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

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

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

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

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

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

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

16-24 INSTITUTIONAL ADVERTISEMENTS DEFINITION Advertisements whose objective is to build goodwill or an image for an organization rather than promote a specific good or service are called: a. repositioning advertisements. and reminder institutional. d. pioneering institutional. Answer: d Page: 345 Rationale: The objective of institutional advertisements is to build good will or an image for an organization. advocacy ads. product advertisements. b. c. e. b. e. reminder institutional ads. b. Four forms of institutional advertisements are often used: advocacy. 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. 1045 . rather than promote a specific good or service. c. 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 __________. competitive institutional ads. d. rather than promote a specific good or service. product institutional ads. Often this form of advertising is used to support the public relations plan or respond to negative publicity. compettive institutional. Alternative d is incorrect as it is not one of the four listed forms. d. public service announcements. c. institutional advertisements. e. reminder advertisements. a.

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

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

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

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

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

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

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

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

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

c. d. e. When using fear appeals. “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. sex appeal. What women find sexy. 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. humorous appeal. d. life cycle appeal. b. rhetorical appeals logical appeals humorous appeals sex appeals fear appeals Answer: d Page: 347 Rationale: Text term definition—sex appeals 1055 . and they have little impact on how consumers think. or act. fear appeal. Sex appeals have no effect on senior citizens.16-47 FEAR APPEALS APPLICATION An ad for Conesco Insurance asks the question. a. Sex appeal typically fails to gain audience attention. 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. 16-48 SEX APPEALS CONCEPTUAL Which of the following statements describes a problem with using sex appeals in advertising? a. The sex appeal of the ad can distract the audience from the product. What men find sexy. e. the advertiser must be sure the appeal is strong enough to get the audience's attention and concern but not so strong it will lead them to tune out the message. c. 16-49 SEX APPEALS DEFINITION In advertising. __________ suggest to the audience that the product will increase the attractiveness of the user. e. rhetorical appeal. men don't. c. b. Answer: d Page: 347 Rationale: Sex appeals suggest to the audience that the product will increase the attractiveness of the user. b. feel. d. 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. Unfortunately many commercials that use sex appeals are only successful at gaining the attention of the audience. women don't.

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

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

media convergence. Figure 16-1 Rationale: As shown in Figure 16-1. yellow pages. c. c. c. and newspapers at $49. the need to shoot commercials in “exotic” locations has increased. A high-quality 30-second TV commercial typically costs about $268. A high-quality 30-second TV commercial typically costs about $268. the need to shoot commercials in “exotic” locations has increased.838.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. e. television garners the largest amount of U. b. micromarketing. b. d. outdoor and internet. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements. d.000 to produce because actors are expensive ($12. followed by direct mail at $49. All of the above statements are true about creating the advertising message.000 to produce. As companies have developed global campaigns.000) and as companies have developed global campaigns.000.050. newspapers radio television Internet Yellow Pages Answer: c Page: 348. reach and frequency. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a. radio magazines. 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.000.S. advertising media. e. a decoder. There are about 2.000 to $15. The expenditures drop nearly in half for “other”. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. e. advertising expenditures at $59.000 small commercial production companies in the US. . b.000. d.950.

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

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

000 households (total 500. 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. each of which are divided by the multiple of their respective reach and frequency. This would give a comparison of the costs (financial effectiveness) for different media.000 divided by 500 equals $2. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message.00 $4. $5. direct mail versus television.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1. radio.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. c. what would your cost per thousand (CPM) be? a. e. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1. e.000 individuals or households with the advertising message in a given medium. and $1. c. b. b.000 households for a cost of $1. d. 1061 . e. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a.000). in thousands. b.00.00 $3.00 $2. c.000. or outdoor). d.g. cost per minute of television or radio time number of consumers exposed to an advertising message.00. Thus. d.00 $1. the CPM = $2. DEFINITION cost of one medium relative to the cost of other media (e. 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.

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

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

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

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

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

Figure 16-2 Rationale: A very effective medium for reminding consumers about products is outdoor advertising. and it is a relatively lowcost. such as the scoreboard at San Diego’s Qualcomm Stadium. pithy messages. Billboards often result in good reach and frequency and have been shown to increase purchase rates. in subways and on taxis. b. and it is a relatively lowcost. a. d. The visibility of this medium is good supplemental reinforcement for well-known products. flexible alternative. d.16-80 OUTDOOR Billboard advertising is most effective for __________ advertising. in subways and on taxis. Advertisers can buy space by route or neighborhood. e. such as the scoreboard at San Diego’s Qualcomm Stadium. A disadvantage is that no opportunity exists for lengthy advertising copy. A third form of outdoor advertising is transit advertising—that on bus backs. 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. its lack of visibility. A disadvantage is that no opportunity exists for lengthy advertising copy. its high costs. 1067 . Advertisers can buy space by route or neighborhood. c. Billboards often result in good reach and frequency and have been shown to increase purchase rates. its local market focus. pioneering advocacy reminder comparative differentiation CONCEPTUAL Answer: c Page: 351. its inability to communicate short. c. flexible alternative. Figure 16-2 Rationale: A very effective medium for reminding consumers about products is outdoor advertising. all of the above CONCEPTUAL Answer: c Page: 351. This can be a disadvantage in that outdoor advertising has a local market focus. A third form of outdoor advertising is transit advertising—that on bus backs. e. b.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

" This ad was promoting a: a. the primary objective of a premium is to: a. By offering a premium. e. contest. premium. end-run sample. Answer: d Page: 355 Rationale: Contests are sales promotions in which customers apply their creative skills or analytical thinking to win a prize. increase trial and retaliate against competitors' actions. Sweepstakes are based on chance (luck) while contests require some skill. companies encourage customers to return frequently or to use more of the product. deal. encourage new product trial. minimize brand switching behavior. 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. d. d. generate store traffic. b. encourage present customers to buy more. b. c. CONCEPTUAL encourage customers to return frequently or to use more of the product. . 16-134 SELF-LIQUIDATING PREMIUM DEFINITION A premium is called __________ when the cost charged to the consumer covers the cost of the item.16-133 PREMIUM For marketers. 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. a. sweepstakes. c. b. e. e.

the Drew Carey television show premiers a show that is full of errors and asks viewers to record all the errors they can and send the list to an address in California. 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. and state legislatures have issued rules covering sweepstakes. a. c. deal. and guarantee that the prizes are actually awarded. b. c. 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. 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. In this case. 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. Federal laws. This is an example of a: a. Sweepstakes are based on chance (luck) while contests require some skill. b. 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. 1089 . d. trade promotion. The approach is very effective. sweepstakes. premium. d. ensure that the chance for winning is represented honestly. e. e. contests. the Federal Trade Commission.16-136 CONTESTS APPLICATION The first week of April. contest.

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

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

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

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

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

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

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

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

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

e. examples are news releases. as more natural gas lines are being laid near population centers.S.0 magazine is a presentation of TransWave International without direct cost to the company. directly paid presentation of a company or its products. d. and public service announcements. product placement. news conferences. In this case. DEFINITION methods of tying charitable contributions of a firm directly to the customer revenues produced through the promotion of one of its products. short-term inducements of value offered to arouse interest in buying a good or service. publicity. good. questionable methods of influencing stakeholder opinion about some action or proposed action that may be perceived by some as unethical. good. c. c. b. d. and why the product was needed.0 magazine. b. e. Pipeline safety is becoming a big issue in the U. or service without direct cost. 1099 . but it must make itself known to oil companies. The timing is right for this company to be extremely successful. what its product could do. methods of obtaining nonpersonal presentation of an organization. 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. methods used to get a nonpersonal. The article was an example of: a. reminder advertising. This article described the company. or service without direct cost. a sales promotion. institutional advertising. the article in Business 2. One method used was an article about the company in Business 2.16-160 PUBLICITY Publicity tools are: a. Answer: b Page: 359 Rationale: Publicity is a method of obtaining nonpersonal presentation of an organization.

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

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

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

Page: 348-349 1103 . rating. the advertiser (or media planner) must balance reach and frequency. they must be concerned with reach. When they want to reach the audience more than once. Cost per Thousand is the cost of reaching 1.16-170 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. Frequency is the average number of times a person in the target audience is exposed to a message or advertisement. the advertisers are concerned with frequency. Like 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. greater frequency is desirable but because of cost. advertisers try to maximize reach in their target market at the lowest cost. In general. Answer: • • • • • Reach is the number of different people or households exposed to an advertisement.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. Rating is the percentage of households in a market that are tuned to a particular TV show or radio station. Gross rating points are the reach multiplied by frequency. gross rating points (GRPs). Because advertisers try to maximize the number of individuals in the target market exposed to the message. Define reach. 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. frequency. and cost per thousand (CPM). Although reach is important.

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

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

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

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

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

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

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

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