Chapter 16 ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS Test Item Table

Major Section of the Chapter Level 1: Definition (Knows Basic Terms & Facts) What’s the Future of Advertising? The Answer is Personal! (pp. 343-344) Types of Advertisements (pp. 344-345) Developing the Advertising Program (pp. 345-352) Executing the Advertising Program (pp. 352-353) Evaluating the Advertising Program (pp. 353-354) Sales Promotion (pp. 354-359) Level of Learning Level 2: Conceptual (Understands Concepts & Principles) 1, 2 Level 3: Application (Applies Principles)

3, 4, 5, 7, 12, 13, 14, 18, 23, 24, 25, 27, 32, 35, 36 45, 49, 52, 56, 58, 59, 61, 63, 64, 69, 79, 82, 86, 87, 88, 89, 91, 92, 94, 171 98, 105, 107, 108, 174 109, 113, 114

8, 10, 15, 16, 20, 22, 26, 28, 38, 168, 169 39, 40, 41, 42, 43, 44, 48, 50, 53, 55, 57, 62, 68, 70, 71, 72, 74, 75, 76, 77, 78, 80, 81, 83, 85, 170, 172 97, 99, 100, 101, 102, 103, 104, 173, 176, 177 110, 111, 112, 116, 117, 118, 119 124, 126, 127, 129, 133, 140, 141, 143, 152, 159, 179, 180

6, 9, 11, 17, 19, 21, 29, 30, 31, 33, 34, 37 46, 47, 51, 54, 60, 65, 66, 67, 73, 84, 90, 93, 95, 96 106, 175

115, 178

120, 121, 134, 137, 145, 148, 150, 151, 153, 154, 155, 156, 182, 183, 184 160, 162, 164, 165, 185

122, 123, 125, 128, 130, 131, 132, 135, 136, 138, 139, 142, 144, 146, 147, 149, 157, 158, 181 161, 163

Public Relations (pp. 359) Video Case: Fallon Worldwide (pp. 361-363)

166, 167

Note: Bold numbers indicate short essay questions.

1035

CHAPTER 16 ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS MULTIPLE CHOICE QUESTIONS 16-1 CHAPTER OPENING EXAMPLE: ADVERTISING CONCEPTUAL

__________ uses a patented computer system that digitally inserts ads into sporting events and other broadcast—not as a 15- or 30-second commercial—but as a visual part of the program. a. b. c. d. e. Media convergence Interstitials The digital divide Virtual advertising Interactive television

Answer: d Page: 343 Rationale: Virtual advertising inserts ads as a visual part of sporting event programming. On ESPN’s coverage of baseball games, for example, television viewers see ads that appear to be on the backstop behind home plate that are invisible to fans at the game. 16-2 CHAPTER OPENING EXAMPLE: ADVERTISING Personal video recorders (PVRs): a. b. c. d. e. enable viewers to basically program their own personal network. are in the prototype stage of market development and may never make it to market due to copyright issues. cannot be used as one-to-one marketing tools. use video created by the PVR owner and digitally intersperses it with television broadcasts. are accurately described by all of the above. CONCEPTUAL

Answer: a Page: 343 Rationale: TiVo is an example of a PVR. Soon advertisers will be able to insert ads into PVRs that are specific to the viewer of that television. 16-3 ADVERTISING DEFINITION

__________ is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. a. b. c. d. e. Publicity Sales promotion Advertising Personal selling Direct marketing Page: 344

Answer: c

Rationale: Key term definition—advertising

1037

comparative. c. d. e. The ad described in the question is a product ad. and reminder. e. pioneering." The advertisement emphasizes the truck's newest feature. introductory. competitive. . designed to inform consumers of the newest features of a specific product. b. Product ads focus on selling a specific good or service while institutional ads primary purpose is to build goodwill or to create or maintain an image for an organization. a third door designed to let passengers enter the extended cab more easily. The advertisement is an example of a(n) __________ advertisement. The ad copy states that the new Chevy truck is the only compact pickup to offer a third door. competitive. and reminder. selling a good or service. reminder product reminder institutional informational product informational institutional creative institutional Answer: c Page: 344 Other Location: web Rationale: Advertisements can take either of two primary forms: product or institutional. b. They are: a. advocating a political position. e. b. "Just Thought We'd Reinvent the Wheel. persuading opinion leaders. comparative. obtaining inquiries. c. competitive. The ad headline proclaims. and reminder. introductory. and reminder. Answer: b Page: 344 Other Location: web Rationale: Key term definition—product advertisements 16-5 PRODUCT ADVERTISEMENTS Product advertisements focus on: a. c. and reminder. raising money for a worthy cause. institutional. a. d. Starting With the Door. d.16-4 PRODUCT ADVERTISEMENTS DEFINITION Product advertisements focus on selling a good or service and take three major forms. pioneering. DEFINITION Answer: b Page: 344 Rationale: Key term definition—product advertisements 16-6 PRODUCT ADVERTISING APPLICATION An advertisement in the North American Hunter magazine shows the Chevrolet S-Series pickup.

The key objective of the pioneering ad is to inform the target market. 1039 . b. what the product can do. The key objective of the pioneering ad is to inform the target market. What form of product advertising is the company likely to use? a. convincing. e. b. convincing. DEFINITION promote a specific brand's features and benefits. e. d. c. and effective. and then to headphones that allow the musician to hear the music at a normal volume. 16-9 PIONEERING ADVERTISING APPLICATION Yamaha Corp. inform the target market show one brand's strengths relative to those of competitors. b. introduction decline maturity harvesting growth Answer: a Page: 344 Rationale: Pioneering advertisements are used in the introductory stage of the product life cycle to tell people what the product is.16-7 PIONEERING ADVERTISING The primary purpose of a pioneering advertisement is to: a. Pioneering advertising should be used to tell the target market how the device works and where it can be found. d. Answer: b Page: 344 Rationale: Text term definition—pioneering advertisement 16-8 PIONEERING ADVERTISING CONCEPTUAL Pioneering advertisements would most likely be used during which stage of a product's life cycle? a. feeds it to an amplifier. c. Informative ads have been found to be interesting. build goodwill or an image for an organization rather than promote a specific good or service. and effective. Yamaha’s device is new and thus in the introductory stage of the product life cycle. Informative ads have been found to be interesting. what the product can do. and where the product can be found. and where the product can be found. A microphone picks up the sound. d. reminder competitive pioneering institutional objective Answer: c Page: 344 Rationale: Pioneering advertisements are used in the introductory stage of the product life cycle to tell people what the product is. e. has developed a new device that reduces the volume of trumpets by more than 30 decibels—to the level of a whisper. c. reinforce previous knowledge of a product.

The key objective of the pioneering ad is to inform the target market. e. b. 16-12 COMPETITIVE ADVERTISING The primary purpose of a competitive advertisement is to: a. Pioneering advertising should be used to tell the target market how the device works and where it can be found. Informative ads have been found to be interesting. TransWave’s device is new and thus in the introductory stage of the product life cycle.16-10 PIONEERING ADVERTISEMENT The key objective of a pioneering ad is to: a. but it must use __________ advertising so oil companies will know of the product's existence. The key objective of the pioneering ad is to inform the target market. and effective. reminder competitive pioneering institutional objective Answer: c Page: 344 Rationale: Pioneering advertisements are used in the introductory stage of the product life cycle to tell people what the product is. and effective. d. c. what it can do. what the product can do. e. promote the advantages of one product class over another. identify the target market. and where it can be found. what the product can do. inform the target market. reinforce previous knowledge. 16-11 PIONEERING ADVERTISEMENT APPLICATION TransWave International is a small company that has developed a system that uses the Web and patented electronic sensors as an early-warning device for pipeline leaks. and where the product can be found. Informative ads have been found to be interesting. CONCEPTUAL Answer: a Page: 344 Rationale: Pioneering advertisements are used in the introductory stage of the product life cycle to tell people what the product is. The timing is right for this company to be extremely successful. and where the product can be found. state the position of the advertiser on an issue. a. e.S. convincing. b. c. persuade the target market to select the firm’s brand rather than that of a competitor. change the target market. c. DEFINITION Answer: c Page: 344 Rationale: Text term definition—competitive advertising . b. d. reinforce previous knowledge of a product. convincing. d. inform the target market. tell people what a product is. Pipeline safety is becoming a big issue in the U. as more natural gas lines are being laid near population centers.

Advocacy Competitive institutional Reminder Comparative Differentiation Answer: d Page: 344 Rationale: An increasingly common form of competitive advertising is comparative advertising. The objective of these messages is to persuade the target market to select the firm’s brand rather than that of a competitor. e. e. c. state the position of the advertiser on an issue. e. CONCEPTUAL Answer: c Page: 344 Rationale: Advertising that promotes a specific brand’s features and benefits is competitive. b. identify the target market. c. 1041 . Firms that use comparative advertising need market research to support claims made in the ads. Institutional Hierarchical Pioneering Competitive Reminder DEFINITION Answer: d Page: 344 Rationale: Text term definition—competitive advertising 16-14 COMPARATIVE ADVERTISING DEFINITION __________ advertisements are competitive advertisements that show one brand’s strengths relative to those of competitors. a. reinforce previous knowledge. d. persuade the target market. c.16-13 COMPETITIVE ADVERTISING __________ advertising promotes a specific brand's features and benefits. a. inform the target market. b. d. 16-15 COMPETITIVE ADVERTISING Competitive product and brand advertising is typically used to: a. which shows one brand's strengths relative to those of the competitors. b. Studies indicate that comparative ads attract more attention and increase the perceived quality of the advertiser’s brand. d.

state the position of a company on an issue. reinforce previous knowledge of a product. This is ad is an example of __________ advertising. d. d. promote a specific brand's features and benefits. 16-18 REMINDER ADVERTISING The purpose of a reminder advertisement is to: a. tell people what a product is. Comparative advertisements have been banned by the Federal Trade Commission. and where it can be found. e. c. All of the above statements about comparative advertising are true. what it can do. b. Studies indicate that comparative ads attract more attention and increase the perceived quality of the advertiser’s brand. c. e. a. reinforcement comparative persuasive informative reminder Answer: b Page: 344 Rationale: An increasingly common form of competitive advertising is comparative advertising. Comparative advertisements attract less consumer attention to the advertiser's brand.16-16 COMPARATIVE ADVERTISING Which of the following statements about comparative advertising is true? a. Answer: c Page: 344 Rationale: An increasingly common form of competitive advertising is comparative advertising. 16-17 COMPARATIVE ADVERTISING APPLICATION An ad for Citrucel fiber supplement claimed that in a blind taste test consumers preferred the taste of Citrucel to Metamucil 2 to 1. b. b. Studies indicate that comparative ads attract more attention and increase the perceived quality of the advertiser’s brand. DEFINITION Answer: d Page: 344 Rationale: Text term definition—reminder . c. Firms that use comparative advertising need market research to support claims made in the ads. which shows one brand's strengths relative to those of the competitors. CONCEPTUAL Comparative advertisements now constitute over two-thirds of all television ads. d. e. which shows one brand's strengths relative to those of the competitors. Comparative advertisements increase the perceived quality of the advertiser's brand. promote the advantages of one product class over another. Firms that use comparative advertising need market research to support claims made in the ads.

d. c. 1043 . established brand in the mature phase of the product life cycle. a. c. Consumers just need to be reminded to purchase the brand. advocacy comparative persuasive informative reminder Answer: e Page: 344 Rationale: Reminder advertising is used to reinforce previous knowledge of a product. d. Campbell’s is a well-known. b. e.16-19 REMINDER ADVERTISING APPLICATION An ad for Campbell's soup reads. e. b. “We haven't changed that great taste your family's always loved. Reminder advertising is good for products that have achieved a well-recognized position and are in the mature phase of their product life cycle.” This is an example of __________ advertising. 16-20 REMINDER ADVERTISING CONCEPTUAL Reminder advertisements are especially effective for products in which stage of the product life cycle? a. In this case. introduction maturity harvesting growth incubation Answer: b Page: 344 Other Location: web Rationale: Reminder advertising is used to reinforce previous knowledge of a product. Reminder advertising is good for products that have achieved a well-recognized position and are in the mature phase of their product life cycle.

state the position of the advertiser on an issue. reinforce previous knowledge. identify the target market. The Godiva ad mentioned is an example of "reminder" advertising since Godiva is a well known brand in the mature stage of the product life cycle. reassure consumers they have made the correct choice in choosing the product. a. parity direct sales pioneering comparative reminder Answer: e Page: 344 Rationale: Reminder advertising is used to reinforce previous knowledge of a product. e. b. repeat ad campaigns that have been used before in order to remind customers of past loyalty. c.16-21 REMINDER ADVERTISING APPLICATION When Godiva Chocolates runs a magazine ad with the headline "Spend Your Birthday With The Ones You Love. c. b." it has created __________ advertising. DEFINITION Answer: c Page: 345 Rationale: Text term definition—reinforcement advertising . c. d. repeat the original theme in a slightly varied form to help avoid burnout. reassure the company it has made the right choice in advertising the product. 16-23 REINFORCEMENT ADVERTISING Reinforcement ads are reminder ads that: a. Consumers just need to be reminded to purchase the product. inform the target market. e. d. CONCEPTUAL Answer: e Page: 344 Other Location: web Rationale: Reminder advertising is used to reinforce previous knowledge of a product. b. reaffirm a company's position on an issue of importance or interest. Reminder advertising is good for products that have achieved a well-recognized position and are in the mature phase of their product life cycle. 16-22 REMINDER ADVERTISEMENT Reminder product and brand advertising is typically used to: a. Reminder advertising is good for products that have achieved a well-recognized position and are in the mature phase of their product life cycle. e. d. persuade the target market.

