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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Such advertisements are using: a. sex appeals. fear appeals. e. Family appeals. e. c. the homeowners tell the target audience how disaster can be averted by purchasing and using the advertised product. In many of the ads. c. When using fear appeals. b. 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. b. d. 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. . humorous appeals. coercive appeals Answer: a Page: 346 Rationale: Fear appeals suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or through a change in behavior.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. a. Humorous appeals. d. family appeals. Fear appeals. Sex appeals.

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

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

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

a decoder.000 small commercial production companies in the US. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a. c. micromarketing. c.000. d. media convergence. e. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. the need to shoot commercials in “exotic” locations has increased. television garners the largest amount of U. b. Figure 16-1 Rationale: As shown in Figure 16-1. radio magazines.050. All of the above statements are true about creating the advertising message. b. e. the need to shoot commercials in “exotic” locations has increased. There are about 2. d. The expenditures drop nearly in half for “other”. d. A high-quality 30-second TV commercial typically costs about $268.000 to $15.000. 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.950. and newspapers at $49.S. outdoor and internet.000 to produce. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements. newspapers radio television Internet Yellow Pages Answer: c Page: 348. As companies have developed global campaigns. followed by direct mail at $49. .838. advertising expenditures at $59. e.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. advertising media. reach and frequency. b. yellow pages.000. c.000) and as companies have developed global campaigns.000 to produce because actors are expensive ($12. A high-quality 30-second TV commercial typically costs about $268.

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

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

000 households (total 500. b. cost per minute of television or radio time number of consumers exposed to an advertising message.00 $3. direct mail versus television. Thus. d. $5.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1.00 $4. 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. c. what would your cost per thousand (CPM) be? a.00 $2. d. 1061 . c.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. e. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1.000). DEFINITION cost of one medium relative to the cost of other media (e. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a.000 divided by 500 equals $2. or outdoor). 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.00 $1.00. each of which are divided by the multiple of their respective reach and frequency. the CPM = $2. and $1. This would give a comparison of the costs (financial effectiveness) for different media. b. radio. cost of reaching 1000 individuals or households with the advertising message. d. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message. in thousands.00. c. e.g. e.000. b.000 households for a cost of $1.000 individuals or households with the advertising message in a given medium.

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

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

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

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

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

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

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

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

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

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

DEFINITION

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

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

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

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

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16-94 PULSE SCHEDULE

DEFINITION

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

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

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

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

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

16-97 EXECUTING THE ADVERTISING PROGRAM

CONCEPTUAL

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

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

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

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

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

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

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

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

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

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

experience tests. d. e. c. b. e. d. e. exposure testing. a. c.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. Answer: d Page: 353 Rationale: Key term definition—posttests . b. intrafirm agency promotional department full-service agency in-house agency limited-service agency Answer: d Page: 353 Rationale: Key term definition—in-house agency 16-109 POSTTESTS DEFINITION Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose are referred to as: a. control testing. posttests. a. b. c. pretests. full-service agency in-house agency modified-service agency promotional firm limited-service agency Answer: e Page: 353 Rationale: Key term definition—limited-service agencies 16-108 IN-HOUSE AGENCY DEFINITION An __________ made up of the company’s own advertising staff may provide full services or a limited range of services. d.

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

concept testing. . who saw or read any part of the ad identifying the product or brand. e. 16-115 UNAIDED RECALL APPLICATION As a subscriber to Fitness magazine. e. inquiry testing concept testing unaided recall portfolio testing aided recall Answer: c Page: 354 Rationale: A question such as. and who read at least half of the ad. 16-114 AIDED RECALL The other name used for aided recall tests is: a. attitude testing. "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. a. and who read at least half of the ad.16-113 AIDED RECALL-STARCH TEST DEFINITION The __________ test uses aided recall to determine the percentage of those who remember seeing a specific magazine ad. e. prompted response testing. Kelly was asked by a researcher. c. 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. It is a type of aided recall test. Then she was asked questions about the content and appearance of the ads she remembered. d. which ads she remembered seeing in the most recent issue of the magazine. c. d. b. inquiry testing. recognition-readership testing. c. b. d. Elements of the ad are then tagged with the results. a. DEFINITION Answer: b Page: 354 Rationale: Aided recall tests are also called recognition-readership tests. who saw or read any part of the ad identifying the product or brand. The researcher was using __________ to test the effectiveness of ads in the magazine. b.

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

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

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

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

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

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

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

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

d. contest. 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. ensure that the chance for winning is represented honestly. the Federal Trade Commission. and guarantee that the prizes are actually awarded. deal. trade promotion. c. d. c.16-136 CONTESTS APPLICATION The first week of April. and games to regulate their fairness. 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. e. In this case. Premiums Rebates Deals Contests Sweepstakes Answer: e Page: 356 Rationale: Sweepstakes are sales promotions that require participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer. 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. e. The approach is very effective. Sweepstakes are based on chance (luck) while contests require some skill. 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. b. 1089 . and state legislatures have issued rules covering sweepstakes. This is an example of a: a. Federal laws. sweepstakes. a. premium. The person who has found the most errors wins a chance to visit the set where the show is taped and have a walk-on role. b. contests.

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

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

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

b. Which sales promotion should its employ? a. Answer: c Page: 357 Rationale: Text term definition—point-of-purchase display 1093 . d. hotels.16-144 CONTINUITY PROGRAMS APPLICATION A Taste of Greece. The most popular continuity programs today are the frequent flyer and frequent traveler programs used by airlines. wants to encourage repeat purchases and create customer loyalty. b. 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. e. c. 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. 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. 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. impulse racks. which sometimes actually holds or displays the product. d. point-of-purchase displays. e. action racks. special promotional displays. c. consumer attention displays.

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

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

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

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

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

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

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

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

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

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

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

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

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

(2)unaided recall. a large business-to-business software provider.) 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. and (5) sales tests. sends direct mail pieces to prospective customers. Page: 354 16-179 SALES PROMOTION What is the difference between a coupon and a deal? Answer: Coupons are sales promotions that offer a discounted price to the consumers.16-178 EVALUATING THE ADVERTISING PROGRAM APPLICATION SAP. do not react to competitive actions (a new product introduction. The latter is accomplished because customers build up inventory as a result of the deal and. for example. therefore. (3) attitude tests. (4) inquiry tests. Which type of posttest would be the best to use to evaluate the direct mail campaign? Answer: There are five types of posttests available to evaluate the advertising program: (1) aided recall. Ads generating the most inquiries or leads for the sales force are presumed to be the most effective. Page: 355-356 CONCEPTUAL CONCEPTUAL 1107 . In this situation the inquiry tests would be the best to use because additional product information is offered to the ad’s readers. They are typically used to encourage trial among consumers. with the objective of generating leads for its sales force. 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. Deals are short-term price reductions used to increase trial among potential customers or to retaliate against a competitor's actions.

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

2.16-183 TRADE-ORIENTED SALES PROMOTIONS DEFINITION Explain what a merchandise allowance. a case allowance. The finance allowance involves paying retailers for financing costs or financial losses associated with consumer sales promotions. These programs involve a manufacturer paying a percentage of a retailer's local advertising expense for advertising the manufacturer's products. The percentage is often 50 percent up to a certain dollar limit. In addition to paying a part of the advertising space or time. which is based on the amount of the purchases the retailer makes of the manufacturer's products. the manufacturer often furnishes the retailer with a selection of different ad executions. and a finance allowance are. such as a picture of the product in a newspaper with a coupon good at only one store. Page: 358-359 16-184 COOPERATIVE ADVERTISING What is cooperative advertising? Answer: Cooperative advertising is a sales promotional activity to encourage both better quality and greater quantity in the local advertising efforts of resellers. 3. Page: 358-359 DEFINITION 1109 . A case allowance is a discount on each case ordered during a specific time period. sometimes suited for several different media. The merchandise allowance then consists of a percentage deduction from the list case price ordered during the promotional period. A merchandise allowance is reimbursing a retailer for extra in-store support or special featuring of the brand. Performance contracts between the manufacturer and trade member usually specify the activity to be performed. These allowances are usually deducted from the invoice. Answer: 1.

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

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