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Chapter 12 Communicating Customer Value: Advertising, Sales Promotion, and Public Relations GENERAL CONTENT: Multiple-Choice Questions 1. A company’s total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to pursue its advertising and marketing objectives. This is also called _____. a. direct marketing b. integrated marketing c. promotional mix d. competitive marketing e. target marketing (Answer: c; p. 363; Challenging) 2. _____ is the nation’s largest advertiser. a. Wal-Mart b. Ford Motors c. General Motors d. Procter & Gamble e. Xerox (Answer: d; p. 370; Moderate) 3. Four important decisions are made when developing an advertising program. Which is (are) one of these decisions? a. Setting advertising objectives. b. Setting the advertising budget. c. Developing advertising strategy. d. Selecting a target market e. A, B, and C (Answer: e; p. 370; Easy) 347

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Page 1: Armstrong Mai08 Tif 12

Chapter 12Communicating Customer Value: Advertising, Sales Promotion, and

Public Relations

GENERAL CONTENT: Multiple-Choice Questions

1. A company’s total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to pursue its advertising and marketing objectives. This is also called _____.a. direct marketingb. integrated marketing c. promotional mixd. competitive marketing e. target marketing

(Answer: c; p. 363; Challenging)

2. _____ is the nation’s largest advertiser.a. Wal-Martb. Ford Motorsc. General Motorsd. Procter & Gamblee. Xerox

(Answer: d; p. 370; Moderate)

3. Four important decisions are made when developing an advertising program. Which is (are) one of these decisions?a. Setting advertising objectives.b. Setting the advertising budget.c. Developing advertising strategy.d. Selecting a target markete. A, B, and C

(Answer: e; p. 370; Easy)

4. _____ define(s) the job that advertising must do in the total market program.a. Advertising objectivesb. Advertising budgetc. Advertising strategyd. Advertising campaignse. A and B

(Answer: a; p. 370; Moderate)

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5. _____ can be classified by primary purpose—whether the aim is to inform, persuade, or remind.a. Advertising objectivesb. Advertising budgetsc. Advertising strategiesd. Advertising campaignse. Advertising logos

(Answer: a; p. 371; Moderate)

6. _____ is used heavily when introducing a new product category. The objective is to build primary demand.a. Persuasive advertisingb. Informative advertisingc. Comparative advertisingd. Patronage advertisinge. Institutional advertising

(Answer: b; p. 371; Easy)

7. _____ becomes more important as competition increases. The company’s objective is to build selective demand.a. Persuasive advertisingb. Informative advertisingc. POP promotion advertisingd. Patronage advertisinge. Reminder-oriented advertising

(Answer: a; p. 371; Challenging)

8. Some persuasive advertising has become _____, in which a company directly or indirectly compares its brand with one or more other brands.a. informative advertisingb. reminder advertisingc. comparative advertisingd. POP promotion advertisinge. institutional advertising

(Answer: c; p. 371; Easy)

9. Avis positioned itself against market-leading Hertz by claiming, “We’re number two, so we try harder.” This is an example of _____.a. informative advertisingb. reminder advertisingc. comparative advertisingd. persuasive advertisinge. none of the above

(Answer: c; p. 371; Challenging)

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10. Expensive Coca-Cola television ads primarily are a type of _____.a. informative advertisingb. comparative advertisingc. persuasive advertisingd. reminder advertisinge. institutional advertising

(Answer: d; p. 371; Challenging)

11. After determining its advertising objectives, the company’s next step is to _____.a. set its advertising budgetb. use advertising specialtyc. use cash refund offersd. use couponse. B or C

(Answer: a; p. 371; Moderate)

12. Short-term incentives to encourage the purchase or sale of a product or service are called _____. a. direct marketing b. sales promotionsc. personal selling d. public relations e. publicity

(Answer: b; p. 363; Moderate)

13. Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called _____. a. sales promotionb. direct marketingc. advertising d. personal selling e. none of the above

(Answer: c; p. 363; Moderate)

14. Which of the five major promotion tools includes press releases and special events? a. Sales promotionb. Personal selling c. Direct marketing d. Public relations e. Publicity

(Answer: d; p. 363; Challenging)

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15. _____ includes displays, discounts, coupons, and demonstrations. a. Sales promotion b. Direct marketing c. Affordable method d. Public relations e. Advertising

(Answer: a; p. 363; Easy)

16. The promotion mix is the company’s primary communication activity; the marketing mix must be coordinated for the greatest communication impact. What is not included in the entire marketing mix? a. Product. b. Competitor. c. Price. d. Place. e. Promotion.

(Answer: b; p. 363; Moderate)

17. Mass-media advertising routinely invests _____ of dollars in reaching tens of millions of customers with a single ad. a. billions b. thousands c. millions d. hundredse. tens

(Answer: c; p. 364; Easy)

18. Major factors are changing the face of today’s marketing communications. Why is this happening? a. Mass markets have fragmented; marketers are shifting away from mass

marketing. b. Vast improvements in information technology are speeding the movement toward

segmented marketing. c. Mass-media companies routinely invest millions of dollars in the mass media. d. All of the above. e. None of the above.

(Answer: d; p. 364; Easy)

19. What is the name of an element of advertising strategy?a. Selecting advertising media.b. Sophisticated statistical models.c. Setting advertising objectives.d. B and Ce. None of these.

(Answer: a; p. 372; Moderate)

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20. The creative department first creates good advertisements, and then the media department selects the best media for carrying these advertisements to desired target audiences. This often causes _____.a. sales promotionsb. frictionc. advertising specialtyd. integrated servicee. marketing myopia

(Answer: b; p. 372; Challenging)

21. Absolut Vodka’s ad campaign based on tight media-creative partnership is an example of _____.a. an advertising campaign that starts with a great message idea, followed by the

choice of appropriate mediab. an advertising campaign that begins with a good media opportunity, followed by

advertisements designed to take advantage of that opportunityc. A and Bd. an integrated servicee. none of the above

(Answer: b; p. 373; Challenging)

22. The cost of advertising for most products is especially high during _____.a. peak seasonsb. the summer monthsc. morning news showsd. prime-time programse. late-night programming

(Answer: d; p. 374; Moderate)

23. Television viewers were pretty much a captive audience for advertisers until _____ were invented.a. remote-control unitsb. VCRsc. POP promotionsd. satellite stationse. A, B, and C

(Answer: e; p. 374; Easy)

24. With _____, television viewers can instantly turn off the sound during a commercial or “zip” around the channels to see what else is on.a. remote-control unitsb. VCRsc. advertising specialtyd. POP promotione. none of the above

(Answer: a; p. 374; Easy)

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25. According to one advertising executive, a commercial has to cut through the clutter and seize the viewer in _____, or they’re gone.a. 15 secondsb. 10 secondsc. five secondsd. one to three secondse. less than one second

(Answer: d; p. 375; Moderate)

26. _____ is the first step in creating effective advertising messages—deciding what general message will be communicated to consumers.a. Deciding advertising clutterb. Message strategyc. Media opportunityd. Rewarding consumerse. Selecting the medium

(Answer: b; p. 375; Moderate)

27. Developing an effective message strategy begins with identifying _____ that can be used as advertising appeals.a. sales promotionsb. premium promotionsc. advertising specialtiesd. customer benefitse. emotions

(Answer: d; p. 375; Challenging)

28. Ideally, Modern Tool & Die Company’s advertising message strategy will follow directly from the company’s _____ strategy.a. objectiveb. cash refundc. broader positioningd. patronage rewarde. operational

(Answer: c; p. 375; Moderate)

29. _____ tend to be plain, straightforward outlines of benefits and positioning points that the advertiser wants to stress.a. POP promotionsb. Message strategy statementsc. Creative concept statementsd. Big idea statementse. None of the above

(Answer: b; p. 375; Moderate)

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30. The advertiser must develop a compelling _____that will bring the message strategy to life in a distinctive and memorable way. At this stage, simple message ideas become great ad campaigns.a. big ideab. customer strategyc. customer benefitd. B and Ce. none of the above

(Answer: a; p. 375; Easy)

31. When simple message ideas become great ad campaigns, usually the _____ and the _____ will team up to generate many creative concepts, hoping that one of these concepts will turn out to be the big idea.a. advertising specialist; art directorb. sales promoter; copywriterc. advertising agency; art directord. copywriter; art directore. none of the above

(Answer: d; p. 375; Challenging)

32. The big idea or the creative concept may emerge as a(n) _____, a phrase, or a combination of the two.a. appealb. visualizationc. differentiationd. verbalizatione. none of the above

(Answer: b; p. 375; Easy)

33. Advertising appeals should have three characteristics. Which is not one of these characteristics?a. They should be meaningful.b. They must be believable.c. They all must show lifestyle.d. They should be distinctive.e. A and B

(Answer: c; p. 376; Moderate)

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34. The creative people must find the best style, tone, words, and format for executing the message. _____ is the style that shows one or more typical people using the product in a normal setting.a. Lifestyleb. Fantasyc. Slice of lifed. Personality symbole. Real-world depiction

(Answer: c; p. 378; Moderate)

35. In an ad, the second thing the reader notices is the _____. It must effectively entice the right people to read the block of text.a. copyb. illustrationc. headlined. advertising specialtye. color

(Answer: c; p. 378; Moderate)

36. There are major steps in media selection. Which is not one of these steps?a. Deciding on reach, frequency, and impact.b. Choosing among major media types.c. Selecting specific media vehicles.d. Deciding on format elements.e. None of the above.

