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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

sex appeals. d. Such advertisements are using: a. fear appeals. c. Humorous appeals.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. the advertiser must be sure the appeal is strong enough to get the audience's attention and concern but not so strong it will lead them to tune out the message. Sex appeals. e. humorous appeals. Family appeals. the homeowners tell the target audience how disaster can be averted by purchasing and using the advertised product. d. coercive appeals Answer: a Page: 346 Rationale: Fear appeals suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or through a change in behavior. In many of the ads. Fear appeals. c. . e. When using fear appeals. a. family appeals. b. 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.

a. humorous appeal. rhetorical appeals logical appeals humorous appeals sex appeals fear appeals Answer: d Page: 347 Rationale: Text term definition—sex appeals 1055 . 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. __________ suggest to the audience that the product will increase the attractiveness of the user. Answer: e Page: 346 Rationale: Fear appeals suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or through a change in behavior.16-47 FEAR APPEALS APPLICATION An ad for Conesco Insurance asks the question. 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. feel. sex appeal. b. What men find sexy. b. e. “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. b. When using fear appeals. d. or act. c. the advertiser must be sure the appeal is strong enough to get the audience's attention and concern but not so strong it will lead them to tune out the message. The sex appeal of the ad can distract the audience from the product. e. The idea that she will not have the care she needs because she failed to consider the future when she was young is an example of a: a. Unfortunately many commercials that use sex appeals are only successful at gaining the attention of the audience. life cycle appeal. What women find sexy. fear appeal. men don't. Answer: d Page: 347 Rationale: Sex appeals suggest to the audience that the product will increase the attractiveness of the user. and they have little impact on how consumers think. e. d. d. women don't. Sex appeals have no effect on senior citizens. 16-49 SEX APPEALS DEFINITION In advertising. c. c. rhetorical appeal.

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

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

advertising expenditures at $59. The expenditures drop nearly in half for “other”.000 to $15. media convergence. A high-quality 30-second TV commercial typically costs about $268. e. outdoor and internet. d. advertising media. reach and frequency. Answer: e Page: 347 Rationale: Copywriters are responsible for creating the text portion of the messages in advertisements. newspapers radio television Internet Yellow Pages Answer: c Page: 348. CONCEPTUAL Copywriters are responsible for creating the text portion of the messages in advertisements.S.000.000) and as companies have developed global campaigns. e. Figure 16-1 Rationale: As shown in Figure 16-1. 16-56 ADVERTISING MEDIA DEFINITION The means by which the advertising message is communicated to the target audience is through: a. c.000. d. a decoder. b. There are about 2. radio magazines. All of the above statements are true about creating the advertising message.000 to produce. e. 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. . the need to shoot commercials in “exotic” locations has increased. and newspapers at $49. yellow pages.950. As companies have developed global campaigns.050. micromarketing. television garners the largest amount of U.838. b. c. followed by direct mail at $49.000.000 to produce because actors are expensive ($12.000 small commercial production companies in the US. the need to shoot commercials in “exotic” locations has increased. A high-quality 30-second TV commercial typically costs about $268. b.16-55 CREATING THE MESSAGE Which of the following is true about creating the advertising message? a. d. c.

e. a. 10 20 30 40 50 Answer: b Page: 348 Rationale: Rating as defined in the text is the percentage of households in a market that are tuned to a particular TV show or radio station. e.16-58 REACH DEFINITION __________ is defined as the number of different people or households exposed to an advertisement. c. d. d. which is 20 percent. 1059 . a. b. b. e. In this instance the audience is one-fifth of households. b. c. or a rating for the movie of 20. c. what would be the movie's rating? a. Scope Share Reach Span Rating Answer: c Page: 348 Rationale: Key term definition—reach 16-59 RATING DEFINITION __________ is defined as the percentage of households in a market that are tuned to a particular television show or radio station. Gross rating points Reception rate Target audience reach Rating Share Answer: d Page: 348 Rationale: Key term definition—rating 16-60 RATING APPLICATION If a local television station in your area stated it reached one-fifth of the television households in its viewing area with a prime time movie. d.

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

in thousands. 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. d. Thus.00 $4. e.000 individuals or households with the advertising message in a given medium.16-64 COST PER THOUSAND (CPM) CPM with respect to advertising is defined as the: a. $5.00 Answer: d Page: 349 Rationale: In this case the audience can be considered as 500 groups of 1.00. e. d. radio. DEFINITION cost of one medium relative to the cost of other media (e.00 $2. This would give a comparison of the costs (financial effectiveness) for different media. each of which are divided by the multiple of their respective reach and frequency. 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. and $1. Which of the following measures could be used to compare the financial effectiveness of its advertising expenditures for different media? a. c. cost per minute of television or radio time number of consumers exposed to an advertising message.000 households (total 500. b. reach multiplied by frequency divided by the cost of reaching 1000 individuals or households with the advertising message.000 divided by 500 equals $2. the CPM = $2.000). e. b.00 $3. cost of reaching 1000 individuals or households with the advertising message. d.00.g. what would your cost per thousand (CPM) be? a.00 $1. direct mail versus television. reach rating GRPs CPM frequency Answer: d Page: 349 Rationale: Cost per thousand (CPM) refers to the cost of reaching 1. or outdoor). c.000.000 households for a cost of $1. c. b. 1061 .

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

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

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

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

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

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

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

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

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

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

DEFINITION

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

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

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

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

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16-94 PULSE SCHEDULE

DEFINITION

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

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

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

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

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

16-97 EXECUTING THE ADVERTISING PROGRAM

CONCEPTUAL

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

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

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

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

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

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

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

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

16-104 THEATER TESTS Theater tests: a. Answer: c Page: 353 Rationale: Full-service advertising agencies provide a complete range of services including . c. b. copy development. present consumers with a sample of a product and several different advertisements for the product. The ad is then removed. appeal. d. 16-105 FULL-SERVICE AGENCY DEFINITION A(n) ___________ is an advertising agency provides the most complete range of services. consulting firm. c. d. CONCEPTUAL present a panel of consumers with an ad and ask for their reactions concerning the ad's effectiveness. developed the “Softer Side of Sears” campaign for Sears to target middle-income women. in-house agency. e. limited-service agency full spectrum agency full-service agency multi-service agency in-house agency Answer: c Page: 353 Rationale: Key term definition—full-service agency 16-106 FULL-SERVICE AGENCY APPLICATION Young and Rubicam. This agency provided marketing research. Young and Rubicam is an example of a(n): a. Consumers are invited to view new television shows or movies in which test commercials are also shown. a. artwork. media selection. Viewers register their feelings about the advertisements either on hand-held electronic recording devices used during the viewing or on questionnaires afterward. and production. e. use electronic devices during or questionnaires after consumers view a TV advertisement to measure viewer response or feelings. and the respondents are asked to recall as much pertinent information as possible. e. b. and production services for Sears. full-service advertising agency. Inc. image consultant. d. b. c. artwork. media selection. copy development. limited-service advertising agency. present consumers with a hidden ad. They are asked to select the one they think is most effective and explain why. etc. including market research. which they are asked to recall. present a panel of consumers with an ad for a limited period of time. Answer: e Page: 353 Other Location: web Rationale: Theater testing is the most sophisticated form of pretesting.

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

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

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

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

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

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

continuity programs. DEFINITION promotions where charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. 1083 . sweepstakes. and product placement. channel promotions. advertising. d. contests. consumer-oriented sales promotions. and public service announcements advertisements that show actual consumers using the product. manufacturers promotions. Answer: e Page: 354 Other Location: web Rationale: Key term definition—consumer-oriented sales promotions 16-121 CONSUMER-ORIENTED SALES PROMOTIONS DEFINITION Sales promotions. are sales tools used to support a company’s advertising and personal selling. rebates. personal selling. e. sales promotions that supplement advertising and personal selling but are directed to wholesalers. sale items. consumer-oriented sales promotions. direct marketing. While in the store. e. news conferences. Winston also looks for free samples of new products and products he hasn't purchased previously. The coupons. d. d. rebates. The alternative consumer-oriented sales promotion tools include coupons. e. c. premiums. publicity. b. point-of-purchase displays. samples. sales tools used to support advertising and personal selling. public service promotions. indirectly paid presentation of a company or its products. Examples are news releases. or simply consumer promotions. rebates. b. Answer: b Page: 354 Rationale: Key term definition—consumer-oriented sales promotions 16-122 CONSUMER-ORIENTED SALES PROMOTIONS APPLICATION When preparing his grocery shopping list.16-120 CONSUMER-ORIENTED SALES PROMOTIONS Consumer-oriented sales promotions are: a. Winston actively scans the supermarket ads in the local newspaper for coupons. and sale items. and free samples are all examples of: a. are called: a. trade promotions. retailers. sales promotion. which are directed to ultimate consumers and are used to support advertising and personal selling. methods used to get a nonpersonal. b. Answer: d Page: 354 Rationale: Directed to ultimate consumers. c. or distributors. deals. c.

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

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

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

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

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

c. and games to regulate their fairness. d. The approach is very effective. and guarantee that the prizes are actually awarded. and state legislatures have issued rules covering sweepstakes. contests. trade promotion. In this case. 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. premium. Federal laws. deal. 1089 . This is an example of a: a. the Federal Trade Commission. sweepstakes. b. ensure that the chance for winning is represented honestly.16-136 CONTESTS APPLICATION The first week of April. The person who has found the most errors wins a chance to visit the set where the show is taped and have a walk-on role. e. a. contest. e. 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. c. 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. d. 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. 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. b.