Four forms of institutional advertisements are often used: advocacy. repositioning advertisements. b. d. e. institutional advertisements. d. and reminder institutional. competitive institutional ads. rather than promote a specific good or service. 1045 . public service announcements. compettive institutional. product advertisements. c. e. b. reminder institutional ads. c. advocacy ads. rather than promote a specific good or service. pioneering institutional. support worthy charities increase frequency of purchases of new products increase the total amount of products used build goodwill or an image for an organization make direct sales Answer: d Page: 345 Rationale: Key term definition—institutional advertisements 16-26 INSTITUTIONAL ADVERTISEMENTS CONCEPTUAL Institutional advertisements can take all of the following alternative forms EXCEPT: a. Answer: d Page: 345 Rationale: The objective of institutional advertisements is to build good will or an image for an organization. product institutional ads.16-24 INSTITUTIONAL ADVERTISEMENTS DEFINITION Advertisements whose objective is to build goodwill or an image for an organization rather than promote a specific good or service are called: a. a. c. Answer: c Page: 345 Rationale: Key term definition—institutional advertisements 16-25 INSTITUTIONAL ADVERTISEMENTS DEFINITION The objective of institutional advertisements is to __________. d. Often this form of advertising is used to support the public relations plan or respond to negative publicity. pioneering institutional ads. Alternative d is incorrect as it is not one of the four listed forms. b. e. reminder advertisements.

pioneering competitive advocacy reminder political Answer: c Page: 345 Rationale: Advocacy advertisements state the position of a company on an issue. e. d. DEFINITION Answer: c Page: 345 Rationale: Text term definition—advocacy advertising 16-28 ADVOCACY ADVERTISEMENTS CONCEPTUAL The kind of advertisements that state the position of a company on an issue. promote a specific brand's features and benefits. b. d. tell people what a company is. In this case Pfizer is stating its position on the topic of vaccination. its position on drinking responsibly. a. reinforce previous knowledge of a product. a. such as the request by American Red Cross for blood donations to help terrorism victims. Pfizer Pharmaceutical ran an ad in several women's magazines in which it suggested that the timing may be right for vaccination. d. and where it is located. are __________ advertisements. c. Miller beer is encouraging the responsible use of alcohol. promote the advantages of one product class over another. e. 16-29 ADVOCACY ADVERTISEMENTS APPLICATION At the beginning of the school year in September. b. Pfizer was using __________ advertising. such as the request by American Red Cross for blood donations to help terrorism victims. c. b. c. such as the ads sponsored by Miller beer encouraging the responsible use of alcohol. pioneering competitive advocacy reminder comparative Answer: c Page: 344 Rationale: Advocacy advertisements state the position of a company on an issue. A unique form of advocacy advertisement is used when organizations make a statement or request related to a particular event. . e. In this case. state the position of a company on an issue. A unique form of advocacy advertisement is used when organizations make a statement or request related to a particular event. what it can do.16-27 ADVOCACY ADVERTISING The purpose of an advocacy advertisement is to: a.

competitive institutional advertisement. This advertisement is an example of a(n): a. are used for announcements about what a company is. b." The ad shows an engineer surrounded by seven young people. it can be nimble. an idea that many in the target market may not be aware of. competitive product advertisement. such as the request by American Red Cross for blood donations to help terrorism victims. advocacy institutional advertisement. c. pioneering competitive advocacy reminder political Answer: a Page: 345 Rationale: Pioneering institutional advertisements.16-30 ADVOCACY ADVERTISEMENTS APPLICATION The headline of a General Motors advertisement in the Reader's Digest magazine reads. The international consulting firm is announcing that despite its size. The General Motors ad suggests its position on education and helping those young people who may not believe in themselves. The ad is an example of __________ advertising. Now I've got to make them believe it. advocacy product advertisement. the more society will get out of the community. a. 1047 . b. e. or where it is located. "I believe these kids will make great engineers. e. d. pioneering institutional advertisement. A unique form of advocacy advertisement is used when organizations make a statement or request related to a particular event. Answer: d Page: 345 Rationale: Advocacy advertisements state the position of a company on an issue. The ad copy talks about how General Motors believes the more the company puts into the community. c. d. 16-31 PIONEERING INSTITUTIONAL ADVERTISEMENTS APPLICATION An ad for an international consulting firm. like the pioneering ads for products discussed earlier. what it can do. was intended to communicate the company philosophy —that you can be big and nimble at the same time—rather than sell any one particular service provided by the company.

. In this example. b. promote the advantages of one product class over another. state the position of a company on an issue. the California Pistachio Growers Association is suggesting eating pistachios in social situations instead of other nuts or snacks— competitive product classes to pistachios. what it can do. c. The ads are examples of __________ ads. DEFINITION Answer: b Page: 345 Rationale: Text term definition—pioneering institutional advertisements 16-33 COMPETITIVE INSTITUTIONAL ADVERTISEMENTS APPLICATION The California Pistachio Growers Association has an ongoing ad campaign in which it encourages people to think of pistachios when they think of good times and good friends. d. announce what a company is.16-32 PIONEERING INSTITUTIONAL ADVERTISEMENTS The purpose of pioneering institutional advertisements is to: a. Competitive institutional ads promote the advantages of one product class over another and are used in markets where different product classes compete for the same buyers. c. competitive institutional competitive product advocacy pioneering product pioneering institutional Answer: a Page: 345 Rationale: Institutional ads are designed to create or maintain an image or to build good will for an organization. e. b. a. The ads are not designed to sell specific brands. e. The goal of the ad is to increase consumption of pistachio nuts. or where it is located. reinforce previous knowledge of a product. promote a specific brand's features and benefits. d.

tell people what a company is. 16-35 COMPETITIVE INSTITUTIONAL ADVERTISEMENTS The purpose of competitive institutional advertisements is to: a. DEFINITION Answer: d Page: 345 Rationale: Text term definition—reminder institutional advertisements 1049 . the Florida Department of Citrus is suggesting drinking orange juice instead of other beverages. what it can do. b. b. promote a specific brand's features and benefits. state the position of a company on an issue. e. and where it is located. Competitive institutional ads promote the advantages of one product class over another and are used in markets where different product classes compete for the same buyers. tell people what a company is. reinforce previous knowledge of a product. and where it is located.16-34 COMPETITIVE INSTITUTIONAL ADVERTISEMENTS APPLICATION The state of Florida Department of Citrus developed the “To Your Health” campaign to show the benefits of orange juice. c. d. e. In this case. c. This is an example of a(n) __________ advertisement. a. The ads are not designed to sell specific brands. promote the advantages of one product class over another. promote the advantages of one product class over another. bring the company's name to the attention of the target market again. e. b. state the position of a company on an issue. The goal of these ads is to increase demand for orange juice as it competes with other beverages. c. DEFINITION Answer: e Page: 345 Other Location: web Rationale: Text term definition—competitive institutional advertisements 16-36 REMINDER INSTITUTIONAL ADVERTISEMENTS The purpose of reminder institutional advertisements is to: a. d. competitive institutional competitive product advocacy pioneering product pioneering institutional Answer: a Page: 345 Rationale: Institutional ads are designed to create or maintain an image or to build good will for an organization. promote a specific brand's features and benefits. what it can do. d.

Figure 15-5 Other Location: web Rationale: As shown in Figure 15-5. select the appeal. b. This ad was an example of __________ advertising. specify the objectives of the advertising program. showing only the Mercedes logo on a chocolate simply reminded the audience of the Mercedes brand automobile. b. e. so the steps in developing the advertising program are (1) identify the target audience. select the media. identify the target audience. (3) set the budget. set the budget. or trademark to the attention of the target market again. (4) select the right promotional elements—media for advertising. the first step of the promotion decision process is developing the promotion program. (5) design the promotion—select the appeal for advertising. a. d. There was no mention of the company name or sign of a product in the ad. e. . (6) schedule the promotion— advertising.16-37 REMINDER INSTITUTIONAL ADVERTISEMENTS APPLICATION An ad for Mercedes Benz cars showed a heart-shaped box of chocolates with one of the chocolates topped with the well-recognized Mercedes logo. CONCEPTUAL Answer: c Page: 345. c. In this case. This can be applied to advertising. 16-38 ADVERTISING DECISION PROCESS: PLANNING The first step in the advertising decision process is: a. (2) specify the objectives. competitive institutional competitive product advocacy pioneering product reminder institutional Answer: e Page: 345 Rationale: The purpose of reminder institutional advertisements is to bring the company's name. c. d.

pretest the advertising. d. This can be applied to advertising. e. CONCEPTUAL Answer: d Page: 346 Rationale: An advertising message usually focuses on the key benefits of the product that are important to a prospective buyer in making trial and adoption decisions.16-39 ADVERTISING DECISION PROCESS: PLANNING CONCEPTUAL All of the following steps are part of the planning process used to develop an organization's advertising program EXCEPT: a. b. e. 16-41 MESSAGE APPEAL Most advertising messages are made up of two types of elements. Information and persuasive content can be combined in the form of an appeal to provide a basic reason for the consumer to act. They are: a. 16-40 DESIGNING THE ADVERTISEMENT An advertising message usually focuses on: a. d. functional and persuasional. (3) set the budget. c. the problem the model is having. b. identify the target audience. key benefits of the product that are important to the buyer. CONCEPTUAL Answer: c Page: 346 Rationale: Most advertising messages are made up of both informational and persuasional elements. Alternative d is a part of the implementation process when the advertising program is executed. creative and expository. the product packaging. informational and creative. write the advertising copy. schedule the advertising program. so the steps in developing the advertising program are (1) identify the target audience. Answer: d Page: 345. (2) specify the objectives. (6) schedule the promotion— advertising. the models in the ad. c. Although the marketer can use many different 1051 . The message depends on the general form or appeal used in the ad and the actual words included in the ad. expository and persuasional. specify the advertising objectives. (4) select the right promotional elements—media for advertising. (5) design the promotion—select the appeal for advertising. the first step of the promotion decision process is developing the promotion program. b. how the company will benefit. e. Figure 15-5 Rationale: As shown in Figure 15-5. informational and persuasional. c. d.

types of appeals. sex appeals. sex appeals. none of the above. and humorous appeals. Be sure to make it appeal to children. d. common advertising appeals include fear appeals. fear. e. provide a basic reason for the consumer to act. Answer: a Page: 346 Rationale: Most advertising messages are made up of both informational and persuasional elements. d. common advertising appeals include fear appeals. b. Don't make the appeal so strong that consumers want to avoid the advertisement. Information and persuasive content can be combined in the form of an appeal to provide a basic reason for the consumer to act. e. Information and persuasive content can be combined in the form of an appeal to provide a basic reason for the consumer to act. c. none of the above. Although the marketer can use many different types of appeals. All of the above are important guidelines when using fear appeal. Avoid any reference to death or dying. and humorous appeals. guilt and enrichment. the advertiser must be sure the appeal is strong enough to get the audience's . When using fear appeals. explain guilt and enrichment. CONCEPTUAL Answer: c Page: 346 Rationale: Fear appeals suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or through a change in behavior. common advertising appeals include fear appeals. c. hierarchical needs. include perceptual modifiers and need enhancers. d. 16-42 MESSAGE APPEAL CONCEPTUAL Information and persuasive content can be combined in the form of an appeal to: a. satisfy hierarchical needs. e. CONCEPTUAL Answer: a Page: 346 Rationale: Most advertising messages are made up of both informational and persuasional elements. and humor. Make the appeal so strong that it appears humorous. b. 16-44 FEAR APPEALS Which of the following is an important guideline when using fear appeal? a. Although the marketer can use many different types of appeals. c. perceptual modifiers and need enhancers. sex appeals. and humorous appeals. 16-43 MESSAGE APPEAL Three common advertising appeals include: a. sex. b.

attention and concern but not so strong it will lead them to tune out the message. 1053 .