(Answer: d; p. 379; Challenging)

37. ______ is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.a. Reachb. Qualitative valuec. Formatd. Premiume. Gross rating point

(Answer: a; p. 379; Easy)

38. The advertiser must decide on the desired media impact—the _____ of a message through a given medium.a. reach b. illustrationc. qualitative valued. copye. gross rating point

(Answer: c; p. 379; Challenging)

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39. A company decides on its promotion budget by using four common methods to set the total budget for advertising. What is not one of these methods? a. The affordable method.b. The percentage-of-sales method.c. The integrated method.d. The competitive-parity method.e. All of the above.

(Answer: c; p. 371; Moderate)

40. Network television advertising is very expensive. The media planner looks both at the total cost of using a medium and at the _____.a. cost per exposureb. cost of premium offersc. cost of the magazine it is usingd. opportunity coste. none of the above

(Answer: a; p. 379; Easy)

41. For a long time, _____ have (has) dominated in the media mix of national advertisers.a. the Internetb. newspapersc. TVd. magazinese. C and D

(Answer: e; p. 379; Moderate)

42. Advertisers are increasingly shifting larger portions of their budgets to media that cost less and target more effectively. All of the following benefit greatly from this shift, except _____.a. outdoor advertisingb. cable televisionc. network televisiond. digital satellite television systemse. A and B

(Answer: c; p. 379; Easy)

43. _____ have (has) undergone resurgence in recent years. Gone are the ugly eyesores of the past; in their place we now see cleverly designed, colorful attention grabbers. They are a fraction of the cost of other major media.a. Newspapersb. Billboardsc. Direct mailingsd. Online adse. None of the above

(Answer: b; p. 382; Easy)

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44. The _____ method is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit. It wrongly views sales as the cause of promotion rather than the result. a. percentage-of-sales b. affordable c. competitive-parity d. objective-and-task e. regression

(Answer: a; p. 372; Moderate)

45. What is the name for specific media within each general media type? Examples are for television: ER and ABC World News Tonight.a. Editorial quality.b. Audience attention.c. Vehicle.d. Advertising specialty.e. Micromedia.

(Answer: c; p. 380; Easy)

46. In selecting media vehicles, the planner must balance media cost measures against several media impact factors. First, the planner should balance costs against the media vehicle’s _____.a. audience qualityb. audience attentionc. editorial qualityd. A or Ce. none of the above

(Answer: a; p. 382; Challenging)

47. The advertiser has to choose the pattern of the ads. _____ means scheduling ads evenly within a given period. _____ means scheduling ads unevenly over a given time period.a. Pulsing; Continuityb. Continuity; Hard hittingc. Continuity; Pulsingd. Pulsing; Hard hittinge. Sequencing; Routing

(Answer: c; p. 382; Moderate)

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48. The advertiser has to choose the pattern of the ads. _____, scheduling ads unevenly, builds awareness that is intended to be carried over to the next advertising period. a. Continuityb. Pulsingc. Hard hittingd. Sequencinge. All of the above

(Answer: b; p. 382; Challenging)

49. The most logical budget-setting method is the _____ method. It deals more with specific promotion goals and accomplishments. a. percentage-of-sales b. affordable c. competitive-parity d. objective-and-task e. exponential smoothing

(Answer: d; p. 372; Easy)

50. Companies are doing less _____ and more _____ as a result of an explosion of more focused media that better match today’s targeting strategies. a. market; media b. media; sales c. narrowcasting; broadcasting d. broadcasting; narrowcasting e. advertising; word-of-mouth

(Answer: d; p. 365; Moderate)

51. The concept of _____ marketing communications suggests that the company must blend the promotion tools carefully into a coordinated _____. a. affordable; promotion mix b. integrated; promotion mix c. percent-of-sales; integration d. A and Ce. none of the above

(Answer: b; p. 366; Easy)

52. One way to measure the _____ effect of advertising is to ______ past sales and past advertising expenditures.a. sales; compareb. promotion; disregardc. copy; disregardd. sales; disregarde. none of the above

(Answer: a; p. 383; Easy)

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53. _____ were started in the mid-to-late 1800s by salespeople and brokers who worked for the media and received a commission for selling advertising space to companies. Eventually, they grew closer to the advertisers than to the media.a. Advertising agenciesb. Large companiesc. Patronage companiesd. POP companiese. Ad unions

(Answer: a; p. 383; Easy)

54. Advertising has some shortcomings. What is not one of them? a. It is impersonal. b. It can be very costly. c. U.S. firms spend up to three times as much on personal selling. d. It carries on one-way communications. e. None of the above.

(Answer: c; p. 368; Challenging)

55. What is not a benefit of standardized global television?a. Lower advertising costs.b. Greater global advertising coordination.c. The fact that demographics differ.d. Consistent worldwide image.e. None of the above.

