Marketing Management, 14e (Kotler/Keller) Chapter 18 Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations 1) An is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time A) advertising medium B) advertising objective C) advertising channel D) advertising budget E) advertising copy Answer: B Page Ref: 504 Objective: Difficulty: Easy 2) aims to create brand awareness and knowledge of new products or new features of existing products A) Informative advertising B) Corporate advertising C) Reinforcement advertising D) Persuasive advertising E) Reminder advertising Answer: A Page Ref: 504 Objective: Difficulty: Easy 3) Which of the following is an example of informational advertising? A) Volkswagen famed "Drivers Wanted" campaign B) Pringles campaign with the tagline "Once You Pop, the Fun Don't Stop" C) KFC's fast-food range that it claims to be "Finger Lickin' Good" D) The California Milk Processor Board's famous "Got Milk" campaign E) Excedrin's ads that claim it stops the toughest headache Answer: E Page Ref: 504 Objective: AACSB: Analytic skills Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 4) aims to create liking, preference, conviction, and purchase of a product or service A) Corporate advertising B) Reminder advertising C) Persuasive advertising D) Reinforcement advertising E) Informational advertising Answer: C Page Ref: 505 Objective: Difficulty: Easy 5) Comparative advertising works best when A) it elicits cognitive and behavioral motivations simultaneously B) the firm is trying to minimize brand dilution C) consumers are processing advertising in a detailed, analytical mode D) it elicits affective motivation, followed by cognitive motivation E) the advertising message uses negative fear appeals Answer: C Page Ref: 505 Objective: Difficulty: Moderate 6) aims to stimulate repeat purchase of products and services A) Reinforcement advertising B) Comparative advertising C) Persuasive advertising D) Informational advertising E) Reminder advertising Answer: E Page Ref: 505 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 7) The "Got Milk" campaign was intended to boost the sagging milk consumption among Californians in the 1990s The campaign ads highlighted the inconvenience of running out of milk when intended to be used with certain foods, such as cookies or muffins, advising consumers to stock up on milk to avoid such inconveniences The "Got Milk?" campaign an example of A) informational advertising B) reminder advertising C) institutional advertising D) comparative advertising E) reinforcement advertising Answer: B Page Ref: 505 Objective: AACSB: Analytic skills Difficulty: Moderate 8) aims to convince current purchasers that they made the right choice A) Persuasive advertising B) Informational advertising C) Reinforcement advertising D) Reminder advertising E) Comparative advertising Answer: C Page Ref: 505 Objective: Difficulty: Easy 9) Which of the following conditions necessitates that the objective of advertising should be to stimulate more usage of a product? A) the advertised product belongs to a nascent product category B) the company is not the market leader C) the advertised brand is superior to the market leader D) the product class is mature E) brand usage for the product is very high Answer: D Page Ref: 505 Objective: Difficulty: Moderate Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 10) Which of the following statements is true of the factors that affect an advertising budget? A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share B) Brands in less-differentiated or commodity-like product classes require very less advertising to establish a unique image C) New products typically merit large advertising budgets to build awareness and to gain consumer trial D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales Answer: C Page Ref: 505 Objective: Difficulty: Moderate 11) Marketers often cut the cost of advertising dramatically by using consumers as their creative team This strategy is known as A) disintermediation B) public relations C) vertical integration D) reintermediation E) crowdsourcing Answer: E Page Ref: 50 Objective: Difficulty: Easy 12) Which of the following is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure? A) television B) radio C) newspapers D) magazines E) billboards Answer: A Page Ref: 507 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 13) TV advertising is considered to be particularly advantageous because A) the low volume of nonprogramming material on television makes it difficult for consumers to ignore or forget ads B) it provides detailed product information and effectively communicates user and usage imagery C) it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits D) TV channels are very targeted, ads are relatively inexpensive to produce and place, and short closings allow for quick response E) it lets companies achieve a