Family appeals. Fear appeals. c. d. Coercive appeals Answer: a Page: 346 Rationale: Text term definition—fear appeals 16-46 FEAR APPEALS APPLICATION The testimonial type ads for carbon dioxide detectors feature parents who are discussing the dangers of carbon monoxide poisoning. e. Humorous appeals. d. In many of the ads. c.16-45 FEAR APPEALS DEFINITION __________ suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or through a change in behavior. the advertiser must be sure the appeal is strong enough to get the audience's attention and concern but not so strong it will lead them to tune out the message. family appeals. e. a. fear appeals. When using fear appeals. . coercive appeals Answer: a Page: 346 Rationale: Fear appeals suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or through a change in behavior. humorous appeals. the homeowners tell the target audience how disaster can be averted by purchasing and using the advertised product. b. b. Such advertisements are using: a. sex appeals. Sex appeals.

b. The sex appeal of the ad can distract the audience from the product. __________ suggest to the audience that the product will increase the attractiveness of the user. b. humorous appeal. d. What women find sexy. Answer: e Page: 346 Rationale: Fear appeals suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or through a change in behavior. sex appeal. The idea that she will not have the care she needs because she failed to consider the future when she was young is an example of a: a. men don't. the advertiser must be sure the appeal is strong enough to get the audience's attention and concern but not so strong it will lead them to tune out the message. Some advertising experts even argue that such appeals get in the way of successful communication by distracting the audience from the purpose of the ad. c. women don't. Answer: d Page: 347 Rationale: Sex appeals suggest to the audience that the product will increase the attractiveness of the user. d. b. rhetorical appeal. 16-49 SEX APPEALS DEFINITION In advertising. c.16-47 FEAR APPEALS APPLICATION An ad for Conesco Insurance asks the question. What men find sexy. Sex appeal typically fails to gain audience attention. or act. When using fear appeals. Unfortunately many commercials that use sex appeals are only successful at gaining the attention of the audience. Sex appeals have no effect on senior citizens. a. and they have little impact on how consumers think. e. e. feel. life cycle appeal. c. “How long will you wait to start planning for long-term care?” The ad shows an elderly women being assisted by a nurse as she tries to win money on a game show. fear appeal. 16-48 SEX APPEALS CONCEPTUAL Which of the following statements describes a problem with using sex appeals in advertising? a. e. d. rhetorical appeals logical appeals humorous appeals sex appeals fear appeals Answer: d Page: 347 Rationale: Text term definition—sex appeals 1055 .

16-50 SEX APPEALS CONCEPTUAL Many commercials that use sex appeals gain the attention of the audience. c. c. Answer: d Page: 347 Rationale: Sex appeals suggest to the audience that the product will increase the attractiveness of the user. don't appeal to the Net generation. feel. feel. sex appeal. humorous appeal. Answer: c Page: 347 Rationale: Sex appeals suggest to the audience that the product will increase the attractiveness of the user. d. wear out quickly. life cycle appeal. or act. d. an advanced weight loss formula by GNC. fear appeal. e. Unfortunately many commercials that use sex appeals are only successful at gaining the attention of the audience. but they: a. do not appeal to either men or women. contain no information to help consumers. feel. a. e. they have little impact on how consumers think. rhetorical appeal. 16-52 HUMOROUS APPEALS DEFINITION __________ appeals imply either directly or more subtly that the product is more fun or exciting than competitors’ offerings. b. 16-51 SEX APPEALS APPLICATION An ad for Hydrozycut. Some advertising experts even argue that such appeals get in the way of successful communication by distracting the audience from the purpose of the ad. or act. e. or act. c. boring the consumer. Unfortunately many commercials that use sex appeals are only successful at gaining the attention of the audience. humorous rhetorical family life cycle sex figure of speech Answer: a Page: 347 Rationale: Text term definition—humorous appeals . b.” This ad is using a: a. shows an attractive woman who claims that she lost “an incredible 23 pounds. b. they have little impact on how consumers think. Some advertising experts even argue that such appeals get in the way of successful communication by distracting the audience from the purpose of the ad. have little impact on how consumers think. d.

d. humorous rhetorical family life cycle sex figure of speech Answer: a Page: 347 Rationale: Humorous appeals imply either directly or more subtly that the product is more fun or exciting than competitors’ offerings.'” This use of a ___________ appeal implies that the dressing is like what is served at the finest eating establishments. Another problem with humorous appeals is that their effectiveness may vary across cultures if used in a global campaign. the use of humor is widespread in advertising and can be found in many product categories. adults do not. a.16-53 HUMOROUS APPEALS CONCEPTUAL Which of the following statements describes a problem with using humorous appeals in advertising? a. d. b. “Around here. What adults find humorous. Humor tends to wear out quickly. eventually boring the consumer. c. e. Another problem with humorous appeals is that their effectiveness may vary across cultures if used in a global campaign. eventually boring the consumer. children do not. e. 16-54 HUMOROUS APPEALS APPLICATION An ad for Kraft salad dressings uses a play on words in its headline. Unfortunately for the advertiser. Answer: d Page: 347 Other Location: web Rationale: Humorous appeals imply either directly or more subtly that the product is more fun or exciting than competitors’ offerings. boring the consumer. we're 'jeans and t-shirts' but our dressing is 'night on the town. Unfortunately for the advertiser. Humorous appeals are easily ignored. As with fear and sex appeals. b. humorous appeals tend to wear out quickly. As with fear and sex appeals. but you can enjoy it in the comfort of your home. What children find humorous. the use of humor is widespread in advertising and can be found in many product categories. c. Most humorous advertisements offend someone. 1057 . humorous appeals tend to wear out quickly.

b. the need to shoot commercials in “exotic” locations has increased. The expenditures drop nearly in half for “other”. advertising expenditures at $59. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements. advertising media. Figure 16-1 Rationale: As shown in Figure 16-1. .000) and as companies have developed global campaigns.050. A high-quality 30-second TV commercial typically costs about $268. media convergence.000.000.838.000. A high-quality 30-second TV commercial typically costs about $268. newspapers radio television Internet Yellow Pages Answer: c Page: 348. and newspapers at $49.000 to produce. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a.000 to $15. e. micromarketing.000 small commercial production companies in the US. d.000 to produce because actors are expensive ($12. television garners the largest amount of U. c.S. e. the need to shoot commercials in “exotic” locations has increased.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. All of the above statements are true about creating the advertising message. followed by direct mail at $49. outdoor and internet. reach and frequency. d. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. As companies have developed global campaigns. b. c. c. d. yellow pages. a decoder. Answer: a Page: 348 Rationale: Text term definition—advertising media 16-57 ADVERTISING EXPENDITURES BY MEDIA TYPE CONCEPTUAL Which of the following types of media garners the largest amount of advertising expenditures? a. radio magazines. e. There are about 2.950. b.

e. c. d. b. or a rating for the movie of 20. e. d. e. c.16-58 REACH DEFINITION __________ is defined as the number of different people or households exposed to an advertisement. b. d. Scope Share Reach Span Rating Answer: c Page: 348 Rationale: Key term definition—reach 16-59 RATING DEFINITION __________ is defined as the percentage of households in a market that are tuned to a particular television show or radio station. a. b. 1059 . what would be the movie's rating? a. 10 20 30 40 50 Answer: b Page: 348 Rationale: Rating as defined in the text is the percentage of households in a market that are tuned to a particular TV show or radio station. a. which is 20 percent. Gross rating points Reception rate Target audience reach Rating Share Answer: d Page: 348 Rationale: Key term definition—rating 16-60 RATING APPLICATION If a local television station in your area stated it reached one-fifth of the television households in its viewing area with a prime time movie. In this instance the audience is one-fifth of households. c.

The average number of times a person in the target audience is exposed to a message or advertisement is called: a. total number of times an advertisement is broadcast on network and cable television or radio. advertisers want to reach the same audience more than once. DEFINITION number of different advertisements. e. frequency. gross rating points. parity. average number of times a person in the target audience is exposed to an advertisement. number of times an advertisement can be shown before it begins to lose effectiveness. number of times an advertisement must be shown before a given percentage of the audience can recall key points of information. cost divided by reach. d. reach multiplied by frequency. c. Answer: c Page: 349 Rationale: When advertisers want to reach the same audience more than once. reach multiplied by rating. rating multiplied by frequency. rating. d. e. c. reach. they are concerned with frequency. 16-63 GROSS RATING POINTS Gross rating points (GRPs) are: a. cost divided by (reach multiplied by frequency). b. d. or publicity events in a promotional campaign of a marketing program. sales promotions. c. the average number of times a person in the target audience is exposed to a message or advertisement. Answer: e Page: 349 Rationale: Key term definition—frequency 16-62 FREQUENCY CONCEPTUAL Because consumers often do not pay close attention to advertising messages.16-61 FREQUENCY Frequency is defined as the: a. b. DEFINITION Answer: a Page: 349 Rationale: Key term definition—gross rating points . b. e.

Thus. or outdoor).16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1. and $1. e. DEFINITION cost of one medium relative to the cost of other media (e.000 households (total 500.00.00 $3. cost of reaching 1000 individuals or households with the advertising message.00 $1. what would your cost per thousand (CPM) be? a. the CPM = $2. $5.000 individuals or households with the advertising message in a given medium. c.000. each of which are divided by the multiple of their respective reach and frequency. direct mail versus television. 16-66 COST PER THOUSAND (CPM) APPLICATION The vice-president of marketing of G Street Fabrics has been told to invest the company's advertising dollars wisely. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a. b. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1. radio. Answer: c Page: 349 Rationale: Key term definition—cost per thousand 16-65 COST PER THOUSAND (CPM) APPLICATION If you ordered a commercial to run on a local station that could reach 500. cost per minute of television or radio time number of consumers exposed to an advertising message. c. d. b. 1061 .g. c.00 $4. e.000 households for a cost of $1. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message.00.00 $2.000). This would give a comparison of the costs (financial effectiveness) for different media.000 divided by 500 equals $2. in thousands. e. d. d. b.

advertorials. d. frequency. advocacy ads. e.16-67 FREQUENCY APPLICATION The owners of a small hardware store had a limited advertising budget. d. uses picture. advertisers seeking to expose targeted consumers to advertising message more than once are interested in frequency. the owners of the store were very concerned with spending their advertising dollars wisely. The owners of the hardware store were concerned with: a. d. which is defined as the average number of times a person in a target audience is exposed to an ad. e. c. b. advertising themes. sound. As such. is a low-cost medium. has a short exposure time. sound and motion. and motion for effect. One of their primary advertising concerns was to expose customers in a limited market area to their advertising messages as often as possible. c. can target specific audiences. Answer: b Page: 349 Rationale: Key term definition—infomercials . 16-68 TELEVISION CONCEPTUAL One of the advantages associated with television as an advertising medium is that it: a. Answer: b Page: 349 Other Location: web Rationale: Advertisers like the hardware store owners are often interested in reaching their target audience more than one time because many consumers do not pay close attention to ad messages. 16-69 INFOMERCIALS DEFINITION Program-length (30-minute) advertisements that take an educational approach to communication with potential customers are called: a. communicates with sight. Figure 16-2 Rationale: Television reaches extremely large audiences. has an unlimited amount of advertising time available. Answer: b Page: 349. gross rating points. b. intrusionaries. interstitials. As such. can be used to convey complex messages. c. b. reach. print. infomercials. cost per thousand. e.

e. The cost of national magazine advertising is higher than comparable radio advertising. Disadvantages include no visual element. CONCEPTUAL Answer: e Page: 349. c. b. Figure 16-2 Rationale: Magazines can target specific audiences. ads can be clipped and saved and can convey complex information. and compete for attention with other magazine features. Magazine ads can convey complex information. 1063 . its inability to use humor. and intimacy effectively.16-70 RADIO CONCEPTUAL Which of the following statements about radio as an advertising medium is true? a. humor. e. d. difficult to convey complex information. All of the above statements magazines as an advertising medium are true. short exposure time and perishable message.2 hours versus 1. Radio is not a highly segmented medium. d. it is segmented. b.6 hours. its multisensory appeal. b. Peak radio listening time is during drive times from 6-10AM and 4-7PM. Figure 16-2 Rationale: Radio is low cost and can target specific local audiences. 16-71 RADIO One reason for using radio as an advertising medium is: a. Radio is highly segmented. use high-quality color. its high cost. The peak radio listening time is during the night. e. Answer: c Page: 349 Other Location: web Rationale: There are seven times as many radio stations as television stations in the United States. c. The average college student is a surprisingly heavy radio listener and spends more time during the day listening to radio than watching television—2. its long lead time required for the placement of an ad. However. c. Answer: e Page: 350. d. 16-72 MAGAZINES CONCEPTUAL Which of the following statements about magazines as an advertising medium is true? a. A drawback of radio is that it cannot convey complex information. Radio ads can be quickly created and placed. There are seven times as many television stations as radio stations in the United States. Some nationally distributed magazines publish regional or metro editions to reduce the cost of ads and wasted coverage. ads are relatively high cost. Magazines have distinct profiles for well-defined target audiences. Radio has unlimited use for conveying complex information. The ads have long lives. Radio can use sound. The average college student during the day listens to radio more than he/she watches television. a long time is needed to place an ad.