(Answer: c; p. 384; Easy)

56. Advertising media costs _____ from country to country.a. differ vastlyb. remain about the samec. use POP promotionsd. are impossible to comparee. none of the above

(Answer: a; p. 384; Easy)

57. McDonald’s advertises itself as a family restaurant in Sweden because of _____.a. comparative adsb. competitionc. law restrictionsd. sales promotionse. language translation differences

(Answer: c; p. 384; Challenging)

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58. _____ consists of short-term incentives to encourage the purchase or sale of a product or service. This offers reasons to buy it now.a. A patronage rewardb. A segmented promotionc. Advertisingd. Sales promotione. Publicity

(Answer: d; p. 385; Easy)

59. They are targeted toward final buyers, retailers and wholesalers, business customers, and members of the sales force. They account for 74 percent of all marketing expenditures and their goal is to stimulate earlier or stronger market response. What type of promotion is it?a. Rebates.b. POP promotions.c. Sales promotions.d. Advertising objectives.e. A and B

(Answer: c; p. 385; Moderate)

60. The growing use of sales promotion has resulted in _____.a. advertising specialtyb. promotion clutterc. promotion objectived. all of the abovee. none of the above

(Answer: b; p. 385; Challenging)

61. What is not an objective for trade promotions?a. To get retailers to carry new items and more inventory.b. To get retailers to advertise the product.c. To gain more shelf space.d. To get salespeople to sign up new accounts.e. None of the above.

(Answer: e; p. 386; Challenging)

62. In general, rather than creating only short-term sales or temporary brand switching, _____ should help to reinforce the product’s position and build long-term customer relationships.a. sales promotionsb. promotion clutterc. samplesd. POP promotionse. publicity

(Answer: a; p. 386; Easy)

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63. Out of the main consumer promotion tools, which is (are) the most effective?a. Coupons.b. Sampling.c. Cash refunds.d. Advertising.e. C and D

(Answer: b; p. 387; Moderate)

64. Out of the main consumer promotion tools, which is (are) the most costly?a. Coupons.b. Sampling.c. Cash refunds.d. Advertising.e. Billboards.

(Answer: b; p. 387; Moderate)

65. _____ offer consumers savings off the regular price of a product. The reduced prices are marked by the producer directly on the label or package. They stimulate short-term sales.a. Advertising objectivesb. Patronage rewardsc. Price packsd. Samplese. None of the above

(Answer: c; p. 388; Easy)

66. _____ are goods offered either free or at low cost as an incentive to buy a product.a. Rebatesb. Premiumsc. Price packsd. Cash refund offerse. Gimmicks

(Answer: b; p. 388; Easy)

67. In a recent study, 71 percent of all consumers surveyed were either carrying or wearing a(n) _____. These have the advertiser’s name on them.a. advertising objectiveb. couponc. advertising specialtyd. price packe. badge

(Answer: c; p. 388; Moderate)

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68. Manufacturers direct more sales promotion dollars toward _____ than to _____.a. consumers; retailersb. customers; wholesalersc. retailers and wholesalers; consumersd. mature consumers; teenagerse. retailers; wholesalers

(Answer: c; p. 388; Challenging)

69. Manufacturers may offer a(n) _____ in return for the retailer’s agreement to feature the manufacturer’s products in some way.a. POP promotionb. allowancec. incentive promotiond. price packe. premium

(Answer: b; p. 389; Moderate)

70. Business promotion tools are used for all of the following except to _____.a. generate business leadsb. stimulate purchasesc. reward customersd. generate more manufacturerse. locate customers

(Answer: d; p. 389; Moderate)

71. _____ is (are) the company’s most expensive promotion tool.a. Advertising b. Personal selling c. Mass mediad. Public relations e. Publicity

(Answer: b; p. 368; Easy)

72. Sales promotion includes a wide assortment of tools. Which is not one of these tools? a. Contests.b. Premiums.c. Telephone surveys.d. Coupons.e. None of the above.

(Answer: c; p. 368; Easy)

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73. Lobbying, or building and maintaining relations with legislators and government officials to influence legislation and regulation, is part of _____.a. outdated business ethicsb. press relationsc. press agenciesd. public relationse. none of the above

(Answer: d; p. 390; Challenging)

74. Which function(s) may be performed by a public relations department? a. Product publicity.b. Lobbying.c. Public affairs.d. A and Be. All of the above.

(Answer: e; p. 390; Easy)

75. _____ use several tools. Some of these are: the news, speeches, and special events.a. Advertising agenciesb. Advertising specialistsc. Public relations professionalsd. Computer programmers e. None of the above

(Answer: c; p. 392; Easy)

True/False

76. A specific communication task to be accomplished with a specific target audience during a specific period of time is called an advertising objective.

