ADV CH 8

51. Which element is essential to articulating a well-stated advertising objective? a. A time frame b. A budget c. An overview d. An evaluation

a. A time frame

92. (Scenario 8-5) The build-up analysis will also address costs not listed elsewhere, particularly those associated with advertising to the trade and doing specialized research. Which factor does this involve? a. Ancillary costs b. Production costs c. Media expenditures d. Promotional costs

a. Ancillary costs

55. Which budgeting method monitors the amount spent by significant competitors and then allocates an equal or proportionate amount as its advertising dollars? a. Share-of-voice approach b. Objective-and-task approach c. Advertising response function d. Percentage-of-sales approach

a. Share-of-voice approach

1. An advertising plan should be a direct extension of a firm's marketing plan. a. True b. False

a. True

11. Some argue that sales should not be set as an objective for advertising, since advertising is only one variable in an entire marketing mix and cannot be solely responsible for selling the product. a. True b. False

a. True

14. Objectives for advertising are measurable only in the context of quantifiable variables. a. True b. False

a. True

15. Well-stated objectives work best when they set a benchmark, specify a measurement method, and define a time frame. a. True b. False

a. True

16. When an ad agency is asked to recommend a budget to the client, it is usually the account executive who handles this. a. True b. False

a. True

17. A percentage-of-sales approach to budgeting is easy to understand and implement. a. True b. False

a. True

18. Share of voice, or share of market, is a method that bases an ad budget on whatever significant competitors are spending. a. True b. False

a. True

19. Share of voice is most often used when launching new products. a. True b. False

a. True

21. Every precaution should be taken to avoid having to radically alter a budget after it is submitted. a. True b. False

a. True

22. Intentions and expectations for advertising are embodied in the process of setting objectives. a. True b. False

a. True

23. There are two elements to the execution of an advertising plan: determining the copy strategy and devising a media plan. a. True b. False

a. True

26. When devising the evaluation stage of ad planning, it is determined how much time the agency has, how it will be graded, and what criteria will be applied when judging its efforts. a. True b. False

a. True

27. It is critically important for an advertiser and agency to align around evaluation criteria upfront. a. True b. False

a. True

28. Most marketers rely heavily on the expertise of an advertising agency. a. True b. False

a. True

29. An agency's crucial role is to translate the current market and marketing status of a firm and its advertising objectives into advertising strategy and, ultimately, finished advertisements and IBP materials. a. True b. False

a. True

4. The situation analysis of an advertising plan includes historical context as well as evaluation of the industry, the market, and the competition. a. True b. False

a. True

6. Bias is another name for one's subconscious guide for decision making and behavior. a. True b. False

a. True

7. A historical background is a key element in an advertising plan, one that should include the history of all main players, the industry, the brand, and the corporate culture. a. True b. False

a. True

8. The competition's strengths, weaknesses, tendencies, and any threats they pose are included in the competitor analysis. a. True b. False

a. True

63. The ways in which the creative objectives will be accomplished are described in the a. copy strategy section. b. build-up analysis. c. objective-and-task method. d. media plan.

a. copy strategy section.

74. (Scenario 8-2) Amazon.com began by facing a myriad of problems since its inception, with perhaps the biggest obstacle being the demise of hundreds of dot-com companies in the late 1990s and early 2000. Those dot-com companies that did survive initially had a difficult time making a profit, and over time a few began to face new competition. The issue as to who will supply online consumers has been continually evolving and changing since then. This type of information would most likely be noted in the section of an ad plan. a. historical context b. purchase intent c. market analysis d. budgeting

a. historical context

73. (Scenario 8-1) It is ultimately decided that the ad budget will base spending on what needs to be accomplished from a communications standpoint. This would be the: a. objective-and-task approach. b. percentage-of-sales approach. c. share-of-voice approach. d. response model approach.

a. objective-and-task approach.

35. An insurance company's researchers spend a lot of time and money trying to understand various agerelated markets, from WWII veterans and baby boomers to the younger generations. Based on their findings, the target markets that are ultimately chosen based on such demographics should be defined in the section of the ad plan. a. situational analysis b. competitor analysis c. executive summary d. strategy

a. situational analysis

83. (Scenario 8-3) You decide that as soon as you are financially able, you will hire an agency to put together an advertising plan for you. Unfortunately, you realize that even if you do hire an agency, you will still have to provide the agency with statements regarding: a. the value proposition and the marketing mix. b. the budget recommendation and the ad strategy. c. the competition and the media plan. d. the ad design and ad placement.

a. the value proposition and the marketing mix.

80. (Scenario 83) There is one thing you'd like to see as a result of your ad campaign—you want local residents to not only know your name, but to think of it first when they need a hardware store. When you think of hardware, think of Springfield. Which concept defines this objective? a. top-of-the-mind awareness b. purchase intent c. trial usage d. repeat purchase

a. top-of-the-mind awareness

44. To determine the public's knowledge of a product, a marketer asks consumers to name five breakfast cereals. Cheerios is the cereal most often listed first, so it is considered to show a. top-of-the-mind awareness. b. purchase intent. c. ethnocentrism. d. market awareness.

a. top-of-the-mind awareness.

66. A canned soup manufacturer and its agency are nailing down the responsibilities of each side as they begin their planning effort. In a nutshell, the agency will a. translate goals into strategies and create promotions and finished ads for the product. b. decide how they should grade themselves. c. leave it up to the client to decide the advertising plan. d. determine how long they will have to achieve the agreed on objectives.

a. translate goals into strategies and create promotions and finished ads for the product.

60. What is the first step in implementing the objective-and-task approach? a. Identifying last year's sales b. Determining costs based on a build-up analysis c. Comparing expenditures against industry benchmarks d. Calculating a marginal analysis

b. Determining costs based on a build-up analysis

10. Few companies use purchase intent as the criterion in setting ad objectives because it tends to be much less accurate in predicting sales than other factors, such as attitude. a. True b. False

b. False

12. Viewing advertising strictly from a communications perspective restricts marketers to a narrower range of advertising strategies. a. True b. False

b. False

13. The tension between those who advocate sales objectives and those who push communications objectives precludes a marketer from using both types when developing an overall plan for a brand. a. True b. False

b. False

2. An advertising plan is designed to create sales strategies for the client in a process that is totally separate from the overall marketing plan. a. True b. False

b. False

20. The method of budget setting that focuses on the relationship between spending and advertising objectives is the margin-analysis approach. a. True b. False

b. False

24. The many forms of brand promotion that will supplement the advertising effort do not need to be spelled out in the ad plan, since this would add too much length and detail. a. True b. False

b. False

25. It is at the evaluation stage of an advertisement plan where all the money is spent and where so much money could be saved. a. True b. False

b. False

3. The initial section of the ad plan should be a budgeting section that directly states what it will cost to implement this plan. a. True b. False

b. False

5. Ethnocentrism is the tendency to view and value things from the perspective of another individual's culture. a. True b. False

b. False

9. Advertisers should set only one objective in an advertising plan. a. True b. False

b. False

45. A common objective for many clients is to create, change, or reinforce attitudes. Sometimes a number of logical, well-written arguments can make a strong case and ultimately influence attitudes. What method of changing attitudes does this represent? a. Repeat purchase approach b. Information-dense approach c. Brand-switching approach d. Visual imagery approach

b. Information-dense approach

68. Like many companies today, a young but growing electronics retailer knows it needs help. If it is like most clients, in what two areas does it need the most help from an ad agency? a. Creating value for the product, and setting objectives b. Integrating the brand within the media, and generating new ideas c. Defining the product, and creating brand awareness d. Creating the budget, and writing the copy

b. Integrating the brand within the media, and generating new ideas

30. Apple used a wide array of options to create interest and communicate the value proposition for its brands like the iPad and iPhone. Which of the following would NOT be included in Apple's advertising plan? a. Billboard ads b. Manufacturing schedule c. Product placement d. Promotional events

b. Manufacturing schedule

87. (Scenario 8-4) The marketers are keenly aware that many budgeting methods fail to address the objectives originally set and relate these to the dollars to be spent. Which budgeting technique does American Express ultimately most likely decide to use, based on this awareness and the information in this scenario? a. Share-of-market approach b. Objective-and-task approach c. Percentage-of-sales approach d. Share-of-voice approach

b. Objective-and-task approach

47. A frozen dessert manufacturer surveys consumers, asking them if they plan on buying desserts at one of its outlets soon. What is the manufacturer researching? a. Brand awareness b. Purchase intent c. Self-reference criterion d. Top-of-the-mind awareness

b. Purchase intent

61. Within the advertising plan, what does a build-up analysis actually build up? a. The backlog of consumer profiles to be used b. The expenditure level for tasks to be done c. The sales expected to be seen d. The goals and objectives to be pursued

b. The expenditure level for tasks to be done

48. The account executive in charge of promoting a new perfumed bath soap for women is not expecting a sudden attachment and loyalty to the product—though that would be nice—but realistically, she would like women to at least buy it once and see how they like it. Which of the following is more likely to be her objective? a. Purchase intent b. Trial usage c. Repeat purchase d. Build-up purchase

b. Trial usage

52. Costs associated with advertising to the trade and specialized research unique to the campaign are prominent examples of . a. principal finances b. ancillary costs c. major finances d. primary costs

b. ancillary costs

77. (Scenario 8-2) Like many firms, Amazon has refined its priorities over the years. Many firms begin by setting as their advertising objective something that is often disputed by communications-oriented marketers. They choose as their primary advertising objective. a. stimulating trial use b. boosting sales c. establishing brand recall d. identifying purchase intent

b. boosting sales

82. (Scenario 8-3) You're currently deciding exactly where and when ads will be placed, and determining the strategy behind each placement. This takes a while—with the explosion of Internet sites, outdoor advertising, and innovative promotions, the options are almost unlimited. In this way, you are a. setting up account services. b. creating a media plan. c. devising a budgeting method. d. doing advertising research.

b. creating a media plan.

64. The media plan specifies: a. the objectives the advertiser intends to accomplish. b. exactly what strategy is behind the placement of ads. c. the prediction of profits based on new advertising. d. the analysis of the market, industry, and competition.

b. exactly what strategy is behind the placement of ads.

34. The essence and take-away part of an advertising plan is the: a. situation analysis. b. executive summary. c. strategy. d. objectives.

b. executive summary.

32. The first element to appear in an advertising plan is the , and the last element is the . a. executive summary; execution b. introduction; evaluation c. history; strategy d. overview; competitor analysis

b. introduction; evaluation

75. (Scenario 8-2) In the early days of Internet shopping, people were skeptical about the idea of buying things over the computer, largely due to their worries about privacy issues combined with their habitual patterns of purchasing at retail outlets. Some concerns remain today. But many years after the shake-out of companies in the dot-com world, players that survived have come back stronger. And new players have come onto the scene. The demand is there, and this has instilled a feeling of trust in millions of customers who make purchases online. The concept of customers having enhanced trust in e-tailing would most likely be contained in the section of the advertising plan. a. budget analysis b. market analysis c. industry analysis d. competitor analysis

b. market analysis

86. (Scenario 8-4) American Express marketers say they do not use the sales begin to decrease in this segment, so will their budget. a. share-of-market approach b. percentage-of-sales approach c. share-of-voice approach d. objective-and-task approach advertising budgeting method because if

b. percentage-of-sales approach

36. A young man heads the marketing team for a national electronics retailer. He has before him the task of drafting the ad plan for the company. From a long list of situational factors, which of the following is more likely to be the single most important one for him to consider? a. Projected industry growth b. Advertising spending by competitors c. Basic demographic trends d. Economic and regulatory restrictions

c. Basic demographic trends

31. Which of the following is a part of the situational analysis component of an advertising plan? a. Executive summary b. Time frame c. Historical context d. Copy Strategy

c. Historical context

90. (Scenario 8-5) The advertising agency for Helene Curtis is in the process of doing a build-up analysis. This means it is a. isolating the key costs in moving from awareness to preference to purchase of the shampoo. b. determining the cost of building up awareness of the new shampoo to a predetermined level. c. adding up each cost associated with a task identified in the advertising plan for the shampoo. d. determining the approximate time frame that will be necessary to meet all advertising objectives in promoting the shampoo.

c. adding up each cost associated with a task identified in the advertising plan for the shampoo.

72. (Scenario 8-1) The folks at Girl Powerz initially consider using an advertising budgeting method that identifies a mathematical relationship associating ad dollars spent with sales generated. This would be the: a. percentage-of-sales approach. b. ethnocentric method. c. advertising response function. d. share-of-voice approach.

c. advertising response function.

42. The account planner at an Indianapolis ad agency has done a survey and found that a significant percentage of people already recognize the name of the cold remedy his client is about to advertise. When consumers know that a brand exists and recall its name to some degree, they are demonstrating a. brand loyalty. b. brand switching. c. brand awareness. d. top-of-the-mind awareness.

c. brand awareness.

88. (Scenario 8-4) American Express has decided to do a specific type of analysis that focuses on reach, frequency, time frame, production costs, media expenditures, and other specific elements. These factors are always included in a(n) analysis. a. market b. situation c. build-up d. industry

c. build-up

71. (Scenario 8-1) In the past, Girl Powerz has set sales objectives for its advertising. You feel that this doesn't take into account the overall complexities presented in the situation analysis. Therefore, you are recommending combining sales objectives with a. ethnocentrism. b. marketing incentives. c. communications objectives. d. self-reference criteria.

c. communications objectives

65. In a , the objectives state what the advertiser intends to accomplish in headlines, subheads, and text, while the methods describe how the objectives will be achieved. a. media plan b. budgetary plan c. copy strategy d. build-up analysis

c. copy strategy

93. (Scenario 8-5) The number of exposures required to accomplish the advertising objectives for the shampoo, referred to as , will also be included in the build-up analysis for Helene Curtis. a. execution b. production c. frequency d. reach

c. frequency

62. The strategy section of an advertising plan is the mechanism that states: a. why the advertising is needed for this product or service. b. what goals need to be reached. c. how things will be done so that objectives are achieved. d. who will handle various promotional tasks.

c. how things will be done so that objectives are achieved.

59. The only budgeting method that specifically relates spending to goals is the: a. share-of-market approach. b. percentage-of-sales approach. c. objective-and-task approach. d. share-of-voice approach.

c. objective-and-task approach.

70. (Scenario 8-1) One of the main tasks will be to work with the marketing director at Girl Powerz to determine exactly what she wants from its new advertising campaign. Which elements identify the specific goals that you will ask her to provide in concrete terms? a. strategies b. tactics c. objectives d. executions

c. objectives

54. The percentage-of-sales approach to advertising budgeting a. is best used during times of declining sales. b. is difficult to understand and operationalize. c. often leads to overspending or underspending. d. relates advertising dollars to advertising objectives.

c. often leads to overspending or underspending.

53. The CEO of a small but growing sports equipment firm has just announced that sales went up significantly last year. The marketing director is happy because her budget will go up also. This indicates that the firm is using the to set the advertising budget. a. objective-and-sales approach b. share-of-market approach c. percentage-of-sales approach d. advertising response function

c. percentage-of-sales approach

81. (Scenario 8-3) Your goals are very important at this stage, and you want to avoid budgeting methods that neglect to consider goals. This means that you can cross off one approach that is notorious for failing to relate advertising dollars to advertising objectives, and since you have no past records, this method would be impossible to implement anyway. Which of the following methods is this? a. share-of-market approach b. share-of-voice approach c. percentage-of-sales approach d. objective-and-task approach

c. percentage-of-sales approach

39. Looking ahead to an expanding demand for burial plots as the huge population of baby boomers ages, the owner of a cemetery on the outskirts of a city hires an agency to create a sophisticated ad campaign. In knowing its current users and predicting its future users, the cemetery owner is identifying the factors on the demand side of the sales equation. In the advertising plan, this information a. should be explained in the industry analysis. b. can be listed as an objective. c. should be noted in the market analysis. d. belongs in the evaluation section.

c. should be noted in the market analysis.

33. In an advertising plan, the is the section in which the client and the agency lay out the key factors that define the current conditions and then explain the importance of each factor. a. execution b. strategy c. situation analysis d. evaluation

c. situation analysis

38. The industry analysis and market analysis work together to form part of the overall situation analysis. The industry analysis focuses on and the market analysis focuses on . a. consumers; competitors b. brand; product c. supply; demand d. objectives; tasks

c. supply; demand

56. One big problem with marketers who rely on a share-of-voice budget plan is that they assume, often wrongly, that: a. their competition doesn't know how to allocate its advertising dollars. b. their sales figures should automatically dictate their advertising figures. c. they know how much competitors are really spending. d. their ad is distinct, unique, and superior among all others in the field.

c. they know how much competitors are really spending.

43. A fragrance manufacturer wants its target customers to demonstrate top-of-the-mind awareness regarding its long- standing perfume, Bouquet. This means that when they are asked to think of perfumes, they would a. include the name Bouquet somewhere on their list. b. realize that they want to purchase Bouquet. c. think of Bouquet first. d. claim to be loyal consumers of Bouquet.

c. think of Bouquet first.

49. is the tendency to view and value things from the perspective of one's own culture. a. Cultural relativism b. Allophilia c. Endogamy d. Ethnocentrism

d. Ethnocentrism

41. What does the objectives section of an advertising plan do? a. Defines those who use the product b. Notes possible barriers and problems c. Estimates probable costs d. Identifies concrete goals

d. Identifies concrete goals

91. (Scenario 8-5) Which element of the build-up analysis will identify the demographic and geographic exposure that the advertising for the shampoo hopes to achieve? a. Frequency b. Media c. Production d. Reach

d. Reach

89. (Scenario 8-5) Helene Curtis has once again decided to use objective-and-task budgeting to set the advertising expenditures.This is the only budgeting method that focuses specifically on advertising spending: a. as leading to advertising sales. b. as calculated by a mathematical formula. c. as determined by percentage of gross profit. d. as related to advertising objectives.

d. as related to advertising objectives.

46. In theory, of the major options for advertising objectives, most. a. trial usage; brand awareness b. purchase intent; trial usage c. trial usage; repeat purchase d. brand awareness; brand switching asks the least of consumers and demands the

d. brand awareness; brand switching

50. Combining sales objectives with communications objectives: a. will almost certainly spell disaster for an advertising plan. b. may seem effective on paper but may confuse consumers during the campaign. c. is the only way to identify truly quantitative benchmarks for the campaign. d. can be an excellent way to develop an advertising campaign.

d. can be an excellent way to develop an advertising campaign.

69. (Scenario 8-1) You announce that you will write the part of the ad plan that contains the crucial information that Girl Powerz execs need to know, even if they remember nothing else. This means you will write the section. a. situation analysis b. execution c. strategy d. executive summary

d. executive summary

79. (Scenario 8-3) Due to the lack of records, you have no way of knowing what Springfield Hardware has gone through over the years. You can only guess about the hardware needs of the local population, and the store's target market and customer base. This will be a major hindrance in writing the sections of your situation analysis. a. overview and executive summary b. industry analysis and historical context c. strategy and execution d. historical context and market analysis

d. historical context and market analysis

40. The part of an overall situation analysis commonly begins by stating who the current users are and why they are current users. a. historical context b. industry analysis c. competitor analysis d. market analysis

d. market analysis

85. (Scenario 8-4) Within the portion of its advertising plan, American Express suggests that the most important outcome of the campaign will be for Visa customers to start to switch to American Express in this market segment. a. strategy b. execution c. situation analysis d. objectives

d. objectives

76. (Scenario 8-2) Amazon was one of the first online retailers to launch advanced technology to track consumer visits and suggest products whenever they returned to the site. This ability to find out what customers have bought in the past, and project that they will buy similar items in the future, has been a key factor underlying Amazon's strategy and growth. When Amazon asks customers if they plan on buying certain products in the future, it is measuring a. share of market. b. brand awareness. c. share of voice. d. purchase intent.

d. purchase intent.

57. An advertising sales generated. a. sales b. communications c. task d. response function is a mathematical relationship that associates the money spent on advertising with the

d. response

58. Theoretically, the leads to a point where an optimal advertising expenditure results in an optimal sales level and, in turn, an optimal profit. a. objective-and-task method b. share-of-market method c. percentage-of-sales system d. response model

d. response model

37. A global jewelry retailer serving diverse markets is concerned that its agency is unaware of some cultural issues that may come up in its campaign, since none were addressed in the initial advertising plan. The client is worried that the agency staffers may be unconsciously relying only on their own personal values, experiences, and backgrounds to make promotional decisions, referring to a concept called a. ethnocentrism. b. purchase intent. c. share of voice. d. self-reference criterion.

d. self-reference criterion.

84. (Scenario 8-4) Within various sections of the portion of its advertising plan, American Express explains how and why Visa has been more successful at penetrating the small business market because of lower fees. a. evaluation b. execution c. strategy d. situation analysis

d. situation analysis

78. (Scenario 8-2) When dealing with its advertising agency, Amazon wants a strategy that maximizes media expenditures to target the appropriate markets. It is Amazon's primary responsibility to bring forth a wellarticulated statement of the brand's , a key concept in reaching and informing the customer through promotion. a. analysis b. awareness c. competition d. value

d. value

67. Regarding the relationship between the client and agency, things will go most smoothly and efficiently when a. you see them as equal forces with equal power and responsibility. b. you can identify two distinct entities with clearly defined roles and tasks. c. you can tell that the agency does everything the client wants without question. d. you can't tell where the work of one ends and the other begins.

d. you can't tell where the work of one ends and the other begins.