chapter 17

To determine how much money to spend on advertising, marketers for a new brand of caffeinated energy drink decided that they wanted the advertising to create awareness of the new flavor in 80 percent of the energy drink market within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an example of which one of the following approaches to determining advertising budgets? a) Objective-and-task b) Percent of sales c) Competition matching d) Arbitrary allocation e) Past-year comparison

a) Objective-and-task

Some of the posttest methods for measuring advertising effectiveness are based on how well consumers remember advertising and include (1) recognition tests and (2) recall tests. What is the basic difference between these two approaches? a) The actual ads are shown in the former but not in the latter. b) The former method relies on memory alone, and the latter shows the actual ads. c) One uses a consumer jury; the other uses random individuals. d) The respondents are given class clues in the latter but not in the former. e) One is used primarily by the government, and the other is used by private businesses.

a) The actual ads are shown in the former but not in the latter.

Advertising campaign objectives that are aimed at making customers' attitudes more favorable are stated in ________ terms. a) communication b) sales c) demand d) market e) survey

a) communication

An advertising platform should consist of issues that are important to consumers. Selling features should be important to consumers and should be features that a) competitive products lack. b) can be seen easily in a photograph. c) are familiar concepts to those in the target market. d) competitive products have as well. e) are reasonably inexpensive to develop.

a) competitive products lack.

A tool that allows an advertiser to compare the costs of several media vehicles within a specific medium relative to the number of persons reached by each vehicle is called a(n) a) cost comparison indicator. b) media comparison selector. c) unit-price selector. d) cost/person index. e) vehicle/price indicator.

a) cost comparison indicator.

A firm can identify changes in public opinion that affect it by conducting a) environmental monitoring. b) consumer polling. c) a consumer jury. d) a communications audit. e) press conferences.

a) environmental monitoring.

Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called __________ advertising. a) institutional b) product c) organizational d) pioneer e) advocacy

a) institutional

General Mills used a panel of consumers to evaluate its Cheerios campaign featuring children who read the cereal box and try to persuade their parents to watch their cholesterol. These consumers judged the advertisements prior to the execution of the advertising campaign. This is an example of a(n) a) pretest. b) inquiry. c) recognition test. d) recall test. e) posttest.

a) pretest.

Carla is stopped by a researcher at a shopping mall and asked what was last television commercial she remembers seeing was. This is an example of a(n) a) unaided recall test. b) pretest. c) recognition test. d) aided recall test. e) memory test.

a) unaided recall test.

Advertising appropriations are largest for which type of product? a) Business products b) Convenience goods c) High-priced products d) Specialty goods e) Infrequently purchased goods

b) Convenience goods

Coors advertises that its beer is the only one that is kept cold from the brewery to the store. This type of advertising is called a) pioneer. b) competitive. c) comparative. d) defensive. e) institutional.

b) competitive.

The verbal portion of an advertisement, including headlines, body, and signature, is called the a) artwork. b) copy. c) storyboard. d) layout. e) script.

b) copy.

Artwork, a major part of most advertisements, consists of the a) illustration and the signature. b) illustration and the layout. c) illustration and type of print used in the headlines. d) layout and the signature. e) method by which all the components are put together.

b) illustration and the layout.

After developing the budget for advertising GEO automobiles, marketing managers at General Motors then determined what proportion of that budget would be spent on magazine, television, and radio advertisements based on the cost effectiveness of each. This subsequent allocation of the budget is known as a(n) _________ plan. a) advertisement-allocation b) media c) arbitrary allocation d) objective-and-task e) percent-of-sales

b) media

The two major types of product advertising are a) institutional and advocacy. b) pioneer and competitive. c) competitive and comparative. d) advocacy and competitive. e) informative and comparative.

b) pioneer and competitive.

If a company calls a meeting to announce a major news event, this is known as a a) media call. b) press conference. c) news release. d) press release. e) public service announcement.

b) press conference.

