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

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

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

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

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

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

established brand in the mature phase of the product life cycle. “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. Campbell’s is a well-known. b. Reminder advertising is good for products that have achieved a well-recognized position and are in the mature phase of their product life cycle. c. In this case. d. e. b. c. introduction maturity harvesting growth incubation Answer: b Page: 344 Other Location: web Rationale: Reminder advertising is used to reinforce previous knowledge of a product. e. advocacy comparative persuasive informative reminder Answer: e Page: 344 Rationale: Reminder advertising is used to reinforce previous knowledge of a product. 16-20 REMINDER ADVERTISING CONCEPTUAL Reminder advertisements are especially effective for products in which stage of the product life cycle? a.16-19 REMINDER ADVERTISING APPLICATION An ad for Campbell's soup reads. 1043 . Consumers just need to be reminded to purchase the brand. d. a.

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

public service announcements. competitive institutional ads. Four forms of institutional advertisements are often used: advocacy. Answer: d Page: 345 Rationale: The objective of institutional advertisements is to build good will or an image for an organization. reminder advertisements. compettive institutional. rather than promote a specific good or service. 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. c. c. Often this form of advertising is used to support the public relations plan or respond to negative publicity. d. rather than promote a specific good or service. institutional advertisements. Alternative d is incorrect as it is not one of the four listed forms.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. repositioning advertisements. Answer: c Page: 345 Rationale: Key term definition—institutional advertisements 16-25 INSTITUTIONAL ADVERTISEMENTS DEFINITION The objective of institutional advertisements is to __________. d. product advertisements. product institutional ads. e. pioneering institutional ads. and reminder institutional. e. 1045 . c. b. d. a. b. b. e. pioneering institutional. reminder institutional ads. advocacy ads.

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

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

promote a specific brand's features and benefits. what it can do. 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. . b. promote the advantages of one product class over another. In this example. state the position of a company on an issue. a. announce what a company is. reinforce previous knowledge of a product. 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. 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. The ads are not designed to sell specific brands. e. The ads are examples of __________ ads. d. or where it is located. The goal of the ad is to increase consumption of pistachio nuts.16-32 PIONEERING INSTITUTIONAL ADVERTISEMENTS The purpose of pioneering institutional advertisements is to: a. d. b. e. c. the California Pistachio Growers Association is suggesting eating pistachios in social situations instead of other nuts or snacks— competitive product classes to pistachios. c.

The ads are not designed to sell specific brands. state the position of a company on an issue. promote the advantages of one product class over another. a. e. state the position of a company on an issue. d. the Florida Department of Citrus is suggesting drinking orange juice instead of other beverages. what it can do. d. 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. DEFINITION Answer: d Page: 345 Rationale: Text term definition—reminder institutional advertisements 1049 . bring the company's name to the attention of the target market again.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. 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. and where it is located. promote a specific brand's features and benefits. b. 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. e. In this case. The goal of these ads is to increase demand for orange juice as it competes with other beverages. b. c. c. 16-35 COMPETITIVE INSTITUTIONAL ADVERTISEMENTS The purpose of competitive institutional advertisements is to: a. b. This is an example of a(n) __________ advertisement. what it can do. and where it is located. promote the advantages of one product class over another. reinforce previous knowledge of a product. tell people what a company is. e. promote a specific brand's features and benefits. tell people what a company is.

b. There was no mention of the company name or sign of a product in the ad. c.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. a. 16-38 ADVERTISING DECISION PROCESS: PLANNING The first step in the advertising decision process is: a. This can be applied to advertising. select the media. (2) specify the objectives. select the appeal. d. Figure 15-5 Other Location: web Rationale: As shown in Figure 15-5. . or trademark to the attention of the target market again. (6) schedule the promotion— advertising. set the budget. 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. (5) design the promotion—select the appeal for advertising. showing only the Mercedes logo on a chocolate simply reminded the audience of the Mercedes brand automobile. (3) set the budget. specify the objectives of the advertising program. In this case. identify the target audience. (4) select the right promotional elements—media for advertising. b. This ad was an example of __________ advertising. e. so the steps in developing the advertising program are (1) identify the target audience. d. the first step of the promotion decision process is developing the promotion program. e. CONCEPTUAL Answer: c Page: 345.

