendors)—The group of service organizations that assist advertisers, agencies, and the media in creating and placing the ads by providing specialized services. Members of this group include artists, writers, photographers, directors, and so on. The other players might hire a vendor because of his or her expertise, they may be overloaded, they might want a fresh perspective, and/or cost efficiency. (5) Target Audience—All advertising strategy starts with the identification of the customer or prospective customer, the desired audience for the advertising message. (moderate; pp. 14–19; LO3; AACSB Reflective Thinking) 109.

Name and describe the seven types of advertising. Answer: (1)

(2)

(3)

(4) (5)

Brand Advertising—The most visible type of advertising is national consumer, or brand, advertising. It focuses on the development of a longterm brand identity and image. Retail or Local Advertising—Message announces facts about products that are available in nearby stores with the objective to focus on stimulating store traffic and creating a distinctive image for the retailer. Local advertising can refer to a retailer or a manufacturer or distributor who offers products in a fairly restricted geographic area. Direct-Response Advertising—Can use any advertising medium, including direct mail, but the message is different from that of national and retail advertising in that it tries to stimulate a sale directly. Business-to-Business Advertising—Sent from one business to another and is not directed at general consumers. Institutional Advertising (a.k.a. Corporate Advertising)—Messages focus on establishing a corporate identity or winning the public over to the organization’s point of view.

Part One: A Passion for the Business

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Nonprofit Advertising—Not-for-profit organizations advertise for customers, members, and volunteers, as well as for donations and other forms of program participation. (7) Public Service Advertising—Communicates a message on behalf of some good cause and is usually created by advertising professionals for free, and the media often donate the time and space. (moderate; pp. 13-14; LO2; AACSB Reflective Thinking) 110.

Describe the Age of agencies in the evolution of advertising. Answer: (1)

Age of Agencies—The agency world and management of advertising developed rapidly after World War I. Consumers were desperate for goods and services, and new products were loading up the marketplace. The J. Walter Thompson (JWT) agency, still flourishing today, led the great boom in advertising during this period. (moderate; p. 21; LO4; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

What was the objective of the truth® campaign run by the American Legacy Foundation discussed in the opening vignette? a. to encourage teens to buy products b. to sell lighters c. to empower teens against manipulation by tobacco company's tactics d. to develop a campaign that was consistent with traditional preachy antismoking ads e. to win an EFFIE award (c; moderate; p. 6; AACSB Analytical Skills) 112.

Polo Ralph Lauren clothing is of high quality and style. Instead of stressing the quality of their clothing, Polo Ralph Lauren does not even include copy (i.e., words) other than their brand name in their print ads and merely shows beautiful people wearing their clothing performing activities of the “rich,” such as attending a polo match, or merely depicting a very well dressed, handsome man. What approach is Polo using? a. hard-sell b. soft-sell c. image-sell d. direct-sell e. creative-sell (b; moderate; p. 12; LO1; AACSB Analytical Skills)

Chapter One: Introduction to Advertising

113.

In the 1990s, McCann-Erickson developed a television ad for Coke to kick off that year’s summer campaign. The ad was trying to convey a father and son from another planet, with the father explaining that, in the summer, earthlings worship something called the “sun.” The camera zoomed in on a beach as though the two were flying in from outer space when the picture showed a beautiful, young woman drinking a refreshing Coke in front of a Coke vending machine on the beach, and the son asked his father, “Is that the sun?” The agency struggled with the commercial to get the message across that they wanted Coke to be perceived as the center of our universe, eventually coming up with a new editing technique to convey the meaning they wanted. According to a McCann-Erickson professional working on the campaign, they wanted to do it because “it had never been done before.” In spite of these creative efforts and the highly professional execution, the ad was not effective and ran for only a short time on television. In terms of the four fundamental concepts that must work in concert for an ad to be truly effective, which one was deficient in this campaign that caused it to be ineffective? a. creative idea b. execution c. media d. strategy e. all of the above (d; difficult; pp. 9-10; LO1;AACSB Analytical Skills) 114.

Roach-B-Gone is a brand of bug spray available to consumers to combat pests in their home. This brand has an ingredient that instantly kills roaches on contact, which is superior to all the other competitive bug sprays available in the consumer market. Which type of advertising approach should Roach-B-Gone use to persuade consumers that their brand is superior to all others? a. hard-sell b. soft-sell c. image-sell d. direct-sell e. creative-sell (a; moderate; p. 12; LO1; AACSB Analytical Skills) 115.

The success of the new VW Beetle was built upon its ability to connect with the antistatus ________ of the original "lowly" Beetle. a. reliability b. price c. brand image d. attitude e. promotion (c; moderate; p. 12 [Table 1.1])

Part One: A Passion for the Business

116.

Pepsi-Cola is a brand of soft drink that has been around for a long time and has been advertised continuously over the last 50 years. From Pepsi’s perspective, what is the most likely strength of advertising for them? a. can reach a mass audience b. introduces products c. explains important changes d. reminds and reinforces e. persuades (d; moderate; p. 12 [Table 1.1]; LO1; AACSB Analytical Skills) 117.

The cost to advertisers to purchase a 30-second advertising spot during the Super Bowl is very high. From the advertiser’s perspective, what is the most important strength of advertising if they decide to use this media vehicle? a. can reach a mass audience b. introduces products c. explains important changes d. reminds and reinforces e. persuades (a; moderate; p. 12 [Table 1.1] ; LO1; AACSB Analytical Skills) 118.

Some critics claim that advertising has a strong impact on how young women view themselves, resulting in negative self-images. Some have even claimed that advertising is a major cause of eating disorders for young women because ads targeted to this demographic use unreasonably thin models. Which role of advertising does this illustrate? a. marketing role b. economic role c. societal role d. communication role e. soft-sell role (c; easy; p. 12; LO2; AACSB Analytical Skills) 119.

In which product category is the most spent on advertising in the United States in 2006? a. entertainment and events b. telecommunications c. airline travel, hotels, and resorts d. restaurants e. food, beverages, and confectionary (b; difficult; p. 16 [Table 1.2] ; LO3)

Chapter One: Introduction to Advertising

How many times did the “1984” commercial for Apple computer run? a. 1 b. 2 c. 20 d. 50 e. more than 100 (a; difficult; p. 15; LO2) 120.

121.

Which of the following was the top U.S. advertiser with respect to total ad expenditures in 2006? a. Monsanto b. Sara Lee c. Toyota d. General Electric e. Proctor & Gamble (e; difficult; p. 16; [Table 1.3]; LO2) 122.

For the truth® campaign Porter + Bogusky and Arnold was the _______ that planned and implemented the advertising effort. a. marketer b. media buying company c. account manager d. advertising agency e. advertising department (d; difficult; p. 17) 123.

Brad is a music industry major in college, and he wants to work in the advertising industry writing and performing jingles for radio commercials. Which “key player” in the advertising industry will Brad likely be associated with after he graduates? a. advertiser b. agency c. media d. vendor e. creative (d; difficult; p. 19; LO2)

Part One: A Passion for the Business

124.

Bolls and Associates is a full-service advertising agency that will develop a client’s advertising campaign from strategy through execution and media exposure. However, Bolls and Associates does not actually produce the television commercials or shoot the photography for print ads, but rather, they hire outside experts to produce those elements of the campaign for them because they don’t have that expertise and it is more cost effective to pay others to do it for them. Which type of “key player” is Bolls and Associates advertising agency using to produce the advertisements for their client? a. advertiser b. agency c. media d. vendor e. creative (d; difficult; p. 19; LO2; AACSB Reflective Thinking) 125.

6SecondABS, an abdominal workout device, runs an infomercial that lasts 30 minutes and demonstrates the benefits of their product. They claim that users of their product can reduce their waist and lose one size in a week when following their workout plan. Viewers can call the 1-800 number on the infomercial to purchase the product directly. To stimulate a sale immediately, the infomercial offers several incentives, such as a lower price and additional products, if consumers call in the “next 30 minutes.” Which type of advertising is this? a. deceptive b. national c. retail d. direct response e. direct-to-consumer (d; moderate; p. 13; LO2; AACSB Analytical Skills) 126.

The Effie award in advertising is given by which organization? a. New York Chapter of the American Marketing Association b. Institute of Practitioners c. New York Festivals Company d. Adweek e. Promotion Marketing Association (a; moderate; p. 26; LO4) APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Polo Ralph Lauren manufactures and sells high-quality, expensive brands of clothing as well as accessories, cosmetics, and home products. They maintain complete control over the brand image and all of the functions necessary to develop, execute, and deliver their advertising. They appeal to consumers’ lifestyle aspirations even though their products are of high quality and better than most competitors’ offerings. The objective in their advertising is to convey their image and the fashion statement it makes.

Chapter One: Introduction to Advertising

127.

Mini-Case Question. What type of advertising approach would be the most appropriate for Polo Ralph Lauren’s objectives? a. hard-sell b. soft-sell c. image-sell d. direct-sell e. creative-sell (b; moderate; p. 12; LO2; AACSB Analytical Skills) 128.

Mini-Case Question. Because Polo Ralph Lauren wants to maintain close control over its image and advertising, which of the following statements is most likely true? a. They will most likely use an outside advertising agency to develop and execute their advertising. b. They will most likely use an agency-of-record to develop and execute their advertising. c. They will most likely not use any outside resources, such as vendors, to assist in developing and executing their advertising. d. They will get better media rates by not using an advertising agency to purchase their advertising time and space. e. They will most likely use an in-house agency to develop and execute their advertising. (e; difficult; p. 18; LO3) 129.

Mini-Case Question. When Polo Ralph Lauren advertises in fashion magazines, they focus on their brand identity and image by merely illustrating a beautiful, well-dressed person without giving any information at all except the brand name. What type of advertising is this? a. retail advertising b. image advertising c. brand advertising d. direct-response advertising e. indirect advertising (c; moderate; p. 13; LO2; AACSB Communication) 130.

Mini-Case Question. Several of Polo Ralph Lauren’s ads have won awards based solely on their creative ideas. Of the following, what type of awards might these have been? a. EFFIE b. CLIOS c. Reggie d. Silver Anvil e. Halo (b; difficult; p. 26; LO4)

Part One: A Passion for the Business

APPLICATION QUESTIONS: SHORT-ANSWER 131.

Define advertising and discuss where it fits in the marketing process. Answer:

Advertising is paid persuasive communication that uses nonpersonal mass media to reach broad audiences—as well as other forms of interactive communication— to connect an identified sponsor with a target audience. Marketing is the process a business uses to satisfy consumer needs and wants by providing goods and services. Marketing does this through the use of products, their price, their distribution, and their promotion. Advertising is one tool used in the promotion mix. (moderate; p. 7; LO1; AACSB Reflective Thinking) 132.

Compare and contrast hard-sell and soft-sell approaches and give an example of each. Answer:

Hard-sell approaches use reasons to persuade consumers, and soft-sell approaches build an image for a brand and touch consumers’ emotions. An example of a hard-sell approach is an automobile ad emphasizing the attributes of the car and the lease-price information. Just about any cosmetic or fashion ad uses a soft-sell approach. (easy; p. 12; LO2; AACSB Analytical Skills) 133.

What is the evidence that the truth® campaign worked? Answer: There were four areas in which the campaign was very effective. Awareness: after eight months on the air 75 percent of U.S. teens could accurately describe one or more of the ads and 57 percent recalled seeing the ads. Belief: More than 70 percent of the teens say that the ads make them feel more negative toward tobacco companies. Persuasion: More than 90 percent of teens who saw the ads say the ads gave them good reasons to not smoke. Behavior: A study concluded that 22 percent of the overall decline in youth smoking from 2000 to 2002 was directly attributable to the truth® campaign. (moderate; p. 27; AACSB Analytical Skills)

Chapter One: Introduction to Advertising

134.

Ads during the Super Bowl cost an advertiser more than $2 million for 30 seconds of time. Why would an advertiser pay this much for advertising time? Answer:

This question is getting at the strengths of advertising, which are listed in Table 1.1. The specific strength this question is targeting is the fact that advertising can reach a mass audience. One of the big advantages of mass media advertising is that it can reach a lot of people with a single message in a very cost-efficient manner. (moderate; p. 12 [Table 1.1] ; LO2; AACSB Analytical Skills) 135.

Compare and contrast the terms product category and brand, and give examples of each. Answer:

Product category refers to the classification to which the product is assigned. A brand is a distinctive identity of a particular product in a product category that distinguishes it from its competitors. For example, Tide, Cheer, and Era are examples of different brand offerings in the product category of laundry detergent. Brands may or may not be produced by different companies (e.g., Procter & Gamble has several different brands of laundry detergent), but brands compete with one another for consumers’ dollars in that product category. (moderate; p. 11; LO2; AACSB Reflective Thinking) 136.

Critique the statement, “Advertising is the communications arm of the marketing process.” Answer:

Although it is true that advertising is part of the promotion “P” of marketing and performs a communication function, other elements also communicate to consumers. The broad term marketing communications includes advertising, but it also includes a number of related communications techniques used in marketing, such as sales promotion, public relations, direct responses, events and sponsorship, and personal selling. Other elements of the marketing mix also perform a communication role. Characteristics of the product offering, such as the packaging, color, size, brand name, and so forth communicate. Price and place (distribution) also communicate information to consumers. To sum, advertising is not the only communications arm of the marketing process, but it is one of the most important marketing communication tools in that it can reach a large audience in a cost-efficient manner. (difficult; p. 11; LO2; AACSB Reflective Thinking)

Part One: A Passion for the Business

137.

Explain why advertising is criticized from an economic perspective and provide an opposing argument. Answer: Some criticize advertising as being so persuasive that it decreases the likelihood that a consumer will switch to an alternative product, regardless of the price charged. Advertising focuses on other attributes so the consumer makes a decision on nonprice benefits, such as psychological appeal. This leads to advertisers being able to charge higher prices because consumers become less price-sensitive.

An opposing view sees advertising as a vehicle for helping consumers assess value, through price as well as other elements, such as quality, location, and reputation. Rather than diminishing the importance of price as a basis for comparison, supporters of this school of thought view the role of advertising as a means to objectively provide price/value information, thereby creating a more rational economy. (moderate; p. 12; LO2; AACSB Reflective Thinking) 138.

Critique the statement, “Advertising has no redeeming social value.” Why do you think some hold this view of advertising? Answer:

Advertising has a number of positive social roles. It informs consumers about new and improved products, helps them compare products and features, and generally keeps them informed about innovations and issues. It has an educational role in that it teaches about new products and how to use them. Advertising also mirrors fashion and design trends and adds to our aesthetic sense and helps us shape an image of ourselves by setting up role models that we can identify with; it also gives us a way to express ourselves in terms of our personalities and sense of style through the things we wear and use. For this reason, though, some view advertising as overly influential on consumers’ view of themselves and may lead them to buy things they really don’t need or to develop negative self-images based on what they see in advertising. (moderate; pp. 12-13; LO2; AACSB Reflective Thinking)

Chapter One: Introduction to Advertising

139.

Why do businesses advertise? Answer:

This question is getting at a discussion of either the strengths or functions of advertising. The strengths of advertising are: (1) ability to reach a mass audience, (2) introduces products, (3) explains important changes, (4) reminds and reinforces, and (5) persuades. The functions of advertising are: (1) builds awareness of products and brands, (2) creates a brand image, (3) provides product and brand information, (4) persuades people, (5) provides incentives to take action, (6) provides brand reminders, and (7) reinforces past purchases and brand experiences. (moderate; p. 12 [Table 1.1]; LO2; AACSB Reflective Thinking) 140.

What message was Apple trying to convey with its “1984” advertisement, which aired only once during the 1984 Super Bowl? Answer:

Apple was targeting all those in the audience who were trying to decide whether they should buy a personal computer (remember that not many households owned personal computers at that time). The ad portrayed zombie-like, gray-skinned drones watching a massive screen image of “big brother” when an athletic young woman in bright red shorts runs in chased by helmeted storm-troopers and throws a large sledgehammer over the open-mouthed drones as they “see the light.” The only words were “On January 24th, Apple Computer will introduce Macintosh. And you’ll see why 1984 won’t be like ‘1984’.” Some feel the meaning was that IBM was “big brother” and those that follow were merely mind-numbed drones. The ad cut through the clutter and stood out among all the other ads during the Super Bowl, creating “buzz.” It was risky, but Apple easily surpassed its sales goals. (moderate; p. 15; LO2; AACSB Analytical Skills) 141.

Several large corporations have several brand offerings in several product categories. How might they organize for advertising? Answer:

Most large businesses have advertising departments, whose primary responsibility is to act as a liaison between the marketing department and the advertising agency (or agencies) and other vendors. Many companies may have hundreds of agencies working for them, although they normally have an agency-of-record, which does most of their business and may even manage other agencies. (moderate; pp. 14-18; LO3; AACSB Analytical Skills)

Part One: A Passion for the Business

142.

Why might an advertiser use an in-house agency? Answer:

Companies that need closer control over their advertising have their own in-house agencies. Large retailers, for example, find that doing their own advertising provides cost savings as well as the ability to meet deadlines. Some advertisers also create their own advertising in-house to maintain complete control over the brand image. (moderate; p. 18; LO3) 143.

Calvin Klein used some very controversial ads depicting what looked like drugaddicted teenagers posing in sexually suggestive poses. Calvin Klein claimed that all the models in the ads were adults, but critics claimed that it did not look that way. It was reported that the ads were produced “in-house.” Why do you think Calvin Klein used an in-house agency to produce these ads instead of an outside agency? Answer:

One reason advertisers use an in-house agency is so they can maintain complete creative control over their advertising and brand image. Calvin Klein is no stranger to controversial advertising. It would appear difficult to explain this creative idea to an outside agency, and an independent agency might not have been willing to produce such controversial advertising. (difficult; pp. 17-18; LO3; AACSB Ethical Reasoning) 144.

A 30-second spot on a hit TV show can cost advertisers more than $600,000. Why is mass media considered cost-effective when it costs so much? Answer:

Although it’s true that mass media advertising, particularly on television, is very expensive on an absolute basis, mass media advertising can be cost-effective because the costs are spread over the large number of people reached by the ad. American Idol is one of the most popular TV shows, which means that advertisers will reach millions of viewers with one message. (moderate; p. 12; LO2; AACSB Reflective Thinking)

Chapter One: Introduction to Advertising

145.

Calvin Klein used some very controversial ads depicting what looked like drugaddicted teenagers posing in sexually suggestive poses. What type of advertising is an ad for Calvin Klein clothing? Explain your answer. Answer:

That would be brand advertising, because it was advertising of a brand that has national distribution and focused on the development of the brand’s identity and image. Calvin Klein wanted to establish the image of the brand as being unique and sexy. (moderate; p. 13; LO2; AACSB Ethical Reasoning) 146.

Several ads for a company have won creativity awards. Does that mean the ads were effective? Answer:

Not necessarily. Creativity awards, such as the CLIOS, are based on an ad’s creativity alone. While the creative idea and execution are two of the fundamental concepts necessary for an ad to be effective, they are not necessarily sufficient. Effective ads are ones that satisfy consumers’ objectives by engaging them with a relevant message that catches their attention, speaks to their interests, and remains in their memories. From a company’s perspective, the ads achieve the company’s marketing objectives, which are usually related to growth and sales, and contribute to the success of the business. (moderate; pp. 26-27; LO4; AACSB Reflective Thinking) 147.

Explain what is meant by the phrase, the new advertising. Answer:

There are several issues and trends that are leading to a new view of advertising. Electronic media that allow for interactivity are changing the way advertising is developed and used. Advertising now has the ability to be more personal and interactive and more likely to employ creative new uses of communication opportunities beyond the traditional mass media. The trend toward integrated marketing communications is also requiring the unification of all marketing communications tools so they send a consistent, persuasive message promoting company goals. Finally, globalization has raised the question of practicing global or local advertising, making advertisers ask whether they should standardize ads and/or strategies across all cultures or adapt them to local markets. (moderate; pp. 23-25; LO4; AACSB Reflective Thinking)

Part One: A Passion for the Business

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Joan recently opened a store in her community that specializes in home decor, including some furniture, such as sofas, chairs, and end tables, but mostly home-decorating accessories. She is also a certified interior decorator, and she provides expertise in assisting do-it-yourself home decorators in “putting it all together.” She has not been pleased with her sales so far, and she decides she needs to promote her business. 148.

Mini-Case Question. If Joan decides to use advertising, what type of advertising will that be and what should it emphasize? Answer:

The type of advertising will be retail, or local, advertising, which is advertising that announces facts about products that are available in nearby stores with the objective of stimulating store traffic and creating a distinctive image for Joan’s store. The advertising should emphasize the line of products offered in the retail store, but Joan should probably also stress her expertise as many home decor stores for “do-it-yourselfers” do not provide that expertise. (moderate; p. 13; LO2; AACSB Reflective Thinking) 149.

Mini-Case Question. What other communications tools besides advertising can Joan use? Give some specific examples. Answer:

There are several other marketing communications tools besides advertising that Joan can use to promote her business, including sales promotion, public relations, direct response, and events and sponsorships. Sales promotion could include providing an incentive for repeat purchases through a loyalty buyer program, or she might offer a premium with the purchase of a major item, such as providing accent pillows with the purchase of a sofa. Joan could also attempt to get free publicity by getting interviewed by the local newspaper or going on a local television program providing decorating tips for do-it-yourself home decorators. She could also host free (or paid) home decorating seminars at her store, which is a type of event. She might even consider sponsoring a local high school’s club or class that focuses on home decorating. These are just a few of the many possibilities students could discuss. (moderate; p. 7; LO1) (AACSB Analytical Skills)

Chapter One: Introduction to Advertising

150.

Mini-Case Question. Joan does not have a lot of resources to spend on promoting her business. What key player in advertising is most likely to be of value to Joan in assisting her in her advertising efforts? Answer:

The key players in advertising are the advertiser (Joan), advertising agency, media, vendors, and the target audience. Because Joan is a local retailer with limited geographic reach and limited financial resources, she would benefit from using local media, such as radio and newspapers. Many media organizations will assist advertisers in the design and production of advertisements, such as a retailer preparing an ad for the local newspaper. Some, such as radio or cable television, may even produce the advertisement for little or no charge. Local media also assist advertisers in gaining a better understanding of their target audience as well as setting reasonable objectives for their advertising. Vendors, such as photographers and television production companies, may also be able to assist Joan in producing her ads. Finally, Joan could use a full-service advertising agency that will perform every function of advertising for her, but with her limited resources, this may not be feasible, or even necessary. (moderate; pp. 14–19; LO3; AACSB Reflective Thinking)

CHAPTER TWO Advertising’s Role in Marketing

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

An organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders is known as ________. a. advertising b. promotion c. marketing d. management e. production (c; easy; pp. 34-35; LO1; AACSB Analytical Skills) 2.

The goal of marketing is to match a product’s availability to ________. a. the competition’s availability b. the previous year’s level of sales c. the company’s production capabilities d. the consumers’ needs, desire, or demand for the product e. the legal limits with respect to productivity (d; moderate; p. 35; LO1; AACSB Analytical Skills) 3.

Which key concept in marketing suggests that marketing should focus first on identifying the needs and wants of the customer? a. customer concept b. marketing concept c. product concept d. exchange e. production concept (b; moderate; p. 36; LO1; AACSB Analytical Skills) 4.

In which situation is the product or corporate-focused approach to marketing still used? a. industries where product innovation is important, such as high technology b. highly regulated industries c. highly competitive markets d. homogeneous markets e. heterogeneous markets (a; moderate; p. 36; LO1; AACSB Reflective Thinking)

Chapter Two: Advertising’s Role in Marketing

The act of trading a desired product or service to receive something of value in return is known as which key concept in marketing? a. marketing concept b. product concept c. exchange d. production concept e. customer concept (c; easy; p. 36; LO1; AACSB Analytical Skills) 6.

What is exchanged in marketing? a. goods b. services c. money d. ideas e. all of the above (e; easy; pp. 36-37; LO1; AACSB Analytical Skills) 7.

________ is the process of creating a special meaning for a product, one that makes it distinctive in the marketplace and in its product category. a. Advertising b. Branding c. Exchange d. Marketing e. Adding value (b; moderate; p. 38; LO1; AACSB Analytical Skills) 8.

When a brand name or brand mark is legally protected through registration with the Patent and Trademark Office of the Department of Commerce, it becomes a ________. a. known name b. generic name c. brand mark d. trademark e. brand identity (d; easy; p. 39; LO1; AACSB Reflective Thinking) 9.

Which government agency provides a brand name or brand mark trademark protection? a. Federal Trade Commission b. Department of Commerce c. Federal Communication Commission d. Justice Department e. Securities and Exchange Commission (b; moderate; p. 39; LO1)

Part One: A Passion for the Business

10.

________ is the reputation, meaning, and value that the brand name or symbol has acquired over time. a. Trademark b. Copyright c. Brand image d. Brand identity e. Brand equity (e; difficult; p. 39; LO1; AACSB Analytical Skills) 11.

Which of the following measures the financial value the brand contributes to a company? a. trademark b. copyright c. brand image d. brand identity e. brand equity (e; moderate; p. 39; LO1; AACSB Reflective Thinking) 12.

Which of the following does NOT add value to a product? a. advertising b. convenience c. useful features d. branding e. all of the above add value to a product (e; moderate; pp. 38; LO1; AACSB Reflective Thinking) 13.

Which of the following is NOT a way advertising adds value to a product? a. making the product appear more desirable b. making the product appear more of a status symbol c. making the product more convenient for consumers to buy d. providing news and useful information of interest to consumers e. all of the above are ways advertising adds value to a product (c; difficult; p. 38; LO1; AACSB Reflective Thinking) 14.

Which method of adding value to a product is purely psychological? a. branding b. quality c. features d. convenience e. service (a; moderate; p. 41; LO1; AACSB Reflective Thinking

Chapter Two: Advertising’s Role in Marketing

15.

What term is used to mean a place or a particular type of buyer? a. market b. customer c. channel d. target e. segment (a; moderate; p. 41; LO2; AACSB Reflective Thinking) 16.

The percentage of the total market in a product category that buys a particular brand is known as ________. a. share of voice b. market segment c. consumer market d. share of market e. industrial market (d; moderate; p. 41; LO2; AACSB Communication) 17.

Which of the following is NOT considered a main type of market? a. consumer b. business-to-business (industrial) c. reseller d. institutional e. media (e; moderate; p. 41; LO2; AACSB Reflective Thinking) 18.

________ markets consist of people who buy products and services for personal or household use. a. Consumer b. Business-to-business (industrial) c. Reseller d. Institutional e. Direct (a; easy; p. 41; LO2; AACSB Analytical Skills) 19.

The multitude of products that consumers can purchase at drug and grocery stores are known as ________ goods. a. shopping b. package c. end-user d. everyday e. inexpensive (b; moderate; p. 41; LO2; AACSB Analytical Skills)

Part One: A Passion for the Business

20.

________ markets consist of companies that buy products or services to use in their own businesses or in making other products. a. Consumer b. Business-to-business (industrial) c. Reseller d. Institutional e. Indirect (b; easy; p. 41; LO2) 21.

Ads targeting which type of market are usually heavier on factual content than on emotional appeals? a. consumer b. business-to-business (industrial) c. international d. direct e. indirect (b; moderate; p. 41; LO2; AACSB Communication) 22.

________ markets include a wide variety of profit and nonprofit organizations, such as hospitals, government agencies, and schools, which provide goods and services for the benefit of society. a. Consumer b. Business-to-business (industrial) c. Reseller d. Institutional e. Direct (d; easy; p. 41; LO2; AACSB Reflective Thinking) 23.

________ markets are made up of members of the distribution chain. a. Consumer b. Business-to-business (industrial) c. Channel d. Institutional e. Direct (c; moderate; p. 43; LO2) 24.

Which of the following is NOT considered a type of reseller? a. wholesaler b. retailer c. manufacturer d. not-for-profit e. producer (c; moderate; p. 43; LO2)

Chapter Two: Advertising’s Role in Marketing

25.

In which type of market do businesses spend most of their advertising dollars? a. consumer b. business-to-business (industrial) c. reseller d. channel e. institutional (a; moderate; p. 43; LO2; AACSB Reflective Thinking) 26.

What is the first step in the marketing process? a. Set objectives for the marketing effort. b. Research the consumer market and the competitive marketplace and develop a situation analysis. c. Assess consumer needs and wants relative to the product, segment the market into groups that are likely to respond, and target specific markets. d. Differentiate and position the product relative to the competition. e. Develop the marketing mix strategy. (b; moderate; p. 43; LO2) 27.

What is the second step in the marketing process? a. Assess consumer needs and wants relative to the product, segment the market into groups that are likely to respond, and target specific markets. b. Set objectives for the marketing effort. c. Research the consumer market and the competitive marketplace and develop a situation analysis. d. Differentiate and position the product relative to the competition. e. Develop the marketing mix strategy. (b; moderate; p. 43; LO2) 28.

Marketing research, which is original research undertaken to answer specific questions, is known as ________ research. a. primary b. secondary c. non-original d. objective e. subjective (a; moderate; p. 43; LO2) 29.

Which of the following is NOT considered a key strategic decision in marketing? a. SWOT analysis b. objectives c. segmenting and targeting d. differentiation and positioning e. all of the above are considered key strategic decisions in marketing (a; moderate; p. 44; LO2; AACSB Reflective Thinking)

Part One: A Passion for the Business

30.

The process of identifying groups within the market whose needs and wants intersect with the product and its features is known as ________. a. setting objectives b. research c. differentiation d. positioning e. segmentation (e; easy; p. 44; LO2 AACSB Analytical Skills) 31.

________ refers to how consumers see a brand relative to the other brands in the category. a. Segmentation b. Targeting c. Differentiating d. Positioning e. Perception (d; moderate; p. 44; LO2) 32.

Which marketing element includes product design and development, product operation and performance, branding, and the physical dimensions of packaging? a. packaging b. branding c. product d. place e. promotion (c; easy; p. 45; LO2; AACSB Analytical Skills 33.

Which marketing element includes personal selling, advertising, public relations, sales promotion, direct marketing, events and sponsorships, point-of-sale and the communication aspects of packaging? a. price b. branding c. product d. place e. promotion (e; easy; p. 43; LO2; AACSB Analytical Skills) The promotion “P” of marketing is also known as ________. a. product b. distribution c. price d. marketing communication e. differentiation (d; easy; p. 45; LO2; AACSB Communication) 34.

Chapter Two: Advertising’s Role in Marketing

35.

Which element of the marketing mix includes distribution channels, market coverage, and storage? a. product b. promotion c. price d. communication e. place (e; moderate; p. 45 [Figure 2.2]; LO2) 36.

When a company distributes its products directly to buyers without the use of a reseller, this is known as ________. a. indirect marketing b. no-channel marketing c. direct marketing d. indirect channel marketing e. integrated marketing (c; moderate; p. 46; LO2; AACSB Analytical Skills) 37.

When a company distributes its products through a channel structure that includes one or more resellers, this is known as ________. a. indirect marketing b. dual-channel marketing c. direct marketing d. multi-level marketing e. integrated marketing (a; moderate; p. 46; LO2; AACSB Analytical Skills) 38.

In which type of allowance does the producer share with the reseller the cost of placing an advertisement? a. off-invoice allowance b. buying allowance c. promotional allowance d. cooperative advertising allowance e. communication allowance (d; moderate; p. 46; LO2; AACSB Analytical Skills) 39.

Which strategy directs marketing efforts at the consumer? a. push b. end-user c. pull d. coverage e. cooperative (c; moderate; p. 46; LO2; AACSB Communication)

Part One: A Passion for the Business

40.

A ________ strategy directs marketing efforts at resellers, and success depends on the ability of these intermediaries to market the product, which they often do with advertising. a. push b. pull c. coverage d. direct e. pulley (a; moderate; p. 46; LO2; AACSB Communication) 41.

Which of the following is NOT a factor on which the price of a product is based? a. what the market will bear b. the amount of support provided by resellers c. economic well-being of the consumer d. the consumer’s ability to gauge the value e. the relative value of the product (b; difficult; p. 46; LO2) 42.

Which pricing strategy uses a single, well-known price for a long period of time? a. psychological pricing b. cost-plus pricing c. customary pricing d. typical pricing e. normal pricing (c; moderate; p. 46; LO2) Which pricing strategy uses advertising to manipulate the customer’s judgment of value? a. psychological pricing b. deceptive pricing c. relative pricing d. comparative pricing e. customary pricing (a; moderate; p. 46; LO2) 43.

44.

Which marketing communication tool uses face-to-face contact between the marketer and a prospective customer? a. advertising b. sales promotion c. public relations d. personal sales e. customary marketing (d; easy; p. 47; LO2; AACSB Communication)

Chapter Two: Advertising’s Role in Marketing

Which of the following is considered a “key player” in the marketing industry? a. marketer b. suppliers or vendors c. distributors or retailers d. agencies e. all of the above (e; moderate; pp. 48-49; LO3; AACSB Analytical Skills) 45.

46.

Which key player in marketing is the organization, company, or manufacturer producing the product and offering it for sale? a. marketer b. supplier or vendor c. distributor or retailer d. agency e. brand manager (a; easy; p. 49; LO3) 47.

In most companies of any size, the marketing function is handled by a(n) ________. a. agency b. consultant c. marketing department d. brand manager e. advertising department (c; easy; p. 49; LO3; AACSB Analytical Skills) 48.

Who is responsible for all the strategic decisions relating to a brand’s product design and manufacture as well as the brand’s pricing, distribution, and marketing communications? a. marketing manager b. vice-president of marketing c. director of marketing d. brand manager e. advertising manager (d; difficult; p. 49; LO3; AACSB Analytical Skills) 49.

The materials and ingredients used in producing the product are obtained from other companies who are referred to as ________. a. marketers b. suppliers or vendors c. distributors or retailers d. agencies e. supply chainers (b; moderate; p. 49; LO3; AACSB Analytical Skills)

Part One: A Passion for the Business

50.

The complex network of suppliers who produce components and ingredients that are then sold to the manufacturer is known as the ________. a. network chain b. channel of distribution c. supply chain d. ingredient chain e. distribution chain (c; easy; p. 49; LO3; AACSB Analytical Skills) 51.

In marketing theory, every contribution from the supply chain adds ________ to the product. a. value b. costs c. complexity d. convenience e. ingredients (a; moderate; p. 49; LO3; AACSB Reflective Thinking) 52.

________ means acknowledging a supplier’s brand as an important product feature. a. Co-branding b. Ingredient branding c. Inside branding d. Inclusive branding e. Shared branding (b; moderate; p. 49; LO3) 53.

The ________ refers to the various companies that are involved in moving a product from its manufacturer into the hands of its buyer. a. network chain b. distribution chain c. supply chain d. ingredient chain e. promotion network (b; easy; p. 49; LO3) 54.

Which of the following types of businesses is NOT considered part of the distribution chain? a. dealers b. wholesalers c. brokers d. vendors e. retailers (d; difficult; p. 49; LO3; AACSB Analytical Skills)

Chapter Two: Advertising’s Role in Marketing

55.

Wholesalers primarily use which promotion tool? a. advertising b. public relations c. personal selling d. television e. all of the above (c; moderate; p. 49; LO3; AACSB Communication) 56.

Which of the following is NOT a media vehicle typically used by wholesalers? a. television b. direct mail c. trade papers d. catalogs e. all of the above are typically used by wholesalers (a; moderate; p. 49; LO3; AACSB Communication) 57.

To whom is retailers’ advertising directed? a. their customers b. wholesalers c. brokers d. manufacturers e. customers of the manufacturers (a; difficult; p. 49; LO3; AACSB Communication) 58.

Which of the following is NOT considered a main benefit of hiring an advertising agency? a. specialized services b. more creative advertising c. objective advice d. experienced staffing e. tailored management of all advertising activities and personnel (b; difficult; p. 51; LO4) 59.

Which of the following is a function included in a full-service agency? a. account management b. creative services c. media planning and buying d. account planning e. all of the above (e; easy; p. 53; LO4)

Part One: A Passion for the Business

60.

Which department of a full-service advertising agency handles internal tracking on completion of projects? a. account management b. creative services c. media planning and buying d. account planning e. traffic (e; moderate; p. 55; LO4) 61.

________ are ad agencies, usually small, that concentrate entirely on preparing the creative execution of client marketing communications. a. Creative freelancers b. Creative boutiques c. Specialized agencies d. Media-buying services e. Traffic coordinators (b; moderate; p. 53; LO4; AACSB Communication) 62.

Which of the following is NOT a reason media-buying services agencies are in high demand? a. Media has become more complex as the number of choices grows. b. Technology has made this function very complicated. c. The cost of maintaining a competent media department has escalated. d. Media-buying services often buy media at a low cost because they can group several clients’ purchases together to develop substantial buying power. e. All of the above are reasons media-buying services agencies are in high demand. (b; difficult; p. 54; LO4; AACSB Communication) 63.

Which department of an advertising agency acts as a liaison between the client and the agency? a. account management b. creative services c. media planning and buying d. account planning e. traffic (a; moderate; p. 54; LO4)

Chapter Two: Advertising’s Role in Marketing

64.

Which level of account management in a major agency provides leadership on strategic issues and looks for new business opportunities? a. account supervisor b. account executive c. account vice president d. management supervisor e. account director (d; moderate; p. 54; LO4) 65.

The ________ is responsible for day-to-day activities and operates like a project manager in an advertising agency. a. account supervisor b. account executive c. account vice president d. management supervisor e. account director (b; moderate; p. 54; LO4) 66.

Who gathers all available intelligence on the market and consumers and acts as the voice of the consumer, becoming the strategic specialist who prepares comprehensive recommendations about consumers’ wants, needs, and relationship to the client’s brand and how the advertising should work to satisfy those elements based on insights they derive from consumer research? a. account manager b. copywriter c. account planner d. management supervisor e. account director (c; moderate; p. 54; LO4; AACSB Analytical Skills) 67.

A ________ is the amount an ad agency charges the client as a percentage of the media cost. a. fee b. retainer c. commission d. flat rate e. percentage rate (c; easy; p. 55; LO4)

Part One: A Passion for the Business

68.

A ________ brand is one marketed in a single country. a. national b. local c. regional d. limited e. minor (b; moderate; p. 58) 69.

________ uses databases to drive communication with customers and keep track of their interactions with a company. a. Integrated marketing b. Relationship marketing c. Permission marketing d. Customer relationship management e. International marketing (d; difficult; p. 57; AACSB Use of IT) 70.

The practice of inviting prospective customers to sign up or self-select themselves into a brand’s target market in order to receive marketing communications is referred to as ________. a. integrated marketing b. relationship marketing c. permission marketing d. customer relationship management e. selective marketing (c; moderate; p. 57; AACSB Communication) GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

Marketing is the way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted. (True; easy; p. 34; LO1; AACSB Analytical Skills) 72. The goal in marketing is to sell as many products as possible. (False; moderate; p. 35; LO1; AACSB Analytical Skills) 73.

A company that operates with a marketing concept philosophy focuses on satisfying its customers’ needs and wants. (True; easy; p. 35; LO1; AACSB Analytical Skills) 74.

It is considered inappropriate to use a product or company-focused approach in advertising. (False; moderate; p. 35; LO1; AACSB Reflective Thinking)

Chapter Two: Advertising’s Role in Marketing

75.

Advertising is the process of creating a special meaning for a product, one that makes it distinctive in the marketplace and in its product category. (False; moderate; p. 38; LO1; AACSB Communication) 76.

Brand equity is the reputation, meaning, and value that the brand name or symbol has acquired over time and measures the financial value the brand contributes to the company. (True; easy; p. 39; LO1; AACSB Analytical Skills) 77. Advertising can add value to a brand. (True; moderate; p. 38; LO1; AACSB Communication) 78.

When marketing strategists speak of markets, they generally refer to groups of people or organizations. (True; moderate; p. 41; LO2; AACSB Communication) 79.

Institutional markets consist of people who buy products and services for personal use. (False; easy; p. 41; LO2; AACSB Analytical Skills) 80. Institutional markets are made up of nonprofit organizations only. (False; moderate; p. 41; LO2; AACSB Analytical Skills) 81.

Institutional markets are wholesales, retailers, and distributors who buy finished products and resell them for a profit. (False; moderate; p. 41; LO2; AACSB Analytical Skills) 82.

Businesses spend most of their advertising dollars on business-to-business markets. (False; moderate; p. 43; LO2; AACSB Communication) 83. The first step in the marketing process is to set objectives for the marketing effort. (False; difficult; p. 43; LO2) 84. The marketing process begins with the production of a product. (False; moderate; p. 43; LO2; AACSB Communication) 85.

Gathering information from already existing and published sources is known as primary research. (False; moderate; p. 43; LO2; AACSB Analytical Skills) Primary research identifies the brand’s strengths and weaknesses, as well as corporate and market opportunities and threats. (False; moderate; p. 43; LO2; AACSB Analytical Skills) 86.

Part One: A Passion for the Business

87.

The process of assessing whether there are identifiable groups within the market whose needs and wants intersect with the product and its features is known as targeting. (False; moderate; p. 44; LO2) 88.

Positioning refers to how consumers view and compare competitive brands or types of products—how they see a brand relative to other brands in the category. (True; moderate; p. 44; LO2) 89. The product is both the object of the advertising and the reason for marketing. (True; moderate; p. 44; LO2; AACSB Communication) 90.

A push strategy directs marketing efforts at the consumer in an attempt to stimulate consumer demand. (False; moderate; p. 46; LO2; AACSB Communication) 91.

The key players in the marketing industry include the marketer, suppliers or vendors, distributors and retailers, and agencies. (True; moderate; p. 48; LO3; AACSB Reflective Thinking) 92.

The marketing manager is the person in the marketer’s organization responsible for all the strategic decisions relating to the brand’s product design and manufacture as well as the brand’s pricing, distribution, and marketing communications. (False; difficult; p. 49; LO3) 93.

The materials and ingredients used in producing the product are obtained from other companies who are referred to as distributors. (False; moderate; p. 49; LO3) 94.

The channel of distribution refers to the complex network of suppliers who produce components and ingredients that are then sold to the manufacturer. (False; moderate; p. 49; LO3) 95.

Co-branding means acknowledging a supplier’s brand as an important product feature. (False; moderate; p. 49; LO3; AACSB Analytical Skills) 96.

The supply chain refers to the various companies that are involved in moving a product from its manufacturer into the hands of its buyer. (False; moderate; p. 49; LO3) 97.

Resellers may actually take ownership of the product and participate in the marketing, including the advertising. (True; moderate; p. 49; LO3; AACSB Communication)

Chapter Two: Advertising’s Role in Marketing

98. Only manufacturers advertise. (False; moderate; p. 49; LO3; AACSB Communication) 99.

Retailers’ main concern with respect to advertising is that it be directed at their customers as opposed to the customers of the manufacturers. (True; difficult; p. 49; LO3; AACSB Communication) 100.

Creative boutiques are ad agencies, usually small, that concentrate entirely on preparing the creative execution of client marketing communications. (True; easy; p. 53; LO4; AACSB Communication) 101.

The management supervisor is the key executive on a client’s business and the primary liaison between the client and the agency. (False; moderate; p. 54; LO4; AACSB Communication) 102.

A media planner is a type of planner who gathers all available intelligence on the market and consumers and acts as the voice of the consumer. (False; moderate; p. 55; LO4; AACSB Analytical Skills) 103.

The traffic department in a full-service advertising agency acts as a liaison between the client and the agency. (False; moderate; p. 55; LO4; AACSB Analytical Skills) 104.

Integrated marketing (IM) is a recent trend that uses databases to drive communication with customers and keep track of their interactions with a company. (False; moderate; p. 57; LO4; AACSB Use of IT) 105.

The practice of inviting prospective customers to sign up or self-select themselves into a brand’s target market in order to receive marketing communication is referred to as permission marketing. (True; easy; p. 57; LO4; AACSB Communication)

Part One: A Passion for the Business

GENERAL CONTENT: ESSAY QUESTIONS 106.

Identify the four key concepts in marketing and explain how they relate to advertising. Answer:

The four key concepts in marketing and how they relate to advertising: (1) Marketing Concept—An approach that suggests marketing should focus first on identifying the needs and wants of the customer, rather than on finding ways to sell products that may or may not meet customers’ needs. This concept suggests that marketers must first determine the customers’ needs and wants and then develop, manufacture, market, and service goods that fill those particular needs and wants, thus creating solutions for customers’ problems. Both of these steps are addressed in advertising planning through consumer research and the methods used by planners to develop insight into consumer decision making. (2) Exchange—The act of trading a desired product or service to receive something of value in return. Typically, money is exchanged for products, which can be goods, services, or ideas. In addition to economic exchange, marketing also facilitates communication exchange. Advertising provides information, as well as the opportunity for customer-company interaction. So exchange has two meanings in marketing with the communication meaning being particularly important to advertising. (3) Branding—The process of creating a special meaning for a product, one that makes it distinctive in the marketplace and in its product category. That special meaning, or brand image, is the result of communication, as well as consumers’ own personal experiences with the product. A brand, and the advertising behind it, creates familiarity, and a familiar brand is important when consumers make major purchases. (4) Added Value—Marketing and advertising activities add value to a product. Advertising not only can showcase the product’s value but also may add value by making the product appear more desirable or more of a status symbol. Providing news and useful information of interest to consumers is another way that advertising adds value. (moderate; pp. 35–41; LO1; AACSB Communication)

Chapter Two: Advertising’s Role in Marketing

107.

Name and describe the four main types of markets, and discuss characteristics of advertising targeted toward each market, respectively.

Answer: (1) Consumer Markets—Consist of people who buy products and services for personal or household use. Just about any product an individual purchases including clothing, food, books, health and beauty aids, and so forth can be advertised to consumers through mass media such as radio, television, newspapers, general consumer magazines, and direct-response media, such as direct mail. Businesses spend most of their advertising dollars on this market. (2) Business-to-Business (Industrial) Markets—Consist of companies that buy products or services to use in their own businesses or in making other products. Ads in this category usually are heavier on factual content than on emotional appeals. This market is typically reached through trade and professional advertising in specialized media, such as trade journals, professional magazines, and direct mail. (3) Institutional Markets—Include a wide variety of profit and nonprofit organizations, such as hospitals, government agencies, and schools, which provide goods and services for the benefit of society. Such ads are very similar to business-to-business ads in that they are heavy on copy and light on visuals and emotional appeal. This market is typically reached through the same means as industrial markets. (4) Channel Markets—Made up of members of the distribution chain, also known as resellers or intermediaries. Resellers are wholesalers, retailers, and distributors who buy finished products and resell them for a profit. Manufacturers often expect channel members to participate in advertising programs through cooperative (or co-op) advertising allowances in which producers share with the reseller the cost of placing the advertisement. This market is also typically reached through the same means as industrial and institutional markets. (moderate; pp. 41-43; LO2; AACSB Communication)

Part One: A Passion for the Business

108.

Compare and contrast push and pull strategies and explain the role of advertising in each. Answer:

A pull strategy directs marketing efforts at the consumer and attempts to pull the product through the channel by intensifying consumer demand. Marketers using this strategy emphasize consumer advertising. In contrast, a push strategy directs marketing efforts at resellers, and success depends on the ability of these intermediaries to market the product, which they often do with advertising. Advertising may be targeted first at resellers to gain their acceptance, then at consumers through joint manufacturer-reseller advertising (i.e., co-op advertising). (moderate; pp. 46-47; LO2; AACSB Communication) 109.

Identify the four important categories of key players in marketing and how the organization of the industry affects advertising. Answer: (1)

Marketer (a.k.a. Advertiser or Client)—Any company or organization behind the product (i.e., the organization, company, or manufacturer producing the product and offering it for sale). This organization performs all the functions of marketing, and advertising is part of the communication function. (2) Suppliers and Vendors—Supply the materials and ingredients used in producing the product. In marketing practice these suppliers and vendors are partners in the creation of a successful product. They are also partners in the communication process and their marketing communication may relate to the brand, particularly in the practice called ingredient branding, which means acknowledging a supplier’s brand as an important product feature. (3) Distributors and Retailers—Companies that are involved in moving a product from its manufacturer into the hands of its buyer. Wholesalers and retailers are important parts of the channel and each is capable of influencing, supporting, and delivering advertising messages. Retailers are especially good at local advertising, but their main concern is that the advertising be directed at their customers as opposed to the customers of the manufacturers. (4) Agencies—Do all or part of the work of advertising, implementing the creative vision of the client (marketer), and helping it to reach its advertising goals. (moderate; pp. 48-50; LO3; AACSB Reflective Thinking)

Chapter Two: Advertising’s Role in Marketing

110.

Explain why a company would use an advertising agency and describe the major functions performed by a full-service agency. Answer: A company might use an advertising agency because an agency provides specialized services, objective advice, experienced staffing, and tailored management of all advertising activities and personnel. Ultimately, the primary benefit of hiring an ad agency is that it can implement the creative vision of the client and help it to reach its advertising goals.

A full-service agency is one that includes the four major staff functions—account management, creative services, media planning and buying, and account planning (a.k.a. research). A full-service agency will also have its own accounting department, a traffic department to handle internal tracking on completion of projects, a department for broadcast and print production (usually organized within the creative department), and a human resources department. (easy; p. 53; LO4; AACSB Reflective Thinking) APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

In the chapter opening vignette, Puma CEO, Jochen Zeitz, explained why individualism is so important to the shoe company saying, “Like the puma as an animal is not a herd animal, we also want people and our brand to stand for individuality . . .” Puma shoes stay hip through design innovation and also by linking up with other hot icons, such as outfitting the tennis great Serena Williams. Which basic concept of marketing does this illustrate? a. exchange b. branding c. added value d. marketing concept e. distribution (b; moderate; pp. 33 and 39; LO1; AACSB Communication) 112.

Puma sells its edgy designs to trendy retailers but also sells its more mainstream products in stores such as Foot Locker. Which marketing mix element does this strategy illustrate? a. product b. price c. place d. promotion e. branding (c; easy; pp. 33 and 45; LO2; AACSB Analytical Skills)

Part One: A Passion for the Business

113.

During the 2003 World Cup, which was held in Japan and South Korea, Puma got a well-known sushi chef to create a special Puma sushi roll that was served in select Japanese restaurants in cities around the world. Puma also discretely announced the sponsorship in its company-branded chopsticks, sake cups, and napkins. At the same time, Puma partnered with the Terence Conran design shop to sell an exclusive version of its World Cup soccer boot, holding weekend sushimaking events at the home furnishings store. Which marketing mix element does this strategy illustrate? a. product b. price c. place d. promotion e. branding (d; moderate; pp. 33 and 47; LO2; AACSB Communication) 114.

Sam is a brand manager for a manufacturer of consumer package goods. Part of his job entails launching new products into the marketplace. Before he launches a new product, however, Sam’s department conducts extensive research to identify the needs and wants of the customer, rather than finding ways to sell products that may or may not meet customers’ needs. Which key concept of marketing is Sam implementing? a. exchange b. branding c. added value d. marketing concept e. customer concept (d; moderate; p. 36; LO1; AACSB Analytical Skills) 115.

Peter purchased an inexpensive necklace from a department store to give to his sweetheart, Julie, on Valentine’s Day. He didn’t want her to know that he did not spend very much for the jewelry, so he put it in a box he had from an upscale jewelry store that sells only expensive items. When Julie unwrapped her gift, she was excited to see that it came from this store and absolutely loved the necklace Peter gave her. Which key concept of marketing does this illustrate? a. exchange b. branding c. added value d. marketing concept e. distribution (b; difficult; pp. 38-39; LO1; AACSB Reflective Thinking)

Chapter Two: Advertising’s Role in Marketing

116.

According to a 2007 Business Week article, which company represents the top global. brand in terms of brand equity? a. Kellogg b. Aflac c. Coca-Cola d. UPS e. Eli Lilly (c; moderate; p. 39 [Table 2.1] LO1) 117.

Laurie owns a 2002 Honda Accord, which is the third Honda vehicle that she and her husband have owned. They describe themselves as a “Honda” family and intend to purchase another Honda automobile when their daughter gets her driver’s license because they know and trust Hondas. The purchase decision is made much easier by the trust they place in Honda. Which key concept of marketing does this illustrate? a. exchange b. branding c. added value d. marketing concept e. distribution (b; moderate; p. 39; LO1; AACSB Reflective Thinking) 118.

When Tylenol brand of pain relief capsules were tampered with resulting in the death of several consumers, the manufacturer pulled all of its products from store shelves, redesigned packaging to resist tampering, and reintroduced noncapsule forms of the product. This was very expensive for Tylenol to do, but they knew that the reputation, meaning, and value that their brand name had acquired over time provide financial value to the company. Today, Tylenol brand medications have the reputation of being high-quality products even though the public knows that consumers have died from using one of their products in the past. The reputation, meaning, and value that the Tylenol brand name has acquired over time in known as ___________. a. brand image b. trademark c. branding d. added value e. brand equity (e; moderate; p. 39; LO1; AACSB Reflective Thinking)

Part One: A Passion for the Business

119.

Procter & Gamble has sales of almost $50 billion and spends more than $4 billion on advertising every year. Their corporate brand value is estimated to be more than $107 billion. In terms of key players in marketing, which one does Procter & Gamble represent? a. marketer b. supplier or vendor c. distributor d. agency e. media (a; easy; p. 49; LO3; AACSB Communication) 120.

Tammy works at Procter & Gamble and is responsible for all the strategic decisions relating to P&G’s Tide brand of laundry detergent’s design and manufacturer as well as the brand’s pricing, distribution, and marketing communications. What is most likely Tammy’s job title? a. account supervisor b. product or brand manager c. marketing manager d. account executive e. product champion (b; moderate; p. 49; LO3; AACSB Reflective Thinking) 121.

Amco, Inc. manufactures small electronic components that become integral parts of the electronic systems in automobiles. Amco does not sell directly to auto manufacturers, but rather through brokers that are involved in selling the components to the auto manufacturers. Additionally, another company is employed to deliver the goods. All of these organizations are part of the ___________ in getting electronic component parts to the automobile manufacturers. a. distribution network b. supply chain c. marketing network d. marketing chain e. logistics chain (b; moderate; p. 49; LO3; AACSB Analytical Skills) 122.

What marketing organization ranked number one in 2007? a. Sony b. Toyota c. General Motors d. Omnigroup e. Time Warner (d; difficult; p. 51 [Table 2.2]; LO4)

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123.

Intel manufactures computer chips that are part of several personal computer manufacturers’ finished product. Intel and the computer manufacturers realized that customers valued Intel computer chips due to their superior quality and reliability and began asking whether or not the computer they were considering purchasing contained an Intel computer chip. As a result, Intel and computer manufacturers started communicating in their marketing communications that there’s “Intel Inside.” This is an example of ________. a. primary branding b. secondary branding c. supply chain branding d. component branding e. ingredient branding (e; moderate; p. 49; LO3; AACSB Communication) 124.

Your parents own a small business and have asked for your assistance in advertising. Your father has done some advertising on local television that was not very effective, but he doesn’t want to spend money on someone to “tell me what I already know.” You know there are benefits to hiring an agency, and you are trying to convince your father that he should hire an advertising agency to assist in his advertising efforts. You tell your father several benefits. Which of the following is NOT a benefit of hiring an agency? a. Agencies provide specialized services. b. Agencies provide objective advice. c. Agencies will charge you only for the work based on the increase in sales you experience. d. Agencies can provide tailored management of all advertising activities and personnel. e. Agencies have experienced staffing. (c; moderate; p. 51; LO4; AACSB Analytical Skills) 125.

What is the world’s top consolidated agency network in 2007? a. Dentsu b. BBDO Worldwide c. McCann-Erickson Worldwide d. J. Walter Thompson Company e. Publicis Worldwide Communications (a; difficult; p. 53, [Table 2.3]; LO4)

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126.

Juan works at BBDO Worldwide advertising agency, and his responsibilities include providing leadership on strategic issues and looking for new business opportunities. He doesn’t actually work on any of BBDO’s client accounts. What is Juan’s job title? a. account manager b. management supervisor c. account supervisor d. account executive e. account director (b; moderate; p. 54; LO4)

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Johnson & Johnson manufactures health and beauty aid products under several brand names. They sell their products to ultimate consumers through retail stores such as grocery, drug, and discount stores. J&J employs a sales force that calls on intermediaries, such as wholesalers and retailers, and spends part of their promotion budget on trade deals to influence intermediaries to carry their brands. The remainder of J&J’s promotion budget is spent on mass advertising and sales promotions, such as coupons, targeted toward consumers. 127.

Mini-Case Question. Which promotion strategy is J&J pursuing primarily? a. push b. indirect c. direct d. pull e. combination (e; difficult; p. 46 [Figure 2.3]; LO2; AACSB Communication) 128.

Mini-Case Question. J&J also markets their Tylenol brand of pain relievers to hospitals. What type of market is that? a. consumer b. primary c. institutional d. reseller e. secondary (c; easy; p. 41; LO2)

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129.

Mini-Case Question. J&J is interested in launching a new line of skin care products for the female “tween” market, that is, girls between eight and twelve years of age. They decided to use U.S. Census data to help them determine the absolute size of this market. What type of research is this? a. primary b. direct c. indirect d. secondary e. public (d; moderate; p. 43; LO2) 130.

Mini-Case Question. Bob works at one of the advertising agencies that do J&J’s advertising for skin care products. J&J has decided that this agency will also be the agency that will develop and execute the advertising for their new line of skin care products for the female “tween” market. Bob is the key executive working on J&J’s business and the primary liaison between J&J and the agency. What is most likely Bob’s job title? a. management supervisor b. account supervisor c. account executive d. account director e. manager-of-record (b; moderate; p. 54; LO4; AACSB Analytical Skills) APPLICATION QUESTIONS: SHORT-ANSWER 131.

Define the marketing concept and when it is used. Answer:

The marketing concept is an approach that suggests marketing should focus first on identifying the needs and wants of the customer, rather than on finding ways to sell products that may or may not meet customers’ needs. It should be used in all marketing situations, except perhaps where product innovation is important, such as high technology. In that case, the product or corporate-focused approach might still be used. (easy; p. 35; LO1)

Part One: A Passion for the Business

132.

Explain how Puma communicates its brand image to consumers. Answer:

Puma wants its brand to stand for individuality and as such, positions the brand so it blends sports, lifestyle, and fashion in a unique way. The brand stays hip through design innovation and also by linking up with other hot icons, such as Serena Williams. Puma also marketed a driving shoe called the “Mini Motion” shoe, which is marketed as an accessory to the BMW Mini car. Elements of the shoe’s identity were also used for the car’s seats and exterior. Another new line features boots inspired by 1950s boxing shoes, as well as black shoes stitched to look like old-time hockey skates, and Puma’s apparel is equally fashionable with a line of unisex garments patterned after martial-arts robes. To reach the mainstream market, Puma advertised during the Athens Olympics. Its channel strategy delivers both exclusivity and a mass-market audience, selling its edgy designs to trendy retailers and then placing its more mainstream products in stores such as Foot Locker. Puma uses eye-catching in-store merchandising and viral marketing to spread the word about new products through an online network. Other clever ideas include promotions at sushi restaurants during the 2003 World Cup, which was held in Japan and South Korea. A well-known sushi chef created a special Puma sushi roll that was served at select restaurants around the world. The company also discretely announced the sponsorship of Puma-branded chopsticks, sake cups, and napkins. (moderate; pp. 33-34; LO1; AACSB Communication) 133.

Explain why someone would rather have a Rolex watch than a Timex watch, which is as reliable as a Rolex but considerably less expensive? Answer:

Although both are well-known brands, Rolex has built its brand image on quality and luxury. It’s a status symbol to own a Rolex, and the watch is perceived more as a piece of jewelry than merely a timepiece. Timex is known as an inexpensive, reliable timepiece. Through effective branding, Rolex has transformed this product by creating a special meaning for it, and the meaning of the brand also tells something about the person wearing that brand. (moderate; p. 39; LO1)

Chapter Two: Advertising’s Role in Marketing

134.

Describe the evolution of Procter & Gamble’s Ivory soap. Answer:

P&G created identity elements for its brand Ivory before anyone had thought of making a bar of soap a distinctive product. The Ivory brand identity system also called attention to innovative features of the product. In the old days, soap wasn’t like it is today; indeed, it was homemade from lye, fats, and fireplace ashes. It was a soft jelly-like yellowish soap that would clean, but if it fell to the bottom of a pail, it dissolved into mush. The Castile bar, which was a pure white soap imported from the Mediterranean and made from the finest olive oil, was considered the benchmark for quality soap and highly expensive. P&G discovered a formula that produced a uniform, predictable bar soap, which they provided in wooden boxes to both armies during the Civil War, introducing the concept of mass production, and created a huge market when returning soldiers demanded the bars for home use. But these bars were still yellow and sunk to the bottom. So P&G created a white bar equivalent to the Castile bar, becoming the “soap that floats” by accidentally whipping in too much air, which made the bar lighter. This claim—”It floats”—became one of the world’s greatest statements of a product benefit. The soap was named “Ivory soap,” resulting in consumers asking for it by name. P&G also learned that Ivory had only 0.56 percent impurities, leading to the claim that it was “99 and 44/100 percent pure,” which is one of the most famous slogans in brand history. (moderate; p. 40; LO1; AACSB Reflective Thinking) 135.

Nike is an international brand with a distinctive brand image. Name and describe the four important categories of key players involved in the marketing of this brand. Answer:

The four important categories of key players are the marketer, suppliers or vendors, distributors and retailers, and agencies. Nike is the marketer of the Nike brand, that is, it’s the company behind the product that produces the product and offers it for sale. The materials and ingredients used in producing the Nike products are obtained from other companies who are referred to as suppliers and vendors. Their work also determines the quality of the final product, and the ingredients they provide, as well as the cost of their materials, are a big factor in determining Nike’s price. The distribution chain or channel refers to the various companies that are involved in moving Nike products from its manufacturer to the consumer. These resellers, or intermediaries, may actually take ownership of the product and participate in the marketing, including the advertising. Finally, agencies provide specialized marketing communication services (i.e., advertising, public relations, sales promotion, direct marketing, etc.). (moderate; pp. 48-50; LO4; AACSB Analytical Skills)

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136.

Bob is a brand manager at a large consumer packaged goods company. Describe his responsibilities. Answer:

A product or brand manager is the person responsible for all the strategic decisions relating to the brand’s product design and manufacture as well as the brand’s pricing, distribution, and marketing communication. Basically, the brand manager is responsible for the marketing of the brand. (easy; p. 49; LO3; AACSB Reflective Thinking) 137.

When Dell computer indicates in its ads and on its computer boxes “Intel inside,” what type of branding is this, and why does Dell do this? Answer:

This is called ingredient branding, which means acknowledging a supplier’s brand as an important product feature. Dell knows that the quality and reputation of the Intel brand of computer chips adds value to its product and wants to communicate that to buyers. (easy; p. 49; LO3; AACSB Communication) 138.

Compare and contrast an advertisement for Neutrogena brand of skin care products developed by the manufacturer and one developed by a retailer that sells these products. Answer:

Neutrogena is a nationally distributed brand that can be purchased through a variety of retail outlets, such as drug, discount, and grocery stores. An ad for Neutrogena developed by the manufacturer would feature only that brand, and perhaps only one product in the Neutrogena line, and would attempt to develop and enhance the image of the brand. Retailers’ main concern is that the advertising be directed at their customers as opposed to the customers of the manufacturers, and the ads would feature several product categories and brands. The focus of the retail ad that features Neutrogena products would be to inform the consumer of the availability, and most likely, the price of the product at their store. (moderate; p. 49; LO3; AACSB Communication)

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139.

You just graduated from college and started working at a consumer packaged goods manufacturer. Your first assignment is to develop the marketing strategy for a new product extension of an existing brand. Where do you begin? Answer:

You begin at the first step of the marketing process, which is to research the market, consumers, and the competitive marketplace, and develop a situation analysis. The objective is to know as much as you can about the marketplace so that you can make informed and insightful strategic decisions. You should do secondary research, which is gathering information from already existing and published sources, and perhaps conduct primary research, which is original research undertaken to answer specific questions. The second part of research is the situation analysis, which identifies the brand’s strengths and weaknesses, as well as corporate and market opportunities and threats. The goal of marketing research is both information and insight. (moderate; p. 43; LO2; AACSB Reflective Thinking) 140.

Blenco. Inc. is a manufacturer of frozen breakfast products, such as biscuits, pancakes, and waffles. Blenco does not spend any money on consumer advertising or promotions, but rather concentrates its promotion budget on intermediaries in the channel of distribution. What promotion strategy is Blenco pursuing and which promotion tools are most appropriate for implementing this strategy? Answer:

Blenco is pursing a push promotion strategy that concentrates the flow of marketing communication on the members of the channel of distribution rather than on end consumers. Blenco is most likely utilizing trade deals, trade advertising, and personal selling to get its products in the channel of distribution. (moderate; p. 47 [Figure 2.3] ; LO2; AACSB Communication)

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141.

Andy has conducted extensive research in the marketing process, and now he has some key strategic decisions to make. Name and describe these decisions. Answer:

The key strategic decisions in the marketing process include setting objectives, segmenting and targeting, and differentiation and positioning. The marketer’s first step after research is done is to set objectives for the marketing effort, which usually are business measures, such as increased sales levels or share of market. The next step is to assess whether there are identifiable groups within the market whose needs and wants intersect with the product and its features—called segmentation. Finally, planners also assess the competition and decide where their product’s point of differentiation lies and then make some decisions about how to present or position the product within this competitive environment relative to consumers’ needs. Positioning refers to how consumers view and compare competitive brands or types of products—how they see a brand relative to the other brands in the category. (moderate; p. 43; LO2; AACSB Analytical Skills) 142.

You just interviewed for a job with Dial, Inc. and learned that they are looking for someone who will call on grocery, drug, and convenience stores to sell and service Dial’s health and beauty aid items to these types of retailers. What type of personal selling does this represent? Answer:

Field sales. Field sales are a type of personal selling that includes calls at the place of business by a field representative. (Note: This type of personal selling is also called trade selling.) (moderate; p. 47; LO2; AACSB Communication)

Chapter Two: Advertising’s Role in Marketing

143.

What makes Krispy Kreme such a hit with its customers? Answer:

The proprietary recipe for the yeast dough and glazing, along with the companydesigned equipment that produces a perfect doughnut shape and cooks it to the perfect point of softness is at the heart Krispy Kreme’s success. Their stores are another element that attracts Krispy Kreme fanatics with its trademark glass and chrome architecture, which is actually a doughnut bakery with a retail unit added in front, and customers can view the doughnuts being made. Customers are also alerted when hot doughnuts are available through the neon signs proclaiming that message. Krispy Kreme also has expanded distribution through grocery, convenience, and even department stores. You can even buy a Krispy Kreme doughnut from a specially designed mobile store, which is a truck with viewing windows to bring the hot, fresh doughnuts to fairs and other major events. For many years, Krispy Kreme’s success was due to word-of-mouth by customers who were passionate about its doughnuts, and its primary marketing communication was with nonprofit organizations who sold the doughnuts in their fund-raising efforts. (moderate; p. 47; LO2; AACSB Reflective Thinking) 144.

Carol is a management supervisor for AMM&N, Inc. advertising agency. She is meeting with a small manufacturer of a frozen line of Mexican dinners who wants to start advertising their products but is not sure that they should hire an advertising agency to assist them. What should Carol tell them to convince them that hiring an advertising agency would be beneficial for them? Answer:

Hiring an agency has several benefits. Agencies provide specialized services, objective advice, experienced staffing, and tailored management of all advertising activities and personnel. Ultimately, the primary benefit of hiring an ad agency is that it can implement the creative vision of the client and help it to reach its advertising goals. (easy; p. 51; LO4; AACSB Communication)

Part One: A Passion for the Business

145.

Frank is a partner in a media-buying service, which is a type of advertising agency that specializes in the purchase of media for clients. Frank contacts major national advertisers and tries to convince them to separate the media planning and buying function from the other functions performed by their full-service advertising agencies and is having quite a bit of success. Several of his clients include manufacturers of multiple brands that have “unbundled” the media function from their various agencies-of-record and pooled the media planning and buying function together as well as several full-service advertising agencies that contract out this function to Frank’s agency. Why do you think Frank’s mediabuying service is in high demand? Answer:

Media-buying services are in high demand for three important reasons. First, media has become more complex as the number of choices grows with the proliferation of new cable television channels, magazines, radio stations, and newer, alternative media, such as the Internet. Second, the cost of maintaining a competent media department has escalated. Third, media-buying services often buy media at a low cost because they can group several clients’ purchases together to develop substantial buying power. (moderate; p. 54; LO4; AACSB Analytical Skills) 146.

Maria started working at a large advertising agency after graduating with a degree in advertising. Her job title is assistant account executive. Describe what she does. Answer:

An account executive is one level of the account management function of an advertising agency. The account executive, which Maria assists, is responsible for day-to-day activities and operates like a project manager. (moderate; p. 54; LO2; AACSB Reflective Thinking)

Chapter Two: Advertising’s Role in Marketing

147.

Amanda is a marketing major interested in a career in advertising and wants to work at an advertising agency. She does not have any aptitude, talent, skill, or training to be involved in the creative aspects of advertising, but she feels she can still work in this business. Name and describe the functions of a full-service agency in which Amanda could apply her marketing knowledge and skills. Answer:

A full-service agency is one that includes four major staff functions—account management, creative services, media planning and buying, and account planning. A full-service agency will also have its own accounting department, a traffic department to handle internal tracking on completion of projects, a department for broadcast and print production (usually organized within the creative department), and a human resources department. With her educational background, Amanda could become an expert in account management, which involves developing and maintaining client relationships; media planning and/or buying, which involves planning and negotiating skills; and account management, which is basically consumer research. (difficult; p. 54; LO2; AACSB Analytical Skills) APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Gore-tex is a revolutionary material that is used in several types of outer- and athleticwear that can keep consumers warm and dry in the winter but also cool in the summer. It is lighter and stronger than other types of materials, such as wool or cotton, and costs more. However, many consumers of these products were not aware of the advantages of Gore-tex when comparing products and were put off by the very high price. To change this, Gore-tex hired an advertising agency to assist them in creating a special meaning for their brand and to communicate the advantages to end-user consumers. They also worked with the manufacturers of the products into which Gore-tex was incorporated to encourage them to call attention to the fact that Gore-tex is used in their products. 148.

Mini-Case Question. Which key concept in marketing is illustrated by Gore-tex’s desire to create a special meaning for it, and how can advertising help accomplish this? Answer:

Branding is the process of creating a special meaning for a product, one that makes it distinctive in the marketplace and in its product category. Brand image is the result of communication as well as consumers’ own personal experiences with the product. A brand, and the advertising behind it, creates familiarity. Advertising can also be used to communicate the distinctive advantage of Goretex over other types of material. (moderate; p. 39; LO1; AACSB Communication)

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149.

Mini-Case Question. Manufacturers of apparel products using Gore-tex include that information on their product labels as well as in their advertising. What is this known as, and why do these manufacturers do this? Answer:

This is known as ingredient branding, which means acknowledging a supplier’s brand as an important product feature. Every contribution from the supply chain adds value to the product, and in practice, suppliers and vendors are partners in the creation of a successful product. The quality of the Gore-tex brand of material enhances the quality of the finished products that it goes into. (moderate; p. 49; LO3; AACSB Reflective Thinking) 150.

Mini-Case Question. Gore-tex hired an advertising agency to assist the company in its efforts. The agency purchased $100,000 in media for Gore-tex and was compensated through the standard media commission rate. How much did the agency bill Gore-tex for this work? Answer:

The standard media commission is considered to be 15 percent of all media purchased, which in this case equals $15,000. Thus, the agency added $15,000 to the $100,000 when billing Gore-tex, which comes to a total of $115,000. (difficult; p. 55; LO4; AACSB Reflective Thinking)

CHAPTER THREE Advertising and Society

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

________ is when an external message drives people to feel a need or want to buy a product. a. Demand creation b. Manipulation c. Indirect advertising d. Want creation e. Need creation (a; easy; p. 66; LO1; AACSB Ethical Reasoning) 2.

Advertising’s economic role has been criticized in the way it creates ________, which means people want or feel a need to buy and use a product. a. desires b. demand c. motives d. markets e. profit (b; moderate; p. 66; LO1; AACSB Ethical Reasoning) 3.

The question of whether advertising creates social values rather than merely reflecting them is known as ________. a. the social-versus-economic debate b. the competitive-versus-market power debate c. the personal-versus-cumulative debate d. the personal-versus-social debate e. the shape-versus-mirror debate (e; easy; p. 67; LO1; AACSB Ethical Reasoning) 4.

All EXCEPT which of the following are key ethical issues discussed in this chapter? a. targeting strategies b. problems with advertising claims and other message strategies c. taste and offensive advertising d. unfair acts and practices e. stereotyping (d; moderate; p. 69; LO1; AACSB Ethical Reasoning)

Part One: A Passion for the Business

A ________ is a representation of a cultural group that emphasizes a trait or group of traits that may or may not communicate an accurate representation of the group. a. norm b. reference group c. caricature d. mean e. stereotype (e; easy; p. 71; LO1; AACSB Ethical Reasoning) 6.

A term used to describe what happens when Western culture is imposed on others is known as ________. a. marketing imposition b. cultural imposition c. marketing imperialism d. demand creation e. marketing elitism (c; easy; p. 73; LO1; AACSB Ethical Reasoning) 7.

Marketing imperialism, or cultural imperialism, are terms used to describe ________. a. what happens when advertising is effective in creating demand b. how an external message drives people to feel a need or want for a product c. what happens when people in other cultures adopt Western culture d. how marketers attempt to be ethical e. what happens when Western culture is imposed on others (e; easy; p. 73; LO1; AACSB Ethical Reasoning) 8.

Which of the following is true regarding customs? a. Customs are often subtle and, as a result, are easier to violate than laws. b. Customs are easily discerned. c. Customs are basically the same around the world. d. Customs have little impact on the effectiveness of advertising. e. Only natives of a culture can ever understand local customs. (a; moderate; p. 73; LO1; AACSB Analytical Skills) 9.

Which is NOT an organization with oversight responsibility for advertising? a. government b. media c. competition d. public or community groups e. all of the above have oversight responsibility for advertising (e; difficult; p. 79; LO2; AACSB Ethical Reasoning)

Chapter Three: Advertising and Society

10.

Government oversight responsibility with respect to advertising includes ________. a. standards and reviews b. self-regulation c. laws and regulations d. complaints and punishment e. trademarks and copyrights (c; moderate; p. 79; LO2; AACSB Communication) 11.

________ legislate(s) laws while ________ interpret(s) those laws in specific situations. a. Courts; Congress b. Congress; courts c. The president; courts d. The president; Congress e. Congress; the FTC (b; moderate; p. 79; LO2; AACSB Analytical Skills) 12.

Which arm of the federal government legislates laws regarding advertising? a. executive (the president) b. courts c. Federal Communications Commission d. Congress e. Federal Trade Commission (d; moderate; p. 79; LO2; AACSB Communication) 13.

Which arm of the federal government interprets laws regarding advertising? a. executive (the president) b. courts c. Federal Communications Commission d. Congress e. Federal Trade Commission (b; moderate; p. 79; LO2; AACSB Communication) 14.

A brand, corporate, or store name or a distinctive symbol that identifies the seller’s brand and thus differentiates it from the brands of other sellers is known as a ________. a. trademark b. copyright c. logo d. trade dress e. brand name (a; easy; p. 79; LO2; AACSB Analytical Skills)

Part One: A Passion for the Business

15.

Which of the following is true regarding a trademark? a. It gives an organization the exclusive right to use or reproduce original work such as an advertisement or package design for a period of time. b. Controls for protection are provided by the Library of Congress. c. The Department of Labor protects unique trademarks from infringement by competitors. d. It identifies the seller’s brand and differentiates it from the brands of other sellers. e. It must be registered with the Federal Trade Commission, which gives the organization exclusive use of the mark, as long as the trademark is maintained as an identification for a specific product. (d; difficult; p. 79; LO2; AACSB Reflective Thinking) 16.

Under which amendment or act are unique trademarks protected from infringement by competitors? a. Pure Food and Drug Act b. Wheeler-Lea Amendment c. Lanham Act d. Federal Trade Commission Act e. FTC Improvement Act (c; difficult; p. 79; LO2; AACSB Analytical Skills) 17.

A ________ gives an organization the exclusive right to use or reproduce original work such as an advertisement or package design for a period of time. a. trademark b. servicemark c. copyright d. constitutional amendment e. brand name (c; easy; p. 80; LO2; AACSB Analytical Skills) Which is FALSE regarding the Children’s Television Advertising Practice Act of 1990? a. It placed a 10.5-minute-per-hour ceiling for commercials in children’s weekend television programming. b. All TV stations must air three hours of children’s educational shows a week. c. Commercial breaks must be clearly distinguished from programming. d. It bars the use of program characters to promote products. e. It placed a 12-minute-per-hour limit for commercials in children’s weekday television programming. (b; difficult; p. 84; LO3; AACSB Ethical Reasoning) 18.

Chapter Three: Advertising and Society

19.

________ is advertising or other sales representations that praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts. a. Puffery b. Manipulative advertising c. Deceptive advertising d. Comparative advertising e. Indirect advertising (a; easy; p. 74; LO1; AACSB Ethical Reasoning) 20.

Under the ________ companies/plaintiffs are required to prove five elements to win a false advertising lawsuit about an ad making a comparative claim. a. Uniform Commercial Code b. Pure Food and Drug Act c. Wheeler-Lea Amendment d. Lanham Act e. Magnuson-Moss Warranty Act (d; moderate; p. 75; LO2; AACSB Analytical Skills) Businesses can seek damages from an advertiser who “misrepresents the nature, characteristics, qualities, or geographic origin in comparative advertising” under the ________. a. Uniform Commercial Code b. Pure Food and Drug Act c. Wheeler-Lea Amendment d. Lanham Act e. Magnuson-Moss Warranty Act (d; moderate; p. 75; LO2; AACSB Ethical Reasoning) 21.

22.

Under the Lanham Act, which of the following is NOT an element a company/plaintiff is required to prove to win a false advertising lawsuit about an ad containing a comparative claim? a. False statements have been made about either product. b. The ads actually deceived or had the tendency to deceive a substantial segment of the audience. c. The offending advertiser intended to damage the complaining company’s business. d. The deception was “material” and likely to influence purchasing decisions. e. Falsely advertised goods are sold in interstate commerce. (c; difficult; pp. 75-76; LO2; AACSB Communication)

Part One: A Passion for the Business

23.

A(n) ________ is any advertising message that consumers believe reflects the opinions, beliefs, or experiences of an individual, group, or institution. a. endorsement b. comparative ad c. puffed ad d. one-sided message e. two-sided message (a; easy; p. 76; LO1; AACSB Analytical Skills) 24.

Verbal or written words in an advertisement that indicate exceptions to the advertising claim made are known as ________. a. comparative ads b. puffery c. endorsements d. small print e. disclaimers (e; moderate; p. 77; LO1; AACSB Communication) 25.

The main concern the FTC has when an advertiser substitutes for products during a demonstration (i.e., using a mixture of glue and water instead of ice cream) is ________. a. whether the demonstration exaggerates the qualities of the product being demonstrated b. whether the demonstration is realistic c. whether the advertiser indicates that substitutes are used in the demonstration d. whether the consumer knows substitutes are used in the demonstration e. whether the demonstration falsely upgrades the consumers’ perception of the advertised brand (e; difficult; p. 77; LO1; AACSB Ethical Reasoning) 26.

The ethical responsibility for selling a controversial or unsafe product lies with the ________. a. CEO of the organization b. marketing department c. advertising director d. Federal Trade Commission e. advertising agency (b; moderate; p. 77; LO1; AACSB Ethical Reasoning)

Chapter Three: Advertising and Society

27.

Before an advertising agency can create an ad for a client, it must consider which of the following concerning the client company? a. the nature of the client company and its mission b. its available resources c. its reputation d. its product line e. all of the above (e; moderate; p. 77; LO1; AACSB Communication) 28.

Cigarette advertising on television and radio has been banned since ________. a. 1961 b. 1971 c. 1981 d. 1991 e. 2001 (b; moderate; p. 77; LO2) Which is NOT an element of the FDA’s 1996 restrictions with regard to tobacco advertising? a. a ban on all in-store advertising inside of stores that are located within 1,000 feet of a school or playground b. a ban on outdoor ads within 1,000 feet of a school or playground c. ads limited to black-and-white, text only, in magazines with 55 percent readership under the age of 18 d. $150 million be provided to fund antismoking ads targeting children e. half of the money from the Master settlement Agreement goes to fund TV and print ads warning children about the dangers of smoking (a; difficult; p. 78; LO1; AACSB Ethical Reasoning) 29.

30. Why has the amount of prescription drug advertising skyrocketed in the past few years? a. The FTC loosened its controls on pharmaceutical companies. b. The FCC loosened its controls on pharmaceutical companies. c. Demographic shift in U.S. population reflects an aging population, and they tend to be heavy users of prescription drugs causing more competition in the industry and thus more advertising. d. The FDA loosened its controls on pharmaceutical companies. e. Patents held by many pharmaceutical companies expired, resulting in price competition and heavy advertising. (d; moderate; p. 79; LO2; AACSB Communication)

Part One: A Passion for the Business

31.

Controls for copyright protection are provided by the ________. a. Supreme Court b. Federal Trade Commission c. Patent and Trademark Office d. Department of Commerce e. Library of Congress (e; difficult; p. 80; LO3) 32.

The most basic federal law that governs advertising is the ________ Amendment to the U.S. Constitution. a. First b. Second c. Third d. Fourth e. Fifth (a; easy; p. 81; LO2; AACSB Communication) 33.

Which Amendment to the U.S. Constitution states that Congress shall make no law “abridging the freedom of speech or of the press”? a. First b. Second c. Third d. Fourth e. Fifth (a; easy; p. 81; LO2; AACSB Communication) 34.

________ speech is speech that promotes a commercial activity. a. Political b. Free c. Unregulated d. Commercial e. Regulated (d; easy; p. 81; LO2; AACSB Communication) 35.

Which of the following statements is FALSE regarding commercial speech? a. It is speech that promotes commercial activity. b. It is often restricted. c. Its protection under the U.S. Constitution is absolute. d. It is legal to ban false or misleading commercial speech. e. It is legal to ban truthful commercial speech. (c; moderate; p. 81; LO2; AACSB Communication)

Chapter Three: Advertising and Society

36.

In which case did the Supreme Court establish a test that determines to what extent the government can restrict advertising? a. Valentine v. Christensen (1942) b. Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council (1976) c. Central Hudson Gas & Electric Corporation v. Public Service Commission of New York (1980) d. Cincinnati v. Discovery Network (1993) e. 44 Liquormart, Inc. v. Rhode Island (1995) (c; difficult; p. 81; LO2; AACSB Communication) 37.

The Supreme Court’s ruling in Central Hudson Gas & Electric Corporation v. Public Service Commission of New York is significant because ________. a. it is the first commercial speech case heard by the Supreme Court b. the Supreme Court decided that the First Amendment does not protect purely commercial advertising because that type of advertising does not contribute to decision-making in a democracy c. the Supreme Court ruled that states cannot prohibit businesses from advertising prices d. the Supreme Court signaled strong protection for companies under the First Amendment e. the Supreme Court established a test that determines to what extent the government can restrict advertising (e; difficult; p. 81; LO2; AACSB Analytical Skills) 38.

In which case did the Supreme Court signal strong protection for commercial speech under the First Amendment? a. Valentine v. Christensen (1942) b. Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council (1976) c. Central Hudson Gas & Electric Corporation v. Public Service Commission of New York (1980) d. Cincinnati v. Discovery Network (1993) e. 44 Liquormart, Inc. v. Rhode Island (1995) (e; difficult; p. 81; LO2; AACSB Analytical Skills) 39.

What is the primary agency governing the advertising industry? a. Federal Communications Commission b. Federal Trade Commission c. Food and Drug Administration d. National Advertising Review Council e. National Advertising Division (b; easy; p. 83; LO2)

Part One: A Passion for the Business

40.

Which is NOT a responsibility of the Federal Trade Commission? a. fine people or companies that violate either a trade regulation rule or a cease-and-desist order given to any other firm in the industry b. fund participation of consumer groups and other interest groups in rulemaking proceedings c. oversee package labeling and ingredient listings for food and drugs d. regulate acts and practices that deceive businesses or consumers and issue cease-and-desist orders where such practices exist e. initiate investigations against companies that engage in unfair competition or deceptive practices (c; moderate; p. 83; LO2) 41.

The ___________ .prohibits unfair and deceptive acts and practices regardless of whether competition is injured. a. formation of the Federal Trade Commission b. Wheeler-Lea Amendment c. formation of the National Advertising Review Council d. Pure Food and Drug Act e. formation of the Bureau of Alcohol, Tobacco, and Firearms (b; difficult; p. 84; LO2; AACSB Communication) 42.

Advertising intended to mislead consumers by making claims that are false or by failure to make full disclosure of important facts, or both, is known as ________. a. misleading advertising b. indirect advertising c. deceptive advertising d. unsubstantiated advertising e. injurious advertising (c; moderate; p. 85; LO2; AACSB Communication) 43.

Which is NOT a basic element of the current FTC policy on deception? a. preventable b. misleading c. reasonableness d. injurious e. all of the above are basic elements of the current FTC policy on deception (a; moderate; p. 85; LO2)

Chapter Three: Advertising and Society

44.

For an advertisement to be ruled deceptive, the deception must influence consumers’ decision making about products and services, which is known as ________. a. misleading b. puffery c. material injury d. influence e. double jeopardy (c; moderate; p. 85; LO2; AACSB Communication) 45.

What is NOT considered by the FTC when determining the reasonableness of a claim in an advertisement? a. type and specificity of claim made b. type of product c. possible consequences of a false claim d. degree of reliance on the claims by consumers e. price of the product (e; difficult; p. 85; LO2; AACSB Communication) 46.

A ________ is the first step in the regulation process after the FTC determines that an ad is deceptive. a. consent decree b. cease-and-desist order c. corrective advertising campaign d. consumer redress order e. industry trade rule (a; moderate; p. 85; LO2; AACSB Communication) 47.

All EXCEPT which of the following are FTC remedies for deception and unfair advertising? a. consent decrees b. cease-and-desist orders c. incarceration d. corrective advertising e. consumer redress (c; moderate; pp. 85-87; LO2; AACSB Communication)

Part One: A Passion for the Business

48.

Which of the following statements regarding cease-and-desist orders issued by the Federal Trade Commission is false? a. They require that the deceptive or unfair practice by a business be stopped within 30 days of issuance of the order. b. A cease-and-desist order given to one firm is applicable to all firms in an industry. c. An advertiser can appeal the order to the full five-member commission. d. A cease-and-desist order is the first step in the regulation process after the FTC determines that an ad is deceptive. e. The process leading to the issuance of a cease-and-desist order is similar to a court trial. (d; moderate; pp. 83 and 86; LO2; AACSB Analytical Skills) 49.

Which of the following is the landmark corrective advertising case? a. Valentine v. Christensen b. Warner-Lambert v. FTC c. 44 Liquormart, Inc. v FTC d. Nike v. FTC e. Cincinnati v. Discovery Network (b; moderate; p. 86; LO2; AACSB Communication) 50.

A relatively new remedy for deceptive and unfair advertising taken by the FTC is to ________. a. make the deceptive advertiser spend time in prison b. fine a deceptive advertiser $10,000 per day for every day the deceptive ad ran c. require corrective advertising to correct the false impressions a deceptive ad made d. make the advertising agency liable for deceptive advertising along with the advertiser when the agency is an active participant in the preparation of the ad and knows or has reason to know that it is false or deceptive e. make public specific information about a deceptive advertising case (d; difficult; pp. 86-87; LO2; AACSB Communication) 51.

Which federal agency oversees package labeling, ingredient listing, and advertising for food and drugs? a. Federal Trade Commission b. Food and Drug Administration c. Federal Communications Commission d. Bureau of Alcohol, Tobacco, and Firearms e. National Advertising Division (b; easy; p. 87; LO2)

Chapter Three: Advertising and Society

52.

Which federal agency was formed to protect the public interest in radio and television broadcast communications? a. Federal Trade Commission b. Food and Drug Administration c. Federal Communications Commission d. Bureau of Alcohol, Tobacco, and Firearms e. National Advertising Division (c; easy; p. 87; LO2) 53.

The Federal Communications Commission (FCC) can take action against ________. a. the media b. advertisers c. advertising agencies d. A, B, and C e. B and C (a; moderate; p. 87; LO2) 54.

All EXCEPT which of the following have governmental authority concerning regulation of advertising in some way? a. Bureau of Alcohol, Tobacco, and Firearms b. Federal Communications Commission c. U.S. Postal Service d. National Advertising Division e. Food and Drug Administration (d; moderate; pp. 83-88; LO2) 55.

________ advertising features a product other than the primary, and usually controversial, product. a. Deceptive b. Unfair c. Stealth d. Injurious e. Indirect (e; moderate; p. 83; LO2; AACSB Communication)

Part One: A Passion for the Business

What agreement was reached in 1996 between broadcasters, children’s advocates, and the federal government? a. limiting advertising to 10 minutes per hour in children’s weekend television programming b. limiting advertising to 12.5 minutes per hour in children’s weekday television programming c. limiting advertising to 10 minutes per hour in all children’s television programming d. requiring all TV stations to air three hours of children’s educational shows a week e. banning all advertising during children’s television programming (d; difficult; p. 85; LO2) 56.

57.

Which type of self-regulation occurs when an organization, such as an advertising agency, develops, uses, and enforces norms within its own practices? a. industry self-regulation b. self-discipline c. social ethic d. self-regulation with outside help e. personal ethic (b; moderate; p. 89; LO2; AACSB Ethical Reasoning) 58.

When an industry develops, uses, and enforces norms, this is known as which type of self-regulation? a. industry self-regulation b. self-discipline c. social ethic d. professional ethic e. personal ethic (a; moderate; p. 89; LO2; AACSB Ethical Reasoning) 59.

In 1971, what organization did several professional advertising associations in conjunction with the Council of Better Business Bureaus establish to negotiate voluntary withdrawal of national advertising that professionals consider deceptive? a. National Advertising Division (NAD) b. National Advertising Review Board (NARB) c. American Association of Advertising Agencies (4As) d. National Advertising Review Council (NARC) e. American Advertising Federation (AAF) (d; moderate; pp. 89-90; LO2)

Chapter Three: Advertising and Society

60.

The two operating arms of the National Advertising Review Council are the ________. a. NAD and the NARB b. NAD and the AAAA c. AAF and the AAAA d. FTC and the FCC e. FTC and the NAD (a; moderate; pp. 89-90; LO2) 61.

Which arm of the National Advertising Review Council is a full-time agency made up of people from the field of advertising; evaluates complaints submitted by consumers, consumer groups, industrial organizations, and advertising firms; and does its own industry monitoring of national advertisements? a. National Advertising Division (NAD) b. National Advertising Review Board (NARB) c. American Association of Advertising Agencies (4As) d. Federal Trade Commission (FTC) e. American Advertising Federation (AAF) (a; moderate; p. 90; LO2) 62.

If the National Advertising Division (NAD) and the allegedly deceptive advertiser cannot reach a satisfactory resolution, the case is referred to the ________. a. National Advertising Review Board (NARB) b. American Association of Advertising Agencies (4As) c. Federal Trade Commission (FTC) d. American Advertising Federation (AAF) e. appropriate government agency (a; moderate; p. 90; LO2) 63.

If the National Advertising Review Board (NARB) and the allegedly deceptive advertiser cannot reach a satisfactory resolution, the case might be referred to the ________. a. National Advertising Division (NAD) b. American Association of Advertising Agencies (4As) c. Advertising Review Council (ARC) d. American Advertising Federation (AAF) e. appropriate government agency, such as the FTC (e; moderate; p. 90; LO2)

Part One: A Passion for the Business

64.

________ is a set of moral principles that guide actions and create a sense of responsible behavior. a. Social responsibility b. Ethics c. Self-regulation d. Taste e. Self-discipline (b; easy; p. 91; LO3; AACSB Ethical Reasoning) 65.

With respect to guidelines for determining what is ethical, which is NOT one of the types of criteria for making an advertising decision? a. moral systems b. self-discipline c. professional ethic d. personal ethic e. internal moral compass (b; moderate; pp. 91-94; LO3; AACSB Ethical Reasoning) 66.

The ________. is an examples of a moral system. a. The Ten Commandments b. The Social Ethic c. The Personal Rule d. The Golden Ethic e. The Responsible Rule (a; moderate; p. 91; LO2; AACSB Ethical Reasoning) 67.

________ motivates a business to perform a useful function within society and to make its impact on society positive rather than negative. a. Moral compass b. Social ethics c. Social responsibility d. Professional standards e. Personal ethics (c; moderate; pp. 77 and 94; LO3; AACSB Ethical Reasoning) 68.

Which is NOT included in the concept of social responsibility? a. treating employees and other stakeholders with sensitivity b. avoiding practices that hurt the environment c. avoiding practices that hurt the community d. avoiding practices that hurt society e. treating foreigners in our country as though they are Americans (e; moderate; pp. 66, 77, 92 LO1; AACSB Ethical Reasoning)

Chapter Three: Advertising and Society

69.

A ________ identifies how professionals in the industry should respond when faced with ethical questions. a. code of behavior b. code of standards c. code of laws d. code of responsibility e. code of discipline

(b; moderate; p. 93; LO3; AACSB Ethical Reasoning 70.

Personal judgment and moral reasoning rest on ________. a. explicit laws governing practice b. membership in a professional association c. an understanding of the law d. a sense of right and wrong e. a code of standards (d; moderate; p. 91; LO2)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

Critics of advertising tend to believe that advertising has power to shape social trends and the way people think and act. (True; easy; pp. 67-68; LO1; AACSB Ethical Reasoning) 72.

Advertising professionals tend to believe that advertising has the power to shape social trends and the way people think and act. (False; moderate; p. 68; LO1; AACSB Ethical Reasoning) 73.

Marketing imperialism is a term used to describe what happens when Western culture is imposed on others. (True; easy; p. 73; LO1) 74. Customs can be even stronger than laws. (True; moderate; p. 73; LO1; AACSB Analytical Skills) 75.

Stereotypes can be useful and aid communication by using easily understood symbolic meanings. (True; moderate; p. 71; LO1; AACSB Ethical Reasoning) 76. A misleading claim is a legal problem only in the United States. (False; easy; p. 74; LO2) 77. “Puffing” claims are illegal. (False; moderate; p. 74; LO2)

Part One: A Passion for the Business

78.

A spokesperson who endorses a brand must actually use the product for this to be a legal message strategy. (True; moderate; p. 76; LO2; AACSB Communication) 79.

A copyright is a brand, corporate, or store name or a distinctive symbol that identifies the seller’s brand and thus differentiates it from the brands of others sellers. (False; moderate; p. 80; LO2) 80. A trademark must be registered with the Library of Congress. (False; easy; p. 79; LO2) 81.

A copyright gives an organization the exclusive right to use or reproduce original work such as an advertisement or package design indefinitely. (False; difficult; p. 80; LO2; AACSB Communication) 82. Common designs or symbols can be copyrighted. (False; moderate; p. 80; LO2) 83.

Under the First Amendment to the U.S. Constitution, protection of commercial speech is absolute. (False; moderate; p. 81; LO2) 84. The government can ban truthful commercial speech. (True; difficult; p. 81; LO2) 85.

The Federal Trade Commission (FTC) is the primary agency governing the advertising industry. (True; easy; p. 83; LO2) 86.

A cease-and-desist order given to any firm in an industry applies to all firms in that industry. (True; difficult; p. 83; LO2) 87.

To be considered deceptive, a false or misleading advertisement must influence consumers’ decision making about the product or service advertised. (True; moderate; p. 85; LO2; AACSB Communication) 88. The current FTC policy on deception is clear and easy for advertisers to measure. (False; moderate; p. 85; LO2) 89.

An advertiser must have data on file to substantiate any claims it makes in its advertisements. (True; difficult; p. 85; LO2; AACSB Communication)

Chapter Three: Advertising and Society

90.

The FTC accepts only research conducted by an independent research firm when questioning an advertiser’s claim substantiation. (False; difficult; p. 85; LO2; AACSB Communication) 91. Advertisers must comply with a consent decree. (False; moderate; pp. 85-86; LO2) 92.

The first step in the regulation process after the FTC determines that an ad is deceptive is the issuance of a cease-and-desist order. (False; moderate; p. 85; LO2) 93.

The process leading to the issuance of a cease-and-desist order is similar to a court trial. (True; moderate; p. 86; LO2; AACSB Ethical Reasoning) 94.

An advertising agency can be held liable along with the advertiser for deceptive advertising. (True; moderate; p. 86-87; LO2; AACSB Communication) 95.

With respect to prescription drugs, the Food and Drug Administration’s primary job is to determine whether the drugs are marketed in a responsible way. (False; moderate; p. 87; LO2) 96.

The Federal Communications Commission (FCC) has the power to ban messages, including ads appearing in any medium, that are deceptive or in poor taste. (False; moderate; p. 87; LO2) 97.

The Federal Communications Commission (FCC) has the authority to take legal actions against advertisers and advertising agencies. (False; difficult; p. 87; LO2) 98.

Indirect advertising that features a product other than the primary, and usually controversial, product is illegal in most countries. (False; moderate; p. 83; LO2) 99.

International advertisers do not fear actual laws; they fear not knowing those laws. (True; moderate; p. 83; LO2) 100. The media can reject ads that violate their standards of truth and good taste. (True; easy; p. 88; LO2; AACSB Ethical Reasoning) 101.

Virtually all major advertisers and advertising agencies have in-house ad review procedures including reviews by agency and client attorneys. (True; moderate; p. 89; LO2; AACSB Ethical Reasoning)

Part One: A Passion for the Business

102.

The National Advertising Division (NAD) and the National Advertising Review Board (NARB) are government agencies that negotiate the voluntary withdrawal of national advertising that professionals consider deceptive. (False; moderate; pp. 89-90; LO2) 103.

The Better Business Bureau is a government agency with the power to oversee advertising, particularly local advertising. (False; moderate; p. 90; LO2; AACSB Ethical Reasoning) 104. Advertising that is in poor taste and offensive is easily identified. (False; moderate; p. 87; LO2) 105.

A code of standards identifies how a professional in the industry must respond when faced with ethical questions. (False; difficult; p. 93; LO2; AACSB Ethical Reasoning)

GENERAL CONTENT: ESSAY QUESTIONS 106.

Compare and contrast a trademark and a copyright. Explain the importance of each and how each is protected. Answer: A trademark is a brand, corporate, or store name or a distinctive symbol that identifies the seller’s brand and thus differentiates it from the brands of other sellers. A trademark that is registered through the Patent and Trademark Office of the Department of Commerce gives the organization exclusive use of the mark, as long as the trademark is maintained as an identification for a specific product. Because trademarks are critical communication devices for products and services, they are important to advertising.

A copyright gives an organization the exclusive right to use or reproduce original work such as an advertisement or package design for a period of time. Controls for copyright protection are provided by the Library of Congress. Advertising is a competitive business in which me-too ads abound, and copyrighting of coined words, phrases, illustrations, characters, and photographs can offer some protection from other advertisers who borrow too heavily from their competitors. (moderate; pp. 79-80; LO2; AACSB Reflective Thinking)

Chapter Three: Advertising and Society

107.

Describe the four specific responsibilities of the Federal Trade Commission. Answer:

The four specific FTC responsibilities are the following: (1) Initiate investigations against companies that engage in unfair competition or deceptive practices. (2) Regulate acts and practices that deceive businesses or consumers and issue cease-and-desist orders where such practices exist. (3) Issue fines to violators of either a trade regulation rule or a cease-and-desist order given to any other firm in the industry. (4) Fund the participation of consumer groups and other interest groups in rulemaking proceedings. (moderate; p. 83; LO2) 108.

Define deceptive advertising and explain the three basic elements of the current FTC policy on deception. Answer:

Deceptive advertising is advertising intended to mislead consumers by making claims that are false or by failure to make full disclosure of important facts, or both. The current FTC policy on deception contains three basic elements: (1) Misleading—Where there is a representation, omission, or practice, there must be a high probability that it will mislead the consumer. (2) Reasonableness—The perspective of the “reasonable consumer” is used to judge deception. The FTC tests reasonableness by looking at whether the consumer’s interpretation or reaction to an advertisement is reasonable. (3) Injurious—The deception must lead to material injury. That is, it must influence consumers’ decision making about products and services. (moderate; p. 85; LO2; AACSB Communication)

Part One: A Passion for the Business

109.

Name and describe the five FTC remedies for deception and unfair advertising. Answer:

The FTC can follow several courses of actions: (1) Consent Decrees—The first step in the regulation process after the FTC determines that an ad is deceptive. The FTC notifies the advertiser of its finding and asks the advertiser to sign a consent decree agreeing to stop the deceptive practice. Most advertisers do sign the decree to avoid bad publicity and the possible $10,000-per-day fine for refusing to do so. (2) Cease-and-Desist Orders—Issued when the advertiser refuses to sign the consent decree and the deception is determined to be substantial. The process leading to the issuance of a cease-and-desist order is similar to a court trial, in which an administrative law judge presides and lawyers represent both parties. (3) Corrective Advertising—May be required when consumer research determines that an advertising campaign has perpetuated lasting false beliefs. The FTC orders the offending advertiser to produce messages for consumers that correct the false impressions the ad made. (4) Consumer Redress—The FTC can order cancellation or reformation of contracts, refund of money or return of property, payment of damages, and/or public notification. (5) Advertising Agency Legal Responsibility—The FTC can hold the ad agency liable instead of, or along with, the advertiser. (moderate; pp. 85-87; LO2; AACSB Communication) 110.

Discuss three types of ethical criteria that need to be considered when making an advertising decision. Answer:

Three types of criteria need to be considered when making an advertising decision: (1) The Social Responsiblity— Social responsibility motivates a business to perform a useful function within society and to make its impact on society positive rather than negative—and that includes its advertising, as well as other business practices. (2) The Professional Ethics—Professional ethics are often expressed in a code of standards that identifies how professionals in the industry should respond when faced with ethical standards. (3) The Personal Ethic—Personal judgment and moral reasoning rest on an intuitive sense of right and wrong. (difficult; pp. 66, 91, and 93; LO3; AACSB Ethical Reasoning)

Chapter Three: Advertising and Society

ADDITIONAL CONTENT: MULTIPLE-CHOICE QUESTIONS 111.

Ads that play on women's insecurities by portraying perfect looking women who are unnaturally thin are examples of ________. a. deceptive advertisements b. violating another company’s trademark c. body image d. inexpensive ads to produce e. effective advertisements (c; easy; p. 72; LO1; AACSB Ethical Reasoning) 112.

Many people objected to an ad that used a style of lighting and staging reminiscent of a porn movie to show prepubescent teens in their underwear because it was ________. a. in poor taste and offensive b. too materialistic c. racial stereotyping d. too dark e. humorous (a; moderate; p. 69; LO1; AACSB Ethical Reasoning) 113.

A spot for Just for Feet that showed a barefoot black man running through the wilderness tracked by a patrol in a Humvee was considered objectionable ________. a. because it was offensive and in bad taste b. because it made viewers feel inferior about their body and self-image c. because it was a misleading advertisement d. because it was targeting African Americans e. because it was racial stereotyping (e; difficult; pp. 69-70; LO1; AACSB Analytical Skills) 114.

Some claim advertising has created a society that is obsessed with personal hygiene because consumers are bombarded with ads for products that remove our body odors, make our teeth white, make our hair shine, allow us to fit in with our peers, and make our family love us more. On what side of the social debate on advertising do believers of this statement reside? a. advertising mirrors social values b. advertising mimics social values c. advertising shapes social values d. advertising manipulates social values e. advertising is offensive (c; moderate; pp. 67-68; LO1; AACSB Reflective Thinking)

Part One: A Passion for the Business

115.

Some Asian and Middle Eastern countries are critical of what they see as America’s materialism and disrespectful behavior toward women and elders and are worried that advertising will encourage their young people to adopt these viewpoints. The term to describe this phenomenon is ________. a. marketing ethics b. deceptive advertising c. social decline d. social responsibility e. marketing imperialism (e; moderate; p. 73; LO1; AACSB Ethical Reasoning) Nike’s longtime symbol on its products and in its ads is the Nike “Swoosh,” which looks like a curved checkmark. If another athletic shoemaker used that symbol on its products or in its ads, the company would most likely be guilty of ________. a. comparative advertising b. competitive infringement c. misleading advertising d. trademark infringement e. deceptive advertising (d; easy; p. 79; LO2; AACSB Reflective Thinking) 116.

117.

When Kraft foods made a claim that their processed cheese slices contained as much calcium as that contained in 5 ounces of milk, the Federal Trade Commission pursued it as a deceptive claim. Although Kraft admitted that a cheese slice did not actually contain as much calcium as claimed due to processing, the company claimed that its ad was not deceptive because consumer research indicated that calcium content was not important to consumers when deciding among brands of cheese. Basically, Kraft’s defense was based on its belief that the misleading claim ________. a. did not lead to material injury to consumers, and thus it was not deceptive b. did not claim anything different from other cheese manufacturers c. was not technically misleading if consumers didn’t think it was d. was not reasonable from the consumers’ point of view e. was not deceptive because the claim was merely false but did not omit any important information (a; difficult; p. 85; LO2; AACSB Reflective Thinking)

Chapter Three: Advertising and Society

118.

The Federal Trade Commission investigated a claim made in an ad for Ultra Slimfast and determined that the ad is deceptive. What’s the first remedy that will be taken by the FTC? a. issue a cease-and-desist order b. fine the advertiser $10,000 for every day the ad has run c. require the advertiser to run corrective advertising d. order the advertiser to refund consumers’ money e. issue a consent decree (e; moderate; p. 85; LO2; AACSB Communication) 119.

Several countries have banned many forms of tobacco advertising. However, the Salem, Benson & Hedges, and Winston names can found on billboards in one of these countries, but they are not advertising cigarettes. They are advertising their travel, clothing, and restaurant businesses. What type of advertising are these companies using to undermine these tobacco-advertising bans? a. stealth advertising b. deceptive advertising c. indirect advertising d. unfair advertising e. imperialistic advertising (c; moderate; p. 83; LO2; AACSB Ethical Reasoning) 120.

Several companies, such as Procter & Gamble, General Foods, and ColgatePalmolive, have their own codes of behavior and criteria that determine whether advertisements are acceptable. Which type of self-regulation is this? a. industry self-regulation b. self-discipline c. self-regulation with outside help d. personal ethic e. social ethic (b; moderate; p. 89; LO2; AACSB Ethical Reasoning) 121.

John works for an advertising agency whose client wants to reach Hispanic consumers living in Florida and Texas. He decides that one ad execution is sufficient because he believes that all Hispanics are the same. John is using a(n) _________________ to make his decision. a. heuristic b. shortcut c. unethical basis d. stereotype e. decision-making process (d; easy; p. 71; LO1; AACSB Communication

Part One: A Passion for the Business

122.

Ads that present women as obsessed with men treat women ________. a. fairly b. as sexual objects c. as homosexuals d. as sweetcakes e. as pumpkins (b; moderate; p. 71; LO2; AACSB Ethical Reasoning) Charley’s Fish Fry restaurant claims it has the “best seafood in town.” What type of claim does the Federal Trade Commission consider this to be? a. deceptive b. comparative c. puffery d. subliminal e. indirect (c; moderate; p. 74; LO2; AACSB Reflective Thinking) 123.

124.

Bayer Aspirin claims that it relieves headache pain three times faster than does Tylenol, but this is not true. Under which law can Tylenol file a false advertising lawsuit about this false claim? a. Lanham Act b. Pure Food and Drug Act c. Wheeler-Lea Amendment d. FTC Improvement Act e. Magnuson-Moss Warranty Act (a; moderate; pp. 75-76; LO2; AACSB Reflective Thinking) 125.