balance between broad and localized market coverage Answer: C Page Ref: 507 Objective: Difficulty: Moderate 14) According to researchers, which of the following is the correct order in which content of print advertisements matter? A) picture-headline-copy B) copy-picture-headline C) headline-copy-picture D) picture-copy-headline E) copy-headline-picture Answer: A Page Ref: 508 Objective: Difficulty: Easy 15) Which of the following is the main advantage of radio as an advertising medium? A) low competition B) more attention than television C) longer duration of ad exposure D) flexibility E) standardized rate structures Answer: D Page Ref: 509 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 16) refers to simple exaggerations in advertisements that are not meant to be believed and that are permitted by law A) Puffery B) Boosterism C) Astroturfing D) Doublethink E) Subliminal advertising Answer: A Page Ref: 510 Objective: Difficulty: Easy 17) Which of the following organizations uses top-notch industry talent to produce and distribute public service announcements for nonprofits and government agencies? A) the Association of National Advertisers B) the International Advertising Association C) the Ad Council D) the National Advertising Review Council E) the Advertising Research Foundation Answer: C Page Ref: 510 Objective: Difficulty: Easy 18) is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience A) Media scheduling B) Content analysis C) Media selection D) Communication design E) Copy testing Answer: C Page Ref: 511 Objective: Difficulty: Moderate 19) The number of different persons or households exposed to a particular media schedule at least once during a specified time period is known as A) range B) impact C) intensity D) reach E) frequency Answer: D Page Ref: 511 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 20) The number of times within a specified time period that an average person or household is exposed to an advertising message is known as A) impact B) frequency C) amplitude D) reach E) depth Answer: B Page Ref: 511 Objective: Difficulty: Easy 21) The qualitative value of an exposure through a given medium is known as A) frequency B) reach C) amplitude D) impact E) range Answer: D Page Ref: 511 Objective: Difficulty: Easy 22) Which of the following equations accurately describes the total number of exposures (E) of an advertising message through a given medium? A) E = reach * frequency B) E = (reach * frequency) / impact C) E = reach * frequency * impact D) E = (reach + frequency) / impact E) E = frequency / reach Answer: A Page Ref: 511 Objective: Difficulty: Moderate 23) The weighted number of exposures (WE) of an advertising message over a given medium is given by A) WE = reach * frequency B) WE = (reach * frequency) / impact C) WE = reach * frequency * impact D) WE = (reach + frequency) / impact E) WE = frequency / reach Answer: C Page Ref: 511 Objective: Difficulty: Moderate Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 24) Under which of the following conditions is the reach of media the most important factor in media selection? A) when introducing frequently purchased brands B) when going into a defined target market C) when launching extensions of well-known brands D) when there are strong competitors to a brand E) when there is high consumer resistance to the product Answer: C Page Ref: 511 Objective: Difficulty: Moderate 25) Under which of the following conditions is the frequency the most important factor in media selection? A) when introducing flanker brands B) when launching infrequently purchased brands C) when going into undefined target markets D) when there is high consumer resistance to the product E) when there is modest competition to the brand in the market Answer: D Page Ref: 511 Objective: Difficulty: Moderate 26) What is the gross rating points (GRP) for a media schedule that reaches 60 percent of homes with an average exposure frequency of and impact of 1.5? A) 15 B) 160 C) 360 D) 240 E) 10 Answer: D Page Ref: 511 Objective: AACSB: Analytic skills Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 27) What is the weighted number of exposures of a media schedule that reaches 80 percent of the target audience, with an exposure frequency of and impact value of 2? A) 320 B) 10 C) 640 D) 160 E) 240 Answer: C Page Ref: 511 Objective: AACSB: Analytic skills Difficulty: Easy 28) Which of the following is an advantage of using newspapers as an advertising medium? A) long lifespan B) high reproduction quality C) huge "pass-along" audience D) high level of targeting E) good local market coverage Answer: E Page Ref: 513 Objective: Difficulty: Moderate 29) Which of the following is a disadvantage of using newspapers as an advertising medium? A) lack of flexibility B) high costs of advertisement space C) poor reproduction quality D) low believability E) absence of local market