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

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

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

Humorous appeals. c. the homeowners tell the target audience how disaster can be averted by purchasing and using the advertised product. Such advertisements are using: a. In many of the ads. 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. e. 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. b. a. b. fear appeals.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. . Family appeals. family appeals. d. humorous appeals. sex appeals. Sex appeals. d. c. 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. When using fear appeals. Fear appeals.

d. d. 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. a. rhetorical appeals logical appeals humorous appeals sex appeals fear appeals Answer: d Page: 347 Rationale: Text term definition—sex appeals 1055 . life cycle appeal. e. or act. feel. and they have little impact on how consumers think. c. 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. c. fear appeal. men don't. 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. d. humorous appeal. 16-48 SEX APPEALS CONCEPTUAL Which of the following statements describes a problem with using sex appeals in advertising? a. The sex appeal of the ad can distract the audience from the product. “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. 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. Sex appeal typically fails to gain audience attention. 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.16-47 FEAR APPEALS APPLICATION An ad for Conesco Insurance asks the question. sex appeal. e. Answer: d Page: 347 Rationale: Sex appeals suggest to the audience that the product will increase the attractiveness of the user. What women find sexy. e. b. What men find sexy. women don't. 16-49 SEX APPEALS DEFINITION In advertising. b. rhetorical appeal. c. When using fear appeals. __________ suggest to the audience that the product will increase the attractiveness of the user. b.

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

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

advertising media. e. d. d. the need to shoot commercials in “exotic” locations has increased. newspapers radio television Internet Yellow Pages Answer: c Page: 348. c.000 small commercial production companies in the US. 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. outdoor and internet. b. micromarketing. and newspapers at $49. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a. e.950.000 to $15.000. d. . b.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. c.000) and as companies have developed global campaigns. Figure 16-1 Rationale: As shown in Figure 16-1. A high-quality 30-second TV commercial typically costs about $268. reach and frequency. b.000. A high-quality 30-second TV commercial typically costs about $268. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. The expenditures drop nearly in half for “other”. a decoder. c. followed by direct mail at $49. advertising expenditures at $59.S. the need to shoot commercials in “exotic” locations has increased. e.000. yellow pages.838.000 to produce.050. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements.000 to produce because actors are expensive ($12. As companies have developed global campaigns. television garners the largest amount of U. All of the above statements are true about creating the advertising message. There are about 2. media convergence. radio magazines.

1059 . e. 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. 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. d. b. b. e. In this instance the audience is one-fifth of households. c. 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. c. or a rating for the movie of 20. c. e. a.16-58 REACH DEFINITION __________ is defined as the number of different people or households exposed to an advertisement. b. d. which is 20 percent. what would be the movie's rating? a. d.

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

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. the CPM = $2. what would your cost per thousand (CPM) be? a.00. b. $5. This would give a comparison of the costs (financial effectiveness) for different media.g. c. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. cost per minute of television or radio time number of consumers exposed to an advertising message. direct mail versus television. b. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message. e. c.00 $1. 1061 .00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1. c. d.000 individuals or households with the advertising message in a given medium. in thousands.00.000 households (total 500. d. e. cost of reaching 1000 individuals or households with the advertising message. d.00 $4.00 $2. e. b.00 $3.000. each of which are divided by the multiple of their respective reach and frequency.000 divided by 500 equals $2.000 households for a cost of $1. or outdoor). 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. Thus. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1.000). radio. DEFINITION cost of one medium relative to the cost of other media (e. and $1.

