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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fear appeals. Such advertisements are using: a.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. e. . 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. Sex appeals. When using 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. d. c. Coercive appeals Answer: a Page: 346 Rationale: Text term definition—fear appeals 16-46 FEAR APPEALS APPLICATION The testimonial type ads for carbon dioxide detectors feature parents who are discussing the dangers of carbon monoxide poisoning. sex appeals. Humorous appeals. b. c. fear appeals. the homeowners tell the target audience how disaster can be averted by purchasing and using the advertised product. a. Family appeals. humorous appeals. In many of the ads. b. family appeals. e. d.

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

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

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

000 small commercial production companies in the US.000 to produce because actors are expensive ($12. d. the need to shoot commercials in “exotic” locations has increased. media convergence. television garners the largest amount of U. c.950. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. d.050. b. As companies have developed global campaigns. 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. e.838. the need to shoot commercials in “exotic” locations has increased. b.S. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements.000 to produce. a decoder. yellow pages. A high-quality 30-second TV commercial typically costs about $268.000 to $15. c. advertising expenditures at $59.000. d. micromarketing. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a. newspapers radio television Internet Yellow Pages Answer: c Page: 348. e.000. and newspapers at $49.000.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. radio magazines.000) and as companies have developed global campaigns. advertising media. c. followed by direct mail at $49. . reach and frequency. The expenditures drop nearly in half for “other”. Figure 16-1 Rationale: As shown in Figure 16-1. A high-quality 30-second TV commercial typically costs about $268. All of the above statements are true about creating the advertising message. outdoor and internet. b. There are about 2.

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

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

d. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a. e. each of which are divided by the multiple of their respective reach and frequency. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message. c. cost of reaching 1000 individuals or households with the advertising message. c. b.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1.000 divided by 500 equals $2. cost per minute of television or radio time number of consumers exposed to an advertising message.00 $3. b.000 households for a cost of $1.00 $1. c. in thousands. DEFINITION cost of one medium relative to the cost of other media (e.000 households (total 500. $5.000). b. Answer: c Page: 349 Rationale: Key term definition—cost per thousand 16-65 COST PER THOUSAND (CPM) APPLICATION If you ordered a commercial to run on a local station that could reach 500. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1. or outdoor). direct mail versus television. d.00.000. and $1.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. the CPM = $2. 1061 . d.000 individuals or households with the advertising message in a given medium. This would give a comparison of the costs (financial effectiveness) for different media. 16-66 COST PER THOUSAND (CPM) APPLICATION The vice-president of marketing of G Street Fabrics has been told to invest the company's advertising dollars wisely. radio.00 $4. Thus. e.g.00 $2. what would your cost per thousand (CPM) be? a. e.00.

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

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

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

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

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

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

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

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

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

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

DEFINITION

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

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

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

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

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16-94 PULSE SCHEDULE

DEFINITION

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

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

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

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

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

16-97 EXECUTING THE ADVERTISING PROGRAM

CONCEPTUAL

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

. and the time until expiration have all been increasing. b. deals. and minimize brand switching behavior. rebates. a trade promotion. e. consumer-oriented sales promotions. c. continuity programs. consumer feedback. c. The alternative consumer-oriented sales promotion tools include coupons. or simply consumer promotions. point-of-purchase displays. clearinghouse costs. increase trial and retaliate against competitor's actions. 16-124 COUPONS For marketers. CONCEPTUAL Answer: d Page: 355 Rationale: Coupons are sales promotions that usually offer a discounted price to the consumer. and redemption. premiums. encourage present customers to buy more. b. d. the primary objective of coupons is to: a. which encourages trial. sweepstakes. samples. and product placement. the average face value of coupons. This type of incentive offer is an example of: a. dealer handling. consumer encoding. stimulate supply. contests. d. encourage repeat purchases. Answer: c Page: 354 Rationale: Directed to ultimate consumers. The redemption rate is typically about 2 percent. e. encourage trial. In recent years. The free pizza with the purchase of one pizza at regular price is a deal or short-term price reduction. are sales tools used to support a company’s advertising and personal selling. the number of coupons with multiple-purchase requirements. Coupons are far more expensive than the face value of the coupon because additional costs include paying for the advertisement to deliver it. a consumer-oriented sales promotion. mass-market communication.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. (5) The coupon bar code. d. Some scam artists set up a fake store and send coupons to manufacturers for payment. (2) Coupon collectors often sell coupons by the pound to retailers who are paid full face value by manufacturers. can be manipulated and copied with computers. (4) Counterfeiters print rebate forms and proofs of purchase to collect big cash rebates without buying the goods. which encourages trial. b. e. even though the products were not sold. Coupons are far more expensive than the face value of the coupon because additional costs include paying for the advertisement to deliver it. The redemption rate is typically about 2 percent. downloaded from an internet site. c. Retailers increase their refunds by adding extra coupons to those handed in by shoppers. and the time until expiration have all been increasing. Birdseye is using a __________ to stimulate demand for its lima beans. a. value. 1085 . In recent years. and redemption. Coupon collectors often sell coupons by the pound to retailers who are paid full face value by manufacturers. (3) Retailers increase their refunds by adding extra coupons to those handed in by shoppers. clearinghouse costs. 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. rebate sample coupon deal premium Answer: c Page: 355 Rationale: Coupons are sales promotions that usually offer a discounted price to the consumer. the number of coupons with multiple-purchase requirements. or even the offer. All of the above are methods used by coupon cheaters to defraud consumer goods manufacturers. e. b. d.16-125 COUPONS APPLICATION By placing an ad in the Sunday paper with an offer to save $. dealer handling. Answer: e Page: 355 Rationale: Coupon scams include: (1) Some scam artists set up a fake store and send coupons to manufacturers for payment. Counterfeiters print rebate forms and proofs of purchase to collect big cash rebates without buying the goods. even though the products were not sold.25 if you clip the ad and use it at the supermarket for your next purchase of Birdseye lima beans. the average face value of coupons.