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

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

Use a demonstrator hired by the company to prepare the snack in a grocery store and give away the snacks to the shoppers. but the manufacturer believes customers are not buying the product as predicted because they are unfamiliar with calzones. The most popular continuity programs today are the frequent flyer and frequent traveler programs used by airlines. Which method would it most likely employ? a. c. c. The manufacturer is interested in employing a sales promotion technique that will communicate the ease of preparation and encourage customers to try the product. Overall. b.2 billion in sampling programs each year. Provide a premium to build customer goodwill by receiving reduced price merchandise. e. a. . d. b. hotels. Merchandise lining Product enhancement Continuity programs Retail positioning Experiential decoding Answer: c Page: 356 Rationale: Continuity programs are a sales promotion tool used to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate. e. it is hoped they will remember and buy the product. Answer: e Page: 356 Rationale: Sampling is a common consumer sales promotion which offers the product free or at a greatly reduced price. d. A trial size is generally offered that is smaller than the regular package size. Produce a point-of-purchase display that will be placed near a grocer's check-out register.16-142 SAMPLES APPLICATION Michael Angelo's Pepperoni Mini Calzones are easy-to-prepare snacks. 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. Advertise on television showing a mother preparing the snack in less than 60 seconds in the microwave. Use a rebate to encourage customers to purchase the snack and increase customer confidence in the product. sampling puts the product in the consumer’s hands. Often used for new products. If consumers like the sample. companies invest more than $1. 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. c. which sometimes actually holds or displays the product. wants to encourage repeat purchases and create customer loyalty. The most popular continuity programs today are the frequent flyer and frequent traveler programs used by airlines. and which is often located in high-traffic areas near the cash register or the end of an aisle are called: a. b. e. which allows buyers to earn free food after making a certain number of purchases free Extra Juicy Hero samples at local fairs and concerts Answer: d Page: 356 Rationale: Continuity programs are a sales promotion tool used to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate. consumer attention displays. c.16-144 CONTINUITY PROGRAMS APPLICATION A Taste of Greece. hotels. e. d. point-of-purchase displays. special promotional displays. Which sales promotion should its employ? a. d. impulse racks. b. 16-145 POINT-OF-PURCHASE DISPLAYS DEFINITION A sales promotion that takes the form of an advertising sign. Answer: c Page: 357 Rationale: Text term definition—point-of-purchase display 1093 . a restaurant chain that is known for its Extra Juicy Hero sandwich. action racks. and car rental services to reward loyal customers.

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

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

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

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

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

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

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

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

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

Although reach is important. gross rating points (GRPs). Answer: • • • • • Reach is the number of different people or households exposed to an advertisement. Because advertisers try to maximize the number of individuals in the target market exposed to the message. In general. Frequency is the average number of times a person in the target audience is exposed to a message or advertisement. rating. Gross rating points are the reach multiplied by frequency.000 individuals or households with the advertising message in a given medium or the cost of advertising divided by the number of thousands of individuals or households who are exposed. Like 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.16-170 MEDIA SELECTION CONCEPTUAL What are the two conflicting goals advertisers face when choosing advertising media? What is the relationship of reach and frequency to these goals? Answer: The conflicting goals are maximizing exposure and minimizing costs. the advertiser (or media planner) must balance reach and frequency. greater frequency is desirable but because of cost. they must be concerned with reach. advertisers try to maximize reach in their target market at the lowest cost. and cost per thousand (CPM). Page: 348-349 1103 . Define reach. 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. When they want to reach the audience more than once. Rating is the percentage of households in a market that are tuned to a particular TV show or radio station. the advertisers are concerned with frequency. Cost per Thousand is the cost of reaching 1. frequency.

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

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

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

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

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

sometimes suited for several different media. a case allowance. Page: 358-359 DEFINITION 1109 .16-183 TRADE-ORIENTED SALES PROMOTIONS DEFINITION Explain what a merchandise allowance. The finance allowance involves paying retailers for financing costs or financial losses associated with consumer sales promotions. Answer: 1. Page: 358-359 16-184 COOPERATIVE ADVERTISING What is cooperative advertising? Answer: Cooperative advertising is a sales promotional activity to encourage both better quality and greater quantity in the local advertising efforts of resellers. These programs involve a manufacturer paying a percentage of a retailer's local advertising expense for advertising the manufacturer's products. A merchandise allowance is reimbursing a retailer for extra in-store support or special featuring of the brand. The percentage is often 50 percent up to a certain dollar limit. the manufacturer often furnishes the retailer with a selection of different ad executions. 3. 2. The merchandise allowance then consists of a percentage deduction from the list case price ordered during the promotional period. These allowances are usually deducted from the invoice. In addition to paying a part of the advertising space or time. 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. 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. and a finance allowance are.

or other medium of an idea for a story. The objective of a news release is to inform a newspaper. The news conference is where representatives of the media are all invited to an informational meeting. consisting of an announcement regarding changes in the company or the product line. Page: 359 . 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.16-185 PUBLICITY TOOLS What are publicity tools? Give three examples. Public service announcements are used heavily by not-for-profit organizations. 3. radio station. and advance materials regarding the content are sent. PSAs are free space or time donated by the media. 2. These include: 1. The press release. good. DEFINITION Answer: Publicity tools are several methods of obtaining nonpersonal presentation of an organization.

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