frequency. b. gross rating points. Figure 16-2 Rationale: Television reaches extremely large audiences. has an unlimited amount of advertising time available. One of their primary advertising concerns was to expose customers in a limited market area to their advertising messages as often as possible. advertising themes. c. e. Answer: b Page: 349 Rationale: Key term definition—infomercials . e. 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. b. As such. print. Answer: b Page: 349. which is defined as the average number of times a person in a target audience is exposed to an ad. communicates with sight. advertisers seeking to expose targeted consumers to advertising message more than once are interested in frequency. is a low-cost medium. c. intrusionaries. sound. has a short exposure time. can target specific audiences. d. As such.16-67 FREQUENCY APPLICATION The owners of a small hardware store had a limited advertising budget. advocacy ads. c. cost per thousand. interstitials. infomercials. uses picture. and motion for effect. 16-68 TELEVISION CONCEPTUAL One of the advantages associated with television as an advertising medium is that it: a. advertorials. d. the owners of the store were very concerned with spending their advertising dollars wisely. reach. b. sound and motion. 16-69 INFOMERCIALS DEFINITION Program-length (30-minute) advertisements that take an educational approach to communication with potential customers are called: a. The owners of the hardware store were concerned with: a. e. d. can be used to convey complex messages.

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

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

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

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

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

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

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

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

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

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

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

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

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. posttests. a. control testing. e. c. e. d.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. b. 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. Answer: d Page: 353 Rationale: Key term definition—posttests . b. pretests. d. exposure testing. c. c. experience tests. a. d. b. e.

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

recognition-readership testing. prompted response testing. The researcher was using __________ to test the effectiveness of ads in the magazine. It is a type of aided recall test. inquiry testing concept testing unaided recall portfolio testing aided recall Answer: c Page: 354 Rationale: A question such as. and who read at least half of the ad. e. c. "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. 16-114 AIDED RECALL The other name used for aided recall tests is: a. which ads she remembered seeing in the most recent issue of the magazine. Elements of the ad are then tagged with the results. d. a. a. e.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. DEFINITION Answer: b Page: 354 Rationale: Aided recall tests are also called recognition-readership tests. attitude testing. e. c. d. who saw or read any part of the ad identifying the product or brand. b. b. Then she was asked questions about the content and appearance of the ads she remembered. 16-115 UNAIDED RECALL APPLICATION As a subscriber to Fitness magazine. d. concept testing. 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. inquiry testing. b. and who read at least half of the ad. . Kelly was asked by a researcher.

With attitude tests. or listening. With attitude tests. or listening. or premiums are offered to an ad's readers or viewers. viewing. 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. a question such as. and ads generating the most inquiries are presumed to be the most effective. "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. respondents are asked questions to measure changes in their attitudes after an advertising campaign. "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. and ads generating the most inquiries are presumed to be the most effective. a question such as. product samples. c. b. In an attitude test. respondents are asked questions to measure changes in their attitudes after an advertising campaign. 16-117 ATTITUDE TESTS Which of the following statements about attitude tests is true? a. Answer: b Page: 354 Other Location: web Rationale: A question such as.16-116 UNAIDED RECALL Which of the following statements about unaided recall posttests is true? a. Unaided recall posttests involve studies such as controlled experiments and consumer purchase tests. CONCEPTUAL Answer: d Page: 354 Rationale: When using attitude posttests. viewing. With unaided recall posttests. c. such as whether they had a more favorable attitude toward the product advertised. respondents are first shown an ad and then asked whether their previous exposure to it was through reading. additional product information. such as whether they had a more favorable attitude toward the product advertised. additional product information. such as whether they have a more favorable attitude toward the product advertised. d. e. respondents are first shown an ad and then asked whether their previous exposure to it was through reading. CONCEPTUAL With unaided recall posttests. 1081 . In an attitude test. e. respondents are asked questions to measure changes in their attitudes after an advertising campaign. or premiums are offered to an ad's readers or viewers. product samples. In an unaided recall posttest. In an unaided recall posttest . Attitude tests involve studies such as controlled experiments and consumer purchase tests.

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

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

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

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

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

d. c. 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. d. b. premium. coupon. c. 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. e. By offering a premium. premium. d. companies encourage customers to return frequently or to use more of the product. b. 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. 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. 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. c. coupon. b. sample." This ad was offering customers a: a. By offering a premium. rebate. e. deal.16-130 PREMIUM APPLICATION The radio commercial said. This seat cushion is an example of a: a. sample. By offering a premium. 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. "Send three proofs of purchase and $3 for postage and handling to receive your monogrammed T-shirt. deal. 1087 . rebate. e.

16-133 PREMIUM For marketers. Answer: d Page: 355 Rationale: Contests are sales promotions in which customers apply their creative skills or analytical thinking to win a prize. 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. d. contest. 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. the primary objective of a premium is to: a. . By offering a premium. b. encourage present customers to buy more. encourage new product trial. deal. d. b. increase trial and retaliate against competitors' actions. a. minimize brand switching behavior. e. Sweepstakes are based on chance (luck) while contests require some skill. c. e. c. c. d. CONCEPTUAL encourage customers to return frequently or to use more of the product. e. generate store traffic. end-run sample. sweepstakes. 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. premium. companies encourage customers to return frequently or to use more of the product.

d. contests. b. and state legislatures have issued rules covering sweepstakes. trade promotion. b. Sweepstakes are based on chance (luck) while contests require some skill. c.16-136 CONTESTS APPLICATION The first week of April. a. The approach is very effective. In this case. 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. ensure that the chance for winning is represented honestly. the Federal Trade Commission. premium. deal. and games to regulate their fairness. d. e. 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. sweepstakes. e. contest. 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. 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. 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. Federal laws. 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. c. and guarantee that the prizes are actually awarded. This is an example of a: a. 1089 .

A trial size is generally offered that is smaller than the regular package size. The ads ask readers to log onto www. Federal laws. contests. . Taco Bell used a sales promotion technique called: a. The approach is very effective. a rebate. d. e. and guarantee that the prizes are actually awarded.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. d. sampling. c. it is hoped they will remember and buy the product. Often used for new products. a special deal. ensure that the chance for winning is represented honestly. a.pistachios. companies invest more than $1. b. sampling puts the product in the consumer’s hands. 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.2 billion in sampling programs each year. Overall. a self-liquidating premium. 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.org to register to win a prize of pistachios for a year. e. continuity. b. 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. The association is using a __________ to measure the effectiveness of its ads. and state legislatures have issued rules covering sweepstakes. c. If consumers like the sample. the Federal Trade Commission.

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

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

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. a restaurant chain that is known for its Extra Juicy Hero sandwich. c. The most popular continuity programs today are the frequent flyer and frequent traveler programs used by airlines. e. 16-145 POINT-OF-PURCHASE DISPLAYS DEFINITION A sales promotion that takes the form of an advertising sign. b. wants to encourage repeat purchases and create customer loyalty. d. special promotional displays. Which sales promotion should its employ? a. consumer attention displays. and car rental services to reward loyal customers.16-144 CONTINUITY PROGRAMS APPLICATION A Taste of Greece. d. c. action racks. and which is often located in high-traffic areas near the cash register or the end of an aisle are called: a. impulse racks. point-of-purchase displays. hotels. which sometimes actually holds or displays the product. 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. Answer: c Page: 357 Rationale: Text term definition—point-of-purchase display 1093 .

Answer: d Page: 357-358 Rationale: Key term definition—product placement . d. premium. coupon." The offer was an example of a: a. a product deal. product continuity. or a commercial for another product is called: a. 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. However. these new sunglasses come with their own attractive free-standing carousel that fits perfectly next to your cash register. 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. 16-148 PRODUCT PLACEMENT DEFINITION The consumer promotion that involves the use of a brand-name product in a movie. d. b. video. deal. 16-147 REBATES APPLICATION As Roderick was checking out of Office Depot. 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. 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. rebate. point-of-purchase. e. When the rebate is offered on lower-priced items.” The offer read. a product premium. the sales clerk said. b. a product sample. which sometimes actually holds or displays the product. e. online consumers are more likely to take advantage of rebates. "Mail in three UPCs and cash register tapes with the prices circled to receive a check for $25. c. television show. product placement. In addition. d. “You'll probably want to take advantage of this offer.16-146 POINT-OF-PURCHASE DISPLAYS APPLICATION A brochure sent to retailers began with the following statement: "Retailers. this “slippage” is less likely to occur with frequent users of rebate promotions. c." Which sales promotion does this exemplify? a. c. e.

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

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

e. Answer: a Page: 358 Rationale: Resellers often perform the important function of promoting the manufacturer's products at the local level. d. a case allowance. 1097 .16-155 FINANCE ALLOWANCE DEFINITION A __________ pays retailers for financing costs or financial losses associated with consumer sales promotions. c. Belinda noticed an advertisement containing manufacturer's coupons from Kodak redeemable only at Target stores. a finance allowance. This ad is an example of: a. These are programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products. e. specialty advertising. b. cooperative advertising. a. c. e. b. c. One common sales promotional activity is to encourage both better quality and greater quantity in the local advertising efforts of resellers through cooperative advertising. d. d. a. 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. a merchandise allowance. b. 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.

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

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

c. announcement regarding changes in a company or product line. b. e. 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. In this case it is the divestiture of the household insecticide business as part of Bayer’s restructuring program. b. meeting of top news executives to decide advertising policy. 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. e. b. DEFINITION Answer: e Page: 359 Rationale: Text term definition—news conference .16-162 NEWS RELEASE DEFINITION In planning and obtaining publicity. informational meeting to which representatives of the media are invited. d. publicity tool which utilizes high-visibility individuals in lobbying activities. c. a frequently used tool is the __________. e. 16-164 NEWS CONFERENCE A news conference is a(n): a. free space or time in a newspaper or on a broadcast medium. c. a. d. which is an announcement regarding changes in the company or the product line. d.

d. c. d. c. b. Find a role for Buddy Lee. and which involves free space or time donated by the media is called a(n): a. e. Gain favorable perceptions of Lee among young people. b. e. c. it helped Lee develop Lee dungarees for 17to 22-year olds. c. 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. e. used an IMC approach including videostreaming on the Internet. Develop similarities between Lee and Levi’s. adopted a “responsiveness” positioning for BMW. targeted 20 to 30 year-olds. news moment. 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. d. As a result. b. and d all describe characteristics of the BMW campaign. is accurately described by all of the above. 16-167 VIDEO CASE: FALLON CONCEPTUAL The ad campaign Fallon Worldwide advertising agency developed for BMW: a. 1101 . quid pro quo ad. news item. Gain favorable perceptions of Lee among older women. Answer: e Page: 527 Rationale: The alternatives a. public service announcement. separated BMW from Mitsubishi and Ford.16-165 PUBLIC SERVICE ANNOUNCEMENT DEFINITION A publicity tool that is heavily relied on by nonprofit organizations. Create a “fashion” image for Lee. b. news conference.

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

rating. the advertisers are concerned with frequency. Cost per Thousand is the cost of reaching 1. Define reach. Frequency is the average number of times a person in the target audience is exposed to a message or advertisement. advertisers try to maximize reach in their target market at the lowest cost.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. 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. greater frequency is desirable but because of cost. Because advertisers try to maximize the number of individuals in the target market exposed to the message. frequency. gross rating points (GRPs). Rating is the percentage of households in a market that are tuned to a particular TV show or radio station. Gross rating points are the reach multiplied by frequency. Page: 348-349 1103 . Although reach is important. When they want to reach the audience more than once. Answer: • • • • • Reach is the number of different people or households exposed to an advertisement. they must be concerned with reach. 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. In general. the advertiser (or media planner) must balance reach and frequency.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. and cost per thousand (CPM). Like reach.