Which of the following is NOT one of the American Association of Advertising Agencies’ Ten Guidelines for Comparative Advertising? a. The intent and connotation of the ad should be to inform and never to discredit or unfairly attack competitors, or competing products or services. b. Should not include statements, suggestions, or pictures offensive to public decency or minority segments of the population if they do not use the competitive product. c. When a competitive product is named, it should be one that exists in the marketplace as significant competition. d. The identification should be for honest comparison purposes and not simply to upgrade by association. e. The property being compared should be significant in terms of value or usefulness of the product to the consumer. (b; difficult; p. 76 [Table 3.1]; LO3; AACSB Ethical Reasoning)

Chapter Three: Advertising and Society

126.

In a focus group of women in their 50s, participants objected to health care ads showing older women with arthritis in sedentary positions. They would prefer to see the women working out in a gym. This is an example of ________. a. marketing imperialism b. cultural differences c. deceptive advertising d. ethnic stereotyping e. age-related stereotypes (e; moderate; p. 73; LO1; AACSB Communication)

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Prior to 1997, broadcast ads for prescription drugs could not mention the ailment for which the drug received FDA approval for and the name of the drug in the same advertisement. That is, only one or the other could be mentioned, which led to much confusion on the part of consumers. In 1997, the Food and Drug Administration loosened its controls on pharmaceutical companies, and as a result, the amount of prescription drug advertising on television has skyrocketed. Now both the ailment and the name of the drug can be mentioned, but major side effects must also be mentioned and there must be an indication where the consumer can get more information, such as from a magazine ad or a web site. Some have been quite critical of this direct-to-consumer prescription advertising, claiming it has led to an increase in requests for costlier drugs, when the less expensive generic drug would be just as effective. 127.

Mini-Case Question. Although some doctors appreciate that the advertising has caused consumers to become more active in managing their own health and more informed about their drug options, some claim that they are being pressured to write inappropriate prescriptions because their patients are influenced by the drug ad claims. What is this called when an external message, like an advertisement, causes people to feel a need to buy and use a product? a. demand creation b. manipulation c. indirect advertising d. want creation e. need creation (a; moderate; p. 66; LO1; AACSB Analytical Skills)

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128.

Mini-Case Question. One ad for a drug used to overcome male erectile dysfunction depicted an old man in a nursing home acting like a young gigolo chasing after several women at once and was not allowed to air on the major television networks of NBC, CBS, and ABC. The ad did not contain any deceptive or unsubstantiated claims, so there was nothing untruthful in the ad. Furthermore, the ad followed the guidelines given by the FDA regarding broadcast advertising by indicating the major side effects and referring to a magazine ad for more information. How can this happen in the United States if this is legal advertising of a legal product? a. Stereotypes of “dirty old men” are not allowed in any advertising. b. The National Advertising Division determined the ad was distasteful and disallowed it from being aired on television. c. Not all advertising is given the same protection under the First Amendment of the Constitution. d. The media can reject ads that violate their standards of good taste. e. The behavior portrayed by the old man did not reflect the real behavior of the individual involved. (d; difficult; p. 88; LO2; AACSB Reflective Thinking) 129.

Mini-Case Question. Pfizer is a large pharmaceutical company that has dramatically increased its direct-to-consumer television advertising of prescription drugs. However, Pfizer has stringent in-house ad review procedures, including reviews by agency and client attorneys. Pfizer is concerned that any claim made in an ad is verifiable and that the ad is executed in good taste. What type of self-regulation does this illustrate? a. industry self-regulation b. self-discipline c. self-regulation with outside help d. mandatory self-regulation e. voluntary self-regulation (b; moderate; p. 89; LO2; AACSB Reflective Thinking) 130.

Mini-Case Question. An advertisement by the manufacturer of Flonase, a prescription allergy nasal spray, compared its product with another nasal spray on the market, Nasonex, and claimed that it controlled allergy symptoms for a longer period of time. The ad was effective, resulting in a 2 percent increase in market share for Flonase. Manufacturers of Nasonex claimed that the advertisement misrepresented their product and basically made a false comparison. Under which law, can the manufacturer of Nasonex seek damages from the manufacturer of Flonase? a. Federal Trade Commission Act b. Pure Food and Drug Act c. FTC Improvement Act d. Wheeler-Lea Amendment e. Lanham Act (e; difficult; pp.75-76; LO2; AACSB Communication)

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APPLICATION QUESTIONS: SHORT-ANSWER 131.

Explain the importance of avoiding age-related stereotypes that includes presenting mature people in a negative light. Answer:

Senior citizens are often subject to stereotyping. This is a growing segment of the population with increasing amounts of disposable income. The needs of the maturing consumer depend on mental and physical acuity. Whether the senior is an empty–nester whose children recently left home or a widow who needs assisted living impacts how, when and why goods and services are purchased. (moderate; p. 73; LO1; AACSB Ethical Reasoning) 132.

You, as a consumer, think that an advertisement you saw on television for a national brand is making a false claim. What can you do about it? Answer:

Consumers can: (1) Contact the allegedly offending advertiser (choice not discussed in book) (2) File a complaint with the appropriate federal regulating agency (i.e., the Federal Trade Commission) (3) File a complaint with the National Advertising Review Council through the Council of Better Business Bureaus (moderate; pp. 85, 89; LO2; AACSB Reflective Thinking)

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133.

Procter & Gamble is concerned about a claim made in a rival’s advertisement. P&G thinks that their claim is deceptive. If P&G does not want to get the government involved in this dispute, what course of action can P&G take to resolve this issue and what process will be followed? Answer:

P&G can file a complaint with the National Advertising Division (NAD), which is the investigative arm of the National Advertising Review Council (NARC). This organization is an industry self-regulatory body and has no legal authority over advertisers, but it negotiates voluntary withdrawal of national advertising that professionals consider deceptive. The NAD will evaluate the complaint submitted by P&G and may ask the allegedly deceptive advertiser to substantiate the claim in question made in the advertisement. If such substantiation is deemed inadequate, the NAD will ask the advertiser to change or withdraw the offending ad. When a satisfactory resolution cannot be found, NAD refers the case to the National Advertising Review Board (NARB), which is the appellate arm of the NARC. The NARB will form a panel of five people to review the case (three advertisers, one agency person, and one public representative). This NARB panel reviews the complaint and the NAD staff findings and holds hearings to let the advertiser present its case. If the case remains unresolved after the process, the NARB can publicly identify the advertiser and the facts about the case and possibly refer the complaint to the appropriate government agency (usually the FTC). (moderate; pp. 89-90; LO2; AACSB Reflective Thinking) 134.

Belinda has been invited to speak to an advertising trade group about key ethical issues facing advertising decision makers. List four key ethical issues that challenge the standards of advertising professionals. Answer:

Students can list any four of the six key ethical issues discussed in this chapter: (1) Taste and offensive advertising (2) Stereotyping (3) Body and self-image problems (4) Targeting strategies, particularly targeting children (5) Problems with advertising claims and other message strategies, such as puffery, comparative advertising, endorsement, and demonstrations (6) Marketing of controversial products, such as unhealthy or dangerous products (tobacco, alcohol, prescription drugs) (moderate; p. 69; LO1; AACSB Ethical Reasoning)

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135.

Kim and her boyfriend were watching a movie on television when a commercial for a feminine hygiene product came on. Kim was actually interested in this product, but being a teenager, she was mortified that her boyfriend was there when this ad came on, so she quickly changed the channel. What key ethical issue challenging the standards of advertising professionals does this best portray? Answer:

This example is a good illustration of the “poor taste and offensive advertising” key ethical issue facing advertising professionals. This ad might not be considered offensive or in poor taste by Kim if her boyfriend was not present, but it made her uncomfortable because he was there when it came on the television. (easy; pp. 69-70; LO1; AACSB Ethical Reasoning) 136.

OfficeMax has an advertisement that shows an African American with a bushy, 1970s-era Afro hairdo dancing among office cubicles when he dispenses office supplies to fellow employees. The music he is dancing to is a famous song, “Rubberband Man,” recorded by an African American singer. While OfficeMax claims this ad has been received favorably by consumers, it seems as though the response could have gone the other way. Explain why. Answer:

This ad illustrates one of the key ethical issues facing advertising professionals: stereotyping. Some could argue that OfficeMax is using a racial and ethnic stereotype of an African American dancing around in a low-level position in an organization. The stereotype is further exaggerated with the 1970s Afro hairdo. (moderate; pp. 71-72; LO1; AACSB Ethical Reasoning) 137.

When an advertisement aimed at males portrays females as sexual objects, is it misuse or good targeting? Answer:

This ethical dilemma continues to challenge the industry because the technique tends to succeed at getting the attention of men who are the target for these ads. The issue is whether the sex appeal is gratuitous, in other words, is it relevant to the product? Even if it is relevant, does it degrade women? Because what’s degrading to one person may not be offensive to another, this decision needs to be made based on research that determines whether most people believe it to be degrading or offensive. Finally, the advertiser needs to consider whether the brand meaning is sullied when the advertising uses cheesecake. (difficult; pp. 70-71; LO1; AACSB Ethical Reasoning)

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138.

Todd just took a job as the manager of a television station. What legal concerns must he know about advertising to children? Answer:

In 1990 Congress passed the Children’s Television Advertising Practice Act, which placed 10.5-minute-per-hour ceilings for commercials in children’s weekend television programming and 12-minute-per-hour limits for weekday programs. The act also set rules requiring that commercial breaks be clearly distinguished from programming, barring the use of program characters to promote products. He should also know that in 1996, the Federal Communications Commission began to require all TV stations to air three hours of children’s educational shows a week. (difficult; pp. 84-85; LO2; AACSB Communication) 139.

Bob is a brand manager for a national brand laundry detergent and noticed a claim made in a competitor’s advertisement that falsely indicates that its brand performed better than his company’s brand. What must Bob’s company prove to win a false advertising lawsuit under the Lanham Act against the competitor? Answer:

Under the Lanham Act, companies/plaintiffs are required to prove five elements to win a false advertising lawsuit about an ad containing a comparative claim: (1) False statements have been made about either product (2) The ads actually deceived or had the tendency to deceive a substantial segment of the audience (3) The deception was “material” or meaningful (i.e., likely to influence purchasing intentions) (4) Falsely advertised goods are sold in interstate commerce (5) The suing company has been or likely will be injured as a result of the false statements, either by loss of sales or loss of goodwill (difficult; pp. 75-76; LO2; AACSB Reflective Thinking)

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140.

Many advertisements for weight-loss products feature before-and-after photos of individuals who have lost an astonishing amount of weight. While these products may work for some people, the results shown in the ads may not be typical. What are regulators’ concerns regarding these ads, and how do advertisers of these products get away with showing such demonstrations? Answer:

The concern regarding demonstrations is whether the demonstration falsely upgrades the consumers’ perception of the advertised brand. One technique some advertisers use to sidestep restrictions on demonstrations is to insert disclaimers or “supers,” verbal or written words in the ad that indicate exceptions to the advertising claim made. Notice that on most weight-loss product advertisements they indicate “results are not typical” or “results might vary.” (moderate; p. 77; LO2; AACSB Communication) 141.

List five of the ten American Association of Advertising Agencies’ Ten Guidelines for Comparative Advertising.

Answer: Students can list any five of the following: (1) The intent and connotation of the ad should be to inform and never to discredit or unfairly attack competing products or services. (2) When a competitive product is named, it should be one that exists in the marketplace as significant competition. (3) The competition should be fairly and properly identified but never in a manner or tone of voice that degrades the competitive product or service. (4) The advertising should compare related or similar properties or ingredients of the product dimension to dimension, feature to feature. (5) The identification should be for honest comparison purposes and not simply to upgrade by association. (6) If a competitive test is conducted, it should be done by an objective testing service. (7) In all cases the test should be supportive of all claims made in the advertising that are based on the test. (8) The advertising should never use partial results or stress insignificant differences to cause the consumer to draw an improper conclusion. (9) The property being compared should be significant in terms of value or usefulness of the product to the consumer. (10) Comparisons delivered through the use of testimonials should not imply that the testimonial is more than one individual’s unless that individual represents a sample of the majority viewpoint. (difficult; p. 76 [Table 3.1] ; LO2; AACSB Ethical Reasoning)

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142.

In 1997, the Food and Drug Administration loosened its controls on pharmaceutical companies, and as a result, the amount of prescription drug advertising has skyrocketed. Discuss some pros and cons regarding this growth in prescription drug advertising. Answer: Pros: Some doctors appreciate that the advertising has caused consumers to become more active in managing their own health and more informed about their drug options.

Cons: One study found that direct-to-consumer prescription drug advertising has led to an increase in requests for costlier drugs, when the less expensive generic drug would be just as effective. For this reason, consumer groups, government agencies, and insurance companies have been quite critical of this advertising. Some doctors also claim that they are being pressured to write inappropriate prescriptions because their patients are influenced by the drug ad claims. These arguments tend to support the demand creation criticism of advertising. (moderate; p. 79; LO2; AACSB Reflective Thinking) 143.

You are just starting out in an advertising career and are concerned about making ethical decisions. What resources are available to help guide you to a “right” decision, and what type of criteria might you consider when making an advertising decision? Answer:

There are laws and regulations governing the practice of advertising, but there are also codes of conduct, as well as personal and professional decision-making guidelines. Three types of criteria need to be considered when making an advertising decision: (1) The Social Responsibility—Social responsibility motivates a business to perform a useful function within society and to make its impact on society positive rather than negative—and that includes its advertising as well as other business practices. (2) The Professional Ethics—Professional ethics are often expressed in a code of standards that identifies how professionals in the industry should respond when faced with ethical standards . (3) The Personal Ethics—Personal judgment and moral reasoning rest on an intuitive sense of right and wrong. (moderate; pp. 69, 91-93; LO3; AACSB Reflective Thinking)

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144.

List the five specific statements of the American Association of Advertising Agencies’ Creative Code. Answer:

Specifically, we will not knowingly create advertising that contains: (1) False, or misleading statements or exaggerations, visual or verbal (2) Testimonials that do not reflect the real opinion of the individuals involved, (3) Price claims that are misleading (4) Claims insufficiently supported or that distort the true meaning or practicable application of statements made by professional or scientific authority (5) Statements, suggestions, or pictures offensive to public decency or minority segments of the population (difficult; p. 93 [Figure 3.3]) ; LO3; AACSB Ethical Reasoning) 145.

List three ethical questions, given in the “Practical Tips” box, in terms of the social impact advertising professionals can ask themselves as they confront ethical dilemmas. Answer: The “Practical Tips” box provides seven questions regarding advertising’s social impact, only three of which are necessary to correctly answer this question:

In terms of its social impact, does advertising ________? (1) violate public standards of good taste (2) reinforce negative stereotypes (3) damage people’s self-image and create insecurities (4) promote materialism (5) create false wants and false hopes (6) contribute to cultural pollution (7) market dangerous products (difficult; p. 94; LO3; AACSB Communication)

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146.

Explain the distinctions between ethics and morals. Answer:

Ethics are the "shoulds and oughts" of behavior. Ethics are the "right thing to do." Ethics and morals are closely related, but not synonymous. Morals are frameworks for right actions and are more the domain of religion. Moral systems provide a framework for behavior. Ethics differ from morals in that ethics are not so much about what is right and wrong, but about making choices from equally compelling options--- how should you behave when the answer is unclear? (moderate; p. 91; LO3; AACSB Ethical Reasoning)

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Amy is seven years old and loves to play with dolls. In fact, she has more than 20 Barbie dolls and lots of clothes and accessories, including three cars, a house with furniture, and an airplane. Mattel, the manufacturer of Barbie, also sells many other products with the Barbie brand, such as games, notebooks, and girls’ clothing to name a few. 147.

Mini-Case Question. Amy saw a commercial on television for a newer Barbie house than the one she currently has, and of course, she wanted it. Advertising has been criticized because it is used to drive people to feel a need or want. What is this called and why is advertising criticized? Answer:

Demand creation means using an external message to drive people to feel a need or want. Demand creation becomes a question of ethics when social critics charge that the demand is artificial and the products really aren’t needed—that people’s wants are being manipulated unnecessarily. (moderate; p. 66; LO1; AACSB Communication)

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148.

Mini-Case Question. One ad for Barbie showed an animated Barbie character diving off of a diving board doing flips and twists before landing in a pool. The ad was advertising a Barbie doll with a diving board that can be attached to the side of a bathtub, and Amy begged her mother for the doll and got it, but she was very disappointed when the doll did not perform like she saw in the commercial. She realized she had to hold on to the doll to make it flip around and dive into the water. What was wrong with this ad? Answer:

This scenario is getting at the issue of deceptive advertising. The FTC’s policy on deception contains three basic elements: (1) Misleading—Where there is representation, omission, or practice, there must be a high probability that it will mislead the consumer. In this example, the animated Barbie character could be construed as misleading because the doll could not actually do what was shown in the advertisement. (2) Reasonableness—The perspective of the “reasonable consumer” is used to judge deception, and in this case, a young girl would be considered the “reasonable consumer.” (3) Injurious—The deception must lead to material injury. That is, it must influence consumers’ decision making about products and services. In this case, Amy saw the ad and thought the doll could do the stunts depicted and begged her mother to buy it for her. (moderate; p. 85; LO2; AACSB Communication) 149.

Mini-Case Question. What self-regulatory agency monitors national advertising targeted at children? Answer:

The Children’s Advertising Review Unit (CARU), which is a subgroup of the National Advertising Division (NAD) of the Council of Better Business Bureaus. (moderate; p. 84; LO2; AACSB Analytical Skills)

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150.

Mini-Case Question. Amy’s mother limits Amy’s television viewing time because she feels there is just too much advertising influencing her child to want more stuff. However, there are restrictions regarding advertising toward children. Name and describe the laws and regulations specific to television advertising targeted at children. Answer:

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CHAPTER FOUR How Advertising Works

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

Great advertising is advertising that ___________. a. is creative b. is meaningful c. has impact d. wins awards e. cuts through the clutter (c; moderate; p. 106; LO2) 2.

Advertising, first of all, is a form of ________. a. communication b. marketing c. artistic expression d. interactive communication e. message (a; moderate; p. 103; LO1; AACSB Communication) 3.

Which of the following is NOT an element of the basic communication model? a. channel b. message c. source d. advertisement e. receiver (d; easy; pp. 103-104; LO1; AACSB Communication) 4.

The basic communication model begins with ________. a. the source b. the receiver c. the message d. the channel e. the target audience (a; easy; p. 103; LO1; AACSB Communication) 5.

Who encodes the message in the basic communication model? a. the receiver b. the channel c. the media d. the source e. the encoder (d; moderate; p. 103; LO1; AACSB Communication)

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Newspaper, radio, and television are all examples of which element of the basic communication model? a. the receiver b. the channel c. the source d. the encoder e. the decoder (b; moderate; pp. 103-104; LO1; AACSB Analytical Skills) 7.

When a message is interpreted by the receiver, it means it has been ________. a. encoded b. delivered c. decoded d. persuasive e. accepted (c; moderate; pp. 103-104; LO1; AACSB Communication) 8.

________ is obtained in the basic communication model by monitoring the response of the receiver to the message. a. Noise b. Feedback c. Acceptance d. Persuasion e. Awareness (b; moderate; pp. 103-104; LO1; AACSB Communication) 9.

Things that interrupt the sending as well as the receiving of the message are known as ________ in the basic communication model. a. encoders b. decoders c. feedback d. interference e. noise (e; moderate; pp. 103-104; LO1; AACSB Analytical Skills) 10.

________ communication is a form of two-way communication, a dialogue. a. Mass b. Marketing c. Interactive d. Integrative e. Advertising (c; moderate; p. 103; LO1; AACSB Communication)

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11.

Who determines the objectives for the advertising message? a. the advertiser b. the agency c. the media d. the advertiser assisted by its agency e. the advertiser assisted by its agency and the media (d; moderate; p. 104; LO1; AACSB Analytical Skills) 12.

Good marketing communication is effective when it generates the advertiser's desired ________. a. response b. sales c. market share d. creative awards e. media efficiency (a; difficult; p. 106; LO2; AACSB Communication) 13.

Which of the following is an example of external noise at the macro level that could hinder the consumer’s reception of the message? a. problems with the product’s marketing mix b. perceived needs c. information processing d. attitudes and opinions e. all of the above (a; difficult; p. 105; LO1; AACSB Analytical Skills) 14.

________ is the multitude of messages all competing to get consumers’ attention. a. Noise b. Feedback c. Clutter d. Channel e. Encoding (c; moderate; pp. 104-105; LO1; AACSB Communication) 15.

Turning the page in the newspaper or a magazine, hitting the mute button on the television, tossing unopened mail that looks like an ad, and deleting spam without looking at it are all examples of consumers ________ the message. a. decoding b. encoding c. perceiving d. filtering e. accepting (d; moderate; p. 105; LO1; AACSB Analytical Skills)

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16.

_________ enable(s) anyone to have an opinion about a company or brand, communicate it, and listen to the reaction. a. Mass communications b. Blogs c. Opinion marketing d. Interactive marketing e. Clutterless marketing (b; easy; p. 106; LO1; AACSB Use of IT) 17.

Which of the following is NOT an element of the AIDA hierarchy-of-effects model? a. attention b. action c. attitude d. desire e. interest (c; moderate; p. 106; LO2; AACSB Communication) 18.

Because AIDA assumes that consumers start with attention and wind up with a decision, it is referred to as a(n) ________ model. a. hierarchy-of-effects b. communication c. think-feel-do d. advertising e. stepwise (a; moderate; p. 106; LO1; AACSB Communication) 19.

What is the problem with hierarchical models that advertisers use to plan their advertising? a. They are technically complex and difficult to use. b. They are not complex enough. c. The models do not take into account the rational, information-driven process consumers use to make a decision. d. Advertisers now know that people don’t always proceed through steps in a predictable fashion. e. The models do not take into account consumers’ perceptions. (d; difficult; p. 107; LO1; AACSB Analytical Skills)

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20.

Which model works on the idea that advertising motivates people to think about the message, feel something about the product, and do something, such as try it or buy it? a. AIDA model b. basic communication model c. Facets model d. think-feel-do model e. feel-do-think model (d; moderate; p. 106; LO2) 21.

According to the Facets model, which of the following is NOT considered a consumer response? a. perception b. cognition c. affect/emotion d. association e. media (e; easy; p. 109; LO3; AACSB Communication ) 22.

According to the Facets model, all EXCEPT which of the following are effects that describe how advertising works? a. perception b. filtering c. affect/emotion d. association e. cognition (b; moderate; p. 109 [Figure 4.3]; LO3; AACSB Communication) 23.

________ is the process by which we receive information through our five senses and assign meaning to it. a. Cognition b. Behavior c. Exposure d. Awareness e. Perception (e; moderate; p. 110; LO3; AACSB Communication) 24.

________ is a process by which consumers respond by selecting messages to which they pay attention. a. Cognition b. Perception c. Selective perception d. Exposure e. Awareness (c; moderate; p. 110; LO3; AACSB Communication)

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25.

Which key component of perception means being seen or heard? a. selection and attention b. exposure c. interest and relevance d. awareness e. recognition (b; moderate; p. 110; LO3; AACSB Communication) 26.

________ means the receiver of the message has become mentally engaged in some way with the ad and the product. a. Attention b. Perception c. Selection d. Interest e. Awareness (d; moderate; p. 110; LO3; AACSB Communication) 27.

________ means the message connects on some personal level with the receiver. a. Attention b. Perception c. Selection d. Interest e. Relevance (e; moderate; p. 110; LO3) 28.

________ results when an advertisement initially makes an impression. a. Attention b. Perception c. Selection d. Interest e. Awareness (e; moderate; p. 110; LO3; AACSB Communication) 29.

________ means people remember seeing the ad, and ________ means they remember what the ad said. a. Recall; recognition b. Recognition; recall c. Aided recognition; unaided recognition d. Unaided recognition; aided recognition e. Aided recall; unaided recognition (b; moderate; p. 110; LO3; AACSB Communication)

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30.

________ is a measure of perception; ________ is a measure of understanding. a. Recall; recognition b. Recognition; recall c. Aided recognition; unaided recognition d. Unaided recognition; aided recognition e. Aided recall; unaided recognition (b; moderate; pp. 110-111; LO3 31.

________ means respondents are able to tell what they understood about an advertisement. a. Aided b. Recall c. Spontaneous d. Unscripted e. Free (b; moderate; pp. 110-111; LO3; AACSB Communication) 32.

________ of the respondents would depend on a visual cue such as being shown a magazine and asked whether they remember seeing a particular ad. a. Recognition b. Unaided c. Spontaneous d. Assisted e. Free (a; moderate; pp. 110-111; LO3; AACSB Analytic Skills) 33.

Subliminal advertising is a(n) ________ issue. a. perceptual b. affective c. cognitive d. behavioral e. association (a; moderate; p. 111; LO3) 34.

________ effects are message cues given below the threshold of perception; in other words, you can’t easily perceive them because they are too brief to see or they are disguised in some way. a. Subversive b. Subliminal c. Cognitive d. Unaided e. Sub-perceptual (b; easy; p. 111; LO3; AACSB Reflective Thinking)

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35.

What is the first effect of an advertising message and occurs before any of the other effects can happen? a. cognition b. affect c. perception d. association e. persuasion (c; moderate; p. 110; LO3; AACSB Analytical Skills) 36.

________ refers to how consumers respond to information, learn, and understand something. a. Cognition b. Affect c. Perception d. Association e. Persuasion (a; moderate; p. 109; LO3) 37.

Which of the following is a key component of cognition? a. exposure b. needs c. selection and attention d. emotions e. resonance (b; moderate; p. 109; LO3) 38.

Which of the following is NOT a key component of cognition? a. needs b. information c. resonance d. learning e. differentiation (c; moderate; p. 115; LO3; AACSB Analytical Skills) 39.

________ are something you think about and ________ are based on feelings and desires. a. Wants; needs b. Learning; emotions c. Thoughts; emotions d. Recall; recognition e. Needs; wants (e; moderate; p. 115; LO3; AACSB Analytic Skills)

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40.

________ occurs when a presentation of facts, information, and explanations leads to understanding. a. Resonance b. Conditioned learning c. Differentiation d. Memory e. Cognitive learning (e; moderate; p. 115; LO3; AACSB Analytic Skills) 41.

________ takes place when the learner links one thing with another. a. Resonance b. Conditioned learning c. Differentiation d. Memory e. Cognitive learning (b; moderate; p. 116; LO3; AACSB Analytic Skills) 42.

Which type of memory means that the memory trace goes deeper than perception with a cognitive response to an advertisement and you remember the ad message as well as seeing the ad? a. resonance b. recognition c. working memory d. long-term memory e. recall (e; moderate; p. 115; LO3; AACSB Analytic Skills) 43.

What causes consumers to NOT act on a message they may have seen or heard until later when they are in a store? a. subliminal effects b. cognitive effects c. delayed effects d. association effects e. conditioned learning (c; moderate; p. 124; LO3; AACSB Communication) 44.

________ describes something that stimulates wants, touches the emotions, and creates feelings. a. Cognition b. Resonance c. Liking d. Affective e. Transformation (d; moderate; p. 113; LO3)

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45.

Which of the following is a component of the affective response? a. wants b. symbolism c. brand transformation d. needs e. differentiation (a; moderate; p. 113; LO3) 46.

Which of the following is NOT a component of the affective response? a. wants b. needs c. emotions d. liking e. resonance (b; moderate; p. 113; LO3) 47.

Ads that rely on arousing feelings such as humor, love, or fear are referred to as ________ appeals. a. resonant b. symbolic c. emotional d. cognitive e. transformational (c; moderate; p. 113; LO3; AACSB Communication) ________ means the advertising message “rings true” and helps the consumer identify with the brand on a personal level. a. Resonance b. Emotions c. Transformation d. Symbolism e. Conditioned learning (a; moderate; p. 113; LO3; AACSB Communication) 48.

49.

________ is stronger than liking because it involves an element of selfidentification. a. Resonance b. Cognitive learning c. Transformation d. Symbolism e. Conditioned learning (a; moderate; p. 113; LO3)

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50.

________ is the process of making symbolic connections between a brand and characteristics, qualities, or lifestyles that represent the brand’s image and personality. a. Resonance b. Association c. Transformation d. Symbolism e. Cognitive learning (b; moderate; p. 116; LO3) 51.

Which of the following is a component of association? a. resonance b. liking c. conditioned learning d. perception e. emotions (c; moderate; p. 116; LO3; AACSB Communication) 52.

Which of the following is NOT a component of association? a. symbolism b. conditioned learning c. brand transformation d. liking e. all of the above are components of association (d; difficult; p. 116; LO3) 53.

________ means something that stands for something else, such as a quality or value. a. Resonance b. Symbolism c. Conditioned learning d. Brand transformation e. Affect (b; moderate; p. 116; LO3; AACSB Analytical Skills) 54.

________ means a brand takes on meaning when it is transformed from a mere product into something special, something that is differentiated from other products in the category by virtue of its brand identity and image. a. Resonance b. Symbolism c. Conditioned learning d. Brand transformation e. Affect (d; moderate; p. 116; LO3; AACSB Analytic Skills)

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55.

Brand identity is associated with which communication dimension of branding? a. perceive b. understand c. feel d. connect e. believe (a; difficult; p. 116; LO3; AACSB Analytic Skills) 56.

Brand position is associated with which communication dimension of branding? a. perceive b. understand c. feel d. connect e. believe (b; difficult; p. 114; LO3; AACSB Communication) 57.

Brand personality is associated with which communication dimension of branding? a. perceive b. understand c. feel d. connect e. believe (c; difficult; p. 113; LO3; AACSB Communication) 58.

Brand image is associated with which communication dimension of branding? a. perceive b. understand c. feel d. connect e. believe (d; difficult; p. 116; LO3; AACSB Communication) 59.

Brand promise is associated with which communication dimension of branding? a. perceive b. understand c. feel d. connect e. believe (e; difficult; pp. 113-114; LO3 AACSB Communication)

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60.

Brand loyalty is associated with which communication dimension of branding? a. perceive b. understand c. act d. connect e. believe (c; difficult; p. 119; LO3 AACSB Communication) 61.

The ________ states what the brand is all about, its essence. a. brand position b. brand image c. brand promise d. brand loyalty e. brand personality (a; difficult; p. 101) 62.

________ is communicated through everything that can be observed about a product. a. Brand position b. Brand image c. Brand promise d. Brand loyalty e. Brand personality (c; difficult; p. 101) 63.

________ is illustrated by the favorite brand that you buy regularly. a. Brand position b. Brand image c. Brand promise d. Brand preference e. Brand personality (d; moderate; p. 118; LO3; AACSB Analytical Skills) 64.

An attitude (respect, preference), an emotion (liking), and an action (repeat purchases) is ________. a. brand position b. brand image c. brand promise d. brand loyalty e. brand personality (d; moderate; p. 118; LO3)

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65.

________ is the conscious intent on the part of the source to influence or motivate the receiver of a message to believe or do something. a. Argument b. Involvement c. Persuasion d. Association e. Cognition (c; moderate; p. 117; LO3; AACSB Communication) 66.

Which of the following is a component of persuasion? a. attitudes b. symbolism c. emotion d. want e. need (a; moderate; p. 117; LO3; AACSB Communication) 67.

Which of the following is NOT a component of persuasion? a. attitudes b. argument c. involvement d. motivation e. symbolism (e; moderate; pp. 117-118; LO3; AACSB Communication) 68.

A(n) ________ is mental readiness to react to a situation in a given way, is seen by many scholars as the most central factor in persuasion, and can be positive, negative, or neutral. a. attitude b. argument c. conviction d. preference e. association network (a; moderate; p. 117: LO3) 69.

________ means consumers believe something to be true. a. Attitude b. Preference c. Conviction d. Loyalty e. Credibility (c; moderate; p. 118; LO3)

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70.

Which of the following is NOT a component of the behavior response? a. try b. attitude c. contact d. prevention e. buy (b; moderate; pp. 119-121; LO3)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71. Advertising is, first of all, a form of communication. (True; easy; p. 103; LO1; AACSB Communication) 72.

Mass communication is a conversation or dialogue, and the source and receiver change positions as the message bounces back and forth between them. (False; easy; p. 103; LO1; AACSB Communication) 73. Feedback interrupts the sending as well as the receiving of the message. (False; moderate; p. 103; LO1; AACSB Communication) 74. The advertiser’s objectives are focused on the message. (False; difficult; pp. 104-105; LO1; 75.

Good marketing communication is effective when it generates the advertiser's desired response (True; difficult; p. 106; LO2; Communication) 76.

The most common and long-standing explanation of advertising effects is one referred to as AIDA, which stands for attitude, interest, decision, and action. (False; moderate; p. 106; LO2) 77. The hierarchy-of-effects models adequately explain how advertising works. (False; difficult; p. 106; LO2) 78.

The Facets model posits that effective advertising can create six types of consumer responses: perception, cognition, affective/emotion, association, persuasion, and behavior. (True; moderate; pp. 108-109; LO3; AACSB Communication) 79. The affective/emotion consumer response refers to understanding. (False; moderate; p. 113; LO3) 80.

Cognition is the process by which we receive information through our five senses and assign meaning to it. (False; moderate; pp. 113-114; LO3)

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81.

Advertising creates visibility for a product or brand through exposure, and consumers respond by selecting messages to which they pay attention, a process called selective perception. (True; moderate; p. 110; LO3) 82. Interest and relevance create stopping power. (False; moderate; p. 110; LO3) 83.

A critical factor in interest is relevance, which means the message connects on some personal level. (True; moderate; p. 110; LO3) 84. Relevance results when an advertisement initially makes an impression. (False; moderate; p. 110; LO3; AACSB Communication) 85.

Recognition means people remember seeing the ad, and recall means they remember what the ad said. (True; moderate; p. 110; LO3; AACSB Communication) 86.

Subliminal effects are message cues given below the threshold of perception, meaning you cannot easily perceive them because they are too brief to see or they are disguised in some way. (True; easy; p. 111; LO2; AACSB Communication) 87.

Behavior refers to how consumers respond to information, learn, and understand something. (False; moderate; pp. 113-114; LO3) 88. Wants are something you think about and needs are based on feelings and desires. (False; moderate; p. 115; LO3) 89. Cognitive learning occurs when the learner links one thing with another. (False; difficult; p. 115; LO3) 90.

The components of the affective response are needs, wants, emotion, liking, and resonance. (False; difficult; p. 113; LO3) Advertisements that create resonance where the message “rings true” help the consumer identify with the brand on a personal level. (True; moderate; p. 113; LO3; AACSB Communication) 91.

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92.

Association is the process of making symbolic connections between a brand and characteristics, qualities, or lifestyles that represent the brand’s image and personality. (True; moderate; p. 116; LO3) 93.

The components of association are symbolism, conditioned learning, and brand transformation. (True; moderate; p. 116; LO3) 94.

Symbolism means a brand takes on meaning when it is transformed from a mere product into something special, something that is differentiated from other products in the category by virtue of its brand identity and image. (False; difficult; p. 116; LO3; AACSB Analytical Skills) 95.

The effects of advertising on consumer responses can be outlined using the six effects presented in the Facets model. (True; moderate; p. 108; LO3; AACSB Communication) 96.

The product becomes differentiated by virtue of its brand image symbolism and personality cues. (True; moderate; p. 116; LO3; AACSB Analytical Skills) 97. Advertising creates brand meaning through symbolism and association. (True; moderate; p. 116; LO3; AACSB Communication) 98.

Persuasion is the conscious intent on the part of the source to influence or motivate the receiver of a message to believe or do something. (True; easy; p. 117; LO3; AACSB Communication) 99. An argument uses logic, reasons, and proof to make a point and build conviction. (True; moderate; p. 118; LO3; AACSB Analytical Skills) 100. Conviction means an intention to try or buy a product. (False; moderate; p. 118; LO3) 101.

Source credibility means that the person delivering the message, such as a doctor, is respected and believed. (True; easy; p. 118; LO3; AACSB Analytical Skills) 102. Preference is measured both as an attitude and by repeat purchases. (False; difficult; p. 118; LO3; AACSB Analytical Skills) 103.

Conviction refers to the degree to which you are engrossed in attending to an ad or making a product decision. (False; moderate; p. 118; AACSB Analytical Skills)

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104. The components of the behavioral response are try, buy, contact, and prevention. (True; moderate; pp. 119-121; LO3) 105.

There are some situations where advertising messages are designed to deter behaviors. (True; moderate; p. 121; LO3; AACSB Analytical Skills)

GENERAL CONTENT: ESSAY QUESTIONS 106.

Describe the basic communication model, and compare and contrast that model with the interactive communication model. Answer:

The basic communication model begins with a source, a sender who encodes a message (puts it in words and pictures). The message is presented through channels of communication, such as a newspaper, radio, or TV. The message is decoded, or interpreted, by the receiver, who is the reader, viewer, or listener. Feedback is obtained by monitoring the response of the receiver to the message. The entire process is complicated by noise, that which interrupts the sending as well as the receiving of the message, such as a bad connection. The basic communication model is a model of mass communication and is generally a oneway process with the message depicted as moving from the source to the receiver. However, interactive communication, while containing the same elements as the basic communication model, is a form of two-way communication, a dialogue. The difference between one-way and two-way communication is that the latter communication process is interactive and the source and receiver change positions as the message bounces back and forth between them. (moderate; pp. 104-105; LO 1; AACSB Reflective Thinking)

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107.

Name and describe the most common hierarchy-of-effects model that has been used to explain advertising effects as well as the problems with these types of models. Answer:

The most common and long-standing explanation of advertising effects is one referred to as AIDA, which stands for attention, interest, desire, and action. The idea is that first an ad gets attention, then it creates interest, then desire, and it finally stimulates action. It’s a simple model that identifies four effects and makes a prediction about how they are related in a hierarchy of steps. Because AIDA assumes that consumers start with attention and wind up with a decision, it is referred to as a hierarchy-of-effects model. The problem with these models is that advertisers now know that people don’t always proceed through steps in this predictable fashion. The rational, information-driven process is what the AIDA model describes. However, with impulse purchases, you almost work the AIDA model backward. So AIDA isn’t adequate as a model of the various types of effects advertising can create. (moderate; p. 106; LO 2; AACSB Reflective Thinking) 108.

Briefly describe the purpose of Facets Model of Effective Advertising and the six types of consumer responses the model posits. Answer:

The Facets Model posits that effective advertising creates six types of consumer responses: (1) perception, (2) cognition, (3) affective/emotion, (4) association, (5) persuasion, and (6) behavior. Within each type of response, factors, or aspects, give definition to the way that facet is constructed. According to this model, these are facets, polished surfaces like those of a diamond, that come together to make up the unique consumer response to an advertising message. The effects are holistic, leading to an impression or an “integrated perception.” An effective message, then, has a diamondlike quality that represents how the message effects work together to create the desired consumer response. According to this model, that impact can be created in a number of different ways, meaning one brand message may get attention, explain new information, and convince consumers to try the brand and another message might create awareness, stir up an emotion, and link a product to a lifestyle. Both can be equally effective; they just touched the consumer in entirely different ways. (moderate; pp. 108-109; LO 1; AACSB Communication)

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109.

Compare and contrast the Cognition and the Affective (or Emotional) Responses in the Facets Model. Answer: Cognition refers to how consumers respond to information, learn, and understand something. It’s a rational response to a message. The key components of cognition and their roles in effectiveness are: (1) Needs—Matching product features to consumer needs. (2) Information—Facts about products and their features. (3) Learning—Creating understanding. Cognitive learning occurs when a presentation of facts, information, and explanation leads to understanding. (4) Differentiation—Understanding the differences between competitive products. (5) Recall—Locking information in memory.

Affective responses mirror our feelings about something. Affective describes something that stimulates wants, touches the emotions, and creates feelings. The components of the affective response and their roles in effectiveness are: (1) Wants—Creating desire. (2) Emotions—Affecting feelings. (3) Liking—Creating positive feelings for the ad and the brand. (4) Resonance—Appealing to self-interest. Although both mechanisms can explain how advertising works, each works through different mechanisms. Cognitive responses are more rational and work on consumers’ needs. The affective responses are more emotional and work on consumers’ wants. (moderate; pp. 113-115 and 111-113; LO 3; AACSB Reflective Thinking) 110.

Name and describe the components of persuasion and how they work in advertising. Answer: Persuasion is designed to change attitudes and behavior and build beliefs. There are many dimensions of persuasion and advertisers identify the following components to explain how persuasion works in advertising: (1) Attitude—A state of mind, tendency, propensity, position, inclination. An attitude is a mental readiness to react to a situation in a given way and is seen by many as the most central factor in persuasion. Attitudes can be positive, negative, or neutral. Both positive and negative attitudes, particularly those that are embedded in strong emotions, can motivate people to action—or to lack of action. Marketing communication is used to establish, change, or reinforce attitudes.

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(2)

Argument—Reasons, proof. An argument is based on a cognitive strategy. It uses logic, reasons, and proof to make a point and build conviction. Advertising that deals with problems and their solutions often relies on argument, as does advocacy advertising that presents a company’s point of view. (3) Involvement—Engagement, intensifies brand relationships. Involvement refers to the degree to which you are engrossed in attending to an ad or making a product decision. Creating a sense of involvement in a marketing communication program is a persuasive tactic because it gets people engaged with a message about a brand. Involvement is built on relevance—on how much a product message connects with your life and interests. (4) Motivation—Incentive or reason to respond. The idea is that something prompts a person to act in a certain way. To intensify the consumer’s level of motivation, advertising and other marketing communications such as sales promotion use incentives, such as gifts, prizes, and contests, to encourage people to respond. (5) Influence—External people or events that shape attitudes and behavior. (6) Conviction and Preference—Creating agreement and consideration (intend to try or buy). Conviction means consumers believe something to be true. In terms of advertising effects, belief is indicated when consumers develop a preference for, or an intention to, try or buy a product. (7) Loyalty—Repeat purchase, satisfaction, advocate. Brand loyalty, which is measured both as an attitude (preference) and by repeat purchases, is an important response that crosses over between thinking, feeling, and doing. It is a response that is built on customer satisfaction. Loyalty programs are designed to retain customers, as well as increase their business. Loyalty is of value because it can lead to other behavioral responses, such as advocacy for the brand and referrals. (difficult; pp. 117-118; LO3; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

What restaurant is the subject of the chapter opening vignette that discusses building brands with renegade cows? a. Burger King b. Chick-fil-A c. Olive Garden d. McDonalds e. Wendy's (b; easy; p. 101; AACSB Communication)

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112. “To choosy people in a hurry, Chick-fil-A is the premium fast-food restaurant brand that consistently serves America’s best-loved chicken sandwiches.” This is the ________ for Chick-fil-A . a. brand definition b. slogan c. ad campaign d. brand association e. brand quality (a; moderate; p. 101; AACSB Communication 113.

Which major player in the advertising industry assists the advertiser in encoding their messages into words and pictures? a. media b. target audience c. agency d. sender e. vendor (c; easy; p. 104; LO1; AACSB Communication) 114.

Jacob has voted Republican his entire life. No matter how many times he sees a television commercial for the Democratic candidate, he is not going to process the message and be influenced by it. What is hindering Jacob’s reception of the message? a. external noise b. feedback c. bias d. internal noise e. encoding deficiency (d; difficult; p. 105; LO1; AACSB Analytical Skills) 115.

Procter & Gamble encourages a few teenagers to discuss its new products in chat rooms and to send messages to friends via instant messenger and e-mail. P&G has found this to be an effective means of getting the message about a new product out among this age group. What technological innovation has made these activities possible? a. opinion leader chats b. internet c. interactive marketing d. electric marketing e. e-commerce (b; moderate; p. 106; LO1; AACSB; Use of IT)

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116.

While standing in line at the supermarket Janet saw the display of candy bars. She did not think before she put a candy bar in her basket. What is the affective response driver most likely to be involved in such impulse purchases? a. think-feel-do b. liking c. feelings d. needs e. wants (e; difficult; p. 113; AACSB Analytical Skills) 117.

Advertisers spend millions of dollars each year in media time and space. Which component of perception are advertisers attempting to accomplish? a. exposure b. selection and attention c. interest and relevance d. awareness e. recognition (a; easy; p. 110; LO3; AACSB Communication) 118.

The Canned Food Association of America wanted consumers to appreciate the benefits of canned foods. The magazine ad used depicted a rather shapely roboticlooking woman who was very shiny and contrasted with the dark background in the ad. One had to look closely to learn that the ad was touting the benefits of food in cans, but research indicated that consumers did that because the unusual nature of the ad got them to look closer to figure what it was about. Which component of perception was this unusual ad attempting to accomplish? a. exposure b. selection and attention c. awareness d. recognition e. memory (b; difficult; p. 110; LO3; AACSB Reflective Thinking) 119.

Mary will not purchase the Disney movie Lion King for her children because she heard that the word sex was airbrushed in the dust rising from an animal stampede and she doesn’t want her children to be influenced by this. While some claim to have seen it, the word cannot be seen, and if it is there at all, it is below the threshold of perception. What type of effect is this? a. sub-perceptual b. sub-exposure c. subversive d. subliminal e. sub-cognitive (d; moderate; p. 111; LO3; AACSB Reflective Thinking)

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120.

John saw an ad for flowers that included the phone number 1-800-FLOWERS. Two months later, John wanted to send his mother some flowers for Mother’s Day and remembered the phone number from the ad. Which component of cognition is this? a. needs b. information c. learning d. differentiation e. recall (e; moderate; p. 115; LO3; AACSB Reflective Thinking) 121.

John saw an ad for flowers that included the phone number 1-800-FLOWERS. Two months later, John wanted to send his mother some flowers for Mother’s Day and remembered the phone number from the ad, so he called and ordered flowers. What type of effect is this? a. subliminal b. hiatus c. delayed d. emotional e. affective (c; moderate; p. 115; LO3; AACSB Reflective Thinking) 122.

Lauren is very particular about her coffee in the morning, using bottled water because the tap water in her community smells like chlorine and makes her coffee taste funny. She saw an ad for a coffeemaker that had a filter to filter out impurities from the water used to make the coffee. The ad had the headline, “Come on, this is your coffee we’re talking about!” When Lauren saw that, she exclaimed, “Yes!” because she could identify with it on a personal level. What component of the affect response appeals to self-interest like this ad does? a. wants b. emotions c. liking d. resonance e. needs (d; moderate; p. 113; LO3; AACSB Reflective Thinking) 123.

What was the main purpose for advertising the "Got Milk?" milk mustache campaign? a. to provide information about milk b. to change the attitudes of adults toward milk c. to combat lost market share of milk d. to increase awareness of milk e. to get more retailers to sell milk (b; difficult; p. 117; LO3 AACSB Communication)

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124.

An ad for CLR bathroom cleaner shows soap scum and grime on a shower wall. One spray is all it takes for CLR to restore everything to a shiny clean luster. Which component of persuasion is CLR using in its ad? a. attitudes b. argument c. involvement d. motivation e. influence (b; moderate; p. 118; LO3) What did Carson B. Wagner’s research, showcased in “The Inside Story,” show? a. Advertising must be novel to catch attention. b. People will be better influenced by ads with rational appeals rather than emotional appeals. c. Subliminal effects are real and can influence peoples’ behavior. d. Widespread antidrug ads can make people think drug use is widespread, and they become curious about experimenting themselves. e. People will be better influenced by ads with emotional appeals rather than rational appeals. (d; moderate; pp. 121-122; LO3; Reflective Thinking) 125.

126.

The AFLAC duck had a higher Q score than both Ronald McDonald and the Energizer Bunny. What is a Q score? a. a measure of a character’s longevity b. a measure of efficiency in developing a character c. a measure of how much is spent to develop a character d. a measure of a character’s believability e. a measure of a character’s familiarity and appeal (e; moderate; p. 127; LO1; AACSB Communication)

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Just For Me is a line of hair care products for pre-teenage girls, that is, girls between the ages of eight and thirteen. This is the age in which young girls start to care about their looks and want to make their own decisions regarding their grooming. The manufacturer of this brand decided to use television advertising to inform and persuade girls about this line of products.

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127.

Mini-Case Question. The young girls to whom the advertising is targeted represent which element of the basic communication model? a. source b. sender c. encoder d. channel e. receiver (e; easy; pp. 103-105; LO1; AACSB Communication) 128.

Mini-Case Question. The manufacturer of this line of products used an advertising agency to assist in developing the commercial so that it would communicate the desired meaning to the preteenage girl. Which element of the basic communication model does this represent? a. source b. sender c. encoding d. channel e. decoding (c; moderate; p. 105; LO1; AACSB Communication) 129.

Mini-Case Question. The commercial developed went through extensive testing because the advertiser and their agency know that this audience is very fickle when it comes to which commercials they will attend to. This process in which consumers respond by selecting messages to which they pay attention is called ________. a. selective exposure b. selective perception c. selective attention d. selective interest e. selective relevance (b; moderate; p. 110; LO3; AACSB Reflective Thinking) 130.

Mini-Case Question. Hilary Duff, a singer and actress popular with the target market, appears in the commercial claiming the benefits of the product. Because she is well liked, respected, and believable to this target market, the ads were very successful. What is the most likely reason for the success of this campaign? a. The target market needed this product. b. The target market wanted this product. c. Hilary Duff was a credible source to deliver this message to this target audience. d. This was a high-involvement product. e. This was a low-involvement product. (c; moderate; p. 118; LO1; AACSB Reflective Thinking)

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APPLICATION QUESTIONS: SHORT-ANSWER 131.

Briefly explain Chick-fil-A's brand definition and positioning strategy.

Answer: Here’s how Chick-fil-A defines its brand: “To choosy people in a hurry, Chickfil-A is the premium fast-food restaurant brand that consistently serves America’s best-loved chicken sandwiches.” The brand statement identifies a target audience (people in a hurry), a frame of reference (fast-food restaurant), and a point of difference (consistently serves America’s best-loved chicken sandwiches). Chickfil-A chicken sandwiches were positioned as the premium alternative to hamburgers. (moderate; pp. 101-102; AACSB Analytical Skills) 132.

What is the major difference between the basic communication model and an interactive communication model? Answer:

The basic communication model is a mass communication model in which communication is a one-way process with the message depicted as moving from the source to the receiver. However, interactive communication is a form of twoway communication, a dialogue. The difference between one-way and two-way communication is that the latter is interactive, and the source and receiver change positions as the message bounces back and forth between them. (moderate; p. 103; LO1; AACSB Reflective Thinking) 133.

Describe the AIDA model and what it is used for. Answer:

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134.

List the five key components of perception and their roles in effectiveness. Answer:

(1) Exposure—Making contact (2) Selection and Attention—Creating stopping power (3) Interest and Relevance—Creating pulling power (4) Awareness—Making an impression (5) Recognition—Making a mental note (easy; p. 106; LO2; AACSB Analytical Skills) 135.

People don't choose to watch ads for personal hygiene products. How can knowledge of perception drivers guide the creators of personal hygiene products ads? Answer:

Consumers select messages to which they pay attention, a process called selective perception. Here’s how perception works: Ads for personal hygiene products have a battle getting attention because people don’t choose to watch them. However, if the message is selected and attended to, then the consumer may react to it with interest if it is relevant. The result is awareness of the ad or brand, which is filed in memory at least to the point that the consumer recognizes the brand or ad. The key factors driving perception, then, are exposure, selection and attention, interest and relevance, awareness, and recognition. . (moderate; p. 110; LO3; Analytical Skills) 136.

A researcher is paging through a magazine and asking respondents whether they remember seeing a particular ad. Explain which component of perception this is assessing. Answer:

The factor of perception this is assessing is recognition which means the people remember seeing the ad. Recognition is a measure of perception and is used to determine awareness. (moderate; p. 110; LO3; AACSB Reflective Thinking)

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137.

Why did the advertising industry sponsor an ad that had the headline, “People Have Been Trying to Find the Breasts in These Cubes Since 1957”? Answer:

The advertising industry has been criticized by some who claim that subliminal “embeds” are placed in ads to manipulate purchase behavior, most often through appeals to sexuality. Author Wilson Key maintains in his book, Subliminal Seduction, that 99 percent of ads for alcohol use subliminal embeds that are buried so skillfully that the average person does not consciously notice them unless they are pointed out. Experts in the ad industry contend that it’s silly to think such techniques would work because they are below the perceptual threshold, and this ad was an attempt to tell the industry’s view on this issue. The advertising industry considers accusations of subliminal advertising to be both damaging and untrue. (moderate; p. 112; LO3; AACSB Reflective Thinking) 138.

Compare and contrast needs and wants. Answer:

Needs are something you think about and wants are based on feelings and desires. So when we refer to needs, we are usually talking about the cognitive impact of an advertising message. Wants are depicted as influenced more by emotion or desire. (moderate; p. 115; LO3; AACSB Analytical Skills) 139.

Explain how liking is measured in terms of responses and why it is done that way. Answer:

Liking is measured in terms of two responses: liking the ad or liking the brand. The assumption is that if you like the ad, then that positive feeling will transfer to the brand. It is possible, however, for consumers to like the ad and not even be able to remember the brand, so the positive feeling generated by the ad may not always transfer to the brand. (moderate; p. 113; LO3; Analytical Skills)

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140. What was the main objective of the "Got Milk?" with the milk mustache advertising campaign, and how was persuasion involved? Answer: The real objective of these ads is to change your attitude toward milk. It aims to convince you that milk is not just for kids and that attractive, interesting adults drink it, too. Persuasion is the conscious intent on the part of the source to influence or motivate the receiver of a message to believe or do something. Persuasive communication—creating or changing attitudes and creating conviction—are important goals of most marketing communication. An attitude is a state of mind—a tendency, inclination, or mental readiness to react to a situation in a given way. Since advertising rarely delivers immediate action, surrogate effects, such as changing an attitude that leads to a behavior, are often the goal of advertising. Attitudes are the most central factors in persuasion. (moderate; p. 117; LO3; Reflective Thinking) 141.

Researchers were planning brand and positioning strategies by asking respondents what they think of when they hear the brand name “iPod.” Jan responded that she thought of “cool,” “music,” “freedom,” “cutting edge technology,” “hip,” and “young.” What are the researchers doing in this research? Answer:

All these terms that came to Jan’s mind form her network of association when she thinks of this brand. This is one way to test brand perceptions to map the structure and logic of these association networks, which lead to message strategies. (moderate; p. 116; LO3; AACSB Reflective Thinking) 142.

Explain how advertising employs both rational arguments and compelling emotions to create persuasive messages.

Answer: There are many dimensions to persuasion and advertisers identify the following components to explain how persuasion works in advertising: (1) Attitudes—A state of mind, tendency, propensity, position, inclination (2) Argument—Reasons, proof (3) Involvement—Engagement, intensifies brand relationships (4) Motivation—Incentive, reason to respond (5) Influence—External people or events that shape attitudes and behavior (6) Conviction and Preference—Creating agreement and consideration (intend to try or buy) (7) Loyalty—Repeat purchases, satisfaction, advocate (difficult; pp. 117–118; LO1)

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143.

Mitch is very interested in all electronic devices from computers to stereos and pays attention to all advertisements related to these types of products, even if he is not purchasing one of these products. Why does he do this? Answer: Mitch is highly involved in these types of product categories. Involvement refers to the degree to which you are engrossed in attending to an ad or making a product decision. Although electronic products are typically considered highinvolvement products, Mitch attends to these messages merely because he cares a lot about these types of products.

Perhaps others ask him for assistance when making a purchase decision, and he uses advertisements as a source of information to feed his interest and knowledge regarding these types of products. (moderate; pp. 117-118; LO1; AACSB; ) 144.

Explain what Carson Wagner found in his research that is highlighted in “The Inside Story.” Answer:

Dr. Wagner tested the idea that antidrug ads might actually result in increased drug use. He based his research on the psychology of curiosity literature, which suggested that if antidrug ads make people think drug use is widespread, they might become curious about experimenting themselves. His study supported this hypothesis. (moderate; p. 121; LO3; Reflective Thinking) 145.

Anheuser-Busch, a beer manufacturer, sponsors an advertising campaign to curb drunk driving, using the tagline “Friends Don’t Let Friends Drive Drunk.” They’ve also shown a burning automobile with the headline, “Ever Toast a Friend?” Which component of the behavioral response are these ads attempting to stimulate? Answer:

They are attempting to stimulate the prevention response, which means to discourage unwanted behaviors. In this case, drunk driving is a social action situation where the advertising messages are designed to deter this behavior. (easy; p. 121; LO3; Reflective Thinking)

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146.

On Wednesday Jim heard on the radio an ad about a new book by one of his favorite authors. On Saturday at his wife's suggestion they went shopping at the mall. When he saw the bookstore he remembered the new book and went into the store to purchase the book. Explain the effect of the ad operating in this situation. Answer:

Advertising is a victim of delayed effects – messages are seen and heard at one time and may or may not come to mind at a later date when the consumer is in the purchase situation. The impact of traditional advertising, like the radio ad, is seldom immediate. The ad for the new book caught Jim's attention. He thought about it three days later when he saw the bookstore. His memory was involved in recalling not just the ad but the content of the message. (moderate; pp. 123-124; LO2; Analytical Skills)

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Oust, a brand of air freshener, advertises how its product will get the odor out, not merely cover it up. The advertisement provides facts, information, and an explanation of how Oust can kill bacteria in the air that cause odors. 147.

Mini-Case Question. among consumers?

What type of response is Oust attempting to generate

Answer: Cognitive, which refers to how consumers respond to information, learn, and understand something. It’s a rational response to a message. (easy; p. 106) 148.

Mini-Case Question. What type of learning occurs when a presentation of facts, information, and explanations leads to understanding? Answer:

Cognitive learning occurs when a presentation of facts, information, and explanations leads to understanding. (moderate; p. 108)

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149.

Mini-Case Question. Mary saw an ad for Oust on television and in a magazine, but she didn’t purchase the product right away. She remembered the ads when she saw the product in the store and decided to try it then. What effect does this demonstrate? Answer:

This is an example of advertising’s delayed effects—how messages are seen at one time and come back to mind at a later date when the consumer is in a purchase situation. (moderate; p. 109) 150.

Mini-Case Question. Mary was extremely satisfied with the product after she tried it, so she purchased the product again. She even told her mother and sister about the benefits of Oust and convinced them to try the product as well. What component of persuasion does this represent and why do marketers want to attain this level of persuasion?

Answer: Brand loyalty, which is measured both as an attitude (preference) and by repeat purchases, is an important response that crosses over between thinking, feeling, and doing. It is a response that is built on customer satisfaction. If you try a product and like it, then you are more likely to buy it again. Loyalty is of value because it can lead to other behavioral responses, such as advocacy for the brand, that is, speaking out on its behalf, which Mary did. (moderate; pp. 114–115)

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GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

________ describes how individuals or groups select, purchase, use, or dispose of products, as well as describing the needs that motivate these behaviors. a. Marketing b. Consumption c. Consumer behavior d. Psychology e. Sociology (c; easy; p. 131; LO1) 2.

People who buy or use products to satisfy their needs and wants are known as ________. a. consumers b. buyers c. users d. customers e. a market (a; moderate; p. 131; LO1) 3.

Which of the following is a social/cultural influence on consumer decision making? a. state of mind b. innovation c. satisfaction d. family e. personality (d; moderate; p. 132 [Figure 5.1]; LO2: AACSB Multicultural and Diversity) 4.

Which of the following is NOT a social/cultural influence on consumer decision making? a. culture b. motivations c. social class d. family e. demographic (b; moderate; p. 132 [Figure 5.1]; LO2; AACSB Multicultural and Diversity)

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Which of the following is a psychological influence on consumer decision making? a. state of mind b. innovation c. family d. culture e. brand relationship (a; moderate; p. 132 [Figure 5.1]; LO2) 6.

Which of the following is NOT a psychological influence on consumer decision making? a. state of mind b. selective perception c. satisfaction d. personality e. family (e; moderate; p. 132 [Figure 5.1]; LO2) 7.

Which of the following choices is a behavioral influence on consumer decision making? a. culture b. reference groups c. personality d. psychographics e. innovation and adoption (e; moderate; p. 132 [Figure 5.1]; LO2) 8.

A critical behavior predictor called _______refers to how much of a product category or brand a customer buys. a. usage b. brand relationship c. state of mind d. innovation e. adoption (c; moderate; p. 147 ; LO2) 9.

________ is(are) made up of tangible items, such as art, literature, buildings, and music, and intangible concepts, such as knowledge, laws, morals, and customs. a. History b. Culture c. Reference groups d. Consumer behavior e. Values (b; moderate; p. 132; LO2: AACSB Multicultural and Diversity)

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10.

Culture is learned and passed on from one generation to the next, and the boundaries each culture establishes for behavior are called ________. a. references b. values c. norms d. subculture e. core values (c; moderate; p. 132; LO2: AACSB Multicultural and Diversity) 11.

________ are simply rules that we learn through social interaction that specify or prohibit certain behaviors. a. Norms b. References c. Values d. Core values e. Heuristics (a; moderate; p. 132; LO2: AACSB Multicultural and Diversity) 12.

The source of norms is our ________, which come from our immersion in a specific culture and represent our underlying belief systems. a. values b. legal system c. social system d. social class e. education (a; moderate; p. 132; LO2: AACSB Multicultural and Diversity) 13.

A sense of belonging, excitement, fun and enjoyment, warm relationships, selffulfillment, respect from others, accomplishment, security, and self-respect are all examples of ________. a. norms b. culture c. core values d. behaviors e. driving forces (c; moderate; p. 133; LO2: AACSB Multicultural and Diversity) 14.

________ can be defined by geographic regions or by shared human characteristics such as age, values, language, or ethnic background. a. Norms b. Cultures c. Reference groups d. Subcultures e. Mini-cultures (d; moderate; p. 133; LO2: AACSB Multicultural and Diversity)

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15.

Teenagers, college students, retirees, southerners, Texans, athletes, musicians, and working single mothers all have what in common? a. They all come from the same social class. b. They all share the same culture. c. They all share the same behavioral characteristics. d. They all share the same demographic characteristics. e. They can all be considered subcultures. (e; difficult; p. 133; LO2: AACSB Multicultural and Diversity) 16.

________ is a term that describes how various companies operate. a. Corporate culture b. Subculture c. Management culture d. Reference group e. Working group (a; easy; p. 134; LO2: AACSB Multicultural and Diversity) 17.

The position you and your family occupy within our society is known as ________ . a. subculture b. culture c. ethnic group d. reference group e. social class (e; easy; p. 134; LO2: AACSB Multicultural and Diversity) 18.

Which of the following does NOT determine an individual’s social class? a. income b. wealth c. education d. occupation e. country (e; easy; p. 134; LO2: AACSB Multicultural and Diversity) 19.

Which of the following is NOT typically used to determine social class? a. income b. age c. wealth d. value of home e. occupation (b; moderate; p. 134; LO2: AACSB Multicultural and Diversity)

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20.

A ________ is a group of people we use as a guide for behavior in specific situations. a. subgroup b. social class c. reference group d. normal group e. culture (c; moderate; p. 134; LO2) 21.

Which of the following is NOT a function reference groups perform for consumers? a. they provide information b. they determine which products to buy c. they serve as a means of comparisons d. they offer guidance e. all of the above are functions reference groups perform for consumers (b; difficult; p. 134; LO2) 22.

Which of the following is the most important reference group because of its longevity and the intensity of its relationships? a. peers b. classmates c. family d. employer e. fellow employees (c; moderate; p. 135; LO2) 23.

A ________ consists of two or more people who are related by blood, marriage, or adoption, and live in the same household. a. subculture b. family c. household d. reference group e. normative group (b; easy; p. 135; LO2) 24.

A ________ consists of all those who occupy a dwelling whether they are related or not. a. subculture b. family c. household d. reference group e. normative group (c; easy; p. 135; LO2)

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25.

________ are the statistical, social, and economic characteristics used to describe a population, including age, gender, education, income, occupation, race, and family size. a. Psychographics b. Lifestyles c. Geographics d. Demographics e. Censusgraphics (d; moderate; p. 135; LO2: AACSB Multicultural and Diversity) 26.

Age, gender, education, income, occupation, race, and family size are all examples of ________ variables. a. psychographic b. lifestyle c. demographic d. geographic e. censusgraphic (c; moderate; p. 135; LO2: AACSB Multicultural and Diversity) 27.

________ gender differences are physical traits that are inherent in males or females, such as a woman’s ability to bear children. a. Driving b. Primary c. Secondary d. Obvious e. Fundamental (b; moderate; p. 137; LO2: AACSB Multicultural and Diversity) 28.

________ gender traits tend to be associated with one sex more than the other; for instance, wearing perfume and shaving legs are association with women. a. Driving b. Primary c. Secondary d. Non-obvious e. Nonfundamental (c; moderate; p. 137; LO2: AACSB Multicultural and Diversity)

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29.

Which of the following statements is false? a. In the last decade gay and lesbian consumers have become serious target markets. b. Few cultures are more important to U.S. marketing than the Hispanic culture because it is growing proportionately faster than other ethnic groups. c. There are media use differences based on ethnicity. d. In the United States there has been a gradual movement from white-collar occupations to blue-collar occupations during the last three decades. e. For advertisers, education tends to correlate with the type of medium consumers prefer. (d; moderate; pp. 138-139; LO2: AACSB Multicultural and Diversity) 30.

Consumers with lower education tend to be higher users of ________. a. newspapers b. radio c. magazines d. television e. the Internet (d; moderate; p. 138; LO2: AACSB Analytical Skills) 31.

________ is the amount of money available to a household after taxes and basic necessities such as food and shelter are paid for. a. Income b. Discretionary income c. Available income d. Incremental income e. Spendable income (b; moderate; p. 139; LO2) 32.

The basic driving forces that motivate us to do something are called ________. a. wants b. desires c. values d. needs e. attitudes (d; moderate; p. 141; LO2; AACSB Reflective Reasoning)

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33.

________ needs include the need for water, food, air, shelter, and sex, and because satisfying these needs is necessary to maintaining life, they are also called primary needs. a. Required b. Discretionary c. Core d. First e. Innate (e; moderate; p. 141; LO2; AACSB Analytical Skills) 34.

________ are what we feel for more essential items, particularly the primary needs, such as food and shelter, and ________ occur when we desire or wish for something. a. Needs; wants b. Wants; needs c. Primary needs; secondary needs d. Innate needs; acquired needs e. Innate wants; acquired wants (a; moderate; p. 141; LO2; AACSB Reflective Reasoning) 35.

________ needs are those we learn in response to our culture and environment and may include needs for esteem, prestige, affection, power, and learning. a. Innate b. Desired c. Acquired d. Selective e. Higher-order (c; moderate; p. 141; LO2; AACSB Multicultural and Diversity) 36.

Because acquired needs are not necessary to your physical survival, they are considered ________ needs. a. secondary b. unmet c. unnecessary d. innate e. discounted (a; moderate; p. 141; LO2; AACSB Analytical Skills) 37.

According to Maslow’s Hierarchy of Needs, which is the highest level of needs? a. ego needs b. belongingness needs c. safety needs d. self-actualization needs e. physiological needs (d; moderate; p. 138 [Figure 5.4])

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38.

Prestige, status, and accomplishments are all examples of which level of needs in the Maslow’s Hierarchy of Needs? a. ego needs b. belongingness needs c. safety needs d. self-actualization needs e. physiological needs (a; moderate; p. 141 [Figure 5.2]; LO2; AACSB Reflective Reasoning) 39.

In Maslow's pyramid ________ accomplishment. a. self-actualization b. ego c. belongingness d. safety e. physiological (b; moderate; p. 141 [Figure 5.2]; LO2)

needs

include

prestige,

status,

and

40.

In Maslow's pyramid ________ needs include love, friendship and acceptance by others. a. self-actualization b. ego c. belongingness d. safety e. physiological (c; moderate; p. 141 [Figure 5.2]; LO2) 41.

In Maslow's pyramid ________ needs include security, shelter, and protection. a. self-actualization b. ego c. belongingness d. safety e. physiological (d; moderate; p. 141 [Figure 5.2]; LO2) 42.

According to the theory of ________, we tend to compensate or justify the discrepancies between what we actually received and what we thought we would receive. a. selective satisfaction b. cognitive dissonance c. adaptation d. habituation e. attribution (b; moderate; pp. 141-142; LO2; AACSB Reflective Reasoning)

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43.

A ________ is an internal force that stimulates you to behave in a particular manner and is produced by the tension caused by an unfulfilled need. a. drive b. desire c. want d. motive e. need (d; moderate; p. 142; LO2; AACSB Analytical Skills) 44.

Which of the following statements regarding attitudes is false? a. Advertisers are interested in attitudes because of their impact on motivations. b. Attitudes vary in direction and strength; that is, an attitude can be positive or negative, reflecting like or dislike, or it can be neutral. c. Most attitudes are deeply set and cannot be changed. d. Attitudes are important to advertisers because they influence how consumers evaluate products, institutions, retail stores, and advertising. e. Attitudes are learned. (c; difficult; p. 142; LO2; AACSB Analytical Skills) 45.

________ refers to consistency in behavior in terms of how we react to events and situations and behave in various roles. a. Psychology b. Psychographics c. Attitude d. Value e. Personality (e; moderate; p. 142; LO2; AACSB Analytical Skills) 46.

________ refers to lifestyle and psychological characteristics, such as attitudes, interests, and opinions. a. Psychology b. Psychographics c. Attitude d. Value e. Personality (b; moderate; p. 142; LO2; AACSB Analytical Skills) 47.

________ looks at patterns of consumption, personal relationships, and leisure activities. a. Lifestyle analysis b. Psychographic profiling c. Value analysis d. Discretionary analysis e. Cluster analysis (a; moderate; p. 143; LO2; AACSB Analytical Skills)

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48.

What two variables are used to organize the VALS classification of consumers? a. resources and innovation b. age and self-orientation c. age and social class d. resources and psychographics e. social class and education (a; difficult pp. 145-146 [Figure 5.4]; LO2; AACSB Analytical Skills) 49.

Which of the following is NOT a VALS classification of consumers? a. Innovators b. Strivers c. Makers d. Doers e. Believers (d; difficult; p. 145 [Figure 5.4]; LO2; AACSB Analytical Skills) 50.

________ are professional researchers hired by advertisers to identify trends that may affect consumer behavior. a. Profilers b. Futurists c. Trend spotters d. Demographers e. Trend hunters (c; moderate; p. 148; LO2) 51.

________ are trend spotters who specialize in identifying trendy fads that appeal to young people. a. Cool hunters b. Cutting-edge spotters c. Trend hunters d. Gen Y spotters e. Trend setters (a; moderate; p. 148; LO2; AACSB Analytical Skills) 52.

________ refers to how much of a product category or brand a customer buys. a. Adoption b. Innovation c. Pareto Rule d. 80/20 Principle e. Usage (e; easy; p. 147; LO2; AACSB Analytical Skills)

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53.

Which of the following is NOT considered a consumer category of brand relationship? a. innovators b. ex-users c. first-timers d. switchers e. regulars (a; moderate; p. 147; LO2; AACSB Analytical Skills) 54.

Which of the following is a consumer category of brand relationship? a. switchers b. light users c. early adopters d. innovators e. laggards (a; moderate; p. 147; LO2; AACSB Analytical Skills) 55.

Which category of the adoption process represents the small group of people (i.e., 2.5 percent of the population) willing to try something new? a. innovators b. early adopters c. early majority d. late majority e. laggards (a; easy; p. 148; LO2; AACSB Analytical Skills) 56.

________ is your view of the relationship between what you gain by trying something new and what you have to lose if it doesn’t work out. a. Adoption b. Adaptation c. Perceived risk d. Selective exposure e. Selective distortion (c; moderate; p. 148; LO2; AACSB Analytical Skills) 57.

Which of the following is NOT a step in the consumer decision process? a. need recognition b. cognitive dissonance c. information search d. postpurchase evaluation e. purchase decision (b; moderate; p. 149; LO3; AACSB Analytical Skills)

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58.

________ occurs when the consumer recognizes a need for a product. a. Need recognition b. Information search c. Evaluation of alternatives d. Purchase decision e. Postpurchase behavior (a; easy; p. 150; LO3; AACSB Analytical Skills) 59.

________ is the stage where consumers compare various products and features and reduce the list of options to a manageable number. a. Need recognition b. Information search c. Evaluation of alternatives d. Purchase decision e. Postpurchase behavior (c; easy; p. 150; LO3; AACSB Analytical Skills) 60.

In which stage of the consumer decision process is a consumer likely to feel cognitive dissonance? a. need recognition b. information search c. evaluation of alternatives d. purchase decision e. postpurchase behavior (e; moderate; p. 150; LO3; AACSB Analytical Skills) 61.

Which of the following statements regarding influences on business-to-business decision making is false? a. In organizational buying, many individuals are involved in making the decision, often with a buying committee making the final decision. b. Although the business buy may be motivated by both rational and emotional factors, the use of rational and quantitative criteria dominate most decisions. c. Quality is NOT important in business-to-business buying. d. The decision is sometimes made based on a set of specifications to potential suppliers who then bid on the contract. e. The decision may span a considerable time, creating a lag between the initial contact and final decision. (c; moderate; p. 151; LO3; AACSB Analytical Skills)

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62.

________ means dividing the market into groups of people who have similar characteristics in certain key product-related areas. a. Targeting b. Marketing c. Positioning d. Segmenting e. Profiling (d; moderate; p. 151; LO3; AACSB Multicultural and Diversity) 63.

________ means identifying the group that might be the most profitable audience, the one most likely to respond to marketing communication. a. Targeting b. Marketing c. Zoning d. Segmenting e. Profiling (a; moderate; p. 151; LO3; AACSB Multicultural and Diversity) 64.

In which strategy do planners treat the market as homogeneous, purposely ignoring differences in the market and using one marketing strategy that will appeal to as many people as possible? a. multi-segment strategy b. undifferentiated strategy c. homogeneous strategy d. one-size-fits-all strategy e. concentrated strategy (b; moderate; p. 152; LO3; AACSB Multicultural and Diversity) 65.

A group of people, identified and selected by the marketer, with similar needs and characteristics who are most likely to be receptive to the marketer’s product and messages is known as a ________. a. market segment b. viable segment c. sustainable segment d. viable market e. target market (e; moderate; p. 152; LO3; AACSB Multicultural and Diversity) 66.

Which of the following is NOT an approach to segmenting consumer markets? a. demographic segmentation b. geographic segmentation c. psychographic segmentation d. benefit segmentation e. brand (e; easy; p. 153; LO3; AACSB Multicultural and Diversity)

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67.

Which approach to segmentation divides people into groups based on product category and brand usage? a. demographic segmentation b. geographic segmentation c. psychographic segmentation d. benefit segmentation e. behavioral segmentation (e; moderate; p. 153; LO3; AACSB Multicultural and Diversity) 68.

Which approach to segmentation divides the market using such characteristics as gender, ethnicity, income, and so forth? a. demographic segmentation b. geographic segmentation c. psychographic segmentation d. benefit segmentation e. behavioral segmentation (a; moderate; p. 153; LO3; AACSB Multicultural and Diversity) 69.

International, national, state, city, climate, and urban/rural are all ways to segment a market by ________. a. demographics b. geographics c. psychographics d. behavioral characteristics e. benefits sought (b; easy; p. 153; LO3; AACSB Multicultural and Diversity) 70.

Subsegments of a more general market are known as ________ markets and are defined by individuals with some distinctive trait, such as being ecologically minded consumers. a. sub b. niche c. narrow d. generational e. social (b; moderate; p. 154; LO3; AACSB Multicultural and Diversity)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71. Consumers are people who buy or use products to satisfy their needs and wants. (True; easy; p. 131; LO1) 72. Purchasers and users have the same needs. (False; moderate; p. 131; LO1)

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73.

The social and cultural forces that impact consumer behavior include culture, social class, personality, family, and demographics. (False; moderate; p. 132; LO2; AACSB Multicultural and Diversity) 74.

Values are simply rules that we learn through social interaction that specify or prohibit certain behaviors. (False; moderate; p. 132; LO2; AACSB Multicultural and Diversity) 75. Subculture is a term that describes how various companies operate. (False; moderate; p. 133; LO2; Multicultural and Diversity) 76. A household differs from a family in that it consists of all those who occupy a dwelling whether they are related or not. (True; moderate; p. 135; LO2; AACSB Multicultural and Diversity) 77.

The Asian market is becoming a huge opportunity because it is growing proportionately faster than other ethnic groups. (False; moderate; p. 138; LO2; AACSB Multicultural and Diversity) 78.

Consumers with higher education prefer print media, the Internet, and selected radio and cable stations. (True; moderate; p. 138; LO2; AACSB Multicultural and Diversity) 79. Ethnicity is becoming a major criterion for segmenting markets. (True; difficult; p. 138; LO2; AACSB Multicultural and Diversity 80.

The area in which a target market lives correlates with several demographic characteristics and is important to advertisers. (True; easy; p. 139; LO2; AACSB Multicultural and Diversity) 81. First-level needs include the need for water, food, air, shelter, and sex. (False; difficult; p. 141 [Figure 5.2]; LO2; AACSB Analytical Skills) 82.

Acquired needs are those we learn in response to our culture and environment and may include needs for esteem, prestige, affection, power, and learning. (True; moderate; p. 141; LO2; AACSB Analytical Skills) 83.

Consumers that try a product and find it does not meet their expectations may be dissatisfied. (True; easy p. 141; LO2) 84.

According to the theory of cognitive dissonance, we tend to compensate or justify the discrepancies between what we actually received and what we thought we would receive. (True; moderate; pp. 141-142; LO2; AACSB Analytical Skills)

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85. A need is an internal force that stimulates you to behave in a particular manner. (False; moderate; pp. 141-142; LO2) 86.

Psychographics refers to lifestyle and psychological characteristics, such as activities, interests, and opinions. (True; moderate; pp. 142-143; LO2; AACSB Multicultural and Diversity) 87.

Psychographics are the statistical, personal, social, and economic characteristics used to describe a population including age, gender, education, income, occupation, race, and family size. (False; moderate; p. 142; LO2; AACSB Multicultural and Diversity) 88.

Activities, opinions, and interests are some of the major components used to construct psychographic profiles of consumers. (True; moderate; p. 143; LO2; AACSB Multicultural and Diversity) 89.

In the VALS system, psychographic groups are arranged vertically by selforientation and horizontally by resources. (False; difficult; p. 145 [Figure 5.4]; LO2; AACSB Multicultural and Diversity) 90. The Achievers and Strivers are motivated by achievement. (True; easy; p. 146; LO2; AACSB Multicultural and Diversity) 91.

A critical behavior predictor called usage refers to how much of a product category or brand a customer buys. (True; easy; p. 147; LO2; AACSB Analytical Skills) 92.

According to the Pareto Rule, 20 percent of the users buy 80 percent of the products. (True; moderate; p. 146; LO2) 93.

First-timers are people with low levels of brand loyalty who are willing to leave a brand to try another one. (False; difficult; p. 146; LO2) 94. The first step in the consumer decision process is information search. (False; moderate; p. 149; LO3; AACSB Analytic Skills) 95.

Seekers are people who are driven by a need to know everything they can about a product before making a purchase, particularly for major purchases. (False; difficult; p. 150; LO3; AACSB Analytic Skills) 96.

A difference between the low- and high-involvement decision processes is that in the low-involvement case, the information search stage may be skipped. (True; moderate; p. 149 [Figure 5.6]; LO3; AACSB Analytic Skills)

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97.

The first brands that come to mind when you think of a product category and are considered permissible in the evaluation of alternatives is referred to as the evoked set. (True; moderate; p. 150; LO3; AACSB Analytic Skills) 98. Purchase decision is the last step of the consumer decision process. (False; moderate; p. 150; LO3; AACSB Analytic Skills) 99. Business buyers are not influenced by social and emotional factors. (False; difficult; p. 151; LO3; AACSB Analytic Skills) 100.

Targeting means dividing the market into groups of people who have similar characteristics in certain key product-related areas. (False; moderate; p. 151; LO4; AACSB Analytic Skills) 101.

Market aggregation strategy is one in which marketers treat the market as homogeneous, purposely ignoring differences in the market and using one marketing strategy that will appeal to as many people as possible. (True; moderate; p. 152; LO4; AACSB Analytic Skills) 102.

After segmenting a market, the marketer identifies, evaluates, and selects a target market. (True; easy; p. 152; LO4; AACSB Multicultural and Diversity) 103.

Psychographic segmentation is primarily based on studies of how people spend their money, their patterns of work and leisure, their interests and opinions, and their views of themselves. (True; moderate; p. 153; LO4; AACSB Analytic Skills) 104. The “bling bling generation” was coined by gay upwardly mobile professionals. (False; difficult; p. 154; LO4; AACSB Multicultural and Diversity) 105.

Profiles are descriptions of the target audience that read like a description of someone you know. (True; moderate; p 155; LO4; AACSB Multicultural and Diversity)

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GENERAL CONTENT: ESSAY QUESTIONS 106.

Name and describe the social and cultural influences on consumer decisions and why they are important for advertisers. Answer:

The cultural and social forces that impact consumer behavior fall into five major areas: (1) Culture—Made up of tangible items and intangible concepts that together define a group of people or a way of life. It is learned and passed on from one generation to the next, and the boundaries each culture establishes for behavior are called norms, which are simply rules that we learn through social interaction that specify or prohibit certain behaviors. The source of norms is our values, which come from our immersion in a specific culture. Advertisers strive to understand the underlying core values that govern peoples’ attitudes and refer to them when selecting an ad’s primary appeals. Sometimes a culture can be further broken down into smaller groups called subcultures, which can be defined by geographic regions or by shared human characteristics such as age, values, language, or ethnic background. (2) Social Class—The position you and your family occupy within your society and is determined by such factors as income, wealth, education, occupation, family prestige, value of home, and neighborhood. Marketers assume that people in one class buy different goods from different outlets and for different reasons than people in other classes. (3) Reference Groups—A group of people we use as a guide for behavior in specific situations. Reference groups provide information, they serve as a means of comparison, and they offer guidance for consumers. Ads that feature typical users in fun or pleasant surroundings as well as those that use celebrity endorsements are using a reference group strategy. (4) Family—The most important reference group because of its longevity and the intensity of its relationships. A family consists of two or more people who are related by blood, marriage, or adoption, and live in the same household. Advertisers need to understand the structure, changes, and workings of the family in order to communicate. (5) Demographics—The statistical, personal, social, and economic characteristics used to describe a population including age, gender, education, income, occupations, race, and family size. These characteristics serve as the basis for most advertising strategies and knowing them assists advertisers in message design and media selection for the target market. (moderate; pp. 132–140; LO2; AACSB Multicultural and Diversity)

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107.

Name and describe the behavioral influences on consumer decisions.. Answer: (1)

Usage Behavior—Refers to how much of a product category or brand a customer buys. There are two ways to look at usage: usage rates and brand relationship. Usage rates refer to quantity of purchase: light, medium, or heavy. Because heavy users typically buy the most of a product category or a brand’s share of the market, they are important to marketers and planners make special efforts to understand this key customer group. Brand relationship refers to past, present, or future use of the product by nonusers, ex-users, regulars, first-timers, loyal users, and users of and switchers from, or to, competitive products. (2) Innovation and Adoption—The adoption process is identified in terms of the personal behavior of people and how their behavior reflects the speed with which they are willing to try something new. People are grouped based on these behaviors, such as innovators, early adopters, early majority, late majority, and laggards. Innovators and the early adopters categories are important groups for marketers launching new products. (3) Experiences—People are interested in the experience of doing something like shopping that sometimes may be more important than what is bought. Decisions are often based on what was the experience with the brand— how well it performed, how easy it was to use, and how well customer service responded to questions. (easy; pp. 146-148; LO2; AACSB Reflective Thinking) 108.

Name and describe the psychological influences that motivate consumers and why they are important to advertisers. Answer: (1)

(2)

Perception and State of Mind—Affects the way you perceive information as well as determines your particular pattern of consumer behavior. Your past experiences with a brand, as well as what your friends say about it, can color your feelings and make you more or less receptive to a brand message. This influence includes needs and wants, selective perception, and satisfaction. Needs and Wants—Are two different responses that lead to different reactions to an advertising message. The basic driving forces that motivate us reflect basic survival are needs. Some needs are innate and others are acquired. A want occurs when we desire or wish for something and can provide strong motivation to try or buy something new. Desire is the driving force behind demand. Mass desire is the public spread of a private want; it can't be created by advertising, but advertising can address it and channel it to focus on a particular brand,

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(3)

Motivations—An internal force that stimulates you to behave in a particular manner, usually produced by tension caused by an unfulfilled need. Understanding buying motives is crucial to advertisers because the advertising message and the timing of the ad should coincide with the consumer’s motivation priorities. (4) Attitudes—Attitudes impact motivations, and they are learned, so we can establish them, change them, reinforce them, or replace them with new ones. Attitudes are important to advertisers because they influence how consumers evaluate products, institutions, retail stores, and advertising. (5) Personality—Refers to consistency in behavior in terms of how we react to events and situations and behave in various roles. The idea of personality traits has also been adapted to brands with the idea that brand personalities can be created that will make them distinctive from their competitors. (6) Psychographics—Refers to lifestyle and psychological characteristics, such as attitudes, interest, and opinions. Advertisers use psychographics in order to understand fairly complex consumer pattern groupings. Knowing the psychographic orientation of consumers is a valuable asset to an advertiser in deciding to whom the messages should be targeted. (7) Lifestyles—is a type of psychographic analysis that identifies patterns of consumption, personal relationships, and leisure activities. The wealth of information from this research makes it possible to paint a vivid, detailed, multidimensional portrait of nearly any consumer segment and aid in spotting changes in lifestyles over time. Marketing communication can be viewed as a personal conversation between the brand advertised and the consumer. The better the advertiser knows the consumer, the more Engaging and persuasive the message will be. (moderate; pp. 140-146; LO2; AACSB Reflective Thinking)

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109.

Name and describe the stages of the consumer decision process under a highinvolvement purchase decision and the role advertising plays in each. How is this different under a low-involvement decision? Answer: The stages of the consumer decision process under a high-involvement purchase decision are: (1) Need Recognition—Occurs when the consumer recognizes a need for a product. The goal of advertising at this stage is to activate or stimulate this need. (2) Information Search—Can be casual or formal. Advertising helps the search process by providing information in making it easy to find and remember. (3) Evaluation of Alternatives—The stage where consumers compare various products and features and reduce the list of options to a manageable number. Advertising is important in this process because it helps sort out products on the basis of tangible and intangible features. (4) Purchase Decision—Often a two-part decision. Usually, we select the brand first and then select the outlet from which to buy it. Sometimes we select the outlet first, particularly with impulse purchases. In-store promotions such as packaging, point-of-purchase displays, price reductions, banners and signs, and coupon displays affect these choices. (5) Postpurchase Evaluation—The point where we begin to reconsider and justify our purchases to ourselves. Many consumers continue to read information even after the purchase, to justify the decision to themselves. Advertising, such as copy on package inserts, helps reduce the dissonance by pointing out key features, how to best use the product, or how many product users are satisfied.

The low-involvement decision process is similar, except the information search may be skipped. (moderate; pp. 149-150; LO3; AACSB Reflective Thinking)

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110.

Define segmenting and targeting, and name and describe typical approaches to segmentation. Answer:

Segmenting means dividing the market into groups of people who have similar characteristics in certain key product-related areas. Targeting means identifying the group that might be the most profitable audience, the one most likely to respond to marketing communication. There are six approaches to segmentation: (1) Demographic Segmentation—Divides the market using characteristics such as gender, age, ethnicity, income, and so forth. (2) Life Stage Segmentation---Based on the stage in consumers' life cycle, which includes such categories as children, young people living at home, college students, singles living on their own, couples, families with children, empty nesters,and senior singles living alone. Age is a characteristic of life stage, as is living situation. Discretionary income tends to vary with life stage. (3) Geographic Segmentation—Uses location as a defining variable because consumers needs sometimes vary depending upon where they live. The most important variables are world or global, region, nation, state, city, climate, population density, and urban/rural character. (4) Psychographic Segmentation—Primarily based on studies of how people spend their money, their patterns of work and leisure, their interest and opinions, and their views of themselves. (5) Behavioral Segmentation—Divides people into groups based on product category and brand usage. (6) Values and Benefits-based Segmentation—Based on consumers’ needs or problems. The idea is that people buy products for different benefits they hope to derive. (moderate; pp. 151-157; LO4; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

The Dove "Campaign for Beauty" punctured the obsession with stick-thin bodies and Barbie Doll images. What type of influence on consumer decision making is this obsession? a. psychological b. cultural c. family d. target market e. demographic (b; difficult; pp. 130, 132; LO2)

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112.

According to the chapter’s opening and closing vignettes, Dove’s advertising campaign was very successful. How did Dove achieve this success? a. Dove met the need of women to love their bodies and feel beautiful at any size or age. b. Dove advertised extensively on TV. c. Dove's radio campaign had a major impact on the audience. d. Dove directed the campaign to the target market of men 15-22 years old. e. Dove used typical models in the campaign. (a; moderate; p. 130) 113.

Juan was born in Mexico but moved to the United States when he was five years old. His family is still close to relatives back in Mexico, and he lives in a neighborhood where most people still speak Spanish, eat traditional Mexican dishes, wear traditional Mexican clothing, and listen to Mexican music. He remembers fondly his grandfather telling him stories of his home country’s customs and heroes. All of these factors form the ________ that will influence Juan’s consumer behavior. a. social class b. family c. demographics d. culture e. reference group (d; moderate; p. 132; LO2; AACSB Multicultural and Diversity) 114.

Max is trying to get into a fraternity in college. Because he wants to be accepted by this group, he notices the brand of clothes they all seem to wear and the type of beer they drink at parties, and he does the same. Actually, he doesn’t even like beer, but that seems to be what is expected of people in this fraternity. What influence does this fraternity represent with respect to Max’s consumption behavior? a. culture b. social class c. reference group d. family e. demographics (c; easy; p. 134; LO2; AACSB Multicultural and Diversity) 115.

What race/ethnicity is growing faster proportionately than other ethnic groups? a. white b. black or African American c. Asian d. Hispanic or Latino e. American Indian/Alaskan (d; moderate; p. 138; LO2 AACSB Multicultural and Diversity)

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116.

Which of the following is NOT a psychological influence? a. Perception b. Needs and Wants c. Motivations d. Usage Rates e. Attitudes (d; difficult; p. 138; LO2; AACSB Analytical Skills)

117.

We all have the need for water, food, air, and shelter—basic needs that are necessary to maintaining life. What kind of needs are these known as? a. basic b. innate c. life-giving d. acquired e. necessary (b; moderate; p. 141; LO2; Analytical Skills) 118.

The Dove Real Beauty campaign tried to shatter the myth that the ________ for beauty can only be young, blond, and thin models who represent unattainable standards for most women. a. reference group b. social class c. ethnic group d. subculture e. family segment (a; moderate; p. 135; LO2) 119.

Recently, an adventurous millionaire successfully made a dangerous climb in the Himalayas. This gentleman really has all of his basic needs satisfied, and he claimed to do the things he does for self-fulfillment and for the enriching experience. According to Maslow’s Hierarchy of Needs, which need is he satisfying? a. physiological b. safety c. belongingness d. ego e. self-actualization (e; easy; p. 141 [Figure 5.2]; LO2; AACSB Analytical Skills)

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120.

Jean is 60 years old and very upset with the current discussion in our country about the overhaul of the Social Security System. She thinks the system is working just fine, and she is concerned about her benefits being cut if the system is changed in some way. When she sees information on television or reads in the newspaper about the benefits of changing the system, Jean modifies the information to fit it into her own personal beliefs about the system. What psychological influence is influencing Jean’s behavior? a. exposure anxiety b. want distortion c. selective needs d. perception e. buyer's remorse (d; moderate; p. 140-141; LO2; AACSB Analytic Skills) 121.

Barbara doesn’t like to make major purchasing decisions, such as choosing which car to purchase. However, she had to replace the old car she owned because it was no longer reliable, so she purchased a new Honda Accord. Although her entire family assisted in the purchase transaction and the salesperson was a close family friend and practically sold the car to her at cost, she is still concerned whether she made the right decision. Barbara is suffering from ________. a. postpurchase behavior b. selective dissonance c. selective distortion d. cognitive dissonance e. selective exposure (d; moderate; p. 141-142; LO3; AACSB Reflective Thinking) According to “The Inside Story,” early adopters ________. a. have many strong social contacts b. are people involved in unusual activities and whose level of activity will disproportionately affect the behaviors of others c. are low media users d. have a simple history of personal and sexual relationships e. are heavily influenced by others in their social circles (b; difficult; p. 147; LO3; AACSB Reflective Thinking) 122.

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123.

In an advertisement for a local carpet retailer a well-know radio personality explained how the company solved his problem of replacing his old carpet. Toward what part of the consumer decision process was this ad aimed? a. increase the chances consumers will pay attention to the commercial b. presenting the information in such as manner so that consumers will not distort it c. need recognition d. meeting the social needs of the target market e. appeal to the athletic segment (c; moderate; p. 150) 124.

Carol is conducting research and asking respondents to name the brands that first come to mind for certain product categories. When she asks Bob this question for computers, he mentions IBM, Dell, Gateway, and Hewlett-Packard. These brands represent Bob’s ________. a. evoked set b. considerate set c. purchase set d. top-of-mind group e. evaluation set (a; moderate; p. 150; LO3; AACSB Analytical Skills) 125.

The Toyota case at the end of the chapter describes how Toyota goes after tuners. What are “tuners”? a. consumers that are tuned in to current trends in their age demographic b. older consumers who “dance to their own tune,” meaning they are not influenced by others when making consumption decisions c. younger consumers who “dance to their own tune,” meaning they are not influenced by others when making consumption decisions d. young car buyers who live to customize their cars e. opinion leaders who have an unusual influence on young car buyers (d; moderate; p. 161; LO4; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Monique and Bob Smith are married with two young children at home and a third away at college. They are also considering adopting another child. Monique is the primary shopper for her family, and every week, she goes shopping to buy products that she and her family need and want.

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126.

Mini-Case Question. In marketing terms, Monique is a ________. a. buyer b. user c. consumer d. customer e. purchaser (c; difficult; p. 131; LO1; AACSB Analytical Skills) 127.

Mini-Case Question. Though Monique doesn’t eat them herself, she purchases snack items for her children and is always looking for more nutritious snacks than mere junk food. In marketing terms, Monique is considered which type of consumer? a. user b. business c. customer d. buyer e. consumer (d; moderate; p. 131; LO1; AACSB Analytical Skills) 128.

Mini-Case Question. According to the U.S. Census, Monique, Bob, and the children are considered to be a ________. a. census track b. family c. household d. reference group e. subculture (b; moderate; p. 135; LO2; AACSB Analytical Skills) 129.

Mini-Case Question. Lex, Bob and Monique’s oldest son who is away at college, lives with three other students in a house off-campus. According to the U.S. Census, they represent a ________. a. census track b. family c. household d. reference group e. subculture (c; moderate; p. 135; LO2; AACSB Analytical Skills)

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130.

Mini-Case Question. After budgeting for the things that he has to pay for, such as his mortgage, car payments, insurance, food, and so forth, Bob figures they have $1,000 left each month to use for whatever way they want. This $1,000 represents the Smith’s ________ income. a. net b. gross c. spendable d. discretionary e. left-over (d; moderate; p. 139; LO2; AACSB Analytical Skills)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

Explain how the Dove Real Beauty campaign used advertising to increase sales of Dove. Answer:

The Dove Real Beauty campaign used magazine advertising because of its ability to stop the audience and make them really look at the models and contemplate the meaning of beauty. They ran one ad during the Super Bowl. The Dove website reinforces the message of the campaign urging women to boost their self-esteem by defying stereotypes. The Dove launch was concentrated in the top 10 cities where they could get the greatest impact. Outdoor and transit ads were plastered on billboards and buses to generate public debate. The campaign generated massive publicity in the mass media. (moderate; p. 130) 132.

What were the two specific ideas from research that drove the Dove Real Beauty campaign? Answer:

Two specific ideas from research that drove the campaign were: (1) 2% of the respondents believed themselves to be beautiful. (2) 68% of the respondents indicated they strongly believed that the media and advertising set an unrealistic standard of beauty most women can't achieve. (difficult; p. 130)

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133.

You have been invited to speak at a small business workshop to explain how consumers make purchase decisions and the basic factors that influence these decisions. Briefly describe what you would discuss being careful not to overload them with too much information because your audience is not very marketingsavvy. Just explain the basic concepts you know about the consumer audience. Answer:

Although students can recite basically the entire chapter to answer this question, the goal is really to assess students’ understanding of the basic concepts outlined in this chapter. Students should discuss the basic consumer decision process: (1) need recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior. Although this process is likely to be followed for high-involvement decisions, some of the steps, specifically information search, may be skipped under low-involvement decisions. Students should also discuss the broad factors that influence consumer decision making: (1) social/cultural influences, (2) psychological influences, and (3) behavioral influences. (moderate; pp. 132-148 and 149) 134.

Compare and contrast the terms family and household. Answer:

According to the U.S. Census, a family consists of two or more people who are related by blood, marriage, or adoption, and live in the same household. A household differs from a family in that it consists of all those who occupy a dwelling whether they are related or not. Therefore, a family is also a household, but a household is not necessarily a family. (moderate; p. 135; LO2; Analytical Skills)

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135. Explain why the Hispanic culture is of great interest to marketers in the United States. Answer: Few cultures are more important to U.S. marketing than the Hispanic culture because it is growing proportionately faster than other ethnic groups. Research shows that Hispanics spend more per shopping trip than non-Hispanics and that store signage and product labels in Spanish promote stronger brand loyalty. Hispanics also believe in using cash rather than credit cards and are willing to spend proportionately more money on their kids and their clothing than their Anglo-Saxon counterparts. Many of them also tend to be loyal to brands they learned to prefer while they were living in Mexico. There are also media differences based on ethnicity, with Hispanic viewers tending to watch commercials in their entirety compared to non-Hispanic viewers. They are more likely to base purchase decisions on advertisements too. (moderate; p. 138; LO2; AACSB Multicultural and Diversity) 136.

Explain the perceptions of consumers that presented a marketing challenge to the Dove brand. Answer:

The marketing challenge was: (1) The brand lacked energy and was simple, white, and gentle. (2) The brand represented submissive femininity. (difficult; p. 129; Analytical Skills) 137.

For years, the U.S. Army has used an advertising campaign stressing that you can “Be all you can be.” What is the rationale behind this campaign? Answer:

It would appear that the army is appealing to its target audience’s secondary, or acquired, needs for self-fulfillment and enriching experiences, that is, selfactualization, which represents the highest level of needs on Maslow’s Hierarchy of Needs. (moderate; p. 141 [Figure 5.2]; LO2; AACSB Reflective Thinking)

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138.

What is the difference between a consumer's need and a want? Answer:

An item a consumer needs is something the consumer thinks is essential or necessary for his life. An item that is a want is something the consumer desires, but is not seen as being essential. (moderate; p. 141; LO2; Reflective Thinking) 139.

Miriam purchased a new car last month, but she continues to look at advertising for cars and notes how many other cars like hers are on the road. When a news article came out the other day indicating problems with the transmission being noted by owners of her make of car, she took that to mean that all types of cars in that class can have those problems, not just hers. She even sought out a Consumer Reports article that pointed out that the car she purchased was rated highly on reliability. What is Miriam experiencing? Answer:

According to the theory of cognitive dissonance, we tend to compensate or justify the discrepancies between what we actually received and what we thought we would receive. People engage in a variety of activities to reduce cognitive dissonance. Most notable, we seek out information that supports our decisions and ignore and distort information that does not. (moderate; pp. 141-142; LO3; Analytical Skills) 140.

Explain the resource dimension of the VALS system and compare the “Survivors” and “Innovators” categories of the VALS system in regard to resources. Answer:

The VALS system categorizes consumers along two major dimensions: (1) resources and (2) innovation. Resources include income, education, selfconfidence, , and energy. The difference between “Survivors” and “Innovators” is that “Survivors” have much lower resources than the “Innovators.” In fact, both are at complete opposite extremes of the resource dimension. (moderate; pp. 145-146; LO2; Analytical Skills)

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141.

Why do retailers put several items, such as candy, batteries, small packages of facial tissue, coolers with individual bottles of soft drinks, and so forth right at the checkout? Answer:

These items are impulse items. Consumers seeing them while they are waiting to check out may realize they need, or at least want, that item, which is the first step of the consumer decision process. People who buy on impulse generally do so without much thought based on some immediate need such as thirst or hunger. Usually there’s not much at stake, so the risk of making a bad decision is small. (easy; p. 150; LO3; Analytical Skills) 142.

Kim who is an avid cyclist decided to buy a new bicycle. She searched the web for information on bikes and visited some bike shops. What is involved in the next step in her decision process if she follows the sequence in the text? Answer:

Kim is ready to evaluate alternatives, the stage where Kim compares various brands and products and reduces the list of options to a manageable number. She needs to choose the attributes that are most important then judge the alternatives accordingly. Advertising about bikes is important because it helps her sort out products on the basis of tangible and intangible features. (moderate; p. 150; LO3; Analytical Skills) 143.

Microsoft is always looking to the future to decide what new products they should introduce, and they’re interested in general characteristics of the early adopter category of consumers. Based on the research in "the Inside Story" what would you tell Microsoft about this category of consumers? Answer:

Based on primary research on the lifestyle and psychological characteristics of early adopters, SRI found that early adopters: (1) Are people involved in unusual activities and whose level of activity will disproportionately affect the behavior of others. (2) Have many weak social contacts (3) Are masters of their own universe (4) Are high media users (5) Have a more complex history of personal and sexual relationships (moderate; p. 147; LO2; Analytical Skills)

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144.

Ron is single and not a very good cook, so he eats a lot of pizza. So much so that he orders it sometimes five nights per week from his favorite pizza place, Pizza Hut. Why is Ron an important customer for Pizza Hut? Answer:

A critical behavior predictor called usage refers to how much of a product category or brand a customer buys. There are two ways to look at usage: usage rates and brand relationship. According to Ron’s usage rate, he would most likely be classified as a heavy user. Heavy users typically buy the most of a product category or a brand’s share of the market. There’s a rule of thumb called the Pareto Rule that says 20 percent of the market typically buys 80 percent of the products. That explains why the heavy user category is so important to marketers and why planners will make special efforts to understand this key customer group. Brand relationship refers to past, present, and future use of the product by nonusers, ex-users, regulars, first-timers, loyal users, and users and switchers from, or to, competitive products. People who buy the same brand repeatedly, like Ron, are the ones who display the most brand loyalty. Heavy users and brand loyal buyers are usually a brand’s most important customers and the ones who are most difficult for competitors to switch away from a brand. Ron seems to fit this classification for Pizza Hut, thus making him a very important customer. (moderate; p. 147; LO2; AACSB Analytical Skills) 145.

Roger has decided to purchase a personal computer for his household’s use, but he doesn’t know much about computers and he really doesn’t want to spend more than $1,000. Describe the process Roger is likely to go through in making the decision regarding which computer to purchase. Answer:

Roger will probably go through all of the stages of the high-involvement decision process. He has already recognized a need for a computer, which is the first step in the process. Next he will likely gather as much information as he can by reading articles, advertising, and talking to friends and colleagues. He will then narrow his search down to a few alternatives that he will evaluate seriously, referred to as the evoked set. From that evaluation, he will make a purchase decision, typically deciding first on the brand and then which outlet from which to buy it. Finally, he will most likely experience postpurchase behavior where he reconsiders and justifies his purchase to himself. He may even experience doubts about his purchase, known as cognitive dissonance. (moderate; pp, 149-150; LO3; AACSB Analytical Skills)

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146.

Jan is leaving her present job in consumer marketing at a major consumer packaged goods manufacturer and will be starting a new job with an industrial marketer. What are just a few of the things Jan should know about the differences between consumer decision making and business decision making? Answer: Many of the influences that affect consumer buying also are reflected in businessto-business marketing. Although some of the consumer factors are relevant in business purchases, there are some differences as well. Some of the things students can discuss include: (1) In organizational buying, many individuals are involved in making the decision, often with a buying committee making the final decision. (2) Although the business buyer may be motivated by both rational and emotional factors, the use of rational and quantitative criteria dominates most decisions. (3) The decision is sometimes made based on a set of specifications to potential suppliers who then bid on the contract; typically the lowest bid wins. (4) The decision may span a considerable time, creating a lag between the initial contact and final decision. On the other hand, once a decision is made, it may be in place for a long time and sometimes supported by a contract. (5) Quality is hugely important and repeat purchases are based on how well the product performs. (6) Personal selling is also important in B2B marketing, so advertising is used to open the door and generate leads for the sales force.

(moderate; pp. 151; LO3; AACSB Analytical Skills)

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147.

The case at the end of the chapter, “Toyota Goes After Tuners,” describes who tuners are and what marketers are doing to attract this group of consumers. Explain what “tuners” are and why you think tuners are so attractive to marketers, even after accounting for their spending power. Answer:

Tuners are young car buyers who live to customize their cars. The trend really began among young Asian Americans, who typically bought inexpensive Asianimport cars and then spent thousands of dollars customizing them. The hobby has spread to other young people, but Japanese brands remain the cars-of-choice among those dedicated to creating a work of art on wheels. Marketers may be interested in these consumers for various reasons. First, brand preferences formed while consumers are young may hold throughout their purchasing lifetime. Second, these tuners may be seen as early adopters and can influence other consumers. Finally, these tuners may be considered a reference group to which other young car purchasers aspire and can influence their choice regarding car brands. Thus, the social influence that they may play on others’ purchases may make them a desirable market segment. (moderate; p. 161; LO4; AACSB Analytical Skills)

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER A recent article in the Wall Street Journal described how the next “Pepsi Generation” likely will be drinking diet cola. Pepsi learned that one-third of teens were diet soda drinkers last year and that teens start drinking diet soft drinks at a very early age. However, they also acknowledged that a substantial portion of young people don’t consider diet sodas cool, particularly men. The chief marketing officer for Pepsi-Cola North America was quoted as saying, “We are treating Diet Pepsi as the flagship brand. . . . It’s a big step for us.” Indeed, this is a major break with the traditional soft-drink marketing in which the sugar-sweetened brand still dominates in market share. However, with concerns of rising obesity and schools cutting back on sugar-sweetened drinks in vending machines, soft-drink manufacturers, like Pepsi, are responding with an increase in marketing of their diet soft drinks. As part of this new change in focus, Diet Pepsi will be marketed as a hip, cool brand for everyone, including teenagers and Baby Boomers. Meanwhile, the article stated that Pepsi is narrowing its sales pitch for regular Pepsi-Cola to “soda drinkers younger than 25, Latinos, African-Americans, and sports fans.”

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148.

Mini-Case Question. By treating the diet soda market as relatively homogenous, what marketing strategy is this known as? Answer:

The strategy is the undifferentiated strategy or market aggregation strategy. (moderate; p. 152; LO4; AACSB Analytical Skills) 149.

Mini-Case Question. What segmentation variables is Pepsi using when it decided to narrow its marketing efforts for regular Pepsi-Cola to “soda drinkers younger than 25, Latinos, African- Americans, and sports fans”? Answer:

Age and ethnicity fall under demographic segmentation, and sports fans represent an interest, which would be psychographic segmentation. (moderate; pp. 152-153; LO4; AACSB Analytical Skills) 150.

Mini-Case Question. It was also noted in the article that a substantial portion of young people don’t consider diet sodas cool, particularly men. What is Pepsi trying to accomplish with their increased effort to reach these consumers? Answer:

Pepsi is trying to change their attitude toward diet sodas. Currently, a substantial portion of young people’s attitudes toward this product are negative, and Pepsi would like to change that attitude. Attitudes are important to advertisers because they influence how consumers evaluate products. (moderate; p. 142; LO4; AACSB Analytical Skills)

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CHAPTER SIX Strategic Research GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

________ compiles information about the product, the product category, and other details of the marketing situation that will impact the development of advertising strategy. a. Advertising research b. Market research c. Consumer research d. Strategic research e. Copy research (b; moderate; p. 165; LO1) 2.