coverage Answer: C Page Ref: 513 Objective: Difficulty: Moderate 30) Which of the following is an advantage of using television as an advertising medium? A) high attention and reach B) low absolute cost C) absence of clutter D) long duration of ad exposure E) high audience selectivity Answer: A Page Ref: 513 Objective: Difficulty: Moderate Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 31) Which of the following is a disadvantage of using television as an advertising medium? A) high absolute cost B) low audience attention C) lack of reach among audience D) high audience selectivity E) absence of clutter Answer: A Page Ref: 513 Objective: Difficulty: Moderate 32) Which of the following is an advantage of using radio as an advertising medium? A) higher attention than television B) standardized rate structures C) long duration of ad exposure D) high quality reproduction E) high geographic selectivity Answer: E Page Ref: 513 Objective: Difficulty: Moderate 33) Which of the following is a disadvantage of using direct mail as an advertising medium? A) low audience selectivity B) lack of flexibility C) high competition within same medium D) relatively high cost E) lack of personalization of advertising message Answer: D Page Ref: 513 Objective: Difficulty: Easy 34) Which of the following is an advantage of using magazines as an advertising medium? A) high-quality reproduction B) short ad purchase lead time C) high efficiency in circulation D) no ad competition in same medium E) low cost of advertising Answer: A Page Ref: 513 Objective: Difficulty: Moderate 10 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 90) refers to the task of securing editorial space—as opposed to paid space—in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization A) Advertising B) Media planning C) Communication design D) Publicity E) Copy testing Answer: D Page Ref: 527 Objective: Difficulty: Easy 91) Which of the following is a medium of visual identity for a company? A) annual reports B) dress codes C) press releases D) seminars E) trade shows Answer: B Page Ref: 529 Objective: Difficulty: Easy 92) The easiest measure of marketing public relations effectiveness is A) the resultant effect on the company's sales figures B) the effect it has on its market capitalization C) the number of exposures carried by the media D) the changes observed in consumers' brand knowledge E) the impact it has on the company's market share Answer: C Page Ref: 529 Objective: Difficulty: Easy 93) An advertising objective is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time Answer: TRUE Page Ref: 504 Objective: Difficulty: Easy 28 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 94) Persuasive advertising aims to create brand awareness and knowledge of new products or new features of existing products Answer: FALSE Page Ref: 505 Objective: Difficulty: Easy 95) Reinforcement advertising aims to stimulate repeat purchase of products and services Answer: FALSE Page Ref: 505 Objective: Difficulty: Easy 96) If the product class is mature, then the advertising objective is to convince the market of the brand's superiority Answer: FALSE Page Ref: 505 Objective: Difficulty: Easy 97) Established brands usually are supported with lower advertising budgets, measured as a ratio to sales Answer: TRUE Page Ref: 505 Objective: Difficulty: Easy 98) Brands in highly-differentiated product classes require heavy advertising to establish a unique image Answer: FALSE Page Ref: 505 Objective: Difficulty: Easy 99) Print advertising (newspapers and magazines) is generally acknowledged as the most powerful advertising medium Answer: FALSE Page Ref: 507 Objective: Difficulty: Easy 100) Although newspapers are timely and pervasive, magazines are typically more effective at building user and usage imagery Answer: TRUE Page Ref: 508 Objective: Difficulty: Easy 29 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 101) Researchers studying print advertisements report that the picture, headline, and copy matter in that order Answer: TRUE Page Ref: 508 Objective: Difficulty: Easy 102) Puffery refers to simple exaggerations in advertisements that are not meant to be believed and are considered illegal Answer: FALSE Page Ref: 510 Objective: Difficulty: Moderate 103) Reach of an advertising message is most important when launching new products, flanker brands, extensions of well-known brands, or infrequently purchased brands Answer: TRUE Page Ref: 511 Objective: Difficulty: Easy 104) The higher the forgetting rate associated with a brand, product category, or message, the lower the warranted level of repetition Answer: FALSE Page Ref: 511 Objective: Difficulty: Easy 105) The rationale behind place advertising is that marketers are better off reaching people where they work, play, and shop Answer: TRUE Page Ref: 512 Objective: Difficulty: Easy 106) Outdoor advertising is more effective at creating new brand associations than enhancing brand awareness or brand image Answer: FALSE Page Ref: 515 Objective: Difficulty: Moderate 30 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 107) The macroscheduling decision calls for allocating advertising expenditures within a short period to obtain maximum impact Answer: FALSE Page Ref: 517 Objective: Difficulty: Moderate 108) The forgetting rate is the rate at which the buyer forgets the brand; the higher the forgetting rate, the more continuous the advertising should be Answer: TRUE Page Ref: 517 Objective: Difficulty: Easy 109) Concentrated advertising is well suited for products with one selling season or related holiday Answer: TRUE Page Ref: 517 Objective: Difficulty: Easy 110) An advertiser makes "local buys" when it buys TV time in just a few markets or in regional editions of magazines Answer: FALSE Page Ref: 518 Objective: Difficulty: Easy 111) Sales promotion consists of a collection of incentive tools designed to mainly stimulate long-term brand associations of products or services with consumers or the trade Answer: FALSE Page Ref: 519 Objective: Difficulty: Easy 112) Sales promotions often attract brand switchers, who are primarily looking for low price, good value, or premiums Answer: TRUE Page Ref: 519 Objective: Difficulty: Easy 31 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 113) Sales promotions in markets of high brand similarity can produce a high sales response in the short run but little permanent gain in brand preference over the longer term Answer: TRUE Page Ref: 519 Objective: Difficulty: Easy 114) Incessant price reductions, coupons, deals, and premiums can devalue a product in buyers' minds Answer: TRUE Page Ref: 519 Objective: Difficulty: Easy 115) The historical approach correlates past sales to past advertising expenditures using advanced statistical techniques Answer: TRUE Page Ref: 519 Objective: Difficulty: Easy 116) Loyal brand buyers tend to change their buying patterns as a result of competitive promotions Answer: FALSE Page Ref: 519 Objective: Difficulty: Easy 117) Dominant brands offer sales promotion deals less frequently, because most deals subsidize only current users Answer: TRUE Page Ref: 520 Objective: Difficulty: Easy 118) Examples of manufacturer promotions include price cuts and feature advertising Answer: FALSE Page Ref: 520 Objective: Difficulty: Easy 119) Sales promotion tools that typically are not brand building include price-off packs, contests and sweepstakes, consumer refund offers, and trade allowances Answer: TRUE Page Ref: 520 Objective: Difficulty: Moderate 32 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 120) Manufacturers handle forward buying and diverting by producing and delivering less than the full order in an effort to smooth production Answer: TRUE Page Ref: 522 Objective: Difficulty: Moderate 121) Additional costs beyond the cost of specific promotions include the risk that promotions might decrease long-run brand loyalty Answer: TRUE Page Ref: 524 Objective: Difficulty: Easy 122) An ideal event is also unique but not encumbered with many sponsors, lends itself to ancillary marketing activities, and reflects or enhances the sponsor's brand or corporate image Answer: TRUE Page Ref: 525 Objective: Difficulty: Easy 123) The supply-side method identifies the effect sponsorship has on consumers' brand knowledge Answer: FALSE Page Ref: 526 Objective: Difficulty: Easy 124) Although supply-side exposure methods provide quantifiable measures, equating media coverage with advertising exposure ignores the content of the respective communications Answer: TRUE Page Ref: 526 Objective: Difficulty: Moderate 125) Media coverage and telecasts only expose the brand and don't necessarily embellish its meaning in any direct way Answer: TRUE Page Ref: 526 Objective: Difficulty: Easy 33 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 126) The supply-side measurement method focuses on potential exposure to the brand by assessing the extent of media coverage, and the demand-side method focuses on exposure reported by consumers Answer: TRUE Page Ref: 526 Objective: Difficulty: Easy 127) A public is any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives Answer: TRUE Page Ref: 527 Objective: Difficulty: Easy 128) The public relations function of lobbying involves advising management about public issues, and company positions and image during good times and bad Answer: FALSE Page Ref: 527 Objective: Difficulty: Easy 129) The main objective of marketing public relations is to secure editorial space in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization Answer: FALSE Page Ref: 527 Objective: Difficulty: Easy 130) Creative public relations can affect public awareness at a fraction of the cost of advertising Answer: TRUE Page Ref: 528 Objective: Difficulty: Easy 131) MPR can hold down promotion cost because it costs less than direct-mail and media advertising Answer: TRUE Page Ref: 528 Objective: Difficulty: Easy 34 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 132) MPR can build credibility by placing stories in the media to bring attention to a product, service, person, organization, or idea Answer: FALSE Page Ref: 528 Objective: Difficulty: Moderate 133) MPR is effective in blanketing local communities and reaching specific groups and hence has to be planned separately from the less cost-effective advertising Answer: FALSE Page Ref: 528 Objective: Difficulty: Easy 134) MPR's contribution to a company's bottom line is the easiest to measure among all the available promotion tools Answer: FALSE Page Ref: 529 Objective: Difficulty: Moderate 135) In developing an advertising program, marketing managers can make the five major decisions known as the five Ms List and explain each of these Ms Answer: (1) Mission—sales goals and advertising objectives; (2) Money—factors to consider: stage in PLC, market share and consumer base, competition and clutter, advertising frequency, and product substitutability; (3) Message—message generation, message evaluation and selection, message execution, and social-responsibility review; (4) Media—reach, frequency, impact, major media types, specific media vehicles, media timing, and geographical media allocation; and (5) Measurement—communication impact and sales impact Page Ref: 504 Objective: Difficulty: Moderate 136) Explain the classification of advertising objectives Answer: (1) Informative advertising aims to create brand awareness and knowledge of new products or new features of existing products (2) Persuasive advertising aims to create liking, preference, conviction, and purchase of a product or service Some persuasive advertising uses comparative advertising, which makes an explicit comparison of the attributes of two or more brands Comparative advertising works best when it elicits cognitive and affective motivations simultaneously, and when consumers are processing advertising in a detailed, analytical mode (3) Reminder advertising aims to stimulate repeat purchase of products and services (4) Reinforcement advertising aims to convince current purchasers that they made the right choice Page Ref: 504-505 Objective: Difficulty: Moderate 35 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 137) Describe how advertising objectives are set to reflect the product class Answer: The advertising objective should emerge from a thorough analysis of the current marketing situation If the product class is mature, the company is the market leader, and brand usage is low, the objective is to stimulate more usage If the product class is new, the company is not the market leader, but the brand is superior to the leader, then the objective is to convince the market of the brand's superiority Page Ref: 505 Objective: Difficulty: Moderate 138) Give a brief description of the various factors that affect advertising budget decisions Answer: Stage in the product life cycle — New products typically merit large advertising budgets to build awareness and to gain consumer trial Established brands usually are supported with lower advertising budgets, measured as a ratio to sales Market share and consumer base — High-market-share brands usually require less advertising expenditure as a percentage of sales to maintain share To build share by increasing market size requires larger expenditures Competition and clutter — In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard Even simple clutter from advertisements not directly competitive to the brand creates a need for heavier advertising Advertising frequency — The number of repetitions needed to put the brand's message across to consumers has an obvious impact on the advertising budget Product substitutability — Brands in less-differentiated or commodity-like product classes (beer, soft drinks, banks, and airlines) require heavy advertising to establish a unique image Page Ref: 505 Objective: Difficulty: Moderate 139) Write a brief note on the role of television as an advertising medium Answer: Television is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure TV advertising has two particularly important strengths First, it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits Second, it can dramatically portray user and usage imagery, brand personality, and other intangibles Because of the fleeting nature of the ad, however, and the distracting creative elements often found in it, product-related messages and the brand itself can be overlooked Moreover, the high volume of nonprogramming material on television creates clutter that makes it easy for consumers to ignore or forget ads Page Ref: 507 Objective: Difficulty: Moderate 36 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 140) What is the role of print media in advertising? What are the major advantages and disadvantages associated with print advertising media? Answer: Print media offer a stark contrast to broadcast media Because readers consume them at their own pace, magazines and newspapers can provide detailed product information and effectively communicate user and usage imagery At the same time, the static nature of the visual images in print media makes dynamic presentations or demonstrations difficult, and print media can be fairly passive The two main print media—magazines and newspapers—share many advantages and disadvantages Although newspapers are timely and pervasive, magazines are typically more effective at building user and usage imagery Newspapers are popular for local—especially retailer—advertising Although advertisers have some flexibility in designing and placing newspaper ads, relatively poor reproduction quality and short shelf life can diminish the ads' impact Page Ref: 507-508 Objective: Difficulty: Moderate 141) What are the legal and social issues associated with advertising? Answer: To break through clutter, some advertisers believe they have to be edgy and push the boundaries of what consumers are used to seeing in advertising In doing so, marketers must be sure advertising does not overstep social and legal norms or offend the general public, ethnic groups, racial minorities, or special-interest groups A substantial body of laws and regulations governs advertising Under U.S law, advertisers must not make false claims, such as stating that a product cures something when it does not They must avoid false demonstrations, such as using sand-covered Plexiglas instead of sandpaper to demonstrate that a razor blade can shave sandpaper It is illegal in the United States to create ads that have the capacity to deceive, even though no one may actually be deceived The challenge is telling the difference between deception and "puffery"—simple exaggerations that are not meant to be believed and that are permitted by law Sellers in the United States are legally obligated to avoid bait-and-switch advertising that attracts buyers under false pretenses Advertising can play a more positive broader social role The Ad Council is a nonprofit organization that uses top-notch industry talent to produce and distribute public service announcements for nonprofits and government agencies From its early origins with "Buy War Bonds" posters, the Ad Council has tackled innumerable pressing social issues through the years One of its recent efforts featured beloved Sesame Street stars Elmo and Gordon exhorting children to wash their hands in the face of the H1N1 flu virus Page Ref: 510 Objective: Difficulty: Moderate 37 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 142) What are the adjustments that marketers need to apply to the cost-per thousand measure when selecting specific media vehicles? Answer: Marketers need to apply several adjustments to the cost-per-thousand measure First, they should adjust for audience quality For a baby lotion ad, a magazine read by million young mothers has an exposure value of million; if read by million teenagers, it has an exposure value of almost zero Second, adjust the exposure value for the audience-attention probability Readers of Vogue may pay more attention to ads than readers of Newsweek Third, adjust for the medium's editorial quality (prestige and believability) People are more likely to believe a TV or radio ad and to become more positively disposed toward the brand when the ad is placed within a program they like Fourth, consider ad placement policies and extra services (such as regional or occupational editions and lead-time requirements for magazines) Page Ref: 516 Objective: Difficulty: Moderate 143) Describe the adjustments that a advertiser of high-end laptops has to make to the cost-perthousand measure Answer: Student answers may vary The advertiser needs to apply several adjustments to the cost-per-thousand measure First, they should adjust for audience quality The product being high-end laptops, it is better advertised in a magazine read by million college-going kids rather than million housewives, in which case it would have an exposure value of almost zero Second, the exposure value for the audienceattention probability must be accounted for Readers of Chip or Digit may pay more attention to gadget ads than readers of Newsweek Third, the medium's editorial quality (prestige and believability) should be considered People are more likely to believe a TV or radio ad and to become more positively disposed toward the brand when the ad is placed within a program they like To this effect, the ads can be placed within a program like Big Bang Theory The fourth adjustment should be made in relation to ad placement policies and extra services (such as regional or occupational editions and lead-time requirements for