(True; p. 371; Easy)

77. Coca-Cola television ads primarily are comparison advertising.(False; p. 371; Challenging)

78. In advertising strategy, the creative department first created good advertisements, and then the media department selected the best media. This system always works very well.

(False; p. 372; Moderate)

79. Television advertisers regularly pay $2 million or more for 30 seconds of advertising during a popular prime-time program.

(False; p. 374; Moderate)

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80. According to an ad executive profiled in the textbook, a commercial has to cut through the clutter and seize the viewers in one to three seconds, or they’re gone.

(True; p. 374; Easy)

81. The three characteristics for advertising appeals are: meaningful, believable, and distinctive.

(True; p. 376; Moderate)

82. Slice of life, lifestyle, and personality symbol are all parts of public relations.(False; p. 378; Moderate)

83. Technical expertise, scientific evidence, and testimonial evidence are all examples of the execution styles that the creative people use in advertising products.

(True; p. 378; Challenging)

84. The copy is the main block of text in an ad.(True; p. 378; Easy)

85. Reach is a measure of how many times the average person in the target market is exposed to the message.

(False; p. 379; Moderate)

86. The media planner has to know the reach, frequency, and impact of each ad. (True; p. 379; Moderate)

87. Advertisers look for media that showcase the product effectively. Fashions are best advertised on television, and automobile performance is best in color magazines.

(False; p. 379; Challenging)

88. Pulsing means scheduling ads evenly over a given period of time.(False; p. 382; Easy)

89. A company’s total marketing communications mix is also called its promotion mix. (True; p. 363; Moderate)

90. Coca-Cola has succeeded in its consistent worldwide image, advertising young sexy men and scantily dressed women drinking the product.

(False; p. 383; Moderate)

91. Sales promotion consists of short-term incentives to encourage purchases or sales of a product or service.

(True; p. 363; Easy)

92. An e-mail from Amazon.com that offers free shipping on your next purchase of more than $35 is an example of sales promotion.

(True; p. 385; Moderate)

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93. The most effective consumer promotion tool is sampling.(True; p. 386; Easy)

94. The most expensive consumer promotion tool is sampling.(True; p. 386; Moderate)

95. Toro ran a clever preseason promotion on some of its snow blower models, offering money back if the snowfall in the buyer’s market area turned out to be below average. This is an example of price packs.

(False; p. 388; Moderate)

96. Quaker Oats inserted $5 million worth of gold and silver coins in Ken-L Ration dog food packages. This is an example of patronage rewards.

(False; p. 388; Challenging)

97. POP promotions include displays and demonstrations that take place at the point of purchase or sale.

(True; p. 388; Easy)

98. Manufacturers direct more sales promotion dollars toward consumers than toward retailers.

(False; p. 388; Challenging)

99. Manufacturers may offer an allowance in return for the retailer’s agreement to feature the manufacturer’s products in some way.

(True; p. 389; Easy)

100. Major factors are changing the face of today’s marketing communications. Mass markets have fragmented; thus, marketers are shifting away from mass marketing.

(True; p. 364; Easy)

101. Vast improvements in information technology are speeding the movement toward segmented marketing.

(True; p. 364; Moderate)

102. If the pull strategy is effective, consumers will then demand the product from channel members, who will in turn demand it from producers.

(True; p. 369; Moderate)

103. Scientific evidence is the executional style used when Subway advertises six subs for under six fat grams.

(True; p. 378; Moderate)

104. Informative ads are used primarily in the growth stage of the product life cycle.(False; p. 371; Easy)

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105. Percentage-of-sales method wrongly views sales as the cause of promotion rather than the result.

(True; p. 372; Moderate)

Essay

106. Marketing management must make four important decisions when developing an advertising program. Name and describe these four decisions.

1. Set advertising objectives, which can be classified by primary purpose: whether the aim is to inform, persuade, or remind.

2. Set the advertising budget: often depends on its stage in the product life cycle.3. Develop advertising strategy: consists of either creating advertising message or

selecting advertising media.4. Evaluate advertising campaigns: monitoring how well the advertising worked.

(p. 370; Challenging)

107. What are the three characteristics of advertising appeals?

a. Meaningful: pointing out benefits that make the product more desirable or interesting to consumers.

b. Believable: consumers must believe that the product or service will deliver the promised benefits.

c. Distinctive: they should tell how the product is better than the competing brands.(p. 376; Challenging)

108. The creative people must find the best way to execute a message. Name and describe three of these styles of execution.

a. Slice of life: shows one or more typical people using the product in a normal setting.

b. Lifestyle: shows how a product fits in with a particular lifestyle.c. Fantasy: creates a fantasy around the product or its use.

(p. 378; Moderate)

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109. Name and describe the four major steps in media selection.

1. Decide on reach, frequency, and impact. Reach is a measure of the percentage of people that are exposed to the advertisement; frequency is the measure of how many times the average person is exposed to the message; impact is how people feel about the advertisement.

2. Choose among major media types: television, newspapers, magazines, and billboards.

3. Select specific media vehicles, such as choosing TV shows that the target would watch so he or she will see the commercial.

4. Decide on media timing. Figure out how to schedule the advertising over the course of a year.

(p. 379; Challenging)

110. Marketers can choose from two basic promotion mix strategies—push promotion or pull promotion. Describe these two strategies.

Using the pull strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product; whereas, if the pull strategy is effective, consumers will then demand the product from channel members who will in turn demand it from producers.

(p. 369; Moderate)

111. Tell how advertising agencies have changed over the years.

In the mid-to-late 1800s, salespeople and brokers worked for the media and received a commission for selling advertising space to companies. Eventually, they formed agencies and grew closer to the advertisers than to the media. They are trying to get away from commission sales.

(p. 383; Moderate)

112. Describe what a price pack is and how it works.

A price pack offers consumers savings off the regular price of a product. The reduced prices are marked by the producer directly on the label or package. It stimulates short-term sales.

(p. 388; Easy)

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113. Describe public relations and its three functions.

Public relations build good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Functions include:1. Product publicity: publicizing specific products2. Public affairs: building and maintaining national or local community relations3. Lobbying: building and maintaining relations with legislators and government

officials to influence legislation and regulation(p. 390; Challenging)

114. Explain how sales promotion campaigns are developed and implemented.

Sales promotion campaigns call for setting sales promotions objectives, selecting tools, developing and implementing the sales promotion program by using trade promotion tools and business promotion tools, as well as deciding on such things as the size of the incentive, the conditions for participation, how to promote and distribute the promotion package, and the length of the promotion. After this process is completed, the company evaluates the results.

(p. 386; Challenging)

115. A company’s total marketing communications mix—also called its promotion mix—consists of the specific blend of five different parts. Name and define these parts.

Advertising is any paid for or nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Sales promotion includes short-term incentives to encourage the purchase or sale of a product or service. Public relations includes building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stores, or events. Personal selling includes a personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Direct marketing includes direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the uses of telephone, mail, fax, e-mail, the Internet, and other tolls to communicate directly with specific customers.

(p. 363; Challenging)

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APPLICATION CONTENT: Multiple-Choice Questions

116. The creative people must find the best style, tone, words, and format for executing the message. Here is an example of the execution style of _____. An ad for Mongoose mountain bikes shows a serious biker traversing remote and rugged but beautiful terrain and states, “There are places that are so awesome and so killer that you’d like to tell the whole world about them. But please, don’t.”a. slice of lifeb. lifestylec. fantasyd. scientific evidencee. none of the above

(Answer: b; p. 378; Moderate)

117. The creative people use this execution style when their ads are built around dream themes.a. Mood or image.b. Musical.c. Fantasy.d. Slice of life.e. Scientific evidence.

(Answer: c; p. 378; Easy)

118. When Taco Bell uses the small dog to represent their product, the creative people are using what kind of execution style?a. Mood or image.b. Fantasy.c. Personality symbol.d. Technical expertise.e. Musical.

(Answer: c; p. 378; Easy)

119. When Maxwell House shows one of its buyers carefully selecting coffee beans, the creative people are using what kind of execution style?a. Mood or image.b. Fantasy.c. Personality symbol.d. Musical.e. Technical expertise.

(Answer: e; p. 378; Moderate)

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120. Apple recently ran ads featuring real people who had recently switched from Microsoft Windows-based PCs to Macs. When the companies use people, actors, or sports celebrities as product endorsers, the creative people are using what kind of execution style?a. Personality symbol.b. Testimonial evidence.c. Scientific evidence.d. Lifestyle.e. Fantasy.

(Answer: b; p. 378; Moderate)

121. Procter & Gamble always uses _____. They usually avoid _____that might take attention away from the message.a. humor; negative toneb. cash refund offers; sales promotionc. positive tone; humord. sales promotion; cash refund offerse. cash refund offers; humor

(Answer: c; p. 378; Challenging)

122. Mike’s Bike Shop’s readers will notice this first in its new advertising.a. Headline.b. Illustration.c. Copy.d. Subheadlines.e. None of the above.

(Answer: b; p. 378; Moderate)

123. Here is an example of how the _____method operates. The company starts with total revenues, deducts operating expenses and capital outlays, and then devotes some portion of the remaining funds to advertising. a. percentage-of-salesb. affordable c. competitive-parityd. objective-and-taske. moving-average

(Answer: b; p. 372; Easy)

124. An e-mail from Amazon.com offers free shipping on your next purchase of more than $35. This is an example of _____.a. sales promotionb. POP promotionc. rebated. advertising objectivee. a premium

(Answer: a; p. 385; Moderate)

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125. Toro ran a clever preseason promotion on some of its snow blower models, offering some money back if the snowfall in the buyer’s market area turned out to be below average. This is an example of a(n) _____.a. rebateb. advertising specialtyc. price packd. premium packe. none of the above

(Answer: a; p. 388; Easy)

126. An example of a(n) _____ is when airlines offer frequent plans, awarding points for miles traveled that can be turned in for free airline trips.a. advertising objectiveb. POP rewardc. premium rewardd. patronage rewarde. publicity

(Answer: d; p. 388; Easy)

127. An example of a(n) _____ is a five-foot-high cardboard display of Cap’n Crunch next to Cap’n Crunch cereal boxes.a. patronage promotionb. POP promotionc. POP packd. advertising promotione. premium

(Answer: b; p. 388; Challenging)

128. A product in the maturity stage may require _____ advertising.a. informativeb. comparativec. persuasived. remindere. cooperative

(Answer: d; p. 371; Easy)

129. Marketing communicators must do all of the following except _____. a. identify the target audience b. send products to the customerc. determine the communication objectivesd. collect audience responses e. none of the above

(Answer: b; p. 366; Moderate)

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130. Which of the following is not a personality symbol?a. Mickey Mouse.b. The Jolly Green Giant.c. The Energizer bunny.d. Snap, Crackle, and Pop.e. None of the above.

(Answer: e; p. 378; Easy)

131. “Buy it now” refers to _____. a. personal selling b. advertising c. nonpersonal communication channeld. sales promotione. publicity

(Answer: d; p. 368; Challenging)

132. Which of the following is not a sales promotion?a. Coupons.b. TV commercials.c. Contests.d. Cents-off deals.e. Premiums.

(Answer: b; p. 368; Moderate)

133. Whether you place most promotional emphasis on advertising or whether you place most promotional emphasis on sales promotion may depend on _____.a. the nature of your productb. the nature of your industryc. money availabled. competitors’ promotional effortse. all of the above

(Answer: e; p. 367; Moderate)

134. If you are attempting to create primary demand toward your product, you will use _____ ads.a. informativeb. persuasivec. reminderd. developmentale. cooperative

(Answer: a; p. 371; Moderate)

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135. You want to increase reach. You could _____.a. aim your ads at different demographic groupsb. air your ad at different times of the dayc. attack your competitors’ ad messagesd. none of the above e. A and B

(Answer: e; p. 379; Challenging)

Short Answer

136. What are the three primary purposes of advertising objectives?

Advertising objectives can be classified by primary purpose—whether the aim is to inform, persuade, or remind.

(p. 371; Easy)

137. When does a marketer use informative ads?

Informative ads are used heavily when introducing new products or new product categories.

(p. 371; Easy)

138. When does a marketer use a comparative ad?

Comparative ads are a type of persuasive ads in which a company directly or indirectly compares its brand with one or more other brands.

(p. 371; Easy)

139. When does a marketer use reminder ads?

Reminder ads are important for mature products; they keep consumers thinking about the product.

(p. 371; Easy)

140. Explain a push strategy.

A push strategy involves pushing the product through distribution channels to final consumers; the producer directs marketing activities toward channel members to induce them to carry the product and to promote it to final consumers.

(p. 369; Moderate)

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141. Explain how a marketer may create a message strategy when marketing a product toward children.

When directing marketing efforts toward children, the marketer will want to create a message that is most appealing to children. The market will likely relate to specific situations in which children usually find themselves or the marketer may use a personality symbol with which the children can relate.

(p. 375; Challenging)

142. Give a hypothetical example of a slice of life executional style.

Possible examples are endless. Slice of life examples show one or more typical people using a product in a normal setting.

(p. 378; Challenging)

143. How does a personality symbol impact a brand?

A personality symbol is a character that represents the product and with which the consumer can relate.

(p. 378; Moderate)

144. Give a hypothetical example of testimonial evidence.

Possible examples are endless. Testimonial evidence features a highly believable or likable source endorsing the product.

(p. 378; Moderate)

145. What does “reach” tell a marketer?

Reach is a measurement of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.

(p. 379; Moderate)

146. What does “frequency” tell a marketer?

Frequency is a measure of how many times the average person in the target market is exposed to the advertising message.

(p. 379; Moderate)

147. Explain how different types of messages may require different media.

For example, a message announcing a major sale tomorrow will require radio or newspapers; whereas, a message with a lot of technical data might require magazines, direct mailings, or an online ad.

(p. 379; Challenging)

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148. Explain a pull strategy.

With a pull strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product; if this strategy is effective, consumers will then demand the product from channel members, who will in turn demand it from producers.

(p. 369; Challenging)

149. Explain how seasonality impacts media timing.

Seasonality will impact how often an advertisement is aired or printed. Usually during the Christmas season, ads from numerous marketers of various products are seen more frequently. During other seasons, the pattern of ads (frequency) will change greatly.

(p. 382; Challenging)

150. Explain why an ad may have to be altered from one country to the next.

Differences in perceptions of time, color, and imagery will impact how effective or acceptable an advertisement will be in other countries. In addition, changes in the use of language may be required to avoid being offensive to the foreign culture.

(p. 384; Challenging)

151. Give three examples of sales promotions.

Sales promotions may include contests, gimmicks, games, fee samples, coupons or end-of-aisle displays; sales promotions include any tactic to attract the consumer’s attention.

(p. 385; Easy)

152. How can an advertiser using sales promotion reduce promotion clutter?

The market can, for example, offer larger coupon values or create more dramatic point-of-purchase displays.

(p. 385; Moderate)

153. What type of sales promotion may benefit a political candidate the most?

Political candidates benefit from various sales promotions in various ways. Pencils or pens with the candidate’s name and office being sought are useful. In addition, T-shirts with the candidate’s name and/or photograph can be effective when campaigning in parades. Name recognition is critical for any political candidate.

(p. 386; Challenging)

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154. How can a marketer enhance the credibility behind contests and sweepstakes?

First of all, those consumers playing these games and entering these sweepstakes like to know when there is an actual winner and how the winner was selected. In addition, consumers appreciate seeing the games’ rules in print prior to entering the contest.

(p. 388; Moderate)

155. Explain why the message might be uncontrollable in public relations.

Although companies work to build good relations with their publics, the publics’ perceptions of the marketer cannot be predicted. Though a marketer may work to positively improve relations with an external group, that group may perceive the marketer as being pushy, for example.

(p. 390; Challenging)

Scenario

Most of the clientele at Second Avenue had surfaced through word-of-mouth communication. This small retailer of quality second-hand children’s clothing thrives on the sale of a vast inventory of children’s clothing placed there on consignment. “Because small children growth so quickly,” Second Avenue’s owner commented, “they often outgrow many of their clothes before they’ve hardly been worn!” Second Avenue provides a way for people to sell their children’s clothing, earn a few dollars, and buy the next larger size. “We’re extremely picky about the condition of the clothing we stock,” the owner stated, “but we sell most items at a 60 percent discount.”

156. Though Second Avenue has thrived merely through word of mouth, how could the business benefit from advertising?

With an ad campaign, Second Avenue could become better known in a larger geographic area; in addition, the products offered and customer benefits could be positioned or repositioned in consumers’ minds.

(p. 370; Easy)

157. What appeals might this marketer use? Explain.

The appeals must point out the cost-saving benefits of shopping at Second Avenue while focusing on the comparable quality of brand-new clothing.

(p. 376; Moderate)

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158. How could this marketer use the slice of life executional style in an ad?

The marketer could show “typical” people with children quickly outgrowing their clothing and the satisfaction from finding cost savings—and a place to sell outgrown clothes—at Second Avenue.

(p. 378; Moderate)

159. Would a personality symbol impact Second Avenue’s image? How?

Children often relate to personality symbols. Though the benefits of Second Avenue are geared toward parents’ pocketbooks, a personality symbol may attract and positively influence children—who represent a strong force in the target audience.

(p. 378; Challenging)

160. What media options might best benefit Second Avenue’s promotional efforts? Explain.

Periodic advertising in a local/regional newspaper would provide large coverage at a relatively low cost. TV would, perhaps, provide too much geographic coverage or, at the least, be too expensive. A few radio spots may be profitable, especially during times of seasonal inventory changes at Second Avenue.

(p. 379; Challenging)

161. Hypothetically, if the second-hand clothing concept were to be implemented in England or France, for example, in what way(s) might clientele perceptions be different?

Consumers abroad may or may not accept the “idea” of purchasing second-hand clothing; furthermore, some cultures may not provide consignment options in their marketplaces.

(p. 384; Challenging)

162. What sales promotion tools might benefit Second Avenue?

A number of examples exist. Coupons for a percentage off or something similar to Kmart’s blue light special might work. Company names on pens and direct-mail flyers may also spark interest.

(p. 387; Moderate)

163. What types of premiums might Second Avenue offer?

Second Avenue may offer toys with the purchase of specific children’s clothes or a package of diapers with a minimum purchase of $100 in merchandise, for example.

(p. 388; Moderate)

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164. Give an example of a patronage reward that may benefit Second Avenue.

A “buyer’s card” may attract consumers; such a card would be punched for every $10 spent and a discount, for example, could be provided after 10 punches.

(p. 388; Challenging)

165. What roles does public relations play at Second Avenue?

Relationships with customers are especially critical, especially considering that many of these people comprise Second Avenue’s customer base and supplier base. Press relations are also important for a small business.

(p. 390; Moderate)

377