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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

c. the homeowners tell the target audience how disaster can be averted by purchasing and using the advertised product. d. Fear appeals. humorous 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. b. 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. In many of the ads.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. Family appeals. b. e. Such advertisements are using: a. c. d. sex appeals. fear appeals. Sex appeals. Humorous appeals. . When using fear appeals. a. coercive appeals Answer: a Page: 346 Rationale: Fear appeals suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or through a change in behavior.

16-49 SEX APPEALS DEFINITION In advertising. 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. d. and they have little impact on how consumers think.16-47 FEAR APPEALS APPLICATION An ad for Conesco Insurance asks the question. e. c. feel. life cycle appeal. b. sex appeal. Unfortunately many commercials that use sex appeals are only successful at gaining the attention of the audience. What women find sexy. c. Answer: d Page: 347 Rationale: Sex appeals suggest to the audience that the product will increase the attractiveness of the user. What men find sexy. men don't. 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. The sex appeal of the ad can distract the audience from the product. c. humorous appeal. or act. e. __________ suggest to the audience that the product will increase the attractiveness of the user. b. 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. “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. Sex appeals have no effect on senior citizens. d. rhetorical appeals logical appeals humorous appeals sex appeals fear appeals Answer: d Page: 347 Rationale: Text term definition—sex appeals 1055 . When using fear appeals. e. d. 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. 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. rhetorical appeal. fear appeal. women don't.

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

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

radio magazines. Figure 16-1 Rationale: As shown in Figure 16-1. the need to shoot commercials in “exotic” locations has increased. There are about 2.050. yellow pages. All of the above statements are true about creating the advertising message.000 small commercial production companies in the US. b. e. micromarketing. and newspapers at $49. a decoder. c. d. reach and frequency. d. . c. media convergence. As companies have developed global campaigns. The expenditures drop nearly in half for “other”. b. b. 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.000 to produce because actors are expensive ($12.950. advertising media.000.838. television garners the largest amount of U. outdoor and internet. advertising expenditures at $59. A high-quality 30-second TV commercial typically costs about $268.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. e.000. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. d. newspapers radio television Internet Yellow Pages Answer: c Page: 348.000) and as companies have developed global campaigns.000 to produce. A high-quality 30-second TV commercial typically costs about $268. c. followed by direct mail at $49.000. e.S.000 to $15. the need to shoot commercials in “exotic” locations has increased. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a.

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

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

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. b. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message. $5.00 $3. 16-66 COST PER THOUSAND (CPM) APPLICATION The vice-president of marketing of G Street Fabrics has been told to invest the company's advertising dollars wisely.000. b. DEFINITION cost of one medium relative to the cost of other media (e.00. e. 1061 . reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1. and $1. This would give a comparison of the costs (financial effectiveness) for different media. d. or outdoor). e. cost of reaching 1000 individuals or households with the advertising message.00 $1. c. e. c.000 households for a cost of $1.00. what would your cost per thousand (CPM) be? a. each of which are divided by the multiple of their respective reach and frequency. direct mail versus television. the CPM = $2.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a.000). d.000 individuals or households with the advertising message in a given medium.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1.000 households (total 500. c.00 $4. d. in thousands.g. Thus. radio.000 divided by 500 equals $2. b.00 $2. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a. cost per minute of television or radio time number of consumers exposed to an advertising message.

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

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

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

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

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

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

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

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

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

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

DEFINITION

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

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

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

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

1071

16-94 PULSE SCHEDULE

DEFINITION

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

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

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

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

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

16-97 EXECUTING THE ADVERTISING PROGRAM

CONCEPTUAL

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

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

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

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

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

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

1073

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

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

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

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

b. posttests. experience tests. a. 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. d. d. Answer: d Page: 353 Rationale: Key term definition—posttests . e.16-107 LIMITED-SERVICE AGENCIES DEFINITION A __________ is an advertising agency that specializes in one aspect of the advertising process such as providing creative services to develop advertising copy or buying previously unpurchased media space. e. c. control testing. a. c. d. b. e. c. full-service agency in-house agency modified-service agency promotional firm limited-service agency Answer: e Page: 353 Rationale: Key term definition—limited-service agencies 16-108 IN-HOUSE AGENCY DEFINITION An __________ made up of the company’s own advertising staff may provide full services or a limited range of services. b. pretests. exposure testing.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

