Chapter 16 ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS Test Item Table

Major Section of the Chapter Level 1: Definition (Knows Basic Terms & Facts) What’s the Future of Advertising? The Answer is Personal! (pp. 343-344) Types of Advertisements (pp. 344-345) Developing the Advertising Program (pp. 345-352) Executing the Advertising Program (pp. 352-353) Evaluating the Advertising Program (pp. 353-354) Sales Promotion (pp. 354-359) Level of Learning Level 2: Conceptual (Understands Concepts & Principles) 1, 2 Level 3: Application (Applies Principles)

3, 4, 5, 7, 12, 13, 14, 18, 23, 24, 25, 27, 32, 35, 36 45, 49, 52, 56, 58, 59, 61, 63, 64, 69, 79, 82, 86, 87, 88, 89, 91, 92, 94, 171 98, 105, 107, 108, 174 109, 113, 114

8, 10, 15, 16, 20, 22, 26, 28, 38, 168, 169 39, 40, 41, 42, 43, 44, 48, 50, 53, 55, 57, 62, 68, 70, 71, 72, 74, 75, 76, 77, 78, 80, 81, 83, 85, 170, 172 97, 99, 100, 101, 102, 103, 104, 173, 176, 177 110, 111, 112, 116, 117, 118, 119 124, 126, 127, 129, 133, 140, 141, 143, 152, 159, 179, 180

6, 9, 11, 17, 19, 21, 29, 30, 31, 33, 34, 37 46, 47, 51, 54, 60, 65, 66, 67, 73, 84, 90, 93, 95, 96 106, 175

115, 178

120, 121, 134, 137, 145, 148, 150, 151, 153, 154, 155, 156, 182, 183, 184 160, 162, 164, 165, 185

122, 123, 125, 128, 130, 131, 132, 135, 136, 138, 139, 142, 144, 146, 147, 149, 157, 158, 181 161, 163

Public Relations (pp. 359) Video Case: Fallon Worldwide (pp. 361-363)

166, 167

Note: Bold numbers indicate short essay questions.

1035

CHAPTER 16 ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS MULTIPLE CHOICE QUESTIONS 16-1 CHAPTER OPENING EXAMPLE: ADVERTISING CONCEPTUAL

__________ uses a patented computer system that digitally inserts ads into sporting events and other broadcast—not as a 15- or 30-second commercial—but as a visual part of the program. a. b. c. d. e. Media convergence Interstitials The digital divide Virtual advertising Interactive television

Answer: d Page: 343 Rationale: Virtual advertising inserts ads as a visual part of sporting event programming. On ESPN’s coverage of baseball games, for example, television viewers see ads that appear to be on the backstop behind home plate that are invisible to fans at the game. 16-2 CHAPTER OPENING EXAMPLE: ADVERTISING Personal video recorders (PVRs): a. b. c. d. e. enable viewers to basically program their own personal network. are in the prototype stage of market development and may never make it to market due to copyright issues. cannot be used as one-to-one marketing tools. use video created by the PVR owner and digitally intersperses it with television broadcasts. are accurately described by all of the above. CONCEPTUAL

Answer: a Page: 343 Rationale: TiVo is an example of a PVR. Soon advertisers will be able to insert ads into PVRs that are specific to the viewer of that television. 16-3 ADVERTISING DEFINITION

__________ is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. a. b. c. d. e. Publicity Sales promotion Advertising Personal selling Direct marketing Page: 344

Answer: c

Rationale: Key term definition—advertising

1037

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

b. 1057 . “Around here. 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. the use of humor is widespread in advertising and can be found in many product categories. Unfortunately for the advertiser. e. the use of humor is widespread in advertising and can be found in many product categories.'” This use of a ___________ appeal implies that the dressing is like what is served at the finest eating establishments. adults do not. d. boring the consumer. As with fear and sex appeals. a. Most humorous advertisements offend someone. eventually boring the consumer. Humorous appeals are easily ignored. What adults find humorous. Humor tends to wear out quickly. Another problem with humorous appeals is that their effectiveness may vary across cultures if used in a global campaign. c. we're 'jeans and t-shirts' but our dressing is 'night on the town. 16-54 HUMOROUS APPEALS APPLICATION An ad for Kraft salad dressings uses a play on words in its headline. e. b. Another problem with humorous appeals is that their effectiveness may vary across cultures if used in a global campaign.16-53 HUMOROUS APPEALS CONCEPTUAL Which of the following statements describes a problem with using humorous appeals in advertising? a. but you can enjoy it in the comfort of your home. children do not. c. Unfortunately for the advertiser. humorous appeals tend to wear out quickly. humorous rhetorical family life cycle sex figure of speech Answer: a Page: 347 Rationale: Humorous appeals imply either directly or more subtly that the product is more fun or exciting than competitors’ offerings. As with fear and sex appeals. What children find humorous. humorous appeals tend to wear out quickly. eventually boring the consumer. d.

e. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a. advertising expenditures at $59. a decoder. outdoor and internet. reach and frequency. The expenditures drop nearly in half for “other”.000 to produce because actors are expensive ($12. yellow pages. c. and newspapers at $49. b.000.S. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. b.838. A high-quality 30-second TV commercial typically costs about $268. newspapers radio television Internet Yellow Pages Answer: c Page: 348. .000) and as companies have developed global campaigns. c.000. A high-quality 30-second TV commercial typically costs about $268. d.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. the need to shoot commercials in “exotic” locations has increased.050. b. followed by direct mail at $49. Answer: a Page: 348 Rationale: Text term definition—advertising media 16-57 ADVERTISING EXPENDITURES BY MEDIA TYPE CONCEPTUAL Which of the following types of media garners the largest amount of advertising expenditures? a.950. television garners the largest amount of U. e. media convergence. Figure 16-1 Rationale: As shown in Figure 16-1.000 to produce. d. d. advertising media. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements.000 to $15. c. e. All of the above statements are true about creating the advertising message. radio magazines. micromarketing.000.000 small commercial production companies in the US. As companies have developed global campaigns. the need to shoot commercials in “exotic” locations has increased. There are about 2.

a. 10 20 30 40 50 Answer: b Page: 348 Rationale: Rating as defined in the text is the percentage of households in a market that are tuned to a particular TV show or radio station. a.16-58 REACH DEFINITION __________ is defined as the number of different people or households exposed to an advertisement. c. b. what would be the movie's rating? a. c. or a rating for the movie of 20. d. 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. b. b. d. 1059 . e. In this instance the audience is one-fifth of households. 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. which is 20 percent.

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

Answer: c Page: 349 Rationale: Key term definition—cost per thousand 16-65 COST PER THOUSAND (CPM) APPLICATION If you ordered a commercial to run on a local station that could reach 500.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1. c. DEFINITION cost of one medium relative to the cost of other media (e. d.00 $4. and $1. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1. in thousands.g. This would give a comparison of the costs (financial effectiveness) for different media.000 divided by 500 equals $2. d. 1061 . each of which are divided by the multiple of their respective reach and frequency. cost of reaching 1000 individuals or households with the advertising message.000 households for a cost of $1.00 $1. e. b. radio. direct mail versus television.000 households (total 500. d. Thus.00 $2. cost per minute of television or radio time number of consumers exposed to an advertising message. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a.00. c. e.000 individuals or households with the advertising message in a given medium. b.00 $3. c.000).00.000. $5. b. e. what would your cost per thousand (CPM) be? a. 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. the CPM = $2.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. or outdoor).

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

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

c. d. News papers or radio may be more appropriate because it takes a short time to develop the ad. 16-73 MAGAZINES APPLICATION Shur-Valu Supermarkets changes its ads constantly to describe new products it has for sale and different price specials it offers. c. e. the short lead time needed to place an ad. billboard (outdoor) direct mail radio magazines newspapers Answer: d Page: 350. e. Figure 16-2 Rationale: Magazines need a long lead time to change the copy and focus of the message. ads are relatively high cost. . all of the above CONCEPTUAL Answer: a Page: 350. Figure 16-2 Rationale: Magazines can target specific audiences. and because this supermarket constantly changes its ads.Some magazines such as Time publish regional editions. their ability to target specific audiences. their low cost. Which medium would be the least logical choice for placement of its messages? a. b. and compete for attention with other magazine features. Some magazines such as Time publish regional editions. a long time is needed to place an ad. 16-74 MAGAZINES One reason for using magazines as an advertising medium is: a. use high-quality color. ads can be clipped and saved and can convey complex information. b. d. the lack of noise associated with the use of magazines in the communication channel. The ads have long lives. However. magazines would be inappropriate.

Page: 351.16-75 NEWSPAPERS CONCEPTUAL Which of the following statements about newspapers as an advertising medium is true? a. d. so companies are limited to ads that call for an immediate response. inability to cover local markets. they allow advertisements to focus on specific current events. Local retailers often use newspapers as their sole advertising medium. Local retailers often use newspapers as their sole advertising medium. Color reproduction is not very good. National advertising campaigns rarely include this medium except in conjunction with local distributors and usually both parties share the advertising costs. Local retailers often use newspapers as their sole medium. they allow advertisements to focus on specific current events. 1065 . National advertising campaigns rarely include this medium except in conjunction with local distributors and usually both parties share the advertising costs. Because of the daily publication of most papers. high cost. b. 16-76 NEWSPAPERS One reason for NOT using newspapers as an advertising medium is their: a. ability to create noise during the communication process. Because of the daily publication of most papers. Newspapers are rarely saved by the purchaser. Color reproduction is not as good as that in most magazines. so companies are limited to ads that call for an immediate response. short life span. Newspapers are rarely saved by the purchaser. All of the above statements about newspapers as an advertising medium are true. e. c. e. National companies rarely use newspapers except in conjunction with local distributors of their products. c. b. Figure 16-2 CONCEPTUAL Answer: c Rationale: Newspapers are an important local medium with excellent reach potential. long lead time for ad placement. Color reproduction is not as good as that in most magazines. Answer: e Page: 351. d. Newspapers have excellent local reach potential. Figure 16-2 Rationale: Newspapers are an important local medium with excellent reach potential.

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

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

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

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

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

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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b. They are asked to select the one they think is most effective and explain why. present a panel of consumers with an ad and ask for their reactions concerning the ad's effectiveness. d. e. The ad is then removed. CONCEPTUAL present a panel of consumers with an ad and ask for their reactions concerning the ad's effectiveness. present a panel of consumers with an ad for a limited period of time. e. The ad is then removed. However.16-100 PORTFOLIO TESTS Portfolio tests: a. use electronic devices to measure viewer response or feelings after viewing an advertisement. . etc. c. d. etc. This approach is similar to the portfolio test in that consumer reactions are obtained. and the respondents are asked to recall as much pertinent information as possible. 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. a test advertisement is not hidden within other ads. how much it drew their attention. They are asked to select the one they think is most effective and explain why. place a test ad in the midst of other ads and stories. and how attractive they thought it was. Answer: d Page: 353 Other Location: web Rationale: A portfolio test places an ad in a portfolio with several other ads and stories and consumers are asked to read through the portfolio. present consumers with a sample of a product and several different advertisements for the product. 16-101 JURY TESTS Jury tests: a. use electronic devices during or questionnaires after consumers view an advertisement to measure viewer response or feelings. present a panel of consumers with an ad for a limited period of time. appeal. present consumers with a sample of a product and several different advertisements for the product. b. unlike the portfolio test. and then ask consumers for their impressions of the ads. c. instruct consumers to look at the ads and stories. and the respondents are asked to recall as much pertinent information as possible. appeal. present consumers with a hidden ad.

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

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

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

d. c. b. experience tests. posttests. a. b. c. 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. e. a. pretests. d. 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. Answer: d Page: 353 Rationale: Key term definition—posttests . full-service agency in-house agency modified-service agency promotional firm limited-service agency Answer: e Page: 353 Rationale: Key term definition—limited-service agencies 16-108 IN-HOUSE AGENCY DEFINITION An __________ made up of the company’s own advertising staff may provide full services or a limited range of services. b. e. d. exposure testing. e.

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

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

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

a question such as. respondents are asked questions to measure changes in their attitudes after an advertising campaign. With inquiry tests. a question such as. or premiums are offered to an ad's readers or viewers. additional product information. and ads generating the most inquiries are presumed to be the most effective. or an advertising agency to manipulate an advertising variable (such as schedule or copy) and observe subsequent sales effects. or listening. or premiums are offered to an ad's readers or viewers. Inquiry tests involve studies such as controlled experiments and consumer purchase tests. and ads generating the cost inquiries are presumed to be the most effective. d. a distributor. such as whether they had a more favorable attitude toward the product advertised. product samples. product samples. viewing. and ads generating the most inquiries are presumed to be the most effective. c. CONCEPTUAL With inquiry tests. In an inquiry test. e. 16-119 SALES TESTS Which of the following statements about sales tests is true? a. "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 a sales test. With sales tests. b. product samples. respondents are asked questions to measure changes in their attitudes after an advertising campaign. additional product information. respondents are first shown an ad and then asked whether their previous exposure to it was through reading. c. . In an inquiry test. 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. additional product information. CONCEPTUAL Answer: c Page: 354 Rationale: Sales tests allow a manufacturer.16-118 INQUIRY TESTS Which of the following statements about inquiry tests is true? a. Answer: a Page: 354 Rationale: With inquiry tests. or an advertising agency to manipulate an advertising variable (such as schedule or copy) and observe subsequent sales effects by monitoring data collected from checkout scanners in supermarkets. viewing. such as whether they had a more favorable attitude toward the product advertised. With sales tests. e. or listening. In a sales test. or premiums are offered to an ad's readers or viewers. Sales tests allow a manufacturer. respondents are first shown an ad and then asked whether their previous exposure to it was through reading. a distributor. b.

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

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

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

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

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

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

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. 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. 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. 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. c. premium. Federal laws. and games to regulate their fairness. Answer: d Page: 355 Other Location: web Rationale: Contests are sales promotions in which customers apply their creative skills or analytical thinking to win a prize. 1089 . the Federal Trade Commission. c. and state legislatures have issued rules covering sweepstakes. The approach is very effective. deal. a. contests. Sweepstakes are based on chance (luck) while contests require some skill. b. d.16-136 CONTESTS APPLICATION The first week of April. contest. d. b. This is an example of a: a. and guarantee that the prizes are actually awarded. trade promotion. e. e. finding the errors and sending the list to California requires some skill and the prize is a trip to the set and a walk-on role. In this case. ensure that the chance for winning is represented honestly. sweepstakes.

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

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

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

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

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

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

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

b. c. d. c. cooperative advertising. a finance allowance. 1097 . Answer: a Page: 358 Rationale: Resellers often perform the important function of promoting the manufacturer's products at the local level. 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. d. e. This ad is an example of: a. One common sales promotional activity is to encourage both better quality and greater quantity in the local advertising efforts of resellers through cooperative advertising.16-155 FINANCE ALLOWANCE DEFINITION A __________ pays retailers for financing costs or financial losses associated with consumer sales promotions. a merchandise allowance. Belinda noticed an advertisement containing manufacturer's coupons from Kodak redeemable only at Target stores. d. e. a case allowance. specialty advertising. b. c. These are programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products. a. Trade promotion programs Consumer promotion programs Cooperative advertising programs Cause-related marketing programs Shared-responsibility programs Answer: c Page: 358 Rationale: Key term definition—cooperative advertising 16-157 COOPERATIVE ADVERTISING APPLICATION While reading the newspaper. e. b. a.

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

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

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

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

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

When they want to reach the audience more than once. the advertisers are concerned with frequency. the advertiser (or media planner) must balance reach and frequency.000 individuals or households with the advertising message in a given medium or the cost of advertising divided by the number of thousands of individuals or households who are exposed. advertisers try to maximize reach in their target market at the lowest cost. Page: 348-349 1103 . Although reach is important. In general. they must be concerned with reach. Rating is the percentage of households in a market that are tuned to a particular TV show or radio station. Define reach. Answer: • • • • • Reach is the number of different people or households exposed to an advertisement. Like reach. Cost per Thousand is the cost of reaching 1. Because advertisers try to maximize the number of individuals in the target market exposed to the message. Gross rating points are the reach multiplied by frequency. advertisers are also interested in exposing their target audience to a message more than once because consumers often do not pay attention to advertising messages. and cost per thousand (CPM). frequency. rating. Frequency is the average number of times a person in the target audience is exposed to a message or advertisement. gross rating points (GRPs).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 16-171 BASIC TERMS OF ADVERTISING DEFINITION Media buyers use many terms to help select the right media for an advertising campaign. greater frequency is desirable but because of cost.

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

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

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

(2)unaided recall. The latter is accomplished because customers build up inventory as a result of the deal and. Page: 355-356 CONCEPTUAL CONCEPTUAL 1107 . 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. and (5) sales tests.) Page: 355 16-180 SALES PROMOTION What is the difference between a contest and a sweepstakes? Answer: A contest is where consumers apply their analytical skill or creative thinking to try to win a prize. do not react to competitive actions (a new product introduction. a large business-to-business software provider. (4) inquiry tests. sends direct mail pieces to prospective customers. Deals are short-term price reductions used to increase trial among potential customers or to retaliate against a competitor's actions. (3) attitude tests. therefore. for example. They are typically used to encourage trial among consumers. In this situation the inquiry tests would be the best to use because additional product information is offered to the ad’s readers. Ads generating the most inquiries or leads for the sales force are presumed to be the most effective. Page: 354 16-179 SALES PROMOTION What is the difference between a coupon and a deal? Answer: Coupons are sales promotions that offer a discounted price to the consumers. Which type of posttest would be the best to use to evaluate the direct mail campaign? Answer: There are five types of posttests available to evaluate the advertising program: (1) aided recall.16-178 EVALUATING THE ADVERTISING PROGRAM APPLICATION SAP. with the objective of generating leads for its sales force.

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

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

These include: 1. 3. radio station. DEFINITION Answer: Publicity tools are several methods of obtaining nonpersonal presentation of an organization. good. 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.16-185 PUBLICITY TOOLS What are publicity tools? Give three examples. 2. or service without direct cost. The objective of a news release is to inform a newspaper. The press release. consisting of an announcement regarding changes in the company or the product line. A recent study found that more than 40 percent of all free mentions of a brand name occur during news programs. PSAs are free space or time donated by the media. and advance materials regarding the content are sent. Page: 359 .

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