Kotler Mm13e Tif 18

Chapter 18: Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences,

and Public Relations

GENERAL CONCEPT QUESTIONS

Multiple Choice

1. In developing an advertising program, marketing managers can make five major decisions known as the five Ms. Which of the following is NOT one of the five Ms?a. Missionb. Moneyc. Messaged. Media e. Minimum

Answer: e Page: 498 Difficulty: Easy AACSB: Analytic Skills

2. ________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. a. Advertising b. Prospectingc. Media d. Marketing e. Public Relations

Answer: a Page: 498 Difficulty: Easy

3. Advertising objectives can be classified according to whether their aim is to inform, persuade, remind, or ________. a. create interestb. purchasec. create demandd. reinforce e. introduce

Answer: d Page: 499 Difficulty: Medium AACSB: Analytic Skills

4. When setting the advertising budget, marketers must consider the________.a. message details b. cost of television timec. cost of new product developmentd. stage in the product life cyclee. buyer’s reaction to the campaign

Answer: d Page: 499 Difficulty: Hard AACSB: Analytic Skills

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Part 7: Communicating Value

5. In designing and evaluating an ad campaign, it is important to distinguish the message strategy or positioning of an ad from its ________. a. brand strategy b. creative strategy c. test strategyd. medium strategy e. corporate strategy

Answer: b Page: 500 Difficulty: Medium AACSB: Reflective Thinking

6. A creative brief is an elaboration of the positioning statement and includes such items as ________. a. key brand benefits b. detailed instructions for the director of the commercialc. detailed instructions for the print adsd. key actors to be used in the commerciale. none of the above

Answer: a Page: 500 Difficulty: Hard AACSB: Analytic Skills

7. In deciding on an ad budget, marketers must recognize that consumer response can be ________-shaped: An ad threshold effect exists where some positive amount of advertising is necessary before any sales impact can be detected, but sales increases eventually flatten out. a. Tb. Mc. S d. Ye. C

Answer: c Page: 500 Difficulty: Medium

8. A good ad normally focuses on one or two ________. a. important environmental factorsb. subliminal messagesc. core selling propositionsd. easily identifiable celebritiese. consumer interest items

Answer: c Page: 500 Difficulty: Medium AACSB: Analytic Skills

9. Television is the most powerful advertising medium. TV advertising can be a compelling means for dramatically portraying user and usage imagery, brand personality, and other brand ________. a. soundsb. sightsc. intangibles d. tangiblese. components

Answer: c Page: 501 Difficulty: Medium AACSB: Reflective Thinking


Chapter 18: Managing Mass Communications:Advertising, Sales Promotions, Events and Experiences, and Public Relations

10. Print media provides much ________ product information and can also effectively communicate user and usage imagery. a. detailedb. specific c. informational d. historical e. usage

Answer: a Page: 502 Difficulty: Easy AACSB: Analytic Skills

11. Of the elements of a print advertisement, the ________ matters the most when it comes to the ad’s effectiveness.a. headlineb. copyc. pictured. fonte. color


12. Radio’s main advantage lies in its ________. a. disk jockeys b. flexibility c. formatd. age of audiencee. none of the above

Answer: b Page: 504 Difficulty: Easy AACSB: Reflective Thinking

13. The obvious disadvantages of radio include ________.a. the relatively passive nature of the consumer processing b. excessive visual stimulusc. consumers’ ability to fast forward through advertisementsd. consumers’ typical commitment to a single radio statione. all of the above

Answer: a Page: 504 Difficulty: Medium

14. Under U.S. law, advertisers must not ________. a. copy other’s ads b. make false claimsc. advertise to childrend. advertise after 3 a.m. e. demonstrate a product

Answer: b Page: 505 Difficulty: Easy AACSB: Analytic Skills

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 480


15. ________ is finding the most cost-effective media to deliver the desired number and types of exposures to the target audience. a. Weight b. Frequencyc. Reach d. Media buying e. Media selection

Answer: e Page: 505 Difficulty: Easy

16. Puffery is defined as ________. a. a description of a bakery productb. statements used in sales brochures to tout the benefits of a productc. simple exaggerationsd. liese. legal nontruths

Answer: c Page: 505 Difficulty: Easy AACSB: Analytic Skills

17. In choosing the proper media to carry the message, advertisers must decide on ________. a. strategy, users, and media b. target markets, users, and heavy usersc. markets, target markets, and consumersd. reach, impact, and television stationse. reach, frequency, and impact

Answer: e Page: 505 Difficulty: Medium AACSB: Analytic Skills

18. ________ is most important when launching new products, flanker brands, or extensions of well-known brands. a. Media selection b. Weighted exposuresc. Impactd. Reach e. Frequency

Answer: d Page: 506 Difficulty: Easy AACSB: Reflective Thinking

19. The higher the ________ associated with a brand, product category, or message, the higher the warranted level of repetition.a. total number of exposuresb. target audience media habitsc. forgetting rated. impacte. reach




20. One of the advantages of television is that it combines sight, sound, and motion, appealing to the senses, high attention, and high reach. One of the disadvantages of television is its ________.a. use of the “remote control” to zap through commercials b. high clutterc. cable channels d. fragmented marketse. censorship possibilities

Answer: b Page: 507 Difficulty: Medium AACSB: Analytic Skills

21. One of the advantages of direct mail is audience selectivity. One of its limitations is ________.a. its short lifeb. poor reproduction qualityc. high competitiond. long ad purchase lead timee. relatively high cost

Answer: e Page: 507 Difficulty: Medium

22. Marketers are using creative and unexpected ad placements to grab consumers’ attentions in ________ advertising. a. market-specific b. customer-specific c. space d. nontraditional e. place


23. Marketers pay fees so that their products make cameo appearances in movies and on television. This is called ________. a. branded entertainment b. point of purchasec. advertorials d. product placemente. individualization

Answer: d Page: 509 Difficulty: Easy AACSB: Analytic Skills

24. In-store advertising, including ads on shopping carts, in aisles, on shelves, on the floor, and “talking” shelves, are all examples of ________ advertising. a. point-of-decision b. product-placement c. point-of-purchase d. branding e. advertising

Answer: c Page: 510 Difficulty: Easy



25. The main advantage of nontraditional media is that a very precise and—because of the nature of the setting involved—captive audience often can be reached in a ________ manner. a. new b. effective c. cost-effective d. targeted e. individualized

Answer: c Page: 510 Difficulty: Hard AACSB: Reflective Thinking

26. Television audience size has several possible measures. These include circulation, audience, and ________. a. nonexposed audience b. total circulation c. exposed audience d. listening audiencee. effective audience


27. Readers of Vogue may pay more attention to ads than do readers of Newsweek. In this example, Vogue has greater ________ than Newsweek.a. ad-placement policiesb. editorial qualityc. audience-attention probabilityd. audience qualitye. lead generation

Answer: c Pages: 511–512 Difficulty: Medium

28. A media vehicle’s ________ refers to its prestige and believability. People are more likely to believe a TV or radio ad and to become more positively disposed toward the brand when the ad is placed within a program they like.a. ad-placement policiesb. editorial qualityc. audience-attention probabilityd. audience qualitye. lead generation


29. ________ expresses the rate at which new buyers enter the market; the higher this rate, the more continuous the advertising should be. a. Buyer demographics b. Purchase frequency c. Purchase intentd. Buyer turnover e. Buyer profile




30. The ________ is the rate at which the buyer forgets the brand. a. designated rate b. purchase frequency c. purge rated. turnover ratee. forgetting rate


31. The term “concentration” when used in the context of advertising means that the advertiser will ________. a. run heavy advertising day and night for a short period of timeb. spend all of the advertising dollars in a single period c. run all the ads for the product within a specific period of timed. spend all of the advertising dollars across a specific time periode. not spend all of the advertising dollars in a single period

Answer: b Page: 512 Difficulty: Hard

32. ________ seeks to determine whether an ad is communicating effectively. a. Communications-effect research b. Marketing researchc. Buyer research d. Consumer research e. Media research

Answer: a Page: 513 Difficulty: Easy AACSB: Analytic Skills

33. In launching a new product, the advertiser chooses among continuity, concentration, flighting, and ________ advertising patterns. a. reflective b. periodic c. continuousd. pulsinge. running


34. A company has to decide on how to allocate its advertising budget over space as well as over time. A company makes “spot buys” when it buys TV time in just a few markets or in regional editions of magazines. These markets are called ________.a. areas of dominant influenceb. trading areasc. short-term marketing opportunitiesd. SMSA e. none of the above

Answer: a Page: 513 Difficulty: Hard



35. There are three major methods of pretesting ads. These are consumer feedback, ________, and laboratory test. a. prelaunch testing b. copy testing c. direct testing d. telephone inquiries e. portfolio testing


36. The ________ involves correlating past sales to past advertising expenditures using advanced statistical techniques in an effort to measure the sales impact of a given promotional campaign.a. historical approachb. experimental design approachc. humanist approachd. target exposure rate approache. pulsing approach

Answer: a Page: 514 Difficulty: Medium

37. Sales promotions include tools for ________ promotion, trade promotion, and business and sales-force promotions. a. incentive b. reasonsc. targetd. prospectse. consumer


38. Sales promotions used in markets of high brand similarity can produce a high sales response in the short run but little ________ gain in brand preference. a. significant b. realc. short-termd. incremental e. permanent

Answer: e Page: 515 Difficulty: Medium AACSB: Reflective Thinking

39. Sales promotion, with its incessant prices off, coupons, deals, and premiums, may ________ the product offering in the buyers’ mind. a. detract b. augment c. confused. devalue e. increase

Answer: d Page: 515 Difficulty: Hard AACSB: Reflective Thinking



40. Sales promotion tools that impart a selling message along with the deal, as in the case of free samples and premiums when they are related to the product, are called ________.a. promotions b. retailer promotionsc. manufacturer franchise building d. retailer franchise buildinge. consumer franchise building


41. When two or more brands or companies team up on coupons, refunds, and contests to increase pulling power, it is called ________. a. price packs b. frequency promotions c. team promoting d. tie-in promotions e. cross-promotions

Answer: d Page: 517 Difficulty: Medium

42. Merchandise offered at a relatively low cost or free as an incentive to purchase a particular product is known as ________.a. a price packb. a samplec. premiumsd. a tie-ine. cross-promotions


43. When retailers buy a greater quantity of product during a deal period than they can sell during the deal period, we call this ________.a. purchasing intent b. forward buyingc. trade buying d. de facto buying e. diverting

Answer: b Page: 518 Difficulty: Hard AACSB: Analytic Skills

44. When retailers buy more cases than are needed in a region in which the manufacturer offered a deal and ship the surplus to their stores in nondeal regions, is known as ________.a. forward buyingb. purchasing intentc. de facto buyingd. trade buyinge. diverting

Answer: e Page: 518 Difficulty: Hard



45. In deciding to use a particular incentive, marketers have several factors to consider. One of these factors is ________. a. duration b. distribution vehicle c. promotion budgetd. sizee. all of the above

Answer: e Page: 519 Difficulty: Hard AACSB: Analytic Skills

46. Marketing managers must prepare implementation and control plans that cover the various elements of the sales promotion program. ________ is the time necessary to prepare the program prior to launching it.a. Sell-in timeb. Pretestingc. Durationd. Lead timee. Forwarding


47. One of the reasons marketers sponsor events is to ________ a particular target market or lifestyle. a. identify withb. capitalize upon c. fosterd. increase exposure toe. none of the above

Answer: a Page: 521 Difficulty: Easy

48. One of the potential disadvantages of sponsorships is that the success of an event can often ________ and some consumers may still resent the commercialization of events. a. attract unfavorable media attention b. be cancelledc. be illegal d. be unpredictable e. be unfavorable to the sponsor

Answer: d Page: 521 Difficulty: Medium AACSB: Reflective Thinking

49. _______ is a particularly important skill in publicizing fund-raising drives for nonprofit organizations. a. Event creationb. Supply-side measurementc. Demand-side measurement d. Containerizatione. Incremental exposure

Answer: a Page: 522 Difficulty: Medium AACSB: Analytic Skills



50. Supply-side measurement of event effectiveness focuses on ________.a. potential exposure to the brand by assessing the extent of media coverageb. reported exposure from consumersc. incremental sales earned during the eventd. incremental sales earned as a result of the evente. reported changes in customer perception of the brand


51. The ________ method of measuring event effectiveness identifies the effect sponsorship had on consumers’ brand knowledge.a. incrementalb. supply-sidec. demand-sided. historicale. experimental


52. ________ involve(s) a variety of programs designed to promote or protect a company’s image or its individual products. a. Corporate communications b. Press releasesc. Press relations d. Publicitye. Public relations


53. A(n) ________ is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.a. campaignb. movementc. experienced. publice. experiment


54. Which of the following is NOT a function of the PR department?a. Press relationsb. Product publicityc. Corporate communicationsd. Counselinge. All of the above are functions performed by the PR department.




55. Marketing public relations (MPR) supports corporate or product promotion and image making and plays a crucial role in ________. a. creating publicity b. protecting the company from liabilities c. repositioning a mature product d. securing free ad spacese. building a word-of-mouth campaign

Answer: c Page: 525 Difficulty: Hard AACSB: Reflective Thinking

56. MPR serves a special constituency, ________.a. the finance departmentb. consumer activistsc. shareholder activistsd. the marketing departmente. ad agencies


57. MPR can build ________ by placing stories in the media to bring attention to a product, service, person, organization, or idea. a. talk b. stories c. awarenessd. buzze. exposure


58. The major tools in an MPR department include publications, events, sponsorships, ________, speeches, public service activities, and identity media. a. customers b. managers c. news d. universities e. colleges


59. The easiest measure of MPR effectiveness is the number of ________ carried by the media. a. stories b. exposures c. customersd. articlese. none of the above




60. A better measure to evaluate the effectiveness of MPR is to measure ________. a. the change in product awarenessb. the number of exposures carried by the mediac. the number of minutes of radio airtime garneredd. the difference between PR costs and advertising space expensee. the extent of viewer repeat exposure

Answer: a Page: 529 Difficulty: Hard AACSB: Reflective Thinking

True/False

61. An advertising goal (or objective) is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time.

Answer: True Page: 499 Difficulty: Easy AACSB: Analytic Skills

62. The advertising objective should emerge from a thorough analysis of the current marketing situation.

Answer: True Page: 499 Difficulty: Medium AACSB: Reflective Thinking

63. One of the five specific factors that must be considered when setting an advertising budget is the amount of money available from top management.

Answer: False Pages: 499–500 Difficulty: Medium AACSB: Analytic Skills

64. In designing and evaluating an ad campaign, it is important to distinguish the message strategy from the “messenger.”

Answer: False Page: 500 Difficulty: Hard

65. A creative brief is an elaboration of the positioning statement of the brand. Answer: True Page: 500 Difficulty: Medium AACSB: Analytic Skills

66. One of the advantages of television is that the large number of ads and nonprogramming material on television creates clutter that makes it easy for consumers to ignore or forget the ad.

Answer: False Page: 501 Difficulty: Medium AACSB: Reflective Thinking

67. Because of the fleeting nature of the television ad, and the distracting creative elements often found in it, product-related messages and the brand itself can be overlooked.

Answer: True Page: 501 Difficulty: Easy AACSB: Reflective Thinking

68. One of the advantages of print ads is that they can provide dynamic presentations and demonstrations as well as provide much detailed information.

Answer: False Page: 502 Difficulty: Medium

69. One of the advantages of radio advertising is its flexibility. Answer: True Page: 504 Difficulty: Easy AACSB: Reflective Thinking



70. Sellers in the United States are legally obligated to avoid bait-and-switch advertising that attracts buyers under false pretenses.

Answer: True Page: 505 Difficulty: Medium AACSB: Analytic Skills

71. Media selection is finding the most cost-effective media to deliver the desired number and types of exposures to the target audience.

Answer: True Page: 505 Difficulty: Medium

72. The total number of exposures in a marketing advertising campaign can be expressed in the formula: E = R x F.

Answer: True Page: 506 Difficulty: Hard AACSB: Analytic Skills

73. The weighted number of exposures to an advertising campaign is reach times average frequency times average impact, or WE = R x F x I.

Answer: True Page: 506 Difficulty: Hard AACSB: Analytic Skills

74. Frequency is most important where there are weak competitors, a complex story to tell, low consumer resistance, or an infrequent purchase cycle.


75. One of the limitations of newspapers is their short life span. Answer: True Page: 507 Difficulty: Medium AACSB: Analytic Skills

76. Advertising in the Yellow Pages offers excellent local coverage and wide reach at low cost, but also carries high competition and creative limitations.


77. Place advertising, also called out-of-home advertising, is a broadly defined category that captures many different alternative advertising forms.

Answer: True Page: 508 Difficulty: Easy

78. In product placement advertisements, marketers pay a fee to have their products make cameo appearances in movies, films, and television shows.


79. “Branded entertainment” is where editorial content is produced that reflects favorably on the product or brand.

Answer: False Page: 509 Difficulty: Medium AACSB: Analytic Skills

80. One of the appeals of point-of-purchase advertisements, as one study suggested, is that the bulk of all buying decisions are made in the store.

Answer: True Page: 510 Difficulty: Easy

81. Strategically, outdoor advertising is often more effective at enhancing brand awareness or reinforcing brand image than creating new brand associations.

Answer: True Page: 510 Difficulty: Hard AACSB: Reflective Thinking



82. When calculating the cost per thousand persons reached by a vehicle, marketers need to adjust the measure for audience quality and audience-attention probability.


83. In choosing media, the advertiser faces both a macroscheduling and a microscheduling problem.


84. Advertisers have the choice of concentrated, continuous, or episodic when deciding on the advertisements timing patterns.


85. Most advertisers try to measure the communication effect of an ad—that is, its potential effect on awareness, knowledge, preference, and sales.


86. Communication-effect research seeks to determine whether an ad is communicating effectively.


87. Advertising’s sales effect is generally no more difficult to measure than its communication effect.


88. Researchers try to measure the sales impact through analyzing historical or experimental data.


89. Sales promotion consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

Answer: True Page: 514 Difficulty: Easy AACSB: Reflective Thinking

90. Sellers use incentive-type promotions to attract new triers, to reward loyal customers, and to increase the repurchase rates of occasional users.


91. Advertising typically builds brand loyalty, and sales promotions can weaken brand loyalty.

Answer: True Pages: 515–516 Difficulty: Hard AACSB: Reflective Thinking

92. For consumers, ideally, sales promotions would have short-run sales impact as well as long-run brand equity effects.

Answer: True Page: 516 Difficulty: Hard AACSB: Reflective Thinking



93. Examples of retailer promotions include price cuts, feature advertising, retailer coupons, and retailer contests or premiums.


94. Studies have shown that sales promotions are not effective when used in conjunction with advertising.


95. The growing power of larger retailers has increased the retailer’s ability to demand trade promotion at the expense of consumer promotion and advertising.


96. Marketers report a number of reasons why they sponsor events. One of these reasons is that the firm wishes to identify with a particular target market or lifestyle.

Answer: True Page: 521 Difficulty: Medium AACSB: Reflective Thinking

97. Developing successful sponsored events involves choosing the appropriate events; designing the optimal sponsorship program for the event; and managing the event dynamics properly.


98. In measuring an event, the supply-side method attempts to approximate the amount of time or space devoted to media coverage of an event.


99. Public relations involves a variety of programs designed to promote or protect a company’s image or its individual products.


100. Many experts believe that consumers are much more likely to be influenced by editorial copy than by advertising.


Essay

101. In developing an advertising program, marketing managers can make the five major decisions know as the five Ms. List and explain each of these Ms.

Suggested Answer: (1) mission—sales goals and advertising objectives; (2) money—factors to consider: stage in PLC, market share and consumer base, competition and clutter, advertising frequency, and product substitutability; (3) message—message generation, message evaluation and selection, message execution, and social-responsibility review; (4) media—reach, frequency, impact, major media types, specific media vehicles, media timing, and geographical media allocation; and (5) measurement—communication impact and sales impact.Page: 498 Difficulty: Hard AACSB: Analytic Skills



102. In designing and evaluating an ad campaign, it is important to distinguish the message strategy or positioning of an ad from it creative strategy. To develop a message strategy, advertisers go through three steps. List and explain these three steps.

Suggested Answer: The first step is message generation and evaluation. It is important to generate fresh insights and avoid using the same appeals and positions as others. The second step is creative development and execution. The ad’s impact depends not only on what is said but, often more important, on how it is said. Message execution can be decisive. The third step addresses social and legal issues. Advertisers and their agents must be sure that the advertisements do not overstep social and legal norms. Pages: 500–505 Difficulty: Medium AACSB: Analytic Skills

103. Advertisers and their agencies must be sure advertising does not overstep social and legal norms. Public policy makers have developed a substantial body of laws and regulations to govern advertising. List some of the restraints imposed upon advertisers and their clients today.

Suggested Answer: First, advertisers must not make false claims. They must avoid false demonstrations. It is illegal in the United States to create ads that have the capacity to deceive. Sellers in the United States are legally obligated to avoid bait-and-switch advertising that attracts buyers under false pretenses. To be socially responsible, advertisers must be careful not to offend the general public as well as any ethnic groups, racial minorities, or special-interest groups. Page: 505 Difficulty: Hard AACSB: Ethical Reasoning

104. The media planner must know the capacity of the major advertising media types to deliver reach, frequency, and impact. Media planners make their choices by considering four variables. List these variables and briefly explain them.

Suggested Answer: These variables are: (1) target audience media habits—radio and television are the most effective media for reaching teenagers; (2) product characteristics—media types have different potential for demonstration, visualization, explanation, believability, and color; (3) message characteristics—timeliness and information content will influence media choice; and (4) cost— television is very expensive, whereas newspaper advertising is relatively inexpensive. What counts is the cost per thousand exposures. Pages: 506–507 Difficulty: Hard AACSB: Analytic Skills



105. A decade ago, the advertising-to-sales-promotion ratio was about 60:40. Today, in many consumer-packaged-goods companies, sales promotion accounts for 75% of the combined budget. Several factors contribute to this rapid growth. List and explain these factors.

Suggested Answer: Promotion is now more accepted by top management as an effective sales tool. In addition, the number of brands has increased; competitors use promotions frequently; many brands are seen as similar; consumer are more price orientated; the trade demands more deals from manufacturers; and advertising efficiency has declined. Page: 515 Difficulty: Medium AACSB: Reflective Thinking

106. Manufacturers face several challenges in managing trade promotions. List some of these challenges.

Suggested Answer: First, they often find it difficult to police retailers to make sure they are doing what they agreed to do. Second, some retailers are doing forward buying. Third, some retailers are diverting. Page: 518 Difficulty: Medium AACSB: Reflective Thinking

107. In deciding to use a particular type of consumer promotional incentive, marketers have several factors to consider. List these factors and briefly explain them.

Suggested Answer: First, the marketer must determine the size of the incentive. A minimum is necessary if the promotion is to succeed. Second, the marketing manager must establish conditions for participation. Incentives might be offered to everyone or just a select group. Third, the marketer has to decide on the duration of the promotion. Optimal duration is the length of the average purchase cycle. Fourth, the marketer must choose a distribution vehicle for the promotion (centsoff coupon, on-pack coupon). Fifth, the marketer must establish the timing of the promotion. Finally, the marketer must determine the total sales promotion budget. Page: 519 Difficulty: Hard AACSB: Analytic Skills

108. According to the IEG Sponsorship Report, $14.9 billion was projected to be spent on sponsorships in North America during 2007. List the eight reasons why marketers may want to sponsor an event.

Suggested Answer: Marketers reasons are as follows: (1) to identify with a particular target market or lifestyle; (2) to increase awareness of the company or product name; (3) to create or reinforce consumer perceptions of key brand image associations; (4) to enhance corporate image; (5) to create experiences and evoke feelings; (6) to express commitment to the community or on social issues; (7) to entertain key clients or reward key employees; and (8) to permit merchandising or promotional opportunities. Page: 521 Difficulty: Hard AACSB: Analytic Skills



109. Marketing public relations plays an important role in specific tasks. List these six tasks.

Suggested Answer: The tasks are: (1) launching of new products; (2) repositioning a mature product; (3) building interest in a product category; (4) influencing specific target groups; (5) defending products that have encountered public problems; and (6) building the corporate image in a way that reflects favorably on its products. Pages: 525–526 Difficulty: Medium

110. In considering when and how to use MPR, management must establish the marketing objectives, choose the PR messages and vehicles, implement the plan carefully, and evaluate the results. To accomplish this, MPR has a number of “tools” at its disposal. List the major tools of effective MPR.

Suggested Answer: The major tools are publications, events, sponsorships, news, speeches, public service activities, and identity media. Page: 528 Difficulty: Medium AACSB: Analytic Skills

APPLICATION QUESTIONS

Multiple Choice

111. As the newest brand manager for your company, you are in the process of developing an advertising campaign for the coming year. When you review your product substitutability and the stage in the product life cycle, which of “the five Ms” are you deciding? a. Messageb. Measurementc. Money d. Mediae. Mission


112. Your product competes in a mature market and your company is the market leader in the category. The advertising objective for your product should be ________.a. to stimulate and persuade consumers to use your product b. to stimulate and demonstrate the product’s superiorityc. to stimulate more usaged. to stimulate brand recognition e. none of the above




113. Advertising often fails to increase sales for mature brands and categories in decline. The ________ is much lower for these products than for newer ones.a. clutterb. message generationc. creative briefd. advertising elasticitye. flexibility


114. You have decided to use print media to advertise your product because the amount of information you wish to communicate is large. In designing a print campaign, you have been advised to write a headline for the ad that is strong. What is it about the headline that is so important in a print ad campaign? a. The headline must reinforce the picture and lead the person to read the copy.b. The headline must attract the reader’s eyes.c. The headline must appeal to the reader’s sense of “wow.”d. The headline must spark curiosity from the reader.e. The headline must offend the readers’ sensibilities to attract them to read it.

Answer: a Page: 503 Difficulty: Medium AACSB: Reflective Thinking

115. The company has decided to change its advertising message in key markets. Speed and flexibility are the issues here as the company scrambles to make up lost ground. Of all of the advertising media available to you, which one offers your company flexibility? a. Billboardsb. Television c. Printd. Place advertising e. Radio


116. A competitive product is advertised as being able to “keep the floor clean” for six months. Testing by your firms’ laboratories refutes this advertising message. Under U.S. law, the competition is practicing ________. a. deceptive advertising b. pufferyc. creative licensed. acceptable riskse. none of the above

Answer: a Page: 505 Difficulty: Medium AACSB: Ethical Reasoning



117. Your research has shown that your consumers have a high forgetting rate on your product. In fact, the forgetting rate is as high as 20%. To reverse this trend, you will undertake an advertising campaign designed to get the message back into memory by emphasizing ________. a. complicityb. impact c. reachd. frequencye. none of the above


118. Although outdoor advertising has limited audience selectivity, it ________.a. is very expensiveb. offers low repeat exposurec. is subject to low competitiond. is highly inflexiblee. all of the above


119. In developing an advertising campaign of your new product, you have decided on creating a mobile workshop that would travel around the country showing consumers how to use the product. This mobile “workshop” is an example of ________. a. place advertising b. creative advertising c. product advertising d. billboardse. branded advertising


120. When Pringles is featured on the television show Survivor, this is an example of________. a. product placementb. advertorialsc. branded entertainment d. product advertising e. creative advertising




121. The ad agency you are working with cites studies that show that consumers wait until the last minute to make buying decisions and in fact, one study suggested that over 74% of all buying decisions are made in the store. The ad agency is urging you to approve the creation of ________ to capitalize on these spontaneous buying decisions. a. point-of-purchase materialb. print materialc. coupons d. flyers e. none of the above

Answer: a Page: 510 Difficulty: Medium AACSB: Reflective Thinking

122. One of the criteria for evaluating the effectiveness of your print campaign is the circulation of the physical units carrying the advertising. You have asked for more information from the ad agency. In fact, you have asked for the number of people with your target audience’s characteristics who actually saw the ad. This is an example of ________. a. interactive marketing b. effective ad-exposed audience c. direct-response advertising d. effective audience e. all of the above


123. If a full-page, four-color ad in Newsweek costs $200,000 and Newsweek’s estimated readership is 3.1 million people, the cost of exposing the add to 1,000 people is approximately ________.a. $41b. $53c. $65d. $77e. $84


124. For a baby lotion ad, a magazine read by one million young mothers has high ________.a. editorial qualityb. ad-placement policiesc. extra servicesd. audience qualitye. supply-side measurement




125. Buyers enter your market at a high rate and consumers purchase your product on almost a “daily” basis. With these two known characteristics about your consumers and market, you are better off using a(n) ________ advertising timing pattern. a. continuityb. intermittent c. concentrated d. flighting e. pulsing


126. When consumers respond to such questions as “What is the main message you get from this ad?” or “How does this ad make you feel?” you are using what communication-effect research method? a. Opinion testingb. Laboratory testing c. Portfolio testing d. Copy testing e. Consumer feedback method

Answer: e Page: 513 Difficulty: Hard AACSB: Analytic Skills

127. The company’s marketing mix includes such tools as coupons, cash refund offers, and premiums. These are examples of ________. a. salesman’s tools b. marketing mixc. consumer promotions d. trade promotions e. none of the above


128. The way the promotional material gets to the consumer is known as the ________. For example, a 15-cents-off coupon can be sent by mail, offered in stores, or attached to the product packaging.a. conditionb. distribution vehiclec. durationd. supply sidee. implementation




129. As a sponsoring organization of a recent sporting event, your ad agency presents you with the following information: “Our brand was visible on national television for a total of 500 second; this exposure represents $100,000 in advertising based on the national rate.” This is an example of a ________ measurement.a. supply-side b. demand-sidec. market-shared. share-of-market e. share-of-voice


130. As the national brand manager for a major egg producer, you have directed your MPR manager to help you build consumer interest in cooking eggs for dinner. This would be an example of using MPR to ________. a. build interest in a product category b. launch new productsc. reposition a mature productd. defend products that have encountered public problemse. build the corporate image in a way that reflects favorably on its products

Answer: c Pages: 525–526 Difficulty: Hard AACSB: Reflective Thinking

Short Answer

131. What are the major differences between informative and persuasive advertising?

Suggested Answer: Informative advertising seeks to create brand awareness and knowledge of new products or product features; persuasive advertising aims to create liking, preference, conviction, and purchase of goods or services Page: 499 Difficulty: Easy AACSB: Reflective Thinking

132. In designing and evaluating an ad campaign, it is important to distinguish between what two strategies?

Suggested Answer: You must distinguish between the message strategy (what the ad attempts to convey about the brand) and the creative strategy, (how the ad expresses the brand claims). Page: 500 Difficulty: Medium AACSB: Analytic Skills



133. From a brand-building perspective, television advertising has two particularly important strengths. List and briefly explain these strengths.

Suggested Answer: First, television can be an effective means of vividly demonstrating product attributes and persuasively explaining their corresponding consumer benefits. Second, television advertising can be a compelling means for dramatically portraying user and usage imagery, brand personality, and other brand intangibles. Page: 501 Difficulty: Hard AACSB: Reflective Thinking

134. Explain how format elements of a print ad can impact the ad’s impact.

Suggested Answer: Format elements such as ad size, color, and illustration can affect a print ad’s impact. Larger ads gain more attention, though not necessarily by as much as their difference in cost. Four-color illustrations increase ad effectiveness and ad cost.Page: 502 Difficulty: Medium AACSB: Reflective Thinking

135. Explain the concept of “reach.”

Suggested Answer: Reach is the number of different persons or households exposed to a particular media schedule at least once during a specified time period. Page: 505 Difficulty: Easy AACSB: Analytic Skills

136. Explain the concept of “frequency.”

Suggested Answer: Frequency is the number of times within the specified time period that an average person or household is exposed to the message. Page: 506 Difficulty: Easy

137. Explain the concept of “impact.”

Suggested Answer: Impact is the qualitative value of an exposure through a given medium. Page: 506 Difficulty: Easy AACSB: Analytic Skills

138. The media planner needs to know the capacity of the major advertising media types to deliver reach, frequency, and impact. Media planners make their choices by considering what variables?

Suggested Answer: The variables are: (1) target audience media habits, (2) product characteristics, (3) message characteristics, and (4) costs.Pages: 506–507 Difficulty: Hard AACSB: Reflective Thinking



139. Explain the rationale behind using out-of-home advertising to reach consumers.

Suggested Answer: The rationale behind out-of-home advertising is that marketers are better off reaching people where they work, play, and shop.Page: 508 Difficulty: Hard

140. What is the appeal of point-of-purchase advertising?

Suggested Answer: The appeal of point-of-purchase advertising lies in the fact that in many product categories consumers make the bulk of their final brand decisions in the store.Page: 510 Difficulty: Medium AACSB: Reflective Thinking

141. In launching your company’s new product, you are faced with a decision of what type of timing pattern will effectively match the communications objectives in relation to the nature of the product. List the four choices available to you.

Suggested Answer: The four choices are continuity, concentration, flighting, and pulsing. Pages: 512–513 Difficulty: Hard AACSB: Analytic Skills

142. In attempting to measure the effectiveness of your advertising, you undertake to pretest the advertising. What are the three methods of pretesting?

Suggested Answer: The three methods are consumer feedback, portfolio tests, and laboratory tests.Page: 513 Difficulty: Easy AACSB: Analytic Skills

143. Explain the formula for measuring sales impact of advertising.

Suggested Answer: The steps are: share of expenditures, share of voice, share of mind and heart, and ultimately, share of market. Page: 514 Difficulty: Hard

144. In designing your sales promotion campaign, your objective is to attract new triers and to reward loyal customers. What type of sales promotion should you use?

Suggested Answer: Sellers use incentive-type promotions to attract new triers or to reward loyal customers. Page: 514 Difficulty: Medium AACSB: Reflective Thinking

145. Define the concept of “consumer franchise-building” sales promotions.

Suggested Answer: Consumer franchise-building sales promotions impart a selling message along with the deal. Page: 516 Difficulty: Medium AACSB: Analytic Skills



146. Manufacturers use a number of trade promotion tools. Give four reasons why manufacturers award money to the trade.

Suggested Answer: Manufacturers award money to the trade (1) to persuade the retailer or wholesaler to carry the brand; (2) to persuade the retailer or wholesalers to carry more units than the normal amount; (3) to induce retailers to promote the brand by featuring, display, and price reductions; and (4) to stimulate retailers and their sales clerks to push the product.Page: 517 Difficulty: Hard AACSB: Reflective Thinking

147. Why are more and more companies investing funds into creating “experiences” for their consumers?

Suggested Answer: By becoming part of a personally relevant moment in consumers’ lives, involvement with events can broaden and deepen the relationship of a company with their target market. Page: 520 Difficulty: Medium AACSB: Reflective Thinking

148. Developing successful sponsored events involves a number of decisions. What are the three decisions that must be made to utilize sponsorships effectively?

Suggested Answer: These are: (1) choosing the event opportunity; (2) designing the sponsorship program; and (3) measuring the sponsorship activities. Page: 522 Difficulty: Medium AACSB: Analytic Skills

149. The company’s public relations department performs five functions. List these five functions.

Suggested Answer: The five functions are: (1) press relations, (2) product publicity, (3) corporate communications, (4) lobbying, and (5) counseling. Page: 524 Difficulty: Hard AACSB: Analytic Skills

150. MPR (marketing public relations) plays an important role in what tasks?

Suggested Answer: These tasks are: (1) launching new products; (2) repositioning a mature product; (3) building interest in a product category; (4) influencing specific target groups; (5) defending products that have encountered public problems; and (6) building the corporate image in a way that reflects favorably on its products. Pages: 525–526 Difficulty: Hard AACSB: Reflective Thinking


Kotler Mm13e Tif 18

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