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

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

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

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

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

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

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

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

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

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

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

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

c. This is an example of a(n) __________ advertisement. The ads are not designed to sell specific brands. The goal of these ads is to increase demand for orange juice as it competes with other beverages. state the position of a company on an issue. tell people what a company is. e. 16-35 COMPETITIVE INSTITUTIONAL ADVERTISEMENTS The purpose of competitive institutional advertisements is to: a. Competitive institutional ads promote the advantages of one product class over another and are used in markets where different product classes compete for the same buyers. d. bring the company's name to the attention of the target market again. and where it is located. reinforce previous knowledge of a product. c. In this case. b. c. d. e. e. a. d. promote the advantages of one product class over another. promote a specific brand's features and benefits.16-34 COMPETITIVE INSTITUTIONAL ADVERTISEMENTS APPLICATION The state of Florida Department of Citrus developed the “To Your Health” campaign to show the benefits of orange juice. b. promote the advantages of one product class over another. what it can do. state the position of a company on an issue. what it can do. 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. promote a specific brand's features and benefits. tell people what a company is. the Florida Department of Citrus is suggesting drinking orange juice instead of other beverages. b. 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. DEFINITION Answer: d Page: 345 Rationale: Text term definition—reminder institutional advertisements 1049 .

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

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

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

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

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

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

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

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

d. 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. e.000.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. yellow pages. media convergence.000) and as companies have developed global campaigns. advertising expenditures at $59.000. A high-quality 30-second TV commercial typically costs about $268.000 to $15. e. e. and newspapers at $49. advertising media.050. a decoder. All of the above statements are true about creating the advertising message. c.000 small commercial production companies in the US. c. micromarketing. d. There are about 2. Figure 16-1 Rationale: As shown in Figure 16-1.000 to produce because actors are expensive ($12. television garners the largest amount of U. b. d. outdoor and internet. As companies have developed global campaigns. followed by direct mail at $49. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements. . reach and frequency. the need to shoot commercials in “exotic” locations has increased. radio magazines.000. b. b.000 to produce.838. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. A high-quality 30-second TV commercial typically costs about $268.S. newspapers radio television Internet Yellow Pages Answer: c Page: 348. c. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a. the need to shoot commercials in “exotic” locations has increased.950. The expenditures drop nearly in half for “other”.

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. c. a. c. 1059 . or a rating for the movie of 20. d. b. e. Scope Share Reach Span Rating Answer: c Page: 348 Rationale: Key term definition—reach 16-59 RATING DEFINITION __________ is defined as the percentage of households in a market that are tuned to a particular television show or radio station. e. e. b. In this instance the audience is one-fifth of households. 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.16-58 REACH DEFINITION __________ is defined as the number of different people or households exposed to an advertisement. which is 20 percent. a. b. d.

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

cost per minute of television or radio time number of consumers exposed to an advertising message. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a. d. what would your cost per thousand (CPM) be? a. c. cost of reaching 1000 individuals or households with the advertising message.00 $1. Thus. and $1.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. b. 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. each of which are divided by the multiple of their respective reach and frequency. e. b. c. d.00.000).000 households for a cost of $1. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message. e. d.00. This would give a comparison of the costs (financial effectiveness) for different media.00 $3. 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.g.000 households (total 500. $5. e.000 individuals or households with the advertising message in a given medium. or outdoor). c.00 $2. 1061 . b. the CPM = $2. direct mail versus television. radio.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1. in thousands. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1.000.000 divided by 500 equals $2. DEFINITION cost of one medium relative to the cost of other media (e.00 $4.

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

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

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

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

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

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

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

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

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

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

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

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

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

e. intrafirm agency promotional department full-service agency in-house agency limited-service agency Answer: d Page: 353 Rationale: Key term definition—in-house agency 16-109 POSTTESTS DEFINITION Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose are referred to as: a. control testing. exposure testing. d. e. posttests. b. e. c. 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. c. a. b. d. a. c.16-107 LIMITED-SERVICE AGENCIES DEFINITION A __________ is an advertising agency that specializes in one aspect of the advertising process such as providing creative services to develop advertising copy or buying previously unpurchased media space. Answer: d Page: 353 Rationale: Key term definition—posttests . experience tests. pretests. d. b.

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

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

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

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

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

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

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

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

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

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

b. Federal laws. b. Sweepstakes are based on chance (luck) while contests require some skill. and state legislatures have issued rules covering sweepstakes. 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. d. sweepstakes. In this case. Premiums Rebates Deals Contests Sweepstakes Answer: e Page: 356 Rationale: Sweepstakes are sales promotions that require participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer. This is an example of a: a. the Federal Trade Commission.16-136 CONTESTS APPLICATION The first week of April. e. The approach is very effective. 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. trade promotion. d. the Drew Carey television show premiers a show that is full of errors and asks viewers to record all the errors they can and send the list to an address in California. contest. premium. c. 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. 1089 . ensure that the chance for winning is represented honestly. deal. and guarantee that the prizes are actually awarded. and games to regulate their fairness. c. contests. e. 16-137 SWEEPSTAKES DEFINITION __________ are sales promotions that require participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer. a.

org to register to win a prize of pistachios for a year. Federal laws. e. If consumers like the sample. a self-liquidating premium. 16-139 SAMPLES APPLICATION Taco Bell introduced its new low-fat Border Lights fare by giving away 8 million free tacos and burritos in one day. d. e. companies invest more than $1. . The ads ask readers to log onto www. b. Often used for new products. it is hoped they will remember and buy the product.2 billion in sampling programs each year. and state legislatures have issued rules covering sweepstakes. The approach is very effective. Taco Bell used a sales promotion technique called: a. and guarantee that the prizes are actually awarded. continuity. Overall. sampling puts the product in the consumer’s hands. sampling. 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. and games to regulate their fairness. the Federal Trade Commission. a special deal. A trial size is generally offered that is smaller than the regular package size. c.pistachios. contests.16-138 SWEEPSTAKES APPLICATION The California Pistachio Growers Association has an ongoing ad campaign in which it encourages people to think of pistachios when they think of good times and good friends. d. ensure that the chance for winning is represented honestly. a. The association is using a __________ to measure the effectiveness of its ads. Answer: d Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price. c. b. a rebate.

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

16-143 CONTINUITY PROGRAMS CONCEPTUAL __________ is a sales promotion designed to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate. Provide a premium to build customer goodwill by receiving reduced price merchandise.16-142 SAMPLES APPLICATION Michael Angelo's Pepperoni Mini Calzones are easy-to-prepare snacks. . Answer: e Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price. Use a demonstrator hired by the company to prepare the snack in a grocery store and give away the snacks to the shoppers. Produce a point-of-purchase display that will be placed near a grocer's check-out register. 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. companies invest more than $1. Use a rebate to encourage customers to purchase the snack and increase customer confidence in the product. sampling puts the product in the consumer’s hands. The manufacturer is interested in employing a sales promotion technique that will communicate the ease of preparation and encourage customers to try the product. c. and car rental services to reward loyal customers. If consumers like the sample. Overall. b. hotels.2 billion in sampling programs each year. A trial size is generally offered that is smaller than the regular package size. c. b. a. e. Advertise on television showing a mother preparing the snack in less than 60 seconds in the microwave. The most popular continuity programs today are the frequent flyer and frequent traveler programs used by airlines. d. Often used for new products. Which method would it most likely employ? a. but the manufacturer believes customers are not buying the product as predicted because they are unfamiliar with calzones. d. e. it is hoped they will remember and buy the product.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

for example. In this situation the inquiry tests would be the best to use because additional product information is offered to the ad’s readers. and (5) sales tests. do not react to competitive actions (a new product introduction. They are typically used to encourage trial among consumers. therefore. Which type of posttest would be the best to use to evaluate the direct mail campaign? Answer: There are five types of posttests available to evaluate the advertising program: (1) aided recall. Ads generating the most inquiries or leads for the sales force are presumed to be the most effective. a large business-to-business software provider. (3) attitude tests. (4) inquiry tests. with the objective of generating leads for its sales force.) 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. (2)unaided recall. Page: 354 16-179 SALES PROMOTION What is the difference between a coupon and a deal? Answer: Coupons are sales promotions that offer a discounted price to the consumers. Page: 355-356 CONCEPTUAL CONCEPTUAL 1107 . sends direct mail pieces to prospective customers.16-178 EVALUATING THE ADVERTISING PROGRAM APPLICATION SAP. A sweepstakes requires participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer. Deals are short-term price reductions used to increase trial among potential customers or to retaliate against a competitor's actions. The latter is accomplished because customers build up inventory as a result of the deal and.

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

These allowances are usually deducted from the invoice. such as a picture of the product in a newspaper with a coupon good at only one store. A merchandise allowance is reimbursing a retailer for extra in-store support or special featuring of the brand. A case allowance is a discount on each case ordered during a specific time period. The merchandise allowance then consists of a percentage deduction from the list case price ordered during the promotional period. These programs involve a manufacturer paying a percentage of a retailer's local advertising expense for advertising the manufacturer's products. 2. which is based on the amount of the purchases the retailer makes of the manufacturer's products. 3.16-183 TRADE-ORIENTED SALES PROMOTIONS DEFINITION Explain what a merchandise allowance. sometimes suited for several different media. Performance contracts between the manufacturer and trade member usually specify the activity to be performed. The percentage is often 50 percent up to a certain dollar limit. In addition to paying a part of the advertising space or time. the manufacturer often furnishes the retailer with a selection of different ad executions. Answer: 1. and a finance allowance are. a case allowance. 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. The finance allowance involves paying retailers for financing costs or financial losses associated with consumer sales promotions. Page: 358-359 DEFINITION 1109 .

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

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