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

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

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

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

b. Studies indicate that comparative ads attract more attention and increase the perceived quality of the advertiser’s brand. a. reinforce previous knowledge. a. e. Institutional Hierarchical Pioneering Competitive Reminder DEFINITION Answer: d Page: 344 Rationale: Text term definition—competitive advertising 16-14 COMPARATIVE ADVERTISING DEFINITION __________ advertisements are competitive advertisements that show one brand’s strengths relative to those of competitors. 16-15 COMPETITIVE ADVERTISING Competitive product and brand advertising is typically used to: a. 1041 . Advocacy Competitive institutional Reminder Comparative Differentiation Answer: d Page: 344 Rationale: An increasingly common form of competitive advertising is comparative advertising. d. state the position of the advertiser on an issue. e. which shows one brand's strengths relative to those of the competitors. inform the target market. persuade the target market. CONCEPTUAL Answer: c Page: 344 Rationale: Advertising that promotes a specific brand’s features and benefits is competitive. identify the target market. c. c. d. The objective of these messages is to persuade the target market to select the firm’s brand rather than that of a competitor. b. d. e.16-13 COMPETITIVE ADVERTISING __________ advertising promotes a specific brand's features and benefits. c. b. 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. reinforce previous knowledge of a product. promote the advantages of one product class over another.16-16 COMPARATIVE ADVERTISING Which of the following statements about comparative advertising is true? a. c. CONCEPTUAL Comparative advertisements now constitute over two-thirds of all television ads. DEFINITION Answer: d Page: 344 Rationale: Text term definition—reminder . reinforcement comparative persuasive informative reminder Answer: b Page: 344 Rationale: An increasingly common form of competitive advertising is comparative advertising. c. b. what it can do. d. e. d. Comparative advertisements have been banned by the Federal Trade Commission. b. a. All of the above statements about comparative advertising are true. and where it can be found. 16-18 REMINDER ADVERTISING The purpose of a reminder advertisement is to: a. tell people what a product is. Studies indicate that comparative ads attract more attention and increase the perceived quality of the advertiser’s brand. Studies indicate that comparative ads attract more attention and increase the perceived quality of the advertiser’s brand. d. Comparative advertisements attract less consumer attention to the advertiser's brand. Firms that use comparative advertising need market research to support claims made in the ads. e. state the position of a company on an issue. 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. promote a specific brand's features and benefits. c. e. which shows one brand's strengths relative to those of the competitors. b. 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. Answer: c Page: 344 Rationale: An increasingly common form of competitive advertising is comparative advertising. This is ad is an example of __________ advertising.

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

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

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

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

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

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

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

d. c. This can be applied to advertising. competitive institutional competitive product advocacy pioneering product reminder institutional Answer: e Page: 345 Rationale: The purpose of reminder institutional advertisements is to bring the company's name. (2) specify the objectives. so the steps in developing the advertising program are (1) identify the target audience. the first step of the promotion decision process is developing the promotion program. set the budget. b. specify the objectives of the advertising program. In this case. (6) schedule the promotion— advertising. b. There was no mention of the company name or sign of a product in the ad. or trademark to the attention of the target market again. . showing only the Mercedes logo on a chocolate simply reminded the audience of the Mercedes brand automobile. This ad was an example of __________ advertising. e. a. d. 16-38 ADVERTISING DECISION PROCESS: PLANNING The first step in the advertising decision process is: a. select the media. (3) set the budget. Figure 15-5 Other Location: web Rationale: As shown in Figure 15-5. c. select the appeal. (5) design the promotion—select the appeal for advertising. identify the target audience. e. CONCEPTUAL Answer: c Page: 345.16-37 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. (4) select the right promotional elements—media for advertising.

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

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

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

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

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

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

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

advertising media. b. the need to shoot commercials in “exotic” locations has increased.838. c. d. television garners the largest amount of U. . The expenditures drop nearly in half for “other”.000. A high-quality 30-second TV commercial typically costs about $268.000 small commercial production companies in the US. All of the above statements are true about creating the advertising message. radio magazines.S. e.000 to $15. b.000) and as companies have developed global campaigns. d. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. a decoder. As companies have developed global campaigns. d. reach and frequency. followed by direct mail at $49. the need to shoot commercials in “exotic” locations has increased.000. Answer: a Page: 348 Rationale: Text term definition—advertising media 16-57 ADVERTISING EXPENDITURES BY MEDIA TYPE CONCEPTUAL Which of the following types of media garners the largest amount of advertising expenditures? a. e. outdoor and internet.950. micromarketing. yellow pages.000 to produce because actors are expensive ($12. advertising expenditures at $59. and newspapers at $49. b. There are about 2. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. c. Figure 16-1 Rationale: As shown in Figure 16-1. media convergence. A high-quality 30-second TV commercial typically costs about $268.000 to produce.050. c. e.000. newspapers radio television Internet Yellow Pages Answer: c Page: 348.

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

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

e. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a. c.00 $3. $5.00.g. cost per minute of television or radio time number of consumers exposed to an advertising message.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. d.000 divided by 500 equals $2. each of which are divided by the multiple of their respective reach and frequency. DEFINITION cost of one medium relative to the cost of other media (e.000 households (total 500. 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. 1061 . or outdoor). what would your cost per thousand (CPM) be? a. d.000. This would give a comparison of the costs (financial effectiveness) for different media.00 $4. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1.000 individuals or households with the advertising message in a given medium.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1. radio. d.000 households for a cost of $1.00 $1. Answer: c Page: 349 Rationale: Key term definition—cost per thousand 16-65 COST PER THOUSAND (CPM) APPLICATION If you ordered a commercial to run on a local station that could reach 500. c.00. b. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message. direct mail versus television. b. e. the CPM = $2. Thus. e. and $1.00 $2. in thousands. c. b. cost of reaching 1000 individuals or households with the advertising message.000).

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

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

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

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

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

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

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

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

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

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.

1071

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.

1073

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

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

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

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

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. a. experience tests. b. 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. e. b. exposure testing. pretests. a. b. posttests. d. d. e. Answer: d Page: 353 Rationale: Key term definition—posttests . 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. e. c. c. c.

CONCEPTUAL Answer: e Page: 354 Rationale: After being shown an ad. With aided recall posttests. b. 1079 . respondents are asked whether their previous exposure to it was through reading. Alternatives a. d. c. such as whether they had a more favorable attitude toward the product advertised. b. attitude tests theater tests inquiry tests sales tests recall tests CONCEPTUAL Answer: b Page: 354 Rationale: Theater tests are a type of pretest. respondents are first shown an ad and then asked whether their previous exposure to it was through reading. d.16-110 POSTTESTS Which of the following is NOT an example of an advertising posttest? a. and ads generating the most inquiries are presumed to be the most effective. e. d. b. or premiums are offered to an ad's readers or viewers. c. 16-112 AIDED RECALL Which of the following statements about aided recall posttests is true? a. With aided recall posttests. theater tests portfolio tests sales tests jury tests all of the above CONCEPTUAL Answer: c Page: 354 Rationale: Sales tests allow a manufacturer. viewing. additional product information. In an aided recall posttest. Aided recall posttests involve studies such as controlled experiments and consumer purchase tests. 16-111 POSTTESTS Which of the following is a type of posttest used for advertising messages? a. respondents are asked questions to measure changes in their attitudes after an advertising campaign. and d are pretests. or listening. a question such as. c. e. 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. e. a distributor. or an advertising agency to manipulate an advertising variable (such as schedule or copy) and observe subsequent sales effects by monitoring data collected from checkout scanners in supermarkets. b. product samples. In an aided recall posttest. viewing.

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

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

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

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

the primary objective of coupons is to: a.16-123 CONSUMER-ORIENTED SALES PROMOTIONS APPLICATION The offer of one free pizza with the purchase of one pizza at the regular price might appeal to you one evening. c. consumer feedback. e. stimulate supply. which encourages trial. sweepstakes. d. The alternative consumer-oriented sales promotion tools include coupons. clearinghouse costs. CONCEPTUAL Answer: d Page: 355 Rationale: Coupons are sales promotions that usually offer a discounted price to the consumer. Coupons are far more expensive than the face value of the coupon because additional costs include paying for the advertisement to deliver it. point-of-purchase displays. This type of incentive offer is an example of: a. encourage repeat purchases. dealer handling. and product placement. consumer-oriented sales promotions. b. mass-market communication. rebates. continuity programs. encourage present customers to buy more. or simply consumer promotions. contests. and redemption. In recent years. d. are sales tools used to support a company’s advertising and personal selling. and minimize brand switching behavior. encourage trial. The free pizza with the purchase of one pizza at regular price is a deal or short-term price reduction. a trade promotion. increase trial and retaliate against competitor's actions. premiums. Answer: c Page: 354 Rationale: Directed to ultimate consumers. e. and the time until expiration have all been increasing. . b. samples. the average face value of coupons. deals. the number of coupons with multiple-purchase requirements. a consumer-oriented sales promotion. c. consumer encoding. 16-124 COUPONS For marketers. The redemption rate is typically about 2 percent.

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

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

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

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

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

a rebate. d. 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. Overall. a self-liquidating premium. sampling. Federal laws. The approach is very effective. ensure that the chance for winning is represented honestly. the Federal Trade Commission. Answer: d Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price. b. lottery contest premium sweepstakes deal Answer: d Page: 356 Rationale: Sweepstakes are sales promotions that require participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer.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.org to register to win a prize of pistachios for a year. The association is using a __________ to measure the effectiveness of its ads. b. c. it is hoped they will remember and buy the product. a. Often used for new products. e. continuity. A trial size is generally offered that is smaller than the regular package size. c. If consumers like the sample. and games to regulate their fairness. contests. a special deal.pistachios. Taco Bell used a sales promotion technique called: a. companies invest more than $1. e. and guarantee that the prizes are actually awarded. and state legislatures have issued rules covering sweepstakes. d. The ads ask readers to log onto www. .2 billion in sampling programs each year. sampling puts the product in the consumer’s hands.

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

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

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

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

16-149 PRODUCT PLACEMENT APPLICATION The frequent appearance of Snapple drink on UPN's Roswell TV show is an example of: a. b. a product sample. product placement. sales promotions. Another form of product placement uses new digital technology that can make “virtual” placements in any existing program. d. retailers. video. b. sales tools directed used to support a company's advertising and personal selling directed to wholesalers. encoding promotional tools. indirectly paid presentation of a company or its products. product continuity. c. methods used to get a nonpersonal. Answer: d Page: 358 Rationale: Product placement involves the use of a brand-name product in a movie. e. and public service announcements advertisements that show actual consumers using the product. e. the photo on page 357 shows Beaver’s father with a cell phone in his pocket! 16-150 TRADE-ORIENTED SALES PROMOTIONS Trade-oriented sales promotions are: a. retailers. c. c. Examples are news releases. consumer promotions. For example. e. promotions where charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. trade-oriented sales promotions. a product deal. DEFINITION Answer: d Page: 358 Rationale: Key term definition—trade-oriented sales promotions 16-151 TRADE-ORIENTED SALES PROMOTIONS DEFINITION Sales tools used to support a company's advertising and personal selling directed to wholesalers. d. or distributors sales promotions which are directed to ultimate consumers and are used to support advertising and personal selling. manufacturers promotions. a product premium. b. or a commercial for another product. d. television show. or distributors are called: a. Answer: a Page: 358 Rationale: Key term definition—trade-oriented sales promotions 1095 . news conferences.

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

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

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

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

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

e. Answer: e Page: 527 Rationale: The alternatives a. separated BMW from Mitsubishi and Ford. news conference. Answer: e Page: 361-362 Rationale: Research showed Fallon Worldwide that Lee jeans was so associated with older women that it could not be repositioned. c. adopted a “responsiveness” positioning for BMW. quid pro quo ad. and which involves free space or time donated by the media is called a(n): a. e. b. targeted 20 to 30 year-olds. Find a role for Buddy Lee. b. d. As a result. 16-167 VIDEO CASE: FALLON CONCEPTUAL The ad campaign Fallon Worldwide advertising agency developed for BMW: a.16-165 PUBLIC SERVICE ANNOUNCEMENT DEFINITION A publicity tool that is heavily relied on by nonprofit organizations. Gain favorable perceptions of Lee among older women. Answer: a Page: 359 Rationale: Text term definition—public service announcements (PSAs) 16-166 VIDEO CASE: FALLON WORLDWIDE CONCEPTUAL What was the promotional objective of Fallon Worldwide’s campaign for Lee Dungarees? a. b. it helped Lee develop Lee dungarees for 17to 22-year olds. is accurately described by all of the above. c. news item. 1101 . used an IMC approach including videostreaming on the Internet. c. Gain favorable perceptions of Lee among young people. Create a “fashion” image for Lee. news moment. d. c. Develop similarities between Lee and Levi’s. b. and d all describe characteristics of the BMW campaign. public service announcement. d. e.

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

gross rating points (GRPs). the advertisers are concerned with frequency. When they want to reach the audience more than once. In general.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. Cost per Thousand is the cost of reaching 1. 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. 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. Define reach. rating. they must be concerned with reach. Gross rating points are the reach multiplied by frequency. Rating is the percentage of households in a market that are tuned to a particular TV show or radio station. the advertiser (or media planner) must balance reach and frequency. Although reach is important. advertisers try to maximize reach in their target market at the lowest cost. Because advertisers try to maximize the number of individuals in the target market exposed to the message. frequency.16-170 MEDIA SELECTION CONCEPTUAL What are the two conflicting goals advertisers face when choosing advertising media? What is the relationship of reach and frequency to these goals? Answer: The conflicting goals are maximizing exposure and minimizing costs. Page: 348-349 1103 . Answer: • • • • • Reach is the number of different people or households exposed to an advertisement. Frequency is the average number of times a person in the target audience is exposed to a message or advertisement. greater frequency is desirable but because of cost. Like reach. and cost per thousand (CPM).

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

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

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

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

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

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

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

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.