chapter 16, Advertising Exam 3 - Kwon, Chapters 14-16 Quiz Questions, advertising, ADV EXAM 3, Advertising Chapter 11 LS and Quiz, advertising, ADV 205 Exam 2

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Tricon brand kitchenware airs a commercial each day between 5:00 p.m. and 5:30 p.m. during the local news broadcast. Tricon plans to continue advertising in this manner for an entire year. This is an example of which scheduling method?

Continuous

Considerations When Buying Magazine Space

- Readership - Cost - Mechanical Requirements - Closing Dates or Deadlines - Circulation and Rate-Card Information

Various Types of Advertising on TV

- Sponsorship - Participation - Spot Announcement - Infomercial - Product Placement

Affiliate Marketing (Program)

Contractual advertising program where a seller pays a manufacturer a % of the price of an item sold

Each time Anita buys dog food at Benson's Pet Store, she shows the cashier her Benson's customer card, which helps the store track Anita's purchases. For every $100 worth of merchandise she buys, Anita receives a Benson's gift card worth $10. Which term best describes the marketing efforts of Benson's?

Continuity program

CPM TV

Cost of reaching 1,000 people in a medium's audience; used to compare the cost of various media vehicles

CPM Magazine

Cost of reaching 1,000 people in a mediums audience *[TERM]* = ([Cost of ad space or absolute cost] / Circulation) x 1,000

Due to the controversies of cinema advertising, airing commercials before movie previews and feature presentations is becoming less common.

List brokers are paid to stuff and seal direct-mail envelopes, calculate postage, and sort mailers.

Direct mail is synonymous to direct marketing.

FALSE

Direct Selling

Jeanine is a sales representative for Nerium International, which makes beauty and health products. To demonstrate products, she visits customers where they live. Jeanine's main method for reaching clients is - Direct Selling - Telemarketing - Trade Show Promotion - Relationship Marketing - Social Media Marketing

What degree of biodegradability does the package have?

Kyra, who works for Top-Health Foods, has been given the task of designing the packaging for a new line of granola bars. Which of the following questions is least relevant to Kyra's task? - What is the desired image for the product? - What does the package communicate verbally? - What stand-out appeal does the package offer? - What does the package communicate nonverbally? - What degree of biodegradability does the package have?

Infomercial

Long-format TV commercial that may run as long as an hour - Can generate sales in excess of $1 billion

Magazine rates

Magazines and newspapers often give discounts. frequency discounts are based on the number of ad insertions, usually within a year; volume discounts are based on the total amount of space bought during a specific period. Most magazines also offer cash discounts (usually 2 percent) to advertisers who pay right away, and some offer discounts on the purchase of four or more consecutive pages in a single issue. In fact, many magazine publishers now negotiate their rates. According to Harold Shain, former Newsweek Inc. president, "Every piece of business is negotiated."13 Premium Rates Magazines charge extra for special features. Color printing normally costs 25 to 60 percent more than black and white. Bleed pages can add as much as 20 percent to regular rates, although the typical increase is about 15 percent. Second and third cover rates (the inside covers) typically cost less than the fourth (back) cover. For example, in 2016, People magazine charged $324,400 for a normal color page and $446,500 and $393,000 for the second and third covers, respectively, but it charged $482,000 for the fourth cover (the back of the magazine).14

Ad Impression

Possible exposure of the advertising message to one audience member

Sponsorship

Presentation of a TV program by a sole advertiser responsible for program content, cost of production, and advertising

Participation

Several advertisers share the sponsorship of a TV program (ex. the Superbowl)

Trade Deal (Push Strategy)

Short-term dealer discounts on the cost of a product or other dollar inducements

Banner Ad

Similar to online banner advertising

_____ are a feature of many newspapers that allows advertisers to test the comparative effectiveness of two different advertising approaches by running two different ads of identical size, but different content, in the same or different press runs on the same day.

Split runs

Network radio affords national advertisers great flexibility in their choice of markets, stations, airtime, and copy. t/f

false

Prime access is between 11:00 p.m. and 11:30 p.m. (Eastern and Pacific). t/f

false

The cable fees paid by subscribers represent about two-thirds of cable TV revenues; advertising makes up the remainder. t/f

false

A low brand development index (BDI) and high category development index (CDI) always indicate a problem for the brand.

false. If the brand has been on the market for some time, the low BDI raises a red flag; some problem is standing in the way of brand sales. But if the brand is new, the low BDI may be a positive sign. The high CDI may indicate the brand can grow substantially, given more time and greater media and marketing support.

A centralized network allows for continuous communication even if some connections stop working.

false. In a centralized system, if the hub is knocked out, receivers are left without information.

As an advertising medium, which of the following is one of broadcast television's greatest disadvantages?

high cost of air time. The cost of wide coverage, even at low rates, prices small and medium-size advertisers out of the market.

As an advertising medium, which of the following is one of broadcast television's greatest disadvantages?

high cost of airtime

The video you watched suggests that if Hyundai spent most of its money on cable advertising,

it still would have benefited from news coverage on the major networks.

Hundreds of highly targeted, upstart publications are showing up on the web, along with magazines created by users on sites such as Flipboard.

true

The larger the audience, the more a radio station can charge for commercial time. t/f

true

Magazines are the second-largest medium in terms of advertising revenue.

false

Advantages of Radio (as an advertising medium)

- Reach and Frequency - Selectivity - Cost-Efficiency - Timeliness - Immediacy - Local Relevance - Creative Flexibility

Readers Digest magazine has 200,000 subscribers and charges $10,000 for a full page ad. However, it is known that out of 200,000 subscribers, only 150,000 actually see and understand its ads. Calculate its cost per thousand.

$50

$50.00. The cost per thousand is the cost divided by the number of thousands of people in the audience.CPM = $10,000/(200,000/1,000) = $10,000/200 = $50 per thousand

Program Rating

% of TV households in an area that are tuned into a specific program (Channel 2 households) / (Total TV households)

Advertising Allowance (Push Strategy)

% of gross purchases or a flat fee paid to the retailer for advertising the manufacturer's product

HUT

% of homes in an area that have 1 or more TV sets turned on at any particular time (Households using TV) / (Total TV households)

% of homes with TV sets in use tuned to a specific program (Channel 2 households) / (Households using TV)

How Magazine Circulation is Measured and Rates Are Set

- Rate Base - Guaranteed Circulation - Circulation Audit - Primary Circulation - Vertical Publications - Horizontal Publications

How to Measure TV Audiences

- Rating Services - Sweeps - TV Households (TVHH) - Households Using TV (HUT) - Program Rating - Audience Share - Total Audience - Gross Rating Points (GRPs)

National Magazines

*[TERM]* that are distributed throughout a country

How to Measure Audience in Digital Interactive Media

- Ad Impression - Click Rate

Positive Effects of Sales Promotion on Brand Volume

- Adds value to brand - Maximizes sales - Helps build short-term market volume - Accelerates sales by motivating customers to try a new product or brand

Challenges of Direct Marketing

- Bad reputation of being sales oriented - Don't get the affiliation offered by some media - Clutter - Privacy concerns

Benefits of Direct Marketing

- Best way to develop a good database - Helps companies send discrete messages to individual customers/prospects - Offers accountability, convenience, precision, and flexibility - More private

Negative Effects of Sales Promotion on Brand Volume

- Can reduce profitability - Makes customers become "deal-prone" - Destroys brand equity - High cost - Can lead to a price war

Types of Magazines

- Consumer - Farm - Business - Local - Regional - National

Buying TV Time

- Cost Per Rating Point (CPP) - Cost Per Thousand (CPM)

Major Types of Newspaper Advertising

- Display Advertising - Classified Ads - Public Notices - Preprinted Inserts

Disadvantages of Digital Interactive (as an advertising medium)

- Does not offer mass-media effectiveness - Lack of accountability and security since it is not controlled by 1 entity - Requires constant attention and time on the part of the advertiser to engage consumers on a daily basis

