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

The ad headline proclaims. e. designed to inform consumers of the newest features of a specific product. The ad described in the question is a product ad. competitive. and reminder. . pioneering. raising money for a worthy cause. Starting With the Door. The ad copy states that the new Chevy truck is the only compact pickup to offer a third door. advocating a political position. The advertisement is an example of a(n) __________ advertisement. obtaining inquiries. and reminder. selling a good or service. comparative. pioneering. "Just Thought We'd Reinvent the Wheel. d. a. d. e." The advertisement emphasizes the truck's newest feature. introductory. b. b. and reminder. competitive. and reminder. persuading opinion leaders. b. c. 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. institutional.16-4 PRODUCT ADVERTISEMENTS DEFINITION Product advertisements focus on selling a good or service and take three major forms. 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 third door designed to let passengers enter the extended cab more easily. competitive. and reminder. c. d. They are: a. comparative. introductory. c. e. 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. Answer: b Page: 344 Other Location: web Rationale: Key term definition—product advertisements 16-5 PRODUCT ADVERTISEMENTS Product advertisements focus on: 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. convincing. The key objective of the pioneering ad is to inform the target market. and effective. 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. The key objective of the pioneering ad is to inform the target market. and effective. d. 16-9 PIONEERING ADVERTISING APPLICATION Yamaha Corp. reinforce previous knowledge of a product. What form of product advertising is the company likely to use? a. A microphone picks up the sound. and where the product can be found. e. e. build goodwill or an image for an organization rather than promote a specific good or service. Informative ads have been found to be interesting. b. d. 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. feeds it to an amplifier. b. and then to headphones that allow the musician to hear the music at a normal volume.16-7 PIONEERING ADVERTISING The primary purpose of a pioneering advertisement is to: a. has developed a new device that reduces the volume of trumpets by more than 30 decibels—to the level of a whisper. DEFINITION promote a specific brand's features and benefits. what the product can do. and where the product can be found. Pioneering advertising should be used to tell the target market how the device works and where it can be found. c. b. 1039 . what the product can do. convincing. Yamaha’s device is new and thus in the introductory stage of the product life cycle. inform the target market show one brand's strengths relative to those of competitors. c. c. Informative ads have been found to be interesting. d.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

newspapers radio television Internet Yellow Pages Answer: c Page: 348. c. reach and frequency. c. advertising expenditures at $59. A high-quality 30-second TV commercial typically costs about $268. the need to shoot commercials in “exotic” locations has increased. d. and newspapers at $49. c. All of the above statements are true about creating the advertising message.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements. media convergence.950. the need to shoot commercials in “exotic” locations has increased. a decoder.000.050.838. b. The expenditures drop nearly in half for “other”. . outdoor and internet.000 to produce because actors are expensive ($12. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. micromarketing.000) and as companies have developed global campaigns.000 to produce.000 small commercial production companies in the US. b. e. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a. followed by direct mail at $49. d. yellow pages. As companies have developed global campaigns. e.S. television garners the largest amount of U.000. There are about 2. 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. radio magazines. advertising media. A high-quality 30-second TV commercial typically costs about $268. e. b. d.000.000 to $15. Figure 16-1 Rationale: As shown in Figure 16-1.

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

reach multiplied by rating. e. b. 16-63 GROSS RATING POINTS Gross rating points (GRPs) are: a. d. advertisers want to reach the same audience more than once. number of times an advertisement must be shown before a given percentage of the audience can recall key points of information.16-61 FREQUENCY Frequency is defined as the: a. total number of times an advertisement is broadcast on network and cable television or radio. b. the average number of times a person in the target audience is exposed to a message or advertisement. number of times an advertisement can be shown before it begins to lose effectiveness. Answer: c Page: 349 Rationale: When advertisers want to reach the same audience more than once. d. average number of times a person in the target audience is exposed to an advertisement. gross rating points. b. reach. DEFINITION number of different advertisements. c. reach multiplied by frequency. rating. c. they are concerned with frequency. frequency. e. cost divided by 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. DEFINITION Answer: a Page: 349 Rationale: Key term definition—gross rating points . cost divided by (reach multiplied by frequency). d. The average number of times a person in the target audience is exposed to a message or advertisement is called: a. parity. e. sales promotions. or publicity events in a promotional campaign of a marketing program. c. rating multiplied by frequency.

or outdoor).g. Thus. what would your cost per thousand (CPM) be? a. d. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a. c. and $1. direct mail versus television. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1. cost of reaching 1000 individuals or households with the advertising message. 16-66 COST PER THOUSAND (CPM) APPLICATION The vice-president of marketing of G Street Fabrics has been told to invest the company's advertising dollars wisely. 1061 . e. 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 500.00 $2. c. radio. d. e.00 $4.000). c. d. the CPM = $2. b.000 divided by 500 equals $2.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1. DEFINITION cost of one medium relative to the cost of other media (e.00 $1. b. each of which are divided by the multiple of their respective reach and frequency. in thousands.000 households for a cost of $1.000 individuals or households with the advertising message in a given medium. e. cost per minute of television or radio time number of consumers exposed to an advertising message. This would give a comparison of the costs (financial effectiveness) for different media.000 households (total 500.000.00 $3. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message.00.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. $5.00.

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

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

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

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

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

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

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

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

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

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

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

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

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

b. a. d. full-service agency in-house agency modified-service agency promotional firm limited-service agency Answer: e Page: 353 Rationale: Key term definition—limited-service agencies 16-108 IN-HOUSE AGENCY DEFINITION An __________ made up of the company’s own advertising staff may provide full services or a limited range of services. e. experience tests. c. d. c. e. posttests. intrafirm agency promotional department full-service agency in-house agency limited-service agency Answer: d Page: 353 Rationale: Key term definition—in-house agency 16-109 POSTTESTS DEFINITION Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose are referred to as: a. b. exposure testing. c.16-107 LIMITED-SERVICE AGENCIES DEFINITION A __________ is an advertising agency that specializes in one aspect of the advertising process such as providing creative services to develop advertising copy or buying previously unpurchased media space. d. pretests. e. control testing. Answer: d Page: 353 Rationale: Key term definition—posttests . b. a.

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

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

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

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

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

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

or even the offer. dealer handling. value. and redemption. the number of coupons with multiple-purchase requirements. (5) The coupon bar code. c. b. downloaded from an internet site. e. Some scam artists set up a fake store and send coupons to manufacturers for payment. clearinghouse costs. even though the products were not sold. (4) Counterfeiters print rebate forms and proofs of purchase to collect big cash rebates without buying the goods. c. e. Retailers increase their refunds by adding extra coupons to those handed in by shoppers. even though the products were not sold. 1085 . 16-126 ETHICS AND SOCIAL RESPONSIBILITY ALERT CONCEPTUAL Which of the following describes a method used by coupon cheaters to defraud consumer goods manufacturers? a.25 if you clip the ad and use it at the supermarket for your next purchase of Birdseye lima beans. b. rebate sample coupon deal premium Answer: c Page: 355 Rationale: Coupons are sales promotions that usually offer a discounted price to the consumer.16-125 COUPONS APPLICATION By placing an ad in the Sunday paper with an offer to save $. a. The redemption rate is typically about 2 percent. All of the above are methods used by coupon cheaters to defraud consumer goods manufacturers. d. 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. Coupons are far more expensive than the face value of the coupon because additional costs include paying for the advertisement to deliver it. the average face value of coupons. Counterfeiters print rebate forms and proofs of purchase to collect big cash rebates without buying the goods. In recent years. d. Answer: e Page: 355 Rationale: Coupon scams include: (1) Some scam artists set up a fake store and send coupons to manufacturers for payment. Birdseye is using a __________ to stimulate demand for its lima beans. which encourages trial. (2) Coupon collectors often sell coupons by the pound to retailers who are paid full face value by manufacturers. and the time until expiration have all been increasing. (3) Retailers increase their refunds by adding extra coupons to those handed in by shoppers.

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

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

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

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

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

he found the paper in a plastic bag along with a box containing one dose of Alka-Seltzer Heartburn Relief medication. Which type of sales promotion is Alka-Seltzer using? a. it is hoped they will remember and buy the product. If consumers like the sample. 1091 . products which are classified as shopping goods products in the decline stage of their product life cycle commodity products like salt. If consumers like the sample. d. Overall. 16-141 SAMPLES Sampling is an appropriate strategy for which type of products? a. b. sampling puts the product in the consumer’s hands. e. Overall. d. 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. c. A trial size is generally offered that is smaller than the regular package size. it is hoped they will remember and buy the product. b. companies invest more than $1. companies invest more than $1.2 billion in sampling programs each year. 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. Often used for new products. A trial size is generally offered that is smaller than the regular package size. e.16-140 SAMPLES CONCEPTUAL When Allyn went to get his newspaper. sugar. sampling puts the product in the consumer’s hands. c.2 billion in sampling programs each year. Often used for new products.

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

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

video. b. d. Answer: d Page: 357-358 Rationale: Key term definition—product placement . which sometimes actually holds or displays the product. television show. "Mail in three UPCs and cash register tapes with the prices circled to receive a check for $25. point-of-purchase. c. In addition. this “slippage” is less likely to occur with frequent users of rebate promotions. the sales clerk said. product continuity. a product deal. b. a product sample. rebate. b. a product premium. coupon. deal. When the rebate is offered on lower-priced items." Which sales promotion does this exemplify? a. “You'll probably want to take advantage of this offer. c. 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. premium.16-146 POINT-OF-PURCHASE DISPLAYS APPLICATION A brochure sent to retailers began with the following statement: "Retailers. a sample a free standing insert a premium a point-of-purchase display a deal Answer: d Page: 357 Rationale: A sales promotion that takes the form of an advertising sign. 16-148 PRODUCT PLACEMENT DEFINITION The consumer promotion that involves the use of a brand-name product in a movie. e. product placement. c. d. However. the time and trouble of mailing in a proof of purchase to get the rebate check often means that many buyers never take advantage of it.” The offer read. 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. or a commercial for another product is called: a. these new sunglasses come with their own attractive free-standing carousel that fits perfectly next to your cash register. d. online consumers are more likely to take advantage of rebates. e. e. 16-147 REBATES APPLICATION As Roderick was checking out of Office Depot." The offer was an example of a: a.

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

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

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

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

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

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

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

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

Page: 348-349 1103 . they must be concerned with reach. gross rating points (GRPs). greater frequency is desirable but because of cost. Although reach is important. Define reach. the advertiser (or media planner) must balance reach and frequency. and cost per thousand (CPM). rating. Answer: • • • • • Reach is the number of different people or households exposed to an advertisement. When they want to reach the audience more than once. Gross rating points are the reach multiplied by 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. 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. Frequency is the average number of times a person in the target audience is exposed to a message or advertisement. Cost per Thousand is the cost of reaching 1.16-170 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. the advertisers are concerned with frequency. advertisers try to maximize reach in their target market at the lowest cost.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. frequency. Like reach. In general. Rating is the percentage of households in a market that are tuned to a particular TV show or radio station.

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

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

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

(2)unaided recall. do not react to competitive actions (a new product introduction. sends direct mail pieces to prospective customers. The latter is accomplished because customers build up inventory as a result of the deal and. for example. therefore. Deals are short-term price reductions used to increase trial among potential customers or to retaliate against a competitor's actions. In this situation the inquiry tests would be the best to use because additional product information is offered to the ad’s readers. They are typically used to encourage trial among consumers. Ads generating the most inquiries or leads for the sales force are presumed to be the most effective. (4) inquiry tests. Page: 354 16-179 SALES PROMOTION What is the difference between a coupon and a deal? Answer: Coupons are sales promotions that offer a discounted price to the consumers. Which type of posttest would be the best to use to evaluate the direct mail campaign? Answer: There are five types of posttests available to evaluate the advertising program: (1) aided recall. (3) attitude tests. with the objective of generating leads for its sales force.) Page: 355 16-180 SALES PROMOTION What is the difference between a contest and a sweepstakes? Answer: A contest is where consumers apply their analytical skill or creative thinking to try to win a prize. a large business-to-business software provider.16-178 EVALUATING THE ADVERTISING PROGRAM APPLICATION SAP. A sweepstakes requires participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer. Page: 355-356 CONCEPTUAL CONCEPTUAL 1107 . and (5) sales tests.

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

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

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

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