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

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

unaided recall. Results of posttesting advertising are used to reach decisions about changes in the advertising program. Limited-service agencies that deal in creative work are compensated by a contractual agreement for the services performed. media selection. Be sure to explain why marketers should pretest and posttest ad copy. The purpose of the posttest is to determine whether it accomplished its intended purpose.16-176 PRETESTING & POSTTESTING CONCEPTUAL Discuss the process of pretesting and posttesting advertising copy. including market research. Posttests occur after an advertisement has been shown to the target audience. Include a list of methods used for pretesting and posting in you answer. Answer: Advertising programs can range from completely external to completely internal. Answer: Pretests are conducted before the advertisements are placed in any medium. limited-service advertising agencies. The full-service agency provides the most complete range of services. Methods of pretesting advertising include portfolio tests. Page: 353 . and production. jury tests. Agencies that assist a client by both developing and placing advertisements have traditionally charged a commission of 15 percent of media costs. Finally. and sales tests. inquiry tests. artwork. and in-house agencies as to services provided and composition. Five approaches common in posttests are: aided recall. They are conducted to determine whether the advertisement communicates the intended message or to select between alternative versions of the advertisement. 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. in-house agencies made up of the company's own advertising staff may provide full services or a limited range of services. and theater tests. copy development. Page: 353-354 16-177 ADVERTISING SERVICE PROVIDERS CONCEPTUAL Differentiate among full-service advertising agencies. attitude 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. sends direct mail pieces to prospective customers. 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. do not react to competitive actions (a new product introduction. 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. (3) attitude tests. 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. Page: 355-356 CONCEPTUAL CONCEPTUAL 1107 . Deals are short-term price reductions used to increase trial among potential customers or to retaliate against a competitor's actions. a large business-to-business software provider. They are typically used to encourage trial among consumers.16-178 EVALUATING THE ADVERTISING PROGRAM APPLICATION SAP. therefore. and (5) sales tests. (4) inquiry tests. with the objective of generating leads for its sales force. (2)unaided recall. for example. Ads generating the most inquiries or leads for the sales force are presumed to be the most effective.

4. or the customer will come to expect the lower price and not buy without a coupon. 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. Allowances and Discounts 2. This sales promotion should not be overused. 5. Coupons would stimulate sales in the long run. lessening risk to the consumer to purchase because of reducing the effective price of the cereal. competitive product is being introduced. the issue with this is obtaining the store space. the manufacturer would obtain lists of current or potential consumers from the entries that could be used in future promotions. 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. Training of Distributors’ Sales Forces Page: 358-359 DEFINITION . however the following would certainly be useful to the cereal manufacturer in increasing sales: 1. 6. Kid-interesting point-of-purchase displays could be used to make the cereal stand out from the other choices. Page: 355-357 16-182 TRADE-ORIENTED SALES PROMOTIONS What are three types of trade-oriented sales promotions? Answer: 1.16-181 SALES PROMOTION APPLICATION When taking a walk down the supermarket aisle containing breakfast cereals. however. Deals such as buy one get one free could be used. 2. 3. Of course. Assuming your new chocolate frosted cereal targeted at children was allotted shelf space. especially if a new. By using a deal. the consumer would buy additional product and presumably then. In addition. Answer: The student might offer many different types of sales promotions. 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. which will not come without cost. not purchase the new competitive product. it is apparent there is extensive competition among brands. Cooperative Advertising 3. A sweepstakes with a savings bond or money toward a college education would encourage the consumer to purchase the product.T.

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

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

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