b. .16-158 COOPERATIVE ADVERTISING APPLICATION A hardware store owner placed an advertisement for Sylvania light bulbs in the local newspaper. In addition to supplying the advertising formats. All of the above statements are true regarding manufacturer training of distributor sales forces. c. Both retailers and wholesalers employ and manage their own sales personnel. training can increase their sales performance. Sales force training can increase the reseller’s sales of the manufacturer’s products. One common sales promotional activity is to encourage both better quality and greater quantity in the local advertising efforts of resellers through cooperative advertising. 16-159 TRAINING OF DISTRIBUTORS’ SALES FORCES CONCEPTUAL Which of the following is true regarding manufacturer training of distributor sales forces? a. a. The reseller’s sales force is often less sophisticated and knowledgeable about the products than the manufacturer would like. e. strategic promotional implementation cooperative advertising pre-paid publicity distributor kickbacks manufacturer incentive advertising Answer: b Page: 358 Rationale: Resellers often perform the important function of promoting the manufacturer's products at the local level. c. The manufacturer provides manuals to educate the reseller’s sales force. These are programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products. b. The sales force then uses these aids in selling situations. Sylvania provided the storeowner with several high-quality. A manufacturer’s success often rests on the ability of the reseller’s sales force to represent its products. Because the reseller’s sales force is often less sophisticated and knowledgeable about the products than the manufacturer might like. Sylvania also paid 50 percent of the cost of the advertisement. camera-ready sample advertisements. d. Sylvania was using __________ in an attempt to encourage both better advertising quality and greater advertising quantity in the efforts of local resellers of its product. The manufacturer provides brochures to educate the reseller’s sales force. It is in the best interest of the manufacturer to help train the reseller’s sales force. e. Training activities include producing manuals and brochures to educate the reseller’s sales force. d. Answer: e Page: 359 Rationale: One of the many functions the intermediaries perform is customer contact and selling for the producers they represent.

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

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

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

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

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

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

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

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

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

Deals such as buy one get one free could be used. the issue with this is obtaining the store space. 5. A sweepstakes with a savings bond or money toward a college education would encourage the consumer to purchase the product. the consumer would buy additional product and presumably then. In addition.T. however the following would certainly be useful to the cereal manufacturer in increasing sales: 1. 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. or the customer will come to expect the lower price and not buy without a coupon. however. it is apparent there is extensive competition among brands. competitive product is being introduced. which will not come without cost. Cooperative Advertising 3. 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. 6.16-181 SALES PROMOTION APPLICATION When taking a walk down the supermarket aisle containing breakfast cereals. 4. By using a deal. especially if a new. Coupons would stimulate sales in the long run. Assuming your new chocolate frosted cereal targeted at children was allotted shelf space. 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. Page: 355-357 16-182 TRADE-ORIENTED SALES PROMOTIONS What are three types of trade-oriented sales promotions? Answer: 1. 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. This sales promotion should not be overused. Answer: The student might offer many different types of sales promotions. Of course. Allowances and Discounts 2. 3. 2. Training of Distributors’ Sales Forces Page: 358-359 DEFINITION . the manufacturer would obtain lists of current or potential consumers from the entries that could be used in future promotions. lessening risk to the consumer to purchase because of reducing the effective price of the cereal.

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

good. consisting of an announcement regarding changes in the company or the product line. radio station. PSAs are free space or time donated by the media. A recent study found that more than 40 percent of all free mentions of a brand name occur during news programs. or service without direct cost. Page: 359 . The press release. The objective of a news release is to inform a newspaper. or other medium of an idea for a story. Public service announcements are used heavily by not-for-profit organizations. 2.16-185 PUBLICITY TOOLS What are publicity tools? Give three examples. 3. and advance materials regarding the content are sent. The news conference is where representatives of the media are all invited to an informational meeting. DEFINITION Answer: Publicity tools are several methods of obtaining nonpersonal presentation of an organization. These include: 1.

Sign up to vote on this title
UsefulNot useful