Chpt 16

advertising objective

a specific communication task that a campaign should accomplish for a specified target audience during a specified period

Which of the following refers to a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns? a. Advertising response function b. Sales promotion c. Institutional advertising d. Product advertising

a. Advertising response function

competitor's customers

people who buy a competitor's product most or all of the time

loyal customer

people who buy your product most or all of the time

Corporate Communication

Creating internal and external messages to promote a positive image of the firm or institution

press relations

Placing positive, newsworthy information in the news media or in the hands of influential bloggers to attract attention to a product, a service, or a person associated with the firm or institution

informercial

a 30-minute or longer advertisement that looks more like a television talk show than a sales pitch

rebate

a cash refund given for the purchase of a product during a specific period

coupon

a certificate that entitles consumers to an immediate price reduction when the product is purchased

crisis management

a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event

unique selling proposition

a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign

institutional advertising

a form of advertising designed to enhance a company's image rather than promote a particular product

competitive advertising

a form of advertising designed to influence demand for a specific brand

pioneering adverstising

a form of advertising designed to stimulate primary demand for a new product or product category

advocacy advertising

a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks

comparative advertising

a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes

frequent buyer program

a loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service

flighted media schedule

a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times

continuous media schedule

a media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle

seasonal media schedule

a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used

pulsing media schedule

a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods

advertising response function

a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns

trade allowance

a price reduction offered by manufacturers to intermediaries such as wholesalers and retailers

point of purchase displays

a promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying

loyalty marketing program

a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers

sampling

a promotional program that allows the consumer the opportunity to try a product or service for free

sponsorship

a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image

product placement

a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events

advertising appeal

a reason for a person to buy a product

advertising campaign

a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

Which of the following is true of trade sales promotions carried out at business meetings and conventions? a. Companies can test the market response to new products. b. The cost per contact is much higher than in direct consumer sales. c. Brands sponsor such events by offering coupons and rebates. d. These events involve loyalty marketing programs.

a. Companies can test the market response to new products

Which of the following is a disadvantage of newspaper advertising? a. It has a low pass-along rate. b. The individual market coverage is low. c. The advertiser commitment is short term. d. Its reach is limited to only very narrow markets.

a. It has a low pass-along rate.

_____ is the series of decisions advertisers make regarding the selection and use of media, enabling the marketer to optimally and cost-effectively communicate the message to the target audience. a. Media planning b. Product placement c. Media-resource analysis d. Advergaming

a. Media planning

A(n) _____ identifies a reason for a person to buy a product. a. advertising appeal b. trade allowance c. advocacy advertisement d. media schedule

a. advertising appeal

A(n) _____is a series of related ads focusing on a common theme, slogan, and set of advertising appeals. a. advertising campaign b. unique selling proposition c. media mix d. advertising protocol

a. advertising campaign

A(n) _____ identifies the specific communication task that a campaign should accomplish for a specified target audience during a specified period. a. advertising objective b. demonstration c. unique selling proposition d. advertising appeal

a. advertising objective

________ promotes the benefits of a specific good or service. a. product advertising b. institutional advertising c. comparative advertising d. competitive advertising

a. product advertising

In thinking about different types of sales promotions, winning a ______ depends on chance and participation or entry is free while a ______ requires some skill or ability to compete for prizes. a. sweepstakes; contest b. rebate; sweepstakes c. loyalty rewards program; premium d. contest; loyalty rewards program

a. sweepstakes; contest

cooperative advertising

an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand

publicity

an effort to capture media attention, often initiated through press releases that further a corporation's public relations plans

premium

an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product

Which of the following statements is true about the effects of advertising on consumers? a. Advertising cannot instill brand loyalty among customers. b. Advertising reinforces positive attitudes toward brands. c. Advertising can change consumers' deeply rooted values and attitudes. d. Humorous ads are ineffective at shaping attitudes of customers.

b. Advertising reinforces positive attitudes toward brands.

Which of the following advertising objectives correctly uses the Defining Advertising Goals for Measured Advertising Results approach? a. Puddings and Desserts Inc. aims to boost the sales of its packaged confectionery division. b. Fuel On Inc. aims to achieve a 10 percent increase in the sales of its sports drinks among teenagers within 12 months. c. Krunch Cookies wants to entertain its customers with a humorous ad featuring children enjoying its products. d. Décor Arts aims to use 10 ecofriendly methods to convey the message of keeping the environment clean.

b. Fuel On Inc. aims to achieve a 10 percent increase in the sales of its sports drinks among teenagers within 12 months.

