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

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

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

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

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

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

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

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

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

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

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

what it can do. d. e. promote the advantages of one product class over another. reinforce previous knowledge of a product. a. c.16-32 PIONEERING INSTITUTIONAL ADVERTISEMENTS The purpose of pioneering institutional advertisements is to: a. b. The ads are examples of __________ ads. promote a specific brand's features and benefits. . d. e. or where it is located. 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. 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. the California Pistachio Growers Association is suggesting eating pistachios in social situations instead of other nuts or snacks— competitive product classes to pistachios. c. 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. In this example. The goal of the ad is to increase consumption of pistachio nuts. state the position of a company on an issue. announce what a company is. b.

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

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

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

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

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

a. 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. the homeowners tell the target audience how disaster can be averted by purchasing and using the advertised product. e.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. In many of the ads. Sex appeals. When using fear appeals. b. e. . Humorous appeals. 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. fear appeals. Such advertisements are using: a. c. d. Coercive appeals Answer: a Page: 346 Rationale: Text term definition—fear appeals 16-46 FEAR APPEALS APPLICATION The testimonial type ads for carbon dioxide detectors feature parents who are discussing the dangers of carbon monoxide poisoning. c. sex appeals. b. humorous appeals. d. family appeals. Family appeals. Fear appeals.

women don't. 16-48 SEX APPEALS CONCEPTUAL Which of the following statements describes a problem with using sex appeals in advertising? a. What women find sexy. 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. “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. 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. fear appeal. c. 16-49 SEX APPEALS DEFINITION In advertising. __________ suggest to the audience that the product will increase the attractiveness of the user. c. b. Answer: d Page: 347 Rationale: Sex appeals suggest to the audience that the product will increase the attractiveness of the user. feel. e. b. Sex appeal typically fails to gain audience attention. What men find sexy. Answer: e Page: 346 Rationale: Fear appeals suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or through a change in behavior. d. e. d. d. or act. a. c. and they have little impact on how consumers think. Unfortunately many commercials that use sex appeals are only successful at gaining the attention of the audience. rhetorical appeal. e. humorous appeal. men don't. sex appeal.16-47 FEAR APPEALS APPLICATION An ad for Conesco Insurance asks the question. b. Sex appeals have no effect on senior citizens. rhetorical appeals logical appeals humorous appeals sex appeals fear appeals Answer: d Page: 347 Rationale: Text term definition—sex appeals 1055 . The sex appeal of the ad can distract the audience from the product. When using fear appeals. life cycle appeal. 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.

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

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

CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. A high-quality 30-second TV commercial typically costs about $268. e. A high-quality 30-second TV commercial typically costs about $268.S. b. d. and newspapers at $49.000 to produce because actors are expensive ($12. followed by direct mail at $49. b.000. d. c. newspapers radio television Internet Yellow Pages Answer: c Page: 348. e. outdoor and internet. e. the need to shoot commercials in “exotic” locations has increased. Figure 16-1 Rationale: As shown in Figure 16-1.950. As companies have developed global campaigns. the need to shoot commercials in “exotic” locations has increased. 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. reach and frequency.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. .050.000. c.000 to $15. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a.000.838. a decoder. There are about 2. advertising expenditures at $59. The expenditures drop nearly in half for “other”. d. media convergence.000 to produce. micromarketing. c. television garners the largest amount of U.000 small commercial production companies in the US.000) and as companies have developed global campaigns. All of the above statements are true about creating the advertising message. yellow pages. b. advertising media. radio magazines.

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

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

1061 .00 $1. Thus. the CPM = $2. d.000). This would give a comparison of the costs (financial effectiveness) for different media.00 $2. b. cost per minute of television or radio time number of consumers exposed to an advertising message.00 $3. $5. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message. e.000 individuals or households with the advertising message in a given medium. b. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1. DEFINITION cost of one medium relative to the cost of other media (e. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a. c.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1. c.000.000 households for a cost of $1. Answer: c Page: 349 Rationale: Key term definition—cost per thousand 16-65 COST PER THOUSAND (CPM) APPLICATION If you ordered a commercial to run on a local station that could reach 500. cost of reaching 1000 individuals or households with the advertising message. and $1.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. direct mail versus television. d. d.00. radio. or outdoor).00 $4.000 households (total 500.g.000 divided by 500 equals $2. e. what would your cost per thousand (CPM) be? a. in thousands. c.00. b. 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. e. each of which are divided by the multiple of their respective reach and frequency.

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

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

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

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

e. 16-79 INTERNET-RICH MEDIA DEFINITION Called __________. 16-78 INTERNET One reason for using the Internet as an advertising medium is: a. e. built-in games. c. interactive ads. Internet ads are similar to print ads in that they offer only a visual message. its ability to use animation. drop-downs rich media game advertising interactive ads pop-ups Answer: b Page: 351 Rationale: Text term definition—rich media . animation can capture attention. Figure 16-2 Rationale: Internet advertising has the following advantages: video and audio capabilities. its video and audio capabilities. or search engines to engage viewers. d. ads can be interactive and link to advertiser. Figure 16-2 Rationale: Internet advertising has the following advantages: video and audio capabilities. Internet advertising has the following disadvantages: animation and interactivity require large files and more time to “load”. Internet advertising has the following disadvantages: animation and interactivity require large files and more time to “load”. Ads are black and white. c. these internet interactive ads have drop-down menus. d. b. Internet advertising is the most effective form of advertising. all of the above CONCEPTUAL Answer: e Page: 351.16-77 INTERNET CONCEPTUAL Which of the following statements about the Internet as an advertising medium is true? a. c. Answer: a Page: 351. The Internet provides audio and video capabilities. effectiveness is still uncertain and difficult to measure. b. a. b. All of the above statements about the Internet as an advertising medium are true. animation can capture attention. d. e. effectiveness is still uncertain and difficult to measure. ads can be interactive and link to advertiser. the way that the ads can link customers and advertisers.

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

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

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

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

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

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

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

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

e. d. exposure testing. experience tests. pretests. 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. b. e. Answer: d Page: 353 Rationale: Key term definition—posttests . control testing.16-107 LIMITED-SERVICE AGENCIES DEFINITION A __________ is an advertising agency that specializes in one aspect of the advertising process such as providing creative services to develop advertising copy or buying previously unpurchased media space. a. c. b. posttests. b. d. a. e. 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. c. d. c.

c. Alternatives a. or listening. c. e. a question such as. 16-111 POSTTESTS Which of the following is a type of posttest used for advertising messages? a. or premiums are offered to an ad's readers or viewers. viewing. b. e. CONCEPTUAL Answer: e Page: 354 Rationale: After being shown an ad. product samples. In an aided recall posttest. c. b. e. respondents are asked questions to measure changes in their attitudes after an advertising campaign. d. 1079 . and ads generating the most inquiries are presumed to be the most effective. In an aided recall posttest. b. With aided recall posttests. With aided recall posttests. Aided recall posttests involve studies such as controlled experiments and consumer purchase tests. viewing. such as whether they had a more favorable attitude toward the product advertised. additional product information. 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. theater tests portfolio tests sales tests jury tests all of the above CONCEPTUAL Answer: c Page: 354 Rationale: Sales tests allow a manufacturer. attitude tests theater tests inquiry tests sales tests recall tests CONCEPTUAL Answer: b Page: 354 Rationale: Theater tests are a type of pretest. 16-112 AIDED RECALL Which of the following statements about aided recall posttests is true? a. or listening.16-110 POSTTESTS Which of the following is NOT an example of an advertising posttest? a. b. 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. and d are pretests. d. respondents are first shown an ad and then asked whether their previous exposure to it was through reading. a distributor. respondents are asked whether their previous exposure to it was through reading.

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

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

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

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

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

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

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

d. companies encourage customers to return frequently or to use more of the product. premium. "Send three proofs of purchase and $3 for postage and handling to receive your monogrammed T-shirt. 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." This ad was offering customers a: a. e. c. c. coupon. deal. deal. 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. b. premium. companies encourage customers to return frequently or to use more of the product. e. Answer: c Page: 355 Rationale: A premium is a sales promotion that consists of offering merchandise free or at significant savings over its retail price. By offering a premium. companies encourage customers to return frequently or to use more of the product. sample. d. coupon. rebate.16-130 PREMIUM APPLICATION The radio commercial said. 1087 . b. By offering a premium. b. rebate. d. 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. By offering a premium. 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. This seat cushion is an example of a: a. sample. c.

By offering a premium. e. the primary objective of a premium is to: a. encourage present customers to buy more. c. d. 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. minimize brand switching behavior." This ad was promoting a: a. c. b. c. 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. companies encourage customers to return frequently or to use more of the product. encourage new product trial. end-run sample.16-133 PREMIUM For marketers. generate store traffic. Sweepstakes are based on chance (luck) while contests require some skill. contest. sweepstakes. a. d. 16-134 SELF-LIQUIDATING PREMIUM DEFINITION A premium is called __________ when the cost charged to the consumer covers the cost of the item. e. increase trial and retaliate against competitors' actions. d. deal. CONCEPTUAL encourage customers to return frequently or to use more of the product. e. . b. premium. b.

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

and state legislatures have issued rules covering sweepstakes. contests. Answer: d Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price. b. a rebate. continuity. b.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. 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. c.pistachios. e. the Federal Trade Commission. and games to regulate their fairness. ensure that the chance for winning is represented honestly. sampling puts the product in the consumer’s hands. d. Overall.org to register to win a prize of pistachios for a year. If consumers like the sample. 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. Often used for new products. .2 billion in sampling programs each year. The approach is very effective. Federal laws. companies invest more than $1. d. a. and guarantee that the prizes are actually awarded. The ads ask readers to log onto www. The association is using a __________ to measure the effectiveness of its ads. it is hoped they will remember and buy the product. A trial size is generally offered that is smaller than the regular package size. Taco Bell used a sales promotion technique called: a. a special deal. c. sampling. e. a self-liquidating premium.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

They are typically used to encourage trial among consumers. do not react to competitive actions (a new product introduction.) 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. (3) attitude tests. Deals are short-term price reductions used to increase trial among potential customers or to retaliate against a competitor's actions. (4) inquiry tests. The latter is accomplished because customers build up inventory as a result of the deal and. 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. 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. sends direct mail pieces to prospective customers. and (5) sales tests. Ads generating the most inquiries or leads for the sales force are presumed to be the most effective. a large business-to-business software provider. Page: 355-356 CONCEPTUAL CONCEPTUAL 1107 . (2)unaided recall. therefore. In this situation the inquiry tests would be the best to use because additional product information is offered to the ad’s readers. for example. with the objective of generating leads for its sales force.16-178 EVALUATING THE ADVERTISING PROGRAM APPLICATION SAP. 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.

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

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

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

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