Which of the following is NOT considered a type of research useful in advertising decisions? a. market research b. consumer research c. advertising research d. strategic research e. segmentation research (e; easy; p. 165; LO1) 3.

________ is used to identify people who are in the market for a product in terms of their characteristics, attitudes, interests, and motivations. a. Advertising research b. Market research c. Consumer research d. Strategic research e. Copy research (c; moderate; p. 165; LO1; AACSB Analytic Skills) 4.

________ focuses on all the elements of advertising, including message development research, media planning research, and evaluation, as well as information about competitors’ advertising. a. Advertising research b. Market research c. Consumer research d. Strategic research e. Copy research (a; easy; p. 165; LO1; AACSB Communication)

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________ uncovers critical information that becomes the basis for strategic planning decisions, and in advertising it covers all the factors and steps that lead to the creation of message strategies and media plans. a. Advertising research b. Market research c. Consumer research d. Strategic research e. Copy research (d; moderate; p. 165; LO1; AACSB Communication) 6.

Strategic research uncovers critical information that becomes the basis for strategic planning decisions, and in advertising it covers all the factors and steps that lead to the creation of ________. a. message strategies b. media plans c. research strategies d. a and b e. a, b, and c (d; moderate; p. 165; LO1; AACSB Analytic Skills) 7.

Background research that uses available published information about a topic is called ________. a. market research b. consumer research c. primary research d. secondary research e. government research (d; moderate; pp. 165-166; LO1) 8.

Information that has been collected and published by someone else is known as ________. a. market research b. consumer research c. primary research d. secondary research e. government research (d; moderate; pp. 165-166; LO1; AACSB Analytic Skills) 9.

Government organizations, trade associations, secondary research suppliers, and secondary information on the Internet are all sources of ________ data. a. primary b. secondary c. tertiary d. free e. unregulated (b; moderate; p. 166; LO1; AACSB Reflective Thinking)

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10.

Which of the following statements is false regarding secondary research? a. It is called secondary because it is information that has been collected and published by someone else. b. Many government statistics come from census records on the population’s size, geographic distribution, age, income, occupation, education, and ethnicity. c. Secondary research found on the Internet is not valid research. d. Many industries support trade associations that gather and distribute information of interest to association members. e. Secondary research suppliers gather and organize information around specific topic areas for other interested parties. (c; moderate; pp. 166-167; LO1; AACSB Use of IT) 11.

Information that is collected for the first time from original sources is called ________. a. market research b. consumer research c. primary research d. secondary research e. government research (c; moderate; p. 167; LO1) 12.

Companies do their own tracking and monitoring of their customers’ behavior and they also hire research firms to do which type of research? a. primary b. secondary c. tertiary d. tracking e. monitoring (a; moderate; p. 167; LO1; AACSB Analytic Skills) 13.

Firms that specialize in interviewing, observing, recording, and analyzing the behavior of those who purchase or influence the purchase of a particular good or service are called ________. a. secondary research suppliers b. primary research suppliers c. market research suppliers d. advertising research suppliers e. certified research suppliers (b; moderate; p. 167; LO1)

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14.

________ research provides insight into the underlying reasons for how consumers behave and why, and common research methods include such tools as observation, ethnographic studies, in-depth interviews, and case studies. a. Secondary b. Quantitative c. Qualitative d. Purchase intent analysis e. Consumer insight (c; moderate; pp. 168-169; LO1) 15.

Which of the following statements is true? a. Firms that specialize in interviewing, observing, recording, and analyzing the behavior of those who purchase or influence the purchase of a particular good or service are called secondary research suppliers. b. Information that is collected for the first time from original sources is called primary research. c. Strictly speaking, Simmons Market Research Bureau is a primary data source. d. Strictly speaking, Mediamark Research, Inc. is a primary data source. e. Primary research can be only quantitative. (b; moderate; pp. 167-170; LO1; AACSB Reflective Thinking) 16.

________ research delivers numerical data such as number of users and purchases, their attitudes and knowledge, their exposure to ads, and other marketrelated information, and it also provides information on reactions to advertising and motivation to purchase. a. Secondary b. Quantitative c. Qualitative d. Purchase intent analysis e. Consumer insight (b; moderate; p. 168; LO1; AACSB Analytic Skills) 17.

What are the two primary characteristics of quantitative research? a. large sample sizes and quota sampling b. small sample sizes and rich data c. primary and secondary data d. efficient and effective e. large sample sizes and random sampling (e; moderate; p. 168; LO1)

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18.

Information on reactions to advertising and motivation to purchase is sometimes called ________. a. attitudes b. purchase intent c. awareness d. qualitative e. quantitative (b; moderate; p. 168; LO1) 19.

Which of the following is NOT a way research is used in advertising planning? a. market information b. consumer insight information c. message development d. evaluation research e. segmentation (e; easy; p. 171; LO1; AACSB Communication) 20.

________ is formal research, such as surveys, in-depth interviews, observational methods, focus groups, and all types of primary and secondary data used to develop a marketing plan and, ultimately, provide information for an advertising plan. a. Marketing research b. Advertising research c. Consumer research d. Strategic research e. Copy research (a; moderate; p. 172; LO1; AACSB Analytic Skills) 21.

A subset of marketing research, known as ________ research, is research used to gather information about a particular market—consumers, as well as competitive brands. a. primary b. secondary c. market d. consumer e. competitive (c; moderate; p. 172; LO1) 22.

________ includes an assessment of the brand’s role and performance in the marketplace and investigates how people perceive brand personalities and images. a. Market information b. Brand information c. Consumer insight research d. Media research e. Evaluation research (b; moderate; p. 172; LO1; AACSB Analytic Skills)

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23.

What type of information is used to describe the target audience when using research for consumer insight? a. demographic and psychographic b. quantitative c. qualitative d. demographic e. psychographic (a; moderate; p. 172; LO1) 24.

Identifying the consumer insight is the responsibility of the ________. a. account manager b. advertising manager c. account planner d. vendor e. creative director (c; moderate; p. 173; LO1; AACSB Analytic Skills) 25.

________ research gathers information about all the possible media and marketing communication tools that might be used in a campaign to deliver a message. a. Media b. Market c. Consumer d. Advertising e. Marketing (a; moderate; p. 173; LO1) 26.

Research that helps in evaluating the relative power of creative ideas is ________. a. media research b. copy testing c. content analysis d. semiotic analysis e. concept testing (e; moderate; p. 173; LO1; AACSB Communication) 27.

People on the creative team involve themselves in various types of _________ as they begin the development of an advertisement. a. media research b. message development research c. content analysis d. semiotic analysis e. concept testing (b; moderate; p. 173; LO1; AACSB Communication)

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28.

________ evaluates the relative power of various creative ideas, while ________ helps with media selection. a. Competitive analysis; content analysis b. Semiotic analysis; content analysis c. Concept testing; media research d. Competitive testing; copy testing e. Copy testing; semiotic analysis (c; moderate; p. 173; LO1; AACSB Communication) 29.

_______ helps with the media selection decision. a. Media research b. Brand research c. Media development research d. Evaluation research e. Post-research (a; moderate; p. 173; LO1; AACSB Communication) 30.

_______ is research on an execution in its finished stages but before it appears in media. a. preparation research b. consumer research c. Pretesting evaluation research d. development research e. message development research (c; moderate; p. 173; LO1) 31.

When an agency gets a new client, the first thing the agency team has to do is learn about the ________. a. competition b. advertising messages used in the past c. advertising media used in the past d. brand e. prior agency compensation plan used. (d; moderate; p. 174; LO2) 32.

Which of the following is NOT considered background research? a. competitive analysis b. advertising audit c. content analysis d. mall intercept e. semiotic analysis (d; moderate; p. 174; LO2)

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33.

When conducting a(n) ________, the advertising planner will either formally or informally begin an assignment by collecting every possible piece of advertising and other form of marketing communication by the brand, as well as its competitors’, and other relevant categories that may have lessons for the brand. a. content analysis b. semiotic analysis c. brand experience d. advertising audit e. competitive analysis (d; moderate; p. 174; LO2; AACSB Communication) 34.

A formal and systematic tabulation of competitors’ approaches and strategies, such as slogans, appeals, and images used most often, is known as a(n) ________. a. content analysis b. semiotic analysis c. brand experience d. advertising review e. competitive analysis (a; moderate; p. 174; LO2; AACSB Communication) 35.

A technique used to analyze advertisements is ________, which is a way to take apart the signs and symbols in a message to uncover layers and types of meanings with the objective of finding deeper meanings in the symbolism and meanings, particularly as they relate to different groups of consumers. a. content analysis b. semiotic analysis c. brand experience d. advertising review e. competitive analysis (b; moderate; p. 174; LO2; AACSB Analytical Skills) 36.

Which of the following is a way to contact consumers when conducting advertising research? a. in person b. by telephone c. by mail d. through the Internet e. all of the above (e; easy; p. 175; LO2; AACSB Communication)

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37.

________ is a quantitative method that uses structured interviews to ask large numbers of people the same set of questions, and they can be conducted in person, by phone, by mail, or online. a. In-depth interview b. Survey research c. Focus group d. Observation research e. Ethnographic research (b; moderate; p. 177; LO2; AACSB Communication) 38.

A subset of the population that is representative of the entire population is known as a ________. a. sample b. subsample c. subpopulation d. census e. subcensus (a; moderate; p. 177; LO2; AACSB Analytical Skills) 39.

What is the primary difference between an interview and a survey? a. An interview uses a representative sample, and a survey uses an entire population. b. Surveys use a discussion guide, which outlines the areas to be covered and tends to be very broad. c. Interviews use structured questionnaires. d. Surveys are focused and interviews are open-ended discussions among 8 to 10 people. e. Interviews use unstructured questionnaires. (e; difficult; p. 179; LO2; AACSB Analytical Skills) 40.

A group of 8 to 10 users or even up to 15 potential users of a product who are gathered around a table to have a discussion about some topic, such as the brand, the product category, or advertising is known as a(n) ________. a. focus group b. interview group c. survey group d. population e. ethnographic research sample (a; moderate; p. 179; LO2; AACSB Communication)

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41.

In which type of consumer research is the objective to get participants talking in a conversational format so researchers can observe the dialogue and interactions among the participants? a. survey research b. focus groups c. in-depth interview d. observation research e. ethnographic research (b; moderate; p. 179; LO2; AACSB Communication) 42.

________ focus groups are used in a comfortable setting, usually people’s homes, where the participants have been recruited by the host. a. Snowball b. Ethnographic c. Friendship d. Sample e. Unstructured (c; moderate; p. 179; LO2; AACSB Analytical Skills) 43.

Which type of focus group research is designed to break down barriers and save time in getting to more in-depth responses? a. snowball b. sample c. unstructured d. friendship e. ethnographic (d; moderate; p. 179; LO2; AACSB Communication) 44.

________ takes researchers into natural settings where they record the behavior of consumers using video, audio, and disposable cameras to record consumers’ behavior at home, in stores, or wherever people buy and use their products, but the researcher does not live the lives of the people being studied. a. Focus groups b. Ethnographic research c. Friendship groups d. Observation research e. Survey research (d; moderate; p. 180; LO2; AACSB Analytical Skills) 45.

________ involves the researcher in living the lives of the people being studied. a. Focus group research b. Ethnographic research c. Friendship group research d. Quantitative research e. Survey research (b; moderate; p. 180; LO2; AACSB Analytical Skills)

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46.

Sometimes consumers are asked to record their activities through the use of ________. a. surveys b. focus groups c. diaries d. monitors e. purpose-driven games (c; moderate; p. 179; LO2; AACSB Communication) 47.

What are particularly valuable in media research because they tell media planners exactly what programs and ads the consumers watched? a. surveys b. diaries c. fill-in-the-blanks d. focus groups e. purpose-driven games (b; moderate; p. 181; LO2; AACSB Analytical Skills) 48.

Which of the following is NOT one of the more imaginative qualitative methods researchers are using to get insight about people’s relationships to the brands they buy? a. fill-in-the-blanks b. meaning creation c. purpose-driven games d. story elicitation e. photo sorts (b; difficult; pp. 181-182; LO2; AACSB Analytical Skills) 49.

Which qualitative method is a form of attitude research in which people fill in the blanks in a story or balloons in a cartoon? a. fill-in-the-blanks b. meaning creation c. purpose-driven games d. story elicitation e. photo sorts (a; easy; p. 181; LO2; AACSB Analytical Skills) 50.

Which qualitative method is used by researchers to see how people solve problems and search for information using games to make the research experience more fun and involving for participants? a. fill-in-the-blanks b. meaning creation c. purpose-driven games d. story elicitation e. photo sorts (c; easy; p. 182; LO2; AACSB Analytical Skills)

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51.

Which qualitative method asks consumers to explain the artifacts in their lives— what you see in photos of their homes, as well as the things in their lives that they treasure? a. fill-in-the-blanks b. meaning creation c. purpose-driven games d. story elicitation e. photo sorts (d; difficult; p. 182; LO2) 52.

Which qualitative method uses such ideas as life collages, day mapping, and the construction of instruction books as ways to elicit stories that discuss brands and their role in daily life? a. fill-in-the-blanks b. photo sorts c. metaphors d. artifact creation e. story elicitation (d; moderate; p. 182; LO2; AACSB Analytical Skills) 53.

Which qualitative method uses visuals to elicit consumer thoughts and opinions either by asking them to look at a set of visuals or instructing them to visually record something with a camera, such as a shopping trip, and asking them to explain what they were thinking when looking at the photos taken? a. fill-in-the-blanks b. photo elicitation c. purpose-driven games d. story elicitation e. photo sorts (b; difficult; p. 182; LO2; AACSB Analytical Skills) 54.

Which qualitative method asks consumers to sort through a deck of photos and pick out visuals that represent something, such as typical users of the product, or situations where it might be used? a. fill-in-the-blanks b. photo elicitation c. purpose-driven games d. story elicitation e. photo sorts (e; moderate; p. 182; LO2; AACSB Analytical Skills)

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55.

Which qualitative method attempts to gain insight into how people perceive brands by examining the link between concepts? a. fill-in-the-blanks b. metaphors c. purpose-driven games d. story elicitation e. photo sorts (b; difficult; p. 182; LO2; AACSB Analytical Skills) 56.

________ means that the research actually measures what it says it measures. a. Metaphor b. Reliability c. Validity d. Criteria e. Quantitative (c; moderate; p. 183; LO2; AACSB Analytical Skills) 57.

________ means that you can run the same test again and get the same answer. a. Metaphor b. Reliability c. Validity d. Criteria e. Quantitative (b; moderate; p. 183; LO2; AACSB Analytical Skills) 58.

Which of the following is a way to increase the reliability of the research? a. Select a sample that truly represents its population. b. Use sample sizes larger than 200. c. Test hypotheses. d. Only conduct qualitative research. e. Use focus groups and in-depth interviews heavily. (a; moderate; p. 183; LO2; AACSB Reflective Thinking) 59.

Which of the following is considered an objective of advertising research? a. get information b. collect diaries c. maximize reliability and validity d. conduct qualitative analysis e. conduct quantitative analysis (c; difficult; p. 183; LO2; AACSB Analytical Skills)

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60.

________ methods are more useful for gathering data (e.g., how many do this or believe that?) and ________ methods are better at uncovering reasons and motives (e.g., why do they do or believe?). a. Qualitative; quantitative b. Primary; secondary c. Secondary; primary d. Reliable; valid e. Quantitative; qualitative (e; moderate; p. 183; LO2; AACSB Analytical Skills) 61.

Which method is more useful for gathering data, such as how many do this or believe that? a. quantitative b. qualitative c. primary d. secondary e. global (a; moderate; p. 183; LO2; AACSB Analytical Skills) 62.

Which method is better at uncovering reasons and motives? a. quantitative b. qualitative c. primary d. secondary e. global (b; moderate; p. 183; LO2; AACSB Analytical Skills) 63.

Which of the following is NOT a key challenge facing advertising researchers? a. globalization b. new media technology c. Internet and virtual research d. embedded research e. quantitative research (e; moderate; pp. 183-184; LO3; AACSB Use of IT) 64.

In which key challenge facing advertising researchers is an in-depth understanding of the economic and cultural conditions, government regulations, and communications media of each country more important than ever before? a. globalization b. new media technology c. Internet and virtual research d. embedded research e. insightful analysis (a; easy; p. 183; LO3; AACSB Multicultural and Diversity)

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65.

Which of the following is false regarding key challenges facing advertising researchers? a. The biggest problem with respect to globalization is cross-cultural communication and how to arrive at an intended message without cultural distortions or insensitivities. b. As technology changes in the media unfold, the old research measures will become increasingly invalid. c. New media technology is making it more difficult for marketers to do relationship marketing. d. The emergence of genuine two-way communication opportunities is a factor in new media technology. e. Whenever a call is made, for whatever purpose, that contact provides an opportunity to ask a brand-related question. (c; moderate; pp. 183-184; LO3; AACSB Reflective Thinking) 66.

Which of the following is considered an implication due to the changes in media technology? a. Changes in media technology will alter the meaning and consequences of almost all of our most familiar research constructs. b. Old research methods will still be valid even with changes in media technology. c. New media technologies are resulting in less media fragmentation. d. Genuine two-way communication opportunities are not really materializing from the new media technologies. e. New media technology is closing the door to permission and relationship marketing. (a; moderate; pp. 183-184; LO3; AACSB Use of IT) 67.

________ are opening the door to new ways to conduct permission and relationship marketing. a. Embedded research b. New media technologies c. Insightful analysis d. Content analysis e. Semiotic research (b; moderate; p. 184; LO3; AACSB Use of IT) 68.

In which type of research are research methods that are a part of real purchase and use situations, so that the consumer is a recipient and direct beneficiary of the information? a. embedded research b. virtual research c. insightful analysis d. content analysis e. semiotic research (a; moderate; p. 184; LO3; AACSB Analytical Skills)

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69. ________, both inbound and outbound can also be used as research centers to gain real-time feedback about the brand and its marketing and advertising strategies. a. Insightful analysis b. Virtual research c. Call centers d. Qualitative methods e. Quantitative methods (c; easy; p. 184; LO3; AACSB Analytical Skills) 70.

In which type of embedded research can consumers access reviews from other customers who report their own experience? a. insightful analysis b. virtual research c. call centers d. product reviews e. qualitative method (d; easy; p. 184; LO3; AACSB Analytical Skills)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

Market research uncovers critical information that becomes the basis for strategic planning decisions. (False; moderate; p. 165; LO1; AACSB Analytical Skills) 72.

Secondary research is information that has been collected and published by someone else. (True; easy; pp. 165-167; LO1; AACSB Analytical Skills) 73.

Marketers wanting insight into the underlying reasons for how consumers behave and why should conduct qualitative research. (True; moderate; p. 168; LO1; AACSB Analytical Skills) 75. Qualitative research should be used to draw conclusions. (False; moderate; p. 170; LO1; Analytical Skills) 76. Marketing research is informal research. (False; difficult; p. 172; LO1; Analytical Skills)

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77.

Media planning begins with media research that gathers information about all possible media and marketing communication tools that might be used in a campaign to deliver a message. (True; moderate; p. 173; LO1; AACSB Communication) 78.

The three stages in message development where research is used are preparation research, media research, and concept testing. (False; moderate; p. 174) 79.

Research is also used in development of the message strategy to evaluate the relative power of various creative ideas, which is called copy testing, and the relative effectiveness of various approaches to the sales message, which is called concept testing. (False; moderate; p. 173) 80.

Copy testing is a way to take apart the signs and symbols in a message to uncover layers and types of meanings. (False; difficult; p. 173; LO2; AACSB Communication) 81.

Survey research is a quantitative method that uses structured interviews to ask large numbers of people the same set of questions, and they can be conducted in person, by phone, by mail, or online. (True; easy; p. 177; LO2; AACSB Communication) 82.

Focus groups can be used only in the background research step of the message development process. (False; moderate; p. 179; LO2) 83.

Formal focus groups take place in a comfortable setting, usually people’s homes, where the participants have been recruited by the host. (False; difficult; p. 179; LO2) 84.

Psychographic research involves the researcher in living the lives of the people being studied. (False; moderate; p. 180; LO2) 85. Focus groups have the advantage of revealing what people actually do. (False; easy; p. 180; LO2) 86.

Diaries in which consumers are asked to record their activities are particularly valuable in media research because they tell media planners exactly what programs and ads the consumers watched. (True; easy; p. 181; LO2; AACSB Communication)

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87.

A form of attitude research in which people fill in the blanks in a story or balloons in a cartoon is known as purpose-driven games. (False; moderate; p. 181; LO2; AACSB Communication) 88.

In story elicitation, consumers are asked to explain the artifacts of their lives— what you see in photos in their homes, as well as the things in their lives that they treasure. (True; moderate; p. 182; LO2; AACSB Communication) 89.

In the qualitative research method called photo elicitation, consumers are asked to sort through a deck of photos and pick out visuals that represent something, such as typical users of the product or situations where it might be used. (False; difficult; p. 182; LO2) 90. A metaphor says one thing—a brand, for example—is like something else. (True; easy; p. 182; LO2; AACSB Communication) 91.

Two basic research criteria known as validity and reliability are helpful in determining the appropriate research method to use. (True; difficult; p. 183; LO2; AACSB Analytical Skills) 92. Reliability means that the research actually measures what it says it measures. (False; moderate; p. 183; LO2; AACSB Analytical Skills) 93.

Reliable research means that any differences that are uncovered by the research, such as different attitudes or purchasing patterns, really reflect differences among individuals, groups, or situations. (False; difficult; p. 183; LO2; AACSB Analytical Skills) 94.

Validity means that the research actually measures what it says it measures, and reliability means that you can run the same test again and get the same answer. (True; moderate; p. 183; LO2; AACSB Analytical Skills) 95. Repeatability means that you can run the same test again and get the same answer. (False; moderate; p. 183; LO2) 96.

Three big objectives in advertising research are to test hypotheses, get information, and get insights. (True; difficult; p. 183; LO2) 97. Quantitative research is more useful than qualitative research. (False; difficult; p. 183; LO2; AACSB Reflective Thinking)

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98.

Research challenges facing advertising researchers include globalization, new media technology, Internet and virtual research, embedded research, and insightful analysis. (True; moderate; pp. 183-184; LO3; AACSB Use of IT) 99.

The biggest challenge facing global advertisers is cross-cultural communication and how to arrive at an intended message without cultural distortions or insensitivities. (True; moderate; p. 183; LO3; AACSB Communication) 100.

Changes in media technology are making old research measures increasingly invalid. (True; easy; pp. 183-184; LO3; AACSB Use of IT) 101.

Insightful analysis allows automated testing of concepts, storyboards, and designs in multiple markets without having to develop actual prototypes or multiple sets of storyboards. (False; moderate; p. 184; LO3; AACSB Communication) 102.

Globalization is opening the door to new ways to do permission and relationship marketing. (False; moderate; p. 184; LO3) 103. The Internet can deliver product messages with interactivity. (True; easy; p. 184; LO3; AACSB Use of IT) 104.

In the method known as Insight Analysis, the research methods are embedded directly into real purchase and use situations, so that the consumer is a recipient and direct beneficiary of the information. (False; moderate; p. 184; LO3; AACSB Communication) 105.

The most common Internet approach of embedded research is to use this method for product reviews, where customers enter the web site and select from an array of product categories they would like to know about. (True; moderate; p. 184; LO3; AACSB Use of IT)

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GENERAL CONTENT: ESSAY QUESTIONS 106.

Compare and contrast primary and secondary research and provide examples of sources for each. Answer: Information that is collected for the first time from original sources is called primary research. Companies do their own tracking and monitoring of their customers’ behavior and they also hire research firms to do this research. Firms that specialize in interviewing, observing, recording, and analyzing the behavior of those who purchase or influence the purchase of a particular good or service are called primary research suppliers, such as A. C. Nielsen.

Background research that uses available published information about a topic is called secondary research. It’s called secondary because it is information that has been collected and published by someone else. Many secondary information sources are available to advertisers doing strategic research and include government organizations, trade associations, secondary research suppliers, and secondary information from the Internet. (moderate; pp. 165–168; LO1; Reflective Thinking) 107.

Explain the differences among market research, consumer research, advertising research, IMC research, and strategic research. Answer:

Market research compiles information about the product category and other details of the marketing situation that will impact the development of advertising strategy. Consumer research is used to identify people who are in the market for the product in terms of their characteristics, attitudes, interests, and motivations. Ultimately this information is used to decide who should be the targeted audience for the advertising. In an integrated marketing communication (IMC) plan, the consumer research is enlarged to acquire information about all the relevant stakeholders. Advertising research focuses on all the elements of advertising, including message development research, media planning research, and evaluation, as well as information about competitors’ advertising. IMC research is similar except it is used to assemble information needed in planning the use of a variety of marketing communication tools. Strategic research uncovers critical information that becomes the basis for strategic planning decisions. In advertising it covers all the factors and steps that lead to the creation of message strategies and media plans. (moderate; p. 165; LO1; Reflective Thinking)

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108.

Compare and contrast quantitative and qualitative research, and discuss uses of each. Answer: Qualitative research provides insight into the underlying reasons for how consumers behave and why. Common methods include such tools as observation, ethnographic studies, in-depth interviews, and case studies. Qualitative methods are used early in the process of developing an advertising plan or message strategy for generating insights, as well as questions and hypotheses for additional research. They are also good at confirming hunches, ruling out bad approaches and questionable or confusing ideas, and giving direction to the message strategy. Because qualitative research is typically done with small groups, advertisers are not able to draw conclusions about or project their findings to the larger population. Quantitative research delivers numerical data such as number of users and purchasers, their attitudes and knowledge, their exposure to ads, and other marketrelated information. It also provides information on reactions to advertising and motivation to purchase. Two primary characteristics of quantitative research are (1) large sample sizes and (2) random sampling. The most common quantitative research methods include surveys and studies that track such things as sales and opinions. In contrast to qualitative research, quantitative research is usually designed to either accurately count something, such as sales levels, or to predict something, such as attitudes.

In sum, qualitative research should not be used to draw conclusions, which is the province of quantitative research, but instead to better understand a market and generate hypotheses that we can test with quantitative methods. (moderate; p. 168; LO1; Reflective Thinking)

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109.

Name and describe the five ways research is used in advertising planning. Answer:

The five ways research is used in advertising planning are: (1) Market Information—Marketing research is formal research, such as surveys, in-depth interviews, observational methods, focus groups, and all types of primary and secondary data used to develop a marketing plan, and, ultimately, provide information for an advertising plan. A subset of marketing research, known as market research, is research used to gather information about a particular market—consumers, as well as competitive brands. Market information, then, includes everything a planner can uncover about consumer perceptions of the brand, product category, and competitors’ brands. Brand information includes an assessment of the brand’s role and performance in the marketplace. This research also investigates how people perceive brand personalities and images. (2) Consumer Insight Research—Both the creative team and the media planners need to know as much as they can, in as much depth and detail as possible, about the people they are trying to reach. Demographic and psychographic information is used to describe the target audience. The objective of most consumer research is to puzzle out the key consumer insight that will help move the target audience to respond to the message. Identifying consumer insight is the responsibility of the account planner. (3) Media Research—Media planning begins with media research that gathers information about all the possible media and marketing communication tools that might be used in a campaign to deliver a message. Media researchers then match that information to what is known about the target audience. (4/5) Message Development and Evaluation Research—As planners, account managers, and people on the creative team begin the development of an advertisement, they involve themselves in various types of informal and formal research. They read all the relevant secondary information provided by the client and the planners to become better informed about the brand, the company, the competition, and the product category. Furthermore, as writers and art directors begin working on a specific creative project, they almost always conduct at least some informal research of their own. Research is used in the development of message strategy to evaluate the relative power of various creative ideas, which is called concept testing, and the relative effectiveness of various approaches to the sales message, which is called copy testing. (moderate; pp. 171-173; LO1; Reflective Thinking)

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110.

Discuss the five key challenges facing advertising researchers. Answer:

Advertising researchers face five key challenges: (1) Globalization—In-depth understanding of the economic and cultural conditions, government regulations, and communications media of each country is more important than ever before. The biggest problem is crosscultural communication and how to arrive at an intended message without cultural distortions or insensitivities. (2) New Media Technology—Changes in media technology will alter the meaning and consequences of almost all of our most familiar research constructs. As technology changes in the media unfold, the old research measures will become increasingly invalid. Because of media fragmentation, researchers and planners must strive to develop message strategies that enable media planners to reach consumers most effectively. That includes using multiple product messages in multiple media vehicles. New media technology is also opening the door to new ways to do permission and relationship marketing. Another factor is the emergence of genuine two-way communication opportunities. (3) Internet and Virtual Research—Another aspect of new media is the feasibility of virtual research that gathers real-time information through online media and streaming video. The low cost and quick speed of gathering research data online has made the Internet a popular survey tool with companies. Even in a more traditional one-way communication model, creating effective ads for the new interactive media is a particular challenge. (4) Embedded Research—In this case, the research methods are embedded directly into real purchase and use situations, so that the consumer is a recipient and direct beneficiary of the information. Call centers can also be used as research centers to gain real-time feedback about the brand and its marketing and advertising strategies. For example, whenever a call is made for whatever purpose (either inbound or outbound), that contact provides an opportunity to ask a brand-related question. The most common Internet approach is to use this method for product reviews, where customers enter the web site and select an array of product categories they would like to know about. The opinions of reviewers (i.e., customers who report their own experience) can be accessed with a click. (5) Insightful Analysis—Marketers are inundated with information, so getting information is less of a problem than is making sense of it. The challenge is not information but rather intelligence. The magic in research, then, lies in the interpretation of the findings to uncover unexpected or unrealized insights into consumers, products, and the marketplace situation. (moderate; pp. 183–185; LO3; Reflective Thinking)

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APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

What type of research did Holiday Inn Express conduct to find that the businessman's decision on where to stay hinged on the bathroom/shower experience? a. purpose-driven games b. strategic research c. semiotic research d. competitive analysis e. causal research (b; difficult; pp. 163, 165; LO1) 112.

What did Holiday Inn Express learn about the people who choose their limited service hotel? a. They love getting mints on their pillows at night. b. They are moms with young children. c. They are primarily college students on a road trip. d. They are men who travel two to three nights per week on business. e. They are not picky about the cleanliness of their rooms. (d; moderate; p. 163) 113.

Louis is preparing to develop an advertising campaign for a client. What type of research should he conduct to compile information about the product, the product category, and other details of the marketing situation that will impact the development of the advertising strategy? a. market research b. consumer research c. advertising research d. IMC research e. strategic research (a; moderate; p. 165; LO1; Communication) 114.

Harriet works for a large manufacturer of consumer packaged goods. Her job is to identify people who are in the market for her company’s products in terms of their characteristics, attitudes, interests, and motivations. What type of research does Harriet perform to gather this information? a. market research b. consumer research c. advertising research d. IMC research e. strategic research (b; moderate; p. 165; LO1; Reflective Thinking)

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115.

Every few years, the Association of National Advertisers conducts a study on how national advertisers compensate advertising agencies that plan, develop, and execute their advertising campaigns. If a national advertiser uses this information to determine how it should compensate its advertising agency, what type of research is this? a. primary b. qualitative c. secondary d. organizational e. advertising research (c; moderate; p. 165; LO1; Reflective Thinking) 116.

The Survey of Current Business: Basic Operational Statistics on U.S. Business is an example of ________. a. qualitative research b. primary information c. a trade association report that helps advertisers make better decisions d. a report developed by a secondary research supplier e. a government report that helps advertisers make better decisions (e; difficult; p. 166 [Figure 6.1] ; LO1) 117.

A. C. Nielsen is a large company that conducts research for clients. It also monitors television viewing habits, being the major supplier of program ratings in the television industry. These ratings are used by television networks and stations to determine the price of advertising time during a specific program. What type of research does A. C. Nielsen perform? a. primary b. secondary c. tertiary d. a and b e. a, b, and c (a; moderate; p. 167; LO1; AACSB Communication) 118.

Kraft wanted to understand how consumers decide which brand of cheese to purchase while they are shopping at a grocery store, so they hired a research firm that observed consumers as they made their selection in the store. Which type of research does this represent? a. quantitative b. qualitative c. secondary d. ethnographic e. in-depth research (b; easy; p. 168; LO1; AACSB Reflective Thinking)

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119.

Sam wants to understand consumers’ perceptions of his company’s products, so he conducts a survey to assess their attitudes toward his brands as well as their intention to purchase them. What type of research does this represent? a. quantitative b. qualitative c. secondary d. ethnographic e. in-depth research (a; easy; p. 168; LO1; AACSB Reflective Thinking) 120.

By what characteristics does a report from Mediamark Research, Inc. (MRI) NOT break down the TV-viewing habits of consumers? a. age b. size of household c. age of children d. type of TV program e. religion (e; difficult; pp. 167–168; LO1) 121.

Scott works in the marketing department of a national insurance company. He conducted a focus group interview in which 10 consumers discussed their attitudes toward purchasing long-term disability insurance. Based on this research, he concluded that most people think this insurance is not necessary because they feel that they will always be able to work and would be wasting their money on such expensive insurance. Which of the following statement is true regarding this situation? a. Scott can feel confident that what he learned in this research is representative of the perceptions held by rest of the consumer population that makes up the target market for this product. b. Scott should really conduct one more focus group interview with a different group of consumers before he should draw any conclusions. c. Scott should have conducted survey research first before he conducted the focus group interview. d. Focus groups are a type of qualitative research and should not be used to draw conclusions. e. Focus groups are the only type of qualitative research from which conclusions can be drawn. (d; difficult; p. 179; LO1; AACSB Analytical Skills)

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122.

The advertising that launched General Motors' OnStar GPS system used a Batman theme. By looking at the commercial in terms of signs and symbols it is possible to discover if the obvious and hidden meanings of the message are on strategy. For instance, the "bat beacon" becomes the OnStar for the average person who wants to have the wonderful technology toys Batman had. This is an example of _______ research? a. market b. semiotic c. problem solving d. quantitative e. experimental (b; moderate; p. 174; LO2; AACSB Use of IT) 123.

When V-8, a brand of vegetable juice, wanted to determine if viewers understood the health benefit message they were trying to convey in their television commercial, they conducted research in which consumers were brought to a research center to view a pilot television show in which the V-8 ad they were testing appeared. Several other ads appeared during the 30-minute television program, and after viewing the show, participants were given a survey regarding their attitudes toward all of the ads they had seen. Unbeknown to them, five different groups saw the same program and ads, except the V-8 ad was different for each group. V-8 was trying to determine the relative effectiveness of various approaches to the sales message. What type of research is this? a. secondary b. concept testing c. semiotic research d. copy testing e. content analysis (b; moderate; p. 173; LO1; AACSB Communication) “Lisa” is a person an automobile manufacturer uses to describe its soccer-mom customer. She is a stay-at-home mom, lives in the suburbs, and is active in her children’s activities. She is also educated, with at least an undergraduate college degree and has worked as a professional before devoting herself full time to her family. She wants the ability to transport several people, and she is very concerned about safety. “Lisa” is not a real person, but rather she is a model the automobile manufacturer uses to understand the customer they are trying to reach. What is “Lisa”? a. a persona b. a surrogate c. a scapegoat d. a gatekeeper e. an influencer (a; moderate; p. 176; LO1; AACSB Reflective Thinking) 124.

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125.

Maria was participating in a research study in which she was asked to take pictures with her camera phone while she was shopping. After recording her trip with pictures, she was asked to explain what she was thinking or doing at the time a given photo was taken. Which qualitative research method is this? a. metaphors b. story elicitation c. photo elicitation d. photo sorts e. artifact creation (c; moderate; p. 182; LO1; AACSB Reflective Thinking) 126.

Using _______ in a research study about the Coca-Cola brand, respondents were asked to make a collage of images that capture their feelings about the brand? a. quantitative b. metaphors c. secondary demographic research d. purpose-driven games e. artifact creation (e; moderate; p. 182)

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Mike works in the marketing department of a consumer packaged goods manufacturer. His primary responsibility is the marketing of a new brand of cereal that is targeted to women and includes extra calcium and soy to help women avoid osteoporosis, which is a disease that weakens bones later in life and affects primarily women. Much research was conducted before this product was developed, but more is necessary to develop an advertising campaign. Mike is working with an advertising agency to develop the advertising campaign. 127.

Mini-Case Question. Before the advertising agency created any advertising for this new brand of cereal, people working on the account started reading everything they could find on the product, company, industry, and competition. This is known as ________ research. a. primary b. secondary c. tertiary d. qualitative e. quantitative (b; moderate; p. 165; LO1; AACSB Reflective Thinking)

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128.

Mini-Case Question. The initial research conducted by Mike was used to identify women who are in the market for cereals with these benefits in terms of their characteristics, attitudes, interests, and motivation. What type of research did Mike conduct? a. market research b. consumer research c. advertising research d. IMC research e. strategy research (b; moderate; p. 165) 129.

Mini-Case Question. The advertising agency used research to help develop the message strategy. They conducted in-depth interviews with several women who were representative of the client’s target market and asked them to evaluate the relative power of various creative ideas. This type of research is known as ________. a. market research b. content analysis c. semiotic analysis d. concept testing e. copy testing (d; moderate; p. 173; LO1; AACSB Reflective Thinking) 130.

Mini-Case Question. The advertising agency also analyzed all media that is relevant to the client’s target market. Not surprisingly, they found that the women they wanted to reach with the advertising were heavy readers of health-related magazines, such as Prevention and Health. However, they also found that these women were also heavy readers of shelter magazines, such as Better Homes and Gardens and House Beautiful. Which of the five ways research is used in advertising planning does this represent? a. market information b. consumer insight research c. media research d. message development e. evaluation research (c; easy; p. 173; LO1; AACSB Reflective Thinking)

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APPLICATION QUESTIONS: SHORT-ANSWER 131.

Briefly describe the global challenge facing Toyota's sports utility vehicle, the RAV 4, the kind of research they conducted and the results of the research. Answer:

Toyota needed to find commonalities, or common ground among consumer groups from the target market's different cultures. Toyota conducted qualitative research for the RAV 4 that showed the consumers in all targeted countries had three common desires. They wanted an SUV to have style, safety, and economy. (difficult; p. 170; AACSB Multicultural and Diversity) 132.

Mark owns his own advertising agency and just won a new client’s account. Discuss two sources of secondary research that might be of use to him as he conducts strategic research. Answer:

There are several sources of secondary research that students can discuss: (1) Government Organizations—Many of the statistics provided come from census records on the population’s size, geographic distribution, age, income, occupation, education, and ethnicity. (2) Trade Associations—Many industries support trade associations that gather and distribute information of interest to association members. (3) Secondary Research Suppliers—Gather and organize existing information around specific topic areas or other interested parties. (4) Secondary Information on the Internet—For any given company, you’re bound to find a web site where you can learn about the company’s history and philosophy of doing business, check out its complete product line, and discover who runs the company. (moderate; pp. 166-167; LO1; AACSB Analytical Skills) 133.

Jones and Smith Advertising Agency is in the early process of developing an advertising plan for one of its new clients, a regional soft-drink manufacturer. What type of research would you recommend Jones and Smith conduct at this stage of the process? Answer:

Students can go a number of different directions in answering this question. For example, they can discuss the role of qualitative research, market information, consumer background research, consumer research, and/or development research. (moderate; p. 165; LO1; AACSB Communication)

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134.

Name and describe two web sites for advertising research. Answer:

Five web sites for advertising research are given in the “Practical Tips” box, any two of which can be used to answer this question: (1) BrandEra (www.brandera.com)—Offers information by product category. (2) Market Perceptions (http://marketperceptions.com) represents a research company that specializes in health care research. The site has information about its focus group capabilities. (3) Forrester Research (www.forrester.com) consults on market research into technology industries. (4) Industry Click (www.industryclick.com) is a collection of business publications categorized by industry. (5) Greenbook.org (www.greenbook.org) is a worldwide directory of marketing research focus group suppliers. (6) Census Bureau (www.census.gov)—Contains the U.S. Census database, press releases, a population clock, and clips from its radio broadcasts. (7) Cluetrain (www.cluetrain.com)—A site that publishes new ways to find and share innovative marketing information and ideas. (difficult; p. 167; LO1) 135.

Describe the kind of information an advertiser can gain from Mediamark Research, Inc. (MRI).

Mediamark Research, Inc. is technically a secondary data source. It conducts its own original research, but they publish their findings, which are available to their clients, such as advertisers. These reports are intended primarily for use in media planning; however, because these surveys are so comprehensive, they also can be mined for unique consumer information, which makes them a primary source. Through a program called Golddigger, for example, an MRI subscriber can select a consumer target and ask the computer to find all other products and services and all the media that members of the target segment use. The resulting profile provides a vivid and detailed description of the target as a person, which is what information agency creative teams need to help them envision their audiences. Another example of the kind of information advertisers can gain from MRI are the types of TV programs adults aged 18 to 34 watch, broken down into four market segments based on size of household and age of children, if any. (difficult; p. 167-169; LO1)

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136.

Jeff is employed as an account planner for a major advertising agency. Briefly describe what he does. Answer:

Identifying the consumer insight is the responsibility of the account planner. Both the creative team (which creates messages) and the media planners (who decide how and when to deliver the messages) need to know as much as they can, in as much depth and detail as possible, about the people they are trying to reach. The objective of most consumer research is to puzzle out a key consumer insight that will help move the target audience to respond to the message, and that’s the job of the planner to help determine. (moderate; p. 173; LO1; AACSB Communication) 137.

Agencies have found value in developing personas for clients. Explain what a personal is the reasons for the popularity of personas. Answer:

A persona? It’s a model of a customer’s goals, needs, attitudes, and behaviors distilled from interviewing and observing real people in a market segment. The result guides designers and their clients by replacing dry data about “the customer” with a vivid profile of a person. Well-crafted personas are crisp, accurate, and sound like a description of someone you know. Personas are getting very popular, very quickly with both designers and their clients. Although personas started out as a tool for software designers, they’re now being used to create marketing campaigns, inform sales training, and play roles in Web sites and call center scripts. Companies that use them correctly report compelling results. Personas are here to stay and will be increasingly important for all types of design efforts. (moderate; p. 176; LO2) 138.

Jill is part of the creative team in the advertising agency developing the message for a client’s account. Her job is to conduct tests to evaluate the relative power of various creative ideas. What is this type of test called? Answer:

The test is known as concept testing. (easy; p. 173; LO1; AACSB Communication)

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139.

What is a persona, and how are businesses using them? Answer:

A persona is a model of a customer’s goals, needs, attitudes, and behaviors distilled from interviewing and observing real people in a market segment. The end result guides designers and their clients by replacing dry data about “the customer” with a vivid profile of a person. Personas are now being used to create marketing campaigns, sales training, web sites, products, and even call center scripts. (moderate; p. 176; LO2; AACSB Reflective Thinking) 140.

Josh was told to conduct in-depth interviews with consumers to gain a better understanding of their perceptions and feelings toward his company’s brand of facial tissue. He’s only had experience conducting survey research and is not sure what an in-depth interview actually is. Explain what it is, how it’s different from survey research, and how it’s done. Answer:

An in-depth interview is a qualitative method conducted one-on-one using openended questions that require the respondents to generate their own answers. The primary difference between an interview and a survey is the interview’s use of an unstructured questionnaire. Interviews use a discussion guide, which outlines the areas to be covered during the session; they tend to be much longer than surveys, with questions that are usually very broad. Interviewers probe by responding to the answer with “Why did you say that?” or “Can you explain in more detail?” Interviews are considered qualitative because they typically use smaller sample sizes than surveys and their results are not generalizable and subject to statistical tests. (moderate; p. 179; LO2; AACSB Communication) 141.

Madeleine needs to conduct a focus group interview to get consumers’ reactions to various advertising ideas. However, she does not have much time and she needs more in-depth responses that she normally gets from a normal focus group interview. What would you recommend Madeleine do to meet her needs? Answer:

One alternative to a typical focus group is to use a friendship focus group, which uses a comfortable setting, usually people’s homes, where the participants have been recruited by the host. This approach is designed to break down barriers and save time in getting to more in-depth responses. (easy; p. 179; LO2; AACSB Communication)

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142.

You work in an advertising agency and have been tasked with recommending some imaginative ways to better understand consumers’ relationships to the brands they buy. Briefly describe one of the more imaginative qualitative methods discussed in the chapter. Answer: There are several more imaginative ways qualitative researchers are getting insights about people’s relationships to the brands they buy, and students can discuss any one of the following: (1)

Fill-in-the-Blanks—A form of attitude research in which people fill in the blanks in a story or balloons in a cartoon. Their perceptions will sometimes come to the surface in the words they use to describe the action or situations depicted in the visuals. (2) Purpose-driven Games—Used to see how people solve problems and search for information. Games can make the research experience more fun and involving for the participants. It uncovers problem-solving strategies that may mirror their approach to information searching or the kinds of problems they deal with in certain product situations. (3) Story Elicitation—Consumers are asked to explain the artifacts of their lives. These stories can provide insights into how and why people use or do things. (4) Artifact Creation—Uses such ideas as life collages, day mapping, and the construction of instruction books as ways to elicit stories that discuss brands and their role in daily life. (5) Photo Elicitation—Similar to artifacts, visuals can be used to elicit consumer thoughts and opinions. Sometimes consumers are asked to look at a set of visuals or they are instructed to visually record something with a camera, such as a shopping trip. Later, in reviewing the visuals, they are asked what the photo brings to mind or to explain what they were thinking or doing at the time. (6) Photo Sorts—Consumers are asked to sort through a deck of photos and pick out visuals that represent something, such as typical users of the product or situations where it might be used. (7) Metaphors—Can enrich the language consumers use to talk about brands. A metaphor says one thing—a brand, for example—is like something else. The insight into how people perceive brands through such connections comes from exploring the link between the two concepts. (moderate; pp. 181-182; LO2; AACSB Reflective Thinking

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143.

Cover Girl is a brand of cosmetics that can be purchased in major discount stores, drug stores, and grocery stores. One of their largest target markets is college-aged women, and they wanted to get a first-hand understanding of how this market purchases and uses cosmetics on a daily basis. What type of research would be best at getting at this level of understanding? Answer:

Several qualitative research methods, such as focus group interviews, in-depth interviews, and observation research could provide this insight. However, ethnographic research, which involves the researcher in living the lives of the people being studied, might give them even better insight. Perhaps Cover Girl can have a researcher become a college student living in a dormitory, sorority, or apartment with other college women to study the meanings, language, interaction, and behavior of the target market. This method is particularly good at deriving a picture of a day in the life of a typical consumer. (moderate; p. 180; LO2) 144.

You are conducting research and want to make sure that it adheres to the “scientific method.” Discuss the two basic research criteria you need to be concerned about. Answer:

The two basic research criteria are validity and reliability. Validity means that the research actually measures what it says it measures. Any differences that are uncovered by the research really reflect differences among individuals, groups, or situations. Reliability means that you can run the same test again and get the same answer. Selecting a sample that truly represents its population increases reliability. Poorly worded questions and talking to the wrong people can hurt the validity of surveys and focus groups, for example. (moderate; p. 183; LO2; AACSB Reflective Thinking)

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145.

How is new media technology challenging advertising researchers? Answer: (1)

Changes in media technology will alter the meaning and consequences of almost all of our most familiar research constructs, such as involvement, brand equity, attitude toward the ad, and so forth. As technology changes in the media unfold, the old research measures will become increasingly invalid. (2) Media fragmentation—Researchers and planners must strive to develop message strategies that enable media planners to reach consumers most effectively. That includes using multiple product messages in multiple media vehicles. (3) Permission and Relationship Marketing—New media technology is also opening the door to new ways to do both. (4) Genuine Two-way Communication Opportunities—As consumers take charge of more of their exposure opportunities through new media, researchers will have to design messages to take advantage of these new opportunities. (moderate; pp. 183-184; LO3; AACSB Use of IT) 146.

Evaluate the effectiveness of the Holiday Inn Express Showerhead campaign. Answer:

The Holiday Inn Express Showerhead campaign won a Gold Effie in the Travel/Tourism/Destination category and was a 2006 Grand EFFIE Finalist. Proof of the campaign’s effectiveness is evaluated by looking at the two objectives established before the campaign ran. Follow-up studies showed that the brand image statement “have showers with good water pressure” improved significantly in the minds of the target audience. The second objective, to increase occupancy, was also achieved: Nine months after the campaign launch, occupancy rose a record-breaking 75 percent, up 1.5 points from the previous year. As a bonus, consumer demand resulted in the sale of more than 4,500 showerheads that guests bought for their personal homes. Of course, these serve as a continual reminder of the Holiday Inn Express experience. (moderate; p. 185; AACSB Communication)

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APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Kraft markets several consumer packaged goods products as well as appliances, such as coffeemakers, and wants to get a better understanding of its target market and how competing products are advertised. Their agency of record has conducted extensive research for them as well as purchased information from research suppliers. They are also conducting background research as well as using some imaginative qualitative methods to better understand Kraft’s target market. 147.

Mini-Case Question. Name and describe some of the primary and secondary research suppliers that Kraft and its agencies might have purchased information from. Answer:

A. C. Nielsen, Simmons Market Research Bureau (SMRB), and Mediamark Research, Inc (MRI) were discussed in this chapter. A. C. Nielsen will conduct primary research, but it is lso a secondary research supplier (e.g., television ratings). SMRB and MRI survey large samples of American consumers (approximately 30,000 for each survey) and ask questions about the consumption, possession, or use of a wide range of products, services, and media. (moderate; pp. 167-169; LO1) 148.

Mini-Case Question. One research project had the objective of understanding competitors’ advertisements. Name and describe the purpose of this type of background research. Answer:

The advertising audit might include only informal summaries of the slogans, appeals, and images used most often, or they might include a more formal and systematic tabulation of competitors’ approaches and strategies called a content analysis. By disclosing competitors’ strategies and tactics, analysis of the content of competitive advertisements provides clues to how competitors are thinking and suggests ways to develop new and more effective campaigns. (moderate; p. 174; LO2; AACSB Communication)

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149.

Mini-Case Question. If Kraft wants to understand the deeper meanings consumers derive from their competitors’ advertising, what type of research do you suggest and why? Answer:

Semiotic analysis is a way to take apart the signs and symbols in a message to uncover layers and types of meanings. The objective is to find deeper meanings in the symbolism and meanings, particularly as they relate to different groups of consumers. Its focus is on determining the meanings, even if they are not obvious or highly symbolic, that might relate to consumer motivations. (moderate; p. 174; LO1) 150.

Mini-Case Question. One research study used the Zaltman Metaphor Elicitation Technique (ZMET) for the Kraft boxed macaroni and cheese product. Kraft learned that their brand of boxed macaroni and cheese generated feelings of fun and love, not just feelings of nutrition and fulfillment. Explain how Kraft, using this technique, uncovered this information. Answer:

The ZMET uses metaphors and visual images to uncover patterns in people’s thinking. Respondents could have been asked to collect pictures that captured their feelings about Kraft’s product from magazines, catalogs, or other printed materials. Then they discussed the images in personal interviews. Finally, participants could have been asked to create a summary image, such as a digital image, of their most important images and recorded a statement that explained its meaning. (difficult; p. 182; LO2)

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GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

________ is the process of determining objectives, deciding upon strategies, and implementing the tactics. a. Marketing planning b. Marketing research c. Strategic research d. Strategic planning e. Advertising planning (d; moderate; p. 192-193; LO1; AACSB Analytic Skills) 2.

________ are what you want to accomplish with a strategic plan. a. Strategies b. Objectives c. Tactics d. Motives e. Ends (b; easy; pp. 192-193; LO1; AACSB Analytic Skills) 3.

________ determine how to accomplish objectives outlined in a strategic plan. a. Strategies b. Objectives c. Tactics d. Motives e. Ends (a; easy; p. 193; LO1; AACSB Analytic Skills) 4.

________ make the strategic plan come to life. a. Strategies b. Objectives c. Tactics d. Motives e. Ends (c; moderate; p. 193; LO1; AACSB Analytic Skills

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Strategic planning is a three-tiered process that starts with the ________. a. marketing plan b. initial investment c. business plan d. advertising plan e. goal formulation (c; moderate; p. 193; LO1; AACSB Analytic Skills) 6.

Which concept is a measurement that shows whether, in general, the costs of conducting the business-- the investment-- are more than matched by the revenue produced in return. a. marketing concept b. customer concept c. integrated marketing communications (IMC) d. integrated marketing (IM) e. return-on-investment (ROI) (e; moderate; p. 195; LO1; AACSB Analytic Skills) 7.

For most organizations, strategic planning starts by ________. a. formulating a business mission statement b. identifying the target market c. determining the required return-on-investment d. conducting an internal and external environment analysis e. identifying the strategic business unit (SBU) (a; moderate; p. 195, Figure 7.2; LO1; AACSB Analytic Skills) 8.

The ________ plan parallels the business strategic plan and contains many of the same steps. a. advertising b. marketing c. strategic business unit d. tactical e. semi-annual (b; moderate; p. 195; LO1; AACSB Analytic Skills) 9.

A(n) ________ assesses the external and internal environments that affect the marketing operations. a. market situation analysis b. point-in-time analysis c. internal/external analysis d. mission statement e. action plan (a; easy; p. 195; LO1; AACSB Analytic Skills)

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10.

Which analysis in the marketing planning process looks at the company’s history, products, and brands, as well as the competitive environment, consumer trends, and other marketplace trends that affect the product category? a. market situation analysis b. point-in-time analysis c. internal/external analysis d. mission statement analysis e. action plan analysis (a; easy; p. 195-196; LO1; AACSB Analytic Skills) 11.

The percentage of the category purchases that are made by the brand’s customers is known as ________. a. sales levels b. return-on-investment c. share of market d. share of voice e. category share (c; easy; p. 196; LO1; AACSB Analytic Skills) 12.

What is the most important part of the marketing plan for advertising managers? a. marketing objectives b. threats and opportunities c. marketing mix strategy d. evaluation and control e. situation analysis (c; moderate; p. 196; LO1; AACSB Reflective Thinking) 13.

A(n) ________ plan is more tightly focused on solving a particular marketing communication problem than an annual advertising or IMC plan . Typically it includes a variety of messages carried in different media and is sometimes targeted to different audiences. a. business b. marketing c. communications d. campaign e. strategic business unit (d; moderate; p. 197; LO2; AACSB Communication) 14.

In which section of a typical advertising plan are media objectives, media vehicle selection and budget allocations, and media scheduling stated? a. situation analysis b. key strategic decisions c. media strategy d. message strategy e. campaign management (c; easy; p. 197; LO2; AACSB Communication)

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15.

In which section of a typical advertising plan are the advertising objectives, the target audience, the brand position specified? a. situation analysis b. key strategic decisions c. media strategy d. message strategy e. campaign management (b; easy; p. 197; LO2; AACSB Communication) 16.

In which section of a typical advertising plan are key consumer insights, selling premise, the big idea, and executions detailed? a. situation analysis b. key strategic decisions c. media strategy d. message strategy e. campaign management (d; easy; p. 197; LO2; AACSB Communication) 17.

In a SWOT analysis, strengths and weaknesses are ________, and the opportunities and threats are ________. a. primary; secondary b. internal; external c. secondary; primary d. external; internal e. long-term; short-term (b; moderate; pp. 198-199; LO2; AACSB Analytical Skills) 18.

In a SWOT analysis, a(n) ________ is an area in which the company could develop an advantage over its competition. a. strength b. weakness c. opportunity d. threat e. leverage (c; moderate; p. 199; LO2; AACSB Analytical Skills) 19.

In a SWOT analysis, a(n) ________ of a business are its positive traits, conditions, and good situations. a. strength b. weakness c. opportunity d. threat e. leverage (a; moderate; p. 199; LO2; AACSB Analytical Skills)

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20.

In a SWOT analysis, a(n) ________ is a trend or development in the environment that will erode business unless the company takes action. a. strength b. weakness c. opportunity d. threat e. leverage (d; moderate; p. 199; LO2; AACSB Analytical Skills) 21.

In a SWOT analysis, a(n) ________ of a business is a trait, condition, or situation that is perceived as negative. a. strength b. weakness c. opportunity d. threat e. leverage (b; moderate; p. 199; LO2; AACSB Analytical Skills) 22.

What kind of problems can advertising solve? a. product b. price c. perception d. availability e. all of the above (c; moderate; p. 199; LO2; AACSB Analytical Skills) 23.

Which advertising and IMC strategy or strategies are commonly used to affect perception? a. information b. attention and awareness c. emotions d. action e. image and symbols (b; difficult; p. 201 [Figure 7.4]; LO2; AACSB Analytical Skills) 24.

Which of the following is NOT a requirement for a measurable objective? a. a specific effect that can be measured b. a time frame c. a baseline d. percentage change e. a hypothesis (e; moderate; p. 202; LO2; AACSB Analytical Skills)

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25.

Which of the following is NOT a requirement for a measurable objective? a. a specific effect that can be measured b. a behavioral component c. a time frame d. a baseline e. percentage change (b; moderate; p. 202; LO2; AACSB Analytical Skills) 26.

Determining what place a product should occupy in a given market is called ________. a. benchmarking b. targeting c. segmenting d. positioning e. competitive advantage (d; moderate; p. 202; LO2; AACSB Analytical Skills) 27.

In which marketing process is the objective to establish a location in the consumer’s mind based on what the product offers and how that compares with the competition? a. benchmarking b. targeting c. segmenting d. positioning e. competitive advantage (d; moderate; p. 202; LO2; AACSB Analytical Skills) 28.

In which type of analysis do you make a chart of your products and competitors’ products, list each product’s relevant features, evaluate how well the product and the competitors’ products perform on that feature, and then evaluate how important each feature is to the target audience? a. situation analysis b. positioning analysis c. feature analysis d. differential analysis e. market situation analysis (c; moderate; p. 204; LO2; AACSB Analytical Skills) 29.

________ lies where the product has a strong feature in an area that is important to the target and the competition is weaker. a. Position b. Competitive advantage c. Differentiation d. Brand position e. Brand equity (b; moderate; p. 204; LO2; AACSB Analytical Skills)

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30.

Which strategy is designed to create product differences that distinguish the company’s product from all others in the eyes of consumers? a. product differentiation b. competitive advantage c. feature analysis d. benchmarking e. objective-and-task method (a; moderate; p. 205; LO2; AACSB Analytical Skills) 31.

Products that really are the same, such as milk, unleaded gas, and over-thecounter drugs, are referred to as ________ products. a. generic b. differentiated c. parity d. unpositioned e. positioned (c; moderate; p. 205; LO2; AACSB Analytical Skills) 32.

A location in a consumer’s mind where the product or brand is placed relative to its competitors on the basis of the key factors the consumer uses to make a decision is known as a ________. a. position b. differential advantage c. competitive advantage d. brand e. point (a; moderate; p. 205; LO2; AACSB Analytical Skills) 33.

What do planners use to compare positions of competitors? a. brand plot b. situation plot c. differential map d. perceptual map e. scree plot (d; moderate; p. 205; LO2; AACSB Analytical Skills) 34.

Advertising shapes the position of a brand, but what anchors it in the target audience’s mind? a. personal experiences b. price c. distribution d. perceptions e. other marketing communication tools (a; difficult; p. 206; LO2; AACSB Communication)

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35.

Which of the following is NOT a common advertising budgeting method? a. historical method b. objective-task method c. consumer insight method d. percentage-of-sales method e. all you can afford (c; moderate; pp. 209-210; LO2; AACSB Communication) 36.

Which advertising budgeting method may simply be based on last year’s budget, with a percentage increase for inflation or some other marketplace factor? a. historical method b. objective-task method c. competitive budgets d. percentage-of-sales method e. all you can afford (a; moderate; p. 209; LO2; AACSB Communication) 37.

Which advertising budgeting method develops the budget from the ground up so that objectives are the starting point? a. historical method b. objective-task method c. competitive budgets d. percentage-of-sales method e. all you can afford (b; easy; p. 209; LO2; AACSB Communication) 38.

Which advertising budgeting method compares the total sales with the total advertising budget during the previous year or the average of several years to compute a percentage? a. historical method b. objective-task method c. competitive budgets d. percentage-of-sales method e. all you can afford (d; easy; p. 210; LO2; AACSB Communication) 39.

Which advertising budgeting method uses competitors’ budgets as benchmarks and relates the amount invested in advertising to the product’s share of market? a. historical method b. benchmarking method c. competitive budgets d. percentage-of-sales method e. comparative budgets (c; moderate; p. 210; LO2; AACSB Communication)

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40.

What concept represents the advertiser’s media presence? a. share of advertising voice b. share of mind c. market share d. competitive share e. percent of sales (a; moderate; p. 210; LO2; AACSB Communication) 41.

Typically, companies using which of the following advertising budgeting methods don’t value advertising as a strategic imperative? a. historical method b. objective-task method c. competitive budgets d. percentage-of-sales method e. all you can afford (e; moderate; p. 210; LO2; AACSB Communication) 42.

Which step of the advertising plan details the process by which the effectiveness of the campaign is determined? a. situation analysis b. key strategic decisions c. media strategy d. message strategy e. campaign management (e; easy; p. 210; LO2; AACSB Communication) 43.

Which of the following element(s) are at the heart of an advertising plan? a. audience insight, message, medium b. product strategy and planning c. pricing strategy d. distribution decisions and knowing the consumer e. problem solving and understanding markets (a; moderate; p. 210; LO3; AACSB Communication) 44.

________ is the research-and-analysis process used to gain knowledge and understanding of the consumer, understanding that is expressed as a key consumer insight into how people relate to a brand or product. a. Account planning b. Advertising planning c. Consumer planning d. Message planning e. Media planning (a; moderate; p. 211; LO3; AACSB Communication)

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45.

Who in an advertising agency uses the research-and-analysis process to research a brand and its customer relationships in order to devise advertising message strategies that are effective in addressing consumer needs and wants? a. account manager b. account planner c. media director d. creative director e. research director (b; moderate; p. 211; LO3; AACSB Communication) Who in an advertising agency is often described as “speaking for the consumer” or “speaking with the voice of the consumer”? a. account manager b. account planner c. media director d. creative director e. research director (b; moderate; p. 211; LO3; AACSB Communication) 46.

47.

Which of the following is NOT considered a task performed by an account planner? a. Understand the meaning of the brand. b. Articulate communication strategies. c. Evaluate the effectiveness of the communication in terms of how the target reacts to it. d. Prepare creative briefs based on an understanding of the consumer and the brand. e. Decide the pricing strategy of the brand. (e; moderate; p. 211; LO3; AACSB Communication) 48.

Which of the following is NOT considered a task performed by an account planner? a. Research the brand. b. Devise advertising message strategies. c. Develop communication strategies. d. Uses a disciplined system to gain consumer insight. e. pricing strategy planning (e; difficult; p. 211; AACSB Communication) 49.

What is at the basis of all account planning? a. consumer research b. pricing plans c. message strategies d. product management e. distribution management (a; moderate; p. 210; LO3)

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50.

Who in an advertising agency has been compared to a social anthropologist because he or she is in touch with cultural and social trends and understands how they take on relevance in people’s lives? a. account manager b. account planner c. media director d. creative director e. research director (b; moderate; p. 212; LO3; AACSB Multicultural and Diversity) 51.

What is the fuel that fires the ideas for an account planner? a. consumer insight b. increasing trends c. critical thinking d. creative thinking e. creative brief (a; difficult; p. 212; LO3; AACSB Analytical Skills) 52.

What is the greatest challenge for an account planner that has been described as “peering into nooks and crannies without losing sight of the big picture in order to identify a key insight that can transform a client’s business”? a. consumer insight b. critical thinking c. creative thinking d. insight mining e. insight analysis (d; difficult; p. 212; LO3; AACSB Analytical Skills) 53.

Which of the following is NOT considered an important dimension that account planners seek to understand in planning brand strategies? a. the brand relationship b. perceptions c. media usage d. the promise e. the point of differentiation (c; difficult; p. 214; LO3; AACSB Communication) 54.

The outcome of strategic research usually reaches agency creative departments in the form of a strategy document called a ________. a. communication brief b. research brief c. strategy brief d. message brief e. competitive brief (a; moderate; p. 214; LO3; AACSB Communication)

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55.

The outcome of strategic research usually reaches agency creative departments in the form of a strategy document called a ________. a. creative brief b. research brief c. strategy brief d. message brief e. competitive brief (a; moderate; p. 214; LO3; AACSB Communication) 56.

Which document explains the consumer insight and summarizes the strategy decisions? a. creative brief b. research brief c. strategy brief d. message brief e. competitive brief (a; moderate; p. 214; LO3; AACSB Communication) 57.

Which of the following is NOT included in a communication brief? a. proposition or selling idea b. problem c. target audience d. brand imperatives e. objectives of the sales force (e; easy; pp. 214-215; LO3; AACSB Communication) 58.

Which element of the communication brief details the brand’s essence, personality, and image? a. communication objectives b. problem c. target audience d. brand imperatives e. proposition or selling idea (d; moderate; pp. 214-215; LO3; AACSB Communication) 59.

Which element of the communication brief states the single-minded thought that the communication will bring to life in a provocative way? a. communication objectives b. problem c. creative direction d. brand imperatives e. proposition or selling idea (e; moderate; pp. 214-215; LO3; AACSB Communication)

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60.

Which element of the communication brief provides the reason to believe the proposition? a. brand position b. support c. creative direction d. brand imperatives e. proposition or selling idea (b; moderate; pp. 214-215; LO3; AACSB Communication) 61.

What is the difference between an advertising plan and an IMC plan? a. the time frame of the plan b. the amount of research conducted to develop the plan c. the scope of the plan and the variety of marketing communication areas involved in the effort d. the formality of the plan e. the message (c; moderate; p. 215; LO4; AACSB Communication) 62.

Which of the following does NOT represent an area where an IMC plan is different from an advertising plan? a. stakeholders b. time frame c. contact points d. objectives e. internal marketing (b; moderate; p. 215; LO4; AACSB Communication) 63.

________ refers to any group of people who have a stake in the success of a company or a brand. a. Shareholder b. Stakeholder c. Contact point d. Target group e. Market segment (b; moderate; p. 215; LO4; AACSB Communication) 64.

Support from employees for marketing, advertising, and marketing communication programs is managed through an activity called ________. a. internal public relations b. internal relations c. internal marketing d. internal contact points e. internal objectives (c; moderate; p. 215; LO4; AACSB Communication)

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65.

Employees, customers, shareholders, and elected officials are all examples of ________. a. contact points b. the internal audience c. the audience d. stakeholders e. interested parties (d; moderate; p. 215; LO4) 66.

________ are all the ways and places where a person can come into contact with a brand; all the points where a message about the brand is delivered. a. Stakeholders b. Contact points c. IMC points d. Contact levels e. Internal points (b; moderate; p. 215; LO4; AACSB Communication) 67.

Contact points, which are all the ways and places where a person can come into contact with a brand or all the points where a message about the brand is delivered, are also called ________. a. internal points b. critical points c. stake points d. objective points e. touch points (e; moderate; p. 215; LO4; AACSB Communication) 68.

Increase sales, attract attention at selection point, deliver product information, or create brand reminder are typical objectives for which marketing communication area? a. public relations b. direct marketing c. packaging d. specialties e. mass media (c; moderate; p. 216 [Table 7.4]; LO4; AACSB Communication) 69.

Which of the following is NOT a typical objective for public relations? a. encourage repeat purchase b. announce news c. affect attitudes and opinions d. maximize credibility and likeability e. create and improve stakeholder relationships (a; moderate; p. 216 [Table 7.4]; LO4; AACSB Communication)

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70.

Which of the following is a typical objective of consumer sales promotion? a. announce news b. build industry acceptance c. push through the channel d. create pull through the channel e. create brand experience (d; moderate; p. 216 [Table 7.4]; LO4; AACSB Communication)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

Market planning is the process of determining objectives, deciding on strategies, and implementing the tactics to occur within a specified time frame. (False; moderate; p. 192; LO1) 72. Marketing planning occurs subsequent to business planning. (True; moderate; p. 193; LO1) 73.

A business plan may cover a specific division of the company or a strategic business unit, such as a line of products or all the offerings under a single brand name. (True; moderate; p. 195; LO1) 74.

The business planning process starts with a business mission statement that is unique, focused, and differentiating, one that supports the broad goals and policies of the business unit. (True; easy; p. 195; LO1) 75.

A market situation analysis assesses the external and internal environments that affect the marketing operations. (True; moderate; p. 195; LO1) 76. The objectives at the marketing level tend to be focused on return-on-investment. (False; moderate; p. 195; LO1) 77.

For advertising managers, the most important part of the marketing plan is the marketing mix strategy. (True; moderate; p. 196; LO1) 78.

A typical advertising or IMC plan includes a situation analysis, key strategic decisions, media strategy, message strategy, other tools (in an IMC plan), and campaign management. (True; moderate; p. 197; LO2; AACSB Communication)

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79.

The situation analysis of a typical advertising or IMC plan includes background research, a SWOT analysis, and key advertising problems to be solved. (True; moderate; p. 197; LO2; AACSB Communication) 80.

Key strategic decisions in a typical advertising plan include media objectives, media vehicle selection and budget allocation, media scheduling, key consumer insight, and the selling premise. (False; moderate; p. 197; LO2; AACSB Communication) 81.

In strategic planning the idea is to leverage the strengths and opportunities and to ignore or avoid the weaknesses and threats. (False; moderate; p. 199; LO2; AACSB Communication) 82.

Analysis of SWOTs means finding ways to address the weaknesses and threats and leverage the strengths and opportunities. (True; moderate; p. 199) 83.

A strength is an area in which the company could develop an advantage over its competition. (False; difficult; p. 199; LO2; AACSB Communication) 84.

Advertising planners must analyze the market situation for any communication problems that affect the successful marketing of a product, as well as opportunities that advertising can create or exploit. (True; easy; p. 199; LO2; AACSB Communication) 85.

Advertising can solve only message-related problems such as image, attitude, perception, and knowledge or information. (True; moderate; p. 199; LO2; AACSB Communication) 86.

Advertising can affect the way consumers perceive price, availability, and quality, but it cannot solve problems related to the price of the product, availability, or quality. (True; easy; p. 199; LO2; AACSB Communication) 87. For advertising to be truly effective, it must focus on only one effect at a time. (False; moderate; p. 202; LO2; AACSB Communication) 88.

The advertiser’s basic assumption is that advertising works if it creates an impression, influences people to respond, and separates the brand from the competition. (True; moderate; p. 202; LO2; AACSB Communication) 89. Benchmarked means using a comparable effort to predict a logical goal. (True; moderate; p. 202; LO2; AACSB Analytical Skills)

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90.

The first step in crafting a position is to identify the importance and performance of your brand to determine competitive advantage. (False; moderate; p. 204; LO2; AACSB Analytical Skills) 91.

A product must be differentiated on tangible differences for it to create longlasting product differentiation. (False; difficult; p. 205; LO2; AACSB Communication) 92.

A position is a location in a consumer’s mind where the product or brand is placed relative to its competitors on the basis of the key factors the consumer uses to make a decision. (True; moderate; p. 205; LO2; AACSB Reflective Thinking) 93. Positioning represents one of advertising’s most critical tasks. (True; moderate; p. 206; LO3; AACSB Communication) 94.

The historical method of advertising budgeting compares the total sales with the total advertising budget during the previous year or the average of several years to compute a percentage. (False; moderate; pp. 209-210; LO3; AACSB Analytical Skills) 95.

Companies using the all you can afford method of advertising budgeting do not value advertising as a strategic imperative. (True; moderate; p. 210; LO3; AACSB Communication) An advertiser’s “share of voice” is determined by comparing the amount spent on advertising to the advertiser’s sales. (False; moderate; p. 210; LO2; AACSB Communication 96.

97.

The outcome of strategic research usually reaches agency creative departments in the form of a strategy document called a message brief. (False; moderate; p. 214; LO3; AACSB Analytical Skills) 99.

Under the brand position section of a communication brief, the brand essence, brand personality, and image are described. (False; difficult; p. 214; LO3; AACSB Communication) 100.

The proposition or selling idea component of a communication brief describes the single thought that the communication will bring to life in a provocative way. (True; difficult; p. 215; LO3; AACSB Communication)

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101.

Employees, investors, government bodies, and business partners are examples of corporate level stakeholders. (True; moderate; p. 216 [Table 7.3]; LO4) 102.

Synergistic points are all the ways and places where a person can come into contact with a brand. (False; moderate; p. 215) 103.

Typical objectives for public relations include announce news, affect attitudes and opinions, maximize credibility and likeability, and create and improve stakeholder relationships. (True; moderate; p. 216 [Table 7.4]; LO4; AACSB Communication) 104.The account planner is the voice of the consumer. (True; moderate; p. 211; LO3) 105.

Typical objectives for point-of-purchase displays are to increase immediate sales, attraction attention at the decision point, create interest, stimulate urgency, and encourage trial and impulse purchasing. (True; moderate; p. 216 [Table 7.4]; LO4; AACSB Communication)

GENERAL CONTENT: ESSAY QUESTIONS 106.

Compare and contrast a business plan, a marketing plan, and an advertising plan. Answer: Strategic planning is a three-tiered process that starts with the business plan, then moves to functional areas of the company such as marketing where a marketing plan is developed that outlines objectives, strategies, and tactics for all areas of the marketing mix. Both the business plan and the marketing plan contribute direction to specific plans for specialist areas, such as advertising and other areas of marketing communication.

A business plan may cover a specific division of the company or a strategic business unit. The objectives for planning at this level tend to focus on maximizing profit and ROI. To a large extent, the marketing plan parallels the business strategic plan and contains many of the same components. Finally, the advertising planning operates with the same concern for objectives, strategies, and tactics that are outlined for business and marketing plans. (difficult; pp. 193-197; LO1; AACSB Reflective Thinking)

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107.

Describe the components and purpose of a SWOT analysis. Answer:

The primary tool used to make sense of information is a SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. The strengths and weakness are internally focused and the opportunities and threats lie in the external marketing environment. In strategic planning, the idea is to leverage the strengths and opportunities and address the weaknesses and threats, which is how the key problems and opportunities are identified. More specifically, the components of the SWOT analysis are: (1) Strengths—A business’s positive traits, conditions, and good situations. (2) Weaknesses—A business’s traits, conditions, and situations that are perceived as negatives. (3) Opportunity—An area in which the company could develop an advantage over its competition. (4) Threat—A trend or development in the environment that will erode business unless the company takes action. (easy; p. 198-199; LO2; AACSB Analytical Skills) 108.

Name and describe the five common advertising budgeting methods. Answer:

The five advertising budgeting methods are: (1) Historical—Bases a budget on last year’s budget, perhaps with a percentage increase for inflation or some other marketplace factor. Though easy, it has little to do with reaching advertising objectives. (2) Objective-Task—Looks at the objectives for each activity and determines the cost of accomplishing each objective. The advantage of this method is that it develops the budget from the ground up so that objectives are the starting point. (3) Percentage-of-Sales—Compares the total sales with the total advertising budget during the previous year or the average of several years to compute a percentage. (4) Competitive Budgets—Uses competitors’ budgets as benchmarks and relates the amount invested in advertising to the product’s share of market. This suggests that the advertiser’s share-of-advertising voice affects the share of attention the brand will receive, and that, in turn, affects the market share the brand can obtain. (5) All You Can Afford—Allocate whatever is left over to advertising. It’s not really a method, but rather a philosophy, and companies using this approach don’t value advertising as a strategic imperative. (moderate; pp. 209-210; LO2; AACSB Reflective Thinking)

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109.

Define account planning, and identify the tasks involved. Answer:

Account planning is the research-and-analysis process used to gain knowledge and understanding of the consumer, understanding that is expressed as a key consumer insight into how people relate to a brand or product. An account planner, then, is a person in an agency who uses this disciplined system to research a brand and its customer relationships in order to devise advertising (and other marketing communication) message strategies that are effective in addressing consumer needs and wants. The account planner’s tasks involve: (1) Understand the meaning of the brand. (2) Understand the target audience’s relationship to the brand. (3) Articulate communication strategies. (4) Prepare creative briefs based on understanding of consumer and brand. (5) Evaluate the effectiveness of the communication in terms of how the target reacts to it. (difficult; pp. 210-211; LO3; AACSB Reflective Thinking) 110.

Name and describe the nine components of the communication brief that were given in the Communication Brief Outline that is used at Ogilvy and Mather. Answer:

The communication brief includes the following components: (1) Problem—What’s the problem that communication can solve? (2) Target Audience—Who do we want to speak to? (3) Consumer Insight—What motivates the target? What are the major truths about the target’s relationship to the product category or brand? (4) Brand Imperatives— What are the important features? What’s the point of competitive advantage? What’s the brand’s position relative to competition? What are the brand essence, brand personality, and image? (5) Communication Objectives—What do we want them to do in response to our message? (6) The Proposition or Selling Idea—What is the single thought that the communication will bring to life in a provocative way? (7) Support—What is the reason to believe the proposition? (8) Creative direction—How can we best stimulate the desired response? How can we best say it? (9) Media imperatives—Where and when should we say it? (difficult; pp. 214-215; LO1; AACSB Communication)

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APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

Kodak defined the film category for more than a century. In the late 1990s Kodak faced a major _______ from digital development by Sony and Hewlett-Packard. a. monopoly b. Kodak moment c. threat d. strength e. weakness (c; difficult; p. 191) 112.

Which of the following was NOT a key point from Kodak's situation analysis? a. Kodak needed to be more direct in adopting a digital point of view. b. Kodak needed to make a big statement. c. Consumers' attitudes toward pictures would probably stay the same when they use digital. d. Consumers' will not care about the pictures they decide to keep. e. Consumers liked the concept of deleting unwanted pictures. (d; difficult; p. 192) The following statement appeared in an organization’s business plan: “Quick and Dirty Auto Repair aims to offer high-quality auto repair services and a full range of auto parts. QDAR focuses on personalized service to its customers by offering convenience and rapid service. Additionally, QDAR is technologically savvy with computerized monitoring of all parts inventory, to ensure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. Finally, QDAR has strong vendor relationships with the most serviceconscious vendors who are capable of shipping major parts rapidly (on an overnight timeline in most cases).” Which part of a business plan does this represent? a. business objectives b. business mission c. marketing objectives d. business goals e. business strategy (b; moderate; p. 195; LO1; AACSB Reflective Thinking) 113.

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114.

Adam is assisting in the development of his company’s marketing plan, and he has been assigned to assess the external and internal environments that affect the marketing operations. He will be looking at the company’s history, products, and brands, as well as the competitive environment, consumer trends, and other marketplace trends that affect the product category. What type of analysis is Adam conducting? a. business analysis b. competitive analysis c. internal/external analysis d. market situation analysis e. category analysis (d; moderate; p. 195; LO1) Tony developed the following objective for his advertising plan: “Increase market share in the consumer market from 10 percent to 15 percent in one year.” What is wrong with this advertising plan objective? a. It is an objective more appropriate for a marketing plan. b. It does not have a specific effect that can be measured. c. The goal is not realistic. d. It does not include a time frame. e. It does not provide a percentage change. (a; difficult; p. 196; LO1; AACSB Analytic Skills) 116. Kenisha just started working at a major consumer packaged goods manufacturer, and her duties entail assisting in the development of the advertising plan. She has been given her company’s business and marketing plans to help her prepare the advertising plan. From her perspective, which part of which plan is most important? a. the marketing mix strategy of the marketing plan b. the business mission statement of the business plan c. the marketing mix strategy of the business plan d. the target market section of the marketing plan e. the threats and opportunities section of the business plan (a; difficult; p. 196; LO1) 115.

117.

Newman’s Own is a brand of salad dressing. In 2004, low-carbohydrate dieting became the craze among consumers, with millions supposedly following a lowcarb lifestyle. In their print advertising, Newman’s Own featured the fact that several of their dressings are low in carbohydrates. In terms of a SWOT analysis, the low-carb diet trend among consumers represents a(n) ________. a. strength b. weakness c. opportunity d. threat e. all of the above (c; moderate; p. 199; LO1; AACSB Reflective Thinking)

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118.

Newman’s Own is a brand of salad dressings, and In 2004, low-carbohydrate dieting became the craze among consumers, with millions supposedly following a low-carb lifestyle. In print advertising, Newman’s Own featured that fact that several of their dressings are low in carbohydrates. In terms of a SWOT analysis, the fact that the brand was low in carbohydrates represents a(n) ________. a. strength b. weakness c. opportunity d. threat e. all of the above (a; moderate; p. 199; LO1; AACSB Reflective Thinking) What strategy did Special K, which was described in “The Inside Story,” pursue to reach its marketing objective of capitalize on consumers' goals to lose weight as a New Year's resolutions? a. Deluged the market right after the holidays with TV commercials. b. Positioned Special K as a complex weight loss solution to a complicated problem. c. Convince customers of a competitor’s brand to switch to Special K. d. Designed a poster campaign reaching women at the moment they are in need of a weight-loss solution and delivering a simple diet in the context of their environment. e. Convince more men to eat Special K because of the high fiber content of the cereal with advertising on subways. (d; moderate; p. 200) 119.

120.

At what market was the Dunkin' Donuts coffee campaign, described in text directed? a. nondrinkers of coffee b. the average Joe coffee drinker who was intimidated by ordering espresso drinks. c. people who switched among several brands of coffee d. women e. young professionals (b; moderate; p. 211) As described in “A Matter of Practice,” what objective did 7-Up have? a. to pick up the green 7-Up bottle mentally in the consumers' mind and move it to where Pepsi and Coke were. b. to penetrate the British consumer market. c. to change the perception that 7-Up was too expensive.. d. to change the perception that 7-Up was unhealthy. e. to capture a large share of the family market soft drink expenditures. (a; moderate; p. 207) 121.

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As described in “A Matter of Practice,” what did 'Uncola' do for 7-Up? a. It appealed to the Mature market segment. b. It positioned 7-Up as a medicinal drink. c. It positioned 7-Up as a mixer.. d. It positioned 7-Up as a cola, yet not a cola. e. It appealed to moms as the perfect drink for children. (d; moderate; p. 207) 122.

123.

Carrie is trying to describe the unique personality for the brand that the creative team in her advertising agency will be developing ads for. She’s trying to put into words the brand’s essence, its personality, and image. In which component of the communication brief will this information be included? a. problem b. target audience c. brand position d. brand imperatives e. brand synopsis (d; moderate; p. 214; LO3; AACSB Reflective Thinking 124.

In "Practical Tips" function of the _______ is to know what consumers think and feel and how they behave when it come to the products and services the company sells.? a. account planner b. advertiser c. insights team d. strategic team e. target audience planner (c; moderate; p. 213; LO3) 125.

Which of the following statements is true regarding the results of Kodak's Gallery campaign? a. It demonstrates that brands have enormous power, even those brands that seem spent, and the creative can play a pivotal role in bringing them back to life. b. The campaign did not win an Effie. c. The campaign did not win the London International Award. d. There was no change in the top-of-mind awareness of Kodak as a company that makes digital products during the first six weeks of the campaign. e. Kodak's market share did not change as a result of the campaign. (a; difficult; p. 217)

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According to the case at the end of the chapter, entitled “Chasing the NASCAR Fan,” how did Josh Linkler get information to better understand the NASCAR audience? a. He combined information from several secondary data sources, such as A.C. Nielsen, Mediamark, and Simmons, to devise a NASCAR fan persona. b. He conducted several focus group interviews with NASCAR fans right at the races by providing them prizes for participating. c. He devised a promotion where NASCAR fans were given an “e-decoder” device to compare with a code given on a Web site to see if they are winners of prizes, and they could do this daily with the provision that they gave a small amount of personal information each time they played. d. He devised a promotion in which one NASCAR fan was announced as a winner at each race, but to enter the promotion, participants had to give personal information. e. He used several different promotion tools, such as sweepstakes, contests, games, and premiums to get NASCAR fans to provide personal information in order to be eligible for prizes. (c; moderate; p. 220; LO1; AACSB Use of IT) 126.

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Susan is working on the advertising plan for her company’s brand of shampoo named Silkience. She has conducted a SWOT analysis and learned that her company enjoyed a strong financial position and has good working relations with the resellers of their brands. The primary target customers for this brand are women between the ages of 35 and 50, and demographic analysis indicates that this age demographic will grow in double digits over the next 10 years. Silkience targets women who may be having concerns about graying hair, and it is a gentle shampoo that will not wash out color, especially semipermanent color that women of this age tend to use. However, she also learned that the target customers do not perceive her company’s brand of shampoo as a brand for them but rather for a younger consumer because their previous ads tended to use youngerlooking models. There was also nothing in the previous advertising campaigns that really explained the benefits of their brand, such as suggesting that it was gentler for semipermanent-colored hair. 127.

Mini-Case Question. In terms of the SWOT analysis, the fact that the demographic analysis indicated that this age group of women will increase considerably in the next 10 years represents a(n) ___________. a. strength b. weakness c. opportunity d. threat e. growth potential (c; moderate; p. 199; LO2; AACSB Communication)

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128.

Mini-Case Question. The place in consumers’ minds that placed Silkience among other brands targeted to younger women represents Silkience’s ________. a. position b. competitive advantage c. competitive disadvantage d. product differentiation e. perceptual map (a; moderate; p. 202; LO1) 129.

Mini-Case Question. Silkience really is different from other shampoos because it is so gentle that it does not fade semi-permanent hair color, allowing a woman to go for a longer period time before having to color her hair again. What does this product attribute represent? a. opportunity b. product differentiation c. brand position d. brand essence e. brand imperative (b; moderate; p. 205; LO2; AACSB Reflective Thinking) 130.

Mini-Case Question. To determine the advertising budget, Susan divided last year’s advertising expenditures by last year’s sales and then multiplied that by this year’s sales forecast. Which advertising budgeting method did Susan use? a. historical method b. objective-task method c. percentage-of-sales method d. all-you-can-afford method e. competitive budgeting method (c; easy; p. 210; LO2; AACSB Reflective Thinking)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

What were the key points from Kodak's situation analysis? Answer:

(1) Kodak needed to be more direct in adopting a digital point of view. (2) Kodak needed to make a big statement. (3) Consumers' attitudes toward pictures would probably stay the same when they use digital. (4) Consumers' will care about the pictures they decide to keep. (5) Consumers' want to delete pictures they don't want. (moderate; p. 192)

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132.

Distinguish between strategic planning, strategies, and tactics. Answer:

Strategic planning is the process of determining objectives (what you want to accomplish), deciding on strategies (how to accomplish the objectives), and implementing the tactics (which make the plan come to life). (easy; pp. 192-193; LO1; AACSB Analytical Skills) 133.

Sarah is trying to think of ways to better define the marketing problem she is facing. List three “What’s going on?” type questions that might be helpful to Sarah in defining the marketing problem. Answer:

Students can give any three of the following: (1) What is happening with the brand and the category? (2) How is it happening? (3) Where is it happening? (4) When is it happening? (5) To whom is it happening? (moderate; p. 196; LO1; AACSB Reflective Thinking) 134.

Richard is tasked with developing the campaign plan for his family’s business. Give a general outline of the major components of the plan. Answer:

A typical outline for a campaign plan includes the following: (1) situation analysis, (2) key strategic decisions, (3) media strategy, (4) message strategy, (5) other marcom tools used in support and (6) campaign management (easy; p. 197; LO1; AACSB Communication) 135.

Fiona was given the information learned in the situation analysis and was tasked with developing the next component of an advertising plan. List the elements that she needs to include in this part of the plan. Answer:

After the situation analysis, key strategic campaign decisions need to be determined. Specifically, Fiona needs to determine the objectives the target audience, the brand position, and campaign strategy. (moderate; p. 197; LO1; AACSB Reflective Thinking)

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136.

Tom was given the task of writing the objectives for an advertising plan. Briefly explain the logic of objectives. Answer: Given the huge amounts of money spent on advertising, it is important for advertisers to know what to expect from a campaign or ad. Objectives are formal statements of the goals of the advertising or other marketing communication. They outline what the message is designed to achieve and how it will be measured.

(moderate; p. 199-200; LO1; AACSB Reflective Thinking)

137.

While working on a campaign plan for a client, Madeleine was given the task of understanding the brand's position within the competitive marketplace. What is a position of a brand? Answer: A position is a place in consumers’ minds where the product or brand stands in comparison to its competitors. A position is usually based on a particular feature or attribute (Holiday Inn Express— showerheads), although it can be psychological, such as heritage (Kodak), or both (Dove). The target decision is the starting point because the brand position is determined by how customers see the brand in the marketplace.

(moderate; p. 202; LO2; AACSB Analytical Skills) 138.

Describe how 7-Up, described in “A Matter of Practice,” repositioned its brand. Answer:

7-Up wanted to turn a medicinal product, which is also used as a mixer with whisky, into a soft drink without changing anything about the product or its packaging. Preceding 1967 7-Up was marketed, consumers didn’t think of 7-Up as a soft drink, just as we don’t think of club soda and tonic water as soft drinks. In 1967, a soft drink was a cola, and a cola was a soft drink. 7-Up had to find a way to pick up that green bottle (7-Up), pick it up mentally in consumers’ minds, and move it over to where Coke and Pepsi were. And until they did that, anything 7-Up did that smacked of soft-drink advertising was going to be rejected by consumers. The 7-Up advertising team thought of 'Uncola'—it did everything they wanted to do. In one word, it did it all. It positioned 7-Up as a cola, yet not a cola. Today, the 7-Up Uncola campaign is regarded as perhaps the classic example of brand positioning—and a classic example of how the right brand positioning can lead to marketing magic. (moderate; p 207)

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139.

Caroline needs to develop the advertising budget for her marketing group’s brand. She wants to use a method that is the best and most defensible. Which method should she use? Answer:

The objective-task method looks at the objectives for each activity and determines the cost of accomplishing each objective. This method’s advantage is that it develops the budget from the ground up so that objectives are the starting point, which makes it easier to justify than the other budgeting methods because they are not tied directly to the objectives. (moderate; p. 209; LO1; AACSB Analytical Skills) 140.

Eric is the account planner a major advertising agency. What three elements are at the heart of an advertising plan and represent the decisions Eric is responsible for as the account planner? Answer:

These three elements are at the heart of an advertising plan and the agency’s planner is responsible for making the following decisions: (1) Audience Insight—Whom are you trying to reach and what insight do you have about how they think, feel, and act? How should they respond to your advertising message? (2) Message—What do you say to them? What directions from the consumer research are useful to the creative team? (3) Medium—How and where will you reach them? What directions from the consumer research are useful to the media team? (moderate; pp. 210-211; LO3; AACSB Communication) 141.

You notice that an advertising agency is recruiting on your campus and that one of the job positions they are seeking to fill is “account planner.” What should be included in the job description that explains an account planner’s tasks? Answer:

The account planner’s tasks are as follows: (1) Understand the meaning of the brand. (2) Understand the target audience’s relationship to the brand. (3) Articulate communication strategies. (4) Prepare creative briefs based on understanding of consumer and brand. (5) Evaluate the effectiveness of the communication in terms of how the target reacts to it. (difficult; p. 211; LO3)

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142.

Explain how Kellogg took advantage of an opportunity in timing with the New Year's Special K campaign described in "The Inside Story.". Answer: Each year Kellogg’s supports its Special K cereal with special marketing efforts during the New Year’s resolution season. The idea is to capitalize on consumers’ goals to lose weight after the holidays. The 2-week poster campaign for Special K was specifically designed to reach prospective customers at a moment when they would be most interested in the “lose weight” message. For example, the posters were displayed in locations where women think about their appearance, such as department store dressing rooms, health clubs, doctor’s offices, hair or nail salons, and bridal salons. The messages were tailored to each location with such lines as, “The doctor will see (less of you) now.” Reaching consumers at the moment they are in need of a weight-loss solution and delivering a simple diet in the context of their environment was very effective. Business results included an overall increase in the poster markets of 20 percent over nonposter markets.

(moderate; p. 200) 143.

Jana is an account planner at an advertising agency. She conducts consumer research to gain a better understanding of their clients’ brands and their customers. How is the outcome of this strategic research communicated to the creative teams that work on these clients’ accounts? Answer:

The outcome of strategic research usually reaches agency creative departments in the form of a strategy document called a communication brief or creative brief, which explains the consumer insight and summarizes the basic strategy decisions (position, targeting, objectives, and brand strategy). Most communication briefs have nine major parts: Problem, Target Audience, Consumer Insights, Brand Imperatives, Communication Objectives, Proposition or Selling Idea, Support, Creative Direction, and Media Imperatives. (moderate; pp. 214-215; LO3; AACSB Communication)

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144.

Describe three questions from the account planning toolkit as explained in the text.. Answer:

Students can describe any three of the following: (1) What is a realistic response objective (perception, knowledge, feelings, attitudes, symbolic meanings, behavior) for this target group? (2) What are the causes of their lack of response? (3) What are the barriers to the desired response? (4) What could motivate them to respond in the desired way? (5) What is the role of each element in the communication mix to motivate them or remove a barrier? (moderate; p. 213) 145.

You work at an advertising agency, and a new employee asks you the difference between an IMC plan and an advertising plan. Explain the three main areas where an IMC plan is different from an advertising plan. Answer:

The three main areas where an IMC plan is different from an advertising plan are: (1) Stakeholders—The target market in an IMC plan includes more than just consumers. Stakeholder refers to any group of people who have a stake in the success of a company or a brand, and examples include employees, trade audiences, the local community, general public, opinion leaders, and so on. (2) Contact Points—IMC programs are designed to maximize all the various types of contacts that consumers and other stakeholders might have with a brand. Contact points, also called touch points, are all the ways and places where a person can come into contact with a brand; all the points where a message about the brand is delivered. (3) IMC Objectives—Tied to the effects created by the various forms of marketing communication. An IMC plan operates with a set of interrelated objectives that specify the strategies for all the various tools. (moderate; p. 215-216; LO4; AACSB Communication)

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146.

Describe how NASCAR learned more about their fans as described in the “Hands On” case at the end of the chapter. Answer:

Josh Linkler developed an e-decoder bearing the phrase “Race to Win. Grand Prize $10,000 cash.” Owners of the e-decoder went to a Web site and compared the device against the code on the screen to see if they had won NASCAR prizes that were awarded every day. Fans had to give a small amount of personal information each time they played, and someone who played regularly could have ended up giving responses to more than 150 questions. Although some questions dealt with racing, others were meant to learn fans’ hobbies and where they shop. (moderate; p. 220)

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Bob works at a major advertising agency, and his job entails understanding the meaning of the client’s brand and the target audience’s relationship to the brand. He must also articulate communication strategies, prepare a creative brief based on an understanding of the consumer and the brand, and finally, evaluate the effectiveness of the communication in terms of how the target reacts to it. 147.

Mini-Case Question. What is Bob’s function called? Answer:

Bob is an account planner. (easy; p. 211; LO1) 148.

Mini-Case Question. What will Bob include in the creative brief that he prepares for the creative department? Answer:

The Creative Brief or Communication Brief Outline includes: the problem, target audience, consumer insights, brand imperatives, communication objectives, the proposition or selling idea, support, creative direction, and media imperatives. (moderate; p. 214-215; LO3; AACSB Communication)

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149.

Mini-Case Question. Bob is an account planner. facing his greatest challenge, insight mining. Explain insight mining. Answer: Insight mining is peering into nooks and crannies without losing sight of the big picture in order to identify a key insight that can transform a client’s business. Insight mining is a deep dive into the meaning of a brand looking for major truths. The planner engages in unearthing the relationship (if there is any) that a target audience has with a brand or product and what role that brand plays in their lives. Understanding the brand/consumer relationship is important because account planners are taking on the position of the agency’s brand steward. The account planner puts the clients in touch with the souls of their brands.

(moderate; p. 212; LO3) 150.

Mini-Case Question. For one of the agency’s clients, Bob is involved in assisting the team in crafting a position by identifying features of the company’s brand as well as the competition to determine where the brand has an advantage over its competitors. Name and describe a technique Bob can use to help structure this analysis. Answer:

A technique called feature analysis helps structure this analysis. First, you make a chart of a client’s product and competitors’ products, listing each product’s relevant features. Then evaluate how well the product and the competitors’ products perform on that feature. Next, evaluate how important each feature is to the target audience based on primary research. (difficult; p. 204; LO2; AACSB Analytic Skills)

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GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

Newspapers, magazines, packaging, and directories are known as ___________ media. a. broadcast b. narrowcast c. print d. directional e. interactive (c; easy; p. 227; LO2; AACSB Communication) 2.

The way various types of media are strategically combined in an advertising plan is known as a ________. a. media mix b. message mix c. media vehicle d. medium e. gross impression (a; easy; p. 231; LO1; AACSB Communication) 3.

Newspaper is the ________, and the Wall Street Journal is the ________. a. vehicle; medium b. medium; vehicle c. medium; execution d. execution; medium e. reach; impression (b; moderate; p. 231; LO1; AACSB Communication) 4.

A ________ identifies the best media to use to deliver an advertising message to a targeted audience and is a subsection within an advertising plan. a. media mix b. media vehicle c. gross impression plan d. media plan e. message plan (d; moderate; p. 229; LO1)

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________ involves implementing strategic decisions outlined in the media plan, such as where to advertise. a. Media planning b. Media buying c. Media strategy d. Media mixing e. Media verification (a; moderate; p. 231; LO1; AACSB Communication) 6.

________ implement the media plan by contracting for specific amounts of time or space. a. Media planners b. Media buyers c. Media strategists d. Media mixers e. Media verifiers (b; easy; p. 230; LO1) 7.

The percentage of the media audience exposed at least once to the advertiser’s message during a specific time frame is known as ________. a. an impression b. circulation c. exposure d. reach e. frequency (d; moderate; p. 232; LO1; AACSB Analytical Skills) 8.

The number of times a person is exposed to an advertisement is known as ________. a. gross impressions b. circulation c. exposure d. reach e. frequency (e; moderate; p. 232; LO1) 9.

One person’s opportunity to be exposed one time to an ad in a broadcast program, newspaper, magazine, or outdoor location is known as ________. a. an impression b. circulation c. exposure d. reach e. frequency (a; moderate; p. 231; LO1; AACSB Communication)

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10.

For print media, ________ refers to copies sold, and ________ estimate(s) the actual readership. a. circulation; frequency b. circulation; impressions c. frequency; circulation d. impressions; circulation e. exposure; gross impressions (b; moderate; p. 232; LO1) 11.

Which of the following statements is true regarding print media? a. Circulation measures the actual readership. b. Impressions estimate the actual readership. c. Impressions refer to copies sold. d. Reach is more important than frequency. e. Frequency is more important than reach. (b; moderate; p. 232; LO1; AACSB Communication) 12.

One of the biggest challenges in developing a media plan is matching the advertiser’s target audience with the audience of a particular ________. a. medium b. impression c. household d. frequency e. cost (a; moderate; p. 231; LO1; AACSB Analytic Skills) 13.

Media salespeople compile profile information about the people who watch, listen, or read the medium, along with the numbers describing audience size and geographical coverage in packets of information known as ________. a. rate cards b. take-aways c. give-aways d. media kits e. sales kits (e; moderate; p. 230; LO1) 14.

________ are people or companies that sell space (in print) and time (in broadcast) for a variety of media. a. Media salespeople b. Media reps c. Media buyers d. Media brokers e. Media distributors (b; moderate; p. 230; LO1)

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15.

Who makes the strategic decisions outlined in the media plan? a. media buyers b. media specialists c. media planners d. media reps e. media consultants (c; easy; p. 231; LO1) 16.

Who implements the media plan? a. media buyers b. media specialists c. media planners d. media reps e. media consultants (a; moderate; p. 231; LO1) 17.

Who compiles audience measurement data, as well as media costs and availability data for the various media options being considered by the planners? a. media buyers b. media planners c. media reps d. media researchers e. media detailers (d; moderate; p. 231; LO1; AACSB Analytic Skills) 18.

________ are independent companies that specialize in doing media research, planning, and buying. a. Media planners b. Account planners c. Media reps d. Media-buying services e. Media specialists (d; moderate; p. 231; LO1) 19.

One characteristic of newspapers is that they can target specific consumer groups through special interest newspapers, special interest sections (i.e., business, sports, lifestyle), and advertising inserts delivered only to particular zip codes or zones. This characteristic is known as ________. a. market segmentation b. market zoning c. market selectivity d. market focus e. selective binding (c; moderate; p. 234; LO2; AACSB Communication)

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20.

Which of the following is NOT a factor by which newspapers can be classified? a. selectivity b. frequency of publication c. format and size d. circulation e. All of the above are factors by which newspapers can be classified. (a; difficult; p. 234; LO2) 21.

Frequency of publication, format and size, and circulation are ________. a. advantages of newspapers as an advertising medium b. weaknesses of newspapers as an advertising medium c. factors by which any medium can be classified d. factors by which newspapers can be classified e. factors by which magazines can be classified (d; moderate; p. 234; LO2; AACSB Communication) 22.

Which of the following statements is false regarding newspapers? a. Readers spend twice as much time with the Sunday edition as with the daily edition. b. Weekly papers appear in towns, suburbs, and smaller cities where the volume of hard news and advertising is insufficient to support a daily newspaper. c. National advertisers often shun weeklies but are heavy users of daily papers. d. Weekly papers report local news in depth but tend to ignore national news, sports, and similar subjects. e. National advertisers use local papers indirectly through advertising placed by local retailers, dealers, and franchisers. (c; moderate; p. 234; LO2; AACSB Analytical Skills) 23.

Newspapers typically are available in which of the following two sizes? a. broadsheet and tabloid b. standard and custom c. daily and weekly d. display and classified e. single and double (a; moderate; p. 234; LO2) 24.

Which size of newspaper consists of five or six columns, each of which is about 2 inches wide and has a length of approximately 14 inches? a. broadsheet b. standard c. tabloid d. daily e. weekly (c; difficult; p. 234; LO2)

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25.

The standard size of newspaper, which is usually 8 columns wide and 300 lines deep, or 22 inches deep by 14 inches wide, is known as ________. a. broadsheet b. standard c. tabloid d. daily e. weekly (a; moderate; p. 234; LO2) 26.

Which size of newspaper is considered the standard size? a. broadsheet b. standard c. tabloid d. daily e. weekly (a; moderate; p. 234; LO2; AACSB Analytical Skills) 27.

________ refers to the number of copies a newspaper sells and is the primary way newspapers’ reach is measured and compared with the reach of other media. a. Run-of-paper (ROP) b. Circulation c. Impression d. Gross impression e. Exposure (b; easy; p. 234; LO2; AACSB Analytical Skills) 28.

The pricing for newspaper advertising is sold based on the size of the space used, and the charges are published on ________, which is a list of the charges for advertising space and the discounts given to local advertisers and to advertisers who make volume buys. a. rate cards b. take-aways c. give-aways d. media kits e. sales kits (a; moderate; p. 235; LO2; AACSB Communication) 29.

Which of the following is NOT a type of advertising found within the local newspaper? a. classified b. display c. gatefold d. supplements e. retail. (c; moderate; p. 236; LO2; AACSB Communication)

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30.

What form of newspaper advertising is by individuals to sell their personal goods and advertising by local business? a. classified b. display c. supplements d. gatefolds e. co-op (a; easy; p. 236; LO2; AACSB Communication) 31.

What form of newspaper advertising is the dominant form, and can be any size and be placed anywhere in the newspaper except the editorial page? a. classified b. display c. supplements d. gatefolds e. co-op (b; moderate; p. 236; LO2) 32.

Advertisers who don’t care where their ads run in the newspaper pay which rate? a. co-op rate b. preferred-position rate c. run-of-paper (ROP) rate d. non-preferred rate e. standard rate (c; moderate; p. 236; LO2) 33.

An arrangement between a national advertiser and a local retailer whereby the retailer buys the ad and then the manufacturer pays for half or a portion is known as ________. a. joint advertising b. co-op advertising c. run-of-paper advertising (ROP) d. selective advertising e. subsidized advertising (b; moderate; p. 236; LO2; AACSB Communication) 34.

What type of newspaper advertising can carry both national and local advertising and is usually full-color advertising inserts that appear throughout the week and especially in the Sunday edition of the newspaper? a. classified b. display c. supplements d. gatefolds e. co-op (c; moderate; p. 236; LO2; AACSB Communication)

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35.

Which company is an independent auditing group that represents advertisers, agencies, and publishers and verifies statements about newspaper circulation statistics? a. A. C. Nielsen b. Simmons-Scarborough c. MediaMark, Inc d. Auditing Bureau of Circulations (ABC) e. International Circulation Service (ICS) (d; moderate; p. 236; LO2; AACSB Ethical Reasoning) 36.

Which company provides a syndicated study that annually measures readership profiles for newspapers in approximately 70 of the nation’s largest cities, readership of a single issue, and the estimated unduplicated readers for a series of issues? a. A. C. Nielsen b. Simmons-Scarborough c. MediaMark, Inc d. Auditing Bureau of Circulations (ABC) e. International Circulation Service (ICS) (b; moderate; p. 237; LO2) 37.

Which of the following is NOT considered an advantage of advertising in newspapers? a. market coverage b. comparison shopping c. reaches educated consumers d. flexibility e. short life span (e; easy; p. 249; LO2; AACSB Communication) 38.

Which of the following is NOT considered an advantage of advertising in newspapers? a. range of market coverage b. flexibility c. clutter d. positive consumer attitudes e. interaction of national and local (c; moderate; p. 249; LO2; AACSB Communication)

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Part Three: Practice: Where Are Media Heading?

39.Which of the following is NOT considered a disadvantage of advertising in newspapers? a. negative consumer attitudes b. short life span c. clutter d. limited coverage of certain groups e. poor reproduction (a; moderate; p. 249; LO2; AACSB Communication) 40.

Which of the following is NOT a main type of audience that magazines target? a. consumer b. business c. farm d. newspaper e. industrial (d; difficult; p. 238; LO2) 41.

Which classification of business magazines presents stories and information about an entire industry? a. trade papers b. industrial magazines c. professional magazines d. vertical publications e. horizontal publications (d; moderate; p. 239; LO2; AACSB Communication) 42.

Which of the following is NOT a way to classify magazines? a. audience focus b. demographics c. geography d. editorial content e. price (e; easy; p. 239; LO2) 43.

Which of the following is NOT considered a nontraditional delivery method for magazines? a. hanging bagged copies on doorknobs b. inserting magazines in newspapers c. split run editions d. delivering through professionals, such as doctors’ and dentists’ offices e. electronic delivery (c; difficult; p. 240; LO2; AACSB Analytical Skills)

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44.

Nontraditional delivery of magazines is referred to as ________, meaning the magazine is distributed free to specific audiences. a. controlled circulation b. nonmeasured circulation c. nontraditional circulation d. discounted circulation e. selective circulation (a; moderate; p. 240; LO2) 45.

What two factors must advertisers consider when deciding in which magazines to place ads? a. size and format b. frequency of publication and size c. frequency of publication and format d. format and technology e. size and technology (d; moderate; p. 240; LO2; AACSB Analytical Skills) 46.

Normally, the largest unit of ad space that magazines sell is the ________. a. full-page ad b. double-page spread c. gutterless spread d. bleed page e. nonbleed page (b; moderate; p. 240; LO2; AACSB Analytical Skills) 47.

The white space running between the inside edges of the pages of a magazine is known as the ________. a. gutter b. inside edge c. cover d. gatefold e. spread (a; moderate; p. 240; LO2) 48.

A magazine page without outside margins, in which the color extends to the edge of the page, is called a ________ page. a. marginless b. gatefold c. double-spread d. full e. bleed (e; moderate; p. 240; LO2)

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Part Three: Practice: Where Are Media Heading?

49.A single or double page in a magazine can be broken into a variety of units called ________. a. gatefolds b. fractional page space c. segments d. standard advertising units e. cut-outs (b; moderate; p. 240; LO2; Analytical Skills) 50.