Toyota's sponsorship of a major Professional Golf Association tournament would be an example of a(n) ______ tool. a) advertising b) public relations c) sales promotion d) publicity e) personal selling

b) public relations

____ provide businesses with copywriters, artists, production coordinators, media experts, researchers, and other highly skilled specialists. a) Public relation firms b) Media companies c) Advertising agencies d) Production companies e) Promotion experts

c) Advertising agencies

Which of the following lists forms of competitive advertising? a) Pioneer, comparative, reminder b) Reminder, repetitive, reinforcement c) Comparative, reminder, reinforcement d) Institutional, product, comparative e) Product, pioneer, reminder

c) Comparative, reminder, reinforcement

Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as a) pioneer. b) competitive. c) comparative. d) defensive. e) selective.

c) comparative.

In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is to a) discourage news coverage of the event. b) deny that the event occurred. c) facilitate news coverage of the event. d) hire a public relations firm. e) refrain from publicity that reports the event.

c) facilitate news coverage of the event.

The maker of Huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising a) reach. b) repetition. c) frequency. d) targeting. e) exposure.

c) frequency.

An ad's ___________ is designed to attract readers' attention and develop interest so that they will read the entire advertisement. a) signature b) layout c) headline d) artwork e) subheadline

c) headline

The target audience for an advertising campaign is the a) information base on which to develop the campaign. b) geographic distribution of persons. c) people toward whom the advertisements are directed. d) overall goal of the advertising campaign. e) sales objective to be achieved by the campaign.

c) people toward whom the advertisements are directed.

Darcy presents an identification card at the supermarket checkout and has a microcomputer attached to her TV. Information from both of these is sent to a research facility. Darcy is providing a) family behavior recording. b) individual consumer jury. c) single-source data. d) advertisement exposure data. e) detailed market research.

c) single-source data.

Brian and Tiffany are discussing the media plan for the opening of their new bar/laundromat called Soap and Suds. He tells her that while he agrees that __________ has tremendous impact, he does not feel that the upfront costs for such a campaign are in the modest budget that presently exists. a) radio b) outdoor c) television d) direct mail e) newspaper

c) television

What is the primary justification marketers use for conducting recognition and recall tests? a) Researchers find that recalling an advertisement has a strong link to purchasing a product. b) People have unfavorable views of advertising and are unlikely to purchase advertised products. c) Consumers tend to enjoy participating in these tests and are likely to purchase the products as a result. d) People are more likely to buy a product they have seen advertised than one they have not seen advertised. e) There is a strong link between advertisement recall/recognition and word-of-mouth communication.

d) People are more likely to buy a product they have seen advertised than one they have not seen advertised.

Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n) a) target audience goal. b) advertising platform. c) percent-of-sales approach. d) advertising objective. e) media plan goal.

d) advertising objective.

The last stage in the development of any advertising campaign is a) creating the advertising platform. b) developing the media plan. c) creating the advertising message. d) evaluating the effectiveness of advertising. e) defining the advertising objectives.

d) evaluating the effectiveness of advertising.

A schedule in which advertisements run for set periods of time, alternating with periods in which no ads run is known as a) continuous. b) skipping. c) pulsing. d) flighting. e) intervals.

d) flighting.

Measuring effectiveness during a campaign is usually accomplished by using a) pretests. b) posttests. c) consumer juries. d) inquiries. e) sales force surveys.

d) inquiries.

The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as a) public relations. b) product advertising. c) advocacy advertising. d) institutional advertising. e) comparative advertising.

d) institutional advertising.

The physical arrangement of the illustration, headline, subheadline, body copy, and the signature is called the a) artwork. b) copy. c) art design. d) layout. e) storyboard.

d) layout.

A single page of typewritten copy that has 300 words or less and describes a company event or product is called a a) press story. b) feature article. c) captioned paragraph. d) news release. e) publicity bulletin.

d) news release.

Belinda works for Burger King and her responsibilities include maintaining favorable relationships between the organization and its stakeholders. Belinda works in a) sales. b) advertising. c) human resources. d) public relations. e) imaging.

d) public relations.

The main problem with using the objective-and-task approach to setting an advertising budget is that a) sales create advertising rather than advertising creates sales. b) it often results in overspending or underspending of the firm's resources. c) it does not achieve full potential in terms of stimulating demand. d) the marketer may experience difficulty when trying to estimate accurately the level of effort needed to achieve goals. e) it is difficult to determine the objectives of the campaign.

d) the marketer may experience difficulty when trying to estimate accurately the level of effort needed to achieve goals.

The Bentley Agency places $2,500 in radio spots and $17,500 in television spots for Darnell Insurance in June. For its efforts this month, the agency "traditionally" would receive ___________ in compensation. a) $2,500 b) $10,000 c) $1,000 d) $5,500 e) $3,000

e) $3,000

When Anheuser-Busch ran an advertising campaign featuring the slogan, "Know when to say when," it was using a) competitive advertising. b) public relations. c) product advertising. d) public service awareness. e) advocacy advertising.

e) advocacy advertising.

The effectiveness of an advertising campaign can be measured a) only after the campaign has been carried out completely and results have been tabulated. b) only before the campaign begins, to prevent unnecessary expenditures. c) during the campaign to determine whether more or less funds should be allocated, but not after the campaign. d) several weeks after the beginning of the campaign to determine whether the campaign is headed in the right direction. e) before, during, and after the campaign through the use of pretests, inquiries, and posttests.

e) before, during, and after the campaign through the use of pretests, inquiries, and posttests.

If Target were to base its advertising appropriation on the amount that WalMart spends, it would be using the ______ approach. a) objective-and-task b) percent-of-sales c) industry-standard d) arbitrary e) competition-matching

e) competition-matching

After the advertising budget is determined, the next step in creating an advertising campaign is a) creating the advertising message. b) creating the advertising platform. c) evaluating the advertising objectives. d) executing the campaign. e) developing the media plan.

e) developing the media plan.

As Will Marcum reads the copy for South Beach Hotel's upcoming magazine ad in Southern Living, he worries that no one will spend the time to read all the details of the facilities his resort has to offer. Wanting to have the greatest impact, Will focuses his creative efforts on the a) copy. b) body. c) text. d) signature. e) headline.

e) headline.

The limitations in using publicity-based public relations tools stem primarily from the fact that a) marketers alter the length of publicity releases. b) publicity is never properly managed by media personnel. c) media personnel consider only unfavorable messages as newsworthy. d) it is time-consuming to convince media personnel that the information is newsworthy. e) media personnel control the content of the communication.

e) media personnel control the content of the communication.

Generally, in small firms, ___________ create(s) and implement(s) advertising campaigns. a) an advertising agency b) a group of multiskilled managers c) an advertising department d) freelance specialists e) one or two individuals

e) one or two individuals

If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the public and get wide media coverage would be through a a) captioned paragraph. b) press release. c) feature article. d) sponsorship. e) press conference.

e) press conference.

Reinforcement advertising is primarily targeted at a) new potential target markets. b) users of competitors' brands and products. c) anyone who uses that type of product. d) all the stakeholders of an organization. e) the current users of a particular product.

e) the current users of a particular product.

Advertising that lets consumers know that an established brand still offers certain uses, characteristics, and advantages is _____ advertising. a) repetitive b) reminder c) pioneer d) competitive e) reinforcement

b) reminder

Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must determine the selling points that they want to include in the advertisements. The identification and organization of these selling points is called the a) advertising appropriation. b) objective-and-task approach. c) advertising platform. d) advertising objective. e) advertising budget.

c) advertising platform.

An advertising platform is the a) basic issue or selling point that an advertiser wishes to include in an advertising campaign. b) objective of the advertising campaign, stated in precise and measurable terms. c) form in which the basic issues of the campaign should be presented. d) broad objectives of the advertising campaign. e) consumer advertising research conducted.

a) basic issue or selling point that an advertiser wishes to include in an advertising campaign.

The advertising department for the Pennzoil Corporation is working on a print advertisement for a new product. At this point, the layout contains a phrase to attract attention, an additional phrase to provide an explanation, an illustration to show the product, and a paragraph to explain the advantages and benefits of the product. What other important element should be included? a) Headline b) Subheadline c) Signature d) Artwork e) Body copy

c) Signature

Which of the following is the most important consideration when choosing an event to sponsor? a) Reasonable association between the event and the company's product b) The length of the event c) When the event occurs d) Whether or not the event is a national event e) The specific name of the event

a) Reasonable association between the event and the company's product

What is an advertising platform most commonly based upon? a) The opinions of employees within the firm or the advertising agency b) Data collected from past marketing research about the brand c) Customer surveys about what they consider the most important issues d) Retailer information about potential consumers of the product e) The advertising appropriation for that particular ad campaign

a) The opinions of employees within the firm or the advertising agency

When the CEO or chief financial officer of a company states how much the company should spend on advertising for the coming period, the company is using the a) arbitrary approach. b) executive decision process. c) objective-and-task approach. d) percentage-of-sales approach. e) competition-matching approach.

a) arbitrary approach.

Home Depot is interested in knowing how its efforts to act in a socially responsible manner through its Habitat for Humanity and disaster relief efforts have affected stakeholders' views of the company. Home Depot should conduct a(n) a) social audit. b) publicity audit. c) environmental audit. d) communications audit. e) environmental impact study.

a) social audit.

Chelsea Collins walks her client, Kaptain Korn president Steve Gonski, through her agency's proposed television campaign for the product's introduction. In doing so, she moves from square to square on the a) copy. b) storyboard. c) illustrations chart. d) artwork. e) media plan.

b) storyboard.

The cost per thousand (CPM) indicator shows a) the cost to expose 1,000 people to a television commercial. b) the cost to expose 1,000 people to a one-page magazine advertisement. c) the return on investment marketers get for their advertising dollar. d) the cost to expose a million people to any type of advertisement. e) how one media source compares to a different source for reaching target markets.

b) the cost to expose 1,000 people to a one-page magazine advertisement.

Why should a benchmark statement be included in advertising objectives? a) Shareholders want to see where a company is in relation to competition. b) It is useful in determining whether retailers have increased their sales over the year. c) It gives an indication of how the advertising message is best presented. d) Without a reference point, it is difficult to determine to what degree objectives have been accomplished. e) Objectives become more easily attainable when such a statement is included.

d) Without a reference point, it is difficult to determine to what degree objectives have been accomplished.

Mike Stevens wonders whether the creative idea of using the character "Tom T. Turtle" as an image for marketing a new line of running shoes will be successful. He should suggest to his account representative that a(n) __________ be used to pretest the campaign. a) storyboard b) survey c) experiment d) GSR test e) consumer jury

e) consumer jury

Kohl's, a department store featuring clothing and housewares, communicates in news story form about its organization and its efforts to support local children's hospitals. This information is transmitted through mass media at no charge and is therefore called a) news reporting. b) public relations. c) mass communications. d) free advertising. e) publicity.

e) publicity.

If during an advertising campaign a certain portion of advertising runs continuously, and then during specific periods additional advertising is used to intensify the level of communication, a(n) ______ media schedule is being used. a) beating b) alternating c) flighting d) continuous with emphasis e) pulsing

e) pulsing

The primary goal of a media planner is to a) choose the best commercial spots available. b) develop a message that works well with the firm's target market. c) achieve the appropriate message reach and frequency. d) use a wide variety of media to ensure the entire target audience is exposed. e) reach the largest number of people in the target market within the budget constraints.

e) reach the largest number of people in the target market within the budget constraints.