. 16-74 MAGAZINES One reason for using magazines as an advertising medium is: a. However. Figure 16-2 Rationale: Magazines can target specific audiences. magazines would be inappropriate. d. the short lead time needed to place an ad. all of the above CONCEPTUAL Answer: a Page: 350. their low cost. c. News papers or radio may be more appropriate because it takes a short time to develop the ad. d. e. b. e. Some magazines such as Time publish regional editions. Which medium would be the least logical choice for placement of its messages? a. c. ads can be clipped and saved and can convey complex information. use high-quality color. billboard (outdoor) direct mail radio magazines newspapers Answer: d Page: 350. Figure 16-2 Rationale: Magazines need a long lead time to change the copy and focus of the message.Some magazines such as Time publish regional editions. b. and compete for attention with other magazine features. ads are relatively high cost. 16-73 MAGAZINES APPLICATION Shur-Valu Supermarkets changes its ads constantly to describe new products it has for sale and different price specials it offers. The ads have long lives. a long time is needed to place an ad. and because this supermarket constantly changes its ads. the lack of noise associated with the use of magazines in the communication channel. their ability to target specific audiences.

c. long lead time for ad placement. Color reproduction is not very good. b. Color reproduction is not as good as that in most magazines. Newspapers have excellent local reach potential. Because of the daily publication of most papers. National advertising campaigns rarely include this medium except in conjunction with local distributors and usually both parties share the advertising costs.16-75 NEWSPAPERS CONCEPTUAL Which of the following statements about newspapers as an advertising medium is true? a. so companies are limited to ads that call for an immediate response. Local retailers often use newspapers as their sole advertising medium. ability to create noise during the communication process. Page: 351. they allow advertisements to focus on specific current events. Newspapers are rarely saved by the purchaser. Figure 16-2 Rationale: Newspapers are an important local medium with excellent reach potential. Newspapers are rarely saved by the purchaser. Because of the daily publication of most papers. b. they allow advertisements to focus on specific current events. inability to cover local markets. National companies rarely use newspapers except in conjunction with local distributors of their products. c. e. high cost. d. Local retailers often use newspapers as their sole medium. Color reproduction is not as good as that in most magazines. Figure 16-2 CONCEPTUAL Answer: c Rationale: Newspapers are an important local medium with excellent reach potential. short life span. so companies are limited to ads that call for an immediate response. National advertising campaigns rarely include this medium except in conjunction with local distributors and usually both parties share the advertising costs. 1065 . Answer: e Page: 351. e. Local retailers often use newspapers as their sole advertising medium. 16-76 NEWSPAPERS One reason for NOT using newspapers as an advertising medium is their: a. d. All of the above statements about newspapers as an advertising medium are true.

e. d. c. b.16-77 INTERNET CONCEPTUAL Which of the following statements about the Internet as an advertising medium is true? a. its ability to use animation. Ads are black and white. ads can be interactive and link to advertiser. animation can capture attention. 16-78 INTERNET One reason for using the Internet as an advertising medium is: a. these internet interactive ads have drop-down menus. built-in games. effectiveness is still uncertain and difficult to measure. Answer: a Page: 351. 16-79 INTERNET-RICH MEDIA DEFINITION Called __________. c. a. e. c. e. the way that the ads can link customers and advertisers. Internet advertising has the following disadvantages: animation and interactivity require large files and more time to “load”. or search engines to engage viewers. effectiveness is still uncertain and difficult to measure. The Internet provides audio and video capabilities. its video and audio capabilities. b. d. interactive ads. Internet ads are similar to print ads in that they offer only a visual message. all of the above CONCEPTUAL Answer: e Page: 351. d. animation can capture attention. ads can be interactive and link to advertiser. b. All of the above statements about the Internet as an advertising medium are true. Internet advertising is the most effective form of advertising. Figure 16-2 Rationale: Internet advertising has the following advantages: video and audio capabilities. drop-downs rich media game advertising interactive ads pop-ups Answer: b Page: 351 Rationale: Text term definition—rich media . Figure 16-2 Rationale: Internet advertising has the following advantages: video and audio capabilities. Internet advertising has the following disadvantages: animation and interactivity require large files and more time to “load”.

Advertisers can buy space by route or neighborhood. 1067 . 16-81 OUTDOOR One reason for NOT using the outdoor advertising is: a. c. and it is a relatively lowcost. The visibility of this medium is good supplemental reinforcement for well-known products. its inability to communicate short. Figure 16-2 Rationale: A very effective medium for reminding consumers about products is outdoor advertising. in subways and on taxis. and it is a relatively lowcost. A third form of outdoor advertising is transit advertising—that on bus backs. pithy messages. Figure 16-2 Rationale: A very effective medium for reminding consumers about products is outdoor advertising. its lack of visibility. a. Advertisers can buy space by route or neighborhood. The visibility of this medium is good supplemental reinforcement for well-known products. Billboards often result in good reach and frequency and have been shown to increase purchase rates. This can be a disadvantage in that outdoor advertising has a local market focus. d. e. pioneering advocacy reminder comparative differentiation CONCEPTUAL Answer: c Page: 351. flexible alternative. d. c. A disadvantage is that no opportunity exists for lengthy advertising copy. flexible alternative. its local market focus. its high costs. all of the above CONCEPTUAL Answer: c Page: 351. A disadvantage is that no opportunity exists for lengthy advertising copy. b. such as the scoreboard at San Diego’s Qualcomm Stadium. in subways and on taxis. b. e. Billboards often result in good reach and frequency and have been shown to increase purchase rates. A third form of outdoor advertising is transit advertising—that on bus backs. such as the scoreboard at San Diego’s Qualcomm Stadium.16-80 OUTDOOR Billboard advertising is most effective for __________ advertising.

advertising on taxis. e. Answer: d Page: 351 Other Location: web Rationale: Transit advertising includes messages on the interior and exterior of buses. and taxis. c. Ads change every few weeks. d. All of the above statements about transit advertising are true. opportunistic advertising. Some are part of a series with a story line that slowly emerges for regular commuters although each ad in the series makes sense to the one-time reader. CONCEPTUAL Answer: e Page: 351 Rationale: Transit advertising is a form of outdoor advertising that includes the interior and exterior of buses. When done well. b. Figure 16-2 Rationale: Text term definition--billboards 16-83 TRANSIT ADVERTISING Which of the following statements about transit advertising is true? a. One disadvantage of transit advertising is that heavy travel times often do not permit riders to read advertising copy. e. transit advertising. as in London. c. c. subway cars. 16-84 TRANSIT ADVERTISING APPLICATION London Underground (subway) platforms are famous for their lively mix of advertisements— witty and amusing. One disadvantage of transit advertising is that heavy travel times often do not permit riders to read advertising copy. These ads are examples of: a. serial advertising. b. billboard advertising. stadium advertising. transit advertising informs and entertains commuters during time on platforms or at bus stops as well as inside transport. advertising on bus backs. and taxis. Transit advertising is a form of outdoor advertising. e. subway cars. . subway and commuter trains. transitional advertising. and taxis. frequency. d. Transit routes can provide geographic selectivity of audiences for advertisers. advertising in subways. d. Transit routes can provide geographic selectivity of audiences for advertisers.16-82 OUTDOOR-BILLBOARDS The most common form of outdoor advertising is: a. Transit advertising includes the interior and exterior of buses. informative. and large enough to be easily read. b. DEFINITION Answer: e Page: 351.

d. or theaters—called: a. how often a consumer will try a competitive brand before returning to the original choice. c. the less repetition is required DEFINITION Answer: e Page: 352 Rationale: Text term definition—purchase frequency 1069 . product placements. b. d. e. electronic advertising.16-85 OTHER MEDIA CONCEPTUAL As traditional media have become more expensive and cluttered. invasive placements. Answer: a Page: 352 Rationale: Place-based media include messages placed in locations that attract a specific target audience such as airports. the amount of time between trial and first repeat purchase of a given product the amount of time it takes each generation to enter the product life cycle how often a consumer will try a competitive brand before returning to the original choice how often new buyers enter the market to buy the product the more frequently the product is purchased. e. how often new buyers enter the market to buy the product. health clubs. c. the amount of time it takes each generation to enter the product life cycle. place-based media. the ratio that shows the more frequently the product is purchased. Beach ‘n Billboard will even imprint ads in the sand on a beach! 16-86 BUYER TURNOVER Buyer turnover is defined as: a. cooperative advertising. DEFINITION Answer: d Page: 352 Other Location: web Rationale: Text term definition—buyer turnover 16-87 PURCHASE FREQUENCY Which of the following is the definition for purchase frequency? a. b. b. and theaters. advertisers have been attracted to a variety of nontraditional advertising options—in airports. the amount of time between repeat purchases of a given product. d. c. the less advertising repetition is required. doctors' offices. e. doctors’ offices.

buyer turnover. suntan lotion. flighting (intermittent). incessant. b. seasonal. and continuous. e. c. b. DEFINITION Answer: c Page: 352 Rationale: The three approaches to setting advertising schedules are continuous (steady). and pulsing. . sweeping. and continuous. the frequency rate. d. snow blowers. intermittent. d. d. 16-90 CONTINUOUS SCHEDULE Continuous scheduling would most likely be used for advertising: a. bursting. e. pulse. e. APPLICATION Answer: c Page: 352 Rationale: Continuous schedule advertising is run at a steady or regular schedule throughout the year when demand and seasonal factors are unimportant. flexible. the forgetting rate. brand awareness rate. and infrequently.16-88 FORGETTING RATE DEFINITION The speed with which buyers forget about a brand if advertising is NOT seen is called: a. c. and pulse (burst). flighting. These conditions apply to bathroom cleaner and not to the other four products. seasonal. continuous. b. Answer: d Page: 352 Rationale: Text term definition—forgetting rate 16-89 ADVERTISING SCHEDULES The three approaches to setting advertising schedules are: a. bathroom cleaner. toys. school supplies. and sweeping. c. product recall dissipation rate.

16-91 CONTINUOUS SCHEDULE A __________ schedule is used when seasonal factors are unimportant. a. b. c. d. e. continuous flighting intermittent pulse burst

DEFINITION

Answer: a Page: 352 Rationale: Text term definition—continuous schedule 16-92 FLIGHTING SCHEDULE DEFINITION

A basic approach to scheduling, in which periods of advertising are scheduled between periods of no advertising to reflect seasonal demand is called: a. b. c. d. e. sustaining. dripping. flighting. pulsing. bursting.

Answer: c Page: 352 Rationale: Text term definition—flighting schedule 16-93 FLIGHTING SCHEDULE Flighting schedules would most likely be used for advertising: a. b. c. d. e. wood-burning stoves. crackers bottled water. breakfast cereal bathroom cleaner. APPLICATION

Answer: a Page: 352 Rationale: Flighting schedules are used between periods of no advertising to reflect seasonal demand for a product based on market behavior. Wood-burning stoves would sell better in late fall and winter, so would need advertising at that time.

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16-94 PULSE SCHEDULE

DEFINITION

A flighting schedule combined with a steady schedule because of increases in demand, heavy periods of promotion, or introduction of a new product is called a(n): a. b. c. d. e. drip schedule. blitz schedule. pulse schedule. turnover schedule. intermittent schedule.

Answer: c Page: 352 Rationale: Text term definition—pulse schedule 16-95 PULSE SCHEDULE Pulse scheduling would most likely be used for advertising: a. b. c. d. e. bathroom cleaner. breakfast cereal. socks. motor oil. holiday candy. APPLICATION

Answer: e Page: 352 Rationale: Pulse or burst scheduling is when a flighting schedule is combined with a continuous schedule because of increases in demand, heavy periods of promotion, or introduction of a new product. Alternatives a, b, c, and d all have a relatively stable demand. Candy however, would most likely need heavier promotion before Halloween, Valentine's Day, Mother's Day, etc. 16-96 CHOOSING ADVERTISING MEDIA APPLICATION

A retail store marketing vice president is developing an advertising budget using the objective and task method. She has the objective of clearing slow-moving merchandise from her shelves and is trying to choose between radio and newspaper ads. Which of the following is an advantage of radio relative to newspaper as a means of achieving the objective? a. b. c. d. e. better reach more effective visuals ads can be saved by consumers better segmentation capability more effective in conveying complex information

Answer: d Page: 350; Figure 16-2 Rationale: Better segmentation is a radio strength. The other alternatives are advantages offered by newspapers when compared to radio.

16-97 EXECUTING THE ADVERTISING PROGRAM

CONCEPTUAL

Which of the following statements is true about executing the advertising program? a. b. c. d. e. Execution involves pretesting the copy and carrying out the advertising program. Advertising is evaluated to ensure that their advertising expenditures are not wasted. Evaluation is done before the advertisements are run in the campaign. Evaluation is done after the advertisements are run in the campaign. All of the above statements about executing the advertising program are correct.

Answer: e Page: 352 Rationale: Executing the advertising program involves pretesting the advertising copy and actually carrying out the advertising program. By evaluating advertising efforts marketers can try to ensure that their advertising expenditures are not wasted. Evaluation is done usually at two separate times: before and after the advertisements are run in the campaign. 16-98 PRETESTS DEFINITION

Tests conducted before an advertisement is placed in any medium to determine whether the advertisement communicates the intended message or to select between alternative versions of the advertisement are called: a. b. c. d. e. preliminary screenings. experience testing. exposure testing. pretests. posttests.

Answer: d Page: 353 Rationale: Key term definition—pretests 16-99 PRETESTS CONCEPTUAL

Because advertising is expensive, marketers want to be certain the advertisements they run communicate the intended message to the target audience. In order to accomplish this communication goal, marketers conduct __________ before advertisements are placed in a medium. a. b. c. d. e. market research surveys advertising matrix evaluations pretests alternative media searches

Answer: d Page: 353 Rationale: To determine whether the advertisement communicates the intended message or to select among alternative versions of the advertisement, pretests are conducted before the advertisements are placed in any medium.

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present consumers with a sample of a product and several different advertisements for the product. The ad is then removed. how much it drew their attention. CONCEPTUAL Answer: a Page: 353 Rationale: Jury tests involve showing the ad copy to a panel of consumers and having them rate how much they liked it. . This approach is similar to the portfolio test in that consumer reactions are obtained. They are asked to select the one they think is most effective and explain why. unlike the portfolio test. They are asked to select the one they think is most effective and explain why. c. and then ask consumers for their impressions of the ads. b. use electronic devices to measure viewer response or feelings after viewing an advertisement. present a panel of consumers with an ad and ask for their reactions concerning the ad's effectiveness. d. Answer: d Page: 353 Other Location: web Rationale: A portfolio test places an ad in a portfolio with several other ads and stories and consumers are asked to read through the portfolio. etc. CONCEPTUAL present a panel of consumers with an ad and ask for their reactions concerning the ad's effectiveness. c. However. The ad is then removed. present consumers with a hidden ad. use electronic devices during or questionnaires after consumers view an advertisement to measure viewer response or feelings. and the respondents are asked to recall as much pertinent information as possible.16-100 PORTFOLIO TESTS Portfolio tests: a. a test advertisement is not hidden within other ads. place a test ad in the midst of other ads and stories. 16-101 JURY TESTS Jury tests: a. present a panel of consumers with an ad for a limited period of time. b. appeal. d. present consumers with a sample of a product and several different advertisements for the product. e. appeal. present a panel of consumers with an ad for a limited period of time. instruct consumers to look at the ads and stories. e. etc. and the respondents are asked to recall as much pertinent information as possible. which they are asked to recall. and how attractive they thought it was.

This approach is similar to the portfolio test in that consumer reactions are obtained. 1075 . a test advertisement is not hidden within other ads. e. b. c. CONCEPTUAL Answer: a Page: 353 Rationale: Theater testing is the most sophisticated form of pretesting. However. a. c. sales test. e. how much it drew their attention. attitude test.16-102 JURY TESTS CONCEPTUAL __________ involve showing ad copy to a panel of consumers and having them rate how they liked it. and how attractive they thought it was. how much it drew their attention. b. and how attractive they thought it was. d. Viewers register their feelings about the advertisements either on hand-held electronic recording devices used during the viewing or on questionnaires afterward. jury test. theater test. d. unlike the portfolio test. Focus groups Portfolio tests Jury tests Theater tests Performance tests Answer: c Page: 353 Rationale: Jury tests involve showing the ad copy to a panel of consumers and having them rate how much they liked it. 16-103 THEATER TESTS The most sophisticated form of pretest is the: a. Consumers are invited to view new television shows or movies in which test commercials are also shown. portfolio test.

b. 16-105 FULL-SERVICE AGENCY DEFINITION A(n) ___________ is an advertising agency provides the most complete range of services. Consumers are invited to view new television shows or movies in which test commercials are also shown. present a panel of consumers with an ad for a limited period of time. artwork. c. full-service advertising agency. use electronic devices during or questionnaires after consumers view a TV advertisement to measure viewer response or feelings. limited-service advertising agency. Inc. developed the “Softer Side of Sears” campaign for Sears to target middle-income women. including market research. and the respondents are asked to recall as much pertinent information as possible. e. media selection. copy development. Young and Rubicam is an example of a(n): a. artwork. Answer: c Page: 353 Rationale: Full-service advertising agencies provide a complete range of services including . etc. media selection. c. present consumers with a sample of a product and several different advertisements for the product. b. Viewers register their feelings about the advertisements either on hand-held electronic recording devices used during the viewing or on questionnaires afterward. b. e. The ad is then removed. d. image consultant. appeal. CONCEPTUAL present a panel of consumers with an ad and ask for their reactions concerning the ad's effectiveness. and production services for Sears. d. present consumers with a hidden ad. d. a. in-house agency. and production. This agency provided marketing research. consulting firm. which they are asked to recall. Answer: e Page: 353 Other Location: web Rationale: Theater testing is the most sophisticated form of pretesting. They are asked to select the one they think is most effective and explain why. limited-service agency full spectrum agency full-service agency multi-service agency in-house agency Answer: c Page: 353 Rationale: Key term definition—full-service agency 16-106 FULL-SERVICE AGENCY APPLICATION Young and Rubicam. e. c. copy development.16-104 THEATER TESTS Theater tests: a.

copy development. artwork and production.marketing research. media selection. 1077 .

c. d. b. b. c. b. d. full-service agency in-house agency modified-service agency promotional firm limited-service agency Answer: e Page: 353 Rationale: Key term definition—limited-service agencies 16-108 IN-HOUSE AGENCY DEFINITION An __________ made up of the company’s own advertising staff may provide full services or a limited range of services. exposure testing. a. pretests. Answer: d Page: 353 Rationale: Key term definition—posttests . d. c. e. e. experience tests. e. posttests. intrafirm agency promotional department full-service agency in-house agency limited-service agency Answer: d Page: 353 Rationale: Key term definition—in-house agency 16-109 POSTTESTS DEFINITION Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose are referred to as: a. control testing.16-107 LIMITED-SERVICE AGENCIES DEFINITION A __________ is an advertising agency that specializes in one aspect of the advertising process such as providing creative services to develop advertising copy or buying previously unpurchased media space. a.

16-110 POSTTESTS Which of the following is NOT an example of an advertising posttest? a. or listening. viewing. c. Alternatives a. 1079 . e. With aided recall posttests. respondents are asked questions to measure changes in their attitudes after an advertising campaign. and d are pretests. e. a distributor. a question such as. viewing. c. c. product samples. In an aided recall posttest. or premiums are offered to an ad's readers or viewers. theater tests portfolio tests sales tests jury tests all of the above CONCEPTUAL Answer: c Page: 354 Rationale: Sales tests allow a manufacturer. "What ads do you remember seeing yesterday?" is asked of respondents without any other prompting to determine whether they saw or heard advertising messages. d. b. additional product information. d. respondents are first shown an ad and then asked whether their previous exposure to it was through reading. 16-112 AIDED RECALL Which of the following statements about aided recall posttests is true? a. or listening. In an aided recall posttest. attitude tests theater tests inquiry tests sales tests recall tests CONCEPTUAL Answer: b Page: 354 Rationale: Theater tests are a type of pretest. e. CONCEPTUAL Answer: e Page: 354 Rationale: After being shown an ad. or an advertising agency to manipulate an advertising variable (such as schedule or copy) and observe subsequent sales effects by monitoring data collected from checkout scanners in supermarkets. such as whether they had a more favorable attitude toward the product advertised. Aided recall posttests involve studies such as controlled experiments and consumer purchase tests. respondents are asked whether their previous exposure to it was through reading. With aided recall posttests. d. b. and ads generating the most inquiries are presumed to be the most effective. b. b. 16-111 POSTTESTS Which of the following is a type of posttest used for advertising messages? a.

a. 16-115 UNAIDED RECALL APPLICATION As a subscriber to Fitness magazine. who saw or read any part of the ad identifying the product or brand. "What ads do you remember seeing yesterday?" is asked of respondents without any prompting to determine whether they saw or heard advertising messages when using unaided recall posttests. inquiry testing. . e. b. recognition-readership testing. c. b. prompted response testing. which ads she remembered seeing in the most recent issue of the magazine. c. a. and who read at least half of the ad. b. Then she was asked questions about the content and appearance of the ads she remembered. Elements of the ad are then tagged with the results. d.16-113 AIDED RECALL-STARCH TEST DEFINITION The __________ test uses aided recall to determine the percentage of those who remember seeing a specific magazine ad. who saw or read any part of the ad identifying the product or brand. attitude Starch prompted response inquiry concept Answer: b Page: 354 Rationale: The Starch test determines the percentage of those who remember seeing a specific magazine ad. c. The researcher was using __________ to test the effectiveness of ads in the magazine. attitude testing. d. concept testing. 16-114 AIDED RECALL The other name used for aided recall tests is: a. d. and who read at least half of the ad. It is a type of aided recall test. e. inquiry testing concept testing unaided recall portfolio testing aided recall Answer: c Page: 354 Rationale: A question such as. DEFINITION Answer: b Page: 354 Rationale: Aided recall tests are also called recognition-readership tests. e. Kelly was asked by a researcher.

respondents are first shown an ad and then asked whether their previous exposure to it was through reading. or premiums are offered to an ad's readers or viewers. In an unaided recall posttest. d. additional product information. In an unaided recall posttest . a question such as. a question such as. or premiums are offered to an ad's readers or viewers. With unaided recall posttests. Attitude tests involve studies such as controlled experiments and consumer purchase tests. Answer: b Page: 354 Other Location: web Rationale: A question such as. With attitude tests. viewing. respondents are first shown an ad and then asked whether their previous exposure to it was through reading. or listening. "What ads do you remember seeing yesterday?" is asked of respondents without any other prompting to determine whether they saw or heard advertising messages. 1081 . viewing. c. b. "What ads do you remember seeing yesterday?" is asked of respondents without any other prompting to determine whether they saw or heard advertising messages. such as whether they had a more favorable attitude toward the product advertised. In an attitude test. such as whether they had a more favorable attitude toward the product advertised. product samples. "What ads do you remember seeing yesterday?" is asked of respondents without any prompting to determine whether they saw or heard advertising messages when using unaided recall posttests. e. or listening. 16-117 ATTITUDE TESTS Which of the following statements about attitude tests is true? a. and ads generating the most inquiries are presumed to be the most effective. e. CONCEPTUAL With unaided recall posttests. CONCEPTUAL Answer: d Page: 354 Rationale: When using attitude posttests. product samples. b. With attitude tests. In an attitude test. and ads generating the most inquiries are presumed to be the most effective. c. Unaided recall posttests involve studies such as controlled experiments and consumer purchase tests. such as whether they have a more favorable attitude toward the product advertised. d.16-116 UNAIDED RECALL Which of the following statements about unaided recall posttests is true? a. respondents are asked questions to measure changes in their attitudes after an advertising campaign. respondents are asked questions to measure changes in their attitudes after an advertising campaign. additional product information. respondents are asked questions to measure changes in their attitudes after an advertising campaign.

and ads generating the most inquiries are presumed to be the most effective. a question such as. b. additional product information. b. or premiums are offered to an ad's readers or viewers. Answer: a Page: 354 Rationale: With inquiry tests. product samples. or listening. such as whether they had a more favorable attitude toward the product advertised. such as whether they had a more favorable attitude toward the product advertised. d. respondents are first shown an ad and then asked whether their previous exposure to it was through reading. and ads generating the cost inquiries are presumed to be the most effective. e. respondents are asked questions to measure changes in their attitudes after an advertising campaign. viewing. With sales tests. or premiums are offered to an ad's readers or viewers. a distributor. respondents are asked questions to measure changes in their attitudes after an advertising campaign. In an inquiry test. additional product information. d. In a sales test. a question such as. Inquiry tests involve studies such as controlled experiments and consumer purchase tests. In an inquiry test. c. Sales tests allow a manufacturer. e. With sales tests. product samples. With inquiry tests. or listening. a distributor. 16-119 SALES TESTS Which of the following statements about sales tests is true? a. or an advertising agency to manipulate an advertising variable (such as schedule or copy) and observe subsequent sales effects.16-118 INQUIRY TESTS Which of the following statements about inquiry tests is true? a. In a sales test. or premiums are offered to an ad's readers or viewers. CONCEPTUAL Answer: c Page: 354 Rationale: Sales tests allow a manufacturer. or an advertising agency to manipulate an advertising variable (such as schedule or copy) and observe subsequent sales effects by monitoring data collected from checkout scanners in supermarkets. c. respondents are first shown an ad and then asked whether their previous exposure to it was through reading. additional product information. . viewing. CONCEPTUAL With inquiry tests. "What ads do you remember seeing yesterday?" is asked of respondents without any other prompting to determine whether they saw or heard advertising messages. product samples. "What ads do you remember seeing yesterday?" is asked of respondents without any other prompting to determine whether they saw or heard advertising messages. and ads generating the most inquiries are presumed to be the most effective.

which are directed to ultimate consumers and are used to support advertising and personal selling. and sale items. are sales tools used to support a company’s advertising and personal selling. publicity. indirectly paid presentation of a company or its products. Winston actively scans the supermarket ads in the local newspaper for coupons. rebates. Examples are news releases. manufacturers promotions. d. sale items. d. c. public service promotions. e. Answer: e Page: 354 Other Location: web Rationale: Key term definition—consumer-oriented sales promotions 16-121 CONSUMER-ORIENTED SALES PROMOTIONS DEFINITION Sales promotions. rebates. channel promotions. b. c. sales tools used to support advertising and personal selling. 1083 . premiums. personal selling. sweepstakes. methods used to get a nonpersonal. b. deals. are called: a. DEFINITION promotions where charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. The coupons. consumer-oriented sales promotions. contests. advertising.16-120 CONSUMER-ORIENTED SALES PROMOTIONS Consumer-oriented sales promotions are: a. consumer-oriented sales promotions. news conferences. point-of-purchase displays. and public service announcements advertisements that show actual consumers using the product. c. The alternative consumer-oriented sales promotion tools include coupons. Answer: d Page: 354 Rationale: Directed to ultimate consumers. Winston also looks for free samples of new products and products he hasn't purchased previously. direct marketing. e. and product placement. While in the store. sales promotions that supplement advertising and personal selling but are directed to wholesalers. sales promotion. or simply consumer promotions. retailers. and free samples are all examples of: a. samples. continuity programs. trade promotions. d. b. Answer: b Page: 354 Rationale: Key term definition—consumer-oriented sales promotions 16-122 CONSUMER-ORIENTED SALES PROMOTIONS APPLICATION When preparing his grocery shopping list. e. or distributors. rebates.

b. In recent years. d. contests. the number of coupons with multiple-purchase requirements. The redemption rate is typically about 2 percent. CONCEPTUAL Answer: d Page: 355 Rationale: Coupons are sales promotions that usually offer a discounted price to the consumer. are sales tools used to support a company’s advertising and personal selling. a consumer-oriented sales promotion. continuity programs. and product placement. the average face value of coupons. and the time until expiration have all been increasing. the primary objective of coupons is to: a. This type of incentive offer is an example of: a. stimulate supply. mass-market communication. encourage present customers to buy more. 16-124 COUPONS For marketers. . The free pizza with the purchase of one pizza at regular price is a deal or short-term price reduction. and minimize brand switching behavior. e. which encourages trial. consumer encoding. samples. c. or simply consumer promotions. e. a trade promotion. and redemption. rebates. sweepstakes. The alternative consumer-oriented sales promotion tools include coupons. c. d. Coupons are far more expensive than the face value of the coupon because additional costs include paying for the advertisement to deliver it. consumer-oriented sales promotions. encourage repeat purchases. clearinghouse costs. b.16-123 CONSUMER-ORIENTED SALES PROMOTIONS APPLICATION The offer of one free pizza with the purchase of one pizza at the regular price might appeal to you one evening. increase trial and retaliate against competitor's actions. dealer handling. encourage trial. Answer: c Page: 354 Rationale: Directed to ultimate consumers. point-of-purchase displays. premiums. consumer feedback. deals.

downloaded from an internet site. the average face value of coupons.25 if you clip the ad and use it at the supermarket for your next purchase of Birdseye lima beans. b. value. dealer handling. e. b. rebate sample coupon deal premium Answer: c Page: 355 Rationale: Coupons are sales promotions that usually offer a discounted price to the consumer. (2) Coupon collectors often sell coupons by the pound to retailers who are paid full face value by manufacturers. can be manipulated and copied with computers. d. 16-126 ETHICS AND SOCIAL RESPONSIBILITY ALERT CONCEPTUAL Which of the following describes a method used by coupon cheaters to defraud consumer goods manufacturers? a. clearinghouse costs. Counterfeiters print rebate forms and proofs of purchase to collect big cash rebates without buying the goods. Birdseye is using a __________ to stimulate demand for its lima beans. (4) Counterfeiters print rebate forms and proofs of purchase to collect big cash rebates without buying the goods. and the time until expiration have all been increasing. even though the products were not sold. All of the above are methods used by coupon cheaters to defraud consumer goods manufacturers. Answer: e Page: 355 Rationale: Coupon scams include: (1) Some scam artists set up a fake store and send coupons to manufacturers for payment. 1085 . (5) The coupon bar code. Some scam artists set up a fake store and send coupons to manufacturers for payment. e. In recent years. the number of coupons with multiple-purchase requirements.16-125 COUPONS APPLICATION By placing an ad in the Sunday paper with an offer to save $. a. Coupon collectors often sell coupons by the pound to retailers who are paid full face value by manufacturers. c. d. or even the offer. The redemption rate is typically about 2 percent. Coupons are far more expensive than the face value of the coupon because additional costs include paying for the advertisement to deliver it. Retailers increase their refunds by adding extra coupons to those handed in by shoppers. and redemption. even though the products were not sold. c. which encourages trial. (3) Retailers increase their refunds by adding extra coupons to those handed in by shoppers.

the primary objective of a deal is to: a. b. d.16-127 ETHICS AND SOCIAL RESPONSIBILITY ALERT A marketer who wanted to reduce coupon and rebate fraud should: a. a deal a contest a premium a rebate a sample Answer: a Page: 355 Rationale: A deal is a sales promotion that offers a short-term price reduction. d. 16-128 DEALS APPLICATION The sign at the entrance to the men's store reads. 16-129 DEALS For marketers. e. encourage present customers to buy more. the company responds with a “two packages for the price of one” deal. get a second shirt of equal or lower value for only one dollar. do all of the above. This short-term price reduction builds up the stock on the kitchen shelves of cake mix buyers and makes the competitor’s introduction more difficult. the company responds with a “two packages for the price of one” deal. e. For example. increase trial among potential customers as a retaliation against competitors' actions. b. c. if a rival manufacturer introduces a new cake mix. which should minimize brand switching behavior. encourage new product trial. include a secret code on the coupon. For example. CONCEPTUAL Answer: b Page: 355 Rationale: A deal is a sales promotion that offers a short-term price reduction. commonly used to increase trial among potential customers or to retaliate against a competitor’s actions. if a rival manufacturer introduces a new cake mix. extend a product's life cycle. b. require hand-written redemption requests. encourage repeat purchases. e. This short-term price reduction builds up the stock on the kitchen shelves of cake mix buyers and makes the competitor’s introduction more difficult. "Buy one shirt. d. make the coupon look as complex as possible. c. commonly used to increase trial among potential customers or to retaliate against a competitor’s actions. c." Which type of sales promotion is the men's store is using? a. . print coupons and forms in at least five colors. CONCEPTUAL Answer: a Page: 355 Rationale: Some of the steps being taken to reduce coupon and rebate fraud include requiring handwritten redemption requests and requesting a proof of purchase.

e. Answer: c Page: 355 Rationale: A premium is a sales promotion that consists of offering merchandise free or at significant savings over its retail price. c. d. a deal a premium a rebate a coupon a sample Answer: b Page: 355 Other Location: web Rationale: A premium is a sales promotion that consists of offering merchandise free or at a significant savings over retail. By offering a premium. b. This seat cushion is an example of a: a. rebate. d. Answer: c Page: 355 Rationale: A premium is a sales promotion that consists of offering merchandise free or at significant savings over its retail price. companies encourage customers to return frequently or to use more of the product. companies encourage customers to return frequently or to use more of the product." This ad was offering customers a: a. "Send three proofs of purchase and $3 for postage and handling to receive your monogrammed T-shirt. 16-132 PREMIUM APPLICATION What type of sales promotion is McDonald's using when it sells drinking glasses commemorating the 100th birthday of Walt Disney to consumers who also purchase a Happy Meal? a. 1087 . deal. coupon. d. premium. premium. By offering a premium. c. c. sample. deal. companies encourage customers to return frequently or to use more of the product. rebate. e. sample. b. coupon. 16-131 PREMIUM APPLICATION A print ad for Allegra allergy medication offers a free purple seat cushion to all who request additional information about the drug. b. e. By offering a premium.16-130 PREMIUM APPLICATION The radio commercial said.

minimize brand switching behavior. companies encourage customers to return frequently or to use more of the product. the primary objective of a premium is to: a. contest. sweepstakes. premium. deal. d. e. Answer: d Page: 355 Rationale: Contests are sales promotions in which customers apply their creative skills or analytical thinking to win a prize. c. c. encourage present customers to buy more. increase trial and retaliate against competitors' actions. b. 16-134 SELF-LIQUIDATING PREMIUM DEFINITION A premium is called __________ when the cost charged to the consumer covers the cost of the item." This ad was promoting a: a. Sweepstakes are based on chance (luck) while contests require some skill. Answer: a Page: 355 Rationale: A premium is a sales promotion that consists of offering merchandise free or at significant savings over its retail price. b. . e. d. end-run sample. self-liquidating cost-covered value-premium company value premium customer value premium Answer: a Page: 355 Rationale: Text term definition—self-liquidating 16-135 CONTESTS APPLICATION The ad advised readers to "try your skill at using our cream cheese to create an exciting new recipe and you may be the winner of a trip for two to Hawaii. e. d. CONCEPTUAL encourage customers to return frequently or to use more of the product. c. a.16-133 PREMIUM For marketers. encourage new product trial. generate store traffic. b. By offering a premium.

contests. premium. The person who has found the most errors wins a chance to visit the set where the show is taped and have a walk-on role. contest. This is an example of a: a. Premiums Rebates Deals Contests Sweepstakes Answer: e Page: 356 Rationale: Sweepstakes are sales promotions that require participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer. and games to regulate their fairness. b. c. sweepstakes. d. Sweepstakes are based on chance (luck) while contests require some skill. e. and guarantee that the prizes are actually awarded. trade promotion. b. c. Federal laws. The approach is very effective. finding the errors and sending the list to California requires some skill and the prize is a trip to the set and a walk-on role. 1089 . ensure that the chance for winning is represented honestly. d. In this case. Answer: d Page: 355 Other Location: web Rationale: Contests are sales promotions in which customers apply their creative skills or analytical thinking to win a prize. and state legislatures have issued rules covering sweepstakes. a. the Federal Trade Commission.16-136 CONTESTS APPLICATION The first week of April. e. the Drew Carey television show premiers a show that is full of errors and asks viewers to record all the errors they can and send the list to an address in California. 16-137 SWEEPSTAKES DEFINITION __________ are sales promotions that require participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer. deal.

16-139 SAMPLES APPLICATION Taco Bell introduced its new low-fat Border Lights fare by giving away 8 million free tacos and burritos in one day. d. e. A trial size is generally offered that is smaller than the regular package size. the Federal Trade Commission. it is hoped they will remember and buy the product. d. Federal laws. continuity. Taco Bell used a sales promotion technique called: a. a self-liquidating premium. Overall. and state legislatures have issued rules covering sweepstakes. The association is using a __________ to measure the effectiveness of its ads. ensure that the chance for winning is represented honestly.16-138 SWEEPSTAKES APPLICATION The California Pistachio Growers Association has an ongoing ad campaign in which it encourages people to think of pistachios when they think of good times and good friends. a. sampling puts the product in the consumer’s hands. If consumers like the sample. The approach is very effective.2 billion in sampling programs each year. and games to regulate their fairness. Answer: d Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price. . a rebate. sampling.org to register to win a prize of pistachios for a year. e. a special deal. b. contests. lottery contest premium sweepstakes deal Answer: d Page: 356 Rationale: Sweepstakes are sales promotions that require participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer. c. The ads ask readers to log onto www. companies invest more than $1. and guarantee that the prizes are actually awarded. b.pistachios. Often used for new products. c.

Overall. he found the paper in a plastic bag along with a box containing one dose of Alka-Seltzer Heartburn Relief medication. c. Which type of sales promotion is Alka-Seltzer using? a.2 billion in sampling programs each year. companies invest more than $1. sampling puts the product in the consumer’s hands. e. b. it is hoped they will remember and buy the product. it is hoped they will remember and buy the product. products which are classified as shopping goods products in the decline stage of their product life cycle commodity products like salt. sampling puts the product in the consumer’s hands. c. If consumers like the sample. A trial size is generally offered that is smaller than the regular package size. d. sugar. 16-141 SAMPLES Sampling is an appropriate strategy for which type of products? a. A trial size is generally offered that is smaller than the regular package size.16-140 SAMPLES CONCEPTUAL When Allyn went to get his newspaper. Often used for new products. e. Overall. companies invest more than $1. b. sampling a deal a premium a point-of-purchase display a introductory offer Answer: a Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price. Often used for new products. d. 1091 . If consumers like the sample. and baking soda products which are in the introductory stage of the product life cycle products which are classified as specialty goods CONCEPTUAL Answer: d Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price.2 billion in sampling programs each year.

