Marketing CH.17 Part III

_____________ may include a readership survey.

A communications audit

You are a brand manager for a major retailer, and you just completed developing a series of advertisements with the help of your outside ad agency. You are excited about the ads and you are anxious to get the marketing vice president's opinion of the ads. Unfortunately, the vice president does not believe the ads will be effective. She wants you to do some type of effectiveness evaluation of the ads before the company spends a lot of money running them.

A consumer jury

The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves over 1.9 million bank accounts. ​ Refer to Scenario 17.2. In 2008, Cal Ripken Jr., and State Farm teamed up to promote State Farm's national teen driver safety program. The marketing division at State Farm produced a one-page document that described the partnership, which was then published in several national newspapers and on the Internet. The document from State Farm is an example of ____, while the publication in the newspapers is an example of ____.

a news release; publicity

A content analysis of an organization's messages, readability studies, and readership surveys are all tools used to conduct a(n)

communications audit.

Fruit of the Loom is launching a new advertising campaign. Within the first six months of the campaign, the media planners want the new advertisement's _____ to be 25% of the target market and the _____ to be four times.

reach; frequency

Lexus has designed its commercials to appeal to more affluent car drivers as its

​target audience.

is digital advertising that matches the appearance and purpose of the content in which it is embedded.

Native advertising

Which of the following statements is true about public relations?

The most common publicity-based tool is the news release

In creating the advertising message, which of the following is not recommended when creating a slogan?

The slogan should be accompanied by a spokescharacter.

A firm can identify changes in public opinion that affect it by conducting

environmental monitoring

Domino's wants to get free publicity and be associated with a worthy cause that resonates with consumers. It wants to achieve this with relatively little investment. It should engage in

event sponsorship.

In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is to

facilitate news coverage of the event.

The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves over 1.9 million bank accounts. ​ Refer to Scenario 17.2. If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the coming year, it would most likely use the ____ approach to advertising allocation.

objective-and-task

Debra has been given the responsibility of determining the advertising appropriation for her firm's newest marketing campaign. At first she thinks that determining the advertising objectives and breaking them into tasks is the best way. However, Debra notices that past sales have been relatively constant, she multiplies the firm's past sales by a standard percentage based on what her firm usually spends on advertising. Debra is using the ________________ approach. The problem of this approach is that it assumes _________________________.

percent-of-sales; sales create advertising

A car dealership is switching how it determines its advertising appropriation. They are moving from an approach where they set their budget based on their projected revenue for the coming year to one in which it identifies the cost required to meet certain goals. They are switching from the _____ approach to the _____ approach

percentage-of-sales; objective-and-task

You are the head of marketing for a major oil company based in the United States. Recently, your company was involved in a major oil spill off the coast of Texas where millions of barrels of crude oil were accidentally released into the Gulf of Mexico. The negative publicity for your company has been fast and furious since the spill occurred. However, your company took a very proactive approach in managing the disaster and the resulting publicity. Now your CEO wants to assess how effective the company has been in repairing its image.

A public relations audit

Which of the following is not an advantage of using publicity-based public relations tools?

Control by media personnel of the content and timing of messages

Which of the following would most likely fall under the responsibility of an advertising agency?

Copyediting and artwork

Public relations personnel create corporate identity materials including all the following except:

Coupons

You and your marketing team are conducting a series of focus groups with potential customers of a new product your firm is launching next year. The purpose of these focus groups is to find out what potential customers consider most important in the selection and use of this new product. Which of the following steps in the advertising campaign development process are you performing with this activity?​

Creating the advertising platform

Myra, who works in the marketing department at a consumer electronics firm, is part of a team assigned to develop an advertising campaign for the firm's newest electronic product. Myra and her team have decided that they will take out advertisements in certain magazines that best reach their target market. Myra will also advertise heavily on the firm's website and social media pages. Finally, they agree that they should take out 30-second television advertisements that will run for two weeks on a pulsing schedule. At what stage are Myra and her team in the development of the advertising campaign?

Developing the media plan

_____________ identifies changes in public opinion affecting an organization.

Environmental monitoring

Which of the following is the best example of native advertising

Fidelity Investments sponsors an article on the Forbes website that discusses whether to accept an employer's buyout offer.

During which stage of the product life cycle is pioneer advertising most appropriate?

Introduction

Which of the following statements is true about public relations?​

Marketers cannot control whether the media choose to publish their public relations material

The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves over 1.9 million bank accounts. ​ Refer to Scenario 17.2. If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2% of its total annual sales to advertising. However, one problem with this method is that

a drop in sales would cause a drop in the advertising budget.

Canon Inc. is releasing a new version of its EOS Rebel camera. As part of the launch, they have submitted a 2,500-word story to Popular Photography, a magazine for camera users. This is a public relations tool known as

a feature article.

Eric works at Apple. Apple just released an upgraded product offering for its iPhone. While the entire marketing department is working on advertising and public relations for the iPhone launch, Eric's assignment is to illustrate the highly visible features of the product in a print publication. Most importantly, he wants to show off and describe the improved features that differ from the previous version. To achieve his objective, Eric would most likely use a(n)

captioned photograph.

Jackie is interested in measuring the effectiveness of her firm's public relations campaigns. She would like to perform a content analysis of the firm's messages as well as a readership survey. Jackie is most likely performing a

communications audit.

The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves over 1.9 million bank accounts. ​ Refer to Scenario 17.2. When deciding on its advertising allocation for the coming year, State Farm Insurance could choose to spend the same amount as Safe Auto, another auto insurance company, or it could allocate an amount that is 10% of last year's premiums. If State Farm uses the same amount as Safe Auto, this method of advertising appropriation is known as the ____ approach; if State Farm uses the amount based on last year's premiums, the method would be _____.

competition-matching; percent-of-sales

One way for a company to measure the effectiveness of its publicity-based public relations efforts is to

count the number of exposures in the media

Phillip works in the public relations department of his company. He sends a news release about a new product offering to several newspapers and television stations. Phillip knows from past experience that even when the media use his news releases, they often release the information at inopportune times. They will also sometimes cut out what Phillip believes are the most important points to make the news fit. However, Phillip accepts these disadvantages because free publicity offers the advantage of

credibility

Francine works for a chemical manufacturer. A few days ago there was an accident at one of its plants, and several workers were exposed to dangerous chemicals. Some received burns and were hospitalized. As spokesperson for the firm, ​Francine has been getting calls all morning from news outlets wanting information. The best thing for Francine to do in this situation would be to

expedite news coverage.

At very large firms, advertising campaigns are likely to be performed by a(n) _____________________, while in small firms advertising campaigns are more likely to fall under the responsibility of ____________________. ​

experienced individual; an advertising department

A restaurant chain recently had several customers become sick after eating at one of their locations. In order to lessen the negative effects of the event, the restaurant should most likely

facilitate news coverage of the event

Use the following to answer the questions. ​ The Toyota Motor Corporation is developing its promotional plan for the coming year and is considering several types of advertising to communicate its messages. Toyota will likely advertise its vehicle, the Venza, on TV, on its website, in major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs. ​ Refer to Scenario 17.1. The advertising mentioned above in which Toyota features all brands of the company would be an example of

institutional advertising.

Amanda is determining the media plan for her tax accounting business. She is currently selecting an advertising medium and is looking for a medium that is not expensive, allows for a short lead time, has large reach, and provides frequent communication. Based on these, Amanda should avoid

magazines

An advertiser that wanted to use a medium that allows for good reproduction quality, a long life to its message, demographic selectivity, and the ability to provide detailed information would likely choose

magazines

Preston ​works in the communications division of a large toy manufacturer. Recently, his company was forced to issue a nationwide recall after it was discovered that lead paint had been used on some of the toys. The news has spread like wildfire, and rumors have begun to replace facts. Preston has been constantly busy answering questions from the media, assuring the public that it was taking appropriate action, fielding calls from government officials, and more. He has come up with a statement acknowledging the incident on the corporate Facebook page and its website. He is also helping the CEO craft a response. Preston has learned the difficult lesson that

managers spend more resources responding to negative word of mouth than positive word of mouth.

Advertising that stimulates demand for a product category by informing potential customers about the product's features, uses, and benefits is called

pioneer advertising

The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of advertising to communicate its messages. Toyota will likely advertise its vehicle, the Venza, on TV, on its website, in major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs. Refer to Scenario 17.1. Toyota's television advertisements for the Venza are examples of

product advertising.

Sam works for a national sporting goods store in the marketing department. He wants to place advertisements in sports magazines that target teenagers. He notices that the sports preferences of teenagers tend to differ in different parts of the country. In one geographic area, for instance, teens are highly into skating culture. Along the coast, however, many teenagers are more interested in surf culture. Because these target markets differ, Sam should probably try to place advertisements in _________________ of magazines.

regional issues

The Toyota Motor Corporation is developing its promotional plan for the coming year and is considering several types of advertising to communicate its messages. Toyota will likely advertise its vehicle, the Venza, on TV, on its website, in major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs. ​ Refer to Scenario 17.1. Advertisements such as the one proposed above for the Camry and hybrid SUVs are most likely an example of

reminder advertising.

The Toyota Motor Corporation is developing its promotional plan for the coming year and is considering several types of advertising to communicate its messages. Toyota will likely advertise its vehicle, the Venza, on TV, on its website, in major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs. Refer to Scenario 17.1. If the ads include both the Venza and the Ford Edge, they would be examples of​​

​comparative advertising.