During which stage of the product life cycle, pioneering advertising is heavily used? a. Formative stage b. Introductory stage c. Conception stage d. Growth stage

b. Introductory stage

Which of the following statements is correct about an advertising campaign? a. It cannot focus on more than one advertising appeal. b. It extends for a defined period of time. c. It circumvents the need for post-campaign evaluation. d. It does not use humor to promote a theme.

b. It extends for a defined period of time.

In the context of the effects of advertising on consumers, serious or dramatic advertisements a. are not affected by advertising response function. b. are effective at changing consumers' negative attitudes. c. cannot be used by new brands with a small market share. d. change consumers' deeply rooted values and attitudes.

b. are effective at changing consumers' negative attitudes.

public affairs

building and maintaining local, national, or global community relations

Which of the following refers to an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand? a. Institutional advertising b. Competitive advertising c. Cooperative advertising d. Pioneer advertising

c. Cooperative advertising

Which of the following statements is true of advertising campaigns? a. It is the last stage of an advertising process. b. It allows advertising for an indefinite period of time. c. It can focus on more than one advertising appeal. d. It circumvents the need for post-advertising evaluation.

c. It can focus on more than one advertising appeal.

_____ is an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand. a. Corporate advertising b. Distributive advertising c. Institutional advertising d. Cooperative advertising

d. Cooperative advertising

In a marketing environment, which of the following statements is true of a crisis management? a. It involves offering seminars on money management. b. Managing publicity in a crisis situation is easy. c. It involves responding to negative event placement. d. Spending large money on advertisements prevents crisis.

c. It involves responding to negative event placement.

Which of the following is correct about humorous advertising? a. It is effective in changing consumers' deeply rooted values and attitudes. b. It is not used to publicize new brands introduced in the market. c. It is effective at shaping attitudes when consumers already have a positive image of an advertised brand. d. It is not effective when used to reinforce and remind loyal customers about the benefits of a product.

c. It is effective at shaping attitudes when consumers already have a positive image of an advertised brand.

Which of the following defines gamification? a. It is the process of offering free game kits along with specific sporting goods. b. It is the process of promoting products using outdoor games such as soccer. c. It is the process of using game mechanics and a gaming mindset to engage an audience. d. It is the process of using pop-up advertisements while playing a virtual game on the Internet.

c. It is the process of using game mechanics and a gaming mindset to engage an audience.

Which of the following statements is true of the benefit of a product? a. A benefit is simply a feature of a product. b. Customers enjoy benefits specifically with expensive products. c. It is what consumers will achieve by using a product. d. Customers do not buy benefits; they buy attributes.

c. It is what consumers will achieve by using a product

Identify a true statement about a flighted media schedule. a. It has less impact than other types of media schedules. b. It is the same as continuous scheduling. c. It varies the frequency of ads to achieve greater impact. d. It uses light advertising for two months.

c. It varies the frequency of ads to achieve greater impact.

Which of the following statements is true of rebates? a. Rebates offer more immediate rewards than coupons. b. Manufacturers offer price cuts for selected customers. c. Rebates are good at enticing purchase but most consumers never bother to redeem them. d. Manufacturers have less control over rebate promotions because they take a lot of time to be rolled out and shut off.

c. Rebates are good at enticing purchase but most consumers never bother to redeem them.

Laelle Shoes is a popular sports shoe manufacturing company. It funds several tournaments that take place in the country to promote brand awareness and the company's image. In this scenario, which of the following public relations tools does Lealle Shoes use? a. Lobbying b. Crisis management c. Sponsorship d. Experiential marketing

c. Sponsorship

Unlike new brands with a small market share, brands with a large market share a. spend proportionately more for advertising and sales promotion than new brands. b. need to penetrate consumers' perceptual defenses about a product choice. c. only need to remind customers of their products rather than capture their attention. d. can easily change consumers' deeply rooted values and attitudes.

c. only need to remind customers of their products rather than capture their attention.