magazines) Laptop ads would be better received and responded in magazines that have greater circulation in urban areas with an office-going population or university towns with sizable student populations Page Ref: 516 Objective: AACSB: Analytic skills Difficulty: Moderate 38 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 144) What are the four types of advertising timing patterns available to marketers when launching a new product? Answer: In launching a new product, the advertiser must choose among continuity, concentration, flighting, and pulsing • Continuity means exposures appear evenly throughout a given period Generally, advertisers use continuous advertising in expanding market situations, with frequently purchased items, and in tightly defined buyer categories • Concentration calls for spending all the advertising dollars in a single period This makes sense for products with one selling season or related holiday • Flighting calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity It is useful when funding is limited, the purchase cycle is relatively infrequent, or items are seasonal • Pulsing is continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity It draws on the strength of continuous advertising and flights to create a compromise scheduling strategy Those who favor pulsing believe the audience will learn the message more thoroughly, and at a lower cost to the firm Page Ref: 517 Objective: Difficulty: Moderate 145) Describe the communication-effect research method of evaluating advertising effectiveness Answer: Communication-effect research, called copy testing, seeks to determine whether an ad is communicating effectively Marketers should perform this test both before an ad is put into media and after it is printed or broadcast Pretest critics maintain that agencies can design ads that test well but may not necessarily perform well in the marketplace Proponents maintain that useful diagnostic information can emerge and that pretests should not be used as the sole decision criterion anyway Many advertisers use posttests to assess the overall impact of a completed campaign If a company hoped to increase brand awareness from 20 percent to 50 percent and succeeded in increasing it to only 30 percent, then the company is not spending enough, its ads are poor, or it has overlooked some other factor Page Ref: 518 Objective: Difficulty: Moderate 39 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 146) Compare and contrast advertising and sales promotion as marketing communication tools Answer: Sales promotion expenditures increased as a percentage of budget expenditure for a number of years, although its growth has recently slowed Several factors contributed to this growth, particularly in consumer markets Promotion became more accepted by top management as an effective sales tool, the number of brands increased, competitors used promotions frequently, many brands were seen as similar, consumers became more price-oriented, the trade demanded more deals from manufacturers, and advertising efficiency declined But the rapid growth of sales promotion created clutter Loyal brand buyers tend not to change their buying patterns as a result of competitive promotions Advertising appears to be more effective at deepening brand loyalty, although we can distinguish added-value promotions from price promotions Price promotions may not build permanent total-category volume Small-share competitors may find it advantageous to use sales promotion, because they cannot afford to match the market leaders' large advertising budgets, nor can they obtain shelf space without offering trade allowances or stimulate consumer trial without offering incentives Dominant brands offer deals less frequently, because most deals subsidize only current users Page Ref: 519-520 Objective: Difficulty: Moderate 147) What challenges marketers face in managing trade promotions? Answer: The growing power of large retailers has increased their ability to demand trade promotion at the expense of consumer promotion and advertising The company's sales force and its brand managers are often at odds over trade promotion The sales force says local retailers will not keep the company's products on the shelf unless they receive more trade promotion money, whereas brand managers want to spend their limited funds on consumer promotion and advertising Manufacturers face several challenges in managing trade promotions First, they often find it difficult to police retailers to make sure they are doing what they agreed to Manufacturers increasingly insist on proof of performance before paying any allowances Second, some retailers are doing forward buying—that is, buying a greater quantity during the deal period than they can immediately sell Retailers might respond to a 10 percent-off-case allowance by buying a 12week or longer supply The manufacturer must then schedule more production than planned and bear the costs of extra work shifts and overtime Third, some retailers are diverting, buying more cases than needed in a region where the manufacturer offers a deal and shipping the surplus to their stores in nondeal regions Manufacturers handle forward buying and diverting by limiting the amount they will sell at a discount, or by producing and delivering less than the full order in an effort to smooth production Ultimately, many manufacturers feel trade promotion has become a nightmare It contains layers of deals, is complex to administer, and often leads to lost revenues Page Ref: 520, 522 Objective: Difficulty: Moderate 40 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 148) List the major objectives of events and experiences as promotion tools Answer: To identify with a particular target market or lifestyle To increase salience of company or product name To create or reinforce perceptions of key brand image associations To enhance corporate image To create experiences and evoke feelings To express commitment to the community or on social issues To entertain key clients or reward key employees To permit merchandising or promotional opportunities Page Ref: 524-525 Objective: Difficulty: Easy 149) Describe the methods used to measure sponsorship activities Answer: It's a challenge to measure the success of events The supply-side measurement method focuses on potential exposure to the brand by assessing the extent of media coverage, and the demand-side method focuses on exposure reported by consumers Supply-side methods approximate the amount of time or space devoted to media coverage of an event, for example, the number of seconds the brand is clearly visible on a television screen or the column inches of press clippings that mention it These potential "impressions" translate into a value equivalent to the dollar cost of actually advertising in the particular media vehicle Although supply-side exposure methods provide quantifiable measures, equating media coverage with advertising exposure ignores the content of the respective communications The advertiser uses media space and time to communicate a strategically designed message Media coverage and telecasts only expose the brand and don't necessarily embellish its meaning in any direct way Although some public relations professionals maintain that positive editorial coverage can be worth to 10 times the equivalent advertising value, sponsorship rarely provides such favorable treatment The demand-side method identifies the effect sponsorship has on consumers' brand knowledge Marketers can survey event spectators to measure recall of the event as well as resulting attitudes and intentions toward the sponsor Page Ref: 526 Objective: Difficulty: Moderate 41 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 150) What are the major functions performed by marketing public relations? Illustrate with examples Answer: MPR goes beyond simple publicity and plays an important role in the following tasks: • Launching new products: The amazing commercial success of toys such as LeapFrog, Beanie Babies, and even the latest kids' craze, Silly Bandz, owes a great deal to strong publicity • Repositioning a mature product: In a classic PR case study, New York City had extremely bad press in the 1970s until the "I Love New York" campaign • Building interest in a product category: Companies and trade associations have used MPR to rebuild interest in declining commodities such as eggs, milk, beef, and potatoes and to expand consumption of such products as tea, pork, and orange juice • Influencing specific target groups: McDonald's sponsors special neighborhood events in Latino and African American communities to build goodwill • Defending products that have encountered public problems: PR professionals must be adept at managing crises, such as those weathered by such well-established brands as Tylenol, Toyota, and BP in 2010 • Building the corporate image in a way that reflects favorably on its products: Steve Jobs's heavily anticipated Macworld keynote speeches have helped to create an innovative, iconoclastic image for Apple Corporation Page Ref: 527-528 Objective: Difficulty: Moderate 42 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall ... Pearson Education, Inc Publishing as Prentice Hall 57) Which of the following elements of the marketing communications mix consists of a collection of incentive tools, mostly short-term, designed... sponsor's bottom line Answer: D Page Ref: 526 Objective: Difficulty: Moderate 85) is a marketing communications tool that includes a variety of programs to promote or protect a company's image... it promotes understanding of the organization through internal and external communications? A) lobbying B) corporate communications C) press relations D) product publicity E) counseling Answer: