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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Be sure to make it appeal to children. explain guilt and enrichment. d. When using fear appeals. sex. e. 16-44 FEAR APPEALS Which of the following is an important guideline when using fear appeal? a.types of appeals. sex appeals. c. b. and humorous appeals. e. include perceptual modifiers and need enhancers. common advertising appeals include fear appeals. d. d. none of the above. sex appeals. and humorous appeals. 16-43 MESSAGE APPEAL Three common advertising appeals include: a. 16-42 MESSAGE APPEAL CONCEPTUAL Information and persuasive content can be combined in the form of an appeal to: a. c. All of the above are important guidelines when using fear appeal. b. the advertiser must be sure the appeal is strong enough to get the audience's . 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. provide a basic reason for the consumer to act. 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. and humor. none of the above. Avoid any reference to death or dying. e. Information and persuasive content can be combined in the form of an appeal to provide a basic reason for the consumer to act. common advertising appeals include fear appeals. c. hierarchical needs. CONCEPTUAL Answer: a Page: 346 Rationale: Most advertising messages are made up of both informational and persuasional elements. perceptual modifiers and need enhancers. Although the marketer can use many different types of appeals. Answer: a Page: 346 Rationale: Most advertising messages are made up of both informational and persuasional elements. satisfy hierarchical needs. Information and persuasive content can be combined in the form of an appeal to provide a basic reason for the consumer to act. guilt and enrichment. Make the appeal so strong that it appears humorous. sex appeals. fear. common advertising appeals include fear appeals.

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

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

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

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

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

television garners the largest amount of U. c. There are about 2.050.S. c. e. yellow pages. The expenditures drop nearly in half for “other”. followed by direct mail at $49. the need to shoot commercials in “exotic” locations has increased. d.000. b. 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. All of the above statements are true about creating the advertising message. micromarketing.000. e. reach and frequency. media convergence. advertising expenditures at $59.000 to produce.000 small commercial production companies in the US. . a decoder.000 to $15. A high-quality 30-second TV commercial typically costs about $268. and newspapers at $49. e. radio magazines.000) and as companies have developed global campaigns.000 to produce because actors are expensive ($12. c. A high-quality 30-second TV commercial typically costs about $268. Figure 16-1 Rationale: As shown in Figure 16-1. b.838. outdoor and internet. d. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. advertising media.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. newspapers radio television Internet Yellow Pages Answer: c Page: 348.950. the need to shoot commercials in “exotic” locations has increased. d. As companies have developed global campaigns.000. b. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements.

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

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

b. e.00 $4. direct mail versus television.000 divided by 500 equals $2. e. 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 500.00. This would give a comparison of the costs (financial effectiveness) for different media.000. e. b. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. Thus.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1. the CPM = $2.00. DEFINITION cost of one medium relative to the cost of other media (e. d. cost per minute of television or radio time number of consumers exposed to an advertising message. in thousands.000 households for a cost of $1.00 $2. c. 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. radio.g. $5. each of which are divided by the multiple of their respective reach and frequency. and $1.000 households (total 500. what would your cost per thousand (CPM) be? a. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1.000).00 $1.00 $3.000 individuals or households with the advertising message in a given medium. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message. or outdoor). c. b. cost of reaching 1000 individuals or households with the advertising message. d. 1061 . c. d.

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

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

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

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

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

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

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

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

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

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

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

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

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

e. experience tests. a. b. 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.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. c. c. c. d. e. d. b. posttests. Answer: d Page: 353 Rationale: Key term definition—posttests . intrafirm agency promotional department full-service agency in-house agency limited-service agency Answer: d Page: 353 Rationale: Key term definition—in-house agency 16-109 POSTTESTS DEFINITION Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose are referred to as: a. a. b. control testing. d. e. exposure testing.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

used an IMC approach including videostreaming on the Internet. and d all describe characteristics of the BMW campaign. Find a role for Buddy Lee. c. it helped Lee develop Lee dungarees for 17to 22-year olds. d. public service announcement. c. and which involves free space or time donated by the media is called a(n): a. e. b. is accurately described by all of the above. b. news moment. news conference. As a result. d. Answer: a Page: 359 Rationale: Text term definition—public service announcements (PSAs) 16-166 VIDEO CASE: FALLON WORLDWIDE CONCEPTUAL What was the promotional objective of Fallon Worldwide’s campaign for Lee Dungarees? a. b. b. news item. e. Gain favorable perceptions of Lee among older women. separated BMW from Mitsubishi and Ford. 1101 . c. Create a “fashion” image for Lee. adopted a “responsiveness” positioning for BMW.16-165 PUBLIC SERVICE ANNOUNCEMENT DEFINITION A publicity tool that is heavily relied on by nonprofit organizations. 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. Develop similarities between Lee and Levi’s. c. Answer: e Page: 527 Rationale: The alternatives a. quid pro quo ad. 16-167 VIDEO CASE: FALLON CONCEPTUAL The ad campaign Fallon Worldwide advertising agency developed for BMW: a. e. targeted 20 to 30 year-olds. d. Gain favorable perceptions of Lee among young people.

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

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

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

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

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

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. 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. The latter is accomplished because customers build up inventory as a result of the deal and. Deals are short-term price reductions used to increase trial among potential customers or to retaliate against a competitor's actions. In this situation the inquiry tests would be the best to use because additional product information is offered to the ad’s readers. (4) inquiry tests.) Page: 355 16-180 SALES PROMOTION What is the difference between a contest and a sweepstakes? Answer: A contest is where consumers apply their analytical skill or creative thinking to try to win a prize. 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. They are typically used to encourage trial among consumers. (3) attitude tests. with the objective of generating leads for its sales force. and (5) sales tests.16-178 EVALUATING THE ADVERTISING PROGRAM APPLICATION SAP. for example. sends direct mail pieces to prospective customers. Ads generating the most inquiries or leads for the sales force are presumed to be the most effective. (2)unaided recall. therefore. Page: 355-356 CONCEPTUAL CONCEPTUAL 1107 . a large business-to-business software provider. do not react to competitive actions (a new product introduction.

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

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

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

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