Use a rebate to encourage customers to purchase the snack and increase customer confidence in the product. The manufacturer is interested in employing a sales promotion technique that will communicate the ease of preparation and encourage customers to try the product. it is hoped they will remember and buy the product. b. Merchandise lining Product enhancement Continuity programs Retail positioning Experiential decoding Answer: c Page: 356 Rationale: Continuity programs are a sales promotion tool used to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate. . e. Answer: e Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price. a. The most popular continuity programs today are the frequent flyer and frequent traveler programs used by airlines.2 billion in sampling programs each year. 16-143 CONTINUITY PROGRAMS CONCEPTUAL __________ is a sales promotion designed to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate. c. A trial size is generally offered that is smaller than the regular package size. d. b. Which method would it most likely employ? a. but the manufacturer believes customers are not buying the product as predicted because they are unfamiliar with calzones.16-142 SAMPLES APPLICATION Michael Angelo's Pepperoni Mini Calzones are easy-to-prepare snacks. d. c. and car rental services to reward loyal customers. Overall. Produce a point-of-purchase display that will be placed near a grocer's check-out register. Provide a premium to build customer goodwill by receiving reduced price merchandise. Use a demonstrator hired by the company to prepare the snack in a grocery store and give away the snacks to the shoppers. sampling puts the product in the consumer’s hands. Often used for new products. e. Advertise on television showing a mother preparing the snack in less than 60 seconds in the microwave. companies invest more than $1. hotels. If consumers like the sample.

d. and car rental services to reward loyal customers. a restaurant chain that is known for its Extra Juicy Hero sandwich. b.16-144 CONTINUITY PROGRAMS APPLICATION A Taste of Greece. d. impulse racks. and which is often located in high-traffic areas near the cash register or the end of an aisle are called: a. Answer: c Page: 357 Rationale: Text term definition—point-of-purchase display 1093 . wants to encourage repeat purchases and create customer loyalty. point-of-purchase displays. Which sales promotion should its employ? a. hotels. c. c. e. 16-145 POINT-OF-PURCHASE DISPLAYS DEFINITION A sales promotion that takes the form of an advertising sign. special promotional displays. action racks. consumer attention displays. which sometimes actually holds or displays the product. which allows buyers to earn free food after making a certain number of purchases free Extra Juicy Hero samples at local fairs and concerts Answer: d Page: 356 Rationale: Continuity programs are a sales promotion tool used to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate. b. The most popular continuity programs today are the frequent flyer and frequent traveler programs used by airlines. a two-for-the-price-of-one deal a coupon for a free soft drink with a Hero purchase a game with food prizes a trading stamp program. e.

premium. the time and trouble of mailing in a proof of purchase to get the rebate check often means that many buyers never take advantage of it. b. or a commercial for another product is called: a. d. d. 16-147 REBATES APPLICATION As Roderick was checking out of Office Depot. Answer: d Page: 357-358 Rationale: Key term definition—product placement . When the rebate is offered on lower-priced items. d. a sample a free standing insert a premium a point-of-purchase display a deal Answer: d Page: 357 Rationale: A sales promotion that takes the form of an advertising sign. product placement. the sales clerk said. In addition. coupon. b. product continuity. deal." Which sales promotion does this exemplify? a. this “slippage” is less likely to occur with frequent users of rebate promotions. "Mail in three UPCs and cash register tapes with the prices circled to receive a check for $25. a product deal. e. 16-148 PRODUCT PLACEMENT DEFINITION The consumer promotion that involves the use of a brand-name product in a movie. b. a product premium. a product sample. c. However. e. c. and which is often located in high-traffic areas near the cash register or the end of an aisle are called point-of-purchase displays. Answer: d Page: 357 Other Location: web Rationale: Rebates are sales promotions in which money is returned to the customers based on proof of purchase. “You'll probably want to take advantage of this offer. television show." The offer was an example of a: a. point-of-purchase.16-146 POINT-OF-PURCHASE DISPLAYS APPLICATION A brochure sent to retailers began with the following statement: "Retailers. these new sunglasses come with their own attractive free-standing carousel that fits perfectly next to your cash register.” The offer read. c. online consumers are more likely to take advantage of rebates. which sometimes actually holds or displays the product. video. e. rebate.

c. d. video. or distributors sales promotions which are directed to ultimate consumers and are used to support advertising and personal selling. product continuity. product placement. methods used to get a nonpersonal. promotions where charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. consumer promotions. sales promotions. For example. c. e. b. news conferences. indirectly paid presentation of a company or its products. sales tools directed used to support a company's advertising and personal selling directed to wholesalers. Answer: d Page: 358 Rationale: Product placement involves the use of a brand-name product in a movie. television show. DEFINITION Answer: d Page: 358 Rationale: Key term definition—trade-oriented sales promotions 16-151 TRADE-ORIENTED SALES PROMOTIONS DEFINITION Sales tools used to support a company's advertising and personal selling directed to wholesalers. e.16-149 PRODUCT PLACEMENT APPLICATION The frequent appearance of Snapple drink on UPN's Roswell TV show is an example of: a. a product deal. retailers. d. d. Another form of product placement uses new digital technology that can make “virtual” placements in any existing program. and public service announcements advertisements that show actual consumers using the product. a product premium. manufacturers promotions. Examples are news releases. e. the photo on page 357 shows Beaver’s father with a cell phone in his pocket! 16-150 TRADE-ORIENTED SALES PROMOTIONS Trade-oriented sales promotions are: a. c. a product sample. b. retailers. b. or distributors are called: a. or a commercial for another product. encoding promotional tools. trade-oriented sales promotions. Answer: a Page: 358 Rationale: Key term definition—trade-oriented sales promotions 1095 .

c. CONCEPTUAL coupons. d. consumer promotions. consumer promotions. e. rebates. retailers. a. and training of distributor's sales forces. or simply trade promotions. b. or distributors. allowances and discounts. functional allowance merchandise allowance case allowance finance allowance manufacturer's allowance Answer: c Page: 358 Rationale: Text term definition—case allowance . merchandise allowances. 16-153 MERCHANDISE ALLOWANCE DEFINITION A(n) __________ reimburses a retailer for extra in-store support or special featuring of a brand.16-152 TRADE-ORIENTED SALES PROMOTIONS Three commonly used trade promotions are: a. e. allowances and discounts. and (3) training of distributors’ sales forces. (2) cooperative advertising. organizational allowance merchandise allowance case allowance finance allowance manufacturer's enhancement Answer: b Page: 358 Rationale: Text term definition—merchandise allowance 16-154 CASE ALLOWANCE DEFINITION A __________ is a discount on each case of goods ordered during a specific period of time. d. d. and training of distributor's sales force. and points-of-purchase displays. Answer: b Page: 358 Other Location: web Rationale: Trade-oriented sales promotions. allowances and discounts. b. and merchandise allowances. are sales tools used to support a company’s advertising and personal selling directed to wholesalers. b. c. e. and discounts. There are three common approaches targeted uniquely to intermediaries: (1) allowances and discounts. c. cooperative advertising. a. cooperative advertising.

e. d. e. cooperative advertising. e. a finance allowance. c. c. 1097 . specialty advertising. d. This ad is an example of: a. c. Trade promotion programs Consumer promotion programs Cooperative advertising programs Cause-related marketing programs Shared-responsibility programs Answer: c Page: 358 Rationale: Key term definition—cooperative advertising 16-157 COOPERATIVE ADVERTISING APPLICATION While reading the newspaper. These are programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products. d. a case allowance. a. b. b.16-155 FINANCE ALLOWANCE DEFINITION A __________ pays retailers for financing costs or financial losses associated with consumer sales promotions. promotional allowance merchandise allowance case allowance finance allowance failure fee Answer: d Page: 358 Other Location: web Rationale: Text term definition—finance allowance 16-156 COOPERATIVE ADVERTISING DEFINITION __________ are programs in which a manufacturer pays a percentage of a retailer's local advertising expense for advertising the manufacturer's products. Belinda noticed an advertisement containing manufacturer's coupons from Kodak redeemable only at Target stores. Answer: a Page: 358 Rationale: Resellers often perform the important function of promoting the manufacturer's products at the local level. b. One common sales promotional activity is to encourage both better quality and greater quantity in the local advertising efforts of resellers through cooperative advertising. a merchandise allowance. a.

The manufacturer provides brochures to educate the reseller’s sales force. c. . Answer: e Page: 359 Rationale: One of the many functions the intermediaries perform is customer contact and selling for the producers they represent. strategic promotional implementation cooperative advertising pre-paid publicity distributor kickbacks manufacturer incentive advertising Answer: b Page: 358 Rationale: Resellers often perform the important function of promoting the manufacturer's products at the local level. c. Because the reseller’s sales force is often less sophisticated and knowledgeable about the products than the manufacturer might like. All of the above statements are true regarding manufacturer training of distributor sales forces. training can increase their sales performance. e. b. The sales force then uses these aids in selling situations. Sylvania also paid 50 percent of the cost of the advertisement. The manufacturer provides manuals to educate the reseller’s sales force. Sales force training can increase the reseller’s sales of the manufacturer’s products.16-158 COOPERATIVE ADVERTISING APPLICATION A hardware store owner placed an advertisement for Sylvania light bulbs in the local newspaper. e. a. It is in the best interest of the manufacturer to help train the reseller’s sales force. d. d. These are programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products. Both retailers and wholesalers employ and manage their own sales personnel. A manufacturer’s success often rests on the ability of the reseller’s sales force to represent its products. Sylvania provided the storeowner with several high-quality. Sylvania was using __________ in an attempt to encourage both better advertising quality and greater advertising quantity in the efforts of local resellers of its product. 16-159 TRAINING OF DISTRIBUTORS’ SALES FORCES CONCEPTUAL Which of the following is true regarding manufacturer training of distributor sales forces? a. In addition to supplying the advertising formats. The reseller’s sales force is often less sophisticated and knowledgeable about the products than the manufacturer would like. camera-ready sample advertisements. One common sales promotional activity is to encourage both better quality and greater quantity in the local advertising efforts of resellers through cooperative advertising. b. Training activities include producing manuals and brochures to educate the reseller’s sales force.

d. product placement. reminder advertising. e. publicity. directly paid presentation of a company or its products. Answer: b Page: 359 Rationale: Publicity is a method of obtaining nonpersonal presentation of an organization. One method used was an article about the company in Business 2. In this case. short-term inducements of value offered to arouse interest in buying a good or service. questionable methods of influencing stakeholder opinion about some action or proposed action that may be perceived by some as unethical. institutional advertising. c. examples are news releases.16-160 PUBLICITY Publicity tools are: a.0 magazine is a presentation of TransWave International without direct cost to the company.S. news conferences. or service without direct cost. but it must make itself known to oil companies. as more natural gas lines are being laid near population centers. b. and why the product was needed. Pipeline safety is becoming a big issue in the U.0 magazine. DEFINITION methods of tying charitable contributions of a firm directly to the customer revenues produced through the promotion of one of its products. what its product could do. c. Answer: d Page: 359 Rationale: Key term definition—publicity tools 16-161 PUBLICITY APPLICATION TransWave International is a small company that has developed a system that uses the Web and patented electronic sensors as an early-warning device for pipeline leaks. The article was an example of: a. good. 1099 . e. methods used to get a nonpersonal. the article in Business 2. This article described the company. or service without direct cost. methods of obtaining nonpersonal presentation of an organization. The timing is right for this company to be extremely successful. d. good. a sales promotion. b. and public service announcements.

e. e. c. announcement regarding changes in a company or product line.16-162 NEWS RELEASE DEFINITION In planning and obtaining publicity. informational meeting to which representatives of the media are invited. trade show news release infomercial double-page spread magazine insert Answer: b Page: 359 Rationale: Text term definition—news release 16-163 NEWS RELEASE APPLICATION An announcement that German pharmaceutical giant Bayer is looking for a buyer for its household insecticide business as part of its restructuring program is an example of which type of publicity tool? a. a. d. b. DEFINITION Answer: e Page: 359 Rationale: Text term definition—news conference . b. In this case it is the divestiture of the household insecticide business as part of Bayer’s restructuring program. publicity tool which utilizes high-visibility individuals in lobbying activities. free space or time in a newspaper or on a broadcast medium. c. d. meeting of top news executives to decide advertising policy. d. which is an announcement regarding changes in the company or the product line. 16-164 NEWS CONFERENCE A news conference is a(n): a. e. c. a frequently used tool is the __________. public service announcement news release lobbying sponsorship events management Answer: b Page: 359 Rationale: A news release consists of an announcement regarding changes in the company or the product line. b.

separated BMW from Mitsubishi and Ford. Answer: a Page: 359 Rationale: Text term definition—public service announcements (PSAs) 16-166 VIDEO CASE: FALLON WORLDWIDE CONCEPTUAL What was the promotional objective of Fallon Worldwide’s campaign for Lee Dungarees? a. c. Develop similarities between Lee and Levi’s. Create a “fashion” image for Lee. Gain favorable perceptions of Lee among young people. As a result. b. d. Gain favorable perceptions of Lee among older women. used an IMC approach including videostreaming on the Internet. quid pro quo ad.16-165 PUBLIC SERVICE ANNOUNCEMENT DEFINITION A publicity tool that is heavily relied on by nonprofit organizations. news conference. targeted 20 to 30 year-olds. 1101 . is accurately described by all of the above. Answer: e Page: 361-362 Rationale: Research showed Fallon Worldwide that Lee jeans was so associated with older women that it could not be repositioned. it helped Lee develop Lee dungarees for 17to 22-year olds. c. e. e. b. news moment. d. Find a role for Buddy Lee. c. b. e. d. adopted a “responsiveness” positioning for BMW. Answer: e Page: 527 Rationale: The alternatives a. news item. b. and which involves free space or time donated by the media is called a(n): a. and d all describe characteristics of the BMW campaign. c. public service announcement. 16-167 VIDEO CASE: FALLON CONCEPTUAL The ad campaign Fallon Worldwide advertising agency developed for BMW: a.

List and briefly define the four forms of institutional advertising. and where it can be found.CHAPTER 16 ADVERTISING. or where it is located. Four alternative forms of institutional advertising— advocacy. Answer: Institutional advertisements are designed to build goodwill or an image for an organization rather than promote a specific product or service. Their objective is to reinforce previous knowledge of a product. what it can do. pioneer. Page: 345 . • Competitive institutional advertisements promote the advantages of one product class over another and are used in markets where different product classes compete for the same buyers. ads tell people what a product is. competitive. • Pioneering institutional ads are used for new announcements about what a company is. competitive. or persuasive. What are their objectives? Answer: Product advertisements take three forms—pioneering. AND PUBLIC RELATIONS SHORT ESSAY QUESTIONS 16-168 PRODUCT ADVERTISING CONCEPTUAL Describe the three forms of product advertisements. Page: 344 16-169 INSTITUTIONAL ADVERTISING CONCEPTUAL Describe the objectives of institutional advertising. or informational. • Pioneering. • Advocacy ads simply state the position of a company on an issue. SALES PROMOTION. and reminder. and reminder—are often used. what it can do. Reminder institutional ads simply bring the company's name to the attention of the target market again. ads promote a specific brand's features and benefits. • Competitive. The objective of these messages is to persuade the target market to select the firm's brand rather than that of a competitor. • Reminder ads help consumers remember the brands they have purchased in the past.

rating. Like reach. When they want to reach the audience more than once. Cost per Thousand is the cost of reaching 1. Because advertisers try to maximize the number of individuals in the target market exposed to the message. the advertiser (or media planner) must balance reach and frequency. Although reach is important.000 individuals or households with the advertising message in a given medium or the cost of advertising divided by the number of thousands of individuals or households who are exposed. they must be concerned with reach. Rating is the percentage of households in a market that are tuned to a particular TV show or radio station. Page: 348-349 1103 . the advertisers are concerned with frequency. gross rating points (GRPs). advertisers are also interested in exposing their target audience to a message more than once because consumers often do not pay attention to advertising messages. Page: 348-349 16-171 BASIC TERMS OF ADVERTISING DEFINITION Media buyers use many terms to help select the right media for an advertising campaign. frequency. Define reach. Gross rating points are the reach multiplied by frequency. advertisers try to maximize reach in their target market at the lowest cost. and cost per thousand (CPM). In general. Frequency is the average number of times a person in the target audience is exposed to a message or advertisement.16-170 MEDIA SELECTION CONCEPTUAL What are the two conflicting goals advertisers face when choosing advertising media? What is the relationship of reach and frequency to these goals? Answer: The conflicting goals are maximizing exposure and minimizing costs. Answer: • • • • • Reach is the number of different people or households exposed to an advertisement. greater frequency is desirable but because of cost.

ads can be placed quickly.16-172 ADVERTISING MEDIA CONCEPTUAL List two advantages and two disadvantages of using television. high visibility. Radio Magazines Newspapers Internet May require a long time to “load” animation. opportunity for repeat exposure. targets specific audience. Disadvantages Very high cost and wasted coverage. interactive Low cost. ads can be clipped and saved. quick consumer response. humor. homes. ads and can placed and changed quickly. difficult to convey complex message. direct mail. Outdoor Direct Mail Page: 349-352. Can target specific audiences. Answer: Medium Television Advantages Use of sight and sound. high quality graphics. No visual element. Video and audio capabilities. Figure 16-2 . can target specific local audiences. High selectivity of audience. relatively high cost. Excellent coverage of local market. short life span. long life of ad. Ads compete for attention with other newspaper features. reaches up to 95 percent of U.S. High cost per contact and poor image. can use sound. magazines. competes for attention with other magazine features. short exposure time and perishable message. local market focus. poor color. effectiveness uncertain. and billboards for advertising. Long time needed to place an ad. newspapers. low cost. radio. can convey complex information. ads can be saved. Low cost. high-quality color. low selectivity of audience. and intimacy effectively. can contain complex information and personalized messages. criticized as a traffic hazard. Message must be short and simple.

the limited-service agency. To obtain your objectives. While you have an advertising department. heavy periods of promotion. to improve your website. Most companies tend to follow one of three basic approaches: 1) Continuous (steady) schedule is a steady or regular schedule throughout the year. copy development. At present the dealership has a limited service in-house agency. 3) Pulse (burst) schedule combines a continuous schedule with a flighting schedule because of seasonal demand. improve a website and produce a new advertising campaign if their only responsibility to date has been to place local newspaper ads. artwork. and the inhouse agency. which type of agency would you use and why? Answer: There are three types of agencies—the full-service agency. and to develop and produce a new advertising campaign.16-173 ADVERTISING SCHEDULING Identify the three different approaches used to schedule advertising. 2) Flighting (intermittent) schedule is when periods of advertising are scheduled between periods of no advertising to reflect seasonal demand. Page: 352 16-174 PRETESTING ADVERTISING DEFINITION What are the three types of pretests that can be conducted before advertising is placed in the media? Answer: The three types of pretests are: 1) portfolio tests 2) jury tests 3) theater tests. or the introduction of a new product. you are interested in using your advertising dollars wisely to develop your brand. CONCEPTUAL Answer: Setting schedules requires an understanding of how the market behaves. media selection. Probably the best type of agency to use would be a full-service agency such as Deutsch or Ogilvy because a full-service agency provides market research. and production—all requirements to meet your objectives. Page: 353 16-175 CARRYING OUT THE ADVERTISING PROGRAM APPLICATION As the owner of a mid-sized automobile dealer. These staff members may not have the expertise required to develop a brand. Page: 353 1105 . It is used when demand and seasonal factors are unimportant. its responsibility is to place ads in the local newspapers for daily and weekly specials.

unaided recall. Page: 353-354 16-177 ADVERTISING SERVICE PROVIDERS CONCEPTUAL Differentiate among full-service advertising agencies. Methods of pretesting advertising include portfolio tests. Posttests occur after an advertisement has been shown to the target audience. Page: 353 . including market research. and sales tests. They are conducted to determine whether the advertisement communicates the intended message or to select between alternative versions of the advertisement. Answer: Advertising programs can range from completely external to completely internal. The full-service agency provides the most complete range of services. artwork. media selection. Limited-service agencies specialize in one aspect of the advertising process such as providing creative services to develop the advertising copy or buying previously unpurchased media space. jury tests. Answer: Pretests are conducted before the advertisements are placed in any medium. Five approaches common in posttests are: aided recall. and in-house agencies as to services provided and composition. attitude tests. Finally.16-176 PRETESTING & POSTTESTING CONCEPTUAL Discuss the process of pretesting and posttesting advertising copy. copy development. Results of posttesting advertising are used to reach decisions about changes in the advertising program. Include a list of methods used for pretesting and posting in you answer. in-house agencies made up of the company's own advertising staff may provide full services or a limited range of services. Be sure to explain why marketers should pretest and posttest ad copy. and production. inquiry tests. Agencies that assist a client by both developing and placing advertisements have traditionally charged a commission of 15 percent of media costs. Limited-service agencies that deal in creative work are compensated by a contractual agreement for the services performed. and theater tests. The purpose of the posttest is to determine whether it accomplished its intended purpose. limited-service advertising agencies.

sends direct mail pieces to prospective customers. (2)unaided recall. A sweepstakes requires participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer. a large business-to-business software provider. and (5) sales tests. with the objective of generating leads for its sales force. Which type of posttest would be the best to use to evaluate the direct mail campaign? Answer: There are five types of posttests available to evaluate the advertising program: (1) aided recall. The latter is accomplished because customers build up inventory as a result of the deal and. Ads generating the most inquiries or leads for the sales force are presumed to be the most effective. Deals are short-term price reductions used to increase trial among potential customers or to retaliate against a competitor's actions. Page: 355-356 CONCEPTUAL CONCEPTUAL 1107 . (4) inquiry tests.) Page: 355 16-180 SALES PROMOTION What is the difference between a contest and a sweepstakes? Answer: A contest is where consumers apply their analytical skill or creative thinking to try to win a prize.16-178 EVALUATING THE ADVERTISING PROGRAM APPLICATION SAP. Page: 354 16-179 SALES PROMOTION What is the difference between a coupon and a deal? Answer: Coupons are sales promotions that offer a discounted price to the consumers. In this situation the inquiry tests would be the best to use because additional product information is offered to the ad’s readers. for example. (3) attitude tests. therefore. do not react to competitive actions (a new product introduction. They are typically used to encourage trial among consumers.

Kid-interesting point-of-purchase displays could be used to make the cereal stand out from the other choices. competitive product is being introduced. A sweepstakes with a savings bond or money toward a college education would encourage the consumer to purchase the product. lessening risk to the consumer to purchase because of reducing the effective price of the cereal.16-181 SALES PROMOTION APPLICATION When taking a walk down the supermarket aisle containing breakfast cereals. however the following would certainly be useful to the cereal manufacturer in increasing sales: 1. 4. the manufacturer would obtain lists of current or potential consumers from the entries that could be used in future promotions. Allowances and Discounts 2.T. By using a deal. Of course. Assuming your new chocolate frosted cereal targeted at children was allotted shelf space. what sales promotion tool(s) would you use to ensure the product’s success? Be sure to explain why you chose the sales promotion(s) that you did. Free samples in the store could be given out to the children (with Mom’s permission of course) to show Mom how much they like the cereal and thus encourage purchase. Deals such as buy one get one free could be used. This sales promotion should not be overused. the issue with this is obtaining the store space. Page: 355-357 16-182 TRADE-ORIENTED SALES PROMOTIONS What are three types of trade-oriented sales promotions? Answer: 1. 5. 2. the consumer would buy additional product and presumably then. Answer: The student might offer many different types of sales promotions. which will not come without cost. In addition. Cooperative Advertising 3. 6. it is apparent there is extensive competition among brands. however. especially if a new. or the customer will come to expect the lower price and not buy without a coupon. Coupons would stimulate sales in the long run. Training of Distributors’ Sales Forces Page: 358-359 DEFINITION . Product placement in movies targeted towards children would also be an effective way to increase sales as shown by the increase in Reese’s Pieces after the release of E. 3. not purchase the new competitive product.

Performance contracts between the manufacturer and trade member usually specify the activity to be performed. These programs involve a manufacturer paying a percentage of a retailer's local advertising expense for advertising the manufacturer's products. In addition to paying a part of the advertising space or time. the manufacturer often furnishes the retailer with a selection of different ad executions. which is based on the amount of the purchases the retailer makes of the manufacturer's products. The merchandise allowance then consists of a percentage deduction from the list case price ordered during the promotional period. 3. and a finance allowance are. A case allowance is a discount on each case ordered during a specific time period. These allowances are usually deducted from the invoice.16-183 TRADE-ORIENTED SALES PROMOTIONS DEFINITION Explain what a merchandise allowance. Answer: 1. a case allowance. such as a picture of the product in a newspaper with a coupon good at only one store. sometimes suited for several different media. Page: 358-359 16-184 COOPERATIVE ADVERTISING What is cooperative advertising? Answer: Cooperative advertising is a sales promotional activity to encourage both better quality and greater quantity in the local advertising efforts of resellers. Page: 358-359 DEFINITION 1109 . The finance allowance involves paying retailers for financing costs or financial losses associated with consumer sales promotions. A merchandise allowance is reimbursing a retailer for extra in-store support or special featuring of the brand. The percentage is often 50 percent up to a certain dollar limit. 2.

These include: 1. The objective of a news release is to inform a newspaper. The press release. or service without direct cost. good. Public service announcements are used heavily by not-for-profit organizations. consisting of an announcement regarding changes in the company or the product line. A recent study found that more than 40 percent of all free mentions of a brand name occur during news programs. 3. or other medium of an idea for a story. DEFINITION Answer: Publicity tools are several methods of obtaining nonpersonal presentation of an organization. radio station. The news conference is where representatives of the media are all invited to an informational meeting. PSAs are free space or time donated by the media.16-185 PUBLICITY TOOLS What are publicity tools? Give three examples. and advance materials regarding the content are sent. 2. Page: 359 .

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