Types of Digital Interactive Advertising

- Email Advertising - Viral Marketing - Affiliate Marketing - Sponsorship - Search Engine Ads

Advantages of Magazine Advertising

- Flexibility - Color - Authority and Believability - Permanence - Prestige - Audience Selectivity - Cost-Efficiency - Selling Power - Reader Loyalty - Extensive Pass-Along Readership - Merchandising Assistance

Disadvantages of Broadcast TV (as an advertising medium)

- High Production Cost - High Airtime Cost - Limited Selectivity - Brevity - Clutter - Zipping and Zapping (DVR users fast forward through commercials and people who change the channel during commercials)

Disadvantages of Personal Selling

- Labor-intensive - Time-consuming - Poor reputation/perception - Requires sales executives with the right personality attributes

Disadvantages of Magazine Advertising

- Lack of Immediacy - Shallow Geographic Coverage - Inability to Deliver Mass Audiences at a Low Price - Inability to Deliver High Frequency - Long Lead Time - Heavy Advertising Competition - High Cost Per Thousand (CPM) - Declining Circulations

Disadvantages of Newspaper Advertising

- Lack of Selectivity - Short Life Span - Low Production Quality - Clutter - Lack of Control - Overlapping Circulation

Disadvantages of Radio (as an advertising medium)

- Limitations of Sound - Segmented Audiences - Short-Lived and Half-Heard Commercials - Clutter

Advantages of Broadcast TV (as an advertising medium)

- Mass Coverage - Relatively Low Cost - Some Selectivity - Impact - Creativity - Prestige - Social Dominance

Advantages of Newspaper Advertising

- Mass Medium - Local Medium - Comprehensive in Scope - Geographic Selectivity - Timeliness - Credibility - Selective Attention - Creative Flexibility - An Active Medium - A Permanent Record - Reasonable Cost

Advantages of Personal Selling

- Personal and persuasive - Facilitates instant feedback - Flexibility to adjust the presentation - Helps in distribution of new products - Good for high-priced items

False

True or False: The majority of trade show customers learn about the show from trade publication ads.

Types of Magazines by Content

1. Consumer 2. Farm 3. Business

5 Types of Direct Marketing

1. Direct Sales 2. Direct Selling 3. Telemarketing 4. Direct-Response Advertising (Direct-Response Broadcast Advertising and Direct-Response Digital Interactive Media)

Types of Magazines by Geographic Scope

1. Local 2. Regional 3. National

Buying Radio Time (5 Dayparts)

1. Morning Drive (6-10am) 2. Daytime (10am-3pm) 3. Afternoon or Evening Drive (3-7pm) 4. Nighttime (7pm-midnight) 5. All Night (midnight-6am)

Distributed Networks

Characterized by many different hubs and links, which allows continuous communication even if some connections stop working

Lengthy Lead Times

A disadvantage of magazine advertising is - Low Prestige - Short Shelf Life - Cost Inefficiency - Weak Selling Power - Lengthy Lead Times

Rate Base

Circulation figure on which the publisher bases its rates

click rates

A second measurement, unique to the Internet, is the click rate or click-through rate (CTR). A click occurs when a visitor moves the mouse's pointer to a web link and clicks on the mouse button to get to another page. The click rate is the number of clicks on an ad divided by the number of ad impressions. In essence, marketers are measuring the frequency with which users try to obtain additional information about a product by clicking on an advertisement. Advertisers love CTR as a benchmark of ad effectiveness because it reflects a behavior. Charging for clicks is the key to Google's amazing success with search.

affidavit of performance

A signed and notarized form sent by a television station to an advertiser or agency indicating what spots ran and when. It is the station's legal proof that the advertiser got what was paid for.

Which of the following is most likely a goal of direct marketing?

A store visit by a customer

Spot Announcements

After watching Hawaii 5-0 and before Blue Bloods came on, Carol saw a 30-second commercial for a Taco Bell value meal, a 30-second commercial for Hyundai, a 60-second commercial for a movie, and several 15-second spots, one of which promoted another CBS show. The term used to describe the various national commercials that Carol saw is - Spot Announcements - Narrowcasting - Syndicated Spots - Integrated Advertising - Cume Spots

Pull Strategy

Activities aimed at inducing trial purchase and repurchase by consumers - Manufacturers to consumers

Pre-Printed Inserts

Advertisements printed in advance by the advertiser and inserted into a specific edition

Frequency Discounts

Advertisers earn this by running advertising repeatedly in a specific time period

Pricing methods for digital advertising

Advertising space on the Internet can be purchased in several different ways, as we will discuss later in the chapter. The most common means is the banner ad, typically billed on a cost-per-thousand basis determined by the number of ads displayed. On most web pages, the base banner rate pays for exposure on a rotating display that randomly selects which ads to show. Another augmentation to the general banner purchase is the keyword purchase, available on major search engines. Advertisers may buy specific keywords that bring up their ads when a user's search request contains these words. Keywords may be purchased individually or in packages that factor in the information categories and subcategories of a search engine site. Some publishers will charge their clients according to click-throughs—that is, when a user actually clicks on a banner ad Page 303to visit the advertiser's landing page. Although the CPM cost for simple impressions is considerably lower, this method is still unpopular with publishers. For advertisers involved in e-commerce, some publishers offer an affiliate marketing program whereby they charge a percentage of the transaction cost. For example, a site devoted to music reviews may have a banner link to an online music retailer. When consumers buy music from the retailer, the site publisher receives a percentage of the sale

Advantages of Digital Interactive (as an advertising medium)

Allows for greater *interactivity* between company and its stakeholders

Types of tv advertising

An advertiser who underwrites the cost of a program is engaging in sponsorship. In a sole sponsorship, the advertiser is responsible for both the program content and the total cost of production. Sponsorship is so costly that single sponsorships are usually limited to specials. Companies that sponsor programs (AT&T, Xerox, and Hallmark, for example) gain two important advantages. First, the public more readily identifies with the product(s) due to the prestige of sponsoring first-rate entertainment. Second, the sponsor controls the placement and content of its commercials. The commercials can be fit to the program and run any length the sponsor desires so long as they remain within network or station regulations. Most network TV advertising is sold on a participation basis, with several advertisers buying 30- or 60-second segments within a program. This enables them to spread their budgets and avoid long-term commitments to any one program. It also lets smaller advertisers buy a limited amount of time and still get the nationwide coverage they need. Network advertising also has several disadvantages: lack of flexibility, long lead times, inconvenient restrictions, and forced adherence to network standards and practices, not to mention high prices. Costs can run high for a spot Spot announcements run in clusters between programs. They are less expensive and more flexible than network advertising because they can be concentrated in specific regions of the country. Therefore, local Page 275businesses are frequently seen on spot schedules. An advertiser with a small budget or limited distribution may use spots to introduce a new product into one area at a time.

Which of the following statements about SMS is most likely false?

An end user needs a smartphone to receive an SMS. One benefit to marketers who generate sponsored short message system messages (text messages) is that the end user need not own a smartphone.

spot announcements

An individual commercial message run between two programs but having no relationship to either. Spots may be sold nationally or locally. They must be purchased by contacting individual stations directly.

Direct-marketing response can take the form of which of the following?

An inquiry

Public Notices

Announce legal changes in business, public governmental reports, notices by private citizens and organizations, and financial reports

Classified Ads

Arranged under subheads that describe the class of goods or the need the ads seek to satisfy

High cost of airtime

As an advertising medium, which of the following is one of broadcast television's greatest disadvantages? - Too much selectivity - Lack of immediacy - Minimal zipping and zapping - Absence of a media image - High cost of airtime

Dumb

Ass

Banner Ad

At Rediff.com, there is an ad for Covergirl cosmetics that stretches across the top of the page and directs you to its website at a click, where you can purchase Covergirl products. This Covergirl ad that appears on Rediff.com is an example of a(n) - Adword - Banner Ad - Sponsored Link - Button Ad - Microsite

Spot Announcement

Commercial message run between 2 programs but having no relationship to either - Purchased from individual stations directly - Less expensive and more flexible than network advertisement - Tend to have less viewers

Trade Promotion

Best Bread offers wholesalers and retailers a 20 percent discount as an incentive to stock, promote, and display Best Bread products. Best Bread is most likely using - Slotting Allowances - Social Networking - Network Marketing - Trade Promotion - Direct Selling

Andrew, a PR practitioner with MPX Enterprises, has been assigned the task of establishing and maintaining a corporate blog. Which of the following is the best advice for Andrew to perform this task?

Conduct a trial run by posting internally.

Local City Magazine

Caters to upscale, professional people interested in local arts, fashion, and business

Nearly all General Mills' products have Box Tops for Education labels that are worth 10 cents each. By clipping and sending collected labels back to General Mills, eligible schools earn cash for whatever they need, including books, playground equipment, and field trips. U.S. schools have earned more than $500 million from the Box Tops program, which is an example of:

Cause marketing

As a sponsor of Texas Rangers' baseball games, Southwest Airlines needs to determine the value of this event sponsorship. Which of the following would LEAST likely help Southwest measure its sponsorship results?

Changing other marketing variables during the sponsorship

Continuity Program

Diane has been a member of American Airline's frequent flyer club since the early 1980s. Every time she flies, she earns miles towards future flights and even cars and hotels. Since joining the program, she has flown around the world twice on her free miles. Which term best describes this marketing program? - Indirect Marketing Campaign - Continuity Program - Sponsorship Event - Customer Contest - Telemarketing

Social Media

Digital media that connect individuals

Which of the following statements about direct-mail advertising is most likely true?

Direct mail is typically targeted to the advertiser's best prospects.

Sandra, a consultant of Oriflame cosmetics, visits customers in their homes and hosts Oriflame parties to display and demonstrate products. Sandra is most likely involved in:

Direct selling

Farm Publications

Directed to farmers and their families or to companies that manufacture or sell agricultural equipment, supplies, and services

Sponsored SMS

Does not require the end user to own a smartphone

Product Placement

During an episode of Dancing with the Stars, the judges are shown drinking from Diet Coke cups. Which of the following does this most likely demonstrate? - Synergistic Promotion - Creative Licensing - Product Placement - Product Diversification - Narrowcasting

Email Advertising

Effective way to provide direct mail

Purchased keywords

Every time an Internet user types the words bouquet or flowers into Google, the user encounters ads from Ferns and Petals, a flower shop. Ferns and Petals has most likely - Developed a creative banner or button ad - Engaged in behavioral tracking methods - Joined an affiliated marketing program - Worked through an ad network - Purchased keywords

Buying 100 gross rating points means the message will appear on 100 percent of the posters.

Dont

Fail

A low brand development index (BDI) and high category development index (CDI) always indicate a problem for the brand.

False

Due to the high costs involved, sponsorships are declining in popularity.

False

In integrated marketing communications, advertising is the best vehicle for building credibility.

False

Media planners typically use psychographic classifications to define their target audiences and rely heavily on primary research to gather the data.

False

Reach refers to the number of people who are actually exposed to and consume the advertising.

False

The majority of trade show customers learn about the show from trade publication ads.

False

while selecting a candidate for the role of a salesperson, the recruiter will benefit more by selecting a person who is a good talker first and then a good listener over a person who is a good listener first and then a good talker.

False

Organizations prefer direct personal selling over telemarketing due to its low costs.

False Telemarketing costs a lot less money than personal selling.

Viral Marketing

Fashionandyou.com is a website that allows free membership and offers its members discounts for purchasing advertised products as well as $5 for every person they refer to the site. Which term best describes this approach? - Group Buying - Social Networking - Viral Marketing - E-mail Advertising - Rich Media Advertising

Which of the following is one of the reasons an advertiser would decide to use newspaper advertising rather than some other medium?

Geographic selectivity is a benefit of newspaper advertising. Newspapers have a short life span. Overlapping circulations is one of the disadvantages of newspaper advertising. Newspapers typically offer low production quality. Another disadvantage of newspaper advertising is clutter.

Push Strategy

Help get products into the dealer pipeline and accelerate sales by offering inducements to dealers, retailers, and salespeople - Manufacturers --> Retailers and Wholesalers --> Consumers - 3 Strategies

Which of the following is an advantage of using direct mail for advertising?

Highly personal

Centralized Networks

How media content was traditionally delivered. A hub, such as a TV station, a newspaper publisher, or a cable company distributes content to many receivers

Click Rate

How often people who see your ad end up clicking it - High rate = helpful and relevant ad

Methods for Scheduling Media

In a continuous schedule, advertising runs steadily and varies little over the campaign period. It's the best way to build continuity. Advertisers use this scheduling pattern for products consumers purchase regularly. Flighting alternates periods of advertising with periods of no advertising. This intermittent schedule makes sense for products and services that experience large fluctuations in demand throughout the year (tax services, lawn-care products, cold remedies). The advertiser might introduce the product with a four-week flight and then schedule three additional four-week flights to run during seasonal periods later in the year. Flighting is also often used by products and services to stretch limited budgets. The third alternative, pulsing, mixes continuous and flighting strategies. The advertiser maintains a low level of advertising all year but uses periodic pulses to heavy up during peak selling periods. This strategy is appropriate for products like soft drinks, which are consumed all year but more heavily in the summer. For high-ticket items that require careful consideration, bursting—running the same commercial every half-hour on the same network during prime time—can be effective. A variation is roadblocking, buying airtime on all three networks simultaneously. Chrysler used this technique to give viewers the impression that the advertiser was everywhere, even if the ad showed for only a few nights. Digital Equipment used a scheduling tactic called blinking to stretch its slim ad budget. To reach business executives, it flooded the airwaves on Sundays (on both cable and network TV channels) to make it virtually impossible to miss the ads

Display Ads

Includes copy, illustrations or photographs, headlines, coupons, and other visual components

Consumer Magazines

Information- or entertainment-oriented periodicals directed toward people who buy products for their own consumption

Viral Marketing

Internet version of word-of-mouth advertising e-mail

Which of the following statements is true about OOH media?

It communicates a brief message to mass audiences quickly and frequently.

What is the main reason behind the tremendous growth of direct marketing?

It is measurable and accountable

What is the main reason behind the tremendous growth of direct marketing?

It is measurable and accountable.

-Pros/Cons of Magazines

Magazines continue to offer a wide variety of benefits to advertisers, including flexible design options, prestige, authority, believability, and long shelf life. Magazines may sit on a coffee table for months and be reread many times. Consumers can read a magazine ad at their leisure; they can pore over the details of a photograph; and they can study carefully the information presented in the copy. This makes it an ideal medium for high-involvement think and feel products. However, like every medium, magazines also have a number of drawbacks (see My Ad Campaign 10-A, "The Pros and Cons of Magazine Advertising"). They are expensive (on a cost-per-reader basis), especially for color ads. And since they typically come out only monthly, or weekly at best, it's difficult to reach a large audience quickly or frequently. For these reasons, many advertisers use magazines in combination with other media—such as newspapers, which we'll discuss later in this chapter.

Buy Back Allowance (Push Strategy)

Manufacturer's offer to pay for an old product to take it off the shelf to make room for the new product

barter syndication

Marketing of first-run television programs to local stations free or for a reduced rate because some of the ad space has been presold to national advertisers.

Jasmine, a media planner, is preparing a print campaign for a new brand of headphones. Jasmine is currently trying to determine the best size and style of the print ads to convey the advertising message. Which of the five Ms is the focus of Jasmine's attention?

Mechanics

Kim, who works in the marketing department at TDX Manufacturing Inc., is responsible for negotiating and contracting the purchase of advertisement space and time in print media. Kim is most likely a(n):

Media buyer

search, adword, adsense

Most people looking to find information on the Web use a search engine. Search engines are websites that allow people to type a word or phrase into a text box and quickly receive a listing of information on a search-results page adword- Do a search on Google and you will notice that search results are not the first thing you encounter on the results page. The first listings are in a light-blue shaded area that is described as "Sponsored Links." These sponsored links are not search results, but paid listings. adsense- Google's other major ad program is AdSense. Websites that use AdSense set aside a portion of pages for Google text ads. The ads themselves are selected by Google software and inserted automatically, without any input from the sponsoring site. The revenue model for the AdSense program is very similar to AdWords. Advertisers pay Google only when Web users click the link and visit the sponsor sites. In this case, the owner of the site also gets revenue. For popular websites this can generate a great deal of revenue, and it is thus a powerful incentive for site owners to participate in the Google program.

Show producers sending direct mail

Most trade-show traffic results from - Show producers sending direct mail - Associations sending out mailings - Marketers using penetration pricing - Marketers placing trade publication ads - Exhibitors using network marketing

_____ radio provides national and regional advertisers with simple administration and low effective net cost per station.

Network

Pros/Cons of Newspapers

Newspapers offer advertisers many advantages. One of the most important is timeliness; an ad can appear very quickly, sometimes in just one day. Newspapers also offer geographic targeting, a broad range of markets, reasonable cost, and more. But newspapers suffer from lack of selectivity, poor production quality, and clutter. And readers criticize them for lack of depth and follow-up on important issues.

Offer advertising space at contract rates

Newspapers that offer volume discounts are most likely to - Avoid offering advertising space at open rates - Offer advertising space at contract rates - Offer a very low rate for a one-time insertion - Offer advertising space only at flat rates - Avoid situations that could give rise to charging a short rate

Guaranteed Circulation

Number of copies of a magazine that the publisher expects to sell

TV Households

Number of households in a market area that own TV sets

Imagery Transfer

One advantage of running a full advertisement on TV and then converting the audio into a radio spot is _____, where 75 percent of consumers report replaying the TV spot in their minds as they hear the radio spot. - Gross Impressions - Cumes - Imagery Transfer - ROS - Makegoods

Is less efficient at building brand image than mass media

One of the main disadvantages of direct marketing is that it - Does not offer accountability - Does not build customer relationships - Provides an intangible customer response - Is a nonmeasurable and inflexible form of media - Is less efficient at building brand image than mass media

Product Placement

Paying a fee to have a product prominently displayed in a movie or TV show (ex. American Idol judges with their Coke cups) - Minimize impact of commercial avoidance - Help link products with popular characters - Help avoid credibility issues that surround commercials

Mobile Advertising

Phone is the only truly portable and personally identifiable medium - Banner Advertising - Sponsored SMS

Primary vs secondary readership for magazines

Primary circulation represents the number of people who buy the publication, either by subscription or at the newsstand. Secondary (or pass-along)readership, which is an estimate determined by market research of how many people read a single issue of a publication, is very important to magazines. Some have more than six readers per copy. Multiplying the average pass-along readership by, say, a million subscribers can give a magazine a substantial audience beyond its primary readers.

first-run syndication

Programs produced specifically for the syndication market.

Loyalty Program

Programs that reward customers with discounts and free products in return for frequent and continuous patronage. Consumer purchases are tracked on a company's database

An ad for L'Oreal shampoo runs during the TV show Grey's Anatomy. The total number of different people exposed at least once to the L'Oreal commercial is the _____.

Reach

Kyra purchases beads from a local retailer and manufactures and creates different kinds of jewellery out of them and sells it to her friends and their circle. However, she does not have a shop and a brand name. It can be said that Kyra is a:

Resellers are people who buy the product, add value, and resell it.

Outdoor advertising offers the lowest cost per exposure of any major advertising medium.

Promotional items are frequently distributed at trade shows or employee events to improve the perception of a business.

Which term refers to a radio advertising package that guarantees a certain percentage of spots in the better dayparts?

TAP

Which term refers to a radio advertising package that guarantees a certain percentage of spots in the better dayparts?

TAP. Most stations offer a total audience plan (TAP) package rate, which guarantees a certain percentage of spots in the better dayparts if the advertiser buys a package of time.

The increase in the 'money-rich' and 'time-poor' families in America has led to the increased use of direct marketing tools.

TRUE

Video alternatives to TV commercials

TV product placements occur when advertisers showcase their brands within television programming rather than commercials. Most people who've watched the popular show American Idol can't help but notice the prominent Coke cups placed in front of the Page 277judges. An entire episode of the ABC comedy Modern Family revolved around the Apple iPad. While these are some of the most obvious examples of product placements, advertisers such as Reynolds (Top Chef), Ford Fusion (New Girl), and Hyundai Tuscon (Walking Dead) have invested heavily in product placements. Viewers may not even be aware just how frequently product placements appear on television.

Business Magazines

Target readers include: - Trade publications - Industrial magazines - Professional Journals

Regional Publications

Targeted to a specific area of the country

It is known that 69 percent of the households in Pennsylvania own television sets. This percentage is represented by:

Television households

Types of television media

Television networks and stations are available to advertisers in four principal forms: broadcast, cable, digital, and satelite. Broadcast networks can reach audiences by transmitting electromagnetic waves through the air across some geographic territory. Cable networks reach audiences exclusively through cable or satellite systems. Digital formats, such as Hulu and CBS All Access, afford consumers the opportunity to watch shows on demand.

Ad impressions

The IAB originally defined an ad impression as "an opportunity to deliver an advertising element to a Web site visitor." When a user loads a web page with ads on it, the browser will pull the advertisement from its host ad server and bring it up as a banner, button, or interstitial. The number of ad requests received can then be translated into the familiar cost form. The problem with this definition, from the point of view of advertisers and agencies, is that the advertiser is not guaranteed that a user will ever see an ad.

Google and Internet Search

The Internet is a global network of computers that communicate with one another through protocols, which are common rules for linking and sharing information. Most people looking to find information on the Web use a search engine. Search engines are sites that allow people to type a word or phrase into a text box and then quickly find information. Brin and Page's company, Google, is at present the most popular destination on the Web, reaching an astonishing 40 percent of all Web users each day.5 Search advertising revenues generate billions in revenue for Google, and in fact, represent the single largest category of ad expenditures in digital interactive media.

Sponsorship

The Super Bowl's web page exclusively features IBM's logo and links to IBM products during the event. IBM pays the NFL $1 million to have their brand featured on the site. Which term best describes this arrangement? - Sponsorship - Niche Marketing - Click-Through - Rich Mail - Viral Marketing

off-network syndication

The availability of programs that originally appeared on networks to individual stations for rebroadcast.

Audience size and message weight (advertising impression, pass-along rate, gross impressions)

The basic way to express audience size is simply to count the number of people in a vehicle's audience. This is what media research firms like Nielsen do for broadcast media, typically using a statistical sample to project the total audience size. For print media, firms like the Audit Bureau of Circulations verify a vehicle's subscribers and newstand sales (the circulation) and then multiply by the estimated number of readers per copy (RPC) to determine the total audience. RPC takes into account the pass-along rate, the number of people who read a magazine or newspaper without actually buying it. For example, most households subscribe to a single issue of a newspaper, even though multiple family members read it. Media planners often define media objectives by the schedule's message weight, the total size of the audience for a set of ads or an entire campaign, because it gives some indication of the exposure of the campaign in a given market. There are two ways to express message weight: gross impressions and gross rating points. If planners know the audience size, they can easily calculate the number of advertising impressions in a media schedule. An advertising impression is a possibleexposure of the advertising message to one audience member. It is sometimes referred to as an opportunity to see (OTS). Why? Because when a newspaper or magazine is delivered or bought, that counts as an impression. It cannot be determined whether the individuals who received those vehicles actually saw any particular ad. By multiplying a vehicle's total audience size by the number of times an advertising message is delivered during the period, planners arrive at the gross impressions, or potential exposures, possible in that vehicle. Then, by summing the gross impressions for each medium used, they know the total gross impressions for the schedule

BDI

The brand development index (BDI) indicates the sales strength of a particular brand in a specific market area. It compares the percentage of the brand's total U.S. sales in an area to the percentage of the total U.S. population in that area. The larger the brand's sales relative to the area's percentage of U.S. population, the higher the BDI and the greater the brand's sales development.

Audience measurements

The companies that measure the program audiences of TV and radio stations for advertisers and broadcasters are called rating services. These firms pick a representative sample of the market and furnish data on the number and characteristics of the viewers or listeners. Companies subscribe to a service and use it as a basis for planning, buying, or selling media advertising. At the local level, Nielsen surveys 1.6 million households. Household members record their viewing habits in diaries. Four times each year, during the sweepsmonth-long rating periods, Nielsen collects and processes the data. This information is used by networks and local stations to determine how much they can charge for advertising on their shows. Television rating services define unique geographic television markets to minimize the confusion of overlapping TV signals. The Nielsen station index uses the term designated market areas (DMAs) for geographic areas (cities, counties) in which the local TV stations attract the most viewing.

designated market areas (DMAs)

The geographic areas from which TV stations attract most of their viewers.

third-party servers

Third-party ad servers deliver ads from one central source, or server, across multiple Web domains, allowing advertisers the ability to manage the rotation and distribution of their advertisements. The best-known companies are DoubleClick, owned by Google, and Atlas DMT, owned by Microsoft. These companies allow advertisers to monitor the performance of their buys on a daily basis all the way down to conversion or sales. By placing a line of code on the last page of the sales process, DoubleClick can match the user back to the last advertisement they saw, via the cookies placed on the user's computer, and credit that advertisement with the sale. This allows the agency to understand Internet metrics from advertising to sales in near real time. This hyper-accountability is what ultimately brought the online ad industry out of the dot-com crash of the early 2000s—marketers could evaluate their Web spending's impact on the company's bottom line.

Mobile Advertising

The iPhone has increased data plan usage, or non-voice-related consumption over the carriers' networks. iPhone users are heavy users of video and mobile TV.8 People use their phones to download applications and games, surf the Web, and send multimedia messages. The appeal for advertisers is that the phone is the only truly portable and personally identifiable medium. And unlike most other media, when consumers view an ad on their phone that they like, they can buy right away. Large numbers of people already shop on the phone now. The other form of advertising and the one that represents the largest inventory is sponsored SMS (short message service). One benefit to marketers who generate these ads is that the end user need not own a smartphone. Almost any mobile device can receive texts. Companies like 4INFO, in the United States, offer news, horoscopes, and sports scores, among other things, for free to users via SMS, and advertisers sponsor these messages. The carriers have set up very strict guidelines in the use of SMS and act as a gatekeeper for all messages that go over their networks in an effort to reduce SMS spam. A smartphone user can respond to an SMS ad, via a link, at a mobile web page.

Social Media

The importance of social media can be seen by the fact that Facebook is beginning to challenge Google as the most popular destination on the Web. But what is social media? OnlineMatters defines social media as "any form of online publication or presence that allows end users to engage in multi-directional conversations in or around the content on the website.

program rating

The percentage of TV households in an area that are tuned into a specific program.

Households using TV (HUT)

The percentage of homes in a given area that have one or more TV sets turned on at any particular time is expressed as households using TV (HUT). If there are 1,000 TV sets in the survey area and 500 are turned on, HUT is 50 percent (500/1,000

households using TV (HUT)

The percentage of homes in a given area that have one or more TV sets turned on at any particular time. If 1,000 TV sets are in the survey and 500 are turned on, the HUT figure is 50 percent.

audience share

The percentage of homes with TV sets in use (HUT) tuned to a specific program.

The number of people who watched all or part of a science fiction movie that ran from 1:00 a.m. to 3:00 a.m. was 20,000. An estimated 40,000 televisions were on at that hour even though there are 200,000 households with sets in the area. Which of the following statements accurately describes this situation?

The program rating equals 20,000/200,000.

The program rating equals 20,000/200,000. To calculate the program rating, you will need both the number of sets tuned to a specific program (20,000) and the total number of households with televisions in an area (200,000). The audience share equals the number watching (20,000) by the number of turned on televisions (40,000).

Reach

The term reach refers to the total number of different people exposed, at least once, to a medium during a given period of time, usually four weeks

gross rating points (GRPs)

The total audience delivery or weight of a specific media schedule. One rating point equals 1 percent of a particular market's population.

Network Marketing

Tia, an Amway sales consultant, primarily works to recruit new Amway distributors who will buy Amway products at wholesale and consume them personally. Tia is most likely involved in - Selling Loyalty Programs - Services Marketing - Network Marketing - Social Marketing - Viral Marketing

CDI

To determine the strength of the whole product category, media planners use the category development index (CDI), which works on the same principle as the BDI and is calculated in much the same way. The combination of BDI and CDI can help the planner determine a media strategy for the market (see Exhibit 14-10). In our example, a low BDI (under 100) and a high CDI (over 100) in Los Angeles indicate that the product category offers great potential but the brand is not selling well (low market share). This may represent a problem or an opportunity. If the brand has been on the market for some time, the low BDI raises a red flag; some problem is standing in the way of brand sales. But if the brand is new, the low BDI may be a positive sign. The high CDI may indicate the brand can grow substantially, given more time and greater media and marketing support. At this point, the media planner should assess the company's share of voice (discussed in Chapter 7) and budget accordingly

Frequency(Average Frequency)

To express the number of times the same person or household has an opportunity to see a message—a radio spot, for example—in a specified time span, media people use the term frequency. Whereas reach measures the breadth, frequency measures the intensity of a media schedule, based on repeated exposures to the vehicle or the program. Frequency is important because repetition is the key to learning and memory. Frequency is calculated as the average number of times individuals or homes are exposed to the vehicle during a specific period of time. For instance, suppose in our hypothetical 100,000-person market that 20,000 people tune in to WKKO and have three OTSs during a four-week period, and another 20,000 have five OTSs.

Database Marketing

Tracking and analyzing the purchasing patterns of specific customers in a computer database and then targeting advertising to their needs

For magazines, the rate base is the circulation figure on which the publisher bases its rates.

True

Hundreds of highly targeted, upstart publications are showing up on the web, along with magazines created by users on sites such as Flipboard.

True

Making sure that a customer's goods are delivered on time is an important aspect of personal selling.

True

Media objectives and strategies determine how the communications goals will be accomplished through the selection of media.

True

One of the main advantages of direct response media is that it can be more private than mass media.

True

The basic way to express audience size is simply to count the number of people in a vehicle's audience.

True

The increase in the number of "money-rich" and "time-poor" families in America has led to the increased use of direct marketing tools.

True

When writing a news release, the most important information should be provided first, and text should be as factual and brief as possible.

True

True or False: Cable networks are often more specialized in their offerings and therefore reach selective niches as compared to broadcast networks.

True

True or False: For magazines, the rate base is the circulation figure on which the publisher bases its rates.

True

True or False: Hundreds of highly targeted, upstart publications are showing up on the web, along with magazines created by users on sites such as Flipboard.

False

True or False: In the United States, most newspaper advertising revenue comes from national advertisers, such as department stores.

False

True or False: Marketers like social media because it allows them to speak without listening.

True

True or False: The larger the audience, the more a radio station can charge for commercial time.

Types of Newspaper Advertising

Type of newspaper advertising that includes copy, illustrations or photographs, headlines, coupons, and other visual components. display advertising includes copy, illustrations or photos, headlines, coupons, and other visual components—such as the ads for theVillage Voicediscussed earlier. Display ads vary in size and appear in all sections of the newspaper except the first page of major sections, the editorial page, the obituary page, and the classified advertising section. Classified ads provide a community marketplace for goods, services, and opportunities of every type, from real estate and new-car sales to employment and business opportunities. For a nominal fee, newspapers carry legal public notices of changes in business and personal relationships, public governmental reports, notices by private citizens and organizations, and financial reports. These ads follow a preset format. Like magazines, newspapers carry preprinted inserts. The advertiser prints the inserts and delivers them to the newspaper plant for insertion into a specific edition. Insert sizes range from a typical newspaper page to a double postcard; formats include catalogs, brochures, mail-back devices, and perforated coupons.

CPP TV

Used to determine which broadcast programs are the most efficient in relation to the target audience by dividing the cost of the show by its expected rating

A piece of publicity that is designed to be aired as a news story is known as a(n):

Video news release

Search Engines

Web sites that are devoted to finding and retrieving requested information from the Web

Kyra, who works for Top-Health Foods, has been given the task of designing the packaging for a new line of granola bars. Which of the following questions is LEAST relevant to Kyra's task?

What degree of biodegradability does the package have?

Low Cost

What is a characteristic of cable TV advertising? - Wide Reach - Low Cost - Infrequent Zipping - Limited Flexibility - High Production Quality

Cost-Efficiency

What is a characteristic of radio advertising? - National Relevance - Cost-Efficiency - Poor Reach - An Absence of Clutter - Minimal Segmentation

It is measurable and accountable

What is the main reason behind the tremendous growth of direct marketing? - It promotes e-commerce - It is highly cost effective - It is measurable and accountable - It can be directed to specific demographic groups - It is a part of the IMC programs of all large companies

What is the most cost effective direct marketing strategy?

Click-Through

Whenever someone visits the website for The Missoulian (a local newspaper in Missoula, MT) and clicks an ad to go to the sponsor's site, the sponsor is charged $.20 for the click. The Missoulian is using the _____ method of charging for advertising - Keyword Purchase - Banner Purchase - Impression - Click-Through - Click Rate

Space on the Internet is vast and inexpensive

Which of the following best explains the difference between digital interactive and traditional media? - Space on traditional media is unlimited - Space on the Internet is vast and inexpensive - Digital media is more expensive than traditional media - Traditional media provides for greater creative opportunities when compared to digital media - Traditional media audiences create and consume content unlike the audiences of digital media

Cable Companies

Which of the following is a primary advertiser in U.S. newspapers? - Legal Companies - The Health Care Industry - Cable Companies - Educational Institutions - The Hospitality Industry

A Junior Unit

Which of the following is an example of a less expensive form of magazine advertising that involves placing an ad in unusual places or dramatically across spreads? - A Fourth Cover Position - A Cover Position - A Bleed - A Market Position - A Junior Unit

Engaging With Consumers

Which of the following is most likely the key to success for a firm that uses social media for advertising purposes? - Seeking Referrals - Monitoring Clicks - Minimizing Spam - Engaging With Consumers - Protecting Corporate Security

It offers geographic selectivity

Which of the following is one of the reasons an advertiser would decide to use newspaper advertising rather than some other medium? - There are no overlapping circulation problems - It has a long life span - It offers high production quality - It offers geographic selectivity - It has no clutter

Bulk Discounts

Which of the following offer advertisers decreasing rates as they use more inches? - Short Rates - Combination Rates - Bulk Discounts - Earned Rates - Frequency Discounts

An end user needs a smartphone to receive an SMS

Which of the following statements about SMS is most likely false? - SMS stands for Short Message System - Carriers have set up guidelines to reduce SMS spam - An end user needs a smartphone to receive an SMS - A smartphone user can respond to an SMS ad via a link - Some companies offer sports scores and news free to users via SMS

With sponsored links, advertisers pay only when a user clicks on the link

Which of the following statements is most likely true about sponsored links? - Sponsored links are organic in nature - Sponsored links search results are based on PageRank - With sponsored links, advertisers pay only when a user clicks on the link - Sponsored links are search results not paid for by the advertiser - With sponsored links, advertisers pay for impressions but not performance

Which of the following statements is most likely true about sponsored links?

With sponsored links, advertisers pay only when a user clicks on the link. One important characteristic of sponsored links is that advertisers do not pay for impressions, a common practice with banner ads. Instead, advertisers pay only when a user clicks on the link and visits the sponsor's site. This performance-based pay-per-click model has proven very attractive to advertisers.

Which of the following is an example of a less expensive form of magazine advertising that involves placing an ad in unusual places or dramatically across spreads?

a junior unit

Gross rating points (GRPs)

are the total rating points achieved by a particular media schedule over a specific period. For example, a weekly schedule of five commercials on programs with an average household rating of 20 would yield 100 GRPs.

banner ad. A banner is a little billboard that spreads across the top or bottom of the web page. When users click on the banner, it sends them to the advertiser's site or a buffer page.

Lola noticed that all the ads in the monorail, though different from each other, were advertising different Coca-Cola products, including Diet Coke, Caffeine-Free Coke, and Cherry Coke. This is an example of which of the following types of transit advertising?

brand trains

Which of the following offer advertisers decreasing rates as they use more inches?

bulk discounts

Which of the following offer advertisers decreasing rates as they use more inches?

bulk discounts. Bulk discounts refer to newspapers offering advertisers decreasing rates (calculated by multiplying the number of inches by the cost per inch) as they use more inches.

Which of the following is a primary advertiser in U.S. newspapers?

cable companies

Which of the following is a primary advertiser in U.S. newspapers?

cable companies. Retail, cellular phone, and cable companies are the primary advertisers in newspapers in the United States.

Each month, sales consultants of Oriflame Cosmetics receive a 100-page booklet that contains product pictures, descriptions, and item numbers. The booklets are used by sales consultants and customers to order products by mail or over the telephone. The booklets are most likely

catalogs.

click-through. Some publishers will charge their clients according to click-throughs—that is, when a user actually clicks on a banner ad to visit the advertiser's landing page.

Combination rates are often available for placing a given ad in (1) morning and evening editions of the same newspaper; (2) two or more newspapers owned by the same publisher; and (3) in some cases, two or more newspapers affiliated in a syndicate or newspaper group.

combination rates

Fortis Manufacturing provides uniforms and equipment for a local youth baseball team. This is most likely an example of:

community involvement.

continuous. In a continuous schedule, advertising runs steadily and varies little over the campaign period.

-Enhanced tracking

cookies, third-party, behavioral

While driving home, Mary notices an IBM billboard that states: "Smart Ideas for Smarter Cities." Since the billboard does not refer to any specific IBM products, it is most likely an example of:

corporate advertising

Cost per point (CPP)

cost divided by rating By calculating CPP, the media buyer can compare the cost of a rating point (reaching 1 percent of TVHH) from one program or network to another. That's good information for beginning negotiations. But rating points relate to the whole market. The real important figure is the cost of reaching 1,000 prospects in your target market. That's why the CPM should be calculated against the size of your target audience, not the whole market. The lower the cost per 1,000 people in your target audience, the more efficient the show is at reaching your real prospects.

CPM - for programs

cost divided by thousands of people

What is a characteristic of radio advertising?

cost-efficiency

What is a characteristic of radio advertising?

cost-efficiency. Radio offers its reach, frequency, and selectivity at one of the lowest costs per thousand, and radio production is inexpensive. However, radio is cluttered and has segmented audiences.

Cost per rating point (CPP)

cost/rating

cost per thousand (CPM)

cost/thousands of people

One of the main disadvantages of direct marketing is:

it is less effective in building a brand image for the products when compared to mass media.

What term do media people use to describe the quality of exposure?

effective reach. Media people use the term effective reach to describe the quality of exposure. Effective frequency is defined as the number of times a person must see or hear a message before it becomes effective.

Which of the following is most likely the key to success for a firm that uses social media for advertising purposes?

engaging with consumers. Any advertiser who commits to digital interactive should be prepared to stay engaged with target audiences. While relationships can be automated on some websites, it is not possible, or desirable, in social media. The bottom line: the online marketer must be prepared to engage consumers on a daily basis. Referrals, spam, and security are less important.

Compared to other types of ads, Hyundai and its agency knew that by running spots on television viewers would see the ads as the most

exciting. influential. authoritative. persuasive. *All of the answers are correct.*

In the United States, most newspaper advertising revenue comes from national advertisers, such as department stores.

false

Media planners should consider the Internet synonymous with mass media because measurements such as ratings points and share of audience are the same in both.

false. Media planners cannot think of the Internet in mass media terms. Cost per thousand, ratings points, and share of audience don't really mean the same things in the interactive world.

Media planners typically use psychographic classifications to define their target audiences and rely heavily on primary research.

false. Media planners typically use geodemographic classifications to define their target audiences. Media planners rely heavily on secondary research sources, such as Arbitron and Nielsen Media Research, which provide basic demographic characteristics of media audiences.

Marketers like social media because it allows them to speak without listening.

false. One of the many attributes of social media is openness. Smart marketers understand that social media foster interactions that go beyond promotion or advertising. Social media go beyond promotion because companies must listen as much as they speak. But for all of the difficulties, marketers gain one enormous benefit: they are put back in touch with their customers, which can be a very good thing.

Prime access is between 11:00 p.m. and 11:30 p.m. (Eastern and Pacific).

false. Prime access: 7:30-8:00 p.m. (Eastern and Pacific). Late news: 11:00-11:30 p.m. (Eastern and Pacific).

Reach refers to the number of people who are actually exposed to and consume the advertising.

false. Reach should not be confused with the number of people who will actually be exposed to and consume the advertising. It is just the number of people who are exposed to the vehicle and therefore have an opportunity to see or hear the ad or commercial.

Network radio affords national advertisers great flexibility in their choice of markets, stations, airtime, and copy.

false. Spot radio affords national advertisers great flexibility in their choice of markets, stations, airtime, and copy.

The cable fees paid by subscribers represent about two-thirds of cable TV revenues; advertising makes up the remainder.

false. The cable fees represent about one-third of cable TV revenues; advertising makes up the remainder.

Each month, Business Today publishes a news piece about an innovative product, service, or business. Such soft news is generally written by a freelance business writer and is known as a(n):

feature article

display advertising, sponsorships, email marketing, viral marketing

fff

local television stations ______ with the help of the "direct-from-the-factory" approach

get more programming control and greater profits

Which of the following has made locating and supervising billboards in any location across the world very easy?

global positioning systems

imagery transfer

imagery transfer. Radio enables advertisers to maintain strategic consistency and stretch their media dollars through imagery transfer, which is the process by which visual elements of a TV commercial are transferred into the consumer's mind by using a similar audio track in its radio counterpart.

One of the main disadvantages of direct marketing is that it:

is less effective at building brand image than mass media.

Which of the following is an advantage of using direct mail for advertising?

it can be highly personal. Direct mail is measurable, allows for an adaptable message length, and is highly personal. Responses are not necessarily immediate, and it is sometimes perceived as junk mail. Digital interactive is the fastest-growing medium.

Which of the following is an example of a less expensive form of magazine advertising that involves placing an ad in unusual places or dramatically across spreads?

junior unit. A less expensive way to use magazine space than a bleed or cover position is to place an ad in unusual places on the page or dramatically across spreads. One example is a junior unit, which is a large ad (60 percent of the page) placed in the middle of a page and surrounded with editorial matter.

A disadvantage of magazine advertising is

lengthy lead times.

A disadvantage of magazine advertising is

lengthy lead times. Magazine advertising has a high level of prestige, strong selling power, and cost efficiency. The selling power of magazines is proven, and the shelf life is long. However, long lead times of two to three months are common.

What is a characteristic of cable TV advertising?

low cost

What is a characteristic of cable TV advertising?

low cost. Many small companies get TV's immediacy and impact without the enormous expenditures of broadcast TV. Cable advertising can sometimes cost as little as radio. Many national advertisers find sponsorship attractive, since an entire cable series can cost less to produce than a single broadcast TV commercial.

On the purchase of merchandise worth $50 and above, any person would automatically become the member of 'Lifestyle' store, a supermarket, and receive a card with an exclusive customer number. Points are given to the members on each purchase which get accumulated in the card and can be redeemed over the bill value during their next purchase. It can be said that 'Lifestyle' is running a(n):

loyalty program.

Magazines have lost significant advertising revenue in recent years. Although they were the second-largest medium not long ago, magazines have fallen behind not only television, but also the Internet and newspapers.

magazines

An advertiser gets a sense of the _____ based on the number of TV households in a particular market

market's size

Bulletins

may be three-dimensional or embellished with cutouts.

Aiko is working on planning a campaign for Godiva chocolates. Currently, she is deciding whether to run a full page ad with bleed in magazine versions of the ad. She must also decide whether a similar, but smaller version of the ad would work for newspaper. Which of the five Ms is Aiko focusing on?

mechanics. Mechanics, one of the five Ms of the media mix—markets, money, media, mechanics, and methodology—refers to dealing creatively with the available advertising media options, which is print in this case. Whatever the media, mechanics are the physical attributes of the ad; the size, the space, the duration, and the style would all be elements of the ad's mechanics.

Khaty Ng specializes in negotiating and contracting with the media on behalf of her advertising agency, North. Khaty is a(n)

media buyer. The person in charge of negotiating and contracting with the media is called a media buyer. Media buyers often specialize in one medium or another, so there are print media buyers, spot TV media buyers, network media buyers, and so on.

To a media planner, TV shows such as Law and Order, Survivor, and The Amazing Race are best known as

media vehicles. Planners select media vehicles—particular magazines or shows—according to how well they deliver the message to an audience that most closely resembles the desired target consumer.

When you do a Google search for Burger King, you will come across two websites apart from its official website. One of them is BKCareers which is about jobs, careers, and franchise opportunities with Burger King. The second site is SubservientChicken.com that is part of Burger King's marketing campaign and features a person in a chicken costume who tries to do whatever you type in the box. When the SubservientChicken.com campaign launched, Burger King monitored the input and added new actions based on user requests, which gave people a reason to return to the site. Both these websites are examples of

microsites. A microsite is used as a supplement to a website. For advertisers, it is typically singular in focus and delivers on the current advertising message.

As seen in broadcast stations, when individuals act as sales and service representatives for a number of stations, it is called the ____ and alleviates a problem faced by spot advertising

national rep system

If Hyundai wanted to save money on its advertising buy, which choices below offer the most savings as compared to network advertising?

national spot announcements and cable advertising

_____ radio provides national and regional advertisers with simple administration and low effective net cost per station.

network. Network radio provides national and regional advertisers with simple administration and low effective net cost per station.

Radio and TV carry most of the national advertising in the United States, while the majority of newspaper advertising revenue comes from local advertising. Retail, cellular phone, and cable companies are the primary advertisers in newspapers.

newspaper advertising

Newspapers that offer volume discounts are most likely to

offer advertising space at contract rates.

Newspapers that offer volume discounts are most likely to

offer advertising space at contract rates. Newspapers that offer volume discounts have an open rate (their highest rate for a one-time insertion) and contract rates, whereby local advertisers can obtain discounts of up to 70 percent by signing a contract for frequent or bulk space purchases.

Which of the following is one of the reasons an advertiser would decide to use newspaper advertising rather than some other medium?

offers geographic selectivity

Magazine cost per thousand (CPM)- be able to calculate

page rate divided by (circulation/1000) by dividing the full-page rate by the number of thousands of subscribers:

Ryan is a consultant of Oriflame cosmetics. She visits her clients and friends along with the Oriflame catalogues and host kitty parties to display the various products and demonstrate their usage. It can be said that Ryan is involved in:

personal direct selling. Professors Robert Peterson and Thomas Wotruba define direct selling as face-to-face selling away from a fixed retail location.

In order to try and reach an all-time record for its premier, ads for the Marvel Comics Universe release Dr. Strange are run on all the major networks and cable stations across the country from 8:00 p.m. to 10:00 p.m., or during _____ time.

prime. Prime time runs from 7:00 p.m. to 10:00 p.m. Central Mountain Time or from 8:00 p.m. to 11 p.m. Eastern and Pacific Time.

A low brand development index (BDI) and high category development index (CDI) indicate that the:

product category offers great potential but the brand is not selling well.

During an episode of Dancing with the Stars, the judges are shown drinking from Diet Coke cups. Which of the following does this most likely demonstrate?

product placement

During an episode of Dancing with the Stars, the judges are shown drinking from Diet Coke cups. Which of the following does this most likely demonstrate?

product placement. Product placement occurs when advertisers (in this case, Coca-Cola) showcase their brands within television programming or films rather than during TV commercials.

In order to increase sales, many print and broadcast media companies are:

providing value-added services such as mailing lists.

Cable networks are often more specialized in their offerings and therefore reach selective niches as compared to broadcast networks. t/f

true

In order to increase sales, many print and broadcast media companies are

providing value-added services. In the battle for additional sales, many print and broadcast media companies developed "value-added" programs to provide extra benefits. Besides selling space or time, these companies now offer reprints, merchandising services, special sections, event sponsorships, and mailing lists.

Every time an Internet user types the words bouquet or flowers into Google, the user encounters ads from Ferns and Petals, a flower shop. Ferns and Petals has most likely

purchased keywords. One augmentation to the general banner purchase is the keyword purchase, available on major search engines. Advertisers may buy specific keywords that bring up their ads when a user's search request contains these words.

Newspapers and magazines are still trying to figure out how best to incorporate advertising into their new online ventures with new methods like

push downs. News organizations are information-rich, and much of the specialized information they don't run in the paper or the magazine fits perfectly with the online world's narrower interests. Hundreds of highly targeted, upstart publications are showing up on the web, along with magazines created by users on sites such as Flipboard. They are all, however, still trying to figure out how best to incorporate advertising into their new ventures. Initially, most ads were simply banners or pop-ups, but now online publications are offering pushdowns, floating ads, billboards, interstitials, videos, and more.

Newspapers and magazines are still trying to figure out how best to incorporate advertising into their new online ventures with new methods like

pushdown

With magazines, the rate base is the circulation figure on which the publisher bases its rates.

rate base

An ad for L'Oreal shampoo runs during the TV show Grey's Anatomy. The total number of different people exposed at least once to the L'Oreal commercial is the

reach. The term reach refers to the total number of different people exposed, at least once, to a medium during a given period of time, usually four weeks.

One common variation of display advertising is ______, which looks like editorial matter and may cost more than normal display advertising.

reading notices. Reading notices are typically more expensive than normal display advertising. They look like editorial matter. The word advertisement appears at the top of reading notices. The infomercial is used in broadcast media.

TV households (TVHH)

refers to the number of households that own television sets. The number of TVHH in a particular market gives an advertiser a sense of the market's size. Likewise, the number of TVHH tuned in to a particular program helps the advertiser estimate the program's popularity and how many people a commercial is likely to reach.

The TAB Out of Home Ratings system considers all of the following factors about an out-of-home display except

regional traffic patterns.

Types of digital interactive advertising

search, adword, adsense, display advertising, sponsorships, email marketing, viral marketing

To build traffic for a trade-show booth or exhibit, marketers:

send out personal invitations.

small text files stored on your computer when you visit certain websites. These cookies can keep track of whether a certain user has ever visited a specific site. This allows the website to give users different information depending on whether they are repeat visitors. Cookies also indicate the users' frequency of visits, the time of last visit, and the domain from which they are surfing. Additionally, cookies give marketers great insights into their campaigns on a daily basis, such as the number of times users call for an ad, time of day, type of browsers they use, whether or not they click, and so on.

Which of the following best explains the difference between digital interactive and traditional media?

space on the internet is vast and inexpensive. Network TV commercials average 30 seconds, which is a very small window, and that window is expensive, averaging in the hundreds of thousands of dollars. In contrast, space on the Internet is vast and inexpensive.

split runs. Many newspapers (and magazines) offer split runs so that advertisers can test the pulling power of different ads.

sponsorship. A form of advertising on the Internet that is growing in popularity is the sponsorship of web pages. Corporations sponsor entire sections of a publisher's web page or sponsor single events, such as a fishing tournament, for a limited period of time, usually calculated in months.

spot announcements.

spot announcements. National spot announcements are less expensive because they run in clusters between programs. Spot announcements vary in length from 10-, 15-, 30-, to 60-second commercials. Spot announcements offer the advertiser greater flexibility because commercials can be concentrated in desired markets.

Combination rates are often available for placing a given ad in two or more newspapers owned by the same publisher.

true

Alyona recently purchased a car. In her first auto loan statement, she was surprised to find a letter for a life insurance company offering her an affordable policy, which she could purchase by filling out her information, along with her credit card number, and mailing the reply card back. The letter is an example of a

statement stuffer.

John, a local florist in Harrisburg, wanted to invest in outdoor advertising before Valentine's Day. A local advertiser showed John a set of well-designed posters that looked very attractive and appealing. All John had to do was provide the name and contact information for his florist shop, and the advertising would be ready in minutes. The local advertiser most likely offered John a(n)

stock poster.

A way in which commercial rates can be negotiated

taking advantage of preemption rates

When The Simpsons is reported as having 20 rating in Montana, it means that 20 percent of TVHH tuned into the show. TVHH is a abbreviation for

television households. When we hear that a particular TV show garnered a 20 rating, it means 20 percent of the households with TV sets (expressed as television households or TVHH) were tuned in to that show

a disadvantage of participation advertising is that

the lead times are long

One common variation of display advertising is ______, which looks like editorial matter and may cost more than normal display advertising.

the reading notice

behavioral tracking

this new ability to track people's behavior on the Internet, has stirred considerable debate. Although software developers claim that the users are tracked anonymously with encrypted identification numbers, privacy advocates believe the marketing method is too invasive.

Joey Heavy Runner was surprised by an Amnesty International ad as he sat waiting for the bus. The ad covered one side of the transit shelter and highlighted domestic violence by changing from a happy looking couple to the man hitting his partner based on whether or not Joey was looking directly at the ad. This is innovative ad is an example of

transit shelter advertising

Although ad networks allow advertisers to gain maximum exposure, such networks are difficult to monitor.

true. Ad networks pool hundreds or thousands of web pages together and facilitate advertising across these pages. The advantage is that this allows advertisers to gain maximum exposure by covering even the smaller sites. The drawback is that such advertising is more difficult to monitor. Each site must be watched for traffic and content, which creates problems when trying to calculate costs.

Cable networks are often more specialized in their offerings and therefore reach selective niches as compared to broadcast networks.

true. Broadcast networks tend to reach masses of American consumers representing a cross section of the population, while cable networks tend to reach more selective niches. Television is still the most cost-effective way to deliver certain kinds of messages to large well-defined audiences.

Media objectives and strategies determine how the communications goals will be accomplished through the selection of media.

true. Media objectives and strategies flow from the advertising plan. They determine how the communications goals will be accomplished through the selection of media.

The larger the audience, the more a radio station can charge for commercial time.

true. Radio stations plan their programming carefully to reach specific audiences and to capture as many listeners as possible. The larger the audience, the more a station can charge for commercial time.

Ad requests are Internet ads that are actually delivered to the users' screen.

true. The AAAA prefers to define an ad request as an ad that is actually delivered to users' screens.

The basic way to express audience size is simply to count the number of people in a vehicle's audience.

true. The basic way to express audience size is simply to count the number of people in a vehicle's audience.

Candy Industry is a magazine targeted at businesses in the global chocolate and confectionary industry. It is an example of a

vertical publication.

Candy Industry is a magazine targeted at businesses in the global chocolate and confectionary industry. It is an example of a

vertical publication. Vertical publications are targeted to specific industries. Horizontal publications are business magazines that deal with a particular job function.

Late fringe

viewed most heavily by adults

early fringe

viewed most heavily by women

viral marketing. Viral marketing is the Internet version of word-of-mouth advertising. One of the keys to viral marketing success is to present an offer with real perceived value—one that people will want to share with one another.

syndication

when programs are sold on a station-by-station, market-by-markets basis, it is known as

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