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

16-131 PREMIUM APPLICATION A print ad for Allegra allergy medication offers a free purple seat cushion to all who request additional information about the drug. c. e. sample. 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. By offering a premium. This seat cushion is an example of a: a. Answer: c Page: 355 Rationale: A premium is a sales promotion that consists of offering merchandise free or at significant savings over its retail price. rebate. d. rebate. companies encourage customers to return frequently or to use more of the product. "Send three proofs of purchase and $3 for postage and handling to receive your monogrammed T-shirt. By offering a premium. a deal a premium a rebate a coupon a sample Answer: b Page: 355 Other Location: web Rationale: A premium is a sales promotion that consists of offering merchandise free or at a significant savings over retail." This ad was offering customers a: a. c. coupon. d. By offering a premium. b. sample. 16-132 PREMIUM APPLICATION What type of sales promotion is McDonald's using when it sells drinking glasses commemorating the 100th birthday of Walt Disney to consumers who also purchase a Happy Meal? a. companies encourage customers to return frequently or to use more of the product. deal. premium.16-130 PREMIUM APPLICATION The radio commercial said. deal. 1087 . e. b. premium. d. b. coupon. c. companies encourage customers to return frequently or to use more of the product. e.

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

b. c. Sweepstakes are based on chance (luck) while contests require some skill. 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. 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. contest. 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. 16-137 SWEEPSTAKES DEFINITION __________ are sales promotions that require participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer. and state legislatures have issued rules covering sweepstakes. trade promotion. e. a. In this case. 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. and guarantee that the prizes are actually awarded. d. Federal laws. 1089 . 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. contests. e. and games to regulate their fairness.16-136 CONTESTS APPLICATION The first week of April. The approach is very effective. ensure that the chance for winning is represented honestly. b. This is an example of a: a. d. sweepstakes. deal. the Federal Trade Commission.

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

Which type of sales promotion is Alka-Seltzer using? a. 1091 . e. 16-141 SAMPLES Sampling is an appropriate strategy for which type of products? a. Often used for new products. d. Overall.2 billion in sampling programs each year. sampling a deal a premium a point-of-purchase display a introductory offer Answer: a Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price. If consumers like the sample. Often used for new products. Overall. If consumers like the sample. d. sugar. companies invest more than $1.16-140 SAMPLES CONCEPTUAL When Allyn went to get his newspaper. sampling puts the product in the consumer’s hands. A trial size is generally offered that is smaller than the regular package size.2 billion in sampling programs each year. it is hoped they will remember and buy the product. b. b. sampling puts the product in the consumer’s hands. e. A trial size is generally offered that is smaller than the regular package size. he found the paper in a plastic bag along with a box containing one dose of Alka-Seltzer Heartburn Relief medication. it is hoped they will remember and buy the product. products which are classified as shopping goods products in the decline stage of their product life cycle commodity products like salt. c. and baking soda products which are in the introductory stage of the product life cycle products which are classified as specialty goods CONCEPTUAL Answer: d Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price. c. companies invest more than $1.

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

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

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

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

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

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

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

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

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

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

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

rating. When they want to reach the audience more than once.000 individuals or households with the advertising message in a given medium or the cost of advertising divided by the number of thousands of individuals or households who are exposed. Define reach. Although reach is important. advertisers try to maximize reach in their target market at the lowest cost. the advertisers are concerned with frequency. Page: 348-349 1103 . they must be concerned with reach. frequency. Because advertisers try to maximize the number of individuals in the target market exposed to the message. 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.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. Gross rating points are the reach multiplied by frequency. the advertiser (or media planner) must balance reach and frequency. Frequency is the average number of times a person in the target audience is exposed to a message or advertisement. Like reach. greater frequency is desirable but because of cost. and cost per thousand (CPM). 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. gross rating points (GRPs). Answer: • • • • • Reach is the number of different people or households exposed to an advertisement. Rating is the percentage of households in a market that are tuned to a particular TV show or radio station. In general. Cost per Thousand is the cost of reaching 1.

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

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

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

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

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

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

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

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