________ combines information on subscribers kept in a database with a computer program to produce magazines that include special sections for subscribers based on their demographic profiles. a. Fractional page space b. Satellite transmission c. Selective binding d. Desktop publishing e. Custom publishing (c; moderate; p. 240; LO2; AACSB Use of IT) 51.

Which technology allows a magazine to print personalized messages on ads or on inserts? a. selective binding b. desktop publishing c. ink-jet imaging d. global positioning system e. satellite transmission (c; moderate; p. 240; LO2; AACSB Use of IT) 52.

Which company verifies magazine circulation numbers by auditing subscriptions as well as newsstand sales and also checks the number of delinquent subscribers and rates of renewal? a. A. C. Nielsen b. Simmons-Scarborough c. MediaMark, Inc d. Auditing Bureau of Circulations (ABC) e. International Circulation Service (ICS) (d; moderate; p. 241; LO2; AACSB Ethical Reasoning) 53.

Which of the following companies does NOT provide useful information to advertisers regarding magazines? a. Starch b. Gallup c. Simmons Market Research Bureau (SMRB) d. Auditing Bureau of Circulations (ABC) e. FED (e; moderate; p. 241; LO2)

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54.

Which of the following is NOT considered to be an advantage of advertising in magazines? a. ability to reach specialized audiences b. long life span c. flexibility d. visual quality e. can accommodate complex messages (c; moderate; p. 249; LO2; AACSB Analytical Skills) 55.

Which of the following is considered a disadvantage of advertising in magazines? a. lack of immediacy b. high cost c. limited distribution d. limited flexibility e. good for brand messages (e; easy; p. 249; LO2; AACSB Communication) 56.

Which marketing communication tool has the goal of creating impact on the store shelf? a. in-store media b. packaging c. shelf-talkers d. coupons e. brand name (b; moderate; p. 248; LO3; AACSB Communication) 57.

________ includes advertising on outdoor billboards, buses, posters on walls, telephone booths and shopping kiosks, taxi signs, grocery store carts, blimps, and so forth. a. Outdoor advertising b. Out-of-home advertising c. Broadcast advertising d. Transit advertising e. Miscellaneous advertising (b; moderate; p. 242; LO3; AACSB Analytical Skills) 58.

________ refers to billboards along streets and highways, as well as posters in other public locations. a. Outdoor advertising b. Out-of-home advertising c. Broadcast advertising d. Transit advertising e. Miscellaneous advertising (a; moderate; p. 243; LO3; AACSB Analytical Skills)

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Part Three: Practice: Where Are Media Heading?

59.

Which type of billboard is created by designers, printed, and shipped to an outdoor advertising company who then prepastes and applies them in sections to the poster panel’s face on location? a. painted bulletin b. printed bulletin c. painted posters d. printed posters e. extensions (d; difficult; p. 244; LO3; AACSB Communication) 60.

Which type of billboard is normally created onsite, and can even be painted on the sides of buildings, roofs, and natural structures, such as the side of a mountain? a. painted bulletin b. printed bulletin c. painted posters d. printed posters e. extensions (a; moderate; p. 244; LO3; AACSB Analytical Skills) 61.

________ refers to a standard unit for space sales based on the opportunity a person has to see a particular outdoor board and is typically based on a traffic count of vehicles passing a particular location during a specified period of time. a. Impressions b. Showing c. Exposure d. Reach e. Frequency (b; moderate; p. 245; LO3; AACSB Analytical Skills) 62.

Which of the following is NOT an advantage of outdoor advertising? a. serves as a brand reminder b. short viewing time c. directional medium d. inexpensive e. very few words possible (e; moderate; p. 249; LO3; AACSB Analytical Skills) 63.

________ is seen by people riding inside buses, subway cars, and some taxis. a. Interior transit advertising b. Exterior transit advertising c. Kiosk advertising d. On-premise advertising e. Mobile advertising (a; moderate; p. 248; LO3)

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64.

Directory advertising is described as ________ advertising because it tells people where to go to get the product or service they want. a. primary b. secondary c. directional d. promotional e. selective (c; moderate; p. 242; LO3) 65.

What is the key difference between directory advertising and brand-image advertising? a. Directory advertising reaches prospects, people who already know they have a need for the product or service. b. Directory advertising provides directions on how to use the product, and brand-image advertising does not. c. Directory advertising provides maps with directions on how to find the retailer’s location. d. Directory advertising is used in the initial stages of consumer decision making regarding a purchase. e. Directory advertising is not as effective as brand-image advertising. (a; moderate; p. 242; LO3; AACSB Analytical Skills) 66.

Which directory lists all local and regional businesses that have a telephone number as well as display advertising that is purchased by businesses? a. Standard Pages b. Yellow Pages c. Directory Pages d. Local Pages e. Listing Pages (b; easy; p. 242; LO3) 67.

Which of the following statements is true regarding Directory and Yellow Pages advertising? a. Only businesses that have paid for advertising space are listed in the Yellow Pages. b. Only 10 percent of consumers who consult the Yellow Pages follow up with some kind of action. c. Because a Yellow Pages ad is the last step in the search for a product or service by a committed consumer, the ads are not intrusive. d. Advertising in directories is extremely expensive. e. Only directories published by AT&T can used the name Yellow Pages. (c; moderate; p. 242; LO3)

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68.

Which of the following is NOT an advantage of directory advertising? a. inexpensive b. long life c. shopping medium d. competitive clutter e. flexibility with respect to size, colors, and formats (d; difficult; p. 249; LO3; AACSB Analytical Skills) 69.

What is the primary weakness of directories as an advertising medium? a. competitive clutter b. long life c. cannot be changed for months d. expensive and provide a low return on investment e. limited size, color, and format options (a; moderate; p. 249; LO3; AACSB Analytical Skills) 70.

Which of the following is a limitation of directory advertising? a. directional b. inexpensive c. low production quality d. good ROI e. flexible in size, color, format (c; difficult; p. 249; LO3; AACSB Analytical Skills)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

A media mix is the way various types of media are strategically combined in an advertising plan. (True; easy; p. 231; LO1; AACSB Analytic Skills) 72. The goal of a media plan should be to maximize reach. (False; difficult; p. 229; LO1) 73. Reach is more important than frequency. (False; moderate; p. 232; LO1; AACSB Communication) 74.

Gross impressions are the number of times a person is exposed to the advertisement. (False; moderate; p. 232; LO1; AACSB Communication) 75.

Media reps work for a medium, such as a magazine or local television station, and their objective is to build the best possible argument to convince media planners to use the medium they represent. (False; difficult; p. 230; LO1; AACSB Analytic Skills)

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76.

Media-buying services are independent companies that specialize in doing media research, planning, and buying. (True; moderate; p. 231; LO1; AACSB Analytic Skills) 77. Newspapers are primarily used by advertisers trying to reach a national market. (False; easy; p. 233; LO2; AACSB Communication) 78.

Newspapers can be classified by three factors: frequency of publication, format and size, and circulation. (True; moderate; p. 234; LO2) 79. Just over half of all newspapers use the broadsheet size. (False; moderate; p. 234; LO2) 80.

National advertisers are not heavy users of newspapers as an advertising medium because each paper has its own size guidelines for ads, making it impossible to prepare one ad that would fit every newspaper. (False; moderate; p. 235; LO2; AACSB Analytic Skills) 81.

The primary advertising revenue for newspapers comes from local retail advertising and classified advertising. (True; moderate; p. 234; LO2; AACSB Communication) 82. The dominant form of newspaper advertising is classified advertising. (False; moderate; p. 236; LO2; AACSB Communication) 83.

Advertisers who don’t care where their ads run in the newspaper pay the nonpreferred-position rate (NPR). (False; difficult; p. 236; LO2; AACSB Analytic Skills) 84.

One alternative that allows a national advertiser to pay the local rate is cooperative advertising with a local retailer. (True; easy; p. 235; LO2) 85.

One reason free-standing insert (FSI) advertising is growing is because it allows greater control over the reproduction quality of the advertisement. (True; moderate; p. 236; LO2; AACSB Analytic Skills) 86.

Newspaper readership tends to be highest among older people and people with a higher educational level and lowest among people in their late teens and early twenties. (True; easy; p. 236; LO2; AACSB Communication)

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87.

Newspapers obtain objective measures of newspaper circulation and readership by subscribing to the Auditing Bureau of Circulations (ABC) and/or MediaMark readership studies. (False; difficult; p. 236; LO2; AACSB Ethical Reasoning) 88.

A disadvantage of advertising in newspapers is that newspapers have a short life span because the ink rubs off and the paper is of low quality. (False; moderate; p. 249; LO2; AACSB Analytic Skills) 89.

The emergence of the Internet as a mechanism for delivering a newspaper is threatening to make printed newspapers, and thus the advertising within them, obsolete. (False; difficult; p. 237; LO2; AACSB Use of IT) 90.

The three main types of audiences that magazines target are consumer, business, and farm audiences. (True; moderate; p. 238; LO2; AACSB Analytic Skills) 91.

Business magazines target business readers and include trade papers, industrial magazines, and professional magazines. (True; moderate; p. 238; LO2; AACSB Analytic Skills) 92. A horizontal publication deals with a business function that cuts across industries. (True; moderate; p. 239; LO2; AACSB Analytic Skills) 93.

Selective binding allows a magazine to print personalized messages directly on ads or on inserts. (False; moderate; p. 240; LO2; AACSB Use of IT) 94. Magazine rates are based on the readership of the publication. (False; difficult; pp. 240-241; LO2; AACSB Analytic Skills) 95.

Starch is the industry leader in readership measurements, measuring readership for many popular national and regional magazines and issues reports to subscribers twice a year covering readership by demographics, psychographics, and product use. (False; difficult; p. 241; LO2; AACSB Analytic Skills) 96.

One advantage of advertising in magazines is that they have high reach potential because they are passed along to family, friends, customers, and colleagues. (True; easy; p. 249; LO2; AACSB Analytic Skills) 97.

The disadvantages of advertising in magazines are limited flexibility, lack of immediacy, high cost, and limited distribution. (True; moderate; p. 249; LO2; AACSB Analytic Skills)

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98. The Internet is proving to be a real threat to the existence of printed magazines. (False; difficult; p. 241; LO2; AACSB Use of IT) 99.

A package is the last ad a customer sees before making a decision on which brand to buy. (True; moderate; p. 249; LO3; AACSB Analytic Skills) 100.

Outdoor advertising includes everything from billboards to hot air-balloons, including ads on buses; posters on walls, telephone booths, and shopping kiosks; painted semi-trucks; taxi signs; and skywriting. (False; difficult; p. 242; LO3; AACSB Analytic Skills) 101. The two sizes of printed posters are 8 sheet and 20 sheet. (False; moderate; p. 244) 102.

The outdoor industry uses a system based on impressions, which refers to a standard unit for space sales based on the opportunity a person has to see a particular outdoor board. (False; moderate; p. 243; LO3; AACSB Analytic Skills) 103. One advantage of outdoor advertising is that it is a passive medium. (False; moderate; p. 249; LO3; AACSB Analytic Skills) 104.

Transit advertising is mainly an urban advertising form that places ads on vehicles such as buses and taxis that circulate through the community. (True; easy; p. 248; LO3; AACSB Analytic Skills) 105.

Directory advertising is described as directional advertising because it tells people where to go to get the product or service they want. (True; easy; p. 242; LO3; AACSB Analytic Skills)

GENERAL CONTENT—ESSAY QUESTIONS 106.

Define media mix and media vehicle.

Answer: There were several basic media concepts covered in the chapter, and students can answer any five of the following: (1) Media Mix—The way various types of media are strategically combined in an advertising plan. (2) Media Vehicle—A specific TV program (e.g., Today Show), newspaper (e.g., USA Today), magazine (e.g., Golf), or radio station or program (e.g., Rush Limbaugh). (moderate; p. 231; LO1; AACSB Reflective Thinking)

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107.

Explain the three main types of newspaper advertising. Answer:

Types of newspaper advertising: (1) Classified Advertising—Advertising by individuals to sell their personal goods and advertising by local businesses. These ads are arranged according to their interest to readers, such as “Help Wanted,” “Real Estate for Sale,” and “Cars for Sale.” (2) Display Advertising—Can be any size and can be placed anywhere in the newspaper except the editorial page. Display advertising is further divided into two subcategories: local (retail) and national (general). (3) Supplements—Syndicated, meaning an independent publisher sells its publications to newspapers throughout the country, or they are local fullcolor advertising inserts that appear throughout the week and especially in the Sunday edition of newspapers. A free-standing insert (FSI) is the set of advertisements, such as the grocery ads, that are inserted into the newspaper. (moderate; p. 236; LO2; Reflective Thinking) 108.

Explain three advantages and three disadvantages of advertising in magazines. Answer: Students can discuss any three advantages of magazines: (1) Target Audiences—Ability of magazines to reach specialized audiences. (2) Audience Receptivity—The editorial environment of a magazine lends authority and credibility to the advertising. (3) Long Life Span—People tend to read magazines at a comparatively slow rate, typically over a couple of days, so they offer an opportunity to use detailed copy. In addition, magazines have high reach potential because they are passed along to others. (4) Format—Allows creative advertising variety through multiple pages, inserts, and other features. (5) Visual Quality—Excellent because they are printed on high-quality paper that provides superior photo reproduction. (6) Messages—good for complex messages

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Students can discuss any three disadvantages of magazines: (1) Limited Flexibility—Ads must be submitted well in advance of the publication date. (2) Lack of Immediacy—Some readers do not look at an issue of a magazine until long after it comes to them, so the ad may take a long time to have an effect on the reader. (3) High Cost—Rates are quite high; however, magazines with carefully segmented audiences can be cost-efficient because they reach a tightly targeted audience. (4) Distribution—Sometimes limited. Many of the different magazines that exist typically are not distributed to a broad spectrum of potential audience members. (moderate; p. 249; LO2; Reflective Thinking) 109.

Describe how outdoor advertising space is purchased. Answer:

The industry uses a system based on showings, which refers to a standard unit for space sales based on the opportunity a person has to see a particular outdoor board. This is typically based on a traffic count, that is, the number of vehicles passing a particular location during a specified period of time. For example, if three posters in a community of 100,000 people achieve a daily exposure to 75,000 people, the result is a 75 showing. Advertisers can purchase any number of units (75, 50, or 25 showings daily are common quantities). Boards are rented for 30-day periods, with longer periods possible. Painted bulletins are bought on an individual basis, usually for one, two, or three years. (moderate; p. 245; LO3; AACSB Reflective Thinking) 110.

Explain how directory advertising is different from brand-image advertising. Answer:

Directory advertising is described as directional advertising because it tells people where to go to get the product or service they want. The key difference between directional advertising and brand-image advertising is that directory advertising reaches prospects, people who already know they have a need for the product or service; brand-image advertising seeks to create a need. Directory advertising is the main medium that prospects consult once they have decided to buy something they need or want. (moderate; pp. 241-242)

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APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

Michelle is a specialist in media planning. She tells clients about media trends in the future. She often talks about the digitization of media, in which all mass media save and transmit information through the same digital forms. The integration of the media work through and with each other. What media trend is Michelle discussing? a. Interactivity b. Engagement c. Convergence d. Commodization e. Cadence (c; moderate; p. 223) 112.

How did Apple initially announce the new product news about the iPod and iTunes? a. CEO Steve Jobs announced the new product news and created the initial buzz that started an effective word-of-mouth campaign among music and computer fans. b. Apple launched a combination of iconic print advertising and posters, creatively presenting the digital player, and its player, as cool. c. Apple spent $9 million on television advertising. d. Apple used a combination of TV shows, billboards, and mainstream print magazines to initially launch the iPod. e. Apple allowed consumers to download 20 free songs with each purchase of an iPod. (a; moderate; p. 225) 113.

In which medium did advertisers spend the most in 2003, 2004, and 2005? a. newspapers b. magazines c. television d. radio e. outdoor (c; easy; p. 230 [Table 8.2]) 114.

June’s job at an advertising agency entails identifying and selecting media options based on research into the audience profiles of various media as well as scheduling and budgeting. What is June’s job responsibility? a. media planning b. media buying c. account planning d. account management e. message development (a; easy; p. 230-231; LO1; AACSB Communication)

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115.

Lisa works at a major advertising agency and is an expert in the television schedule for eight major markets in the United States. Her job entails identifying specific television shows that will deliver the desired audience for her agency’s client, negotiating the costs to advertise in them, and handling the details of billing and payment. What is Lisa’s job title? a. media planner b. media buyer c. account planner d. creative director e. account manager (b; easy; p. 231; LO1; AACSB Analytic Skills) 116.

Honda is launching its new Ridgeline truck and wants to expose the largest percentage of the prime time TV viewing audience as possible to their message at least once during the next six months. Which media concept is Honda trying to maximize? a. frequency b. impressions c. reach d. circulation e. HUTs (c; moderate; p. 232; LO1; AACSB Analytic Skills) 117.

How many different types of advertising are available to advertisers using newspapers as an advertising medium? a. 10 b. 25 c. 3 d. 150 e. 250 (c; difficult; p. 236; LO1)

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118.

A national advertiser would like to advertise more in newspapers, but there is a substantial rate differential between national advertisers purchasing the same ad size as local retailers, and, on average, the national advertisers must pay more than 60 percent more for the same space. What can a national advertiser do to avoid this rate differential? a. Use the “one-order, one-bill” ordering system because they’ve negotiated the rates down to the local rates. b. Use the “co-op” ordering system because they’ve negotiated the rates down to the local rates. c. Advertise only in larger cities because newspapers in those markets do not charge a rate differential. d. Use co-op advertising, which is an arrangement between an advertiser and a retailer whereby the retailer buys the ad at the local rate and the advertiser reimburses some or all of the costs. e. There’s really nothing a national advertiser can do to avoid the higher rate. (d; moderate; p. 235; LO2) 119.

Procter & Gamble is a major user of consumer coupons and prefers to deliver them to consumers through newspaper advertising. P&G is very concerned about the reproduction quality of the advertisements, wants to command more attention than just another ad in the paper, and wants to place different ads in different markets. Which type of newspaper advertising will meet P&G’s needs? a. classified b. display c. supplements d. co-op e. promotional (c; moderate; p. 236; LO2; AACSB Analytic Skills) 120.

The ________is the most important change that has occurred over the last twenty years discussed in Media Explosion in A Matter of Practice. a. internet b. newspaper. c. television d. magazine e. billboard (a; moderate; p. 229; LO1; AACSB Use of IT)

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121.Dole, the fresh banana, juice, and canned fruit company, began testing a glossy magazine, Dole Fresh Choices, in the banana section of a grocery store in Houston and has plans for more widespread distribution. The magazine offers women-targeted articles on health and nutrition. Which magazine classification best describes this magazine? a. geography b. editorial content c. physical characteristics d. ownership e. distribution (d; difficult; p 239; LO2; AACSB Analytic Skills) 122.

Recently, advertisers were upset because, apparently, some magazines were reporting circulation figures to be higher than they actually were. Why do you think advertisers were upset? a. Any negative publicity for a magazine will reflect poorly on their brands because they are supporting that publication. b. Falsifying circulation figures will hinder future distribution for a magazine. c. Inflated circulation figures by just a few publications make the entire industry suspect. d. Magazine advertising rates are based on circulation figures. e. It generated negative publicity among consumers, which are the advertisers’ target market. (d; difficult; pp. 240-241; LO2) 123.

The outdoor board on the side of the highway with the message telling drivers that the Holiday Inn Express is at the next exit illustrates which advantage of outdoor advertising? a. high-impact medium offering larger-than-life visuals, on a hard-to-ignore structure b. directional medium c. lack of flexibility d. reinforce a creative concept employed in other media e. least expensive of all major media (b; easy; p. 249; LO3; AACSB Analytic Skills) 124.

Media buyers must be aware of how mass media is changing. Which of the following is NOT one of the 5 trends discussed in The Future of Media in Advertising in the Part 3 introduction? a. convergence b. interactivity c. engagement d. commoditization e. newspaper selectivity (d; moderate; pp. 222-223; LO1; AACSB Reflective Thinking)

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What is the issue discussed in the “Hands-On: Next Month’s Magazine Issue: Credibility” case at the end of chapter 8? a. The issue discussed is the controversy surrounding brand information being integrated into the content of newspaper stories. b. The issue discussed is the controversy surrounding brand information being integrated into the content of magazine articles. c. The issue discussed is the controversy of digital billboards being used by outdoor companies without providing adequate measurement of the showings gained by advertisers. d. The issue discussed is the fact that newspapers hold back the bad or controversial news they should be reporting to the public but withhold because the news concerns one of their major advertisers. e. The issue discussed is the use of anorexic-looking models in advertising appearing in women’s fashion magazines. (b; moderate; p. 253; LO2; AACSB Ethical Reasoning) 125.

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Allison works in the media department of a major advertising agency that has several national advertisers as clients. Her responsibilities include identifying specific media vehicles, such as TV programs, newspapers, magazines, or radio programs and stations for their clients’ advertising, negotiating the costs to advertise in them, and handling the details of billing and payment. Although one of their major clients advertises primarily in magazines, the media plan calls for the use of newspaper advertising as well. 126.

Mini-Case Question. What is Allison’s job function? a. media planning b. rate negotiator c. media buyer d. account planner e. account buyer (c; moderate; p. 231; LO1; AACSB Reflective Thinking) 127.

Mini-Case Question. The media plan calls for placing ads in all the major newspapers in the southeastern United States. Because newspaper is primarily a local medium, Allison seeks the services of a professional to assist her in placing the buy with one order. What are the people or companies that sell space (in print) and time (in broadcast) for a variety of media known as? a. media salespeople b. customer service reps c. media reps d. media-buying services e. media consolidators (c; moderate; p. 230; LO1; AACSB Reflective Thinking)

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128.

Mini-Case Question. If the advertiser doesn’t care where its ads run in the newspaper, what rate will Allison request for her client? a. classified rate b. display rate c. supplement rate d. run-of-paper (ROP) rate e. differential rate (d; moderate; p. 236; LO2) 129.

Mini-Case Question. The media plan also calls for magazine advertising, and the creative execution will have the color extend to the edge of the page. What type of page will Allison need to purchase? a. gatefold b. back cover c. double-page spread d. bleed e. gutterless (d; moderate; p. 240; LO2; AACSB Reflective Thinking) 130.

Mini-Case Question. Allison learns that one magazine that she is considering for her client combines information on subscribers kept in a database with a computer program to produce magazines that include special sections for subscribers based on their demographic profiles. What is this known as? a. selective binding b. relationship management c. segmented distribution d. ink-jet imaging e. satellite transmission (a; moderate; p. 240; LO2; AACSB Use of IT)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

Describe the media strategy used by Apple when launching the iPod. Answer:

Apple CEO Steve Jobs announced the new product news and created the initial buzz that started an effective word-of-mouth campaign among music and computer fans. This public relations effort was successful with more than 6,000 iPod and iTunes stories in major publications around the world. Apple then launched a combination of iconic print advertising and posters, creatively presenting the digital player, and its player, as cool. The print campaign was followed by an equally interesting television campaign using the same graphic images as the print ads. (moderate; p. 225; LO1; AACSB Reflective Thinking)

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132.

Rank the following media from most to least ad spending in 2003: outdoor, television, directories, magazines, newspapers, radio, and Internet. Answer:

In terms of 2003 ad spending by medium ranked from highest to lowest: (1) television (2) newspaper (3) magazine (4) directories (5) radio (6) Internet (7) outdoor (Note: there was also an “other” category that ranked between newspapers and magazines.) (difficult; p. 228 [Table 8.1]) 133.

Explain what is meant by the term media vehicle, and give an example for each major advertising medium. Answer:

A media vehicle is a specific TV program (e.g., 60 Minutes, The Apprentice), newspaper (e.g., New York Times, Wall Street Journal), or radio station or program (e.g., NPR’s All Things Considered, Rush Limbaugh’s talk show). (easy; p. 231; LO1) 134.

Jane is teaching an undergraduate introductory advertising course and is trying to explain the difference between reach and frequency. How should Jane explain these terms, and what is the goal of a media plan with respect to these two terms? Answer:

The goal of most media plans is to reach as many people in the target audience as often as the budget allows. Reach is the percentage of the media audience exposed at least once to the advertiser’s message during a specific time frame. Frequency refers to the number of times a person is exposed to the advertisement. Different media have different patterns of frequency, as well as different patterns of reach. (easy; p. 232; LO1; AACSB Reflective Thinking)

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135.

Four college roommates who were advertising majors are now in New York working in the advertising industry. John is a media planner, Carl is a media buyer, George is a media researcher, and they all work at the same advertising agency. Chuck works at a media-buying service and jokes that he will be taking over all of their jobs. Describe how all their jobs are different and why Chuck can make the joke he did. Answer: John, the media planner, makes the strategic decisions outlined in the media plan, such as identifying and selecting media options based on research into the audience profiles of various media, and his responsibilities also include scheduling and budgeting. Carl, the media buyer, implements the media plan. Media buying is the task of identifying specific vehicles, such as TV programs or magazines, negotiating the costs to advertise in them, and handling the details of billing and payment. George, the media researcher, compiles audience measurement data, as well as media costs and availability data for the media options being considered by media planners.

Chuck, who works at a media-buying service, specializes in doing media research, planning, and buying. These agencies are taking over the media role that used to be the responsibility of advertising agency media staff. In many cases, they are the media department that spun off from a full-service agency, such as the one in which his college buddies are employed. (moderate; p. 231; LO1; AACSB Reflective Thinking) 136.

Your friend is confused about the terms impression and circulation. What would you say to help him understand the difference in these concepts? Answer:

An impression is one person’s opportunity to be exposed one time to an ad in any media vehicle. Impressions can be added up as a measure of the size of the audience either for one medium or for a combination of vehicles in a media mix as estimated by media research. The idea of impressions is different from circulation, because impressions (in print) estimate the actual readership, rather than just circulation, which refers to copies sold. For example, a magazine may have a circulation of 1 million but it might be read, on the average, by 2.5 people per issue, resulting in an estimate of impressions for that issue of 2.5 million. If the ad ran in three consecutive issues, then the estimate of total impressions, or gross impressions, would be 7.5 million. (moderate; p. 232; LO1; AACSB Reflective Thinking)

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137.

Claire is training to become a media buyer at an advertising agency. Describe what she should know regarding daily and weekly newspapers and national advertisers’ use of each. Answer: Most newspapers are published either daily or weekly. Daily newspapers usually are found in cities and larger towns, and have morning editions, evening editions, or all-day editions. Approximately 30 percent of the dailies and a few of the weeklies also publish a Sunday edition, which is usually much thicker and contains a great deal of news, advertising, and special features. For a media planner, it is useful to know that consumers spend twice as much time with the Sunday edition as with the daily edition, suggesting that to be the best placement for many local advertisers. However, the Sunday paper is more cluttered with competitive advertising. Many national advertisers use supplements, particularly on Sunday. Weekly papers appear in towns, suburbs, and smaller cities where the volume of hard news and advertising is insufficient to support a daily newspaper. These papers emphasize the news of a restricted area, reporting local news in depth but tending to ignore national news, sports, and similar subjects.

National advertisers often shun weeklies and are not heavy advertisers in daily papers. They use local papers indirectly through advertising placed by local retailers (e.g., co-op advertising), dealers, and franchisees. (moderate; pp. 234-235; LO1; AACSB Reflective Thinking) 138.

How has the information and communication technology contributed to the Media Explosion in A Matter of Practice? Answer:

There was an explosion of new products developed since 1985 including TiVo, cell phones, text messaging, Blackberrys, voicemail, faxes that have changed the way people communicate. The Internet is the main link to most information and communication. Many Web sites, blogs, weblogs, and specialty sites are created each day. (moderate; p. 229; LO1; AACSB Use of IT)

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139.

Laurie was with her toddler in the hair care aisle of Wal-Mart. Her daughter saw a bottle of shampoo that had a Winnie-the-Pooh head on the top and begged for it because she wanted to “pway wiff Pooh!” Laurie purchased it for her daughter even though it cost almost three times as much as a similar shampoo that wasn’t in a cute bottle. Why do you think Laurie did this? Answer:

The package can also deliver customer benefits; in this case, Laurie’s daughter perceived it as a toy. (moderate; p. 249; LO3; AACSB Reflective Thinking) 140.

To announce the expansion of a Louis Vuitton flagship store in the center of Hong Kong’s luxury shopping district, the marketer made a building resemble an LV hard-case canvas trunk, with brass fittings and a cherry monogram print from their summer collection. The 3D ad is 26 feet high and 151 feet by 59 feet wide. Describe the type of advertising medium this represents and the advantages of it. Answer:

Out-of-home advertising includes everything from billboards to hot-air balloons, and a building fits in this category. This probably best represents a painted bulletin with the entire building being the medium. Students could probably also discuss this as an “on-premise sign” since the entire building is really a sign. (moderate; pp. 242, 244; LO3; AACSB Reflective Thinking) 141.

Seasons is a new restaurant opening in town, and the owners know they should advertise to attract customers. Based on what you learned in this chapter, recommend some media options for this restaurant. Answer:

Students can answer a variety of ways, but their answers should demonstrate knowledge of the print media concepts covered in this chapter. For example, because this is a local restaurant, newspapers, out-of-home, and directory advertising would be most appropriate. (moderate; p. 249; AACSB Reflective Thinking)

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142.

Carla works in the student activities office of her university and was given the task of finding a way to better inform students of upcoming activities and events. It’s a rather large university with a bi-weekly newspaper. Give Carla some suggestions on how she might accomplish this. Answer:

Because Carla is trying to reach a targeted audience, students attending the university, she needs to determine the best media to reach them. One obvious media vehicle is the student newspaper. Another medium that might be useful is out-of-home media, such as kiosks and posters. Also, if there is a bus route through the campus, transit advertising, both interior and exterior, would be appropriate. (easy; p. 249; AACSB Reflective Thinking) 143.

Media buyers must be aware of how mass media is changing. What are the 5 trends discussed in The Future of Media in Advertising in the Part 3 introduction?

Answer: The 5 trends discussed in The Future of Media in Advertising in the Part 3 introduction are convergence, interactivity, engagement, commoditization, and cadence. (moderate; pp. 222-223; LO1; AACSB Analytical Skills) 144.

You are working at a summer job selling advertising space for the campus telephone directory. Some of the businesses you call on, even those that currently advertise in the directory, are reluctant because they don’t see the benefit of advertising in this media vehicle. Provide some advantages of directory advertising that might help persuade these advertisers. Answer:

Directories offer several advantages for advertisers: (1) Shopping Medium—Consumers initiate the search process when they have a need or want. (2) Price—Inexpensive and provides a return on investment of 1:15; every dollar spent on a directory ad produces $15 in revenue. (3) Flexibility—With respect to size, colors, and formats. (4) Long Life. (easy; p. 249; LO2; AACSB Reflective Thinking)

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145.

The “Hands On” case at the end of the chapter discusses the boundary between editorial content and advertising in magazines. Discuss both sides of this issue. Answer: At most newspapers and magazines there is a boundary that cannot be crossed— the one that exists between the news or feature stories created by the publication’s writers and the advertising. Publications work hard to convince readers that advertising revenue does not drive story selection, the flavor or scope of news coverage, or critical reviews and recommendations. That independence has long been viewed as a lynchpin for the credibility of a publication’s articles. Although newspapers and magazines have fought to maintain the independence of the product from the influence of advertising, there are some instances where that independence is weakening. For example, Country Living Magazine ran an eightpage insert advertisement for Expo Design Center adjacent to a story describing how Expo helped remake a kitchen, and Playboy ran ads for Tommy Hilfiger featuring playmates modeling the designer’s clothes.

These practices raise some concerns about whether they follow the guidelines of the American Society of Magazine Editors for separating ads from content. But with advertisers pressuring print vehicles to be more accommodating in a competitive marketplace, magazines may have a hard time saying no. One rationale provided for why they should say no pointed out the fact that readers have a personal relationship with magazines, and product placement runs the risk of undermining that special relationship. (moderate; p. 253; LO1; AACSB Ethical Reasoning)

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Haley and Lauren, who recently graduated with MBAs, are opening a new shoe boutique, called The Pampered Soul, in Hattiesburg, Mississippi, which is classified as a Metropolitan Statistical Area (MSA) with more than 100,000 people, and it’s also home of The University of Southern Mississippi. They will offer national brands of shoes that are not available in the department stores in the mall, and their primary target market will be women ages 18 to 35. They’ve rented a location on the main street in front of the USM campus. The owners realize that most of their business will come from a five-mile radius and want to limit their advertising to those potential customers. They have a modest budget for advertising, so they want to get as much out of it as they can.

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146.

Mini-Case Question. Haley and Lauren are thinking about advertising in the local newspaper, the Hattiesburg American, but they don’t have a basic understanding of advertising in newspapers. Provide a brief overview of the types of advertising in newspapers, noting which would be most appropriate for them, and how they can learn of the prices for advertising space. Answer: There are three types of advertisements found within the local newspaper: classified, display, and supplements. Classified advertising is usually done by individuals to sell their personal goods as well as by local businesses and is arranged according to their interest to readers. The dominant form of newspaper advertising is display advertising, which can be any of the standard 56 sizes and placed anywhere in the paper except the editorial page. Finally, newspaper supplements can carry both national and local advertising and are usually produced by independent publishers that sell their publication to newspapers. Display advertising would be most appropriate for this business.

The pricing for newspaper advertising is sold based on the size of the space used. The charges are published on rate cards, which is a list of the charges for advertising space and the discounts given to local advertisers and to advertisers who make volume buys. (moderate; p. 236; LO2; AACSB Reflective Thinking) 147.

Mini-Case Question. Haley and Lauren recall learning something in their marketing class about an arrangement between manufacturers of national brands and local businesses with respect to advertising. Name and describe this arrangement. Answer:

This arrangement is referred to as cooperative (co-op) advertising. This is an alternative that allows the national advertiser to pay the local rate. It is an arrangement between the advertiser and the retailer whereby the retailer buys the ad and then the manufacturer pays half—or a portion depending on the amount of space the manufacturer’s brand occupies. (easy; p. 235; LO2; AACSB Reflective Thinking)

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148.

Mini-Case Question. Haley and Lauren want to hold a special event for the USM college women in an attempt to get them into their store. Would advertising in the local newspaper be a good advertising medium to make them aware of the special event? Why or why not?

Answer: No, because one of the disadvantages of newspapers is limited coverage of certain groups. Although newspapers have wide market coverage, certain market groups are not frequent readers. The under-20 age group and college students are not frequent readers of newspapers, but the campus newspaper might be a good option. (easy; p. 249; LO2; AACSB Reflective Thinking) 149.

Mini-Case Question. Discuss some out-of-home advertising vehicles that might be appropriate for this business. Answer:

The out-of-home vehicles appropriate for this business could include outdoor advertising, such as billboards, an on-premise sign, posters (perhaps around campus), kiosks (if available on campus, for example), and perhaps transit advertising. (moderate; pp. 242–248; LO3) 150.

Mini-Case Question. Finally, Haley and Lauren want to make sure that customers know how to find their business. Which medium is most appropriate for providing consumers information on where to purchase the shoes they are looking for? Answer:

Directory advertising, because it is directional advertising telling people where to go to get the product or service they want. Haley and Lauren could purchase an ad in the Yellow Pages, which lists all local and regional businesses that have a telephone number. They could also advertise in a specialty directory, such as the campus directory. (easy; pp. 241-242; LO2; AACSB Reflective Thinking)

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GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

Broadcast media does NOT include which of the following? a. radio b. television c. Internet d. magazines e. film (d; easy; p. 256) 2.

Which of the following statements is false regarding broadcast media? a. Broadcast media are dynamic and bought by amount of time, such as seconds or minutes. b. Broadcast media messages are fleeting. c. Broadcast engages more senses than reading and adds audio as well as motion for television. d. Radio has suffered substantially with the advent of television, and advertising revenues continue to fall. e. Traditional radio stations are found on the AM/FM dial and serve a primarily local market. (d; moderate; p. 257; LO1; AACSB Communication) 3.

Which of the following is NOT part of the structure of the radio industry? a. public radio b. satellite radio c. cable radio d. AM/FM radio e. film (e; moderate; pp. 257-258; LO1; AACSB Communication) 4.

___________ uses cable television receivers to deliver static-free music via wires plugged into cable subscribers’ stereos. a. Satellite radio b. Cable radio c. Low-power FM (LPFM) d. Web radio e. Public radio (b; moderate; p. 258; LO1; AACSB Use of IT)

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________ can deliver the same radio stations, regardless of where the listener is in the continental United States. a. Satellite radio b. Cable radio c. Low-power FM (LPFM) d. AM/FM radio e. Public radio (a; moderate; p. 258; LO1; AACSB Communication) 6.

Nonprofit, noncommercial radio stations that serve a small market with reach of 3 to 5 miles that are not allowed to carry advertising are known as ________. a. cable radio b. public radio c. AM/FM radio d. low-power FM (LPFM) e. web radio (d; moderate; p. 258; LO1) 7.

________ provides Webcasting, which is audio streaming through a web site. a. Satellite radio b. Cable radio c. Low-power FM (LPFM) d. Web radio e. Public radio (d; easy; p. 258; LO1; AACSB Use of IT) 8.

Which advertising medium has the power to engage the imagination and communication on a more personal level than other forms of media? a. radio b. television c. magazines d. newspapers e. outdoor (a; moderate; p. 260; LO1; AACSB Communication) 9.

Commercials set to music are known as ________. a. musicals b. lyricals c. jingles d. dual-coded e. memorables (c; moderate; p. 260; LO1; AACSB Communication)

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10.

Which is the largest category of radio advertising revenues? a. network b. spot c. local d. satellite e. web (c; moderate; p. 257; LO1) 11.

________ radio is a group of local affiliates connected to one or more national networks through telephone wires and satellites. a. Network b. Spot c. Local d. AM e. FM (a; easy; p. 260; LO1) 12.

In which type of radio advertising does an advertiser place an advertisement with an individual station? a. network b. spot c. local d. AM e. FM (b; moderate; p. 261; LO1) 13.

________ radio advertising offers advertisers a variety of high-quality, specialized, and usually original programs. a. Spot b. Syndicated c. Cooperative d. National e. Off-network (b; moderate; p. 262; LO1; AACSB Communication) 14.

Which of the following is NOT a segment into which radio listeners can be separated? a. station fans b. radio fans c. music fans d. talk fans e. news fans (d; difficult; p. 259; LO1; AACSB Analytic Skills)

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15.

The largest segment of radio listeners is known as ________. a. station fans b. radio fans c. music fans d. talk fans e. news fans (a; difficult; p. 259; LO1; AACSB Analytic Skills) 16.

The typical radio programming day is divided into five segments called ________. a. listener groups b. drive times c. coverages d. ratings e. dayparts (e; easy; p. 259; LO1) 17.

________ is the number of homes in a geographic area that are able to pick up a station clearly, whether those homes are actually tuned in or not. a. Circulation b. Coverage c. Rating d. Impression e. Gross impression (b; moderate; p. 259; LO1; AACSB Analytic Skills) 18.

________ measures the percentage of homes actually tuned in to a particular radio station. a. Circulation b. Coverage c. Rating d. Impression e. Gross impression (c; moderate; p. 259-260; LO1) 19.

Which of the following is NOT a factor affecting the rating for a particular radio station? a. traffic b. competing programs c. types of programs d. time of day or night e. types of programs and competing programs (a; difficult; p. 260; LO1)

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20.

Which of the following provides radio audience ratings for more than 250 markets in the United States? a. Arbitron b. RADAR c. A.C. Nielsen d. Simmons e. MediaMark (a; moderate; p. 260; LO1; AACSB Analytic Skills) 21.

How does Arbitron collect consumers’ radio listening behavior? a. They call 12,000 respondents for seven consecutive days and ask them about their radio listening the day before. b. Have of the sample complete a seven-day self-administered diary and the other half is called for those seven days and asked about their radio listening the day before. c. Electronic devices are mounted on roadways that intercept which radio stations passing cars are tuned in to. d. They use a seven-day self-administered diary that the person returns to Arbitron at the end of the week. e. Respondents agree to hook an electronic monitoring device on all of their radios for a seven-day period to record which stations the radios are tuned in to. (d; moderate; p. 260; LO1; AACSB Analytic Skills) 22.

Which company provides audience-rating services for network radio listening? a. Arbitron b. RADAR c. A. C. Nielsen d. Simmons e. MediaMark (b; moderate; p. 260; LO1) 23.

Which of the following is NOT an advantage of advertising on radio? a. target audiences b. affordability c. frequency d. mental imagery e. listener inattentiveness (e; easy; p. 279; LO1; AACSB Analytic Skills)

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24.

Which of the following is NOT an advantage of advertising on radio? a. targeted audiences b. high level of acceptance c. scheduling and buying simplicity d. frequency e. flexibility (c; difficult; p. 279; LO1; AACSB Analytic Skills) 25.

Which of the following are ways radio provides targeted audiences for advertisers? a. specialized programming b. different parts of the country c. different times of day d. a and b e. a, b, and c (e; difficult; p. 262; LO1; AACSB Analytic Skills) Which advertising medium has been called the “theater of the mind”? a. magazines b. radio c. newspapers d. television e. outdoor (b; easy; p. 262; LO1; AACSB Communication) 26.

27.

Which of the following is considered a disadvantage of radio advertising? a. listener inattentiveness b. lack of visuals c. lack of control d. scheduling and buying difficulties e. all of the above (e; easy; p. 279; LO1; AACSB Analytic Skills) 28.

Which of the following is NOT a disadvantage of radio advertising? a. listener inattentiveness b. scheduling and buying difficulties c. lack of control d. clutter e. pervasive (e; moderate; p. 279; LO1; AACSB Analytic Skills)

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29.

A broadcast ________ exists whenever two or more television stations are able to broadcast the same program that originates from a single source. a. alliance b. syndication c. network d. monopoly e. primacy (c; easy; p. 264; LO2; AACSB Communication) 30.

According to the Federal Communications Commission (FCC), a program service with 15 or more hours of prime time programming per week between the hours of 8 and 11 p.m. is known as a(n) ________. a. affiliate b. syndicate c. cable provider d. network e. program provider (d; moderate; p. 264; LO2; AACSB Communication) 31.

With respect to the structure of the TV industry, which of the following is NOT considered a television option advertisers can use to deliver their messages to audiences? a. network television b. specialty television c. program syndication d. cable television e. regional television (e; difficult; p. 264; LO2; AACSB Communication) 32.

Which of the following is NOT a national, over-the-air television network in the United States? a. Entertainment and Sports Programming Network (ESPN) b. American Broadcasting Company (ABC) c. Columbia Broadcasting System (CBS) d. National Broadcasting Company (NBC) e. Fox Broadcasting (a; moderate; p. 264; LO2; AACSB Communication)

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33.

Privately owned television stations that have a contractual relationship with a broadcasting company are known as a(n) ________. a. network b. subscriber c. affiliate d. syndicate e. interconnect (c; moderate; p. 264; LO2; AACSB Communication) 34.

What is it called when an advertiser purchases only a portion of a network’s coverage? a. regional leg b. zoned exposure c. fragmented exposure d. regional exposure e. affiliate leg (a; difficult; p. 265; LO2; AACSB Communication) 35.

What was the initial purpose of cable television? a. to offer consumers commercial-free programming b. to expand the market for syndicated programming c. to improve reception in certain areas of the country, particularly mountainous regions and large cities d. to allow highly targeted special-interest programming options e. to increase opportunities for advertisers to reach their target markets (c; difficult; p. 265; LO2; AACSB Use IT) 36.

What is the most familiar example of subscription television? a. satellite TV b. TiVo c. Interactive d. cable e. syndication (d; easy; p. 265; LO2) 37.

WTBS-Atlanta, WGN-Chicago, and WWOR-New York are all independent television stations whose programs are carried by satellite to cable operators, and they are known as ________. a. cable networks b. superstations c. broadcast networks d. affiliates e. syndicated networks (b; moderate; p. 266; LO2; AACSB Use of IT)

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38.

Cable New Network (CNN), the Disney Channel, and the Entertainment and Sports Programming Network (ESPN) are known as ________. a. cable networks b. superstations c. broadcast networks d. affiliates e. syndicated networks (a; moderate; p. 266; LO2) 39.

________ scheduling runs commercials across the entire subscriber group simultaneously. a. Network cable b. Local cable c. Interconnects d. Satellite e. Superstation (a; moderate; p. 266; LO2) 40.

A special cable technology that allows local or regional advertisers to run their commercials in small geographic areas through the interconnection of a number of cable systems is known as ________. a. network cable b. local cable c. interconnects d. satellite transmission e. syndication (c; moderate; p. 266; LO2; AACSB Use of IT) 41.

Local television stations that are not affiliated with a network are known as ________. a. disconnects b. interconnects c. spot stations d. syndicated stations e. independent stations (e; easy; p. 266; LO2) 42.

________ are when national advertisers buy local advertising on a city-by-city basis from local television stations. a. Independent buys b. Spot buys c. Specialty buys d. Limited buys e. Regional legs (b; moderate; p. 266; LO2; AACSB Analytic Skills)

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43.

Commercial messages that are allowed on public television are known as ________. a. participations b. spot buys c. syndicated buys d. philanthropy e. program sponsorships (e; moderate; p. 266; LO2; AACSB Communication) 44.

Which of the following is NOT considered a programming option or distribution format available to television stations as well as to advertisers? a. pay-per-view b. sponsorships c. program syndication d. digital video recorders (DVR) e. high-definition TV (HDTV) (b; difficult; pp. 266-267; LO2) 45.

Multipoint distribution systems (MDS) used by hotels to provide guests with movies and other entertainment are an example of which type of television programming option? a. low power b. pay-per-view c. program syndication d. interactive television e. high-definition TV (HDTV) (a; moderate; p. 267; LO2; AACSB Communication) 46.

Television programs purchased by local stations to fill time in open hours are known as ________. a. syndicated programs b. network programs c. cable programs d. pay-per-view programs e. fringe programs (a; moderate; p. 267; LO2) 47.

What are the two types of syndicated programs? a. primary and secondary b. rerun and first-run c. specialty and commercial-free d. off-network and first-run e. wired and unwired (d; moderate; p. 267; LO2)

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48.What is causing growth in interactive television? a. syndication b. digital video recorders c. high-definition TV d. narrowcasting e. broadband (e; moderate; p. 267; LO2; AACSB Use of IT) 49.

Recording television programs without the hassles of videotape, letting users pause, do instant replays, and begin watching programs even before the recording has finished is known as ________. a. broadband b. high-definition TV c. time-shifting d. interactive television e. syndication (c; moderate; p. 267; LO2; AACSB Use of IT) 50.

What technology allows users to record television programs without the hassles of videotape, letting users pause, do instant replays, and begin watching programs even before the recording has finished? a. interactive TV b. high-definition TV c. digital video recorders d. broadband recorders e. digital enhancers (c; moderate; p. 267; LO2; AACSB Use of IT) 51.

Which of the following is NOT a type of network television advertising alternative? a. sponsorship b. participations c. product placement d. local spot announcements e. national spot announcement (c; difficult; p. 271; LO2) 52.

In which type of network television advertising does the advertiser assume the total financial responsibility for producing the program and providing the accompanying commercials? a. participations b. spot announcements c. dayparts d. sponsorships e. product placement (d; moderate; p. 271; LO2; AACSB Communication)

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53.

Which of the following type of network television advertising is the dominant form, representing more than 90 percent of all network advertising? a. participations b. spot announcements c. dayparts d. sponsorships e. product placement (a; moderate; p. 271; LO2) 54.

In which type of network television advertising does the advertiser pay for 10, 15, 20, 30, or 60 seconds of commercial time during one or more programs? a. participations b. spot announcements c. dayparts d. sponsorships e. product placement (a; moderate; p. 271; LO2) 55.

Which type of network television advertising provides advertisers more flexibility in market coverage, target audiences, scheduling, and budgeting? a. participations b. spot announcements c. dayparts d. sponsorships e. product placement (a; difficult; p. 271; LO2) 56.

Which type of television advertising appears in the breaks between programs, which local affiliates sell to advertisers who want to show their ads locally? a. participations b. spot announcements c. dayparts d. sponsorships e. product placement (b; moderate; p. 272; LO2; AACSB Analytical Skills) 57.

At what level does A. C. Nielsen measure the television audience demographics? a. local and national b. national c. network and local d. local and spot e. in-home and out-of-home (b; difficult; p. 270; LO2)

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58.

An instrument that records what shows are being watched is a(n) ________. a. people meter b. audiometer c. tv meter d. frequency meter e. viewing meter (a; easy; p. 270; LO2; AACSB Use of IT) 59.

What does one television rating point represent? a. 1 percent of the TV viewing audience b. 1,000 TV households c. 1,000,000 TV households d. 1,000 TV viewers e. 1 percent of the nation’s TV households (e; difficult; p. 269; LO2; AACSB Analytical Skills) 60.

Which of the following statements is true regarding television ratings and share? a. Share refers to the percentage of viewers based on the number of TV households. b. The share figure is always larger than the rating. c. Rating refers to the percentage of viewers based on the number of sets turned on. d. The rating figure is always larger than the share. e. There is no difference between rating and share as the two terms are synonymous. (b; difficult; p. 269; LO2; AACSB Analytical Skills) 61.

Which term refers to the percentage of viewers based on the number of television sets turned on? a. rating b. share c. gross rating points d. gross share points e. impressions (b; moderate; p. 269; LO2; AACSB Communication) 62.

The sum of the total exposure potential (i.e., total ratings) expressed as a percentage of the audience population is called ________. a. rating b. share c. rating points d. gross share points e. impressions (c; moderate; p. 269; LO2; AACSB Analytical Skills)

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63.

An instrument that records what television shows are being watched, the number of households that are watching, and which family members are viewing is known as a(n) ________. a. people meter b. audiometer c. tv meter d. frequency meter e. viewing meter (a; moderate; p. 270; LO2; AACSB Use of IT) 64.

Which of the following is considered an advantage of advertising on television? a. cost-efficiency b. low production costs c. minimal clutter d. intrusiveness e. all of the above (a; moderate; p. 272; LO2; AACSB Analytical Skills) 65.

Which of the following is NOT an advantage of advertising on television? a. pervasiveness b. cost-efficiency c. impact d. flexibility e. the buzz factor (d; difficult; p. 280; LO2) 66.

Choose the option that is NOT a disadvantage of advertising on television. a. production costs b. clutter c. wasted reach d. inflexibility e. engagement (e; difficult; pp. 273, 280; LO2) 67.

Which of the following is NOT a disadvantage of advertising on television? a. inflexibility b. low cost-efficiency c. clutter d. wasted reach e. intrusiveness (b; difficult; pp. 273, 280; LO2)

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68.

Movie theaters sell time at the beginning of their film showings for commercials called ________. a. previews b. captive showings c. selective showings d. trailers e. movie advertising (d; moderate; p. 276) 69.

________ is when a company pays to have verbal or visual brand exposure in a movie of television program. a. Cinema advertising b. Subliminal advertising c. Product placement d. Participation e. Sponsorship (c; moderate; p. 278) 70.

Which of the following is NOT an advantage of product placement? a. demonstrates product use in a natural setting by people who are celebrities b. unexpected and catches the audience when their resistance to advertising messages may be dialed down c. effective even if there is not a match between the product and the movie or its audience d. good for engaging the affections of other stakeholders, such as employees and dealers, particularly if the placement is supported with its own campaign e. All of the above are advantages of product placement. (c; difficult; p. 278)

GENERAL CONTENT: TRUE/FALSE QUESTIONS The most powerful radio stations are called “superstations” and can deliver signals for long distances. (False; moderate; p. 257; LO1; AACSB Use of IT) 71.

72.

FM stations tend to be stronger than AM stations, sometimes reaching as far away as 600 miles, which is why music stations prefer FM, and talk radio and stations that broadcast sporting events are often found on AM. (False; difficult; p. 257; LO1; AACSB Use of IT) 73.

Public radio stations are considered noncommercial in that they rely on listener support for most of their funding, and no commercial support is allowed by law. (False; moderate; p. 258; LO1)

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74.

Network radio is a group of local affiliates connected to one or more national networks through telephone wires or satellites. (True; moderate; p. 260; LO1; AACSB Use of IT) 75.

Syndicated radio advertising providers offer flexibility through their willingness to run unusual ads, allow last-minute changes, and negotiate rates. (False; difficult; p. 262; LO1; AACSB Communication) 76. Radio is a highly segmented medium. (True; easy; p. 259; LO1; AACSB Communication) 77. Arbitron and RADAR are the major audience-rating services for radio. (True; moderate; p. 260; LO1) 78.

One advantage of advertising on radio is that radio is not normally perceived as an irritant and has a high level of consumer acceptance. (True; moderate; p. 279; LO1; AACSB Communication) 79.

Advertisers trying to reach a wide audience often need to buy time on several stations, and this has been made easier by the “one-order, one-bill” system. (False; difficult; p. 260; LO1; AACSB Analytic Skills) 80.

One disadvantage of advertising on radio is lack of control, which means advertisers do not have much control over when their ads will air. (False; moderate; p. 259; LO1) 81.

Although radio may not be a primary medium for most businesses, it does have excellent reminder and reinforcement capability. (True; easy; p. 262; LO1; AACSB Communication) 82.

One trend in audio advertising is narrowly targeted laserlike sound beams that can pinpoint individual shoppers with prerecorded messages encouraging them to try or buy some product. (True; moderate; p. 263; LO1; AACSB Use of IT) 83.

Because television advertising is embedded in television programming, most of the attention in media buying, as well as in the measurement of television advertising’s effectiveness, is focused on the performance of various shows and how they engage their audiences. (True; moderate; p. 263; LO2; AACSB Analytic Skills) 84.

The price of a 30-second prime time network television ad has increased, but the size of the audience has increased as well. (False; moderate; p. 263; LO2; AACSB Communication)

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85.

The Federal Communications Commission (FCC) defines a network as a program service with 30 or more hours of prime time programming per week between the hours of 8 a.m. and 11 p.m. (False; difficult; p. 264; LO2; AACSB Communication) 86.

Currently, there are six national, over-the-air television networks in the United States: ABC, CBS, NBC, Fox, WB, and UPN. (False; moderate; p. 264; LO2; AACSB Communication) 87.

Network-affiliated television stations are required by law to show all of the programming provided by the network. (False; difficult; p. 264; LO2; AACSB Communication) 88.

A problem facing network TV is that its audience, particularly men continues to erode as other viewing opportunities make inroads on their audiences. (True; easy; p. 265; LO2; AACSB Analytic Skills) 89.

The initial purpose of cable television was to provide highly targeted specialinterest programming options. (False; moderate; p. 265; LO2; AACSB Use of IT) 90.

Cable News Network (CNN), the Disney Channel, and the Entertainment and Sports Programming Network (ESPN) are examples of independent superstations. (False; difficult; p. 266; LO2) 91. The two categories of cable scheduling are network and local. (True; moderate; p. 266; LO2; AACSB Use of IT) 92.

With local cable scheduling, advertisers can show their commercials to highly restricted geographic audiences through interstitials, a special cable technology. (False; difficult; p. 266; LO2; AACSB Use of IT) 93.

Television stations not affiliated with a network are known as independent stations. (True; easy; p. 266; LO2) 94.

National advertisers sometimes buy local advertising on a city-by-city basis using spot buys. (True; moderate; p. 266; LO2; AACSB Analytic Skills) 95.

The FCC allows public broadcasting system (PBS) stations to air commercial messages, called program sponsorships, as long as the messages do not make a call to action (i.e., ask for a purchase) or make price or quality comparisons and appear only during the local 2.5-minute program breaks. (True; moderate; p. 266; LO2)

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96.

The FCC has licensed low-power television (LPTV) to provide programming outlets to minorities and communities that are under-served by full-power stations. (True; moderate; p. 266; LO2; AACSB Use of IT) 97. The FCC has recently banned pay-per-view television from carrying commercials. (False; difficult; p. 267; LO2; AACSB Use of IT) 98.

Syndicated programs include reruns of network shows as well as new episodes of programs. (True; moderate; p. 267; LO2; AACSB Communication) 99.

TiVo is a substantial threat to marketers because it allows consumers to skip commercials completely. (True; easy; p. 267; LO2; AACSB Use of IT) 100.

In program sponsorships, the advertiser assumes the total financial responsibility for producing the program and providing the accompanying commercials. (True; easy; p. 271; LO2; AACSB Analytic Skills) 101. Participations are commercials that appear in the breaks between programs, which local affiliates sell to advertisers who want to show their ads locally. (False; moderate; p. 271; LO2; AACSB Communication) 102.

The share figure is always larger than the rating for television, because the base is smaller. (True; moderate; p. 269; LO2; AACSB Analytic Skills) 103.

Network television is an expensive medium, but because of its traditionally high reach to a mass audience it is considered cost-efficient. (True; easy; p. 272; LO2; AACSB Analytic Skills) 104.

Syndicated programming networks run programs and commercials, such as the channels you see in grocery stores, doctors’ offices, and truck stops that distribute commercials by video or satellites. (False; difficult; p. 277; LO2; AACSB Use of IT) 105.

The biggest problem with product placement is that the placement may not be noticed. (True; moderate; p. 279; LO4; AACSB Communication)

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GENERAL CONTENT: ESSAY QUESTIONS 106.

Describe the structure of the radio industry by naming and describing the elements of the structure.

Answer: The structure of the radio industry includes the following elements: (1) AM/FM—Radio stations are delivered by two different ranges of signals or radio wave frequencies: AM and FM. AM stations tend to be stronger than FM stations, but the tonal quality of an FM signal is superior to that of AM, which is why music stations prefer FM, and talk radio and stations broadcasting sports events are often found on AM. (2) Public Radio—Local public radio stations are usually affiliates of National Public Radio (NPR) and carry much of the same programming. These stations are considered noncommercial in that they rely on listener support for most of their funding; however, they have slowly expanded their corporate sponsorship messages. (3) Cable Radio—Uses cable television receivers to deliver static-free music via wires plugged into cable subscribers’ stereos and typically is free of commercials. (4) Satellite Radio—Can deliver radio stations, regardless of where you are in the continental United States. (5) Low-power FM (LPFM)—Nonprofit, noncommercial stations that serve a small market, with a reach of three to five miles. Currently, the FCC does not allow them to carry advertising. (6) Web Radio—Audio streaming through a web site and can offer advertisers spots that run only in certain parts of a city. (difficult; pp. 257-259; LO1; AACSB Use of IT) 107.

Name and describe the three major types of radio advertising.

Answer: (1) Network Radio Advertising—Radio advertising bought from national networks who distribute programming and advertising to their affiliates. Network radio is a group of local affiliates connected to one or more national networks through telephone wires and satellites. (2) Spot Radio Advertising—Advertiser places an advertisement with an individual station rather than through a network and makes up nearly 80 percent of all radio advertising. (3) Syndicated Radio Advertising—Program syndication has benefited network radio because it offers advertisers a variety of high-quality, specialized, and usually original programs. Both networks and private firms offer syndication, and advertiser's value syndicated programming because of the high level of loyalty of its audience. (moderate; pp. 260-262; LO1; AACSB Communication)

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108.

Discuss three advantages and three disadvantages of advertising on radio. Answer: Students can discuss any three of the following advantages: (1) Target Audiences—Ability to reach specific audiences through specialized programming, different parts of the country, and through different parts of the day. (2) Affordability—May be the least expensive of all media. (3) Frequency—Because it is affordable, it’s easier to build frequency through repetition. The nature of the radio message is another reason why it is a good frequency medium because reminder messages, particularly jingles and other musical forms, are easier to repeat without becoming irritating. (4) Flexibility—Has the shortest closing period, meaning copy can be submitted up to airtime. Stations are also willing to participate in promotional tie-ins such as store openings, races, and so on. (5) Mental Imagery—Allows the listener to imagine. Radio uses words, sound effects, music, and tone of voice to enable listeners to create their own pictures, resulting in radio sometimes being called the theater of the mind. (6) High Level of Acceptance—At the local level; it is not normally perceived as an irritant because people have their favorite radio stations and radio personalities.

Students can discuss any three of the following disadvantages: (1) Listener Inattentiveness—Messages are fleeting, and listeners may miss or forget commercials. Many people think of radio as a pleasant background and do not listen to it carefully. (2) Lack of Visuals—Products that must be demonstrated or seen to be appreciated are inappropriate for radio advertising. (3) Clutter—The number of radio stations has increased, and so has the heavy repetition of some ads. (4) Scheduling and Buying Difficulties—Advertisers seeking to reach a wide audience often need to buy time on several stations, complicating scheduling and ad evaluation due to nonstandardization. (5) Lack of Control—There is always the risk that a radio personality will say something that offends the audience and could hurt the audience’s perception of an advertiser’s product. (moderate; p. 279; LO1; AACSB Communication)

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109.

Describe the structure of the television industry by naming and describing the elements of the structure. Answer: The key types of television delivery systems are wired and unwired networks, local stations, public stations, cable, and subscription. Specialty, syndicated, interactive television, and TiVo offer different types of programming and ways to manipulate the programming. More specifically: (1) Network Television—A broadcast network exists whenever two or more stations are able to broadcast the same program that originates from a single source, and it can be over-the-air or cable. The FCC defines a network as a program service with 15 or more hours of prime time programming per week between the hours of 8 a.m. and 11 p.m. (2) Cable and Subscription Television—People sign up for a service and pay a monthly fee. Another form of subscription television is satellite TV. Network cable scheduling runs commercials across the entire subscriber group simultaneously. With local cable scheduling, advertisers can show their commercials to highly restricted geographical audiences through interconnects. (3) Local Television—Most local television stations are affiliated with a network, but there are independent stations not affiliated with a network. Most advertisers for the local market are local businesses. National advertisers sometimes buy local advertising on a city-by-city basis, using spot buys. (4) Public Television—Although mostly considered to be “commercial-free,” the FCC now allows some leeway in airing commercial messages, which are called program sponsorships. The FCC says these messages should not make a call to action (i.e., ask for a purchase) or make price or quality comparisons, and they can appear only during the local 2.5-minute program breaks. (5) Specialty Television—The FCC has licensed low-power television (LPTV) to provide programming outlets to minorities and communities that are underserved by full-power stations. Hotels and restaurants use multipoint distribution systems (MDS) to provide guests with movies and other entertainment. Although specialty systems can carry ads, they are a minor delivery system. (6) Pay-per-view—Delivered by satellite, usually used for major sporting and music events, commercial customers, such as bars, as well as home viewers subscribe for live delivery of the events without any commercials. (7) Program Syndication—Syndicated programs are television programs purchased by local stations to fill time in open hours. Off-network and first-run syndication are the two types.

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(8)

Interactive Television—Basically a television with computer capabilities, and it appears to be growing due to broadband. Broadband has more capacity to send data and images into a home or business through a cable television wire than does the much smaller capacity of a traditional telephone wire or television antenna system. (9) High-Definition TV (HDTV)—A type of TV set that can play back movie-quality, high-resolution images, but stations or networks have to broadcast the program in an HDTV format. Advertisers have been watching this development and will provide HDTV ads as demand builds. (10) Digital Video Recorders (DVR)—Allow users to record TV shows and watch them whenever they like. Users get a TiVo “box” and subscribe to a service that distributes programming. The technology allows recording of programs without the hassles of videotape, lets users pause, do instant replays, and begin watching programs even before the recording has finished, known as time-shifting. Rub for advertisers: consumers can avoid commercials. (difficult; pp. 264-267; LO2; AACSB Use of IT) 110.

Discuss three advantages and three disadvantages of advertising on television. Answer: The three advantages of advertising on television are: (1) Pervasiveness—Television is in almost every home; some homes have a TV in every room, and these TVs are turned on for a great part of the day. (2) Cost-efficiency—Many view it as the most cost-effective way to deliver a mass-media message because it has such a wide reach. Even though it is expensive on an absolute basis, it is cost-efficient because the costs are spread across so many viewers. (3) Impact—The interaction of sight, sound, color, motion, and drama creates a strong emotional response. It is also good for delivering demonstrations and dramas. Students can discuss any three of the disadvantages of advertising on television: (1) Production Costs—Extremely high cost of producing and running commercials. Production costs include filming the commercial and paying the talent—writers, directors, and actors. (2) Clutter—There are no restrictions on the commercial time per hour. (3) Wasted Reach—Communication directed at an unresponsive (and often uninterested) audience that may not fit the advertiser’s target market characteristics.

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(4)

Inflexibility—Most network television is bought in the spring and early summer for the next fall season, and if an advertiser is not able to make this up-front buy, only limited time slots remain available. Also, it is difficult to make last-minute adjustments in copy and visuals, and production of a TV commercial takes weeks to months. (5) Intrusiveness—TV commercials intrude into the programs and are therefore more irritating than other forms of advertising, leading viewers to mute and zap commercials. (moderate; pp. 273, 280; LO2; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

Who did Holiday Inn Express, which was described in the chapter opening vignette, target with its advertising efforts? a. single men b. single women c. head-of-household men d. businessmen e. men and women more than 65 years old (d; moderate; p. 255) 112.

How did Holiday Inn Express, which was described in the chapter opening vignette, position itself? a. as the lowest-price hotel b. as the best quality hotel c. as a hotel that offers basic comfort without frills at a good price d. as the hotel with the greatest assortment of frills e. as the only hotel (c; moderate; p. 255) 113.

WLSU is the campus radio station at Louisiana State University. It is a nonprofit, noncommercial station that serves a small market (i.e., the university community), with a reach of three to five miles. They provide a variety of music and informational programming, and all LSU student, faculty, and staff performances are broadcast on this station. With respect to the structure of the radio industry, WLSU is an example of ________. a. public radio b. cable radio c. satellite radio d. low-power FM (LPFM) e. web radio (d; moderate; p. 258; LO1)

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114.

Laurie loves the car radio her husband gave her for her birthday because she spends hours on the road as a sales rep covering the entire southeast region of the United States. She is able to listen to the same station, regardless of where she is in the country, and the music stations are completely commercial-free. She has to pay a monthly fee for this programming, but to her, it’s worth it. With respect to the structure of the radio industry, what kind of radio does this represent? a. AM/FM b. cable radio c. satellite radio d. web radio e. LPFM (c; easy; p. 258; LO1; AACSB Use of IT) 115.

Rush Limbaugh is a conservative talk show host who is heard on hundreds of radio stations around the country. Advertisers, such as Select Comfort beds, advertise on his program because of the high level of loyalty of his audience, affectionately called “Ditto Heads” because they agree with Rush because they feel he voices their opinions, thoughts, and feelings effectively. Local radio stations purchase the rights to air his program on their station. National advertisers can purchase advertising time from the program provider or the local station, and local businesses usually purchase advertising during this show from the local station. What type of radio advertising does this represent? a. network radio advertising b. spot radio advertising c. syndicated radio advertising d. news radio advertising e. up-front radio advertising (c; moderate; p. 262; LO1; AACSB Communication) 116.

Starbucks is interested in radio advertising and wants to reach consumers at the best time of day to get them to drive into a Starbucks location. Research has shown that 80 percent of consumers drink the majority of coffee before going to work or on their way to work. What daypart would you recommend Starbucks use to reach these consumers? a. 6 to 10 a.m. (morning drive time) b. 10 a.m. to 3 p.m. (daytime) c. 3 to 7 p.m. (evening drive time) d. 7 p.m. to midnight (nighttime) e. midnight to 6 a.m. (all night) (a; easy; p. 259; LO1)

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117.

Rain Forest Car Wash wants to start advertising to increase its business. Rain Forest is looking for an advertising medium that will allow them to advertise frequently yet still be affordable. They also want the capability to change messages to reflect current conditions that affect a car’s appearance, such as the high level of pollen that settles on cars from one day to the next. Based on this information, which advertising medium would you recommend for this business? a. newspapers b. magazines c. television d. radio e. outdoor billboards (d; moderate; p. 262; LO1; AACSB Communication) 118.

Wendy’s fast food restaurant wants to increase radio advertising in the metropolitan area of several major cities. They want to advertise close to lunch and dinner times because they feel that consumers are already in their cars and will more likely drive into a Wendy’s if they hear an ad around the time they are hungry. Wendy’s is seeking to reach as wide of an audience as possible and intends to advertise on several stations within each area to do so. Considering the disadvantages of advertising on the radio, which one is most relevant in this situation? a. listener inattentiveness b. lack of visuals c. clutter d. scheduling and buying difficulties e. lack of control (d; moderate; p. 279; LO1; AACSB Communication) 119.

WDAM is a local television station in Hattiesburg, Mississippi, that airs programming provided from the National Broadcasting Company (NBC). This station has a contractual relationship with NBC in which it agrees to carry programming originating from NBC during a certain part of its schedule. WDAM is allowed to sell a small amount of time during this programming to advertisers wishing to reach the local market, but the station typically pays NBC 30 percent of the fees they charge for this local advertising. However, WDAM receives 15 percent of the advertising revenue paid to NBC by national advertisers. WDAM is known as a network ________. a. affiliate b. subscriber c. agent d. assistant e. enabler (a; easy; p. 264; LO2; AACSB Reflective Thinking)

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120.

The Wall Street Journal wants to begin an advertising campaign using television to attract more subscribers. They want a television vehicle that is relatively uncluttered and reaches an affluent, well-educated household. One goal of their promotion is to not appear to be asking for a purchase, merely to make the publication more salient in the minds of their target audience. Based on this information and your knowledge of the structure of the television industry, which of the following delivery systems or programming options would be best for the WSJ? a. network television b. public television c. cable television d. program syndication e. interactive television (b; difficult; p. 266; LO2; AACSB Reflective Thinking) 121.

Some have predicted that, in the future, television will allow consumers to purchase products/brands they see on a television show. For example, if you like the shirt Raymond is wearing in Everybody Loves Raymond, you will be able to click on the shirt and will be taken to a web site that allows you to purchase it. When finished, you can pick up viewing the program where you left off. What type of television delivery system or program option does this represent? a. pay-per-view b. high-definition TV (HDTV) c. interactive television d. e-commerce television e. network cable (c; moderate; p. 267; LO2; AACSB Use of IT) 122.

In "A Matter of Principle" what problem is analyzed? a. The number of hours children aged 3-5 watch TV each week is adversely affecting the children's physical development. b. Since college students are exhausted from watching TV each day they underperform in classes. c. The airwaves are saturated with radio and television in major markets with country music. d. Television violence is used deliberately by advertisers to target TVs most valuable demographic—male viewers ages 18-34 who are top consumers of violent shows. e. Criticism of the TV show, Law and Order: Special Victims Unit, is unjustified and cruel. (d; easy; p. 269; AACSB Ethical Reasoning)

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123.

A popular comedy show, which is shown on Fox network, had a rating or 4.0 but a share of 7. Why are these two numbers different? a. Rating includes all TV households and share considers only those households that have their TVs on at that time. b. Share includes all TV households and rating considers only those households that have their TVs on at that time. c. Rating is provided by Arbitron and share is provided by Nielsen, and both use different methods for estimating audience size. d. Rating is provided by Nielson and share is provided by Arbitron, and both use different methods for estimating audience size. e. Rating compares audience size to the entire TV universe, while share compares only audience size to other network programming. (a; moderate; p. 269) As described in “The Inside Story,” how did HER&NU marketing communication turn around the negative image the Framsokn political party was suffering in Iceland? a. They executed television commercials using humor with a serious selling point. b. They provided factual evidence in their TV commercials of the positive economic and social changes the party was the catalyst for over the past 12 years. c. They used comparative advertising, which is allowed only on television in Iceland, in which they juxtaposed the rival political party’s position with their party’s position on several economic and social issues. d. They selected a younger candidate and used television advertising heavily to project a younger image for their political party. e. They selected a female candidate and used television advertising heavily to project a more female-focused party. (a; moderate; p. 274; LO2; AACSB Communication) 124.

125.

In 2006, which of the following was the top show by ad rates? a. Friends b. Will & Grace c. ER d. Monday Night Football e. American Idol (e; difficult; p. 275 [Table 9.2]; LO2; AACSB Reflective Thinking)

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As described in the “Hands-On” case at the end of the chapter, what risky step has Sirius satellite radio taken with the goal to increase subscribers by more than 1 million? a. They have gone to programming that is completely commercial-free. b. They signed controversial talk show host Rush Limbaugh to bring his program to Sirius in the hopes that his loyal listeners will follow. c. They increased their price 50 percent and touted that fact in television commercials to convey the position that they are superior to their competitor, XM Radio. d. They signed “shock jock” Howard Stern to bring his program to Sirius in the hopes that his loyal listeners will follow. e. They plan on increasing their advertising spending from $1 million to $100 million by 2007, and Mel Karmazin, CEO of Sirius, says this aggressive advertising growth plan will actually drive subscribers to Sirius due to their strong dislike and resistance to commercials. (d; moderate; p. 283; LO2; AACSB Ethical Reasoning) 126.

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Procter & Gamble is a major manufacturer of consumer packaged goods and spent almost $3 billion on consumer advertising in 2004, much of it on television. P&G has nationwide distribution of its products and uses television advertising because of that. However, P&G is concerned about the decrease in television audiences in recent years and the fact that consumers are better able to avoid television commercials. 127.

Mini-Case Question. What type of television delivery system allows P&G to advertise on hundreds of television stations simultaneously across the country during prime time programs? a. network television b. public television c. specialty television d. pay-per-view e. interactive television (a; easy; p. 264; LO2; AACSB Reflective Thinking) 128.

Mini-Case Question. The bulk of P&G’s television advertising is 30-second commercials that air nationwide during several different programs every day of the week. What type of television advertising is this? a. sponsorship b. participations c. spot announcements d. on-network syndication e. specialty television (b; moderate; p. 271; LO2; AACSB Reflective Thinking)

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129.

Mini-Case Question. One thing P&G has done recently is to develop familyfriendly programming, assuming the total financial responsibility for producing the program and providing the accompanying commercials. They are concerned that some of the controversial programming on television today hurts their brand’s image if they advertise during that type of programming. What form of television advertising is P&G undertaking? a. sponsorship b. participations c. spot announcements d. on-network syndication e. specialty television (a; moderate; p. 271; LO2; AACSB Analytic Skills) 130.

Mini-Case Question. Another major concern of P&G and other advertisers is the fact that consumers are increasingly avoiding commercials, either by zapping them or using technology, such as digital video recorders, to avoid them completely. As a result, they are making a concerted effort to get the actors in movies and television programs to verbally or visually expose their brands to the audience. What is this practice known as? a. sponsorship b. product placement c. participations d. de-clutter e. share (b; moderate; p. 278; LO4; AACSB Reflective Thinking)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

What was the challenge facing the agency of Holiday Inn Express, which was described in the chapter opening vignette, and how did they address it? Answer:

The challenge facing the agency of Holiday Inn Express was to create a brand in a well-established category and find a way to distinguish the subbrand from Holiday Inn with less than half the budget of its fiercest competitor. The campaign focused on the smart road warrior who got a good night's rest while spending his money wisely. Wacky 'smart' people stepped up to emergency situations as a result of having stayed at Holiday Inn Express. This created the brand in a popular, funny and memorable way. TV was the primary medium and the media buys were precise. They bought time on Saturday and Sunday when the businessmen were planning trips and on cable stations they were likely to watch. (moderate; pp. 255-256)

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132.

Coca-Cola had an “Always Coca-Cola” campaign in which their agency created jingles in several different music styles, such as rock-and-roll, country, hip-hop, and easy rock. The musical quality was on par with the music programming heard on radio stations, and they wanted to ensure that consumers heard it at that quality level. They also wanted as many consumers as possible to be exposed to the ads. Explain which type of radio is best at meeting these requirements? Answer:

Although cable, satellite, and web radio offer excellent sound quality, not all consumers subscribe or have access to these radio options. FM radio, on the other hand, offers better tonal quality than AM and is free to consumers—all they need is a radio receiver. (b; difficult; p. 258; LO1; AACSB Reflective Thinking) 133.

The Secret Gallery is a unique gift and home accessories store that recently opened. The owners want to advertise their business and are looking for an advertising medium that will allow them to advertise frequently and at a low cost to women aged 18 to 45. They want to get the audience curious about the uniqueness of the offerings and get them imagining the uniqueness and beauty they can expect when they visit the store. Based on this information, recommend the appropriate medium for them. Answer:

Radio would probably be most appropriate because it is the least expensive of all media, and advertisers can easily build frequency through repetition. Based on the nature of the medium, reminder messages, particularly jingles and other musical forms, are easier to repeat without becoming irritating. It is also a medium that allows the listener to imagine by using words, sound effects, music, and tone of voice to enable listeners to create their own pictures. (moderate; p. 262; LO1; AACSB Reflective Thinking)

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134.

Community Coffee once claimed in one of their television commercials that it was the “state coffee of Louisiana,” and a nice lady mockingly said at the end of the commercial that “You’ve got to be a Yankee if you don’t like Community Coffee!” Community wants to advertise on cable television, especially during food-related shows that appear on the Food Network. Because Community Coffee is distributed only in the South, they don’t want nationwide exposure for their ads. Explain how Community can advertise on a regional basis on cable television. Answer:

With local cable scheduling, advertisers can show their commercials to highly restricted geographic audiences through interconnects, a special cable technology that allows local or regional advertisers to run their commercials in small geographic areas through the interconnection of a number of cable systems. (moderate; p. 266; LO2; AACSB Use of IT) 135.

Ruth was watching public television and noticed that there were commercial messages. She always thought that public television was commercial-free. Is that true? Explain your answer. Answer:

Although many people still consider public television to be commercial-free, in 1984 the FCC liberalized its rules and allowed the public broadcasting system (PBS) stations some leeway in airing commercial messages, which are called program sponsorships. The FCC says these messages should not make a call to action (ask for a purchase) or make price or quality comparisons. Ads are allowed to appear only during the local 2.5-minute program breaks, and each station maintains its own acceptability guidelines. (moderate; p. 266; LO2; AACSB Reflective Thinking) 136.

Six Flags Fiesta Texas is located in San Antonio, Texas. Although several locals and other Texans visit the park every year, Six Flags wants to target the millions of tourists that visit the beautiful city for the Alamo and the riverwalk area. They would like to reach these tourists through television in their hotel rooms. Explain how they can do that. Answer:

One programming option for television is Specialty Television. Hotels and restaurants use multipoint distribution systems (MDS) to provide guests with movies and other entertainment. These systems can also carry ads and would be ideal for Six Flags to use if that is the target market they are seeking. (moderate; p. 267; LO2; AACSB Reflective Thinking)

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137.

May is the time of year when agencies start purchasing advertising time during prime time network programming for the next television season that begins in September. Name and describe the three forms of network television advertising. Answer:

The forms of network television advertising are: (1) Sponsorships—Advertiser assumes the total financial responsibility for producing the program and providing the accompanying commercials. (2) Participations—Advertiser pays for 10, 15, 20, 30, or 60 seconds of commercial time during one or more programs. (3) Spot announcements—Commercials that appear in the breaks between programs, which local affiliates sell to advertisers who want to show their ads locally. Commercials are sold on a station-by-station basis to local, regional, and national advertisers. (moderate; pp. 271-272; LO2; AACSB Reflective Thinking) 138.

In Prof. Rotfeld's opinion presented in “A Matter of Practice,” is advertising the solution to persuading people to change their 'problem' behavior? Answer:

Advertising, especially public service announcements (PSA's), are not effective at changing people's problem behavior, such as rape, drunk driving, cigarette smoking, etc. The people behind the PSA's presume that advertising is the solution. However, the PSA placements are free, therefore there is no assurance that the ad will reach the targeted audience. Maybe some people change, but this happens rarely. Advertising is then a waste of resources so become part of the problem rather than the solution. (moderate; p. 278; AACSB Ethical Reasoning)

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139.

As described in “The Inside Story,” Framsokn, historically one of the three largest political parties in Iceland, found itself in a downward spiral in popularity for the parliamentary election in 2003. Describe how their agency turned this around for them. Answer:

They used humorous, engaging television ads with a serious selling point. The agency’s mission was to break the mold of political advertising with a new, fresh approach to politics. They took a more “consumer advertising” approach, and all ads had to pass the “what’s in it for me” test and have a strong selling point. Analysis of the party’s research resulted in a targeting strategy based more on lifestyle than demographics. They used TV advertising because of its ability to reach a broad target audience, as well as to deliver the image message and resonate in a gently humorous way with the concerns of voters. The campaign was recognized as having turned around the party’s image and as the best political campaign that year—and possibly ever in Iceland. (moderate; p. 274) 140.

A recent Wall Street Journal article was entitled “Marketing Nirvana Is to Be a President’s Preferred Brand.” The article discussed how President and Mrs. Bush receive about 1,000 gifts each month and keep and use only a handful of them. The president must disclose this information to the public, and marketers want the president to choose their brands. One TV news story discussed how President Bush has stopped running and has started biking instead, and video showed him riding a Trek bicycle. Based on what you learned from this chapter, why are so many marketers eager to give their products to the president? Answer:

Product placement is a practice in which a company pays to have verbal or visual brand exposure in a movie or television program. Although technically not product placement, having the president seen using your brand could be construed as an implied endorsement by the president. Advantages of product placement include demonstrating the product in use in a natural setting (i.e., the president riding a Trek bike), it’s unexpected and catches the audience when their resistance to advertising messages may be dialed down (i.e., consumers don’t expect the president to be a paid product endorser), and it’s good for engaging the affections of other stakeholders, such as employees and dealers. However, disadvantages include not being noticed, problems if there is not a match between the product and the audience, and the success or failure of a movie is not known when the placement is negotiated (in this case, there is no guarantee that the president will even accept your gift and give you exposure). (moderate; p. 278; LO4; AACSB Reflective Thinking)

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141.

Based on the “Practical Tips” given in this chapter, give three reasons to use radio as an advertising medium. Answer:

The “Practical Tips” box gives several reasons to use radio, and students can answer any three of the following. Use radio if . . . (1) You are a local business (2) You need a highly targeted local audience (3) You have a relatively small advertising budget (4) You want to build frequency (5) You know the timing when your audience is considering the purchase (6) Your audience’s interests align with certain types of music, advice programs, or talk shows (7) You have a personal message that uses the power of the human voice (8) You have a message that works well in a musical form or one that is strong in mental imagery (9) You need a reminder message (difficult; p. 279) 142.

Based on the “Practical Tips” given in this chapter, give three reasons to use television as an advertising medium. Answer:

The “Practical Tips” box gives several reasons to use television, and students can answer any three of the following. Use television if . . . (1) You want to reach a wider mass audience (2) Your audience’s interests align with a certain type of cable television program (3) You have a relatively good advertising budget (4) You have a product that needs both sight and sound, such as an emotional message, a demonstration, or a drama (5) You want to prove something so the audience can see it with their own eyes (6) You want the halo effect of a big TV ad to impress other stakeholders, such as dealers and franchisees (7) You need to create or reinforce brand image and personality (difficult; p. 280; LO2; AACSB Reflective Thinking)

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143.

Based on the “Practical Tips” given in this chapter, give three reasons to use movie ads as an advertising medium. Answer:

The “Practical Tips” box gives several reasons to use movie ads, and students can answer any three of the following. Use movie ads if: (1) You are advertising a national brand and have the budget to do highquality commercials (2) You want your brand to be associated with the movie’s story and stars (3) The people in the audience match your brand’s target audience (4) Your commercial has enough visual impact and quality production that it will look good next to the movie previews (difficult; p. 280; LO2; AACSB Reflective Thinking) 144.

Based on the “Practical Tips” given in this chapter, give three reasons to use product placement as an advertising medium. Answer:

The “Practical Tips” box gives several reasons to use product placement, and students can answer any three of the following. Use product placement if . . . (1) You want your brand to be associated with the movie’s story and stars (2) The people in the audience match your brand’s target audience (3) There is a natural fit between the product and the movie’s storyline (4) There is an opportunity for the brand to be a star (5) The placement will appeal to the brand’s stakeholders (6) You have the budget for a campaign to support the placement (difficult; p. 280; LO2; AACSB Reflective Thinking) 145.

Describe the challenge facing Sirius satellite radio and the risky step they took to meet their challenge as described in the “Hands-On” case at the end of the chapter. Answer:

Sirius is trying to change the way people listen to radio by convincing them to pay a monthly fee for almost 200 channels of radio, much of it commercial-free. But Sirius is number two in the industry, having only 600,000 subscribers compared to XM radio’s 2.5 million. The risky move Sirius has taken is signing “shock jock” Howard Stern to leave the radio airwaves and bring his program to Sirius in 2006. For this deal to be profitable, Sirius figures it must bring in 1 million new subscribers. The other risk is that Stern might get even “raunchier” once he moves to the largely unregulated satellite network. (moderate; p. 283; LO2; AACSB Reflective Thinking)

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APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER John is opening a Lion’s Choice fast food roast beef restaurant in Baton Rouge, Louisiana. This restaurant is actually nationwide, but this is the first franchise opening in this city. In fact, their strategy is to increase its presence in the South, where currently it does not have as many outlets as in other parts of the country but is opening about one new outlet each month. Although the national office does some advertising, franchisees are allowed to do local advertising using advertisements provided to them by the national office. However, John has only about $1,000 to purchase media exposure. 146.

Mini-Case Question. What broadcast media and delivery systems is the national office likely to use for its advertising? Explain your answer. Answer:

Because this restaurant has a national presence, participations on network television can reach a wide audience. Additionally, they could also use network and/or syndicated radio advertising. If the national office wants to increase its advertising exposure in the South where it is currently expanding, they can purchase spot announcements from local television stations or purchase local cable time to more heavily target the South. Radio can be very effective for targeting a specific geographic region as well. (moderate; pp. 264-267; LO2; AACSB Reflective Thinking) 147.

Mini-Case Question. What broadcast media and delivery systems is John, the franchise owner in Baton Rouge, likely to use for advertising? Explain your answer. Answer:

John is a local business with a small advertising budget aimed at the Baton Rouge area, so radio is an appropriate medium for him. The “Practical Tips” box gives useful information to help students answer this question. For example, John has a local business, he has a relatively small advertising budget, and he knows the timing when his audience is considering the purchase (i.e., lunch and dinner). These are characteristics that lend themselves well to using radio. He will most likely advertise on AM and/or FM radio by purchasing spot radio advertising, that is, placing an ad with an individual station rather than through a network. (moderate; pp. 264-267; LO2; AACSB Reflective Thinking)

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148.

Mini-Case Question. John really wants consumers to see the delicious roast beef sandwiches Lion’s Choice has to offer. Which broadcast media is NOT appropriate for his needs? Explain your answer. Answer:

If John wants consumers to see the product, radio is not an appropriate medium because of the lack of visuals. (easy; p. 257; LO1; AACSB Reflective Thinking) 149.

Mini-Case Question. John wants to learn more about the audiences of the local broadcast media in Baton Rouge. Name the companies that provide audience data for these media and explain how they collect this information. Answer: The major audience-rating services for radio are Arbitron and Radio’s AllDimension Audience (RADAR). Arbitron estimates the size of the radio audience for more than 250 markets in the United States. They use a seven-day selfadministered diary that the person returns to Arbitron at the end of the week. RADAR deals with both local and network radio. For RADAR (owned by Arbitron), Statistical Research calls 12,000 respondents for seven consecutive days and asks about network radio listening done the day before.

Several independent rating firms periodically sample a portion of the television viewing audience, assess the size and characteristics of the audiences watching specific shows, and then make these data available to advertisers and ad agencies. Currently, A. C. Nielsen dominates this industry and provides the most commonly used measure of national and local television audiences. They measure television audiences at two levels: network and spot. In some markets, respondents hook a device to their TVs to monitor what station it is tuned in to (i.e., audiometer), and in some cases, the devise also records which family members are viewing at that time (i.e., people meter). In smaller markets, such as Baton Rouge, respondents most likely fill out a viewing diary for the week. Diaries are mailed each week during survey months to sample homes in each of the 211 television markets. (moderate; pp. 260, 268; LO2; AACSB Reflective Thinking)

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150.

Mini-Case Question. The local television station shared audience data with John to help him determine during which time he should advertise. It was rather confusing to him, and he wasn’t sure what rating and share actually meant. Explain these two concepts. Answer:

A rating compares the number of viewers of a specific television show to the total number of TV households in the market regardless of whether or not those TVs are in use. Share compares the same number of viewers of a specific television show not to the number of TV households, but, rather, to the number of TV sets turned on. So the share figure is always larger than the rating, because the base is smaller. (moderate; p., 269; LO2; AACSB Reflective Thinking)

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CHAPTER TEN Internet and Nontraditional Media

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

___________ media refers to communication systems that permit two-way communication, such as a telephone call or an e-mail message. a. Interpersonal b. Mass c. Interactive d. Selective e. Permission (c; moderate; p. 286; LO4; AACSB Communication) 2.

The closer the medium is to dialogue, or the more a user is able to manipulate the content, the more it can properly be described as ___________ communications. a. interactive b. interconnected c. mass d. selective e. permission (a; moderate; p. 296; LO4; AACSB Communication) 3.

Which type of communication is believed to be the most persuasive type of communication available to marketers? a. one-way b. two-way c. mass d. opt-in e. opt-out (b; moderate; p. 296; LO4; AACSB Communication) 4.

Which medium is considered interactive both because users are involved in selecting the information they attend to and because they can contact the company and other users directly? a. newspapers b. magazines c. radio d. Internet e. television (d; moderate; p. 286; LO4; AACSB Communication)

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Which of the following is NOT part of the Internet? a. URL b. e-mail c. portal d. webpage e. printed page (e; moderate; p. 287; LO1; AACSB Use of IT) 6.

Which is considered the most interactive of all media, the one that most lends itself to conversation and dialogue? a. Internet b. phone c. e-mail d. newspapers e. magazines (b; easy; p. 271) 7.

The linked system of international computer networks is known as the ________. a. Network b. Intranet c. Cybernet d. Electronet e. Internet (e; easy; p. 287; LO1; AACSB Use of IT) 8.

The information interface that allows people to access the Internet through an easy-to-use graphical format is known as the ________. a. World Wide Web b. Netscape Navigator c. Internet Explorer d. Interface e. Wired World Web (a; easy; p. 287; LO1; AACSB Use of IT) 9.

________ refers to all the hardware, software, and computer know-how that provide a platform for businesses that use the Internet to sell products, as well as to manage their accounting, distribution, production, advertising, customer service, personal sales, internal communication to employees, and external communication to outside stakeholders. a. E-commerce b. Interactive-commerce c. Alternative media d. E-business e. Electronic media (d; moderate; p. 294; LO2; AACSB Use of IT)

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10.

What do companies post on their web sites detailing how or whether the site is collecting data on its visitors and how that data are used? a. privacy policy b. cookies c. disclaimers d. blogs e. message boards (a; moderate; p. 301; LO2) 11.

Little electronic bugs that can be placed on your computer by a web server to track your movements online are known as ________. a. blogs b. instant messengers c. cookies d. viruses e. worms (c; moderate; p. 300; LO2; AACSB Use of IT) 12.

What department do consumers contact when they have any problems, questions, complaints, or suggestions? a. help line b. help desk c. help service d. customer service e. technical support (d; moderate; p. 287; LO1) 13.

_______ is a new technology that makes it possible to broadcast TV online. a. Blogs b. Chat rooms c. Help lines d. Netcasting e. Vlogs (d; moderate; p. 289; LO1; AACSB Use of IT) 14.

Corporate ________ are a way to keep employees and other stakeholders informed, but employees may also be encouraged to have their own personal ones. a. Internets b. blogs c. Extranets d. chat rooms e. Technets (b; moderate; p. 288; LO1; AACSB Use of IT)

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15.

________ are visual essays available online. a. Internets b. Intranets c. Vblogs d. Connectnets e. Technets (c; moderate; p. 289; LO1) 16.

A company’s ________ is the online face it presents to the public and is sometimes called a home page. a. web site b. Interconnect c. Interface d. Intranet e. Extranet (a; easy; p. 287; LO1; AACSB Use of IT) 17.

What do most Internet users depend upon to find information? a. technical support b. intranets c. search engines d. extranet e. chat rooms (c; moderate; p. 287; LO1; AACSB Use of IT) 18.

What is an important first step for marketers creating a viable web site so that it begins building visibility? a. getting is registered with the FTC b. getting it registered with popular search engines c. getting it registered with the FCC d. getting it registered with the SEC e. getting it registered with popular chat rooms (b; moderate; p. 299; LO2; AACSB Use of IT) 19.

________ describes an approach that relies on actions initiated by consumers. a. Search marketing b. Search placement c. Search engine d. Interactivity e. Intranet (a; moderate; p. 298; LO2)

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20.

________ advertising provides excellent sales leads or actual sales. a. B2B portal b. B2B URL c. B2B internet d. B2B interconnect e. B2B interactive (c; moderate; p. 301; LO2; AACSB Communication) 21.

Groups of people with a special interest can contact one another and exchange their opinions and experiences through ________, which are sites located online, sometimes as part of an organization’s web site, but sometimes completely independent of any company. a. intranets b. extranets c. interconnects d. chat rooms e. chat nets (d; moderate; p. 288; LO1; AACSB Use of IT) 22.

What kind of web discussion sites have become a major tool for customers to talk about their brand experiences both before and after they make a purchase and are good information sources regarding customer and industry perspectives, as well as competitive information? a. intranets b. chat rooms c. chat nets d. search engines e. extranets (b; moderate; p. 288; LO1) 23.

A(n) ________ is a personal diary-like web page that is created by an individual and may also contain links to other related sites that the writer feels are relevant. a. intranet b. chat room c. blog d. extranet e. chat net (c; moderate; pp. 288-289; LO1; AACSB Use of IT)

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24.

Which of the following is NOT a purpose served by online advertising? a. provides a brand reminder message to people who are visiting a web site b. works like an ad in traditional media and delivers an informational or persuasive message c. allows a transaction to occur from the ad without having to leave the web site the viewer sees the ad d. provides a way to entice people to visit the advertiser’s site by clicking on a banner or button on the web site e. All of the above are purposes served by online advertising. (c; difficult; p. 290; LO2; AACSB Analytical Skills) 25.

________ are small ads on other web pages on which people can click to move to the advertised web site. a. Superstitials b. Blogs c. Minisites d. Banner ads e. Pop-ups (d; moderate; p. 291; LO2; AACSB Communication) 26.

Which of the following is a type of Internet advertising? a. banner ads b. skyscrapers c. pop-ups and pop-behinds d. superstitials e. all of the above (e; easy; pp.290-292) 27.

Which of the following is NOT a type of Internet advertising? a. banner ads b. skyscrapers c. pop-ups d. superstitials e. All of the above are types of Internet advertising. (e; moderate; pp. 291-292; LO2; AACSB Use of IT) 28.

The extra-long, skinny ads running down the right or left side of a web site are called ________. a. skyscrapers b. borders c. pop-ups d. minisites e. superstitials (a; moderate; p. 291; LO2)

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29.

Which type of Internet ads burst open on the computer screen either in front of or behind the opening page of the web site? a. skyscrapers b. pop-ups and pop-behinds c. minisites d. superstitials e. banner ads (b; easy; p. 291; LO2; AACSB Use of IT) 30.

Which type of Internet advertising allows advertisers to market their products without sending people away from the site they are visiting? a. minisites b. off-line advertising c. blogs d. click-throughs e. spam (a; moderate; p. 292; LO2; AACSB Use of IT) Which type of Internet advertising is thought of as “the Internet’s commercial,” designed to work like TV ads? a. minisites b. superstitials c. pop-ups d. banner ads e. skyscrapers (b; moderate; p. 292; LO2) 31.

32.

Which of the following is NOT a new technology that provides active components in Internet ads? a. plug-ins b. Java script c. Flash d. media streaming e. minisites (e; moderate; p. 292; LO2; AACSB Use of IT) 33.

Newer interactive ads that deliver multimedia effects using sound, still images, and full-motion video are referred to as ________. a. skyscrapers b. banner ads c. digital media d. rich media e. click-through technology (d; moderate; p. 301; LO2; AACSB Use of IT)

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34.

What phrase is used to describe moving images that can be transmitted online and received through most computers and their modems? a. rich media b. streaming video c. rich video d. streaming media e. live-action (b; moderate; p. 301; LO2; AACSB Use of IT) 35.

What type of advertising appears in conventional media to drive traffic to a web site? a. offline advertising b. banner advertising c. directory advertising d. directional advertising e. on-line advertising (a; moderate; p. 298; LO2) 36.

What is the primary use of the Internet by people of all demographic categories? a. entertainment b. shopping c. communication d. information searching e. creative pursuits (d; moderate; p. 294; LO2; AACSB Use of IT) 37.

The Internet is particularly good at reaching which demographic group because they spend more time online than any other group? a. men aged 25 to 54 b. women aged 25 to 54 c. teens d. men more than 65 years old e. women more than 65 years old (c; moderate; p. 289; LO1) 38.

What is the major problem with respect to measuring the Internet audience? a. illegal to measure the audience due to privacy laws b. unethical to measure the audience without their knowledge c. lack of consumer support in monitoring behavior d. lack of standards to measure Internet effectiveness e. impossible to measure the audience (d; moderate; p. 300; LO2; AACSB Use of IT)

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39.

The number of times a particular web site is visited is known as ________, a. clicks b. hits c. viewers d. unique visitors e. page views (b; moderate; p. 300; LO2; AACSB Use of IT) 40.

Which of the following is NOT a measure used to track a consumer through a web site? a. circulations b. hits c. viewers d. unique visitors e. page views (a; moderate; p. 300; LO2; AACSB Use of IT) 41.

The primary method currently used to measure consumer response to Internet advertising is ________. a. hits b. viewers c. click-through d. unique visitors e. total traffic (c; moderate; p. 300; LO2) 42.

________ represents the number of people who click on a banner ad. a. Click-through b. Page visits c. Unique visitors d. Hits e. Viewers (a; moderate; p. 300; LO2; AACSB Use of IT) 43.

Which of the following are advantages of Internet advertising? a. relatively inexpensive b. can deliver business, such as the pop-behind ads that motivate people to respond c. can customize and personalize messages d. can provide excellent sales leads or actual sales for B2B advertisers e. all of the above (e; easy; pp. 301-302; LO2; AACSB Communication)

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44.

Which of the following is NOT an advantage of Internet advertising? a. relatively inexpensive b. can level the playing field for small and medium-sized companies c. can customize and personalize messages d. can provide excellent sales leads or actual sales for B2B advertisers e. All of the above are advantages of Internet advertising. (e; easy; pp. 301-302; LO2; AACSB Communication) 45.

What is the most serious drawback of Internet advertising? a. clutter b. privacy concerns c. international restrictions d. the inability of strategic and creative experts to consistently produce effective ads and to measure their effectiveness e. bandwidth variation among the audience (d; moderate; p. 302; LO2; AACSB Communication) 46.

Which of the following is a barrier facing international marketing and advertising on the web? a. access limitations b. exchange rates c. legal variations d. language e. all of the above (e; easy; p. 299; LO2; AACSB Analytic Skills) 47.

________ refers to the amount of digital information that can be sent through a phone line or fiber optic line. a. Nano-technology b. Flow-through c. Bandwidth d. Click-through e. Bytes (c; moderate; p. 301; LO1; AACSB Use of IT) 48.

________ attempts to address the issue of unwelcome electronic communication by asking potential consumers for their permission to send them e-mail. a. Permission marketing b. Spam marketing c. Opt-out marketing d. Viral marketing e. Alternative marketing (a; easy; p. 293; LO3; AACSB Ethical Reasoning)

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49.

Blasting millions of unsolicited e-mail messages to e-mail in-boxes is called ________. a. blasting b. spamming c. junk mailing d. broadcasting e. shot gunning (b; easy; p. 293; LO3; AACSB Ethical Reasoning) ________ is considered “junk e-mail” by consumers who are irritated by the avalanche of solicitations that clutter their in-boxes. a. Spam b. Blast c. Cookie d. Worm e. Virus (a; easy; p. 293; LO3) 50.

51.

What are the two permission marketing strategies called that allow consumers to control their inclusion on e-mail lists? a. de-spam and can-spam b. no-spam and can-spam c. ying and yang d. buy-in and buy-out e. opt-in and opt-out (e; moderate; p. 293; LO3; AACSB Ethical Reasoning) 52.

________ means that all bulk e-mailers have to get your permission before sending any e-mail. a. Opt-out b. Opt-in c. Can-spam d. Buy-in e. Access allowed (b; moderate; p. 293; LO3 AACSB Ethical Reasoning) 53.

________ means that e-mailers can send a first e-mail, but they have to have an option that makes it possible for you to say no to any further e-mails from that business. a. Opt-out b. Opt-in c. Can’t-spam d. Buy-out e. Access denied (a; moderate; p. 293; LO3 AACSB Ethical Reasoning)

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54.

A practice, using the Internet, designed to deliver a groundswell of opinion or marketplace demand for a product is called ________. a. spam b. word-of-mouth c. opinion leadership d. viral marketing e. two-stage adoption (d; moderate; p. 293; LO3) 55.

The search for new media is particularly important for advertisers trying to reach which market because they are often the first to experiment with new media forms? a. men aged 25 to 54 b. women aged 25 to 54 c. teens d. men more than 65 years old e. women more than 65 years old (c; moderate; p. 302; LO4; AACSB Analytic Skills) 56.

What phrase has been used to refer to new electronic forms such as the Internet for advertising? a. alternative media b. new media c. rich media d. streaming media e. nontraditional media (b; difficult; p. 302; LO4; AACSB Communication) 57.

What phrase refers to nontraditional or unexpected communication tools and events? a. alternative media b. new media c. rich media d. streaming media e. nontraditional media (a; difficult; p. 302; LO4; AACSB Communication)

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58.

Branded entertainment more aggressively promotes a product than product placement and has been described as ________ because they are embedded in specific programs; they are harder for viewers to dismiss immediately as ads because the product is a character in the program. a. subliminal advertising b. situational ads c. guerilla marketing d. brand experiences e. brandisodes (b; difficult; p. 303; LO4; AACSB Communication) 59.

Which of the following are considered alternative or new media? a. advertainment b. Webisodes c. video games d. wireless communication e. all of the above (e; moderate; pp. 302–307; LO4) 60.

Which of the following is NOT considered to be alternative or new media? a. advertainment b. wireless communication c. Internet applications such as Webisodes d. celebrity endorser e. guerilla marketing (d; moderate; pp. 302–307; LO4; AACSB Communication) 61.

In an attempt to stand out among the media clutter, several companies have begun integrating brands into the content of television shows, which is known as ________. a. advertainment b. new media c. alternative media d. subliminal advertising e. embeds (a; moderate; p. 302; LO2; AACSB Communication)

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62.

In an attempt to stand out among the media clutter, several companies have begun integrating brands into the content of television shows as a prop or central feature of the program, which is known as ________ and is more aggressive than the practice of product placement. a. branded entertainment b. new media c. alternative media d. subliminal advertising e. embeds (a; moderate; pp. 302-303; LO2) 63.

Because many consumers consider pop-ups, banner ads, and superstitials annoying and ineffective, many companies instead are making their web sites more engaging and entertaining, which the practice of providing ________. a. interactivity b. branded entertainment c. virtual experiences d. brand experiences e. situational ads (d; moderate; p. 299; LO2; AACSB Communication) 64.

On the Internet, ________ have created a new form of web advertising similar to television programs with recurring episodes in a developing story. a. blogs b. Webisodes c. superstitials d. e-serials e. e-soaps (b; moderate; p. 299; LO2; AACSB Communication) 65.

________ links the common phone to a computer. a. Telecommunication b. Wireless communication c. Hybrid technologies d. Interconnects e. Superstitials (b; moderate; p. 305; LO1)

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66.

What wireless communication allows consumers to keyboard brief messages into a cell phone screen? a. viral messaging (VM) b. hybrid technologies c. guerilla marketing (GM) d. instant messaging (IM) e. branded entertainment (d; moderate; p. 306; LO4) 67.

What type of systems use wireless phones to access web sites? a. point-and-dial systems b. convergent systems c. click-and-dial systems d. instant messaging systems e. guerilla marketing systems (c; difficult; p. 306; LO4; AACSB Use of IT) 68.

What word or phrase is used in traditional media industries to describe the blurring of the differences among television, print, and the Internet media? a. convergence b. consolidation c. synergy d. brand experience e. brand submersion (a; difficult; p. 306; LO4; AACSB Analytic Skills) 69.

________ is(are) unconventional marketing communication activities that are intended to get buzz on a limited budget. a. Guerilla marketing b. Instant messaging c. Branded experience d. Blogs e. Message boards (a; moderate; p. 302; LO4; AACSB Communication) 70.

Which of the following is a disadvantage of guerilla marketing? a. limited reach b. unethical c. illegal in many countries outside the United States d. not effective e. lack of measurement (a; moderate; p. 302; LO4)

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GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

Alternative media refers to communication systems that permit two-way communication. (False; moderate; p. 302; LO4) 72. The term interactive describes media such as the Internet, phone, and e-mail. (True; easy; p. 286; LO4; AACSB Use of IT) 73. A URL is not part of the Internet. (False; moderate; p. 287; LO1; AACSB Use of IT) 74. The World Wide Web is a linked system of international computer networks. (False; difficult; p. 287; LO1; AACSB Use of IT) 75.

E-business refers to all the hardware, software, and computer know-how that provide a platform for businesses that use the Internet to sell products, as well as to manage their accounting, distribution, production, advertising, customer service, personal sales, internal communication to employees, and external communication to outside stakeholders. (True; easy; p. 294; LO2; AACSB Use of IT) 76.

Little electronic bugs that can be placed on your computer by a Web server to track your movements online are called cookies. (True; moderate; p. 300; LO2; AACSB Use of IT) 77. Corporate blogs are a way of keeping employees and other stakeholders informed. (False; moderate; p. 289; LO1; AACSB Use of IT) 78. A company’s web site is the online face it presents to the public. (True; easy; p. 287; LO1; AACSB Use of IT) 79.

Chat rooms are sites located online, sometimes as part of an organization’s web site, but sometimes completely independent of any company, where groups of people with a special interest can contact one another and exchange their opinions and experiences. (True; moderate; p. 288; LO1; AACSB Communication) 80. A blog is a personal diary-like web page that is created by an individual. (True; moderate; p. 288; LO1; AACSB Use of IT) 81.

Online advertising serves three primary purposes: (1) provides a brand reminder message, (2) delivers an informational or persuasive message, and (3) makes a sale. (False; difficult; p. 290; LO2; AACSB Analytical Skills)

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82.

Headline ads are small ads on other web pages on which people can click to move to the advertised web site. (False; moderate; p. 291; LO2; AACSB Analytical Skills) 83.

The most common formats of Internet advertising include banner ads, skyscrapers, pop-ups and pop-behinds, minisites, and superstitials. (True; moderate; pp. 291-292; LO2; AACSB Use of IT) 84.

The phrase streaming video is used to describe moving images that can be transmitted online and received through most computers and their modems. (True; moderate; p. 301; LO2; AACSB Use of IT) 85.

Internet marketers use offline advertising in conventional media to drive traffic to their web site. (True; moderate; p. 298; LO2) 86.

The primary use of the Internet by people of all demographic categories is for information searching. (True; moderate; p. 294; LO2; AACSB Use of IT) 87.

The major concern advertisers have about the Internet audience and its measurement is that not enough consumers have access to it. (False; moderate; p.300; LO2; AACSB Use of IT) 88.

The primary method currently used to measure consumer response to Internet advertising is hits, which is the number of times a particular site is visited. (False; difficult; p.300; LO2; AACSB Use of IT) 89.

One disadvantage of Internet advertising is that it is relatively expensive, often making it prohibitive for a small company. (False; moderate; p. 302; LO2; AACSB Communication) 90.

Clutter is not as much of a problem on the Internet as it is in conventional advertising media. (False; moderate; p. 302; LO2; AACSB Communication) 91.

The Internet is an international medium with virtually no barriers for international marketers and their advertising. (False; moderate; p. 299; LO2; AACSB Analytic Skills) 92.

The web is an international marketing and advertising medium, but it faces access, legal, linguistic, currency, and technological barriers. (True; moderate; p. 299; LO2; AACSB Multicultural and Diversity)

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93.

Bandwidth refers to the amount of digital information that can be sent through a phone line or fiber optic line. (True; moderate; p. 301; LO1; AACSB Use of IT) 94. Spamming is illegal in the United States. (False; moderate; p. 293; LO3; AACSB Ethical Reasoning) 95.

The two permission-marketing strategies for consumers to control their inclusion on e-mail lists are opt-in and opt-out. (True; moderate; p. 293; LO3 AACSB Ethical Reasoning) 96. Opt-out means that e-mailers must get your permission before sending any e-mail. (False; moderate; p. 293; LO3 AACSB Ethical Reasoning) 97.

A practice designed to deliver a groundswell of opinion or marketplace demand for a product is called viral marketing, and it uses e-mail to circulate a message among family and friends. (True; moderate; p. 293; LO3 AACSB Communication) 98.

New media is a phrase that has been used to refer to new electronic forms such as the Internet. (True; moderate; p. 302; LO4; AACSB Communication) 99. There is no difference between branded entertainment and product placement. (False; difficult; pp. 302-303; LO2; AACSB Communication) 100.

One new Internet practice by marketers is to make their web sites more engaging and entertaining to provide brand experiences. (True; moderate; p. 299; LO2; AACSB Communication) 101.

Webisodes have created a new form of web advertising following the “advertainment” trend in television advertising that blends advertising and entertainment in order to attract audiences turned off by traditional mainstream media. (True; moderate; p. 299; LO2; AACSB Communication) 102.

Video games are an attractive alternative medium for advertisers because there are established standards for measuring the effectiveness of the placement. (False; moderate; p. 303; LO4; AACSB Analytic Skills) 103.

Instant messaging (IM), which allows users to keyboard brief messages into a cell phone screen, is used primarily by adults. (False; moderate; p. 306; LO4; AACSB Use of IT)

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104. Click-and-dial systems use wireless phones to access web sites. (True; difficult; p. 306; LO4; AACSB Use of IT) 105.

Convergent marketing is unconventional marketing communication activities that are intended to get buzz on a limited budget by using creative ways to reach people where they live, work, and walk to create a personal connection and a high level of impact. (False; moderate; p. 302; LO4; AACSB Communication)

GENERAL CONTENT: ESSAY QUESTIONS 106.

Name and describe the five types of Internet advertising. Answer: (1)

Banner ads—Small ads on other web pages on which people can click to move to the advertised web site. (2) Skyscrapers—Extra-long, skinny ads running down the right or left side of a web site. (3) Pop-Ups and Pop-Behinds—Burst open on the computer screen either in front of or behind the opening page of the web site. (4) Minisites—Allow advertisers to market their product without sending people away from the site they’re visiting. (5) Superstitials—Thought of as “the Internet’s commercial,” designed to work like TV ads. (moderate; pp. 290-292; LO2; AACSB Reflective Thinking) 107.

Explain how the Internet audience is measured and advertisers’ concerns surrounding those measures. Answer:

Measures used to track a consumer through a web site include hits (the number of times a particular site is visited), viewers (the number of viewers to a site), unique visitors (the number of different viewers during a particular time period), and page views (the number of times viewers view a page). However, these measures offer no insights as to motivation, nor do they tell us whether a visitor paid any attention to the surrounding ads. The primary method currently used to measure consumer response to Internet advertising is click-through (the number of people who click on a banner ad). This measure is considered insufficient by many Internet advertisers. Having the ability to quantitatively measure audiences is particularly important to media buyers, who need to show what the click-through, page view, or total traffic means to their clients. (moderate; p. 300; LO2; AACSB Reflective Thinking)

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108.

Discuss the advantages and disadvantages of Internet advertising. Answer: Internet advertising offers distinct advantages over other media. Most notably, it is relatively inexpensive. It can also deliver business, such as the pop-behind ads that motivate people to respond by offering a special price deal. Advertisers can also customize and personalize their messages, thanks to database marketing. For the B2B advertiser, Internet advertising can provide excellent sales leads or actual sales. The Internet can also level the playing field for small and medium-sized companies that compete against larger organizations. The cost of creating a web site, a set of ads, and a database is affordable for virtually every marketer.

Undoubtedly, the most serious drawback is the inability of strategic and creative experts to consistently produce effective ads and to measure their effectiveness. Consider, too, that clutter is just as much a problem with the Internet as it is in other media, maybe even worse. (moderate; pp. 301-302; LO2; AACSB Reflective Thinking) 109.

Explain why and how e-mail is used as an advertising medium as well as the issues surrounding its use. Answer: One of the attractive things about e-mail advertising is that it is so inexpensive, and the response rate for an unsolicited e-mail campaign is many times higher than for a banner ad campaign. Unfortunately for e-mail advertisers, people generally do not welcome unsolicited e-mail. Permission marketing attempts to address this problem by asking potential consumers for their permission to send them e-mail. Blasting millions of unsolicited e-mail messages to e-mail in-boxes is called spamming. Consumers who are irritated by the avalanche of solicitations that clutter their in-boxes may think of spam as “junk e-mail,” but providers prefer to call it “bulk e-mail” and see it as an exciting new business opportunity and as a legitimate commercial activity. Proposed solutions to the spam problem usually incorporate one or two permission marketing strategies for consumers to control their inclusion on e-mail lists. Opt-in means that all bulk e-mailers have to get your permission before sending any e-mail. Opt-out means that e-mailers can send a first e-mail, but they have to have an option that makes it possible for you to say no to any further e-mails from that business.

A practice designed to deliver a groundswell of opinion or marketplace demand for a product is called viral marketing, and it uses e-mail to circulate a message among family and friends. (moderate; pp. 292-293; LO3; AACSB Reflective Thinking)

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110.

Explain the terms new media and alternative media, and name and describe some of the alternative and new media forms that advertisers are experimenting with. Explain how they work and what advantages they provide. Answer:

New media forms are called either new media, a phrase that has been used to refer to new electronic forms such as the Internet, or alternative media, which refers to nontraditional or unexpected communication tools and events. The following are the new media or alternative media described in the chapter: (1) Advertainment (a.k.a. branded entertainment)—Integrating brands into the content of television shows. Branded entertainment more aggressively promotes a product than product placement and has been described as situational ads because they are embedded in specific programs; they are harder for viewers to dismiss immediately as ads because the product is a character in the program. (2) New Internet Practices—Brand experiences on the web and Webisodes. Many companies are making their web sites more engaging and entertaining, which is known as providing brand experiences. Webisodes have created a new form of web advertising following the “advertainment” trend in television advertising that blends advertising and entertainment in order to attract audiences turned off by traditional mainstream media. (3) Video Games—The video game business is developing as a major new medium for advertisers to target males aged 12 to 34, although girls are getting into the act as well. Opportunities will be mined by both creating online games as well as placing products within games. The advertisement may be a simple product placement or make the product the star. Planners and buyers are asking for standardized independent data that prove their effectiveness, and Nielsen Media Research is developing a system that will track how many gamers see the ads in the console-based video games. (4) Wireless Communication—The mobile cell phone has exploded as a popular form of telecommunication, and wireless communication that links the common phone to a computer is possibly the most important change in communication systems so far in the new millennium. Instant messaging allows consumers to keyboard brief messages into a cell phone screen, but sending them advertising that way may be seen as invasive, so advertisers must be sure to be relevant and offer opt-in options. (5) Guerilla Marketing—Unconventional marketing communication activities that are intended to get buzz on a limited budget. The idea is to use creative ways to reach people where they live, work, and walk to create a personal connection and a high level of impact. If it works, the encounter gets talked about by word of mouth rather than through media, and thus, has limited reach. (difficult; pp. 302-305; LO4; AACSB Reflective Thinking)

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APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

How did eBay, which was described in the chapter’s opening vignette, start out? a. as a platform for collectors to find specific brands or items b. as an online used book seller c. as an online flea market or garage sale d. as an online site where consumers could swap Beanie Babies e. as an online search engine (c; moderate; p. 285) 112.

What was the objective of eBay’s advertising campaign that was described in the chapter’s opening vignette? a. to move eBay from being seen as an online flea market to a broad-based web marketplace b. to move eBay from being seen as an online used book seller to a broadbased web marketplace c. to move eBay from being seen as an online search engine to an online flea market or garage sale d. to move eBay from being seen as an online used book seller to an online flea market or garage sale where consumers could find a wide assortment of products and brands that others are selling e. to move eBay from being seen as a U.S.-based marketplace to an international marketplace (a; moderate; p. 286) 113.

_______ sites like MySpace and Facebook builds on the interactivity of the Internet. a. Social networking b. Product c. Video game d. Spyware e. Cookie (a; moderate; p. 286; LO4; AACSB Use of IT) 114.

Carla knows that the Internet has existed for many years but has become viable for e-business in only the last 12 years or so. What information interface was developed in the early 1990s that allowed people to access the Internet through an easy-to-use graphical format? a. Interconnects b. Superstitials c. cookies d. World Wide Web e. search engines (d; moderate; p. 287; LO1; AACSB Use of IT)

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115.

Your friend, Mitch, doesn’t really understand all that a business can do through e-business. Which of the following applications would you include in your explanation of e-business to your friend? a. sell products b. manage accounting c. distribution d. advertising e. all of the above (e; easy; p. 294; LO2; AACSB Use of IT) 116.

Alicia has seen news stories about all the private data companies are collecting about consumers, especially from their web searching behavior. She has visited some health-related sites because her mother just learned that she has Type 2 diabetes, and Alicia wanted to be more informed about her mother’s disease and the medication she was prescribed. One web site she visited was the company that manufactures her mother’s medicine. However, Alicia is planning to purchase life insurance within the next year, and she is afraid that the fact that she was researching this disease and medications might negatively affect her premium rates if insurers have access to consumers’ web searching activity. What is the primary reason companies collect consumer information? a. It lets them compile a database that they can sell to other marketers. b. It lets them more precisely determine the price to charge to certain consumers. c. It helps them develop new products based on consumers’ information needs. d. It lets them better target their advertising. e. It lets them evaluate the effectiveness of their web sites. (d; difficult; p. 300; LO2) 117.

Sales staffs have found that through _______ they can give their customers more experiences with products and fast-changing technological trends. a. URLs b. blogs c. Internet support services d. Webisodes e. portals (b; difficult; p. 288; LO1; AACSB Use of IT)

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118.

Rosa Kate’s is a gift shop that specializes in monogramming. The owners want to expand their business by selling on the Internet. What is the online face it presents to the public called? a. search engine b. web site c. interstitial d. superstitial e. blog (b; easy; p. 287; LO1; AACSB Use of IT) 119.

Intel, a manufacturer of computer chips, routinely monitors web sites that scientific users of computers use to contact one another and exchange their opinions and experiences with each other. By monitoring this site, Intel learned of a problem with its Pentium 4 chip that affected computations that used numbers out to several places (i.e., eight or more) to the left of the decimal point when calculating computations. Although this was not a problem for most users of the chip, for scientific applications, it was a very significant problem. The type of web site Intel learned of users’ concerns about the chip as they communicated with each other is most likely a ________. a. blog b. search engine c. B2B forum d. chat room e. customer service site (d; moderate; p. 288; LO1; AACSB Use of IT) 120.

Tony's client wanted a unique communication plan that could make an impact on the target market throughout their day and wherever they happen to be. Tony needs to consider _______ as a major tool for this client's campaign? a. newspaper b. magazine c. nontraditional media d. TV e. intranet (c; easy; p. 304; LO4; AACSB Use of IT) 121.

Emerging media, digital enhancements, place-based, branded environments, guerrilla executions are types of _________. a. nontraditional media b. newspapers c. geek media d. TV e. cutting edge media (a; difficult; p. 304; LO4; AACSB Use of IT)

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As described in “A Matter of Principle,” how did Wilson Sporting Goods get beyond buying eyeballs when sponsoring Tennis Camps? a. advertise extensively on the Internet b. email messages to all of the participants in the camps c. send text messages to the cell phones of the participants in the camps d. demonstrate their products at a trade show e. deliver messages in a context that will intersect with a target audience's interests. (e; moderate; p. 307) 122.

123.

What year did web advertising experience the greatest increase compared to the previous year? a. 2004 b. 2000 c. 2001 d. 2002 e. 2003 (a; moderate; p. 290 [Figure 10.1]; AACSB Analytic Skills) 124.

According to the chapter’s opening and closing vignettes, which of the following is considered the premier online auction site? a. Google b. Amazon.com c. eBay d. Fanfiction.com e. Invisionfree.com (c; moderate; p. 308; AACSB Use of IT) As described in the “Hands On” case at the end of the chapter, what market do the companies hope to reach in Second Life? a. the under 8 girls b. the sales representatives c. the laggards d. the influencers, bloggers, and early adopters e. the soccer moms (d; moderate; p. 311) 125.

126.

Why would marketers targeting Latinos want to be in Second Life? a. Latinos are more imaginative than other people. b. Latinos are more likely to play online games than those in the general market. c. Latinos like to celebrate holidays. d. Latinos are on average younger than the rest of the population. e. Latinos have larger families than the general market. (b; moderate; p. 311)

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APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Bob and Larry have taken their fly fishing equipment and accessory business, Flies-R-Us, to the Internet because they wanted to expand their business. However, they don’t have much money to use conventional media to drive traffic to their site. 127.

Mini-Case Question. What is one of the first things Bob and Larry should do to help build visibility for their web site? a. create a blog about fly fishing b. enter a chat room and start talking about the great assortment, prices, and service FliesRUs.com provides c. register with popular search engines so that their site shows up early on the list provided by the search engine d. develop a fly fishing game on their web site so that consumers will spend more time there e. develop minisites to place on popular fly fishing web pages (c; moderate; p. 299; LO1; AACSB Reflective Thinking) 128.

Mini-Case Question. Small ads for FliesRUs.com were placed on other web pages, such as those frequented by fly fishing enthusiasts, by a web advertising placement company. Consumers could click on the FliesRUs.com’s ad, and they would be taken to the Flies-R-Us web site. What type of Internet ad does this represent? a. pop-up b. banner ad c. minisite d. superstitial e. blog (b; moderate; p. 291; LO1; AACSB Reflective Thinking) 129.

Mini-Case Question. Bob and Larry are getting good at this and have decided they’d like to have an “Internet commercial” on their web site, much like a TV ad but not on TV. What type of Internet advertising is this called? a. pop-up b. move-alongs c. minisite d. banner ad e. superstitial (e; moderate; p. 292; LO1; AACSB Reflective Thinking)

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130.

Mini-Case Question. Bob and Larry wanted to develop a groundswell of marketplace demand for their store, so they used e-mail to circulate a message among all of their family, friends, and customers for which they had e-mail addresses. What type of marketing is this? a. advertainment b. alternative c. viral d. guerilla e. wired (c; moderate; p. 293; LO1; AACSB Reflective Thinking)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

Explain the objective of the eBay advertising campaign that was described in the chapter’s opening vignette as well as how they executed the campaign. Answer:

The objective was to move eBay from being seen as an online flea market to a broad-based web marketplace. The campaign also was designed to remind users of the entertainment value of eBay, what the company calls “the gaming aspect of it.” Even eBay’s approach to advertising is nontraditional and honors the company’s customer-focused core values. They partnered with other companies in its advertising, such as UPS, and advertised their Entertainment section jointly with E! Entertainment. eBay’s advertising also had a B2B effort for its eBay Business, which was launched as a subsite in 2003. The integrated effort included ads aimed at business decision makers in print, direct mail, online, and e-mail. (moderate; p. 285; LO2; AACSB Reflective Thinking) 132.

Mindy understands what is meant by the term Internet advertising, but she’s not really sure how that is different from the term e-business. Explain the concept of e-business and how it is different from Internet advertising. Answer:

E-business refers to all the hardware, software, and computer know-how that provides a platform for businesses that use the Internet to sell products, as well as to manage their accounting, distribution, production, advertising, customer service, personal sales, internal communication to employees, and external communication to outside stakeholders. Internet advertising is merely one component of the concept of e-business. (moderate; p. 294; LO2; AACSB Reflective Thinking)

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133.

Describe nontraditional media and explain how advertisers can use this media presented in “The Inside Story.” Answer:

Nontraditional media include emerging media and digital enhancements, placebased, branded environments, and guerilla executions. These media provide an entrée for new advertisers and expand current advertiser portfolio. These new formats are often used in conjunction with out-of-home (OOH) media. New technologies allow for consumer interaction in the outdoor environment. (moderate; p. 304; LO4) 134.

As described in “A Matter of Principle,” how did Wilson Sporting Goods succeed in delivering a message to a target audience? Answer:

There is a difference between “buying eyeballs” and delivering messages in a context that will intersect with a target audience’s interests. Wilson Sporting Goods, sponsors Tennis Camps by furnishing practice balls and making racquets available that participants can try for free. Even though the camp may be surrounded by Wilson, the message is relevant and the brand experiences are positive. The point is that the less relevant the messages, the more irritating they become. (easy; p. 307; LO4) 135.

Kevin, the tech support person where Lori works, ran a Spybot software program on Lori’s computer because she was afraid of viruses. The sweep revealed was several cookies. Lori doesn’t understand what those are and asked Kevin about them. What should Kevin tell her? Answer:

Tracking information is a common practice on the Internet, and cookies are little electronic bugs that can be placed on your computer by a web server to track your movements online. They don’t do anything bad, like a virus does, but they do report back to their owners what sites you visited and from that can build an online profile about you and your interests. On the good side, cookies let companies store information about your registration, as well as your preferences, so you don’t have to retype everything every time you go to that site. (moderate; p. 300; LO2; AACSB Reflective Thinking)

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136.

Jim was looking for information on jet skis because he was interested in buying one. So he went to the Internet and “googled” it using the key words jet skis. Several results were returned, and he noticed that there were several “sponsored links” to businesses selling jet skis and accessory items along the top and right side of the search results page. In fact, “Honda Jet Ski Deals” was in blue along the top, and when he clicked on it, it took him to Honda Motorcycle’s web site where he could get more information on Honda jet ski products. What is Google, and how do marketers get these “sponsored links” on the results pages? Answer:

Google, Yahoo!, and Ask.com are Internet search engines that Internet users use to find information. These Internet tools use keywords, such as topics (i.e., jet skis) or company or brand names, to compile a collection of information relating to that word. For marketers, an important first step in creating a viable web site is getting it registered with popular search engines so that it begins building visibility and shows up early on the list provided by the search engine. Another search engine role is to provide a site on which advertisers can place ads. The phrase search marketing describes an approach that relies on actions initiated by consumers. Because they are searching for a particular topic, web sites and the ads on them are not perceived to be as intrusive as other forms of advertising. Students may mention that the “Honda Jet Ski Deal” is a banner ad, but actually, it did not appear that Google had banner ads on the search result page. They were merely links off to the right and Honda’s on top, which were clearly identified as “sponsored links.” (moderate; pp. 287-288; LO1)

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137.

Amie saw the movie The Phantom of the Opera and really liked it. She was familiar with the music because her mother purchased the CD after she saw the play in New Orleans, but Amie had never seen it before. Once she saw the movie, however, she got really interested in it and even read the book. She also has searched the Internet and found one site that other fans use to contact one another and exchange their opinions and experiences. She even rented the silent version of the movie, but the ending was defective. She asked other fans, through the Internet, about the ending and received feedback immediately. From this site she can also link to several fans’ personal online “diaries” about Phantom. She has also found an area on Fanfiction.com where people post their own stories about Phantom, and she uploaded one herself and received favorable reviews. What are the sites where Amie can interact with other fans and those that are other fans’ electronic diaries called, and why should advertisers be aware of them? Answer:

Groups of people with a special interest can contact one another and exchange their opinions and experiences though chat rooms, which are sites located online, sometimes as part of an organization’s web site, but sometimes completely independent of any company. Chat rooms are good information sources regarding customer and industry perspectives, as well as competitive information. A new communication form is the blog (short for web log), which is a personal diary-like web page that is created by an individual. These personal publishing sites also contain links to other related sites that the writer feels are relevant. (moderate; p. 288; LO1; AACSB Reflective Thinking) 138.

Jerome wants to use the Internet to expand his business but is not sure he understands how the Internet audience is measured. Explain variables that are used to measure Internet web site audiences and Internet advertising. Answer:

Hits (the number of times a particular site is visited), viewers (the number of viewers to a site), unique visitors (the number of different viewers during a particular time period), and page views (the number of times viewers view a page) are variables used to track a consumer through a web site. The primary method currently used to measure consumer response to Internet advertising is clickthrough, which is the number of people who click on a banner ad. (moderate; p. 300; LO1)

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139.

Several businesses are using the Internet to expand internationally. Name and describe five barriers the web faces as an international marketing and advertising medium. Answer:

The web is an international marketing and advertising medium, but it faces several barriers: (1) Access—Not everyone around the globe has the access or ability to use the Internet via computer. (2) Legal—Advertising and sales promotion laws differ from country to country. (3) Linguistic—Although English is the dominant language on the Internet, some advertisers who want to provide different web sites for different countries have trouble ensuring consistency across all sites. (4) Currency rates—Companies must decide whether to offer prices in their own currency or in the local currency. (5) Technological—Marketers must also keep in mind the technological differences among the worldwide Internet audiences. (moderate; p. 299; LO1; AACSB Multicultural and Diversity) 140.

There has been an increase in concern over several direct marketing tactics, particularly bulk e-mail marketing. Some consumer groups and lawmakers want to require marketers to first gain permission from consumers before they could send e-mail, while others are satisfied if an initial unsolicited e-mail message provides a means for consumers to indicate they do not want to be contacted any further. Name these two solutions and briefly describe them.

Answer: Proposed solutions to the “don’t bother me” problem are one of two forms of permission marketing strategies. Opt-in means that advertisers have to get your permission before sending any e-mail. This is the form used by legitimate e-mail advertising businesses and one that is both tougher for spammers to abuse and more sensitive to consumer rage when they do. Opt-out means that e-mailers can send a first e-mail, but they have to have an option that makes it possible for you to say no to any further e-mails from that business. (moderate; p. 293; LO1; AACSB Reflective Thinking)

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141.

When Procter & Gamble introduced Physique shampoo, they sent e-mails to people asking for referrals. People referring 10 friends to the shampoo’s promotional web site received free merchandise and were entered into a sweepstakes to win a year’s supply of the shampoo. Explain what this technique is known as and why marketers use it. Answer:

This is an example of viral marketing, which is a practice designed to deliver a groundswell of opinion or marketplace demand for a product. It uses e-mail to circulate a message among people. In this case, P&G wanted the initial recipients to forward the message on to at least 10 others. (moderate; p. 293; LO3; AACSB Reflective Thinking) 142.

To get consumers to come back frequently to their web site, Amazon.com is considering developing a series of movie critics and book reviewers reviewing DVDs and books that are available to the market that week. The format is to be entertaining where two reviewers will banter with each other during their reviews, being serious yet humorous. Explain what this new Internet practice is called and why advertisers are starting to use it more often. Answer:

These are called Webisodes, which are similar to television programs with recurring episodes in a developing story. They have created a new form of web advertising following the “advertainment” trend in television advertising that blends advertising and entertainment in order to attract audiences turned off by traditional mainstream media. (moderate; p. 299; LO2) 143.

In one promotional activity, MSN.com had actors dressed as butterflies skate around the streets of New York. Based on what you learned in this chapter, what form of advertising media does this represent, why do advertisers use it, and are there any drawbacks? Answer:

This is an example of guerilla marketing, which is unconventional marketing communication activities that are intended to get buzz on a limited budget, usually using alternative media. The idea is to use creative ways to reach people where they live, work, and walk to create a personal connection and a high level of impact. If it works, the encounter gets talked about by word of mouth rather than through the media. However, this approach does have limited reach. (moderate; p. 302; LO4; AACSB Reflective Thinking)

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144.

Describe eBay’s global ties in the chapter’s closing vignette. Answer:

eBay closed its Web site in China and joined forces with a Chinese e-commerce company after it realized that it lacked important political influence and knowledge about the Chinese market. (moderate; p. 308) 145.

As discussed in the “Hands On” case at the end of the chapter, describe the successful approach Pontiac took when entering Second Life. Answer:

Pontiac created a store and racetrack and gave away land to other car-related venues. They attracted a community and earned the highest dwell quotient on Second Life which is based on the number of visitors and the length of the visit over a period of time. (moderate; p. 311)

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Talbots is a women’s clothing store that sells only Talbots brand clothing, and it is fashionable, yet classic. It is relatively high-priced, but not priced at the level of designer clothing. Talbots has expanded its reach through their transactional web site, and they are interested in getting more traffic to their site as well as to use alternative media to reach their target market. 146.

Mini-Case Question. Talbots has the ability to collect preference and choice information on visitors to its web site, but it is very concerned that their customers understand that they maintain a responsible position with respect to their use of that data. How do businesses inform visitors to their web site of this fact? Answer:

Companies try to maintain a responsible position by posting their privacy policy on their web sites, which details, among other things, how or whether the site is collecting data on its visitors and how that data are used. (easy; p. 300; LO2; AACSB Ethical Reasoning)

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147.

Mini-Case Question. When customers purchase from the Talbots web site, they do not have to enter all of their billing and shipping information because it automatically comes up when they enter their Talbots account number. What enables marketers to do this? Answer:

Cookies are little electronic bugs that can be placed on your computer by a web server to track your movements online. One good thing about cookies is that they let companies store information about your registration, as well as your preferences, so you don’t have to retype everything every time you go to that site. (easy; p. 300; LO2; AACSB Reflective Thinking) 148.

Mini-Case Question. Talbots wants to increase its Internet advertising. Name and describe the types of Internet advertising available. Answer: (1)

Banner Ads—Small ads on other web pages on which people can click to move to the advertised web site. (2) Skyscrapers—Extra-long, skinny ads running down the right or left side of a web site. (3) Pop-Ups and Pop-Behinds—Burst open on the computer screen either in front of or behind the opening page of the web site. (4) Minisites—Allow advertisers to market their product without sending people away from the site they’re visiting. (5) Superstitials—Thought of as “the Internet’s commercial,” designed to work like TV ads. (moderate; pp. 291-293; LO2) 149.

Mini-Case Question. When customers visit or purchase from the Talbots web site, they are asked to check a box if they want to receive e-mail messages from Talbots announcing sales and special offers. What is this known as and why do you think Talbots does it this way instead of simply sending e-mail to customers who provide their e-mail addresses when purchasing? Answer:

This is known as opt-in, which means that bulk e-mailers get your permission before sending any e-mails. Although currently not required by any law, this is one form of permission marketing. This is the form used by legitimate e-mail advertising businesses and is more sensitive to consumer rage over spam. (moderate; p. 293; LO3; AACSB Communication)

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150.

Mini-Case Question. Talbots would also like to get their clothing integrated into popular television shows that are viewed by their target market. Because viewers would not be able to see the brand name if an actress is wearing the clothes, Talbots wants to be an integral part of the story in a given episode. Name and describe this alternative media option. Answer:

Several companies have begun integrating brands into the content of television shows—known as advertainment or branded entertainment. Branded entertainment more aggressively promotes a product than product placement. Described as situational ads because they are embedded in specific programs, they are harder for viewers to dismiss immediately as ads because the product is a character in the program. (moderate; p. 303; LO1)

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CHAPTER ELEVEN Media Planning and Buying

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

Which of the following groups of people are NOT involved in the development of an advertiser’s media plan? a. agency’s media department b. agency’s account and creative teams c. advertiser’s brand management group d. media buying companies e. advertiser's operations staff (e; moderate; p. 315; LO4) 2.

Moving the media-buying function outside the agency is known as ___________. a. outsourcing b. aperture c. unbundling d. consolidation e. tactical buying (c; moderate; p. 342) 3.

Prospective customers for a product or service have one or more ideal times and places at which they can be reached with an advertising message. This ideal point is called a(n) ___________. a. aperture b. contact point c. touch point d. impression e. targeted reach (a; moderate; p. 320; LO1; AACSB Communication) 4.

Based on the concept of aperture, what is the goal of media planning? a. to get the broadest reach at the lowest cost b. to get the highest frequency at the lowest cost c. to get the broadest reach and highest frequency at the lowest cost d. to reach the right people at the right time with the right message e. to reach as many people as possible within the constraints of the media budget (d; moderate; p. 320; LO1; AACSB Communication)

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Part Three: Practice: Where Are Media Heading?

Which plan specifically summarizes the objectives and strategies pertinent to the placement of a company’s advertising message? a. corporate plan b. marketing plan c. advertising plan d. media plan e. message plan (d; moderate; p. 318; AACSB Communication) 6.

A(n) ___________ is a point where a consumer has an opportunity to connect with a brand and respond in some way to a brand message. a. contact point b. touch point c. aperture point d. impression point e. rating point (a; moderate; p. 318; LO3; AACSB Communication) 7.

Which of the following is a source of information for a media planner? a. client information b. market research c. competitive advertising d. consumer information e. all of the above (e; easy; pp. 315-316) 8.

Which of the following is NOT a source of information for a media planner? a. client information b. market research c. competitive advertising d. consumer information e. All of the above are sources of information for media planners. (e; easy; pp. 315-316) 9.

Which of the following sources of information provides information to the media planner regarding targeted markets, previous promotions and their performance, product sales and distribution patterns, brand plans, and the budget? a. client information b. market research c. competitive advertising d. consumer information e. media information (a; easy; p. 315)

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10.

Which concept measures the percentage of total advertising spending by one brand in a product category relative to the competition? a. share of market b. share of voice c. share of media d. share of spending e. share of category (b; moderate; p. 316) 11.

Which concept gives media planners an idea of how much their advertising will stand out? a. share of market b. share of voice c. share of media d. share of spending e. share of category (b; moderate; p. 316) 12.

One type of media-related information about markets is the broadcast coverage area for television, which is called a(n) ___________ and is referred to by the name of the largest city in the area. a. metropolitan statistical area (MSA) b. area of influence (AOI) c. designated marketing area (DMA) d. metropolitan marketing area (MMA) e. designated commerce area (DCA) (c; moderate; p. 316) 13.

A designated marketing area (DMA) assignment is based on ________. a. the population of the surrounding area b. number of television stations in the area c. the number of broadcast media outlets available d. how many households have cable or satellite television e. geographic sales variations (e; difficult; p. 316) 14.

Which of the following is NOT a critical element that media planners must consider in setting specific media objectives? a. price of the product b. frequency of exposure c. number of different people exposed to the message d. repetition needed to reach people and make an impression on them e. waste (a; difficult; pp. 321-323; LO2; Analytic Skills)

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15.

Which of the following is NOT a critical element that media planners must consider in setting specific media objectives? a. reach b. impressions c. frequency d. cost per thousand e. All of the above are critical elements that media planners must consider in setting specific media objectives. (d; difficult; pp. 321-323;LO2; Analytic Skills) 16.

A valuable tool for media planners, _______, is provided by companies such as MRI and is usually organized by product category and cross-tabulated by audience groups and their consumption patters. a. client information b. market research c. competitive advertising d. media usage profiles e. media coverage area (b; moderate; pp. 315-316; LO3) 17.

The _______ is a good information source for demographic profiles of current customers, previous promotions, and the budget of the media plan. a. client information b. market research c. competitive advertising d. media usage profiles e. media coverage area (a; moderate; p. 315; LO3) 18.

In crowded product categories companies must keep aware of _______ activity. The objective is to find media where the advertiser's voice is not drowned out by competitors' voices. a. client information b. market research c. competitive advertising d. media usage profiles e. media coverage area (c; moderate; p. 316; LO3)

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19.Which of the following statements is TRUE regarding gross rating points (GRPs)? a. An effective media plan should deliver at least 100 GRPs per week. b. There is no good rule of thumb regarding how many GRPs are enough. c. GRPs should not be used to compare the efficiency of different media schedules. d. The desired level of GRPs should remain constant among different markets. e. The calculation of GRPs takes into account duplication of exposure. (b; moderate; p. 326; LO2; AACSB Analytic Skills) 20.

Which concept describes how many different members of the target audience can be exposed to the message in a particular time frame? a. reach b. frequency c. continuity d. impression e. effective frequency (a; moderate; p. 321; LO2; AACSB Analytic Skills) 21.

Reach is a measure of ________. a. how many times an audience is exposed to a message b. the sum of the audiences of all the media used during a certain span of time c. unduplicated audiences d. gross rating points e. cost per thousand (c; moderate; p. 321; LO2; AACSB Analytic Skills) 22.

________ is the percentage of a medium’s audience that is exposed at least once to the advertiser’s message during a specific time frame. a. Reach b. Frequency c. Continuity d. Impression e. Cost per thousand (a; moderate; p. 321; LO2; AACSB Analytic Skills) 23.

Which concept reflects the rate of exposure and measures the number of times the exposure is expected to happen? a. reach b. frequency c. continuity d. impression e. effective frequency (b; easy; p. 321; LO2; AACSB Analytic Skills

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24.

Which two methods do media planners use to estimate the frequency of a schedule? a. pulsing and flighting b. weighted frequency and weighted reach c. average frequency and gross frequency d. average frequency and frequency distribution e. gross frequency and frequency distribution (d; moderate; pp. 321-322; LO2; AACSB Analytic Skills) 25.

When is NOT advisable to use magazines in the media plan according to "Practical Tips" in the chapter? a. you have a target market defined by some special interest b. you have a product that needs to be shown accurately and beautifully c. a high quality image is important d. you need to explain how something works e. you need to demonstrate the product (e; moderate; p. 325; LO2; AACSB Analytic Skills) 26.

When is NOT advisable to use radio in the media plan according to "Practical Tips" in the chapter? a. you are a local business and want to reach a local market b. you need to show the product c. you want to build frequency d. you have a reminder message e. your audience aligns with certain types of music (b; easy; p. 325; LO2; AACSB Analytic Skills) 27.

Which of the following statements is false regarding average frequency and/or frequency distribution? a. Most planners prefer to use average frequency instead of frequency distribution. b. Average frequency can give the planner a distorted idea of the plan’s performance. c. The frequency distribution method is more revealing than the average frequency method of reporting repetition. d. To figure the average frequency, you need only two numbers: the gross rating points of a schedule and the reach estimate. e. Media planners can also calculate the average frequency from the gross impressions and the unduplicated impressions. (a; difficult; p. 322; LO2; AACSB Analytic Skills)

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28.

Which concept is based on the belief that there should be a threshold, or minimum frequency level, before media planners consider an audience segment to have been exposed to the advertising message? a. reach b. frequency c. average frequency d. frequency distribution e. effective frequency (e; moderate; p. 322; LO2; AACSB Analytic Skills) 29.

Media planners determine the most cost-effective media mix that will reach the target audience and satisfy the media objectives through the ________. a. marketing strategy b. advertising strategy c. media strategy d. media tactics e. media evaluation (c; moderate; p. 320; LO2; AACSB Analytic Skills) 30.

Which is the first and most important media objective? a. reach b. frequency c. continuity d. effective frequency e. average frequency (a; moderate; p. 321; LO2; AACSB Analytic Skills) 31.

What is a general rule of thumb regarding the number of exposures needed for a message to sink in? a. one to two b. two to three c. three to ten d. four to five e. more than five (c; moderate; p. 322; LO2; AACSB Analytic Skills) 32.

Assessing the media for target audience opportunities is a major challenge for media planners, so media planners have to consider the ________ of a specific media vehicle. a. average frequency b. targeted reach c. effective frequency d. targeted frequency e. effective reach (b; difficult; pp. 321, 329; LO2; AACSB Communication)

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33.

Which of the following is NOT target audience information considered by media planners when determining appropriate media to reach their target audience? a. consumer media use b. geography c. consumption patterns d. income distributions e. All of the above are considered by media planners. (d; difficult; p. 329; LO2; AACSB Communication) 34.

What type of schedule is used in special regions or cities that need to be emphasized more than others? a. continuous schedule b. flighting schedule c. heavy-up schedule d. pulsing schedule e. frequency schedule (c; moderate; p. 329; LO2; AACSB Analytic Skills) 35.

Which of the following is an index of the relative consumption rate of a product in a particular market? a. product development index (PDI) b. category development index (CDI) c. brand development index (BDI) d. buying power index (BPI) e. market share index (MSI) (b; moderate; p. 329; LO2; AACSB Analytic Skills) 36.

Which of the following is an index of the consumption rate of a brand in a particular market? a. product development index (PDI) b. category development index (CDI) c. brand development index (BDI) d. buying power index (BPI) e. brand share index (BSI) (c; moderate; p. 329-330; LO2; AACSB Analytic Skills)

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37.

Which of the following is NOT a reason most organizations need a variety of ways—a media mix—to get their messages out to their customers? a. They would not be able to attain the desired level of reach and frequency if relying on just one medium. b. Using a number of media distributes the message more widely because different media tend to have different audience profiles. c. Some people reject certain media. d. Different media have different strengths in terms of reach and frequency. e. They attempt to create a synergistic effect between the messages delivered in different media. (a; difficult; p. 323; LO2; AACSB Analytic Skills) 38.

What decision criterion designed to show the relative proportion of media activity in terms of any number of factors, such as seasonality, geography, or audience segment, do media planners use to help them decide how much to budget. a. image transfer b. average frequency c. effective frequency d. weighting e. optimum frequency (d; difficult; p. 330; LO2; AACSB Analytic Skills) 39.

What do media planners use to assist them in making intelligent decisions regarding the media mix selection, given factors such as budget, timing, and so forth? a. computer optimization modeling b. linear programming c. synergistic analysis d. computer simulations e. media matrix analysis (a; moderate; p. 331; LO2; AACSB Analytic Skills) 40.

Which calculation of efficiency is an estimate of the cost to expose 1,000 audience members? a. cost per point (CPP) b. cost per thousand (CPM) c. cost per impression (CPI) d. brand development index (BDI) e. category development index (CDI) (b; easy; p. 332; LO2; AACSB Analytic Skills)

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41.

What does CPM stand for? a. cost per million b. cost per impression c. cost per thousand d. cost per point e. cost per medium (c; easy; p. 332; LO2; AACSB Analytic Skills) 42.

Which is a method of comparing media vehicles by relating the cost of the message to the audience rating? a. cost per point (CPP) b. cost per thousand (CPM) c. cost per prospect (CPP) d. brand development index (BDI) e. category development index (CDI) (a; easy; p. 333; LO2; AACSB Analytic Skills) 43.

What two figures are needed to calculate cost per thousand (CPM)? a. cost of message unit (i.e., ad cost) and program or issue rating b. cost of message unit (i.e., ad cost) and frequency of exposure c. average frequency and estimated target audience reached by media vehicle d. cost of message unit (i.e., ad cost) and estimated target audience reached by media vehicle e. gross rating points and reach (d; moderate; pp. 332-333; LO2; AACSB Analytic Skills) 44.

The newspaper in Panama City, Florida, The News Herald, charges national advertisers $45.00 per column inch. On Sunday, which is the day most national advertisers would want to advertise, this newspaper has a circulation of 70,000 households. Assuming only 40,000 are part of an advertiser’s target audience, calculate CPM for one column inch. a. $0.64 b. $1.13 c. $6.40 d. $11.30 e. $1,800 (b; moderate; p. 333; LO2; AACSB Analytic Skills)

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45.

On Wednesday nights, one TV hit commanded the highest advertising rates for the network TV season, costing advertisers $658,333 per 30 seconds. During one Wednesday in April, the hit show had almost 25 million viewers. Assuming all viewers represent an advertiser’s target audience, calculate CPM. a. $0.04 b. $2.63 c. $26.33 d. $37.97 e. $263.30 (c; moderate; p. 333; LO2; AACSB Analytic Skills) 46.

On Wednesday nights, a hit TV show commanded the highest advertising rates for the network TV season, costing advertisers $658,333 per 30 seconds. This ad cost was based on an average rating of 16.3 for this program during the previous TV season. The hit show reached an audience of almost 25 million viewers during one week in April. Calculate the CPP. a. $26.33 b. $40.39 c. $26,330 d. $40,388 e. not enough information to determine (d; difficult; p. 333; LO2; AACSB Analytic Skills) 47.

Which of the following statements is true regarding cost per thousand (CPM) and/or cost per point (CPP)? a. CPP is calculated by dividing the ad cost by the rating and then multiplying by 1,000. b. CPM is calculated by dividing the ad cost by the estimated audience reached. c. CPM is a measure of efficiency and CPP is a measure of effectiveness. d. CPM and CPP are both ways of measuring a target audience's size against the cost of reaching that audience based on calculations of efficiency. e. The efficiency calculations cannot be used to compare one medium to another. (d; moderate; p. 332; LO2; AACSB Analytic Skills) 48.

Which of the following is NOT a media scheduling strategy media planners must consider? a. timing b. duration of exposure c. continuity of exposure d. cost per thousand e. All of the above are media scheduling strategies media planners must consider. (d; moderate; p. 331; LO3; AACSB Analytic Skills)

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49.

Which media scheduling decision relates to factors such as seasonality, holidays, days of the week, time of day, how often product is bought, whether it is used more in some months than in others, the consumer’s best aperture, and competitors’ advertising schedules? a. duration b. continuity c. timing d. frequency e. reach (c; moderate; p. 331; LO3; AACSB Analytic Skills) 50.

When it comes to timing with respect to scheduling strategies, what two critical questions must the media planner consider? a. duration and continuity b. CPM and CPP c. reach and frequency d. impressions and ratings e. flighting and pulsing (a; moderate; p. 331; LO3; AACSB Analytic Skills) 51.

What concept refers to the amount of time allowed before the beginning of the sales period to reach people when they are just beginning to think about seasonal buying? a. continuity b. lead time c. duration d. flow e. just-in-time (b; moderate; p. 331; LO3; AACSB Analytic Skills) 52.

What concept refers to the amount of time allowed before the beginning of the sales period to reach people when they are just beginning to think about seasonal buying as well as to the production time needed to get the advertisement into the medium? a. continuity b. lead time c. duration d. flow e. just-in-time (b; moderate; p. 331; LO3; AACSB Analytic Skills)

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53.

What concept refers to the production time needed to get the advertisement in to the medium? a. continuity b. lead time c. duration d. flow e. just-in-time (b; moderate; p. 331; LO3; AACSB Communication) 54.

________ refers to the way the advertising is spread over the length of a campaign. a. Continuity b. Lead time c. Duration d. Flow e. Just-in-time (a; moderate; p. 331; LO3; AACSB Communication) 55.

Which continuity schedule spreads the advertising evenly over the campaign? a. pulsing b. flighting c. continuous d. even e. steady (c; moderate; p. 331; LO3; AACSB Communication) 56.

Which continuity schedule is designed to intensify advertising before an open aperture and then to reduce advertising to much lower levels until the aperture opens again and has peaks and valleys, also called bursts? a. pulsing b. flighting c. continuous d. even e. steady (a; moderate; p. 332; LO3; AACSB Communication) 57.

Which continuity strategy is the most severe type of continuity adjustment and is characterized by alternating periods of intense advertising activity and periods of no advertising (hiatus)? a. pulsing b. flighting c. continuous d. even e. steady (b; moderate; p. 331; LO3; AACSB Communication)

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58.

The period of time during which there is no advertising during a flighting schedule is known a(n) ________. a. flight b. pulse c. down time d. carryover e. hiatus (e; moderate; p. 331; LO3; AACSB Communication) 59.

In the flight strategy works, there will be a(n) ________, which means that consumers will remember the product across the gap until the next advertising period begins. a. carryover effect b. hiatus c. spillover effect d. lingering effect e. gap effect (a; moderate; p. 331; LO3; AACSB Analytic Skills) 60.

After the schedule has been worked out in terms of what media run when and for how long, these decisions ________. a. are written in a report to the client b. are entered into a spreadsheet c. plotted on a scatter plot d. plotted on a media flow chart e. plotted on a scree plot (d; moderate; p. 332; LO3; AACSB Analytic Skills) 61.

What is the most common format used to present the media allocation decisions? a. flowchart b. spreadsheet c. scatter plot d. scree plot e. pie chart (e; moderate; p. 333; LO3; AACSB Analytic Skills) 62.

Which of the following is a function of a media buyer? a. provide information to media planners b. select the media vehicles c. negotiate cost and make the media buy d. handle all billing and payment e. all of the above (e; moderate; p. 339; [Figure 11.7]; LO4)

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63.

Which of the following is NOT a function of a media buyer? a. provide information to media planners b. evaluate media choice after campaign c. negotiate cost and make the media buy d. handle all billing and payment e. All of the above are functions of a media buyer. (e; moderate; p. 339; [Figure 11.7]; LO4) 64.

Which of the following is the key function of media buying? a. provide information to media planners b. select the media vehicles c. negotiate cost and make the media buy d. handle all billing and payment e. monitor the media plan performance (b; moderate; p. 340; [Figure 11.7]; LO4) 65.

With the current trend toward using other forms of marketing communication in addition to advertising, buyers often demand additional promotional support, and these activities are sometimes called ________. a. add-ons b. make-goods c. value-added media services d. preferred placements e. incentives (c; moderate; p. 340; LO4) 66.

A policy of compensating advertisers for errors, such as missed positions or errors in handling the message presentation, is known as ________. a. make-ups b. make-goods c. up-fronts d. recompensations e. remuneration (b; moderate; p. 341; LO4; AACSB Communication) 67.

Magazines and newspapers have clearly set production deadlines called ________. a. closings b. make-goods c. lead times d. preemptions e. drop-deads (a; moderate; p. 341; LO4; AACSB Communication)

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68.

The growth of media buying services as separate companies that specialize in media buying that has shifted the way the media industry is organized is referred to as ________. a. consolidating media service b. acquiring media services c. spinning media services d. unbundling media services e. detaching media services (d; moderate; p. 342; LO4; AACSB Communication) 69.

Why have several advertising agencies unbundled their media buying function? a. They were required to unbundled their media buying function by the FTC. b. They could become more of an expert in media buying if it was removed from the overall agency structure. c. They can aggregate the buying function across many different clients. d. They wanted to avoid client conflicts. e. They could better consolidate it with the media planning function. (c; difficult; p. 342; LO4; AACSB Communication) 70.

Media companies that have brought the planning and buying functions back together offer ________. a. value-added services b. consolidated services c. make-goods d. bundled media services e. full services (b; moderate; p. 342; LO4; AACSB Communication) GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

Aperture is the point where a consumer has an opportunity to connect with a brand and respond in some way to a brand message. (False; moderate; p. 320; LO1; AACSB Communication) 72.

Media planners use client information, market research, competitive advertising, media information, and consumer information before media decision-making begins. (True; moderate; pp. 315-316) 73.

Sales geography is considered by the media planner because sales differences affect the decision about which markets the advertiser should reach for the campaign and how many dollars are allocated to each geographic region. (True; easy; p. 315; LO3; AACSB Communication)

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74.

Aperture measures the percentage of total advertising spending by one brand in a product category relative to the competition, giving media planners an idea of how much their advertising will stand out. (False; moderate; p. 320; LO1 AACSB Analytic Skills) 75.

Information provided by various media is most useful for media planners because it best reflects the true value of the medium to advertisers. (False; difficult; p. 316 AACSB Analytic Skills) 76.

The broadcast coverage area for television is called a designated marketing area (DMA) and is referred to by the name of the largest city in the area. (True; moderate; p. 316 AACSB Analytic Skills) 77. Media is a combination of reach and frequency. (False; difficult; pp. 321-322; LO2; Communication) 78.

Different or unduplicated audiences are those who have at least one chance to be exposed to a message. (True; difficult; p. 321; LO2; Analytic Skills) 79. Reach is the first place to start in setting objectives for a media plan. (True; moderate; p. 321; LO2; Analytic Skills) 80.

Reach is the percentage of a medium’s audience that is exposed at least once to the advertiser’s message during a specific time frame. (True; moderate; p. 321; LO2; Analytic Skills) 81. Use national television if you need to reach a wide mass audience. (True; easy; p. 325; LO2; Analytic Skills) 82. Average frequency gives the planner the best picture of the plan’s performance. (False; moderate; p. 321; LO2; Analytic Skills) 83.

The frequency distribution method is more revealing, and thus more valuable, than the average frequency method in reporting repetition. (True; moderate; p. 322; LO2; Analytic Skills) 84.

The idea behind the concept of effective frequency is that you add frequency to reach until you get to the level where people respond. (True; moderate; p. 322; LO2; Analytic Skills) 85.

In terms of frequency, a general rule of thumb is that it takes more than 10 exposures for a message to sink in. (False; moderate; p. 322; LO2; Analytic Skills)

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86.

The tighter the focus on a target market, the more difficult it is to find appropriate media to deliver a relevant message. (False; moderate; p. 329; LO3; Communication) 87.

Target information used by media planners includes the targeted reach of a vehicle, consumer media use, geography, and consumers’ consumption patterns. (True; moderate; p. 329; LO3; AACSB Analytic Skills) 88.

Despite the increase in media options, consumer audiences of traditional media, such as broadcast TV, daily newspapers, and consumer magazines, continue to increase. (False; moderate; p. 318 AACSB Communication) 89.

In most cases, the media plan will identify special regions or cities to be emphasized with a heavy-up schedule, which means proportionately more of the budget is spent in those areas. (True; moderate; p. 329; LO3; Analytic Skills) 90.

Planners typically make heavier allocations in weak sales areas because they are the areas that promise the greatest growth. (False; difficult; p. 330; LO3; AACSB Analytic Skills) 91.

One reason why organizations need a variety of ways (i.e., a media mix) to get their messages out to their customers is the fact that some people reject certain media. (True; moderate; p. 323; LO3; AACSB Analytic Skills) 92.

Transformational advertising refers to the synergistic way radio, in particular, reinforces and re-creates the message in a listener’s mind. (False; difficult; p. 328; LO3; AACSB Communication) 93.

Media planners often use a decision criterion called weighting to help them decide how much to budget. (True; easy; p. 330; LO2; AACSB Analytic Skills) 94.

Currently, there are no computerized optimization models to assist media planners in their job. (False; moderate; p. 331; LO2; Analytic Skills) 95.

Positioning research suggests that within a print medium the inside cover and first few pages have slightly better readership. (True; easy; p. 330) 96.

Cost per thousand is a measure used to determine the effectiveness of a media vehicle. (False; moderate; p. 333; LO2; Analytic Skills)

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97. CPM and CPP are more valid when used to compare vehicles within a medium. (True; moderate; p. 333; LO2; AACSB Analytic Skills) 98.

When considering the timing strategy of a media plan, the two critical questions to consider are duration and continuity. (True; easy; p. 331 AACSB Analytic Skills) 99.

A pulsing strategy is the most severe type of continuity adjustment and is characterized by alternating periods of intense advertising activity and periods of no advertising. (False; moderate; p. 332; LO2; AACSB Analytic Skills) 100. There has been a tremendous increase in global media in the last five years. (False; moderate; p. 334; LO3 AACSB Communication) 101.

Media buyers should be consulted early in planning, as they are a good source of information on changes in media. (True; easy; pp. 339-340; LO4 AACSB Analytic Skills) 102.

Media buyers negotiate rates, preferred positions, and extra support offers on behalf of their clients. (True; easy; pp. 339-340; LO4 AACSB Analytic Skills) 103.

Program preemptions, missed closings, and/or technical problems caused by the media will require them to offer make-goods to the advertiser. (True; moderate; p. 341; LO4 AACSB Communication) 104.

Unbundling media services has allowed agencies to aggregate the buying function across many different clients. (True; easy; p. 342; LO4 AACSB Analytic Skills) 105.

Calls for reform, which include better metrics on all media, are needed to reflect the different ways consumers are using media. (True; easy; p. 343; LO4 AACSB Analytic Skills)

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GENERAL CONTENT: ESSAY QUESTIONS 106.

Name and describe the information sources media planners use in developing a media plan. Answer:

There are four major sources of information media planners use: (1) Client Information—The client is a good source for various types of information, such as targeted markets, previous promotions and their performance, product sales and distribution patterns, brand plans, and, most importantly, the budget. (2) Market Research—Independently gathered information about markets and product categories, such as that provided by MRI, Scarborough, and Mendelsohn. This information is usually organized by product category and cross-tabulated by audience groups and their consumption patterns. (3) Competitive Advertising—Few advertisers ignore competitors’ advertising activity. Media planners make scheduling decisions based on the amount of competitive traffic, and the objective is to find media where the advertiser’s voice is not drowned out by competitors’ voices. This concept is called share of voice, which measures the percentage of total advertising spending by one brand in a product category relative to the competition, giving media planners an idea of how much their advertising will stand out. (4) Media Information—Various media all provide information about the size and make-up of their audiences. Although useful, this information is also suspect because it is assembled to make the best possible case for advertising in that medium. For that reason, outside sources are also used. (5) Consumer Information—The consumer research sources that are used in developing segmentation and targeting strategies are also useful in planning media strategies, and media planners use services, such as Claritas PRIZM system, Nielsen’s ClusterPlus system, and supermarket scanner data, to locate the target audience within media markets. (moderate; pp. 315-316) 107.

Describe the reach objective.

Answer: The reach objective refers to how many different members of the target audience can be exposed to the message in a particular time frame. Different or unduplicated audiences are those that have at least one chance of being exposed to a message. The media planner calculates the reach of a media schedule according to research estimates that forecast the unduplicated audience. (moderate; p. 321; LO2; AACSB Analytic Skills)

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108.

Compare and contrast cost per thousand (CPM) and cost per point (CPP). Answer: The process of measuring the target audience size against the cost of that audience is based on calculations of efficiency—more popularly referred to as cost per thousand (CPM), which is an estimate of the cost to expose 1,000 audience members, and cost per point (CPP), which is a method of comparing media vehicles by relating the cost of the message to the audience rating. It is best to use CPM analysis to compare vehicles within one medium. It is also important to base it only on the portion of the audience that has the target characteristics, called targeted cost per thousand. To calculate the CPM you need only two figures: the costs of the unit (i.e., time on TV or space in a magazine) and the estimated target audience reached by the program. CPM = (cost of message unit/gross impressions) x 1,000. Some planners prefer to compare media on the basis of rating points. Planners favor CPP because of its simplicity. The calculation is parallel to CPM with one exception: the denominator is the rating percentage (note: because CPP is not calculated on a per-thousand basis, we do not multiply by 1,000).

Both the CPM and CPP are relative values, so planners do not know whether a value is good or bad unless they have comparable figures for comparable vehicles. Although these efficiency analyses can be conducted across media, planners make such comparisons carefully because each medium has unique strengths. CPM and CPP are more valid when used to compare vehicles within a medium. (moderate; p. 332; LO2; AACSB Analytic Skills)

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109.

Compare and contrast continuous, pulsing, and flighting strategies. Answer:

All three of these are continuity strategies, and continuity refers to the way the advertising is spread over the length of a campaign. More specifically: (1) Continuous Strategy—Spreads the advertising evenly over the campaign. (2) Pulsing Strategy—Designed to intensify advertising before an open aperture and then to reduce advertising to much lower levels until the aperture opens again. The pulse pattern has peaks and valleys, also called bursts. Pulsed schedules cover most of the year, but still provide periodic intensity. (3) Flighting Strategy—The most severe type of continuity adjustment and is characterized by alternating periods of intense advertising activity and periods of no advertising (hiatus). This on-and-off schedule allows for a longer campaign without making the advertising schedule too light. The hope in using nonadvertising periods is that consumers will remember the brand and its advertising for some time after the ads have stopped. If the flight strategy works, there will be a carryover effect of past advertising that means consumers will remember the product across the gap until the next advertising period begins. The critical decision involves analyzing the decay level, the rate at which memory of the advertising is forgotten. (moderate; pp. 331-332; LO2; AACSB Reflective Thinking) 110.

List the six functions of a media buyer. Answer:

The functions of the media buyer are: (1) Provide information to media planners (2) Select media vehicles (3) Negotiate cost/make media buy (4) Monitor the media plan performance (5) Evaluate the media choices after the campaign (6) Handle all billing and payment (easy; p. 339 (Figure 11.7); LO4; AACSB Reflective Thinking)

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APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

To introduce the new luxury A3 hatchback to the market Audi chose a creative media mix centered on an adver-game "The Art of the Heist." What was Audi trying to accomplish as described in the chapter’s opening vignette? a. They were trying to reach the affluent 50 + male who buys most of the luxury cars. b. They were bored with traditional luxury car introductions through expensive TV campaigns and wanted to do something cool. c. They were trying to reach the affluent, 24- to 30-year-old males who are hard to reach with and skeptical of traditional advertising. and create buzz and excitement. d. They analyzed geographic trading data and allocated more exposure in regions where car sales were lowest. e. They analyzed several target markets and determined that a broad media mix was required. (c; moderate; p. 313) 112.

What was the Big Idea for Audi's A3 hatchback advertising campaign that was described in the chapter’s opening vignette? a. a $500 gift for all referrals that resulted in sales b. at major golf tournaments, they displayed the cars c. a Web-based campaign of TV commercials d. the slogan "I've Got it Made" delivered through creative print ads and billboards e. the Web-based alternative reality game, “The Art of the Heist” (e; moderate; p. 313) 113.

Jamie is a media planner for an advertising agency. The guiding principle he uses to determine a client’s media plan is that advertising is most effective when it reaches the right people at the right time with the right message. What concept is this principle based on? a. marketing concept b. maximization concept c. touch point concept d. aperture concept e. contact point concept (d; moderate; p. 320; LO1; Reflective Thinking)

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114.

One study assessed consumers’ regard for specific brands and related that score to the brand’s advertising expenditures relative to competitors’ expenditures. The study found that all of the top brands in a given product category also represented the largest percentage of total advertising spending in a product category relative to competitors. What concept measures the percentage of total advertising spending by one brand in a product category relative to the competition? a. marketing concept b. aperture concept c. share of voice d. share of market e. CrossTab assessment (c; moderate; p. 316; AACSB Reflective Thinking) 115.

What format is a standard research display format that allows multiple variables of related data to be grouped together? a. CrossTab b. CrossRelate c. Multivariate d. Univariate e. CrossIndex (a; difficult; p. 317 (Figure 11.2); LO2; Analytic Skills) 116.

Janice developed a media plan for a client she gathered _______ as part of her research from Claritas PRIZM system. a. media usage profiles b. client information c. unduplicated messages d. media coverage e. consumer information (e; moderate; p. 316; AACSB Analytic Skills) 117.

What group of consumers did Dentsu target with its advertising campaign that was described in “A Matter of Practice”? a. Fathers (50+) and Daughters (20s) b. Baby Boomlets c. senior citizens (60+) d. men less than 25 years old e. women more than 35 years old (a; moderate; p. 335)

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In the Dentsu campaign that was described in “A Matter of Practice” _______ was used to select the most effective contact points to achieve the communication goals and implement the optimum integrated communication programs that eliminate waste. a. ContactMail Management b. Stay In Instant Touch Message Management c. ContactPoint Management d. WebContact Advertising e. ContactSport Series (c; moderate; p. 335) 118.

119.

Sam discovered that he needed _______ that various media provide that includes the size and makeup of audiences for the vehicles. He supplemented the information from the media with a more objective source, MRI. a. competitive advertising b. media usage profiles c. media coverage areas d. consumer information e. client information (b; difficult; p. 316 LO3) 120.

Christie was gathering the information needed for the media plan for a client. She found the _______ is a good information source for demographic profiles of current customers, previous promotions, and the budget a. client information b. market research c. competitive advertising d. media usage profiles e. media coverage area (a; moderate; pp. 315-316; LO3) A television advertisement for life insurance uses the song “Time” by Alan Parson’s Project and shows a family sharing tender moments together. They also use the same song in their radio ads in the hope that it will reinforce and re-create the message in the listener’s mind. Which concept best describes this situation? a. transformational advertising b. soft-sell advertising c. hard-sell advertising d. image transfer e. mental imagery (d; moderate; p. 328; LO3; AACSB Communication) 121.

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122.

28th Avenue Wine & Spirits decided to start advertising their business, but they do not have a large budget to devote to it. However, their sales are seasonal, with the highest sales occurring between Thanksgiving and New Year’s. Because they would like to have a media presence all year round, which continuity schedule would you recommend they follow to make the most of their budget? a. continuous strategy b. pulsing strategy c. flighting strategy d. heavy-up strategy e. burst strategy (b; moderate; p. 332; LO3; AACSB Analytic Skills) As Heather Beck described in “The Inside Story,” conference calls with counterparts on the client side are about taking specifics about projects, sharing detailed feedback. These calls are essential in _______. a. catching up b. tailoring the media plans c. public relations d. creating sales promotion e. planning event sponsorship (b; moderate; p. 320) 123.

124.

What was the positioning of the two target markets for Dentsu's new subcompact car introduced in the "A Matter of Practice"? a. “freedom in comfort" and "fun chic, fun car" b. “hanging out often” and "always and all ways forever" c. "family safety matters" and "vacation away with me" d. "fun driving for grown men" and "a small, cute model for young women" e. "hot car for hot guys" and "guy-magnet" (d; difficult; p. 334) 125.

What is the distinguishing characteristic of Procter & Gamble’s media strategy that they call communications planning and was described in the “Hands-On” case at the end of the chapter? a. This approach puts the medium before the message. b. This approach puts the message before the medium. c. This approach includes the simultaneous production of the message and the media plan. d. This approach maps out the entire media schedule on a media flowchart. e. This approach maps out the entire media schedule in the CrossTab format, which is consistent with most consumer research. (a; moderate; p. 347)

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APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Consider the following magazine media schedule: Magazine

Readers/Issue

Rating*

Unduplicated**

50,000

35,000

40,000

20,000

C 20,000 20 11,000 * Target population: 100,000 ** those who did not read either of the other two magazines 126.

Mini-Case Question. If there were one insertion each week in all the magazines for a four week period what would the total insertions be for the plan? a. 30 b. 24 c. 9 d. 12 e. 36 (d; moderate; p. 322; LO2) 127.

Mini-Case Question. What are the total gross rating points (GRPs)? a. 1.1 b. 36.7 c. 110 d. 166 e. 11,000,000 (c; moderate; p. 324; LO2) 128.

Mini-Case Question. How many unduplicated readers are there? a. 22,000 b. 66,000 c. 110,000 d. 150,000 e. 176,000 (b; moderate; p. 327; LO2; AACSB Analytic Skills) 129.

Mini-Case Question. What is the reach? a. 22 b. 66 c. 110 d. 150 e. 176 (b; difficult p. 321; LO2; AACSB Analytic Skills)

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130.

Mini-Case Question. What is the average frequency? a. the average of the number of times an exposure is expected to happen b. the average of reach multiplied by two c. reach plus frequency d. number of times a person in the target market is exposed to the message plus four e. the number of the target audience exposed to the message (a; moderate; p. 321; LO2)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

Describe the unique media strategy used for the Audi A3 hatchback that was discussed in the chapter’s opening vignette. Answer:

With a clear understanding of their target market's skeptical attitude toward traditional advertising, Audi designed a Web-base adver-game "The Art of the Heist." For three months the mystery unfolded on the Internet, incorporated media into the game itself. TV, radio, newspaper, consumer magazines, point of purchase, live events, out-of-home, interactive/online and public relations were used to involve the hardcore gamers intent on solving the mystery of the stolen car. Clues were delivered to the target's media: podcasts, classified ads, TV interviews, blogs, emails and wild postings. This unconventional media engaged the audience in the 24-hour-a-day reality. The audience participated in the game. (moderate; pp. 313-314) 132.

Monica is an advertising major and is interning at a major advertising agency. To start out, she will be working with a media planner. What other people will be involved in the planning and executing the media function for their clients? Answer:

Traditionally, the advertising agency has been responsible for developing the media plan, which is usually devised jointly by the agency’s media department, the account and creative teams, and the marketer’s brand management group. Media-buying companies have moved into the planning stage as well. (moderate; p. 315; LO4)

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133.

Kyle is a media planner at an advertising agency and has just been assigned to develop a media plan for a new client of the agency. What critical client information will Kyle find useful in developing the media plan?

Answer: The client is a good source for various types of information media planners use in their work, such as targeted markets, previous promotions and their performance, product sales and distribution patterns, brand plans, and, most importantly, the budget. Sales geography is a critical set of information, because even though companies may distribute goods and services in many cities and states, sales are seldom consistent across all areas. Sales differences affect the decision about which markets the advertiser should reach for the campaign and how many dollars are allocated to each geographic region. (moderate; p. 315; LO4) 134.

Briefly describe why the MRI CrossTab format is useful and what an index of 199 means for the 18 to 34 demographic that drinks Red Bull soft drinks. Answer;

The CrossTab format is a standard research display format that allows multiple variables of related data to be grouped together. An index of 199 means that people who are 18 to 34 are 99 percent more likely to drink Red Bull in the time period studied than the base population studied. (difficult; p. 316-317; LO2; AACSB Analytic Skills) 135.

You’ve heard someone mention the “St. Louis Designated Marketing Area (DMA).” Explain what this means and why it is useful to media planners. Answer:

One type of media-related information about markets is the broadcast coverage area for television, which is called a designated marketing area (DMA) and is referred to by the name of the largest city in the area. This is a national market analysis system, and every county in the United States has been assigned to a DMA. The assignment is based on where most of the residents receive their television signals, which generally reach a 50- to 60-mile radius. Even though this system is based on TV broadcast signals, it is universally used in local market planning. (moderate; p. 316; LO2)

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136.

A classmate of yours wants to know what reach means. Explain the concept. Answer:

An important aspect of an advertising campaign is how many different members of the target audience can be exposed to the message in a particular time frame, which is a measure of the campaign’s reach. Different or unduplicated audiences are those that have at least one chance of being exposed to a message. (moderate; p. 321) 137.

Your aunt was asking about what you are learning in college, and you started to tell her about what you’re learning in your advertising course. Because you are currently studying media planning and buying, that’s mostly what you talk about. However, you’re confusing your aunt, so she asked you to tell her the two most important concepts necessary for media planners to effectively do their job. Explain two concepts that are the basis for most media planning and are familiar to everyone who works in advertising. Answer:

Reach and frequency measures are the basis for most media planning and are terms familiar to everyone who works in advertising. Reach is the percentage of a medium’s audience that is exposed at least once to the advertiser’s message during a specific time frame. The media planner calculates the reach of a media schedule according to research estimates that forecast the unduplicated audience. Although the reach estimate is based on only a single exposure, frequency, the rate of exposure, estimates the number of times the exposure is expected to happen. (moderate; pp. 321-322; LO2; AACSB Reflective Thinking) 138.

Compare and contrast the terms effective frequency and effective reach. Answer:

They basically mean the same thing. The reach of an audience alone is not a sufficient measure of an advertising schedule’s strength. Because of the proliferation of information and clutter, many media planners believe there should be a threshold, or minimum frequency level, before they consider an audience segment to have been exposed to the advertising message. This theory essentially combines the reach and the frequency elements into one factor known as effective frequency. The idea is that you add frequency to reach until you get to the level where people respond. Some planners call this effective reach because it is making the reach level more effective—but it does this by increasing frequency. (moderate; p. 322; LO2; AACSB Reflective Thinking)

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139.

A client has asked its agency “How much is enough and how much is too much?” when it comes to the number of exposures necessary. What should the agency tell them? Answer:

In terms of frequency, a general rule of thumb is that it takes three to ten exposures for a message to sink in. However, that varies with the type of product and marketing situation. Low-frequency strategies are used with well-known brands and simple messages. High-frequency strategies might be used because you want to build excitement about a new product or an upcoming event. More complex messages also may need more repetition. (moderate; pp. 321-322; LO2) 140.

As discussed in “A Matter of Practice,” describe the two critical strategies in ContactPoint Management. Answer: The two critical strategies in ContactPoint Management are as follows.

(1) Identify the Value ContactPoints- the emotion-driving pints at which or during which consumers come in contact with a brand. (2) Move away from the traditional B to C model to a more interactive B to C to C models in which business talks to consumers who talk to other consumers. This approach uses mass media to stimulate inter-consumer communications or word of mouth, which delivers messages more persuasively. (moderate; p. 335) 141.

Jon is a media planner for an advertising agency, and he is considering consumption patterns for his client’s product and brand. Name and describe two indices Jon will find useful when analyzing consumption patterns for products and brands and explain how they help planners. Answer:

A category development index (CDI) is calculated for various categories, which is an index of the relative consumption rate of a product in a particular market. Similarly, a brand development index (BDI) is an index of the consumption rate of a brand in a particular market. The CDI tells you where the category is strong and weak and the BDI tells you where a particular brand is strong and weak. Planners typically don’t make heavy allocations in weak sales areas unless strong marketing signals indicate significant growth potential. Conversely, strong sales markets may not receive proportional increases in advertising unless evidence suggests that company sales can go much higher with greater investment. (moderate; p. 329; LO3)

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142.

One advertising agency’s client wanted to use only television commercials, primarily because they thought it would impress their customers and business colleagues. The advertiser’s agency is having a difficult time convincing them that they should use a media mix, not just television. Explain why it’s better to use a media mix than to rely on just one medium. Answer:

Using a number of media offers several advantages: (1) Distributes the message more widely because different media tend to have different audiences (2) Some people even reject certain media, and others are more believable to some consumers (i.e., print and television) (3) Different media also have different strengths in terms of reach and frequency (4) Synergistic effect between the messages delivered in different media. (moderate; p. 323; LO3; AACSB Reflective Thinking) 143.

Barbara is a media buyer for an advertising agency, and one of her responsibilities is to monitor her media buys on behalf of clients. She has to be alert for missed positions or errors in handling her client’s message presentation and ensure that her client is compensated appropriately when they occur. What is this policy called, and what types of mishaps can result in them? Answer:

A policy of compensating for errors is called “making good on the contract” known as make-goods. Some examples are: (1) Program Preemptions—Special programs or news events often interrupt regular programming and the commercial scheduled is also interrupted. (2) Missed Closings—Sometimes advertising materials do not arrive by the closing date, and if the publication is responsible, it will make good. (3) Technical Problems—Bleed-throughs and out-of-register colors for newspapers, torn billboard posters, broken film, and tapes out of alignment are typical problems. (moderate; p. 341; LO4; AACSB Reflective Thinking)

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144.

Several full-service advertising agencies have made their media buying functions available to advertisers that want one agency to purchase their media. What is this called and why is it becoming more common? Answer:

This shift in the way the media industry is organized is referred to as unbundling media services. Being able to aggregate the buying function across many different clients enables media companies to negotiate better rates for their clients. Because these companies control the money, they have become a powerful force in the advertising industry. (easy; p. 342; LO4; AACSB Reflective Thinking) 145.

Explain the logic behind Procter & Gamble’s communications planning that was described in the “Hands-On” case at the end of the chapter. Answer:

P&G’s new approach, called communications planning, puts the medium before the message. The idea is to strategically select media first, then to develop creative messages that best take advantage of each channel. This approach is, of course, a reversal of the tried-and-true method of developing what you want to say before you decide where to say it. Why did P&G abandon the usual, logical approach? For years large advertisers have been questioning the wisdom of spending massive amounts of money on network TV. Fewer people watch the networks, ads are regularly zipped or zapped, and the networks have a difficult time delivering segmented audiences, and yet network ad rates have increased faster than the rate of inflation. (moderate; p. 347)

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER The Detroit Tigers’ baseball season is about to kick off, and the owners want to advertise that fact in the Detroit metropolitan area. They will be using television, newspaper, and radio as part of their media mix. Consider one portion of their media plan to answer the questions that follow:

Media Vehicle

Audience Size

Number messages

TV: CSI

300,000

Newspaper: Detroit News Radio: WJBR

of Cost

Rating

$9,000/30-sec

630,000

$42,000/page

200,000

$100/30-sec

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146.

Mini-Case Question. If the data given is for one week, for a four week period what would the total insertions be for the plan Answer:

Insertions = CSI 5 X 4 = 20 Detroit News 5 X 4 = 20 20 + 20 + 100 = 140 (moderate; p. 322; LO2; AACSB Analytic Skills) 147.

EJBR 25 X 4 = 100

Mini-Case Question. Calculate the total gross rating points (Total GRPs). Answer:

Total GRPs = (17 x 5) + (25 x 5) + (10 x 25) = 460 (moderate; p. 326; LO2) 148.

Mini-Case Question. Calculate the cost per thousand (CPM) for CSI, the Detroit News, and WJBR, respectively. Answer:

CSI CPM = ($9,000/300,000) x 1,000 = $30.00 Detroit News CPM = ($42,000/630,000) x 1,000 = $66.67 WJBR CPM = ($100/200,000) x 1,000 = $0.50 (moderate; p. 322; LO2) 149.

Mini-Case Question. Calculate the cost per point (CPP) for CSI, the Detroit News, and WJBR, respectively. Answer:

CSI CPP = ($9,000/17) = $529.41 Detroit New CPP = ($42,000/25) = $1,680 WJBR CPP = ($100/10) = $10.00 (moderate; p. 333; LO2)

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150.

Mini-Case Question. Explain the concept of the media mix and identify what is the Tigers' media mix in this case. Answer:

Rarely can a marketer reach the total target audience with just one medium. Most brands use a variety of targeted media vehicles, called a media mix, to reach current and potential customers. The Detroit Tigers used television, newspaper, and radio as their media mix. The media mix includes the vehicles of CSI, Detroit News, and WJBR. (easy; p.323; L03; AACSB Communication)

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CHAPTER TWELVE The Creative Side and Message Strategy

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS Which dimension of effective advertising represents the “art” part? a. strategic dimension b. personal dimension c. creative dimension d. media dimension e. evaluative dimension (c; easy; p. 352) 1.

Which dimension of effective advertising represents the “science” part? a. strategic dimension b. personal dimension c. creative dimension d. media dimension e. evaluative dimension (a; easy; p. 352; LO1) 2.

An ad that means something to the target audience means the idea is ___________. a. relevant b. original c. impactful d. significant e. unexpected (a; moderate; p. 371) 4.

An advertising idea is considered ___________ when it is novel, fresh, unexpected, and unusual; and it is considered ___________ when it’s one of a kind. a. relevant; impactful b. impactful; relevant c. original; creative d. creative; original e. creative; relevant (d; difficult; p. 371; LO3; AACSB Analytic Skills)

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An idea that breaks through the clutter, gets attention, and sticks in memory is said to have ___________. a. relevance b. originality c. staying power d. impact e. science (d; moderate; p. 371; LO3; AACSB Analytic Skills) 6.

The ROI of effective advertising stands for ___________. a. real, original, and intense b. relevant, original, and impact c. relevant, original, and intense d. real, on-target, and insistent e. ready, on, and in (b; moderate; p. 371; LO3; AACSB Analytic Skills) 7.

A(n) ___________ is a creative concept that implements the advertising strategy so that the message is both attention getting and memorable. a. big idea b. creative brief c. artful statement d. big bang e. central idea (a; easy; p. 371; LO3; AACSB Analytic Skills) 8.

Using an idea that someone else has originated is known as ___________. a. duplicate advertising b. revised advertising c. copycat advertising d. recycled advertising e. reused advertising (c; easy; pp. 371-372; LO3; AACSB Reflective Thinking) 9.

A process of jumping from the strategy statement to an original idea that conveys the strategy in an interesting way is known as the ________ and means moving from the safety of a predictable strategy statement to an unusual idea that hasn’t been tried before. a. creative leap b. creative gap c. creative bridge d. creative brief e. creative idea (a; moderate; p. 372; LO3; AACSB Analytic Skills)

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10.

What is often used to test the idea before it runs to try to determine whether it works? a. concept testing b. concept evaluation c. brainstorming d. comparative analysis e. copy-testing (e; moderate; p. 380; LO3; AACSB Analytic Skills) 11.

Which of the following is a common technique advertisers use to force the creative leap? a. make an unusual association b. concept listing c. language manipulation d. use similes e. take physical risks (a; moderate; p. 372; LO3; AACSB Analytic Skills) 12.

Which of the following statements is false regarding creative thinking? a. Creativity is a special form of problem solving and everyone is born with some talent in that area. b. In advertising, creativity is limited to the writers and art directors. c. Free association creates the juxtaposition of two seemingly unrelated thoughts. d. Right-brain thinking is intuitive, nonverbal, and emotion-based thinking. e. Divergent thinking uses exploration to search for all possible alternatives. (b; moderate; pp. 355; 372; 377; LO3; AACSB Reflective Thinking) 13.

Which of the following is a common technique that creative thinkers use to stimulate new ideas? a. free association b. divergent thinking c. analogies and metaphors d. right-brain thinking e. all of the above (e; moderate; pp. 372; 377; LO3; AACSB Analytic Skills) 14.

Which of the following is NOT a common technique that creative thinkers use to stimulate new ideas? a. free association b. divergent thinking c. analogies and metaphors d. right-brain thinking e. copycat thinking (e; moderate; p. 372, 377; LO3; AACSB Analytic Skills)

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15.

Which technique used by creative thinkers creates the juxtaposition of two seemingly unrelated thoughts? a. free association b. divergent thinking c. analogies and metaphors d. right-brain thinking e. left-brain thinking (a; moderate; p. 377; LO3) 16.

Which technique used by creative thinkers differs from the rational, linear thinking that we use to arrive at the “right” conclusion and uses exploration (playfulness) to search for all possible alternatives? a. free association b. divergent thinking c. analogies and metaphors d. right-brain thinking e. left-brain thinking (b; moderate; p. 372; LO3; AACSB Reflective Thinking) 17.

Which technique used by creative thinkers is intuitive, nonverbal, and emotionbased thinking? a. free association b. divergent thinking c. analogies and metaphors d. right-brain thinking e. left-brain thinking (d; moderate; p. 372; LO3; AACSB Analytic Skills) 18.

Which type of thinking is logical, orderly, and verbal? a. right-brain b. left-brain c. top-brain d. back-brain e. lateral-brain (b; moderate; p. 372; LO3) 19.

A person who tends to deal in expressive images, emotion, intuition, and complex interrelated ideas that must be understood as a whole rather than as pieces is ________-brain dominant. a. right b. left c. top d. front e. back (a; moderate; p. 372; LO3)

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20.

Which of the following is a step in the idea-generating process called creative aerobics? a. come up with a list of facts about a product b. create new “names” for the product c. look for similarities between dissimilar objects d. create new definitions for product-related nouns e. all of the above (e; easy; p. 376; LO4; AACSB Analytic Skills) 21.

Which of the following is NOT a step in the idea-generating process called creative aerobics? a. come up with a list of facts about a product b. create new “names” for the product c. look for similarities between dissimilar objects d. create new definitions for product-related nouns e. copy-test ideas with a focus group (e; moderate; p. 376; LO4; AACSB Analytic Skills) 22.

Which of the following statements is false regarding the creative person? a. Creative advertising people may be zany, weird, off-the-wall, unconventional, and most importantly, eccentric. b. In advertising, creativity is both part of the job description and a goal. c. Creative people are found in business, science, engineering, advertising, and many other fields. d. Creative problem solvers are risk takers with a high tolerance for ambiguity. e. Most people can sharpen their skills and develop their creative potential. (a; moderate; p. 355, 375; LO4; AACSB Analytic Skills) 23.

Which of the following is a key characteristic of creative people who do well in advertising? a. problem solving b. ability to visualize c. openness to new experiences d. conceptual thinking e. all of the above (e; easy; p. 375; LO4; AACSB Analytic Skills) 24.

Which of the following is the first step in the creative process? a. ideation b. brainfog c. incubation d. immersion e. illumination (d; moderate; p. 375; LO4; AACSB Analytic Skills)

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25.

In which step of the creative process does the problem solver read, research, and learn everything he or she can about the problem? a. ideation b. brainfog c. incubation d. immersion e. illumination (d; moderate; p. 375; LO4) 26.

In which step of the creative process does the problem solver look at the problem from every angle, develop ideas, and generate as many alternatives as possible? a. ideation b. brainfog c. incubation d. immersion e. illumination (a; moderate; p. 375; LO4) 27.

In which step of the creative process does the problem solver hit a blank wall and want to give up? a. ideation b. brainfag c. incubation d. mental block e. illumination (b; moderate; p. 375; LO4) 28.

In which stage of the creative process does the problem solver try to put his or her conscious mind to rest to let the subconscious take over? a. ideation b. brainfog c. incubation d. immersion e. illumination (c; moderate; p. 375; LO4) 29.

Which stage of the creative process is characterized as an unexpected moment when the idea comes, often when the mind is relaxed and doing something else? a. ideation b. brainfog c. incubation d. immersion e. illumination (e; moderate; p. 375; LO4)

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30.

Which of the following describes the immersion step of the creative process? a. Read, research, and learn everything possible about the problem. b. Look at the problem from every angle, develop ideas, and generate as many alternatives as possible. c. The mind may hit a blank wall and want to give up. d. Try to put the conscious mind to rest to let the subconscious take over. e. Does it work and is it on strategy? (a; moderate; p. 375; LO4; AACSB Analytic Skills) 31.

Which of the following describes the ideation step of the creative process? a. Read, research, and learn everything possible about the problem. b. Look at the problem from every angle, develop ideas, and generate as many alternatives as possible. c. The mind may hit a blank wall and want to give up. d. Try to put the conscious mind to rest to let the subconscious take over. e. Does it work and is it on strategy? (b; moderate; p. 375; LO4; AACSB Analytic Skills) 32.

Which of the following describes the brainfog step of the creative process? a. Read, research, and learn everything possible about the problem. b. Look at the problem from every angle, develop ideas, and generate as many alternatives as possible. c. The mind may hit a blank wall and want to give up. d. Try to put the conscious mind to rest to let the subconscious take over. e. Does it work and is it on strategy? (c; easy; p. 375; LO4; AACSB Analytic Skills) 33.

Which of the following describes the incubation step of the creative process? a. Read, research, and learn everything possible about the problem. b. Look at the problem from every angle, develop ideas, and generate as many alternatives as possible. c. The mind may hit a blank wall and want to give up. d. Try to put the conscious mind to rest to let the subconscious take over. e. Does it work and is it on strategy? (d; moderate; p. 375; LO4; AACSB Analytic Skills) 34. Which of the following describes the illumination step of the creative process? a. Read, research, and learn everything possible about the problem. b. Look at the problem from every angle, develop ideas, and generate as many alternatives as possible. c. The mind may hit a blank wall and want to give up. d. Try to put the conscious mind to rest to let the subconscious take over. e. That unexpected moment when the idea comes, often when the mind is relaxed and doing something else. Consider: does it work and is it on strategy? (e; moderate; p. 375; LO4; AACSB Analytic Skills)

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35.

Which of the following describes the final step of the creative process? a. Read, research, and learn everything possible about the problem. b. Look at the problem from every angle, develop ideas, and generate as many alternatives as possible. c. The mind may hit a blank wall and want to give up. d. Try to put the conscious mind to rest to let the subconscious take over. e. Does it work and is it on strategy? (e; moderate; p. 375; LO4)

36.

A technique in which 6 to 10 people work together to come up with ideas by remaining positive and deferring judgment is known as ________. a. concept listing b. brainstorming c. divergent thinking d. free association e. brainfog (b; moderate; p. 376; LO4; AACSB Communication) 37.

________ is what the advertisement says and ________ is how it is said. a. Execution; creative strategy b. Message strategy; media strategy c. Creative strategy; execution d. Media strategy; message strategy e. Cognition; affect (c; moderate; p. 357; LO1; AACSB Communication) 38.

Which of the following is an appropriate objective to achieve the perception facet of advertising effectiveness? a. change attitudes b. create conviction c. create attention d. stimulate trial e. touch emotions (c; moderate; p. 358; LO1) 39.

To deliver information and understanding are appropriate objectives for which facet of advertising effectiveness? a. perception b. think/learn c. affective d. persuasion e. transformation (b; moderate; p. 358; LO1; AACSB Analytic Skills)

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40.

Which of the following are appropriate objectives to achieve the feel facet of effective advertising? a. create attention, awareness, interest, recognition and recall b. deliver information and understanding c. touch emotions and create feelings d. change attitudes, create conviction and preference e. establish brand identity and associations (c; moderate; p. 358; LO1; AACSB Analytic Skills) 41.

Which of the following are appropriate objectives to achieve the connect facet of effective advertising? a. create attention, awareness, interest, recognition and recall b. deliver information and understanding c. touch emotions and create feelings d. change attitudes, create conviction and preference e. establish brand identity and associations (e; moderate; p. 358; LO1; AACSB Analytic Skills) 42.

In the Facets Model, the cognitive and persuasion objectives generally speak to the ________, and the affective and transformational objectives are more likely to speak to the ________. a. facts; feelings b. feelings; facts c. attributes; benefits d. head; heart e. heart; head (d; difficult; p. 358; LO1; AACSB Analytic Skills) 43.

An informational message that is designed to touch the mind and create a response based on logic is known as a ________. a. factual sell b. heart sell c. hard sell d. soft sell e. cognitive sell (c; moderate; p. 362; LO2; AACSB Analytic Skills) 44.

Which message strategy approach emphasizes tangible product features and benefits? a. factual sell b. heart sell c. hard sell d. soft sell e. cognitive sell (c; moderate; p. 362; LO2; AACSB Communication)

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45.

Which approach uses emotional appeals or images to create a response based on attitudes, moods, dreams, and feelings? a. factual sell b. head sell c. hard sell d. soft sell e. affective sell (d; moderate; p. 362; LO2; AACSB Communication) In which advertising message does a speaker, often referred to as “a talking head,” present evidence and use a technique such as an argument to persuade the audience? a. soft sell b. lecture c. teaser d. appeal e. drama (b; moderate; p. 363; LO2; AACSB Communication) 46.

47.

Which type of advertising message tells a story about the products, and the characters speak to each other, not to the audience? a. soft sell b. lecture c. teaser d. appeal e. drama (e; moderate; p. 364; LO2; AACSB Communication) 48.

In Taylor's Six-segment strategy wheel the transmission view is equivalent to the ________ strategy. a. head b. heart c. feeling d. talking head e. thoughtful (a; moderate; p. 363; LO2; AACSB Analytic Skills) 49.

What is the function of originality? a. keep attention b. increase share of mind c. create pulling power d. capture attention e. create sticking power (d; moderate; p. 367; LO2; AACSB Communication)

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50.

Which of the following can create stopping power? a. originality b. unexpected media c. intrusive and intense d. contrast e. all of the above (e; easy; p. 367; LO2; AACSB Communication) 51.

Getting attention is the ________ power of an advertisement; keeping attention is the ________ power of an ad. a. stopping; sticking b. pulling; stopping c. stopping; pulling d. pulling; sticking e. sticking; pulling (c; moderate; p. 367; LO2; AACSB Communication) 52.

Keeping attention through an interesting thought creates ________. a. stopping power b. pulling power c. sticking power d. attention e. awareness (b; moderate; p. 367; LO2) 53.

In which type of campaign does the message unfold over time? a. drama b. lecture c. split and book-end d. teaser e. anonymous (d; moderate; p. 367; LO2; AACSB Communication) 54.

When an ad amplifies the emotional impact of a message by engaging a personal connection with a brand the ad _______. a. repeats b. speaks c. sings d. is believable e. resonates (e; moderate; p. 367; LO2; AACSB Communication)

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55.

What is typically used at the end of an ad to summarize the point of the ad’s message in a highly memorable way? a. subhead b. tagline c. teaser d. point of differentiation e. signature (b; moderate; pp. 367-368; LO2) 56.

When a tagline is used consistently on all marketing messages, it becomes a ________. a. slogan b. logo c. signature d. claim e. key visual (a; moderate; p. 367; LO2) 57.

A vivid image that the advertiser hopes will linger in the viewer’s mind is communicated through a ________. a. tagline b. slogan c. signature d. key visual e. super (d; moderate; p. 368; LO2; Communication) 58.

Ads that demonstrate how something works or how to solve a problem are messages that ________. a. reach emotions b. get attention c. teach d. preach e. resonate (c; moderate; p. 369; LO2; AACSB Communication) 59.

Messages that ________ are designed to affect attitudes and create beliefs. a. reach emotions b. teach c. preach d. persuade e. resonate (d; moderate; p. 369; LO2; AACSB Communication)

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60.

A(n) ________ connects with some emotion that makes the product particularly attractive or interesting, such as security, esteem, fear, sex, and sensory pleasure. a. claim b. appeal c. feature d. point of differentiation e. argument (b; moderate; p. 364) 61.

A(n) ________ states the logic behind the sales offer. a. claim b. appeal c. feature d. point of differentiation e. selling premise (e; moderate; p. 364; LO2) 62.

Which of the following is NOT a rational customer-focused selling premise? a. benefit b. promise c. reason why d. unique selling proposition (USP) e. resonate (e; moderate; p. 365; LO2) 63.

Which rational customer-focused selling premise is a benefit statement that is both unique to the product and important to the user? a. benefit b. promise c. reason why d. unique selling proposition (USP) e. unique claim (d; moderate; p. 365; LO2; AACSB Analytic Skills) 64.

________ advertising is used to create a representation of the brand in a consumer’s mind. a. Unique selling proposition (USP) b. Image c. Conviction d. Selling premise e. Action (b; moderate; p. 370; LO2; AACSB Communication)

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65.

Which type of message strategy delivers information symbolically by connecting a brand with a certain type of person, lifestyle, or other characteristic? a. unique selling proposition (USP) b. emotion c. reminder d. association e. call to action (d; moderate; p. 370; LO2; AACSB Communication) 66.

Which of the following is NOT considered a common message format? a. straightforward b. spokesperson c. resonance d. comparison e. problem solution/problem avoidance (c; difficult; p. 365-366; LO2; AACSB Communication) 67.

Which message format is an elaborate version of a problem solution staged in the form of a drama in which “typical people” talk about a common problem and resolve it? a. demonstration b. slice-of-life c. teaser d. shockvertising e. spokesperson (b; moderate; p. 366; LO2) 68.

Which type of message format is designed to arouse curiosity, are mystery ads that don't deliver enough information to make sense? a. teasers b. slice-of-life c. spokesperson d. shockvertising e. shockwave (a; moderate; p. 367; LO2) 69.

The creative strategy and key execution details are spelled out in a document called a(n) ________. a. creative brief b. positioning statement c. execution plan d. media plan e. message plan (a; moderate; p. 357; LO2)

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70.

A particular problem that Big Ideas face is that the message is sometimes so creative that the ad is remembered but not the product. This is known as ________. a. marketing imperialism b. carryover effect c. overpowering creativity d. cannibalistic creativity e. vampire creativity (e; moderate; p. 380; LO3; AACSB Communication)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71. Effective advertising is a product of both science and art. (True; easy; p. 371) 72. An effective ad is relevant, original, and has impact, which is referred to as ROI. (True; easy; p. 371; LO3; AACSB Analytic Skills) 73. In getting the great idea, the visual comes first. (False; moderate; p. 372; LO3; AACSB Analytic Skills) 74. Vampire advertising is using an idea that someone else has originated. (False; moderate; p. 371; LO3; AACSB Analytic Skills) 75.

No matter how hard a creative team tries, there is no way to come up with a creative Big Idea for boring, mundane products (e.g. toilet paper). (False; moderate; p. 372; LO3; AACSB Analytic Skills) 76.

To get a creative idea, you must leap beyond the mundane language of the strategy statement and see the problem in a novel and unexpected way. (True; easy; p. 372; LO3; AACSB Analytic Skills) 77.

Divergent thinking creates the juxtaposition of two seemingly unrelated thoughts, and it is done by thinking of a word and then describing everything that comes into your mind when you imagine that word. (False; moderate; p. 372; LO3) 78. Left-brain thinking is intuitive, nonverbal, and emotion-based thinking. (False; moderate; p. 372; LO3; AACSB Analytic Skills) 79. Copywriters and art directors are the only creative roles in advertising agencies. (False; moderate; p, 354; LO3; AACSB Analytic Skills)

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80. Creative problems solvers are risk takers with a high tolerance for ambiguity. (True; moderate; p. 375; LO3; AACSB Analytic Skills) 81.

One basic principle in creative thinking for advertising is to emphasize executions and worry about concepts later. (False; moderate; p, 375; LO3) 82.

For advertising professionals, creative thinking is more important than strategic thinking. (False; moderate; p. 375; LO3; AACSB Reflective Thinking) 83.

The first step in the creative process is to read, research, and learn everything you can about the problem. (True; moderate; p. 375; LO3) 84.

Illumination is a technique where a group of 6 to 10 people work together to come up with ideas, and the secret to success is to remain positive and defer judgment. (False; moderate; p. 376; LO3; AACSB Communication) 85. Creative strategy is what the advertisement says and execution is how it is said. (True; easy; p. 357; LO1; AACSB Communication) 86.

An objective to achieve the transformation facet of effectiveness is to touch emotions and create feelings. (False; difficult; p. 358; LO1; AACSB Analytic Skills) 87.

A hard sell is an informational message that is designed to touch the mind and create a response based on logic. (True; easy; p. 362; LO2; AACSB Communication) 88. Lecture as a basic strategy relies on the viewer to make inferences. (False; moderate; p. 364; LO2; AACSB Communication) 89. To get attention, an ad has to have pulling power. (False; moderate; p. 367; LO2; AACSB Communication) 90. The function of originality is to capture attention. (True; moderate; p. 367; LO2; AACSB Communication) 91. Keeping attention is the pulling power of an ad. (True; moderate; p. 367; LO2; AACSB Communication) 92.

The key visual in a print, interactive, or television ad is a vivid image that the advertiser hopes will linger in the viewer’s mind. (True; moderate; p. 368; LO2; AACSB Communication)

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93. A product’s point of differentiation relative to the competition reflects its position. (True; moderate; p. 358; LO1) 94.

Style, quality, prestige, package, and color are all considered to be intangible characteristics of the product. (False; moderate; p. 368 [Figure 12.4]; LO2) 95.

An appeal connects with some emotion that makes the product particularly attractive or interesting. (True; moderate; p. 364; LO2; AACSB Communication) 96. An appeal states the logic behind the sales offer. (False; difficult; p. 364; LO2) 97.

The unique selling proposition (USP) is a benefit statement that looks to the future and predicts that something good will happen if you use the product. (False; moderate; p. 365; LO2; AACSB Communication) 98. The end result of persuasion is purchase. (False; difficult; pp. 369-370; LO2; AACSB Communication) 99.

An association message strategy delivers information symbolically by connecting a brand with a certain type of person, lifestyle, or other characteristic. (True; easy; p. 370; LO2; AACSB Communication) 100.

Advertising that tries to grab attention and generate buzz by using outlandish creative ideas or provocative visuals is referred to as vampire creativity. (False; moderate; p. 380; LO3; AACSB Communication) 101.

The message plan is the document prepared by the account planner to summarize the basic marketing and advertising strategy and gives direction to the creative team as they search for the creative concept. (False; moderate; p. 357; LO1; AACSB Analytic Skills) 102. A strategy is the form in which the ad’s message is presented. (False; difficult; p. 357; LO1; AACSB Communication) 103.

In the case where the core targeting and positioning strategies remain the same in different markets, execution needs to be the same. (False; moderate; p. 378) 104.

Vampire creativity is when the message is so creative that the ad is remembered but not the product. (True; moderate; p. 380; LO3; AACSB Communication)

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105.

A formal method of evaluating the effectiveness of an ad, either in draft form or after it has been used, is called copy-testing. (True; easy; p. 380; LO3; AACSB Analytic Skills) GENERAL CONTENT: ESSAY QUESTIONS 106.

Name and describe the most common techniques that creative thinkers use to stimulate new ideas. Answer: The most common techniques that creative thinkers use to stimulate new ideas are: (1) Free Association—Creates the juxtaposition of two seemingly unrelated thoughts. In this technique you think of a word and then describe everything that comes into your mind when you imagine that word. (2) Divergent Thinking—Differs from the rational, linear thinking that we use to arrive at the “right” conclusion. It is at the heart of creative thinking, using exploration (playfulness) to search for all possible alternatives. (3) Analogies and Metaphors—Used to see new patterns or relationships. (4) Right-brain Thinking—Intuitive, nonverbal, and emotion-based thinking. A right brain–dominant person tends to deal in expressive images, emotions, intuition, and complex, interrelated ideas that must be understood as a whole rather than as pieces.

Another approach is called creative aerobics, a thought-starter process that works well in advertising because it uses both the head and the heart, which we refer to in strategy development as rational and emotional appeals. It is a four-step, ideageneration process: (1) Facts—The first exercise is left-brain and asks you to come up with a list of facts about the product. (2) New Names—Create new names for the product. (3) Similarities—Look for similarities between dissimilar objects. (4) New Definitions—Create new definitions for product-related nouns. (difficult; pp. 376-377; LO4; AACSB Reflective Thinking)

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107.

Describe the creative person. Answer: Creative advertising people may be zany, weird, off-the-wall, and unconventional, but they can’t be eccentric. They still must be very centered on creating effective advertising. Research indicates that creative people tend to be independent, assertive, self-sufficient, persistent, and self-disciplined, with a high tolerance for ambiguity. They are also risk takers with powerful egos that are internally driven. They don’t care much about group standards and opinions and typically have inborn skepticism and strong curiosity. Here are a few of the key characteristics of creative people who do well in advertising: (1)

Problem Solving—Creative problem solvers are alert, watchful, and observant, and reach conclusions through intuition rather than through logic. They also tend to have a mental playfulness that allows them to make novel associations. (2) Ability to Visualize—Most of the information we accumulate comes through sight, so the ability to manipulate visual images is crucial for good copywriters, as well as good designers. (3) Openness to New Experiences—Presents many adventures from which to draw. (4) Conceptual Thinking—People open to experience might develop innovative advertisements and commercials because they are more imaginative. (moderate; p. 375; LO4; AACSB Reflective Thinking) 108.

Name and describe the six steps in the creative process. Answer: (1)

Immersion—Read, research, and learn everything you can about the problem. (2) Ideation—Look at the problem from every angle; develop ideas; generate as many alternatives as possible. (3) Brainfog—The mind may hit a blank wall and want to give up. (4) Incubation—Try to put the conscious mind to rest to let the subconscious take over. (5) Illumination—That unexpected moment when the idea comes, often when the mind is relaxed and doing something else. (6) Evaluation—Does it work? Is it on strategy? (moderate; p. 375; LO4; AACSB Reflective Thinking)

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109.

Name and describe the rational customer-focused selling premises. Answer: (1)

Benefit—Emphasizes what the product can do for the user by translating the product feature or attribute into something that benefits the consumer. (2) Promise—A benefit statement that looks to the future and predicts that something good will happen if you use the product. (3) Reason Why—A type of benefit statement that gives you the reason why you should buy something, although the reason sometimes is implied or assumed. The word because is the key to a reason-why statement. (4) Unique Selling Proposition (USP)—A benefit statement that is both unique to the product and important to the user. The USP is a promise that consumers will get this unique benefit by using this product only. (moderate; p. 365; LO2; AACSB Communication) 110.

Name and describe any five of the common message approaches. Answer: Students can discuss any five of the following: (1) Straightforward—A straightforward factual or informational message conveys information without any gimmicks, emotions, or special effects. (2) Demonstration—Focuses on how to use the product or what it can do for you. (3) Comparison—Contrasts two or more products finding the advertiser’s brand superior. The comparison can be direct, with competitors mentioned, or indirect, with just a reference to “other leading brands.” (4) Problem Solution/Problem Avoidance—In problem solution (a.k.a. product-as-hero) the message begins with a problem and the product is the solution. A variation is the problem-avoidance message format, in which the product helps avoid a problem. (5) Humor—It gets attention; advertisers hope that people will transfer the warm feelings they have as they are being entertained to the product. To be effective, the selling premise must reinforce the point of the humor. (6) Slice of Life—An elaborate version of a problem solution staged in the form of a drama in which “typical people” talk about a common problem and resolve it. (7) Spokesperson (or Endorser Format)—Ad uses celebrities we admire, created characters, experts we respect, or someone “just like us” whose advice we might seek out to speak on behalf of the product to build credibility. (8) Teasers—Mystery ads that don’t identify the product or don’t deliver enough information to make sense, but they are designed to arouse curiosity. The ads run for a while without the product identification and

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then when curiosity is sufficiently aroused, a concluding ad runs with the product identification. (moderate; pp. 365-367; LO2; AACSB Communication) APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

As described in the chapter’s opening vignette, what was the challenge facing the Grey Worldwide the agency for Frontier Airlines? a. create an ad campaign that was serious and on strategy b. advertise Frontier's service to Mexico in a fun and exciting way c. tell the target market about the route to New York d. convincing consumers that Frontier was a safe airline e. explaining to consumers what Frontier exactly was (b; moderate; p. 351) 112.

What spokespersons were used in the campaign for Frontier in the chapter's opening vignette? a. spokesanimals from the Frontier airplane tails b. Dallas Cowboys c. a group of very funny NBA players d. animated robots e. very believable regular people (a; easy; p. 351) 113.

An advertising agency has a meeting with its client to present the Big Idea for their advertising campaign. What exactly does “Big Idea” mean? a. It’s the art part of advertising. b. It’s the science part of advertising. c. It’s the creative concept that implements the advertising strategy so that the message is both attention getting and memorable. d. It’s the verbal part of advertising that presents the selling premise. e. It’s the visual part of advertising that catches and holds attention. (c; moderate; p. 381; LO3; AACSB Communication) 114.

When Budweiser beer started using the Budweiser frogs in their commercials, people raved at how creative the advertising was. However, someone who has worked in the advertising industry for many years pointed out that he used that creative idea several years before. What type of advertising is it that uses an idea that someone else has originated? a. duplicate advertising b. revised advertising c. copycat advertising d. recycled advertising e. reused advertising (c; easy; p. 377; LO4; AACSB Communication)

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115.

Which of the following is a tip for creating original ideas? a. use an unexpected twist b. use an unexpected association c. catchy phrasing d. play on words e. all of the above (e; easy; p. 377; LO4; AACSB Reflective Thinking) According to the “Practical Tips” given in the chapter, which of the following should be avoided to prevent unoriginal ideas? a. clichés b. live big c. have a clear strategy d. play e. have fun (a; moderate; p. 355; LO4; AACSB Reflective Thinking) 116.

Carly saw a billboard for a local church that said, “CH_ _ CH—What’s missing?” Based on the techniques for creating original ideas given in the chapter, which technique of creating original and unexpected ideas is this an example of? a. clichés b. an unexpected association c. metaphors d. play on words e. analogies (d; moderate; p. 377; LO4; AACSB Communication) 117.

118.

John had been working on the creative concept for one of his clients when he finally jumped from the strategy statement to an original idea that conveys the strategy in an interesting way. What did John just do? a. took the creative leap b. took the creative plunge c. switched from right- to left-brain thinking d. completed a creative aerobics session e. switched from facts to fantasy (a; difficult; p. 372; LO3; AACSB Reflective Thinking)

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119.

Patrick and his colleagues have been working on the creative concept for a client when they all seemed to have hit a blank wall. To help overcome this, they decided to go play a game of basketball. In the second half of the game, Patrick came up with a great idea, and they all went back to work. What step of the creative process were Patrick and his colleagues implementing when they went to play basketball? a. immersion b. ideation c. incubation d. evaluation e. creative leap (c; moderate; p. 375; LO4; AACSB Reflective Thinking As described in “The Inside Story,” where did the idea for the SORPA ad come from? a. studying the African American market b. a special exhibit in an art museum c. the murderer disposing of body parts in the film Fargo d. from a surprising incident in a supermarket e. a trip through Elephant Rock State Park (c; moderate; p. 374) 120.

121.

A recent television commercial for Tylenol brand pain reliever shows just the head of a woman talking about her arthritis pain and how she used to think that prescription medication was the answer. She then goes on to say that with all the problems that are being discovered about prescription pain medications, she has reconsidered over-the-counter Tylenol, which provides just as good of pain relief without all the risks. What type of advertising message is this? a. drama b. lecture c. slice-of-life d. teaser e. shockvertising (b; easy; p. 364; LO2; Communication)

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122.

Laurie saw a television commercial that depicted a mother stressed out from working and taking care of children. The scenes shown included hassles at work, kids crying, dogs barking, and the phone ringing. Then the commercial showed the mother relaxing in a bubble bath with the voice-over saying, “Calgon, take me away!” When Laurie saw that ad, she exclaimed, “Yes, that’s exactly how I feel!” What message approach was this ad using? a. straightforward b. demonstration c. comparison d. slice-of-life e. humor (d; moderate; p. 366; LO2; Communication) 123.

As described in the Road Crew creative brief given in the chapter, what was the main promise to communicate? a. Repairing a car on the side of the highway is an emergency. b. Take a road trip and have a great time. c. It's more fun when you don't have to worry about driving. d. Follow the road to success. e. College students who take to the road have fun. (c; difficult; p. 357) 124.

What was the objective of the Road Crew social marketing campaign? a. To get young men in Wisconsin small towns who drink and drive to use a ride service. b. To encourage drivers to slow down when driving in work zones. c. To get parents to make sure their children wear seatbelts. d. To change the attitudes of drivers toward road construction. e. To reduce road rage. (a; moderate; p. 356) 125.

What purpose do brand icons like the Burger King's Burger King and Geico's Gecko fulfill? a. When humor is used, it is relevant, with a clear product purpose. b. Brand rewards/benefits are highly visible through demonstration, dramatization, lifestyle, feelings, or analogy. c. The brand is the major player in the experience. d. Lend personality, emotion and stories to their brands. e. represent out-of-date concepts (d; difficult; p. 359; LO1; Communication)

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To what advertising campaign, described in the “Hands-On” case at the end of the chapter, does McCann-Erickson attribute its return to the top of the advertising industry? a. MSN’s “butterfly” campaign b. MasterCard’s “priceless” campaign c. Coca-Cola’s “Always” campaign d. Visa’s “Everywhere you want to be” campaign e. McDonald’s “lovin’-it” campaign (b; moderate; p. 384) 126.

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE For years, Energizer batteries used the Energizer Bunny in its television commercials. The bunny was cute, always beating a drum with the tagline, “The Energizer Bunny keeps going and going and going.” Several of the ads were humorous and people could remember the battery ad with the bunny, but for a long time, people could not name the brand of battery. As a result, Energizer started putting the bunny on the packaging and using it in point-of-purchase displays in stores, even going so far as to let consumers enter a drawing to take the bunny that was on top of the battery display home. The creative team that worked on this campaign spent considerable time researching consumers’ usage of batteries as well as the problems they had with them. The team learned that people didn’t like batteries that don’t last long, and because Energizer batteries lasted much longer than competitors’ brands, they decided to feature that in the execution of the ads. 127.

Mini-Case Question. In which step of the creative process did the creative team read, research, and learn everything they could about Energizer batteries and their competitors? a. immersion b. ideation c. incubation d. illumination e. evaluation (a; moderate; p. 375; LO4; AACSB Reflective Thinking)

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128.Mini-Case Question. One commercial was particularly effective because viewers watched the entire commercial to see the bunny do something funny at the end of the commercial. The ability of this commercial to keep the viewer through the end of the message is known as ________. a. stopping power b. pulling power c. sticking power d. teaser e. point of differentiation (b; moderate; p. 367; LO2; AACSB Communication) 129.

Mini-Case Question. While being humorous, the ads did stress that Energizer batteries last three times longer than competing brands. What is this known as? a. intangible characteristics b. vampire creativity c. association message strategy d. point of differentiation e. attitude (d; moderate; p. 358) 130.

Mini-Case Question. The initial problem that the commercials had where people could remember the ads but not the brand is known as ________. a. vampire creativity b. marketing imperialism c. structural fault d. copycat advertising e. unexpected association (a; moderate; p. 380; LO3; AACSB Communication)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

As described in the chapter’s opening vignette, what was the challenge facing the Grey Worldwide the agency for Frontier Airlines? Answer:

Grey Worldwide faced the challenge of advertising Frontier's service to Mexico in a fun and attention-getting way. (moderate; p. 351)

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132.

Briefly describe the advertising campaign Grey Worldwide created for Frontier Airlines in the chapter's opening vignette. Answer:

The Frontier campaign brought the animals that were on the tails of the Frontier aircraft to life through the spokesanimals carrying on debates on the tarmac griping about going to cold Chicago rather than warm, sunny Mexico. (moderate; p. 351) 133.

A print ad for the American Cancer Society pictured an attractive young woman in a bikini bathing suit from the torso up with her face turned toward the sun and her arms folded behind her head. The headline read, “Fry now, pay later.” The copy went on to give factual information on skin cancer and how to avoid it, as well as information on how sun exposure can cause wrinkles later. In terms of DDB Needham agency’s “ROI” evaluate this ad. Answer:

According to DDB Needham agency, an effective ad is relevant, original, and has impact—which is referred to as ROI. This ad is relevant to the target audience, in this case young women, especially those who like to tan themselves. An advertising idea is considered creative when it is novel, fresh, unexpected, and unusual. Original means one of a kind. Although this might not be one of a kind, the headline does play on words and delivers the message effectively. That is, do this to your skin now, and you will pay later. To be effective, the ideas must have impact, which means it breaks through the clutter, gets attention, and sticks in memory. The ad catches attention because of the beautiful woman and the message sticks in memory through the catchy headline. (moderate; p. 371; LO3; AACSB Communication)

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134.

One of your assignments in an advertising class is to give a brief presentation on tips for coming up with original ideas. There were ten tips given in the “Practical Tips” box in the chapter, and you decide to use those for your presentation. List what you would include in your presentation. Answer:

Tips for creating original ideas: (1) Live big (2) The right answer is the wrong answer (3) What do you want to say (4) Do not use a computer to create (5) Use the power of play (6) Play what-if (7) Don't play scared (8) Use associations (9) Set-up & punch line (10) Have fun (moderate; pp. 355-356; LO1; AACSB Reflective Thinking) 135.

Marcy is a creative consultant who will go to a business or organization and conduct “creative aerobic” sessions. Explain what she does and discuss the fourstep, idea-generating process that she assists businesses in implementing. Answer:

Creative aerobics is a thought-starter process that uses both the head and the heart. The four-step approach is: (1) Facts—The first exercise is left-brain and asks you to come up with a list of facts about the product. (2) New Names—Create new “names” for the product. (3) Similarities—Look for similarities between dissimilar objects. (4) New Definitions—Create new definitions for product-related nouns. (moderate; p. 376; LO3; AACSB Reflective Thinking)

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136.

You have been asked by your supervisor to participate in a brainstorming session to come up with ideas for your company’s advertising campaign. Explain what brainstorming is, why it is used, and how to make it successful. Answer:

Brainstorming is where a group of 6 to 10 people work together to come up with ideas. One person’s idea stimulates someone else’s, and the combined power of the group associations stimulates far more ideas than any one person could think of alone. The secret to brainstorming is to remain positive and defer judgment. Negative thinking during a brainstorming session can destroy the playful atmosphere necessary to achieve a novel idea. (moderate; p. 376; LO4; AACSB Reflective Thinking) 137.

Compare and contrast the terms creative strategy and creative execution. Answer:

Creative strategy (a.k.a., message strategy) is what the advertisement says and execution is how it is said. Advertising creativity is about coming up with an idea that solves a communication problem in an original way, which incorporates both creative strategy and creative execution. (easy; p. 357; LO1; AACSB Communication) 138.

Two basic approaches are sometimes referred to as head and heart strategies. Explain what this means and apply the Facets Model to each. Answer:

The three types of effects (discussed in chapter 4) are how think (cognitive) and feel (affective) drive the do, or action, decision. The think and feel dimensions are sometimes referred to as rational and emotional, or what this chapter is calling the head and heart factors. In the Facets Model, the cognitive and persuasion objectives generally speak to the head, and the affective and transformational objectives are more likely to speak to the heart. The decision to use a head or heart strategy is also affected by the product situation, particularly by the involvement factor. (moderate; p. 358; LO1; AACSB Communication)

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139. To get attention, an ad has to have stopping power. Describe how ads can accomplish this. Answer: Ads that stop the scanning and break through the clutter are usually high in originality. The function of originality is to capture attention. People will notice something that is new, novel, or surprising. Creative advertising breaks through the old patterns of seeing and saying things; the unexpectedness of the new idea creates stopping power. Unexpected media is also good at breaking through the clutter, which is why guerilla marketing and the use of alternative media have become so popular. Many clutter-busting ads are intrusive and use loud, bold effects to attract viewer attention. Contrast can attract attention too. (moderate; p. 367; LO2; AACSB Reflective Thinking) 140. At one time, Michael Jordan was the highest paid celebrity endorser for several products. Why do advertisers use celebrity endorsers, such as Michael Jordan? Answer: Celebrity endorsements are used to intensify conviction in the target audience, as well as get attention, cue the brand personality, and stick in memory. The idea is that celebrities draw attention, but they also carry a strong message of conviction when they speak with passion about something they believe in. Celebrities, product placements (i.e., brands used by stars in a movie or television program), and other credibility techniques are used to give the consumer permission to believe a claim or selling premise. (moderate; p. 364; LO2; AACSB Communication) 141.Explain the key visual and how it was used effectively by Absolut Vodka. Answer: The key visual is a vivid image that the advertiser hopes will linger in the viewer's mind. Shape is a memory cur. The Absolut Vodka campaign used a thousand different visual images to reinforce the shape of the product's bottle to the point that the bottle shape is recognizable even without a label. (difficult; p. 368; LO2; Reflective Thinking)

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142.

Explain what the Big Idea is. Describe the Big Idea of the Road Crew campaign. Answer:

The Big Idea becomes a point of focus for communicating the message strategy--a theme or central concept or creative concept. The name of the Road Crew project was the defining element of that campaign's Big Idea. The slogan --- "Beats Driving" ---- conveyed the benefit of the program in the language of the target audience. The logo was in the style of the Harley Davidson logo. The idea reflected the lifestyle of the target audience in language and tone and could motivate behavior and change attitudes toward driving after drinking. (moderate; p. 371; LO3; AACSB Ethical Reasoning) 143.

Explain the process of brainstorming and the part it played in developing the Road Crew concept. Answer:

Brainstorming is a thinking technique where a group of 6-10 people work together to come up with ideas. One person's idea stimulates someone else's and the combined power of the group associations stimulates far more ideas than any one person could think of alone. The group becomes an idea factory. The Road Crew concept developed during many brainstorming sessions with the project leaders and the people in the communities where the team was working with local leaders to build coalitions to sponsor the effort. A list of names was compiled and guys in bars who fit the target audience profile voted on the winner, which turned out to be Road Crew. The slogan Beats Driving was developed using the same process. (difficult; p. 376; LO4; AACSB Ethical Reasoning)

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144.

List any 5 of the 10 tips given in the “Practical Tips” box in the chapter. Answer:

Students can list any five of the following: (1) Live big (2) The right answer is the wrong answer (3) What do you want to say (4) Do not use a computer to create (5) Use the power of play (6) Play what-if (7) Don't play scared (8) Use associations (9) Set-up & punch line (10) Have fun (moderate; pp. 355-356; LO1; AACSB Reflective Thinking) 145.

What were the results of Frontier Airline's advertising campaign that was described in the chapter’s opening and closing vignettes? Answer:

The results of the campaign were: (1) Bookings rose 56% (2) Unaided awareness rose from 40% to 78% (3) Chosen Denver's favorite airline (4) Campaign recognized with more than 80 awards (difficult; p. 381) 146.

Describe the MasterCard campaign that was discussed in the “Hands-On” case at the end of the chapter. Answer:

MasterCard wanted something fresh that could help it regain lost ground against top-competitor Visa. They considered it a travesty that you could use your MasterCard where you could use your Visa, but Visa was it and MasterCard was just another card. So the creative team thought they should avoid a benefits focus and shoot for ads that would strike an emotional chord, and they came up with the famous “Priceless” campaign. The tagline used was, “There are some things in life money can’t buy. For everything else, there’s MasterCard.” (moderate; p. 384)

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APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER For several years, the Cotton Growers of America, a trade group representing U.S. cotton farmers, used an advertising campaign that depicted people in everyday scenarios and said that cotton was the “fabric of our lives.” Although cotton has several advantages over other types of fabric, none of this information was conveyed in this advertising campaign. 147.

Mini-Case Question. Did this campaign use a hard-sell or soft-sell strategy? Explain your answer by comparing and contrasting the two strategies. Answer:

This is an example of a soft-sell strategy because it uses emotional appeals or images to create a response based on attitudes, moods, dreams, and feelings. The assumption with soft-sell strategies is that the target audience has little interest in an information search and will respond more favorably to a message that touches their emotions or presents an attractive brand (in this case, product) image. A hard-sell strategy is an informational message that is designed to touch the mind and creates a response based on logic. The assumption is that the target audience wants information and will make a rational product decision. (moderate; p. 362; LO2; AACSB Communication) 148.

Mini-Case Question. Although there were several executions of television commercials, they each included the words, “Cotton. The fabric of our lives.” What are these words known as? Answer:

This is a tagline, which is used at the end of an ad to summarize the point of the ad’s message in a highly memorable way. When a tagline is used consistently on all marketing messages, which is how it appears in this campaign, it becomes a slogan. (easy; p. 367; LO2; AACSB Communication) 149.

Mini-Case Question. Name and describe the message format approach you think best describes the television commercial execution for this campaign.

Answer: The message format approach that best describes these commercials is slice of life. Even though the chapter says that this approach is an elaborate version of a problem solution staged in the form of a drama in which “typical people” talk about a common problem and resolve it, the approach is really the only one that depicts people in an everyday vignette that viewers can identify with. (moderate; p. 366; LO2; AACSB Communication)

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150.

Mini-Case Question. The creative strategy and key execution details for this campaign were spelled out in a document called a creative brief. Explain what this is and list the elements that are commonly included in one. Answer:

The creative brief is a document prepared by the account planner to summarize the basic marketing and advertising strategy. Although the format varies among agencies (see Table 12.2), most combine the following basic advertising strategy decisions: (1) Problem to be solved (2) Objectives (3) Target market (4) Positioning strategy (5) Type of creative strategy (6) Selling premise (7) Suggestions about the ad’s execution, such as tone of voice (difficult; p. 357; LO1; AACSB Analytic Skills)

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CHAPTER THIRTEEN Copywriting

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

Which of the following is a type of advertisement in which words are crucial? a. if the message is complicated b. if the ad is for a high-involvement product c. information that needs definition and explanation d. if a message tries to convey abstract qualities e. all of the above (e; moderate; p. 389; AACSB Communication) 2.

The person who shapes and sculpts the words in an advertisement is called a(n) ________. a. wordsmith b. art director c. copywriter d. creative director e. talent (c; moderate; p. 389) 3.

________ is the text of an ad or the words that people say in a commercial. a. Copy b. Body c. Verbiage d. Execution e. Headline (a; easy; p. 389; AACSB Communication) 4.

Which of the following is false regarding advertising writing style? a. Words such as interesting, very, in order to, buy now and save, introducing, and nothing less than are effective in advertising copy. b. Effective copy is succinct and single-minded. c. Every word counts because space and time are expensive. d. The tighter the copy, the easier it is to understand and the greater its impact. e. Copywriters try to write the way the target audience thinks and talks. (a; moderate; p. 390; LO1; AACSB Communication)

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A type of formula writing that is full of clichés, superlatives, stock phrases, and vague generalities is known as ________. a. hyperbole b. display copy c. key copy d. adese e. your-name-here-copy (d; moderate; p. 392; LO1; AACSB Communication) Which of the following is a type of adese that is described as “we” copy written from the company’s point of view with a pompous tone? a. hyperbole b. display copy c. key copy d. brag-and-boast copy e. your-name-here-copy (d; moderate; p. 392; LO1) 6.

A print advertisement is created in which of the two following pieces? a. layout and storyboard b. copy sheet and layout c. script and storyboard d. copy sheet and script e. copy sheet and storyboard (b; moderate; p. 392; LO2; AACSB Communication) 8.

Which of the following are the two categories of copy that print advertising uses? a. display and body b. headline and text c. tagline and slogan d. overlines and underlines e. headlines and subheads (a; moderate; p. 392; LO2; AACSB Communication) 9.

________ includes all elements that readers see in their initial scanning, including headlines, subheads, call-outs, taglines, and slogans, and are set in larger type size than other elements of a print ad. a. Body copy b. Display copy c. Adese d. Brag-and-boast copy e. Visuals (b; moderate; p. 392; LO2; AACSB Communication)

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10.

________ includes the elements in a print ad that are designed to be read and absorbed, such as the text of the ad message and captions. a. Body copy b. Display copy c. Adese d. Brag-and-boast copy e. Visuals (a; moderate; p. 392; LO2) 11.

Which element in print advertising conveys the main message so that people get the point of the ad? a. headline b. overline c. body copy d. subheads e. tagline (a; easy; p. 392; LO2; AACSB Communication) 12.

The text of the ad is known as the ________. a. headline b. overline c. body copy d. subhead e. tagline (c; moderate; p. 393 [Table 13.1]; LO2; AACSB Communication) 13.

Which of the following is NOT considered one of the copywriter’s tools? a. headline b. overlines and underlines c. body copy d. callouts e. promotion (a; easy; p. 393 [Table 13.1]; LO2; AACSB Communication) 14.

Phrases or sentences that either lead into the headline or follow up on the thought in the headline are known as ________. a. overlines and underlines b. heads and subheads c. display and body copy d. call-outs and call to actions e. taglines and slogans (a; moderate p. 393 [Table 13.1]; LO2; AACSB Communication)

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15.

Which of the following is a copy element in a print ad that is a sentence that floats around the visual, usually with a line or arrow pointing to some specific element in the visual that they name and explain? a. caption b. overline c. underline d. call-out e. tagline (d; moderate; p. 393 [Table 13.1]; LO2; AACSB Communication 16.

A sentence or short piece of copy that explains what the reader of a print ad is looking at in a photo or illustration is known as a(n) ________. a. caption b. overline c. underline d. call-out e. tagline (a; moderate; p. 393 [Table 13.1]; LO2; AACSB Communication]) 17.

A short phrase that wraps up the key idea or creative concept that usually appears at the end of the body copy is known as a(n) ________ a. caption b. overline c. underline d. call-out e. tagline (e; moderate; p. 393 [Table 13.1]; LO2; AACSB Communication]) 18.

A distinctive catch phrase that serves as a motto for a campaign, brand, or company is known as a(n) ________. a. caption b. overline c. underline d. call-out e. slogan (e; moderate; p. 393 [Table 13.1]; LO2; AACSB Communication) 19.

A line at the end of an ad that encourages people to respond and gives information on how to respond is called a(n) ________. a. tagline b. caption c. call to action d. overline e. call-out (c; moderate; p. 393 [Table 13.1]; LO2; AACSB Communication)

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20.

According to researchers, what percentage of readers who read the headline goes on to read the body copy? a. 10 percent b. 20 percent c. 30 percent d. 40 percent e. 50 percent (b; difficult; p. 392) 21.

Copy-tests of headlines by using two versions of the same ad to make sure they can be understood at a glance and that they communicate exactly the right idea is known as ________. a. end-run testing b. headline test c. split-run tests d. dual tests e. direct tests (c; moderate; p. 394; LO2: AACSB Communication) 22.

Headlines can be grouped into which two general categories? a. call-outs and call to actions b. overlines and underlines c. taglines and slogans d. direct- and indirect-action headlines e. display and body headlines (d; moderate; p. 394; LO2: AACSB Communication) 23.

Which category of headlines is straightforward and informative? a. call-outs b. call to actions c. overlines d. indirect-action e. direct-action (e; moderate; p. 394; LO2: AACSB Communication) 24.

Which of the following is a type of direct-action headline? a. news announcements b. puzzles c. associations d. questions e. all of the above (a; moderate; p. 394; LO2: AACSB Communication)

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25.

Which of the following is NOT a type of direct-action headline? a. news announcements b. associations c. command d. how-to heads e. assertion (b; moderate; p. 362) 26.

Which of the following is a type of indirect-action headline? a. assertion b. command c. how-to heads d. associations e. news announcements (d; moderate; p. 394; LO2) 27.

Which type of direct-action headline states a claim or a promise that will motivate someone to try the product? a. assertion b. command c. how-to heads d. associations e. news announcements (a; moderate; p. 394; LO2: AACSB Communication) 28.

Which type of direct-action headline politely tells the reader to do something? a. assertion b. command c. how-to heads d. associations e. news announcements (b; moderate; p. 394; LO2: AACSB Communication) 29.

Which type of indirect-action headline is strictly used for curiosity and provocative power? a. assertion b. puzzles c. how-to heads d. associations e. news announcements (b; moderate; p. 394; LO2: AACSB Analytic Skills)

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30.

Which type of indirect-action headline uses image and lifestyle to get attention and build interest? a. assertion b. puzzles c. how-to heads d. associations e. news announcements (d; moderate; p. 394; LO2: AACSB Communication) 31.

Indirect-action headlines that give little information but attempt to compel readers to read on to find out the point of the message are known as a(n) ________. a. blind headline b. blank headline c. gamble headline d. risky headline e. attention-getter (a; moderate; p. 394; LO2: AACSB Communication) 32.

Next to the headline, which element of copy has the second-highest readership? a. overlines b. underlines c. call-outs d. captions e. taglines (d; difficult; p. 395; LO2: AACSB Communication) ________ are sectional headlines and are also used to break up a mass of “gray” type in a large block of copy. a. Captions b. Subheads c. Taglines d. Slogans e. Direct headlines (b; moderate; p. 395; LO2: AACSB Communication) 33.

34.

Which of the following is a NOT literary technique used by copywriters to enhance the memorability of subheads, slogans, and taglines? a. direct address b. parallel construction c. music d. cue for the product e. cliches (e; easy; pp. 396-397; LO2: AACSB Communication)

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35.

Which of the following is NOT a literary technique used by copywriters to enhance the memorability of subheads, slogans, and taglines? a. startling or unexpected phrases b. rhythm c. association d. rhyme e. alliteration (c; difficult; p. 396; LO2: AACSB Communication) 36.

Which of the following literary techniques use(s) repetition of sounds? a. rhyme b. rhythm c. alliteration d. a and b e. a, b, and c (e; moderate; p. 397; LO2: AACSB Communication) 37.

Which element of copy is the text of the ad that develops the sales messages, states the argument, summarizes the proof, and provides explanation? a. headline b. subhead c. caption d. body copy e. display copy (d; easy; p. 397; LO2: AACSB Communication) 38.

Which of the following is a standard approach to writing body copy? a. straightforward b. narrative c. dialogue d. explanation e. all of the above (e; easy; p. 397; LO2: AACSB analytic Skills) 39.

Which of the following is NOT a standard approach to writing body copy? a. straightforward b. narrative c. alliteration d. translation e. explanation (c; moderate; p. 397; LO2: AACSB Communication)

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40.

Which standard approach to writing body copy is characterized by factual copy usually written in the words of an anonymous or unacknowledged source? a. straightforward b. narrative c. dialogue d. translation e. explanation (a; moderate; p. 397; LO2: AACSB Communication) 41.

Which standard approach to writing body copy tells a story in first person or third person? a. straightforward b. narrative c. dialogue d. translation e. explanation (b; moderate; p. 397; LO2: AACSB Communication) Which standard approach to writing body copy lets the reader “listen in” on a conversation? a. straightforward b. narrative c. dialogue d. translation e. explanation (c; easy; p. 397; LO2: AACSB Communication) 42.

43.

Which standard approach to writing body copy explains how something works? a. straightforward b. narrative c. dialogue d. translation e. explanation (e; easy; p. 397; LO2: AACSB Communication) 44.

Which standard approach to writing body copy defines technical information, such as that written for the high-tech and medical industries, into understandable language? a. straightforward b. narrative c. dialogue d. translation e. explanation (d; moderate; p. 397; LO2: AACSB Communication)

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45.

Which paragraph(s) gets special attention in body copy? a. lead b. closing c. middle d. a and b e. a, b, and c (d; moderate; p. 397; LO2) 46.

Which of the following is considered the first paragraph of the body copy? a. primary b. lead c. paramount d. initial e. headline (b; moderate; p. 397; LO2: AACSB Communication) 47.

What is the purpose of the closing paragraph in body copy? a. to give readers interesting information so that they go back and read the full body copy b. provides specific information such as price and warranty c. provides the required disclaimers d. draws the reader’s attention to the selling premise e. refers back to the creative concept and wraps up the Big Idea (e; moderate; p. 397; LO2: AACSB Communication) 48.

Which type of advertising is not considered intrusive because people consult this medium to find out what is on sale and what is happening in their community? a. magazine b. newspaper c. outdoor d. television e. radio (b; easy; p. 398; LO2: AACSB Ethical Reasoning) 49.

In which print medium can ads be more informative and carry longer copy? a. newspapers b. magazines c. directories d. posters e. outdoor advertising (b; moderate; p. 399; LO2: AACSB Communication)

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50.

What is the most important characteristic of copywriting for outdoor advertising? a. rhythm b. adese c. call to action d. brevity e. a startling or unexpected phrase (d; moderate; p. 400; LO2) 51.

Brochures and pamphlets and other materials that provide detail about a product, company, or event are known as ________. a. add-on materials b. supplemental literature c. collateral materials d. supplemental materials e. take-aways (c; moderate; p. 400; LO2: AACSB Communication) 52.

Radio’s special advantage is that the story is visualized in the listener’s imagination and is referred to as ________. a. theater of the mind b. the mind’s imagination c. image enhancer d. theater of the imagination e. “I saw it on the radio” (a; easy; p. 400; LO3: AACSB Communication) 53.

Which of the following is a tool of radio advertising? a. voice b. music c. sound effects d. a and b e. a, b, and c (e; easy; p. 401; LO3: AACSB Communication) 54.

Which is considered the most import element in radio advertising? a. voice b. music c. sound effects d. attitude e. tone (a; moderate; pp. 401-402; LO3: AACSB Communication)

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55.

Commercials in song are known as ________. a. jingles b. musicals c. lyricals d. sound effects e. voice-overs (a; easy; p. 401; LO3: AACSB Communication) 56.

Which of the following is NOT a guideline for writing effective radio commercials? a. keep it personal b. keep it brief c. speak to listeners’ interests d. make it memorable e. include call to action (b; difficult; p. 402; LO3) 57.

________ occurs in a radio commercial when the visuals from the TV version of an ad are re-created in a listener’s mind by the use of key phrases and ideas from the TV commercial. a. Adese b. Mental imagery c. Call to action d. Image transfer e. Brevity (d; moderate; p. 402; LO3: AACSB Communication) 58.

Copywriters working on a radio commercial use a standard ________ format to write the copy to certain time blocks—including all the words, dialogue, lyrics, sound effects, instructions, and descriptions. a. storyboard b. radio script c. transcript d. listing e. dual-column (b; easy; p. 402; LO3: AACSB Communication) 59.

Which of the following is a characteristic of television copy? a. action b. demonstration c. storytelling d. emotion e. all of the above (e; easy; p. 404; LO3: AACSB Communication)

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60.

What are the two primary tools available to television copywriters? a. voice-over and on-camera b. voice and sound effects c. video and audio d. on- and off-location e. script and storyboard (c; easy; p. 404; LO4; AACSB Analytic Skills) 61.

A camera-announcer relationship in which an announcer who is not visible describes some kind of action on the screen is known as (a) ________. a. voice-over b. remote-voice c. off-location d. ghost-voice e. voice effects (a; moderate; p. 404; LO4; AACSB Analytic Skills) 62.

What does the television copywriter have to describe concerning where the action takes place? a. costume b. props c. lighting d. set e. casting (d; easy; p. 405; LO4; AACSB Analytic Skills) 63.

Commercials shot outside the studio are said to be filmed ____, which means the entire crew and cast are transported somewhere away from the studio. a. hot b. cold c. on location d. remotely e. off camera (c; moderate; p. 406; LO4; AACSB Analytic Skills) 64.

Which of the following is NOT a role for which people can be cast in a television commercial? a. announcer b. director c. spokesperson d. character type e. celebrity (b; moderate; p. 406; LO4; AACSB Communication)

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65.

Segments of action in a television commercial that occur in a single location are known as ________. a. scenes b. segments c. key frames d. storyboards e. scripts (a; easy; p. 406; LO4; AACSB Communication) 66.

The visual that sticks in the mind and becomes the image that viewers remember when they think about the commercial is known as the ________. a. key scene b. key frame c. key board d. primary visual e. dominant visual (b; moderate; p. 406; LO4) 67.

A(n) ________ is the visual plan or layout of the commercial and shows the number of scenes, the composition of the shots, and the progression of the action. a. key frame b. scene plan c. storyboard d. storyline e. action plan (c; moderate; p. 407; LO4; AACSB Communication) 68.

What is the most common form of online advertising? a. superstitials b. minisites c. skyscrapers d. shockvertising e. banner ads (e; easy; p. 409; LO5; AACSB Use of IT) 69.

To grab an Internet surfer’s attention, what must the copywriter think about? a. offering a deal b. using an involvement device c. keeping the writing succinct d. changing the offer frequently e. all of the above (e; easy; p. 409; LO5; AACSB Use of IT)

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70.

Which of the following statements is false regarding copywriting in a global environment? a. English is more economical than many other languages. b. Standardizing the copy content by translating the appeal into the language of the foreign market is fraught with possible communication blunders. c. Most international campaigns are not literally translated. d. A back translation of the ad copy from the foreign language into the domestic one is always a good idea because it conveys a complete cultural interpretation. e. The most reasonable solution to the language problem is to use bilingual copywriters who understand the full meaning of the English text and can capture the essence of the message in the second language. (d; moderate; pp. 410-412; AACSB Multicultural and Diversity)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

If a message tries to convey abstract qualities, such as justice and quality, words tend to communicate these concepts more easily than pictures. (True; easy; p. 389) 72.

The person who shapes and sculpts the words in an advertisement is called the creative director. (False; moderate; p. 389; LO1) 73. Effective copy is succinct and single-minded. (True; moderate; p. 390; LO1; AACSB Communication) 74.

The more elaborate the copy, the easier it is to understand and the greater its impact. (False; moderate; p. 390; LO1; AACSB Reflective Thinking) 75.

One tip for writing effective copy is to use evocative or figurative language to build a picture in the consumer’s mind. (True; moderate; p. 390; LO1; AACSB Communication) 76. “Your-name-here-copy” is most effectively used in corporate advertising. (False; moderate; p. 390; LO1; AACSB Communication) 77. Incorrect grammar has no place in advertising copy. (False; moderate; p. 392; LO1; AACSB Communication) 78.

Formulaic advertising copy, called adese, violates guidelines for writing effective copy espoused in this chapter. (True; moderate; p. 392; LO1; AACSB Communication)

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79.

The two categories of copy that print advertising uses are display copy and body copy. (True; easy; p. 392; LO2) 80. Display copy includes the elements that are designed to be read and absorbed, such as the text of the ad message and captions. (False; moderate; p. 392; LO2; AACSB Communication) 81.

Good headlines interrupt readers’ scanning and get their attention, present the selling premise, and lead to conviction. (False; difficult; p. 392; LO2) 82. An assertion headline politely tells the reader to do something. (False; moderate; p. 394; LO2; AACSB Communication) 83. Association headlines use image and lifestyle to get attention and build interest. (True; easy; 394; LO2; AACSB Communication) 84.

Subheads are short, catchy, and particularly memorable phrases used at the end of an ad to complete or wrap up the creative idea. (False; moderate; p. 395; LO2; AACSB Communication) 85. The literary technique of parallel construction uses repetition of sounds. (False; difficult; p. 396; LO2) 86.

Good body copy keeps people’s interest so they continue reading past the headline. (True; easy; p. 397; LO2; AACSB Analytic Skills) 87.

Two paragraphs that get special attention in body copy are the lead and the summary. (False; moderate; p. 397; LO2; AACSB Communication) 88. All print ads end with a call to action with instructions on how to respond. (False; moderate; p. 397; LO2; AACSB Communication) 89.

Because of the clutter in newspapers, the copy in newspaper advertisements has to work harder than other kinds or advertising to catch the attention of its audience. (False; difficult; p. 398; LO2; AACSB Analytic Skills) 90.

The most important characteristic of copywriting for outdoor advertising is brevity. (True; moderate; p. 400; LO2; AACSB Communication) 91.

Experts suggest that copywriters use no less than 20 words in outdoor advertising copy. (False; difficult; p. 400; LO2; AACSB Communication)

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92. The tools of radio copywriting include voice, music, and sound effects. (True; easy; pp. 401-402; LO3) 93. The most important element in radio advertising is voices. (True; moderate; p. 401; LO3; AACSB Communication) 94. Radio advertising relies on conversational style and vernacular language. (True; moderate; p. 401; LO3; AACSB Communication) 95. Slang is usually effective in radio advertising. (False; difficult; p. 401; LO3; AACSB Analytic Skills) 96.

Storytelling is one way that copywriters can present action in a television commercial more powerfully than in other media. (True; moderate; p. 403; LO4; AACSB Communication) 97. Television copywriters have two primary tools: video and audio. (True; easy; p. 404; LO4) 98. Music is really not that important in television advertising. (False; moderate; p. 404; LO4; AACSB Communication) 99.

Commercials shot outside the studio are said to be filmed remotely, which means the entire crew and cast are transported somewhere away from the studio. (False; difficult; p. 406; LO4; AACSB Communication) 100. The people in a television commercial are referred to as the talent. (True; moderate; p. 406; LO4) 101.

A main idea is that visual that sticks in the mind and becomes the image that viewers remember when they think about the commercial. (False; moderate; p. 406; LO4; AACSB Communication) 102.

The storyboard, which is the visual plan or layout of the commercial, shows the number of scenes, the composition of the shots, and the progression of the action. (True; easy; p. 407; LO4; AACSB Communication) 103.

One way to make banner ads more effective is to change the offer frequently, perhaps even daily. (True; moderate; p. 409; LO5 104. The principles of good copywriting are not really applicable to web ads. (False; moderate; p. 409; LO5; AACSB Communication)

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105.

Standardizing the copy content by translating the appeal to the language of the foreign market is fraught with possible communication blunders. (True; easy; p. 410; AACSB Multicultural and Diversity)

GENERAL CONTENT: ESSAY QUESTIONS 106.

Compare and contrast display copy and body copy. Answer:

The two categories of copy that print advertising uses are display copy and body copy (or text). Display copy includes all elements that readers see in their initial scanning. These elements—headlines, subheads, call-outs, taglines, and slogans— usually are set in larger type sizes than body copy and are designed to get attention and to stop the viewer’s scanning. Body copy includes the elements that are designed to be read and absorbed, such as the text of the ad message and captions. (easy; p. 392; LO2; AACSB Communication) 107.

Name and describe the types of direct- and indirect-action headlines. Answer: Types of direct-action headlines: (1) Assertion—States a claim or a promise that will motivate someone to try the product. (2) Command—Politely tells the reader to do something. (3) How-To Heads—People are rewarded for investigating a product when the message tells them how to use it or how to solve a problem. (4) News Announcements—Used with new-product introductions, but also with changes, reformulations, new styles, and new uses. The news value is thought to get attention and motivate people to try the product.

Types of indirect-action headlines: (1) Puzzles—Used strictly for their curiosity and provocative power. Puzzling statements, ambiguity, and questions require the reader to examine the body copy to get the answer or explanation. The intention is to pull readers into the body copy. (2) Associations—Use image and lifestyle to get attention and build interest. (moderate; p. 394; LO2; AACSB Reflective Thinking)

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108.Name and describe the five standard approaches to writing body copy in print ads. Answer: (1)

Straightforward—Factual copy usually written in the words of an anonymous or an unacknowledged source. (2) Narrative—Tells a story in first person or third person. (3) Dialogue—Lets the reader “listen in” on a conversation. (4) Explanation—Explains how something works. (5) Translation—Technical information, such as that written for the high-tech and medical industries, must be defined and translated into understandable language. (moderate; pp. 396-397; LO2; AACSB Reflective Thinking) 109.

Compare and contrast copywriting for radio and copywriting for television. Answer: Because radio is a transitory medium, the ability of the listener to remember facts is difficult, so copywriters repeat the key points of brand name and identification information. Radio is pervasive in that it surrounds many of our activities, but it is seldom the listener’s center of attention and usually in the background. Radio’s special advantage, referred to as theater of the mind, is that the story is visualized in the listener’s imagination. The copywriter has all the theatrical tools of voices, sound effects, and music, but no visuals. The most important element in radio advertising is voices, which are heard in jingles, spoken dialogue, and announcements. Radio advertising also relies on conversational style and vernacular language. Guidelines for writing effective radio copy include: (1) Keep it personal (2) Speak to listeners’ interests (3) Wake up the inattentive (4) Make it memorable (5) Include call to action (6) Create image transfer

Television copywriters understand that it is the moving image, the action, which makes television so much more engaging than other media. The challenge for the writer is to fuse the images with the words to present not only a creative concept, but also a story. One of the strengths of television, then, is its ability to reinforce verbal messages with visuals or reinforce visuals with verbal messages. Viewers watching a program they enjoy often are absorbed to a degree only slightly less than that experienced by people watching a movie in a darkened theater. Effective television commercials can achieve this level of audience absorption if they are written to maximize the dramatic aspects of moving images and storytelling. Television copywriters have two primary tools: their audio and visual toolkits. Other tools include the setting, casting, costumes, props, and lighting. (difficult; pp. 402-403; LO3, LO4)

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110.

What is the most common form of Internet advertising, and what must the copywriter think about when developing these ads? Answer:

The most common form of online advertising is small banner ads containing text, images, and perhaps animation. The key to stopping surfers is vivid graphics and clever phrases. To grab the surfer, the copywriter must think about: (1) Offering a deal that promises a discount or a freebie as a prize. (2) Using an involvement device such as a challenge or contest. (3) Changing the offer frequently, perhaps even daily. One of the reasons people surf the Net is to find out what’s happening now. (4) Keeping the writing succinct because most surfers have short attention spans and get bored easily. (5) Focusing surfers’ attention by asking provocative questions or offering knowledge they can use. (6) Using the advertisement to solicit information and options from users as part of the research. (moderate; p. 409; LO5; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

As described in the chapter’s opening vignette, what tagline captured the Big Idea in the campaign to increase milk consumption? a. Mmm Good b. Milk is good food c. Live life, drink milk d. Got Milk? e. Milk and cookies go together like peanut butter and jelly (d; moderate; p. 387; LO2) 112.

Gwen was an English major in college and took a job at an advertising agency after she graduated. She knows the meanings and derivations, as well as the moods and feelings of words and the reverberations and vibrations they create in a reader’s mind. Her job is to shape and sculpt the words in an advertisement and is known as a(n) ___________. a. art director b. creative director c. copywriter d. wordsmith e. proofreader (c; easy; p. 389; LO1; AACSB Reflective Thinking)

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113.

Michelle just got her first job as a copywriter. Which of the following is a characteristic of writing effective copy that Michelle should know? a. be succinct b. get personal c. be conversational d. use variety e. all of the above (e; easy; p. 390; LO1; AACSB Reflective Thinking) An advertisement for an exercise bike exclaimed “Get fit as a fiddle!” What does this headline suffer from? a. adese b. corniness c. brag-and-boast copy d. your-name-here copy e. copyright violation (a; difficult; p. 392; LO1; AACSB Reflective Thinking) 114.

115.

A print ad for Wonder Bread used a picture of a little boy with sentences floating around him and arrows pointing to various parts of his body. Each arrow was accompanied by a statement telling how Wonder Bread helps a specific body part. These sentences and lines pointing to the various parts of the visual are known as ___________. a. overlines b. underlines c. body copy d. call-outs e. cut-outs (d; moderate; p. 393; LO2; AACSB Reflective Thinking 116.

The advertising agency for Ford Focus wants to test which of the two headlines they are considering for a magazine ad will have the greatest impact on the target audience. What kind of test can the agency conduct to determine this? a. end-run testing b. headline test c. split-run test d. dual test e. direct test (c; moderate; p. 394; LO2 AACSB Reflective Thinking)

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A headline for a magazine ad states “Lose up to 10 pounds this weekend!” Which type of headline does this best represent? a. command b. news announcement c. association d. assertion e. promise (d; moderate; p. 394; LO2 AACSB Reflective Thinking) 117.

For several years, Nike included the phrase “Just Do It” in all of their advertisements, print and television. This phrase is an example of a ___________. a. caption b. tagline c. slogan d. call-out e. body copy (c; moderate; p. 395; LO2; AACSB Reflective Thinking) 118.

119.

Howard Computers is a manufacturer of portable medical laptop computers, and they are more technical than a typical laptop computer. They will be advertising in trade and medical professional publications. Which approach to writing body copy would be most appropriate for this product and target market? a. straightforward b. narrative c. dialogue d. explanation e. translation (e; difficult; p. 397; LO2; AACSB Reflective Thinking) 120.

George’s job is to write brochures, pamphlets, and other materials that provide details about his agency’s client. The material he develops is used in support of an advertising campaign and is known as ___________. a. add-on materials b. supplemental literature c. collateral materials d. supplemental materials e. take-aways (c; moderate; p. 400; LO2; AACSB Reflective Thinking)

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As described in “The Inside Story,” what was the Big Idea for the Florida Film Festival's campaign? a. Traveling unexplored territory b. Make it big c. See a movie, have a party d. Enjoy the trivial e. Small things count (a; moderate; p. 405) 121.

122.

Vardaman Toyota routinely shoots television commercials in their car lot. Commercials shot outside the studio are said to be filmed ________. a. off camera b. on-location c. out-back d. on-the-lot e. remotely (b; moderate; p. 406; LO4; AACSB Reflective Thinking) As described in “The Inside Story,” what was the Big Idea of the Doritos Checkout Girl commercial? a. Two couch potatoes eating Doritos while watching a TV program. b. A girl and a guy eating Doritos in a park on a picnic. c. Two guys eating Doritos on a ferris wheel while checking out a cute girl on the ground. d. Flirtatious interaction between two Doritos lovers at a grocery store. e. Sweet interaction between a girl and a boy, 8 years old sharing Doritos. (d; moderate; p. 407) 123.

As described in “A Matter of Practice,” what was the objective of the print advertising developed for the scuba-diving industry? a. to get divers and nondivers alike to respect the ocean and not litter in the water b. to build a relationship with diving and move people from print to the industry’s web site c. to educate nondivers of the beauty and serenity of diving as a sport d. to get divers to dive more frequently e. to get divers and nondivers alike to understand that the ocean is a living thing (b; moderate; p. 411) 124.

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125.

As described in the chapter’s closing vignette, what was the result of the milk campaign? a. Milk consumption increased 15 million gallons over the previous year in California. b. Generated 20% more users of milk among women. c. Increased the awareness of milk as a healthy food. d. Increased nationwide awareness of milk from 20 percent to 45 percent e. Positioned milk nationally as an inexpensive drink. (a; moderate; p.412) What was the target market for the Verizon campaign described in the “HandsOn” case at the end of the chapter? a. suburban youths who text message friends b. moms with kids aged 16 years old and under c. children aged 6 to 10 years old who's parents want phones for security d. multicultural, young entrepreneurial types and those that have a passion for community service e. businesspeople who travel extensively and need a broad based network (d; moderate; p. 415) 126.

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Travelocity.com is an online travel agency that advertises that users will get the best prices on airfare, hotels, and rental cars. They use the “Traveling Gnome” in their television commercials, and he’s often in humorous situations. For example, a recent ad showed him in Europe where he plugged an American appliance (i.e., hair dryer) into a socket and was shocked across the room. All that was shown of him when the smoke cleared was the top of his gnome hat down behind a chair, and he said, “Am I going to die?” Mini-Case Question. The “Traveling Gnome” is considered which type of talent in the television commercials? a. announcer b. spokesperson c. character type d. celebrity e. talking head (b; difficult; p. 406; LO4; AACSB Reflective Thinking) 127.

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128.

Mini-Case Question. With all of Travelocity.com’s commercials, there’s one visual that sticks in the mind and becomes the image that viewers remember when they think about the commercial, such as when The “Traveling Gnome” plugged his American hair dryer into a European socket and was jolted across the room. This visual is known as a(n) ________. a. action point b. visual point c. key visual d. key frame e. primary frame (d; moderate; p. 406; LO4; AACSB Reflective Thinking) 129.

Mini-Case Question. When a new concept and execution is developed for a television commercial, Travelocity.com’s advertising agency provides a visual plan or layout of the commercial for the company to approve. The plan shows the number of scenes, the composition of the shots, and the progression of action and is known as a(n) ________. a. storyboard b. scene-by-scene plan c. script d. action plan e. progression sheet (a; easy; p. 407; LO4; AACSB Reflective Thinking) 130.

Mini-Case Question. Because Travelocity.com is an online travel agency, it’s only natural that they would use web advertising, particularly banner ads. To grab the surfer’s attention, which of the following must the copywriter think about? a. offering a deal b. using an involvement device c. changing the offer frequently d. keeping the writing succinct e. all of the above (e; easy; p. 409; LO5; AACSB Reflective Thinking)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

Describe the milk advertising campaign that was described in the chapter’s opening vignette. Answer:

The "Got Milk?" campaign featured celebrities endorsing milk while sporting prominent milk mustaches that associated drinking milk as being cool. This simple Big Idea became a cultural icon. (moderate; p. 387)

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132.

List five characteristics for writing effective copy that were given in the chapter. Answer:

Students can list any five of the following: (1) Be succinct. (2) Be single-minded. (3) Be specific. (4) Get personal. (5) Keep a single focus. (6) Be conversational. (7) Be original. (8) Use variety. (9) Use imaginative description. (moderate; p. 390; LO1; AACSB Reflective Thinking) 133.

Toni is a copywriter for several clients’ accounts. Regardless of the campaign, she falls back on general principles that guide her development of headlines for ads. Discuss the four general principles that she uses as a guide when developing a headline for an ad. Answer:

Because headlines are so important, some general principles guide their development and explain the particular functions they serve: (1) A good headline will attract only those who are prospects; there is no sense in attracting people who are not in the market. (2) The headline must work in combination with the visual to stop and grab the reader’s attention. (3) The headline must also identify the product and brand, and start the sale. The selling premise should be evident in the headline. (4) The headline should lead readers into the body copy. (moderate; p. 394; LO2; AACSB Reflective Thinking) 134.

A magazine ad for Aveeno moisturizing lotion states, “Get healthy skin for life.” Name and describe the type of headline this illustrates. Answer:

This is an example of a direct-action headline known as assertion. An assertion is a headline that states a claim or a promise that will motivate someone to try the product. (moderate; p. 394; LO2; AACSB Reflective Thinking)

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135.

A magazine ad for Geico car insurance states “How Could You Save Over $200 on Car Insurance?” with a subhead of, “The answer is @ your fingertips.” The ad then went on to explain how in just minutes you can get an accurate quote when you visit their web site. Name and describe the type of headline this illustrates. Answer:

This is an example of a direct-action headline and is best described as a how-to headline. With a how-to headline, people are rewarded for investigating a product when the message tells them how to use it or how to solve a problem. However, an argument can be made that this is also an example of an assertion headline, which is one that states a claim or a promise that will motivate someone to try the product. (moderate; p. 394; LO2; AACSB Reflective Thinking) 136.

You are going to lead the creative team in coming up with a new slogan for a client. List some techniques copywriters use to create catchy slogans. Answer:

Techniques for creating catchy slogans: (1) Direct Address (2) Startling or Unexpected Phrase (3) Rhyme, Rhythm, Alliteration—Uses repetition of sounds (4) Parallel Construction—Uses repetition of the structure of a sentence or phrase (5) Cue for the Product (6) Music (7) Combination (rhyme, rhythm, parallel) (moderate; pp. 396-397; LO2; AACSB Reflective Thinking)

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137.

Stephanie is a copywriter for primarily print media. Although all the print media she writes for use the same copy elements, such as headlines and body copy, the way these elements are used varies with the objectives for using the medium. Name the major print media and describe how the copy elements are used for each. Answer: Newspaper advertising is one of the few types of advertising that is not considered intrusive because people consult the paper as much to see what is on sale as to find out what is happening. For this reason, the copy does not have to work as hard as other kinds of advertising to catch attention. The ads don’t have to entertain, and most copy is straightforward, informative, and brief. Magazines offer better-quality ad production. Ads can be more informative and carry longer copy than do newspapers. Copywriters also take care to craft clever phrasing for the headlines and the body copy. Directories that provide contact information, such as phone numbers and addresses, often carry display advertising. It’s advisable to use a headline that focuses on the service or store personality unless the store’s name is a descriptive phrase. Complicated explanations don’t work well because there is little space. It is not wise to include information that is subject to change because the directory is published only once a year. Posters and outdoor boards are primarily visual, although the words generally try to catch consumers’ attention and lock in an idea, registering a message. The most important characteristic of copywriting for outdoor advertising is brevity.

Product literature (or collateral materials) is used in support of an advertising campaign. Brochures and pamphlets and other materials provide details about a product, company, or event. Typically, product literature is a heavy-copy format, or at least a format that provides room for explanatory details along with visuals; the body copy may dominate the piece. For a pamphlet with folds, a writer must also consider how the message is conveyed as the piece is unfolded. (moderate; p. 398–400; LO2; AACSB Reflective Thinking)

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138.

Bob is a sales representative for a local radio station, but he also helps advertisers with the copy for their ads. What are the main tools Bob has to work with when developing copy for radio commercials and how are they used? Answer:

In radio advertising, the tools are the audio elements that the copywriter uses to craft a commercial: voice, music, and sound effects. The most important element is voices, which are heard in jingles, spoken dialogue, and announcements. Music can be used behind the dialogue to create a mood or establish a setting. The primary use of music is in support of jingles, which are commercials in song. Sound effects are described in radio script and are important in making a commercial attention-getting and memorable. (moderate; pp. 401-402) 139.

Describe the Big Idea for the Florida Film Festival's campaign featured in “The Inside Story.” Answer:

The Big Idea for the Florida Film Festival's campaign was traveling unexplored territory. The ads placed the movie viewers in dramatically unexpected surroundings illustrating the excitement of leaving one's comfort zone. (moderate; p. 405) 140.

Storytelling is one way that copywriters can present action in a television commercial more powerfully than in other media. Discuss the characteristics of storytelling and message design. Answer:

Most of the programming on television is narrative so commercials use storytelling to take advantage of the medium’s strength. TV is our society’s master storyteller because of its ability to present a plot and the action that leads to a conclusion in which the product plays a major role. TV can dramatize the situation in which a product is used and the type of people using it. Stories can be riveting if they are well told, but they must be imaginative to hold their own against the programming that surrounds them. (moderate; p. 403; LO4; AACSB Reflective Thinking)

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141.

Describe the Doritos TV ad that was discussed in “The Inside Story.” Answer:

Humor and branding folded into the idea off the spot, which was a flirtatious interaction between two unsuspecting Doritos lovers at a grocery store. The spot was filmed in the visually interesting and colorful grocery store. (moderate; p. 407) 142.

Jane is interning at an advertising agency for the summer, and she is assisting a television copywriter, Harold. To help her get started, Harold provides her with some general principles that are relevant for most effective television commercials. List five of the principles he could have discussed with her. Answer:

Students can discuss any of the following five: (1) What’s the Big Idea you need to get across? (2) What’s the benefit of that Big Idea, and who does it benefit? (3) How can you turn that benefit into a visual element? (4) Gain the interest of your viewer at the beginning; the first three seconds are critical. (5) Focus on a key visual, a scene that encapsulates your entire selling message into one neat package. (6) Be single-minded—Tell one important story per commercial. (7) Observe the rules of good editing. (8) Try to show the product in close-up at the end. (moderate; pp. 406-407; LO4; AACSB Reflective Thinking) 143.

Rob has been writing advertising copy for magazine ads for many years, but now he wants to venture into writing copy for web ads. Explain how writing for the web is going to be different for Rob. Answer:

The web is more interactive than any other medium. Not only does the viewer initiate the contact, but viewers can send e-mail on many, if not most, web sites. This makes web advertising more like two-way communication, and that’s a major point of difference from other advertising forms. So not only is the web copywriter challenged to attract people to the site, but also to manage a dialoguebased communication experience. (easy; pp. 408-409; LO5; AACSB Reflective Thinking)

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144.

As described in “A Matter of Practice,” why did the scuba-diving industry advertise and how was their campaign executed? Answer:

The scuba-diving industry wanted to revive interest in the sport of scuba, with both current divers and potential newcomers. The objective was to build a relationship with diving and move people from print to the industry’s web site. They created a campaign in the literal voice of the ocean. The creative idea is that the ocean not only has a personality, it speaks in the body copy. The ocean also speaks on the web site, with the message appropriate for either novice or experienced divers. Each page has its own message from the ocean on the top. (moderate; p. 411) 145.

What was the objective and the results of the milk campaign described in the chapter’s opening and closing vignettes? Answer:

The objective of the milk campaign was to increase milk consumption in California. The results were that milk consumption increased 15 million gallons over the previous year in California and won many awards for the campaign. (difficult; p. 412) 146.

Describe the target market for the Verizon campaign and the execution described in the “Hands-On” case at the end of the chapter. Answer:

The target market for the Verizon Realize campaign was multicultural, urban, young entrepreneurs and those who had a passion for community service. The execution included real people with similar interests and who make a difference in their neighborhoods who are using Verizon broadband services. The grassroots campaign used multimedia like posters, mobile billboards, wraps for hair salon magazines, radio and bus shelter ads. (moderate; p. 415)

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APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Advertisements for a particular brand of soap include the phrase, “Love the skin you’re in.” Print ads usually show a close-up of a young woman’s clean face, and the copy is usually written as if she is telling the reader the benefits of this soap and how soft your skin will feel and how much you will love that feeling. The copy of this ad was translated into several foreign languages so that it could be used globally. However, German women thought it was strange to use the word love in reference to something other than another person because they would never use that strong of a word to describe what the ad was trying to convey. 147.

Mini-Case Question. The phrase “Love the skin you’re in” appears in every ad for this product. Explain what element of copy this represents. Answer:

This represents a slogan, which is a distinctive catch phrase that serves as a motto for a campaign, brand, or company. It is used across a variety of marketing communication messages and over an extended period of time. Slogans, which are repeated from ad to ad as part of a campaign or a long-term brand identity effort, also may be used as taglines. (easy; p. 393; LO2; AACSB; Reflective Thinking) 148.

Mini-Case Question. Name the standard approaches to writing body copy and explain which standard approach the print ad described represents. Answer: Standard approaches to writing body copy are: (1) Straightforward (2) Narrative (3) Dialogue (4) Explanation (5) Translation

This example is best described as narrative because it tells a story in the first person. (moderate; p. 397; LO2; AACSB; Reflective Thinking)

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149.

Mini-Case Question. One copy element of the print ad had an explanation of the effect this brand of soap had on the young woman’s skin structure, which is what allows skin to feel so soft after using this soap. An arrow was used to connect the explanation to the skin on her cheek. What type of copy element does this represent? Answer:

Call-outs are sentences that float around the visual (i.e., the young woman’s face), usually with a line or arrow pointing to some specific element (i.e., her skin) in the visual that they name and explain. (difficult; p. 393; LO2; AACSB; Reflective Thinking) 150.

Mini-Case Question. Discuss problems advertisers might face when translating copy into another language. Answer: Standardizing the copy content by translating the appeal into the language of the foreign market is fraught with possible communication blunders, such as the one illustrated here—Germans reserve the word love for human emotions toward each other, not inanimate objects. Headlines in any language often rely on a play on words, themes that are relevant to one country, or slang. Because these verbal techniques don’t cross borders well, copywriters must remove them from the advertising unless the meaning or intent can be re-created in other languages. For this reason, international campaigns are not literally translated. A back translation of the ad copy from the foreign language into the domestic one is always a good idea, but it never conveys a complete cultural interpretation.

Another problem copywriters may face globally is the fact that English is more economical than many other languages, which creates a major problem when the space for copy is laid out for English and more space is needed for another language, such as French. Along the same vein of thought, English does not have the subtlety of other languages, such as Chinese. (moderate; pp. 410, 412; AACSB Multicultural and Diversity)

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CHAPTER FOURTEEN Design and Production

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

Which of the following is a key reason designers focus on effective use of visuals in advertising? a. grab attention b. stick in memory c. tell interesting stories d. communicate quickly e. all of the above (e; easy; p. 419; LO1; AACSB Communication) 2.

Which of the following is NOT a key reason designers focus on effective use of visuals in advertising? a. anchor associations b. cement belief c. communicate quickly d. replace copy e. tell interesting stories (d; moderate; p. 419; LO1; AACSB Analytic Skills) 3.

In advertising, the power to get attention lies primarily with the ___________. a. visual b. audio c. script d. copy e. sound effects (a; moderate; p. 419; LO1; AACSB Analytic Skills) 4.

Who is the person most responsible for creating visual impact in an advertisement? a. copywriter b. art director c. producer d. designer e. photographer (b; easy; p. 422; LO2)

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Images from collections of copyright-free art that anyone who buys the service can use are known as ________. a. free art b. easy art c. stock art d. public art e. clip art (e; easy; p. 423; LO2) 6.

Imagining what the finished ad might look like is called ________. a. visualization b. artistic impression c. mental imagery d. stop action e. surrealism (a; easy; p. 423; LO2; AACSB Reflective Thinking) 7.

Which of the following is NOT included in the art director’s toolkit for print advertising? a. photos b. illustrations c. typefaces d. layout e. rotogravure (e; moderate; p. 423; LO2; AACSB Analytic Skills) 8.

When art directors use the word art, they usually mean ________. a. photographs b. illustrations c. color d. a and b e. a, b, and c (d; moderate; p. 423; LO2; AACSB Analytic Skills) 9.

Which of the following statements is false regarding photographs and illustrations? a. Most people feel that photographs lie because it is so easy to alter them with computer technology. b. A photograph is more realistic and an illustration is more fanciful. c. Illustrations eliminate many of the details you see in a photograph. d. Illustrations can focus attention on key details of the image. e. Illustrations can intensify meanings and moods. (a; moderate; p. 423; LO2; AACSB Analytic Skills)

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10.

Which of the following is a reason color is used in advertisements? a. attract attention b. provide realism c. establish moods d. build brand identity e. all of the above (e; easy; pp. 423-424; LO2; AACSB Analytic Skills) 11.

A second color used in addition to black-and-white is known as ________. a. mono color b. single color c. spot color d. limited color e. contrast color (c; moderate; p. 423; LO2; AACSB Analytic Skills) 12.

Warm colors, such as red, yellow, and orange convey ________. a. calm b. no-nonsense c. friendliness d. happiness e. aloofness (d; moderate; p. 425; LO2; AACSB Communication) 13.

What colors should an art director use if he or she wants to bring a friendly tone to an ad? a. blue and green b. yellow and red c. cool colors d. warm colors e. pastel colors (e; moderate; p. 425; LO2; AACSB Communication) 14.

The appearance of the ad’s printed matter in terms of the style and size of typefaces is known as ________. a. font b. typography c. layout d. design e. classification (b; moderate; p.425; LO2; AACSB Communication)

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15.

The primary function of ________ is to convey the words of the message. a. typography b. pica c. point d. color e. measurement (a; moderate; p. 425; LO2; AACSB Communication) 16.

What are the two major typeface families? a. point and pica b. face and size c. serif and sans serif d. justified and unjustified e. sorzal and sans sorzal (c; difficult; p. 426; LO2; AACSB Communication) 17.

Which of the following is NOT an aspect of typeface selection that designers must work with? a. justification b. capitalization c. lowercase d. legibility e. weight, posture, and width (a; difficult; p. 425; LO2) 18.

How the lines align at the end is another design choice in print ads known as ________. a. alignment b. posture c. points d. justification e. legibility (d; moderate; p. 426) 19.

A key to an effective outdoor board is the _______ should be an eye-stopper. a. graphics b. size c. colors d. figure/ground e. typography (a; moderate; p. 431; LO2; AACSB Communication)

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20.

A key to creating an effective outdoor board is to understand the impact of the _______ which is huge, often hundreds of times larger than life. a. graphics b. size c. colors d. figure/ground e. typography (b; moderate; p. 431; LO2; AACSB Communication) 21.

A key to an effective outdoor board is the _______ should be bold and bright with maximum contrast for greatest impact. a. graphics b. size c. colors d. figure/ground e. typography (c; moderate; p. 431; LO2; AACSB Communication) 22.

A key to an effective outdoor board is the _______ relationship should be as obvious as possible. The background should never compete with the subject. a. graphics b. size c. colors d. figure/ground e. typography (d; moderate; p. 431; LO2; AACSB Communication)

23.

A key to an effective outdoor board is the _______ should be clean, uncluttered type that is easy to read at a distance by an audience in motion. a. graphics b. size c. colors d. figure/ground e. typography (e; moderate; p. 431; LO2; AACSB Communication) 24.

The ________ of type refers to how easy it is to perceive the letters. a. legibility b. point c. pica d. justification e. typography (a; moderate; p. 425; LO2)

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25.

White letters written on a dark background is known as ________. a. reverse type b. negative type c. white space d. surprinting e. ornamental type (a; difficult; p. 426[Figure 14.1]; LO2) 26.

Which of the following does NOT hinder the legibility of print ads? a. reverse type b. all capitals c. left justification d. ornamental type e. surprinted type (c; moderate; p. 426 [Figure 14.1]; LO2) 27.

Running the type over another image in a print ad is known as ________. a. reverse type b. surprinting c. over-printing d. bleed through e. nonlinear type (b; difficult; p. 426 [Figure 14.1]; LO2) 28.

A plan that imposes order and at the same time creates an arrangement that is aesthetically pleasing in a print ad is known as a(n) ________. a. action plan b. creative plan c. layout d. storyboard e. thumbnail sketch (c; moderate; p. 427; LO2; AACSB Analytic Skills) 29.

Which of the following layouts is the most common format with a single dominant visual that occupies about 60 to 70 percent of the ad’s space? a. picture window b. all art c. dominant type d. panel e. grid (a; moderate; p. 427; LO2)

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30.

Which of the following is NOT a common type of ad layout? a. picture window b. grunge c. dominant type d. panel or grid e. symmetrical (e; moderate; pp. 427-428; LO2) 31.

A layout that uses a number of visuals of matched or proportional sizes is known as ________. a. picture window b. nonlinear c. dominant type d. panel or grid e. symmetrical (d; moderate; p. 428; LO2) 32.

A style of layout that shows what is presumed to be a lack of concern for the formalities of art, design, type styles, and legibility is known as ________. a. chaos b. entropy c. grunge d. nonlinear e. circus (c; moderate; p.428; LO2) 33.

A contemporary style of layout that can be read starting at any point in the image is known as ________. a. circus b. panel or grid c. grunge d. picture window e. nonlinear (e; moderate; p. 428; LO2) 34.

Which of the following is a design principle that guides designers as they lay out an ad? a. direction b. dominance c. unity d. balance e. all of the above (e; easy; p. 425; LO2; AACSB Communication)

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35.

Which design principle describes the situation when all the elements in an ad fuse into one coherent image and the pieces become a whole? a. unity b. oneness c. balance d. direction e. proportion (a; moderate; p. 425; LO2; AACSB Communication) 36.

A copy ________ layout type may have art, but it is either embedded in the copy or placed in a subordinate position. a. dominant b. circus c. panel d. nonlinear e. grunge (a; moderate; p. 428; LO2) 37.

A ________ layout type combines lots of elements to create a jumbled image? a. dominant b. circus c. panel d. nonlinear e. grunge (b; moderate; p. 428; LO2) 38.

A(n) ________ layout type emphasizes the type rather than the art, even the headline is treated as type art. a. all copy b. circus c. panel d. nonlinear e. grunge (a; moderate; p. 428; LO2) 39.

Which of the following is NOT a stage in the normal development of a print ad? a. storyboard b. thumbnail sketches c. rough layouts d. semicomps e. All of the above are stages in the normal development of a print ad. (a; difficult; p.428; LO2; AACSB Communication)

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40.

Quick, miniature preliminary sketches are known as ________. a. rough layouts b. semicomps c. rushes d. thumbnail sketches e. mechanicals (d; moderate; p.428; LO2; AACSB Communication 41.

In which layout stage of a print ad are the elements assembled in their final position for reproduction? a. thumbnail sketches b. comprehensives c. mechanicals d. rough layouts e. semicomps (c; moderate; p.428; LO2; AACSB Communication) 42.

Inexpensive, rough-surfaced, spongy paper that quickly absorbs ink on contact is known as ________. a. quick paper b. newsprint c. recycled paper d. quickprint e. quick absorb (b; moderate; p.431; LO3; AACSB Communication) 43.

Color that aligns exactly with the image in a print ad is said to be in ________. a. register b. alignment c. specs d. tolerances e. allowance (a; moderate; p.431; LO3; AACSB Communication) 44.

Which of the following is a tip for designers of poster or outdoor boards? a. Make the illustration an eye-stopper. b. Add motors to boards to make pieces and parts move. c. Use simple, clean, uncluttered type that is easy to read at a distance by an audience in motion. d. Use bold, bright colors. e. all of the above (e; easy; pp. 431-432; LO3; AACSB Communication)

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45.

What are the two general types of printed images? a. formal and informal b. photographs and illustrations c. color and black-and-white d. line art and halftone e. tint blocks and halftone (d; moderate; p. 432; LO3; AACSB Communication) 46.

Photographs are considered which type of printed image? a. formal b. halftone c. tint block d. line art e. informal (b; moderate; p. 432; LO3; AACSB Communication) 47.

Full-color images are reproduced using four distinctive shades of ink called ________. a. process colors b. primary colors c. basic colors d. halftones e. tint blocks (a; moderate; p. 433; LO3; AACSB Communication) 48.

Full-color images are reproduced using four distinctive shades of ink called process colors in a process called ________. a. full-color printing b. four-color printing c. tint blocking d. color surprinting e. color transferring (b; moderate; p. 433; LO3; AACSB Communication) 49.

The process printers use to reduce the original color image to four halftone negatives is called ________. a. tint reduction b. color separation c. offsetting d. rotogravure e. C-prints (b; moderate; p. 433; LO3; AACSB Communication)

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50.

Which of the following is NOT considered a process color? a. black b. magenta c. cyan d. yellow e. brown (e; moderate; p. 433; LO3; AACSB Communication) 51.

A _______ writes the script for a broadcast production. a. copywriter b. art director c. producer d. director e. composer (a; moderate; p. 436; LO4; AACSB Communication)

52.

The _______ develops the storyboard and establishes the look of the commercial. a. copywriter b. art director c. producer d. director e. composer (b; moderate; p. 436; LO4; AACSB Communication)

53.

The _______ takes charge of the TV production, handles the bidding, and all the production arrangements. a. copywriter b. art director c. producer d. director e. composer (c; moderate; p. 436; LO4; AACSB Communication)

54.

The _______ has responsibility for the actual filming of the TV commercial. a. copywriter b. art director c. producer d. director e. composer (d; moderate; p. 436; LO4; AACSB Communication)

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55.

________ creates a raised surface on paper, and ________ creates a depressed image in paper. a. Formal printing; informal printing b. Serif; sans serif c. Embossing; debossing d. On-stamping; in-stamping e. Overlay; inlay (c; moderate; p. 433; LO3; AACSB Communication) 56.

The application of a thin metallic coating molded to the surface of the image with heat and pressure is called ________. a. foil stamping b. embossing c. debossing d. digitizing e. veloxing (a; moderate; p. 433; LO3; AACSB Communication) 57.

Separate preprinted ads provided by the advertiser to be glued into a publication as the publication is being assembled are known as ________. a. embosses b. die-cuts c. foil stamping d. veloxes e. tip-ins (e; moderate; p. 433; LO3; AACSB Communication) 58.

Previously recorded images, either video, still slides, or moving film are known as ________. a. morphs b. stock footage c. tip-ins d. photostats e. clip art (b; moderate; p. 434; LO4; AACSB Communication) 59.

A set of computer-generated letters that appear to be moving across the bottom of the television screen is known as a(n) ________. a. crawl b. morph c. stock foot d. tickertape e. overwrite (a; moderate; pp. 434-435; LO4; AACSB Communication)

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60.

A video technique in which one object gradually changes into another is called ________. a. crawling b. image transfer c. morphing d. transformation e. conversion (c; moderate; p. 435; LO4) 61.

The _______ writes the script for a broadcast production. a. copywriter b. art director c. producer d. director e. composer (a; moderate; p. 436; LO4; AACSB Communication) 62.

Moving an inanimate object a bit at a time and filming it frame by frame is known as ________. a. stop motion b. stop action c. micro filming d. slow motion e. step motion (a; moderate; p. 437; LO4; AACSB Communication) 63.

Which of the following is NOT a step of the television production process? a. preproduction b. postproduction c. shorts d. the shoot e. message design (c; moderate; p. 439 [Figure 14-6]; LO4; AACSB Communication) 64.

Finding the right director, locating or building a set, and casting the talent are elements of which step in the production of a television commercial? a. message design b. preproduction c. production d. postproduction e. morphing (b; moderate; p. 439 [Figure 14.6]; LO4; AACSB Communication)

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65.

During a television commercial shoot, which technician moves props and sets and lays tracks for the dolly on which the camera is mounted? a. grip b. gaffer c. camera crew d. shoot clerk e. mixer (a; difficult; p. 439; LO4; AACSB Communication) 66.

Rough versions of the commercial assembled from cuts of the raw film footage are known as ________. a. dailies b. rushes c. rough cut d. interlock e. answer print (b; moderate; pp. 439-441; LO4; AACSB Communication) 67.

Which of the following represents the correct order of the television postproduction output? a. dailies, rushes, rough cut, interlock, and release print b. interlock, rough cut, answer print, release print c. rough cut, interlock, release print, duplicate print d. rough cut, interlock, answer print, release print e. interlock, dubbed print, answer print (d; difficult; p. 441; LO4; AACSB Communication) 68.

The final version of a television commercial with the sound and film mixed together is called a(n) ________. a. interlock b. answer print c. release print d. edited print e. final print (b; moderate; p. 441; LO4; AACSB Communication) 69.

From which of the following media can web pages combine elements and design styles? a. print b. still photography c. film d. sound e. all of the above (e; easy; pp. 441-444; LO4; AACSB Communication)

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70.

Because users can create their own paths through the web site, designers have to make sure that their sites have clear ________. a. flow paths b. networks c. sequencing d. navigation e. click throughs (d; moderate; p. 443; LO4; AACSB Communication)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

In effective advertising, the visuals work together with the words to present the creative concept. (True; easy; p. 419) 72.

Undifferentiated products with low inherent interest can be distinguished by linking the product with a visual representing lifestyles and types of users. (True; moderate; p. 419; LO1) 73. The visual’s primary function in an advertisement is to get attention. (True; easy; p. 419; LO1; AACSB Communication) 74. The person most responsible for creating visual impact is the creative director. (False; moderate; p. 422; LO1; AACSB Communication) 75.

One of the most difficult problems that art directors—and those who work on the creative side of advertising—face is transforming pictures into words. (False; moderate; p. 423; LO2; AACSB Communication) 76.

The art director’s toolkit for print advertising includes the photos, illustrations, typeface, color, and layout of the proposed ad. (True; moderate; p. 423; LO2; AACSB Communication) 77. When art directors use the word art, they mean only illustrations. (False; moderate; p. 423; LO2; AACSB Communication) 78. Print ads with color tend to get more attention than ads without color. (True; moderate; p. 424; LO2; AACSB Communication) 79. Cool colors, such as blue and green, convey happiness. (False; moderate; p. 425; LO2; AACSB Communication) 80.

The appearance of the ad’s printed matter in terms of the style and size of typefaces is known as typography. (True; moderate; p. 425; LO2; AACSB Communication)

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81. Type in print ads have an aesthetic as well as a functional role. (True; easy; p. 425; LO2; AACSB Communication) 82. A key to an effective outdoor board is the graphics should be an eye-stopper. (True; moderate; p. 431; LO3; AACSB Communication) 83.

It is important to recognize that for an outdoor board the size is huge, often hundreds of times larger than life. (True; moderate; p. 431; LO3; AACSB Communication) 84.

A Circus layout combines lots of elements—art, type, color—to deliberately create a busy, jumbled image. (True; moderate; p. 428; LO2; AACSB Communication) 85.

With balance, all the elements in an ad fuse into one coherent image and the pieces become a whole. (False; moderate; p. 425; LO2; AACSB Communication) 86. A basic design principle is “Less is more.” (True; easy; p. 425; LO2; AACSB Communication) 87.

A layout stage in which the elements are assembled in their final position for reproduction is known as a comprehensive. (False; moderate; p. 428; LO2; AACSB Communication) 88.

One problem with using color in newspaper advertising is that because of the limitations of the printing process, the color may not be perfectly in register. (True; moderate; p. 431; LO3; AACSB Communication) 89.

One recommendation for designers of outdoor advertising is to make the relationship between foreground and background as obvious as possible. (True; moderate; p. 431; LO3; AACSB Communication) 90. The two general types of printed images are photographs and illustrations. (False; moderate; p. 432; LO3; AACSB Communication) 91.

Color is reproduced by setting up a printing press with a separate ink roller for every hue and value in a color photo. (False; moderate; p. 432; LO3; AACSB Communication) 92.

The process printers use to reduce the original color image to four halftone negatives is called color separation. (True; moderate; p. 433; LO3; AACSB Communication)

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93.

The art director in TV develops the storyboard and establishes the look of the commercial. (True; moderate; p. 436; LO4; AACSB Communication) 94.

Although digitization and desktop publishing are increasingly being used in print design and production, computers are still not able to produce the printing plates directly from the layout. (False; moderate; p. 433; LO3; AACSB Communication) 95.

Tip-ins are separate preprinted ads provided by the advertiser to be glued into a publication as the publication is being assembled. (True; moderate; p. 433; LO3; AACSB Communication 3) 96.

The visual storytelling in a television commercial is the responsibility of the art director. (True; moderate; p. 436; LO4; AACSB Communication) 97.

Although previously recorded images, either video, still slides, or moving film, known as stock footage, are available, art directors prefer to use original footage for television commercials. (False; difficult; pp. 434-435; LO4; AACSB Communication) 98.

Morphing is a video technique in which one object gradually changes into another. (True; easy; p. 435; LO4; AACSB Communication) 99. The producer is the person responsible for the filming of a television commercial. (False; moderate; p. 436; LO4; AACSB Communication) 100. Stop motion and claymation are two types of animation. (True; moderate; p. 437; LO4; AACSB Communication) 101.

The four major steps in the production of a television commercial are message design, preproduction, the shoot, and postproduction. (True; easy; p. 439[Figure 14-6]; LO4; AACSB Communication) 102.

The director has responsibility for the actual filming of a TV commercial, including how long the scene runs. (True; moderate; p. 436; LO4; AACSB Communication) 103.

Dailies are rough versions of the commercial assembled from cuts of the raw film footage. (False; moderate; p. 439; LO4; AACSB Communication)

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104.

The result of the editor’s initial work is called an interlock, which is a preliminary edited version of the story that is created when the editor chooses the best shots and assembles them to create a scene. (False; moderate; p. 441; LO4; AACSB Communication) 105. Web designers use a completely different toolbox than other types of art directors. (True; difficult; p. 442; LO5; AACSB Use of IT)

GENERAL CONTENT: ESSAY QUESTIONS 106.

Discuss the six key reasons for the effective use of visuals in advertising. Answer:

Designers focus on six key reasons for the effective use of visuals in advertising: (1) Grab Attention—Generally visuals are better than words at getting and keeping attention. (2) Stick in Memory—Visuals stick in the mind because people generally remember messages as visual fragments, as key images that are filed easily in their minds. (3) Cement Belief—Seeing is believing, so visuals that demonstrate add credibility to a message. (4) Tell Interesting Stories—Visual storytelling is engaging and maintains interest. (5) Communicate Quickly—Pictures tell stories faster than words because a picture communicates instantly, whereas consumers have to decipher verbal/written communication word-by-word, sentence-by-sentence, lineby-line. (6) Anchor Associations—To distinguish undifferentiated products with low inherent interest, advertisers often link the product with visual associations representing lifestyles and types of users. (moderate; p. 419; LO1; AACSB Communication)

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107.

Name and describe primary elements of the art director’s toolkit for print advertising. Answer: The art director’s toolkit for print advertising includes the photos, illustrations, typefaces, color, and layout of the proposed ad. Illustrations and Photos—When art directors use the word art, they usually mean photographs and illustrations. Photography has an authenticity that makes it powerful, whereas illustrations are more fanciful. Illustrations eliminate many of the details you see in a photograph, often making it easier to understand. Color is used to attract attention, provide realism, establish moods, and build brand identity. Print ads with color get more attention than ads without color. However, black-and-white also lends a dignity and sophistication to the visual. Ads can also use spot color, in which they use a second color in addition to black to highlight important elements. Typography is the appearance of the ad’s printed matter in terms of the style and size of typefaces. Art directors’ concerns include fonts, justification, type measurement, and legibility.

Finally, a layout is a plan that imposes order and at the same time creates an arrangement that is aesthetically pleasing. Some common types of ad layouts the art director might use are picture window, all art, panel or grid, dominant type or all copy, circus, nonlinear, and grunge. Finally several design principles guide designers as they lay out an ad, such as direction, dominance, unity, white space, contrast, balance, proportion, and simplicity. (moderate; pp. 423-425; LO2; AACSB Communication)

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108.

Explain what layout means, and name and describe four of the common ad layouts the art director might use. Answer:

A layout is a plan that imposes order and at the same time creates an arrangement that is aesthetically pleasing. Some common types of ad layouts the art director might use are (students have to name and describe only four of the following): (1) Picture Window—One of the most common formats; it uses a single, dominant visual that occupies about 60 to 70 percent of the ad’s space. (2) All Art—Art fills the frame of the ad and the copy is embedded in the picture. (3) Panel or Grid—Can use a number of visuals of matched or proportional sizes. If there are multiple panels all of the same size, the layout can look like a window pane or comic strip panel. (4) Dominant Type or All Copy—Layout that emphasizes the type rather than the art, or even an all-copy ad in which the headline is treated as type art. A copy-dominant ad may have art, but it is either embedded in the copy or placed in a subordinate position, such as at the bottom of the layout. (5) Circus—Combines lots of elements—art, type, color—to deliberately create a busy, jumbled image. This is typical of some discount store ads or ads for local retailers, such as tire companies. (6) Nonlinear—A contemporary style of layout that can be read starting at any point in the image, meaning the direction of viewing is not ordered. This style of ad layout works for young people, but they are not as effective for older generations. (7) Grunge—Shows what is presumed to be a Generation X–inspired lack of concern for the formalities of art, design, type styles, and legibility. (moderate; pp. 427-428; LO2; AACSB Communication) 109.

Explain the two ways videographers and photographers handle composition. Answer:

The two ways videographers and photographers handle composition are: (1) place or arrange the elements in front of their cameras (2) manipulating their own point of view if the elements can't be moved. The people move around to find the most aesthetic way to frame an image that is not movable. (moderate; p.428; LO2; AACSB Communication)

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110.

Name the four steps in the production of a television commercial, and discuss some of the activities associated with each. Answer:

In general, there are four steps in the production of a television commercial (students do NOT need to include all of the activities associated with each step to adequately answer the question): (1) Message Design—Includes getting client approval on the advertising strategy, choosing the message format, creating a key frame, writing the script, storyboarding the action and scenes, and getting client approval of script and storyboard. (2) Preproduction—Develop a set of production notes describing in detail every aspect of the production. Activities at this stage include: find the right director, find the production house or animation house, work out details in preproduction meetings, locate or build the set, cast the talent, locate props, costumers, and photographic stills, and get bids for all the production operations. (3) Production (the Shoot)—The director manages the shoot, and activities include: record the action on film; record music, voices, and sound effects; create the onscreen graphics; and create computer graphics. (4) Postproduction—When the commercial begins to emerge from the hands and mind of the editor. Activities include: edit the film, mix the audio track, synchronize the video and the audio, give a presentation tape to client for approval, and duplicate videotapes for distribution. (moderate; p. 439; [Figure 14.6]; LO4; AACSB Communication)

APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

What was the challenge facing the advertising agency that developed the campaign for Altoids described in the chapter’s opening vignette? a. to increase awareness of a new line of mints b. to increase awareness of a the brand among for children younger than 12 years old c. to depict visually the impact of the flavor d. to communicate to consumers the superior quality of the Altoids brand e. to communication to consumers the price/value relationship of Altoids (c; moderate; p. 417)

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112.

Arthur works at an advertising agency and is in charge of the visual look of the message, both in print and TV, and how it communicates mood, product qualities, and psychological appeals. He makes decisions about whether to use art or photography in print, film or animation in television, and what type of artistic style to use. He was trained in graphic design and designs ads, but he rarely creates the finished art. What is Arthur’s job title? a. producer b. art director c. advertising director d. creative director e. creative strategist (b; easy; p. 422; LO2; AACSB Communication) 113.

Stan is a copywriter and Bob is an art director working on a client’s account. They are brainstorming ideas and trying to imagine what the finished ad might look like. What technique can they use to imagine what the finished ad might look like? a. creative aerobics b. thought listing c. “drawing on the right side of the brain” d. visualization e. image transfer (d; moderate; p. 423; LO2) 114.

Kindrella is trying to convey happiness in a print ad. Which of the following color(s) can she use to convey happiness? a. yellow b. orange c. red d. a and b e. a, b, and c (e; moderate; p. 425; LO2; AACSB Communication) Typeface that looks like this: ABCDEFGHIJK... is known as ________. a. serif b. sans serif c. block printing d. ornamental e. surprinted (b; moderate; p. 426 [Figure 14.1]; LO2; AACSB Communication) 115.

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116.

What was NOT a measure of success for the campaign for Altoids described in the chapter’s opening and closing vignette? a. increase in market share b. increase in brand recognition c. percentage of penetration in the under 12 year old market d. memorability of the campaign e. increase in sales (c; moderate; p. 444) What was the assignment given to Fallon Agency, as described in “A Matter of Practice,” by EDS, an information technology business. a. to change perceptions of EDS as an unhip Old Economy business and to infuse energy and pride into the EDS workforce b. to get business customers to switch IT services to EDS c. to increase awareness of EDS among consumers as research showed they have extremely low awareness among their target market d. to increase sales by 50 percent e. to increase switching from competitors’ services (a; moderate; p. 430) 118. Lisa writes original music and sometimes writes the lyrics along with the music for radio and television commercials. What is Lisa’s role in TV and radio production? a. producer b. director c. arranger d. composer e. talent (d; moderate; p. 437; LO3; AACSB Communication) 117.

119.

What was so unusual about the television commercial for Honda that was described in “A Matter of Principle”? a. The special effects depicted a Honda car putting itself together and driving away. b. The spot shows all the many parts of a car, each set up in a domino fashion, that fall together piece by piece ultimately creating a new Honda that drives away at the end, and it was filmed in real time without any special effects. c. The spot shows how few parts there really are to a Honda, illustrating the point that with fewer parts, there are fewer chances for problems. d. The clever use of animation was effective in not only drawing attention to the ad, but also in communicating the message in several countries without the limitations of language barriers. e. The ad contained absolutely no copy, which goes against the norm for automobile advertising. (b; moderate; p. 440)

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Why didn’t the ad for Honda, as described in “A Matter of Practice,” ever air as a commercial in the United States? a. It was filmed using a British model that isn’t sold in the United States b. It was a two-minute commercial, and the cost of running a commercial of such length in the United States is prohibitive. c. It did not test well in copy-tests in the United States. d. a and b e. a, b, and c (d; moderate; p. 440) 120.

121.

If the _______, designed to move about the site, is cluttered or unclear, website visitors will give up and move on to some other site. a. image b. product c. navigation d. pop-up e. video (c; difficult; p. 443; LO5; AACSB Use of IT) 122.

What was the technique that grades the quality of user experience on a Website described in the text called? a. heuristic evaluation b. navigational assessment c. blog tracking d. site tracking e. site evaluation (a; difficult; p. 442; LO5; AACSB Use of IT) 123.

As described in the text, which category of products or services came out best overall in grading the quality of user experience on a Website? a. automotive b. financial services c. entertainment d. retail e. personal ads (d; moderate; p. 442; LO5; AACSB Use of IT) According to the “Hands-On” case at the end of the chapter, what is NOT a benefit of filming commercials in HD? a. The cost to film in HD is 10 to 15 percent higher than regular film. b. Consumers like watching HD commercials. c. Consumers pay more attention to HD commercials. d. HD is cutting edge. e. Consumers are more likely to remember HD commercials. (a; moderate; p. 447) 124.

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According to the “Hands-On” case at the end of the chapter, why was October 29, 1998, a historic day for advertising? a. It was the first time that the cost of a 30-second ad during a prime time television program exceeded $1 million. b. Five live-action, rather than taped, commercials aired during the network coverage of John Glenn, the then 77-year-old former astronaut and senator who returned to space aboard the space shuttle. c. The first five TV commercials ever broadcast in high definition (HDTV) occurred that day. d. The percentage of households with HDTV-ready sets reached a threshold of 30 percent. e. All advertising commercials switched to HDTV format in the anticipation of the looming explosive growth the HDTV-ready television sets among consumers. (c; moderate; p. 447) 125.

As described in the “Hands-On” case at the end of the chapter, what challenge faces an advertiser told by its agency to film a commercial in high definition (HD)? a. Cost is an issue, because ads filmed in the format can cost 10 to 15 percent more than analog commercials. b. Even though the ads are of a much higher quality, consumers still avoid them. c. Fewer than 1 million homes have the equipment (i.e., HDTV sets and tuners) required to watch HDTV programming. d. There is no standardization with regard to HDTV programming. e. Consumers do not perceive HDTV advertisements any differently than they do current analog commercials. (a; moderate; p. 447) 126.

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE A television ad for Meridia, a prescription medication for the management of obesity, begins by showing a close-up of a cute, pudgy baby’s face while the copy says something to the effect that doctors have been concerned about your weight all your life. The baby’s face gradually turns into that of a woman who is attractive yet pudgy, obese actually, and the copy indicates that Meridia can help—just ask your doctor. Then the scene shifts, rather abruptly, to the name of the prescription medication.

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127.

Mini-Case Question. If the art director wanted to purchase a previously recorded image of a baby’s face rather than going through the process of casting and abiding by all the regulations when working with minors, what could he or she use? a. pre-shot footage b. open footage c. stock footage d. proprietary footage e. recycled footage (c; moderate; p. 434; LO4) 128.

Mini-Case Question. The technique in which the baby’s face gradually changes into a woman’s face is known as ___________. a. crawling b. image transfer c. morphing d. transformation e. conversion (c; moderate; p. 435; LO4) 129.

Mini-Case Question. What term describes the process in postproduction of this film when the various pieces of the film are assembled into the same sequence as the storyboard? a. morph b. crawl c. refocus d. video editing e. transition (d; moderate; p. 441) 130.

Mini-Case Question. The final version of this ad with the sound and film mixed together is call a(n) ___________. a. interlock b. answer print c. release print d. mixed print e. edited print (b; moderate; p. 441)

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APPLICATION QUESTIONS: SHORT-ANSWER 131.

Describe the challenge that was facing the creative team for the Altoids campaign described in the chapter’s opening vignette. Answer:

The challenge was to create advertising that would bring to life the intense flavor of this extreme mint. The challenge was to depict visually the impact of this flavor--- what it's like to suck on this miniature atom bomb--- and dramatize the brand slogan, "Curiously Strong Mints." (moderate; p. 417) 132.

John is designing a website for a client. What does he need to know about designing the navigation of the website to make it easy to use? Answer:

The navigation must be clear, easy to move through the site, find the information they want, and easy to respond. Problems to avoid are navigation that is cluttered or unclear. Regular users should be able to customize the site to fit their own interests and navigation patterns. (difficult; p. 443; LO5; AACSB Use of IT) 133.

Explain the success of the Altoids campaign described in the chapter’s opening and closing vignette. Answer:

The strong, consistent look strengthened by the continuing presence of the distinctive Altoids tin leads to good brand recognition. The campaign is one of the most awarded and successful campaigns in the last 12 years. The low-cost, edgy campaign has been a business builder. In 1995 the brand had no presence but by 2000 dominated the extreme mint market with a 25 percent share. In the 12 markets where the campaign was focused, Altoids enjoyed a 60 percent increase in sales, growing by 500 percent compared to markets without advertising. (moderate; p. 444)

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134.The Institute for Outdoor Advertising (IOA) recommends several tips for designers. Discuss five of them. Answer: Students can discuss any five of the following: (1) Graphics—Make the illustration an eye-stopper. (2) Size—Images in billboards are huge. The product or the brand label can be hundreds of times larger than life. (3) Colors—Use bold, bright colors. The greatest impact is created by maximum contrast between two colors such as dark colors against white or yellow. (4) Figure/Ground—Make the relationship between foreground and background as obvious as possible. The background should never compete with the subject. (5) Typography—Use a simple, clean, uncluttered type that is easy to read at a distance by an audience in motion. Avoid all capital letters, fanciful ornamental letters, and script and cursive letters. (6) Product Identification—Focus attention on the product by reproducing the label or package in a huge size. (7) Extensions—Extend the frame of the billboard to expand the scale and break away from the limits of the long rectangle. (8) Shape—For visual impact, create the illusion of three-dimensional effects by playing with horizons, vanishing lines, and dimensional boxes. (9) Motion—Add motors to boards to make pieces and parts move. Disklike wheels and glittery things that flicker in the wind create the appearance of motion, color change, and images that squeeze, wave, or pour. Use revolving panels, called kinetic boards, for messages that change. (moderate; pp. 431-432; LO3; AACSB Communication) 135.

A group of advertising majors from a local university are visiting your business to learn about art reproduction in advertisements. Explain the two general types of printed images and how they are reproduced in advertisements. Answer:

There are two general types of printed images: line art and halftone. A drawing or illustration is called line art because the image is solid lines on a white page. Photographs, referred to as continuous tone or halftone, are much more complicated to reproduce. They have a range of gray tones between black and white. Printers create the illusion of shades of gray by converting continuous-tone art and photos to halftones by shooting the original photograph through a fine screen. The screened image is converted to a pattern of dots that gives the illusion of shades of gray—dark areas are large dots that fill the screen and light areas are tiny dots surrounded by white space. The quality of the image depends on how fine the screen is. (difficult; p. 432; LO3; AACSB Communication)

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136.

A printer really needs only four colors to reproduce full-color images. Explain how this can be and describe the process used in four-color printing. Answer:

Full-color images are reproduced using four distinctive shades of ink called process colors, in a process called four-color printing. These colors are magenta (a shade of pinkish purple), cyan (a shade of bright blue), yellow, and black. Printing inks are transparent, so when one ink overlaps another, a third color is created and that’s how the full range of colors is created. The black is used for type and, in four-color printing, adds depth to the shadows and dark tones in an image. The process printers use to reduce the original color image to four halftone negatives is called color separation. (moderate; p. 433; LO3; AACSB Communication) 137.

You are developing a website for a client. In working with the web designer you find that he has a different toolkit than art directors for typical print ads. Why do the web designers use different tools? Answer:

Web designers work with animation effects, sophisticated navigation paths, streaming video. These requirements demand very different tools than an art director for a traditional print ad. (moderate; p. 442; LO5; AACSB Use of IT) 138.

Describe the campaign that the Fallon agency developed for EDS and the reasons behind it that were described in “A Matter of Practice.” Answer:

The assignment given to the Fallon agency was to change perceptions that EDS was an unhip Old Economy business and to infuse energy and pride into the EDS workforce. Fallon’s strategy was to leverage EDS’s proven experience and its rock-solid infrastructure, which enabled it to tackle enormous IT problems. The strategy came together in the positioning statement: “EDS thrives on defeating complexity.” To depict this positioning, Fallon used the metaphor “It’s like herding cats” to guide the campaign’s message. It filmed a team of rugged cowboys herding thousands of housecats. Not only did the campaign reposition the company, it gave EDS employees an inspiring image of themselves as wranglers in an epic undertaking, resulting in reduced employee turnover. (moderate; p. 430)

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139.

As part of an assignment in your radio, television, and film course, you have to interview people involved in the production of television commercials. Name and describe who does what in TV production. Answer: (1) (2)

Copywriter—Writes the script. Art Director—Develops the storyboard and establishes the look of the commercial. (3) Producer—Takes charge of the production, handles the bidding and all production arrangements, finds the specialists, arranges for casting talent, and makes sure the expenses and bids come in under budget. (4) Director—Has responsibility for the actual filming or taping, including scene length, who does what, how lines are spoken and the characters played, and determines how the camera is set up and records the flow of action. (5) Composer—Writes original music and sometime writes the lyrics along with the music. (6) Arranger—Orchestrates music for the various instruments and voices to make it fit a scene or copy line. The copywriter usually writes the lyrics or at least gives some idea of what the words should say. (7) Editor—Puts everything together toward the end of the filming or taping process; evaluates how to assemble scenes and which audio elements work best with the dialogue and footage. (moderate; pp. 436-437; LO4; AACSB Communication) 140.

A major television commercial production company is seeking summer interns. The jobs students would fill are called grip and script clerk. In which stage of the television production process will these roles be found, and what can you expect to do if you take either of these positions? Answer:

These roles are part of the production (the shoot) stage of the TV production process. The grip is a person who moves props and sets and lays tracks for the dolly on which the camera is mounted. The script clerk checks the dialogue and other script details and times the scenes. (difficult; p. 439; LO4; AACSB Communication)

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141.

Retailers' business success ties directly to the quality of customer experience on their sites. What are three problem areas retailers' should avoid when designing their websites? Answer:

Three problem areas retailers' should avoid when designing their websites are: (1) Customers can't find the product or complete the checkout process. (2) Inadequate product information (3) Confusing menus (4) Poor reliability. (5) Wipe—One image crawls across the screen and replaces another. (difficult; p. 442; LO5; AACSB Use of IT) 142.

Describe the Honda commercial discussed in “A Matter of Principle,” discuss why it was so unique, and explain why it did not appear in the United States. Answer:

It was a two-minute commercial that showed all the many parts of a car, each set up in a domino fashion, that fall together piece by piece ultimately creating a new Honda that drives away at the end. The commercial ends with an announcer asking, “Isn’t it nice when things just work?” The unique aspect of this commercial was that it was filmed real time without any special effects, which took 606 takes for the whole thing to work. Because it was filmed using a British model that isn’t sold in the United States and also because the cost of running a two-minute commercial would be prohibitive, the commercial was not shown in the United States, other than on news and feature shows and videos of award show winners. (moderate; p. 440) 143.

Michelle is designing banner ads for her client. How do banner ads compare to outdoor boards? Answer:

Banner ads are designed more like outdoor boards than conventional print ads because their small space puts intense requirements on the designer to make the ad communicate quickly and succinctly, and yet attract attention and curiosity to elicit a click-through response. (difficult; p. 441; LO5; AACSB Use of IT)

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144.

As described in the text the retail category came out best overall, and automotive sites were rated the worst when using a technique called “heuristic evaluation” to grade the quality of user experience of web sites. What explains these results? Answer:

One reason is that online retailers’ business success ties directly to the quality of customer experience on their sites. When customers can’t find a product or complete the checkout process, it shows up immediately in lost sales. This feedback loop drives retail site designers to quickly find and fix problems such as inadequate product information, confusing menus, and poor reliability. In contrast, managers of automotive sites struggle to even measure business results such as dealer leads that actually result in sales. When web traffic logs show car shoppers wandering their sites, it’s hard to tell whether the prospects are fascinated or just lost. (moderate; p. 442; LO5; AACSB Use of IT) 145.

As described in the “Hands-On” case at the end of the chapter, why was October 29, 1998, a historic day for advertising, and what issues have surfaced since that time? Answer:

On that date, network coverage of former astronaut and senator John Glenn’s return to space aboard the space shuttle included the first five TV commercials ever broadcast in high definition (HDTV). However, it probably went unnoticed by most viewers, because in 1998, HDTVs were still very rare in the United States. Even now, only about 10 million homes have HDTV sets, and only about 2 million of these have the tuners required to watch HDTV programming. A challenge facing an advertiser is cost, because ads filmed in the format can cost 10 to 15 percent more than analog commercials. Given the current low penetration of HDTV, it may strike some advertisers as an unnecessary expense. (moderate; p. 447)

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Kimberly is an art director at an advertising agency, and she is developing the print campaign for one of the agency’s clients. The client doesn’t have a large budget, so they would like to keep the costs of production as low as possible; this means that the creation of original art in their ads is not feasible. The desired look of the ads is formal, and the mood Kimberly wants to convey is calm, serene, reflective, and intellectual. She also wants the layouts to be formal because the product is financial services targeted to consumers 50+ years old.

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146.

Mini-Case Question. Because the client does not want to pay for original visuals to be included in their ads, how will Kimberly get the visuals she needs to get attention and to set the tone for the ads? Answer:

She can use clip art, which are image collections of copyright-free art that anyone who buys the clip-art service can use. (easy; p. 423) 147.

Mini-Case Question. What color or colors should Kimberly use to convey the mood she desires? Answer:

Cool colors, such as blue and green, are aloof, calm, serene, reflective, and intellectual. (moderate; p. 425) 148.

Mini-Case Question. Kimberly is considering using mostly copy in her ad since financial services is a complex topic and the market is interested in knowing detailed information. Describe the layout you would suggest. Answer:

The dominant type or all copy layout would serve Kimberly well. This layout emphasizes type and copy and any art is embedded in the copy or placed in a subordinate position, such as at the bottom of the layout. (moderate; p. 428) 149.

Mini-Case Question. Kimberly is considering using visuals of matched or proportional sizes. Name and describe the appropriate layout she should use. Answer:

The panel or grid layout can use a number of visuals of matched or proportional sizes. If there are multiple panels all of the same size, the layout can look like a window pane. (moderate; p. 428)

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150.

Mini-Case Question. Which design principle that guides designers is most appropriate for what Kimberly wants to do? Name and describe that principle. Answer:

The design principle of balance seems most applicable here. There are two types of balance: formal and informal. Formal balance is symmetrical, centered left to right. It is conservative, suggests stability, and is used in more upscale product ads. Informal balance is asymmetrical and creates a more visually dynamic layout, counterbalancing visual weights around an imaginary optical center. Based on the description in this case, formal balance seems to be what Kimberly is looking for. (moderate; p. 425)

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GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

___________ occurs when a seller and customers deal with each other directly rather than through an intermediary, such as a wholesaler or retailer. a. Integrated marketing b. Simplified marketing c. Basic marketing d. Direct marketing e. Effective marketing (d; easy; p. 453; LO1) 2.

Which of the following is a tool of direct marketing? a. catalogs b. direct mail c. telemarketing d. direct-response advertising e. all of the above (e; easy; p. 453 (Figure 15.1); LO1) 3.

What is the focus of most direct marketing communications? a. increasing awareness b. enhancing attitudes c. producing a sale d. gaining acceptance among several stakeholders e. encourage switching from a competitor’s product or service (c; moderate; p. 453; LO1; AACSB Communication) 4.

Why is direct marketing a growth area for marketing? a. effectiveness is easy to evaluate b. consumers are more accepting of it c. because response rates have increased dramatically in the past 10 years d. because consumers feel more confident in marketers’ concerns for their privacy e. all of the above (a; moderate; p. 458; LO1; AACSB Communication)

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Which of the following is an advantage of direct marketing over indirect marketing? a. flexibility in both form and timing b. purchase not restricted to a location c. marketer controls the product until delivery d. easier to evaluate e. all of the above (e; easy; p. 454; LO1; AACSB Communication) 6.

Which of the following is NOT an advantage of direct marketing over indirect marketing? a. reduced waste b. flexibility in both form and timing c. ability to reach everyone in the marketplace d. purchase not restricted to a location e. marketer controls the product until delivery (c; difficult; p. 454; LO1; AACSB Communication) 7.

Which of the following is a weakness of direct marketing? a. consumers are still reluctant to purchase a product sight unseen b. annoyances associated with direct marketing c. unable to reach everyone in the marketplace d. a and b e. a, b, and c (e; moderate; p. 454; LO1; AACSB Communication) 8.

The term or phrase that refers to the way that marketers identify prospective customers is ___________. a. prospecting b. lead generation c. hunting d. phishing e. customer identification (b; moderate; p. 456; LO1; AACSB Communication) 9.

___________ is a type of marketing communication that combines the characteristics of advertising but also includes an element that allows the audience to make a direct response to the advertiser. a. Direct-response advertising b. Direct-focus advertising c. Integrated marketing communications d. Direct-marketing advertising e. Direct-to-consumer advertising (a; easy; p. 454; LO1; AACSB Communication)

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10.

Which of the following is a contact element that can be included in a directresponse advertisement? a. toll-free phone number b. order coupon c. email address d. web site address e. all of the above (e; easy; p. 454; LO1; AACSB Use of IT) 11.

A toll-free phone number, an order coupon, a web site, or an e-mail address are examples of ________. a. steps in the direct marketing process b. direct marketing c. measures of effectiveness in direct marketing d. contact elements that can be included in a direct-response advertisement e. the offer in direct marketing (d; moderate; p. 454; LO1; AACSB Use of IT) 12.

What is the first step in the direct marketing process? a. setting objectives and making strategic decisions b. communication of the offer c. response, or customer ordering d. fulfillment e. relationship building (a; easy; p. 455 (Figure 15.2); LO1; AACSB Analytic Skills) 13.

What is the second step in the direct marketing process? a. setting objectives and making strategic decisions b. communication of the offer c. response, or customer ordering d. fulfillment e. relationship building (b; moderate; p. 455 (Figure 15.2); LO1; AACSB Analytic Skills) 14.

Which of the following is the last step in the direct marketing process? a. setting objectives and making strategic decisions b. communication of the offer c. response, or customer ordering d. fulfillment e. relationship building (e; moderate; p. 455 (Figure 15.2); LO1; AACSB Analytic Skills)

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15.

Which of the following is a basic objective of direct marketing? a. develop leads b. create sales c. traffic generation d. a and b e. a, b, and c (e; moderate; pp. 455-456; LO1; AACSB Analytic Skills) 16.

Which basic objective of direct marketing provides basic information on companies or individuals who are potential customers? a. develop leads b. traffic generation c. action d. enhancing awareness e. enhancing attitude (a; moderate; p. 455; LO1; AACSB Analytic Skills) 17.

Which basic objective of direct marketing attempts to motivate customers to visit an event or retail outlet? a. lead generation b. generate traffic c. action d. enhancing awareness e. enhancing attitude (b; moderate; p. 456; LO1; AACSB Analytic Skills) 18.

Which basic objective of direct marketing focuses on getting customers to order products and make payments or take some other action, such as visiting a dealer, returning a response card, or visiting a web site? a. lead generation b. traffic generation c. create sales d. enhancing awareness e. enhancing attitude (c; moderate; p. 455; LO1; AACSB Analytic Skills) 19.

________ is a technique of mining the information in databases to uncover prospective buyers whose characteristics match those of users. a. Skimming b. Searching c. Prospecting d. Relationship marketing e. Data mining (c; moderate; p. 456; LO1; AACSB Use of IT)

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20.

Which of the following is typically part of the offer in direct marketing? a. description of the product b. terms of sale c. payment information d. delivery information e. all of the above (e; easy; p. 456; LO1; AACSB Analytic Skills) 21.

Description of the product, terms of sale, and payment and delivery information are all part of the ________ in direct marketing. a. message b. media c. fulfillment d. offer e. all of the above (d; moderate; p. 456; LO1; AACSB Analytic Skills) 22.

Which of the following is NOT a variable that is intended to satisfy the needs of the consumer and considered part of the offer? a. response device b. price c. cost of shipping and handling d. guarantees and warranties e. future obligations (a; moderate; p. 456; LO1; AACSB Analytic Skills) 23.

Which of the following is a general guideline that applies to message development in direct marketing? a. message is often longer and contains more explanation and detail than regular advertising b. copy tends to be written in an impersonal, formal style c. message should NOT reflect if the offer is a one-step offer d. message should be very brief, usually less than 5 words e. message should NOT include the return policy (a; easy; p. 457; LO1; AACSB Analytic Skills) 24. Which of the following is NOT a general guideline that applies to message development in direct marketing? a. message is often longer and contains more explanation and detail than regular advertising b. copy tends to be written in a personal, one-to-one conversational style c. message should reflect whether the offer is a one-step offer of a two-step offer d. message must, by law, include return policy e. all of the above are general guidelines that apply to message development in direct marketing (d; moderate; p. 457; LO1; AACSB Analytic Skills)

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25.

Which type of offer asks for a direct sales response? a. direct offer b. indirect offer c. one-step offer d. two-step offer e. primary offer (c; moderate; p. 457; LO1; AACSB Analytic Skills) 26.

Which type of offer is designed to gather leads, answer consumer questions, visit a store, or set up appointments? a. direct offer b. indirect offer c. one-step offer d. two-step offer e. primary offer (d; moderate; p. 457; LO1; AACSB Analytic Skills 27.

During the _______ step of the direct-marketing process, the DM campaign must communicate benefits to buyers by answering the enduring question: "What's in it for me?" a. Objectives/Strategy b. Offer c. Response/Order d. Fulfillment e. Relationship Building (b; moderate; p. 456; LO1; AACSB Analytic Skills) 28.

During the ________ step in the direct marketing process the DM message must make it as easy as possible for customers to respond. ? a. Objectives/Strategy b. Offer c. Response/Order d. Fulfillment e. Relationship Building (c; moderate; p. 458; LO1; AACSB Analytic Skills) 29.

In direct marketing, getting the product to the customer who ordered it is known as ________. a. logistics b. distribution c. back-end activity d. fulfillment e. consummation (d; moderate; p. 455; LO1; AACSB Analytic Skills)

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30.

What do direct marketers use to keep track of customers, to identify prospective customers, and as a segmentation tool for communicating offers to customers and prospects? a. databases b. fulfillment c. one-step offers d. two-step offers e. consultants (a; moderate; p. 458; LO2; AACSB Use of IT) 31.

________ is a practice that uses databases to predict trends and monitor consumers to more effectively implement direct-marketing strategies. a. Integrated marketing b. Direct marketing c. Database marketing d. Behavior-based marketing e. Response marketing (c; easy; p. 459; LO2; AACSB Use of IT) 32.

Which of the following is NOT an objective of a marketing database? a. to record names of customers, expires, and prospects b. to provide a vehicle for storing and then measuring results of directresponse advertising c. to provide a vehicle for storing and then measuring purchasing information d. to provide a vehicle for continuing direct communication by mail or phone e. to record TV commercials (e; easy; p. 459; LO2; AACSB Use of IT) 33.

The database marketing process begins with an ________ that could include the completion of a warranty card, entering a contest or sweepstake, opting in on a Web site. a. data entry b. data clustering c. information collection point d. data assessment e. data sharing (c; moderate; p. 459; LO2; AACSB Use of IT

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34.

In a marketing database, expires means ________. a. the customer is dead b. the marketer no longer has permission to communicate with this customer c. names no longer valid d. the customer has not purchased from the marketer for more than 18 months e. the direct marketer can no longer communicate to this prospect because of the list agreement (c; difficult; p. 459; LO2; AACSB Use of IT) 35.

Where does the database marketing process begin? a. data entry b. data clustering c. information collection point d. data assessment e. data sharing (c; moderate; p. 459; LO2; AACSB Use of IT 36.

In which stage of the database marketing process is data entered into the computer to merge it with other information already in the file or added at the same time? a. first b. second c. fourth d. fifth e. seventh (b; difficult; p. 459; LO2; AACSB Use of IT) 37.

In which stage of the database marketing process can the direct marketer create clusters of characteristics and behaviors representing valuable consumer segments or target markets? a. first b. third c. fourth d. fifth e. seventh (c; difficult; p. 459; LO2; AACSB Use of IT) 38.

Which type of database contains information useful in segmenting as well as contact information? a. compiled databases b. relational databases c. customer databases d. response databases e. clustered databases (b; difficult; p. 460; LO2; AACSB Use of IT)

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39.

Direct marketers purchase or rent lists from ________. a. list brokers b. list managers c. list owners d. list retailers e. list distributors (a; moderate; p. 460; LO2) 40.

Combining lists is known as ________. a. purging b. merging c. database marketing d. sourcing e. consolidating (b; moderate; p. 460; LO2) 41.

Deleting the repeated names on lists that have been combined is known as ________. a. purging b. merging c. elimination d. parsing e. consolidating (a; moderate; p. 460; LO2) 42.

Combining lists is called ________, and deleting the repeated names is called ________. a. consolidating; elimination b. purging; merging c. elimination; consolidating d. merging; purging e. compiling; parsing (d; moderate; p. 460; LO2) 43.

Which of the following is a type of list used in direct marketing? a. house list b. compiled list c. response list d. a and b e. a, b, and c (e; moderate; pp. 460-461; LO2)

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44.

Which of the following is NOT a type of list? a. data list b. house list c. compiled list d. response list e. All of the above are types of lists. (a; difficult; pp. 460-461; LO2) 45.

Which type of list consists of the marketer’s own customers or members? a. data list b. house list c. compiled list d. response list e. prospect list (b; moderate; pp. 460-461; LO2) 46.

Which type of list is the most valuable list to a marketer? a. data list b. house list c. compiled list d. response list e. prospect list (b; moderate; pp. 460-461; LO2) 47.

Which type of list is derived from people who respond to something such as a direct-mail offer or solicitation? a. data list b. house list c. compiled list d. response list e. prospect list (d; moderate; p. 461; LO2) 48.

Which type of list is rented from a direct-mail list broker and is usually a list of some specific category, such as sports car owners, new homebuyers, graduating seniors, or subscribers to a magazine? a. data list b. house list c. compiled list d. response list e. prospect list (c; moderate; p. 461; LO2)

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49.

What is a concern regarding data-driven communications? a. lack of hardware to take advantage of its benefits b. lack of software to take advantage of its benefits c. lack of processes to take advantage of its benefits d. consumer privacy e. cost (d; moderate; p. 466; LO4) 50.

Which process identifies and analyzes patterns in customer behavior to maximize the profitability of each relationship? a. integrated marketing communications b. customer relationship management c. database direct marketing d. direct marketing e. contact marketing (b; moderate; p. 463; LO2; AACSB Use of IT) 51.

What does CRM stand for? a. customer retention marketing b. customer relationship management c. customer retention management d. continuity, retention, and monetary value, which are measures of direct marketing success e. customer relationship marketing (b; moderate; p. 463; LO2; AACSB Use of IT) 52.

Which of the following is a key player in direct-response marketing? a. advertisers who use direct response to sell products or services b. agencies that specialize in direct-response advertising c. media that deliver messages by phone, mail, or the web d. consumers, who are the recipients of the information and sometimes initiators of the contract e. all of the above (e; easy; p. 463; LO3; AACSB Analytic Skills) 53.

Which of the following is NOT a main player in direct-response marketing? a. advertisers who use direct response to sell products or services b. agencies that specialize in direct-response advertising c. media that deliver messages by phone, mail, or the web d. consumers, who are the recipients of the information and sometimes initiators of the contract e. federal and state governments, which monitor who is contacted and how personal information is safeguarded (e; moderate; p. 463; LO3; AACSB Analytic Skills)

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54.

Which of the following is NOT a type of agency involved in direct marketing? a. advertising agencies b. independent direct marketing agencies c. service firms d. U.S. Postal Service e. fulfillment houses (d; difficult; p. 464; LO3) 55.

Service firms in direct marketing specialize in ________. a. printing b. mailing c. list brokering d. a and b e. a, b, and c (e; moderate; p. 464; LO3; AACSB Analytic Skills) 56.

Which type of agency is responsible for making sure consumers receive whatever they request in a timely manner, be it a catalog, additional information, or the product itself? a. advertising agencies b. independent agencies c. service firms d. fulfillment houses e. U.S. Postal Service (d; moderate; p. 464; LO3) 57.

Which of the following is an advantage of direct mail? a. positive perceptions b. low cost per thousand c. reaches the unreachable d. high response rates e. all of the above (c; moderate; p. 466; LO3; AACSB Communication) 58.

Which of the following is NOT an advantage of direct mail? a. tells a story b. builds in feedback c. personalizes the message d. reaches the unreachable e. low cost per thousand (e; moderate; p. 466; LO4; AACSB Communication)

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59.

Which of the following is a disadvantage of direct mail? a. negative perceptions b. cannot reach audiences who are inaccessible by other media c. cannot personalize the message d. consumer avoidance e. must sell the product in the first two lines because most audiences will not read beyond that point (a; moderate; p. 466; LO4; AACSB Communication) 60.

A ________ is a multipage direct-mail publication that shows a variety of merchandise. a. letter b. brochure c. broadsheet d. self-mailer e. catalog (e; easy; p. 468; LO4) 61.

Delivering ads through phone calls is known as ________. a. phone marketing b. telemarketing c. one-to-one marketing d. predictive marketing e. inbound telemarketing (b; easy; p. 469; LO4) 62.

Rooms with large banks of phones and computers where workers send and receive calls are known as ________. a. call centers b. telephone pits c. phone centers d. call floors e. call pits (a; moderate; p. 469; LO4) 63.

Which of the following are the two types of telemarketing? a. opt-in and opt-out b. toll and toll-free c. internal and external d. business and consumer e. inbound and outbound (e; moderate; p. 470; LO4)

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64.

In which type of telemarketing does the call originate with the customer? a. opt-in b. opt-out c. external d. inbound e. outbound (d; moderate; p. 470; LO4) 65.

In which type of telemarketing does the call originate with the marketer? a. opt-in b. opt-out c. external d. inbound e. outbound (e; moderate; p. 470; LO4) 66.

Which of the following is a disadvantage of catalogs? a. high response rates b. low cost per thousand c. targeted d. positive perceptions e. all of the above (c; moderate; p. 469; LO4; AACSB Analytic Skills) 67.

What type of response cards are attached to the magazine after it is printed by special machinery that puffs open the pages? a. bind-ins b. puff-ins c. blow-ins d. tie-ins e. supplements (c; moderate; p. 471; LO4) 68.

A direct-response ad on television that is typically 30 or 60 minutes long and tends to be played during non–prime time periods is known as a(n) ________. a. infomercial b. direct-response program c. promotional program d. direct-response spot e. home shopping network (a; easy; p. 472; LO4; AACSB Communication)

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69.

Fraudulently using a company’s identity to send out spam is known as ________. a. copy-cat advertising b. vampire advertising c. zipping d. zapping e. spoofing (e; moderate; p. 473; LO4; Use of IT) 70.

The financial contribution through sales volume of an individual customer or customer segment over a length of time is known as ________. a. return on investment b. lifetime customer value c. customer contribution d. customer loyalty e. customer relationship assessment (b; moderate; p. 476; AACSB Analytic Skills)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71. Direct marketing is a growth area because it is easy to evaluate its effectiveness. (True; moderate; p. 453; LO1; AACSB Communication) 72.

One advantage of direct marketing is that it affords flexibility in both form and timing. (True; moderate; p. 454; LO1; AACSB Communication) 73. One disadvantage of direct marketing is too many catalogs and junk mail. (True; moderate; p. 454; LO1; AACSB Communication) 74.

Three basic objectives of direct marketing are lead generation, traffic generation, and maximize profits. (False; moderate; p. 455; LO1; AACSB Communication) 75.

Cloning is a technique of mining the information in databases to uncover prospective buyers whose characteristics match those of users. (False; moderate; p. 456; LO1; AACSB Use IT) 76. Only the product or service is considered part of the offer in direct marketing. (False; moderate; p. 456; LO1; AACSB Communication) 77.

A two-step offer is designed to sell consumers a lower-priced item before offering them a higher-priced, and more profitable, offer. (False; moderate; p. 457; LO1; AACSB Communication)

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78.

In direct marketing, logistics is the function that gets the product to the customer who ordered it. (False; moderate; p. 458; LO1; AACSB Analytic Skills) 79.

Because direct-marketing messages are constantly being measured, it is easier to learn what works and modify succeeding campaigns based on results than with advertising. (True; easy; p. 458; LO1; AACSB Analytic Skills) 80. The database marketing process begins with a sale. (False; difficult; p. 459; LO2; AACSB Use of IT) 81.

Combining direct-mail lists is called merging, and deleting the repeat names is called purging. (True; moderate; p. 460; LO2; AACSB Use of IT) 82. The three types of lists are house lists, response lists, and directory lists. (False; moderate; pp. 460-461; LO2; AACSB Use of IT) 83.

Customer relationship management (CRM) identifies and analyzes patterns in customer behavior to maximize the profitability of each relationship. (True; moderate; p. 463; LO2) 84.

The four main players in direct-response marketing are the advertisers, agencies, the media, and the government. (False; moderate; p. 463; LO3; AACSB Use of IT) 85.

In direct marketing, service firms are agencies that specialize in supplying printing and mailing, and list brokering. (True; moderate; p. 464; LO2; AACSB Analytic Skills) 86. Advertising agencies do not play a role in direct-response marketing. (False; moderate; p. 464; LO2; AACSB Analytic Skills) 87.

A business responsible for making sure consumers receive whatever they requested in a timely manner in direct-response marketing is known as a service firm. (False; moderate; p. 464; LO3) 88.

A direct-mail piece is a print advertising message for a product or service that is delivered by mail. (True; easy; p. 465; LO4; AACSB Communication) 89.

One of the primary advantages of direct mail is the low cost per thousand compared to mass media. (False; moderate; p. 465; LO4; AACSB Analytic Skills)

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90. The average response rate for a direct mail offer is 10 percent. (False; difficult; p. 465; LO4; AACSB Analytic Skills) 91.

A broadsheet is a multipage direct-mail publication that shows a variety of merchandise. (False; moderate; p. 468; LO4; AACSB Analytic Skills) 92.

More direct-marketing dollars are spent on telemarketing than on any other medium. (True; difficult; p. 469; LO4; AACSB Analytic Skills) 93.

Outbound telemarketing means the call center staff are calling unqualified numbers, sometimes just randomly selected, and this practice has a much lower response rate. (False; difficult; p. 470; LO4; AACSB Analytic Skills) 94.

Outbound telemarketing calls are the ones that generate the most consumer resistance. (True; moderate; p. 470; LO4; AACSB Analytic Skills) 95.

Cold call dialing techniques make it possible for telemarketing companies to call anyone—even those with unlisted numbers. (False; difficult; p. 470; LO4; AACSB Analytic Skills) 96. Every state in the United States has a “do-not-call” list. (False; moderate; p. 470; LO4; AACSB Analytic Skills) 97. In newspapers, response cards may be either bind-ins or blow-ins. (False; moderate; p. 471; LO4; AACSB Analytic Skills) 98. Radio is not an appropriate medium for direct-response advertising. (False; moderate; p. 471; LO4; AACSB Analytic Skills) 99.

One limitation of infomercials is that they cannot easily be introduced into foreign markets. (False; moderate; p. 472; LO4; AACSB Communication) 100. Direct marketing is the model for e-commerce. (True; moderate; p. 472; LO4; AACSB Use of IT) 101.

The use of e-mail as a marketing tool has really only been used by the usual ecommerce companies, such as Amazon.com. (False; moderate; p. 473; LO4; AACSB Use of IT)

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102. Unwanted e-mail is known as spam. (True; easy; p. 473; LO4; AACSB Use of IT) 103.

Permission marketing gives customers an opportunity to opt-out of a notification service from a company. (True; moderate; p. 473; LO4; AACSB Ethical Reasoning) 104.

Lifetime customer value is an estimate of how much purchase volume companies can expect to get over time from various target markets. (True; moderate; p. 476; AACSB Analytic Skills) 105.

In some foreign countries, government regulations of the postal service place limitations on the use of direct mail. (True; moderate; p. 476; AACSB Multicultural and Diversity) GENERAL CONTENT: ESSAY QUESTIONS 106.

Discuss the advantages and disadvantages of direct marketing. Answer: Advantages of direct marketing: (1) Direct marketing messages can be personalized which makes them more persuasive than mass media messages. (2) Direct marketing results are measurable so the return on investment (ROI) is easily known. (3) Direct marketing technology allows for the collection of relevant information about the customer contributing to the development of a useful database and selective reach, which reduces waste. (4) Products have added value through the convenient purchase process and reliable, quick delivery mechanisms of direct marketing. Purchase is not restricted to a location. (5) The marketer (rather than the wholesaler or retailer) controls the product until delivery. (6) Advertising carrying direct-marketing components is easier to evaluate. (7) It affords flexibility in both form and timing.

Disadvantages of direct marketing: (1) Consumers are still reluctant to purchase a product sight unseen. (2) There are annoyances associated with direct marketing, such as too many catalogs, junk mail, and calls during dinner. (3) There are serious problems with customer privacy and data sharing and identity theft. (4) Direct marketing is more attuned to sales than creating long-term brand image. (moderate; p. 454; LO1; AACSB Reflective Thinking)

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107.

Name and describe the five basic steps in direct marketing. Answer:

The steps in direct marketing are: (1) Setting Objectives and Making Strategic Decisions—The three primary objectives are lead generation, traffic generation, and action. (2) Offer—Typically consists of a description of the product, terms of sale, and payment and delivery information. An effective offer clearly calls on the buyer to take some action. Some other variables included are the price, the cost of shipping and handling, optional features, future obligations, availability of credit, extra incentives, time and quality limits, and guarantees or warranties. (3) Response/Order—All direct marketing aims to generate a behavioral response, especially sales. (4) Fulfillment and Customer Maintenance—Getting the product to the customer who ordered it. Fulfillment includes all the back-end activities that the company’s infrastructure is designed to make easy for the customer to respond to. (5) Maintenance of the Company’s Database and Customer Service (Relationship Building)—Evaluate the success of the campaign. (moderate; pp. 455–458; LO1; AACSB Reflective Thinking) 108.

Name and describe the seven stages of the database marketing process. Answer:

Stages in the database marketing process: (1) Collection Point—Initial information-collection point, and it could be the completion of a warranty card, entering a contest or sweepstake, opting in on a web site, or filling out a card at a trade show, to name a few. (2) Data Entry—Enter data into the computer to merge it with other information already in the file or added at the same time. (3) Data Assessment—Assess the data and determine the relevant level of detail. (4) Data Clustering—Create clusters of characteristics and behaviors representing valuable consumer segments or target markets (audiences). (5) Data Application—Apply the database to specific marketing problems or strategies. (6) Data Sharing—Make decisions about data sharing and partnerships, such as with retail outlets. (7) Data Refinement—Includes corrections, updates, additions, and deletions—Information that is fed back into the planning process. (difficult; pp. 459–460; LO2; AACSB Use of IT)

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109.

Name and define the three types of lists. Answer:

There are three types of lists: (1) House List—A list of the marketer’s own customers or members, its most important target market, and probably its most valuable list. (2) Response List—Derived from people who respond to something such as a direct-mail offer or solicitation. It is similar to the advertiser’s target audience. Such lists are usually available for rent from the original directmail marketer, and those on the list indicate a willingness to buy by direct mail. (3) Compiled List—Rented from a direct-mail list broker. It is usually a list of some specific category, such as sports car owners, new homebuyers, graduating seniors, association members, or subscribers to a magazine, book club, or record club. (easy; pp. 460-461; LO2; AACSB Reflective Thinking) 110.

Name and describe the four types of agencies involved in direct-response advertising. Answer:

There are four types of agencies in direct marketing: (1) Advertising Agencies—Agencies whose main business is mass-media advertising either have a department that specializes in direct response or own a separate direct-response company. (2) Independent Agencies—Independent, full-service direct-marketing agencies specializing in direct response. (3) Service Firms—Firms that specialize in supplying printing and mailing, and list brokering. (4) Fulfillment Houses—Businesses responsible for making sure consumers receive whatever they request in a timely manner, be it a catalog, additional information, or the product itself. (moderate; p. 464; LO3; AACSB Reflective Thinking)

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APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

MMT, Inc., a pharmaceutical company, considered using direct marketing. An important need the company had was to respond to the customers' responses by getting the product to the customers who ordered it. What step in the direct marketing process is MMT concerned about? a. Objectives b. The Offer c. Targeting d. Fulfillment e. Message Strategy (d; moderate; p.458; LO1; Reflective Thinking) What challenge did the GEICO campaign as described in the chapter’s opening vignette? a. to change GEICO'S image from the number one direct-response auto insurer b. to generate inquiries for rate quotes and to motivate people to call or go online to find out how they can save money c. to increase sagging sales d. to gain acceptance in foreign countries e. to reach out to young women and convince them they want home insurance from GEICO (b; moderate; p. 451) 112.

113.

Theo is implementing the direct marketing process in his business. Currently, he is conducting marketing research, segmenting and targeting markets, and setting objectives. Which step in the direct marketing process is he implementing? a. Step 1 b. Step 2 c. Step 3 d. Step 4 e. Step 5 (a; moderate; p. 455; LO4; AACSB Reflective Thinking) 114.

Procter & Gamble has developed and purchased huge databases and has more than 30 million consumers in their current database. P&G routinely mines the information in the database to uncover potential buyers whose characteristics match those of their current customers for a given product and brand. What technique is P&G using? a. skimming b. searching c. prospecting d. relationship marketing e. data mining (c; moderate; p. 456; LO1; AACSB Use of IT)

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115.

Scott is developing the offer in a direct marketing campaign. What should he include? a. description of the product b. terms of sale c. payment and delivery information d. other information such as price, optional features, future obligations, etc. e. all of the above (e; easy; p. 456; LO1; AACSB Reflective Thinking) 116.

Josh is a broker who sells retirement investments to individuals. He uses direct marketing, but he uses it primarily to get customers to inquire for more information and set up an appointment to discuss investment options with him. That is, he doesn’t use direct marketing to create a sale directly. Which type of offer is this? a. one-step b. two-step c. primary d. secondary e. indirect (b; moderate; p. 457; LO1; AACSB Reflective Thinking) 117.

Alvin wants to develop database marketing capabilities for his business, but he doesn’t even know where to begin. Which of the following is the first stage of the database marketing process? a. get to know your customers by name b. collect information c. enter data d. assess data e. cluster data (b; moderate; p. 459; LO2; AACSB Use of IT) 118.

The Pampered Soul is a new women’s shoe store in Birmingham, Alabama, and the owners want to target women between the ages of 30 and 45 with a household income greater than $50,000 with a special promotion. They have purchased two mailing lists: one with demographic information for their retail area and one with psychographic information. They want one list that combines both types of information, but they don’t want to mail someone twice. What should they do? a. purge, then merge the lists b. merge, then defile the lists c. merge, then purge the lists d. purge, the defile the lists e. combine the two lists and then visually scan them to remove duplicates (c; moderate; p. 460; LO2; AACSB Use of IT)

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119.

Laurie is a college professor who teaches a course in direct marketing. She is a member of the Direct Marketing Association (DMA), which is a trade association for businesses in the direct marketing industry, because she finds it useful for attaining information for her course. However, she receives direct mail offers, emails, and telemarketing calls that are also sent to the other, practitioner, members of the DMA. What type of list is Laurie’s name on? a. house list b. response list c. compiled list d. professional list e. business list (c; moderate; p. 461; LO2; AACSB Use of IT) 120.

Anthony working on an account interested in direct marketing targeting men who own sports cars. Anthony needs a _______ list? a. marketing b. house c. response d. satisfaction e. compiled (e; moderate; p. 461; LO2) 121.

Knight-Abbey Commercial Printers and Direct Mailers is a large commercial printer in the southeastern United States. They develop, print, and prepare for mailing direct mail pieces for several businesses. One of their largest customers is Beau Rivage casino in Gulfport, Mississippi, and they personalize and print eight variations of a direct mail offer to customers. In terms of the types of firms in direct-response advertising, which type is Knight-Abbey? a. advertising agency b. independent agency c. service firm d. fulfillment house e. print brokerage (c; moderate; p. 464; LO3) As described in “The Inside Story,” what was the objective for the direct mail campaign developed for Texins-Activity Centers? a. encouraging activity and changing the targets' health and wellness habits b. reach high school girls with a message that the T-I Centers are the place to be c. reach high school boys whose parents are members of other fitness centers d. pull members of other fitness centers away from their current fitness centers e. encourage families with household incomes greater than $500,000 to become members of Texins-Activity Centers (a; moderate; p. 467) 122.

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123.

Which of the following is NOT a part of a helpful guide for creating effective direct mail? a. Get the attention of the targeted prospect as the envelope comes from the mailbox. b. Use the word free as often as possible. c. Provide critical information about product use. d. Use an incentive to encourage a fast response. e. Inspire confidence, minimize risk, and establish that the company is reputable. (b; moderate; p. 466; LO4; AACSB Reflective Thinking) 124.

Sandy likes to read magazines while she works out on the elliptical machine at her health club. However, she hates the cards that fall out when she turns the pages, so the first thing she does when she gets a magazine is shake all those out into the trash. What are those cards called? a. bind-ins b. puff-ins c. blow-ins d. tie-ins e. supplements (c; moderate; p. 471; LO4; AACSB Analytic Skills) 125.

As described in the opening vignette who is the leading direct-response auto insurer? a. GEICO b. Allstate c. State Farm d. USAA e. Shelter (a; moderate; p. 451) As described in the “Hands-On” case at the end of the chapter, what is the purpose of the Federal Do-Not-Call Registry? a. to make businesses using telemarketing register all the numbers that they call b. to allow consumers to receive telemarketing calls only from marketers that they want to call them c. to stop telemarketers from calling cell phone numbers because consumers must pay for those calls d. to allow consumers to “opt-out” of telemarketing calls e. to stop telemarketers from calling people at work (d; moderate; p. 479) 126.

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APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that give consumers information about their products. The headline says “Serious Sun Protection” surprinted over a man and a woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, their clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says “For a FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions: 1-800882-7860.” The ad also provides a web address. 127.

Mini-Case Question. Which of the following best describes the type of advertising this print ad illustrates? a. retail advertising b. national advertising c. directory advertising d. direct-response advertising e. direct-to-consumer advertising (d; moderate; p. 454) 128.

Mini-Case Question. Which of the three primary direct marketing objectives does this ad illustrate? a. lead generation b. traffic generation c. action d. increase awareness e. enhance attitudes (c; moderate; p. 454; LO1; AACSB Communication) 129.

Mini-Case Question. What type of offer does this ad represent? a. one-step b. two-step c. primary d. secondary e. indirect (b; moderate; p. 457; LO1; AACSB Communication) 130.

Mini-Case Question. Once a consumer calls the phone number or visits the web site, he or she can purchase products by phone, mail, or the Internet. Which step of the direct marketing process gets the product to the customer who ordered it? a. objectives/strategy b. the offer c. response/order d. fulfillment e. relationship building (d; moderate; p. 458; LO1; AACSB Communication)

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APPLICATION QUESTIONS: SHORT-ANSWER 131.

What marketing challenge faced the GEICO campaign as described in the chapter’s opening vignette? Answer:

The marketing challenge for the GEICO campaign was to generate inquiries for rate quotes and to motivate people to call or go online to find out how they can save money. (moderate; p. 451) 132.

Identify the four primary tools of direct marketing. Answer:

The four strategic tools of direct marketing are: catalogs, direct mail, telemarketing, Web-based e-marketing and direct-response advertising. (moderate; p. 465; LO4; AACSB Communication) 133.

After graduation, you plan on working in your family’s business and want to implement some of the direct marketing principles that you learned in this class. Identify the six basic objectives of direct marketing to convince your parents that it is the right move for the business. Answer:

Direct marketing has three primary objectives: (1) Provide product information (2) Create sales (3) Retain and strengthen customer relationships (4) Develop Leads (5) Generate Traffic (6) Test Offers (moderate; pp. 455-456; LO3)

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134.

You are developing the offer for a direct marketing campaign. Explain what is included in the “offer.” Answer:

The offer consists of a description of the product, terms of sale, and payment and delivery information. All the variables that are intended to satisfy the needs of the consumer are considered part of the offer. These variables include the price, the cost of shipping and handling, optional features, future obligations, availability of credit, extra incentives, time and quality limits, and guarantees or warranties. (moderate; p. 456; LO1; AACSB Reflective Thinking) 135.

Your job at work is to develop and execute direct marketing campaigns. Direct marketers conduct a lot of testing before launching a big campaign. Explain how direct marketing professionals are able to continually evaluate and accurately measure the effectiveness of various offers in a single campaign. Answer:

By employing such measurement tools as tracking printed codes on mail-in responses that identify different offers, and using different telephone numbers for each commercial (by time slot, station, or length), the DM professional can clearly identify those offers that yield the best results and modify the campaign to take advantage of them. (moderate; p. 458; LO1; AACSB Reflective Thinking) 136.

Many companies have developed databases and have begun database marketing. Explain what this means. Answer: Database marketing is a practice that uses databases to predict trends and monitor consumers to more effectively implement direct marketing strategies. (moderate; p. 458; LO2; AACSB Reflective Thinking)

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137.

Identify the primary objectives of a marketing database. Answer: (1)

To record names of customers, expires (names no longer valid), and prospects (2) To provide a vehicle for storing and then measuring results of advertising (usually direct-response advertising) (3) To provide a vehicle for storing and then measuring purchasing performance (4) To provide a vehicle for continuing direct communication by mail or phone (moderate; p. 459; LO2; AACSB Reflective Thinking) 138.

Jack, a successful businessman, is annoyed by the barrage of junk mail from credit card companies. What would you recommend that Jack do to reduce the credit card solicitations he receives? Answer:

To get off credit card solicitation lists, Jack should call 888-5-OPT-OUT. A recorded message will ask for his contact information, but that's just confirmation. This service already has his contact information; providing it by phone confirms his identity so his request can by processed. (difficult; p. 461; LO2; AACSB Reflective Thinking) 139.

Some advertising students are visiting your agency on a field trip and have asked you to provide some guidance on creating effective direct mail. Give them five of the ideas that were given in the text. Answer:

Students can answer any five of the following: (1) Get the attention of the targeted prospect as the envelope comes from the mailbox (2) Create a need for the product, show what it looks like, and demonstrate how it is used (3) Answer questions, as a good salesperson does, and reassure the buyer (4) Provide critical information about product use (5) Inspire confidence, minimize risk, and establish that the company is reputable (6) Make the sale by explaining how to buy, how to order, where to call, and how to pay for the purchase (7) Use an incentive to encourage a fast response (difficult; p. 466; LO4)

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140.

Converges is a nationwide call center operator and has several call centers in college towns. They are recruiting on campus, and your roommate is interested because the pay is pretty good and the hours are flexible. However, she doesn’t know much about telemarketing, except that people don’t really like it, so she asked you about it because you are taking this class. Briefly describe the two types of telemarketing. Answer:

There are two types of telemarketing: inbound and outbound. An inbound or incoming telemarketing call originates with the customer. The consumer can be responding to an ad or a telemarketing message received earlier. Calls originating with the firm are outgoing; these outbound telemarketing calls are the ones that generate the most consumer resistance. (easy; p. 470; LO4; AACSB Reflective Thinking) 141.

Barbara is the owner of a gift shop and is considering developing a catalog to increase her sales. Although there are several advantages of using catalogs, there are also some disadvantages. Discuss the disadvantages of catalogs that Barbara needs to be aware of. Answer:

There are several disadvantages of catalogs: (1) Negative Perceptions—Catalogs are viewed as junk mail by many recipients. (2) Costs—The cost per thousand of catalogs is higher than mass media. (3) Response Rate—The response is relatively low at 3 to 4 percent. (4) Mailing List—Databases must be constantly maintained. (moderate; p. 469 [Table 15.2]; AACSB Reflective Thinking)

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142.

We all love to make fun of infomercials, but the fact remains that they have been around since the emergence of the cable industry in the 1980s and have become a multibillion-dollar industry. Explain what an infomercial is and why, today, it is viewed as a viable medium. Answer:

An infomercial is a direct-response commercial and is typically 30 or 60 minutes long and tends to be played during non–prime time periods. Today, the infomercial is viewed as a viable medium because: (1) Consumers now have confidence in infomercials and the products they sell. (2) With the involvement of upscale advertisers, the quality of infomercial production and supportive research has improved. (3) Consumers can be better segmented and infomercials are coordinated with respect to these audiences. (4) Infomercials can easily be introduced into foreign markets. (difficult; p. 472; LO4; AACSB Reflective Thinking) 143.

As described in opening vignette, the leading direct-response auto insurer in a low-involvement category dominated by major brands was successful in overcoming consumer inertia, driving customers to their phones and the Internet and attained the highest level of inquiries in company history. Describe the campaign that produced these results. Answer:

The advertising used humor to stand out from the pack, particularly in the use of its unique brand character, the little green GEICO gecko. The Gecko tells truths about the human condition in goofy ways. The spokes-creature is up-front about his job is to sell GEICO and he communicates with the skeptical audience. Since the market is so broad GEICO introduced the indignant caveman to appeal to other audiences while sharing the humorous tone. (moderate; pp. 451-452)

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144.

Although e-mail marketing is a very cost-effective way to reach millions of consumers, many people view it negatively and call it spam. Explain what spam is, and how can legitimate direct marketers respond to the criticisms surrounding e-mail marketing. Answer:

Spam is the term used for unwanted e-mail, or junk e-mail. Legitimate direct marketers have responded in two ways. For one, companies now search their rich databases for customers’ buying habits or recent purchases. They then send these customers e-mail that offers deals on related products and connect it to their customer’s previous interactions with the company. A second approach, called permission marketing, is also being used to reduce criticism about spam. Permission marketing gives customers an opportunity to opt-in to a notification service from a company. The e-mail will ask if the recipient wants further e-mails and wants to be on the mailing list. Permission marketing also gives customers an opportunity to opt-out of the service when they no longer need a company’s products or services. They can sometimes even opt-down by reducing how frequently they receive messages. (moderate; p. 473; LO4) 145.

Some companies have large databases and have examined them to determine who their best customers are. Banks, in particular, have analyzed customer data and have learned that the top 5 percent of their customers are very profitable for the bank and the bottom 5 percent are very unprofitable. Name and describe the concept that many marketers are using to assess the value of customer loyalty. Answer:

Lifetime customer value (LCV) is an estimate of how much purchase volume companies can expect to get over time from various target markets. LCV is the financial contribution through sales volume of an individual customer or customer segment over a length of time. The calculation is based on known consumption habits plus future consumption expectations. The estimate of the contribution is defined as return on investment—that is, revenue gains as a function of marketing costs. (moderate; p. 476; AACSB Use of IT)

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APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Proactive Solution is a skincare system to help those with acne. Proactive originally started out as being sold only through direct marketing, and the consumer had to enroll in membership in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and their product is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order. 146.

Mini-Case Question. Name and describe the type of advertising that Proactive Solution uses to promote and sell its product. Answer:

This is direct-response advertising, which is a type of marketing communication that combines the characteristics of advertising (attention-getting visuals, interesting copy, and relevant timing) but also includes an element that allows the reader, viewer, or listener to make a direct response to the advertiser. The contact element can be a toll-free phone number, an order coupon, a request-forinformation device, or a web site or e-mail address. (easy; p. 454; LO1; AACSB Communication) 147.

Mini-Case Question. The infomercials and print ads allow consumers to purchase directly from the ad itself. There is a mail-in coupon order form, a toll-free phone number, and a web address given in the print ad that states, “Call Now!” Some infomercials even state that “calls received within the next 30 minutes will receive ‘2 Free Bonuses’ when ordering.” Name and describe the type of offer this is, and explain how it is different from the other type of offer. Answer:

The two types of offers are one-step and two-step. This is an example of a onestep offer because it asks for a direct sales response; it is crucial that there is a mechanism for responding to the offer. A two-step offer is designed to gather leads, answer consumer questions, get them to visit a store or set up appointments. (moderate; p. 457; LO1; AACSB Communication)

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148.

Mini-Case Question. What do you think Proactive Solution uses to track consumer purchases? How can they use this to restart customers who have joined the club but later quit? Answer:

Databases can be used to keep track of customers and identify prospective customers. Data are collected based on the customer’s behavior and interaction with the company. The information gathered through customer interaction feeds back into the process and becomes an input for the next round of communication efforts. Thus, knowledge of recent customer losses would generate different messages being sent as compared to those being sent to current customers. (moderate; p. 458; LO1; AACSB Use of IT) 149.

Mini-Case Question. Name and describe the three types of lists and explain which one is the most important to Proactive. Answer:

There are three types of lists: (1) House List—A list of the marketer’s own customers or members, its most important target market. This is the most valuable list to Proactive. (2) Response List—Derived from people who respond to something such as a direct-mail offer or solicitation. It is similar to the advertiser’s target audience. Such lists are usually available for rent from the original directmail marketer, and those on the list indicate a willingness to buy by direct mail. (3) Compiled List—Rented from a direct-mail list broker. It is usually a list of some specific category, such as sports car owners, new homebuyers, graduating seniors, association members, or subscribers to a magazine, book club, or record club. (easy; pp. 460-461; LO2)

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150.

Mini-Case Question. Jill is a member of the Proactive Solution Clear Skin Club, and she received a telephone sales call trying to get her to purchase Proactive make-up, too. Jill registered her phone number with the National Do-Not-Call List and is upset that she received this call. Can Proactive call her? Explain any restrictions they must be aware of. Answer:

According to the Telemarketing Sales Rule (TSR) enacted by the Federal Trade Commission in 1995, telemarketers are prohibited from calling before 8 a.m. or after 9 p.m.; it imposes strict information disclosure requirements; it prohibits misrepresentative or misleading statements; and it provides for specific payment collection procedures. More recently, FTC regulations require telemarketing firms to identify themselves on caller ID. The most serious restriction on telemarketing is coming from various state and national “do-not-call” lists. Some 30 states have set up these lists and a national do-not-call list took effect in 2003. However, even though a consumer may have registered their phone number on this list, companies can still legally phone individuals with whom they have an “existing relationship,” which in practice means the consumer has bought a product or has contacted the company within the previous 18 months. Because Jill is a customer, Proactive legally can call her. (moderate; p. 470; LO4; Ethical Reasoning)

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CHAPTER SIXTEEN Sales Promotion, Events, and Sponsorships

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

The media and non-media marketing pressure applied for a predetermined, limited period of time at the level of consumer, retailer, or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability is ___________. a. advertising b. public relations c. sales promotion d. personal selling e. event sponsorship (c; moderate; p. 482; LO1; AACSB Communication) 2.

Who is the target audience of sales promotion? a. consumers b. trade, such as distributors and retailers c. sales representatives d. a and b e. a, b, and c (e; moderate; p. 482; LO1; AACSB Communication) 3.

Which of the following is NOT a typical target audience of sales promotion? a. consumers b. distributors c. sales representatives d. media e. retailers (d; moderate; p. 482; LO1; AACSB Communication) 4.

What is the ultimate goal of sales promotion? a. action b. awareness c. persuasion d. intention e. liking (a; moderate; p. 483; LO1; AACSB Analytic Skills)

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Which of the following typically receives about half of the marketing communication budgets? a. advertising b. consumer sales promotion c. trade promotions d. event sponsorship e. public relations (a; moderate; p. 483; LO1; AACSB Communication) 6.

Which of the following statements is false regarding sales promotion? a. Shoppers today are better educated and more selective, which means they are more loyal to brands than in the past. b. Although consumers are an important target for promotions, so are other people, such as the company’s sales representatives and members of the trade. c. Over the years advertising and sales promotion have been battling for their share of the marketing communication budget. d. The chief reasons for the growth of sales promotion are the pressure for short-term profits and the need for accountability of marketing communication efforts. e. From the consumers’ perspective, sales promotion reduces the risk associated with a purchase by giving them something of added value. (a; moderate; p. 484; LO1; AACSB Analytic Skills) 7.

Which of the following is NOT a reason for the growth of sales promotion? a. pressure for short-term profits b. need for accountability c. economic reasons d. reduces consumers’ risk e. pressure for long-term profits (e; moderate; pp. 483-484; LO1; AACSB Analytic Skills) 8.

Reasons for the move to sales promotion match changes in the marketplace do NOT include? a. Consumers are more likely to switch brands because they are better educated, more selective, and less loyal to brand names than in the past. b. Consumers have come to expect constant short-term price reductions such as coupons, sales, and price promotions. c. In most industries, the battle is for market share rather than general product growth, and sales promotion encourages people to switch products, increasing market share. d. Sales promotion is often the most effective strategy for increasing sales of a parity product. e. Dominant retailers do want promotional incentives because they do not benefit the retailer. (e; easy; p. 484; LO1; AACSB Analytic Skills)

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Which of the following is NOT a change in the marketplace that is a reason for the growth of sales promotion? a. Consumers are more likely to switch brands because they are better educated, more selective, and less loyal to brand names than in the past. b. Consumers have come to expect constant short-term price reductions such as coupons, sales, and price promotions. c. In most industries, the battle is for market share rather than general product growth, and sales promotion encourages people to switch products, increasing market share. d. Dominant retailers demand a variety of promotional incentives before allowing products into their stores. e. Sales promotion is a useful tool for building brand equity. (e; difficult; p. 484; LO1; AACSB Communication) 10.

Which of the following is NOT a set of activities targeted to salespeople to motivate them to increase their sales levels? a. programs to better prepare salespeople to do their jobs b. incentives that motivate salespeople to work harder c. advertising d. sales manuals, training programs e. sales presentations, and supportive materials (c; moderate; p. 484; LO1; AACSB Communication) 11.

Which of the following is NOT a type of consumer promotion? a. price deals b. sampling c. spiffs d. contests and sweepstakes e. premiums (c; moderate; pp. 485-486; LO2; AACSB Communication) 12.

Which of the following is a type of consumer promotion known as a consumer price deal? a. banded packs b. refund c. rebate d. premium e. contest (a; difficult; p. 485; LO2; AACSB Analytic Skills)

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13.

Which of the following is a type of consumer promotion known as a consumer price deal? a. cents-off deal b. price-pack deal c. bonus packs d. banded packs e. all of the above (e; easy; p. 485; LO2; AACSB Analytic Skills) 14.

Which of the following is NOT a type of consumer promotion known as a consumer price deal? a. cents-off deal b. price-pack deal c. bonus packs d. banded packs e. refund (e; difficult; p. 485; LO2; AACSB Analytic Skills) 15.

A temporary price reduction or a sale price is known as a ___________. a. refund b. rebate c. price deal d. spiff e. price-off (c; moderate; p. 485; LO2; AACSB Analytic Skills) 16.

A type of consumer promotion in which there is a reduction in the normal price charged for a good or service announced at the point of sale or through mass or direct advertising is known as ___________. a. price-pack deals b. cents-off deals c. bonus packs d. banded packs e. coupons (b; moderate; p. 485; LO2; AACSB Analytic Skills) 17.

Which of the following are the two types of coupons? a. refund and rebate b. immediate and delayed c. percentage and cents-off d. retailer and manufacturer e. price cut and added value (d; moderate; p. 485; LO2; AACSB Analytic Skills)

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18.

________ coupons can be redeemed only at the specified retail outlet, and ________ coupons can be redeemed at any outlet distributing the product. a. Retailer-sponsored; manufacturer-sponsored b. Manufacturer-sponsored; retailer-sponsored c. Refund; rebate d. Rebate; refund e. Immediate; delayed (a; moderate; p. 485; LO2; AACSB Analytic Skills) 19.

Which of the following is NOT a way manufacturer-sponsored coupons are delivered? a. through media b. directly, such as direct mail or door-to-door c. in or on the package d. through the retailer e. All of the above are ways to deliver manufacturer-sponsored coupons. (e; moderate; p. 485; LO2; AACSB Analytic Skills) 20.

A type of consumer sales promotion in which a marketer offers to return a certain amount of money to the consumer who purchases the product is known as a ________. a. rebate b. refund c. coupon d. a and b e. a, b, and c (d; moderate; p. 485; LO2; AACSB Analytic Skills) 21.

Allowing the consumer to try the product or service is called ________. a. trial b. sampling c. premium d. specialties e. point-of-purchase display (b; easy; p. 487; LO2; AACSB Analytic Skills) 22.

Which type of consumer sales promotion will more likely lead to consumer trial by giving the product to consumers? a. price deals b. coupons c. refunds and rebates d. sampling e. premiums (d; easy; p. 485-486; LO2; AACSB Analytic Skills)

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23.

Which type of consumer sales promotion creates excitement by promising “something for nothing” and offering impressive prizes that consumers can either compete for or win by chance? a. price deals b. coupons c. sweepstakes d. sampling e. premiums (c; easy; p. 486; LO2; AACSB Analytic Skills) 24.

________ require participants to compete for a prize or prizes based on some sort of skill or ability. a. Sweepstakes b. Games c. Contests d. Premiums e. Sampling (c; moderate; p. 486; LO2; AACSB Analytic Skills) 25.

________ require only that participants submit their names to be included in a one-shot drawing or other chance selection. a. Sweepstakes b. Games c. Contests d. Premiums e. Sampling (a; moderate; p. 486; LO2) 26.

A ________ is a type of sweepstake, but it differs from a one-shot drawing type because the time frame is longer. a. game b. contest c. premium d. spiff e. slick (a; moderate; p. 486; LO2; AACSB Analytic Skills) 27.

A type of consumer promotion that is a tangible reward for a particular act, usually purchasing a product or visiting the point-of-purchase is known as a ________. a. sample b. price deal c. contest d. sweepstake e. premium (e; moderate; p. 486; LO2)

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28.

What are the two general types of premiums? a. direct and mail b. free and self-liquidating c. immediate and delayed d. direct and indirect e. retailer-sponsored and manufacturer-sponsored (a; difficult; p. 486; LO2) 29.

Which type of premium awards the incentive immediately, at the time of purchase? a. direct b. self-liquidating c. retailer-sponsored d. manufacturer-sponsored e. free (a; moderate; p. 486; LO2) 30.

Which of the following is NOT a type of direct premium? a. co-op premiums, given to consumers at the retail site but paid for by the manufacturer b. store premiums, given to customers at the retail site c. in-pack premiums, inserted in the package at the factory d. on-pack premiums, placed on the outside of the package at the factory e. container premiums, in which the package is the premium (a; moderate; p. 486; LO2) 31.

Which type of premium usually requires that a payment be mailed in along with some proof of purchase before the customer receives the premium? a. mail-in premium b. self-liquidating premium c. cost-based premium d. rebate e. refund (b; moderate; p. 486; LO2) 32.

________ present(s) the brand’s name on something that is given away as a reminder, such as calendars, pens, T-shirts, mouse pads, and so forth. a. Premiums b. Take-aways c. Give-aways d. Specialty advertising e. Specialty promotions (d; moderate; p. 486; LO2)

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33.

Which of the following is NOT a use of consumer promotions? a. generate awareness b. generate trial c. maintain or increase market share d. used as a brand reminder e. image creation (e; moderate; pp. 486-487; LO2; AACSB Analytic Skills) 34.

Which of the following is NOT a recommended type of consumer promotion to encourage trial of a new product? a. sampling b. coupons c. price deals d. sweepstakes e. special events where the consumer can try the product (d; difficult; p. 487; LO2; AACSB Analytic Skills) 35.

Which of the following is NOT a recommended type of consumer promotion to maintain or increase market share? a. sampling b. price deal c. coupons d. premiums e. contests (a; difficult; p. 487; LO2) 36.

Which of the following is NOT a recommended type of consumer promotion in the reminder stage? a. coupons b. sampling c. rebates d. specialty items e. All of the above are recommended for the reminder stage. (b; difficult; p. 487; LO2) 37.

Which of the following refers to the trade? a. brokers b. distributors c. wholesalers d. retailers e. all of the above (e; easy; p. 488; LO3; AACSB Analytic Skills)

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38.

Brokers, distributors, wholesales, dealers, franchisees, and retailers are referred to as ________. a. resellers b. trade c. gatekeepers d. suppliers e. merchandisers (b; moderate; p. 488; LO3) 39.

Which of the following is a type of trade promotion? a. sweepstakes b. coupons c. point-of-purchase displays d. sampling e. rebates and refunds (c; moderate; p. 489; LO3) 40.

Which of the following is NOT a type of trade promotion? a. point-of-purchase displays b. retailers kits c. contest d. trade shows and exhibits e. coupons (e; easy; p. 489; LO3) 41.

A manufacturer-designed display distributed to retailers who use it to call their customers’ attention to product promotions is known as a ________. a. merchandising display b. point-of-purchase (POP) display c. rack job d. spiff e. display slick (b; moderate; p. 489; LO3; AACSB Communication) 42.

Which of the following is NOT a form of point-of-purchase (POP) display? a. take-aways b. merchandising display c. price cards d. dump bins e. special racks (a; difficult; p. 489; LO3; AACSB Communication)

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43.

________ are a type of trade promotion that contain materials that support retailers’ selling efforts or that help representatives make sales calls on prospective retailing customers. a. Promotion kits b. Point-of-purchase (POP) kits c. Trade Incentives d. Retailer kits e. Spiffs (d; moderate; p. 489; LO3) 44.

Print ads that are ready to be sent to the local print media as soon as the retailer or dealer adds identification, location, promotion prices, or other information are known as ________. a. spiffs b. push money c. ad slicks d. ad comps e. ad incentives (c; moderate; p. 489; LO3) 45.

Which type of trade promotion rewards a reseller financially for purchase of a certain level of a product or support of a promotion? a. trade incentives and deals b. contests c. point-of-purchase displays d. price deals e. retailer kits (a; moderate; p. 489; LO3) 46.

Which is the most common type of trade deals? a. point-of-purchase displays b. push money c. spiffs d. contests e. buying allowances and advertising allowances (e; moderate; p. 489; LO3) 47.

Where do companies within the same industry gather to present and sell their merchandise, as well as to demonstrate their products? a. trade shows b. industry shows c. industry forums d. industry consortiums e. trade consortiums (a; easy; p. 489; LO3)

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48.

What are the two primary roles for a trade promotion? a. trade support and consumer acceptance b. consumer acceptance and excitement c. trade support and excitement d. switching behavior and excitement e. trade support and image enhancement (c; moderate; p. 489; LO3) 49.

Consumer promotions are important in a(n) ________ strategy. a. push b. pull c. end-user d. promotion e. intermediate (b; moderate; p. 489-490; LO3; AACSB Communication) 50.

Trade promotions are important in a(n) ________ strategy. a. push b. pull c. end-user d. promotion e. intermediate (a; moderate; p. 490; LO3; AACSB Communication) 51.

A monetary bonus paid to a store’s salesperson based on the units that salesperson sells over a period of time is known as ________. a. push money b. spiffs c. bonuses d. a and b e. a, b, and c (e; moderate; p. 490; LO3; AACSB Communication) 52.

________ are premiums, such as a free trip to the Super Bowl, that a manufacturer gives to a retailer for buying a certain amount of a product. a. Bonuses b. Loaders c. Spiffs d. Co-ops e. Pushes (b; moderate; p. 490; LO3)

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Part Five: Principles: How to Win the Battle of the Buzz

53.

Which of the following type of incentive rewards retailers by giving them the display after the promotion is over? a. bonuses b. dealer loaders c. display allowance d. buying allowance e. trade exhibit (b; moderate; p. 490; LO3; AACSB Communication) 54.

________ is a contractual arrangement between the manufacturer and the resellers, and the manufacturer agrees to pay a part or all of the advertising expenses incurred by the retailers. a. Cooperative advertising b. Display advertising c. Buying allowance d. Advertising allowance e. Dealer loader (a; moderate; p. 490; LO3; AACSB Communication) 55.

A direct payment of cash or goods given to the retailer if the retailer agrees to set up the point-of-sale display is known as a ________. a. buying allowance b. bonus c. dealer loader d. display allowance e. cooperative allowance (d; moderate; p. 490; LO3) 56.

________ occurs when companies support an event either financially or by donating supplies and services. a. Ambush marketing b. Sponsorship c. Co-marketing d. Co-branding e. Tie-in (b; moderate; p. 491; LO4) 57.

________ means building a product’s marketing program around a sponsored event, such as the Olympics or a golf tournament. a. Event marketing b. Sports marketing c. Co-marketing d. Co-branding e. Tie-in (a; moderate; p. 491; LO4)

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58.

Which of the following is NOT considered a type of sponsorship or event marketing? a. sports sponsorships b. festivals, fairs, and other annual events c. cause marketing d. co-marketing e. supporting the arts (d; moderate; p. 491; LO4) 59.

________ is the term given to promotional stunts used at events, such as the Olympics, by companies that are not official sponsors. a. Ambush marketing b. Sponsorship c. Co-marketing d. Co-branding e. Tie-in (a; moderate; p. 493; LO4; AACSB Communication) 60.

Which of the following are ways that marketers can use the Internet for sales promotion programs? a. sampling b. sweepstakes and contests c. price deals d. coupons e. all of the above (e; easy; pp. 494–495; LO4; AACSB Use of IT) 61.

Which of the following is a promotion to increase customer retention? a. event marketing b. loyalty programs c. sampling d. coupons e. sweepstakes (b; moderate; p. 496; LO4; AACSB Communication) 62.

Which of the following is NOT a type of partnership program? a. co-branding b. licensing c. loyalty programs d. tie-ins e. All of the above are types of partnership programs. (c; moderate; p. 496; LO4; AACSB Communication)

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63.

________ is where manufacturers develop marketing communication programs with their main retail accounts, instead of for them. a. Ambush marketing b. Sponsorship c. Tie-ins d. Co-marketing e. Licensing (d; moderate; p. 496; LO4; AACSB Communication) 64.

When two companies come together to offer a product, the effort is called ________. a. co-branding b. sponsorship c. tie-ins d. co-marketing e. licensing (a; moderate; p. 496; LO4) In which of the following does a company with an established brand “rent” that brand to other companies, allowing them to use its logo on their products and in their advertising and promotional events? a. co-branding b. sponsorship c. tie-ins d. co-marketing e. licensing (e; moderate; p. 496; LO4) 65.

66.

Which of the following is a type of partnership program used by manufacturers of two or more brands, such as Doritos corn chips and Pace salsa, to leverage similar strengths to achieve a bigger impact in the marketplace? a. tie-ins b. licensing c. sponsorship d. bonuses e. spiffs (a; moderate; p. 496-497; LO4; AACSB Analytic Skills) 67.

Which of the following is a criticism of sales promotion? a. cannot account for results b. results in a brand-insensitive consumer c. difficult to integrate with other elements of the communications mix d. not effective e. difficult to determine specific objectives (b; difficult; p. 497; LO5; AACSB Communication)

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68.

Which of the following is true regarding advertising? a. adds tangible value to the product or service b. creates an immediate action c. creates a brand image over time d. contributes greatly to short-term profitability e. added value strategies rely on rational appeals (c; moderate; p. 499; LO5; AACSB Communication) 69.

Which of the following is false regarding advertising and sales promotion? a. Sales promotion strategies can be rational or emotional b. Advertising creates a brand image over time, and sales promotion creates immediate action. c. Advertising and sales promotion contribute moderately to short-term profitability. d. Advertising adds intangible value to the product or service through image. e. Sales promotion adds tangible value to the product or service. (c; difficult; p. 499; LO5; AACSB Communication) 70.

Which of the following is an important dimension of measurement of promotion effectiveness? a. response rate b. redemption rate c. payout planning d. a and b e. a, b, and c (e; moderate; p. 499; LO5; AACSB Analytic Skills)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

Sales promotion not only targets consumers, but intermediaries and sales representatives as well. (True; moderate; p. 482; LO1; AACSB Communication) 72.

Sales promotion is primarily designed to motivate people to act by offering incentives. (True; easy; p. 482; LO1; AACSB Communication) 73.

About one half of marketing communication budgets is spent on consumer sales promotions. (False; moderate; p. 483; LO1; AACSB Communication) 74.

The chief reasons for the growth of sales promotion are the pressure for shortterm profits and the need for accountability. (True; moderate; p. 483; LO1)

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75.

One reason for the growth of sales promotion is that it reduces the risk of trying a new product by giving something of added value to motivate action. (True; moderate; p, 484; LO1) 76.

Shoppers today are more brand loyal, so promotion incentives have to provide substantial incentives to encourage brand switching. (False; difficult; p. 484; LO1) 77.

Advertising is often the most effective strategy for increasing sales of a parity product when the products in the category are largely undifferentiated. (False; moderate; p. 484; LO1; AACSB Communications) 78.

Sales-force promotions include two general sets of promotional activities directed at salespeople: (1) activities that better prepare salespeople to do their jobs and (2) incentives that motivate salespeople to work harder. (True; easy; p. 484; LO1) 79.

A price deal is a temporary price reduction or a sale price, and there are four types: cents-off deals, price-pack deals, bonus packs, and banded packs. (True; moderate; p. 485; LO2; AACSB Analytic Skills) 80. The two general types of coupons are immediate and delayed. (False; moderate; p. 485; LO2) 81. Rebate and refund mean basically the same thing. (True; moderate; p. 485; LO2) 82. A game is a type of contest, only differing by the length of time it runs. (False; moderate; p. 486; LO2; AACSB Analytic Skills) 83.

Store premiums, in-pack premiums, and on-pack premiums are all types of selfliquidating premiums. (False; moderate; p. 486; LO2; Communication) 84.

Specialty advertising presents a brand’s name on something that is given away as a reminder, such as a pen, cap, or mouse pad. (True; easy; p. 486; LO2; AACSB Communication) 85.

Consumer promotions can be used to generate awareness, trial, maintain or increase market share, and as a brand reminder. (True; moderate; pp. 486-487; LO2; AACSB Communication) 86.

A manufacturer-designed display distributed to retailers who use it to call their customers’ attention to product promotions is known as a spiff. (False; moderate; p. 489; LO3; AACSB Communication)

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87.

Ad slicks are print ads that are ready to be sent to the local print media as soon as the retailer adds identification, location, promotion price, or other information. (True; moderate; p. 489; LO3; AACSB Communication) 88.

The most common types of trade deals are buying allowances, advertising allowances (including cooperative advertising), and display allowances. (True; moderate; p. 489; LO3; AACSB Communication) 89.

A trade forum is where companies within the same industry gather to present and sell their merchandise, as well as to demonstrate their products. (False; moderate; p. 489; LO3; AACSB Communication) 90.

Spiffs are monetary bonuses paid to a store’s salesperson based on the units that salesperson sells over a period of time. (True; moderate; p. 490; LO3; AACSB Communication) 91.

Most trade promotions are designed to motivate in some way trade members to cooperate with the manufacturer’s promotion. (True; easy; p. 491; LO3; AACSB Communication) 92.

Companies undertake sponsorships to build brand associations and to increase the perceived value of the brand in the consumer’s mind. (True; moderate; p. 491; LO4; AACSB Analytic Skills) 93.

Guerilla marketing is the term given to promotional stunts used at events by companies that are not official sponsors. (False; moderate; pp. 492-493; LO4; AACSB Communication) 94.

Sweepstakes and contests are effective promotional tools for driving people to marketers’ Internet sites. (True; moderate; p. 494; LO4; AACSB Use of IT) 95.

Loyalty programs that require membership are popular with marketers because they also generate information for customer databases. (True; moderate; p. 496; LO4; AACSB Communication) 96.

A tie-in is where manufacturers develop marketing communication programs with their main retail accounts, instead of for them. (False; moderate; pp. 496–497; LO4; AACSB Communication) 97.

Marketers license their brand identity to other manufacturers because it makes them money and extends their brand visibility. (True; moderate; p. 496; LO4; AACSB Communication)

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98.

The reason tie-ins are successful is that brands can leverage similar strengths to achieve a bigger impact in the marketplace. (True; moderate; p. 496-497; LO4; AACSB Communication) 99.

One disadvantage of promotions is that, although they can help introduce a new product and create brand awareness, they cannot build a brand over time. (False; moderate; p. 497; LO4; AACSB Analytic Skills) 100.

The general decline in consumer brand loyalty is due to the increase in sales promotion use by marketers. (False; difficult; p. 498; LO4) 101.

Sales promotion often relies on rational appeals, and advertising often relies on emotional appeals. (True; moderate; p. 498; LO4; AACSB Communication) 102.

Promotions add tangible value to the good or service and contribute greatly to the profitability of the brand. (True; moderate; pp. 498-499; LO4; AACSB Communication) 103. In most cases, advertising is needed to support promotions. (True; moderate; p. 499; LO4; AACSB Communication) 104.

Response rates and redemption rates are used to evaluate the effectiveness of promotional programs. (True; moderate; p. 499; LO4; AACSB Communication) 105. Turnover rate is an important measure of a promotion’s effectiveness. (False; moderate; p. 499; LO4; AACSB Communication)

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GENERAL CONTENT: ESSAY QUESTIONS 106.

Discuss five reasons for the growth of sales promotion. Answer: Students can discuss any five of the following reasons: (1) (2) (3)

Pressure for Short-term Profits Accountability for Marketing Communications Efforts Economic Reasons—Traditional media costs have escalated to the point where alternative media must be considered. (4) Immediate Response—It is relatively easy and quick to determine whether a sales promotion strategy has accomplished its objectives because there is usually an immediate response of some kind. (5) Reduces Consumers’ Risk—From their perspective, sales promotion reduces the risk associated with a purchase by giving them something of added value. (6) Consumer Behavior—Shoppers are better educated, more selective, and less loyal to brand names than in the past, which means they are more likely to switch brands. (7) Pricing—Consumers have come to expect constant short-term price reductions, such as coupons, sales, and price promotions. (8) Market Share—In most industries, the battle is for market share rather than general product growth. Sales promotion encourages people to switch products, increasing market share. (9) Parity Products—Sales promotion is often the most effective strategy for increasing the sales of a parity product when the products in the category are largely undifferentiated. When the products are similar, promotions become the tie-breaker in the consumer’s decision making. (10) The Power of the Retailer—Dominant retailers demand a variety of promotional incentives before allowing products into their stores. (moderate; pp. 483-484; LO1; AACSB Reflective Thinking)

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107.

Name and describe the seven common types of consumer promotions. Answer:

The most common types of consumer promotions are: (1) Price Deals—A temporary price reduction or a sale price. There are four common price deals: (a) cents-off deal—a reduction in the normal price charged for a good or service announced at the point of sale or through mass or direct advertising; (b) price-pack deal—provide the consumer with something extra through the package itself (e.g., a prize in the cereal box); (c) bonus packs—contain additional amounts of the product free when consumers purchase the standard size at the regular price; and (d) banded packs—more units of a product sold at a lower price than if they were bought at the regular single-unit price. (2) Coupons—Provide a discount on the price of a product. Two general types are: retailer and manufacturer. Retailer-sponsored coupons can be redeemed only at the specified retail outlet. Manufacturer-sponsored coupons can be redeemed at any outlet distributing the product. (3) Refunds and Rebates—A marketer’s offer to return a certain amount of money to the consumer who purchases the product. (4) Sampling—Allowing the consumer to try the product or service. (5) Contest and Sweepstakes—Create excitement by promising “something for nothing” and offering impressive prizes. Contests require participants to compete for a prize based on some sort of skill or ability. Sweepstakes require only that participants submit their names to be included in a drawing or other chance selection. A game is a type of sweepstakes, but it differs from a one-shot drawing type of sweepstake because the time frame is longer. (6) Premiums—A tangible reward for a particular act, usually purchasing a product or visiting the point-of-purchase. Premiums are a type of incentive that works by adding value to the product. The two types are direct and mail. Direct premiums award the incentive immediately, at the time of purchase and can be store premiums, in-pack premiums, on-pack premiums, or container premiums. Mail premiums require the customer to take some action before receiving the premium. A self-liquidating premium usually requires that a payment be mailed in along with some proof of purchase before the consumer receives the premium. (7) Specialties (Specialty Advertising)—Presents the brand’s name on something that is given away as a reminder, such as a calendar, pen, or cap. (moderate; pp. 484-486; LO2; AACSB Reflective Thinking)

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108.

Explain the purposes of consumer promotions and the useful types of consumer promotions for each. Answer:

Consumer promotions can be used for: (1) Awareness—Sometimes awareness can be increased when advertising is combined with an appropriate promotion to call attention to the brand name in order to get people to try the product. (2) Trial—Sales promotion does this by arranging for experiences, such as special events where people can try the product or see it demonstrated. Trial is one of sales promotion’s most important objectives; however, the important thing is to get the right people—the targeted audience— involved with the product. Sales promotion has other tools that lead to trial, such as sampling. Another way sales promotion can motivate people to try a new product is to offer a price deal. Coupons may encourage trial, induce brand switching, and reward repeat business. (3) Maintain or Increase Market Share—To convince prospective users to switch from an established competing brand. A price deal can be used to reward loyal users in order to encourage their repeat business. To maintain a brand’s presence or increase its market share after it is launched, marketers use promotional tools such as coupons, premiums, special events, and contests and sweepstakes. In addition to serving as a reward for buying a product, premiums can enhance an advertising campaign or brand’s image. (4) Brand Reminder—You can change advertising copy to remind customers about the positive experience they had with the product and use sales promotion to reinforce their loyalty with coupons, rebates, and other rewards. Specialty advertising serves as a reminder to reconsider the product. They also build relationships, such as items given away as newyear or thank-you gifts. (difficult; pp. 486–487; LO2; AACSB Reflective Thinking)

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109.

Name and describe the five types of trade promotions. Answer:

The types of trade promotions are: (1) Point-of-Purchase (POP) Displays—Manufacturer-designed displays distributed to retailers who use them to call their customers’ attention to product promotions. Several different types are given in Table 16.1. (2) Retailer (Dealer) Kits—Materials that support retailers’ selling efforts or that help representatives make sales calls on prospective retailing customers. The kits contain supporting information, such as detailed product specifications, how-to display information, and ad slicks—print ads that are ready to be sent to the local print media as soon as the retailer or dealer adds identification, location, promotion price, or other information. (3) Trade Incentives and Deals—A manufacturer may reward a reseller financially for purchase of a certain level of a product or support of a promotion. The retailer promotional efforts can take the form of special displays, extra purchases, superior store locations, or greater local promotion. In return, retailers can receive special allowances, such as discounts, free goods, gifts, or cash from the manufacturer. The most common types are buying allowances for increasing purchases and advertising allowances, which include deals on cooperative advertising and display allowances—that is, deals for agreeing to use promotional displays. (4) Contests—Used to motivate resellers. Contests are far more common than sweepstakes, mainly because resellers find it easy to tie contest prizes to the sale of the sponsor’s product. (5) Trade Shows and Exhibits—A trade show is where companies within the same industry gather to present and sell their merchandise, as well as to demonstrate their products. Exhibits are spaces that are designed to showcase the product. (moderate; p. 489; LO3; AACSB Reflective Thinking)

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110.

Name and describe the various partnership programs.

Answer: (1) Co-marketing—Where manufacturers develop marketing communication programs with their main retail accounts, instead of for them. They can strengthen relationships between manufacturers and retailers. Programs are usually based on the lifestyle and purchasing habits of consumers who live in the area of a particular retailer. The partnership means that the advertising and sales promotion build equity for both parties. (2) Co-branding—When two companies come together to offer a product. (3) Licensing—Legally protected brand-identity items, such as logos, symbols, and brand characters must be licensed: a legal contract gives another company the right to use the brand-identity element. The company with an established brand “rents” that brand to other companies, allowing them to use its logo on their products and in their advertising and promotional events. They do this because it makes them money and extends their brand visibility. (4) Tie-Ins—An effective strategy for marketers using associations between complementary brands to make one-plus-one equals three. The intention is to spur impulse sales. Ads are also designed to tie the two products together and the sponsoring companies share the cost of the advertising. The reason for success is that brands can leverage similar strengths to achieve a bigger impact in the marketplace. (moderate; pp. 496–497; LO4; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

Dan is creating a sales promotion for a client. Who would NOT be in the target audience of sales promotion? a. consumers b. retailers c. sales representatives d. distributors e. company executives (e; moderate; p. 482; LO1; AACSB Communication) 112.

Which of the following was the objective for Frontier Airline's Favorite Animal Contest discussed in the chapter’s opening vignette? a. Build brand awareness among mothers who plan the family vacations. b. Increase market share in the national market c. Increase the level of new passengers for Frontier d. Develop a strategic alliance with a major carrier e. Drive customers to the website. (e; moderate; p. 481)

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113.

Dana is developing an integrated marketing communications campaign for a client, and she wants to include an element that will provide an incentive for consumers to purchase the product. She also wants to generate excitement for the brand. Which tool should she use to accomplish these goals? a. advertising b. personal selling c. public relations d. sales promotion e. direct marketing (d; moderate; p. 482; LO1; AACSB Communication) 114.

Allan has worked in the advertising creative field for many years and is moving into sales promotion creation for his agency’s clients. Although he is aware that consumers and the trade are primary target audiences for sales promotion, he just learned that there is another target audience. What is it? a. government agencies b. local media c. special interest groups d. sales force e. vendors (d; moderate; p. 482; LO1; AACSB Communication) 115.

Melissa is in the grocery store to purchase lunch food and snacks for her family. She is in the cookie aisle and noticed some neon-colored little signs attached to the shelf for a brand she is interested in. The sign, called a “shelf-talker,” says “was $3.59, now $2.89!” What type of consumer promotion price deal is this? a. cents-off deal b. price-pack deals c. bonus packs d. banded packs e. coupon (a; easy; p. 485; LO2; AACSB Reflective Thinking) 116.

Lee was in a drug store to purchase some toiletry items that he needed. He picked up his favorite brand of toothpaste and noticed that the package said “30 percent more free.” He noticed that the price was what he normally pays for that toothpaste. Which type of consumer price deal is this? a. cents-off deal b. price-pack deal c. bonus pack d. banded pack e. coupon (c; moderate; p. 485; LO2; AACSB Reflective Thinking)

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117.

Sue found a coupon for $2.00 off of Post’s Raisin Bran breakfast cereal in her favorite magazine. Which type of coupon is this? a. manufacturer-sponsored b. retailer-sponsored c. co-op d. instant e. delayed (a; moderate; p. 485; LO2; AACSB Reflective Thinking) 118.

Kodak is trying to create excitement for its line of digital cameras. They used a promotion where participants submit pictures electronically in the “Kodak Moments” promotion, and judges will select a grand prize winner to receive a vacation for four to Disney World with several other lower-level winners receiving Kodak products. What type of consumer promotion is this? a. coupon b. sweepstake c. game d. contest e. premium (d; moderate; p. 489; LO3; AACSB Reflective Thinking) 119.

Which of the following is NOT a reason for the growth in the relationship between sports and advertising as described in “A Matter of Practice”? a. fracturing of media b. sports leagues and sponsors organized to make sports an effective tool for marketing c. The window of opportunity for this relationship is going to close soon d. Sponsors have organized to leverage their association with major leagues and events e. Small sports events can hold tremendous value for advertisers (c; difficult; p. 492) 120.

Tropicana Orange Juice had a promotion where consumers could send in 10 UPC symbols along with $4.95 for shipping and handling and receive a nice Hawaiian shirt in return. Which type of premium is this? a. store premium b. in-pack premium c. on-pack premium d. container premium e. self-liquidating premium (e; moderate; p. 486; LO2; AACSB Reflective Thinking)

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121.

When promoting Corn Crunchies the marketers wanted to emphasize a clear benefit of the product through arranging experiences where people can use the product. The marketer had a _______ objective for the promotion? a. maintain market share b. penetrate the target market c. trial d. awareness e. brand reminder (c; moderate; p. 487; LO2) 122.

Beverly works at a specialty kitchen store, and the manufacturer of a brand of gourmet mustard that is sold through her store pays her $1.00 for every jar she sells to consumers. What is this called? a. retailer kit b. contest c. spiffs d. loaders e. buying allowance (c; moderate; p. 490; LO3; AACSB Reflective Thinking) 123.

A beer manufacturer offered grocery stores an elaborate display to include near the entrance in their stores, with a picnic table, gas barbeque, coolers to hold beer, and several lounge chairs. Larger stores even had a jet ski included in the display. For their efforts, the manager of the store could keep the items in the display. What type of incentive is this known as? a. dealer loaders b. bonuses c. buying allowances d. retailer kits e. cooperative allowance (a; moderate; p. 490; LO3; AACSB Reflective Thinking) 124.

Which of the following was NOT part of loyalty programs that were given in the text? a. Increase customer retention. b. Reward customers for their patronage. c. The higher the purchase level, the greater the benefits. d. Generate information for customer databases. e. Focused on attracting new customers rather than rewarding current customers. (e; moderate; p. 496; LO4)

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What type of promotion is Upromise, which was discussed in the “Hands-On” case at the end of the chapter? a. loyalty program b. price deal c. premium d. sweepstake e. game (a; easy; p. 503; LO4) 125.

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Everyone knows McDonald’s, the worldwide fast food chain. McDonald’s has been a user of consumer promotions for years. They offer a kids’ Happy Meal that always includes a toy, and often times the package itself is a promotion, such as pumpkin buckets at Halloween. They have also used a promotion patterned after the popular Monopoly game where everyone wins something small, like a soft drink or french fries, but someone could win $1 million dollars by participating. The Monopoly promotion usually lasts several months. McDonald’s also participates in promotions with movies, such as Star Wars and several Disney movies. Another promotion McDonald’s is considering is a program where consumers will receive one free Happy Meal for every 10 they purchase. 126.

Mini-Case Question. What type of consumer promotion is the toy in the Happy Meal? a. direct premium b. self-liquidating premium c. sample d. price deal e. game (a; moderate; p. 486; LO2) 127.

Mini-Case Question. Maria won $1 million playing Monopoly at McDonald’s. What type of consumer promotion is this? a. direct premium b. self-liquidating premium c. contest d. price deal e. game (e; easy; p. 486; LO2)

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128.

Mini-Case Question. What type of premium is the pumpkin bucket for the Happy Meals? a. in-pack premium b. on-pack premium c. container premium d. bonus pack e. self-liquidating premium (c; easy; p. 486; LO2) 129.

Mini-Case Question. The promotion in which customers receive one Happy Meal for every 10 they purchase is known as a(n) ________. a. price deal b. premium c. tie-in d. refund e. loyalty program (e; easy; p. 496; LO4) 130.

Mini-Case Question. What type of partnership program does McDonald’s enter into when its promotions are related to movies? a. co-marketing b. co-branding c. licensing d. tie-in e. loyalty program (d; moderate; pp. 496-497; LO4)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

What was the objective for Frontier Airline's Favorite Animal Contest discussed in the chapter’s opening vignette? Answer:

Frontier Airlines wanted a follow up to the successful campaign "Flip to Mexico" campaign. The challenge of the Favorite Animal Contest was to drive the consumers to the Web site. Airlines prefer passengers to book on the Web because the company saves money, and captures e-mails that builds the airline's database. (moderate; p. 481)

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132.

Consumer packaged goods manufacturers are heavy users of one type of consumer promotions called price deals, and there are four common types of price deals. Name and describe them. Answer:

The four types of price deals are: (1) Cents-off Deals—A reduction in the normal price charged for a good or service announced at the point of sale or through mass or direct advertising. (2) Price-pack Deals—Provide the consumer with something extra through the package itself (i.e., a prize in a cereal box). (3) Bonus Packs—Contain additional amounts of the product free when consumers purchase the standard size at the regular price. (4) Banded Packs—More units of a product sold at a lower price than if they were bought at the regular single-unit price, and sometimes the products are physically packaged together, such as bar soap or six-packs of soft drinks. (moderate; p. 485; LO2; AACSB Reflective Thinking) 133.

Clinique and other cosmetic counters at department stores frequently have gift with purchase promotions where customers receive a nice cosmetic bag filled with lotions, make-up, and other items such as brushes and mirrors. For really nice gifts, customers have to pay a certain amount, such as $29.99, but they usually get a larger bag and several full-sized products that would cost considerably more if the customer purchased them separately. Name and describe this type of consumer promotion, and discuss the various types of this specific promotion. Answer:

This is an example of a premium. A premium is a tangible reward for a particular act, usually purchasing a product or visiting a point-of-purchase. Premiums are a type of incentive that work by adding value to the product, and they are either free or low in price. The two general types of premiums are direct and mail. Direct premiums award an incentive immediately, at the time of purchase, which this is an example of. There are four variations of direct premiums: (1) store premiums, given to customers at the retail site (i.e., this example); (2) in-pack premiums, inserted in the package at the factory; (3) on-pack premiums, placed on the outside of the package at the factory; and (4) container premiums, in which the package is the premium. Mail premiums require the customer to take some action before receiving the premium. A self-liquidating premium usually requires that a payment be mailed in along with some proof of purchase before the customer receives the premium. (moderate; p. 486; LO2; AACSB Reflective Thinking)

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134.

What are the reasons for the growth in the relationship between sports and advertising as described in “A Matter of Practice”? Answer: The reasons for the growth in the relationship between sports and advertising include the following. The media has fractured into ever smaller audiences so advertisers see sports as a way to break through the clutter of media. Sports leagues and sponsors organized to make sports an effective tool for marketing. Sponsors have organized to leverage their association with major leagues and events. Small sports events can hold tremendous value for advertisers.

(moderate; p. 492) 135.

You are to make a presentation on how marketers use consumer promotions. What are the reasons you would include in your presentation? Answer:

Marketers use consumer promotions to generate awareness, generate trial of the brand, maintain or increase market share, and as a brand reminder. (moderate; pp. 486-487; LO2; AACSB Communication) 136.

Louis is a food broker that calls on independently owned grocery stores in Louisiana and Mississippi. Part of his job is to assist with grocers with product displays, and manufacturers provide information for him, in the form of Retailer Kits, to assist retailers. Describe this type of trade promotion. Answer:

Retailer (Dealer) Kits—Materials that support retailers’ selling efforts or help representatives make sales calls on prospective retailing customers are often designed as sales kits. The kits contain supporting information, such as detailed product specifications, how-to display information, and ad slicks—print ads that are ready to be sent to the local print media as soon as the retailer or dealer adds identification, location, promotion, price, or other information. (moderate; p. 489; LO3; AACSB Reflective Thinking)

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137.

There has been a shift from a pull promotion strategy to a push promotion strategy over that past few decades. Compare and contrast these two strategies, and name and describe three common types of incentives and trade deals used with retailers as part of a push strategy. Answer: Advertising, consumer promotion, and publicity stories can influence consumers to demand a product, which is a pull strategy because consumers will go to the retailer and ask for it, which will “pull” the product through the channel. A push strategy pushes the product through the channel by convincing (motivating or rewarding) members of the distribution network to carry the product.

The most common types of incentives and trade deals used with retailers as part of a push strategy include (students need to name and describe any three of the following): (1) Bonuses—A monetary bonus (a.k.a. push money or spiffs) is paid to a store’s salesperson based on the units that salesperson sells over a period of time. (2) Dealer Loaders—Premiums that a manufacturer gives to a retailer for buying a certain amount of a product. A buying loader rewards retailers for buying the product. Display loaders reward retailers by giving them the display after the promotion is over. (3) Buying Allowances—Manufacturer pays a reseller a set amount of money, or a discount, for purchasing a certain amount of the product during a specified time period. (4) Advertising Allowances—Manufacturer pays the intermediary a certain amount of money to advertise the manufacturer’s product. It can be a flat dollar amount or it can be a percentage of gross purchases during a specified time period. (5) Cooperative Advertising—In a contractual arrangement between the manufacturer and the resellers, the manufacturer agrees to pay a part of or all of the advertising expenses incurred by retailers. (6) Display Allowance—A direct payment of cash or goods is given to the retailer if the retailer agrees to set up the POP display. (moderate; p. 490; LO3; AACSB Reflective Thinking)

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138.

Bob watched the Wachovia Golf Classic last weekend on television. Name and describe the type of promotion Wachovia is participating in, explain why companies do it, and discuss the variations of this type of promotion. Answer:

Sponsorships occur when companies support an event, such as a sporting event, concert, or charity, either financially or by donating supplies and services. Event marketing means building a product’s marketing program around a sponsored event, such as the Wachovia Golf Classic. Sponsorships and event marketing include: sports sponsorships (events, athletes, teams); entertainment tours and attractions; festivals, fairs, and other annual events; cause marketing; and supporting the arts. Companies undertake sponsorships to build brand associations and to increase the perceived value of the brand among consumers. The events also give sales representatives the opportunity to interact with prospective and current customers in a social environment, so it’s building the image and reputation of the company as well as supporting lead generation and customer-reward programs. (moderate; p. 491; LO4; AACSB Communication) 139.

Nike is not a sponsor of the Olympics, but during the last summer Olympics, Nike ran a “Bronze, Silver, and Gold” promotion during the time the games were occurring. Name and describe this marketing activity. Answer:

Ambush marketing is the term given to promotional stunts used at events, such as the Olympics, by companies that are not official sponsors. (easy; p. 493; LO3; AACSB Communication) 140.

An advertising agency’s client wants to use the Internet for sales promotion programs. Discuss the types of sales promotions that are appropriate for this medium.

Answer: There are a number of ways advertisers can use the Internet for sales promotion programs, including sampling, sweepstakes and contests, price deals, and coupons. Sampling has been a mainstay of interactive promotions on the Internet. Some companies offer them from their own sites, but most farm out the efforts to online companies that specialize in handling sample offers and fulfillment. There are also freebie portals that have offers for free goods. Sweepstakes and contests are effective promotional tools for driving people to marketers’ Internet sites. Some sites offer price promotions only to online purchasers. Finally, coupons can be delivered via the Internet. (moderate; p. 494; LO4; AACSB Use of IT)

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141.

How have loyalty programs become reward programs? Answer:

Loyalty programs are also called continuity or frequency programs is a promotion to increase customer retention. Marketers typically design loyalty programs to keep and reward customers for their continued patronage which is why they are called continuity programs. Typically the higher the purchase level, the greater the benefits. The loyalty programs are synonymous with the word frequent. (moderate; p. 496; LO4; AACSB Reflective Thinking) 142.

Gucci allows manufacturers of complementary products to use its brand identity on their products. What is this called, and why does Gucci do this? Answer:

This is called licensing, which is a legal contract giving another company the right to use the brand-identity element. In brand licensing, a company with an established brand (e.g., Gucci) “rents” that brand to other companies, allowing them to use its logo on their products and in their advertising and promotional events. Gucci does this because it makes them money and extends their brand visibility. (moderate; p. 496; LO4; AACSB Reflective Thinking) 143.

Stephanie has a Target Visa card. It’s a regular Visa card, but when she uses it at a Target store, her child’s school receives 1 percent of her purchase. When she uses the card elsewhere, the school receives 0.5 percent of her purchase. In fact, the school has helped sign up people for the cards by sending brochures home with every student, and now the school receives $500–$2,000 every quarter from Target. What type of promotion is this? Answer:

This is a type of partnership program called co-branding, which is where two companies (i.e., Visa and Target) come together to offer a product. This is also a type of sponsorship, that is, support of a cause (e.g., education) and a type of loyalty program. (moderate; p. 496; LO4; AACSB Reflective Thinking)

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144.

Your roommate is taking this class with you because he thought it would be a fun course to take, but he’s an engineering major and is having trouble seeing the differences between all these IMC tools. Specifically, he doesn’t really see much difference between advertising and sales promotion. Discuss four differences between advertising and sales promotion to help him understand better. Answer:

Although advertising and promotion both contribute to the effectiveness of a marketing communication plan, they have four differences: (1) Advertising creates a brand image over time; sales promotion creates immediate action. (2) Advertising relies on emotional appeals; promotion’s added value strategies rely on rational appeals, whereas impulse appeals use emotion. (3) Advertising adds intangible value to the product or service through image; sales promotion adds tangible value to the product or service. (4) Advertising contributes moderately to short-term profit; sales promotion contributes greatly to short-term profitability. (moderate; p. 499; LO5; AACSB Reflective Thinking) 145.

As described in “It’s a Wrap” at the end of the chapter, what were the results of the Favorite Animal Contest? Answer:

As a result of the Favorite Animal Contest increased Web traffic almost 50 percent over the same period in the previous year and qualified e-mail addresses increased more than 400 percent. The airline even sold more than 1,200 press kits online. (difficult; p. 500; AACSB Reflective Thinking)

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146.

The Upromise program that was described in the “Hands-On” case at the end of the chapter can be described as a “win-win” situation. Describe the Upromise promotion and explain why you think it is a “win-win” situation? Answer:

Upromise is a college savings loyalty network program. When consumers shop at participating stores, a portion of the receipts is set aside for a college savings plan in the consumer’s name. There is no cost for the shopper, other than the time necessary to sign up for the program. Upromise allows families to pool contributions, meaning grandparents and other relatives can use their grocery purchases to help as well. The program also allows recent grads to enroll in the program to pay off their student loans. So, it certainly is a “win” situation for consumers. For marketer’s, it’s a “win” too, because they feel that if consumers know that they are giving money, they might do more business with them because they like the marketer’s values. Companies can also track participant purchases because people in the program have to use either a major credit card or a grocery chain card. A small brand can build customer loyalty and encourage consumers to switch by offering a larger credit than its competitors. Marketing costs are low because program sponsors do the bulk of the advertising. (moderate; p. 503; AACSB Reflective Thinking) APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Kraft is known for its cheese products, but this company also manufactures several consumer packaged goods products, such as mayonnaise, salad dressing, barbeque sauce, macaroni and cheese, and other types of food products that are sold in grocery stores. A large portion of Kraft’s marketing communication budget (i.e., more than 50 percent) is spent on incentives given to wholesalers and retailers to get its products to the consumers. 147.

Mini-Case Question. What is the target audience called that Kraft is targeting with incentives to get its products to consumers in the stores? Name and describe the other targets of sales promotion as well. Answer:

The most common sales promotion strategies target the three audiences of promotions: consumer, trade, and sales force. In this case, Kraft is targeting the trade, such as wholesalers and retailers. (moderate; p. 488; LO1; AACSB Reflective Thinking)

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148.

Mini-Case Question. What audience is Kraft targeting in this case, and what are the two primary roles of this type of promotion? Answer:

Kraft is targeting the trade, and the two primary roles for a trade promotion are: (1) Trade Support—To stimulate in-store merchandising or other trade support, such as feature pricing, superior store location, or shelf space. (2) Excitement—To create a high level of excitement about the product among those responsible for its sale. (moderate; p. 489; LO1; AACSB Reflective Thinking) 149.

Mini-Case Question. What type of promotion could Kraft provide to retailers to call their customers’ attentions to Kraft’s products? Discuss different examples of this type of promotion. Answer:

One type of promotion Kraft could provide retailers is a manufacturer-designed display to call their customers’ attention to product promotions known as pointof-purchase (POP) displays. There are several different types of POP displays: special racks, display cartons, banner, signs, price cards, mechanical product dispensers, and several others that are listed in Table 16.1. (moderate; p. 489; LO3; AACSB Reflective Thinking) 150.

Mini-Case Question. James was with his mother in the grocery store, and near the cheese section there was a cardboard display filled with little soccer balls. James saw them and grabbed one and immediately started dribbling it down the aisles of the store. His mother looked closer at the display and learned that the soccer ball was free with the purchase of two Kraft cheese products that were on the shelf nearby. What type of promotion is this? Answer:

The cardboard structure with the soccer balls is a POP display. The offer for the soccer ball is an example of a direct premium type of consumer promotion. More specifically, this is an example of a type of direct premium known as a store premium, which is given to customers at the retail site. (moderate; p. 489; LO1; AACSB Reflective Thinking)

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GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

Which IMC tool helps an organization and its publics relate to each other to the benefit of both? a. advertising b. personal selling c. publicity d. sales promotion e. public relations (e; moderate; p. 506; LO1; AACSB Communication) 2.

All the groups of people with which a company or organization interacts, such as employees, media, community groups, shareholders, and so forth, are known as ___________. a. targets b. publics c. audiences d. shareholders e. contact points (b; moderate; p. 506; LO1) 3.

Another term for publics is ___________, which refers more specifically to people who have a stake, financial or not, in a company or organization. a. targets b. stakeholders c. audience d. shareholders e. contact points (b; moderate; p. 507; LO1) 4.

Which of the following types of organizations does NOT practice public relations? a. companies b. governments c. nonprofit organizations d. media e. All of the above are types of organizations that practice public relations. (e; moderate; p. 507; LO1)

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A label describing what a group of people think is known as ___________. a. public opinion b. public relations c. publicity d. group think e. reputation (a; easy; p. 507; LO1) 6.

Which of the following statements is false regarding the practice of public relations? a. Public relations is used to generate goodwill for an organization. b. Public relations is practiced by a wide range of organizations. c. On one level, public relations is a tactical function. d. Publicity and public relations are synonymous terms. e. A corporation’s publics may be external and internal. (d; moderate; p. 507; LO1; AACSB Communication) 7.

Important people who influence the opinions of others are known as ___________. a. trend setters b. trend spotters c. opinion leaders d. opinion influencers e. opinion setters (c; moderate; p. 507; LO1) 8.

Which of the following statements is false? a. Public goodwill is the greatest asset any organization can have. b. A difference between advertising and public relations is that public relations takes a longer, broader view of the importance of image and reputation as a corporate competitive asset and addresses a greater number of target audiences. c. Gatekeepers include writers, producers, editors, talk show coordinators, and newscasters. d. The public is as skeptical of the media as they are of advertisers. e. Integrity involves more than image. (d; moderate; p. 508; LO1; AACSB Communication) 9.

What is the greatest asset any organization can have, and creating it is the primary goal of most public relations programs? a. capital b. goodwill c. image d. reputation e. equity (b; moderate; p. 507; LO1; AACSB Communication)

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10.

The trust on which goodwill is based comes from ________. a. popular products b. having many products c. what a company says about what it does d. corporate integrity e. what the government says about what a company does (d; difficult; p. 508; LO1) 11.

________ is a perception based on messages delivered by advertising and other marketing communication tools. a. Image b. Reputation c. Equity d. Integrity e. Goodwill (a; moderate; p. 508; LO1; AACSB Communication) 12.

________ is a perception based on messages delivered by advertising and other marketing communication tools, whereas ________ is based on an organization’s actual behavior. a. Goodwill; integrity b. Integrity; image c. Image; reputation d. Reputation; image e. Equity; reputation (c; moderate; p. 508; LO1; AACSB Communication) 13.

Which of the following is an area where public relations and advertising differ? a. media use b. level of control over message delivery c. perceived credibility d. a and b e. a, b, and c (e; moderate; p. 508; LO1; AACSB Communication) 14.

Which of the following statements is true regarding advertising and public relations? a. Public relations and advertising differ in how they use the media, the level of control they have over message delivery, and their perceived credibility. b. The public tends to trust advertising more than they do the media. c. Public relations strategists have little trouble getting exposure through media. d. Consumers do not perceive public relations information any differently than they do advertising information. e. The main goal of public relations is sales. (a; moderate; p. 508; LO1; AACSB Communication)

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15.

Which aspect of public relations carries no direct media costs? a. corporate advertising b. crisis management c. publicity d. cause marketing e. marketing public relations (MPR) (c; moderate; p. 508; LO1; AACSB Communication) 16.

The tendency of consumers trusting media more than they do advertisers is called the ________. a. implied third-party endorsement b. halo effect c. gatekeeping effect d. indirect endorsement effect e. carryover effect (a; moderate; p. 508; LO1; AACSB Communication) 17.

The area of public relations that focuses on developing media contacts is called ________. a. internal marketing b. media relations c. public affairs d. cause marketing e. lobbying (b; moderate; p. 509; LO1; AACSB Communication) 18.

Programs that communicate information to employees are called ________. a. media relations b. public affairs c. cause marketing d. employee marketing e. employee relations (e; easy; p. 509; LO1; AACSB Communication 19.

Communication efforts aimed at informing employees about marketing programs and encouraging their support is known as ________. a. media relations b. public affairs c. cause marketing d. employee marketing e. internal marketing (e; moderate; p. 509; LO1; AACSB Communication)

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20.

All the communication efforts aimed at the financial community are referred to as ________. a. financial relations b. media relations c. external relations d. financial marketing e. finance public relations (FPR) (a; easy; p. 510; LO1; AACSB Communication) 21.

Customers, labor unions, employees, media, and suppliers are all examples of ________. a. shareholders b. stakeholders c. key publics d. internal targets e. public audiences (c; moderate; p. 509 [Figure 17.1]; LO1; AACSB Communication) 22.

Corporate communication programs with government and with the public on issues related to government and regulation are called ________. a. media relations b. external public relations c. cause marketing d. public affairs e. corporate relations (d; moderate; p. 510; LO1; AACSB Communication) 23.

Companies providing information to legislators in order to get their support and vote on a particular bill is a practice known as ________. a. bribery b. lobbying c. corporate relations d. gatekeeping e. cause marketing (b; moderate; p. 510; LO1) 24.

Communication efforts with consumer or activist groups who seek to influence government policies is a practice known as ________. a. media relations b. corporate relations c. issue management d. cause marketing e. issue marketing (c; moderate; p 510; LO1; AACSB Communication)

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25.

The areas that focus on an organization’s image and reputation are called ________. a. corporate relations b. reputation management c. image shaping d. crisis management e. media relations (a; moderate; p. 510; LO1) 26.

Which corporate relations program has the overriding goal of strengthening the trust that stakeholders have in an organization? a. image management b. crisis management c. media relations d. reputation management e. public affairs (d; moderate; p. 510; LO1) 27.

Which type of public relations program anticipates the possibility of a disaster and plans how to deal with bad news and all the affected publics? a. corporate reputation management b. crisis management c. public affairs d. cause marketing e. issue management (b; moderate; pp. 511-512; LO1; AACSB Analytic Skills) 28.

Which of the following is NOT part of a crisis management plan? a. deciding who contacts the various stakeholders who might be affected b. deciding who speaks to the news media c. deciding who sets up and runs an onsite the disaster management center d. lessons learned from previous crises e. All of the above are part of an effective crisis management plan. (d; difficult; p. 512; LO1; AACSB Analytic Skills) 29.

The process of planning and delivering programs that encourage sales and contribute to customer satisfaction by providing communication that addresses the needs and wants of consumers is called ________ a. marketing public relations (MPR) b. consumer public relations (CPR) c. efficient consumer response (ECR) d. public affairs e. issue management (a; moderate; p. 512; LO1; AACSB Communication)

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30.

Which of the following types of programs is used to discourage socially harmful behaviors? a. marketing public relations (MPR) b. consumer public relations (CPR) c. public communication campaigns d. public affairs e. issue management (c; moderate; p. 512; LO1; AACSB Communication) 31.

What is used to assess the internal and external PR environment that affects the organization’s audiences, objectives, competitors, and past results? a. marketing audit b. SWOT analysis c. communication audit d. PR audit e. benchmarking (c; moderate; p. 514; LO2; AACSB Communication) 32.

________ is used to identify baselines from previous audits or audits of other related companies and industries so there is a point of comparison. a. Baselining b. Benchmarking c. A gap analysis d. An internal assessment e. Base-pointing (b; moderate; p. 514; LO2; AACSB Communication) 33.

A ________ measures the differences in perceptions and attitudes between groups or between the organization and its publics. a. benchmark b. base point c. gap analysis d. situation analysis e. communication audit (c; moderate; p. 514; LO2; AACSB Analytic Skills) 34.

As in marketing or advertising planning, a public relations plan begins with background research leading to a(n) ________. a. situation analysis b. objective c. strategy d. tactic e. evaluation (a; moderate; p. 514; LO2; AACSB Analytic Skills)

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35.

Which of the following could be an objective of public relations? a. creating a corporate brand b. moving a brand to a new market or a global market c. providing product or brand information d. positioning or repositioning a company or brand e. all of the above (e; easy; p. 515; LO32; AACSB Analytic Skills) 36.

Which of the following public relations strategies has the purpose of changing the attitudes that drive behavior? a. cause marketing b. issue programs c. corporate reputation management d. change-agent programs e. change-attitude programs (d; moderate; p. 515; LO2; AACSB Analytic Skills) 37.

Which of the following is NOT a marketing communication tool used in public relations? a. sales promotion b. advertising c. Internet d. direct marketing e. All of the above marketing communication tools are used in public relations. (e; moderate; p 517; LO3; AACSB Communication) 38.

Public relations tools are divided into which two categories? a. internal and external b. marketing and corporate c. controlled media and uncontrolled media d. controlled message and uncontrolled message e. controlled contact and uncontrolled contact (c; moderate; p. 517; LO3; AACSB Analytic Skills) 39.

________ include house ads, public service announcements, corporate advertising, in-house publications, and visual presentations. a. Internal media b. External media c. Controlled media d. Uncontrolled media e. Semicontrolled media (c; moderate; p. 517; LO3; AACSB Analytic Skills)

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40.

________ include press releases, press conferences, and media tours. a. Internal media b. External media c. Controlled media d. Uncontrolled media e. Semicontrolled media (d; moderate; p. 517; LO3; AACSB Analytic Skills) 41.

New electronic media are categorized as ________ media. a. controlled b. uncontrolled c. semicontrolled d. regulated e. unregulated (c; moderate; p. 517; LO3; AACSB Analytic Skills) 42.

Which of the following is a public relations tool? a. advertising b. publicity c. publications d. speakers and photos e. all of the above (e; moderate; pp. 517-518; LO3; AACSB Analytic Skills) 43.

Which of the following are the primary uses of advertising in public relations? a. public service announcements, advocacy ads, and institutional advertising b. not-for-profit advertising and corporate advertising c. house ads, public service announcements, and corporate advertising d. corporate advertising, spot announcements, and public service announcements e. advocacy ads, institutional advertising, and corporate advertising (c; moderate; p. 517; LO3; AACSB Analytic Skills) 44.

An ad prepared for use in its own publication or programming is known as a(n) ________ ad. a. house b. corporate c. institutional d. company e. organizational (a; moderate; p. 517; LO3; AACSB Analytic Skills)

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45.

Ads for charitable and civic organizations that run free of charge on television or radio or in print media are known as ________. a. house ads b. public service announcements c. organizational advertising d. nonprofit advertising e. semicontrolled ads (b; moderate; p. 518; LO3; AACSB Communication) 46.

In which type of advertising does a company focus on its corporate image or viewpoint rather than selling a particular product? a. house ads b. public service announcements c. organizational advertising d. nonprofit advertising e. corporate advertising (e; moderate; p. 519; LO3; AACSB Communication) 47.

A type of advertising that firms use to enhance or maintain their reputation among specific audiences or to establish a level of awareness of the company’s name and the nature of its business is called ________. a. corporate identity advertising b. advocacy advertising c. image advertising d. house advertising e. controlled advertising (a; moderate; p. 519; LO3; AACSB Communication) 48.

Point-of-view messages are called ________. a. corporate identity advertising b. advocacy advertising c. image advertising d. house advertising e. controlled advertising (b; moderate; p. 520; LO3; AACSB Communication) 49.

Which of the following is NOT a way to generate publicity? a. news releases b. press conferences c. media tours d. pitch letters e. all of the above are used to generate publicity. (e; easy; pp. 520-522; LO3; AACSB Communication)

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50.

What is the primary medium used to deliver public relations messages to the various external media? a. house ads b. advocacy advertising c. corporate identity advertising d. news releases e. public service announcement (d; moderate; p. 520; LO3; AACSB Communication) 51.

Which category of public relations tools includes news releases? a. controlled b. uncontrolled c. semicontrolled d. advocacy e. image (b; moderate; p. 518; LO3; AACSB Communication) 52.

The decision to use any part of a news release at all is based on an editor’s judgment of its news value, and this is based on the information’s ________. a. timeliness b. proximity c. impact d. human interest e. all of the above (e; easy; p. 520; LO3; AACSB Communication) 53.

________ contain video footage for a television newscast. a. Video news releases (VNRs) b. Video public relations (VPRs) c. Live news releases (LNRs) d. Public Service Announcements (PSAs) e. Documercials (a; easy; p. 522; LO3; AACSB Communication) 54.

What is used to sell editors on ideas for feature stories, which are human-interest stories rather than hard news? a. personal selling b. release statement c. pitch letter d. feature summary e. media kit (c; moderate; p. 522)

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55.

A(n) ________ is an event at which a company spokesperson makes a statement to media representatives. a. media tour b. press conference c. sponsored event d. speakers’ forum e. town hall forum (b; moderate; p. 522; LO3; AACSB Communication) 56.

What do companies provide to the media with all the important background information to members of the press, either before or when they arrive at a press conference? a. media kit b. collateral material c. video news release (VNR) d. pitch letter e. feature story (a; moderate; p. 522; LO3; AACSB Communication) 57.

In which type of publicity does a traveling spokesperson make announcements and speeches, hold press conferences to explain a promotional effort, and offer interviews? a. town hall forum b. speakers’ bureau c. displays and exhibits d. controlled media event e. media tour (e; moderate; p. 522; LO3; AACSB Communication) 58.

What type of publication is required by the Securities and Exchange Commission (SEC) from each publicly held company? a. collateral material b. annual report c. media kit d. pitch letter e. controlled message (b; easy; p. 522; LO3; AACSB Communication) 59.

Material that is published to support a company’s marketing public relations efforts is known as ________. a. feature stories b. media kits c. collateral material d. supplemental material e. annual reports (c; moderate; p. 524; LO3; AACSB Communication)

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60.

A cadre of articulate people in a company who will talk about topics at the public’s request is known as a ________. a. town hall forum b. public service group c. keynote speaker group d. speakers’ bureau e. speakers’ group (d; easy; p. 524; LO3; AACSB Communication) 61.

Which of the following include booths, racks and holders for promotional literature, and signage? a. displays b. collateral racks c. take-aways d. forums e. all of the above (a; moderate; p. 524; LO3; AACSB Communication) 62.

What is the difference between displays and exhibits? a. Displays are found at trade shows, and exhibits are found at the point-ofsale. b. Exhibits tend to be larger than displays; they may have moving parts, sounds, or video, and usually are staffed by a company representative. c. Displays are unattended, but exhibits have a company representative present. d. Exhibits are unattended, but displays have a company representative present. e. There is no difference; the two terms are synonymous. (b; difficult; p. 524; LO3; AACSB Communication) 63.

Why are booth exhibits important at trade shows? a. They generate excitement for employees manning them. b. They generate excitement for attendees of the trade show c. They “put a face” on a corporation for buyers who may not be aware of the organization prior to attending the trade show. d. Some companies may take orders for much of their annual sales. e. all of the above (d; difficult; p. 524; LO3; AACSB Communication)

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64.

Which of the following is used to facilitate internal marketing and provide an opportunity for management to make a presentation on some major project, initiative, or issue and invite employees to discuss it? a. town hall forum b. press conference c. trade show d. media tour e. “Meet the boss” seminar (a; moderate; p. 524; LO3; AACSB Communication) 65.

Which type of network connects people within an organization? a. Internet b. intranet c. extranet d. internal network e. internal web (b; moderate; p. 525; LO3; AACSB Use of IT) 66.

Which type of network connects people in one business with its business partners? a. Internet b. intranet c. extranet d. internal network e. internal web (c; moderate; p. 525; LO3; AACSB Use of IT) 67.

Which of the following have opened up avenues for public relations activities? a. e-mail b. intranets c. extranets d. web sites e. all of the above (e; easy; p. 525; LO3; AACSB Use of IT)

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68.

Which of the following is false regarding online communication? a. Corporate web sites have become an important part of corporate communication. b. The Internet presents at least as many challenges to public relations professionals as it does opportunities. c. The Internet makes it possible to present the company’s image and story without going through the editing of a gatekeeper. d. The Internet, the World Wide Web, is still a controlled medium that does not allow managed communication directly between organizations and audiences without the gatekeeping function of other mass media. e. Gossip and rumors can spread around the world within hours. (d; moderate; pp. 525-526; LO3; AACSB Use of IT) 69.

Public relations practitioners track the impact of a campaign in terms of ________. a. awareness and attitudes b. output and outcome c. sales and inquiries d. impressions and sales e. input and output (b; moderate; p. 528; LO4) 70.

To get a comprehensive picture of PR's ________, practitioners evaluate process and outcome. a. exposure b. contact c. impact d. reach e. frequency (c; moderate; p. 528; LO4)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71. Public relations is primarily used to generate sales. (False; easy; p. 506; LO1) 72.

The term publics refers specifically to people who have a stake, financial or otherwise, in a company or organization. (False; moderate; p. 506; LO1) 73.

Opinion leaders are important targets for public relations efforts because these people influence the opinions of others. (True; easy; p. 507; LO1; AACSB Ethical Reasoning)

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74.

Public relations is the conscience of the company with the objective of creating trust and maintaining the integrity of the organization. (True; moderate; p. 507; LO1) 75.

Reputation is a perception based on messages delivered by the advertising and other marketing communication tools, and image is based on an organization’s actual behavior. (False; moderate; p. 508; LO1) 76.

Ultimately, the difference between advertising and public relations is that advertising takes a longer, broader view of the importance of image and reputation. (False; moderate; p. 508; LO1) 77. Public relations means never having to pay for media exposure. (False; difficult; p. 508; LO1) 78.

As long as a press release or a feature story is well-written and timely, public relations specialists can be confident that the media will use it. (False; moderate; p. 520; LO3) The “no-conflict-of-interest endorsement” factor reflects the tendency of the public to trust the media more than they do advertisers. (False; moderate; p. 508; LO1) 79.

80.

The key publics addressed by relationship management programs in public relations are media, employees, the financial community, government, and the general public. (True; moderate; p. 509; LO1) 81.

The area that focuses on developing media contacts (i.e., knowing who in the media might be interested in the organization’s story) is called external relations. (False; moderate; p. 509; LO3; AACSB Communication) 82.

Corporate communication programs with government and with the public on issues related to government and regulation are called public affairs. (True; moderate; p. 510; LO1; AACSB Communication) 83.

When companies associate themselves with a good cause, providing assistance as well as financial support, the practice is called public service marketing. (False; moderate; p. 510; LO1; AACSB Ethical Reasoning) 84. Reputation is earned based on what you say you do, not necessarily what you do. (False; moderate; p. 508; LO1)

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85.

The key to crisis management is to anticipate the possibility of a disaster and plan how to deal with the bad news and all the affected publics. (True; easy; pp. 511-512; LO1) 86.

An effective crisis plan should outline who contacts the various stakeholders who might be affected, who speaks to the media, and who sets up and runs an onsite disaster management center. (True; moderate; p. 512; LO1) 87.

The key to effective crisis management is to put the blame on the responsible party as soon as possible. (False; moderate; p. 512; LO1) 88.

Although public relations can enhance a company’s credibility, it really has no role in supporting IMC efforts that focus on a product’s sales. (False; moderate; p. 516-517; LO2; AACSB Communication 89. Public communication campaigns can be used to discourage behavior. (True; moderate; p. 512; LO1; AACSB Ethical Reasoning) 90.

A public relations audit assesses the internal and external public relations environment that affects the organization’s audiences, objectives, competitors, and past results. (False; moderate; p. 514; LO2; AACSB Analytic Skills) 91. A communication audit is necessary before beginning any public relations effort. (False; moderate; p. 514; LO2; AACSB Analytic Skills) 92.

A gap analysis is used to identify baselines from previous audits or audits of other related companies and industries so there is a point of comparison. (False; moderate; p. 514; LO2; AACSB Analytic Skills) 93.

Public relations objectives are designed to make changes in the public’s knowledge, attitudes, and behaviors related to a company. (True; easy; p. 515; LO2; AACSB Analytic Skills)) 94.

Change-agent programs have the primary goal of changing behavior of internal publics, such as employees, or external publics, such as consumers. (False; moderate; p. 515; LO2; AACSB Analytic Skills)) 95.

In most companies, advertising and public relations are integrated, coordinated functions. (False; moderate; p. 517; LO3)

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96.

The public relations practitioner has many tools, which can be divided into two categories: planned and unplanned. (False; moderate; p. 517; LO3) 97.

An ad prepared for use in a company’s own publication or programming is known as a corporate ad. (False; moderate; p. 517; LO3; AACSB Communication) 98.

Public service announcements run free of charge on television or radio or in print media. (True; moderate; p. 518; LO3; AACSB Ethical Reasoning) 99. Advocacy advertising refers to point-of-view messages used by companies. (True; moderate; p. 520; LO3; AACSB Ethical Reasoning) 100. News releases must be written the same for each medium to maintain consistency. (False; difficult; p. 520; LO3; AACSB Communication) 101.

A press conference is useful because a company can control who is present as well as the questions that will be asked. (False; moderate; p. 522; LO3; AACSB Communication) 102.

The Federal Trade Commission (FTC) requires that each publicly held company publish an annual report. (False; moderate; p. 522; LO3) 103.

To facilitate external marketing with a local community, town hall forums are sometimes used. (False; moderate; p. 524; LO3) 104.

The Internet has posed more problems than opportunities for public relations practitioners. (False; difficult; p. 525; LO3; AACSB Use of IT 105.

Public relations practitioners track the impact of a campaign in terms of reach and frequency. (False; moderate; p. 528; LO4; AACSB Analytic Skills)

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GENERAL CONTENT: ESSAY QUESTIONS 106.

Compare and contrast public relations and advertising. Answer:

The goal of public relations specialists is communicating with various stakeholders, managing the organization’s image and reputation, and creating positive public attitudes and goodwill toward the organization. Ultimately, the difference between advertising and public relations is that public relations takes a longer, broader view of the importance of image and reputation as a corporate competitive asset and addresses a greater number of target audiences. Public relations and advertising also differ in how they use the media, the level of control they have over message delivery, and their perceived credibility: (1) Media Use—Instead of purchased time and space, public relations people seek to persuade media gatekeepers to carry stories about their company. This aspect of public relations is called publicity and carries no direct media costs. (2) Control—The public relations strategist is at the mercy of the media gatekeeper as there is no guarantee that all or even part of a story will appear. There is also the risk that the story may be rewritten or reorganized by an editor so that it no longer means what the strategist intended. In contrast, advertising runs exactly as the client who paid for it has approved, and it will run as scheduled. (3) Credibility—The public tends to trust the media more than they do advertisers. This consumer tendency is called the implied third-party endorsement factor. (moderate; p. 508; LO1; AACSB Communication)

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107.

Explain the key publics addressed by relationship programs in public relations. Answer:

The key publics addressed by relationship programs in public relations are: (1) Media Relations—Focuses on developing media contacts. (2) Employee Relations—Communicate information to employees. A related program is called internal marketing, which is communication efforts aimed at informing employees about marketing programs and encouraging their support. (3) Financial Relations—Communication efforts aimed at the financial community, such as press releases sent to business publications, meetings with investors and analysts, and the annual report. (4) Public Affairs—Corporate communication programs with government and with the public on issues related to government and regulation. This area also includes lobbying, where the company provides information to legislators in order to get their support and vote on a particular bill. It also includes issue management, which includes communication efforts with consumer or activist groups who seek to influence government policies. (5) Fund-raising—The practice of raising money by collecting donations. (6) Cause Marketing—Companies associate themselves with a good cause, providing assistance as well as financial support. (difficult; pp. 509; LO1; AACSB Reflective Thinking) 108.

Name and describe the two categories into which public relations tools can be divided. Answer:

Public relations tools can be divided into two categories: controlled media and uncontrolled media. More specifically: (1) Controlled Media—Includes house ads, public service announcements, corporate advertising, in-house publications, and visual presentations. The sponsoring organizations pay for these media. In turn, the sponsor maintains total control over how and when the message is delivered. (2) Uncontrolled Media—Includes press releases, press conferences, and media tours. The most recent new media are electronic, and they can be categorized as semicontrolled. (moderate; p. 517; LO2; AACSB Reflective Thinking)

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109.

Discuss how advertising is used as a public relations tool. Answer:

Public relations programs sometimes employ advertising as a way to create corporate visibility or increase its goodwill with its various stakeholder audiences. The primary uses of advertising are house ads, public service announcements, and corporate advertising. (1) House Ads—An ad for use in its own publication or programming. (2) Public Service Announcement—Ads for charitable or civic organizations that run free of charge on television or radio or in print media. These ads are prepared just like other ads, and in most instances ad agencies donate their expertise and media donate time and space to run the ads. (3) Corporate Advertising—A company focuses on its corporate image or viewpoint. There is less emphasis on selling a particular product unless it is tied in to a good cause. Corporate identity advertising is another type of advertising that firms use to enhance or maintain their reputation among specific audiences or to establish a level of awareness of the company’s name and the nature of its business. Sometimes companies deliver pointof-view messages called advocacy advertising. (moderate; p. 517-518; LO2; AACSB Reflective Thinking) 110.

Name and describe the various forms of publicity used in public relations. Answer: The major forms of publicity include: (1) News Releases—The primary medium used to deliver public relations messages to the various external media. Although the company distributing the news release controls its original form and content, the media decide what to present and how to present it, so this form of publicity is uncontrolled by the originating company. The decision to use any part of a news release at all is based on an editor’s judgment of its news value, which is based on such things as timeliness, proximity, impact, or human interest. News releases must be written differently for each medium, accommodating space and time limitations. Video news releases (VNRs) contain video footage for a television newscast. (2) Pitch Letters—Ideas for feature stores, which are human-interest stories rather than hard news announcement that have to be “sold” to editors, and the way this is done is through pitch letters. These letters outline the subject in an engaging way to sell a story idea. (3) Press Conference—An event at which a company spokesperson makes a statement to media representatives; it is one of the riskiest public relations activities because the media may not see the company’s announcement as being real news. There’s no guarantee that the press will show up or that they will ask the right questions. They might also ask questions the

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company cannot or does not want to answer. To anticipate some of these problems, companies may issue a media kit, usually a folder that provides all the important background information to members of the press either before or when they arrive at the press conference. The risk, however, is that by providing this information, the press conference itself becomes unnecessary. (4) Media Tours—A press conference on wheels. The traveling spokesperson makes announcements and speeches, holds press conferences to explain a promotional effort, and offers interviews. (moderate; pp. 520-522; LO3; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

What was the issue in the GE Ecomagination campaign described in the chapter’s opening vignette? a. drug use b. drunk driving c. green strategy d. domestic violence e. AIDS (c; easy; p. 506) 112.

What was the strategy used to convince the publics that the green strategy makes sense for the corporation and the people that it serves as described in the chapter’s opening vignette? a. corporate advocacy advertising b. integrated marketing campaign c. issue management campaign d. media relations campaign e. public affairs campaign (b; moderate; p. 506) 113.

Marty is an employee of Chevron/Texaco oil company. In terms of public relations, what term below best describes him? a. public b. influencer c. decision-maker d. stakeholder e. opinion leader (d; moderate; p. 509; LO1; AACSB Reflective Thinking)

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114.

Ralph Nader has been an outspoken consumer activist for many years, and several organizations target him and his organizations to influence public opinion. In terms of public relations, Mr. Nader is considered a(n) ________ because he is an important person who influences the opinions of others. a. opinion leader b. advocacy advertiser c. gatekeeper d. third-party endorser e. lobbyist (a; moderate; p. 507; LO1; AACSB Reflective Thinking) As described in “A Matter of Practice,” what was the purpose of the MacWorld Expo scheduled by Steve Jobs? a. to announce the iPhone b. to oppose the Consumer Electronics Show c. to encourage tourists to come to San Francisco d. to influence consumers to buy an iMac e. to avoid attending the Industrial Computer Meeting (a; moderate; p. 523) 115.

116.

Ian works in the public relations function in his company, and whenever he wants exposure for some aspect of his company, he contacts people he knows, such as Lisa, a reporter for the local newspaper, or Anthony, Melissa, and Stephanie at the local television stations. He has worked hard to develop these media contacts, and this relationship management program in public relations is known as ________. a. external relations b. media relations c. public affairs d. corporate relations e. reputation management (b; moderate; p. 509; LO1; AACSB Reflective Thinking) 117.

Melanie works in the public relations department at a major university, and she is the editor of an internal newspaper, called Update, that is distributed to all faculty and staff working at the university. The newspaper covers stories about what faculty are doing, grants and awards won by employees, as well as important information regarding human resource issues, such as open enrollment information for optional insurance selections. What type of public relations program does this illustrate? a. employee affairs b. corporate relations c. internal relations d. employee relations e. house communications (d; moderate; p. 509; LO1; AACSB Reflective Thinking)

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118.

Procter & Gamble is a major consumer packaged goods manufacturer, who for years has supported the Special Olympics. They feature the athletes in several of their advertisements and provide assistance and financial support for the event. P&G’s employees assist in the Special Olympics every year. What type of relationship management program is this? a. public affairs b. corporate relations c. media relations d. employee relations e. cause marketing (e; moderate; p. 510; LO1; AACSB Ethical Reasoning) 119.

Which of the following is NOT a skill required for public relations managers or public affairs specialists as presented in the text? a. knowledge of how public relations and public affairs support business goals b. global perspective c. the ability to take everyone seriously d. the ability to integrate all communication functions e. an aptitude for information technology (c; difficult; p. 510; LO1; AACSB Reflective Thinking) 120.

Before revising or developing a new public relations campaign for a new client, Damali is conducting a formal type of background research to assess the internal and external public relations environment that affects the organization’s audiences, objectives, competitors, and past results. She is doing this to ensure that the current campaign is on track and performing as intended. What does this scenario illustrate? a. communication audit b. SWOT analysis c. gap analysis d. situation analysis e. evaluation audit (a; moderate; p. 514; LO2; AACSB Reflective Thinking) Jeep hosts an annual “Jeep Weekend” event in which current Jeep owners are invited to attend a weekend adventure with fellow Jeep owners. The purpose of this public relations tactic is to intensify Jeep owners’ involvement with their vehicle and brand and is known as a(n) ________. a. change-agent strategy b. involvement strategy c. stakeholder strategy d. public communication campaign e. customer-relations strategy (b; moderate; p. 515; LO2; AACSB Reflective Thinking) 121.

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122.

Benetton has often used ads that send a social message, such as showing AIDS victims dying or featuring death row inmates, to make people aware of these issues. What type of advertising is this? a. advocacy advertising b. brand advertising c. retail advertising d. controversial advertising e. cause advertising (a; moderate; p. 520; LO1; AACSB Ethical Reasoning) 123.

Which of the following is a tip given regarding how to write e-mail pitch letters given in the “Practical Tips” box? a. be sure to list all recipients in the “To:” line b. include attachments whenever possible to ensure the media receives complete information c. always follow up on an e-mail pitch by asking, “Did you get it?” d. make it personal e. all of the above (d; difficult; p. 522; LO1; AACSB Reflective Thinking) As described in the chapter’s opening and closing vignettes, who was the target audience for the GE's Ecomagination campaign? a. tree huggers and mountain bikers b. New Yorkers, shareholders and employees c. customers, prospects, shareholders, employees, and media d. Families with young children e. Consumers who buy hybrid cars (c; moderate; p. 506) 124.

125.

As described in the chapter’s opening and closing vignettes, which of the following was an objective of GE's Ecomagination campaign? a. maximize media exposure for the GE executives b. change people's eating habits c. inspire action d. generate collective concern e. convince customers and other publics that the green strategy makes sense (e; easy; p. 506) As described in the “Matter of Principle” case what was the objective of the "Shared Values Initiative"? a. raise awareness of Colin Powell b. improve the image of the U.S.A. around the world c. promote the values of African-Americans in the western U.S.A. d. boost the confidence of citizens of the U.S.A. e. promote the U.S. Marines (b; difficult; p. 513) 126.

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APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Wendy’s fast food restaurant recently had a situation where a woman found a fingertip in her bowl of chili. Of course, customers were disgusted and sales of that particular Wendy’s and Wendy’s outlets nationwide went down. Fortunately for Wendy’s, though, it was discovered weeks later that the accuser has a history of filing lawsuits against businesses, and the owner of the lost digit turned out to be a co-worker of the woman’s husband. The Wendy’s location in which this incident occurred has received very favorable exposure in the local media once it was learned that they were victimized by this crime. 127.

Mini-Case Question. Immediately following this individual’s claim of finding a finger in her chili, which public relations program would be most valuable to Wendy’s? a. corporate reputation management b. crisis management c. marketing public relations d. public communication campaigns e. public service announcements (b; moderate; p. 512; LO1; AACSB Reflective Thinking) 128.

Mini-Case Question. Now that the culprit has been found, which public relations program is most relevant to Wendy’s? a. public affairs b. cause marketing c. reputation management d. public communications campaigns e. marketing public relations (c; difficult; pp. 510-511; LO1; AACSB Reflective Thinking) 129.

Mini-Case Question. The local Wendy’s franchise is a good corporate citizen, and the owners of that particular franchise had fostered relationships with local media contacts. What type of relationship management program focuses on developing media contacts? a. public affairs b. issue management c. corporate relations d. media relations e. town hall forums (d; moderate; p. 509; LO1; AACSB Reflective Thinking)

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130.

Mini-Case Question. To help rebuild Wendy’s reputation, the corporate office encourages franchisees to support local organizations in their communities, such as charities and schools. The practice of companies associating themselves with a good cause, providing assistance as well as financial support is known as ________. a. public affairs b. marketing public relations c. cause marketing d. fund-raising e. media relations (c; moderate; p. 510; LO1; AACSB Ethical Reasoning)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

Describe the problem GE faced with its Ecomagination campaign and the strategy they used as described in the chapter’s opening vignette. Answer:

The problem of the campaign was to convince customers, prospects, shareholders, employees, and the media that the green strategy makes sense for the corporation and the people it serves. The tactics of the campaign included online and broadcast TV commercials, events, employee engagement, and online games. (moderate; p. 506) 132.

Southern Company is a power company conglomerate in the southern United States and operates several power plants throughout the region, a few of them nuclear power plants. Needless to say, the public is concerned with emissions in the air surrounding these plants. Explain what public opinion means and discuss what questions the public relations specialists at Southern Company must understand about public opinion before deciding on an appropriate campaign. Answer:

Public opinion, the label describing what a group of people think, is a belief that people hold about an event, person, institution, or product that is not necessarily based on fact. The public relations strategist researches the answers to two primary questions: (1) Which publics are most important to the organization, now and in the future? (2) What do these publics think? Particular emphasis falls on understanding the role of opinion leaders, who are important people who influence the opinions of others. (moderate; p. 510; LO1; AACSB Reflective Thinking)

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133.

In difficult economic times, the public relations budget is the most likely to suffer more severe cuts than other functions of an organization. Jill is the director of her company’s public relations department, and she had to convince her superiors that her department’s function produces tangible results. To them, concepts such as goodwill, image, and reputation are just “warm fuzzies.” What should Jill say to help them appreciate the importance of these concepts? Answer:

Reputation is based on goodwill, trust, and integrity. Public goodwill is the greatest asset any organization can have. A well-informed public with a positive attitude toward an organization is critical to the organization’s survival—and that is why creating goodwill is the primary goal of most public relations programs. A public relations program that is tuned to creating goodwill operates as the conscience of the organization. The trust on which goodwill is based comes from corporate integrity. Image is a perception based on messages delivered by advertising and other marketing communication tools. Reputation, however, is based on an organization’s actual behavior. Image mirrors what the company says about itself, but reputation reflects what other people say about the company. A major tool of public relations is corporate reputation management. (moderate; p. 507; LO1; AACSB Reflective Thinking) 134.

As described in “A Matter of Principle,” what was the message and the media of the "Shared Values Initiative" campaign? Answer:

The "Shared Values Initiative" campaign featured five 2-minute testimonial “mini-documentaries” about American Muslims living comfortable and prosperous lives in the United States. There were also newspaper ads, a Web site, a radio version of the TV spots and a four-color magazine called Muslim Life in America. (moderate; p. 513)

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135.

Armstrong Williams is a conservative African American talk show radio host. He was very supportive of President Bush’s “No Child Left Behind” legislation. Some people changed their opinion after hearing Armstrong support it even though they weren’t influenced by the ads they saw regarding this issue. However, it was later revealed (after the bill became law) that Mr. Williams was paid hundreds of thousands of dollars to “talk up” the bill without his audience knowing that he had been paid for it. Why do you think supporters of this bill wanted him to support it but not let his audience know he was being paid to do so, and what are the ramifications of these actions? Answer:

The public tends to trust the media more than they do advertisers. This consumer tendency is called the implied third-party endorsement factor. However, his credibility and the credibility of the supporters of this bill are likely to suffer from this action, and credibility is a major point of distinction between advertising and public relations. (difficult; p. 508; LO1; AACSB Reflective Thinking) 136.

Do you think you have what it takes to work in public relations or public affairs? List five of the required skills for public relations managers or public affairs specialists that were given in the text. Answer:

Students can list any five of the following: (1) Knowledge of how public relations and public affairs support business goals (2) A knack for discerning which opponents to take seriously (3) The ability to integrate all communication functions (4) An understanding of how to control key messages (5) The ability to have influence without being too partisan (6) A talent for synthesizing, filtering, and validating information (7) An aptitude for information technology (8) A global perspective (moderate; p. 510; LO1; AACSB Reflective Thinking)

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137.

You’ve just started working at a business as the public relations director. This business markets several consumer products, and you were very upset to learn that your company does not have a crisis management plan, so you are going to develop one. What should you include in the plan, and how will you get employees to know what to do in the event of a crisis? Answer:

An effective crisis plan outlines who contacts the various stakeholders who might be affected (employees, customers, suppliers, civic and community leaders, government agencies), who speaks to the news media, and who sets up and runs an onsite disaster-management center. You should conduct unannounced crisis training during which staff must drop everything and deal with a simulated crisis as it unfolds. (easy; p. 512; LO1; AACSB Reflective Thinking 138.

You’re not sure what major to decide on because you like advertising and you like public relations. However, there is an area where these two disciplines overlap. Name and describe this public relations tool. Answer:

One area where advertising and public relations overlap is marketing public relations (MPR), which is the process of planning and delivering programs that encourage sales and contribute to customer satisfaction by providing communication that addresses the needs and wants of consumers. It is different from a more general public relations approach in its consumer and sales focus. However, the need to establish a credibility platform is similar in both: that’s what PR brings to marketing and is PR’s greatest strength in an IMC program. In other words, MPR supports marketing’s product and sales focus by increasing brand credibility and the company’s credibility with consumers. (moderate; p. 512; LO1; AACSB Reflective Thinking)

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139.

Angela is starting the planning phase of a public relations campaign for a client. Explain where she should start. Answer:

Planning for a public relations campaign is similar to planning an advertising campaign. The plan should complement the marketing and advertising strategies so the organization communicates with one clear voice to its various publics. The process starts with research and a SWOT analysis. The PR effort may also begin with a more formal type of background research, called a communication audit, to assess the internal and external PR environment that affects the organization’s audiences, objectives, competitors, and past results. An annual audit or a campaign-specific audit can be used to ensure that a program is on track and performing as intended. Often benchmarking is used to identify baselines from previous audits or audits of other related companies and industries so there is a point of comparison. A gap analysis, which measures the differences in perceptions and attitudes between groups or between the organization and its publics, may be part of the analysis. (moderate; p. 514; LO1; AACSB Reflective Thinking) 140.

Home Depot supports its employees who have Olympic aspirations, and it looks as though a few more employees could possibly be attending the next Olympics. However, to get to that point, these athletes must train and compete in the world arena. You are tasked with writing a feature story about the dedication of these athletes and, of course, Home Depot’s support of their efforts. You hope to get the editor of Readers’ Digest to publish this story, but you will be targeting other publications as well. Explain how feature stories are used in public relations and give five tips that were given in the “Practical Tips” box for writing an e-mail pitch letter. Answer: Ideas for feature stories, which are human-interest stories rather than hard news announcements, have to be “sold” to editors. This is done using a pitch letter that outlines the subject in an engaging way and sells a story idea, and these letters are often sent to editors via e-mail. Students can answer any five of the following “Practical Tips” on how to write e-mail pitch letters: (1) Never list all recipients in the “To:” line because no one wants to see all the others who received the pitch, because these story ideas are supposed to be made available to the medium on an exclusive basis. (2) Avoid attachments as they take time to open and to read, and they can also carry viruses. (3) Keep your pitches less than a page in length, and the first paragraph should capture the who, what, and why of the story.

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(4)

Help reporters do their jobs by providing them with a great story idea, including visuals and other resources, and with contacts, so they can round out the story. (5) Make it personal by using their first names and mention the publication name. (6) Keep subject-line headers to fewer than four or five words. (7) Never follow up on an e-mail pitch by asking, “Did you get it?” Instead, call to ask reporters if they need more information and call within an hour after sending the e-mail). (moderate; p. 522; LO1; AACSB Reflective Thinking) 141.

Melanie was informed that she will be participating in a media tour for her company for the next three weeks. Explain what this is and the activities that she might be performing. Answer:

A media tour is a press conference on wheels. The traveling spokesperson makes announcements and speeches, holds press conferences to explain a promotional effort, and offers interviews. (easy; p. 522; LO1; AACSB Reflective Thinking) 142.

Although advertising, publicity, and publications, such as annual reports and collateral material, are well-known tools of public relations, list some other, lesser-known yet effective, public relations tools. Answer:

The other types of public relations tool include: (1) DVDs, CDs, Podcasts, Books, and Online Video (2) Speakers and Photos (3) Displays and Exhibits (4) Special Events and Tours (5) Online Communication (moderate; pp. 524-525; LO1; AACSB Reflective Thinking) 143.

As described in the “Matter of Principle” case what was the objective of the "Shared Values Initiative"? Answer: After the 9/11 attacks America's image was declining abroad. The U.S. State department launched its first integrated marketing campaign targeted to the Muslim world designed to improve the image of the U.S. around the world. The TV spots ran in countries with large Muslim populations: Kuwait, Malaysia, Pakistan, and Indonesia on the Pan-Arab satellite.

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(moderate; p. 513) 144.

Kimberly has planned and developed a public relations campaign for her client. Explain how she might assess the effectiveness of this campaign. Answer:

Public relations practitioners track the impact of a campaign in terms of output (how many news releases lead to stories or mentions in news stories) and outcome (attitude or behavior change). To get a comprehensive picture of PR’s impact, practitioners evaluate process (what goes out) and outcome (media use; effect on the target audience). Impressions, which is the number of times a person in the target audience is reached by one or more of the messages, is often a measure used. (moderate; p. 528; LO1; AACSB Reflective Thinking) 145.

As described in the chapter’s “It’s a Wrap,” was the GE Ecomagination campaign successful? Explain your answer. Answer:

Yes, the campaign was successful: (1) Forty-five new products developed generating $13 million in revenue for 2007. (2) Won a 2006 Silver Effie and GE was named Technology Leader of the Year by Industry Week. (3) The consumers liked the commercials and helped spread the goodwill of the company by sending links to friends. (difficult; p. 528) 146.

As described in the chapter’s opening and closing vignettes, how were online tools used in the GE's Ecomagination campaign? Answer:

Campaign tactics include online commercials and an entertaining microsite that explains ecomagination. Visitors to the site can play interactive online games like Washer derby and Harness the Wind. Calculators let consumers figure out energy savings and the effects of green products on the environment. (moderate; p. 506)

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APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Kellogg’s is a well-known manufacturer of breakfast cereals along with several other products, such as Pop-Tarts, Eggo waffles, and fruit snacks. They have used Tony the Tiger on their Frosted Flakes box and promotional efforts for years. In fact, when Tony turned 50 years old, Kellogg’s staged a big event in Michigan, which is where the cereal is produced, to celebrate. They also took the party on the road for the month traveling to 30 cities in a bus painted with Tony on it and offering fun activities for families. Also, during that month, the price of the cereal was lowered to what the price was 50 years ago when they first started selling it. The event received considerable media exposure (e.g., a feature story about Tony in USA Today newspaper) due to the successful public relations effort supporting the brand. Additionally, kids can go to Kellogs.com and click on “FunK-Town” and play games with Kellogg’s breakfast cereal characters such as Tony the Tiger. During the month of his birthday celebration, there was a special game where kids could help Tony find his birthday presents. Although anyone could play a game with Tony, game pieces were placed in specially marked boxes in which kids could participate in the game at a higher level and win prizes. 147.

Mini-Case Question. In general, who are potential targets for Kellogg’s public relations efforts? Answer:

Public relations is focused on all the relationships that an organization has with its various publics. By publics, we mean all the groups of people with which a company or organization interacts: employees, media, community groups, shareholders, and so forth. Another term for this is stakeholders, which refers more specifically to people who have a stake (financial or otherwise) in a company or organization. (moderate; p. 509; LO1; AACSB Reflective Thinking) 148.

Mini-Case Question. Name the types of public relations programs, and explain what type of public relations tool Tony the Tiger’s birthday celebration illustrates. Answer:

The types of public relations programs are: relationship management programs (i.e., media relations, employee relations, public affairs, fund-raising, and cause marketing), corporate reputation management, crisis management, marketing public relations, and public communication campaigns. Tony’s birthday celebration represents marketing public relations (MPR), which are programs that encourage sales and contribute to customer satisfaction by providing communication that addresses the needs and wants of consumers. MPR is different from a more general public relations approach in its consumer and sales focus. (moderate; pp. 509-513; LO1; AACSB Reflective Thinking)

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149.

Mini-Case Question. Name the public relations tools and describe which one(s) allowed them to get the media exposure that they did for Tony’s birthday celebration? Answer:

The public relations tools include: advertising, publicity, publications, DVDs, CDs, books and online videos, speakers and photos, displays and exhibits, special events and tours, and online communications. The celebration itself is an example of a special event and the tour, and the exposure that they received was a result of publicity. (moderate; pp. 517-526; LO3; AACSB Reflective Thinking) 150.

Mini-Case Question. What type of public relations tool does the game at Kellogs.com represent? Answer:

This is an example of the public relations tool known as Online Communications, specifically an external communication of a corporate web site. Corporate web sites have become an important part of corporate communications as these sites can present information about the company and open up avenues for stakeholders to contact the company. Though not a specific public relations tool, the game could be viewed as an involvement strategy. Involvement can create interest and a feeling of excitement, but more importantly it can drive loyalty. Getting people to participate in an action plan is one way to drive behavior change. Note: students will probably also mention that this is an example of sales promotion, which is the topic of the previous chapter. (moderate; pp. 525-526; LO3; AACSB Use of IT)

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GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

___________ is about selling (the company’s viewpoint), but also it is about shopping (the consumer’s viewpoint). a. Local advertising b. Retail marketing c. Retail advertising d. Advertising e. Location (b; moderate; p. 537; LO1) 2.

Which type of advertising can occur on local, national, and international levels, but is mostly local and targeted at consumers who live close by? a. retail advertising b. business-to-business advertising c. institutional advertising d. nonprofit advertising e. short-range advertising (a; easy; p. 540; LO1) 3.

Advertising targeted at consumers who live close to a retail store is known as ___________. a. end-user advertising b. limited advertising c. short-range advertising d. local advertising e. business-to-consumer advertising (d; moderate; p. 537; LO1) 4.

Which type of advertising accounts for nearly half of all the money spent on advertising? a. retail advertising b. international advertising c. nonprofit advertising d. business-to-business advertising e. directory advertising (a; moderate; p. 537; LO1)

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Which of the following types of organizations use retail advertising? a. locally owned stores b. service businesses c. local branches of retail store chains d. franchised retail businesses e. all of the above (e; easy; p. 537; LO1; AACSB Analytic Skills) 6.

The first strategic consideration in retail advertising is ___________. a. image b. demographics c. geography d. psychographics e. cost (c; moderate; p. 539; LO1; AACSB Communication) 7.

Which of the following is NOT an objective of retail advertising? a. motivate the retail sales force b. build store brand awareness c. deliver sales promotion messages d. establish a store brand that resonates with the local audience e. sell a variety of products and brands by creating consumer understanding of items or services offered (a; moderate; p. 537; LO1; AACSB Communication) 8.

What is the primary objective of retail advertising? a. build store traffic b. build store brand awareness c. deliver sales promotion messages d. establish a store brand that resonates with the local audience e. sell a variety of products and brands by creating consumer understanding of items or services offered (a; difficult; p. 537; LO1; AACSB Communication) 9.

Which of the following is NOT a reason given in the text why someone would shop in a store? a. store's personnel b. store's location c. store's pricing policy d. store's products e. store's size (c; moderate; p. 539; LO1; AACSB Communication)

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10.

Direct mail, a type of _______, provides sales leads, and lays the groundwork for subsequent sales calls. a. general business b. directory c. the web d. B2B direct marketing e. vertical (d; moderate; p. 544; LO2; AACSB Communication) 11.

One way local retailers can compensate for their smaller budgets and limited expertise is to take advantage of ________, which is where the national brand reimburses the retailer for part or all of the advertising expenses. a. dual advertising b. co-marketing advertising c. tie-in advertising d. category management e. cooperative advertising (e; moderate; p. 539; LO1) 12.

Co-op funds are also known as ________. a. ad allowances b. dealer loaders c. tie-ins d. co-expenses e. ad reimbursements (a; moderate; p. 539; LO1; AACSB Communication) 13.

What are the two general types of retail advertising? a. local and national b. institutional and product promotion c. promotional and nonpromotional d. institutional and local e. image-oriented and sales-oriented (b; moderate; p. 541; LO1; AACSB Communication) 14.

________ retail advertising is image advertising that sells the retail store as a brand. a. Institutional b. National c. Nonpromotional d. Nonproduct e. Nonbrand (a; moderate; p. 541; LO1; AACSB Communication)

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15.

________ retail advertising presents specific merchandise for sale at a certain price and urges customers to come to the store and buy it. a. Institutional b. Brand c. Product d. Short-term e. Short-range (c; moderate; p. 539; LO1; AACSB Communication) 16.

Companies use _______ as a key medium. Company sites allow business clients to view product lists, place orders, check prices and availability. a. general business b. directory c. the web d. B2B direct marketing e. vertical (c; moderate; p. 544; LO2; AACSB Use of IT) 17.

Every state has an industrial _______ such as the New York-based Thomas Register listing industrial companies. a. general business b. directory c. the web d. B2B direct marketing e. vertical (b; moderate; p. 544; LO2) 18.

Time left at the end of a radio or television spot or space left at the bottom of print materials where the local store is mentioned is known as a ________. a. promotional spot b. dealer tag c. name tag d. free tag e. identification tag (b; moderate; p. 540; LO1; AACSB Communication) 19.

Which television production format includes making the opening and closing sections the same, while the middle changes to focus on different merchandise or different stores? a. donut format b. split-and-bookend format c. dual-message format d. beginning-middle-end format e. storyline (a; moderate; p. 541; LO1; AACSB Communication)

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20.

Who creates and produces retail advertising? a. local media b. in-house staff c. ad agencies d. freelancers e. all of the above (e; moderate; p. 540; LO1; AACSB Communication) 21.

Which of the following statements is false regarding creation of the retail ad? a. The larger the retail operation, the more likely it is to have an in-house advertising staff. b. Television spots are created by advertising agencies because most television stations will not provide this service for advertisers. c. All local media create and produce ads for retailers. d. Generally, outside agency work is the most costly way to produce retail ads on a regular basis. e. Because agencies work for many different clients, they cannot always respond as quickly as an in-house agency can. (b; difficult; p. 540; LO1; AACSB Communication) 22.

Local retailers generally prefer ________ over ________. a. promotional advertising; nonpromotional advertising b. nonpromotional advertising; promotional advertising c. reach; frequency d. frequency; reach e. institutional retail advertising; product retail advertising (c; difficult; p. 541; LO1) 23.

Which is the advertising medium used most by retailers? a. newspapers b. magazines c. radio d. outdoor e. direct mail (a; moderate; p. 541; LO1; AACSB Communication) 24.

Free-distribution newspapers are dropped known as ________. a. supplements b. co-ops c. vendor support programs d. shoppers e. weeklies (d; moderate; p. 541; LO1)

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25.

________ are advertising circulars furnished by a retailer for distribution as a free-standing insert in newspapers. a. Preprints b. Shoppers c. Co-ops d. Vendor Support Programs e. Penny Pinchers (a; moderate; p. 541; LO1; AACSB Communication) 26.

Advertising directed at people in businesses that buy or specify products for business use is called ________. a. retail advertising b. local advertising c. brand advertising d. business-to-business advertising e. industrial advertising (d; easy; p. 541; LO2; AACSB Communication 27.

What is the most common method of communicating with business buyers? a. advertising b. sales promotion c. personal selling d. public relations e. direct mail (c; moderate; p. 541; LO2) 28.

A classification system established by the U.S. government to group organizations on the basis of the major activity or product or service provided is known as the ________. a. Business Classification System (BCS) b. North American Industry Classification System (NAICS) c. Business Industrial Classification System (BICS) d. Business-to-Business Identification System (B2BIS) e. Industrial Classification System (ICS) (b; moderate; p. 542; LO2; AACSB Communication) 29.

Which of the following is a type of business-to-business advertising? a. industrial advertising b. government advertising c. trade/channel advertising d. agricultural advertising e. all of the above (e; easy; p. 542; LO2; AACSB Communication)

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30.

Which type of business-to-business advertising is directed at original equipment manufacturers (OEMs)? a. industrial advertising b. government advertising c. trade/channel advertising d. agricultural advertising e. professional advertising (a; moderate; p. 542; LO2; AACSB Communication) 31.

________ is used to persuade distribution channel members, such as resellers, wholesalers, and retailers, to stock the product of the manufacturer. a. Industrial advertising b. Trade advertising c. Retail advertising d. Professional advertising e. Reseller advertising (b; moderate; p. 542; LO2) 32.

Advertising directed at a group of mostly white-collar workers such as lawyers, accountants, technology consultants, doctors, teachers, and advertising and marketing specialists in known as ________. a. industrial advertising b. government advertising c. trade/channel advertising d. agricultural advertising e. professional advertising (e; moderate; p. 542; LO2; AACSB Communication) Advertising by attorneys touting that they “won’t get paid unless you do” is known as which type of business advertising? a. industrial advertising b. trade advertising c. professional advertising d. barrister advertising e. none of the above (e; difficult; p. 542; LO2; AACSB Communication) 33.

34.

Which type of business-to-business advertising promotes a variety of products and services, such as animal health products, seeds, farm machinery and equipment, and fertilizer? a. industrial advertising b. retail advertising c. agricultural advertising d. professional advertising e. government advertising (c; easy; p. 542; LO2; AACSB Communication)

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35.

How does business marketing differ from consumer marketing? a. who buys a product b. what the buying motive is c. how the decision is made d. a and b e. a, b, and c (e; moderate; p. 541; LO2; AACSB Communication) 36.

Which of the following is NOT a purchasing objective of business buyers? a. price b. service c. quality d. name recognition e. assurance of supply (d; moderate; p. 542; LO2; AACSB Communication) 37.

Which of the following is NOT a main objective of business-to-business advertising? a. create awareness b. change attitudes c. create sales leads d. gain consumer acceptance e. reminder (d; moderate; p. 544 [Figure 18.4]; LO2) 38.

Which of the following is NOT a guideline to create effective business-tobusiness ads? a. Don’t use visuals because they detract from the selling message. b. Make sure the ad selects the strongest benefit and presents it prominently and persuasively. c. Dramatize the most important benefit, either by showing the product in action or by visualizing the problem and offering your product or service as a solution. d. The offer must be clear. e. Provide contact information. (a; difficult; pp. 543-544; LO2; AACSB Analytic Skills) 39.

Which of the following is NOT a business-to-business advertising medium? a. general business and trade publications b. directory advertising c. consumer media d. the web e. All of the above are business-to-business advertising media. (e; moderate; p. 544; LO2; AACSB Communication)

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40.

The two classifications of general business and trade publications are ________. a. profit and nonprofit b. top and bottom c. horizontal and vertical d. internal and external e. government and private sector (c; moderate; p. 544; LO2; AACSB Communication) 41.

With respect to general business and trade publications, ________ publications are directed to people who hold similar jobs in different companies across different industries. a. level b. horizontal c. vertical d. multi-industry e. multi-focus (b; moderate; p. 544; LO2; AACSB Communication) 42.

With respect to general business and trade publications, ________ publications are directed to people who hold different positions in a particular industry. a. multi-level b. horizontal c. vertical d. single-industry e. multi-focus (c; moderate; p. 544; LO2) 43.

Which advertising medium generally receives the smallest attention by businessto-business advertisers? a. general business and trade publications b. directory advertising c. consumer media d. the web e. direct marketing (c; difficult; p. 544; LO2; AACSB Communication) 44.

________ refers to the use of marketing programs and marketing communications tools for the good of society. a. Integrity marketing b. Global marketing c. External marketing d. Social marketing e. Stakeholder marketing (d; moderate; p. 546; LO3; AACSB Ethical Reasoning)

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45.

________ means adopting a good cause and sponsoring its fund-raising and other community-oriented efforts. a. Social marketing b. Cause marketing c. Mission marketing d. Nonprofit marketing e. Do-Good marketing (b; moderate; p. 546; LO3; AACSB Ethical Reasoning) 46.

________ links a company’s mission and core values to a cause that connects with the company’s interests. a. Social marketing b. Cause marketing c. Mission marketing d. Nonprofit marketing e. Do-Good marketing (c; moderate; p. 548; LO3; AACSB Ethical Reasoning) 47.

Which of the following is NOT a goal of nonprofit organizations? a. sales b. membership c. donations d. advocacy e. All of the above are goals of nonprofit organizations. (e; moderate; pp.545-546; LO3; AACSB Ethical Reasoning) 48.

A professional specializing in fund-raising is known as a ________. a. advocate b. capital director c. development officer d. fund-raising professional e. fund-raising practitioner (c; moderate; p. 546; LO3; AACSB Ethical Reasoning) 49.

What type of campaign is designed to raise a specified amount of money in a given period of time? a. development campaign b. mission campaign c. social campaign d. corporate campaign e. capital campaign (e; moderate; p. 546; LO3; AACSB Ethical Reasoning)

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50.

________ are undertaken by nonprofit organizations as a conscious effort to influence the thoughts or actions of the public. a. Capital campaigns b. Missions c. Cause marketing campaigns d. Public communication campaigns e. Social marketing campaigns (d; moderate; p. 546; LO3; AACSB Ethical Reasoning) 51.

The biggest and longest-running network of advertising agencies, media, and suppliers that donate their services to create ads and campaigns on behalf of socially important causes is the ________. a. Advertising Partnership b. Advertising Council c. Council of Better Business Bureaus d. Partnership for America e. Advertising Industry Initiative (b; moderate; p. 546; LO3) 52.

Which of the following is a stage of market development in international advertising and marketing communications? a. internationalization b. globalization c. exporting d. a and b e. a, b, and c (e; moderate; p. 548; LO4; AACSB Multicultural and Diversity 53.

Which of the following is the first stage of international market development? a. internationalization b. globalization c. exporting d. importing e. localization (c; moderate; p. 548; LO4; AACSB Multicultural and Diversity) 54.

Protecting the family, honesty, and self-esteem are _______ that cross cultures. a. universal values b. regional concepts c. ubiquitous ideas d. national standards e. worldwide standards (a; moderate; p. 548; LO4; AACSB Multicultural and Diversity)

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55.

Which of the following is NOT considered a universal value according to the text? a. Health and fitness b. Learning c. Rugged individualism d. Freedom e. Knowledge (c; moderate; pp. 548-549; LO4; AACSB Multicultural and Diversity) 56.

Which of the following is NOT a main school of thought on advertising in another country? a. standardization b. semi-standardization c. localization d. combination e. All of the above are main schools of thought on advertising in another country. (b; moderate; p. 550; LO4; AACSB Multicultural and Diversity) 57.

Which school of thought on advertising in another country contends that differences between countries are a matter of degree, so advertisers must instead focus on the similarities of consumers around the world? a. standardization b. semi-standardization c. localization d. combination e. customization (a; moderate; p. 550; LO4; AACSB Multicultural and Diversity) 58.

Which school of thought on advertising in another country argues that advertisers must consider differences among countries, including local culture, stage of economic and industrial development, stage of life cycle, media availability, research availability, and legal restrictions? a. standardization b. semi-standardization c. localization d. combination e. customization (c; moderate; p. 550; LO4; AACSB Multicultural and Diversity)

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59.

The two schools of thought on planning global advertising programs are ________. a. market-orientation model and culture-orientation approach b. standardization approach and localization approach c. short-term approach and long-term approach d. high-context model and low-context model e. centralized approach and decentralized approach (b; moderate; p. 550; LO4; AACSB Multicultural and Diversity) 60.

Which school of thought to planning global advertising programs focus on the similarities of consumers and a consistent brand presentation? a. market share model b. culture-orientation approach c. economic model d. market-orientation model e. standardization (e; moderate; p. 550; LO4; AACSB Multicultural and Diversity) 61.

Which school of thought to planning global advertising programs emphasizes the cultural differences among peoples and nations? a. human model b. localization c. economic model d. market-orientation model e. localized approach (b; moderate; p. 550; LO4; AACSB Multicultural and Diversity 62.

In which type of culture is the meaning of a message understood only when contained within context cues? a. applied-context culture b. basic-context culture c. high-context culture d. low-context culture e. hedonic-based culture (c; moderate; p. 551; LO4) 63.

In which type of culture can the message be understood as it stands? a. applied-context culture b. basic-context culture c. high-context culture d. low-context culture e. hedonic-based culture (d; moderate; p. 551; LO4; AACSB Multicultural and Diversity)

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64.

Which of the following is considered a high-context language? a. English b. Japanese c. German d. Spanish e. all of the above (b; moderate; p. 551; LO4; AACSB Multicultural and Diversity) 65.

The office that develops the approved campaign would be designated the ________ and would develop all the necessary elements of the campaign and prepare a standards manual for use in other countries. a. agency-of-record b. lead agency c. primary agency d. central agency e. head agency (b; moderate; p. 551; LO4; AACSB Multicultural and Diversity) 66.

Which planning approach sometimes has a central campaign idea established but the executions can be developed locally and submitted to headquarters for use globally? a. local initiative b. centrally conceived campaigns c. variations on central campaigns d. top-down creativity e. bottom-up creativity (e; moderate; p. 552; LO4; AACSB Multicultural and Diversity) 67.

Which of the following is NOT a planning approach for creating global campaigns? a. local initiative b. centrally conceived campaigns c. variations on central campaigns d. top-down creativity e. bottom-up creativity (d; moderate; pp. 551-552; LO4; AACSB Multicultural and Diversity)

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68.

Which of the following statements is true regarding planning a global advertising strategy? a. The problem of managing brand consistency is largely responsible for limiting most global marketing objectives to awareness and recall. b. The globalization/localization debate is really about budgeting. c. Research does not have to be conducted in each of the international markets to be entered. d. Consumer buying motivations are basically the same in every country. e. The execution of a global campaign is no more complex than executing a national plan. (a; moderate; p. 550; LO4; AACSB Multicultural and Diversity) 69.

The globalization/localization debate in international advertising is really about ________. a. culture b. economics c. targeting d. branding e. objective setting (c; difficult; p. 552; LO4; AACSB Multicultural and Diversity) 70.

Which of the following is NOT a reason why execution of a global campaign is usually more complex than a national plan? a. The creative may need to be reshot with local models and settings, as well as language. b. Adjustments may need to be made for seasonality. c. Government approval of television commercials can be difficult d. Agencies often are not available to assist the advertiser in executing a global campaign. e. Everything takes longer. (d; moderate; p. 553; LO4; AACSB Multicultural and Diversity)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71. The first strategic consideration in retail advertising is price. (False; moderate; p. 539; LO1) 72. The primary objective of retail advertising is to build store traffic. (True; moderate; p. 537; LO1; AACSB Communication) 73.

B2B direct marketing provides sales leads, and lays the groundwork for subsequent sales calls. (True; moderate; p. 544; LO2; AACSB Communication))

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74.

One way local retailers can compensate for their smaller budgets and limited expertise is to take advantage of national tie-ins, in which the national brand reimburses the retailer for part or all of the advertising expenses. (False; moderate; p. 539; LO1) 75.

Retailers may seek reimbursement for local advertising from suppliers as part of a retailer’s vendor support program. (True; difficult; p. 539; LO1; AACSB Communication) 76.

A dealer tag is the time left at the end of a radio or television spot or space left at the bottom of print materials provided by a manufacturer where the local store is mentioned. (True; moderate; p. 540; LO1; AACSB Communication) 77. All local media create and produce ads for retailers free of charge. (False; moderate; p. 540; LO1; AACSB Communication) 78.

Like national advertisers, local retailers generally prefer frequency over reach with respect to media strategy. (False; difficult; p. 541; LO1; AACSB Communication) 79.

Shoppers are advertising circulars furnished by a retailer for distribution as a freestanding insert in newspapers. (False; moderate; p. 541; LO1) 80.

Advertising directed at people in businesses that buy or specify products for business use is called direct advertising. (False; moderate; p. 541; LO2; AACSB Communication) 81.

Industrial advertising is directed at original equipment manufacturers (OEMs) that purchase industrial goods or services that either become a part of the final product or aid business operations. (True; easy; p. 542; LO2; AACSB Communication) 82.

Types of business markets at which business-to-business advertising is targeted include industrial, government agencies, trade, professional, and agriculture. (True; moderate; p. 543 [Figure 18.3]; LO2; AACSB Communication) 83.

The largest purchasers of industrial goods in the United States are federal, state, and local governments. (True; moderate; p. 542; LO2; AACSB Communication) 84.

Manufacturers use retail advertising targeted to retailers to get them to stock their products. (False; moderate; p. 542; LO2; AACSB Communication)

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85.

Advertising by attorneys, doctors, or other types of professionals directed to consumers is called professional advertising. (False; moderate; p. 542; LO2; AACSB Communication) 86.

Purchasing objectives in business-to-business center on rational, pragmatic considerations such as price, service, quality of the product or service, and assurance of supply. (True; moderate; p. 542; LO2) 87.

Advertising is the primary marketing communication tool used in business-tobusiness marketing. (False; moderate; p. 541; LO2; AACSB Communication) 88.

Business-to-business advertising media include general business and trade publications, directory advertising, consumer media, the web, and direct marketing. (True; moderate; p. 544; LO2; AACSB Communication) 89.

General business and trade publications are classified as either national or regional. (False; moderate; p. 544; LO2; AACSB Communication) 90.

Horizontal general business or trade publications are directed to people who hold similar jobs in different companies across different industries. (True; moderate; p. 544; LO2; AACSB Communication) 91.

Vertical business publications are targeted toward people who hold different positions in a particular industry. (True; moderate; p. 544; LO2) 92. Business-to-business advertising never uses consumer media to deliver ads. (False; moderate; p. 544; LO2; AACSB Communication) 93. The Internet has become a key medium for business-to-business advertisers. (True; moderate; p. 544; LO2; AACSB Communication) 94.

Responsible marketing refers to the use of marketing programs and marketing communication tools for the good of society. (False; moderate; p. 546; LO3; AACSB Ethical Reasoning) 95.

A societal marketing philosophy describes the operations of companies whose corporate mission reflects their desire to do good. (True; moderate; p. 546; LO3; AACSB Ethical Reasoning))

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96.

Cause marketing means adopting a good cause and sponsoring its fund-raising and other community-oriented efforts. (True; moderate; p. 546; LO3; AACSB Ethical Reasoning) 97. Nonprofit organizations have a number of goals, but sales is not one of them. (False; moderate; pp. 545-546; LO3; AACSB Ethical Reasoning) 98.

Public communication campaigns are undertaken by nonprofit organizations as a conscious effort to influence the thoughts or actions of the public. (True; moderate; p. 546 LO3; AACSB Ethical Reasoning) 99.

The globalization of marketing communication is driven by the development of international media and global brands. (True; moderate; p. 548; LO4; AACSB Multicultural and Diversity) 100.

Virtually every product category can be divided into local (or national), regional (trading bloc), and international markets and brands. (True; moderate; p. 548; LO4; AACSB Multicultural and Diversity) 101.

The stages of international market development include internationalization, and globalization. (True; moderate; p. 548; LO4; AACSB Multicultural and Diversity)

exporting,

102.

The localization school of thought in the global versus local debate contends that differences between countries are a matter of degree, so advertisers must instead focus on the similarities of consumers around the world. (False; moderate; p. 550; LO4; AACSB Multicultural and Diversity 103.

Since the Japanese culture is low-context a Japanese word can have multiple meanings. (False; moderate; p. 551; LO4; AACSB Multicultural and Diversity) 104. The United States is considered a high-context culture. (False; moderate; p. 551; LO4; AACSB Multicultural and Diversity) 105. The execution of a global campaign is no more complex than a national plan. (False; moderate; p. 554; LO4; AACSB Multicultural and Diversity)

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GENERAL CONTENT: ESSAY QUESTIONS 106.

Describe the missions of retail advertising. Answer:

The missions of retail advertising are: (1) selling the brand of the retail store. (2) Selling individual branded items the store carries. (moderate; p. 537; LO1; AACSB Analytic Skills) 107.

Name and describe the five types of business-to-business advertising. Answer:

The five types of business-to-business advertising are: (1) Industrial Advertising—Directed at original equipment manufacturers (OEMs) that purchase industrial goods or services that either become a part of the final product or aid business operations. (2) Government Advertising—Federal, state, and local governments. However, few advertisements are targeted directly to government agencies because these purchases are usually made by bids and contracts, and the decision is made on price. (3) Trade/Channel Advertising—Used to persuade distribution channel members, such as resellers, wholesalers, and retailers, to stock the product of the manufacturer. Retailers want information on the profit margins they can expect to receive, the product’s major selling points, and what the producer is doing in terms of consumer advertising and other promotional support activities. (4) Professional Advertising—Directed at a group of mostly white-collar workers such as lawyers, accountants, technology consultants, doctors, teachers, funeral directors, and advertising and marketing specialists. (5) Agricultural Advertising—Promotes a variety of products and services, such as animal health products, seeds, farm machinery and equipment, crop dusting, and fertilizer. (moderate; p. 542; LO2; AACSB Communication)

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108.

Compare and contrast cause marketing and mission marketing marketing. Answer:

Cause marketing means adopting a good cause and sponsoring its fund-raising and other community-oriented efforts. Sometimes called “sales promotion with a PR spin,” cause marketing is described as “doing good things and getting credit for it.” Mission marketing links a company’s mission and core values to a cause that connects with the company’s interests. It is more of a commitment than cause marketing and reflects the long-term brand-building perspective of IMC because the mission becomes the focal point for integrating all the company’s marketing communication. It also unites the entire organization and its stakeholders, particularly its employees, through their commitment to the effort. These are two types of socially responsible marketing that are undertaken by both for-profit and nonprofit organizations. (moderate; pp. 546, 548; LO3; AACSB Ethical Reasoning) 109.

Name the stages of market development for international markets.

Answer: (1) Exporting. (2) Internationalization (3) Globalization. (moderate; p. 548; LO4) 110.

Name and describe the three main schools of thought on advertising in another country.

Answer: The three main schools of thought on advertising in another country are: (1) Standardization—Contends that differences between countries are a matter of degree, so advertisers must instead focus on the similarities of consumers around the world. Product category is important: there are enough similarities in certain categories that their advertising can be largely standardized across borders. (2) Localization (Adaptation)—Argues that advertisers must consider differences among countries, including local culture, stage of economic and industrial development, stage of life cycle, media availability, research availability, and legal restrictions. (3) Combination—Reasons that a combination of standardization and localization may produce the most effective advertising. Some elements of brand identity and strategy, for example, may be standardized, but advertising executions may need to be adapted to the local culture. (moderate; p. 550; LO4; AACSB Multicultural and Diversity)

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APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

Who was the target market of the Colorado Tobacco Education and Prevention Partnership campaign? a. IT professionals b. teens c. mid-level managers d. sales people e. marketing people (b; moderate; p. 547) 112.

Rene is just considering advertising for her gift shop that is located in Memphis, Tennessee. What is the first concern Rene should consider in targeting consumers? a. demographics b. geography c. economics d. psychographics e. life styles (b; moderate; p. 539; LO1) 113.

Retail establishments that sell automobiles, such as Toyota, KFC, and Hertz, are known as which type of retail establishments? a. locally owned stores b. service businesses c. local branches of retail store chains d. dealerships e. franchises (e; moderate; p. 537)

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114.

Ralph has worked in an advertising agency in New York City for 10 years, all of it developing brand advertising for national brands. He decided he wanted to move back to his hometown of Jackson, Mississippi and open his own advertising agency. Because most of his clients will be local retailers, which of the following is NOT a difference between retail and brand advertising that he needs to be aware of. a. Local retail advertising is targeted to people living in the store’s community and is customized to match their particular needs, wants, and culture. b. National brand advertising supports only the advertiser’s brand, while retail advertising may promote several different brands or even competing brands. c. Retail advertising has an inherent urgency. d. Local retail advertising advertises a specific local store or stores and includes contact information such as the store’s address, telephone number, and business hours. e. All of the above are differences between retail and brand advertising. (e; moderate; pp. 537, 539) 115.

Dillard’s is a regional department store, primarily located in the South. Every Sunday, Dillard’s has large ads in the newspaper, but each ad features only one brand per ad. For example, there might an ad for Clinique cosmetics or one for Easy Spirit shoes. Dillard’s sells other brands of these products but features only one in a given ad. They do this because of the agreement they have with the national brand manufacturer (i.e., Clinique) in which the manufacturer will reimburse Dillard’s for the cost of the ad. What is this known as? a. cooperative advertising b. national/local advertising c. dealer loaders d. ad reimbursements e. tie-ins (a; moderate; p. 539; LO1) 116.

Neiman-Marcus is an upscale department store located in large metropolitan areas. This retailer advertises in women’s magazines but doesn’t really give any information about the products they sell. They merely show a beautiful, sexy woman and the words Neiman-Marcus along the bottom of the ad. What type of retail advertising is this? a. long-term retail advertising b. institutional retail advertising c. product retail advertising d. promotional retail advertising e. nonpromotional retail advertising (b; moderate; p. 541; LO1)

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117.

Harriet owns a specialty children’s clothing store in Lakeland, Florida. With her advertising, she wants good geographic coverage of her market area and will most likely use ________ as an advertising medium, which is the medium that has always made up the bulk of retailers’ advertising. a. television b. magazines c. newspaper d. radio e. outdoor billboards (c; difficult; p. 541; LO1) 118.

Laurie loves Sunday mornings because that’s the day the newspaper comes with all the shopping ads. She takes one to two hours to leisurely go through the paper, looking at all the ads first, such as those from Best Buy, Wal-Mart, Lowe’s, and JC Penney’s. These advertising circulars were furnished by the retailers for distribution as a free-standing insert in the newspaper and are called ________. a. shoppers b. blow-ins c. inserts d. preprints e. direct-response advertisements (d; moderate; p. 541; LO1) Howard Computers is targeting hospitals for its new “Medicart” portable computer cart that allows for tracking of medication dispensing right at the patient’s bedside. If Howard wants a list of the publications that purchasing agents in hospitals use so that they know which publications to advertise their product in, which of the following will assist them in finding this information? a. NAICS codes b. census data c. trade directories d. hospital directories e. RADAR codes (a; moderate; p. 542; LO2) 119.

120.

What was the Big Idea of the Colorado Tobacco Education and Prevention Partnership campaign targeting teens? a. Your C is your choice. b. Stop now. c. Light the fire not the cigarette. d. Smell sweet. e. Try freedom. (a; moderate; p. 547)

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121.

An ad for the new edition of this advertising textbook was placed in the Journal of Advertising, which is read by professors teaching this subject and practitioners in the advertising industry. What type of business-to-business advertising is this an example of? a. industrial advertising b. government advertising c. trade/channel advertising d. professional advertising e. agricultural advertising (d; moderate; p. 542; LO2) 122.

Timberland is a well-known manufacturer of rugged shoes and boots as well as other outdoor clothing and equipment. This company is so committed to helping others that that is part of the company’s core values, and it allows its employees a full week paid leave of absence to assist in a cause that is important to them, which is typically a local issue or organization that affects the lives of those living in the community where Timberland operates. The leave is in addition to the regular paid vacation time employees receive. What type of social marketing does this commitment to community service by Timberland illustrate? a. cause marketing b. mission marketing c. capital campaign d. public commitment campaign e. do-good marketing (b; difficult; p. 548; LO3) 123.

Several profit-oriented organizations participated in the Great American Bake Sale that was held to raise funds to end child hunger in the United States. Parade magazine and ABC entertainment helped get the word out about this event, and for them, this represents what type of social marketing program? a. mission marketing b. do-good marketing c. cause marketing d. business-to-business marketing e. promotional marketing (c; moderate; p. 546; LO3) 124. Which of the following was given in the text as a situation in which a standardized advertising strategy should be used? a. when the chance of cultural blunders decreases b. when it is required by law c. when there are many competitors in the foreign markets d. when standardization will lead to savings through economies of scale in advertising production, planning, and control e. when graphic and visual advertising approaches can be used to overcome cultural differences (d; difficult; p. 550; LO4)

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125.

Reach wide audience through mass media; acquire new customers; establish brand image and personality; and define brand position are all _______ objectives for this IMC tool according to the text? a. advertising b. PR c. Sales Promotion d. Point of Purchase e. Packaging (a; difficult; p. 536 [Table 18.1]; AACSB Communication) 126.

Kevin has taken over the international operations of his company. He contends that differences between countries are a matter of degree, so advertisers must instead focus on the similarities of consumers around the world. What school of thought does Kevin subscribe to in approaching advertising across national borders? a. Combination b. Localization c. Standardization d. Adaptation e. Cross-cultural (c; moderate; p. 550; LO4; Multicultural and Diversity)

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE Acme, Inc. is a manufacturer of industrial goods, such as ball bearings, filters, and valves. Acme’s target market is manufacturers who purchase these goods to go into the systems that they manufacture for their customers, such as power plants, heating and cooling systems, and ships. Additionally, even though Acme is not a very large manufacturer and has never sold a product internationally, it intends to go international with a valve for which they recently received a patent and is superior to any offered anywhere in the world. 127.

Mini-Case Question. What type of business-to-business advertising is appropriate for Acme? a. industrial advertising b. government advertising c. trade advertising d. professional advertising e. agricultural advertising (a; moderate; p. 542; LO2; AACSB Reflective Thinking)

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128.

Mini-Case Question. Which of the following is NOT an objective that business customers will focus on? a. price b. service c. quality d. brand name e. assurance of supply (d; moderate; p. 542; LO2; AACSB Reflective Thinking) 129.

Mini-Case Question. What is the first stage in international market development that Acme will most likely pursue to expand into other countries? a. exporting b. internationalization c. globalization d. regionalization e. centralization (a; moderate; p. 548; LO4; AACSB Multicultural and Diversity) 130.

Mini-Case Question. As Acme plans for global marketing communications, which approach or model is most appropriate for their situation, given the type of products they sell? a. local initiative b. cultural-orientation approach c. economic maximization approach d. high context approach e. low-context approach (a; difficult; p. 551; LO4; AACSB Reflective Thinking)

APPLICATION QUESTIONS: SHORT-ANSWER 131.

Who did Honda target with its advertising campaign and what did the market want from an SUV as described in the chapter’s opening vignette? Answer:

The target market for Honda were people who wanted cars with space for people and stuff and minimum off-road capabilities. They wanted the ability to drive on dirt and gravel roads and the benefit of not being stuck in town on heavy snow days. (moderate; p. 533)

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132.

What were the perceptions of the Honda brand as described in the chapter’s opening vignette? Answer:

Honda's brand was seen as high quality, well built and reliable, but also expensive and dull. The brand was actually competitively priced. Another negative was Honda's low awareness although 20 percent of people intending to buy a new SUV strongly considered a Honda (moderate; p. 533) 133.

When Disney releases one of its movies on DVD, print ads and scripts for radio ads are provided to retailers. Retailers are not supposed to alter the ad in any way, or else they will forfeit the co-op reimbursement. On each print ad there is a spot on the bottom of the ad where a retailer can add its store information, and each radio script leaves 10 to 20 seconds for retailers to identify themselves. What is this time or space called? Answer:

It’s called a dealer tag, which is time left at the end of a radio or television spot or space left at the bottom of print materials, where the local store is mentioned. (easy; p. 540; LO1; AACSB Communication) 134.

What was the media used in the campaign of the Colorado's Tobacco Education and Prevention Partnership described in “A Matter of Principle”? Answer:

The integrated campaign used a multilayer approach in the campaign that combined traditional and new media. The interactive Web site was the most important element including a virtual town, discussion boards and downloads. Irreverent TV ads, banner ads, C-ride tour (a small customized truck), mobile marketing, promotional items, quit kits, quit support program, posters. (moderate; 547)

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135.

An ad for WD-40 appeared in a magazine targeted to hardware store retailers and showed end-of-aisle displays for the product. The copy explained how the use of a WD-40 display produces 40 percent higher sales for the retailer. The ad did not tout the benefits of the product, just what the display will do for the retailer’s sales. Included in the ad was a chart of the months when WD-40 ads will appear in consumer magazines as well as the months when promotional allowances are available to retailers. Name and describe this type of advertising.

Answer: This is a type of business-to-business advertising known as trade/channel advertising. Trade advertising is used to persuade distribution channel members, in this case retailers, to stock the products of the manufacturer. Resellers want information on the profit margins they can expect to receive, the product’s major selling points, and what the producer is doing in terms of consumer advertising and other promotional support activities. (moderate; p. 544; LO2; AACSB Reflective Thinking) 136.

What was the objective of the campaign of the Colorado's Tobacco Education and Prevention Partnership described in “A Matter of Principle”?

Answer: The objective of the Colorado's Tobacco Education and Prevention Partnership campaign was to help teens realize that their choices define who they are and who they will become. The campaign should also give teens the information they needed to make informed choices about smoking. (moderate; p. 547) 137.

There were several tips regarding standardization advertising strategy in the text. List three tips for when to use a standardized advertising strategy.

Answer: When to use a standardization advertising strategy (students can list any three): (1) Standardization will lead to savings through economies of scale (advertising production, planning, control). (2) Standardization ensures that advertising messages of a product are complementary and reinforcing. (3) The company maintains control over the image projected by advertising for the brand. (4) Global media create opportunities for global marketing. (5) Converging buyer wants and needs means that buyers everywhere will increasingly want the same products and product benefits. (6) There is little or no competition in many foreign markets. (7) Graphic and visual advertising approaches can be used to overcome cultural differences. (moderate; p. 550; LO4; AACSB Reflective Thinking)

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138.

Marcus is the advertising director of a major international corporation that manufactures skateboard components to skate shops around the world, and his philosophy is that teenagers, who are his products’ target market, are pretty much the same all over the world, especially ones that are passionate about skateboarding. Name and describe the school of thought that he espouses. Answer:

This is the standardization school of thought, which contends that differences between countries are a matter of degree, so advertisers must instead focus on the similarities of consumers around the world. Product category is important: there are enough similarities in certain categories that their advertising can be largely standardized across borders. (moderate; p. 550; LO4; AACSB Multicultural and Diversity) 139.

Mary is the advertising director of a clothing manufacturer that distributes their brand in the United States, Europe and some Asian markets. She observed that women's preferences in clothes differ considerably in different countries. Explain the school of thought Mary holds? Answer:

The school of thought is localization (adaptation)—It argues that advertisers must consider differences among countries, including local culture, stage of economic and industrial development, stage of life cycle, media availability, research availability, and legal restrictions. (difficult; p. 550; LO4; AACSB Multicultural and Diversity) 140.

General Mills is planning on expanding its breakfast cereals to Central and South America. What should they consider when setting the budget and executing the international campaign? Answer: (1)

Setting the Budget—Many companies use an objective-and-task budgeting approach that uses a separate budget for each foreign market. This technique adds some flexibility to localize campaigns as needed. (2) Executing the International Campaign—Usually more complex than executing a national plan. The creative may need to be reshot with local models and settings, as well as the local language. Language is always a problem for a campaign that is dependent on words rather than visuals as the primary carrier of meaning. Government approval could also be required for television commercials, and media buying might be more complex. Everything takes longer. (moderate; p. 553; LO4: AACSB Reflective Thinking)

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141.

Teresa is a Midwestern girl and is an undergraduate student at Michigan State University. She met a Japanese exchange student, named Toshi, in one of her classes. They talked to each other and a couple of times met at the library to study for exams together. A few days later, Teresa received a letter from Toshi in which he commented how nice and pretty she is and said he wanted to “make memories” with her. Teresa wasn’t sure what he meant by that, so she avoided him in case he was implying something intimate, which she wasn’t interested in. Explain what you think might be the problem here? Answer:

These two individuals are from different cultures, specifically, low- and highcontext cultures. Teresa is from the United States, which is a low-context culture, meaning that a message can be understood as it stands. Toshi, however, is from a high-context culture, which means that the meaning of a message can be understood only when contained within context cues. (moderate; p. 551; LO4; AACSB Reflective Thinking) 142.

Juan works at an advertising agency that has been designated as the lead agency for a client’s global advertising effort. Explain what is meant by lead agency and describe its purpose. Answer:

This is a variation on a centrally conceived campaign in which the office that develops the approved campaign would be designated the lead agency and would develop all the necessary elements of the campaign and prepare a standards manual for use in other countries. This manual would include examples of layouts and broadcast spots and design standards for all elements. Because photography, artwork, television production, and color printing are very costly, developing the items in one location and then overlaying new copy or re-recording the voice track in the local language saves money. (moderate; p. 551; LO4; AACSB Multicultural and Diversity)

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143.

Martin is working on a client’s global advertising strategy. What should Martin consider about the global advertising objectives, targeting issues, and positioning the global brand? Answer:

The strategic elements for planning a global advertising strategy include: (1) Global Advertising Objectives—The problem of managing brand consistency is largely responsible for limiting most global marketing objectives to awareness and recall—two effective yet easily attainable marketing communication measures, although more specific objectives may be needed in individual markets. (2) Targeting Issues—The globalization/localization debate is really about targeting. The question is whether people in the target are similar across borders or whether their national and cultural differences are great enough so that, to be effective, the message strategy has to be modified country by country. (3) Positioning the Global Brand—Research must be conducted to identify the problems and opportunities facing the product in each of the international markets to be entered. The situation analysis portion of the advertising plan develops the information needed for positioning the product in the foreign markets. Particularly important is a good understanding of consumer buying motives in each market, which is almost impossible to develop without locally based consumer research. (moderate; p. 552; LO4; AACSB Reflective Thinking) 144.

David is planning an IMC campaign and is considering using sponsorship and events as a tool in the IMC campaign. What are the objectives appropriate for this tool? Answer: The typical objectives for sponsorship and events are: build awareness; create brand experience' create opportunity for participation, interaction, and involvement; create excitement; stimulate buzz.

(moderate; p. 536; AACSB Reflective Thinking)

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145.

As described in “It’s a Wrap” at the end of the chapter, what were the results of the CR-V advertising campaign? Answer:

Honda sold all cars with minimal discounts which demonstrated the brand's strength. Interest among intended new buyers measured 27 percent, top-of-mind scores placed the brand at 6 (1 higher than the goal). This led to a sales increase of 99 percent, along with a 25 percent reduction in advertising per car sold. The CRV became the second best-selling car in Iceland and by far the most sold SUV. Honda in Iceland held by far the highest market share of all Honda dealerships in Europe. (difficult; p. 556) 146.

Who was the target of CareerBuilder.com's campaign as discussed in the “HandsOn” case at the end of the chapter. Answer:

CareerBuilder.com's target market for the campaign were potential employees and employers. They extended the audience to people who fell frustrated about their jobs. (moderate; p. 559)

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Head Over Heels is a unique children’s toy and shoe store. Although they are the only store in town that has a large selection of educational toys, they also feature Thomas the Tank Engine and Madeline dolls, clothes, and dollhouses, and all sorts of infant toys. They carry the largest selection of Stride Rite shoes in town, as well. The store advertises all year, but they advertise more heavily around back-to-school time for shoes and the holidays for toys. They receive prepared print ads and radio scripts from manufacturers to use for their advertising with enough time or space for them to include their store’s information. When they use these ads, they get reimbursed the full media cost by the manufacturers, which really helps them in their advertising efforts. Another way they get assistance from manufacturers is by offering them the opportunity to buy space in the multipage ad that the store distributes every year on Thanksgiving, which features several Christmas gift ideas at promotional prices for the famous “day after Thanksgiving” shopping day.

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147.

Mini-Case Question. Name and describe the relationship between Stride Rite and Head Over Heels when Stride Rite assists with the store’s advertising by providing print ads to the retailer and reimbursing them for the newspaper space. Answer:

This is called cooperative (co-op) advertising, which is where the national brand reimburses the retailer for part or all of the advertising expenses. Co-op funds are sometimes called ad allowances. (moderate; p. 539; LO1; AACSB Communication) 148.

Mini-Case Question. Name and describe the program that Head Over Heels uses when it uses a radio spot from Stride Rite with space left at the end. Answer:

The manufacturers provide the ads and allow a dealer tag, which is time left at the end of a radio or television spot or space left at the bottom of print materials, where the store is mentioned. (moderate; p. 540; LO1; AACSB Communication) 149.

Mini-Case Question. The special holiday ad is prepared by a printer and distributed to consumers inside the local newspaper. Name and describe this type of advertising. Answer:

This type of advertising is called pre-prints or, which are advertising circulars furnished by a retailer for distribution as a freestanding insert in newspapers. (moderate; p. 541; LO1; AACSB Communication) 150.

Mini-Case Question. Another promotion Head Over Heels does every year is to donate $1 dollar to the local school district for every pair of shoes sold during the back-to-school promotion. Name and describe this activity. Answer:

Cause marketing means adopting a good cause and sponsoring its fund-raising and other community-oriented efforts. It is described as “doing good things and getting credit for it.” (easy; p. 546; LO3; AACSB Ethical Reasoning)

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CHAPTER NINETEEN Evaluation of Effectiveness

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS 1.

Which of the following is a category of work that gets evaluated in advertising and marketing communication programs? a. message execution b. media c. campaign d. other marketing communication areas and their synergistic effect e. all of the above (e; easy; p. 562) 2.

Which of the following is the final section in a campaign plan? a. setting objectives b. situation analysis c. determining budget d. evaluating effectiveness e. executing the ads (d; easy; p. 575; LO4) 3.

According to the text, which of the following is NOT a reason for evaluating the effectiveness of the marketing communication program or campaign? a. The stakes in making an advertising misstep are high. b. Reduce the risk by testing, analyzing, tracking performance, and making changes where possible to increase the performance of the advertising. c. To identify best practices so a brand’s advertising continues to improve. d. It is required by most clients. e. All of the above are reasons for evaluating the effectiveness. (d; moderate; p. 563) 4.

Evaluation is done through testing, monitoring, and measurement, and testing ________. a. tracks performance b. is used to predict results c. evaluates results d. is required by all advertisers e. is done after the ad runs (b; difficult; p. 563; LO1)

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Evaluation is done through testing, monitoring, and measurement, and monitoring ________. a. tracks performance b. is used to predict results c. evaluates results d. is required by all advertisers e. is done before the ad runs (a; difficult; p. 563; LO1; AACSB Analytic Skills) 6.

Evaluation is done through testing, monitoring, and measurement, and measurement ________. a. tracks performance b. is used to predict results c. evaluates results d. is required by all advertisers e. is done before the ad runs (c; difficult; p. 563; LO1; AACSB Analytic Skills) 7.

Testing advertisements before they run as a way to predict their effectiveness is a practice known as ________. a. copy testing b. ad testing c. concept testing d. tracking e. ad evaluation (a; moderate; p. 572; LO2) 8.

Which of the following is NOT a type of research used in evaluation? a. developmental research b. concurrent research c. posttesting research d. consistency research e. diagnostic research (d; moderate; p. 564; LO1; AACSB Analytic Skills) 9.

Which type of research used in evaluation uses pretesting to estimate the likelihood that an ad idea will work or that one idea is better than another? a. developmental research b. concurrent research c. posttesting research d. consistency research e. diagnostic research (a; moderate; p. 564; LO1; AACSB Analytic Skills)

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10.

Which type of research uses tracking studies and test marketing to monitor the way the campaign is unfolding and how the messages and media are working? a. developmental research b. concurrent research c. posttesting research d. consistency research e. diagnostic research (b; moderate; p. 564; LO1; AACSB Analytic Skills) 11.

Which type of research evaluates the impact after the campaign is over or after the ad ran? a. developmental research b. concurrent research c. posttesting research d. consistency research e. diagnostic research (c; moderate; p. 564; LO1; AACSB Analytic Skills) 12.

Which type of research deconstructs an ad to see what elements are working or not working? a. developmental research b. concurrent research c. posttesting research d. consistency research e. diagnostic research (e; moderate; p. 564; LO1; AACSB Analytic Skills) 13.

Which of the following statements is false regarding the evaluation of advertising? a. Good evaluation plans, and the objectives found in them, are based on a model of return on investment for an advertisement. b. There are factors other than the advertising that affect sales, and that makes it hard to isolate advertising in order to determine its impact. c. Advertising effects tend to be delayed, so it’s difficult to link the advertising seen at one time to a purchase made days or weeks later. d. The best starting point in setting objectives for evaluation is a model that identifies key effects and guides their evaluation. e. none of the above (a; difficult; p. 565; LO1; AACSB Analytic Skills)

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14.

Which of the following allows the advertiser to tell whether a particular advertisement is above or below the average for the brand or its product category? a. industry ratios b. statistical tests c. norms d. confidence intervals e. industry standards (c; moderate; p. 565; LO1; AACSB Analytic Skills) 15.

Which of the following companies does NOT provide copy-testing services? a. Ameritest b. ARS c. Diagnostic Research d. Mapes & Ross e. A. C. Nielsen (e; difficult; pp. 565–567; LO2; AACSB Analytic Skills) 16.

Which of the following could be a research question assessing an ad’s effectiveness in enhancing consumers’ perceptions of the brand? a. What brand do you prefer? b. What thoughts came to your mind? c. Have you seen this ad? d. What feelings did the ad stimulate? e. Do you like this ad message? (c; difficult; p. 566 [Table 19.1]; LO2; AACSB Analytic Skills) 17.

Which of the following is NOT a research question assessing an ad’s effectiveness in influencing consumers’ cognition? a. What did you like or dislike in the ad? b. What thoughts came to your mind? c. What is the main message? d. What happened in the commercial? e. What’s the difference between Brand X and Y? (a; difficult; p. 566 [Table 19.1]; LO2; AACSB Analytic Skills) 18.

Which of the following is a general term that describes various kinds of research used at different stages in the advertising process—before, during, and after an ad or campaign has run? a. copy testing b. concept testing c. evaluative testing d. primary testing e. diagnostic testing (a; difficult; p. 565; LO2; AACSB Analytic Skills)

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19.

Which of the following is NOT tested or performed during message development research? a. message strategy b. tracking studies c. concept testing d. pretesting e. diagnostics (b; moderate; p. 567; LO2; AACSB Analytic Skills) 20.

Which of the following compares the effectiveness of various creative ideas? a. copy testing b. concept testing c. pretesting d. diagnostics e. moment-by-moment tests (b; moderate; p. 567; LO2; AACSB Analytic Skills) 21.

An artist’s drawing of the visual idea with a sentence underneath that captures the essence of the idea is called a(n) ________. a. storyboard b. photoboard c. animatic d. key concept card e. snap shot (d; moderate; p. 567; LO2; AACSB Analytic Skills) 22.

________ helps marketers to make final go/no-go decisions about finished or nearly finished ads by assessing the strength of the finished message and predicts how well it will perform. a. Pretesting b. Tracking studies c. Diagnostics d. Moment-by-moment tests e. Wave analysis (a; moderate; p. 567; LO2; AACSB Analytic Skills) 23.

Drawings or still photos shot on videotape synchronized with a rough version of the audio track are called ________. a. photoboard b. storyboard c. animatics d. test shots e. answer prints (c; moderate; p. 567; LO2; AACSB Analytic Skills)

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24.

Still photos arranged as a storyboard used in pretesting a television commercial are known as ________. a. photoboards b. animatics c. test shots d. answer prints e. picture sorts (a; moderate; p. 567; LO2; AACSB Analytic Skills) 25.

A group of commercials that includes the test commercial and competitors’ commercials as well is called a(n) ________. a. animatic b. commercial sort c. picture sort d. clutter reel e. key concept reel (d; moderate; p. 569; LO2; AACSB Analytic Skills) 26.

Which type of test provides an analysis of the impact of the internal logic of a commercial? a. moment-by-moment tests b. frame-by-frame tests c. theater testing d. coincidental tests e. tracking tests (a; moderate; p. 569; LO2; AACSB Analytic Skills) 27.

Which type of testing takes place while the advertising is actually being run in the media? a. diagnostics b. concept testing c. moment-by-moment tests d. optimization testing e. concurrent testing (e; moderate; p. 569; LO2; AACSB Analytic Skills) 28.

A technique most often used with broadcast media in which random calls are made to individuals in the target market is known as a(n) ________. a. picture sort b. coincidental survey c. wave analysis d. pantry check e. inquiry test (b; moderate; p. 569; LO2; AACSB Analytic Skills)

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29.

Studies that follow the purchase activity of a specific consumer or group of consumers over a specified period of time are ________. a. diagnostic tests b. concept tests c. tracking studies d. test market studies e. inquiry tests (c; moderate; p. 569; LO2; AACSB Analytic Skills) 30.

What do tracking studies evaluate? a. copy and media against changes in sales b. attitude toward the advertisement c. attitude toward the brand d. the brands or products consumers have purchased or used recently e. inquiries from an advertisement (a; moderate; p. 569; LO2; AACSB Analytic Skills) 31.

Which of the following is a method used by account planners to collect tracking data? a. attitude tests b. wave analysis c. consumer diaries d. pantry tests e. all of the above (e; easy; p. 570; LO2; AACSB Analytic Skills) 32.

A favorable or unfavorable disposition toward a person, thing, idea, or situation is known as a(n) ________. a. viewpoint b. behavior c. cognition d. attitude e. intention (d; moderate; p. 569; LO2; AACSB Analytic Skills) 33.

________ looks at a series of interviews during a campaign. a. Attitude tests b. Wave analysis c. Consumer diaries d. Pantry checks e. Test marketing (b; moderate; p. 570; LO2; AACSB Analytic Skills)

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34.

Asking consumers to record activities such as brands purchased, brands used for various activities, brand switches, media usage, exposure to competitive promotion, and the use of coupons uses which method to collect tracking data? a. pantry checks b. test marketing c. consumer diaries d. wave analysis e. scanner data (c; easy; p. 570; LO2; AACSB Analytic Skills) 35.

In which method to collect tracking data does a researcher go to consumers’ homes in the target market and ask what brands or products they have purchased or used recently, and in some cases, count the products or brands currently stocked by the consumer? a. wave analysis b. consumer diaries c. pantry checks d. test marketing e. snooping (c; moderate; p. 570; LO2; AACSB Analytic Skills) 36.

In which method to collect tracking data does one or more test cities serve as controls while the others are the test where researchers can test the effectiveness of advertising? a. wave analysis b. test marketing c. moment-by-moment tests d. city-by-city tests e. field tests (b; easy; pp. 570-571; LO2; AACSB Analytic Skills) 37.

Which type of research occurs after the ad has been run to determine if it met its objectives? a. after-only test b. strategic research c. diagnostic research d. evaluative research e. completion testing (d; moderate; p. 571; LO2; AACSB Analytic Skills)

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38.

One way to measure memory is to show the advertisement to people and ask them whether they remember having seen it before and is known as a(n) ________ test. a. recall b. recognition c. persuasion d. likability e. attitude (b; moderate; p. 571; LO2; AACSB Analytic Skills) 39.

A type of memory test in which respondents who have been exposed to a specific media vehicle are asked to report what advertisements or brand they remember seeing is known as a(n) ________ test. a. recall b. recognition c. persuasion d. likability e. attitude (a; moderate; p. 571; LO2; AACSB Analytic Skills) Asking a consumer who watched a particular television program, “Do you remember seeing a commercial for any soft drinks?” is what type of question? a. unaided recall b. aided recall c. recognition d. prompted recall e. close-ended (a; moderate; p. 572; LO2; AACSB Analytic Skills) 40.

Asking a consumer who watched a particular television program, “Do you remember seeing a commercial for Coke with lime?” is what type of question? a. unaided recall b. aided recall c. recognition d. unprompted recall e. close-ended (b; moderate; p. 572; LO2; AACSB Analytic Skills) 41.

42.

A test to assess attitude change is known as a(n) ____. a. unaided recall test b. aided recall test c. recognition test d. persuasion test e. likability test (d; moderate; p. 572; LO2; AACSB Analytic Skills)

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43.

Which type of evaluative test asks consumers how likely they are to buy a specific brand, then exposes them to an advertisement for that brand, usually as part of a collection of brands, and then asks them again what they intend to purchase? a. persuasion test b. inquiry test c. single-source research d. memory test e. concept test (a; moderate; p. 572; LO2; AACSB Analytic Skills) 44.

The validity of a persuasion test depends on which of the following? a. consistent measures b. reliable measures c. a large sample d. a representative sample e. census sample (d; moderate; p. 572; LO2; AACSB Analytic Skills) 45.

Questions that try to evaluate ________ investigate such things as personally relevant, important to me, stimulate interest or curiosity, create warm feelings, enjoyable, entertaining, and fun. a. memory b. persuasion c. likability d. inquiry e. intention (c; difficult; p. 572; LO2; AACSB Analytic Skills) 46.

________ measure the number of responses to an advertisement. a. Memory tests b. Persuasion tests c. Likability tests d. Inquiry tests e. Single-source tests (d; moderate; p. 572; LO2; AACSB Communication) 47.

Which of the following is the primary measurement tool for assessing the effectiveness of direct-response communication? a. memory tests b. persuasion tests c. likability tests d. inquiry tests e. single-source tests (d; moderate; p. 572; LO2; AACSB Analytic Skills)

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48.

In which type of evaluative research are consumers asked to join a panel and allow their actual purchases to be tracked? a. memory tests b. persuasion tests c. likability tests d. inquiry tests e. scanner research (e; moderate; pp. 572-573; LO2; AACSB Analytic Skills) 49.

Which type of evaluative research controls the advertising participants receive in their homes and tracks their actual purchases at the store? a. scanner research b. persuasion tests c. likability tests d. inquiry tests e. single-source research (e; moderate; p. 573; LO2; AACSB Analytic Skills) 50.

The costs of creating and running the advertisement versus the revenue it generates is known as ________. a. reach b. frequency c. gross rating point d. advertising ROI e. advertising counts (d; moderate; p. 574; LO3; AACSB Analytic Skills) 51.

Another way to look at advertising ROI is the ________. a. cost-to-sales ratio b. reach-to-frequency ratio c. GRP ratio d. CPM ratio e. RPM ratio (a; moderate; p. 574; LO3; AACSB Analytic Skills) 52.

The point where the advertising gets tired and there is no response or less response than at the launch is called ________. a. burnout b. wearout c. hiatus d. decay point e. point of diminishing return (b; moderate; p. 575; LO3; AACSB Analytic Skills)

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53.

The point where recall stabilizes or declines and irritation levels increase because people are tired of hearing or seeing the same ad replayed is known as ________. a. burnout b. wearout c. hiatus d. decay point e. point of diminishing return (b; moderate; p. 575; LO3; AACSB Analytic Skills) 54.

The more intrusive the creative technique, the higher the level of ________. a. persuasion b. recall c. likability d. irritation e. sales (d; moderate; p. 575; LO3; AACSB Analytic Skills) 55.

What is the biggest challenge in media planning? a. developing impact b. timing c. efficiency d. availability e. targetability (c; moderate; p. 575; LO3; AACSB Analytic Skills) 56.

The goal of testing media planning is always to ________. a. optimize the budget b. optimize reach c. optimize frequency d. optimize GRPs e. optimize effectiveness (a; difficult; p. 575; LO3) 57.

A ________ will assess the campaign’s performance in terms of its message and media objectives. a. concept test b. persuasion test c. campaign evaluation d. diagnostic evaluation e. media optimization test (c; difficult; 575; LO4; AACSB Analytic Skills)

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58.

When all the pieces of the campaign work together, the whole is greater than the sum of its parts, which is called ________. a. compounding b. the multiplier effect c. effective ROI d. efficient ROI e. synergy (e; moderate; p. 580; LO4; AACSB Analytic Skills) 59.

Which of the following is a surrogate sales promotion measure to assess the key message effect of perception? a. emotions b. credibility c. attention d. motivation e. brand image (c; difficult; p. 576 [Table 19.2]; LO4; AACSB Analytic Skills) 60.

Understanding and recall are surrogate sales measures to assess which key message effect? a. perception b. cognitive c. affect d. persuasion e. action (b; difficult; p. 576 [Table 19.2]; LO4; AACSB Analytic Skills) 61.

Which of the following is NOT a surrogate sales measure used to assess the key message effect of persuasion? a. attitudes b. interest c. credibility d. conviction e. motivation (b; difficult; p. 576 [Table 19.2]; LO4) 62.

How are ads containing elements that can be returned evaluated? a. direct-response counts b. cost per thousand c. attitude change d. intention e. conviction (a; easy; p. 576; LO4; AACSB Analytic Skills)

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63.

For evaluating sales promotion, _______ is the second most popular evaluation measure. a. sales b. response rates c. redemption rates d. awareness e. conviction (b; moderate; p. 578; LO4; AACSB Analytic Skills) 64.

Which calculation allows comparison of the response rates of alternative mailings. a. cost per response b. cost per thousand c. response per thousand d. payout plan e. breakeven analysis (c; moderate; p. 577; LO4; AACSB Analytic Skills) 65.

Which of the following is the most common measure used to evaluate the effectiveness of sales promotion? a. sales b. response rates c. awareness d. redemption rates e. response per thousand (a; moderate; p.578; LO4; AACSB Analytic Skills) 66.

To evaluate the trade sales promotion programs, the _______ do store checks to verify that stores are doing what they promised. a. sales representatives b. art directors c. copy editors d. display managers e. Audit Bureaus (a; difficult; p. 578; LO4) 67.

Comparing the costs of promotion to the forecasted sales generated by the promotion is called a ________. a. cost per thousand b. payout analysis c. response counts d. response per thousand e. redemption assessment (b; moderate; p. 578; LO4; AACSB Analytic Skills)

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68.

Which type of payout plan seeks to determine the point at which the total cost of the promotion exceeds the total revenues? a. inflection point b. crossover point c. point of no return d. breakeven analysis e. optimization point (d; moderate; p. 578; LO4) 69.

Which of the following public relations output measures coverage? a. number of PR products, such as news releases or brochures, generated b. number of media outlets receiving PR products c. number and size of clips, column inches, seconds, or minutes of time or space d. media placements multiplied by circulation or broadcast reach e. equivalent ad costs for time or space (c; difficult; p. 579; LO4) 70.

In business-to-business advertising, the number of leads that turn into customers who make a purchase is called ________. a. conversion b. recruits c. turnover d. attrition e. advocacy (a; moderate; p. 580; LO4; AACSB Analytic Skills)

GENERAL CONTENT: TRUE/FALSE QUESTIONS 71.

The categories of work that get evaluated in advertising and marketing communication programs are the message execution, the media, the campaign, and the other marketing communication areas and their synergistic effect as part of an IMC program. (True; moderate; p. 562) 72.

The four types of research used in advertising evaluation are developmental research, concurrent research, consumer research, and psychological research. (False; moderate; p. 564; LO1; AACSB Communication) 73.

Good evaluation plans are based on a model of human response to an advertisement. (True; moderate; p. 565; LO1; AACSB Analytic Skills)

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74.

Standards allow the advertiser to tell whether a particular advertisement is above or below the average for the brand or its product category. (False; moderate; p. 565; LO1) 75.

Copy testing is a general term that describes various kinds of research used at different stages in the advertising process—before, during, and after an ad or campaign has run. (True; moderate; p. 565; LO2; AACSB Communication) 76. Idea testing compares the effectiveness of various creative ideas. (False; moderate; p. 567; LO2; AACSB Communication) 77.

Even though advertising is complex, most practitioners believe that advertising effects can be reduced to a single score. (False; difficult; p. 567; LO2; AACSB Communication) 78. Moment-by-moment tests are used to assess eye movement among respondents exposed to a print ad. (False; moderate; p. 564; LO2; AACSB Communication) 79.

The coincidental survey technique is most often used with broadcast media and is conducted by randomly calling respondents in the target market to gain insight on whether the target audience is getting the message and, if so, what information or meaning the audience members receive. (True; moderate; p. 569; LO2) 80.

Studies that follow the purchase activity of a specific consumer or group of consumers over a specified period of time are tracking studies. (True; moderate; p. 569; LO2; AACSB Communication) 81. Tracking studies evaluate copy and media against changes in attitudes. (False; moderate; p. 569; LO2; AACSB Communication) 82.

Account managers use several methods to collect tracking data, such as attitude tests, wave analysis, consumer diaries, pantry checks, and single-source tracking. (False; difficult; p. 570; LO2; AACSB Communication) 83.

One method for collecting tracking data is to ask consumers to record in a diary activities such as brands purchased, brands used for various activities, brand switches, media usage, exposure to competitive promotions, and use of coupons. (True; easy; p. 570; LO2)

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84.

One method for collecting tracking data is called a cupboard check, which is where a researcher goes to homes in the target market and asks what brands or products they have purchased or used recently, sometimes counting the products or brands currently stocked by the consumer. (False; moderate; p. 570; LO2; AACSB Communication) 85.

One problem with test marketing for collecting tracking data is that the possibilities for isolating variables in test markets are very limited. (False; moderate; p. 571; LO2) 86.

One way to measure memory is to show the advertisement to people and ask them whether they remember having seen it before; this is known as a recall test. (False; moderate; p. 571; LO2; AACSB Communication) “Do you remember seeing a commercial for wireless communication?” is an example of an aided recall type of question (False; moderate; p. 572; LO2; AACSB Communication) 87.

88.

According to a study by the Advertising Research Foundation (ARF), likability tests were better able to predict sales impact than awareness, recall, communication, or persuasion measures. (True; difficult; p. 572; LO2; AACSB Communication) 89.

A form of action response, inquiry tests measure the number of responses to an advertisement and are the primary measurement tool for direct-response communication. (True; easy; p. 572; LO2; AACSB Communication) 90.

Single-source research is allowing researchers to come closer to showing a causal relationship between advertising as sales. (True; moderate; p. 573; LO2) 91.

Although fairly inexpensive and widely used, single-source data should be used with caution because the data tend to be unreliable and weak in external validity. (False; moderate; p. 573; LO3; AACSB Communication) 92.

Media-planning oversight is usually handled by the account planner, but it can also be contracted by the advertiser to independent companies who specialize in conducting media audits of the agency’s media-planning and -buying operations. (False; difficult; p. 574; LO3; AACSB Communication) 93.

Another way to look at advertising return on investment (ROI) is to use the costto-sales ratio. (True; moderate; p. 574; LO3)

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94.

The point where the advertising gets tired and there is no response or less response than at the launch is called the hiatus point. (False; moderate; p. 575; LO3; AACSB Communication) 95. The biggest challenge in media planning is timing. (False; moderate; p. 575; LO3) 96.

Synergy is when all the pieces in an IMC campaign work together, and it is surprisingly simple to measure. (False; moderate; p. 580; LO4; AACSB Communication) 97.

Advertising is particularly effective in accomplishing exposure, awareness, and brand image, and delivering brand reminders. (True; easy; p. 576; LO4; AACSB Communication) 98.

Response per thousand is NOT an appropriate measure for evaluating direct response advertising. (False; moderate; p. 577; LO4; AACSB Communication) 99.

Sales promotion programs are complicated in that it may be necessary to evaluate both trade and consumer promotions, and evaluating the effectiveness of trade promotion is almost impossible. (False; moderate; pp. 577-578; LO4) 100.

The efficiency of a sales promotion can be evaluated in terms of its financial returns more easily than advertising. (True; moderate; p. 578) 101.

The evaluation of public relations examines the success of the program in getting the message out to the target audience in terms of output and outcomes, as well as public opinion and relationship tracking. (True; moderate; p. 578; LO4; AACSB Communication) 102.

In public relations evaluation, tracking studies help us determine the favorability of the coverage, share of voice, and issues and competitor coverage. (False; moderate; p. 579; LO4) 103.

Research methods and analytical techniques are available to demonstrate ROI for public relations activities. (False; moderate; p. 579; LO4; AACSB Communication) 104.

With respect to retail advertising, the results of traffic-building promotions and advertising are simple counts of people coming through the door. (True; easy; p. 580; LO4)

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105.

A common objective of business-to-business advertising is called conversion, which refers to the number of leads that turn into customers who make a purchase. (True; moderate; p. 580; LO4; AACSB Communication)

GENERAL CONTENT: ESSAY QUESTIONS 106.

Name and describe the four types of research used in evaluating the effectiveness of advertising and other elements of an IMC campaign. Answer:

There are four types of research used in evaluation: (1) Developmental Research—Pretesting estimates the likelihood that an ad idea will work or that one idea is better than another. (2) Concurrent Research—Using tracking studies and test marketing to monitor the way the campaign is unfolding and how the message and media are working. (3) Posttesting Research—Evaluates the impact after the campaign is over or after the ad ran. To be useful, benchmark or baseline studies are needed, in order to gauge movement. These can be research company norms or they can be based on previous campaigns by this brand. (4) Diagnostic Research—Deconstructs an ad to see what elements are working or not working. Researchers who evaluate commercials use frame-by-frame or moment-by-moment analysis to identify strengths and weaknesses in a commercial. (moderate; p. 564; LO1; AACSB Reflective Thinking)

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107.

Describe the type of copy testing that occurs during the message development research stage of IMC planning. Answer:

During this stage, several types of research can occur: (1) Concept Testing—Compares the effectiveness of various creative ideas. This testing often relies on a key concept card (or cards), which is an artist’s drawing of the visual idea with a sentence underneath that captures the essence of the idea. (2) Pretesting—Helps marketers to make final go/no-go decisions about finished or nearly finished ads. It differs from concept testing or message strategy research, which reveals the strengths and weaknesses of different versions of a concept or approach as marketers develop them. Pretesting assesses the strength of the finished message and predicts how well it will perform. The ideas to be tested are often full mockups of the ad. In television, advertisers can test the commercials as storyboard ideas or photoboards, but more often commercials are in the form of animatics. (3) Diagnostics—More focused on diagnosing strengths and weaknesses than other methods. Moment-by-moment tests of commercials provide an analysis of the impact of the internal logic of the commercial. The procedure includes showing a clutter reel or uses a picture sort. (moderate; pp. 567, 569; LO2; AACSB Reflective Thinking) 108.

Explain tracking studies. Answer:

Studies that periodically (generally every three or six months) measure top-ofmind brand awareness (first brand mentioned) are called tracking studies. These studies can also measure unaided and aided awareness of an ad and trial and repeat purchases. They sometimes ask the same questions of competing brands. Tracking studies show how a marketer’s brand is performing over time, especially after changes are made in the marketing communication. Brand tracking is an approach that tracks the performance of the brand rather than or in addition to the advertising. The assumption is that with fragmented media and an abundance of high-quality but similar products, it is more important to track the brand because it reflects the quality of the customer’s brand relationship. Instead of focusing on attributes and claims about a product, this research identifies how customers are involved with the brand and whether they are more favorably disposed toward it than toward other brands. As Peppers and Rogers point out, you also need a centralized customer database that allows you to track customer activity across channels. (difficult; pp. 569; LO2; AACSB Reflective Thinking)

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109.

Explain the use of scanners and scanner research. Answer:

Many retail outlets use electronic scanners to tally up purchases and collect consumer buying information. The brand name, the product code, and the price is on the bar code of each product. Some stores have a frequent buyer program and have a membership card that entitles you to special promotional offers, the store can track a consumer's purchases. Scanner research is also used to see what type of sales spikes are created when certain ads and promotions are used in a given market. Both the chain and the manufacturers of the brands are interested in this data. Stores may establish a consumer panel to track sales among various consumer groups. In scanner research, you would be asked to join a panel, which might contain hundreds of other customers. You would complete a fairly extensive questionnaire and be assigned an ID number. You might receive a premium or a discount on purchases for your participation. Each time you make a purchase, you also submit your ID number. Various manufacturers who sell products to the stores can do the same kind of testing. The panel questionnaire also contains a list of media that each member reported using, so media performance can also be evaluated. (moderate; pp. 572-573; LO2; AACSB Reflective Thinking 110.

Public relations programs are evaluated in terms of output and outcomes. Explain what this means and discuss three measures of each. Answer: The evaluation of public relations examines the success of the program in getting the message out to the target audience in terms of output (materials produced and distributed) and outcomes (acceptance and impact of the materials), as well as public opinion and relationship tracking. Output measures (students can answer any three of the following): (1) Production—Number of public relations products, such as news releases or brochures, generated. (2) Distribution—Number of media outlets receiving public relations products. (3) Coverage—number and size of clips, column inches, and seconds or minutes of time or space. (4) Impressions—Media placements multiplied by circulation or broadcast reach. (5) Advertising Value—Equivalent ad costs for time or space. (6) Content Analysis—Positive or valence (whether the story or mention seems to be more positive or negative), key messages (the idea in the story), sources, and prominence.

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The three outcome measures are: (1) Awareness—Aided and unaided recall in the target audience. (2) Attitudes—Perceptions, preferences, and preference or intent to buy. (3) Behavior—Did they do what you wanted them to do? (moderate; p. 579; LO4; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS 111.

As described in the chapter’s opening vignette, what did research uncover about perception of New Holland? a. New Holland was not reliable. b. John Deere was superior to New Holland. c. Consumers perceived John Deere to be reliable. d. Consumers who favored New Holland felt choosing a nontraditional brand was empowering. e. When farmers were asked to name a tractor, farmers were likely to answer John Deere or Kubota. (d; moderate; p. 561; AACSB Reflective Thinking) 112.

Which of the following was an objective of the New Holland "Brave New Tractors" campaign as described in the chapter’s opening vignette? a. achieve high levels of campaign awareness and high levels of brand linkage b. re-energize the New Holland brand and increase trial by 10 percent c. increase market share by 15 percent d. increase brand awareness and trial of the New Holland tractor e. strengthen the New Holland name as a tractor brand and increase New Holland market share by 5 percent (e; difficult; p. 561; AACSB Reflective Thinking) 113.

One of AT&T’s requirements of its advertising is that everything must be pretested and proven to be effective before it goes on the air or appears in print. Which of the following is NOT a company listed in the text that AT&T might hire to help them test the strong and weak points of their advertising? a. Ameritest b. ARS c. Ogilvy d. Diagnostic Research e. IPSOS-ASI (c; difficult; pp. 565, 567; LO2)

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114.

_______ is a company that specializes in testing brand recall, main idea, attribute statements. a. Ameritest b. ARS c. Ogilvy d. Diagnostic Research e. IPSOS-ASI (d; difficult; p. 565; LO2) 115.

Mars, Inc., the makers of M&M candy, was recently running television ads featuring the colorful nature of its candy that end with the tagline, “Chocolate is better in color.” What type of research is used to evaluate these commercials right now, that is, when consumers are currently seeing the commercials on television? a. development research b. concurrent research c. posttesting research d. concept testing e. inquiry test (b; moderate; p. 564; LO1; AACSB Reflective Thinking) 116.

Frank is a senior account planner and is in charge of copy testing research. At which stage of a campaign is copy testing performed? a. before an ad or campaign runs b. while an ad or campaign runs c. after an ad or campaign has run d. a and b e. a, b, and c (e; moderate; p. 565; LO1) 117.

For the Volvo GLBT campaign described in the text, the company managers selected their top three choices from the group of proposed ad ideas. The _______ was run to assess the constructs of branding, communication, consumer connection, and whether the ad makes consumers feel closer to the brand. a. pretesting b. diagnostic c. concept testing d. flow of attention e. alert test (c; moderate; p. 567; LO2)

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118.

Tom is conducting research with the target audience to test the relative effectiveness of various message strategies and creative ideas for his client’s automobile advertising. He is testing the Big Idea. What type of message development research is he conducting? a. concept testing b. coincidental survey c. pretesting d. diagnostics e. tracking studies (a; moderate; p. 567; LO1; AACSB Reflective Thinking) 119.

Leslie was paid $50 to watch a commercial and then sort a deck of pictures from the commercial into images she remembered seeing and ones she didn’t remember seeing. Then she was asked to sort them into five categories from strong positive to strong negative. What type of research did she participate in? a. diagnostics b. pretesting c. tracking study d. wave analysis e. order of presentation analysis (a; moderate; pp. 567, 569; LO2; AACSB Reflective Thinking) 120.

Sam just finished watching his favorite television show, American Idol, when he received a phone call asking him a series of questions about an ad he saw during the program. The researcher asked him what information he got from the ad. What type of research is this an example of? a. moment-by-moment test b. coincidental survey c. posttesting d. concept testing e. tracking study (b; moderate; p. 569; LO2; AACSB Reflective Thinking) As described in “A Matter of Practice,” the _______ is a measurement dimension that reveals the hidden structure of audience attention to moving pictures. a. tracking studies b. concept testing c. content analysis d. wave analysis e. flow of attention (e; moderate; p. 568; LO3) 121.

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122.

You received a phone call one evening from a research company that was asking about your television viewing the night before. After confirming what you did watch the program they asked about, the researcher then asked you, “Do you remember seeing a commercial for any fast food restaurants?” You didn’t remember any, so then she asked you, “Do you remember seeing a commercial for Wendy’s?” Once she said that, you did remember seeing a Wendy’s commercial. What type of question got you to remember seeing the ad? a. recognition b. unaided recall c. aided recall d. unprompted recall e. prompted recall (c; moderate; p. 572; LO2; AACSB Reflective Thinking) 123.

You and your family are part of a consumer panel, and each time you go to the grocery store, you give the sales clerk your ID number. The research company tracks your purchases, as well as several other households’ purchases, to determine the extent to which their clients’ advertising works. What type of research are you participating in? a. inquiry test b. scanner research c. single-source research d. optimization research e. test marketing (b; moderate; pp. 572-573; LO2; AACSB Reflective Thinking) 124.

Jana is a public relations specialist, and one way she evaluates the campaigns she develops for clients is to count the number of news releases her staff generates for a client’s account. What type of measure of effectiveness does this illustrate? a. awareness b. attitude c. distribution d. production e. coverage (d; moderate; p. 579; LO4; AACSB Reflective Thinking)

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125.

Betty is the marketing communications director for a major consumer packaged goods company, and one of her responsibilities is to ensure consistency among all marketing communication elements used for a specific brand. Her staff is conducting the first step of an IMC audit for one of their brands, and they are collecting all the materials produced by the company or their agencies and coding its use of agreed-upon consistency elements, such as brand identity cues, slogans, design format, tone of voice, colors, the expression of core values, and positioning cues. This analysis also looks for materials that are coded as off strategy and diagnoses the ways in which deviant messages are being sent. What type of analysis is her staff conducting? a. input assessment b. output assessment c. outcome analysis d. content analysis e. audience perspective analysis (d; moderate; p. 579; LO4; AACSB Reflective Thinking) As discussed in the “Hands-On” case at the end of the chapter, what was the key to McDonald’s double-digit sales growth that far outpaced the competition? a. improved advertising b. improved product c. positive publicity d. a and b e. a, b, and c (d; moderate; p. 585) 126.

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE You are having dinner with your former college roommate, who is a neurosurgeon. You are an account planner at an advertising agency, and you do a lot of ad testing. You’re trying to get him to help you with some neurological tests to determine the effectiveness of some of your clients’ ads, especially those that attempt to evoke strong emotional responses. But he asked you, “If advertising is done to sell a product, why don’t you just measure sales to determine the effectiveness of an ad?” You try to explain to him that it is not that simple, and you tell him about all the types of research you conduct at various stages of a campaign.

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127.

Mini-Case Question. Which of the following is a reason why advertisers use other measures besides sales as a measure of advertising effectiveness? a. Advertising effects tend to be delayed, so it’s difficult to link the advertising seen at one time to a purchase made days or weeks later. b. There are factors other than advertising that affect sales, and that makes it hard to isolate advertising in order to determine its impact. c. Manufacturers, and therefore their advertising agencies, do not have access to sales data because it is collected by retailers who don’t make that available to them. d. a and b e. a, b, and c (d; moderate; p. 565; LO1) 128.

Mini-Case Question. Which of the following is NOT a main communication effect that is assessed in various types of advertising research? a. persuasion b. opinion c. cognition d. perception e. emotion (b; moderate; p. 566; LO2; AACSB Reflective Thinking) 129.

Mini-Case Question. To help your friend better understand the various types of research you conduct, you tell him about research you do before an ad even appears in any medium. You conduct research that assists in the go/no-go decision about finished or nearly finished ads. This type of testing assesses the strengths of the finished message and predicts how well it will perform and is known as ___________. a. message strategy testing b. concept testing c. tracking studies d. pretesting e. test marketing (d; moderate; p. 567; LO2; AACSB Reflective Thinking) 130.

Mini-Case Question. You also conduct a significant amount of research after the ad has been run to determine if it met its objectives. Which of the following is NOT a posttesting technique? a. memory tests b. persuasion tests c. tracking studies d. inquiry tests e. likability tests (c; difficult; pp. 571–572; LO1; AACSB Reflective Thinking)

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APPLICATION QUESTIONS: SHORT-ANSWER 131.

What were the objectives of the New Holland "Back to Tractors" campaign as described in the chapter’s opening? Answer:

There were two objectives: (1) Strengthen the New Holland name as a tractor brand and increase New Holland market share by 5 percent (2) Increase dealer satisfaction with New Holland brand image by 10 percent. (moderate; p. 561; AACSB Reflective Thinking) 132.

Cheryl is an account planner at a major advertising agency, and one of her responsibilities is to evaluate ads and campaigns through testing, monitoring, and measurement. Explain these three terms. Answer:

Testing is used to predict results, monitoring tracks performance, and measurement evaluates results. In other words, advertisements typically are tested before they run as a way to predict their effectiveness. Ideally, the results of evaluative research should be available before large sums of money are invested in finished work or in media buys. As a campaign unfolds, the performance is tracked to see whether any elements need to be changed. The results, the actual effects, are measured after the ad or campaign runs. (moderate; p. 563; LO1; AACSB Reflective Thinking) 133.

As described in the text, explain how Volvo used concept testing in developing the GLBT campaign. Answer:

For the Volvo GLBT campaign described in the text, various concepts were developed, and Ford and Volvo managers selected their top three choices from a group of proposed ideas. The messages were tested to assess the constructs of branding, communication, and persuasion, including the concept of consumer connection. (moderate; p. 567; LO2, AACSB Reflective Thinking)

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134.

As described in “A Matter of Practice,” identify and briefly explain the three sorting exercises that enable the advertiser to see the ad through the eyes of its target audience. Answer:

(1) Flow of attention: is like a visual spell-checker used to analyze whether an ad film or Web video is put together well according to principles of proper film syntax or good visual grammar. (2) Flow of Emotion: measures not only the volume of emotions pumping through an ad film but also which of the four archetypal dramatic structures is being used in the creative design. (3). Flow of Meaning: shows the researcher where key communication points or brand values are being cued visually. Meaning is created when thought and emotion come together. (difficult; p. 568; LO3) 135.

What is the name of the Advertising Research Foundation’s research award, which was mentioned in the Volvo GLBT campaign? Answer:

The ARF’s research award is named the David Ogilvy Award. (difficult; p. 567; LO1) 136.

Gina and her family participated in a marketing study in which the researcher came to their home and asked a series of questions about the brands and products that they use. The researcher than asked if she could look at the products they have around the house and asked if Gina would keep the empty packages of products they used over the next month. What type of research is this, and in what stage of copy testing is this usually performed? Answer:

This in an example of a pantry check type of tracking study, which is typically done during the execution of an ad or campaign, so it is a type of concurrent testing. (moderate; p. 570; LO2; AACSB Reflective Thinking)

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137.

You are interning at an advertising research company this summer, and you will be learning how to implement persuasion tests. Explain what these are, at what stage of copy testing are they performed, how they are implemented, and what determines the validity of the test. Answer:

Persuasion tests are a type of posttesting evaluation after an ad has been run to determine if it met its objectives. A persuasion test (a.k.a. attitude change test) asks consumer how likely they are to buy a specific brand. Next they are exposed to an advertisement for that brand, usually as part of a collection of brands. After exposure, researchers again ask them what they intend to purchase. The researcher analyzes the results to determine whether intention to buy has increased as a result of exposure to the advertisement. This test is sometimes referred to as an intend-to-buy or motivation test. The validity of a persuasion test depends in part on whether participants in the experiment represent a good sample of the prospects the advertiser is trying to reach. (moderate; pp. 571–572; LO2; AACSB Reflective Thinking) 138.

Hector is a media buyer, and one of his responsibilities is to evaluate the media vehicles he will purchase for his clients. Name the companies that he most likely uses to give him information on print and broadcast media audiences. Answer:

The Audit Bureau of Circulations (ABC), Simmons-Scarborough (SMRB), and MediaMark (MRI) provide audience data for print media. For broadcast, Arbitron, RADAR, and A.C. Nielsen provide audience monitoring. (moderate; p. 574; LO3; AACSB Reflective Thinking)

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139.

Charles is going to be a member of a discussion panel at an upcoming conference on issues facing media planners and buyers. The topic of his panel’s discussion will be the biggest challenge facing media planners and what is currently being done in the industry to address this challenge. Briefly describe what will be discussed during this session. Answer:

The biggest challenge in media planning is media efficiency. Advertisers want to know their dollars are being spent in the most efficient way and for the greatest impact. Media planners operate with computer media–optimization models of media performance that they use in making decisions about media selection, scheduling, and weights (amount of budget). Models are always theoretical, so one result of postevaluation is that the actual performance of a plan can be compared with the results projected by the media planner’s model. The goal in testing media planning is always to optimize the budget—to get the most impact possible with the least expenditure of money. That is the critical finding derived from the comparison of performance with projections. In addition to meeting the reach and frequency objectives, was the media plan efficient? (moderate; p. 575; LO3) 140.

RoC Retinol Correxion is a skin creme product that says you can “Get 10 Years Back.” The print ad doesn’t really give much information regarding the product, but it does say, “For more about the science behind RoC visit rocskincare.com.” How can the effectiveness of this ad be measured? Answer:

Ads containing elements that can be returned (i.e., web address) are evaluated by using direct-response counts. Because this ad contains a direct-response element, RoC can simply count the number of readers who visit the web site. (easy; p. 576; LO4; AACSB Reflective Thinking)

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141.

Maria is a public relations specialist who works primarily on writing news releases and feature stories for the clients of the agency in which she works. On the most basic level, how can her efforts be evaluated? Answer:

The evaluation of public relations examines the success of the program in getting the message out to the target audience in terms of output (materials produced and distributed) and outcomes (acceptance and impact of the materials), as well as public opinion and relationship tracking. It would seem that the most basic level of analysis for evaluating Maria’s efforts would be to look at output measures: (1) Production—Number of PR products, such as news releases or brochures, generated. (2) Distribution—Number of media outlets receiving PR products. (3) Coverage—Number and size of clips, column inches, and seconds or minutes of time or space. (4) Impressions—Media placements multiplied by circulation or broadcast reach. (5) Advertising Value—Equivalent ad costs for time or space. (6) Content Analysis—Positive or valence (whether the story or mention seems to be more positive or negative), key messages (the idea in the story), sources, and prominence. (moderate; p. 579; LO4; AACSB Reflective Thinking) 142.

The Kitchen Table is a specialty kitchen store that tries to get customers coming back to their store. To do that, they hold cooking demonstrations hosted by various chefs from restaurants around town. To promote these events, the store advertises in the newspaper for two weeks leading up to each event. How can they know if the ads are successful? Answer:

A simple way to assess the effectiveness of the ads is to count how many people show up for the cooking demonstration that was advertised. (easy; p. 580; LO4)

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143.

BFDG Advertising specializes in business-to-business advertising. Discuss the primary objectives of B2B advertising and how its effectiveness is typically evaluated. Answer:

The primary objective of B2B advertising is to generate a response, particularly sales leads. So a common form of evaluation is a lead count based on calls, emails, and cards returned to the advertiser. Another common objective is called conversion and that refers to the number of leads that turn into customers who make a purchase. Conversion rates, which are percentages of the leads, are also calculated for most marketing communication tools used in B2B programs. (moderate; p. 580; LO4; AACSB Reflective Thinking) 144.

Coca-Cola is a global brand that advertises all over the world. Discuss the special problems managers face that make evaluation of international programs difficult. Answer:

First, many markets with distinctive characteristics must be analyzed, not just the markets in one country. Furthermore, the costs of running evaluation programs in smaller markets may not be cost effective. There may also be incompatibilities among various measurement systems and data analysis techniques that make it difficult to compare the data from one market to similar data from another market. (moderate; p. 580; LO4; AACSB Multicultural and Diversity) 145.

The “Hands-On” case at the end of the chapter discussed how an ad critic thought the McDonald’s “I’m lovin’ it” campaign was horrible, yet McDonald’s experienced double-digit sales growth. Discuss the possible reasons for that growth. Answer:

Marketing research suggests that a consumer’s attitude toward an ad influences his or her attitude toward the brand. Great advertising, however, cannot make a substandard brand succeed. Even if the ads were not well-liked, as the ad critic claims, McDonald’s instituted a number of other changes at the same time it refocused its advertising, including adding new healthier product lines. The company also changed its promotional relationship with Disney and focused hard on improving the consumer experience at its restaurants. So it’s difficult to separate the effects of the ads from the other changes, and the key to McDonald’s success is probably due to both improved advertising and an improved product. (moderate; p. 585)

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Part Five: Principles: How to Win the Battle of the Buzz

APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER Dell Computers has dramatically increased its consumer advertising in the past five years, which has resulted in Dell becoming the top-selling personal computer. Consumers can purchase a Dell computer only directly from Dell, either by calling the toll-free number or visiting Dell’s web site. One of their popular television commercials included Steve, a young man who would usually say, “Dude, you’re gettin’ a Dell.” Audiences really liked Steve and the ads he appeared in, and in fact, that’s when Dell’s sales started to skyrocket. However, Dell has stopped that campaign and has moved on to others. 146.

Mini-Case Question. One procedure that was used to evaluate the commercials used a clutter reel to test the ads. Explain what a clutter reel is. Answer:

A clutter reel is a group of commercials that includes the test commercial and competitors’ commercials as well as others, and it is a procedure used in the moment-by-moment type of tests. (moderate; p. 569; LO2; AACSB Reflective Thinking) 147.

Mini-Case Question. Dell discontinued the “Dude, you’re gettin’ a Dell” campaign because they felt it had “run its course.” Really, it was discontinued because it wasn’t effective anymore and tests showed that consumers were getting rather irritated with Steve. Explain why this can be. Answer:

The point where advertising gets tired and there is no response or less response than at the launch is called wearout. This is also the point where recall stabilizes or declines and irritation levels increase because people are tired of hearing or seeing the same ad replayed. Wearout is a combination of creative impact and media buying. (moderate; p. 575; LO3; AACSB Reflective Thinking) 148.

Mini-Case Question. Dell uses a combination of media, and direct mail is one of them. How can they evaluate the efficiency and effectiveness of the direct-mail ads?

Answer: In this case, Dell can measure effectiveness by using direct-response counts. In some ways, direct-response mechanisms are the easiest marketing communication tool to evaluate both in terms of the message effectiveness and in terms of ROI efficiency—the sales-to-cost ratio. The efficiency of the direct-response offer is measured in terms of response per thousand (RPM). To calculate the RPM, the formula is (total responses/total mailed) x 1,000. (moderate; p. 577; LO4; AACSB Analytic Skills)

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Chapter Nineteen: Evaluation of Effectiveness

149.

Mini-Case Question. It seems like every week, Dell has a special offer for consumers. For example, one offer included a free printer and digital camera with the purchase of a desktop computer. How do marketers typically evaluate the effectiveness of sales promotion offers such as this? Answer:

One survey found that marketers use sales as the leading evaluation measure. Other measures in order of use were response rates, awareness, other mix, and redemption rates. (moderate; p. 578; LO4) 150.

Mini-Case Question. Dell wants to use its “Dude, you’re gettin’ a Dell” campaign in other countries. At the very least, what type of research should Dell conduct before using this ad? Answer:

The effectiveness of an international evaluation program for advertising should focus, at least initially, on pretesting. Unfamiliarity with the culture, language, and consumer behavior can result in major miscalculations. Pretesting helps the advertiser correct major problems before miscommunication. (moderate; p. 580; LO4; AACSB Multicultural and Diversity)

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