Commercials for a new and innovative tablet computer demonstrate the product's capabilities and benefits. The commercials promote the product by advertising the ease of multitasking on the tablet. Since this new product is one of a kind, the commercials aim to project the benefits of the tablet through dramatic advertising. These commercials are an example of _____. a. advocacy advertising b. comparative advertising c. pioneering advertising d. institutional advertising

c. pioneering advertising

_____ is typically used to safeguard against negative consumer attitudes and enhance a company's credibility among consumers who already favor its position. a. Competitive advertising b. Comparative advertising c. Pioneering advertising d. Advocacy advertising

d. Advocacy advertising

Which of the following is a form of advertising that firms use when a product enters the growth phase of the product life cycle and other companies begin to enter the marketplace? a. Advocacy advertising b. Comparative advertising c. Pioneering advertising d. Competitive advertising

d. Competitive advertising

_____ is defined as the coordinated effort to handle the effects of unfavorable publicity, ensuring fast and accurate communication in times of emergency. a. Negative campaigning b. Media scheduling c. Audience selection d. Crisis management

d. Crisis management

Which of the following is an advantage of advertising through newspapers? a. Extensive range of color capabilities b. Long-term advertiser commitments c. Long lead time d. Geographical flexibility

d. Geographical flexibility

Duke University submits a press release to The Herald Sun newspaper that Henry Gibson has been named Dean of the College of Business. This illustrates which duty of public relations departments? a. Investor relations b. Crisis management c. Public affairs d. Press relations

d. Press relations

Which of the following is a difference between institutional advertising and product advertising? a. Product advertising is an effective strategy for expressing views on controversial issues, whereas institutional advertising is effective in managing a crisis. b. Product advertising focuses on reinforcing positive attitudes toward a brand, whereas the goal of institution advertising is to create demand for a specific commodity. c. Product advertising is used to change negative consumer attitudes toward existing brands, whereas institutional advertising is used stimulate primary demand for new commodities. d. Product advertising promotes the benefits of a specific good or service, whereas institutional advertising asks an audience to maintain a favorable attitude toward the advertiser.

d. Product advertising promotes the benefits of a specific good or service, whereas institutional advertising asks an audience to maintain a favorable attitude toward the advertiser.

In the context of advertising media, which of the following statements is true of infomercials? a. They are suitable for magazine advertising. b. They are short and less than 10 minutes. c. They are more expensive to produce and air than commercial spots. d. They are the ideal way to present complicated messages to potential customers.

d. They are the ideal way to present complicated messages to potential customers.

Which of the following statements is true of new brands with a small market share? a. They are not susceptible to the advertising response function. b. They do not incur losses in the first five years of entering the market. c. They spend less than their competitors because the effect of advertising is minimal regardless of the cost. d. They tend to spend proportionately more for advertising and sales promotion than those with a large market share.

d. They tend to spend proportionately more for advertising and sales promotion than those with a large market share

Treats Inc.'s advertisement for its newly launched line of frozen foods advocates that its products are organic, follow traditional recipes, and contain high-quality ingredients. The products are ideal for busy professionals who want to eat healthy and save time spent on cooking. In this scenario, Treats Inc. is a. advertising the attributes of its products. b. employing institutional advertising. c. using comparative advertising. d. advertising the benefits of its products.

d. advertising the benefits of its products.

In 2014, fashion retailer, H&M, placed a full page advertisement in a newspaper in the Czech Republic detailing the withdrawl of a belt that had small pieces which could be a choking hazard. This is an example of: a. public affairs. b. product publicity. c. employee relations. d. crisis management

d. crisis management

Joshua, a famous movie star, has been the brand ambassador of Class Apart Watches for the past 20 years. He sports the latest edition of Class Apart Watches in all his movies. This is an example of _____. a. advergaming b. infomercial c. sponsorship d. product placement

d. product placement

media schedule

designation of the media, the specific publications or programs, and the insertion dates of advertising

Lobbying

influencing legislators and government officials to promote or defeat legislation and regulation

employee and investor relations

maintaining positive relationships with employees, shareholders, and others in the financial community

sales promotion

marketing communication activities other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value

push money

money offered to channel intermediaries to encourage them to "push" products - that is, to encourage other members of the channel to sell the products

advergaming

placing advertising messages in Web-based, mobile, console, or handheld video games to advertise or promote a product, service, organization, or issue

trade sales promotion

promotion activities directed to members of the marketing channel, such as wholesalers and retailers

consumer sales promotion

promotion activities targeted to the ultimate consumer market

product publicity

publicizing specific products or services through a variety of traditional and online channels

crisis management

responding to unfavorable publicity or a negative event placement, often at a much lower cost than in mass media like television ads

audience selectivity

the ability of an advertising medium to reach a precisely defined market

medium

the channel used to convey a message to a target market

media mix

the combination of media to be used for a promotional campaign

cost per click

the cost associated with a consumer clicking on a display or banner ad

cost per contact

the cost of reaching one member of the target market

cost per thousand (CPM)

the cost of reaching one member of the target market also called cost per contact

Public Relations

the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance

reach

the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks

Frequency

the number of times an individual is exposed to a given messaage during a specific period

media planning

the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience