TEST BANK for Advertising and Integrated Brand Promotion, 8th Edition, Thomas O’Guinn, Chris Allen,

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Chap 01_8e Indicate whether the statement is true or false.

1. The receivers of the communication must accommodate their perceived multiple meanings and personal agendas and then negotiate a meaning or interpretation of the ad according to their individual life experiences and value systems. a. True b. False 2. An example of a campaign that uses integrated brand promotion is Taco Bell; they have simultaneously put out a commercial during the Super Bowl, print advertising, in-store promotions, and a hashtag that was all focused on a new product. a. True b. False 3. An advertisement refers to a series of coordinated messages that communicates a reasonably cohesive and integrated theme about a brand. a. True b. False 4. Although companies believe in and rely heavily on advertising, some people have significant misperceptions about advertising and what it’s supposed to do. a. True b. False 5. The model of mass-mediated communication can be interpreted to see that communication is an inherently social process. a. True b. False 6. In going through an IBP tool checklist, a brand must focus on either digital or traditional advertising, but not both. a. True b. False 7. With unpaid media, a public relations-oriented team puts out a pro-social message about the importance of not texting while driving. This is an example of a public service announcement. a. True b. False 8. Angelina Jolie, an actress, is interviewed by news reporters about what she thinks her fans should know about her new movie. This would be considered as an advertisement, based on the definition of advertising. a. True b. False

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Chap 01_8e 9. As consumers, we do not know what we like and want, so advertising does not help expose us to brands that meet our needs. a. True b. False 10. Advertising is NOT a part of the communication process. a. True b. False 11. The organization that pays for an advertisement is referred to as the agency. a. True b. False 12. Advertising means different things to different people. a. True b. False 13. It is possible to grow your business with content marketing, which is about providing prospects with relevant content and engaging consumers to have a relationship with your brand. a. True b. False 14. The model of mass-mediated communications is unidirectional, and not fluid. a. True b. False 15. Integrated brand promotion is the process of using one promotional tool that works to create widespread brand exposure. a. True b. False 16. Integrated brand promotion is a great way to think about advertising and branding related topics. a. True b. False 17. Promotion refers to a specific message that an organization has created to persuade an audience. a. True b. False 18. Advertising is a paid, mass-mediated attempt to persuade, and it is a key component to integrated brand promotion. a. True b. False

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Chap 01_8e 19. When consumers are reached by various forms of inconsistent messages, they will have an easier time understanding the brand and deciding whether to use it regularly. a. True b. False 20. Established brands such as Cadillac, the car brand, often face the challenge of maintaining an updated market-driven image and communicating the brand’s contemporary image. a. True b. False 21. Communication is inherently a social process. a. True b. False 22. The definition of IBP highlights that the IBP tools need to work together to create a consistent and compelling impression of the brand. a. True b. False 23. The marketer who does not use advertising and IBP as a way to build brand identity will, frankly, likely be ignored. a. True b. False 24. A way to achieve success in marketing is with integrated brand promotion. a. True b. False 25. Advertising is a business, an art form, an institution, and a cultural phenomenon. a. True b. False 26. In a model of mass communication, there is a production source, accommodation and negotiation of the message and its intent, clutter, reception, encoding, and decoding. a. True b. False 27. IBP is the use of many promotional tools, including advertising, in a coordinated manner to build and then maintain brand awareness, identity, and preference. a. True b. False 28. An advertising campaign refers to a specific message that an organization has created to persuade an audience. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 01_8e 29. Sponsorship, event marketing, sales promotions, public relations, and sponsored content are all examples of advertising. a. True b. False 30. An ad contains a single meaning or even the same meaning for each audience member, according to the model of mass-mediated communication. a. True b. False 31. Integrated brand promotion in action is a way to showcase how certain brands are integrating various forms of advertising and marketing communication. a. True b. False 32. Meeting client needs is an important aspect of advertising and integrated brand promotions. a. True b. False 33. A reference group is a particular group of consumers singled out by an organization for an advertising or IBP campaign. a. True b. False 34. Advertising today is more diverse and more dynamic as a part of integrated brand promotion. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

35. A paint store has launched an advertisement on a social media site. The ad promotes a new set of Acrylic paints and informs customers that the first fifty people to click on the ad will receive a free sample. This is an example of ___________. a. direct response advertising b. personal selling c. delayed response advertising d. internal positioning 36. The promotional tool used most often to communicate with members of a trade channel is personal selling. Which of the following is a reason behind this? a. Personal selling is the most inexpensive form of communication. b. Members of trade channels are the most conspicuous audience. c. Members of trade channels are the target audience for producers of only household products. d. The target audience represents a relatively small, easily identifiable group.

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Chap 01_8e 37. Integrated brand promotion (IBP) is: a. the collaboration of two or more brands within a single advertisement with the intent of sharing costs. b. the coordination of a number of promotional tools to create widespread brand exposure. c. a company's decision to focus on a wide range of traditional advertising forms to replace nontraditional forms. d. a unique concept seen mainly in local advertising campaigns.

38. (Scenario 1-2) The company launched the third product for senior citizens in the market, and their efforts were highly successful. Chug Enterprises now plans to introduce it worldwide. However, the way senior citizens perceive products vary from culture to culture. Thus, Chug Enterprises should engage in: a. cooperative advertising. b. international advertising. c. national advertising. d. regional advertising.

Scenario 1-1 In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. “I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away.” The company also removed all advertisements carrying the word “apparel,” and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall “performance” company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share.

39. (Scenario 1-1) One of Under Armour’s new retail outlets in the U.S. sends a direct mail to 500 households within a one-mile radius of the new store. In the email, the store announces the introduction of its new line of basketball shoes and offers incentives to any customer who walks into the store to purchase a pair of shoes from the new line. This direct mail: a. is paid for, mass mediated, and an attempt to persuade; therefore, it can be considered advertising. b. is paid for and is an attempt to persuade; however, it is only distributed locally and therefore cannot be considered advertising. c. is not received by a large enough number of people to be considered advertising. d. is not a part of an advertising campaign, and thus cannot be considered advertising.

40. (Scenario 1-2) For its second product to be successful, Chug Enterprises believes that it must effectively target youth. To do this, the company uses influencer marketing. In such a scenario, which of the following is the company most likely using? a. Personal selling b. Free sampling c. Peer-to-peer persuasion d. Coupons and rebates Copyright Cengage Learning. Powered by Cognero.

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Chap 01_8e 41. (Scenario 1-2) Chug Enterprises created the three products in a way that it appeals to separate target markets.

This was done to prevent its products from competing with one another for market share. This shows that Chug Enterprises understands the importance of: a. internal positioning. b. external positioning. c. inelasticity of demand. d. selective demand stimulation.

42. (Scenario 1-3) Which of the following activities, if performed, would be considered part of Sony's marketing mix? a. Forecasting a five-year financial plan to expand the firm b. Restructuring the organization to increase employee efficiency c. Hiring more workers into the firm d. Launching an advertisement campaign in schools 43. __________ attempts to develop brand awareness and preference over time, as well as emphasize the benefits of using that brand. a. Co-op advertising b. Direct response advertising c. Sales promotion d. Delayed response advertising 44. (Scenario 1-3) If Sony uses advertisements that focus on the niche characteristics of Move that Wii does not have, the company is using: a. external positioning. b. institutional advertising. c. brand extension. d. internal positioning.

45. (Scenario 1-1) Under Armour hopes that changing the company’s image from an apparel company to a “performance” brand will help increase its footwear sales. To make consumers aware of the change, Under Armour designs a number of commercials, print ads, and Internet advertisements all focusing on the company’s new motto, and immediately begins to apply them. All these elements make up a(n) __________. a. international advertising campaign b. cooperative advertising campaign c. advertising campaign d. promotional mix 46. Amaze, an online grocery store chain, has decided to run a series of advertisements. For this to be considered an advertising campaign, their ads must: a. focus on store products rather than store services. b. reinforce each other and attempt to create synergy for the brand. c. appear in print media. d. be unpaid communication.

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Chap 01_8e 47. A broad, unpaid message reminding consumers to wear their seat belt is an example of: a. a mobile advertisement. b. influencer marketing. c. personal selling. d. a public service announcement.

48. A politician makes a Facebook post about why voters should vote for her. In order for this message to be considered as an advertisement, which of the following conditions should be met? a. The message must be noncommercial. b. There must be a public service announcement included. c. The airtime must be paid for. d. The message must involve the promotion of a product.

49. There is a production source, a message, encoding, and decoding in a model of _______: a. mass-mediated communication. b. cooperative advertising. c. a focus group d. a sponsorship.

50. Milos, a men's deodorant brand, displays its product in advertisements as being worn by men who are attractive and popular. This is an example of _______________. a. symbolic value b. direct response advertising c. selective demand stimulation d. internal positioning 51. (Scenario 1-2) Chug's three different sports drinks are very popular in markets across the world. Now the company plans to launch a similar range of carbonated drinks by building on the popularity of the previous products.

This is an example of ________. a. market segmentation b. national advertising c. a brand extension d. a differentiation strategy 52. KidsCause, a metropolitan outreach organization that collects and donates toys for needy children, buys airtime on WXXY (a local TV station) to promote its annual toy collection. Amazing Ads is hired to take the account; they shoot the video and produce a commercial and then help with media placement. In this promotional effort, who is the agency? a. Amazing Ads b. A local TV station c. WXXY d. KidsCause

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Chap 01_8e 53. ________ is the process of creating a perceived distinction between an organization's brand and a competitor's brand. a. Differentiation b. Market analysis c. Co-op advertising d. Market segmentation 54. Effective internal positioning is accomplished by: a. distributing products to a market that is wider than those of one's competitors. b. using advertising to compare a product's distinctions from those of one's rival firms. c. developing brand features and values that are distinctive from the competition. d. developing vastly different products within the firm's product line.

Scenario 1-4 Target, a global discount retailer, generates around 65 billion dollars in sales annually. Additionally, the company employs more than 360,000 people worldwide. Target stores carry just about every major brand imaginable. Target also carries a number of its own brands including Market Pantry, Archer Farms, and Up and Up. Each of the brand labels appears on different products throughout the store—for example, the Archer Farms label appears on the retailer’s highest quality foods. The Market Pantry label appears on food items as well; however, these items are often sold at a significantly lower price. The Up and Up label is on a large range of products ranging from paper products to household cleaning supplies.

55. (Scenario 1-4) The company's goal is for a product with any one of Target’s in-house brand labels on it to be known by consumers for the values of the brand—both tangible and intangible. Thus, in this scenario, Target's goal is to _____________. a. create elasticity of demand b. conduct market segmentation c. establish brand loyalty d. stimulate latent promotion 56. Kofax Inc., a pet store, has established stores in more than 40 states in America. Additionally, it has advertised in all states of the country. This is an example of _______ advertising. a. local b. national c. regional d. global

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Chap 01_8e 57. Which of the following is an example of a brand extension? a. The manufacturers of Cocoa Flakes, a popular cereal, launches a cookie called "Cocoa Crunch" in a new product category. b. Tracker, a company selling security systems, advertises its product on a local television network. c. Dog Handler, a manufacturer of leashes for dogs, collaborates with a competitor to expand its market base. d. Blossoms, a women’s perfume line, advertises its new line through sales promotions and point-of-purchase advertising at department stores.

58. Mineral Inc., a manufacturer of mineral water, has recently launched its product in the market. It starts a rigorous advertising campaign to highlight the benefits of its product. This is an example of ________. a. primary demand stimulation b. economies of scale c. market segmentation d. selective demand stimulation 59. Benjie and his wife, Ella, are watching a television commercial that they’ve never seen before. Benjie thinks that the ad is funny and witty. However, Ella finds the ad to be misleading based on what she knows from using the product in the ad. This example illustrates that: a. ads are interpreted differently based on a person's experiences and beliefs. b. what a message means to any given consumer is a function of an isolated solitary thinker. c. the ad is communicated effectively to its target audience. d. the ad contains the same meaning for all audience members.

60. (Scenario 1-4) In one city, Walmart, a competing retail outlet, opens a store across the street from Target and a battle for business follows. To distinguish their stores from one another, both retailers create a series of new commercials to help promote their brand. Target’s commercials emphasize the fast, fun and friendly service that it provides for its guests, and uses several celebrity endorsements. Meanwhile, Walmart runs three different commercials that focus on the low prices of its products. This is an example of: a. corporate advertising. b. internal positioning. c. external positioning. d. product placement.

61. (Scenario 1-1) To promote Under Armour’s new brand image, the firm has launched large scale advertising in three different countries, making a minor change in the physical appearance of the ad by using a different actor from each country. This is an example of _________ advertising. a. international b. global c. cooperative d. national

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Chap 01_8e 62. The purchase of certain products, such as cars, shoes, and sunglasses, signify class membership. This indicates that these brands have ________. a. economies of scale b. social meaning c. internal positioning d. low brand equity 63. (Scenario 1-3) Individuals who have been using the Wii do not want to switch to the Move because they relate Wii to a superior gaming experience and also because it has been in the market for a long time. The Wii is an example of a product that has _________. a. brand equity b. brand variance c. brand extension d. elasticity of demand 64. Which of the following is a difference between IBP and IMC? a. IBP ignores the importance of communication whereas IMC does not. b. IBP focuses more on the need for coordinated and synergistic messages. c. IMC emphasizes the brand, whereas IBP does not. d. IBP goes beyond the parameters of IMC. 65. Public service announcements (PSAs): a. are a type of advertising that are run by nonprofit organizations. b. are commercial the way that ads are. c. attempt only to persuade and not to inform. d. are not necessarily “paid media” like advertisements are.

66. Which of the following is an example of international advertising? a. Crispy Cracks promoting their new line of cracker at the Olympics b. Flextronic advertising its flat-screen TVs in different states of a country c. DetergentPro creating different versions of its new detergent ad for various countries d. Tennis Fashion Inc. featuring its “unicorn” logo on gear worn by tennis players 67. Market segmentation is the process of: a. creating advertising strategies to reach out to a wide consumer base. b. creating a new product line that is relatively different from the firm's existing product line. c. identifying competitors in the market that could be possible threats to the success of the company. d. breaking down a large, widely varied market into more similar sub-markets.

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Chap 01_8e Scenario 1-2 Chug Enterprises is planning to create a new line of products and enter into the sports drink market. They plan to advertise the first product to teenagers as being the best-tasting sports drink on the market. The second product will be advertised to adults as being the lowest calorie sports drink one can buy. The third product will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each product will have separate, distinctive packaging.

68. (Scenario 1-2) To help build brand awareness, customer preference, and loyalty, Chug Enterprises plans a coordinated campaign using a variety of tools such as advertising in mass media, direct marketing, and Internet advertising. This process of combining coordinated communication to help customers identify and evaluate the relevance of Chug Enterprise’s products to their lives and value systems is known as ________. a. brand extension b. integrated brand promotion c. advocacy advertising d. institutional advertising 69. A family-owned meat shop has expanded to four locations within the Preston area and suburbs, running regular promotions to one zip code, where the shop is located. These social media ads are a form of advertising that will only go to this very small geographic area. What kind of advertising is this? a. local b. trade c. branding d. advocay Scenario 1-3 A videogame company, Nintendo, launched an innovative motion-sensing gaming console called the Wii. The Wii quickly took over as the leading gaming console because of its unique activity-enabling qualities, and for nearly four years, it dominated hardware sales in the gaming industry as any true competition for the product was yet to be introduced. However, this changed when Sony introduced its own motion-detecting gaming system to the market, the PlayStation Move. Sony has marketed the product as a superior product to Nintendo’s, claiming that it is more precise and flaunts the PlayStation’s high quality graphics. Sony’s Move has been a topic of great debate, but the reception of the product over the long haul is yet to be seen. To dethrone the Wii, Sony will need to find a way to appeal to those who have not yet bought into “motion gaming.” And of course, it wouldn’t hurt if Sony somehow finds a way to entice Nintendo followers to switch over to its newest addition to the gaming industry.

70. (Scenario 1-3) Sony created advertisements for its new motion-detecting gaming system to attract the attention of school-going children. The school-going children are Sony's __________. a. trade channel b. target audience c. sponsors d. clients

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Chap 01_8e 71. The mixing of various promotional tools with a branding perspective is known as __________. a. integrated brand promotion b. a marketing mix c. cooperative advertising d. market segmentation 72. Two components of the mass-mediated communication model are: a. primary demand and selective demand. b. advertiser and consumer. c. internal position and external position. d. production and reception.

73. Which of the following is true regarding advertising? a. Advertising is external to the social interaction process. b. Advertising is solely responsible for the increase of product sales. c. Advertising must consider audience categories, such as household consumers or members of business organizations, for its IBP communications. d. Advertising is a simple communication process.

74. Which of the following is true of integrated brand promotion (IBP)? a. It is a simple process. b. It uses promotional tools that do not need to be evaluated. c. It prevents the exposure of a brand. d. It creates synergy by having a consistent image or message.

75. (Scenario 1-1) The marketing team of Under Armour has come up with a strategy to advertise their shoes as a product that makes walking and running pleasurable. Marketing the shoes in this manner creates a perceived difference in the minds of customers. This is an example of _______. a. internal positioning b. brand extension c. differentiation d. market segmentation 76. eBUYERS, an online broker, pays for a 30-second television commercial to be telecast during the Football World Cup. The commercial promotes the reliability of eBUYERS advice, expertise, and personal attention in assisting online customers with stock portfolio creation and management. The spot created by eBUYERs is: a. a public service announcement. b. a point-of-purchase advertisement. c. representative of personal selling. d. an advertisement promoting a service.

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Chap 01_8e 77. Texas and surrounding states have specific trees that many people are allergic to, and as such, an allergy medicine company advertises a special product custom to this area of the country, and the ads go to consumers in that region of the country. This is an example of ________ advertising. a. global b. local c. cooperative d. regional 78. A brand of cereal is perceived by consumers to be a “good deal,” one that provides a certain level of comfort and satisfaction that goes well beyond the money it takes to purchase a few boxes. In this example, the cereal is considered to have: a. low brand loyalty. b. elasticity of demand. c. economies of scale. d. value.

79. When national companies and local merchants share advertising expenses, they are taking part in _________. a. brand extensions b. international advertising c. cooperative advertising d. trade channeling 80. Orange, a cell phone manufacturer, displays in its advertisement that its products are better than others in the market because they are waterproof and scratch proof. This is an example of _________________. a. selective demand stimulation b. economies of scale c. inelasticity of demand d. direct response advertising 81. Members of trade channels include: a. not-for-profit businesses. b. retailers. c. household consumers. d. government officials.

82. Which of the following is one of the four areas of responsibility in the marketing mix? a. Privacy b. Permissions c. People d. Promotions

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Chap 01_8e 83. Which of the following is considered as a member of a trade channel? a. Wholesalers b. Household consumers c. Government employees d. Philanthropic groups 84. (Scenario 1-4) In a majority of Target’s promotions, the store is marketed as “upscale,” and this is demonstrated through its prices, which are generally higher than its biggest competitor, Walmart. Still, even in times of recession, Target continues to increase its annual revenues and retain many of its customers. This can be attributed to: a. Target’s low brand equity. b. the inelasticity of demand shown by many of the company’s customers. c. Target’s increase in gross domestic product (GDP). d. the elasticity of demand shown by many of the company’s customers.

85. Which of the following is true of inelasticity of demand? a. The supply of the product is greater than its demand. b. Consumers are less sensitive to price increases. c. Customers have low brand loyalty. d. It leads firms to decrease profit margins.

86. In the model of mass-mediated communication, the: a. producers of the message control the reception of the content. b. producers of the message control the interpretation of the content. c. consumers interpret ads in a way that makes sense to them individually and serves their needs. d. eceiver's interpretations are invariably compatible with what the producer intended to convey.

87. Which of the following is an essential criterion for communication to be considered an advertisement? a. The communication must be noncommercial. b. It must be paid communication. c. The message conveyed must have a headline. d. It must involve face-to-face communication.

88. In today's world, what three elements do marketers want to build and maintain through their promotional and advertising efforts? a. Awareness, identity, and preference b. Attention, curiosity, and response c. Demand, value, and interaction d. Information, message, and communication

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Chap 01_8e 89. Samsonic is the leading manufacturer of televisions in the world. It has created a new advertisement that it wants to be aired all over the world, changing only the language for each country. This is an example of: a. national advertising. b. international advertising. c. regional advertising. d. global advertising.

90. Bella’s, a department store, has launched a series of advertisements inviting people to do their holiday shopping at their store. This is an example of ___________. a. institutional advertising b. delayed response advertising c. corporate advertising d. advocacy advertising 91. (Scenario 1-4) In a Facebook ad, Target purchases and runs a message that does not refer to any of the products it carries. Instead, it mentions that employees from each of its national stores contribute to community projects such as The United Way. This is an example of: a. corporate advertising. b. a public service announcement. c. direct response advertising. d. advocacy advertising.

92. Firms are developing opportunities in _____ through communication via devices like smart phones, tablets, and wearables. a. broadcast media b. mobile marketing, digital marketing, and social media marketing c. personal selling d. print media 93. ________ is a type of advertising that communicates the specific features, values, and benefits of a product offered by a particular company. a. Advocacy advertising b. Corporate advertising c. Brand advertising d. Institutional advertising 94. (Scenario 1-1) John receives a direct mail from Under Armour that offers a free poster of basketball star Brandon Jennings wearing a pair of the company’s new shoes. John likes the company's promotional offer.

Chang, who also receives the same direct mail, is not impressed by the offer and puts it aside after glancing through it. The differing reactions to the promotional effort are most likely the result of: a. varying content. b. different interpretations of the ad. c. similar characteristics of the target market. d. the rules and regulations of the direct mail medium.

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Chap 01_8e 95. Based on the criteria that define advertising, which of the following examples would be considered advertising? a. A candidate for city council going door-to-door urging people to vote for her. b. A car manufacturer stating the efficiency of its product to motivate customers to make a purchase. c. A public service announcement about the dangers of talking on the phone while driving. d. An actor being interviewed on television about his campaign to aid people with physical disabilities.

96. Describe briefly what a target audience means. Discuss any two audience categories.

97. What is advertising? Define. What are the three criteria that must be met for communication to be considered an advertisement? How does a public service announcement differ from advertising in the ways that it meets, or fails to meet, each of these criteria?

98. A brand is greatly shaped and impacted by advertising. List five ways in which advertising influences brand management and explain each of them briefly.

99. What is integrated marketing communication (IMC)? Discuss the differences between integrated marketing communication and integrated brand promotion (IBP).

100. Briefly explain the concepts of market segmentation, differentiation, and positioning.

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Chap 01_8e 101. Define marketing. Describe the marketing mix and the role of advertising in it.

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Chap 01_8e Answer Key 1. True 2. True 3. False 4. True 5. True 6. False 7. True 8. False 9. False 10. False 11. False 12. True 13. True 14. False 15. False 16. True 17. False 18. True 19. False 20. True 21. True 22. True 23. True 24. True 25. True 26. True

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Chap 01_8e 27. True 28. False 29. False 30. False 31. True 32. True 33. False 34. True 35. a 36. d 37. b 38. b 39. a 40. c 41. a 42. d 43. d 44. a 45. c 46. b 47. d 48. c 49. a 50. a 51. c 52. a 53. a 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 01_8e 55. c 56. b 57. a 58. a 59. a 60. c 61. b 62. b 63. a 64. d 65. d 66. c 67. c 68. b 69. a 70. b 71. a 72. d 73. c 74. d 75. c 76. d 77. d 78. d 79. c 80. a 81. b 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 01_8e 83. a 84. b 85. b 86. c 87. b 88. a 89. d 90. a 91. a 92. b 93. c 94. b 95. b 96. A target audience is a particular group of consumers singled out by an organization for an advertising or IBP campaign.

These target audiences are singled out because the firm has discovered that these specific audience members like the product category and might prefer their particular brand within that product category. Target audiences are always potential audiences because a company can never be sure that the message will actually get through to them as intended.

Audience Categories: Household consumers: They are the most conspicuous audience because most mass media advertising is directed at them.

Members of business organizations: They are the target of advertising for firms that produce business or industrial goods and services. Not-for-profit businesses such as universities, some research laboratories, philanthropic groups, and cultural organizations also represent an important and separate business audience for advertising.

97. Advertising is a paid, mass-mediated attempt to persuade.

The three criteria that must be met for a communication to be considered an advertisement are that it must be paid for, it must be mass mediated, and it must be an attempt to persuade.

A public service advertisement is mass mediated and involves an attempt to persuade. However, by definition, a public service announcement is not paid for and cannot be considered advertising.

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Chap 01_8e 98. Advertising can affect a brand in five broad ways: By informing and persuading: Target audiences can learn about a brand’s features and benefits through advertising. No other variable in the marketing mix is designed to accomplish this communication.

By introducing new brands or brand extensions: Advertising is absolutely critical when organizations introduce a new brand or extensions of existing brands to the market. When brand extensions are brought to market, advertising and IBP play a key role in attracting attention to the brand—so much so that researchers now suggest that “managers should favor the brand extension with a greater allocation of the ad budget. This is often accomplished with advertising working in conjunction with other promotional activities such as sales promotions and point-of purchase displays.

By building and maintaining loyalty among consumers: Loyalty to a brand is one of the most important assets a firm can have. Brand loyalty occurs when a consumer repeatedly purchases the same brand to the exclusion of competitors’ brands. Even though brand features are the most important influence on building and maintaining brand loyalty, advertising plays a key role in the process as well. Advertising reminds consumers of those brand features—tangible and intangible.

By creating an image and meaning for a brand: Advertising can communicate how a brand fulfills needs and desires and therefore plays an important role in attracting customers to brands that appear to be useful and satisfying. It can also help link a brand’s image and meaning to a consumer’s social environment and to the larger culture, and in this way, advertising can actually deliver a sense of personal connection for the consumer.

By building and maintaining brand loyalty within the trade: Wholesalers, retailers, distributors, and brokers can favor one brand over others given the proper support from a manufacturer. Advertising and particularly advertising integrated with other brand promotions is an area where support can be given.

99. Beginning in about 1990, the concept of mixing various promotional tools was referred to as integrated marketing communications (IMC). However, the reality of promotional strategies in the 21st century demands that the emphasis on communication give way to an emphasis on the brand. IMC emphasizes the communication effort per se and the need for coordinated and synergistic messages. IBP retains the emphasis on coordination and synergy of communication but goes beyond the parameters of IMC. In IBP, the emphasis is on the brand and not just communication. With a focus on building brand awareness, identity, and ultimately preference, the IBP perspective recognizes that coordinated promotional messages need to have brand-building effects in addition to the communication effects.

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Chap 01_8e 100. Advertising helps a firm implement the important market strategies of market segmentation, differentiation, and positioning.

Market segmentation is the process of breaking down a large and widely varied market (a heterogeneous market) into many smaller sub-markets or segments (homogeneous markets) based on certain consumer characteristics.

Underlying the strategy of market segmentation are the facts that consumers differ in their wants and that the wants of one person can differ under various circumstances.

Differentiation is the process of creating a perceived difference, in the mind of the consumer, between a brand and its competition. The perceived differences can be tangible differences, or they may be based on image or style factors.

The critical issue in differentiation is that consumers perceive a difference between brands.

Positioning is the process of designing a brand so that it can occupy a distinct and valued place in the target consumer’s mind relative to other brands. This distinctiveness can be communicated through advertising. The importance of positioning can be understood by recognizing that consumers create a perceptual space in their minds for all the brands they might consider purchasing.

A perceptual space is how one brand is seen on any number of dimensions—such as quality, taste, price, or social display value—in relation to those same dimensions in other brands.

101. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. These four areas of responsibility and decision making in marketing are referred to as the "marketing mix." The word mix is used to describe the blend of strategic emphasis on the product versus its price versus its promotion (including advertising) versus its distribution when a brand is marketed to consumers. This blend, or mix, results in the overall marketing program for a brand.

Advertising is important, but it is only one of the major areas of marketing responsibility and it is only one of many different IBP tools such as social media relied on in the marketing mix.

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Chap 02_8e Indicate whether the statement is true or false.

1. Firms that maintain and manage large databases of mailing lists are known as digital/interactive agencies. a. True b. False 2. It is common for social organizations to advertise at the national, state, and local levels. a. True b. False 3. Digital/interactive agencies are those that have expertise in preparing communications for new media, such as the Internet, mobile marketing, and interactive television. a. True b. False 4. Due to the backlash against advertising that clutter can cause, advertisers are integrating more tools within the overall promotional effort to reach more consumers in different ways, such as through mobile or social media or digital content. a. True b. False 5. The goal of creating persuasive communication is to attract attention and develop preference for a brand. This can be done well with integrated brand promotion via both digital and traditional marketing communications tools. a. True b. False 6. The old-style power struggles in the advertising industry were mild compared to the 21st-century power struggle going on in the industry now; consumers are tired of ads on every screen, so industry needs to adapt successfully to the new technologies that consumers are willing or even eager to use. a. True b. False 7. Advertisers do not like to handle their own public relations tasks because it requires highly specialized skills and talent not normally found within the company ranks. a. True b. False 8. A creative boutique’s greatest advantage is its niche expertise. a. True b. False 9. No matter what changes, the brand and its differentiation still need to be highlighted with persuasive communications. a. True b. False

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Chap 02_8e 10. A typical markup charge for outside services is five to ten percent. a. True b. False 11. Database consultants are particularly useful in planning coupon or direct mail campaigns. a. True b. False 12. Trade resellers of consumer products and services are the most prominent users of advertising and promotion. a. True b. False 13. Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users. a. True b. False 14. The advertising used by social organizations has a fundamentally different purpose compared to the advertising carried out by major multinational corporations. a. True b. False 15. A creative boutique’s niche expertise can be its greatest liability if the creative boutique is an extra expense that advertisers cannot afford. a. True b. False 16. Radio and satellite are examples of broadcast media. a. True b. False 17. Proctor & Gamble, a major company, can reach 70-80 million Facebook users through careful targeting. a. True b. False 18. It is mandatory for designers and graphic specialists to be involved in strategy planning. a. True b. False 19. Advertisers include business organizations, but exclude not-for-profit organizations. a. True b. False 20. A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 02_8e 21. A disadvantage of using media specialists is that they buy media in small quantities. a. True b. False 22. The idea behind crowdsourcing, which happens to be very synergistic with social media, is to prevent ideas about a new brand from becoming public to consumers. a. True b. False 23. Blogs have emerged as sophisticated sources of brand and product information and can synergize with social media. a. True b. False 24. Media conglomeration broadly concerns how there used to be a few main players in the media business but now many more channels and other forms of media are emerging. a. True b. False 25. The task of strategic coordination of media and promotional efforts has become simpler because of the proliferation of media options and extensive use of promotional tools beyond advertising. a. True b. False 26. At the local level, small retail shops deal only with household customers. a. True b. False 27. From Facebook to Twitter to Snapchat, consumers are seeking out information environments where they control their exposure to information rather than an advertiser or media company being back in control. a. True b. False 28. Social media is an example of the explosion of new media in recent years. a. True b. False 29. The four most prevalent agency compensation methods are commission, consultant, external facilitator, and production facilitator plans. a. True b. False 30. Under the commission system, the rate of commission is raised to 25 percent for outdoor media. a. True b. False

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Chap 02_8e Indicate the answer choice that best completes the statement or answers the question.

31. (Scenario 2-1) To generate interest in its new line of computers, Dell hires a company to design a number of contests and incentive programs that will help build excitement for the new line. This company is an example of a(n): a. fulfillment center. b. database agency. c. sales promotion agency. d. market research firm.

32. Which of the following best describes digital agencies? a. They focus on ways to use digital solutions for direct marketing and target market communications and social media b. They implement direct response campaigns using all forms of media. c. They design direct marketing campaigns that mainly use emails and telemarketing. d. They specialize in buying media time and space and offer media strategies to advertisement agencies.

33. ______ is used by organizations to get consumers committed to brands in a way that passive advertising cannot. a. Co-op advertising b. Phishing c. Crowdsourcing d. Broadcasting 34. (Scenario 2-3) Axel Corp. plans to reach out to local fashion stores and wholesale distributors. Axel Corp. can achieve this by employing an advertising agency specialized in _______. a. consumer sales promotions b. trade-market sales promotions c. infomercials d. a commission system

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Chap 02_8e Scenario 2-5 In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago-based consumers various “deals of the day.” At the time, Groupon had a unique business model—each day, one “Groupon” would be offered in a particular city. If a certain number of people signed up for the offer, then the deal became available to all. Now, years later, the business continues to grow, and the service is being offered in many U.S. cities. Google made a multi-billion dollar offer for the company that Mason turned down in December of 2010. Continuing the company’s rapid rise to success will be a challenging task, because the company will be the first to attempt to advertise the unique services. Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company’s success.

35. (Scenario 2-5) As Groupon’s services differ depending on the city in which it is offered, its CEO decides that each variation needs to have a catchy slogan that relates to that particular market. Which of the following types of advertising agencies would likely be the bestchoice to create these slogans? a. A digital/interactive agency b. A media specialist c. A creative boutique d. A production facilitator Scenario 2-4 Caltech Corp. has a 19 minute advertisement that is aired on a local news channel explaining to the public the benefits of its product. Sparkles Inc. has provided Caltech Corp. airtime on its television network, and has offered to advertise its product on its website as an act of goodwill.

36. (Scenario 2-4) Caltech Corp. has a 19-minute-long advertisement that explains to the public about its product. This is an example of a(n) _______. a. podcast b. electronic directory c. blog d. infomercial 37. Which of the following services occur within an ad agency? a. Administrative services b. Creative services c. Account services d. Production services

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Chap 02_8e Scenario 2-6 Pink Inc. has approached Ripple Effects with the layout of an advertisement for its new product that it plans to advertise. Ripple Effects has agreed to provide Pink Inc. with the cast and crew required to create the advertisement, choosing the location and the set up. Pink Inc. has employed Glamour, an advertising agency, to make the message theme of the advertisement more innovative. Glamour has charged the firm $50,000 per hour for its services.

38. (Scenario 2-6) Ripple Effects is an example of a ______________. a. media specialist b. creative boutique c. database consultant d. production house 39. Carmel Inc. has come up with the idea of creating a television ad for its new range of assorted cookies. The marketing executives approached RT Designs who will be filming the ad, preparing a set to record the ad, and employing an actress to play the role of a little girl enjoying her cookies. RT Designs is an example of a ________. a. creative boutique b. production house c. fulfillment center d. media specialist 40. (Scenario 2-3) Which of the following is most likely to provide Axel Corp. with a reasonable amount of media time at a rate lower than that provided by an advertiser? a. Production houses b. Sales promotion agencies c. Database consultants d. Media specialists 41. Which of the following best describes a media conglomerate? a. It is a firm that operates multiple media combinations. b. It is a firm that is a specialist in one particular form of media. c. It is a firm that specializes solely in buying media time and space. d. It is a firm that uses print media instead of broadcast media 42. A regional fast food chain called Platters is interested in opening a restaurant in a new market. The company plans to hire the services of a firm to collect the data needed to expand into the new market. In such a scenario, which of the following firm's services would it hire? a. A marketing research firm to conduct surveys to understand the potential market b. An advertising agency to create innovative ads c. A consultant to create message strategies and message themes d. Media organizations for placing ads in broadcast and print media to create awareness for the restaurant

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Chap 02_8e 43. CloudNine, an advertisement agency, charged Sparkles Inc. $50,000 at the rate of $5,000 an hour for the ten hours it spent designing an advertisement for the firm's new product launch ad. Which of the following systems of compensation did CloudNine utilize? a. A fee system b. A commission system c. A markup charge system d. A pay-for-results system 44. PinBall Inc. sought the help of Blazer Corp. to help them reach a niche group of vendors that they have been trying to do business with. Blazer offers the solution of publishing an advertisement in a trade journal which would help create awareness about the firm's product. In this scenario, Blazer Corp. specializes in ___________. a. the management of databases b. creative services c. consumer sales promotions d. trade-market sales promotions 45. ______ are experts in finding locations, securing dates, and putting together a team of people to pull off a promotional activity. a. Event-planning agencies b. Creative boutiques c. Fulfillment centers d. Direct marketing agencies 46. The _______ services department of an advertising agency typically includes the company's art directors, illustrators, and copywriters. a. creative b. media buying c. marketing d. administrative 47. Which of the following is an example of outdoor support media? a. Podcasts b. Billboards c. Catalogs d. Public relations 48. Which of the following acts as a support to direct marketing agencies and follow-up on the delivery of their direct mail? a. Creative boutiques b. In-house agencies c. Media specialists d. Fulfillment centers

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Chap 02_8e 49. A compensation system that is based on the achievement of specific objectives of the client is known as a _______ . a. pay-for-results compensation b. a markup charge c. commission system d. fee-based system 50. A(n) _______ coordinates the research effort of an advertisement agency. a. graphic designer b. media specialist c. account planner d. fulfillment center 51. (Scenario 2-2) Brush Strokes is looking for a way to increase sales. The advertising agency helps create an innovative message that will be conveyed through promotions and mobile marketing. Which of the following agency services is the company using? a. Billing services b. Creative services c. Administrative services d. Media buying services 52. _______ are specialists that design and then operate contests, sweepstakes, special displays, or coupon campaigns for advertisers. a. Creative boutiques b. Sales promotion agencies c. Database agencies d. Fulfillment centers 53. In which of the following areas is the federal government’s spending on advertising and promotion concentrated? a. The internal revenue service b. Political campaigns c. Armed forces recruitment d. Trade and commerce 54. (Scenario 2-5) Groupon decides to find a firm that can help them in planning, preparing, and executing promotional campaigns. The company whose services Groupon is seeking is referred to as a(n): a. client. b. database consultant. c. sponsor. d. external facilitator.

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Chap 02_8e 55. A(n) ______ is often known as the advertising department in a firm. a. creative boutique b. full-service agency c. interactive agency d. in-house agency 56. Advertisers and their agencies rely primarily on external facilitators for: a. consumer research. b. media buying. c. assessing the effectiveness of promotional programs. d. production processes.

57. (Scenario 2-4) Sparkles Inc. is an example of a ________________. a. production facilitator b. full-service agency c. media conglomerate d. fulfillment center 58. (Scenario 2-5) Groupon decides to hire a full-service advertising agency to create a new campaign for the company. The ad agency agrees to be compensated if Groupon notices any positive change in sales and the number of customers on its site. This is an example of a(n) system of compensation. a. fixed fee b. commission c. incentive-based d. markup charge 59. A ______ is a general description for all organizations in the marketing channel of distribution that buy products to make them available to customers. a. sponsor b. media buyer c. media specialist d. trade reseller 60. A compensation system that adds a percentage amount to a variety of services the agency purchases from outside suppliers is known as a ______. a. markup charge b. fee system c. pay-for-results compensation d. commission system

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Chap 02_8e Scenario 2-2 Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major State University. Brush Strokes gets a majority of its business from the student population. It uses the services of a local full-service advertising agency to promote themselves. A large part of its marketing budget has been used in running small advertisements in the local and school newspapers at the beginning of each term.

The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the University’s football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching a larger portion of the student population, they have not come to any conclusions about the best way to accomplish this.

61. (Scenario 2-2) Which one of the following would Brush Strokes’ full service agency be least qualified to handle? a. Researching about the buying trends of the company's customers b. Creating a television commercial c. Forecasting dividend earnings of stockholders d. Generating awareness about the brand 62. Which of the following is an example of interactive media? a. Banners b. Electronic directories c. Catalogs d. social media 63. Advertisers are also known as ______ by their advertising and promotion agency partners. a. consultants b. facilitators c. sponsors d. clients 64. _______ provide the physical facilities, including sets, stage equipment, and crews needed for broadcasting. a. Production houses b. Creative boutiques c. Fulfillment centers d. Interactive agencies 65. Design Solutions has two television network channels and its monthly magazine, Bling, is the most popular fashion magazine in the country. It also has a number of websites for its television channels and online sports news.

Design Solutions is an example of a ________. a. creative boutique b. media conglomerate c. media specialist d. digital/interactive agency

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Chap 02_8e 66. (Scenario 2-6) Glamour follows a a. commission b. cost-plus c. markup charge d. fee

system of compensation.

67. _______ entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan. a. Administrative services b. Creative services c. Account services d. Media planning and buying services 68. (Scenario 2-6) Glamour is an example of a __________. a. media specialist b. direct marketing agency c. creative boutique d. digital/interactive agency 69. (Scenario 2-2) The owners of Brush Strokes are concerned that their agency may be recommending television advertising because it would be profitable for the agency. Brush Strokes can avoid paying for ineffective advertising campaigns by changing to a _________ system of compensation. a. commission b. fee c. pay-for-results d. markup charge 70. The graphic mark that identifies a company is known as a(n) a. patent b. blog c. logo d. slogan

.

71. (Scenario 2-5) Groupon’s management has budgeted $20,000 for social media advertising this year. How much can their advertising agency expect to earn if they are using a traditional commission system? a. $2,000 b. $3,000 c. $5,000 d. $8,000

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Chap 02_8e 72. (Scenario 2-6) Pink Inc. has chosen to advertise using key chains and complementary pens with the firm's logos on them. The type of media chosen by Pink Inc. is referred to as ___________. a. infomercials b. print media c. interactive media d. support media 73. Barlow and Baley Inc., an advertisement agency, handles the clients’ needs from account planning to creative to media to production in both digital and traditional areas. Barlow and Baley Inc. is an example of a(n) _______. a. full-service agency b. in-house agency c. interactive agency d. database consultant 74. (Scenario 2-1) Dell plans to strengthen its relationships with the media, industry associations, and its various competitors. In such a scenario, Dell would hire ________ to help strengthen their relationships. a. a public relations firm b. a market research firm c. a creative boutique d. a database agency 75. Grand Resorts has acquired the services of Elegant Inc. to develop advertisements for their organization. Elegant Inc. has advised them to add a panoramic view to billboard ads and to portray tourists lounging by the sea. Elegant Inc. is an example of a(n) ________. a. media specialist b. creative boutique c. digital/interactive agency d. in-house agency 76. (Scenario 2-3) A(n) ________ can help Axel Corp. in designing and executing direct response advertising campaigns using traditional media. a. database consultant b. public relations firm c. fulfillment center d. interactive agency 77. Which of the following services of an advertising agency involves expressing the benefits of a company's brand in interesting and memorable ways? a. Creative services b. Billing services c. Administrative services d. Media buying services

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Chap 02_8e 78.

are experts in designing incentive programs, point-of-purchase materials, and in-store merchandising. a. Database agencies b. Sales promotion agencies c. Fulfillment centers d. Event-planning agencies

Scenario 2-3 Axel Corp., a new clothing line manufacturer, plans to reach out to the local fashion stores and wholesale distributors around the country. It also plans to offer a discount on its products for the first 100 customers and establish a coupon system for the first six months of sales. The marketing team is looking to create a television advertisement and is looking for ways to improve on the ideas that they have come up with for the ad.

79. (Scenario 2-3) Which of the following agencies would help improve the ideas that Axel Corp. has for its advertisement? a. A direct marketing agency b. A creative boutique c. A database agency d. A fulfillment center Scenario 2-1 As one of the world’s largest computer and technology developers, Dell, Inc. has never been a stranger to advertising. However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years. In the past, Dell found success promoting its products as some of the most inexpensive computer products in the market. However, the company’s new ad campaign, which will be targeted toward more high-end users, will make no mention of product price. The company is looking to reinvent its image and believes that the first step in doing so is to revamp its outdated advertising campaign.

80. (Scenario 2-1) Dell decides not to use a full-service advertising agency because it would like its own employees to take responsibility for the new ad campaign. However, full-service agencies do provide a number of advantages— one of these advantages is that they: a. are always large, employing thousands of people. b. can provide the physical facilities for broadcast production. c. have an array of talented professionals to meet all the needs of a client. d. are the only way to create an ad campaign.

81. _______ has emerged as the most significant form of consumer control over information creation and communication. a. Web advertising b. Social media c. Interactive television d. Direct marketing

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Chap 02_8e 82. ______ is a high-speed technology that allows consumers to customize their programming and target very specific audiences. a. Transit b. Crowdsourcing c. Broadband d. Cable 83. (Scenario 2-1) In order to reinvent the company’s image, Dell puts together a team comprised of members from its marketing department who will be responsible for every aspect of the advertising campaign. The company decides that involving employees in the campaign will allow it to maximize the profits generated from the new campaign. This team will be an example of a(n): a. creative boutique. b. full-service advertising agency. c. fulfillment center. d. in-house agency.

84. (Scenario 2-2) The owners of Brush Strokes have called a meeting with their agency to determine ways in which it can benefit most from advertising. The agency has agreed to help in identifying the benefits of the brand, its target audience, the best competitive positioning, and developing a complete plan. In such a scenario, which of the following services is the agency offering? a. Media buying services b. Billing services c. Account services d. Marketing services 85. Which of the following is true of crowdsourcing? a. It refers to managing the supply chain system in a way that will most effectively reach the target markets. b. It aims at getting consumers more involved with and committed to a brand. c. It indicates the process of describing the firm’s objectives for the brand in the near term and long term. d. It refers to passive, intrusive advertising.

86. Harper & Kane advertising agency sets an hourly rate for the services it provides to its clients. This rate is based on the average salary of all the members in the creative department. Harper & Kane uses the __________ system. a. commission b. cost-plus c. markup charge d. fee

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Chap 02_8e 87. Websites frequented by individuals with common interests where they can post facts, opinions, and personal experiences are known as _______. a. paywalls b. blogs c. infomercials d. creative boutiques 88. ___________ help firms in creating the visual impression of its advertising material. a. Sales promotion agencies b. Fulfillment centers c. Designers d. Bloggers 89. With media clutter and fragmentation: a. integrated brand is all the more important. b. the probability of any one advertisement making a real difference has increased manifold. c. there are very few media choices available to advertisers. d. promotion options are no longer attractive to advertisers.

90. What is crowdsourcing? Explain.

91. Describe the role that advertisers play for trade resellers.

92. List and describe the four methods of agency compensation.

93. Describe any three types of services commonly offered by advertising and promotion agencies.

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Chap 02_8e Answer Key 1. False 2. True 3. True 4. True 5. True 6. True 7. True 8. True 9. False 10. False 11. True 12. False 13. True 14. False 15. True 16. True 17. True 18. False 19. False 20. True 21. False 22. False 23. True 24. False 25. False 26. False

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Chap 02_8e 27. False 28. True 29. False 30. False 31. c 32. a 33. c 34. b 35. c 36. d 37. d 38. d 39. b 40. d 41. a 42. a 43. a 44. d 45. a 46. a 47. b 48. d 49. a 50. c 51. b 52. b 53. c 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 02_8e 55. d 56. d 57. c 58. c 59. d 60. a 61. c 62. d 63. d 64. a 65. b 66. d 67. c 68. c 69. c 70. c 71. b 72. d 73. a 74. a 75. b 76. a 77. a 78. b 79. b 80. c 81. b 82. c Copyright Cengage Learning. Powered by Cognero.

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Chap 02_8e 83. d 84. c 85. b 86. d 87. b 88. c 89. a 90. Crowdsourcing involves the online distribution of certain tasks to groups (crowds) of experts, enthusiasts, or even consumers. The idea behind crowdsourcing is to get consumers more involved with and committed to a brand in a way that passive, intrusive advertising simply cannot. Consumers help “build the brand” with recommendations for features or even advertising campaign images. They also can communicate about the brand to audiences in ways that seem natural and credible— something corporate-launched advertising struggles with.

91. A trade reseller is a general description for all organizations in the marketing channel of distribution that buy products to resell to customers. Resellers can be retailers, wholesalers, or distributors. These resellers deal with both household consumers and business buyers at all geographic market levels.

Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users. Regional retail chains, typically grocery chains or department stores serve multistate markets and use advertising suited to their regional customers. At the local level, small retail shops of all sorts rely on social and digital media, newspaper, radio, television, and are a completely different breed of reseller. Technically, these types of companies deal only with business customers, since their position in the distribution channel dictates that they sell products either to producers (who buy goods to produce other goods) or to retailers (who resell goods to household consumers). Wholesalers and distributors have little need for mass media advertising over media such as television and radio. Rather, they use trade publications, directory advertising such as the Yellow Pages and trade directories, direct mail, personal selling, and their Internet websites as their main advertising media. This has been revolutionized by digital media, which has in some cases largely replaced much printed material.

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Chap 02_8e 92. Commission system: The traditional method of agency compensation is the commission system, which is based on the amount of money the advertiser spends on media. Under this method, 19 percent of the total amount billed by a media organization is retained by the advertising or promotion agency as compensation for all costs in creating advertising/promotion for the advertiser. The only variation is that the rate typically changes to 16 percent for outdoor media. This is a traditional system, and not all agencies use it.

Markup charges: This method of agency compensation adds a percentage markup charge (sometimes referred to as cost-plus) to a variety of services the agency purchases from outside suppliers. In many cases, an agency will turn to outside contractors for art, illustration, photography, printing, research, and production. The agency then, in agreement with the client, adds a markup charge to these services.

F ee system: A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided. The hourly rate can be based on average salaries within departments or on some agreed-on hourly rate across all services. This is the most common basis for promotion agency compensation.

Pay-for-results: Many advertisers and agencies alike have been working on compensation programs called pay -forresults or incentive-based compensation that base the agency’s fee on the achievement of agreed on results.

93. The types of services commonly offered by advertising and promotion agencies are as follows: Account Services: These services are offered by managers who have titles such as account executive, account supervisor, or account manager and who work with clients to determine how the brand can benefit most from advertising and IBP. Account services entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan.

Marketing Research Services: Research conducted by an agency for a client usually consists of the agency locating studies (conducted by commercial research organizations) that have bearing on a client’s market or advertising and IBP objectives. The research group will help the client interpret the research and communicate these interpretations to the creative and media people.

Creative Services: The creative services group in an agency comes up with the concepts that express the value of a company’s brand in interesting and memorable ways. In simple terms, the creative services group develops the message that will be delivered through advertising, sales promotion, direct marketing, social networks, mobile marketing, event sponsorship, or public relations.

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Chap 03_8e Indicate whether the statement is true or false.

1. In the late 1880s, a few companies began putting names and labels on previously unmarked products, and branding began. a. True b. False 2. By 1900, an increase in the supply of mass-produced goods, and the increasing demand for these goods by a growing urban population, led to the growth of advertising. a. True b. False 3. Advertisers responded to the Depression by adopting a soft, feminine style in their ads. a. True b. False 4. Advertising changed commerce, but not society. a. True b. False 5. The media revolution was a period during which advertising started to take on the themes, language, and look of the revolutionary 1960s. a. True b. False 6. Mass media is not supported by advertising. a. True b. False 7. Hershey’s and Pepsi were some of the first branded goods found on store shelves. a. True b. False 8. The first regulatory initiative by the federal authorities was the Pure Food and Drug Act, which required manufacturers to use the healthiest ingredients possible. a. True b. False 9. Advertisements during the 1980s reflected “traditional” American values. a. True b. False

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Chap 03_8e 10. Advertising in the early 1800s was widely considered a luxury or something only for wealthy businesses and businesspeople. a. True b. False 11. The mid-1990s presented insecure moments for advertisers heavily invested in traditional advertising. a. True b. False 12. In the 1970s, there was a growing concern over what effect $200 million a year in advertising had on children. a. True b. False 13. In the 1980s, the Saatchi and Saatchi ads were primarily politically neutral. a. True b. False 14. The rise of capitalism was one of the four major factors that gave rise to advertising. a. True b. False 15. E-business is a form of e-advertising in which companies sell to household consumers. a. True b. False 16. In the 1700s, a middle class, spawned by the rise of regular wages from factory jobs, was beginning to emerge. a. True b. False 17. Men became the major target of advertisers in the 1920s because they were the head of households and made most purchase decisions. a. True b. False 18. In the late 1800s, consumers were willing to pay more for brands than for unmarked commodities, even if they were identical. a. True b. False 19. After WWII and into the 1950s, ads began to take on an air of self-awareness, conveying the sentiment that “you know it’s an ad and so do we.” a. True b. False

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Chap 03_8e 20. The prewar movement to reform and regulate advertising was dissipated in the 1920s by the distractions of war and advertising’s role in the war effort. a. True b. False 21. With the invention of the telegraph in 1844, a communication revolution was set in motion. a. True b. False 22. Branded entertainment gets lesser First Amendment protection than ordinary advertising does. a. True b. False 23. In the 1970s, cable programming grew in quality with several viewing options, and advertisers learned how to reach more specific audiences. a. True b. False 24. During the 1920s, "fantasy" advertisements dominated the ad industry. a. True b. False 25. Manufacturers were required to list the active ingredients in their products after the creation of the Pure Food and Drug Act in the early 1900s. a. True b. False 26. In the 17th century, printed advertisements were published in newsbooks. a. True b. False 27. When the Western world turned to capitalism as the foundation of its economic system, the foundation was NOT suited for advertising. a. True b. False 28. Advertising was highly regulated during the industrial era, which limited the scope for advertisers to come up with creative ads. a. True b. False 29. During the 1950s, a renewed consumer culture resumed, and advertising once again found the respectability and fame it had in its heyday of the 1920s. a. True b. False

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Chap 03_8e 30. The Great Depression was an economic force that yielded the need for advertising. a. True b. False 31. During the widespread poverty of the Great Depression, most segments of the population believed in the power of advertising. a. True b. False 32. In the mid-1800s, mass-circulation magazines began to make national advertising possible, and national advertising began to make national brands possible. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

33. By the late 1960s, advertisers had realized that advertisements had become: a. uncreative. b. ineffective to increase the sale of products. c. a symbol of consumption. d. purely informational in nature.

34. (Scenario 3-5) During which period did product show blends for products such as the Strawberry Shortcake toy make regulation more difficult and enrage regulators? a. World War II and the 1950s b. The Designer Era c. The 1970s d. Peace, Love, and Creative Revolution 35. Which of the following is true of branded entertainment? a. It blends advertising and integrated brand promotion with entertainment. b. It is a subset of product placement. c. It uses solely television programming to create entertainment. d. It is also known as consumer-generated content.

36. How were women depicted by advertisers in the 1950s? a. As free spirits with new-found equality and respect b. As prominent members of the business community c. As leading men in large multinational companies d. As following strict gender roles and sexual norms

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Chap 03_8e 37. (Scenario 3-1) If an advertisement for Ivory soap was reflective of the style of ads during the period known as the “P.T. Barnum Era,” it would: a. consist of exaggerated claims. b. have extensive photography. c. reflect conservative values. d. use very limited copy.

38. (Scenario 3-4) A recent advancement makes the use of various forms of advertising more desirable because it allows the amount of ad exposure and impact to be directly measured, and allows companies such as P&G and Walmart to measure the success of their experimental methods. This advancement is in: a. print media. b. subliminal advertising. c. broadcast media d. interactive media.

39. The expansion of newspaper circulation in America was fostered by: a. traveling circuses, carnivals, and theatrical performances. b. increased interest among readers for television program listings. c. extended railroads and growing urban centers. d. highly differentiated but unbranded products.

40. During the 1950s, Americans began to fear: a. that they were being seduced by subliminal advertising. b. that ads were not based on modern science. c. purchasing unbranded goods. d. that the consumer culture was disappearing.

41. (Scenario 3-2) During the creative revolution, advertising: a. was dominated by subliminal advertising. b. reverted back to focusing on the product instead of the brand. c. became aware of its own role in consumer culture. d. reaffirmed gender roles and sexual norms.

42. (Scenario 3-1) To which of the following eras does Ivory soaps belong? a. The preindustrialization era b. The industrialization era c. The P.T. Barnum era d. The Great Depression

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Chap 03_8e 43. Which of the following was a result of the principle of limited liability gaining acceptance in the 1840s? a. Lower number of businessmen investing money in ventures b. Higher risk for investors in business ventures c. Lower risk of losing shares in a corporation for businessmen d. Accumulation of large amounts of capital to finance the Industrial Revolution 44. (Scenario 3-5) Ads that first showed the “male” domain as the office and the “feminine” space as the home were a part of the _____ era. a. World War II and the 1950s b. Great Depression c. 1920s d. peace, love, and the creative revolution 45. For advertisers, one main difference between the period immediately after World War I and the period immediately following World War II was that, after World War I, . a. advertising was distrusted by people b. rigid government regulations were established for ads c. ads were classy and sophisticated d. ads were subtle and clutter-free Scenario 3-1 In the early and mid-1800s, soaps were made from animal fats. The perishable quality of the soap, however, meant that manufacturers could only sell a product with regional appeal. This changed when soap makers began to use vegetable fats and perfume in the soap-making process. According to Procter & Gamble, one batch of this vegetable-based soap was left to mix too long. The result was a product that floated in water due to an excess amount of air. The company turned this into a selling point and, in 1882, launched one of the first soaps with the potential for national sales—Ivory soap—with the slogans “It floats” and “99-44/100 percent pure.”

46. (Scenario 3-1) Jump to modern times: If the Ivory soap was doing product placement in a television show, what is that an example of in today’s world? a. Magazines b. Newsbooks c. Branded entertainment d. Radio broadcasts 47. (Scenario 3-5) Which of the following is true of advertising during the 1980s? a. It was dominated by Internet adverting and other e-brand promotions. b. Television advertising was influenced by rapid cuts with a very self-conscious character. c. New interactive media allowed direct measurement of ad exposure and impact. d. E-commerce and m-commerce changed the way people shop.

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Chap 03_8e 48. By the early 1900s, the “power of advertising” was based on the reality that consumers: a. believe that branding was no longer the norm. b. like durable, reliable products with a no-frills advertising style. c. are willing to pay more money for brands. d. see advertising suspiciously that tempt them into excessive consumption.

49. Which of the following is true about advertising in the industrialization era? a. Banks considered advertising to be a sign of financial weakness. b. Strict laws on advertising prevented advertisers from lying about their products. c. Advertising was considered as prestigious by most segments in a society. d. Advertisements appeared solely in the form of newsbooks.

50. In the mid-1800s, advertising was done primarily through ______. a. radio broadcasts b. dailies c. infomercials d. magazines 51. During which of the following eras did consumer culture become the new normal, a permanent central feature of society? a. The Depression (1929 to 1941) b. World War II and the 1950s (1942 to 1960) c. The Preindustrialization Era (Pre-1800) d. The Era of Industrialization (1800 to 1875) 52. The 1970s was America’s age of a. self-doubt b. class consciousness c. adopting traditional values d. serious, meaningful ads

, and the advertising of the time reflected this.

53. In today’s age of Web 2.0: a. companies find consumers primarily through mass exposure. b. firms have replaced all pull strategies with push strategies. c. consumers have much lesser access to information. d. consumers can communicate with each other.

54. Which of the following is true about advertisements in the preindustrialization era? a. The advertisements were published in magazines. b. The advertisements in dailies were the most popular. c. The advertisements ushered in a dominant consumer culture. d. The messages were informational in nature.

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Chap 03_8e 55. By the late 1800s, manufacturers were developing brand names. This helped them: a. steer clear from advertising their products. b. lower their economies of scale. c. gain power. d. lower their prices of products.

56. Which of the following is true about advertising during the period between 2000 to the present? a. Traditional advertising gained a stronger foothold than ever before. b. Interactive media hindered the direct measurement of ad exposure and impact. c. Consumer-generated content, e-business, and ad blockers became key aspects of the IBP industry. d. The Internet was able to yield precise measurements of ROI in advertisement.

57. During the 1970s, the demanded a higher standard of honesty and disclosure from the advertising industry. a. NationalSecurityCouncil b. Federal Reserve Board c. Action for Children’s Television d. Federal Trade Commission 58. (Scenario 3-5) Ads in the designer era . a. were about public consumption status a. were about public consumption status b. were free from the influence of the rapid-cut editing style of MTV c. focused on modern, contemporary values d. rebelled against traditional American values 59. Who added to the fear and hysteria over advertising in the 1950s? a. Bruce Barton and his book called The Man Nobody Knows b. Helen Resor and James Webb Young from the J. Walter Thompson advertising agency c. James Vicary’s false claim about the effect of subliminal messages d. Heads of advertising agencies, Leo Burnett and David Ogilvy Scenario 3-5 Jerome Brown is a student of marketing and advertising at a small college in the Midwest. He has been given the task of researching the history of modern advertising as a part of a group presentation. Jerome is sitting in the school’s library, carefully looking at a wide variety of magazine ads of different time periods of the 20th century to try to understand how advertising has evolved. Here are some descriptions of the ads that he finds: 60. (Scenario 3-5) Ads of a particular era focused on the product itself, using lots of copy while lacking the real-world context of accurate information. This is a dominant characteristic of the era. a. designer b. peace, love, and the creative revolution c. World War II and the 1950s d. P.T. Barnum Era

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Chap 03_8e 61. (Scenario 3-2) The “Lemon” ad is characteristic of the style of advertising for which the creative revolution is known. The ad can be described as having a: a. well-researched, hard-sell approach. b. simple style and self-effacing humor. c. complex, intelligent execution. d. dense copy with incredible claims.

62. Which of the following is true about advertising during the Great Depression? a. Advertising found respectability, fame, and glamour during this era. b. Consumers believed that ads helped them choose the right product. c. Advertisers adopted a tough, no-frills advertising style. d. Consumers believed blindly in advertisements and brands.

63. How did early marketers establish a degree of power with their brands? a. By getting consumers to identify them and pay higher prices for them b. By creating normal and ordinary products so that consumers would easily accept them c. By motivating general stores and grocers to replace branded products with unmarked products d. By reducing their prices of products 64. Beginning in 1938, the U.S Congress began to pass real advertising reform, including a law banning “deceptive acts of commerce.” This meant that advertisers were now: a. expected to promote family values. b. banned from advertising cigarettes and alcohol. c. held liable for making false claims. d. banned from using inappropriate sexual content.

65. During which era were big businesses and advertising viewed with suspicion? a. The Depression (1929 to 1941) b. 1920s (1918 to 1929) c. The P.T. Barnum Era (1875 to 1918) d. The Designer Era (1980 to 1992) 66. Which of the following is a major factor that gave rise to advertising? a. The industrial revolution b. The rise of socialism c. The reduced importance of branding d. The rise of social media

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Chap 03_8e 67. Which of the following were among the four agencies most noted for their role in the creative revolution of the 1960s? a. Doyle Dane Bernbach and Wells Rich and Green b. J. Walter Thompson and N. W. Ayer c. BBDO d. Ted Bates agency and Lord and Thomas 68. Which of the following advertising agencies dominated the 1920’s ad industry? a. Doyle Dane Bernbach b. J. Walter Thompson c. Leo Burnett d. Wells Rich and Green 69. During the 1840s, the _______ emerged as a way for individuals to reduce the risk of the loss of personal wealth when investing in business ventures a. creation of business insurance b. principle of limited liability c. concept of dividend distribution d. process of double taxation 70. During the , advertising messages were primarily informational in nature. a. preindustrialization era (pre-1800) b. designer era (1980 to 1992) c. P.T. Barnum era (1875 to 1918) d. 1920s (1918 to 1929) 71. In the mid-1990s, William T. Esrey, chairman and CEO of Sprint, announced that clients were going to hold ad agencies more closely accountable than ever before. He said this because: a. billing scandals had undermined the confidence of advertisers in their agencies. b. interactive media was being replaced by the wide range of traditional media. c. the technology to measure advertising’s impact had improved. d. the fundamental reasons to advertise had changed.

72. (Scenario 3-1) One effect of the passage of the Pure Food and Drug Act of 1906 was that: a. Ivory soap had to become hundred percent pure. b. advertising claims for products like Ivory soap became strictly regulated. c. the manufacturer of Ivory soap had to list its ingredients on the label. d. branded products like Ivory had to trademark their brand names.

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Chap 03_8e 73. (Scenario 3-2) One notable characteristic of the creative revolution was that: a. it immediately started responding to the massive social revolution. b. advertising played a role in discouraging consumption. c. art directors and copywriters began to have more say over how agencies were run. d. advertising as an institution was unaware of its own role in consumer culture.

74. The foundation was laid for advertising to become a prominent part of the business environment when the Western world turned to as the foundation of economics. a. socialism b. communism c. capitalism d. syndicalism 75. Why did women become the primary target for advertisers in the 1920s? a. They enjoyed a significantly higher standard of living than men. b. They made most of the purchasing decisions for the household. c. Public pleasure was considered more of a sin than in the Victorian era. d. The chain of needs existed mainly more women, and not men.

76. (Scenario 3-3) With reference to the era in which Zooppa was formed, Zooppa's advertisements would most likely be: a. deceiving and filled with false facts. b. patriotic and centered on consumption. c. bold and carnival-esque. d. creative and revolutionary.

77. _______ became the biggest word of the 1970s, a word that was integrated into the promotional themes of the decade. a. “We” b. “Society” c. “Me” d. “Modern” 78. Ads in the 1920s showed slices of life in a way that depicted: a. garish designs illustrating unrealistic situations. b. ads that were purely informational in nature. c. how consumers should have a good time. d. less visual ads than in the past.

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Chap 03_8e 79. One of the changes seen in advertising during the 1980s was the: a. growth and impact of British agencies. b. fear of subliminal advertising. c. advent of documentary advertising. d. separation of business and politics.

80. (Scenario 3-4) Branded entertainment has become popular in recent years because of its many advantages. One of its main advantages is that: a. it can avoid consumers’ well-trained avoidance mechanisms to advertisements. b. it is looked at as commercial speech rather than artistic speech and is protected by the first amendment. c. it is required to go through all the ad regulations. d. it enables the traditional advertising industry to become clutter-free.

Scenario 3-3 Zooppa, a pharmaceutical company, started its business in 1850. Its advertisements helped their drugs to grow in popularity and were well-known for a brief period. The company had developed a logo and had made itself known by this symbol on all of its product wrappers.

81. (Scenario 3-3) Which of the following eras would Zooppa belong to? a. The industrialization era b. The P.T. Barnum era c. The preindustrialization era d. The era of Great Depression 82. During which era of advertising did consumers first begin to surround themselves with devices related to communication? a. The 1970s (1973 to 1980) b. Peace, Love, and the Creative Revolution (1960 to 1972) c. World War II and the 1950s (1942 to 1960) d. The Depression (1929 to 1941) 83. One of the elements that characterizes present day advertising is that consumers: a. rely more on advertisers and agencies for information. b. are empowered. c. are no longer brand-conscious. d. can no longer co-create brand messages like before.

84. Which of the following is true about the designer era of advertising? a. It was marked by the advent of the Internet. b. Ads no longer reflected traditional values. c. Consumers preferred unbranded products over branded products. d. Ads openly promoted consumption, but in a conservative way.

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Chap 03_8e 85. (Scenario 3-3) With reference to the era in which Zooppa was formed, which of the following mediums of advertisement would most likely be utilized? a. Radio b. Cable television c. Magazines d. Dailies 86. National firms started putting names on their products because: a. it would increase the economies of scale of their product. b. their incomes were protected by the principle of unlimited liability. c. brands commanded a higher price than commodities. d. strict government regulations required them to do so.

87. Which of the following is true about advertisements in the 1960s? a. The emphasis in advertising turned from creative products to ancillary services. b. Advertising discouraged consumption and was no longer a symbol of consumption. c. The advertisements were bold, garish, and carnival-esque. d. There was an emphasis on art, inspiration, and intuition.

88. A certain form of a commercial message is seen by courts as artistic speech, not as the less protected “commercial speech.” , therefore, gets more First Amendment protection than ordinary advertising does. a. Print ads b. Radio slots c. The information on a product label d. Branded entertainment 89. In the 1990s, the measurement of ROI in advertising was a. elusive b. accurate c. irrelevant d. precise

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90. Although technology has brought in some game-changers,: a. advertising is no longer a paid attempt to persuade. b. firms reject traditional advertising. c. advertising is no longer a primary marketing mix tool that contribute to revenues. d. not everything about advertising has fundamentally changed.

91. During the preindustrialization era, advertisements appeared in a. magazines b. dailies c. newsbooks d. periodicals Copyright Cengage Learning. Powered by Cognero.

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Chap 03_8e Scenario 3-4 Procter & Gamble, one of the world’s largest spenders in advertising and branding, teamed up with Walmart and NBC to create a number of prime-time family movies produced by P&G Productions. The films were designed to lure consumers to buy P&G products at Walmart using original family movies and exclusive ad buys.

This was not the first time the two major brands teamed up to push family oriented entertainment—in the late 1990s, both companies were launch members of the Association of National Advertisers' Alliance for Family Entertainment—the organization responsible for getting the WB’s Gilmore Girlson air. The two have each found great success as a result of the movies, with each seeing an increase both in sales and brand favorability scores.

Both companies have expressed strong interest in continuing their working partnership down the road, and as long as they continue to encounter favorable results, the relationship will likely remain a positive one.

92. (Scenario 3-4) During the P.T. Barnum era, life in the United States began to change rapidly. Consumers began taking pride in their ability to purchase material goods, and advertising efforts became far more important. This new purchase-oriented attitude is commonly referred to as: a. the progressive movement. b. differentiation. c. consumer culture. d. brand entertainment.

93. (Scenario 3-4) The partnership between P&G and Walmart to create family-oriented movies is an example of: a. e-business. b. consumer empowerment. c. interactive media. d. branded entertainment.

94. Ads in the designer era were marked by . a. social-class consciousness b. values that limited consumption and considered it irreligious c. rebellion, youth, and revolution d. values that conflicted with traditional American values 95. Which of the following types of advertisements evolved during the 1920s? a. Demonstration b. Research-based c. Endorsement d. Slice-of-life 96. (Scenario 3-1) By 1900, shortly after Ivory soaps were originally branded, . a. advertising was generally distrusted and looked at with suspicion b. the consumer culture was replaced by minimalist lifestyles c. the branding of products became the norm d. the period was marked by the advent of dailies

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Chap 03_8e 97. Ads for products during the “P.T. Barnum Era” (1875 to 1918) were characterized by: a. a bold and garish style filled with incredible claims. b. a no-frills advertising style. c. simple ads with information and truthful claims. d. informational messages in the dailies.

Scenario 3-2 When referring to the period of advertising known as the creative revolution, advertising pundit and practitioner Jerry Della Femina wrote, “Volkswagen was being handled in the United States by Fuller & Smith & Ross. Doyle Dane took over the account around 1959. One of the first ads that came out for Volkswagen was the first ad that anyone can remember when the new agency style came through with an entirely different look. The ad simply said, ‘Lemon.’ The copy for ‘Lemon’ said that once in a while we turn out a car that’s a lemon, in which case we get rid of it. We don’t sell them. And we are careful as hell with our cars, we test them before we sell them, so the chances are you’ll never get one of our lemons.

“For the first time in history an advertiser said that he was capable, on rare occasions, of turning out an inferior product . . . By today’s standards, of course, this is pretty tame stuff.” (Jerry Della Femina, From Those Wonderful Folks Who Gave You Pearl Harbor, [New York: Simon and Schuster, 1970], 26-27.)

98. (Scenario 3-2) Which one of the following is an accurate description of the era in which Bill Bernbach created the Volkswagen campaign? a. The ads were filled with wild and unsubstantiated claims. b. The focus was on clean and minimalist advertising. c. Advertising was motivated by the need to sell the vastly increased supply of goods. d. Radio was the only advertising medium available to advertisers.

99. What medium of advertising expanded and evolved during the Great Depression? Describe its role during the 1930s.

100. What is consumer-generated content and branded entertainment, and why are they key parts of the most recent era (2000-present) of advertising and IBP?

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Chap 03_8e 101. Describe how the Industrial Revolution was a major factor that gave rise to advertising.

102. Outline the characteristics of the era of industrialization.

103. Explain how advertising in the late 1960s had changed in meaningful ways.

104. How did Americans view advertising after WWII? What overall emotions arose after WWII and how did ad agencies play on these sentiments?

105. How did the advertising industry of the 1920s undergo major changes as it evolved into the very different industry of the 1930s? Describe the change in consumer perception that occurred and the reasons for these social shifts.

106. What is an ad blocker, and how can this be considered a big part of advertising history?

107. What is e-business, and how is this a part of our history in the ad and IBP industry?

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Chap 03_8e Answer Key 1. True 2. True 3. False 4. False 5. False 6. True 7. False 8. False 9. True 10. False 11. True 12. True 13. False 14. True 15. False 16. False 17. False 18. True 19. False 20. True 21. True 22. False 23. True 24. False 25. True 26. True

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Chap 03_8e 27. False 28. False 29. False 30. False 31. False 32. True 33. c 34. c 35. a 36. d 37. a 38. d 39. c 40. a 41. c 42. c 43. d 44. c 45. a 46. c 47. b 48. c 49. a 50. b 51. b 52. a 53. d 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 03_8e 55. c 56. c 57. d 58. a 59. c 60. d 61. b 62. c 63. a 64. c 65. a 66. a 67. a 68. b 69. b 70. a 71. c 72. c 73. c 74. c 75. b 76. a 77. c 78. c 79. a 80. a 81. a 82. a Copyright Cengage Learning. Powered by Cognero.

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Chap 03_8e 83. b 84. d 85. d 86. c 87. d 88. d 89. a 90. d 91. c 92. c 93. d 94. a 95. d 96. c 97. a 98. b 99. A notable event during ion years was the emergence of radio as a significant advertising medium. During the 1930s, the number of radio stations rose from a handful to 814 by the end of the decade, and the number of radio sets in use more than quadrupled to 51 million. Radio was in its heyday as a news and entertainment medium. An important aspect of radio was its ability to create a sense of community in which people thousands of miles apart listened to and became involved with their favorite radio soap opera, so named in reference to the soap sponsors of these shows. Radio’s contribution to advertising history should not be underestimated, it not only ushered in the idea of broadcasting, but it also socialized consumers to depend on a connection to distant characters, programs, brands, and the idea that there were other people “out there” who shared this connection—a mass audience. Voices of radio friends from afar made good company particularly during hard times.

100. Consumer-generated content is a big part of industry change; it is when consumers, or non advertising nor related industry professionals create content such as videos, art, or even ads. Often this content relates to brands, as it showcases them or can have fun with brands, such as with memes. Consumers now cocreate brands and messages in a meaningful way, and can share such via social media and digital channels more easily with newer technologies.

Meanwhile, branded entertainment is the blending of advertising and IBP with entertainment- namely film, music, and TV or video programming. A subset of it is product placement. It is of value to note these historic changes, as there is a deep value in understanding fundamentals in the field, which may not fundamentally change as much as technology has.

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Chap 03_8e 101. The Industrial Revolution was an economic force that yielded the need for advertising. It took Western societies away from household self-sufficiency as a method of fulfilling material needs to dependency on a marketplace as a way of life. It was a basic force behind the rapid increase in mass-produced goods that required stimulation of demand— something that advertising can sometimes be good at. By providing a need for advertising, the Industrial Revolution was a basic influence in its emergence and growth in Western economies.

Part of the Industrial Revolution was a revolution in transportation, dramatically symbolized by the east–west connection of the United States in 1869 by the railroad. This connection represented the beginnings of the distribution network needed to move the mass quantities of goods for which advertising would help stimulate demand. In the 1840s, the principle of limited liability gained acceptance and resulted in the accumulation of large amounts of capital to finance the Industrial Revolution.

Rapid population growth and urbanization began taking place in the 1800s. Modernity gave rise to both urbanism and advertising. Overall, the growth and concentration of population provided the marketplaces that were essential to the widespread use of advertising. As the potential grew for goods to be produced, delivered, and introduced to large numbers of people residing in concentrated areas, the stage was set for advertising to emerge and flourish.

102. Users of advertising in the mid-to late 1800s were trying to cultivate markets for growing production in the context of an increasing urban population. A middle class, spawned by the rise of regular wages from factory jobs, was beginning to emerge. This newly developing population with the economic means to consume was concentrated geographically in cities.

By 1850, circulation of the dailies, as newspapers were then called, was estimated at 1 million copies per day. With the expansion of newspaper circulation fostered by the railroads and growing urban centers, a new era of opportunity emerged for advertising. Further, there were virtually no laws or regulations to restrict advertisers from saying or doing anything they cared to. Advertisers could outright lie, deceive, and otherwise cheat with little or no threat of being punished by government. Many advertisers took advantage of the situation and advertising was commonly considered an embarrassment (or worse) by many segments of society. At one point, firms even risked their credit ratings if they used advertising— banks considered the practice a sign of financial weakness.

103. In the late 1960s, advertising had finally changed in meaningful ways. For one, it became fairly self-aware. Advertising admitted being advertising. Ads during the late 1960s and into the early 1970s conveyed the sentiment, “ok, here’s an ad, you know it’s an ad—and so do we.” Advertising began to trade on insider status (we’re all in on it)—making fun of the straight and now silly ads of the 1950s and by playing to a sense of irony.

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Chap 03_8e 104. During this period, consumer culture became the new normal, a permanent central feature of society. However, public sentiment toward advertising itself was different from what it had been in the 1920s, following World War I. Public attitudes toward advertising were more negative, more skeptical, and the public largely assumed that it was very powerful. At the same time, there was great concern about the rise of communism and its use of “mind control” in the Cold War. The 1950s were about fear, and advertisers again leveraged the accompanying disruption. Fearful people might be coaxed into anything that made them feel more secure. But at the same time, that fear of being manipulated by “modern science” and “mind control” made them very wary of advertising. Like other times, advertisers would turn these anxieties, contradictions, and social disruptions into advertising strategies.

In this environment of mass fear, stories began circulating that advertising agencies were doing motivation research and using the “psychological sell,” which served only to fuel an underlying suspicion of advertising.

105. The ads of the 1920s exhorted the public to consume and enjoy life. The world of advertising found a previously unknown level of respectability, fame, and glamour as it persuaded Americans to live it up, enjoy life, and have it all, which could only be obtained by purchasing goods and services. Advertising instructed consumers how to be thoroughly modern and how to avoid the pitfalls or side effects of this new age. During this era, an endless consumption chain was created. Needs lead to products; new needs are created by the unintended side effects of modern times and new products; even newer products solve even newer needs, and on and on. The style of 1920s ads showed slices of life, or carefully constructed “snapshots” of social life with the product. In these ads, the relative position, background, and dress of the people using or needing the advertised product were carefully crafted, as they are today.

All this changed by the 1930s with the Great Depression, however. The harsh reality of massive poverty changed forever the way people thought about money, spending, government, and business, as well as advertising. Advertising was part of big businesses, and people believed that big business and big greed got America into the great economic depression. Advertising was now seen as a villain, blamed for seducing people into the excesses of the 1920s. Ads at this time reflected these dramatic changes. Advertisers responded to the depression by adopting a tough, no- frills advertising style. The stylish ads of the 1920s gave way to harsher, more cluttered, inappropriately sexual, and often egregiously unethical advertising.

106. Historically, we blocked exposure to ads by turning off the TV or changing the channel. We did this on the radio as well, and perhaps still do. Yet, ad blockers are a big part of recent history because they are actual software based or browser based ways that can literally prevent an ad from reaching the consumer. It is a game changer, at least the authors believe. Historically, ad professionals didn’t have to think about such ad blockers, and how to address that issue. At the same time, most of us agree that pop-up ads especially were annoying, so there is some appreciation to the software etc. that may have inspired professionals moving away from those more annoying and very distracting digital formats.

107. E-business and online commerce or the related e-commerce are game changers and a big part of the historic shift we have seen. It is a form of advertising and promotion in which companies selling to business customers who rely on the internet to close sales. There is no store per se; there may be an online store. As such, this has changed advertising because now one can see an ad for a place where they are possibly able to buy, akin to the traditional “in-store” advertising and branding we are used to seeing especially at point-of-purchase. This is an important aspect of more modern advertising and IBP, especially how it is synergistic with social and digital media.

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Chap 04_8e Indicate whether the statement is true or false.

1. The FTC’s regulations on deception have no authority over omissions or missing information about a product; they only cover false statements or misleading claims made by the advertiser. a. True b. False 2. Advertising contributes to art and culture, and art and culture can be seen in advertising, too. a. True b. False 3. An advertisement for a smartphone that compares itself to the smartphone of another firm is legal in the U.S., even if the ad mentions brand-name goods produced by another firm. a. True b. False 4. The FTC has regularly issued warnings to tobacco companies about ads that have been shown to cause young people to start smoking, backed up by decades of substantial evidence to this effect published by reputable medical journals. a. True b. False 5. Supporters of industry self-regulation claim that self-regulation helps avoid unnecessary government meddling. a. True b. False 6. Examples of divisions within a local Better Business Bureau—merchandise, financial, and solicitations—investigate advertising practices of companies in their geographic area. a. True b. False 7. The first government restriction on telemarketing required companies to remove households from their dialing lists when residents requested this. a. True b. False 8. The FTC’s advertising substantiation program, set up in the 1970s, requires that documented evidence supporting any claims is not to be available to consumers. a. True b. False 9. In advertising, deception refers to making transparent statements in advertisements. a. True b. False

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Chap 04_8e 10. The primary area of advertising regulation is unsolicited or direct marketing. a. True b. False 11. Critics of advertising claim that advertising addresses a wide variety of basic human needs. a. True b. False 12. Subliminal advertisement relates with embedding images and messages into an advertisement that influence the unconscious minds of people; however, it is not proven to be effective. a. True b. False 13. The social aspects of advertisements are not important to consider. a. True b. False 14. Consumer and industry groups are free to make attempts at shaping and restricting the advertising process, but in reality have little voice or power. a. True b. False 15. The CAN SPAM Act outlaws all unsolicited emails. a. True b. False 16. Critics of advertising claim that advertising carries too much product information and that most advertising is unbiased, comprehensive, and inherently transparent. a. True b. False 17. Critics of advertising argue that advertising reduces a tendency to conformity and cuts down on status-seeking behavior. a. True b. False 18. In a cease-and-desist order by the FTC, an advertiser agrees voluntarily to stop running the ad but doesn’t have to admit any guilt or wrongdoing. a. True b. False 19. As a promotional tool and an industry, advertising does not get a lot of attention, scrutiny, and criticism because it is so conspicuous and has established a global presence. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 04_8e 20. The main restriction of direct mail sweepstakes, as imposed by Congress, involves the requirement that they are randomly and fairly distributed to a wide range of communities and addresses throughout the 50 states. a. True b. False 21. Vertical cooperative advertising is an advertising technique whereby a manufacturer and dealer share the expense of advertising. a. True b. False 22. The field of public relations is not restricted by the same types of laws as other business elements of the promotional and marketing mix. a. True b. False 23. The massive consumption that advertising upholds and glorifies is actually quite good for American society, and for other cultures around the world. a. True b. False 24. The calls for restrictions on advertising to children over the years have been based on very few concerns. a. True b. False 25. The National Advertising Division (NAD) was empowered to create and enforce strict standards for packaging, labeling, distribution, and merchandising through its National Advertising Review Board (NARB). a. True b. False 26. Advertisers of “controversial products” attempt to show social responsibility in advertising, such as beer companies spending millions a year addressing responsible drinking. a. True b. False 27. Consumer groups have been much less successful as the FTC in restricting children’s advertising. a. True b. False 28. State governments have a lot of authority over promotional activities of firms, and since most companies conduct interstate commerce, any violations are federal issues. a. True b. False

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Chap 04_8e 29. There are reasons it would be hard to make laws against emotional appeals in ads, since even if they seem exaggerated or inaccurate, they are unquantifiable; thus, there is no way to prove this. a. True b. False 30. When a professional athlete begins endorsing a line of energy bars and protein drinks, he is required to genuinely demonstrate using the product in the advertisement, although he does not have to utilize the product in day-to-day life. a. True b. False 31. Societies tend to monitor advertising to determine what is irresponsible, unethical, or illegal. Despite social shifts and technological advances, a culture’s views on what is acceptable and unacceptable change. a. True b. False 32. Proponents of advertising claim that advertisements do much more than just "shuffling of total demand," but contribute to the increase of total demand—showing that advertising is good for the economy. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

33. (Scenario 4-4) Which of the following actions would help Olive’s prove the fairness of its first comparison ad? a. By entering a stealth sponsorship with its competitor b. By including a disclaimer c. By sharing the profits of the ad with its competitor d. By mentioning the contents of the meals 34. (Scenario 4-2) Purple Inc. published an advertisement stating that its competitor's glasses were fake and would not be good for the customer's dog, let alone a human. This is an example of . a. libel b. accommodation c. puffery d. appropriation 35. Which of the following best describes stealth sponsorship? a. It is when corporations pay journalists to give negative opinions about their competitors in their editorials. b. It is when corporations embed hidden messages in social media advertisements to unconsciously stimulate people to want something. c. It is when journalists are paid by corporations to receive favorable treatment in their editorials. d. It is when corporations partner with ancillary firms that they deal with to receive monetary favors from them.

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Chap 04_8e Scenario 4-6 Rad Productions has launched a series of advertisements. The first advertisement for a restaurant features an image of a child enjoying a burger. The second advertisement for a real estate firm depicts a cozy living room in a good locality in town. The third advertisement for a designer wear firm depicts the sale of designer dresses and shoes. The fourth advertisement is for a university, depicting college students in business suits at a marketing class.

36. (Scenario 4-6) According to Maslow's Hierarchy theory, the first advertisement would satisfy a person’s ____. a. existence needs b. physiological needs c. growth needs d. intrinsic motives 37. (Scenario 4-4) Joe saw a television ad that stated the Toyota Camry was "the world's best car for reliability." The use of such absolute superlatives in advertising is: a. an illegal use of advertising language. b. unethical but legal. c. a legal and quite common use of exaggeration. d. unfair advertising but not deceptive advertising.

38. Vertical cooperative advertising is usually legal, though there is a concern from competitors when: a. unquantifiable emotional appeals are involved. b. a representation, omission, or practice is misleading. c. firm uses monopoly power to dominate the other. d. bogus advertising allowances are given in the form of hidden price concessions.

39. The _________ of the FTC was initiated in 1971 with the intention of ensuring that advertisers make supporting evidence for claims available to consumers. a. Wheeler-Lea Amendment b. advertising substantiation program c. Robinson-Patman Act d. Federal Communications Commission

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Chap 04_8e Scenario 4-3 The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent. The account executive asks if the president has data to support this, and the president says “Yes.” The agency proceeds to produce a series of television spots featuring a well-known sports celebrity using the rod and rating it as excellent. The spots run on network television and trumpet the improved casting distance that the rod provides. The slogan of the spots is “Lightning Rod—The Finest Rod Ever Cast.” After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC. 40. (Scenario 4-3) The slogan for the spot, "Lightning Rod—The Finest Rod Ever Cast," would be considered by U.S. courts to be: a. a false and misleading statement, which needs to be retracted. b. a superlative, which must be provable. c. unethical, but not truly deceptive. d. puffery, which doesn't need to be proved or disproved.

41. What concept is involved when a statement that occurs in print is untrue and damages the reputation of a person, based on words found in magazine, newspaper, direct mail, or Internet reports? a. Libel b. Slander c. Larceny d. Appropriation Scenario 4-4 Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on Toyota Camrys. He was interested in that model because he had seen a number of television and magazine ads describing the car's features and reputation for reliability, and the fact that it displayed the slogan "The best car in the world" urged him to look at the cars. After closely examining the stickers, Joe noticed a line that said "Dealer Promotion Allowance —$125.00." Joe asked a salesperson what that meant. The salesman replied that it was a charge that helped the dealership pay for local advertising to encourage consumers to shop at that particular dealer. After further discussion, Joe learned that almost 5 percent of the cost of the vehicle comes from expenses for national and local advertising.

42. (Scenario 4-4) After Joe complained, the salesperson replied, "If our industry didn't do so much advertising you probably couldn't afford to buy that computer to do your own research." Which of the following "pros" of advertising is the salesperson likely using to support his comment? a. Advertising fosters a diverse and affordable mass media. b. Advertising fosters new product success and lowers costs. c. Advertising reflects the priorities of a society. d. Advertising contributes to art and culture in a society.

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Chap 04_8e 43. (Scenario 4-4) Olive’s second advertisement is an example of a. subliminal b. comparison c. vertical cooperative d. corporate

advertising.subliminal.

44. A high-end specialty store, recognized nationwide for its prestigious reputation, is busy with customers eyeing and buying costly items of clothing with designer labels. They’re also adding $400 purses, $500 shoes, and $1,000 bracelets and necklaces to their ensembles. Which of the following basic needs of Maslow’s Hierarchy are most likely being fulfilled by these purchases? a. Extrinsic needs b. Need for affiliation c. Esteem needs d. Physiological needs 45.

are moral standards and principles against which behavior is judged. a. Ethics b. Appropriations c. Sects d. Dailies

46. ________ is an insidious version of spam where Web users are enticed into entering personal information on a fake website that is forged to look like it is from a bank, the IRS, or other organizations. a. Click-Fraud b. Appropriation c. Geofencing d. Phishing 47. In their “Campaign for Real Beauty,” the people creating the Dove ads attempted to be realistic, show sensitivity, and fight stereotypes by featuring: a. plus-size models who do not fit the narrow norm of beauty. b. women, who were not models, displaying various ethnicities, looks, and sizes. c. both men and women using Dove products. d. endorsements by famous elderly actresses with young-looking skin.

48. Which aspects of advertising are legal but fall into an ethical gray area, making them almost impossible to legislate against? a. Disclaimers b. Emotional appeals c. Testimonials d. Contests and sweepstakes

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Chap 04_8e 49. Three teenage girls who hang around together all start to smoke cigarettes, and eventually start to drink beer on weekends. With reference to recent research results of the Federal Trade Commission, the cause for the teenage girls' habits: a. have been most strongly influenced by families, friends, and peers. b. have been influenced by advertisements portraying it as cool. c. stem from hereditary traits. d. directly relate to advertising campaigns of criminally negligent firms.

50. A company received one of the most basic remedies used by the FTC. What is one of the FTC’s most basic remedies in their regulatory programs? a. The FTC will dissolve the company for noncompliance. b. The FTC will issue a cease-and-desist order to the company. c. The FTC will sue the company so they cannot advertise for one month, if it is a first violation. d. The FTC will order that the company enroll in a corrective advertising program for one month.

Scenario 4-4 Olive’s, a fast food restaurant chain known for its quick meals, encountered an instance where a customer had blamed its food for his weight gain. Later in the same year, they launched an advertisement comparing its burgers with a close rival's, which were very similar. This ad was asked to be corrected by the court. However, a second advertisement depicting a supermodel eating its fries and an obese person eating the fries of its competitor’s food chain was deemed unethical and was ordered by the court to be removed, although Olive’s continued airing the ad.

51. (Scenario 4-4) The would prevent Olive’s from being sued by the customer blaming it for his obesity. a. Advertisement Substantiation Program b. Cheeseburger Bill c. Robinson-Patman Act d. Wheeler-Lea Amendment 52. (Scenario 4-4) The first time Joe saw the Toyota Camry was in a magazine that displayed the slogan "The best car in the world." This slogan is an example of . a. unfair advertising b. slander c. subliminal advertising d. puffery 53. Which of the following best describes primary demand? a. It is the demand for an entire range of various products. b. It is the demand for a specific brand. c. It is the demand for a specific product. d. It is the demand for an entire product category.

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Chap 04_8e 54. Although the courts and the FTC have been quite specific about defining many other practices, the definition of has always been relatively vague. a. unfairadvertising b. copyright infringement in advertising c. false labeling and packaging d. phishing in online advertising 55. Marketers have to be particularly cautious about using without legal protection, as fraud abounds. a. coupons b. billboards c. premiums d. trade allowances 56. (Scenario 4-4) If Olive’s had removed the advertisement soon after receiving the court order, this would be an example of _____. a. a stealth sponsorship b. a consent order c. monopoly power d. puffery Scenario 4-2 Purple Inc. has recently been sued for the following reasons. The CEO has stated in a radio broadcast that Purple Inc.’s sunglasses are better than its rivals and that its main competitor’s glasses are nothing but cheap plastic. It has also published an article stating that its competitor’s glasses are “fake” and “aren't good enough for the customer's dog, let alone a human.”

57. (Scenario 4-2) Purple Inc. launched an advertisement displaying an image of a model of its competitor’s sunglasses. However, it had not received consent from the party to utilize the picture. This is an example of _____. a. puffery b. appropriation c. spamming d. libel 58. (Scenario 4-3) In the commercial, a sports star is shown in a sailboat on a beautiful lake, sending a long cast into the water, then listing the excellent features of the Lightning Rod. It closes with this well-known celebrity happily reeling in a fish. To meet FTC standards for this type of endorsement, the celebrity must: a. be considered an expert in the field of sport fishing. b. share 2 per cent of the expenses involved in the advertisement. c. actually use the Lightning Rod when fishing on his own. d. write the statements that he makes in the ad.

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Chap 04_8e 59. (Scenario 4-4) Which government agency might eventually be reviewing the case if Joe feels he should file a complaint about advertising in the automotive industry? a. The Consumer Finance Protection Agency b. The Consumer Union c. The Federal Trade Commission d. The Consumer Federation of America 60. Which of the following is true about advertising of alcohol and cigarettes? a. Brands in these categories don’t spend a lot of money on advertisements to truly influence consumers. b. These ads are usually designed to be subliminal, suggesting but not causing behavior. c. Brands in these categories are only advertised as part of other programs which do not interest children. d. Advertising cannot create primary demand in mature product categories such as these.

61. The cost of products is lowered: a. when there are high success rates of a product. b. by lowering the economies of scale of a product. c. when there is a high inelasticity of demand for a product. d. when there are little or no competitors with a similar product.

62. Many consumers buy products that they perceive to have recognition, prestige and status, which would be considered ________ needs under Maslow's hierarchy theory. a. growth b. affiliation c. self-actualization d. esteem Scenario 4-1 A group called Adbusters has a website containing many pages that address issues of consumption and culture, media practices, and corporate responsibilities. For example, “The momentum has clearly accelerated. By some measures humans have used more physical resources since World War II than in all of history before it. It’s now taking a toll beyond anything we could ever have imagined. What does it mean when one sixth of the world’s population consumes without any real restraint?”

Throughout the website, there are many references to advertising's role in creating and maintaining this situation.

Not surprisingly, virtually all of the references to the practice of advertising are negative. (http://www.adbusters.org/home/) 63. (Scenario 4-1) Organizations like Adbusters see advertising as superficial. This view of advertising says that it: a. is not entertaining, or even interesting, to consumers. b. has no effect on demand for specific brands of products. c. offers little information based on function or performance. d. ignores the hedonic aspects of products.

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Chap 04_8e 64. The Wheeler-Lea Amendment in 1938 greatly influenced the future of advertising in America by: a. establishing the powerful Federal Trade Commission (FTC). b. allowing the FTC to stop practices that were misleading, regardless of their impact on competition. c. granting industries the right to form self-regulatory organizations to reduce FTC interference. d. broadening the FTC's power to practices that were unfair to competitors alone.

65. (Scenario 4-6) With reference to Maslow's hierarchy theory, which of the following needs would the fourth advertisement most likely satisfy? a. Self-actualization needs b. Need for affiliation c. Growth needs d. Psychological needs 66. Well-known illustrator Andy Warhol felt strongly that: a. visual manifestations of a sick society were being overtaken with consumerism and greed. b. art was for the people and the most accessible form of art is advertising. c. pioneering graphic innovations visually displayed the power of elitism. d. flashy images and tasteless visuals cluttered the cultural landscape.

67. The Cheeseburger Bill passed by the U.S. House of Representatives: a. restricts advertisements featuring high calorie and high fat foods during children’s programming. b. prevents falsifying nutrition information for fast foods. c. bars the promotion of toys to children that tie in with fast foods, sugary drinks, and salty snacks. d. blocks people from suing food companies for their obesity.

68. The ____________ is dedicated to one dedicated idea—“unleashing the world-changing power of consumers.” a. Consumer Finance Protection Agency b. Consumer Federation of America c. Consumers Union d. Consumer Review Unit 69. Which of the following claims demonstrates puffery in advertising? a. "Only Crest Earns the Dental Seal of Approval Among All Major Brands!" b. "Ford Trucks Have Lower MPG than Chevy Trucks!" c. "Tide Beats Cheer in Sales 8th Year in a Row!" d. "World’s Best Cup of Coffee Served with a Smile Here!"

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Chap 04_8e 70. Which of the following is best describes the concept of "consumerism"? a. It is a relatively recent concept to explain the movement towards mobile marketing and locationbased services. b. It involves consumer-oriented promotions such as coupons, premiums, and sweepstakes. c. It defines the actions that individuals and groups use to enact power in the marketplace. d. It refers to the ongoing expansion of contemporary marketing beyond traditional production of ads and commercials, including e-commerce and behavioral targeting.

71. The Fair Packaging and Labeling Act regulating advertising focuses on: a. a way for consumers to compare the cost of household commodities and to prevent deceptive packaging. b. regulation of direct mail advertising and prohibiting lotteries. c. preventing obscenity, fraud, and the ability to deny or revoke licenses. d. direct mail.

72. What was one of the government’s earliest restrictions that targeted specific techniques and policies being used in programming and advertising designed for children? a. The Children’s Food and Beverage Advertising Initiative b. The Nutrition Labeling and Education Act c. The “Cheeseburger Bill” d. The Children’s Television Act 73. (Scenario 4-3) The FTC investigates the claim of "20 percent more casting distance" when using the Lightning Rod. Castaway Sports admits that it has no actual data to support the claim but believes it to be true. However, the FTC rules that Castaway Sports should stop airing the ads, and in response the Lightning Rod advertisement is removed. This is an example of a(n): a. dissolution. b. cease-and-desist order. c. consent order. d. appropriation.

74.

is the use of pictures or images owned by someone else without permission. a. Defamation b. Spamming c. Phishing d. Appropriation

75. (Scenario 4-4) The Pederson dealership and Toyota share the expense of local advertising in this market. This is an example of advertising. a. subliminal b. vertical cooperative c. corporate d. institutional

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Chap 04_8e 76.

refers to unsolicited commercial messages, usually sent through e-mail. a. Behavioral targeting b. Spam c. Premiums d. Infomercials

77. The __________ outlines the responsibilities and social impact of advertising and promotes high ethical standards of honesty and decency. a. Advertising Substantiation Program b. American Association of Advertising Agencies’ Creative Code c. Federal Communications Commission d. Code Authority of the NAB 78. Which of the following is true about ethics? a. It is largely based on personal judgment. b. It is applicable to business alone. c. It is strongly looked down upon in society. d. It is the basic structure of business.

79.

is an advertising technique whereby a manufacturer and wholesaler share the expense of advertising. a. Differentiation b. Subliminal advertising c. Market segmentation d. Vertical cooperative advertising

80. (Scenario 4-1) In the past, Adbusters has cited 12 magazines that it said are responsible for pushing "a clean, exciting image for one of the dirtiest products around: tobacco." It suggested that Americans cancel their subscriptions to these magazines until they stopped accepting these ads. This is an example of: a. the social phenomenon called corrective advertising. b. a strategic tool for pressuring advertisers called boycott. c. a push for consumers to mobilize and take certain actions called behavioral targeting. d. the self-regulatory practice called corrective advertising.

81. (Scenario 4-6) While some argue that advertising promotes materialism, others argue that it addresses a number of basic human needs. With reference to Maslow's Hierarchy, an advertisement for a high-end clothing company would likely be appealing to which of these needs? a. Physiological needs b. Safety needs c. Self-actualization needs d. Esteem needs

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Chap 04_8e 82. According to Maslow's hierarchy of needs theory, which of the following is the highest order of all human needs? a. Esteem needs b. Physiological needs c. Safety needs d. Self-actualization needs 83. Which of the following forms the lowest order of needs in Maslow's hierarchy of needs theory? a. Physiological needs b. Needs for affiliation c. Self-actualization needs d. Intrinsic needs 84. The Telephone Consumer Fraud and Abuse Prevention Act of the mid-1990s: a. required telemarketers to maintain a list of customers who do not want to be called. b. banned recorded messages and robocalls. c. restricted telemarketers from calling customers more than twice a month. d. allowed the use of "robocalls" that contain recorded messages.

85. (Scenario 4-3) The competitor who filed a complaint with the FTC also had the option of working with the media self-regulatory organization that evaluates ethical issues, the __________ which has the authority to review concerns over issues of truth, fairness, or good taste and makes recommendations based on its findings. a. ConsumerFederationofAmerica b. NAB's Code Authority c. Family Research Council d. Better Business Bureau 86. (Scenario 4-1) Some philosophies regarding our path to overconsumption proposed by Adbusters echo the words of advertising historian Stephen Fox when he wrote, "One may build a compelling case that American culture is— beyond redemption—money-mad, hedonistic, superficial, rushing heedlessly down a railroad track called Progress."

Fox then concluded that advertisers: a. are not creating the American way of life, but just reflecting it, good or bad. b. have nothing to do with the fact that all modern cultures have essentially become obsessed with consumption, not just America. c. are the self-serving manipulators and hidden persuaders who have created this situation. d. are to be blamed for the reckless lifestyle and behavior of modern day youth.

87. A food manufacturer is being investigated by the FTC for claims that its food can prevent liver disease. Its executives are aware that if the claims are found to be false, the firm may receive the FTC’s most severe penalty, which involves: a. ordering corrective advertising. b. issuing a cease-and-desist order. c. an order to insert a disclaimer. d. dissolving the corporation.

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Chap 04_8e 88. If firms decide to use comparison advertisements, they: a. must convey a fair comparison in the ad. b. share the costs of advertising with local dealers and distributors. c. are acting in opposition to the recommendations of the American Association of Advertising Agencies. d. cannot legally mention a competing firm or brand by name.

89. Subliminal advertising refers to: a. influencing people to buy things via word of mouth advertisement. b. providing offers to the public that would stimulate them to buy their products. c. exaggerating the features of a product and providing assurances to stimulate people to buy a product. d. embedding hidden messages or images within an advertisement.

90. What is the most fundamental ethical issue in advertising? a. Exaggeration, which is a serious but increasingly common practice b. Taste, particularly regarding society’s exposure to offensive messages c. Materialism, which also is a key legal issue d. Deception, particularly false or misleading statements 91. An area of advertising and IBP subject to privacy topics is when advertisers: a. make products more expensive. b. bring communities closer. c. vote in the Consumers Union. d. use geofencing to identify smartphone users within area and serve ads accordingly.

92. Which of the following is one of the four major aspects of advertising that lower the overall cost of products, according to proponents? a. Market segmentation b. Operating costs c. Inelasticity of demand d. Economies of scale 93. According to Maslow’s hierarchy of needs structure, ads for food or health care products can be thought of as promotions for products that address: a. physiological needs. b. love and belonging needs. c. self-actualizing needs. d. esteem needs.

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Chap 04_8e 94. _____ was established by the Better Business Bureau to evaluate ads directed at children based on guidelines that encourage sensitivity to their level of sophistication and knowledge, as well as emphasis on positive social traits such as friendship and kindness. a. The Family Research Council b. The Children’s Food and Beverage Advertising Initiative c. The Children’s Advertising Review Unit d. The Children's Television Act 95. (Scenario 4-2) The CEO of Purple Inc. stated that its competitor’s sunglasses are nothing but “a fake piece of plastic.” This is an example of . a. spam b. puffery c. appropriation d. slander 96. Sarah, a 13-year-old girl, came across an advertisement that displayed a new trendy hair color aimed at a mature audience. Intrigued by the advertisement, Sarah goes out and buys the product. This is an example of . a. primary demand stimulation b. subliminal advertising c. vertical cooperative advertising d. phishing 97. The ________ gives broad oversight over consumer products such as credit cards, money transfers, and payday loans. a. Monetary Exchange Regulatory Board b. Federal Communications Commission c. Consumer Finance Protection Agency d. National Consumer Fiscal Agency 98. A social networking site could sell information regarding its users’ online behavior to a soft drink manufacturing and advertising firm. This relates most to ___________. a. nonprofit marketing b. appropriation c. phishing d. behavioral targeting 99. Despite being registered under the Do Not Call Registry, a person can receive calls from: a. businesses they've contacted in the last six months. b. charities, political groups, market research firms, and companies you do business with. c. companies that have delivered something to the person in the last 24 months. d. co-operatives and insurance firms.

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Chap 04_8e 100. Stephen Fox, a history and social observer, concludes that the history of American advertisement has been: a. genuine and trustworthy. b. simple and smart. c. irrelevant and incoherent. d. money-mad and hedonistic.

101. (Scenario 4-4) Olive’s continued airing its advertisement despite being asked to remove it by court. As a result, they were asked by the court to remove the ad in 30 days. This is an example of . a. accommodation b. appropriation c. a consent order d. a cease-and-desist order 102. (Scenario 4-6) According to Maslow's hierarchy theory, which of the following needs would the third advertisement most likely satisfy? a. Esteem needs b. Need for affiliation c. Extrinsic needs d. Self-actualization needs 103. Which nonprofit consumer organization was established in 1936 and is known for its publication of Consumer Reports? a. Consumer Federation of America b. Consumers Union c. Consumer Alert d. Commercial Alert 104. (Scenario 4-6) Rad Productions is in the process of airing an advertisement which depicts a sports drink that provides athletes with more energy than other drinks. However, it is not stated what causes the added energy. It is most likely that the FTC would require a(n) from the manufacturing firm. a. appropriation b. stealth sponsorship c. disclaimer d. affirmative disclosure 105. List and describe four aspects of how advertising lowers the cost of products.

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Chap 04_8e 106. A complaint concerning an allegedly misleading advertising practice by a carpet-cleaning service in the Houston area is filed with the local Better Business Bureau (BBB). Apparently, homeowners are expecting the price shown on the company’s direct mailings and newspaper coupons (a price confirmed at the time the appointment is made) but are quoted a much higher fee once the crew arrives and “inspects” the carpets. The company’s ads promise the latest in “green” cleaning materials and industrial techniques, but the cleaning fluids and equipment used by the crew are also suspect. Outline the path the complaint would take if it were to eventually arrive at the FTC. Specifically, list the organizations it would pass through, and in general terms, the actions that would need to be taken by each organization for the complaint to be forwarded on to federal regulators.

107. What are the three elements that declare an ad to be “deceptive”? What elements declare an ad to be “unfair”?

How is “puffery” related to these concepts?

108. What are the four types of rulings that the FTC might enact in response to claims of unfairness or deception in an advertisement? Name and briefly define them, beginning with the most lenient and moving on to the strongest response.

109. Advertising educates consumers. In an essay, describe the pros of adverting with reference to educating consumers.

110. What are the three broad areas of advertising that are affected by federal regulation? Briefly identify and explain each.

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Chap 04_8e Answer Key 1. False 2. True 3. True 4. False 5. True 6. True 7. False 8. False 9. False 10. False 11. False 12. True 13. False 14. True 15. False 16. False 17. False 18. False 19. False 20. False 21. True 22. True 23. True 24. False 25. False 26. True

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Chap 04_8e 27. False 28. False 29. True 30. False 31. True 32. True 33. b 34. a 35. c 36. b 37. c 38. d 39. b 40. d 41. a 42. b 43. b 44. c 45. a 46. d 47. b 48. b 49. a 50. b 51. b 52. d 53. d 54. a Copyright Cengage Learning. Powered by Cognero.

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Chap 04_8e 55. a 56. b 57. b 58. c 59. c 60. d 61. b 62. d 63. c 64. b 65. a 66. b 67. d 68. c 69. d 70. c 71. a 72. d 73. c 74. d 75. b 76. b 77. b 78. a 79. d 80. b 81. d 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 04_8e 83. a 84. a 85. b 86. a 87. a 88. a 89. d 90. d 91. d 92. d 93. a 94. c 95. d 96. a 97. c 98. d 99. b 100. d 101. d 102. a 103. b 104. d

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Chap 04_8e 105. Four aspects of the nature of advertising, supporters argue, help lower the cost of products are: 1. Due to the economies of scale (it costs less to produce products in large quantities), partly created by advertising’s contribution to stimulating demand, products cost less than if there were no advertising at all. As broad-based demand stimulation results in lower production and administrative costs per unit produced, lower prices are passed on to consumers.

2. Consumers have a greater variety of choice in products and services because advertising increases the probability of success that new products will succeed. The more products that succeed, the fewer losses firms incur from failed product introductions. In the end, this should make products cost less.

3. The pressures of competition and the desire to have fresh, marketable brands motivate firms to produce improved products and brands and introduce lower-priced brands.

4. The speed and reach of the advertising process aids in the diffusion of innovations. This means that new discoveries can be delivered to a large percentage of the marketplace very quickly. Innovations succeed when advertising communicates their benefits to the customer.

106. In a situation like this, the local BBB reviews the issue, often sent in the form of a complaint by consumers or competitors. It sends the complaint to the National Advertising Division (NAD) of the Council of Better Business Bureaus. If the NAD staff cannot resolve the complaint with the advertiser, in this case the carpet-cleaning service, it is passed along to the National Advertising Review Board (NARB). Its review panel hears the advertiser’s case, reviews other evidence, and deliberates. It may dismiss the case, or it may convince the cleaning service to change the wording in its advertising. If it does neither, it will then publicly identify the case, the advertiser, and its findings, and then forward the complaint to the FTC. 107. While any instance of a possibly unethical advertising message can always be debated, the law is quite clear about deception, but it is much vaguer regarding unfairness.

An ad is considered "deceptive" if the following three elements are present, based on the FTC’s ruling: if it involves a representation, omission, or practice that may mislead the consumer; if this representation, omission, or practice is judged from the perspective of a consumer acting reasonably; and if the representation, omission, or practice is a material one that would affect the consumer’s conduct or decision making about the advertised product or service. Very broadly, deception is defined as the presence of false or misleading statements in an advertisement.

An ad is considered "unfair" based on 1990s legislation that says it needs to cause substantial injury to consumers that is not avoidable by consumers, and is not outweighed by benefits to consumers or competitors. This allows the FTC to assess both the benefits and costs of advertising, and it rules out reckless behaviors on the part of consumers, before a ruling can be made calling an ad unfair.

An ad includes "puffery" when superlatives or exaggerations are used that most reasonable people would understand as harmless claims or slogans. While such claims may not be technically “true” (“World’s Best Coffee!”), they are totally legal and are not considered to be either deceptive or unfair.

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Chap 04_8e 108. The FTC has four options when it responds to claims of unfairness or deception in an advertisement: consent order, cease and desist order, affirmative disclosure, and corrective advertisement.

A consent order allows an advertiser to agree to stop running a questionable ad without having to admit guilt. It is the simplest and least serious of responses that the FTC can enact.

A cease-and-desist order requires that the advertiser stop running the questionable ad, usually within 30 days so a hearing can be held to determine whether it is truly deceptive or unfair. If a product may have a direct effect on consumer’s health or safety, an immediate cease-and-desist order can be enacted.

An affirmative disclosure requires that the advertiser add important information that had been missing from previous ads, information that might cause consumers to make false assumptions about the product.

An order for corrective advertising requires that the advertiser run new ads that clarify misleading claims or that retract erroneous information that the consumer has been led to believe as true. This is the strongest and most extensive response that the FTC can enact.

109. Advertising Informs - Supporters of advertising argue that advertising educates consumers, equipping them with the information they need to make informed purchase decisions. By regularly assessing information and advertising claims, consumers become more educated regarding the features, benefits, functions, and value of products. Further, consumers can become more aware of their own tendencies toward being persuaded by certain types of product information. Historically, the very positive position has been offered that advertising is “clearly an immensely powerful instrument for the elimination of ignorance.” Now, that might be a little bit overstated, but according to this argument, better educated consumers enhance their lifestyles and economic power through astute marketplace decision making—can’t argue with that!

A related argument is that advertising reduces product search time—that is, the amount of time an individual spends to search for desired products and services is reduced because of advertising, access to the Web, and mobile messages from advertisers. The large amount of information readily available through advertising and Web Sites allows consumers to easily assess information about the potential value of brands without spending time and effort traveling from retail store to retail store trying to evaluate each one. The information contained in an advertisement “reduces drastically the cost of search.”

Another aspect of informing the public has to do with the role advertising can play in communicating about important social issues.

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Chap 04_8e 110. The three areas affected by federal regulation involve deception and unfairness, competition, and children.

Issues involving "deception and unfairness" have historically been difficult to identify and prove. While most people would agree that both of these elements are unacceptable, there will always be differences in opinion as to exactly what is considered deceptive and exactly what is considered unfair. By the 1990s, the FTC and Congress worked together to more adequately define these concepts and the criteria involved.

Issues involving "competition" involve unfair practices among competitors, including cooperative advertising, comparison advertising, and monopoly power.

Issues involving children involve the nature and content of ads aimed at children, the volume of advertising within children’s programming, and the limits and sensitivities involved in pitching products to those who are unsophisticated regarding consumption and are unaware of the power of persuasion.

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Chap 05_8e Indicate whether the statement is true or false.

1. Viewing consumers as social beings allows advertisers to consider meanings that consumers associate with brands. a. True b. False 2. Experience and involvement are both low in the extended problem-solving decision-making mode. a. True b. False 3. Advertising can influence internal but not external searches. a. True b. False 4. Emotion is not an important concept in advertising. a. True b. False 5. Sometimes, advertisers try to make an otherwise low-involvement choice into a high-involvement one. a. True b. False 6. Melissa is considering sunglasses from Louis Vuitton, Chanel, or Hermes. This represents her evoked set. a. True b. False 7. The consumption process is based on the sequence of two stages: need recognition and postpurchase use and evaluation. a. True b. False 8. Evaluative criteria differ from one product category to the next, and consumers each have their own evoked sets generally. a. True b. False 9. When consumers believe their brand to be more popular than it actually is, it is called an accessibility bonus. a. True b. False 10. When consumers are inexperienced in a particular consumption setting, yet find the setting highly involving, they are likely to engage in extended problem solving. a. True b. False

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Chap 05_8e 11. Jerome always buys Coke, and only Coke—not Pepsi or any other cola brand. Consumers like Jerome, who repeatedly purchase a single brand to fulfill a specific need, are demonstrating brand loyalty. a. True b. False 12. Doritos partnered with a LGTBQ community to promote understanding and, in the process, promote its brand. a. True b. False 13. If social class affects consumption through tastes, media preferences are likely impacted. a. True b. False 14. Consumer preferences relate with taste. a. True b. False 15. Brands do not suffer when the prices and profit margins of brands become too low, thereby becoming commodities, sold on price. a. True b. False 16. Advertising clutter has nothing to do with the context in which ads are processed. a. True b. False 17. One perspective of consumer behavior is that the consumer is a decision maker. a. True b. False 18. An internal search for information is at times sufficient, so there is no need then for an external search for consumers to find what they want. a. True b. False 19. Stratification refers to systematic inequalities in things such as wealth, income, education, power, and status. a. True b. False 20. Social class, race, and ethnicity are ways in which members of a culture are classified by systematic inequalities that affect their social standing; this is known as episodic memory. a. True b. False

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Chap 05_8e 21. Advertisements should be consistent with the values of people, a society, or a culture to be more likely to stand out, demand attention, and be remembered and accepted. a. True b. False 22. The interaction of social stratification and cultural capital becomes apparent when a person moves from one stratum into another. a. True b. False 23. Higher involvement may be a function of a consumer-brand relationship. a. True b. False 24. While grocery shopping, Kate picks up "Krispy’s" cereal instead of the usual cereal that she buys every week.

This is an example of variety seeking. a. True b. False 25. The consumer behavior of a family is of great interest to advertisers. a. True b. False 26. Consumers participate in rituals. a. True b. False 27. While purchases based on habit are merely consumption simplifiers, purchases based on brand loyalty are the result of a strong commitment to a brand. a. True b. False 28. Consumer behavior is a process that begins with problem recognition. a. True b. False 29. Without customer attention, there is a very strong chance that an advertiser’s message will have its desired impact. a. True b. False

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Chap 05_8e Indicate the answer choice that best completes the statement or answers the question.

30. Maria needs to buy a tent, sleeping bag, and hiking boots for a two-week camping trip in the mountains. She has never bought camping equipment before and assesses what other equipment she may require during her trip. She also asks her friends, who have gone camping before, what equipment she should buy. Once she has purchased all the camping gear, she evaluates whether she made the right purchases. In this situation, Maria is engaging in: a. extended problem solving. b. top of mind awareness. c. stratification. d. variety seeking.

31. (Scenario 5-3) The management had asked all store managers to check with their customers which cheese they preferred and thought was popular. When customers were asked this question, they quickly said Kraft because they thought it has a huge market share. Kraft cheese has created a(n) . a. accessibility bonus b. external search c. process of variety seeking d. cognitive dissonance 32.

can tap into information that has accumulated in one's memory as a result of repeated advertising exposure. a. Involvement b. Stratification c. An internal search d. A life-stage variable

33. Maria decides to make herself her morning cup of juice. However, she realizes that she's run out, which leaves her feeling discontent and wanting juice. This example relates with . a. a need state b. cognitive dissonance c. an evoked set d. stratification 34. Which of the following is stratification based on? a. Political beliefs b. Emotional intelligence c. Religious beliefs d. Income 35. (Scenario 5-4) A lot of fans have joined Sing’s social media page. This is an example of a a. life-stage variable b. variety seeking process c. brand community d. advertising clutter Copyright Cengage Learning. Powered by Cognero.

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Chap 05_8e 36. In the world of advertising, culture is seen as: a. people’s rules and regulations. b. the total way of life of a people. c. a sense of morality in society. d. the spiritual beliefs of people.

37. The concept of cognitive dissonance is more commonly referred to as: a. advertising clutter. b. buyer’s remorse. c. variety seeking. d. a need state.

38. (Scenario 5-2) While searching for a phone with the best camera, Rosie finds seven different advertisements stating that their phones have great camera features when compared to others. Rosie is now confused about which brand to choose. This is an example of . a. advertising clutter b. stratification c. predecisional distortion d. life-stage variables 39. Ads become part of our everyday landscape, language, and reality as a result of many people: a. being subjected to taste. b. being somewhat involved in purchasing decisions. c. picking up and adopting their phrases, ideas, slogans, and agendas. d. buying certain, selective products based on chance.

40. (Scenario 5-3) When Tina saw that the cheese was out of stock, she thought of Porky's and Cubby Cow's cheese, because she had tried them before. This is an example of . a. an external search b. an internal search c. cognitive dissonance d. conversion 41. There is a value that cultures place on certain objects. Wes gets a nod among groups for his expensive and rare Porsche, which is admired. This scenario demonstrates the concept of . a. an internal search b. conversion c. cultural capital d. variety seeking

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Chap 05_8e 42. (Scenario 5-3) Kraft cheese tries to get its customers to buy its cheese more than once. This is an example of _____. a. extended problem solving b. low involvement c. conversion d. an accessibility bonus 43. (Scenario 5-6) Mark feels that Post-its are much more efficient and simpler than Voice-It, so he purchases Postits instead of the Voice-It product. This is an example of . a. a predecisional distortion b. a habit c. a variety seeking process d. cognitive dissonance 44. ______ refers to when consumers change information in a positive way to favor a particular brand with which they have an emotional connection. a. A need state b. Cognitive dissonance c. Predecisional distortion d. Stratification Scenario 5-3 While grocery shopping, Tina selects items that she regularly buys because she knows they taste good and she has used them for years. However, the usual Kraft cheese that she buys is not available, so she buys a similar brand of cheese that she hasn't tried but has heard of before. Kraft cheese, being a popular brand, has managed to make itself known, and when most of the customers shopping at the store were asked which cheese they bought, most of them stated Kraft almost immediately.

45. (Scenario 5-3) When Tina finds out that Kraft cheese is not available, she buys another brand of cheese, which she hasn't purchased before. As cheese isn't the most important item on her list, she spends very little time picking an alternate brand of cheese. This is an example of . a. extended problem solving b. limited problem solving c. stratification d. electronic word-of-mouth 46. (Scenario 5-6) The management of Voice-It Technologies believes in retaining their customer base and provide customers at their stores attractive offers which will help create brand loyalty and repeat purchases. This is an example of . a. predecisional distortion b. cognitive dissonance c. limited problem solving d. conversion

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Chap 05_8e 47. Related to the way a consumer’s culture shapes his or her tastes and preferences is the concept of cultural capital.

This refers to the: a. value that a culture places on certain consumption practices and objects. b. particular pattern of consumption that depends on fiscal stability. c. financial investment needed to create a brand. d. monetary value of a brand in a particular area.

48. (Scenario 5-2) While deciding on what brand of cell phone he should buy, Mark, a university student, asks his friend for suggestions on different models of cell phones. His friend immediately says that Apple, Samsung and Google are good options. This is an example of . a. a need state b. stratification c. an evoked set d. cognitive dissonance 49. A designer purse, used by a celebrity, would have . a. high cultural capital b. high social capital c. low inelasticity of demand d. low economies of scale 50. Carol is considering buying a Honda, Ford, Kia, or Subaru; this is her: a. external search. b. need state. c. evoked set. d. stratification.

51. A person is most likely to have a high degree of involvement while buying: a. laundry detergent. b. a notepad. c. paper towels. d. a car.

52. Effective ads turn mere products into actual brands by: a. giving them cultural meaning. b. keeping prices lower than those of competitors. c. offering discounts and sales. d. repeating the message in more than one medium.

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Chap 05_8e 53. Which of the following modes of consumer decision-making involves low involvement and low experience? a. Limited problem solving b. Habit or variety seeking c. Extended problem solving d. Brand loyalty 54. The set of brands that comes to mind when a category is mentioned is referred to as a. anexternalsearch b. conversion c. cognitive dissonance d. an evoked set

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55. A(n) arises when a consumer’s desired state of affairs is different from one’s actual state of affairs. a. evoked set b. need state c. consideration set d. top-of-mind awareness Scenario 5-4 Sing, a motorcycle manufacturer aims to make its slogan "Sing Motorcycling" known to every individual in a way that they immediately associate it with the firm. The company has created a social media page where almost a thousand fans have registered. However, there are two competitors who advertise the same features. The firm has a large number of customers who think it manufactures the best and there is no other manufacturer better.

56. (Scenario 5-4) Sing advertises its slogan in a way that people will immediately associate it with its motorcycles.

Sing is using advertising which involves the ____. a. episodic memory b. emotional memory c. iconic memory d. semantic memory 57. Which of the following is true about branding and advertising based on social and cultural factors? a. Consumer behavior lacks the ability to be meaningfully social. b. Advertisements are not related with cultural factors. c. Consumers are merely information processors. d. Brand meaning is an important focus.

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Chap 05_8e 58. (Scenario 5-1) Facebook played an important role in Gap reversing its decision to change the company logo.

Thousands of users posted status updates expressing their distaste for the new logo, and company executives could not overlook the opinions of their customers. In this situation, Gap had a strong: a. need state. b. brand community. c. internal search. d. reaction to advertising clutter.

59. (Scenario 5-5) Ben realized that he did not have a grill for the party. This is an example of a. an information search b. an alternative evaluation c. cognitive dissonance d. a need state

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60. _____ are groups of consumers who feel a commonality and a shared purpose attached to a consumer good or service. a. Brand ambassadors b. Trend setters c. Trade channels d. Brand communities 61. Popular music, celebrity spokespersons, and anything that is novel are devices for combatting: a. conversion. b. limited problem solving. c. cognitive dissonance. d. selective attention.

62. _____ memory is the kind of memory through which names, words, and concepts are retrieved from people's minds. a. Iconic b. Episodic c. Emotional d. Semantic 63. Which of the following is true about gender? a. Advertisers have been reluctant to communicate to men and women in different ways. b. Gender is unequally distributed across income. c. Advertisers often find gender issues overly sensitive and tend to avoid them. d. There are no differences between men and women if they are the products of differential socialization.

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Chap 05_8e 64. (Scenario 5-5) Which of the following best describes Ben’s mode of consumer decision making in buying a grill? a. Limited problem solving b. Low involvement c. Extended problem solving d. Predecisional distortion 65. (Scenario 5-5) Ben mentions to another shopper at the store that low-quality grills are made with more cheap looking parts and high-quality grills have better looking parts. This comment represents Ben’s: a. beliefs. b. brand loyalty. c. brand attitude. d. habits.

66. Which of the following is true of culture? a. If you are in the ad business, you are in the culture business. b. It is purely national or global. c. It is most visible to those who are immersed in it. d. It is always geographic.

67. Which of the following statements would be made by someone experiencing cognitive dissonance? a. “I sure need a new lawn mower, but I'm too lazy to find out what's out there.” b. “I’d like to buy one of those new Toro lawn mowers, but they’re kind of expensive.” c. “I hear the new Toro lawn mowers are one of the best in the market, but my neighbor says his is hard to start.” d. “I've bought a Toro lawn mower, but I now realize the new John Deere might have been a better choice.”

68. Which of the following is a difference between brand loyalty and a habit? a. Habit involves low involvement, whereas brand loyalty involves high involvement. b. Brand loyalty is not based on emotional connections, whereas habit is based on emotional connections. c. Brand loyalty can be easily disrupted with skillful advertisement, whereas habit cannot be disrupted with advertisements. d. Unlike brand loyalty, habit is based on a conscious commitment to find the brand each time the consumer purchases from the category.

69. A person’s standing in American society is often based on social stratification, which reflects the systematic inequalities within that society regarding: a. caste and gender. b. cultural engagement and emotional intelligence. c. wealth, power, education, and status. d. religious beliefs, morals, and values.

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Chap 05_8e 70. The idea of involvement in the context of consumer decision-making refers to how: a. a person will use a product or service. b. much importance accompanies the choice of a product. c. an individual's past experience with a product makes the person more aware about it. d. the consumer first heard about a product or brand.

71. A young man tends to buy things that allow him to experience pleasure, avoid guilt, feel pride, or relieve fear. In doing so, he chooses products based on: a. emotional benefits. b. rituals. c. cognitive dissonance. d. life-stage variables.

Scenario 5-6 Voice-It Technologies produces inexpensive personal voice recording devices that serve as a substitute for message pads in the home or office. Their recording time is limited to 120 seconds, and the devices sell for less than $20. Voice-It’s products are about the size of four credit cards stacked on top of one another and have a life of about a year. The slogan the firm uses on its packaging and advertising is “Don't Write It, Voice It!” 72. (Scenario 5-6) Most consumers who purchase Voice-It products buy them primarily when their preferred brand is out of stock. They also do not spend much time on information search. What mode of consumer decision making does this indicate? a. Brand loyalty b. Limited problem solving c. Extended problem solving d. Cognitive dissonance 73. Which of the following serves as a solution to a simple consumption problem and occurs in settings where a decision isn’t involving? a. Extended problem solving b. Habit c. Conversion d. Brand loyalty 74. Manuel sees so many brands claiming related performance claims and there are just so many ads in general in the product category. In this scenario, Manuel is encountering: a. cognitive dissonance. b. a high degree of brand loyalty. c. advertising clutter. d. predecisional distortion

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Chap 05_8e 75. (Scenario 5-4) The people of Sing believe that if a person drives a motorcycle means, that person can afford a lifestyle of getaways and the most expensive motorcycle on the market. It is most likely that owning a motorcycle by Sing would have ________. a. high cultural capital b. inequality of demand c. low economies of scale d. low involvement 76. Olay lotion has always been a part of what Melinda does after the bath and she does not ever want to change this. What is this describing? a. A consumer who is not exposed to massive volumes of ads b. A consumer who seeks variety c. A consumer who is resistant to changing rituals d. A consumer who misinterprets messages 77. A commercial for roses says that it’s not Valentine’s Day unless there are flowers for a gift to women, and it’s not a Valentine’s Day dinner without these florist’s roses. This ad attempts to tie the product to a: a. social attitude. b. purchasing habit. c. cultural ritual. d. social class.

78. (Scenario 5-4) Sing has a large number of people who think that they have the best motorcycles in the industry.

They think of them whenever they want to buy one. This is an example of . a. brand loyalty b. cognitive dissonance c. variety seeking d. stratification Scenario 5-2 Since its introduction to the market in 2007, Apple Inc.’s iPhone dominated other smartphones in terms of units activated per year. However, several years later, Apple began facing stiff competition from Google’s Android software and Samsung. The problem for Apple was that its competition, primarily phones powered by Android operating systems, largely outnumbered the iPhone in terms of available options. In the U.S. alone, there were over twenty smartphones that run on the Android operating system, compared to Apple’s one iPhone. Now more than ever, Apple, which insists on tight control of its devices, must find a way to win in an intensely competitive market against rivals that are openly licensing their software to scores of companies.

79. (Scenario 5-2) Originally, one reason that the iPhone outsold other smartphones was the feeling of pride many consumers associated with owning one. This represents: a. an emotional benefit. b. a functional benefit. c. a taste state. d. cognitive dissonance.

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Chap 05_8e 80. Advertisements—like books, movies, posters, and paintings—can act as sociocultural “texts” that are read and interpreted by consumers. In this case, advertising: a. is an entity separate from mass media. b. relies largely on words rather than images. c. helps to transmit meaning within a culture. d. lacks giving products a social meaning.

81. An advertisement for a smartphone contains detailed copy, technical information, and a long list of product design features. In general, this ad would be most appropriate for someone who is: a. conducting an external search. b. easily influenced by subliminal advertising. c. experiencing advertising clutter. d. trying to fulfill a basic need.

82. (Scenario 5-5) Ben asked his friends for suggestions on which brand of grill he should purchase. This is an example of: a. need recognition. b. postpurchase use. c. top of mind awareness. d. information search.

83. A survey was conducted by Spotless, a dishwashing liquid manufacturer, at a department store. During the survey, the store manager asked customers which dishwashing liquid they utilized, to which most of them immediately replied, "Spotless." When asked why, the customers stated that they felt it was used by everyone and was the most popular. Based on the given scenario, it can be said that Spotless has . a. low brand loyalty b. high involvement c. an accessibility bonus d. a low economy of scale 84. One of the main reasons why social class may not be completely reliable in predicting the preferences and tastes of Americans is that: a. it has little to do with demographics. b. it has a hierarchical structure and involves assigned membership. c. many people with a huge range of income call themselves "middle class." d. is static, unchanging, and permanent.

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Chap 05_8e Scenario 5-5 Ben was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a grill for the barbeque his friends wanted. Having never purchased a grill before, he felt that he needed to shop carefully and take his friends' suggestions on which brand to buy. After visiting several stores and examining numerous models and brands, he settled on a Grillmate model that cost $240.

85. (Scenario 5-5) The consumption process for the grill began when Ben: a. brought home a blender from the store. b. identified the criteria he would use to look for blenders. c. made a mental list of the brands he would consider. d. realized he did not have a blender for the party.

86. Once consumers decide that they need something, what is the first step they take as they begin to think about a product purchase? a. Use an external search process. b. Conduct an internal search for information. c. Use an alternative evaluation process. d. Determine the degree of cognitive dissonance.

Scenario 5-1 As clothing and accessories retailer Gap, Inc. attempted to carry its brand to greater heights, executives felt that a great way to refresh the company’s logo would be to change it all together. However, perhaps even quicker than the initial decision to change the logo, the masses reacted so negatively to the change that the company went back on its decision. A number of consumers stated that the new logo looked “cheap, like a crummy PowerPoint presentation,” and that was all company executives needed to hear. Gap admitted that the idea of changing the company’s logo was probably not the right move, nor was it the right time to do so. The company will look for other ways to develop the brand. Clearly, Gap’s reaction to consumer sentiments serves as proof that the company cares a great deal about consumer thoughts and opinions.

87. (Scenario 5-1) Gap's logo had been extremely popular, and most of its customers had recognized and used their products for years. This is an example of . a. brand loyalty b. variety seeking c. advertising clutter d. cognitive dissonance 88. Which of the following is a similarity between habit and variety seeking? a. They refer to the tendency of consumers to continue using a brand for many years. b. They both involve a high degree of brand loyalty. c. They involve a high degree of emotional connection to a brand. d. They occur in settings where a decision isn’t involving.

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Chap 05_8e 89. (Scenario 5-1) Gap’s loyal customers generally believed the company’s products were high-end and sophisticated.

Judging by the initial responses, consumers felt Gap’s new logo represented low-end products, and would, therefore, appeal to a lower social class. This concept of differing social levels is called: a. cognitive dissonance. b. advertising clutter. c. stratification. d. cultural capital.

90. (Scenario 5-2) After purchasing a phone, Kathy states that she should have purchased an iPhone rather than the one she purchased because the iPhone is more popular and elegant. This is an example of . a. predecisional distortion b. life-stage variables c. cognitive dissonance d. a need state 91. Which of the following best describes the social meaning approach? a. It focuses on using beliefs and rituals to subconsciously manipulate people into buying something they don't need. b. It centers on viewing consumers solely as information processors. c. It involves knowing how to connect with human beings with reference to their consumption practices. d. It refers to connecting with people by using ads as mere socially isolated attempts to influence their attitudes.

92. A young mother consistently buys Chips Ahoy for a special treat. However, every now and then, she buys Keebler Animal Crackers for a change in taste. Which mode of consumer decision making does this demonstrate? a. Clutter b. Variety seeking c. Cognitive dissonance d. Stratification 93. Need recognition, information search and alternative evaluation, purchase, and postpurchase use and evaluation represent the four stages of the: a. creation of brands. b. integrated brand promotion process. c. consumer decision-making process. d. cultural branding method.

94. Two bases in consumer behavior are _______. a. psychological and social b. formal and informal c. predictable and non-predictable d. accounting and real estate

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Chap 05_8e 95. Advertisers understand the child or children leaves home, the consumption patterns of the family changes. This planning criterion is known as . a. cultural capital b. a life-stage variable c. stratification d. accessibility bonus 96. (Scenario 5-4) Tony is about to buy a limited edition motorcycle from Sing. It is most likely that Tony is a _______________ consumer, since this will be his family’s third purchase from Sing. a. advertising clutter b. high involvement c. cognitive dissonance d. limited problem solving 97. (Scenario 5-6) The Voice-It products are more expensive than others in the market. They are mostly used by big businessmen and higher-level managers. It is most likely that Voice-It products would have . a. a high cultural capital b. low brand loyalty among higher-level managers c. advertising clutter d. life-stage variables 98. Describe how ads transmit meaning.

99. Discuss culture as a major component in consumers' lives.

100. How does the extended problem-solving mode of decision making differ from the limited problem-solving mode of decision making?

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Chap 05_8e 101. Discuss the need recognition state of the consumer decision-making process.

102. Discuss how emotion plays an important role in consumer behavior.

103. What is cognitive dissonance? Discuss how advertisers can prevent dissonance.

104. What is an evoked set, and why is it important to advertisers and those working in IBP?

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Chap 05_8e Answer Key 1. True 2. False 3. False 4. False 5. True 6. True 7. False 8. True 9. True 10. True 11. True 12. True 13. True 14. True 15. False 16. False 17. True 18. True 19. True 20. False 21. True 22. True 23. True 24. True 25. True 26. True

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Chap 05_8e 27. True 28. True 29. False 30. a 31. a 32. c 33. a 34. d 35. c 36. b 37. b 38. a 39. c 40. b 41. c 42. c 43. a 44. c 45. b 46. d 47. a 48. c 49. a 50. c 51. d 52. a 53. a 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 05_8e 55. b 56. d 57. d 58. b 59. d 60. d 61. d 62. d 63. b 64. c 65. a 66. a 67. d 68. a 69. c 70. b 71. a 72. b 73. b 74. c 75. a 76. c 77. c 78. a 79. a 80. c 81. a 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 05_8e 83. c 84. c 85. d 86. b 87. a 88. d 89. c 90. c 91. c 92. b 93. c 94. a 95. b 96. b 97. a 98. Advertising can be thought of as a text. It is “read” and interpreted by consumers.

One can think of it as being like other texts: books, movies, posters, paintings, and so on. It is a creative product. In order to understand ads, one has to know something of the cultural code, or they would make no sense.

Advertisers place advertised products and a slice of social life in an ad to get the two to intermingle, to become part of the same social scene. In other words, the product is given social meaning by being placed within an ad that represents an idealized context. This slice of life, of course, is the type of social setting in which potential customers might find, or desire to find, themselves. According to McCracken’s model, meaning has moved from the world to the product (shoes) by virtue of its sharing space within the frame of the advertisement.

When advertisers put things within the frame of an ad, they want the reader of the ad to put them together seamlessly, to take them together as part of each other. When a consumer purchases or otherwise incorporates that good or service into his or her own life, the meaning is transferred to the individual consumer. Meaning is thus moved from the world to the product (via advertising) to the individual. When the individual uses the product, that person conveys to others the meaning he or she and the advertisement have now given it. Their use incorporates various rituals that facilitate the movement of meaning from the good to consumer.

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Chap 05_8e 99. Culture surrounds the creation, transmission, reception, and interpretation of ads and brands, just as it touches every aspect of consumption. Culture is what people do and is the way things are done. Cultures may be large and national, or they may be regional or local, or not geographic at all. It’s usually easier to see and note culture when it’s more distant and unfamiliar. Further, members of a culture often find the ways they do things to be perfectly natural and normal. Culture is also said to be nearly invisible to those who are immersed in it.

100. When consumers are inexperienced in a particular consumption setting, yet find the setting highly involving, they are likely to engage in extended problem solving. In this mode, consumers go through a deliberate decision-making process that begins with explicit need recognition, proceeds with careful internal and external search, continues through alternative evaluation and purchase, and ends with a lengthy postpurchase evaluation.

In contrast, limited problem solving is a more common mode of decision making. In this mode, experience and involvement are both low. A consumer is less systematic in his or her decision making. The consumer has a new problem to solve, but it is not a problem that is interesting or engaging, so the information search is limited to simply trying the first brand encountered.

101. A need state arises when one’s desired state of affairs differs from one’s actual state of affairs. Need states are accompanied by a mental discomfort or anxiety that motivates action; the severity of this discomfort can be widely variable depending on the genesis of the need.

One way advertising works is to point to and thereby activate needs that will motivate consumers to buy a product or service. A variety of needs can be fulfilled through consumption, and it is reasonable to suggest that consumers’ needs are often sufficiently recognized and motivating to many consumers. Products and services should provide benefits that fulfill consumers’ needs; hence, one of the advertiser’s primary jobs is to make the connection between the two for the consumer.

102. Emotion is incredibly important in consumer behavior. Researchers have shown that if a brand is associated with a positive emotion or feeling, the subsequent information about the brand is actually distorted in favor of the emotionlinked brand and against others. By this, we mean that consumers actually change the nature of incoming information to favor this emotional brand connection. It then affects subsequent consumer decisions in favor of the emotion-linked brand. This power favors the use of emotional branding techniques, brand relationship building, including advertising.

103. Advertising plays an important role in alleviating the cognitive dissonance that can occur after a purchase. Cognitive dissonance is the anxiety or regret that lingers after a difficult decision, sometimes called “buyer’s remorse.” Often, rejected alternatives have attractive features that lead people to second-guess their own decisions. If the goal is to generate satisfied customers, this dissonance must be resolved in a way that leads consumers to conclude that they did make the right decision after all.

Purchasing high- cost items or choosing from categories that include many desirable and comparable brands can yield high levels of cognitive dissonance.

When dissonance is expected, it makes good sense for the advertiser to reassure buyers with detailed information about its brands. Postpurchase reinforcement programs might involve direct mail, email, or other types of personalized contacts with the customer. This postpurchase period represents a great opportunity for the advertiser to have the undivided attention of the consumer and to provide information and advice about product use that will increase customer satisfaction.

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Chap 05_8e 104. An evoked set is the set of brands or even choices that a consumer makes to help narrow a decision. For instance, car shopping is overwhelming, so the consumer narrows it down to either a Ford or a Chevy or a Kia. Advertisers are interested in consumer’s choice sets, so they can identify both who is a potential customer to serve targeted ads to and also who competitors really are, so their ad messages can even parlay against them.

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Chap 06_8e Indicate whether the statement is true or false.

1. Some advertisers try to use approaches to reach the green consumer segment a. True b. False 2. Spending advertising dollars to get “switchers” to buy your brand may seem like a bad idea, but it often results in strong brand loyalty. a. True b. False 3. STP marketing includes three aspects: segmentation, targeting, and positioning. a. True b. False 4. In the world of advertising, products are positioned, but markets are segmented. a. True b. False 5. If an advertiser sees a large potential segment being served by a competitor with a big budget, it should withdraw from the marketplace. a. True b. False 6. Positioning relates to an attempt to give a brand meaning relative to its competitors. a. True b. False 7. Alluring is a company that manufactures cosmetic products. It claims to have the most innovative and scientific formula of the makeup. To be internally consistent, the company should invest in a better Research and Development department to continue product innovation. a. True b. False 8. A brand’s opportunity claim is a statement of the brand’s benefits that provide value to its target consumers and includes functional, emotional, and self-expressive benefits. a. True b. False 9. When a brand team defines the target market of consumers for their product, they do not worry about identifying many smaller subsets of consumers within their broad market. a. True b. False

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Chap 06_8e 10. If Nike decides to use the STP framework, it does not need to do market segmentation. a. True b. False 11. Bumbo is a company that manufactures products for babies and toddlers. Its advertising campaigns have carried various slogans over the years, and they change up the thematic core of the messages every week. This is an example of consistent positioning approach. a. True b. False 12. Brand opportunities relate with credibility, relevance, stretch, and differentiation. a. True b. False 13. Psychographic segmentation is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers’ activities, interests, and opinions. a. True b. False 14. Companies at times target “casual users”. a. True b. False 15. The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaign’s colors, celebrity endorsers, and logo. a. True b. False 16. The basic premise of a positioning strategy must be complex and fitting in with the competitors’ messages if it is to be communicated effectively to the target segment. a. True b. False 17. When formulating a positioning strategy, it is important to consider the competition. a. True b. False 18. Advertising is relevant for both business-to-business as well as for business-to-consumer approaches. a. True b. False 19. Demographics are used to describe or profile target segments and may include gender, age, education, and income range. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 06_8e 20. Psychographic segmentation is used in selecting target segments by focusing on consumers’ descriptors such as their values, beliefs, philosophies, and opinions. a. True b. False 21. One drawback of niche marketing is that a company may have to raise the price of its product due to the smaller volume of sales it can expect. a. True b. False 22. Taco Bell is launching a new advertising campaign portraying its restaurant as having very fast service and a cheerful staff to target a younger crowd. The campaign will be more successful if it uses various aspects of IBP such as sponsorships, contests, and sales promotions in addition to TV and social media, rather than TV commercials alone, to best reach this group. a. True b. False 23. A gourmet spa advertises itself as offering relaxation to the extreme and the best massage in America.

The owner of the local shop buys ads focusing on a relaxing experience and their award-winning massage therapists. This is an example of internal consistency. a. True b. False 24. When ad agency professionals are creating a campaign for a huge global retail firm with complex value propositions, it is important to make sure the campaign aligns with one or more aspects of the brand’s value. a. True b. False

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Chap 06_8e Indicate the answer choice that best completes the statement or answers the question.

Scenario 6-1 Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments.

More recently the company has launched Venus Embrace, the first five-blade women’s razor, with the tagline, “Reveal the Goddess in You.” According to its website, at one point there 40 million women using Venus products. (http://www.gillettevenus.com/en_US/products/index.jsp) 25. (Scenario 6-1) The position for any one market segment should: a. also hold an appeal for those outside the segment. b. be identical to positions selected for other segments. c. change occasionally to break through advertising clutter. d. be easily communicated to consumers.

26. Why are systems such as PRIZM used by advertisers for segmentation? a. because they provide deep segment description b. because they allow for segmentation on the basis of frequency of usage c. because they provide deep insights into consumers' motivations d. because they emphasize the understanding of consumers’ activities, interests, and opinions 27. A brand’s is a statement of the functional, emotional, and/or self-expressive benefits delivered by the brand. a. universal product code b. memorandum of understanding c. value proposition d. warranty 28. The American Pork Producers has been running a long-term campaign with the tagline "Pork. The other white meat." This is an example of: a. lifestyle segmentation. b. demographic segmentation. c. benefit positioning. d. competitive positioning.

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Chap 06_8e 29. A firm hires an agency to persuade real estate professionals to use their finance services. In this case, the agency is specifically involved in: a. psychographic research. b. business-to-business marketing. c. the competitive field d. need-based segmentation.

30. Folgers coffee focuses on graduates and newlyweds in advertising, as they are the next generation of coffee-drinkers at home. This campaign is an example of: a. ambush marketing. b. guerilla marketing. c. heavy-user-focused marketing. d. point-of-entry marketing.

31. (Scenario 6-1) The original plan to sell new products to the female market: a. cannot be considered an STP effort because Gillette is targeting multiple segments. b. may or may not have been an STP effort, depending on whether Gillette has created sub-segments of these large segments. c. may or may not have been an STP effort, depending on whether all possible segments are being targeted

by Gillette. d. fit all the criteria of an STP effort by Gillette.

32. A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves customers within 100 seconds. To maintain internal consistency, the firm might take all of the following steps below, EXCEPT for which one? a. adding a gourmet condiment station with more flavors and sauce choices b. adding extra drive-up windows c. hiring more order-takers d. hanging up digital timers behind the counter 33. The use of psychographics to focus on differences in consumers’ activities, interests, and opinions usually results in segmentation. a. new -user-focused b. bias c. time d. lifestyle 34. The consumers termed ____ turn out to be a costly target segment; much can be spent in getting their business merely to have it disappear just as quickly as it was won. a. brand freaks b. lead users c. switchers d. heavy users

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Chap 06_8e 35. A potential downside of a heavy-user-focused segmentation plan is that: a. there may be a relatively small number of people in the segment. b. heavy users usually require constant encouragement to keep consuming a product. c. heavy users do not differ significantly from infrequent users in terms of their motivations to consume. d. it shifts focus to old consumers who quit.

36. Lion Inc., a manufacturer of shampoo, offers two product lines, each catering to a distinct segment. Its most popular brand targets women who want hair that will shine for days after a wash while blocking the sun’s rays.

With this brand, the company targets a niche market of women who are looking for shine and UV protection.

What type of segmentation is Lion Inc. using? a. Benefit segmentation b. Heavy-user-focused segmentation c. Positioning segmentation d. Geographic segmentation 37. A characteristic that share is that their brand preferences are still under development. a. variety seekers b. brand-freaks c. heavy users d. emergent consumers 38. A powerful value proposition in many situations includes functional, emotional, and self-expressive benefits, a. though there is only one basis for market segmentation. b. though it is not easy to reflect all three aspects in one single ad. c. all of which must be included in a given headline. d. though it only applies to services.

39. (Scenario 6-5) In marketing materials created to target fans, the slogan "Two hours of wholesome fun for all ages" is used to attract ticket-buyers. This philosophy is an example of segmentation. a. niche b. demographic c. geodemographic d. benefit

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Chap 06_8e Scenario 6-3 Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces."

40. (Scenario 6-3) Instead of “mothers and daughters,” why didn’t Keds define its target segment simply as “women”? a. This concept already has a number of established companies targeting it. b. This is not based on a realistic approach to segmentation. c. This is based on demographic criteria for which media is difficult to define. d. This is poorly defined and provides no clear orientation or identity.

41. What is a downside to adopting a heavy-user-focused segmentation plan? a. Heavy users usually form less than one percent of users by volume. b. Heavy users may differ significantly from average or infrequent users in terms of their motivations to consume, their approach to the brand, or their image of the brand. c. Heavy users are a costly target segment and much can be spent in getting their business merely to have it disappear just as quickly as it was won. d. Heavy users have little knowledge of the brand and negligible social influence.

42. (Scenario 6-4) The Plantatarium sends out direct mail offers to consumers in a nearby zip code who have household incomes of greater than $60,000 a year. This is an illustration of a ________ strategy. a. geographic segmentation b. demographic segmentation c. psychographic segmentation d. geodemographic segmentation 43. What does the acronym STP mean? a. Sales, Target, Product b. Sell To People c. Segmenting, Targeting, Positioning d. Sell The Product 44. Which segment is important when there is a big influx of first-time buyers? a. switchers b. brand-freaks c. lead users d. emergent consumers

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Chap 06_8e Scenario 6-2 Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand’s cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.

Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company.

45. (Scenario 6-2) The consumers of segment A can be classified as . a. fickle users b. heavy users c. variety users d. competitive users 46. What is geodemographic segmentation? a. Creating multiple media markets to reach many global consumers. b. Positioning a new service in a new region. c. Identifying neighborhoods by zip code around the country that share common demographic characteristics. d. Expanding a brand into a new country in a region where it already operates.

47. _____ is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers’ activities, interests, and opinions. a. Demographics b. Geodemographics c. Psychographics d. Micrographics

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Chap 06_8e Scenario 6-5 Madison State University has a reputation for having a powerful intercollegiate coed bowling team. Seating in the campus bowling alley only allows for 400 fans to attend their matches. Long lines for seats have formed in the past, with many fans leaving disappointed because they could not get a ticket. As a result, the school's administrators decided to institute a "priority seating" plan in which fans would be given access to advance tickets based on the following schedule: "Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats to any match (100 seats total) "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats to any match (100 seats total) "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to any match (100 seats total) "Alleycat Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total) 48. (Scenario 6-5) Based on the planned schedule described here, students who have maintained a 3.9 GPA would be described as one of the bowling team's: a. nonuser groups. b. positioning strategies. c. target segments. d. diverse markets.

49. An important apex in Thorson and Moore's strategic planning triangle entails: a. identification and specification of complex themes. b. identification of the various global markets. c. specification of the brand’s value proposition. d. specification of details.

50. For most products and services, some users will purchase much more, and more frequently, than others. These consumers are called . a. lead users b. switchers c. emergent consumers d. variety seekers 51. Effective positioning strategies should be linked to the ______________ offered by the brand. a. history b. substantive benefits c. sale d. drama Copyright Cengage Learning. Powered by Cognero.

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Chap 06_8e 52. (Scenario 6-4) A small group of customers have mentioned that they would like to browse through several varieties of cactus, so the Garretts have decided to devote a small corner exclusively to rare cacti. These customers constitute an example of: a. market niche. b. psychographic segmentation. c. geographic segmentation. d. demographic segmentation.

53. (Scenario 6-5) A group of about 30 students who are roommates and friends of the team members—many are casual bowlers themselves—have attended every match for nearly three years. These students would best be described as: a. competitive users. b. emergent consumers. c. heavy users. d. variety seekers.

54. (Scenario 6-2) Segment C consumers are more likely to be . a. emergent consumers b. brand freaks c. lead users d. variety seekers 55. Which system has identified many market segments based on zip codes and the personal characteristics of their residents, creating a well-known tool for geodemographic segmentation? a. Thorson and Moore’s model b. PRIZM c. SIC Codes d. VALS 56. (Scenario 6-2) If Sunshine Meals Inc. begins producing a range of sugar-free marmalades to target a small segment of health-conscious consumers who would be willing to pay a premium price for products appropriate for their diets, this would be an example of: a. niche marketing. b. geographic segmentation. c. point-of-entry marketing. d. geodemographic segmentation.

57. (Scenario 6-1) According to the information provided here, Gillette has identified market segments along lines. a. benefit b. demographic c. geographic d. usage pattern

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Chap 06_8e 58. In Chobani yogurt’s positioning as the yogurt with quality ingredients only, it can benefit the position of the brand with: a. competitors. b. integrated brand promotion. c. not having any advertising. d. taking information out of any advertising.

59. (Scenario 6-5) With the new plan, the bowling team is attempting to encourage local bowlers and other bowling aficionados to come watch the team in action. This is an example of segmentation. a. emergent b. geographic c. lifestyle d. demographic 60. The Folgers brand team looked at the diverse market of all coffee drinkers, then broke it down by age. The team chose to focus on college-aged students who were new to coffee; these people represent the _______ a. benefit positioning. b. positioning value proposition. c. target market. d. segmenting persuasion tools.

61. What does “T” stand for in the term STP marketing? a. Tangible b. Technology c. Target d. Territory 62. (Scenario 6-2) Which of the following marketing strategies is more likely to have been used by the company to target segment B users? a. Niche marketing b. Geographic segmentation marketing c. Ambush marketing d. Point-of-entry marketing 63. (Scenario 6-3) The information provided says that Keds was trying to “turn around a long-term slide” in its shoe business, and that “for years, it had depended on its image as the women's no-frills summer shoe.” Obviously, things had changed and what Keds needed was a change in its once-successful strategy and identity to meet new market conditions. This change in strategy is called: a. internal consistency. b. self-expressive marketing. c. repositioning. d. business-to-business marketing.

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Chap 06_8e Scenario 6-4 Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 1824. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The seniors liked them because they became the focus of a hobby. The professionals did not buy them for any reason other than décor.

64. (Scenario 6-4) To attract the ______ in the market, the Plantatarium offers a punch card that rewards buyers with a $10 discount each time they purchase $190 worth of plants and other goods from the store. a. emergent consumers b. demographic segment c. variety seekers d. heavy users 65. Which of the following forms the final apex of the strategic planning triangle proposed by Esther Thorson and Jeri Moore? a. selection of a mix of persuasion tools b. identification of the target segment c. specification of the brand’s value proposition d. division of a market into segments 66. (Scenario 6-5) Each summer, the MSU Athletic Director looks at the city map, chooses a different local neighborhood, and knocks on doors, encouraging residents to join one of the supporting clubs. He then keeps track of which neighborhoods are the strongest supporters, and which may need more prompting in the future. In this way he is using a segmentation strategy. a. psychographic b. heavy-user-focused c. geographic d. demographic 67. (Scenario 6-1) ______ is a tool likely employed by Gillette to supplement the use of demographic data by providing information about consumers’ activities, interests, and opinions. a. Psychographics b. PRIZM c. STP d. Bass diffusion

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Chap 06_8e 68. _____ involves the overlapping of four important factors: current relevance to the consumer, credibility or consumer belief in the brand, differentiation or a recognition of uniqueness, and “stretch” or the potential for consumer relevance over time. a. SWOT analysis b. Competitive field c. Brand opportunity d. Niche marketing 69. (Scenario 6-1) It appears that the management at Gillette has performed the fundamental task behind effective segmentation; Gillette has matched what members of different segments want with: a. the company's ability to provide it. b. a single appeal. c. a heavy-user-focused campaign. d. a distinct geographic profile.

70. The McDonald’s team aligned its marketing mix in a design that would represent a particular identity, showcasing certain themes and value, and shaped to gain distinctive approval from parents. This demonstrates the process of ______. a. switching. b. commoditization. c. segmenting. d. singularization.

71. As a segment, variety seekers: a. are extremely committed to a brand. b. enjoy new experiences and switch brands for that reason. c. need little encouragement to continue purchasing a brand. d. are unusually enthusiastic about one brand and often excessive in their purchasing activities of it.

72. A major criterion to consider during segment selection is the ____, or the companies that are vying for that segment’s business. a. ad clutter b. business market c. competitive field d. niche market 73. What is the first step in STP marketing? a. market segmentation b. solidify strategy c. supplementary positioning d. selecting marketing

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Chap 06_8e 74. (Scenario 6-4) The owners of this business have decided to carry a great deal of plants that flower throughout the year because most consumers have said they like them for the cheerful feeling they give. This suggests that The Plantatarium is focusing on what different consumers want from its offerings, that is, segmentation. a. business-to-business b. psychographic c. benefit d. repositioning 75. In STP marketing, the term competitors. a. segmentation b. redistribution c. positioning d. targeting

refers to an attempt to give a brand a certain meaning relative to its

76. In recent years, mobile phones and location of consumers on the go relates with a. value b. micrographic c. reprographic d. geodemographic

segmentation.

77. (Scenario 6-3) The copy for this campaign features moms and daughters commenting on their close relationships, and Brandweek magazine said that the new Keds ads "really go for the heart." This points to the campaign’s focus on a. identifying emotional benefits. b. delivering its promise. c. targeting nonusers. d. using VALS data.

78. Location is most related to a. geographic b. psychographic c. competitive d. demographic

segmentation.

79. (Scenario 6-3) Which of these segmentation techniques would provide the most insight for Keds' advertising agency in the creation of its advertisements? a. Emergent b. Lifestyle c. Geographic d. Usage pattern

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Chap 06_8e 80. What is niche marketing? a. A relatively small group of consumers within a segment that has a distinctive set of needs or seeks very specific benefits. b. A large group of heavy users who are loyal to a brand because it provides value at a relatively low price c. A market segment that is served by many firms and is characterized by high levels of competition d. A market segment that is characterized by high sales volumes and low prices 81. A ______ is a core idea that frames an ambition or aspiration for a brand that will be relevant to target audiences over time. a. brand extension b. brand orientation c. brand initial d. brand platform 82. Segment selection revolves around what the members of the segment want versus: a. how much they are willing to pay for it. b. whether the segment is currently growing. c. how much they are willing to settle for. d. the organization’s ability to provide it.

83. The top of the strategic planning triangle is , as it relates to customers. a. specification of the brand’s history b. identification and specification of the target segment c. identification of the various headlines that may be deployed as part of the campaigns d. specification of ideas 84. The process of cutting a market into pieces and focusing on the piece or pieces that make the most sense is termed ________. a. segmentation b. integration c. rationalization d. differentiation 85. There should be ______ persuasion tool(s). a. five b. a mix of c. one d. two

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Chap 06_8e 86. Which of the following is true of segment selection? a. The number of heavy users in a segment is usually very large. b. It is enough to assess the size of a segment to select it as a company’s target segment. c. Growth potentials for all segments are generally very low. d. Marketers are inclined to devote resources to segments projected for dramatic growth.

87. Climate, topography, community size, and national region have been found to make dramatic differences in consumption, including habits involving eating and food preparation, entertainment, and recreation. This is the basis of segmentation. a. psychographic b. commitment-level-based c. geographic d. demographic 88. One big plus from a product position that stays consistent over time, like Chick-fil-A’s “Eat More Chicken” campaign, is that it: a. is more likely to break through advertising clutter. b. successfully reaches nonusers. c. doesn’t need to target a particular segment. d. is easily repositioned.

89. (Scenario 6-4) The Plantatarium promotes itself in different media using the phrase "An out-of-this-world selection of unique plants." This phrase is a reflection of the firm's a. positioning strategy. b. VALS profile. c. target market. d. demographics.

90. What are the disadvantages of the heavy-user strategy?

91. Describe the concept known as niche marketing. What are the competitive advantages of marketing to a niche?

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Chap 06_8e 92. What is a value proposition? Explain why it is useful—even critical—to an organization, its brand, its team, and its target audience.

93. What is a positioning strategy?

94. What is the difference between a consumer market and a business market? Give an example of each. Then describe how business markets are segmented, and use your example to explain your answer.

95. Think about a product that you have used in the past week. Using this as an example, explain the differences between segmenting, targeting, and positioning in the STP approach to marketing.

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Chap 06_8e Answer Key 1. True 2. False 3. True 4. True 5. False 6. True 7. True 8. False 9. False 10. False 11. False 12. True 13. True 14. True 15. False 16. False 17. True 18. True 19. True 20. True 21. True 22. True 23. True 24. True 25. d 26. a

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Chap 06_8e 27. c 28. d 29. b 30. d 31. d 32. a 33. d 34. c 35. a 36. a 37. d 38. b 39. d 40. d 41. b 42. d 43. c 44. d 45. b 46. c 47. c 48. c 49. c 50. a 51. b 52. a 53. c 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 06_8e 55. b 56. a 57. b 58. b 59. c 60. c 61. c 62. d 63. c 64. d 65. a 66. c 67. a 68. c 69. a 70. c 71. b 72. c 73. a 74. c 75. c 76. d 77. a 78. d 79. b 80. a 81. d 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 06_8e 83. b 84. a 85. b 86. d 87. c 88. a 89. a 90. A heavy-user focus by an advertiser takes attention and resources away from those who do need encouragement to purchase the marketer's brand. Also, various heavy users may be significantly different in terms of their motivation to consume, their approach to the product, or their image of the product.

91. Niche marketing is based on the premise that smaller is often better when selecting target segments. By definition, large segments are usually established segments that many companies have identified and targeted previously. However, these large segments may be poorly defined. Niche marketing involves identifying and serving a relatively small group of consumers who have a unique set of needs. Typically, these consumers are willing to pay a premium price to the firm that specializes in meeting those needs. The small size of a market niche often means it would not be profitable for more than one organization to serve it. Thus, when a firm identifies and develops products for market niches, the threat of competitors developing imitative products to attack the niches is reduced.

92. A value proposition is a statement of the functional, emotional, and self-expressive benefits offered by the brand. It acts as the basis for brand choice and customer loyalty, which is critical to the ongoing success of a firm.

The value proposition offers a way to capture the full record of a brand and all of its characteristics and benefits. It also provides a foundation and structure that will maintain this information as new members join the team and work on new promotional efforts for the brand. It is basically a way to capture the brand strategy on paper. It makes things crystal clear about what is believed and known about the brand. That way, everyone on the team can share this clear set of values, benefits, and other pieces of information related to the brand.

But more important, the value proposition is what keeps the brand consistent in the eyes of the target market. It consolidates all the customer benefits offered by a product, and reminds consumers of these benefits.

Over time, different aspects can be built into the value proposition. Well-established benefits reinforce one another, and new benefits are added to current ones. Some brands—national brands, and especially global brands—are very involved and complex, with long histories and decades of marketing efforts. They may now involve branded entertainment, product placement, mobile marketing, online advertising, or other relatively new promotional formats. The value proposition for these products is even more important in order to keep all brand information clear and consistent throughout all promotional efforts.

93. A positioning strategy involves the selection of key themes or concepts that the organization decides to feature to communicate the distinctiveness of its product. It helps the consumer understand what the product does. It must be simple and distinctive. Once the firm has segmented the market and selected its targets, the positioning strategy should come naturally.

It can involve several themes: current relevance to the consumer, credibility or consumer belief in the brand, differentiation or a recognition of uniqueness, and “stretch” or the potential for consumer relevance over time. The point at which these four meet is considered the best opportunity, the brand’s best position.

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Chap 06_8e 94. Consumer markets are basically made up of individuals, or households—those markets for products and services that are purchased by people or their families and housemates to fulfill various personal needs.

Business markets are made up of institutional and industrial buyers who purchase items, parts, equipment, supplies, or other materials to be used in the production of other goods and services, which are then resold to other businesses or directly to households.

Business markets can be segmented in some ways similar to the methods used for consumer markets, such as analyzing their usage rates and geographic locations. But some methods used for consumers—such as psychographic or lifestyle segmentation— normally do not translate well to business buyers. Instead, simple sales-related methods are often used, such as identifying business markets based on their stage in the purchase process. In this way, potential prospects, first-time buyers, or those new to the market or industry can be targeted differently than long-standing business customers, and can be specifically addressed by the company’s advertisements and promotions.

95. Student examples will vary. Depending on the product, their approach to marketing will vary also.

Segmenting involves breaking down large, heterogeneous, and diverse markets into manageable submarkets, or customer segments. For segmenting to be useful, a marketer must be able to reach these resulting submarkets with its message.

One of the most common ways to approach this task is by analyzing consumption patterns and commitment levels (heavy users, nonusers, brand-loyal users, variety seekers or switchers, emergent consumers). Other methods that are used include demographic, geographic, geodemographic, psychographic, and benefit segmentation.

Targeting involves choosing the specific subgroup—the target segment—as the focal point of the marketing efforts.

Often, the largest segment is not chosen as the target, but rather, it is the particular segment made up of certain individuals with similar interests, needs, or lifestyles that may have a certain need or desire for the product.

Positioning involves designing and representing a product so it will occupy a distinct and valuable space in the marketplace. Positioning strategy is created when a company selects key themes and concepts to feature regarding the product when communicating its distinctive qualities.

Overall, markets are segmented, while products are positioned.

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Chap 07_8e Indicate whether the statement is true or false.

1. Netnography is a method to understand online communities or online cultures. a. True b. False 2. Big data can be analyzed by artificial intelligence, as algorithms can detect patterns or trends. a. True b. False 3. Big data is data in a very large dataset that researchers use computer algorithms to find patterns in. a. True b. False 4. ZMET is designed to draw out people’s buried thoughts and feelings about products and brands, based on their use of metaphors. a. True b. False 5. In-depth interviews with consumers can be used to supplement the findings from AIO research and vice versa. a. True b. False 6. A focus group is quantitative, or numbers-oriented research. a. True b. False 7. Developmental advertising is conducted early in the advertising process, before the ads, branded entertainment, or other forms of IBP are created. a. True b. False 8. A concept test seeks feedback designed to screen the quality of a new idea. a. True b. False 9. A communication test simply explores whether the people “get” the ad—whether they understand the main point, understand the joke, or see the connection. a. True b. False 10. Eye-tracking technology systems basically measure where and how long a person gazes at a particular print ad or a particular part of the ad. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 07_8e 11. AIO research can also be known as lifestyle research. a. True b. False 12. In a resonance test, the goal is to determine to what extent the message resonates or rings true with target audience members. a. True b. False 13. A downside of big data is that researchers don’t always know why certain behaviors have occurred. a. True b. False 14. For print ads and promotions, recall testing is the standard memory test. a. True b. False 15. Design thinking often relies on preconceived notions of a good or service. a. True b. False 16. Implicit memory measures do not refer to the ad or exposure but try to get at memory by using tasks like filling in the missing part of a brand name along with other recollections. a. True b. False 17. Overall, recognition is easier, because people are shown a stimulus and answer yes or no about having seen it, whereas recall is harder, because people have to deliberately search their memories for a concept without any prompting or stimulus. a. True b. False 18. One way to obtain information about marketing and advertising is to purchase data from commercial services or to hire a consultant to conduct marketing or advertising research. a. True b. False 19. Research is not helpful in generating opportunities and messages. a. True b. False 20. Unaided recall is when the respondent demonstrates that he or she saw the commercial and remembered the brand name without the brand name mentioned. a. True b. False

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Chap 07_8e 21. Advertising has the greatest impact on sales early in the product life cycle. a. True b. False 22. Recognition tests are the same as recall tests. a. True b. False 23. Direct response research can be seen with consumer inquiries, calls, clicks on a website, and other responses to an opportunity that the advertiser presents. a. True b. False 24. Focus groups are not appropriate for generating statistics and making scientific generalizations. a. True b. False 25. Consumer insights are pieces of critical information provided by developmental research. a. True b. False 26. Thought listings and cognitive response analysis are tests of knowledge, cognitive impact, and to a lesser degree feelings and emotions. a. True b. False 27. Copy research is also known as evaluative research, and it is a term created back when ads were mostly words. a. True b. False 28. While Big Data refers to large data sets to analyze, netnography is a method to understand online communities or online cultures. a. True b. False 29. Big data is data in a very large dataset that researchers use computer algorithms to find patterns in, and it is often analyzed by artificial intelligence to detect patterns or trends. a. True b. False 30. Netnography and big data are important concepts, often relating to the internet. a. True b. False

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Chap 07_8e 31. Developmental advertising and promotion research is used to generate opportunities and messages. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

32. (Scenario 7-5) Solutions Group executives may consider trying _____, the popular technique in which people’s buried thoughts about brands are drawn out by having them define their feelings creatively with other visual representations. a. ZMET b. ISSP c. AIO d. ACS Scenario 7-3 After filing for bankruptcy in 2009 and requiring nearly $58 billion in governmental funding simply to stay afloat, General Motors realized it had to undergo major changes in order to compete with more successful automakers.

The company began designing questionnaires and focus groups in order to gain a better understanding of what its cars had been lacking, and to probe for specific improvements consumers may have been looking for. The company recorded its research findings and began to apply them to its product line. A little over a year later, Consumer Reports stated that 83 percent of Chevrolets, GM’s top brand, had an average or better score in terms of predicted reliability, an increase from 50 percent the year before. Apparently, the company’s efforts helped turn the company in the right direction. (“Consumer Reports: GM Reliability Makes Great Strides.” MSNBC.com, October 26, 2010.)

33. (Scenario 7-3) In its research, GM hoped to find why consumers liked certain features in their cars and disliked others. GM inquired about consumer wants and needs, and then looked to apply its findings to product development. This process is called: a. developmental advertising. b. design thinking. c. concept testing. d. audience profiling.

34. The type of advertising research undertaken before ads are made is known as a. copy research b. developmental research c. post-hoc research d. single-source research

.

35. Recall measurements make sense when the goal of the commercial is to make consumers: a. project a new picture or image of the brand. b. feel an emotion connected to the brand. c. remember the brand name. d. think of a time when the brand can be used.

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Chap 07_8e 36. (Scenario 7-4) One assistant comes in to show you the results of some recognition tests that have been run on a magazine advertisement. She is really excited by the high levels of recognition. You caution her not to get too excited, because high levels of recognition: a. can rarely be judged by normative data. b. don’t always correlate to higher product sales. c. can be inaccurate since respondents don't get to see the ad beforehand. d. calculate feelings about an ad rather than thoughts about an ad.

37. ______ is a type of projective technique that offers consumers the chance to fill in the conversation of cartoonlike stories. a. Story construction b. ZMET c. Consumer report d. Dialogue balloon Scenario 7-6 Wood Carver Cabinet Makers recently developed a line of kitchen cabinets designed for new custom homes and kitchen remodeling jobs. The line of cabinets is to be called "Signature Hardwoods" and a new magazine advertising campaign is being tested. Each of the ads being tested has a photograph of a woodworker handcrafting some part of the cabinet. In addition, his or her signature is shown at the bottom of the page as an indicator that the cabinets are carefully hand made.

38. (Scenario 7-6) A marketing manager at Wood Carver said in a manager's meeting, "We have to get quick feedback on the overall quality and usefulness of these new ideas. We'll just have to let the focus group make the final judgment on these ads." Which research method is he considering? a. Survey b. Concept test c. Direct response measure d. Tracking study 39. Why are emotions important to understand, as well as a big part of the consumer behavior knowledge in account planning? a. They are good predictors of thoughts. b. They are easy to understand and always indicative of eventual purchase behavior. c. They are easy to define and describe. d. They are clear indicators of subliminal reactions.

40. _______ is research on the actual ads or promotional texts themselves, finished or unfinished. a. Results-oriented research b. Copy research c. Industry nonprofit research d. Promotional research

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Chap 07_8e Scenario 7-2 You have been appointed director of research for the Rhode Island Runners, a new minor league baseball team that will make its debut in six months. There have been minor league franchises in the area in the past, but due to a lack of fan support, they all have folded. The Runners’ upper management is convinced that past failures were the result of improper marketing. Therefore, management has committed a substantial amount of money to developing smart, effective advertising. Management has put you in charge of an intensive one-year program to guide and track the advertising.

41. (Scenario 7-2) In designing the new marketing campaign, developmental advertising research would be helpful in a number of areas. When considering its marketing goals, the Rhode Island Runners staff wants to execute it, because the most important service developmental research provides is: a. ad acceptance data. b. product description. c. audience profiling. d. scientific evaluation.

42. Which philosophy of advertising focuses on building a thought process that dismisses preconceived notions and instead attempts to create from scratch what a good or service should look like? a. Starch Readership Services b. Activities, interests, and opinions c. Design thinking d. Zaltman Metaphor Elicitation Technique 43. ______ involves collecting data or research outside of the agency or lab and instead in a site of consumption or home. a. Online netnography b. field work c. Geographic clustering d. Consumer panel 44. What type of research can the agency conduct to check if the audience understands the humor in an ad? a. A communication test b. Developmental research c. Secondary research d. Projective techniques 45. (Scenario 7-4) An assistant comes in and says that she can find relevant secondary information about the U.S. quickly because she is familiar with government web sites, but she is not sure about finding information from all over the world. You give her the web address for: a. Eurobarometer. b. the Census. c. International Social Survey Programme. d. Current Population Survey.

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Chap 07_8e 46. (Scenario 7-6) To target new markets, Wood Carver is looking for up-to-date information—the latest available— on employment, occupation, and income throughout the country without having to pay a fee for commercial data.

National data on consumers is gathered by the U.S. Census through a number of avenues, but one of its survey instruments publishes monthly statistics on just these topics. Which is it? a. Pew Center Survey b. Current Population Survey c. American Demographics Survey d. International Social Survey 47. (Scenario 7-5) The Solutions Group may want to center on fieldwork as its primary research method because it is designed to measure “embedded” consumer practices, that is: a. those conducted on the spot in stores, malls, and on Internet retail sites. b. those tightly intertwined in the social lives of consumers. c. those previously subconscious thoughts or hidden feelings that are revealed. d. those habitual and almost automatic purchasing decisions.

48. Which is most descriptive of “tracking studies”? a. Memory of ad imagery is simple to measure. b. Statistical models can isolate the effect of the promotion. c. Consumer recall of taglines is unusually high. d. The apparent effect of advertising and branded entertainment is tracked before, during, or after the launch of a campaign.

49. Developmental research looks at consumers’ identities, perceptions, wants, and habits early in the production process so these elements can influence the final ad before a lot of money is spent. This type of ad research is also called: a. account planning. b. design thinking. c. consumer insight. d. scientific advertising.

50. Researchers are trying to determine which Apple advertisements are the most effective for a laptop company that is running a number of commercial spots. After participating, viewers are asked if they saw a laptop commercial during a show; some require further prompting, so are asked if they saw an Apple ad. What are the researchers attempting to determine? a. Aided and unaided recall of the commercial b. Implicit memory of the commercial c. The resonance of the commercial d. Recognition of the commercial

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Chap 07_8e 51. (Scenario 7-1) Before the new system is released, Nintendo creates a series of television commercials and print ads to promote the product. The ads are shown to a group of study participants, and then the participants are asked to express how they feel about the advertisement. This is an example of a: a. survey. b. recall test. c. communication test. d. recognition test.

52. (Scenario 7-2) All the Rhode Island Runners’ advertisements feature a phone number to get more information and to order tickets. This allows you to use to assess advertising effectiveness. a. brand-talk b. split-cable and split-run testing c. inquiry/direct response d. single-source tracking Scenario 7-4 You are the director of advertising research at a large Minneapolis ad agency. Due to employee turnover and budget cuts, you're currently staffed with too many entry-level research assistants and too few management-level research group leaders. To make matters worse, one of the group heads is on vacation and another is out sick.

Of course, your clients still expect their research to be done in a timely, professional manner. Therefore, you have gathered your department together and announced that your door is always open if anyone has any questions about any phase of any project. As a result, your entire day has been filled with questions.

53. (Scenario 7-4) An assistant comes in and says she needs some advice. One of the smaller clients of the agency needs some market information done very quickly—and very inexpensively. You tell her: a. to set up focus group interviews with consumers. b. to call a commercial service. c. to use direct mail surveys. d. to look through social media data.

54. Which of the following is true of recall tests? a. They are more commonly used for print ads than for TV ads. b. Recall tests are ineffective for ads on online media. c. They are designed to determine how much, if anything, an audience member remembers of an ad. d. A recall test involves less actual memory than a recognition test.

55. What test takes place over several days, usually with viewers watching a show at a particular time, then being called later and questioned about its commercials? a. Day-after-recall b. Secondary research. c. Focus group d. Eye-tracking

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Chap 07_8e 56. (Scenario 7-3) One technique used in focus groups involves the researcher presenting a scenario, and then the members of the group completing a phrase or sentence regarding the scenario. This technique is used in order to: a. createconfusionwithinthe group. b. let the researcher establish a dominant presence. c. create opportunities for idea development. d. understand consumers and observe the data being collected.

57. Projective techniques can test consumer response to ads with: a. in-depth, one-on-one, open-ended discussions. b. physiological techniques and brain scans. c. fragments of pictures or words that need to be completed. d. demographic profiles of market members.

58. In a recognition test, participants are likely to be: a. given a brand name and asked to provide words that they associate with it. b. asked if they recognize an ad or something in an ad. c. asked to recall the details of a print or television ad. d. given a picture and asked to make up a story about it.

59. Which type of research is about consumers’ thoughts during and following exposure of an ad or IBP message? a. Day-after recall b. Attitude-change study c. Communication test d. Thought listing 60. Dialogue balloons, story construction, and sentence and ZMET are all types of a. quantitative b. predictive c. survey d. projective

techniques.

61. Which method aims to zero in on the emotional components of ads by having respondents turn dials to show their like or dislike while viewing commercials? a. Single-source tracking b. Eye-tracking system c. Pre- and post-exposure attitude measurement d. Frame-by-frame testing

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Chap 07_8e 62. Which of the following is a tactic that might be used in an implicit memory measure? a. Completing a brand name after being given only half of its letters b. Filling a survey about attitudes c. Focus group studies d. Netnography 63. (Scenario 7-3) Allowing consumers to look at advertisements in a group can be a powerful indicator of their true feelings toward a particular ad. Peer influence can be observed, and hopefully some level of post-test screening can be done to create increased validity. These elements are characteristic of what kind of studies? a. Attitude studies b. Cognitive response studies c. Behavioral studies d. Quantitative studies 64. (Scenario 7-2) Your team has determined the main appeal that must be communicated in the advertising—that going to the ballpark is an affordable way to bring families closer together. Several print ads are in near-finished format. You want to directly measure the immediate and spontaneous responses of consumers, as ideas and reactions pop into their heads while viewing the ads and shortly afterwards. In this case, a good technique to use is: a. physiologicalmeasurement. b. thought listing. c. copy testing. d. attitude study.

65. In this era of _______, internal databases are particularly rich sources of details about individual buyers and buying trends that occur in the context of the advertiser’s IBP activities. a. traditional media b. copy heavy advertising c. big data d. nonprofit 66. Identifying the activities, interests, and opinions of target audiences to help creatives produce better advertising is called: a. lifestyle research. b. embedded description. c. story construction. d. normative research.

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Chap 07_8e 67. (Scenario 7-5) A number of "revolutionary" techniques can be found by the Solutions Group in an attempt to unearth consumers' true feelings and honest opinions about brands and ads. But they should remember that problems with validity most likely arise in studies when respondents are asked to: a. taste products in blind taste tests. b. recall their memories about ads for a particular brand. c. share their thoughts and opinions about certain brands they don't like. d. do things they don't normally do in real life when viewing ads.

68. The way to see what part of an ad attracts attention, and for how long, is with __________. a. Copy tests b. Cognitive residue measurements c. Eye-tracking studies d. Cognitive response analysis 69. A key advantage of using hashtags for advertising or campaigns is that it: a. demonstrates whether or not a consumer will buy the brand being advertised. b. allows for integration for integrated brand promotions. c. reaches consumers who only are reached with traditional media. d. reassures the client that the agency will use television.

70. Which of the following is accurate in the context of sales and advertising? a. Agencies that implement focus groups tend to do more quantitative and statistical research than their more traditional counterparts. b. Creative cost is less than that of relying on secondary sources. c. Account planners are being appointed with finance managers to work on each client's business. d. To some advertisers, the gold standard is determining whether the ad actually gets people to do something, such as buy the product.

71. When does a recall measurement make sense? a. During developmental testing, only if it is a market leader. b. When simple memory goals are the aim of the commercial. c. During the copy testing stage, only if the ad seems questionable. d. During recognition testing, only if it is a new brand.

72. (Scenario 7-1) In order to gather secondary research to support the company’s own primary research, Nintendo visits a number of social media sites hoping to find online communities with knowledge of the video game industry.

This intense Internet searching is referred to as: a. web mining. b. tracking software. c. commercial browsing. d. normative test scoring.

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Chap 07_8e 73. When consumers act as the judge and jury through their feedback on the quality of a new idea, they are taking part in a(n): a. observation analysis. b. concept test. c. direct response. d. eye tracking study.

74. Which of the following can be generally accepted as true? a. The ad agency wants government sources only. b. The account team wants to know if the ad works, which may be supported with numbers. c. The client wants awards for copy research. d. The creatives want industry and nonprofit sources.

75. (Scenario 7-6) Wood Carver might consider testing the magazine ad by recruiting a group of potential consumers to take part in story construction. What would a story construction technique ask these respondents to do? a. Provide a narrative about people depicted in a scene or picture b. Write a story about how they would use the product c. Fill in blanks in sentences that describe the ad d. Think visually about how they would represent their experiences with a brand 76. (Scenario 7-4) One research assistant is drafting a proposal for a research project. The client's primary objective is to find out whether the new ad rings true with consumers, or whether they feel the way the ad wants them to feel. The employee wants to know what test would specifically explore this aspect of the ad. You reply that _____ would be best. a. thought listing b. resonance testing c. recall testing d. recognition testing 77. (Scenario 7-2) You have determined that the major competitors in the family leisure market are movies, theme parks, and outdoor festivals. You use a theater test to measure attitude change resulting from a TV commercial being tested for the Runners. The spot does not do very well in the test. Still, your gut instincts say that the commercial is a good one. When reporting the results to the team owners, you should point out that: a. the commercial shouldn’t run as is, despite your own opinion of it. b. this kind of research is rarely useful in measuring actual behavior. c. the identification of competitors may have been inaccurate. d. theater audiences are not considered scientifically reliable.

78. Some of the most valuable data are: a. the competitors’ data strategies. b. out-of-date. c. internal company sources. d. gathered directly from managers.

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Chap 07_8e 79. (Scenario 7-3) GM relied heavily on focus groups to learn about some of its product shortfalls. Although focus groups may serve as a good source of qualitative information, many quickly downplay their overall effectiveness.

One common criticism of focus groups is: a. they provide a great deal of insight. b. they are never valid. c. they are very low in reliability. d. focus group members feel compelled and pressured.

80. The netnography is a blend of networks and ethnography; so, the researcher collects data from: a. Field surveys b. Lab experiments c. Online communities d. Panel data 81. A method called _____ involves both gathering online data from online communities as well as seeking unique information in online formats similar to that found in traditional face-to-face interviews. a. netnography b. projecting c. thought listing d. frame-by-frame testing 82. Explicit memory measures are those in which consumers are required to: a. demonstrate their knowledge of a product. b. search their memories about a product by using word fragments or pictures. c. project their feelings about a brand onto an ambiguous image. d. recall their actual exposure.

83. Attitude studies, which can be used in both account planning and advertising research, a. look at variables that cannot be accurately measured with a test. b. rely heavily on an artificial viewing experience. c. look at variables that only occur with repetitive exposures. d. measure consumer attitudes after exposure to a brand.

84. The value of account planning is: a. in the knowledge about consumer research and consumer behavior on the agency team working to create advertising and choose media on behalf of clients. b. that it is cheaper than other forms of ad testing. c. that it is versatile enough to be used for many different kinds of ads. d. its availability to consumers as they respond to the ad being tested.

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Chap 07_8e 85. The recent question “Where is advertising research going?” has largely hinged on: a. cities. b. schools. c. government research bodies. d. the rapid acceptance of digital media.

86. (Scenario 7-6) Wood Carver recruited a group of consumers who were thinking about remodeling their kitchens and asked them a series of questions about selecting brands for their new cabinets. Later, Wood Carver showed the consumers several of its magazine ads, after which they were asked several questions to measure their opinions towards the Wood Carver Cabinet products. What type of study did Wood Carver conduct? a. Attitude change b. Split-transmission c. Thought listing d. Physiological 87. What is the basic premise behind a recall test? a. For an ad to work, it has to be remembered. b. To be effective, an ad has to be based on motivation. c. To activate the memory, ads need five repeat exposures. d. If people like the ad, they will buy the product.

Scenario 7-1 Scheduled to be released in the first quarter of next year, Nintendo’s new portable gaming system will likely revolutionize the video game industry. It is the newest in a long line of portable gaming systems made by Nintendo, but will now boast a number of new features—including 3-dimensional technology that does not require the use of any special viewing goggles or glasses. The new system will also allow consumers to play classic games from older generations of Nintendo products, watch HD movies, and create fictional characters that were made famous by Nintendo’s Wii. Nintendo hopes its new gaming system will once again put Nintendo at the top of the video game industry, having lost some of its market share to Sony and Microsoft in recent years.

88. (Scenario 7-1) To determine which features to include in the new system, Nintendo does a lot of research probing consumer opinions towards video games. To do so, Nintendo uses a(n) ____ that allows consumers to be the “judge and jury” in evaluating the quality of their new idea. a. concept test b. attitude study c. frame-by-frame test d. physiological assessment 89. (Scenario 7-6) Wood Carver wants to know if readers remember having seen its magazine ads, and possibly its name. Unlike testing television ads, Wood Carver should use a as the standard to test these ads. a. print recall test b. tracking study c. brand-talk search d. recognition test

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Chap 07_8e 90. (Scenario 7-5) Solutions Group managers suggest that clients consider doing a resonance test when designing advertising, because this will help them understand target consumers regarding their: a. recognition of the brand. b. potential purchase of the brand. c. emotional connection to the brand. d. attitude changes about the brand.

Scenario 7-5 The Solutions Group is a combination of companies that helps clients better understand their target markets through creative research approaches. It has learned that many people have become quite adept at filtering out advertising messages and therefore do not respond to traditional research instruments such as surveys. The Solutions Group says that there must be a "research revolution" based on true dialogues with consumers, not oneway monologues often seen in traditional surveys.

91. (Scenario 7-5) The Solutions Group likes to ask its clients’ potential customers a wide variety of questions so they can share their thoughts about themselves, their lives, and all the daily elements that are important to them. What type of research does this represent? a. Dialogue balloon b. Frame-by-frame c. Projective d. Lifestyle 92. In a research study using the Zaltman Metaphor Elicitation Technique, participants: a. suggest alternative design options for a particular product. b. fill out surveys about their consumption habits. c. use the product in a controlled environment, while researchers observe them. d. visually represent their experiences with a product or service with a collection of photographs or pictures.

93. What is a recent trend in advertising? a. The increasingly younger consumer population in the United States b. The move to a more visual advertising style from largely verbal approaches c. The expansion of engineering within established agencies d. The popularity of newspapers 94. Which of the following is an example of cognitive residue, as advertisers would define it? a. Being unable to recall anything about an ad when a brand name is mentioned to you b. Having a certain brand name in mind, above all others, and making a point to buy only that brand c. Pieces of the ads mixed in with the consumers own thoughts and reactions d. Knowing that you want to buy a product but not being sure why

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Chap 07_8e 95. (Scenario 7-2) Tracking studies will be good tools for this campaign, since they follow the apparent effect of the advertising over time, and this type of follow-up is required throughout the first year of this baseball team’s campaign. Tracking studies are usually done in which format? a. Focus group b. Survey c. Projective test d. Readership test 96. ______ is a type of thought process that emphasizes getting rid of any preconceived notions of what a good or service is currently and replaces it with a process in which designers partner with users/potential users to actually create from scratch what the good or service should actually look like. a. Design thinking b. Red-hat thinking c. Systems thinking d. Convergent thinking 97. Which of the following is a particular kind of research done early on simply to prevent a major disaster—to avoid erroneous communications, unexpected interpretations, or unintended meanings in an ad, particularly in diverse or global markets? a. A communication test b. A recall test c. A normative test d. A subliminal test 98. What is account planning? In what three ways does it differ from traditional advertising research?

99. What are the three broad forms of advertising research? Briefly describe each form, as well as when and how it is used. List the methods and techniques related to each.

100. When should a marketer use secondary data? What are the advantages of using such data and what cautions should be taken? Name and briefly describe the four broad areas that offer secondary data used by today’s marketers.

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Chap 07_8e 101. What is a recall test? How is it conducted, and how are its respondents measured and labeled? What is a recognition test? How is it conducted, and why does it usually produce a higher percentage of positive answers?

102. Briefly trace the reasons for the rise of research—specifically, advertising and brand promotion research—after World War II. Why did agencies create large research departments? How did universities get involved? How did consumers feel about research? When was research at its height of popularity, and when did things change?

Provide just a brief sketch of these issues.

103. Apple seems to know how to spot or keep up with trends in consumer technology. What is trendspotting and why is it important in advertising and IBP as related to (a) consumer insights and (b) design thinking?

104. One of your advertising agency’s clients has asked for a description of how an attitude study is performed on a television commercial in a theater test setting. Describe this process in general terms. (It is not necessary to describe the measurement scale.) In your answer, include a summary of the reasons why you would do such a test and the advantages and disadvantages of this method of pretesting ads.

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Chap 07_8e Answer Key 1. True 2. True 3. True 4. True 5. True 6. False 7. True 8. True 9. True 10. True 11. True 12. True 13. True 14. False 15. False 16. True 17. True 18. True 19. False 20. True 21. True 22. False 23. True 24. True 25. True 26. True

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Chap 07_8e 27. True 28. True 29. True 30. True 31. True 32. a 33. b 34. b 35. c 36. b 37. d 38. b 39. a 40. b 41. c 42. c 43. b 44. a 45. c 46. b 47. b 48. d 49. c 50. a 51. c 52. c 53. d 54. c Copyright Cengage Learning. Powered by Cognero.

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Chap 07_8e 55. a 56. d 57. c 58. b 59. d 60. d 61. d 62. a 63. a 64. b 65. c 66. a 67. d 68. c 69. b 70. d 71. b 72. a 73. b 74. b 75. a 76. b 77. b 78. c 79. c 80. c 81. a 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 07_8e 83. d 84. a 85. d 86. a 87. a 88. a 89. d 90. c 91. d 92. d 93. b 94. c 95. b 96. a 97. a 98. Account planning differs from traditional forms of marketing research in several ways.

First, agencies using this system assign an account planner to work closely with an account executive and gather needed data for a particular client’s business—an ad, campaign, or entire IBP effort. Unlike a research department with its occasional input on any given project, the account planner stays with the project from beginning to end.

Second, this system puts research into a different but more prominent role. As researchers, account planners are more actively involved throughout the entire process, though they often make a big push up front, tending to do more developmental research and less evaluative research.

Third, these researchers do more qualitative and natural research than traditional research departments.

In some ways, appointing an account planner has also been used as a sly method for downsizing or totally eliminating a costly full-time research department.

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Chap 07_8e 99. The three broad forms of advertising research are developmental advertising and promotion research (used before ads are made), copy research (used as ads are being finished), and results-oriented research (used after ads are launched and running). Developmental advertising research (also called consumer insight) attempts to generate ideas and create effective messages that will reach the target audience. It helps creatives and account teams to understand this audience—their identity, their history, their perceptions of needs and wants, and their expectations regarding product use. It provides this information while they are actually visualizing and drafting ads, improving on early versions, and imagining final creations. Since this research takes place early in the process, it influences the way the ads, promotions, forms of branded entertainment, or entire IBP campaigns are shaped before a lot of mistakes are made and a lot of money is spent. This is why it is often considered the most valuable kind of advertising research. The types of developmental research include design thinking, concept testing, audience profiling, focus groups, and projective techniques (dialogue balloons, story construction, picture and sentence completion, ZMET), and field work. Copy research acts as a report card that evaluates the actual text or design of the ads, finished or unfinished. Its name comes from the original focus on the copy, though today it also involves visuals. It can provide valid data, but asking the wrong questions can lead to faulty ratings, especially when pressured to supply the client with numbers—usually normative test scores, which rate the ad based on those of competitors. Though many ads defy measurement, having a good score at least says that they “test well.” Creatives tend to hate arbitrary scores that compare their unique productions against “average” ads, while account execs tend to demand them because the client wants them. So copy research is often the main source of tension in an agency. The types of copy research include communication tests, thought listings or cognitive response analyses, recall tests, recognition tests, implicit memory measures, surveys, attitude studies, resonance tests, frame-by-frame tests, and eye- tracking systems.

Results-oriented research is conducted to see whether the ads out there are working. This can generate useful information, but the timing is the problem—the ad is already running, so the data is provided after the fact, after much time and money has been spent on producing and finalizing the ad and paying for media space. The types include tracking studies, inquiry/direct response measurements, sales estimates, or single-source data.

100. Secondary data should be obtained before an advertiser begins primary research.

Secondary data offer a low-cost and speedy method for gaining information about consumers’ lives and can lead to useful consumer insights. However, the data must be scrutinized for currency, the appropriateness of the measurement units for the marketer’s particular situation, the qualifications of the data collection organization, any special interests associated with the data generation effort, and, most importantly, relevance and meaning regarding products and brands.

Data can be found through several broad channels: Internal company sources (annual reports, marketing plans, sales summaries, warranty cards, consumer letters, etc.) are usually the first places to look. Government sources (massive amounts of data on population, housing, transportation, recreation, and spending) Start with the U.S. Census Bureau, including its Census of Population and Housing (published every 10 years) and Current Population Survey (published annually) for the Bureau of Labor Statistics.

Additionally, the National Archives and Records Administration offer a wide range of data on American culture. Global information can be found through Eurobarometer and the International Social Survey Program.

Commercial sources specialize in geographic data-gathering, often at the household, neighborhood, or zip code level, as offered by such firms as PRIZM and the Pew Center.

Internet sources have revolutionized developmental research, particularly for smaller firms and agencies. Common search engines allow access to enormous amounts of data, and human search costs have been slashed. Web-based interest groups, online communities, and social networking sites can be utilized. Advertisers can gain incredibly relevant data at virtually no cost if they are careful in their searches, though specialized engines can also be purchased.

Additionally, the Web can be mined (through the relatively new practice of netnography) for answers to specific questions, to analyze chatter about products or competitors (brand-talk) by searching key words, or to conduct online surveys.

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Chap 07_8e 101. Recall tests ask respondents what ads they remember having seen in a given vehicle, then ask for data about specific message content they remember. These tests are the most commonly employed, but the most controversial, since they are based on the idea that the ads that are most remembered are the ones that work best. Since they do not provide an ad as an example, recall tests require a great deal of actual memory. They are used the most in evaluating television commercials. The day-after- recall procedure involves phoning respondents after viewing the ad, prompting them based on their responses, and recording and transcribing their answers. Each individual may demonstrate one of two levels of recall: unaided (needing no prompting to remember the commercial and brand name) or aided (after prompting with the mention of the brand name). Aided recall can be further subdivided into two categories—claim recall (percent of respondents who claim they saw the ad), and related recall (percent who accurately relate elements of the ad).

Recognition tests do provide a particular advertisement to evaluate. They show respondents an ad and ask if it looks familiar, or if they have seen it before. These tests require less actual memory, and have a higher percentage of positive answers than recall tests because the ad is in front of respondents and they are merely asked if they remember having seen it in a given vehicle at a previous time. They are used more often to evaluate print advertising.

The big advantage is that firms can compare recognition scores to those of ads in the past. They are limited in that they often measure little more than exposure, often overestimating true effectiveness because respondents only need to answer that yes, they have seen the ad, even if they haven’t.

A drawback of both types of test is that there is little evidence to prove that higher recall or recognition scores actually relate to higher sales.

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Chap 07_8e 102. After World War II, American business had great faith in what science could do, while at the same time American consumers felt an underlying concern about its manipulation for evil ends rather than for the public good.

As for the industry, the 1950s was the heyday of marketing research. Some companies had already had research specialists for a hundred years, but now even the average firm felt the need to create an expansive research department for three basic reasons—the popularity of anything related to “science;” the birth of research departments at other agencies; and the real need to understand how ads worked. An economic boom, a focus on consumption, and a need to understand persuasion allowed agencies the luxury of demanding more psychological research, more motivational theories, and more hidden meanings. Research became legitimatized and respected in the industry.

As for universities, they embraced science and experimentation as the only way to understand persuasion, forming advertising departments and teaching courses during this time. And they began to turn out persuasion “experts” trained to advise the creatives on Madison Avenue.

For consumers, things were different. On the surface there was a public adoration for all things scientific and technological—even reflected in books, plays, and movies— but also a focus on repressed subconscious and Freudian analysis. World War II propaganda had proven that the “science of persuasion” existed and could be exploited. There was real concern about mind-control techniques, subliminal methods, and hidden forms of mass persuasion that could now be used by Madison Avenue. Consumers were scared by the Cold War, the advancement of communism, the very real possibility of nuclear attack. Advertisers took advantage of these fears, a lesson that still applies and still influences many forms of promotion today. If consumers feel an underlying anxiety or fear, advertisers will use that anxiety or fear to sell products.

By the 1980s, agencies began to voice their mistrust in these long-held research methods. Too often, research had asked the wrong questions, used inappropriate methods, or misinterpreted findings.

In the past decade, many agencies have considered research to be a luxury or an unnecessary element. Many have closed their departments, replacing them with account planning departments or contracting out research services only when needed. And now they are looking for qualitative information based on real-life use of the product, not quantitative data based on columns of numbers. Overall, quantitative research is seen as irrelevant or only rarely needed. And with the explosion of nontraditional sources of promotion and new forms of media, it is becoming even more rare.

103. Trendspotting is identifying new trends in the marketplace. For instance, J. Walter Thompson has a director of trend forecasting to lead its trendspotting research. Some trends identified there have been artificial intelligence in art, augmented reality, and retail naturalism. It is important for advertising, namely account planners or advertising researchers, as well as scholars who are working in related industries. The importance of trendspotting hinges on understanding and finding key consumer insights, or critical information about the context or situation. Also, these collectively help marketers think big, such as with design thinking. This also can be addressed with points made in 76: Where is research going?

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Chap 07_8e 104. The typical attitude study uses a before-and-after-ad-exposure design. People from the target market are recruited, and their pre-exposure attitudes toward the advertised brand as well as competitors' brands are taken. Then they are exposed to the test ad, along with some dummy ads. Following this exposure, their attitudes are measured again. The goal, of course, is to gauge the potential of specific versions of the ad to change brand attitudes before selecting the one most likely to do so for actual airing. The reliability of these procedures is fairly high. However, the meaning of the scores in terms of predicting changed brand perceptions is an issue, because the test is based on one or two advertising exposures in an unnatural viewing environment. Many advertisers believe that commercials don't even register their impact until after three or four exposures.

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Chap 08_8e Indicate whether the statement is true or false.

1. An adver sing plan is important. a. True b. False 2. Two important elements to the execu on of an adver sing plan are determining the copy strategy and devising a media plan. a. True b. False 3. Every precau on should be taken to avoid having to radically alter a budget a er it is submi ed. a. True b. False 4. Ethnocentrism is the tendency to view and value things from the perspec ve of one’s own culture. a. True b. False 5. Companies use adver sing objec ves because it is important to lay the framework for the subsequent tasks in an adver sing plan. a. True b. False 6. The compe on’s strengths, weaknesses, tendencies, and any threats they pose are included in the compe tor analysis. a. True b. False 7. There is only one way to measure success in adver sing and integrated brand promo on. a. True b. False 8. An important sec on in an adver sing plan is a budge ng or informa on sec on, which states the cost of implementing this plan. a. True b. False 9. A historical background is a key element in an adver sing plan, one that should include the history of all main players, the industry, the brand, and the corporate culture. a. True b. False

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Chap 08_8e 10. One of the most challenging tasks is budge ng the funds for an adver sing and IBP effort, but response models can help professionals make more decisions based on data. a. True b. False 11. The self‐reference criterion is the unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. a. True b. False 12. The various forms of brand promo on that will supplement the adver sing effort each need to be spelled out in the ad plan. a. True b. False 13. Share of voice, or share of market, is a method that bases an ad budget on whatever significant compe tors are spending. a. True b. False 14. Viewing adver sing strictly from a communica ons perspec ve opens marketers to a broader range of adver sing strategies. a. True b. False 15. Some advocate sales objec ves while others push communica ons objec ves, although both can be done. a. True b. False 16. Many marketers rely heavily on the exper se of an adver sing agency. a. True b. False 17. Objec ves for adver sing should be measurable, and this is noted in evaluation components of an ad plan. a. True b. False 18. It is important for an adver ser and agency to align around evalua on criteria upfront. a. True b. False 19. An adver sing plan is the same thing as a marke ng plan. a. True b. False

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Chap 08_8e 20. A percentage‐of‐sales approach to budge ng calculates the amount spent by compe tors and market share. a. True b. False 21. Since adver sing is only one variable in an en re marke ng mix, it is solely responsible for selling the product. a. True b. False 22. ​ a. True b. False 23. The situa on analysis of an adver sing plan includes historical context but does not consider an evalua on of the industry, the market, and the compe on. a. True b. False 24. It may be hard or impossible to get accurate figures on compe tors’ spending. a. True b. False 25. Evalua on is a crucial component in an ad plan. a. True b. False 26. Using response models to aid in the budge ng process has been a widespread prac ce among larger firms for many years. a. True b. False 27. An adver sing response func on is a mathema cal rela onship that associates dollars spent on adver sing and sales generated. a. True b. False 28. An agency’s role is to translate the current market and marke ng status of a firm and its adver sing objec ves into adver sing strategy and, ul mately, finished adver sements and IBP materials. a. True b. False

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Chap 08_8e 29. The agency’s crucial role is to translate the current market and marke ng status of a firm and its adver sing objec ves into adver sing strategy and, ul mately, finished adver sements and IBP materials. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

30. (Scenario 8‐2) Like many firms, Amazon has refined its priori es over the years. Many firms begin by se ng as their adver sing objec ve something that is o en disputed by communica ons‐oriented marketers. They choose as their primary adver sing objec ve. a. s mula ng trial use b. boos ng sales c. establishing brand recall d. iden fying purchase intent Scenario 8‐1 You are owner of a 19‐person adver sing agency in a major market. You've been invited to pitch the Girl Powers account, the largest female‐only fitness center chain in the region, one that could quickly grow into a na onal franchise. If you land the account, it will be your biggest revenue producer by far. You'll be able to staff up, move to a nicer space, and buy some decent office furniture. It also will put you, personally, in a posi on to make money by selling out to a larger agency someday. Considering the importance of the pitch to Girl Powers execs, you have decided to spearhead the pitch yourself.

31. (Scenario 8‐1) You begin with crucial informa on that Girl Powers execs need to know, even if they remember nothing else; this overview is in the ________ sec on. a. situa on analysis b. execu on c. strategy d. execu ve summary 32. The strategy sec on of an adver sing plan is the mechanism that states: a. why the adver sing is needed for this product or service. b. what goals need to be reached. c. how things will be done so that objec ves are achieved. d. who will handle various promo onal tasks.

33. (Scenario 8‐4) American Express marketers say they do not use the ______ adver sing budge ng method, because if sales begin to decrease in this segment, so will their budget. a. share‐of‐market b. percentage‐of‐sales c. share‐of‐voice d. objec ve‐and‐task Copyright Cengage Learning. Powered by Cognero.

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Chap 08_8e Scenario 8‐5 Helene Cur s is preparing to introduce a new brand of all‐natural‐ingredient shampoo into the market. In test marke ng, many consumers liked the product, but their comments indicated that it is different enough from exis ng brands that significant promo on and informa on will be needed to convince them to switch from their current brands. Helene Cur s has always used an objec ve‐and‐task approach to develop adver sing budgets. Due to these research results, the firm must now do a detailed build‐up analysis.

34. (Scenario 8‐5) Helene Cur s has once again decided to use objec ve‐and‐task budge ng to set the adver sing expenditures. This is the only budge ng method that focuses specifically on adver sing spending: a. as leading to adver sing sales. b. as calculated by a mathema cal formula. c. as determined by percentage of gross profit. d. as related to adver sing objec ves.

Scenario 8‐2 Following the announcement that the world's largest e‐tailer, Amazon.com, h a d made a profit for the first me since it started business in the early 1990s, the company saw more than 90 percent of its market value disappear as part of the dot‐com collapse. It is ques onable whether or not Amazon figured out a profitable business model a er changing its tune several mes over those early years. Then it began circling back somewhat to an earlier focus on becoming the Walmart of the Internet. It said it wanted to sell huge volumes of merchandise cheaply, and in the process eke out enough of a profit to sa sfy Wall Street.

Although investors had to wait some me for the e‐tailer to work out the kinks, and it's uncertain how much longer they'll remain pa ent, Amazon's mainstay retail business may see further improvements as it grows.

As we all have now witnessed, unlike brick‐and‐mortar retailers who must build new stores, stock them, and hire people to staff them, Amazon has been able to open new stores with minimal addi onal cost. Some years ago, it reported turning over its inventory 17 mes a year—close to double that of tradi onal retailers at the me. And on average, it reported having go en paid 32 days before it must pay its suppliers—in essence, providing millions of dollars in cash flow.

35. (Scenario 8‐2) Amazon.com began by facing a myriad of problems since its incep on, 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 ini ally had a difficult me making a profit, and over me, a few began to face new compe on. The issue as to who will supply online consumers has been con nually evolving and changing since then. This type of informa on would most likely be noted in the sec on of an ad plan. a. historical context b. purchase intent c. market analysis d. budge ng

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Chap 08_8e 36. The ways in which the media objec ves will be accomplished are described in the a. copy strategy sec on. b. build‐up analysis. c. objec ve‐and‐task method. d. media plan.

37. Costs associated with adver sing that are not directly accounted for are prominent examples of . a. principal finances b. ancillary costs c. major finances d. primary costs 38. In an adver sing plan, the _______ is the sec on in which the client and the agency lay out the key factors that define the current condi ons and then explain the importance of each factor. a. execu on b. strategy c. situa on analysis d. evalua on 39. A food company researches perceived healthy choices. The target markets that are ul mately chosen based on this research should be defined in the _____ sec on of the ad plan. a. situa onal analysis b. compe tor analysis c. execu ve summary d. secondary media 40. What part of an overall situa on analysis relates to copy strategy, a media plan, and integrated brand promo on? a. historical context b. industry analysis c. compe tor analysis d. execu on 41. (Scenario 8‐4) The marketers are keenly aware that many budge ng methods fail to address the objec ves originally set and relate these to the dollars to be spent. Which budge ng technique is American Express ul mately most likely to use, based on this awareness and the informa on in this scenario? a. Share‐of‐market approach b. Objec ve‐and‐task approach c. Percentage‐of‐sales approach d. Share‐of‐voice approach

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Chap 08_8e 42. (Scenario 8‐1) The folks at Girl Powers ini ally consider using an adver sing budge ng method that iden fies a mathema cal rela onship associa ng ad dollars spent with sales generated. This would be the: a. product reactance approach. b. ethnocentric method. c. adver sing response func on. d. share‐of‐market approach.

43. (Scenario 8‐5) Which element of the build‐up analysis will iden fy the demographic and geographic exposure that the adver sing for the shampoo hopes to achieve? a. Frequency b. Media c. Produc on d. Reach 44. (Scenario 8‐1) In the past, Girl Powers has set sales objec ves for its adver sing. You feel that this doesn't take into account the overall complexi es presented in the analysis. Therefore, you are recommending combining sales objec ves with: a. ethnocentrism. b. marke ng incen ves. c. communica ons objec ves. d. self‐reference criteria.

45. Within the adver sing 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 objec ves to be pursued 46. (Scenario 8‐3) Your goals are very important at this stage, and you want to avoid budge ng methods that neglect to consider goals. This means that you can cross off one approach that is notorious for failing to relate adver sing dollars to adver sing objec ves, 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. objec ve‐and‐task approach 47. Which is a communica on objec ve? a. sales b. revenue c. brand awareness d. media Copyright Cengage Learning. Powered by Cognero.

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Chap 08_8e 48. In the introduc on of an adver sing plan, the _____ comes before the overview. a. situa on analysis b. execu ve summary c. strategy d. objec ves 49. (Scenario 8‐4) Within the ______ por on of its adver sing plan, American Express suggests that the most important outcome of the campaign will be for Visa customers to start switching to American Express in this market segment. a. strategy b. execu on c. situa on analysis d. objec ves 50. The percentage‐of‐sales approach to adver sing budge ng: a. is best used during mes of declining sales. b. is difficult to understand and opera onalize. c. may lead to overspending or underspending. d. relates adver sing dollars to adver sing objec ves.

51. The media plan specifies: a. the objec ves the adver ser intends to accomplish. b. exactly what strategy is behind the placement of ads. c. the predic on of profits based on new adver sing. d. the analysis of the market, industry, and compe

on.

52. A food manufacturer surveys consumers, asking them if they plan on buying dinner 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 53. _______ can be increased with in‐package coupons and rebates on ini al purchase. a. Repeat purchase b. Informa on‐density c. Brand‐switching d. Visual imagery

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Chap 08_8e 54. (Scenario 8‐2) When dealing with its adver sing agency, Amazon wants a strategy that maximizes media expenditures to target the appropriate markets. It is Amazon’s primary responsibility to bring forth a well‐ ar culated statement of the brand's , a key concept in reaching and informing the customer through promo on. a. analysis b. awareness c. compe

on

d. value 55. (Scenario 8‐5) The adver sing agency for Helene Cur s is in the process of doing a build‐up analysis. This means it is: a. isola ng 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 iden fied in the adver sing plan for the shampoo. d. determining the approximate me frame that will be necessary to meet all adver sing objec ves in promo ng the shampoo.

56. (Scenario 8‐1) One of the main tasks will be to work with the marke ng director at Girl Powers to determine exactly what she wants from its new adver sing campaign. Which elements iden fy the specific goals that you will ask her to provide in concrete terms? a. strategies b. tac cs c. objec ves d. execu ons 57. The last element to appear in an adver sing plan is the a. execu ve summary b. evalua on c. history d. compe tor analysis 58. (Scenario 8‐2) In the early days of Internet shopping, people were skep cal about the idea of buying things over the computer, largely due to their worries about privacy issues combined with their habitual pa erns of purchasing at retail outlets. Some concerns remain today. But many years a er 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 obviously there, and this has ins lled 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 sec on of the adver sing plan. a. budget analysis b. market analysis c. industry analysis d. compe tor analysis Copyright Cengage Learning. Powered by Cognero.

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Chap 08_8e Scenario 8‐4 American Express is dissa sfied with the degree of penetra on of its Gold Rewards Plus card in the U.S. market. Marke ng managers at American Express feel that the firm needs to increase adver sing to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetra on in this sector, the budget should be based on communica ons objec ves aimed at certain target markets.

59. (Scenario 8‐4) Within various sec ons of the _______ por on of its adver sing plan, American Express explains how and why Visa has been more successful at penetra ng the small business market because of lower fees. a. evalua on b. execu on c. strategy d. situa on analysis 60. In a ______, the objec ves state what the adver ser intends to accomplish in headlines, subheads, and text, while the methods describe how the objec ves will be achieved. a. media plan b. budgetary plan c. copy strategy d. build‐up analysis 61. Combining sales objec ves with communica ons objec ves: a. will almost certainly spell disaster for an adver sing plan. b. may seem effec ve on paper but may confuse consumers during the campaign. c. is the only way to iden fy truly quan ta ve benchmarks for the campaign. d. can be an excellent way to develop an adver sing campaign.

62. (Scenario 8‐4) American Express has decided to do a specific type of analysis that focuses on reach, frequency, me frame, produc on costs, media expenditures, and other specific elements. These factors are always included in a(n) analysis. a. market b. situa on c. build‐up d. industry 63. (Scenario 8‐1) It is ul mately decided that the ad budget will base spending on what needs to be accomplished from a communica ons standpoint. This would be the: a. objec ve‐and‐task approach. b. percentage‐of‐sales approach. c. share‐of‐voice approach. d. response model approach.

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Chap 08_8e 64. In an adver sing plan, strategy: a. should be explained in the industry analysis. b. can be listed as an objec ve. c. should be a clear and concise ar cula on of how the plan will achieve its objec ves. d. belongs in the evalua on sec on.

65. For a brand, the mechanism by which something is to be done or the means to an end is the . a. compe tor b. branding strategy c. demand d. objec ve 66. ACEO announces that sales went up significantly last year, and themarke ng director is happy because this means her budget will also go up. This indicates that the firm is using the ________to set the adver sing budget. a. objec ve‐and‐sales approach b. share‐of‐market approach c. percentage‐of‐sales approach d. adver sing response func on 67. In theory, of the major op ons for adver sing objec ves, _______ asks the least of consumers. a. trial usage b. purchase c. repeat purchase d. brand awareness 68. Which of the following is a part of the situa onal analysis component of an adver sing plan? a. Execu ve summary b. Response models c. Historical context d. Copy strategy 69. In what areas do clients need help from an ad agency? a. Crea ng the product and se ng objec ves for manufacturing b. Integra ng the brand within the media and genera ng new ideas c. Defining the product’s supply chain and crea ng employee policy d. Crea ng the company budget and conduc ng risk management

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Chap 08_8e 70. (Scenario 8‐5) The build‐up analysis will also address costs not listed elsewhere, par cularly those associated with adver sing to the trade and doing specialized research. Which factor does this involve? a. Ancillary costs b. Produc on costs c. Media expenditures d. Promo onal costs 71. To determine the public’s knowledge of a product, a marketer may ask consumers to name five technology companies. Apple is the brand most o en listed first; this is considered to demonstrate: a. top‐of‐the‐mind awareness. b. purchase intent. c. ethnocentrism. d. market awareness.

72. Which are components of a situa on analysis? a. Projected industry growth, budge ng b. Adver sing spending by compe tors, execu on, objec ves c. Cultural context, historical context, industry analysis, market analysis, compe tor analysis d. Economic and regulatory restric ons, evalua on, strategy 73. What does the objec ves sec on of an adver sing plan do? a. Defines those who use the product b. Notes possible barriers and problems c. Es mates probable costs d. Iden fies concrete goals, quan ta ve benchmarks, measurement methods, success criteria, and me frame 74. In advertising, relying only on one’s own personal values, experiences, and backgrounds to make promo onal decisions refers to a concept called ___________ and can be bad for global adver sing. a. ethnocentrism b. purchase intent c. share of voice d. self‐reference criterion 75. What is the first step in implemen ng the objec ve‐and‐task approach? a. Iden fying last year’s sales b. Determining costs based on a build‐up analysis c. Comparing expenditures against industry benchmarks d. Calcula ng a marginal analysis

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Chap 08_8e 76. Which budge ng method monitors the amount spent by significant compe tors and then allocates an equal or propor onate amount as its adver sing dollars? a. Share‐of‐voice approach b. Objec ve‐and‐task approach c. Adver sing response func on d. Percentage‐of‐sales approach 77. The __________ is calculated to lead to a point where an optimal advertising expenditure results in an optimal sales level and, in turn, an optimal profit. a. objec ve‐and‐task method b. share‐of‐market method c. percentage‐of‐sales system d. response model 78. A canned soup manufacturer and its agency are nailing down the responsibili es of each side as they begin their planning effort. In a nutshell, the agency will: a. translate goals into strategies and create promo ons and finished ads for the product. b. decide how they should grade themselves. c. leave it up to the client to decide the adver sing plan. d. determine how long they will have to achieve the agreed on objec ves.

79. (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 adver sing, and innova ve promo ons, the op ons are almost unlimited. In this way, you are: a. se ng up account services. b. crea ng a media plan. c. devising a budge ng method. d. doing adver sing research.

80. Clients expect ______ from their investments in adver sing. a. rela vism b. magic c. nothing d. results

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Chap 08_8e 81. (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.

82. (Scenario 8‐3) You decide that as soon as you are financially able, you will hire an agency to put together an adver sing plan for you. Unfortunately, you realize that even if you do hire an agency, you will s ll have to provide the agency with statements regarding: a. the value proposi on and the marke ng mix. b. the budget recommenda on and the ad strategy. c. the compe

on and the media plan.

d. the ad design and ad placement.

83. (Scenario 8‐3) There is one thing you’d like to see as a result of your ad campaign—you want local residents not only to know your name, but also to think of it first when they need a hardware store. When you think of hardware, think of Springfield. Which concept defines this objec ve? a. top‐of‐mind awareness b. purchase intent c. trial usage d. repeat purchase 84. Which element is essen al to ar cula ng a well‐stated adver sing objec ve? a. A me frame b. A budget c. An overview d. An evalua on 85. (Scenario 8‐5) The number of exposures required to accomplish the adver sing objec ves for the shampoo, referred to as , will also be included in the build‐up analysis for Helene Cur s. a. execu on b. produc on c. frequency d. reach

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Chap 08_8e 86. The budge ng method that specifically relates spending to goals is the: a. share‐of‐market approach. b. percentage‐of‐sales approach. c. objec ve‐and‐task approach. d. share‐of‐voice approach.

87. Top‐of‐mind awareness means that when he says safety, she thinks of Volvo: a. first. b. rarely. c. somewhere on her list of brands. d. some later day when a friend buys one.

Scenario 8‐3 A er working as an account execu ve in an adver sing agency for 20 years, you've decided you want to own your own business. You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years. He sells you the store and its en re inventory, but with one warning—he wasn't much on paperwork, so there won't be a lot of records to be found. You buy the store and begin to create your ad plan.

88. (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 popula on, and the store’s target market and customer base. This will be a major hindrance in wri ng the sec ons of your situa on analysis. a. overview and execu ve summary b. industry analysis and historical context c. strategy and execu on d. historical context and market analysis 89. A shoe company would like men to at least buy their boots once and see how they like it. Which of the following is more likely to be the company’s objec ve? a. Purchase intent b. Trial usage c. Repeat purchase d. Build‐up purchase 90. One problem with marketers who rely on a share‐of‐voice budget plan is that they assume that: a. their compe on doesn’t know how to allocate its adver sing dollars. b. their sales figures should automa cally dictate their adver sing figures. c. they know how much compe tors are really spending. d. their ad is dis nct, unique, and superior among all others in the field.

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Chap 08_8e 91. Apple uses a wide array of op ons to create interest and communicate the value proposi on for its brands like the iPad and iPhone. Which of the following would NOT be included in Apple’s adver sing plan? a. Billboard ads b. Manufacturing schedule c. Product placement d. Promo onal events 92. Why is the objec ves sec on of an adver sing plan so important to an adver ser? Name at least three of the objec ves described in the text. For each objec ve, list one important considera on for adver sers.

93. You are the marke ng manager for an online merchandiser of a diverse line of casual sportswear, athle c clothing, and outerwear for both men and women. Write a brief memo to your adver sing agency. In the memo, explain why you'd like the agency to abandon its recommenda on for a share‐of‐market strategy in crea ng the budget. Give several reasons why this approach is unfavorable. Then explain why you want the agency to adopt an objec ve‐and‐ task method. Also, there are four main steps that must be taken to implement this approach a er adver sing objec ves are determined. List as many as you can. (It is not necessary to describe the steps in detail.)

94. Describe the essen al difference between an industry analysis and a market analysis. In what sec on of an ad plan are these typically included? What are the other considera ons for an adver ser that should be part of this sec on? Where does the compe tor analysis come in?

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Chap 08_8e 95. Many marketers would take the stance that communica ons objec ves are the only legi mate objec ves for adver sing a brand like Sweet Sunshine. They would argue that it is not reasonable to set sales objec ves for its adver sing effort when other variables in the mix might undermine the adver sing effort, or might be responsible for sales of Sweet Sunshine orange juice (or lack of sales) in the first place. In addi on, viewing adver sing as primarily a communica ons effort will allow the marketer to consider a broader range of ad strategies in promo ng the Sweet Sunshine brand. Overall, communica ons objec ves should create an awareness for the Sweet Sunshine brand, offer informa on about its features and benefits, and develop a favorable a tude toward the brand that may lead to consumer preference. These objec ves have certain advantages over sales objec ves—they consider a broader range of strategies, and they gain a greater apprecia on for the overall communica ons process.

But there is always the idea, even if it is in the background, that adver sing must sell. So the marketer may use both types, as long as certain criteria are met. Any objec ves that enable a firm to make intelligent decisions about resource alloca on—whether based on communica ons or sales—must be stated in an adver sing plan in terms specific to the organiza on. The objec ves must establish a quan ta ve benchmark, specify measurement methods and criteria for success, and iden fy a me frame for the desired results to occur.

96. A good adver sing plan is the result of combining the knowledge and talents of both the adver sing agency and the client. In heading up a team that is crea ng the marke ng plan for a large cosme cs firm, an account manager needs to make sure all goals are met and all responsibili es are assigned. For what issues does the client take primary responsibility? For what elements does the agency take primary responsibility?

97. Define these terms: brand awareness, top‐of‐the‐mind awareness, purchase intent, trial usage, repeat purchase, and brand switching. Choose two of these concepts and give real‐life examples.

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Chap 08_8e Answer Key 1. True 2. True 3. True 4. True 5. True 6. True 7. False 8. True 9. True 10. True 11. True 12. True 13. True 14. True 15. True 16. True 17. True 18. True 19. False 20. False 21. False 22. True 23. False 24. True 25. True 26. True

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Chap 08_8e 27. True 28. True 29. False 30. b 31. d 32. c 33. b 34. d 35. a 36. d 37. b 38. c 39. a 40. d 41. b 42. c 43. d 44. c 45. b 46. c 47. c 48. b 49. d 50. c 51. b 52. b 53. b 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 08_8e 55. c 56. c 57. b 58. b 59. d 60. c 61. d 62. c 63. a 64. c 65. b 66. c 67. d 68. c 69. b 70. a 71. a 72. c 73. d 74. d 75. b 76. a 77. d 78. a 79. b 80. d 81. d 82. a Copyright Cengage Learning. Powered by Cognero.

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Chap 08_8e 83. a 84. a 85. c 86. c 87. a 88. d 89. b 90. c 91. b 92. Adver sing objec ves iden fy the goals of the adver ser in concrete terms. Without them, there would be no solid direc on for the campaign.

Brand awareness is a popular adver sing objec ve. Crea ng or maintaining brand awareness is an indicator of consumer knowledge about the existence of the brand and the ease with which that knowledge can be retrieved from memory. Ease of retrieval from memory is important because for many consumer goods or services, it is predic ve of market share.

A tudes and beliefs can also be addressed in an adver sing objec ve. This usually involves crea ng or changing a tudes and beliefs about the product. However, while a tudes may give a good indica on of inten ons and feelings about certain products, they do not necessarily predict actual buying behavior.

Purchase intent is another popular criterion in objec ve se ng. The appeal of influencing purchase intent is that, compared to consumer a tudes, consumer inten ons are closer to actual behavior, and thus closer to the desired sale.

Trial usage is an indicator of actual behavior and is commonly cited as an adver sing objec ve. In the case of new products, s mula ng trial use is cri cally important. Repeat purchase is aimed at the percentage of consumers who try a new product and then buy it a second me. The odds of long‐term product success go way up when this percentage is high.

Brand switching is a challenging adver sing objec ve. Convincing consumers to permanently switch brands is a noble goal but it is not easy to accomplish—it can take a lot of me, effort, crea vity, and money, and even then it may not be a successful venture.

Sales is some mes listed as an adver sing objec ve, but it can be a controversial one. The idea that adver sements should directly increase product sales is o en disputed by marketers, since adver sing is only one element in a complex market mix, and many other factors can affect sales.

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Chap 08_8e 93. Share‐of‐market strategy. In the memo, you will want to explain that you can run into several problems associated with the share‐of‐market method of se ng adver sing objec ves. First, it may be difficult to gain access to precise informa on about your compe tors' expenditures. Second, there is no reason to believe that your compe tors are spending their money wisely, or in a way even remotely related to what your firm wants to accomplish. Third, a likely outcome of budge ng in this fashion is that your firm will make li le headway over the compe on and but will simply maintain the status quo. Fourth, the flaw in logic behind this method is the presump on that every adver sing effort has the same goals, is of the same quality, and will have the same effect from a crea ve execu on standpoint.

Objec ve‐and‐task strategy. Now your memo will address the preferred alterna ve. The objec ve‐and‐task approach will allow you to focus on the rela onship between your spending and your adver sing objec ves. The budget is formulated by iden fying the specific tasks necessary to achieve different aspects of the objec ves. The four major steps that must be taken a er adver sing objec ves have been set are (1) using a build‐up analysis to determine costs; (2) comparing the costs against industry and corporate benchmarks; (3) reconciling and modifying the budget; and (4) determining the me frame for payout.

94. An industry analysis focuses on developments and trends within an industry and on any other factors that may make a difference in how an adver ser proceeds with an adver sing plan. An industry analysis should enumerate and discuss the most important aspects of a given industry, or the supply side of the supply‐demand equa on.

A market analysis is the flip side of an industry analysis. It describes the demand side of the supply‐demand equa on. An adver ser examines the factors that drive and determine the market of consumers for the firm's product or service. First, the adver ser needs to iden fy and define that market.

An industry analysis and a market analysis are both part of a situa on analysis. Adver sers should also include the historical context and a compe tor analysis as part of this situa on analysis.

A compe tor analysis, conducted a er these ini al analyses are completed, iden fies the main compe tors, their strengths and weaknesses, and any serious threats that they represent.

95.

96. The client’s role is to produce all necessary informa on on the firm, the brand, the product, and the market. It should iden fy the firm's basis for offering value to customers. The client should also clearly iden fy the external environment and the opportuni es and challenges that can be addressed with adver sing. In addi on, it should include a well‐ar culated statement of the brand's compe ve posi on and the marke ng mix strategies designed to gain and sustain compe ve advantage.

The agency's role is to use all that informa on and its own exper se to create finished ads. It should consider the condi ons in the current market plus the firm’s marke ng status and ad objec ves, and then translate this informa on into promo onal strategies and, ul mately, into finished adver sements. An agency best serves its client by taking charge of the prepara on and placement stages. The agency needs to hammer out message strategies and tac cs for the adver sing effort and for the effec ve design and placement of ads—overall, it needs to manage the en re IBP process.

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Chap 08_8e 97. Brand awareness is an indicator of consumer knowledge about the existence of a brand and the ease with which that knowledge can be retrieved from the consumer’s memory.

Top‐of‐the‐mind awareness is the condi on that occurs when one brand comes up first in the consumer’s list of preferred or remembered brands.

Purchase intent is the expression by the consumer to buy the brand at some me in the future, presumably indica ng that the consumer is closer to actual behavior than merely having a posi ve a tude toward the brand.

Trial usage is the actual behavior of a consumer in trying a new brand and hoping that it will live up to the expecta ons created by the adver sing. This concept is commonly used as an adver sing objec ve.

Repeat purchase is the instance in which a consumer tries a new product and then buys it a second me (also called conversion). It is considered a great milestone toward gaining new regular users.

Brand switching is the instance when a consumer discards one brand for another. It is a noble goal for adver sers, but reaching it can be a long and arduous task.

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Chap 09_8e Indicate whether the statement is true or false.

1. The usefulness of crea vity in adver sing can be las ng at mes. a. True b. False 2. Good ideas must come from the managers or the clients. a. True b. False 3. According to the text, crea vity is a form of intelligence, maybe the best form of intelligence (par cularly for the field of adver sing). a. True b. False 4. Conflict between management and crea ves in an organiza on is seen at mes. a. True b. False 5. Crea vity is usually seen as a gi . a. True b. False 6. Crea vity is subjec ve. a. True b. False 7. According to the text, crea vity can be enhanced with effort. a. True b. False 8. Gardner's research indicates that a high level of crea vity is ed to less emo onal stability. a. True b. False 9. As a social process, adver sing is marked by the struggles for control and power that occur within departments, between departments, and between the agency and its clients on a daily basis. a. True b. False 10. Playing with Lego blocks can influence adults’ crea vity. a. True b. False

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Chap 09_8e 11. The thought processes of crea ve people are less orderly and logical than those of others. a. True b. False 12. You can enhance your latent creative abilities. a. True b. False 13. The crea ve brief focuses on the media plan. a. True b. False 14. Google is known for using numerous crea ve adapta ons of its logo. a. True b. False 15. To be crea ve, one should have the ability to consider and hold together seemingly inconsistent elements and forces, making new connec ons. a. True b. False 16. A crea ve person can be “the synthesizer,” as Lee Clow (the visionary behind the iconic Absolut ads) was called. a. True b. False 17. Knowing how to brainstorm is important in adver sing and integrated brand promo on careers. a. True b. False 18. There can be conflicts and tensions in the crea ve/management interface. a. True b. False 19. Lee Clow is the crea ve mind behind the iconic Absolut ads, many of which you see featured in the chapter for its aesthe c with the unique bo le shape. a. True b. False 20. Agencies can hire out research services. a. True b. False 21. Great brands don’t have emo onal connec ons with consumers. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 09_8e 22. Preparing and execu ng a breakthrough IBP campaign is people‐intensive; it hinges on crea ve work and business acumen alike. a. True b. False 23. According to Gardner, crea ve people have much less interest in playing by the rules, ac ng nice, and being socially acceptable than more ordinary people. a. True b. False 24. Account execu ves are the liaison between the agency and the client. a. True b. False 25. The most crea ve adver sing results from teamwork rather than individual effort; teamwork generates synergy in adver sing. a. True b. False 26. There have been many unusual adver sing ideas that at first seemed a bit weird but actually have become legendary, such as the talking Chihuahua from Taco Bell. a. True b. False 27. Crea ves and account managers in ad agencies typically have different goals for a par cular adver sement or campaign, and these goals may conflict. a. True b. False 28. Robert Sternberg has found that to be more crea ve, you need to spend me gaining knowledge but also avoid ge ng mired in so much knowledge that crea vity is s fled. a. True b. False 29. Crea vity in ads is not required in order to break through ad clu er. a. True b. False 30. Execu ng an IBP campaign is like performing as a symphony orchestra—many individuals are simultaneously making unique contribu ons to create a final piece. a. True b. False

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Chap 09_8e 31. Successful brands do not have emo onal connec ons with consumers. a. True b. False 32. Crea vity is viewed in the business world as a posi ve quality even though crea ve people can be hard to work with. a. True b. False 33. The crea ve brief sets up the goal for any adver sing effort in a way that gets everyone moving in the same direc on. a. True b. False 34. In his analysis of some of the most crea ve people of the 20th century, Gardner found that they o en had troubled personal lives and were significantly childlike. a. True b. False 35. Robert Sternberg’s sugges ons for boos ng crea vity stress that you should learn to redefine problems to see them differently from the way other people see them. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

36. Members of all the following teams are part of the IBP account team, EXCEPT: a. accoun ng. b. public rela ons. c. direct marke ng. d. the client.

37. Teams are able to liberate decision making when members: a. all think alike and agree with one another. b. allow the leader to make all the decisions. c. trust one another and feel it’s safe to contribute. d. just make sugges ons but leave decisions to the client.

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Chap 09_8e 38. (Scenario 9‐1) Margolis has listened to all the explana ons for the theme, and understands the crea ve ideas behind it, but he s ll isn’t sure that this ad will sell shoes. Which department at Excellent is most likely to be the source of its conflict with its client? a. Its media planning department b. Its accounts services department c. Its crea ve department d. Its produc on department 39. You are most likely to be crea ve when: you avoid ambiguity. a. you are in your comfort zone. b. doing something you love. c. you avoid cri quing your own ideas. d. you avoid ambiguity.

40. All members of an account team are also: a. in media b. assigned to the crea ve department. c. team leaders for their own groups of specialists. d. outsourced.

41. A good guideline to follow when trying to improve brainstorming within a team is to: a. foster an atmosphere of tranquility. b. insulate the team from outside influences to help them focus on the task at hand. c. add more diversity to the group. d. encourage interpersonal abrasion.

42. Which of the following is a characteris c of a crea ve brief? a. It replaces teamwork with individuality. b. It sets primary goals for the client. c. It allows room for crea vity. d. It results from brainstorming in the crea ve department.

43. Leadership over crea ve teams entails : a. excusing shor alls in team performance when communica ng with the client. b. emphasizing individual gains. c. contribu ng ideas without domina ng the group. d. sugges ng a list of adver sing cases.

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Chap 09_8e 44. What concept refers to the unique preference that each person has for thinking and solving problems? a. Interpersonal abrasion b. Crea vity framework c. Brainstorming d. Cogni ve style 45. Which of the following best defines brainstorming? a. It is an agreement on a concept for the good of a team's objec ves. b. It is an ongoing clash of ideas and decisions that results in chaos. c. It is a different cogni ve style for resolving team conflicts. d. It is an organized approach to genera ng ideas.

46. Which of the following is a problem with top crea ve geniuses, as iden fied by Gardner? a. The thinker starts to dislike being an outsider. b. The thinker is self‐effacing and gives up personal goals in favor of collec ve goals. c. The thinker remains charming even when his or her ambi ons are not met. d. They can have some emo onal instability.

47. Who is the liaison between the two main par es involved in promo on: the client and the agency? a. The agency owner b. The research department c. The crea ve director d. The account execu ve 48. Crea vity reflects many things, such as: a. following social norms. b. adop ng structured thinking. c. retaining childlike thinking. d. conforming to everyday logic.

49. What is the func on of the account execu ve in an adver sing agency? a. To assess the effec veness of adver sing communica on developed by the agency b. To execute the adver sing concepts developed by the crea ves c. To ideate about possible crea ve concepts for adver sements d. To nego ate with clients and convey client instruc ons to the agency

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Chap 09_8e 50. In their book, The Wisdom of Teams, Katzenbach and Smith offered a number of insights about teams.

Which of the following can be inferred from these insights? a. Teams focus on process rather than results. b. Teams operate on mutual synergy. c. Teams always look out for a number one. d. Teams restrict individual decision making.

51. Which individuals did Howard Gardner highlight in his book, Crea ng Minds, in his pursuit of the most crea ve people of the past century? a. JFK, Einstein, Twain, Roosevelt, Gandhi, Disney, and Vonnegut b. George Washington, Bernstein, Van Gogh, Nureyev, Frost, Hemingway, and Einstein c. Bradbury, Ellington, Churchill, Wright, and Edison d. Freud, Einstein, Picasso, Stravinsky, Eliot, Graham, and Gandhi

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Chap 09_8e Scenario 9‐2 The Op ma Bike Company manufactures broad‐ re, three‐wheeled, and two‐wheeled bicycles mostly for the re rement market. Its primary market is seniors, usually those who live in re rement communi es where there are clearly designated and safe bike paths. Seniors—and especially younger baby boomers— enjoy these recrea onal vehicles because they are easy and safe to ride. The company has had some early successes in Florida, Arizona, and California, where such communi es thrive, but Op ma now wants to expand to other re rement enclaves. It has learned from two well‐conducted consumer research studies that the main way that male re rees buy the Op ma line is through the urging of wives who want to exercise in some way other than playing golf.

Op ma decides to engage an ad agency to capitalize on this consumer insight and promote its bikes to newer golf communi es. It asks two agencies—Alpha Agency and Beta Agency—to pitch for its business and gives each a mee ng in which it conveys the informa on above.

Alpha Agency is based in Miami and insists that its crea ve team is best suited to promote Op ma. Its managers tell the prospec ve client that this team is well versed in advanced anima on techniques and can drama ze the features of Op ma’s two‐ and three‐wheeled bikes in a dynamic way. They’ll focus on how fast they can go and how they can “transform the ride” into an adventure—this has worked in other ads, and this will appeal to male consumers who need to be lured away from the golf course. Following this ini al display of product prowess, they suggest a campaign that demonstrates how the bikes can be customized to be more “comfortable and a rac ve for the ladies,” including pink seat op ons. They finish by asking whether the brand name can be changed to “something more exci ng.”

Beta Agency is based in Los Angeles and promises to serve as Op ma’s branding partner. It asserts that its crea ve philosophy is centered on long‐term brand building. Its managers propose that they will develop the right message by applying the research‐based consumer insight that women want to use the bikes to en ce their husbands to leave the golf course once in a while. They suggest that their successful work in building regional apprecia on for other brands, such as Sea‐Doo water vehicles and Ski‐Doo snowmobiles, indicates their prowess in branding similar but not directly compe ve brands. They emphasize the difference that Op ma offers in the recrea onal‐ride category, and the consumer targets that differ from other brands. They close by complimen ng this prospec ve client on how appropriate the brand name is, given its customer base and likely target consumer.

52. (Scenario 9‐2) Op ma chooses the Beta Agency to create its campaign. What is likely the primary reason for this choice? a. Alpha Agency focused more on men than on women. b. Alpha Agency was in Florida, which covers a smaller region than California. c. Beta Agency focused on making a brand connec on to the consumer. d. Beta Agency was in Los Angeles, which is a more up‐and‐coming area regarding senior marke ng trends.

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Chap 09_8e 53. Which of the following should be adopted when conduc ng brainstorming? a. Genera ng new ideas rather than building on each others’ ideas b. Encouraging individuals to learn about the problem before and a er the group session c. Focusing on genera ng ideas rather than pu ng them to use d. Forming an appropriate team with no conflicts in cogni ve styles 54. According to John Sweeney, if you’re working with a pool of talented people, they’ll produce their best work if you: a. hand them over to the account execu ve. b. keep them out of any conflicts that arise. c. give them some structure. d. just agree with them.

55. Well‐known psychologist Carl Jung iden fied three sets, or dimensions, of cogni on. Which of the following pairs are included in these dimensions? a. Sensing vs. intui ng, and thinking vs. feeling b. Thinking vs. feeling, and seeing vs. hearing c. Ra onal vs. emo onal, and sensi ve vs. intui ve d. Extraverted vs. introverted, and crea ve vs. logical 56. According to Howard Gardner's research, crea ve people are more likely to be: a. self‐effacing. b. self‐confident. c. emo onally stable. d. self‐giving.

57. Which of the following is true of individualism in teams? a. If you and I think alike, then one of us is unnecessary. b. Growing reliance on teams in the workplace means a devalua on of the individual. c. Teams find ways to let just one person bring his or her unique contribu ons to the forefront. d. Less reliance on teams in the workplace implies greater emphasis on conforming to what the group thinks.

58. In the context of crea vity, which of the following should a team leader do to ensure a safe environment for team members? a. The team leader should not bring together people with diverse cogni ve styles if he wants them to get truly engaged in the task. b. The team leader should create new ideas and ask team members to incorporate them. c. The team leader should allow clients' ideas to be incorporated while making sure that team members only follow what the clients say. d. The team leader should embrace a bit of crea ve abrasion while looking to defuse interpersonal abrasion.

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Chap 09_8e 59. Which of these lists of personality traits, based on an analysis of seven of the greatest crea ve minds of the 20th century, probably work best in the crea ve department? a. quiet, calm, humble, conforming, and friendly to everyone in the room b. mid, intelligent, and shy with clients c. self‐confident, alert, unconven onal, hard‐working, and driven to the point of obsession d. edgy, intense, goal‐oriented, logical, and focused on the bo om line 60. Which of the following purposes does crea vity serve in adver sing? a. It makes people work in a structured manner. b. It creates compe ng agendas in an agency. c. It gives meaning to a brand by making emo onal connec ons with consumers. d. It makes people mid so that they can contribute more to work.

61. Sally’s job in an adver sing agency involves talking to the clients to iden fy their goals and then conveying these goals to the crea ve team, which creates strategies to accomplish these goals. Her job o en involves explaining the client's perspec ve to the agency and explaining the agency's crea ve strategy to the client.

Sally is likely to be a(n): a. ad designer. b. media buyer. c. copywriter. d. account execu ve.

62. (Scenario 9‐2) Which of the following is one cri cal item of informa on that Op ma’s brand manager should expect to see on the final crea ve brief to diminish conflicts in the future? a. The crea ve team should avoid anima on and cartoon graphics. b. The ad should be likeable without pushing for a par cular belief about the brand. c. The music for the campaign should be oldies rock. d. The goal should be reaching the wives of re rees who play golf.

63. Teams come up with ideas that are both crea ve and useful in the process of building brands if: a. they are allowed freedom in playing with their ideas. b. they are managed in a proac ve way. c. structure is given more importance than talent. d. right exper se is preferred over diversity of thought.

64. (Scenario 9‐2) Once Op ma managers have engaged Beta Agency to do their IBP work, how will they ensure that their hopes for a great campaign—and partnership—will become reality? a. By wri ng specific crea ve team members into the contract b. By asking that Beta check daily with the brand manager for Op ma c. By beginning work with the account execu ve at Beta to write a crea ve brief d. By se ng up a mee ng for the CEO of Beta and the CEO of Op ma

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Chap 09_8e 65. In the business world, even if you have a “crea ve” job, you should listen to the clients and: a. go easy on their ambi ons. b. take their ideas seriously. c. grow the market share for the brand. d. reflect the client’s thinking.

66. In teamwork, the term “synergy” implies that: a. one or two key members of a team are responsible for the crea ve output of the team, while the others merely follow. b. the output of the crea ve process is greater than the sum of the talents of individual team members. c. the output of team effort is similar to that of the most talented person in the team working alone. d. the output of the team depends on the nego a ng skills of the strongest member of the team.

67. Teams can liberate: a. the adver sing media. b. decision‐making. c. individualism d. mistakes.

68. Which of the following are included in the list of guidelines for heading a crea ve team? a. Allow for plenty of room between teams and clients, and foster compe on between team members. b. Communicate your own personal preferences, and stress the use of a par cular cogni ve style. c. Take care in making your team assignments, and rotate assignments over me. d. Foster crea vity by giving your team members free reign, and judge each crea ve idea as it is suggested.

69. Howard Gardner discovered that crea ve minds were usually totally______ to their cra : a. scared b. commi ed c. uninterested d. conven onal 70. Crea vity is enhanced when: a. i t enriches personal lives and creates emo onal stability. b. it enables forming conven onal decisions in life. c. i t makes social life or hobbies significant factors. d. people are doing something they love.

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Chap 09_8e 71. In his studies of crea vity and intelligence, Yale psychologist Robert Sternberg has found that when you suggest a really crea ve idea, you need to: a. copyright it. b. be prepared for opposi on to it. c. decide that it is a safe solu on. d. base it on an accepted standard.

72. What do the three Ps stand for in the 3Ps crea vity framework? a. Processes, Problems, and Perks b. Prepara on, Pragma sm, and People c. Prac cality, Problem‐solving, and Produc on d. People, Process, and Place Scenario 9‐1 The Excellent Agency specializes in developing adver sing campaigns for smaller retail clients. Excellent is hired by Shadowleaf Shoes, a small regional chain of six shoe stores, to develop a slogan and specific ads to be used in a three‐month newspaper campaign. Shadowleaf’s marke ng director, Manuel Margolis, is adamant while mee ng with Excellent's account execu ve, Kia Chin, that the campaign must be catchy and modern to appeal to a target audience that has an ac ve lifestyle and is between the ages of 18 and 35.

More importantly, Margolis wants the slogan to be memorable and unique.

Kia Chin, represen ng Excellent, develops a campaign and presents it to Margolis. The campaign is based on the slogan "Do What You Do in a Shadowleaf Shoe." Visuals depict men’s legs—different sizes, skin colors, etc.—walking, jogging, dancing, and otherwise moving in every type of Shadowleaf’s shoes. Margolis feels that this campaign will target young male consumers, but will also get the a en on of others regarding the comfort of the shoes, raising awareness of the Shadowleaf brand.

A er running the ads, the Excellent Agency wins an adver sing effec veness award. It seems that the surprising and appealing visuals gave the slogan unexpectedly posi ve social meaning for people of all ages, not just men aged 18 to 35.

73. (Scenario 9‐1) When Manuel Margolis insists on a measuring s ck for the crea vity of the campaign, what will Excellent Agency tell him, if Kia Chin is smart? a. “The award alone proves that this ad is loaded with crea vity.” b. “If people like the ad, they’ll buy the product.” c. “We met the technical standards for this adver sing effort.” d. “Great brands do more than just get a en on: they make emo onal connec ons.”

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Chap 09_8e 75. New ideas and breakthrough solu ons occur when there is just enough tension and just the right clash of ideas, which is called: a. crea ve abrasion. b. interpersonal abrasion. c. interpersonal conflict. d. cogni ve dissonance.

76. Though it is almost impossible to define, crea vity is essen ally the ability to: a. see the world in a structured way. b. hold together seemingly inconsistent elements. c. think in terms of “the way things have to be.” d. be conven onal and hardworking.

77. (Scenario 9‐1) Which individual at the Excellent agency will be responsible for maintaining a good rela onship with Margolis and the Shadowleaf organiza on? a. The research manager b. The crea ve director c. The media planner d. The account execu ve 78. _______ is the ability to consider and hold together seemingly inconsistent elements and forces, making a new connec on. a. Reason b. Crea vity c. Mo va on d. Synergy 79. Who o en prepares the crea ve brief? a. The client lead and the account execu ve b. The owner(s) of the agency c. The client brand manager d. The research execu ve 80. Todd has just been assigned the role of team leader of his crea ve group for a new ad campaign. Which of the following should Todd do first? a. He should suppress any disagreements. b. He should meet with the client. c. He should provide a list of his ideas. d. He should build a consensus about goals they hope to achieve and the approach to reach those goals.

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Chap 09_8e 81. Psychologist Robert Sternberg, an expert on crea vity and intelligence, advises that if you want to be more crea ve, you should: a. do something you love. b. learn from the pros. c. expect to be disliked. d. head up a team.

82. Most ___________ work with the crea ve brief. a. account execu ves b. crea ve departments c. media sellers d. agency owners 83. Which of the following is true of teams in adver sing? a. In adver sing, teamwork needs no planning. b. Great teamwork is required for great adver sing. c. In adver sing, teams need no mo va on to generate big ideas. d. Teams, by themselves, elevate the crea ve essence in adver sing campaigns.

84. The stereotypes about business and adver sing people serve to remind us that: a. people approach problem solving with different styles. b. adver sing experts rely on their left brain. c. business types use both sides of their brain. d. people prefer to think about things in a conven onal style.

85. According to Robert Sternberg, which of the following should you do for advancing your own crea vity? a. Adopt the safe solu on. b. Do not cherish ambiguity. c. Learn to doubt yourself. d. Analyze your own ideas.

86. Adver sing is a(n): a. solo occupa on. b. individual compe

on.

c. team sport. d. business rather than an art.

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Chap 09_8e 87. A fashion brand no ces that its ads are indis nguishable from those of other brands. All the ads usually feature young people having fun. As a result, this brand launches a crea ve adver sement that shows celebri es buying clothes and ac ng like youngsters. In the context of this scenario, what was the purpose of this adver sement? a. To reinforce the company's CSR b. To generate a product launch c. To present logical reasons for customers to prefer the brand d. To break through the ad clu er and get a en on 88. Which of the following best describes the reason why account execu ves should not be fired even when ad agencies face lean mes? a. They have the cri cal role of bridging the gap between clients and crea ves. b. They execute sophis cated adver sing and IBP campaigns. c. They do not get involved in struggles over control of the crea ve product. d. They have the vital responsibility of judging the work of the crea ves.

89. (Scenario 9‐1) The Excellent account manager, Kia Chin, explains to Margolis how they developed the slogan.

“Before you can be believed, you have to be liked,” she says. “And what could be be er than a new pair of shoes? Remember when you were li le and you got a new pair of shoes? And when you learned to lace them up? No ma er what their age, everybody likes pu ng on a new pair of shoes, right?” This crea ve descrip on for the Shadowleaf slogan could have been drawn from which core characteris c of crea ve people? a. Childlike thinking b. Obsessive commitment c. Self‐confidence d. Conven onal a tude 90. During Gardner’s work in iden fying seven of the most crea ve people of the 20th century, he also iden fied some nega ve sides to their lives. Which five characteris cs did his subjects appear to have in common? a. ego s cal, narcissis c, obsessed, socially isolated b. delusional, irra onal, an social, psycho c c. ina en ve, unfocused, impa ent, hyperac ve d. dysfunc onal, clingy, codependent, impulsive 91. In the context of adver sing, which of the following is true concerning teams? a. They try to blend diverse skills but are rarely successful. b. They have become the primary means for ge ng things done. c. They squash individuality and crea vity all too o en. d. They were popular in the 80s and 90s but are now considered to have been a fad.

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Chap 09_8e 92. (Scenario 9‐1) Looking back, who was responsible for crea ng the client brief, which should have informed Margolis and others of the crea ve endeavors behind the campaign? a. The owner of the Excellent Agency b. The lead from Shadowleaf and the account execu ve of Excellent c. The research manager and the crea ve director of Excellent d. The marke ng execu ve of Shadowleaf 93. In essence, a crea ve brief is a(n): a. informal contract depic ng the responsibili es of the crea ve team. b. set of guidelines to get the crea ve group moving in the right direc on. c. solu on to the primary problem of the ad campaign. d. list of results to be expected from the ad campaign.

94. (Scenario 9‐2) As o en happens in new client‐agency rela onships, Beta Agency and Op ma Bike Company conduct a joint brainstorming session prior to finalizing the IBP campaign strategy. Sam Spokes, head engineer and designer for Op ma, interrupts the session frequently, refu ng agency staffers’ spontaneous sugges ons that women love bikes, a bike is like a golf club, the bike will sell itself, and more. He also labels them as uninformed about various technical aspects of bicycle mechanisms. How does Spokes’ behavior likely influence the brainstorming session? a. Posi vely, by winnowing out bad campaign ideas from good ones b. Nega vely, by diminishing its purpose in inhibi ng others from offering ideas freely c. Posi vely, by poin ng out important aspects of product design and showing exper se d. Neutrally, by making irrelevant and immaterial comments 95. Explain the importance of collabora on—i.e., crea ng teams and encouraging teamwork—in the crea ve adver sing environment. Give three or four reasons why teams foster crea vity in the real‐life workplace of contemporary adver sing. Consider ideas from The Wisdom of Teams by Katzenbach and Smith.

96. If you have decided to be more creative, what are the 3Ps in the 3Ps creativity framework, and how do they relate to being more creative?

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Chap 09_8e 97. Psychologist Robert Sternberg has devoted his en re career to the study of crea vity and intelligence. What advice does he give to those who want to boost their crea vity? List Sternberg's ten sugges ons for becoming more crea ve. Give a realis c example of how any three of them might apply to the world of promo on.

98. Define the terms interpersonal abrasion and crea ve abrasion. Discuss the differences between the two, as well as the similari es. Give an example of each that might be found in the adver sing workplace environment.

99. What is meant by the term cogni ve style? How has it been stereotyped into two polar opposites in crea ve environments like ad agencies? Explain how cogni ve styles affect crea ve teams.

100. With the help of concrete examples, describe the tensions that are rou nely found between crea ves and managers within agencies. Discuss why these are so commonly found in the world of adver sing.

101. What are the core characteris cs of great crea ve minds, as iden fied by Howard Gardner? Relate the characteris cs to the posi ve and nega ve repercussions in the lives of people who demonstrate extreme levels of crea vity.

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Chap 09_8e Answer Key 1. True 2. False 3. True 4. True 5. True 6. True 7. True 8. True 9. True 10. True 11. True 12. True 13. False 14. True 15. True 16. True 17. True 18. True 19. True 20. True 21. False 22. True 23. True 24. True 25. True 26. True

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Chap 09_8e 27. True 28. True 29. False 30. True 31. False 32. True 33. True 34. True 35. True 36. d 37. c 38. c 39. b 40. c 41. c 42. c 43. c 44. d 45. d 46. d 47. d 48. c 49. d 50. b 51. d 52. c 53. b 54. c Copyright Cengage Learning. Powered by Cognero.

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Chap 09_8e 55. a 56. b 57. a 58. d 59. c 60. c 61. d 62. d 63. b 64. c 65. b 66. b 67. b 68. c 69. b 70. d 71. b 72. d 73. d 74. b 75. a 76. b 77. d 78. b 79. a 80. d 81. a 82. b Copyright Cengage Learning. Powered by Cognero.

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Chap 09_8e 83. b 84. a 85. d 86. c 87. d 88. a 89. a 90. a 91. b 92. b 93. b 94. b 95. Today, interpersonal skills are highly valued—and expected—in the workplace. And adver sing has become a team sport. Coordina on and collabora on are required in all phases of promo on and marke ng nowadays.

Teams have become the primary means— some mes the only valid op on—for ge ng things done.

Teams bring many posi ve elements to the table. They can generate a synergy that makes the whole bigger than its parts. They allow people to focus on many individual tasks and then combine their talents i n a unique way. They make the group rather than the individual accountable for performance, and they are expected to show results.

Teams can create and build campaigns more easily than individuals. They can simply handle the demands, me constraints, and quality requirements that are o en beyond the scope of one person’s abili es. But effec ve teams also appreciate and u lize individual excellence. They allow people to bring unique talents and contribu ons to the job. Likewise, the people involved learn about their own cogni ve styles, observe the work of others, and become be er collaborators overall.

96. People, Process, and Place are the 3 Ps in the 3Ps creative framework. People are the great minds. The process is the strategy and using account planners to inform the creative and the media. The place is the environment in which the work is done. Being more creative entails redefining problems to see them differently from other people, and to analyze and critique one’s own ideas in these areas.

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Chap 09_8e 97. Sternberg said that to become more crea ve, you need to make certain decisions and follow through on them. The decisions listed in the book include the following (examples will vary among students): 1. Redefine problems to see them differently from other people.

2. Be the first to analyze and cri que your own ideas, since we all have good ones and bad ones.

3. Be prepared for opposi on whenever you have a really crea ve idea.

4. Recognize that it is impossible to be crea ve without adequate knowledge.

5. Recognize that too much knowledge can s fle crea vity.

6. Find the standard or safe solu on and then decide when you want to take a risk by defying it.

7. Keep growing and experiencing, challenging your own comfort zone.

8. Believe in yourself, especially when surrounded by doubters.

9. Learn to cherish ambiguity, because from it comes new ideas.Remember that research has shown that people are most likely to be crea ve when doing something they love.

98. The two concepts are similar in that they both refer to a level of tension, conflict, frustra on, irrita on, or disagreement that almost naturally occurs when highly mo vated people work together to solve a problem or create a new idea. But there are great differences between the two.

Interpersonal abrasion refers to the clash and fric on between people, o en in a very personal way.

Communica on breaks down, new ideas die, and crea vity shuts off. This type of conflict can be a destruc ve force in a workplace.

Crea ve abrasion refers to the clash and fric on between ideas, usually in a professional way. Opinions are expressed, arguments take place, voices are raised— but in the middle of all this, ideas pop, thoughts clarify, and breakthrough solu ons evolve. So this type of conflict can be very produc ve in the workplace. In fact, some form of fric on or tension needs to be present to s r things up and get the sparks flying.

Examples from the adver sing workplace will vary among students, but will probably include in some form the common state of conflict between clients and agencies, or between account execu ves and crea ve directors.

Either way, the crea ves are usually at the center of the conflict.

99. Cogni ve style refers to the unique preference of every individual for perceiving, thinking, and solving problems. Some lean toward logical or analy cal thinking, others prefer intui ve or visual thinking. Many versions have been suggested, beginning with the work of psychologist Carl Jung, who proposed three categories of opposing cogni ve styles—sensing versus intui ng, thinking versus feeling, and extraversion versus introversion.

The stereotypes o en depicted in crea ve businesses like adver sing and promo on have produced some familiar cultural stereotypes. It is easy to label the “business types” as le ‐ brained thinkers—interested i n numbers, tests, data, and reports. And to label the “crea ve types” as right‐brained thinkers—focused on ideas, images, visuals, and abstrac ons. While these stereotypes are narrowly defined and force people into cookie‐cu er “types,” they do point to the idea that people think about things, tackle projects, and carry out tasks in very different and individual ways.

Overall, teams doing crea ve adver sing work tend to benefit from a good mix of different cogni ve styles.

Different kinds of thinking lead to crea ve solu ons.

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Chap 09_8e 100. Tensions begin with the uncertain nature of the crea ve product. Although everybody understands that ads need to be “crea ve,” there is no hard and fast rule that iden fies “crea vity” when it appears.

Moreover, some clients and agency managers have the percep on that crea ves spend a lot of me telling jokes, having fun, and “screwing around” as they let the crea ve wheels turn. But the other side may not be recognized —that crea ves are con nually pressed to come up with yet another totally “unique” and “original” concept, design, or slogan, o en with li le me and few resources. It is hard work to not only get the right crea ve idea but to convey it and produce it in a tangible form. The me and effort needed to do that is o en dismissed or unseen by managers and clients. These types of misunderstandings aggravate client uncertainty, which in turn frustrates account execu ves and agency directors.

By nature, many crea ves are provocateurs—they take risks, push envelopes, and some mes step over the lines of ethics and good taste. Managers, to a degree, dislike too much edginess in a crea ve execu on and o en seek to minimize it, but in doing so, they may end up micro‐managing the team rather than le ng the final product speak for itself.

101. Gardner suggested that great crea ve minds share par cular quali es—unending self‐confidence, childlike simplicity, nonstop alertness, unconven onality, self‐promo on, strong work ethic, and obsessive commitment to work. These traits, all of which he discovered when analyzing seven highly crea ve minds of the past century, can lead to a number of posi ve condi ons. They foster fresh thinking, fascina ng ideas, and innova ve solu ons to problems—not only invigora ng and amazing the world, but also improving it.

Although these quali es—and their benefits to business and consumer lives—are very posi ve and desirable, there is a downside, largely based on the degree to which crea ves show these traits. Self‐confidence, when out of balance, can degrade into narcissism and ego sm. Childlike thinking, while leading to refreshing and compelling insights, can also lead to childish behaviors. Obsessive commitment to work can lead to distressing hardships for an individual’s family, friends, and associates, who may be ignored or treated poorly while also being expected to cheerlead from the sidelines and compensate for the crea ve's shortcomings.

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Chap 10_8e Indicate whether the statement is true or false.

1. It is important to consider the strategic implica ons of the various types of adver sing. a. True b. False 2. One warning regarding sex‐appeal ads is that they need to be presented in an appropriate context; otherwise, they can be a distrac on, or worse. a. True b. False 3. Commercials that show ordinary people wearing a product are employing a type of average‐user tes monial. a. True b. False 4. An advertorial is an ad that is designed to look like a newspaper ar cle. a. True b. False 5. The idea behind transforma onal ads is to make the consump on experience be er. a. True b. False 6. Message strategy objec ves should match with the methods, or how the adver ser plans to achieve the objec ve. a. True b. False 7. Social anxiety adver sing o en presents the brand as part of the solu on to a problem. a. True b. False 8. Both feeling‐based and thought‐based ads are important for differing objec ves. a. True b. False 9. Transforma onal adver sing can relate with brand experience. a. True b. False 10. When an advocacy posi on is taken by a spokesperson in an adver sement, it is known as a tes monial. a. True b. False

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Chap 10_8e 11. A concern about anxiety ads is the ethical issues. a. True b. False 12. A brand messaging professional should ensure that the brand is placed in the right social se ng in order for it to have a social meaning ed to it. a. True b. False 13. Feel‐good ads some mes focus on posi ve feelings, in order to associate those posi ve feelings with the adver sed brand. a. True b. False 14. In the end, message development is where the adver sing and branding ba le is usually won or lost. a. True b. False 15. Repe on is a tried‐and‐true way of gaining easier retrieval of brand names from a consumer’s memory. a. True b. False 16. Fear‐appeal ads are more appropriate for certain categories, such as scaring consumers not to text and drive. a. True b. False 17. One drawback of reason‐why ads is that they have a poten al for counterarguments, which may ul mately convince the customer why not to buy the adver sed brand. a. True b. False 18. Social roles—e.g., mother, father, roman c partner—and the consumer’s inadequacies and worries about fulfilling them are used in selling products. a. True b. False 19. Comparison ads are rarely seen outside the United States due to cultural customs or legal restric ons of other na ons. a. True b. False

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Chap 10_8e 20. A cri cism of social anxiety ads is that historically they have been dispropor onally targeted at women. a. True b. False 21. Adver sers typically want their name to be the first brand that consumers remember. a. True b. False 22. Adver sements that use the USP concept link the brand name with its unique selling proposi on. a. True b. False 23. A slice‐of‐life adver sement a empts to iden fy a cultural or social se ng and have it rub off on a brand. a. True b. False 24. Image ads tend to generate more consumer counterarguments when compared to other types of ads. a. True b. False 25. Image adver sing prefers the use of visual over text elements. a. True b. False 26. Humorous versions of adver sements usually prove to be less persuasive than non‐humorous versions of the same ad. a. True b. False 27. Adver sers are not interested in brand recall. a. True b. False 28. Sex‐appeal ads can be used to get a en on, but not to create a brand image. a. True b. False 29. The concept of message strategy refers to objec ves, not methods—what you want to do, not how you want to plan it. a. True b. False 30. For humor ads to be successful, the humor can’t replace brand connection. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 10_8e 31. An infomercial looks like an entertainment show, when it’s really an ad. a. True b. False 32. Compared to achieving a brand recall objec ve, achieving a persuasion objec ve typically requires more cogni ve processing on the part of the consumer. a. True b. False 33. Unlike anxiety ads, ads that focus on social anxiety face danger in nega ve social judgment. a. True b. False 34. Great messages are developed by people who can put themselves into the minds (and culture) of their audience members and an cipate their response. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

35. __________help(s) explain how consumers rely on opinions or tes monials from people they consider similar to themselves, rather than on objec ve product informa on. a. Equity theory b. Reference groups c. Maslow's theory d. Brand loyalty 36. (Scenario 10‐6) Which of the following methods would help Target's customers to recall the store's name first when they decide to go shopping? a. Tes monial ads b. Slice‐of‐life ads c. Humor ads d. Slogans and jingles 37. An expert tes monial ad for a brand of mouthwash would be most likely to use the ad. a. an animal b. a den st c. a popular cartoon character d. a famous sportsperson

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Chap 10_8e 38. When an advocacy posi on is taken by a spokesperson in an adver sement, this is known as a(n) a. transforma onal

ad.

b. tes monial c. feel‐good d. image 39. (Scenario 10‐2) Old Navy intends to air its comedic adver sements of popular products primarily on its website and various social media outlets. The company believes that because consumers spend so many hours using these forms of media, their ads will be seen frequently by consumers. Through this strategy, Old Navy is using: a. product placement. b. repe

on.

c. infomercials. d. tes monials.

40. A real nurse discussing the benefits of a home blood‐pressure kit and a real librarian promo ng the advantages of a children’s reading program are both: a. ac ng as expert spokespeople. b. missing credibility. c. providing art direc on. d. delivering comparison adver sing.

41. An adver ser a empts to generate brand preference by ge ng consumers to simply like the product and associate it with fun and happiness. Which type of message is the adver ser sending? a. A feel‐good message b. A tes monial c. A demonstra on d. A hard‐sell message 42. (Scenario 10‐1) If PepsiCo wanted to depict an ideal usage situa on for its brand, what would be the best choice of adver sing for the company to use? a. Reason‐why ads b. Slice‐of‐life ads c. Tes monials d. Social anxiety ads 43. (Scenario 10‐5) If the objec ve of Ford is to persuade consumers to buy its cars during a special limited‐ me offer, which of the following adver sing methods should Ford use? a. Hard‐sell ads b. Fear‐appeal ads c. Social anxiety ads d. Repe

on ads

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Chap 10_8e 44. (Scenario 10‐2) The Taylor ad focuses on the me it takes to produce a quality guitar. Based on the func ons and strengths of USP, the ad would not have been as effec ve if the: a. visual was less eye‐appealing. b. copy a empted to address four or five desirable a ributes. c. visual was a drawing rather than a photograph. d. copy focused on a different a ribute, such as sound.

Scenario 10‐1 During tough economic mes, many companies rely on memories of "the good old days" to help adver se their products. Looking for a bit of a jumpstart, PepsiCo turned to nostalgia‐heavy adver sements late in 2009, which then carried into 2010. The company introduced "throwback" versions of a number of its soft drinks, and created an ad campaign that included new logos and a series of commercials intended to generate feelings of happiness from prior decades. The company had hoped that any warm, fuzzy feelings about the past would make people feel be er about the company’s present and future.

45. (Scenario 10‐1) Emo onal appeals in adver sing are most effec ve when me is an insignificant element in achieving an objec ve. As opposed to this, which method is most appropriate when the goal involves crea ng a sense of urgency to purchase? a. Slice‐of‐life b. Fear appeal c. Hard‐sell d. Anxiety 46. (Scenario 10‐6) Target managers feel that their poten al customers, who are now shopping in department stores, must be persuaded to visit Target stores by recognizing the unique image, posi ve significance, and social meaning for their brand. Several methods might be used, but which of the following would be least effec ve in accomplishing this objec ve? a. Slice‐of‐life b. Hard‐sell c. Fear‐appeal d. Image ads 47. For _____ adver sing to work as planned, the consumer should be convinced through arguments that the adver sed brand is the right choice. a. repe ve b. point‐of‐purchase c. persuasive d. feel‐good

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Chap 10_8e 48. In a successful humor ad, the joke or payoff: a. is funnier than other ads. b. can be run more o en. c. is linked to the product. d. puts down the compe

on.

49. (Scenario 10‐1) Nearly everyone in adver sing understands the powerful role emo ons play in adver sing, but emo ons can also: a. be the only tool available when the objec ve is to persuade the consumer. b. become a product a ribute linked to the brand. c. be an excellent tool for use in repe

on, slogans, and jingles.

d. never become part of the product.

50. An adver ser adver ses exercise machines on late‐night TV. Their adver sements are typically half‐an‐ hour long and feature spokespeople as well as consumers and celebri es talking about their experiences with the brand. In this scenario, the company is using . a. advertorials b. infomercials c. point‐of‐purchase adver sing d. transforma onal adver sing 51. (Scenario 10‐4) In ad #3, marketers list a number of product benefits intended to persuade consumers to buy Adidas products. This is an example of: a. reason‐why adver sing. b. social anxiety adver sing. c. transforma onal adver sing. d. top‐of‐mind adver sing.

Scenario 10‐6 Facing s ff compe on from Walmart and K‐mart, execu ves for Target stores have decided to focus on reaching more affluent shoppers and luring them away from tradi onal department stores. They have already expanded the products and brands they offer to include reasonably priced items by modern design masters. Target hopes to draw more affluent shoppers into its stores through a series of adver sing campaigns that are presently in the planning stages. Most of the adver sing budget will be directed to ads in regional luxury magazines, which, research shows, are frequently read by affluent individuals.

52. (Scenario 10‐6) Which of the following should Target do in order to place its brand name more permanently in the affluent customers' memories? a. Target should make sure that the magazine ads have a posi ve feeling about them. b. Target should place an urgent call‐to‐ac on on each of its ads in the magazine. c. Target should place its ads on a number of pages of each issue of the magazine. d. Target should make sure that the ads are funny and a great entertainment to the customers.

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Chap 10_8e 53. (Scenario 10‐5) In addi on to promo ng environment‐friendly cars, Ford is now trying to market its cars as universal ones that can be used in markets throughout the world. The company has u lized the phrase "One Ford" in conjunc on with the campaign and is hoping that consumers will begin to recognize Ford as the number one global auto‐maker. Assuming this is an a empt at a unique selling proposi on, which of the following is an implica on of this method? a. It is a short‐term commitment. b. It is very efficient once a clear link has been established. c. It is not resistant to compe

ve challenge.

d. It allows you to switch strategies, and the strategies will con nue to be effec ve.

54. The first brand name that consumers remember when a par cular category of products is men oned is said to have _____ awareness. a. evoked set b. point‐of‐purchase c. top of mind d. direct response 55. In the context of adver sing, which of the following is true of leveraging social disrup on and cultural contradic ons? a. It associates the brand with pleasant events. b. Most adver sers tend to ignore or even deny the existence of major social disrup ons. c. Only conserva ve brands risk using this strategy. d. All brands that use this strategy get assured success.

56. (Scenario 10‐2) Old Navy's newest adver sements, which feature comedic messages, are examples of: a. light‐fantasy ads. b. slice‐of‐life ads. c. transforma onal ads. d. humor ads.

57. Which of the following is a characteris c of feel‐good ads? a. They work through affec ve associa on or predecision distor on. b. They have the advantage of looking like an entertainment show. c. They create and then offer solu ons for feelings of anxiety. d. They have significant legal/regulatory exposure.

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Chap 10_8e Scenario 10‐2 Adver sers have a wide choice of objec ves and methods when crea ng an ad for a product, no ma er what the product category is. For example, both Taylor and Yamaha sell guitars. Both have created ads that have been recognized by the adver sing industry as outstanding crea ve efforts. However, they have chosen different ways to use magazine adver sing to sell guitars.

A representa ve adver sement for Taylor features a photograph of a beau ful, lush, fog‐shrouded forest.

The headline reads, "If a tree falls in the forest and you're not there to hear it, does it make a sound? Yes, it just might take 7 or 8 years." The copy is three sentences long and talks about the me and a en on that Taylor takes in making quality guitars. Only the top couple inches of a guitar featuring the Taylor logo are shown. While the ad could be classified as exemplifying a number of approaches to mee ng message objec ves, it most closely fits the descrip on of the USP method by linking a key a ribute (quality) to the brand name (Taylor).

The main visual in an ad for the Yamaha Pacifica is a bold shot of the guitar. The headline reads, "To survive, you need four things: Food. Sex. Shelter. Guitars. Make that two things." The ad features characteris cs of several approaches to mee ng message objec ves. However, the headline seems to define it as using the humor method to persuade consumers to prefer the brand.

58. (Scenario 10‐2) Which of the following is an accurate descrip on of the objec ve that the Taylor ad was trying to achieve? a. As a feel‐good ad, it was trying to increase brand recall. b. As a USP ad, it was trying to connect a specific characteris c with the brand. c. As a feel‐good ad, it was trying to transform a consump on experience. d. As a USP ad, it was trying to increase brand recall.

59. (Scenario 10‐2) When entering an Old Navy store, customers immediately see a display that is designed to spark memories of the company's newest adver sements. The display features life‐sized cutouts of the actors starring in the commercials as well as a sign that contains a popular line from the ad. The display is an example of: a. transforma onal adver sing. b. top‐of‐mind adver sing. c. a unique selling proposi on. d. point‐of‐purchase branding.

60. Which of the following telecom companies would be most likely to benefit from a direct comparison ad? a. a company known for its pioneering designs b. the company with the smallest market share c. an established leader in the market d. a small company that has just entered the market

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Chap 10_8e 61. Comparison ads try to demonstrate a brand’s ability to sa sfy consumers by: a. showing the brand name more o en to consumers. b. weighing its features against those of compe

ve brands.

c. linking the brand name to something memorable for consumers. d. making consumers associate posi ve feelings with the adver sed brand.

62. Jingles and slogans are linked to a concept called ______, that is, they encourage repe catchy or prone to being repeated. a. rehearsal

on because they are

b. periodicity c. looping d. isochronism 63. Which term refers to the mix of adver sing and entertainment, the umbrella covering the increasingly broad spectrum of integrated ads and nontradi onal IBP? a. Procter & Gamble approach b. Populist consump on c. Consumer integra on d. Madison & Vine approach Scenario 10‐2 Na onal clothing retailer Old Navy has been known for its crea ve ad campaigns for a number of years. In 2010, the company decided to tap into Hollywood talent to help promote its brand. Actors Jaime Presley, Bailey Chase, and Judy Greer were signed to support the company's Scream for Savings ini a ve, a campaign designed to reach consumers with comedic messages. Old Navy spent over $100 million in measured media through the first two‐thirds of 2010, and annual ad spending has topped $175 million in recent years. (“Old Navy Taps Hollywood Talent for Halloween Spot” Brandweek Magazine, October 29, 2010) 64. (Scenario 10‐2) It is believed in adver sing that repeated exposure to a par cular s mulus will increase the chances of the s mulus being remembered in the future. This describes the term: a. brand recall. b. adver sement remembrance. c. strong memory. d. display memory.

65. Repe on is a tried‐and‐true way of: a. posing one or more logical arguments to an engaged consumer. b. gaining easier retrieval of brand names from consumer’s memory. c. demonstra ng a brand’s ability to sa sfy consumers by comparing its features to those of compe ve brands. d. leveraging the propensity for humans to distort informa on in the favor of liked brands without knowing they are doing so.

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Chap 10_8e 66. The main objec ve of USPs is to link the key a ribute(s) to the: a. brand name. b. social role. c. service. d. nega ve consequences of not using the brand.

67. (Scenario 10‐5) If the objec ve of Ford is to demonstrate that its newest line of cars is superior to that of a strong compe tor, which of the following methods should Ford use? a. Demonstra on ads b. Comparison ads c. Reason‐why ads d. Point‐of‐purchase ads 68. (Scenario 10‐5) Assuming that Ford's intent behind promo ng the use of environment‐friendly vehicles is to appeal to broad disagreements and disrup ons in society, which of the following methods should the company consider? a. Feel‐good ads b. Slice‐of‐life ads c. Social/cultural movement ads d. Society‐friendly ads 69. Slice‐of‐life ads are typically produced when an adver ser wants to: a. promote brand recall. b. change behavior by inducing anxiety. c. give the brand social meaning. d. gain recogni on through brand name repe

on.

70. (Scenario 10‐6) Target managers decide to run magazine ads with very few words, focusing on visuals of the Target logo (the recognizable red ball) and high‐end goods sold in their stores. Target is a emp ng to use an efficient communica on that sends a message at a glance, in the form of: a. image ads. b. demonstra on ads. c. point‐of‐purchase ads. d. comparison ads.

71. (Scenario 10‐1) For companies using feel‐good ads, one of the difficul es is crea ng an ad that truly elicits fond memories. Another difficulty associated with feel‐good ads is that they can: a. cause consumers to generate compe ng thoughts and connec ons. b. cause consumers to recall bad memories from their childhood. c. cause consumers to favor another brand over the one adver sed. d. cause consumers to think before they start feeling.

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Chap 10_8e 72. (Scenario 10‐6) Another magazine ad designed for Target's new campaign shows a well‐dressed shopper pushing her loaded Target cart to her Jaguar, showing sa sfac on in the parking lot as she spots another consumer loading Target shopping bags into her Jaguar. Which objec ve is this ad hoping to achieve? a. To ins ll brand preference b. To change the actual experience through ad visuals c. To situate the brand socially d. To change behavior by inducing anxiety 73. (Scenario 10‐4) Ad #2 features a statement from a sa sfied consumer. The company hopes this customer's opinion of the product will persuade others to buy its shoes. The customer has given a(n): a. affec ve associa on. b. tes monial. c. product demonstra on. d. infomercial.

74. An adver ser of an established line of luxury resorts wants to make sure that the visitors have a long‐term commitment with the resorts. He decides to use powerful imagery depic ng happy moments that people can enjoy on visits to these resorts. He ensures that the visuals shown in these ads will be closely ed to a stay in the resorts. Through such ads, he hopes to: a. establish the resorts in a social or cultural se ng. b. transform the experience of actually visi ng the resorts. c. make customers recall the name of the resorts. d. create a brand image for the resorts.

75. Which of the following ads uses indirect comparison? a. Brand A offers you four mes the performance of other leading brands. b. Brand B gives you all‐day protec on against germs. c. Brand C offers be er mileage for half the price of Brand X. d. Buying Brand D results in immense savings over the long term.

76. (Scenario 10‐4) In ad #4, which type of ad are the marketers using to appeal to consumers? a. Social anxiety ad b. Humor ad c. Fear‐appeal ad d. Sex‐appeal ad 77. Which type of adver sing is the most sophis cated and, though difficult to pull off, can powerfully weave ad images with real‐life experiences? a. Social/cultural movement b. Image c. Transforma onal d. Product placement Copyright Cengage Learning. Powered by Cognero.

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Chap 10_8e Scenario 10‐5 In 2007, Ford Motor Company fell from second to third in the U.S. annual vehicle sales for the first me in 56 years. Facing s ff compe on from foreign automakers and brand indifference amongst U.S. consumers, Ford appeared to be headed towards turbulent mes. However, when marke ng and adver sing guru Jim Farley joined Ford in November 2007, he brought with him a number of fresh ideas that helped turn the company in the right direc on. Farley quickly found that Americans had become indifferent to the Ford brand, which in his opinion was even worse than disliking the brand. So Farley, along with the rest of the marke ng team at Ford, created a campaign that used catchy songs and cheerful images to accompany its line of automobiles.

The marke ng team at Ford began heavily u lizing the Internet to promote the Ford Fiesta, which was the focus of a campaign that greatly increased awareness of the Ford brand. The company also stressed the value of buying environment‐friendly cars, a move it hoped would improve the brand's image throughout the world. These moves appeared to work—in late 2010, Ford was once again named the second‐leading automo ve company in the United States, as well as the fourth largest in the world. (“Ford Can Fiesta Again.” The Economist, October 28, 2010) 78. (Scenario 10‐5) Ford used a number of catchy songs in its adver sements. One advantage of using jingles in adver sing is that: a. it gives consumers something fun to listen to. b. it promotes brand recall. c. it makes consumers think before purchasing a par cular product. d. consumers respond be er to sounds than they do to images.

79. (Scenario 10‐1) Which type of ads do PepsiCo's throwback commercials represent? a. Demonstra on ads b. Reason‐why ads c. Comparison ads d. Feel‐good ads 80. Several ads for lingerie, jeans, and perfume in a sophis cated fashion magazine provide instances in which a sex‐ appeal message is successfully used. The ads are successful because the: a. right model is chosen. b. product is appropriate. c. image approach is used. d. brand is bought for emo onal reasons.

81. In a(n) _____ad, an adver ser reasons with the poten al consumer. a. emo onal connec on b. reason‐why c. social anxiety d. superiority

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Chap 10_8e 82. Which of the following is true about fear when it is used in an adver sement? a. Fear will get a consumer to pay a en on but will rarely get a consumer to take ac on. b. Fear is best used at very low or almost unrecognizable levels. c. Fear works best when the consumer doesn’t think about the ad too much. d. Fear can work when it’s believable and the ad shows a clear way out.

83. An adver sing strategy that centers on that an online user will see it many mes. a. transforma on b. image c. demonstra on d. repe

on

84. (Scenario 10‐2) Ads such as Taylor's try to: a. link special a ributes to a brand, either explicitly or implicitly. b. place brands in socially desirable environments. c. use comparisons to other brands to create an image. d. engage the consumer on a high cogni ve level.

85. A television commercial depicts kids coming in from playing sports to get a drink from the kitchen. This is an example of a(n) _______. a. transforma onal ad that a empts to change the consump on experience b. image ad that a empts to define a brand image c. slice‐of‐life ad that a empts to situate a brand socially d. celebrity ad that a empts to persuade the consumer 86. The small list of brand names, typically five or fewer names, that comes to mind when a product or service category is men oned is known as the . a. intersec on set b. product line extension c. evoked set d. brand extension 87. (Scenario 10‐2) Yamaha has created a wi y ad. This method is effec ve only when the: a. ad is judged as funny by consumers. b. ad is understood by both children and adults. c. humor is directed at an unsuspec ng consumer. d. humor is linked directly to the brand.

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Chap 10_8e Scenario 10‐4 In the "Chicago Shopping" sec on of the Chicago Tribune website, the following ads were listed: 1. An ad for the last day to save 10 percent on all purchases at Target.com. Readers are urged to act quickly because the deadline for the deal, which is boldly listed in red ink, is today. The ad also features a picture of a 40" LCD television showing the company's name and "bull’s‐eye" logo on the screen.

2. An ad for a pair of basketball shoes accompanied by a posi ve endorsement from a sa sfied customer.

The customer states, "I have never had a shoe like this one. I jump higher and run faster, and I am able to play longer than I ever have in the past." The ad offers a $19 coupon for use at par cipa ng Foot Locker stores.

3. An ad encouraging consumers to shop at Adidas because of its low sale prices. The ad reads, "Adidas brand apparel will increase your athle c performance. Give yourself the compe ve advantage you've always wanted and shop our selec on of running, soccer, basketball, and golf apparel."

4. An ad lis ng a limited me offer for a pair of expensive jeans. The ad shows a fic onal character being laughed at by an a rac ve female because of his old, raggedy jeans. The man being laughed at appears incredibly embarrassed. Marketers want consumers to feel more accepted in society when they wear this par cular pair of jeans.

(ChicagoTribune.com, October 26, 2010) 88. (Scenario 10‐4) In ad #1, the company's name and logo are at the center of the adver sement. Apparently, marketers are trying to hammer the images into consumers' heads. Target likely created the ad based on which of the following accepted concepts concerning repe on? a. Repe on is a complex form of adver sing. b. Repe

on is best used during direct comparison with other brands.

c. Repe

on is a good way of gaining easier retrieval of brand names from consumers’ memory.

d. Repe

on adver sing works well when considering the purchase of parity products.

89. A leading car company pays to have its cars prominently featured in an upcoming movie. The adver sing method used here is called . a. product placement b. an infomercial c. an advertorial d. social disrup on

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Chap 10_8e 90. (Scenario 10‐2) Which of the following is an accurate descrip on of the objec ve that the Yamaha ad was trying to achieve? a. As a humor ad, the Yamaha ad was trying to invoke a direct response. b. As a feel‐good ad, the Yamaha ad was trying to create social meaning. c. As a feel‐good ad, the Yamaha ad was trying to transform a consump on experience. d. As a humor ad, the Yamaha ad was trying to create a pleasant associa on with the brand.

91. Research on the topic of using sex in the ad business generally confirms that sex‐appeal ads can be effec ve when: a. more focus groups and communica on tests are ordered. b. the ad produces enough "heat." c. they emphasize how one looks, feels, and smells. d. the context is appropriate.

92. A group of friends si ng in a bar talk and joke about various beer commercials. One of them describes an ad and they all laugh, and then someone says, “That is one great ad. Who was that for, anyway?” From this scenario, it is clear that the ad about which the friends were talking: a. is not a persuasive ad. b. has used a feel‐good approach. c. generates affec ve brand‐consumer associa on. d. is not really a funny ad.

93. A slogan is a(n) a. visual image

linked to a brand in a memorable way.

b. linguis c device c. emo onal meaning d. tac le sensa on 94. The unique aspect that the product or service adver sed has is known as: a. unique selling proposi on. b. transforma onal adver sing. c. social branding. d. message strategy.

95. What is message strategy? How is it used in adver sing and promo on?

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Chap 10_8e 96. How does the hard‐sell approach aim to create immediate sales? How does it work? What objec ve is this method trying to achieve?

97. There are ten major objec ves of adver sing message strategy. Name and briefly define them, as well as the methods used to reach them. Give a real‐life example demonstra ng two of these objec ves.

98. Name and describe in detail the three primary methods of promo ng brand recall. Give an example of each from familiar ads or commercials. Explain why brand recall is par cularly relevant to the adver sing of "low‐ involvement" goods and services.

99. How and why does anxiety work to sell things? List at least five goods that are likely to be promoted using ads that a empt to change behavior by inducing anxiety, including both generalized anxiety as well as social anxiety. Also, list at least five services that might be promoted using anxiety tac cs.

100. Research has suggested that adver sers should exert cau on when a emp ng to use certain methods of adver sing. List at least two of these methods and, for each method, describe two of the lessons that adver sers can learn from the research.

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Chap 10_8e Answer Key 1. True 2. True 3. True 4. True 5. True 6. True 7. True 8. True 9. True 10. True 11. True 12. True 13. True 14. True 15. True 16. True 17. True 18. True 19. True 20. True 21. True 22. True 23. True 24. False 25. True 26. True

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Chap 10_8e 27. False 28. True 29. True 30. True 31. True 32. True 33. False 34. True 35. b 36. d 37. b 38. b 39. b 40. a 41. a 42. b 43. a 44. b 45. c 46. b 47. c 48. c 49. b 50. b 51. a 52. c 53. b 54. c Copyright Cengage Learning. Powered by Cognero.

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Chap 10_8e 55. b 56. d 57. a 58. b 59. d 60. d 61. b 62. a 63. d 64. a 65. b 66. a 67. b 68. c 69. c 70. a 71. a 72. c 73. b 74. b 75. a 76. a 77. c 78. b 79. d 80. b 81. b 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 10_8e 83. d 84. a 85. c 86. c 87. d 88. c 89. a 90. d 91. d 92. a 93. b 94. a 95. Message strategy involves the tac cs used to determine the goals of the adver ser and to actually create the communica ons intended to reach and persuade the consumer. Message strategy consists of objec ves (what you want to do) and methods (how you plan to do it). It iden fies the goals of the adver ser, and then determines how those goals will be achieved.

96. The idea behind hard‐sell ads is to create a sense of urgency so customers will act impulsively and immediately.

Phrases like "act now" and "one‐ me‐only" characterize this type of adver sing. In most instances, however, consumers have learned to decode and discount these types of messages, which decreases their effec veness.

Despite their drawbacks, they are commonly used in newspaper adver sing. The objec ve of hard‐sell ads is to persuade. They want the customer to buy the brand— now.

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Chap 10_8e 97. The ten objec ves of adver sing message strategy are as follows: To promote brand recall. This is the simplest type of adver sing in existence, with very clear goals—to get consumers to remember a brand name, and to remember it as one of their main alterna ves. Its methods are repe on, slogans and jingles, and point‐of‐purchase branding.

To link a ributes to the brand name. This is the adver sing process that simply brings together in the consumer’s mind certain desirable a ributes and the brand name. The method involves the unique selling proposi on (USP), that is, the idea that the brand emphasizes a unique quality or quali es.

To persuade the consumer. This is high‐engagement adver sing, coming right out and proposing an argument, being direct with informa on and a ributes, and a emp ng to logically convince the consumer of the superiority of a brand. Methods include reason‐why ads, hard‐sell ads, comparison ads, tes monials, demonstra ons, and infomercials.

To create affec ve associa on. This refers to the adver sing that makes consumers feel good about an ad, a brand, and themselves. Methods include feel‐good ads, humor ads, and sex‐appeal ads.

To scare the consumer into ac on. This approach uses a consumer’s personal fears to convince them that a product or service will alleviate these fears. The method used in this approach is fear‐appeal ads.

To change behavior by inducing anxiety. This approach includes techniques that play on low‐level anxie es to create a stronger level of anxiety and then introduce the answer to that problem with a product or service.

Methods include anxiety ads and social anxiety ads.

To define the brand image. These ads express the iden ty, emo onal connec on, or inner meaning of the brand in visual terms that can be quickly grasped. Image ads are the method used in this approach.

To give the brand the desired social meaning. These ads a empt to promote the overwhelming idea that objects have social meaning and are not just things, and that certain objects carry with them a high degree of social status and meaning. Methods include slice‐of life ads, branded entertainment, and product placement.

To leverage social disrup on and cultural contradic ons. These are very sophis cated messages that manage to carry with them the idea that certain brands recognize where the social fabric is frayed, acknowledge this disconnect, and successfully work to bridge that gap. The method used in this approach involves tying brands to social/cultural movements.

To transform consump on experiences. This is the ul mate goal and the highest level of sophis ca on in adver sing, involving ads that have that perfect mix of magic, ming, and social awareness to create an en rely new experience for the consumer. The method involves transforma onal ads.

Student examples may vary.

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Chap 10_8e 98. There are three methods used to promote easy brand recall—repe on of the brand name, use of slogans and jingles, and point‐of‐purchase methods.

Repe on ads play off the no on that things said more o en will be remembered more easily than things said less frequently, and so the brand name is men oned over and over again.

Slogans and jingles rely on linguis c devices to enhance brand name retrieval, such as metaphors, similes, rhyme, meter, and (in the case of jingles) music.

Point‐of‐purchase methods involve in‐store displays that act as instant reminders for brands. These include eye‐ catching visual displays at the store entrances and within store aisles, or within the packaging itself.

Student examples may vary.

Low involvement goods are o en parity goods—such items as soap, laundry detergent, cereal, canned soup. Low‐involvement services might include such ordinary transac ons as film developing and dry cleaning. In the case of low‐involvement goods, the first brand remembered is o en the most likely brand to be purchased—just the recall of a name can drive the purchase decision. Consumers choose from among parity brands, not because of extensive delibera on, but because of name recall and habit.

99. Anxiety is uncomfortable and long‐las ng. People rou nely try to alleviate it or eliminate it with thoughts and behaviors. Adver sers make sugges ons about something that should worry the consumer, then offer an immediate solu on to the problem with their product. So people do end up buying any number of products and services due to conscious or unconscious levels of anxiety.

Goods promoted through anxiety ads might include deodorant, mouthwash, an ‐ bacterial soap, acne medica ons, whitening toothpaste, condoms, dandruff shampoo, hair coloring, vitamins, prescrip on medica ons, or just about any other personal care product. Another category might include cleaning products or germ‐figh ng remedies—sprays, scrubs, and soaps, involving products like glass cleaner, furniture polish, toilet bowl tablets, and the newer an bacterial hand sani zers available today. Other household products such as insect spray and air freshener are promoted this way. Even clothing, accessories, and footwear may be promoted this way, if the tac c involves implan ng a personal worry or social concern.

Services adver sed through anxiety ads might include home security systems, car and home insurance, life insurance, weight loss programs, fitness center memberships, magazine or newspaper subscrip ons, wardrobe consultants, cosme c makeovers, hair care salons, and just about any personal service that may be seen as allevia ng worry or avoiding social embarrassment.

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Chap 10_8e 100. Humor ads: Research suggests that adver sers should use humor with cau on. The goal of humor is to create a pleasant and memorable associa on with the product for the consumer. However, research shows that humorous messages may adversely affect comprehension and can actually interfere with memory processes: the consumer doesn’t remember what brand the ad was for. In addi on, humor can a ract a en on without increasing the effec veness or persuasive impact of the adver sement.

Fear‐appeal ads: Some research also indicates that intense fear appeals actually short‐circuit persuasion and result in a nega ve a tude toward the adver sed product. The research on this, however, is far from conclusive.

The text suggests the use of a moderate level of fear is most successful. Whether or not a fear appeal is successful may also come down to how believable the fear is, and how clearly the escape from this fear is iden fied and explained.

Comparison ads: Extensive research has been done on making comparisons. Among the findings are that (1) direct comparison by a low‐share brand to a high‐share brand increases the a en on on the part of receivers and increases the purchase inten on of the low‐share brand; (2) direct comparison by a high‐share brand to a low‐share brand does not a ract addi onal a en on and increases awareness of the low‐share brand; and (3) direct comparison is more effec ve if members of the target audience have not demonstrated clear brand preference in their product choices.

For these reasons, established market leaders almost never use comparison ads. These ads are almost always used by the underdog brand, the brand that wishes to be seen in the company of the market leader.

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Chap 11_8e Indicate whether the statement is true or false.

1. Dialogue copy on radio may end up sounding dull and dry—just the background drone of normal conversation. To alleviate this, many advertisers use humor as an attention-getting device. a. True b. False 2. The last step in the preproduction stage of television advertising is the selection of location, sets, and cast. a. True b. False 3. Before the day of a shoot, prelight, blocking, and other production factors are checked and adjusted to avoid additional expense during actual filming with on-camera talent. a. True b. False 4. Just like early TV commercials, early cyber ads merely imitated traditional formats and did not seem to understand the new medium, or the ways that the audience would approach this new technology. a. True b. False 5. The three primary visual elements of a print advertisement are illustration, design, and layout. a. True b. False 6. A script is a written version of the television commercial. It controls the flow, coordinates all audio and visual elements, and helps make decisions about location, cast, and schedule. a. True b. False 7. Layout is the term used for the drawing or digital rendering of a proposed print ad that shows where all the elements will be positioned. It allows for various alternatives and options. a. True b. False 8. An agency is creating a new print ad for a whitening toothpaste. While thinking about the new layout, the art director begins by asking his staff for several comps just to see the placement of various elements, and to get an idea of the general presentation. a. True b. False 9. In very large print, centered at the top of a magazine page, is the word COAST; this describes a headline. a. True b. False

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Chap 11_8e 10. One reason why television is such an effective medium for ads is its relatively broad exposure. a. True b. False 11. In a print ad, the subhead serves the same purpose as the headline and can provide additional information not in the headline. a. True b. False 12. Though traditionally the creative team has consisted of an art director and a copywriter, it can also be composed of art directors, additional copywriters, media planners, and account planners. a. True b. False 13. An experienced artist is aware of the different functions of typefaces on a page. Therefore, she saves serif type for the headlines alone, and uses sans serif type for body copy as it is less tiring on the eyes. a. True b. False 14. A man turns on a spigot, splashes hot water into a sink, squirts Joy liquid into a dishpan full of glassware, swirls a cloth around, and brings out sparkling glasses. He then begins talking with someone off-camera about how good the glasses will look for tonight’s party and how great Joy works. The strong visual effect demonstrates that, on television, words do not stand alone. a. True b. False 15. The creative team is guided by the creative brief. a. True b. False 16. After coming to an agreement on the scope and intent of the production, a producer works with the creative team and the advertiser to estimate an approximate total cost of production. In this stage, the budgeting need not be very detailed. a. True b. False 17. The overall visual impact of illustration relies largely on lighting, color, and tone. a. True b. False 18. A storyboard is a shot-by-shot sketch depicting, in sequence, the visual scenes and copy that will be used in an advertisement. a. True b. False

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Chap 11_8e 19. An advertiser and advertising agency are in the phase of approving the script and storyboard of the advertisement they plan on producing. In this instance, they are more likely to be in the copy approval stage. a. True b. False 20. In television advertising, the visual is important only if it is the main feature, not if it plays a supportive role. a. True b. False 21. A Volkswagen print ad shows the headline “Think Small” and a grayscale photo of the round little car in one corner of the ad, surrounded by lots of white space. The overall look and placement of the photo depicting the brand demonstrates the concept of illustration format. a. True b. False 22. There is a need for writing copy for radio and podcast advertising. a. True b. False 23. A print ad for a new wooden floor cleaner shows before-and-after shots of a long hallway that has been cleaned and polished. This is an example of communicating product features or benefits through illustration. a. True b. False 24. A slogan is a short identifying phrase written for multiple forms of media. It is repeated in print and broadcast ads, through salespeople and promotional events, and on company websites. a. True b. False 25. The copy approval process is important. a. True b. False 26. A creative brief helps specify message elements that must be coordinated during the preparation of copy. a. True b. False 27. Each shoot has its own tempo and direction. Advertisers have to accept the pace and decisions made based on lighting, weather, and other factors that make TV production unlike an assembly line production process. a. True b. False 28. In radio spots, the copy should have less focus than any musical pieces; otherwise, the copy can easily overwhelm the persuasive elements of these ads. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 11_8e 29. Consumer generated content (CGC) is produced when the creative team is given lists of suggestions and ideas for promoting the product that have been submitted by the public through emails, letters, or focus group transcripts. a. True b. False 30. The idea of audience is different in digital and interactive media from a traditional audience. a. True b. False 31. Formal balance creates a mood of seriousness or directness. Informal balance actually creates an imbalance; a sense of unease and discomfort, or the feeling that something has gone wrong. a. True b. False 32. The straight-line approach goes along with how the reader will benefit from the use of a brand. a. True b. False 33. As a way to energize the creative process, firms are starting to use crowdsourcing by specifically encouraging customers to offer suggestions. a. True b. False 34. The body copy is the textual component of an advertisement. a. True b. False 35. Balance, proportion, order, unity, and emphasis are the basic principles of design. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

36. (Scenario 11-2) One copywriter presents a spot that is funny, delivers the key selling points, and uses opening music and sound effects representing various elements of the city. You need to get it recorded before sending it to the client. You send it with the young copywriter to a trusted recording studio with the caution that says, "Use sounds effects with care." This means that: a. any added music should be kept to a minimum to avoid irritating the audience. b. the sound effects should not overwhelm the copy. c. one cannot expect to build a musical picture in the listener's mind. d. one should not mix sound effects and music.

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Chap 11_8e 37. Which of the following is a tendency of eye movement that occurs when a person views a print advertisement? a. From left to right, up to down, and from light to dark b. From right to left and dark to light c. From white to color and from small to big d. From right to left and from light to dark 38. (Scenario 11-1) To create successful advertisements for interactive media, Toyota must understand the difference between interactive media and traditional one-way media. Which of the following implications is true of interactive media? a. The audience of interactive media often seeks ads and IBP material online, rather than through traditional media. b. Forms of interactive media have lower rates of recall than forms of traditional media. c. Copywriting of interactive media is of higher quality than that of traditional media. d. There is often less incentive to read interactive forms of media than traditional print media.

39. (Scenario 11-4) The production team is ready to show the client shots from the unfinished project to give an idea of what the commercial will look like. These shots do not include transitions, special effects, or audio, but are merely selections from the first step in postproduction. These excerpts are from the: a. director’s rough cut. b. digital editing. c. audio edit. d. master copy.

40. A copywriter is just starting on a print ad for a new brand of dishwasher detergent. Which of the following is the first step in developing copy for print? a. Sketching an overall view of the finished ad b. Meeting with the creative director to brainstorm a list of exciting words to be included c. Deciding how to use, or not use, the three main components of print copy d. Writing a few rough headlines and possibly subheads 41. The principles of design suggest that: a. there should be a unifying force within the ad. b. the components within an advertisement should be ambiguous. c. all elements of the ad should be equally emphasized. d. it should be formally imbalanced.

42. (Scenario 11-3) The superimposed words that end the spot—"Ivory is Mildest. Bar none."—could be considered Ivory's slogan. Which of the following is an important function of a slogan like this? a. Providing unity and order to the ad b. Motivating the viewer to buy the product c. Increasing memorability of the key benefit of the brand d. Entertaining or amusing the viewer

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Chap 11_8e 43. In which of the following orders does an ad layout typically progress through standard stages during its development? a. Rough draft, comp, thumbnail, final mechanical b. Thumbnail, rough layout, comp, final digital c. Mechanical, rough draft, thumbnail, final comp d. Thumbnail, illustration layout, rough layout, final mechanical 44. Which of the following is important in copywriting for television and video? a. Longer writing helps communicate complex brand features. b. Copy should be precisely coordinated with visuals. c. Copy should facilitate processing the information quickly. d. Copy should lack the ability to communicate details.

45. A subhead for a Michigan resort ad reads, “Michigan’s Oldest Resort. In the Woods. On the Cliffs. At the Beach. Location, Location, Location. Best Location on the Lake for the Past 130 Years.” This copy fulfills the basic job of the subhead, which is to: a. speak directly to readers with sound advice about the brand. b. target a specific demographic group to consider the brand. c. add key selling points about the brand. d. promote a good feeling about the brand.

46. A print ad being developed for a women’s clothing line shows the headline font, the images, and the actual body copy to allow the client to imagine the ad and give approval. This is known as a _______. a. thumbnail b. comprehensive layout, or comp c. sans serif layout d. rough layout 47. Which of the following is the main challenge of the copywriter? a. Combining visuals to create a unified whole b. Writing copy that is effective even if it is “off creative strategy” c. Extracting ideas from art d. Creating the mood, tone, or humorous angle that gives the product real value 48. For social media, copywriting for ________ is most relevant. a. digital/interactive media b. radio c. postproduction review d. developmental copy research

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Chap 11_8e 49. When analyzing the various elements of type, the _________ refers to the size of the type in height. a. typeface b. font c. point d. serif 50. Which of the following are the five techniques used in preparing body copy? a. Celebrity, narrative, slogan, straight-line, and teaser b. Social, multicultural, response, evaluative, and dialogue c. Straight-line, dialogue, testimonial, narrative, and direct response d. Testimonial, narrative, evaluative, developmental, and thumbnail Scenario 11-3 A 30-second TV spot for Ivory Soap begins with a strip of yellow litmus paper being lowered into a bottle of household cleaner. Music plays in the background. The words "You Probably Know This—Litmus Paper Measures Alkalinity" are superimposed on the bottom of the screen. The litmus paper is removed, and it has turned a dark blue-green color. "You Probably Know This—The Darker, The Harsher" is then superimposed. A series of cuts reveals litmus paper being lowered onto different bars of wet soap. In each case, the strip turns a dark color. The brand name of each bar of soap is superimposed underneath. Finally, litmus paper is lowered onto a bar of Ivory soap. The paper remains yellow. Three super impositions appear in succession: "Ivory," "Ivory is the mildest," and "Bar none."

51. (Scenario 11-3) A copywriter came up with the idea to superimpose the words, "You Probably Know This —Litmus Paper Measures Alkalinity" and "You Probably Know This—The Darker, The Harsher." Considering the nature of this ad, which general guideline for television copywriting does this follow? a. Using active words b. Providing support for the unbelievable c. Emotionally involving the reader d. Using unfamiliar words 52. Which of the following refers to the term audio wallpaper? a. The incorrect choice of broadcast media for the message to be delivered b. The spoken or musical formats commonly used in broadcast ads c. The use of radio or a podcast as unobtrusive background or filler d. The creative plan for TV or radio that lacks any real creative thought 53. Which of the following is a difference between interactive and noninteractive media? a. Interactive media are less user-directed, while noninteractive media are more user-directed. b. In interactive media, the audience has less incentive to read copy, while in noninteractive media they have more incentive. c. Most interactive media copy is indirect response, while all noninteractive media is direct response. d. In interactive media, the audience is more likely to seek out the ads, while in noninteractive media, they are not.

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Chap 11_8e 54. Sometimes it is a smart idea when an ad: a. uses an opposite approach to research. b. has a series of conflicting headlines. c. lacks art/copy and a brand. d. focuses on functional features.

55. The director may want to work with the on-camera talent along with the camera operators to practice the positioning and movement planned for the ad. This work is known as _______. a. shooting b. packing-up c. blocking d. placing 56. (Scenario 11-2) One copywriter shows you an idea that involves an announcer reading a top-ten list of cool reasons to visit Milwaukee. Which of the following basic guidelines of radio copywriting does this technique address? a. Repeating the brand name b. Stressing the main selling points c. Stimulating the imagination d. Tailoring copy to a time, place, and audience 57. An account planner is added to many creative teams to: a. handle media placement in an increasingly sophisticated market. b. gather research that gives the consumer a voice. c. watch the bottom line and monitor spending of advertising dollars. d. assist the account executive in connecting creatives to clients.

58. (Scenario 11-2) Last week, you met with your copywriters and reminded them of the various options they have in writing for radio. What are the four basic formats available to them in creating a radio ad? a. Announcement, testimonial, reason-why, and hard-sell formats b. Sound effect, jingle, slogan, and disc jockey formats c. Music, dialogue, announcement, and celebrity formats d. Information, entertainment, persuasion, and testimonial formats 59. (Scenario 11-1) The account executive for a campaign such as this is adamant that the copy be tested before he even submits it to the client. He is looking for audience reaction and interpretation of the proposed copy known as _____ copy research. a. illustrative b. developmental c. continual d. evaluative

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Chap 11_8e Scenario 11-5 A hospital is attempting to change its image. In the past, the hospital has been perceived as having a high degree of expertise across all medical services, but also as having a cold and unfeeling atmosphere. This has resulted in the hospital losing business in situations where patients feel that a procedure is simple enough that any hospital can perform it equally well. The decision is made to hire a local advertising agency. The agency’s creative director meets with the hospital marketing director to develop a creative brief. It focuses on print ads for local newspapers and regional magazines, and states that advertising for the hospital must create feelings of caring and warmth, without explicitly stating that the hospital “cares”—a tactic that has been used again and again by other medical institutions.

60. (Scenario 11-5) The art director for this campaign needs to convey a particular mood, a feeling of warmth and serenity, in this ad illustration. While all of the elements below may have some impact on the illustration, she should pay particular attention to the: a. size of the illustration within the layout. b. lighting, color, tone, and texture of the illustration. c. space taken by the body copy. d. magazine and newspaper vehicles in which the ad will run.

61. (Scenario 11-3) To make sure that all the words and visuals of this TV spot work together, the creative team would have begun this campaign by preparing a ________. a. working script b. storyboard c. fact sheet d. thumbnail 62. (Scenario 11-1) Toyota is designing its print media advertisements. It decides to use the least complex copy technique to highlight the urgency of acting immediately. Which of the following copy techniques is Toyota most likely to choose? a. Direct response copy b. Narrative c. Dialogue d. Straight-line copy 63. Which of the following is true of the production stage of the television advertising process? a. It can include some final preparations such as lighting checks and rehearsals. b. It involves creating the shot-by-shot sketch depicting the visual scenes that will be used in an advertisement. c. It is that stage at which the advertiser estimates the cost of the shoot and required paraphernalia. d. It mostly involves the assessment of directors and music suppliers to be chosen for the shooting.

64. Type fonts are seen in _______ basic typeface groups, all with different personalities. a. two b. one hundred c. six d. twenty Copyright Cengage Learning. Powered by Cognero.

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Chap 11_8e 65. A copywriter not only has to fulfill all the responsibilities of proper information inclusion based on creative platform and strategy decisions, but also has to: a. carefully fit all the information within, between, and around the display. b. sell the product and entertain the audience. c. tell the same story with the audio and the video. d. ensure that the consumer has a voice in the creative planning.

66. Which of the following is considered the most crucial design element that brings harmony to all components on the page? a. Order b. Unity c. Balance d. Color 67. Body copy based on the _______ approach explains in a straightforward way why a reader will benefit from

the use of a brand. a. straight-line copy b. direct response c. narrative d. dialogue 68. Which of the following is true of a body copy? a. It consists of fewer words than the subhead. b. It is the visual component of an advertisement. c. It tells a complete story of a brand. d. It is more likely to be read by people than the headline and subhead.

Scenario 11-1 After a series of public relations setbacks, Japanese automaker Toyota unveiled a new company slogan in 2010.

The slogan read, "Drive a Toyota. You'll never stop." The company hoped the new slogan would once again instill confidence in consumers, many of whom had grown weary of the brand after a number of massive recalls. The company chose to go with the slogan after turning down a number of others, including, "Toyota Puts the Pedal to the Metal. And keeps it there," and "Toyota. The Last Car You'll Ever Drive." The new slogan was featured in all of the company's advertisements.

69. (Scenario 11-1) To create ads featuring the new company slogan, Toyota assembles a creative team of individuals who will focus solely on designing the new advertisements. Toyota realizes that it will need to have a strong Internet and social media presence. In order to effectively utilize these outlets, Toyota should consider hiring a(n): a. production coordinator. b. media planner. c. advertising guru. d. copywriter.

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Chap 11_8e 70. (Scenario 11-4) The first cut of the ad is attractive, touching, cute, and just humorous enough. When an audience tests it, most viewers really like the dogs, the visuals, and the music, but they don’t remember the product. Which of the following creative guidelines for television was forgotten? a. Persuading as well as entertaining b. Avoiding humor whenever possible c. Maintaining a feeling of continuity d. Showing the brand 71. Color is often effectively used in advertising illustrations to: a. construct an axis. b. create a mood. c. prevent scrutiny of a product’s functions. d. get a universally recognized reaction.

72. The most important function in the first few seconds of a television commercial is to: a. stress the audio—then the viewer will follow up with the visual. b. get the name out—so the viewer can establish recall at the outset. c. establish the benefit—otherwise the viewer will quickly lose interest. d. get attention.

73. Art production for digital advertising—particularly those composed of headline, body copy, and illustration—most closely resembles production of advertising for _________. a. radio b. layout c. packaging d. print and broadcasting 74. Shortly after an agency agrees to create a new campaign for a well-known cleaner, a creative brief needs to be put together. A creative brief is important because it: a. pulls together initial ideas for copy, visuals, media, and overall concept from various team members. b. acts as the checkbook and the balance sheet to keep expenses on track. c. gets the creative team started with a list of suggested ideas from the client. d. is produced based on brainstorming by all agency and client staff involved in the campaign.

75. (Scenario 11-5) Once she has a rough draft, the art director has to admit that it is a really great-looking ad. All the elements hang together and work with each other, and the overall feel is harmonious and peaceful. She clearly understands the principle of _________. a. balance b. unity c. order d. proportion

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Chap 11_8e 76. An ad uses backlighting and low-angle shots along with a dramatic use of color. Which of the following is the goal in this ad? a. The product is set in a test situation. b. The brand is seen in a social context. c. The brand is portrayed as heroic. d. The product is used by a typical consumer.

77. (Scenario 11-5) One thing that the art director has learned is that ads should lead the reader’s gaze in a logical path that includes the brand name. Which of the following elements of design does this involve? a. Order b. Proportion c. Balance d. Unity 78. The whole purpose of good body copy is to: a. be funny. b. pull together the headline, subhead, and visuals. c. give all the possible reasons to buy the brand. d. tell a more complete story of the brand.

79. (Scenario 11-3) Which of the following guidelines for copywriting (as well as for radio copy and digital/interactive copy) is most strongly demonstrated by this spot overall? a. Emphasizing the brand name b. Making the slogan a major component of the ad c. Constructing an axis d. Keeping the wording short and to the point 80. ________ can save a lot of time on a shoot day when many more costly personnel are on the set. a. Prelighting b. Budgeting c. Blocking d. Scripting 81. A guideline for television or video is to: a. emphasize the visual and reinforce it with the audio. b. avoid use of the audio when showing a key visual. c. let the audio tell the full brand story. d. allow the visual to establish the tone and the audio to sell the benefits.

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Chap 11_8e 82. A fashion advertiser decides to create a print advertisement instead of advertising on television. Print is _____, though the product can be presented in an “action” scene with a series of illustrations.

a. dynamic b. media buying c. a design d. static 83. Probably the most straightforward illustration is one that: a. attracts the target audience. b. stimulates copy readership. c. creates a mood. d. communicates features or benefits or both.

84. (Scenario 11-5) One last thing that she recommends to the client involves her choice of a particular element from among hundreds of options. She admits she has agonized over her selection on this because it affects not only readability, but also sets the mood and tone of the overall visual impression. She is most likely talking about the _______. a. illustration format b. layout c. typeface d. color 85. Unlike print ads, digital content: a. has a very limited reach. b. uses only written words. c. changes almost instantly. d. appeals to the older generation.

86. A copywriter is deciding on the best approach for a social media ad featuring a beauty cream, and has narrowed down her options to two types—testimonial or dialogue. Which of the following is a major difference between a testimonial and a dialogue? a. A testimonial approach is written by the spokesperson, while a dialogue approach is written by the copywriter. b. A testimonial approach is one-sided, while a dialogue approach has two people conversing. c. A testimonial approach uses the hard-sell method to push the product, while a dialogue approach uses the image method to create a social setting. d. A testimonial approach emphasizes product benefits, while a dialogue approach emphasizes image.

87. Copywriting for digital/interactive media: a. involves methods the same as those of other media. b. means something significantly different than it does in traditional one-way media. c. has been influenced by its background in linguistics. d. tends to be static and unchanging.

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Chap 11_8e 88. A television commercial for a food product is in production. Who among the following would be responsible for handling the script, interpreting the storyboard, managing the talent, and dealing with the cameras, lighting, and set? a. The director b. The producer c. The media planner d. The account executive 89. (Scenario 11-4) One of the ideas in an early brainstorming session was to start the Happy Heart Hound commercial with a quick series of adorable, playful puppies wearing heart-shaped sunglasses. Which of the following guidelines for effective television advertising does this hope to demonstrate? a. Showing the brand b. Coordinating the audio and the visual c. Using an attention-getting opening d. Emphasizing the audio Scenario 11-4 You are a production assistant working on a 30-second television spot for Happy Heart Hound, an all-natural gourmet dog food for puppies. The client wants to emphasize the healthful ingredients as well as the "happy and fun-loving" nature of the product.

90. (Scenario 11-4) This television shoot involves a lot of people and is a complex, collaborative effort. Who among the following is most likely to be in charge of the set? a. The film director b. The account executive c. The chief creative d. The agency producer 91. Some top brands like Ford, Visa, and L’Oréal have slogans, or short phrases, to help establish: a. that the product actually has little difference in its effect. b. more opportunities for creative copy. c. unlimited options for visual elements but few for verbal elements. d. an image, identity, or brand position.

92. An example of radio spot copy is “Like a good neighbor, we are here.” Which of the following guidelines for successful radio copywriting is being used in this ad? a. Use common, familiar language b. Use attention-getting sounds c. Repeat the brand name many times d. Give news about the brand

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Chap 11_8e 93. Which of the following elements of advertising involves the structure itself and the plan behind the structure? a. Layout b. Design c. Copy d. Illustration 94. (Scenario 11-5) The art director thinks about the layout and reminds herself of a widely held belief in the world of art production—that a larger size in an ad illustration typically means: a. greater reader attention. b. higher brand sales. c. lesser brand importance. d. weaker copy.

95. (Scenario 11-1) A slogan can be an integral part of a brand’s image and personality, but it can serve other purposes as well. One of these purposes could be to: a. develop the idea presented in the headline. b. entice the audience to look at the visual. c. provide continuity to an entire campaign. d. close the sale.

96. The creative potential of __________ rests in its ability to stimulate a “theater of the mind,” which allows a copywriter to create images and moods for audiences. a. social media b. television c. radio d. print 97. A headline is effective if it: a. makes a strong emotional appeal. b. conveys information not included in the body copy. c. restates the ideas found in the visuals. d. motivates readers to move on to the rest of the ad.

98. Which of the following is necessary due to the fleeting impression that radio makes, particularly if the location of a business is included? a. Music b. Repetition of the brand name c. Imagination d. Brevity

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Chap 11_8e 99. Which of the following terms identifies the visual line, real or imagined, that runs through an ad and organizes all elements? a. Serif b. Axis c. Thumbnail d. Gaze motion 100. (Scenario 11-4) In which of the following roles has the producer been involved with during the preproduction process for this commercial? a. Approving the storyboard and script, and soliciting bids from production houses b. Coordinating the camera operators, and handling the cast during shooting c. Conducting research, and informing all concerned about consumer preferences d. Acting as liaison between client and agency, and buying television airtime 101. An advertisement for a Michigan resort features the headline, "Endless Coast. Endless Sand. Endless Sunset. Endless Time. Lighthouse Harbor Lodge.” The primary purpose of this headline is to: a. identify the brand. b. establish a tone or emotion. c. select the audience. d. give advice to the reader.

Scenario 11-2 You are the creative director at a Milwaukee ad agency. Today, your copywriters are presenting you with their ideas for several thirty-second radio spots for the City of Milwaukee Tourism Bureau. The Bureau wants to feature its own information center and tours, city museums, art galleries, concerts, festivals, and special events.

When they are ready, the best ideas will be taken to the marketing director of the City of Milwaukee for review and approval.

102. (Scenario 11-2) Before the copywriters present, you want to familiarize yourself with the details of the campaign once again. You review a copy of the creative brief because you know it: a. contains the best ideas used by competitors of the client. b. is the channel that will carry the ad campaign’s message to the public. c. represents the unique thought behind the ad campaign. d. lists the rules, restrictions, and limitations for the ad campaign as dictated by the client.

103. An account planner: a. is more likely to suggest the idea for the visuals. b. comes up with the headline or tag line. c. keeps the profile of the target consumer in the team’s mind. d. is responsible for the actual production and is usually in charge on set.

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Chap 11_8e 104. What are the five principles of design? Choose two of the principles and discuss the considerations involved in each. Then give an example of each.

105. What are the differences between writing advertising copy for print media and for broadcast media? What unique challenges does writing for broadcast media hold, and how does writing for interactive or digital media fit into this?

106. Define and explain the three main visual elements of print and often digital/interactive advertisements. What is the primary purpose of each?

107. Explain the advantages of copywriting in print media, and list the disadvantages of copywriting for television advertising.

108. Explain why producing a television commercial is an extremely expensive undertaking. Describe a television commercial that you have seen recently. Analyze it in terms of how it meets or fails to meet two of the five primary creative guidelines for television ad production as noted in the text.

109. List the main members of an advertising agency's creative team? Consider how they are assigned tasks in producing written, audio, and visual elements of ads. Briefly describe these roles and responsibilities.

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Chap 11_8e Answer Key 1. True 2. True 3. True 4. True 5. True 6. True 7. True 8. False 9. True 10. False 11. True 12. True 13. False 14. True 15. True 16. False 17. True 18. True 19. False 20. False 21. True 22. True 23. True 24. True 25. True 26. True

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Chap 11_8e 27. True 28. False 29. False 30. True 31. False 32. True 33. True 34. True 35. True 36. b 37. a 38. a 39. a 40. c 41. a 42. c 43. b 44. b 45. c 46. b 47. b 48. a 49. c 50. c 51. b 52. c 53. d 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 11_8e 55. c 56. b 57. b 58. c 59. b 60. b 61. b 62. a 63. a 64. c 65. a 66. b 67. c 68. c 69. b 70. d 71. b 72. d 73. d 74. a 75. b 76. c 77. a 78. d 79. d 80. c 81. a 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 11_8e 83. d 84. c 85. c 86. b 87. b 88. a 89. c 90. c 91. d 92. a 93. b 94. a 95. c 96. c 97. d 98. b 99. b 100. a 101. b 102. c 103. c

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Chap 11_8e 104. The five principles of design as discussed in the text are balance, proportion, order, unity, and emphasis. Student examples will vary.

Balance evokes orderliness and compatibility within an ad. It can be formal or informal. Formal balance emphasizes symmetrical presentation and creates a mood of seriousness and directness. It is orderly and easy to follow. Informal balance emphasizes asymmetry—the optical weighing of different sizes and shapes. Components of different size, shape, and color are precisely arranged in a more complex relationship.

Proportion has to do with the size and tonal relationships between different elements in an advertisement. Proportional considerations include: the width of an ad in relation to its depth; the width of each element in the ad in relation to the depth of each element; the size of one element relative to the size of every other element; the space between two elements and the relationship of that space and a third element; and the amount of light area as opposed to the amount of dark area. Ideally, factors of proportion vary so as to avoid monotony in an ad.

Order in an advertisement is also referred to as sequence or, in terms of its effects on the reader, “gaze motion.” In focusing on order, the designer's goal is to establish a relationship among elements that leads the reader through the ad in some controlled fashion. The essential contribution of this component is to establish a visual format that results in a focus or several focuses.

Unity attempts to ensure that the elements of an advertisement are tied together and appear to be related. Unity results in harmony among the diverse components of print advertising—headline, subhead, body copy, illustration, and any other elements. Several design techniques contribute to unity, including the use of a border and white space. The axis or axes of the ad also contribute to unity. Other considerations of unity are whether the design uses a three-point structure or a parallel layout structure. Emphasis is the result of a decision as to which major component of an advertisement will be stressed. The key to good design relative to emphasis is that one item is the primary focus, but not the only focus, in an ad. Usually, if one element is emphasized to the total exclusion of the others, then a poor design has been achieved, and ultimately a poor communication will result.

105. Writing for print is quite straightforward. The copywriter must review components of the creative plan so as to take advantage of and follow through on the marketing and advertising strategies specified and integral to the brand's market potential. In preparing copy for a print ad, the copywriter must decide how to use the three separate components of print copy: the headline, the subhead, and the body copy. Writing copy for broadcast media should begin in the same way that writing copy for print media begins. However, writing for broadcast ads does have its differences. The audio and audiovisual capabilities of radio and television provide different opportunities for the copywriter. On radio, the use of sound effects, musical pieces, and voices offer many creative possibilities. On television, the ability to combine copy with color and motion provides vast and exciting creative options. In either medium, the copywriter must be cautious not to use these effects in a way that could distract the listener or viewer from the copy of the advertisement. Also, broadcast media, as opposed to print media, does not provide the opportunity to communicate long, complex messages about brand features. Unlike print materials that can be read at leisure and viewed again and again. Broadcast media, particularly radio, work in short exposure time frames.

Writing for digital or interactive ads is somewhat similar to writing for print. However, there are differences. Audiences approach these ads in a much different way—they seek out the ads, at least to a point, rather than having ads presented to them. There is no time restriction for viewing the ads, similar to print, and very much unlike broadcast.

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Chap 11_8e 106. The three primary visual elements used in ads are illustration, design, and layout.

Illustration involves drawings, paintings, photos, or computer-generated art. It has six purposes—to attract the attention of the target audience, make the brand heroic, highlight features or benefits, encourage a mood or image, stimulate reading of the body copy, or create a social context for the brand.

Design is "the structure itself and the plan behind that structure" for the aesthetic and stylistic aspects of a print advertisement. The goal of design is to arrange all the components of an advertisement—the illustration, headline, body copy, slogan, and any other features—so that the ad is easy to read and visually pleasing.

Layout is the mechanical aspect of design. It is a drawing of a proposed advertisement showing where all the elements will be positioned. A layout can be thought of as the tool the designer uses to achieve a good design. As the production process progresses, layouts move from thumbnails to rough layouts to comps and then to finalized digital ads ready for the printer or Internet site.

107. The audio and visual capabilities of television and video offer different opportunities for a copywriter. Compared to print media, however, video media have inherent limitations for a copywriter.

In print media, a copywriter can write longer and more involved copy to better communicate complex brand features.

Print media provides a copywriter the time and space to communicate details, complete with illustrations. In addition, the printed page allows a reader to dwell on the copy and process the information at a personalized, comfortable rate.

Television’s inherent capabilities do much to bring a copywriter’s words to life. But the action qualities can create problems. Firstly, the copywriter must remember that words do not stand alone. Visuals, special effects, and sound techniques may ultimately convey a message far better than the cleverest turn of phrase. Second, television commercials represent a difficult timing challenge for the copywriter. It is necessary for the copy to be precisely coordinated with the visuals. If the visual portion was one continuous illustration, the task would be difficult enough.

Contemporary television ads, however, tend to be heavily edited and the copywriting task can be a nightmare. The copywriter not only has to fulfill all the responsibilities of proper information inclusion but also has to carefully fit all the information within, between, and around the display.

108. The number of people involved in the making of a television commercial is very large, and many of them are highly skilled. A production crew may charge anywhere from $5,000 to $10,000 per day. Equipment fees also figure into the often staggering cost of producing a spot. Travel, lodging, casting, and overtime costs, often within short timetables, increase the price of production.

Specific examples of commercials will vary, of course, depending on the television spot described. However, the student’s answer should touch on some of the issues noted above regarding expenses, and should outline the extent to which the commercial meets at least two of the following guidelines: First, does it use an attention-getting and relevant opening?

Second, does it emphasize the visual?

Third, does it coordinate the audio with the visual?

Fourth, does it persuade as well as entertain?

Fifth, does it do a good job of showing the product?

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Chap 11_8e 109. Copywriting and Art Production: Creative director (CD). The creative director manages the creative process for the client. The main role of the CD is to oversee the creative product of an agency across all clients.

Art director (AD). The art director and the copywriter work together to develop the concept for a broadcast or digital/interactive ad. Art directors, with their specialized skills and training, coordinate the design and illustration components of the ad. The AD either oversees the production of the television storyboards or actually constructs the storyboards. In addition, the AD works with the film director who shoots the commercial to develop the overall look of the spot.

Copywriter. The copywriter is responsible for the words and phrases used in an ad, whether it is print, broadcast, or digital/interactive in format. In print, these words appear on the page as headline, subhead, body copy, and slogan/tagline. In television and radio advertising, these words and phrases appear as a script from which the film director, creative director, and art director work during the production process.

Media planner. The media planner keeps up with the latest technological advances in digital and interactive media, as well as all other forms. The media planner makes sure what is done for television is consistent with that done for other media within the campaign. This person often focuses on pinpointing and understanding the latest media formats available, such as social networks, mobile markets, brandscapes, etc. Account planner. The account planner is often a research expert who knows how to seek out information, obtain data, do surveys, and use secondary sources to understand target markets. This person makes sure the consumer’s values and interests are represented, and brings the consumer voice to the table.

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Chap 12_8e Indicate whether the statement is true or false.

1. A 30-second television ad is an example of pull media. a. True b. False 2. In the context of audience exposure to a media vehicle, increasing the frequency of exposures results in an increased reach of the target audience. a. True b. False 3. A retailer selling books runs its print ads in a newspaper during the first week of October, the first week of November, and the week of Thanksgiving. The retailer is using a between-vehicle media strategy. a. True b. False 4. The financial advantages of flighting are that discounts might be gained by concentrating media buys in larger blocks. a. True b. False 5. In a real world scenario, the overall development of the advertising plan takes place before the media planning process. a. True b. False 6. Smart brands focus on the synergy of traditional media advertising and social media interactions. a. True b. False 7. A media class refers to a broader category of media than a media vehicle. a. True b. False 8. The forgetting function explains that people’s forgetting is fairly predictable. a. True b. False 9. CPM (cost per million) is a measure of the dollar cost of reaching a million audience members with a particular medium. a. True b. False 10. In social media, the brand–consumer relationship is the only important relationship. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 12_8e 11. The number of people or households that will be exposed to a media vehicle at least one time during a particular period is referred to as reach. a. True b. False 12. Geo-targeting is defined as the expansion of media placement beyond certain regions or national borders and into diverse cultures and global markets. a. True b. False 13. In pull media, the consumer goes looking for the advertiser or advertising. a. True b. False 14. With the merger of movies, music, gaming, and other entertainment, media planning no longer involves numbers, schedules, and deadlines. a. True b. False 15. Media buying has become more automatic, or programmatic. a. True b. False 16. Television and digital media overall have good reach. a. True b. False 17. Media vehicles with broad reach are ideal for consumer convenience goods, such as toothpaste and cold remedies. a. True b. False 18. Creating a visual representation of the media schedule or plan gives an advertiser tangible documentation of the overall media plan. a. True b. False 19. Market and advertising research determines that certain media options hold the highest potential for shaping the consumer behavior of the target audience. a. True b. False 20. Message impressions are the opposite of exposures to the ads themselves. a. True b. False

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Chap 12_8e 21. A media planner can mix traditional and digital/social media. a. True b. False 22. There is measured and unmeasured media. a. True b. False 23. Product placement is the most expensive and compelling approach for clients seeking branded entertainment opportunities. a. True b. False 24. Advertisers calculate the level of brand conversations on the Internet and social media. a. True b. False 25. Programmatic media buying refers to automatic buying of ads based on data such as online consumer behavior. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

26. A ___________ specifies which media will be utilized for advertising messages so that the desired target audience can be reached. a. media class b. media plan c. media vehicle d. media mix 27. (Scenario 12-1) Share of voice of a company can be calculated to: a. the essential good mentions–bad mentions about a particular brand or product. b. understand the strengths and weaknesses of competitor's products. c. determine a brand’s share of product category spending on a particular advertising medium. d. assess the threats in a particular market.

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Chap 12_8e Scenario 12-4 You scan job advertisements available in Dallas on craigslist.com and find what may be your dream job. The posting reads, "Entry-level position in media." You click on it, and the ad says, "Motivated individual sought to aid in media planning and buying at an established advertising agency. Must have general knowledge of the media and be aware of the current challenges media buyers are likely to face. Salary negotiable." You email your resume and cover letter to the contact person in the ad, and you receive a response setting you up for an interview next week.

28. (Scenario 12-4) The interviewer welcomes you, allows for initial introductions, and then starts the interview. "We have a client that manufactures ebony furniture. Recently, it has launched a new line of furniture and we plan to promote its new line through a media vehicle. According to you, which should we use to promote the line?" a. Network TV b. Newspapers c. Newsweek d. Syndicated TV 29. (Scenario 12-3) Champion Chocolate wants to advertise throughout the year but promote its products more rigorously during the holidays. Thus, its advertising schedule is reflective of a _________ strategy. a. net promoting b. continuity c. pulsing d. flighting 30. A retailer decides to use television ads to promote its line of men’s and women’s swimwear. In the media planning process, the retailer has chosen a(n): a. interactive media. b. media class. c. media vehicle. d. media mix.

31. (Scenario 12-4) The interviewer says that it's very important to calculate the effective reach of each ad in order to make it effective and then asks you, "Can you tell me how the effective reach of an ad can be calculated?"

Which of the following should be your response? a. “By finding the number of consumers in a target audience that are exposed to an ad some minimum number of times.” b. “By measuring the dollar cost of reaching 1,000 members of an audience using a particular medium.” c. “By calculating the total number of essential good mentions against the total number of bad mentions about a brand.” d. “By measuring an ad’s brand expenditures relative to the overall spending in a product category.”

32. Commercial research firms can provide advertisers with an evaluation of a brand’s relative strength within: a. competitors. b. demographic segments. c. leveraging data. d. search behavior.

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Chap 12_8e 33. (Scenario 12-5) “Are smaller print ads okay? Or are you a firm believer of the ______, that is, increased size means increased recognition?” a. square root law b. net promoter score c. forgetting function d. message weight 34. A client agrees to run heavy advertising for two weeks, followed by no advertising at all for a while, and then again having a two-week period of heavy advertising. What kind of a media schedule is this? a. Seasonal b. Flighting c. Continuous d. Pulsing 35. If an advertisement placed on the network television program is watched at least once by 10 percent of the advertiser’s target audience, then the _________ is said to be 10 percent. a. reach b. frequency c. scope d. class 36. (Scenario 12-5) “Is there a national media ______, such as USA Today, Time, or the Wall Street Journal, that you would like to consider using to communicate with your customers?” a. vehicle b. class c. reach d. mix 37. Which of the following is true of geo-targeting? a. They offer information solely on demographics. b. They refer to collecting information primarily from social networking sites and search engines. c. One of its drawbacks is that they ignore data related to purchase size and purchase frequency. d. It is the placement of ads in geographic regions where higher purchase tendencies for a brand are evident.

38. (Scenario 12-2) The owners of an oak furniture company want to know the approximate number of people who will be exposed to the ad if they decide to place an ad in the magazine. Which of the following are they referring to? a. Reach b. Scope c. Dimension d. Frequency

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Chap 12_8e 39. (Scenario 12-2) Each medium under consideration in a media plan must be scrutinized for the efficiency with which it performs. In other words, an advertiser might select American Life because it delivers messages to the largest target audiences at the lowest cost. Which of the following helps measure this? a. Net volume b. Price/cost transparency c. Cost per thousand d. Net promoter score 40. (Scenario 12-3) To calculate the reach of their product, the company's media planners begin calculating gross impressions. To do so, they would calculate: a. the sum of exposures to the entire media placement in the media plan. b. add the figures of between-vehicle duplication and within-vehicle duplication. c. the gross number of media vehicles used in a schedule. d. the total number of times an individual in a target audience is exposed to a message.

41. Share of voice is a calculation of any one advertiser’s brand expenditures relative to the: a. overall spending in a category. b. total revenue generated by competitors. c. reach of several media vehicles. d. frequency of its ads.

42. Which of the following is true of upfronts? a. It is increasing in popularity and will gain twice as much popularity within the next decade. b. It is a television programming ritual conducted in the fall each year. c. It is a period where the television networks reveal their fall line-ups and presell advertising on them. d. About 25 percent of prime-time television advertising is bought in upfronts.

43. (Scenario 12-1) A new line of Blackberry Valley jams is being launched. Its agency’s media planner calls two consumer research companies—Mediamark Consumer Research and BehaviorScan— and asks for data before placing ads for the new products. Mediamark Research and Information Resources will be furnishing information on: a. the environmental laws that the company needs to follow in order to produce the jam in a sustainable way. b. the brand preferences, purchasing habits, and purchase size of customers. c. the additional features that the company's products have in comparison with products of their competitors. d. the different ways in which production processes can be made more efficient.

44. (Scenario 12-5) “Do you want to restrict your television buying to _______, meaning you’ll pay premium pricing charged in advance of the fall season? Or are you willing to wait and see what is still available later in the season?” a. gross impressions b. unmeasured media c. upfronts d. context effects

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Chap 12_8e 45. (Scenario 12-3) Champion Chocolate is assessing the effective frequency for its line of chocolates. This refers to the number of times: a. consumers purchase the company's products. b. consumers act as brand ambassadors and discuss about the brand or its products with prospective customers. c. the city media vehicle must carry the ad message to break through the advertising clutter. d. the target audience must be exposed to the ad message before the objectives of the advertiser are met.

46. The blend of different media that will be used to effectively reach the target audience is called the: a. media mix. b. media objective. c. big data. d. media vehicle.

Scenario 12-2 When advertisers consider running ads in American Life magazine, they have the option of buying geographic and demographic editions as well as the national edition. For instance, they can choose from editions targeted at professionals and managers, homeowners, working women, and people aged 50 and older. In addition, they are offered editions for 8 geographical regions and for the top 20 metropolitan areas. American Life also offers multiple-page discounts for advertisers buying four or more consecutive pages in any one edition, as well as other volume discounts.

The basic rate to reach 2,847,600 readers in its national edition with a full-page, four-color advertisement is $91,300.

The basic rate to reach the same number of 2,847,600 nationwide readers with a single-column, black-and-white ad is $31,300.

47. (Scenario 12-2) A media planner working for a high-end clothing retailer looks at its sales figures and discovers that a vast majority of its sales generated are from large cities. She decides to buy space in American Life editions that reach the top 10 metropolitan markets. This media strategy is referred to as: a. geo-targeting. b. flighting. c. pulsing. d. share of voice.

48. (Scenario 12-5) “Which media __________, such as television, radio, newspaper, magazine, or Internet, do you think would best communicate with your potential customers?” a. plan b. class c. vehicle d. program

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Chap 12_8e 49. A media buyer places an ad for a new range of wines in four different magazines. The first magazine provides roughly 3,600,000 exposures, the second magazine provides about 950,000 exposures, and the third and fourth provide 100,000 exposures each. The buyer now can inform the client at the winery of ___________ expected for the ad, that is, 4,750,000 exposures. a. continuous schedules b. geo-targets c. share of voice d. gross impressions 50. Which of the following refers to the sum of the exposures to the entire media placement in a media plan? a. Gross impressions b. Single-source c. Big data d. Micro-target 51. The media term most related to exposure to a media vehicle or schedule is: a. reach. b. frequency. c. class. d. scope.

52. Which of the following is true of unmeasured media? a. It is hard to measure with traditional means. b. It is limited to network TV. c. Spot radio is the same as podcasting. d. Local newspapers are merging with global conglomerates.

Scenario 12-6 Taylor, Fern, and Hynes have recently published a short booklet entitled Media Choices: Efficiency and Competitive Assessment. This is a tool that advertising agencies and media planners can offer to clients so that they can understand how to better determine their media mix. Included below are several short excerpts from the booklet. Please complete the missing part of each excerpt, based on your study of the chapter.

53. (Scenario 12-6) “When a firm compares its brand advertising expenditures in a medium to the total product category advertising expenditures in a medium, it is able to determine the: a. cost per thousand.” b. share of voice.” c. cost per rating point.” d. reach and frequency.”

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Chap 12_8e 54. In the world of advertising and promotion, CPM is one measure of media efficiency. What does the “M” in CPM stand for? a. Media plan b. Media class c. The share of voice d. The Roman numeral for 1,000 55. (Scenario 12-2) The owners of the oak furniture company are now considering buying an ad in American Life.

However, before they go ahead with their decision, they want to know the approximate number of times an individual within a target audience will be exposed to an ad in American Life in a given period of time. Which of the following are they referring to? a. Placement b. Frequency c. Reach d. Continuity 56. A company goes through massive databases of online clicks and other items. Which of the following is the company using to find prospective customers? a. Gross impressions b. Geo-targeting c. Big Data d. Message weight 57. Below-the-line promotion is also referred to as ___________. a. big data b. calculated media c. unmeasured media d. above-the-line promotion 58. (Scenario 12-6) “Which media delivers the largest audiences at the lowest cost? This is determined by calculating the ratio of the cost of the media buy to the total audience and then multiplying it by 1,000. This is known as: a. share of voice per thousand.” b. net promoter score.” c. net volume.” d. cost per thousand.”

59. (Scenario 12-3) As part of its media planning process, Champion Chocolate is searching information about its target market that cover details such as their purchase frequency, brand loyalty, and media exposure. This type of detailed information on consumer behavior can only be obtained from a(n): a. single-source tracking service. b. media-buying service. c. agency of record. d. media class.

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Chap 12_8e 60. Net promoter scores measure: a. the number of times a customer clicks on a pop up link. b. the good mentions and bad mentions of a brand in the social media. c. offline consumer behavior. d. whether consumers search for online offers or not.

61. Which of the following measures media weight based on both reach and frequency? a. Media mix b. Gross rating points c. Share of voice d. Cost per thousand 62. __________ of an ad is the average number of times an individual or household within a target audience is exposed to a media vehicle in a given period of time. a. Continuity b. Scope c. Reach d. Frequency 63. (Scenario 12-4) The interviewer says that one of your responsibilities at the job will be to gather details of audience members of every local TV vehicle, so clients can be informed about the key characteristics of their target markets. Which of the following would you need to do in order to perform this task? a. Organize above-the-line promotions for your clients. b. Use continuous scheduling for your media schedules. c. Calculate the share of voice of your clients. d. Contact a single-source tracking service like BehaviorScan.

64. (Scenario 12-1) Blackberry Valley's ad agency has come up with a series of ideas through which they are planning to target people who are health-conscious and are looking for organic options. The agency has decided to use the social media to find out detailed behavioral information about customers. The agency also plans to turn these individuals into advocates of their brand. Which of the following is the company using? a. Continuous scheduling b. Media mix c. Below-the-line promotions d. Big Data 65. (Scenario 12-4) The interviewer says, "Around here, for most media classes, we generally use cost per thousand to determine which media delivers the largest audience at the lowest cost. And of course with the Internet, we use another measure to calculate how people mention the brands." If you’re smart, you will respond by saying: a. "Oh really? Might that be the really simple syndication?" b. "Oh really? Might that be the gross rating points?" c. "Oh really? Might that be the net promoter scores?" d. "Oh really? Might that be the cost per rating point?"

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Chap 12_8e 66. (Scenario 12-5) “Did you have a rough figure in mind concerning your _____, that is, the number of people or households that you’d like to see exposed to the chosen media at least once during the campaign?” a. geographic scope b. cost per thousand c. reach d. continuity 67. In advertising, what is a big change with media? a. Media buyers do not have access to digital and social media to create buzz marketing. b. They use below-the-line promotions instead of above-the-line promotions. c. In modern times, much of media buying occurs via programmatic media buying. d. The goods and services they offer do not require marketing.

68. You are working with a client on their print media. You tell the client that a full-page, black-and-white ad will cost them $1,650 to run once. You also remind the client that the circulation of the magazine is 50,000. To give the client the cost per thousand for this media buy, which formula would you use? a. Take 50,000 divided by 1,650 multiplied by 1,000 b. Take 1,650 multiplied by 1,000 divided by 50,000 c. Add 1,650 and 50,000 divided by 1,000 d. Take 50,000 divided by 1,000 plus 1,650 69. Usually, each spring, television programming and ad executives participate in the upfronts, or a period where the networks reveal: a. their fall lineups and presell advertising. b. above-the-line promotions. c. media buying services. d. a unique selling proposition.

70. Media planners need to identify media that cover the same region or location as the advertiser’s distribution system and then they use a system of automatic buying of ads based on data such as online consumer behavior. This is an example of __________, a critical element in making the buy. a. frequency b. programmatic media buying c. micro-targeting d. purchase size 71. A clothing brand needs a stronger message in August for back-to-school shopping, in December for holiday shopping, and in May for summer shopping. What type of scheduling strategy will run the clothing ads continuously, but will also have three periods of much heavier scheduling? a. Pulsing b. Continuous c. Flighting d. Measured

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Chap 12_8e 72. The forgetting function is based on research showing that things that are remembered, including ad messages: a. can be remembered almost indefinitely. b. are removed from short-term memory almost immediately. c. fade from people’s memories at mathematically calculated intervals. d. are retained only if the individual wants to remember them.

73. An ad agency is an expert in placing advertisement messages in different media, like television, radio, magazines, and digital/social media. It effectively mixes and matches all of these media to make sure that an advertiser's message makes a positive impact on the target audience. It is also an expert in creating the schedule in which these messages will appear. This ad agency is working effectively as a: a. media bidder. b. media planner. c. media vehicle. d. media class.

Scenario 12-3 Champion Chocolate sells handmade specialty chocolate candies in a Midwest city with an adult population of 850,000. The entire adult population of the city is considered Champion Chocolate's target market.

Media planners look at sales and decide to pursue a media strategy that runs throughout the year but uses heavier scheduling in the two weeks preceding Valentine’s Day, Easter Sunday, Mother’s Day, Thanksgiving Day, and Christmas Day. They decide to use local television, magazine, and newspapers to advertise the products.

Champion Chocolate selects three specific vehicles to carry its message: Six spots will run on a local TV news show. The show has a rating of 30.

Eight ads will run in the regional edition of a magazine. The magazine has reach of 10. Twelve ads will run in the local newspaper. The paper has a reach of 40.

74. (Scenario 12-3) Champion Chocolate used newspapers, local television, and magazines to promote their products.

Which of the following did they use? a. Media classes b. Media vehicles c. Big Data d. Media scope 75. A media planner is making placement decisions for a new line of cosmetics. She focuses on ten different cities in the country where the purchase size of the products is high. This is an example of: a. geo-targeting. b. media mix. c. below-the-line promotions. d. above-the-line promotions.

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Chap 12_8e 76. (Scenario 12-4) The interviewer says that the position will involve working with both measured and unmeasured media. Then she asks what you know about these two types of media. You should answer by saying: a. "In the early days of advertising, all media were unmeasured. Currently, however, only advertising on the Internet is considered unmeasured." b. "Measured media include the Internet, television, radio, magazine, newspaper, and outdoor media.

Unmeasured media include everything else, such as events, product placements, and coupons." c. "Measured media includes paid Internet search and retail shelving. Unmeasured media consists of syndicated and local TV." d. "Measured media is directed at households and individuals. Unmeasured media is directed at businesses and members of trade channels."

77. A media planner should understand the key role of modern media buying via __________. a. plan; frequencies b. programmatic media buying c. mix; plans d. vehicle; outlines 78. Overall, computer modeling and algorithms: a. help replace planning and sound judgment made by media specialists. b. provide standardized reports that are comparable across media categories. c. lean toward high-end media options that result in costly media buys. d. assess a wide range of possibilities and is a big change in advertising and media.

79. (Scenario 12-6) “Among advertising agencies, the client’s agency of record is the one chosen by the client specifically to: a. gather all data necessary to measure media exposure.” b. coordinate creative efforts for the firm.” c. purchase all time and space.” d. keep records of all ongoing research efforts.”

80. (Scenario 12-2) Based on the figures provided, what is the CPM of a single-page, full-color advertisement in American Life's national edition? a. $ 10.99 b. $ 45.19 c. $ 32.06 d. $ 90.98 81. (Scenario 12-1) Blackberry Valley is currently assessing its brand expenditures relative to the overall spending of its product category of jams. Which of the following is the company calculating? a. Share of customers b. Share of volume c. Share of voice d. Share of mind

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Chap 12_8e 82. You are looking at figures and trying to understand the overall message weight for your client’s shaving cream ads.

You remind yourself that some people who watched the ad on a TV program may have also seen it in a magazine.

This is called: a. between-vehicle duplication. b. micro-target. c. within-vehicle duplication. d. below-the-line promotion.

83. Which of the following is true of the square root law which states that the recognition of print ads increases with the square of the illustration? a. It should be used as a general guideline. b. It should be considered purely as a law. c. It is not true. d. It offers customized feedback on different advertising efforts.

84. (Scenario 12-6) "The metric known as _______ measures how much conversation about a brand occurs on the Web in a given period." a. cost per thousand b. share of voice c. net volume d. gross impressions 85. Before he can make final decisions on where to place ads and how to display promotions for a new brand of bottled water, a media planner has to decide which broad categories to use—television, radio, magazines, newspapers, Internet sites, etc. When he zeroes in on using both television and digital, he has chosen his: a. unmeasured media. b. media classes. c. big data. d. media vehicles.

86. Which of the following best defines micro-targeting in the context of media strategies? a. Micro-targeting indicates specific media classes. b. Micro-targeting refers to delivering appropriate messages and offers where you will be most receptive. c. Micro-targeting focuses on covering the same geographic area as the advertiser’s distribution system. d. Micro-targeting is the placement of ads in a way that exposes them to a large number of people.

87. Which of the following is most likely to be used for above-the-line promotion? a. Coupons b. Blogs c. Magazines d. Social networking sites

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Chap 12_8e 88. ___________ is the total mass of advertising delivered. a. Big data b. Effective reach c. Message weight d. Effective frequency 89. The true power of a media plan rests on the ____________, that is, knowing what you are trying to do with your media and matching those objectives with your media choices. a. share of volume b. media class c. media continuity d. media strategy 90. S&S is the agency of record for all brewing products of a beer manufacturer. This means that S&S has been chosen by the client to: a. assess the impact of the different ads of the company. b. handle all creative services and production issues. c. negotiate contracts for time and space. d. collect detailed consumer information.

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Chap 12_8e Scenario 12-1 Appleberry Farms Organic Jam has been the number one jam in the jam and jelly category for several years.

Although still a number two in this category, Blackberry Valley Organic Jam is gaining a strong foothold. Appleberry had $39,466,000 in sales last year, while Blackberry had only $16,301,000, but that was 11 percent higher than its 2008 sales.

Organic jams and jellies are important to marketers because they appeal to health-conscious consumers and have a fresh taste that many consider superior to traditional fruit spreads.

Appleberry Farm has been put on notice. Blackberry Valley Jam's move up came despite lower ad spending than Appleberry Farm Jam. The Blackberry brand spent about $972,000 in measured media during 2010, compared to $1,553,000 spent by Appleberry. Blackberry also underwent an aggressive re-launch last year with reformulated flavors, revamped packaging, new ads, and additional media.

Money spent on advertising jam and jelly products in 2010, by brand: Appleberry Farm Jam $1,553,000 Blackberry Valley Jam $972,000 Total for product category $3,714,000 Approximate 2010 Jam and Jelly category sales, by brand: Appleberry Farm Jam $39,466,000 Blackberry Valley Jam $16,301,000 Total for product category $81,732,000 91. (Scenario 12-1) If Blackberry Valley uses below-the-line promotions to boost its sales, which of the following is it most likely using? a. Preprinted inserts b. Television commercials c. Ads in magazines d. Retail shelving 92. A manufacturer uses programmatic media buying to place social media ads every day for a period of two months. This is called _______. a. continuous scheduling b. gross impressioning c. message weighting d. media mixing 93. How is the concept of message weight associated with gross impressions? Why are media planners interested in the message weight of a media plan?

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Chap 12_8e 94. Axel Corporation has been manufacturing chocolate chips for over 60 years. This year, the sales for 12-oz. packages of both milk chocolate chips and dark chocolate chips are strong in the U.S., but they peak from Thanksgiving through New Year's Eve, with November and December often producing sales that add up to four times that of the “average” month. Describe the three different media scheduling options that the company can consider when deciding on media scheduling. Recommend the scheduling option that would be most appropriate for the company to adopt.

95. Explain how the World Wide Web has changed the traditional brand–consumer relationship.

96. What is programmatic media buying, and how is it an industry game changer in advertising and integrated brand promotion?

97. What is meant by the term Madison & Vine? Describe the source of this term and the nature of this phenomenon in the world of advertising.

98. How is an agency of record and a media-buying service similar to one another? Identify the differences between them.

99. What is a media strategy and why is it needed to prepare a media plan? Why is media planning essential before media buying? What are the different components of a media plan?

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Chap 12_8e Answer Key 1. False 2. False 3. False 4. True 5. True 6. True 7. True 8. True 9. False 10. False 11. True 12. False 13. True 14. False 15. True 16. True 17. True 18. True 19. True 20. False 21. True 22. True 23. False 24. True 25. True 26. b

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Chap 12_8e 27. c 28. c 29. c 30. b 31. a 32. b 33. a 34. b 35. a 36. a 37. d 38. a 39. c 40. a 41. a 42. c 43. b 44. c 45. d 46. a 47. a 48. b 49. d 50. a 51. a 52. a 53. b 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 12_8e 55. b 56. c 57. c 58. d 59. a 60. b 61. b 62. d 63. d 64. d 65. c 66. c 67. c 68. b 69. a 70. b 71. a 72. c 73. b 74. a 75. a 76. b 77. b 78. d 79. c 80. c 81. c 82. a Copyright Cengage Learning. Powered by Cognero.

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Chap 12_8e 83. a 84. c 85. b 86. b 87. c 88. c 89. d 90. c 91. d 92. a 93. Message weight is a media measure and refers to the total mass of advertising delivered. Message weight, at least in traditional media, is typically expressed in terms of gross impressions. Gross impressions represent the sum of exposures to the entire media placement in a media plan.

Media planners are interested in the message weight of a media plan because it provides a simple indication of the size of the advertising effort being placed against a specific market.

94. The three choices of media scheduling for Axel Corporation would be continuous scheduling, flighting, and pulsing.

Continuousscheduling is a pattern of placing ads at a steady rate over a period of time.

Flighting is achieved by scheduling heavy advertising for a period of time, usually two weeks, then stopping advertising altogether for a period, only to come back with another heavy schedule.

Pulsing combines elements from continuous and flighting techniques. Advertisements are scheduled continuously in media over a period of time, but with periods of much heavier scheduling.

The best choice for Axel Corporation would be a pulsing schedule. This is because pulsing is most appropriate for products that are sold fairly regularly all year long but have certain seasonal requirements.

95. Facebook, Twitter, and others have revolutionized the way we think about mediated communication. From the earliest work on brand communities, Muniz and O’ Guinn noted that this new paradigm is represented by three nodes rather than the traditional two: marketer–consumer–consumer. Consumers talk to other consumers and like to talk to other consumers about consumer stuff. Now, through the Internet, they can, for almost no cost, instantaneously, and with the power of huge numbers.

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Chap 12_8e 96. Programmatic media buying is when there is automatic buying of ads based on data such as online consumer behavior.

It may be digital and based on third parties that sell data. It has come a long way very quickly in changing how media is bought. It can also relate with bidding for key words and big data. Thus, it spans both topics of big data and algorithims. Programmatic advertising (in digital) expenditures are currently $39 billion and are predicted to soon be $64 billion. Most comes from the U.S., where the practice started. It is a game changer because the industry is transformed and the explosion of data about markets and consumers has brought an emphasis on computerized media planning tools and models.

97. Madison & Vine is a term coined by Scott Donaton at Advertising Age. It is a recognized, full-fledged attempt to merge media in the form of branded entertainment on television, in games, in retail settings called brandscapes, on mobile phones—all across the board. The concept is also referred to as branded entertainment and emerged long ago, with simple product placements in movies, radio, and then television shows.

The basis for the idea was that traditional advertising was no longer cost effective and that the cost of making and promoting films and music was also out of control. For clients seeking branded entertainment opportunities, there typically are three primary approaches.

The most straightforward and least expensive is product placement. A more sophisticated approach involves storyline integration, such as putting a UPS delivery truck in an EA Sports NASCAR game. Original content, as when BMW produced short online film clips featuring their vehicles, is the most expensive, but potentially most compelling, form of branded entertainment.

98. Both an agency of record and a media-buying service help an organization purchase media time and space.

An agency of record is an advertising agency chosen by the advertiser to purchase time and space. The agency of record coordinates media discounts and negotiates all contracts for time and space. Any other agencies involved in the advertising effort submit insertion orders for time and space within those contracts.

In contrast, a media-buying service is an independent organization that specializes in buying large blocks of media time and space and reselling it to advertisers. Some agencies and companies have developed their own media-buying units.

99. A media strategy determines what you want to do with your media—buy simple awareness, counter a competitor’s claims, reposition your brand, react to good or bad media publicity, or establish an image and good feel surrounding your brand. It helps you match message objectives with media choices. Thus, the true power of a media plan rests in the media strategy.

Media planning determines where and when the advertiser’s money is spent, and thus, is vital. It requires creativity and strategic thinking, because to do it, an advertiser needs to understand what he is trying to do with media, why he is doing it, and the key aspects of the various tools at his disposal. A media plan specifies the media in which advertising messages will be placed to reach the desired target audience.

A media plan includes a strategy, objectives, media choices, and a media schedule for placing a message. An advertiser should always know and pay close attention to the fundamental qualities of each medium and specific vehicle in terms of what a brand is trying to do. To be effective, the advertiser needs to be able to see the media buys in the strategic context of brand communication and consumer behavior goals.

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Chap 13_8e Indicate whether the statement is true or false.

1. Advertisers are exploring other ways to take advantage of the interactive digital environment beyond digital versions of magazine publications. a. True b. False 2. Radio syndication provides complete programs to advertisers on a pay-per-results basis. a. True b. False 3. An iconic design in advertising, Absolut vodka has relied for many years on magazines to effectively reach its target audience with high quality print ads. a. True b. False 4. One massive change in media relates with new media options. a. True b. False 5. Households using TV, or HUT, indicates that 100 television households in a given area were tuned to the program being measured. a. True b. False 6. The future of television is likely to include greater viewer participation in programming. a. True b. False 7. Advertisers invest about $8 billion annually in radio advertising to reach national and local audiences. a. True b. False 8. One advantage of magazines as a media choice is their audience selectivity, which can be based on demographics, lifestyle, or special interests. a. True b. False 9. Internet radio has a wide and enthusiastic following with sites like Pandora and Spotify. a. True b. False 10. While some magazines have not made it, others have had increases in circulation and readership. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 13_8e 11. Though it is limited to a one-dimensional presentation, radio is a medium with a setting for true creativity, often described as the theater of the mind. a. True b. False 12. Pay-for-inquiry advertising is a payment method in which the medium gets paid by advertisers based on the number of inquiries received in response to an ad. a. True b. False 13. Pass-along readership is an advantage to magazines. a. True b. False 14. A program rating is the percentage of TV households that are in a market and are tuned to a specific program during a specific time period. a. True b. False 15. Traditionally, newspapers were known for advantages of geographic selectivity and timeliness. a. True b. False 16. Narrowcasting is the development and delivery of specialized programming to well-defined audiences. a. True b. False 17. Television syndication is either original programming or programming that first appeared on network TV. a. True b. False 18. Spending in magazines by several top advertisers is down, reflecting the general decline in advertising placement in traditional media. a. True b. False 19. Newspapers especially have had to synergize with their digital platforms or websites. a. True b. False 20. Digital media must synergize with traditional media in order to work most effectively. a. True b. False

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Chap 13_8e 21. The web, tablets, and smartphones all can relate to the next evolution of television. a. True b. False 22. If the consumer doesn’t see the message, no matter how creative or brilliant, it is not an effective message. a. True b. False 23. Advertising budgets in the U.S are shifting from traditional print, radio, and television media to include digital media. a. True b. False 24. Television has a high absolute cost. a. True b. False 25. As artificial intelligence technology advances, advertisers gain the ability to identify and analyze multiple media for pinpoint targeting. a. True b. False 26. An advantage of magazines is that they are synergistic with digital media. a. True b. False 27. Barter syndication takes both off-network and first-run syndication shows and offers them free or at a reduced rate to local TV stations. a. True b. False 28. Programming transmitted to audiences via satellite transmission is an option for consumers. a. True b. False 29. The involuntary and frequent intrusion of commercials has made television advertising the most distrusted form of advertising among consumers. a. True b. False 30. A ratings point indicates that 1 percent of all the TV households in an area were tuned to the program measured. a. True b. False

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Chap 13_8e 31. Like newspapers, magazines have been struggling in a changing media world. a. True b. False 32. There are certain objectives advertising can achieve—particularly creative goals—only with traditional mass media that digital, social, and mobile media cannot match. a. True b. False 33. Share of audience provides a measure of the proportion of households that are using TV during a specific time period and are tuned to a particular program. a. True b. False 34. As opposed to using traditional media, using digital media makes it easier to make an advertising campaign global. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

35. Radio offers potential advertisers the ____________ among all media. a. simplest buying procedures b. most well-defined audience segments c. widest exposure d. highest degree of audience attentiveness 36. The categories of radio that an advertiser can choose from are: a. off-network syndication, first-run syndication, and barter syndication. b. network, syndicated, cable, and satellite. c. networks, syndication, AM versus FM, satellite, and Internet/mobile radio. d. satellite, Web, and interactive.

37. The future of advertising relates with an issue of: a. lack of audience selectivity. b. cutting the cord, or using entertainment-streaming sites to substitute for cable TV. c. cost-per-contact. d. minimal creative opportunities.

38. AARP is a magazine that targets retiring-aged Americans. This indicates that the magazine uses audience selectivity based on: a. demographics. b. lifestyle. c. special interests. d. cultures.

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Chap 13_8e 39. Magazines provide advertisers: a. the largest reach. b. creative opportunities. c. with a short shelf life. d. up front premiums.

40. One of the fastest-growing TV options is _________, which is often subscription-based. a. video on demand (VOD) b. local television c. off-network syndicated television d. first-run syndicated television 41. Narrowcasting is most related to: a. audience selectivity. b. cost-per-contact. c. repetition of ads. d. long-lasting message.

42. A hotel in a small town wants to have radio in the media mix; their aim is to reach locals in this small town.

What form of radio seems best for this client? a. International satellite radio b. National spot radio advertising c. Local spot radio advertising d. None, as radio does not reach consumers effectively 43. (Scenario 13-2) George, a participant at a convention, has recently taken over his grandfather’s bakery in a Midwestern city. He wants to place a radio spot on one of the local stations. How can George best take advantage of his spot? a. By frequently repeating his advertising messages b. By advertising on AM radio because of its high sound quality c. By creating ads that depend on demonstration or visual impact d. By developing creative ads to be aired on satellite radio 44. (Scenario 13-2) A nationwide fast-food chain is developing next year’s media plan and is reviewing the pros and cons of various media options. Radio advertising has its disadvantages, and many are being addressed at this convention. Which of the following is one of those disadvantages? a. Short closing periods for ad placement b. High per-contact cost c. Limited reach d. Poor audience attentiveness

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Chap 13_8e 45. A media planner needs to keep in mind that television: a. gives an advertiser the lowest absolute cost. b. has no audience selectivity. c. is underway of the next evolution with programs being accessed by consumers over the Web, as tablet and smartphone streaming or downloads, or via smartphone. d. has a high degree of audience attentiveness.

46. (Scenario 13-1) The media planner understands that a teen-oriented magazine will have one big advantage that magazines have over other print and broadcast media. Which of the following advantages is the media planner most likely referring to? a. An opportunity for high frequency b. A high degree of audience selectivity c. The lowest cost per contact among all major media d. High credibility 47. Aside from web and interactive TV, categories of television include: a. network, satellite, cable, and commercial. b. national, regional, city, and satellite. c. local, cable, syndicated, and network. d. commercial, public, cable, and syndicated.

48. Advantages of newspapers include geographic selectivity and _________. a. long life-span b. high credibility c. timeliness d. high geographic selectivity 49. Disadvantages of magazines include limited reach and frequency, and: a. lack of creative opportunities. b. lack of audience interest. c. clutter. d. lack of audience selectivity.

50. One of the primary advantages that magazines have is: a. short lead times. b. durability. c. frequency. d. audience selectivity.

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Chap 13_8e 51. Media decisions are critically important for two reasons. One of these reasons is that: a. advertisers need to develop creative messages for their target audiences. b. advertisers need media to reach audiences that are likely in need of the information. c. ad messages should sound credible to the audience. d. they directly empower consumers.

52. A grocery chain delivers leaflets that contain an ad about the chain. The leaflets are ready to be tucked into the Sunday newspaper before delivery. The grocery chain is using: a. display advertising. b. a preprinted insert. c. co-op advertising. d. a classified ad.

53. Some analysts suggest that newspapers consider adopting a ___________model. a. preferred position b. competitive parity c. pass-along readership d. pay-for-inquiry 54. Newspapers are an excellent medium for: a. retailers who require a wide range of creative options same as those available in broadcast media. b. retailers or other local businesses targeting local geographic markets. c. advertisers looking for an uncluttered environment to publish ads. d. companies targeting highly selective audiences, with specific economic and social backgrounds.

55. Bill likes to view the programs that other channels are airing while an advertisement is being broadcast during the news; which of the following is he demonstrating? a. Narrowcasting b. Attention sharing c. Program rating d. Channel grazing 56. (Scenario 13-4) Greta’s Garden decides to run a more sophisticated ad in an issue of a regional publication, City Garden magazine. The company wants to print a photo of a garden along with the plants and flowers they offer, and are happy with the color reproduction that the magazine offers. Which advantage of magazines does this represent? a. Pass-along readership b. Long life c. Audience interest d. Creative opportunities

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Chap 13_8e 57. Flyfisher magazine is published by the Federation of Fly Fishers. The magazine reaches a highly selective audience by offering content on fishing as a leisure activity. Which of the following is Flyfisher magazine's audience selectivity based on? a. Demographics b. Special Interests c. Age d. Ethnicity 58. When Geico insurance runs commercials on TV, it gets an advantage that cannot be matched by radio or print media. Which of the following advantages does it have? a. Less fleeting message than that used in print media b. Low absolute cost c. Highly selective geographic targeting d. Low cost-per-contact 59. (Scenario 13-2) The long-time owner of an FM radio station in a mid-size West Coast city is closely monitoring the ups and downs of satellite radio companies. Traditional radio station owners like him, as well as their advertisers, are concerned about the rise of satellite radio mainly because it: a. offers superior sound reproduction at no extra cost. b. is more local than local radio. c. has no advertising. d. does not charge customers for in-home installation.

60. Which of the following is an advantage of magazines as a medium of advertisement? a. They offer a wide range of creative opportunities. b. They have a very wide reach. c. They have a higher frequency than newspapers. d. They have short lead times.

61. Traditionally, radio stations often streamed their content, including ads, online for free, but now some digital radio is _____________. a. the most expensive form of IBP b. required in IBP campaigns c. offered via a subscription basis d. only offered in U.S. media markets 62. What change or trend has really impacted internet/mobile radio? a. Clients will either make decisions on running ads or agencies will make decisions on running ads. b. Programs will be based either on news and sports, or business reports and short features. c. Scripts for broadcast will need to be developed, or announcers will need to be hired to ad-lib from a list of points during broadcast. d. Listeners can access online radio stations or build their own radio “stations” that play listeners’ preferred music genres and playlists.

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Chap 13_8e 63. (Scenario 13-1) The agency has designed an ad for a teenage girls' magazine and is fairly sure that the ad will be very effective. Which of the following is most likely a reason for this? a. The ad will reach a large number of readers because magazines have a wider reach than other media vehicles. b. The readers will be exposed to the ad many times because magazines have a higher frequency than most newspapers. c. The ads will get the readers' undivided attention because magazines are free from ad clutter. d. The readers of this magazine are highly interested in the magazine, so the ad will get voluntary exposure.

64. The percentage of adults reading daily newspapers is __________. a. rising b. neither declining nor rising c. declining d. growing rapidly 65. What are two disadvantages of newspapers as an advertising medium? a. Creative constraints and cluttered environment b. Time lag and geographic restrictions c. Lack of credibility and timeliness d. Lack of timeliness and high production costs 66. Netflix, Amazon, and Hulu have __________ programming, along with some advertising opportunities. a. smartphone b. video on demand (VOD) c. satellite d. syndicated 67. Advertisers are boosting spending on digital, social, and mobile media because of more _________ and the ability to communicate when and where consumers are making decisions. a. broadcast b. print c. precise targeting capabilities d. radio 68. Magazines have long lead times. This means that: a. they can be reexamined over a week or a month and have a high pass-along readership. b. the cost-per-contact is very high. c. advertisers are required to submit their ads well in advance of the date of publication. d. they have a highly interested readership.

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Chap 13_8e Scenario 13-1 Crystal, a media buyer, is glancing through the latest edition of the industry trade publication, Advertising Age, and notices an ad targeted at media buyers. The ad encourages the purchase of space in a fast-growing magazine that reaches 12- to 18-year-old girls. It invites media buyers to contact the sales department of the magazine for more information. She considers the ad as she has a cosmetics manufacturer as a client who may benefit from this type of ad placement.

69. (Scenario 13-1) Crystal is trying to decide whether to run ads in the teen magazine or in special sections of newspapers attempting to target young people. What disadvantage of newspapers would prompt her to consider the teen magazine? a. Their lack of timeliness and credibility b. Their high absolute cost c. Their high pass-along readership d. Their limited ability to segment target audiences 70. One of the versions of satellite transmission is direct transmission, which is also known as: a. barter syndication. b. smartphone TV. c. local TV. d. closed circuit.

71. With its multisensory stimulation, _________ and video present valuable opportunities to advertisers with the diversity of communication possibilities for creative expression of brand value. a. television b. direct mail c. radio d. magazine 72. (Scenario 13-3) You recommend that the manufacturer of ski equipment place ads in several magazines devoted entirely to skiing. Your main reason for this is because magazines have the advantage of: a. targeting highly selective audiences. b. having more reach than any other media class. c. higher frequency. d. short lead times.

73. (Scenario 13-4) Greta’s Garden also consults with a media outlet about advertising its products. The salesperson with this firm explains that considering the growing/planting season, they will need to decide soon, because ads must be submitted at least 60 days before they run, and the ad material cannot be changed after the submission.

Which media type is the salesperson most likely talking about? a. Television b. Radio c. Newspaper d. Magazine

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Chap 13_8e 74. (Scenario 13-4) Greta’s Garden plans to use a particular type of advertising to announce a new addition—the full line from Holland Hothouse, a grower of award-winning tulip bulbs and rose bushes. Greta’s Garden plans to advertise about the new addition in the local newspaper, and Holland will be paying 20 percent of the media bill.

What type of advertising is Greta’s Garden considering? a. Crowdsourcing b. Social network ads c. Infomercials d. Co-op ads 75. (Scenario 13-3) The orange juice retailer believes that the appeal of its product cuts across just about every demographic, geographic, and psychographic segment. Thus, one objective for your media plan would be to achieve the widest reach possible. This would suggest the use of: a. television. b. magazines. c. periodicals. d. newsbooks.

76. __________ is the development and delivery of specialized television programming for a particular audience. a. Display advertising b. Narrowcasting c. Spot advertising d. Channel grazing 77. A question concerning new forms of radio technology, such as satellite radio and online radio such as Pandora or Spotify, is whether listeners will: a. be willing to pay for an entertainment medium that has traditionally been free. b. be affected by ongoing moves toward corporate reductions in marketing. c. increase their overall radio listening time due to increased ads. d. notice the improved audio quality.

78. (Scenario 13-3) To keep costs down, the used car dealer decides to make sure that the ads appear every week beside other car sales ads. For this, you need to use __________ advertising. a. preprinted insert b. classified c. co-op d. display 79. A great advantage of television as an advertising medium is its ability to: a. make an advertising message have a long-lasting effect in consumer memory forever. b. be inexpensive in terms of absolute cost. c. send a message through both sight and sound. d. target small yet select audiences with a low reach.

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Chap 13_8e 80. Animated comedy show, American Family, is being broadcast in Houston. A potential advertiser wants to know how popular the show is in Houston, as well as across the U.S. Research indicates that the show is being watched by 16,400,000 people nationwide. It also indicates that the show is being watched by 759,000 households each week in Houston’s big city market, which has 3,300,000 households with televisions. What is the program rating for American Family within the Houston market? a. 4.3 b. 20 c. 23 d. 46 81. With respect to satellite radio, it is primarily installed in _____________. a. homes b. businesses c. consumers’ vehicles d. international markets 82. (Scenario 13-1) The client is concerned about paying a lot of money for an ad in a fairly new magazine that hasn’t yet established itself. Which of the following is most likely to be a reason behind the client's concern? a. The cost-per-contact in magazines is higher than that in direct mail. b. New magazines have short lead times. c. The cost-per-contact of magazines is as high as that of broadcast media. d. Ad space in magazines is more expensive than most newspaper space.

83. What is a disadvantage of magazines as a media choice for advertisers? a. Low reproduction quality b. Long lead times c. Short life d. Lack of audience selectivity 84. What are three broad categories of newspaper advertising? a. Display advertising, inserts, and classified advertising b. Co-op, classified, and controlled c. Page, column, and insert d. Preprinted insert, free-standing, and special-interest 85. Which of the following is true of IBP in the media environment today? a. It is settled into a predictable structure. b. Traditional media is more important than digital. c. Digital media must synergize with traditional media to work effectively. d. Traditional media companies must avoid getting into new media.

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Chap 13_8e 86. Media research shows that there are 48,500,000 households watching TV during the time that the show Celebrity is broadcast. The program attracts a total of 8,730,000 viewers. This means that the share of audience measure for the program is a(n) _______ share. a. 62 b. 5.5 c. 18 d. 39.9 87. Share of audience is based on: a. the percentage of an audience who participate regularly in TV shows. b. the audience for local shows. c. the percentage of households that can afford to buy television sets. d. the proportion of TV households tuned into a program relative to the total TV households using TV. 88. As print circulation and ad revenues decline in the digital age, newspapers get to: a. have high program ratings. b. target small, selective audiences. c. reinvent themselves and become digital. d. spend more money on advertising time slots.

89. What type of television transmission broadcasts programming over airwaves to affiliate stations across the United States under a contract agreement? a. Satellite b. Interactive c. Network d. Cable 90. Hybrid models are very effective for magazines because these models boost a magazine’s ability to remain magazines; it means the magazines can be both ____________ and ___________. a. in English and Spanish b. visual and text-based c. leisure and informative d. print and digital 91. Research has found that 65 percent of a surveyed group of consumers felt that they were “constantly bombarded with too much advertising.” This example demonstrates the disadvantage of ____________ that televisions have. a. poor coverage b. low share of audience c. clutter d. poor reach

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Chap 13_8e 92. Regardless of digital or print format, an advantage of magazines is that specialized magazine content attracts audiences with _____________, and those audiences attract advertisers. a. special interests b. small market shares c. large share-of-voice d. multiple language capabilities 93. What form of advertising appears as all-copy messages under categories such as sporting goods, employment, and automobiles, and is often taken out by individuals as well as businesses? a. Display advertising b. Classified advertising c. Co-op advertising d. Free-standing inserts 94. An opportunity for newspapers is ________________, where people will get their global and national news from the web but turn to local newspapers for other reasons, such as to get information on local sales. a. a pay-for-inquiry advertising model b. hyper-localism c. preprinted inserts d. free-standing inserts 95. (Scenario 13-3) The marketing director for the instant grits cereal wants to supplement the company’s national ad campaigns with local campaigns. He plans to target some southern cities, but wants to use a media class with low absolute cost as well as low cost-per-contact. In such a scenario, he should use: a. newspapers. b. local magazines. c. local radio. d. local television.

96. Digital media allows advertisers to make ________ in campaigns, whereas traditional media could not. a. headlines b. direct mail c. media plans d. rapid changes 97. (Scenario 13-4) After placing the first few simple ads in the local paper, Greta’s Garden realizes that it needs to offer customers special offers to help them earn better loyalty. It decides to offer some discount coupons in the Sunday newspaper. What kind of advertising is this? a. A co-op advertisement b. A classified advertisement c. A display advertisement d. A free-standing insert advertisement

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Chap 13_8e 98. (Scenario 13-2) A Midwest sports equipment retailer has its agency set up 60-second commercials on stations in Chicago, Indianapolis, St. Louis, and Milwaukee that regularly cover sports events. In this way, the retailer is buying: a. network radio advertising. b. national syndicated radio advertising. c. local spot radio advertising. d. national spot radio advertising.

99. (Scenario 13-1) The client is interested in placing an ad in the teen magazine and cites several reasons why placing an ad in the magazine would be a good idea. Which of the following is an incorrect statement and would not be a good reason for this placement? a. Magazines have the additional advantage of voluntary exposure to advertising. b. Magazines are reexamined over a week or a month and have a long life. c. Magazines are free of ad clutter that other forms of media are subjected to. d. Magazines offer high-quality color reproduction for illustrations.

100. A clothing manufacturer pays part of the media bill when a local store features the manufacturer's brand in its advertising. What type of advertising is this? a. Segmented b. Syndicated c. Co-op d. Preferred 101. (Scenario 13-4) The research conducted by Greta’s Garden suggests that besides being able to afford plants for their homes and gardens, the only thing most customers have in common is that they live within the immediate geographic area. They are also interested in the information about the plants and staying up-to-date on what Greta’s Garden has to offer. In this case, which of the following would be the best media choice for advertising? a. Radio b. Network TV c. Newspapers d. Web TV

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Chap 13_8e Scenario 13-2 A national radio broadcaster's association hosts an annual convention that attracts station owners and program managers, as well as ad agencies and media planners. As a media planner, you take part in forums on the current status of traditional radio, the competition between AM and FM formats, the growth of satellite and Internet radio, and the rise of new technologies. During one forum, a professor of broadcasting initiates a discussion and poses a number of questions based on real-life situations that he has encountered over the years.

102. (Scenario 13-2) An owner of a large restaurant/lounge wants to run an ad on a radio station that covers the Dallas–Fort Worth metropolitan area and plays country western music. He should choose FM stations rather than AM stations because AM stations are more likely to: a. have a news or talk radio focus. b. have a wide range of music formats. c. send signals that do not use amplitude modulation. d. transmit using frequency modulation.

103. (Scenario 13-3) The guitar retailer has never advertised much. The owner now wants a highly creative, cuttingedge campaign that shows the excitement of playing the guitar and gets the attention of both younger and older musicians. He asks for a quick overview of the creative opportunities offered by various major media. You tell him that, in general: a. newspapers offer the best visual reproductive qualities. b. magazines have short lead times that can enhance creative ideas. c. television has strong visual and audio components but has a high cost-per-contact. d. radio offers creative avenues and is especially geared toward musical spots.

104. Describe four main advantages of newspapers as a media class.

105. As a newly hired media planner with a list of clients who benefit from timely local advertising, you need to be familiar with the advertising options that your metropolitan and suburban newspapers offer. Briefly define the three broad types of newspaper ads, and their sub-types.

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Chap 13_8e 106. As a media class, one of the drawbacks of newspapers is ad clutter. Explain why. As a media class, do magazines face the same disadvantage?

107. An ad agency has just won a new account that wants to begin by focusing on television commercials, and then later, possibly branch into print and Internet ads. The agency’s account executive, media planner, and account planner meet with the advertiser's team to review advertising options offered by various television formats. What are the four categories of basic television (excluding new and emerging formats such as Web TV and interactive TV) that they would consider?

108. Aside from the fact that cable TV offers more channels and more programming, what are the two other aspects that distinguish cable from network TV?

109. You are selling advertising space for a local radio station. However, many of your potential advertisers use television extensively because of its creative opportunities. What advantages would your radio station offer potential advertisers that television advertising cannot match?

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Chap 13_8e Answer Key 1. True 2. False 3. True 4. True 5. False 6. True 7. True 8. True 9. True 10. True 11. True 12. True 13. True 14. True 15. True 16. True 17. True 18. True 19. True 20. True 21. True 22. True 23. True 24. True 25. True 26. True

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Chap 13_8e 27. True 28. True 29. True 30. True 31. True 32. True 33. True 34. True 35. c 36. c 37. b 38. a 39. b 40. a 41. a 42. c 43. a 44. d 45. c 46. b 47. c 48. c 49. c 50. d 51. b 52. b 53. d 54. b Copyright Cengage Learning. Powered by Cognero.

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Chap 13_8e 55. d 56. d 57. b 58. d 59. c 60. a 61. c 62. d 63. d 64. c 65. a 66. b 67. c 68. c 69. d 70. d 71. a 72. a 73. d 74. d 75. a 76. b 77. a 78. b 79. c 80. c 81. c 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 13_8e 83. b 84. a 85. c 86. c 87. d 88. c 89. c 90. d 91. c 92. a 93. b 94. b 95. c 96. d 97. d 98. c 99. c 100. c 101. c 102. a 103. d 104. Newspapers offer many advantages to advertisers: 1) Timeliness: The newspaper is timely even in its printed form. Because of the short time needed for producing a typical newspaper ad and the regularity of daily publication, the newspaper allows advertisers to reach audiences in a timely way.

2) Creative Opportunities: As the newspaper page offers a large and relatively inexpensive format, advertisers can provide a lot of information to the target audience at a relatively low cost. This is important for products or services with extensive or complex features that may need lengthy and detailed copy.

3) Credibility: Newspapers still benefit from the perception that “if it’s in the paper, it must be the truth.”

4) Audience Interest: Regular newspaper readers are truly interested in the information they are reading and staying current with local and or world happenings.

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Chap 13_8e 105. Advertisers have several options when it comes to the types of ads that can be placed in a newspaper: display advertising, inserts, and classified advertising.

1) Display advertising in newspapers includes the standard components of a print ad —headline, body copy, and often an illustration—to set it off from the news content of the paper. An important form of display advertising is co-op advertising sponsored by manufacturers. In co-op advertising, a manufacturer pays part of the media bill when a local merchant features the manufacturer’s brand in advertising.

2) Inserts do not appear on the printed newspaper page but rather are folded into the newspaper before distribution.

There are two types of insert advertisements. The first is a preprinted insert, which is an advertisement delivered to the newspaper fully printed and ready for insertion into the newspaper. The second type of insert ad is a free-standing insert (FSI), which contains cents-off coupons for a variety of products and is typically delivered with Sunday newspapers.

3) Classified advertising is newspaper advertising that appears as all-copy messages under categories such as sporting goods, employment, and automobiles. Many classified ads are taken out by individuals, but real estate firms, automobile dealers, and construction firms also buy classified advertising.

106. The average printed newspaper is filled with headlines, subheads, photos, and announcements—not to mention the news stories. This presents a terribly cluttered environment for an advertisement. To make things worse, most advertisers in a product category try to use the same sections to target audiences. For example, home equity loan and financial services ads are in the business section, and women’s clothing ads are in the metro or local sections.

Magazines are not quite as cluttered as newspapers, but they still represent a fairly difficult context for message delivery. The average magazine is about half editorial and entertainment content and half advertising material, but some highly specialized magazines can have as much as 80 percent of their pages devoted to advertising. And given the narrowly defined audiences, this advertising tends to be for brands in direct competition with each other. In addition to this clutter, there is another sort of clutter that has recently begun to plague magazines. As soon as a new market segment is recognized, there is a flood of “me too” magazines. Such a problem may devalue individual ads, and the magazines in which they appear may reach fewer consumers than the advertiser expected.

107. The four categories of basic television are network, cable, syndicated, and local formats.

Network television broadcasts programming over airwaves to affiliate stations across the United States under a contract agreement. Programming from these networks can be delivered on-air, over cable, through satellite transmission, or by mobile apps to smartphones and tablets. The method of delivery does not change the fact that advertisers can buy time within these “broadcast” programs to reach audiences in hundreds of markets. Estimates are that network TV reaches more than 90 percent of U.S. households.

Cable television transmits a wide range of programming to subscribers through wires rather than over airwaves. In the United States, about 60 million basic-cable subscribers are wired for cable reception and receive dozens of channels of sports, entertainment, news, music video, and home shopping programming. Cable’s power as an ad option has grown enormously during the past decade as cable’s share of the prime-time viewing audience has grown.

Syndicated television is either original programming or programming that first appeared on network TV. It is then rebroadcast on either network or cable stations with pending distribution on the Internet. Syndicated programs provide advertisers with proven programming that typically attracts a well-defined, if not enormous, audience. It includes several sub-types: off-network syndication, first-run syndication, and barter syndication.

Local television Local TV is the programming other than the network broadcast that independent stations and network affiliates offer local audiences. Completely independent stations air old movies, sitcoms, or children’s programming.

Network affiliates get about 90 hours of programming a week from the major networks, but they are free to air other programming beyond that provided by the network.

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Chap 13_8e 108. Aside from more channels and hence more programming, two other aspects distinguish cable from network TV. First is the willingness of cable networks to invest in original programming. Cable networks are investing record dollar amounts in new, highly specific programming to continue to attract well-defined audiences. Programs like TNT’s The Closer and Nickelodeon’s SpongeBob SquarePants attract specific and very large target audiences. Second, there is huge potential revenue from video on demand (VOD).

109. The radio provides several advantages that the television does not. First, radio advertising offers a low absolute cost in reaching potential customers. Second, it offers better geographic selectivity than television can. The narrow transmission of local radio stations gives advertisers the best opportunity to reach well-defined geographic audiences.

Third, it reaches customers at home, at work, in the car, in the backyard, in retail outlets and malls, and in other public places. The wireless and portable features of radio provide an opportunity to reach consumers that exceeds all other media. Fourth, it is a more flexible medium than television because it has short closing periods for submitting an ad. This means an advertiser can wait until close to an air date before submitting.

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Chap 14_8e Indicate whether the statement is true or false.

1. Some brands or ad agencies have set up a “social media war room” to post and monitor comments related to the brand or campaign. a. True b. False 2. SEO, or search engine optimization, is a paid search concept. a. True b. False 3. Digital marketers can create events with sponsors to help instill brand loyalty with offline, experiential marketing. a. True b. False 4. Ephemeral refers to the fleeting nature of a message, such as in Snapchat. a. True b. False 5. Retail brands can use retargeting, serving consumers digital ads that are directly based on online clothing pages they clicked on in the past. a. True b. False 6. Pop-up ads are not the best choice for advertising a product because most people find them annoying. a. True b. False 7. In addition to monitoring electronic word of mouth, managers are keenly interested in metrics from social media content and social media advertising. a. True b. False 8. Integration of digital, social, and/or mobile with other components of the marketing mix is one of the easiest integration tasks in the IBP process due to the flexibility and deliverability of web advertising. a. True b. False 9. New media brings new vernacular to consumers, such as “friend me”, “tweet that,” or “snap that.” a. True b. False 10. Social media are accessible in that they are simple to find and use for a broad audience and they are scalable, as network effects play a key role. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 14_8e 11. In the context of social media advertising, earned media are advertisements that can be purchased on a social network or other digital platforms. a. True b. False 12. Web 2.0 leaves no trail of digital footprints, and hides one's online activities from future employers, spouses, and parents. a. True b. False 13. Web ads in digital and social media are intended to drive traffic off of the site where the digital ad is run, among other things. a. True b. False 14. The role of digital, social, and mobile media in advertising is a big one, and one that is here to stay and grow as technology evolves. a. True b. False 15. Cost-per-click (or pay-per click) is an advertising revenue model where the advertiser is charged by the number of people who click on, or tap, the ad to pull it up for more information or to see the ad in entirety. a. True b. False 16. It is paramount to use digital, social, and mobile media in a synergistic way with other forms of IBP. a. True b. False 17. Viral marketing is the process of consumers marketing to consumers over the Internet through electronic or inperson word of mouth transmitted through emails and electronic mailing lists. a. True b. False 18. User-generated content generally refers to consumer-generated media. a. True b. False 19. Some have attributed social media to having a role to some extent in fake news. a. True b. False 20. Interstitial ads appear on a site after a page has been requested but before it has loaded, and stays onscreen long enough for the message to be registered. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 14_8e 21. There has been a strong and steady growth of Internet advertising from 1996-2016. a. True b. False 22. Online resistance is an attitude or behavior of consumers against the digital marketing movement. a. True b. False 23. Fake news can range from information that is inaccurate and attention getting without credible sources, to completely made-up stories in general. a. True b. False 24. Hundreds of millions of online buyers bring e-commerce revenues of U.S. $680 billion a year. a. True b. False 25. Some types of digital ads written about in the book are social media ads, display/banner ads, and pop-up and pop-under ads. a. True b. False 26. Retargeting means serving consumers digital ads that are directly based on past online content that they clicked on. a. True b. False 27. A rectangular ad for microwave popcorn appears at the top of the home page of your favorite e-magazine. This is an example of a banner ad, an early form of digital advertising. a. True b. False 28. Digital advertising investments are a basic of digital advertising and online search. a. True b. False 29. Click fraud is where billions of advertising funds have been lost. a. True b. False 30. Common use of social networking brings disclosure issues to different audiences, and consumers should be aware of some vulnerabilities, like loss of information control and digital vigilance. a. True b. False

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Chap 14_8e 31. More than half of paid search clicks are from mobile devices. a. True b. False 32. Brands can promote products and cross-promote its other social media accounts on digital or social media to engage customers digitally through multiple conversations. a. True b. False 33. Big data is all the rage. a. True b. False 34. Search engine optimization is the process by which advertisers pay websites and portals to place ads in or near relevant search results based on key words. a. True b. False 35. A venue for viral campaigns is online videos of either television ads or follow-ons to television ads. a. True b. False 36. There are three media types in social media: earned, owned, and paid. a. True b. False 37. Social media and web 2.0 distinguish the progression of the Internet to interactive online communication, participation, and engagement. a. True b. False 38. Digital footprint is defined as your profile of personal information, accessible online to a spectrum of people. a. True b. False 39. “Digital engagement” is important. It is a smart idea for brands to embrace social media because it can garner digital engagement in a measurable way for brands, such as with likes, clicks, and shares. a. True b. False 40. A click-through is the number of page elements, or hyperlinks, that have actually been requested as the user moves from a display/banner ad to the related link at the corporate/brand home page. a. True b. False

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Chap 14_8e 41. Click fraud relates with charging or paying for advertising online, thinking a consumer clicked on the ad, but it instead was fraud and not actual consumers. a. True b. False 42. Brands should leverage social media as a digital advertising opportunity that can target by consumer lifestyle. a. True b. False 43. A privacy seal usually is a logo that shows the site has been endorsed by a member of a third-party privacy endorser. a. True b. False 44. Some of the world’s leading brand visionaries, as well as new brands, align their corporate websites and digital/social/mobile media objectives based on consumer behavior to enhance their return on investment for advertising and IBP. a. True b. False 45. A person fills out an online form and gives his permission to a bookstore retailer to send messages about new books, sales, and special incentives to his email address. This is referred to as viral marketing. a. True b. False 46. A big concern is privacy as an issue in digital, social, and mobile media. a. True b. False 47. A digital footprint is the trail of social media posts, videos, photos, status updates, and online information on a person, organization, or brand. a. True b. False 48. An important term in media as it relates to the Web 2.0 is user-generated content or consumer-generated content. a. True b. False 49. Interactivity refers to two-way communications that can feed off one another, and it is an advantage of digital media. a. True b. False

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Chap 14_8e 50. The omnichannel nature of shopping these days is important as consumers choose how they wish to browse and buy. a. True b. False 51. Multiple screens and/or multiple devices are an important consideration in advertising and integrated brand promotion today. a. True b. False 52. Concerns for advertisers include what kind of content will be adjacent to digital, social, and mobile ads when using programmatic media, as well as if their ad is placed near fake news or other non-credible content. a. True b. False 53. A customer searches for laptop brands online, and finds other advertisements from well-known laptop brands quoting the prices of their products. This is an example of cost-per-click. a. True b. False 54. In the context of social media advertising, owned media are brand assets or objects created within social networks by your organization, such as a Facebook page or a mobile app. a. True b. False 55. Digital and mobile advertising is easily integrated and coordinated with other forms of integrated brand promotion. a. True b. False 56. Advertising and brand placement within video games is called advergaming. a. True b. False 57. An advantage of using email marketing is the lack of measurability of the effectiveness of the campaign. a. True b. False 58. In a marketing context, there is a focus on brands and organizations “liked” and mentioned through network effects, including viral sharing. a. True b. False 59. More and more media buys are being made programmatically or automatically, a trend that is increasing. a. True b. False

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Chap 14_8e 60. Ephemeral means that the content lasts for a short time, so social media sites like Snapchat are relevant to this term. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

61. ___________ is a metric that measures the percentage of people who come from or go to another site after clicking on one site. a. Visibility b. A social media engagement c. Site stickiness d. Bounce rate 62. (Scenario 14-3) The owner of a new athletic-training facility decided to pay to have its ads appear on athletics and training-related search results on Google. This kind of advertising is known as _________. a. sponsorship b. paid search c. search engine optimization d. corporate home page 63. Cranial Inc. has newly set up a website where customers can obtain information as well as buy its products. It notices that people who visit its website are instantly interested in the products, and 85% of the visitors end up making purchases. However, it also notices that the number of visitors are very low as they don't find it on their searches very often. Which of the following should Crayola include in its IBP campaign to increase its website's visibility and traffic? a. Pop-under ads b. Interstitial ads c. Buzz marketing d. Search engine optimization 64. Which of the following is true of online communities? a. It depends on mass collaboration as individuals simultaneously create value for themselves and others. b. It involves one-way messaging and online information retrieval. c. It cannot be used for addressing consumers during crisis management. d. It ignores consumer privacy, and people feel unsafe in sharing information on the Internet.

65. To be most effective, brands should leverage social media as a digital advertising opportunity that can target by _______. a. demographics b. consumer lifestyle c. geographic locations d. consumer age

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Chap 14_8e 66. (Scenario 14-4) The marketers at Visualizers talk to Optima about banner ads that have created problems in the online market. Which of the following is likely to be a common problem when banner ads are placed on the websites of other firms? a. They are easily imitated by competitors. b. They add to high advertisement clutter. c. They decrease Web page load times. d. Their effectiveness cannot be measured or tracked.

67. A point of understanding online consumer behavior is essentially to: a. catch people’s attention and entice them to visit the marketer’s home page. b. compute a site’s advertising value based on traffic, ad rates, and evaluations of the site’s quality. c. help bring more relevant and useful ads that are specific to consumers' wants and needs. d. fine-tune a Web user’s search to more relevant and specific websites.

68. ________ is how a consumer or brand uses images and text online to construct or showcase its identity. a. Virtual identity b. Social couponing c. Personal identity d. Blogging Scenario 14-3 With social media websites such as Facebook and Twitter garnering so much attention from consumers and businesses alike, it is hard to believe that only 20 percent of small businesses are utilizing the sites to help promote their products and services. But this figure is precisely what was reported in a 2009 study conducted by MerchantCircle, a social network for small businesses. When the survey results were released in 2010, experts were not surprised to see the percentage of social media users increase to nearly 50 percent. According to Darren Waddell, vice president of marketing at MerchantCircle, companies are turning to social media for advertising because it is relevant and an inexpensive way to reach target consumers. Rather than pouring large sums of money into traditional marketing, business owners are finding more creative ways to promote their brand.

One of the more common practices for small business owners utilizing social media is including URLs on business cards—of all sites, Facebook (no surprise) was the most common site to make it onto business cards.

(Jon Swartz, “More Small Businesses Use Facebook, Twitter to Promote.” USA Today, July 21, 2010.)

69. (Scenario 14-3) One small business owner found that when he started using Facebook, he began establishing stronger relationships with some of his less consistent customers. This was because he started a business page on Facebook and all his customers liked this page. They held discussions on it, and invited other potential customers to join in. Even the less consistent customers became regular visitors of this page. In advertising terms, this Facebook page would be called _______ media. a. owned b. earned c. paid d. derived

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Chap 14_8e 70. (Scenario 14-4) The researchers at Visualizers determine that many art supply stores and galleries have websites for local customers to learn more about creating art through various media. They suggest that Optima should provide free tips and demonstrations related to producing art that would encourage potential buyers and current customers to try new techniques, and add their own suggestions. Generating this type of social interaction around Optima products will involve creating: a. an Internet presence. b. integration with television marketing campaigns. c. a mobile marketing plan. d. consumer engagement through interactivity.

71. On a cost-per-thousand (CPM) basis, the process of running digital ads: a. is virtually nonexistent because there is no charge for most ads. b. is much less expensive than ads placed in traditional media. c. compares favorably with ads placed in traditional media. d. becomes a great deal more expensive than ads placed in traditional media.

72. ___________ is the process of consumers marketing to consumers over the Internet, through electronic, or inperson word of mouth transmitted through emails and electronic mailing lists. a. Mobile marketing b. Viral marketing c. Social couponing d. Social gaming 73. Which of the following is accurate? a. There is a sharp rise in traditional media. b. Social media cannot have a seamless interface with television. c. There can be some synergies for online advertisers that can actually enhance one’s social networking experience. d. Consumers online consumer behavior disappears.

74. (Scenario 14-3) A new business owner is looking into various forms of advertising. Of all the different forms, he seems to be most interested in advertising through interactive media. This may be because: a. consumers no longer pay attention to advertising on television. b. interactive media is more beneficial to small business owners. c. traditional forms of advertising provide inaccurate information to consumers. d. two-way communication has an important effect on click-through and sales potential.

75. Which of the following is a disadvantage of using online press releases for PR? a. They cannot disseminate information accurately. b. They are ineffective in targeting specific audiences. c. They are too expensive for most firms to consider. d. They cannot be picked up by major news services or online newspapers.

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Chap 14_8e 76. Which of the following is an advantage of using online sales promotions? a. They promote banner ads and pop-ups along with the product. b. They provide clear directions to customers on how to buy a product from the nearest store. c. They create bonds that build social pressure to buy the brand. d. They give consumers an opportunity to check out new products without the pressure of a salesperson.

77. How can an advertiser best leverage the power of E-search in advertising? a. By making an ad that motivates consumers to use the Internet to obtain more information on a brand b. By completely moving from traditional to digital advertising c. By making social media app ads that tend to generate consumer loyalty toward a brand d. By calculating the I-Traffic Index that computes a site’s advertising value 78. A(n) __________ advergame brand integration, integrates a brand spokesperson or personality as a main character within the game. a. associative b. collaborative c. demonstrative d. illustrative 79. (Scenario 14-3) Two young women decided to open a comedy club, and they chose YouTube as their main outlet for advertising. They put together a five minute clip of an improvisation routine and posted it on the site. Soon they noticed that the total number of views for the video had skyrocketed to 25,000. They found that the video was being sent all over the country via email and Facebook messages. This short video is now a form of ___________. a. mobile marketing b. online retailing c. interactive advertising d. viral marketing 80. Which of the following is true of paid media? a. It leverages a call to action to like brands on social media sites. b. They are advertisements that can be purchased on a social network or other digital platforms. c. It is the incremental exposure that a brand earns through viral engagement and interactions with the brand. d. They are brand assets or objects created within social networks by an organization.

81. (Scenario 14-2) When you visited the restaurant site, the marketers were able to collect some information about you and your buying habits. Marketers are able to do this by: a. counting the number of hits made on the site. b. using software that monitors one's digital footprint. c. tracking the email registration on the site. d. counting keystrokes used to move through the site.

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Chap 14_8e 82. A ________ is a logo that shows that a site has been endorsed or is a member of a third-party privacy endorser. a. digital footprint b. post ad c. cookie d. privacy seal 83. The Lego Star Wars is a video game that features Lego toys based on the Star Wars theme. Players need to play as one of the toy characters to defeat enemies, and complete the game chapter by chapter. This game is a(n) _________ advergame based on Lego's toys. a. illustrative b. demonstrative c. associative d. collaborative 84. In which of the following ways can consumers block websites that track them? a. By changing their social network login passwords regularly b. By making use of cookies when they visit websites c. By using adtrackers and security settings d. By having just one social networking account per person 85. A(n) _________ ad is an ad that opens in a separate window while a page is loading. a. post b. interstitial c. pop-up d. app 86. ________ are consumer-generated images that an online user portrays, which may or may not accurately coincide with the consumers' "real identity." a. Click-throughs b. Avatars c. Big data d. Interstitials 87. An organization needs to reach out to a specific target audience, and has decided that it wants to use social media advertising to do so. It wants to buy specific keywords to accurately target the audience who would want to see these ads. The aim is to get a high effective exposure rate and engagement rate without invading consumer privacy. Which of the following advertising revenue models would best suit the organizations’ needs? a. Bidding for ad words b. Pay-per-click c. I-Traffic Index d. Pop-under ads

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Chap 14_8e 88. Which of the following is an advantage of the pay-per-click model? a. It is less vulnerable to click fraud. b. Advertisers have to pay only for a pulled exposure. c. People who click on the ad usually buy the product, which is more profitable. d. It is the least expensive Internet advertising model.

89. Which of the following is true of a blog? a. It contains text, but not graphics and videos. b. It allows users to tag other users in their networks. c. It focuses on helping users find and add friends and contacts. d. It is a site written and maintained by individuals.

90. One of the advantages of using social media is that: a. it provides advertising opportunities to World Wide Web advertisers. b. it raises reach and spreads the word quickly. c. it cannot be used by competitors to create negative publicity about an organization. d. it is not vulnerable to hackers.

91. The lowest level at which advergaming brand integration can occur is known as a(n) _________ level. a. collaborative b. associative c. illustrative d. demonstrative 92. __________ enable users to post and read short messages, and the posters are restricted by the number of characters in the message. a. Micro-blogs b. Add-ons c. Metafiles d. Widgets 93. Buzz or marketing or eWOM that a brand gets naturally or without paying for advertising relates with ______. a. owned media b. display/banner ad c. post ad d. widget

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Chap 14_8e 94. (Scenario 14-2) While reading the editorials on the magazine site, a reader was so glad that he was no longer interrupted by annoying ads. Due to widespread annoyance with these online distractions, many service providers offered blockers that greatly reduced an advertiser’s ability to get __________ onto a user’s screen. a. paid search advertising b. pop-up ads c. rich media d. opt-in messages 95. Rich is the marketing manager of a small corporate airline that handles business flights for executives and celebrities. It also provides group charters for major sporting events, concerts, and festivals. To reach its audience, airlines will have to avoid the usual fare, as the target audience for this product usually ignores common advertising. However, they occasionally watch worthwhile videos on social media sites. In which of the following advertising avenues is Rich most likely to invest in? a. Viral marketing b. Micro-blogging c. Advergaming d. Social couponing 96. One advantage for advertisers using digital media is that: a. it is much more secure than traditional forms of media. b. consumers consider commercial messages via Internet to be more reliable. c. the format is unique and uncluttered because few commercial organizations use it. d. it is a precise way to target consumers, particular markets and narrow segments.

97. (Scenario 14-3) An entrepreneur decided to get endorsed by a third-party facilitator to show his consumers that he believes in keeping their information confidential. He got a logo from the third-party facilitator showing that he had been endorsed. This logo is called a __________ . a. click-through b. privacy seal c. digital footprint d. digital signature 98. Which of the following is unethical in the context of advergames? a. Targeting children with advertising content b. Targeting men aged 18-32 who work full time c. Prompting a change in consumer behavior d. Creating awareness about social issues

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Chap 14_8e Scenario 14-4 Optima Artistic Tools has been manufacturing art supplies, in Boston, for almost 100 years. It is a successful business that works with art stores around the nation. Optima produces materials for different varieties of media such as paints, pencils, charcoals, clays, brushes, papers, canvases; and also equipment such as palettes, easels, drawing tables, etc. Optima is ready to market these products online and has just hired an Internet advertising consultant, Visualizers Inc. It has aimed for a 9 percent profit from Internet sales by the end of next year.

99. (Scenario 14-4) Visualizers tells Optima managers that the best way to go about setting up banner ads is to pay the website owners only when users click on the ads. Optima will then have to pay only if a user visits the link. In this case, Visualizers is referring to the _________ model of advertising payment. a. pay-per-click b. click-through c. keyword bidding d. paid search 100. In the context of photo-sharing websites, which of the following is more likely to attract the attention of a viewer? a. A photo that looks natural and authentic b. A photo that has been digitally enhanced c. A photo that was captured using professional equipment d. A photo that was captured by a professional photographer 101. The core of social media is: a. consumer privacy and confidentiality. b. the convenience it provides to direct marketing. c. the security of individual and brand identity. d. individual empowerment and democratization of knowledge.

102. __________ is two-way communication that can feed off one another, and is an advantage for social media. a. Virtual identity b. I-Traffic Index c. interactivity d. Web 2.0 103. Which of the following best defines social media? a. It involves writing articles related to business and publishing them online on syndicated article sites. b. It consists of developing a website or placing banner advertisements on other web sites. c. It is a group of Internet-based applications that allows for the creation and exchange of user-generated content. d. It is a system of Internet servers that support specially formatted documents.

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Chap 14_8e 104. Which of the following is fundamental to achieve a high exposure rate, and to drive interaction and engagement for advertisements through social media? a. Having a large network and a scalable fan base for the brand page b. Placing ads on websites that attract visitors from different market segments c. Promoting sponsored stories on social networking sites d. Setting up pay-per-click ads on social networking websites 105. _________ is often a huge volume of structured and unstructured data that is much too large to analyze or process using traditional ways. a. RDBMS b. Ordinal data c. Big data d. Metadata 106. (Scenario 14-4) Managers at Optima want to better understand the cost implications of advertising on the Internet. Visualizers' media researchers prepare a presentation using four traditional media placements to compare. The banner ad CPM falls somewhere below the cost of the top 10 market newspapers and magazines; however, it is higher than television. Visualizers points out that the advantage offered by the banner ad is its: a. capacity for blanketing the world of online consumers with the Optima brand. b. ability to deliver to a highly desirable, segmented, and motivated audience. c. quick-change option that allows marketers to make changes to the creativity of the ad. d. ability to insert itself into interactive situations where consumers don’t expect to see it.

107. (Scenario 14-2) The site where you solved a murder mystery is sponsored by a company that specializes in publishing mystery novels. Part of the site is devoted to a full catalog that lists the company's titles currently in print, and other parts offer interactive activities, musings of well-known writers, and games involving mysteries to solve. This site is using ________ to promote its novels. a. app ads b. big data c. search engine optimization d. advergaming 108. It is important to know if a company respects consumer privacy before opting to receive communication from it because: a. an individual can be identified through a compilation of anonymous information. b. a consumer must be aware of a company's ethical standards to provide appropriate feedback. c. the company may circulate an individual's email address and invade his or her privacy. d. if a company lacks ethical standards, its products are more likely to be of substandard quality.

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Chap 14_8e 109. As a brand manager, one must track what is being said by consumers, interpret consumer-generated information, and respond to social media posts and comments. This entails: a. spending time on social networking sites. b. hosting regular feedback sessions. c. developing brand image. d. expertise in branding and excellent socialization skills.

110. Who is working on mobile measurement guidelines? a. Consumers b. The industry review board of the Interactive Advertising Bureau c. The FDA d. The FCC 111. (Scenario 14-4) Visualizers informs Optima that one way in which the pricing for the banner ads can be evaluated is by calculating the value created by the advertisement in terms of traffic, placement and size of ads, ad rates, and evaluations of the site’s quality. This can be done by computing the _________ for the ads. a. big data b. bounce rate c. site stickiness d. I-Traffic Index 112. Tina is playing Candy Crush on Facebook. All of a sudden, she gets a message saying that if she watches an ad, she can earn an extra life. This is an example of a(n) __________. a. disclaimer ad b. sponsored story c. app ad d. post ad 113. A recent graduate decides to pursue his passion in writing. His strengths are that he is very good with digital and interactive media, prefers writing in a journal format, and has a unique and informal style of writing. Which of the following avenues would best suit his abilities? a. Writing a newspaper column b. Creating a website c. Writing a blog d. Developing a corporate home page 114. (Scenario 14-2) When you clicked off the coupon site, an ad remained on the screen with bright colors, large letters, and a $2 coupon for a frozen pizza. This is known as a __________. a. direct email b. pop-under ad c. pop-up ad d. splash screen

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Chap 14_8e 115. In the context of video games, which of the following is true of advergames? a. There are two levels of brand promotion within an advergame. b. The advergame content centers around a brand. c. It is the concept of showing ads at the end of a video game. d. Repeated display of advergames has a positive effect on players' attitudes toward a brand.

116. (Scenario 14-1) One way to find a site and related businesses is to go to Bing and look at the list under social networking sites. Technically, Bing is a(n): a. analytical software system that allows e-commerce. b. mash-up that features multiple widgets. c. portal with search engine technology. d. website that acts as a corporate/brand home page.

117. An advertiser for a weight-loss product decides to use paid search. This entails: a. paying websites and portals to place ads in or near relevant search results based on keywords. b. offering the same content material that a consumer would normally pay for using traditional media. c. paying consumers a small amount to have them click on the particular websites. d. promoting the product at the portal or other entry places to the Web. 118. A soft drink advertiser decides to run banner ads to attract teenagers to its interactive home page. Its agency places these ads on websites related to teen magazines, action gaming, and extreme sports to: a. link the banner with the home page. b. target specific market niches. c. offer high-volume traffic rather than low-volume traffic for the same price. d. boost web visits and gain more likes.

119. (Scenario 14-1) Foursquare respects its users' privacy, and lets them decide if they want to share their location with others or not. It always provides privacy options to users wherever it is required. By doing this, Foursquare is able to address consumer concerns about: a. what could be preventing users from completing online. transactions. b. creating online resistance in Foursquare's user groups. c. preventing users from creating synergies with online advertisers. d. sharing casual information.

120. An Internet user goes to a large portal, and types in a few key words. He receives a list of websites that might be of interest. Most often, the higher a site appears on the list, the more likely the user will visit that website.

Therefore, advertisers want their websites to appear first. Which of the following concepts is described in this scenario? a. Click fraud b. Ultrabroadband c. Viral marketing d. Search engine optimization

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Chap 14_8e 121. __________ is an advertising revenue model where the advertiser is charged by the number of people who click on the ad to pull it up for more information. a. Bounce rate b. Click-through c. Pay-per-click d. Paid search 122. (Scenario 14-1) One of Foursquare’s strengths is that it offers a very interactive experience to its users.

Tracking brand interactivity over the Internet can be done in ways that are not possible using traditional advertising. This is because the Internet: a. allows advertisers to track users and their behaviors through their digital footprints. b. allows users to inform companies about the sites they have visited recently. c. is cheaper for companies to operate, and they can spend more money on tracking software. d. helps consumers provide an instant feedback when they visit the website.

Scenario 14-1 When the social networking/gaming website, Foursquare, was launched in 2009, it was only accessible to residents in 100 U.S. cities. One year later, an updated version of the service allowed check-ins from locations all over the world, and has over 500,000 users internationally. The site which allows registered users to connect with friends and update their location receives over one million check-ins per week. When users visit a particular store their profile is automatically updated, and they can share their feelings about their experiences. The site now holds partnerships with over 800 establishments worldwide, and high-profile partnerships with the Bravo Network and The New York Times have greatly increased the site’s popularity.

123. (Scenario 14-1) A search on Bing using the phrase “foursquare social media” results in thousands of matches, but these matches appear in order of relevance. Bing is able to achieve this because it: a. accepts multiple registrations from a single website. b. uses the search engine optimization technology to direct users to sites that may interest them. c. demands payment from company's in exchange for repeated mention on search results. d. reflects the number of people actually searching on a particular phrase at any particular time.

124. Which of the following is true of traditional media and digital media? a. Digital media can never have the reach or impact that traditional media has. b. Traditional media is a dying medium and social media will soon replace it. c. Both digital and traditional media need to create their own niche and function independently of oneanother. d. Both traditional and digital media should be seamlessly integrated for maximum impact.

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Chap 14_8e 125. (Scenario 14-1) As the number of Foursquare users increases, so will the marketing efforts to appeal to the visitors of the site. Many of the site’s users access the site via their cell phone, and companies are forced to create advertisements to fit these media channels. These advertisements are examples of: a. intrusive marketing. b. mobile marketing. c. viral marketing. d. splash marketing.

126. The managers of a sandwich shop want to publicize their stores. They would like to invest in a sales promotion strategy that would promote positive word of mouth, mass exposure, increased brand awareness, and getting new customers. Their aim is a high frequency promotion that leads to speedy sales. As an Internet advertising specialist, which of the following online sales promotion strategies would you recommend? a. Social couponing sites b. Ads on the radio c. Pop-up ads d. Display/banner ads 127. The integration of Web activities with other components of the marketing mix is one of the easiest integration tasks in the IBP process. This is due to the: a. new and important opportunities for Web advertisers with respect to interactivity. b. frequency with which consumers check social media. c. sheer volume and popularity of going online in general. d. flexibility and deliverability of Web advertising.

128. A car manufacturer decides to promote the sales of his product by offering discounts online via an email campaign. Consumers simply have to click on a link in the email, and they will be able to avail the offer. The advantage of using this technique is that it not only increases brand awareness for the company, but also: a. measures the number of users who display interest in the site. b. provides information on the bounce rate. c. increases consumer loyalty toward the brand. d. can help in maintaining a consumer database.

129. Which of the following is a predominant concern relating to social media? a. Management of various portals b. Consumer privacy c. Cost-effectiveness d. Restrictions to freedom of speech 130. Which of the following is true of mobile marketing? a. The recall rate for mobile marketing is low. b. Consumers cannot access videos on their mobile devices. c. Consumers will always receive promotions that are relevant to them. d. Promotions will always reach mobile users directly on their devices.

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Chap 14_8e 131. Which of the following is an example of site stickiness? a. The official Facebook page of Peyton Inc. is under maintenance. b. A consumer visits his Facebook profile every evening after reading his emails. c. Fifty percent of the visitors to Peyton Inc.’s website move onto another site within 10 minutes of visiting the site. d. A consumer visits the Peyton Inc. website several times a day, and spends hours checking the new collection.

Scenario 14-2 You open up your laptop to begin writing a term paper for your English literature class. You do a quick Google search on a few key phrases involving Shakespeare, Dickens, and Hemingway. But before you go further, you play a few video games, check your email, visit a couple of music websites, take a cyber tour of a new sports stadium, go to a coupon site, solve a murder mystery, go back to Google to check out a big name in the news, submit a slogan for a new local restaurant, and read a couple editorials on a magazine site. Then, you figure it’s time to get down to work.

132. (Scenario 14-2) In running keyword searches using Google, you took part in a common practice. Advertisers could make use of this by paying Google and making them: a. display ads on a site after a page has been requested but before it has loaded. b. place ads in or near relevant search results based on key words. c. track the users who use specific keywords over and over again. d. measure the click-through rates of the ads that are placed.

133. Explain the terms paid search and search engine optimization? What are the similarities and differences between the two? Use an example to explain each of the concepts.

134. Which digital advertising tools can an advertiser use to make his home page as popular as possible?

135. Explain why it is crucial for advertisers to understand how consumers think, feel, and act regarding social media, online advertising, and e-commerce. Can social media be leveraged profitably? Explain.

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Chap 14_8e 136. Explain the role of online privacy in social media advertising. What are cyber-identity theft and online resistance?

How can they affect social media advertising? List out the ways in which individuals can protect themselves.

What is the consequence of blocking websites that track your digital footprint?

137. The unique characteristics of the Web has given advertisers who use it a definite edge over their competitors.

What are the advantages of the new digital/interactive media being used in advertising today? Discuss a product or service that has successfully demonstrated one or more of these elements in its digital/mobile advertising.

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Chap 14_8e Answer Key 1. True 2. True 3. True 4. True 5. True 6. True 7. True 8. True 9. True 10. True 11. False 12. False 13. True 14. True 15. True 16. True 17. True 18. True 19. True 20. True 21. True 22. True 23. True 24. True 25. True 26. True

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Chap 14_8e 27. True 28. True 29. True 30. True 31. True 32. True 33. True 34. False 35. True 36. True 37. True 38. True 39. True 40. True 41. True 42. True 43. True 44. True 45. False 46. False 47. True 48. True 49. True 50. True 51. True 52. True 53. False 54. True Copyright Cengage Learning. Powered by Cognero.

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Chap 14_8e 55. True 56. True 57. True 58. True 59. True 60. True 61. d 62. b 63. d 64. a 65. b 66. b 67. c 68. a 69. a 70. d 71. c 72. b 73. c 74. d 75. c 76. d 77. a 78. d 79. d 80. b 81. b 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 14_8e 83. b 84. c 85. c 86. b 87. a 88. b 89. d 90. b 91. b 92. a 93. a 94. b 95. a 96. d 97. b 98. a 99. a 100. a 101. d 102. c 103. c 104. a 105. c 106. b 107. d 108. a 109. a 110. b Copyright Cengage Learning. Powered by Cognero.

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Chap 14_8e 111. d 112. c 113. c 114. b 115. b 116. c 117. a 118. b 119. a 120. d 121. c 122. a 123. b 124. d 125. b 126. a 127. d 128. d 129. b 130. d 131. d 132. b

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Chap 14_8e 133. Both the terms refer to ways in which advertisers get their company's name on or near a list of results when a user searches on the Web. A paid search refers to the actions of advertisers on the Web, whereas search engine optimization refers to the behavior of consumers on the Web. Paid search is a process by which advertisers pay a fee to a portal or search engine site to place ads in or near relevant search results based on key words. For example, if you Google “baby toys” you will find ads for Internet toy retailers within or next to the list of search results. Paid search can also fine tune a Web user’s search to focus on relevant and specific sites. For example, when an astronomy buff who has made several searches on astronomy related terminology enters the word “Saturn,” the search will show results about the planet and not the car.

Search engine optimization (SEO) refers to the process by which the volume and quality of traffic from search engines is improved based on the surfers’ profiles. This affects the location of the site on a search results list. The higher that a site is shown on a list, the more likely that a user will visit the site, although the cost may be higher. For example, when a user types a key word on Google search, some of the most popular sites currently being accessed will come up first.

134. An advertiser can run display/banner ads at high-traffic sites. This will offer a relatively high level of exposure to an advertising message that can then send the surfer to the required site. One can place display/banner ads on sites that attract specific market niches relevant to the brand to encourage travel to the site. The advertiser can register his site with an online search engine selecting keywords so that the website address and a click-through connection will appear when users type in any of these keywords during a search. The advertiser can opt for a paid search with this engine to have ads for the site placed next to search results. One can offer widgets that allow users to customize the information they’d like to regularly receive from the advertiser. Finally, the advertiser can use traditional media as an effective way to increase interest about the site.

135. The role of digital and social media in advertising is a big one, and it will stay and grow with new technology such as mobile marketing. New media brings new vernacular to consumers. These online terms and brands have changed the way of online consumer behavior, advertising, and branding. Online advertisers should know where and why consumers go online, how that relates to where they go offline, as well as what makes them tick. This will help them understand consumer lifestyles, attitude, affect, emotion, and online consumer behavior so that they can maximize online and offline customer experiences. This will, in turn, help instill brand loyalty with offline, experiential marketing. Online advertisers should not just incorporate but also embrace social media to enhance their online presence. One way to leverage social media could be to align corporate websites and social media objectives to enhance return on investment for digital advertising.

136. It is key to explore consumer perception of both privacy and security because security refers to how safe the site or app is and privacy is more about how the host maintains consumer data and online consumer behavior. Establishing the highest standards for privacy and security are important for online brand managers. Doing so can help e-tailers make sure that they are accurately addressing concerns that their customers have that could prevent them from completing online transactions.

Cyber identity theft is having one’s identity stolen by online or digital means. It can inhibit some consumers from shopping and banking online. Online resistance is an attitude or behavior against the digital movement, at times. It can occur if consumers perceive that marketers and advertisers are trying to stomp on their sacred territory in the social media. Both of these can reduce online sales and transactions and thus the effectiveness of online advertising.

To protect their privacy, individuals can clear out needless cookies, read privacy policies, and pay attention to logos that show that a site has been endorsed or is a member of a third-party privacy endorser, known as a privacy seal. Though difficult to do, they can also keep a track of their digital footprint and choose to make their social media data private through the privacy settings of the websites.

People can choose to block websites that keep track of their online browsing data. This way their privacy will be more secure from unwanted intrusions. However, blocking these websites also means that fewer number of relevant or useful online ads will reach these people.

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Chap 14_8e 137. There are four major advantages of digital/interactive media: Interactivity is one of those lofty goals of advertisers that could never have been truly accomplished with traditional media, but is sometimes achieved through digital/interactive media. Ads in traditional media may have allowed consumers to clip coupons, enter contests, or write testimonial letters. But the new media are designed for all forms of interactivity—chats, blogs, comments, forums, activities, games, etc.

A click-through allows the user to click on an ad and get a virtual tour, visit a home page, read product specifications, enter a discussion about a brand, or most importantly, purchase the product online immediately. If advertisers can attract surfers to the brand website, there is the opportunity to convert that surfer to a buyer if the site is set up for ecommerce. Design components of various digital or mobile or tablet ad formats can have an important effect on clickthrough and sales potential. Integration refers to the ability of advertisers to include their home page URL as well as the online address of special promotions, contests, or related sites on virtually all of their other forms of advertising and promotion. Digital and mobile advertising is most easily integrated and coordinated with other forms of promotion. The integration of Web activities with other components of the marketing mix is one of the easiest integration tasks in the IBP process. This is due to the flexibility and deliverability of Web advertising. Social media also provides a seamless interface with the most traditional of IBP tools, television. Television ratings for live events, such as the Grammys and the Oscars, have spiked in recent years as viewers tweet and post on Facebook to alert friends to the awards and to their reactions to the proceedings.

On a cost-per-thousand (CPM) basis, the cost of Web ads for the most part compares favorably with ads placed in traditional media. The real attraction of digital is not found in raw numbers and CPMs, but rather in terms of highly segmentable and highly motivated audiences. The Internet is ideally suited for niche marketing. Engagement via a Digital Footprint. Companies, nonprofits, and human brands alike can engage others via their online presence. The integration of print campaigns with Facebook and a QR code that brings the consumer to the product’s website is a way to engage via hybrid channels. Based on privacy settings, online history of what one posts becomes a digital paper trail, available for anyone to reflect back on. The information that one shares creates a digital footprint, defined as your profile of personal information, accessible online to a spectrum of people.

Student examples may vary.

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Chap 15_8e Indicate whether the statement is true or false.

1. A manufacturer helps a retailer by sharing the cost of local advertising. This allows the manufacturer to have some control over the process, and the retailer to advertise for a lower cost. They are taking part in a form of business-market sales promotion. a. True b. False 2. Marketers must select only one sales promotion technique aimed at consumers, such as coupons, price-off deals, premiums, contests and sweepstakes, samples and trial offers, phone and gift cards, rebates, and frequency programs. a. True b. False 3. Premiums are items offered for a more expensive rate with the purchase of another item. a. True b. False 4. One advantage of sales promotions is that the results are simple to measure. a. True b. False 5. A manufacturer of dental care products sets up a new promotion by attaching one of its toothbrushes to its boxes of toothpaste. This is an example of a mobile sampling technique. a. True b. False 6. A price-off deal offers a consumer cents or even dollars off merchandise at the P-O-P through specially market packages. a. True b. False 7. The fight for space on grocers' shelves has become very competitive, so manufacturers will do anything to get stores to stock their items—except paying a fee, which is illegal. a. True b. False 8. It is estimated that almost one-fourth of corporate America gives rebates as a type of business-market promotional technique. a. True b. False 9. Materials that are used in the retail setting to attract shoppers’ attention to a product convey primary product benefits or highlight pricing information. They are referred to as Point-of-Purchase advertising. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 15_8e 10. P-O-P promotion can aid manufacturers by attracting consumers, but not by securing relationships within trade and business markets. a. True b. False 11. Sales promotion can break through the media clutter. a. True b. False 12. Retailers often run trade promotions simultaneously along with consumer promotions. a. True b. False 13. Support media are used to introduce a new message beyond the one being delivered by other advertising vehicles, marketing plans, and promotional techniques. a. True b. False 14. Coupons are the oldest and most widely used form of sales promotion. a. True b. False 15. The complex and information-rich tools of IBP can help create brand loyalty and competitive advantage. a. True b. False 16. Sales promotions can be used to disrupt competitors’ marketing strategies. a. True b. False 17. Sales promotion is the use of techniques that create a perception of greater brand value among consumers, the trade, and business buyers, but the techniques can’t entail an incentive. a. True b. False 18. Sales promotion can attract attention and motivate trial purchase, but is not allowed for introducing new brands to the public. a. True b. False 19. One of the more noteworthy examples of promotions depicted in the book is by Axe; Axe did one of the most unusual promotions by offering consumers a chance to go to space. a. True b. False

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Chap 15_8e 20. Billboards have evolved from outdoor signs and posters, which represent one of the oldest forms of marketing dating back to the early promotional tools of the 1800s. a. True b. False 21. A medium where advertising, the product, and the consumer together in the same place at the same time is Pointof-Purchase advertising. a. True b. False 22. Despite more advertising clutter, transit advertising works well in dense, urban cities rather than in rural small towns. a. True b. False 23. A display rack that stocks cigarettes is placed above the cash register so the cashier can reach the product for the consumer. The rack has signage on the front advertising the cigarette brand. This is called an overhead merchandiser. a. True b. False 24. One objective for promotions in the trade channel is to increase store traffic, which benefits both manufacturers and retailers. a. True b. False 25. Objectives for consumer-market sales promotion include stimulating a trial purchase, repeat purchases, larger purchases, or to introduce a new brand, service, or product. a. True b. False 26. Today’s forms of out-of-home media can target specific demographic segments by neighborhood using customized mobile messages. a. True b. False 27. The advantage that sales promotions have over advertising is that they are measurable and they can often motivate consumers to buy larger quantities or try new brands. a. True b. False 28. Historically, more money has been budgeted for sales promotion than for advertising. a. True b. False

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Chap 15_8e 29. A coupon entitles a buyer to a designated reduction in price for a product or service, and is the oldest and most widely used form of sales promotion. a. True b. False 30. Out-of-home media is just another name for a billboard, and billboards are the only form of out-of-home media. a. True b. False 31. A dentist offers a deal in which customers who have had two teeth whitening services over the last year get the third one free. This is an example of a sampling program to stimulate repeat purchases. a. True b. False 32. One advantage of using sweepstakes and contests is that they can quickly and easily communicate the brand message through the game. a. True b. False 33. Sales promotion is more oriented to techniques used to stimulate demand and attract attention in the consumer market. a. True b. False 34. A self-liquidating premium requires a consumer to pay most of the cost of the item received as a premium. a. True b. False 35. A risk of sales promotion is that it could create a price orientation. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

36. Which of the following is true of sampling? a. It is available to distributors alone. b. The customer receives their money back. c. The product is offered at a discounted price. d. The consumer gets the opportunity to use a brand on a trial basis with less risk.

37. The precision shopper is demanding greater __________across all purchases. a. flexibility b. return options c. technological interfaces d. value Copyright Cengage Learning. Powered by Cognero.

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Chap 15_8e 38. A VP of marketing wants to look at all possible forms of business-market promotions to gain and maintain lucrative customers. He meets with associates, and they review the five main areas of promotion techniques aimed at business buyers. They are: a. trade shows, business gifts, premiums and advertising specialties, trial offers, and frequency programs. b. incentives, allowances, training programs, cooperative advertising, and sampling. c. merchandise allowances, cash allowances, trade shows, training programs, and incentives. d. premiums and advertising specialties, frequency programs, incentives, allowances, and cooperative advertising.

39. In an era of cost cutting and shareholder scrutiny, companies are demanding ___________ across all functions, including marketing, advertising, and promotions. a. more venture capitalists b. less transparency c. less hours d. greater accountability 40. The oldest form of advertising is the _________. a. coupon b. daily c. directory d. billboard 41. A benefit with mail sampling is that ____________. a. certain zip-codes can be targeted b. it can be sent with push money to consumers c. it gives consumers off-invoice allowances d. it works best with heavy goods 42. (Scenario 15-3) Among all the products with sales promotions in the store, which of the following involved Point-of Purchase advertising that might have cost the manufacturer a few pennies? a. The pain medicine b. The frozen pizza c. The coffee d. The cereal 43. (Scenario 15-4) The marketers at General Mills have learned that along with Kellogg's and Quaker Oats, they often target the same customers with their advertising. This problem of customers receiving too many messages from too many firms has been addressed with sales promotion tactics featured in advertising such as coupons included in magazine ads, or rebate offers mentioned in TV commercials. This is an example of _________ driving growth in sales promotion. a. short-term orientation b. media clutter c. elasticity of demand d. power of retailers Copyright Cengage Learning. Powered by Cognero.

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Chap 15_8e 44. (Scenario 15-1) Because companies realize consumers will be visiting stores more frequently during the holiday season, several toy manufacturers are paying direct cash to retailers in exchange for placing their brand in the most visible locations. These cash payments are known as __________. a. rebates b. push money c. off-invoice allowances d. slotting fees 45. (Scenario 15-4) General Mills’ salespeople handle and monitor a number of promotions for its cereals. Which of the following involves Point-of-Purchase advertising? a. A scratch-off card to win a mountain bike inserted in each box b. A free granola bar attached to each cereal box c. A small box of cereal delivered with the daily newspaper d. A large display of cereal boxes at the end of the grocery aisle 46. (Scenario 15-6) Pretzels paid Ted's grocery a fee to sell its products. This is known as: a. a slotting fee. b. push money. c. a premium. d. a merchandise allowance.

47. According to a classic quote, which of the following has been described as “the last five seconds of marketing?” a. Trade show b. Sampling c. Packaging d. Directory advertising

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Chap 15_8e Scenario 15-1 One of the nation’s most popular times for sales promotions was a great deal longer than usual in 2010. Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November. Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move. Executives from a number of companies began to realize that consumers respond to the word “sale” regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran. Companies designed new sales flyers and circulars, and began to promote the various sales on their websites. Other companies such as Target were also implementing a similar strategy; by emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season.

(Stephanie Clifford, “Stores Push Black Friday Into October.” The New York Times, October 28, 2010.)

48. (Scenario 15-1) On one of the company’s websites, a sweepstakes was designed to award one lucky customer after he or she provided feedback on a number of planned sales promotions for the holidays. One characteristic of a sweepstakes is: a. winners can only be awarded with monetary prizes. b. winners are determined purely by chance. c. there can only be one winner per sweepstakes. d. there is a complex system for determining a winner.

49. (Scenario 15-1) During the holiday season, Snuggles, a winter clothing retail store, offers its employees $10 for every additional sweater that they sell. This is an example of: a. a free premium. b. a merchandise allowance. c. push money. d. a slotting fee.

50. Sales promotion techniques act as an incentive to purchase the brand featuring a promotion, even if another brand: a. has more market share. b. offers more variety. c. offers more benefits. d. has a lower basic price.

51. The sales-promotion techniques used within the trade market are: a. couponing, cash allowances, incentives, and slotting fees. b. incentives, allowances, training programs, and cooperative advertising. c. case allowances, sweepstakes, couponing, and training programs. d. slotting fees, Point-of-Purchase displays, consumer rebates, and merchandise allowances.

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Chap 15_8e 52. A retailer is trying to target the “precision shopper,” who expects extra value in every single purchase. Which of the following promotional techniques would best increase the value of a brand in a customer's mind? a. Bill-back allowances b. Push money c. Off-invoice allowance d. Coupons 53. (Scenario 15-1) Implementing contests and sweepstakes can be a challenging task. One of the difficulties in implementing an effective sweepstakes is: a. generating interest in the brand, not just in the sweepstakes. b. choosing a winner in a manner which keeps everyone happy. c. the entire implementation could falter and leave consumers disappointed. d. notifying the winner when the sweepstakes is over.

54. (Scenario 15-3) Which of the following promotional concepts was demonstrated by the company that hired a woman to hand out slices of pizza? a. Sale offer b. In-store sampling c. Premium d. Advertising specialty 55. A(n) ______ entitles a buyer to a designated reduction in price for a product or service. a. coupon b. off-invoice allowance c. bill-back allowance d. slotting fee 56. Some airlines ran into big trouble when they tried to increase the mileage levels needed to earn awards in their frequent-flyer programs. Which of the following risks associated with promotions have their actions demonstrated? a. The risk of having a product or service perceived as cheap b. The risk of alienating customers c. The risk of putting in too much time d. The risk of an increase in expenses over incomes 57. (Scenario 15-3) The store gives Stacey a loyalty card for the toothpaste which she must produce the next time she visits the store to purchase the product. This is an example of a ___________. a. push strategy b. rebate c. gift card d. frequency program

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Chap 15_8e 58. (Scenario 15-2) Sounds Good commissions the design of fifty cardboard displays for record stores as part of a short-term promotional display. This means that the display will be used for a maximum of ______ months. a. three b. six c. twelve d. sixteen 59. Which of the following are the two broad categories of Point-of-Purchase materials? a. In-house displays and out-of-the-house displays b. In-store merchandising formats and out-of-store promotional formats c. Push messages and pull messages d. Short-term promotional displays and long-term permanent displays 60. (Scenario 15-2) The displays commissioned by Sounds Good need to be set up and maintained. Any record store that agrees to do this gets several copies of Planet Moon CDs and past releases from Sounds Good for free.

This is known as a(n) _________. a. incentive b. merchandise allowance c. maintenance exchange d. off-invoice allowance 61. A granola bar included in a box of cereal is a: a. self-liquidating premium. b. push strategy. c. free premium. d. price-off deal.

62. Increasingly, in-store demonstrators giving samples are also: a. explaining the difference to customers between their sales promotions and advertising objectives. b. telling the consumer the history of the brand. c. providing comedy routines. d. handing out coupons along with the sample.

63. Which of the following is a form of allowance allowed to retailers and wholesalers? a. Free premiums b. Rebates c. Slotting fees d. Contests

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Chap 15_8e 64. A distinguishing feature of a self-liquidating premium is that it requires the consumer to: a. mail in the premium to get reimbursed. b. pay most of the cost of the item received. c. buy two other items at regular price. d. guarantee a repeat purchase.

65. A manufacturer devises a program to encourage members of the trade to purchase its brand. It offers salespeople an extra $100 for selling one of its refrigerators, $75 for selling one of its ovens, and $50 for selling one of its dishwashers. Which of the following promotional concepts for the trade channel does this involve? a. Push money b. Merchandise allowance c. Slotting fee d. Rebates 66. Although there appears to be some strong resistance, market research has indicated that 63 percent of consumers don’t mind __________ advertising. a. transit b. aerial c. billboard d. cinema 67. (Scenario 15-6) Quad sent the owner of Ted's grocery an expensive hand crafted sculpture. This is an example of a(n) _______. a. bribe b. advertising specialty c. premium d. business gift 68. A regional office supply store wants to understand and serve its customers better and compete with nationwide giants. It is looking for the most effective way to encourage repeat visits and build long-term loyalty with its customers. Which of the following forms of sales promotion would work best? a. Mail sampling b. Self-liquidating premium c. Rebate d. Frequency programs 69. A retailer has been doing very well over the years, and can now expect to get cash payments from manufacturers and suppliers if they want their products on the retailer’s shelves. Therefore, it regularly receives these payments, known as: a. bill-back allowances. b. slotting fees. c. merchandise allowances. d. off-invoice fees.

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Chap 15_8e 70. Trial offers have the same goal as samples, except that trial offers: a. are less expensive to utilize. b. are handed out in malls, retail stores, and other public places. c. involve more expensive items. d. arrive through mail or newspaper delivery.

71. Businesses like to promote their products with rebates because they: a. are purely based on luck. b. often do not get cashed in. c. are more popular with consumers than coupons. d. do not require maintenance.

Scenario 15-4 General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal.

72. (Scenario 15-4) General Mills inserts a sheet of coupons in the Sunday newspapers in major markets. This is a form of ___________ sales promotion. a. consumer-market b. business-market c. trade-market d. bill-back 73. (Scenario 15-2) Sounds Good knows that the release cannot succeed without gaining distribution in large record store chains. Many of these chains are refusing to carry the product, saying that shelf space is too precious to be used for an unknown band like Planet Moon. However, buyers for these chains say that they might be willing to carry the product if Sounds Good makes a direct cash payment to the chain. This is known in the trade channel as a: a. cooperative advertising fee. b. merchandise allowance. c. slotting fee. d. rebate.

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Chap 15_8e 74. (Scenario 15-4) On the back of its Cheerios boxes, General Mills has printed a form to fill out for a cookbook offer. The booklet is available to consumers for a nominal charge of $3.00, plus a $1.00 shipping and handling charge. This is an example of a(n): a. self-liquidating premium. b. on-package sample. c. advertising specialty. d. slotting fee.

75. For an item to be defined as an advertising specialty, it must: a. be a reward for meeting a goal or sales quota. b. contain no promotional message. c. be construed as a way of buying business. d. contain the sponsor's brand name or slogan.

76. (Scenario 15-6) Employees receive a bonus from Quad for selling two or more blenders. This is an example of: a. push money. b. a merchandise allowance. c. slotting fees. d. a rebate.

77. Which is a reason for growth in the use of sales promotion? a. Restriction of bill-back allowances b. Less push money c. Elimination of off-invoice allowances d. Promotions are often measurable Scenario 15-3 Stacey is making her weekly trip to the grocery store. She takes with her a National brand coffee coupon worth 50 cents. While shopping she was asked if she would like to try a slice of pizza from a sales person. After tasting it, the sales personal directs her to where the brand is available. When Stacey arrives at her favorite brand of toothpaste, she is delighted to find that she would receive a toothbrush along with the toothpaste attached to the box for no charge. She then runs into a cardboard cutout of an actor from a medical drama that she watches on TV, with a box full of pain relievers built into it. At her last stop, the cereal aisle, she notices that a brand offers a chance to buy a T-shirt with a picture of the brand's cartoon character.

78. (Scenario 15-3) Which of the objectives of promotion did all these activities have in common? a. Highlighting a particular product attribute b. Building an image for a product c. Eliciting immediate purchase of a product d. Creating loyalty toward a product

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Chap 15_8e 79. _________ advertising is a close cousin to billboard advertising, and in many instances it is used in tandem with billboards. a. Directory b. Transit c. Aerial d. Cinema 80. A trend in P-O-P advertising and displays is with _________. a. static signage b. cart directories c. interactive units d. parking space advertising 81. From the consumer’s viewpoint, directories like the Yellow Book have some disadvantages as promotional tools.

One particular problem is that it: a. has a massive volume of media clutter. b. requires long lead times that result in outdated information. c. annoys rather than provides information to potential buyers. d. is unable to offer detailed information.

82. (Scenario 15-3) Stacey is surprised to see that there was a toothbrush attached to the box of her favorite toothpaste. This is an example of a(n): a. on-package sampling. b. self-liquidating premium. c. mobile sampling. d. price-off deal.

83. (Scenario 15-6) Quads' customers need to mail them a form to receive 10% of their money back on purchases.

This is an example of a ________. a. rebate b. slotting fee c. merchandise allowance d. coupon 84. A difference between contests and sweepstakes is that: a. contests can require an entry fee, and sweepstakes cannot. b. contests generate long-term interest in a brand, and sweepstakes generate immediate interest. c. contests require skill, and sweepstakes require luck. d. contests focus on the game, and sweepstakes focus on the brand.

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Chap 15_8e 85. Billboards offer several strong advantages, but they are most effective as a promotional medium when they are in a location that: a. sends a message to the national and international market. b. incorporates specialized lighting. c. relates to an immediate need or desire. d. offers round-the-clock exposure.

86. (Scenario 15-2) Music Mixers, a manufacturer of recording equipment, speakers, and microphones based in Baltimore, is a supplier for Sounds Good. The owners of Sounds Good have purchased most of their studio equipment from Music Mixers. Now, Music Mixers is running a promotion of its own. When the sales representative visits, he drops off two expensive leather jackets with a small Music Mixers logo on one sleeve.

The jackets are considered ___________, and are part of a business-market sales promotion. a. advertising specialties b. business gifts c. premiums d. merchandise allowances Scenario 15-6 Ted's grocery store is extremely popular in a small neighborhood. Pretzels, a crisps company, has provided scratch cards inside each packet of crisps with the hope of a prize for the winner. Pretzels being a relatively new company had to pay Ted's grocery to sell its products. Quads, a blender manufacturer, has provided its customers with a chance to receive 10% of their money back by filling in and mailing the required details on a provided form.

It also stated that employees who sell two blenders would receive a bonus. Quad had sent the owner of Ted's grocery an expensive hand crafted wooden sculptor.

87. (Scenario 15-6) Pretzels has provided a scratch card inside each packet of crisps. This is an example of a __________. a. sweepstake b. premium c. gift card d. rebate 88. A national merchandising company is a major distributor of grocery and beauty products, and uses many tactics to get samples into the hands of consumers. The most popular type of sampling for food and cosmetics products is _________ sampling. a. on-package b. door-to-door c. mail d. in-store

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Chap 15_8e 89. Which of the following sales promotion tactics runs a risk of eroding a brand image or value? a. A frequency program b. A price incentive c. A sweepstake d. A contest 90. Experts suggest that the number of words on a billboard copy should not exceed _______. a. fifteen b. ten c. six d. three 91. Which of the following is true of a self-liquidating premium? a. It is a trade-market sales promotion technique. b. The consumer pays most of the cost of the item received as a premium. c. It is a business-market sales promotion technique. d. It is a point-of-purchase sales promotion technique.

92. Payments in the form of slotting fees, cash allowances, and incentives are popular due to the power of __________. a. retailers b. manufacturers c. consumers d. shareholders 93. The primary role for consumer sales promotion is to: a. encourage long-term loyalty of a brand. b. enhance the image of a brand. c. elicit a purchase from a customer. d. boost instant demand stimulation.

94. Which of the following is a difference between advertising specialties and business gifts? a. Specialties have the sponsor’s logo on them, while business gifts do not. b. Specialties promote brand awareness, while business gifts promote close working relationships. c. Specialties are quite expensive, while business gifts are inexpensive. d. Specialties are given on a selective basis, while business gifts are distributed to all.

95. P-O-P displays have historically served several purposes for store owners. What do today’s retailers increasingly expect P-O-P displays to do for them? a. To provide ambience and differentiate their store from others b. To minimize the costs of creating displays for the store c. To improve the orderliness and structure of the store environment d. To reduce the number of sales personnel required Copyright Cengage Learning. Powered by Cognero.

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Chap 15_8e Scenario 15-2 The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon. Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash. The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands.

96. (Scenario 15-2) Sounds Good has placed a small catalog inside each compact disc. The catalog features a variety of Planet Moon items that can be ordered—the band’s music video as well as T-shirts, ball caps, and travel mugs.

These items are considered self-liquidating premiums because the consumer: a. does not receive the actual product sample but only the advertisement for free. b. is unknowingly helping to liquidate unwanted product inventory. c. has the chance to buy them only by purchasing the CD. d. pays most of the cost for them.

97. During any given year, as much as _____ percent of brand management time might be devoted to designing, implementing, and overseeing sales promotions. a. 65 b. 80 c. 30 d. 10 98. Which of the following are the three basic forms of sales promotion? a. At-home, in-store, and out-of-home b. At-home, in-store, and out-of-home c. Indoor, outdoor, and mobile d. Consumer-market, trade-market, and business-market 99. Compared to advertising, sales promotion is: a. a long-term affair. b. designed to make things happen in the short run. c. a more sophisticated process. d. harder to document.

100. The name support media denotes that they: a. are supported and financed solely by business-market expenditures. b. reinforce or support a message delivered by other media. c. must be supported or upheld by physical structures. d. support and enhance P-O-P within the retail environment.

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Chap 15_8e 101. An objective of consumer-market sales promotion is to: a. stimulate the inelasticity of supply of a product. b. lower the economies of scale. c. encourage smaller purchases. d. stimulate trial purchases.

102. Of all types of support media, directory advertising offers a unique advantage by: a. offering technologically advanced and innovative options. b. enhancing brand awareness and recall. c. stressing the brand name and keeping the message within six words. d. helping consumers follow through on purchases.

103. Antoine works for a well-known company that manufactures mattresses. To move the company's product during the President's Day sales events held nationwide, he offered $200 to any retail salesperson who can sell ten mattresses throughout the second weekend of February. He also offers a case of sports drinks for each mattress sold. These are examples of trade-market sales promotion techniques in the form of: a. in-store sampling. b. incentives. c. merchandise allowances. d. dividends.

104. In recent years, several factors have affected sales promotion in organizations. Pressure from stockholders to produce high quarterly revenue, marketing plans based on quick results, and a bottom line-mentality have all contributed to a: a. focus on brand image. b. short-term orientation. c. sense of creative innovation. d. strong consumer bond.

105. Which of the following is true of Point-of-Purchase displays? a. They are noticed only by a few consumers. b. Many retailers ignore them or throw them out. c. They rarely get shipped to stores. d. They are poorly constructed and often unusable.

106. A printed card or sign designed to mount on or under a shelf is known as a _________. a. shelf talker b. floor stand c. cash register d. door signage

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Chap 15_8e 107. A consumer buys a printer for her computer and receives a money-back offer. To get the premium, she has to mail in a form requesting the money back from the manufacturer rather than the retailer. Which of the following consumer-market sales promotion techniques is exemplified here? a. A rebate b. A self-liquidating premium c. Couponing d. A free premium 108. (Scenario 15-4) General Mills allows its retailers to deduct $2 from every box of cereal in the shipment it receives.

This is an example of a(n): a. slotting fee. b. merchandise allowance. c. bill-back allowance. d. off-invoice allowance.

109. The marketers at Kraft are considering a number of consumer-market sales promotion techniques. Which of the following sales promotion techniques would work best for Kraft Macaroni and Cheese? a. Offering consumers a mail-in rebate on the purchase of a box of Kraft Macaroni and Cheese b. Offering a case of Kraft Macaroni and Cheese for free if the consumer buys one box c. In-store sampling and an in-store coupon d. Digital advertising 110. Advertisers are warned that they may face legal problems if they are not careful while conducting promotional activities. This is especially true of: a. in-store sampling and door-to-door sampling. b. price-off deals and rebates. c. mail sampling and newspaper sampling. d. sweepstakes and contests.

111. The combination of transit, aerial, and cinema advertising is known as ___________ media advertising. a. Point-of-Purchase b. out-of-home c. trade-channel d. business-market 112. List and describe the four main techniques commonly used in trade-market sales promotions. Choose one type and demonstrate how it would operate within a certain type of industry, profession, or business.

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Chap 15_8e 113. Describe the various sampling techniques used in consumer-market sales promotion.

114. Describe any five of the consumer-market sales promotion techniques.

115. Discuss the overall trend in spending on advertising and sales promotion over the past decade. Outline at least three reasons for this trend.

116. Assume that you are the marketing director for a business of your choice—it can be a real business or an imaginary one—and you need to reach a local audience. You are asked to compare billboard advertising and transit advertising, including their advantages and disadvantages, and prepare a short report detailing these issues.

Briefly outline the report you would write, paying particular attention to the best way to promote the brand, the type of product or service you are selling, the geographic area you are in, the demographics of the local population, etc.

117. What are the two main categories of Point-of-Purchase promotions? List and describe any five P-O-P formats available to retailers.

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Chap 15_8e Answer Key 1. False 2. False 3. False 4. True 5. False 6. True 7. False 8. False 9. True 10. False 11. True 12. True 13. False 14. True 15. True 16. True 17. False 18. False 19. True 20. True 21. True 22. True 23. True 24. True 25. True 26. True

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Chap 15_8e 27. True 28. False 29. True 30. False 31. False 32. False 33. True 34. True 35. True 36. d 37. d 38. a 39. d 40. d 41. a 42. a 43. b 44. d 45. d 46. a 47. c 48. b 49. c 50. d 51. b 52. d 53. a 54. b Copyright Cengage Learning. Powered by Cognero.

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Chap 15_8e 55. a 56. b 57. d 58. b 59. d 60. b 61. c 62. d 63. c 64. b 65. a 66. d 67. d 68. d 69. b 70. c 71. b 72. a 73. c 74. a 75. d 76. a 77. d 78. c 79. b 80. c 81. b 82. a Copyright Cengage Learning. Powered by Cognero.

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Chap 15_8e 83. a 84. c 85. c 86. b 87. a 88. d 89. b 90. c 91. b 92. a 93. c 94. b 95. a 96. d 97. c 98. d 99. b 100. b 101. d 102. d 103. b 104. b 105. b 106. a 107. a 108. d 109. c 110. d Copyright Cengage Learning. Powered by Cognero.

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Chap 15_8e 111. b 112. Incentives: to members of the trade include awards in the form of travel, gifts, or cash bonuses for reaching targeted sales levels. These can induce retailers and wholesalers to give a firm's brand added attention. Push money is a type of incentive involving monetary rewards to salespeople who feature and ultimately sell a particular brand.

Allowances: are seen in several forms as used in a push strategy. Merchandise allowances, in the form of free products packed with regular shipments, act as payments to the trade for setting up and maintaining displays. Shelf space has become so highly demanded, especially in supermarkets, that manufacturers are making direct cash payments, known as slotting fees, to induce food chains to stock an item. Monetary discounts are also seen in the form of bill-back allowances and off-invoice allowances.

Training programs: have become an increasingly popular trade promotion for retail store personnel. The increased complexity of many durable consumer goods has made it important for manufacturers to ensure that the proper pieces of information and the most persuasive themes are reaching consumers at the Point-of-Purchase.

Cooperative advertising: occurs when the manufacturer shares the cost of media with the retailer. This extends the reach and frequency for both brands, at less cost than advertising alone.

113. Six techniques are used in sampling: 1. In-store sampling is popular for food products and cosmetics. This is a preferred technique for many marketers because the consumer is at the P-O-P and may be swayed by a direct encounter with the brand. Increasingly, in-store demonstrators are handing out coupons as well as samples.

2. Door-to-door sampling is extremely expensive because of labor costs, but it can be effective if the marketer has information that locates the target segment in a well- defined geographic area. Some firms enlist the services of newspaper delivery people, who package the sample with daily or Sunday newspapers as a way of reducing distribution costs.

3. Mail sampling allows samples to be delivered through the postal service. Again, the value here is that certain zipcode markets can be targeted. A drawback is that the sample must be small enough to be economically feasible to mail. Specialty sampling firms provide targeted geodemographic door-to-door distribution as an alternative to the postal service.

4. On-package sampling, a technique in which the sample item is attached to another product package, is useful for brands targeted to current customers. Attaching a small bottle of Ivory conditioner to a regular-sized container of Ivory shampoo is a logical sampling strategy.

5. Mobile sampling is carried out by logo emblazoned vehicles that dispense samples, coupons, and premiums to consumers at malls, shopping centers, fairgrounds, and recreational areas.

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Chap 15_8e 114. A number of sales promotion techniques are commonly used to target consumer markets: Coupons: the oldest and most widely used form of promotion, entitle the buyer to a designated price reduction. They allow discounts to some while still selling the product at full-price to others, may induce brand switching, can stimulate repeat purchases, may lead to the purchase of more expensive brands within a line, and are controlled by the manufacturer.

Price-off deals: offer discounts at the Point-of-Purchase through specially marked packages. The reduction is taken from the manufacturer's profits rather than the retailer’s, is controlled by the manufacturer, compares the product favorably to that of competitors, is appreciated by consumers who want a straightforward deal, and often leads to multiple purchases as buyers stock up while a brand is on sale.

Premiums: items that are offered free, or at a reduced price, along with the purchase of a product or service. Free premiums are sometimes attached to or included within the packaging, mailed to the consumer who sends a proof-ofpurchase, or simply given away. Self-liquidating premiums are items available to interested consumers at a reduced cost, usually by mailing in a form and proof-of- purchase. They work well with loyal consumers.

Advertising specialties: small but useful items with the brand name or slogan prominently displayed. They always involve a message and are given away for free, with no obligation to make a purchase.

Contests and sweepstakes: Contests allow consumers to compete for prizes based on skill or ability. Sweepstakes require no particular skills but only luck, as winners are drawn at random via entry forms or scratch-off cards.

115. Over the past decade, many marketers have moved the emphasis of their spending away from traditional advertising and toward sales promotions—those involving consumer, trade, and business populations. There are several reasons why marketers have been shifting funds from mass media advertising to sales promotions: 1. Managers are demanding greater accountability for promotional spending.

2. Organizations and stockholders are setting a short-term orientation toward generating revenue.

3. Consumers are responding positively to sales promotions.

4. Marketers are causing a proliferation of brands in many product categories, while also needing to gain attention and differentiate their brand.

5. Retailers are becoming more powerful by demanding recompense from manufacturers in return for giving brands favorable placement or other special attention.

6. Advertising clutter is taking over mass media and requiring greater ingenuity to achieve breakthrough.

116. Student answers will vary depending on the type of business they choose, the nature of the brand, and the product or service they are promoting.

Billboard advertising: is perhaps the oldest form of advertising in America, dating back to posters and notices tacked up for the public to read during the Revolutionary War. Today, they can provide wide exposure if they manage to grab attention with minimal text and striking imagery. They often include specialized lighting, moving parts, or rotating digitalized displays. Drawbacks include poor locations, time and effort in finding locations, long or confusing messages, environmental issues, and consumers who don’t notice them.

Transit advertising: is similar to billboard advertising and is sometimes used simultaneously. It is popular around the world and is seen in many venues, including on the backs of buildings, in subway tunnels, in terminals, on station platforms, and on the vehicles. Many types of transit ads now use digital signage that creates customized messages for various neighborhoods or times of day. It does well in building or maintaining brand awareness, and particularly in targeting adults who work in major metropolitan areas, offering repetitive message exposure to commuters. The drawbacks are similar to those for billboards. Includes lengthy or complex messages, media clutter on busy streets and in public transit facilities, and busy or distracted commuters who tune out the ad message.

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Chap 15_8e 117. The two main categories of point-of-purchase promotions are short-term promotional displays (in place for six months or less) and permanent long-term promotional displays (in place for more than six months). The various P-O-P formats used by retailers are: Window and door signage: which includes any sign that identifies or advertises a company or brand.

Shelf talker: which is a printed card or sign mounted on or under a shelf. Interactive unit: which is a computer-based kiosk dispensing product information, recipes, or coupons.

Aisle directory: which is the list or map that depicts contents of a store aisle and provides space for an ad message.

Retail digital signage: which includes video displays mounted on ceilings or walls, set as end-of-aisle caps, or given strategic shelf placement.

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Chap 16_8e Indicate whether the statement is true or false.

1. Using diverse means for brand building is considered profitable and the list of options that marketers have is expanding. a. True b. False 2. In sponsorship, when there is not a clear sponsor-event congruity, it is a good idea for the advertiser to use sponsorship articulation, or articulate or explain any connection between the two. a. True b. False 3. The success of any IBP campaign involves choosing the right set of options and coordinating the placement of messages. a. True b. False 4. For digital engagement, sponsorship mixes in a fantastic way with social media. a. True b. False 5. Branded entertainment, along with event sponsorship and product placements is popular with marketers because they can work in numerous ways to assist with a brand-building agenda beyond the capabilities of traditional media. a. True b. False 6. When using branded entertainment as an IBP tool, a brand can become integrated in the entertainment media. a. True b. False 7. Branded entertainment entails the development and support of any entertainment property, where a primary objective is to feature a firm’s brands in an effort to impress, and connect with consumers in a unique and compelling way. a. True b. False 8. Nielsen Media Research found that much like TV viewers who want to avoid commercials, the majority of video game players want to eliminate brand placements in games. a. True b. False 9. Using events, product placement, and branded entertainment in an IBP entails the consumer experience and sponsorship of such can be examples of activating a sponsorship if they reinforce the sponsorship. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 16_8e 10. A well-fitting sponsored event can be a great addition to an IBP mix. a. True b. False 11. Product placement in video games has little potential; with 2 million U.S. households having at least some gaming capability, it is considered a niche market. a. True b. False 12. The only way to measure the benefits of sponsoring an event is to determine how often the sponsor’s name appears at the event and in media coverage of the event. a. True b. False 13. The majority of the promotional funds invested in event sponsorships today are in the context of sporting events. a. True b. False 14. Sponsor spillover is great for the previous sponsor and bad for the incoming sponsor. a. True b. False 15. For companies, it is free to incorporate their branded products deliberately as part of the show. a. True b. False 16. A guideline for effective event sponsorship is to look for a match or overlap between the lifestyles of the event attendees and the benefits your product can deliver. a. True b. False 17. Event sponsorship is often seen in the context of sports, such as Nissan Europe’s sponsorship of soccer. a. True b. False 18. Event social responsibility provides an opportunity for sports sponsors to demonstrate good corporate citizenship, generate positive word-of-mouth, and boost both attendance and patronage intent. a. True b. False 19. Sponsor spillover is when a past sponsor may still “get credit” for being the sponsor in the consumer’s memory. a. True b. False

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Chap 16_8e 20. Contemporary marketers are using event sponsorship, product placements, and branded entertainment to build brands in the marketing environment and to create meaningful connections with consumers. a. True b. False 21. Despite their widespread use and their repetitive exposures during games, brand placements in video games do not affect purchase intent as much as placement in traditional media does. a. True b. False 22. The complexities of all the elements of IBP require careful coordination. a. True b. False 23. Branded entertainment involves developing new, creative forms of entertainment as a means to feature brands and connect with customers. a. True b. False 24. Product placement is the practice of placing any branded product into things such as movies or TV shows; for instance, an actor would have a branded beverage throughout the movie. a. True b. False 25. Authenticity of a brand is weakest when the content of the show and the essence of the brand become completely intertwined and integrated. a. True b. False 26. Event sponsorship is a documented way to improve consumer knowledge about a product. a. True b. False 27. Whether the economy is up or down, automakers in the United States remain aggressive with their event sponsorship. a. True b. False 28. Ultimately, a point of coordination of supportive media is to achieve a synergistic effect. a. True b. False 29. A reason for event sponsorship success is that brands are seeking out opportunities to be embedded in activities and entertainment that their target consumers enjoy. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 16_8e 30. In the world of promotion, authenticity refers to the quality of being perceived as genuine and natural, yet that is not important in brand placement. a. True b. False 31. A key asset for event sponsorship is that it can relate with the consumer experience. a. True b. False 32. Events, product placements, and branded entertainment offer the advertiser few opportunities for integrated brand promotion. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

33. What entails creating a metric that lets a marketer judge sponsorship spending in a direct comparison to spending in the traditional measured media? a. Brand loyalty b. Media impressions c. Affiliate marketing d. Cost-per-click 34. The major sweet spot in event sponsorship comes when there is a significant overlap between the: a. event participants and the marketer’s target audience. b. primary sponsor and the secondary sponsor. c. brand preferences of attendees and the brand preferences of competitors. d. international sponsors and the local sponsors.

35. (Scenario 16-2) The HollywoodBranding staff has an idea for a corporate giant in the household cleaning products industry; a reality show using all of its products in crazy stunts, timed contests, and obstacle races. But the client is worried about playing it straight with consumers, and openly disclosing its role as a paid advertiser for the show. This worry stems from the concern that: a. if advertisers pile on branded entertainment too quickly, a jaded consumer and a cluttered environment will be the result. b. branded entertainment will definitely have several failures because every time out, it is new and unpredictable. c. TV networks can be charged with deception of the public by failing to disclose the details of productplacement deals. d. there can be an incredible lack of alignment around who is responsible for ethics in branded entertainment.

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Chap 16_8e 36. An event and their sponsors just ended, and now they want to have data to be able to show how and if the event or sponsorship was successful as an experiential marketing tool or for the community. They need to conduct: a. Brand loyalty b. Event sponsorship measurement c. Affiliate marketing d. Sponsor spillover 37. (Scenario 16-4) One client was initially willing to pay a hefty fee for its fruit snack bar to appear in a summer action movie full of spies and car chases, but the fit just didn’t seem right. You convinced the client to go instead with a teen romance that also released in the summer. It appears to have done very well, building popularity with kids who bought it at the concessions stand, and went on to buy it at their local retailer. Which of the following concepts did you rely on? a. Exclusive sponsorship b. Advergaming c. Leveraging d. Authenticity 38. Recent research indicates that a brand gets the most benefit when product placement of the item: a. is used repeatedly to create logistics in a short period of time. b. gets people to talk about it in everyday conversation. c. appears on a new show. d. is used in isolation without the distraction of other marketing elements.

39. An agency has a client who is skeptical about using branded entertainment. Which of the following should he tell his client about branded entertainment in support of branded entertainment? a. "Branded entertainment reaches the consumer exclusively in their home." b. "Branded entertainment relates with a lifestyle experience, not about selling a product." c. "Branded entertainment is the most expensive form of IBP." d. "Branded entertainment is the cheapest form of IBP." 40. (Scenario 16-2) A potential client has lunch with the owners of HollywoodBranding to discuss a new kind of promotion for his gourmet cookware. Beyond his magazine and newspaper advertising, he is looking for the perfect form of branded entertainment. The owners come prepared to pitch several ideas involving projects they’re aware of, and by the time coffee is served, they all agree to have the: a. cookware appear in the kitchen of a well-known sitcom family. b. company sponsor a cook in this year’s Pillsbury Bake-off. c. cookware mentioned in a new movie set in a New York restaurant. d. company fund a new PBS cooking show for amateur gourmets.

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Chap 16_8e 41. Which of the following is a reason for brand builders to participate in various forms of event sponsorships? a. They want to replace traditional media entirely. b. The marketer acquires the rights to display a brand name, logo, or advertising message on-site at the event. c. They are trying to disengage advertising from entertainment in order to reduce brand image exposures. d. They found that quirky or edgy branded entertainment builds a negative attitude in customers.

42. (Scenario 16-3) The team at MyMVPs decides to look into sponsorship as a way of building the brand. At first, they wonder about the cost. Eventually, they come to the conclusion that they would ultimately gain the most—but would also have to spend the most—if the business decided to: a. be an exclusive sponsor of an event. b. calculate media impressions from an event. c. get involved in social networking for an event. d. be a co-sponsor of an event with another business.

43. An upcoming chain of “green” grocers has reasonable prices, friendly staff, local produce, and a focus on organic and natural products. The company wants to connect with consumers in a fresh way, and is considering creating a show on the Food Network. What type of promotion is this grocer considering? a. Brand loyalty b. Branded entertainment c. Affiliate marketing d. Event sponsorship 44. Which of the following components of American movies have been regularly used as a platform for launching new brands? a. The restaurant meal b. The romantic stroll through the city c. The car chase d. The drink at the local bar 45. A coordination challenge is in: a. making sure each media has an equal level of reach and frequency. b. minimizing the number of different media needed. c. making sure that any marketing effort uses all media available. d. choosing the right set of options to engage a target segment and coordinating the placement of messages to ensure coherent and timely communication.

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Chap 16_8e Scenario 16-3 In July 2010, a sports-focused social networking site named MyMVPs.com was launched. The site, which has been described by founder Mark Monaco as a hybrid of Facebook, ESPN and YouTube, will allow athletes, proud parents, and sports fans alike to view highlights of amateur athletes, check out the week’s funniest sports bloopers, and chat with various sports celebrities registered with the free online service. Erin Dwyer, co-founder and one of the four individuals responsible for the site’s success, believes the service will be incredibly beneficial not only for amateur athletes with college aspirations, but also for colleges with tight recruiting budgets. Dwyer stated, “It’s huge for little kids and it’s gigantic for high school athletes who want to get to college. For some schools with tight budgets for recruiting, coaches will be able to jump on a website that is clean and safe and gives them information on a player. That can give them an advantage.” Still in its early stages, the company is looking to get its name out there as much as possible—and with partnerships with sports legends such as Mike Ditka, the company appears to be headed in the right direction.

(Jeff Vorva, “MyMVPs.com Hopes to Fly High With Amateur Athletes.” Chicago Tribune Local, June 16, 2010.)

46. (Scenario 16-3) Still looking to get the company name out, the team at MyMVPs begins to think of ways to make people aware of the site’s benefits. To date, they have relied on word-of-mouth advertisement, but they are interested in any possibility that may help build brand awareness. This means that they are basically looking for: a. event sponsorships. b. mere exposure. c. product placement. d. media impressions.

47. A firm has decided to sponsor a PGA golf tournament. Its marketing director knows it is critical to find unique ways to leverage the sponsorship. One way to leverage the sponsorship beyond traditional methods would be to: a. estimate the number of viewers who will see the company name. b. allow the CEO to meet with top golfers on the course. c. calculate the brand exposure received by people attending the tournament. d. use the tournament to entertain important clients and recruit new ones.

48. (Scenario 16-1) How would an advertiser hope to benefit from sponsoring the WaveRunner? a. By getting free television advertising that comes with sponsorship b. By strategically writing a press release c. By taking part in the most cost-efficient form of promotion and advertising d. By transferring consumers’ positive feelings or the image about yacht racing to the product 49. A car brand, VW, sponsored a major professional cycling event. They needed event sponsorship measurement, which includes (but isn’t limited to) models and metrics on: a. government agency, market orientation, and consumer orientation. b. event-sponsor fit, attitude, event social responsibility, and sponsorship awareness. c. affiliate marketing, customer journey, and market orientation. d. customer orientation, government agency, and event-sponsor fit.

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Chap 16_8e 50. Which of the following is a reason for advertisers to sponsor with NASCAR, from a media investment lens? a. Featuring products on NASCAR builds authenticity like no other event. b. Success with product placements is fostered through developing deep relationships with key players in advertising. c. NASCAR has huge television audiences, which will yield large media impressions. d. Brands want to be fitted into the entertainment of the race, not detract from it.

Scenario 16-1 MakeWaves is a promotional company with a website that offers the opportunity to sponsor a yacht in Grand Prix yacht racing. Commercial sponsors of the WaveRunner yacht can buy space for logos and graphics on the WaveRunner's sails, hulls, crew member's uniforms, and trailers. For enough sponsorship money, the WaveRunner will even change its name to better fit the sponsor. The WaveRunner is scheduled to compete in five Grand Prix yacht-racing events every year. MakeWaves claims on its website that sponsoring the WaveRunner in a race could result in millions of impressions in sailing magazines and newspapers as well as on broadcast media, and offers specific calculations to those who inquire.

51. (Scenario 16-1) MakeWaves is pitching a very specific sponsorship offer with its own benefits. But overall, the category of event sponsorship has certain advantages. One of the main advantages is that it: a. has a higher reach than television. b. targets certain groups of consumers who already purchase the sponsor brand. c. offers personal contact with consumers and publicity during and after the event and helps activate other IBP efforts. d. embeds the brand in a very nondescript and subtle way.

52. (Scenario 16-2) A young media expert is hired by HollywoodBranding. He went to college with a bright girl who now does all the marketing for her family’s business, a well-established cookie manufacturer with strong national distribution. Her grandparents and parents have run the same facility in St. Louis and have run the same types of ads over the decades. On impulse, he calls to pitch a branded entertainment idea to her family. He should be sure to inform them that branded entertainment: a. is not much different from placing ads with traditional media. b. has been proven to consistently deliver higher brand exposure than other forms of media. c. can take new and unpredictable paths. d. represents one of the most conservative and dependable options available today.

53. Sponsor-event congruity/fit is: a. not important in event sponsorship measurement. b. Starcom MediaVest Group’s proprietary idea. c. where a consumer perceives a fit between a sponsor and event. d. a term in radio pulsing.

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Chap 16_8e 54. A car brand decides to sponsor an online tournament for the video game World of Warcraft. This manufacturer hopes to make the tournament a branded experience. How can this event help the car brand? a. The tournament will help diversify the revenue stream for the car brand. b. The tournament will help identify past consumers. c. The tournament will connect the brand with its core customer in a fun and meaningful way. d. The tournament will likely have zero effect.

55. Branded entertainment is different from product placement in that branded entertainment: a. is a natural extension and outgrowth of product placement. b. displays the brand in traditional ways. c. involves lower levels of exposure for a brand. d. sells ads for the brand’s presence.

56. NASCAR fans are unusually _________________. a. below the national average in income b. suspicious of sponsorship c. varying in their digital use d. loyal to the brands that sponsor cars 57. Market research indicates that among people who watch movies, the people that are most likely to notice product placements and also most willing to try products in movies and films are: a. under 25 years old. b. over 45 years old. c. over 60 years old. d. between 60 and 70 years old.

58. What is event social responsibility? a. An opportunity for sports sponsors to demonstrate good corporate citizenship, generate positive WOM, and boost patronage and purchase intent b. The legal contract that an event must sign to demonstrate exactly how much they give back to the community c. The same thing as CSR, or corporate social responsibility d. When the previous sponsor sticks in the consumer memory, because the previous sponsor was socially responsible in their event marketing 59. (Scenario 16-2) One drawback for advertisers when subcontracting out to creative teams or external sources like HollywoodBranding is that: a. their tactics may often be the same as those already found in traditional advertising agencies. b. they resist trying new ideas or taking risks. c. their efforts may easily clash with the overall company efforts. d. they do not possess the skills to understand and reach today’s consumers.

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Chap 16_8e 60. (Scenario 16-1) The MakeWaves website offers no information about the conversion of fan loyalty toward a sport into actual purchases of the sponsor’s product. Marketers who have set fan loyalty as their main goal would do well to look into the branded entertainment opportunities of _________, who are known to be especially loyal to sponsors of this sport. a. cheerleading b. major league soccer c. NASCAR d. PGA Golf 61. As advertising and IBP have become more complex, organizations often become reliant on diverse functional ________________.________ a. specialists, such as consultants b. politicians, such as elected leaders at the state or national level c. CEOs, such as those from the market share leaders d. direct sales, such as online and in-person 62. Events and sponsorship are especially important because sponsorship and events are all about _____ and ____, from a consumer psychology lens. a. margins, rebates b. consumer identity, passion c. flighting, pulsing d. art direction, copywriting 63. A marketing VP who invested in a sponsorship of the Women’s Softball World Series saw extra benefits. It provided opportunities to entertain clients, recruit new customers, motivate employees, and meet consumers. All of these were a result of: a. connecting the sponsorship to accounting. b. distributing product samples. c. leveraging the sponsorship. d. product placement.

64. What additional benefit is great for the previous event sponsor but bad for the incoming sponsor? a. event social responsibility b. event sponsorship measurement c. consumer psychology d. sponsor spillover 65. Which of the following is a reason for the convergence of advertising/marketing/IBP and entertainment? a. The desire to recapture the fading glamour of the good old days of advertising b. The recession-era consumers focus on more work and less leisure time c. Brands are seeking out opportunities to be embedded in activities and entertainment that their target consumers enjoy d. The natural and inevitable partnership between marketing and accounting Copyright Cengage Learning. Powered by Cognero.

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Chap 16_8e Scenario 16-2 HollywoodBranding is a new promotions company formed by three former ad executives who had illustrious careers in large multi-service advertising agencies. Over the years, they developed close ties with a number of Hollywood movers and shakers. Consequently, they feel poised to respond to the business world’s growing desire for branded entertainment. But they are aware that they need to continually fight their old school thoughts about branding forged in years of working solely with traditional media.

66. (Scenario 16-2) HollywoodBranding promotes itself to prospective clients by saying that it is located at Madison & Vine, and offers innovative brandertainment. This means that it will: a. act as a full-service advertising agency. b. invent humorous or imaginative brand logos and slogans. c. place ads in appropriate media and track subsequent media impressions. d. connect companies with consumers through entertainment venues.

67. One way to justify event sponsorship is via: a. art direction and copywriting. b. keeping its branding separate from other forms of IBP. c. exposure and media coverage. d. roadblocking.

68. In order to make the most of event sponsorships, marketers should not only establish media impressions, but also: a. rally viewer support with promotions for it in traditional media. b. invite other companies to share the cost of sponsoring the event. c. find a way to get television and radio coverage that will help target global audiences. d. find a way to link the brand with a positive feeling that will go beyond the duration of the event.

69. Which of the following is accurate concerning event sponsorship? a. Worldwide, sponsorship spending has decreased. b. Sports sponsorship events no longer draw the biggest share of advertisement funds. c. Event sponsorship c a n offer face-to-face encounters between consumers and the brand. d. North American companies have begun spending in order to grow again after a long period of inertia.

70. A running shoe brand sponsors a race that is also broadcast to large audiences on the television and radio. The company measures a huge number of gross media impressions. However, this does not result in a huge rise in the sales of the shoes. Which of the following is one possible reason? a. The brand failed to connect to the emotional experience of the viewers. b. They did not correctly estimate the number of media impressions. c. They created too much direct contact with the customers leading to intrusion. d. The brand allowed for the delivery of the ad message in a traditional way.

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Chap 16_8e 71. A manufacturer of protein powders and protein bars sponsors a grand slam tennis tournament for the first time.

When it evaluates this move, it discovers that the cost per brand name exposure is much higher than it would have been by running its standard advertising. Why was the sponsorship still beneficial for the manufacturer? a. It was one of the multiple sponsorships it takes in order to yield results. b. Traditional advertising cannot get the amount of exposure that event sponsorship can. c. The methods used to calculate cost per brand name exposure are too subjective to be accurate. d. Sponsorships provide a unique opportunity to help foster brand loyalty.

72. Which of the following can advertisers accomplish if they create their own story for a branded entertainment initiative? a. They never have to worry about finding a place for their brand. b. They can receive slotting allowances from competitors. c. They can make target audiences six times more likely to purchase their products. d. They can expect no return on investment.

73. Which of the following is an example of product placement? a. A race car featuring advertisements for several brands on the outside of the car b. A movie featuring the lead actor drinking a branded beverage at various times throughout the movie c. A t-shirt featuring a sport celebrity d. An actor endorsing an anti-aging lotion in a magazine ad 74. Which of the following is an example of product placement? a. The logo of UPS on a NASCAR race car b. The interactive children's magazine from Lego called Lego Club Magazine c. Phone from Apple in Mission Impossible: Ghost Protocol d. The diet pill Trimpsa in a magazine ad in Vogue 75. What is the major sweet spot in event sponsorship for advertising and IBP? a. When the consumers attend events that are sponsored by a brand due to their brand loyalty b. When significant overlap is achieved between an event’s participants and the marketer’s target audience c. When the affiliate marketing contracts are signed for one year or more, to encourage sponsor spillover d. When event sponsorship happens every other year, in order to keep the consumers in demand and anticipating the sponsorship to come back 76. According to Nielsen Media Research, product placements in video games: a. are more annoying to gamers than commercials are to television viewers. b. were popular for a while but are now less frequent. c. are accepted by younger players but disliked by adult players. d. are seen by gamers as elements that add to the quality of play.

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Chap 16_8e 77. Which of the following is a reason for advertisers to divert their funds from traditional media? a. Audience fragmentation b. Increased funds available for investment in alternative media c. Increased costs for television spots d. Media watchdogs monitoring traditional media 78. (Scenario 16-4) Another client was considering videogame placement the last time you met, and will be making a decision next week. She wasn’t sure about placing her product in a game, since her company sells mostly to adults and has never specifically targeted kids. You will remind her of research that shows that: a. a good portion of hard-core players are between 18 to 34 years old. b. the vast majority of gamers are teenagers, not children. c. the fastest-growing population of gamers are between 55 to 75 years old. d. elders who do play video games are more likely to notice products.

79. (Scenario 16-4) One client has made the move to have signs and billboards for his product show up in a video game that takes users through city streets, down country roads, and across bridges and overpasses. Which of the following is a reason why this strategy will have a positive/negative impact? a. Gamers are irritated by such distractions. b. Gamers consider this an added attraction when playing games. c. Gamers get accustomed to ad clutter and do not realize that they exist. d. Gamers are three times more likely than users of other media to buy the items that appear in product placement.

80. For some annual events, the ________is almost as compelling as the event experience itself. a. local little league team b. pre-roll c. anticipation d. competition 81. Which of the following is true of branded entertainment? a. Brands desire to be embedded naturally, not detract from the entertainment. b. The entertainment property in it should not be created by the marketers themselves. c. Its popularity as a brand-building tool is decreasing. d. It entails placing products unobtrusively into movies and TV shows.

82. A brand needs to conduct event sponsorship measurement; what are some top guidelines for effectively using event sponsorship as a tool? a. Match the brand to the event; tightly define the target audience; stick to a few key messages b. Avoid digital integration; have the broadest audience possible; deliver inclusivity c. Use affiliate marketing; avoid a plot line; feature 5 or more messages d. Isolate the role of the brand; feature 10 or more messages; plan more for before the event sponsorship than after

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Chap 16_8e 83. Which of the following types of programs on television usually have product placements in them more so than other types of shows? a. Soap operas and reality shows b. Sitcoms and quiz shows c. Police, legal, and family dramas d. Animated shows and adventure shows 84. A point related to branded entertainment and IBP is the: a. growing popularity of video games and consoles. b. simplicity of coordinating large IBP campaigns. c. erosion of social media. d. decrease of digital media campaigns.

85. A benefit for advergaming is that product placements in video games: a. annoy gamers much more than commercials are to television viewers. b. are less frequent popularity. c. are disliked by adult players. d. provide repetitive exposures of brands.

86.

can be considered a natural extension and outgrowth of product placement. a. Branded entertainment b. Authenticity c. Market oversaturation d. Event sponsorship

87. Which is a reason that advertisers’ dollars have been diverted from traditional media? a. The lack of direction or cohesiveness in today’s marketing plans b. Consumers’ desire to control their information environment and ad-avoidance hardware/software c. The indifference of consumers toward their information environment d. The growing confusion among consumers due to too many brand messages 88. Which of the following is an important aspect of sponsorship assessment? a. Judging whether a brand is receiving a loyalty dividend b. Measuring the overlap between an event’s participants and the marketer’s target audience c. Calculating the opportunities in associating brands with the distinctive images of various sports d. Remaining aggressive with event sponsorship campaigns

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Chap 16_8e 89. (Scenario 16-4) You recall that the owner of one firm had said in the past that you’d done a good job in convincing him that he needed to focus on creating synergy in all advertising efforts. At the time, he wanted you to clarify what you meant by synergy. You replied that synergy refers to: a. planning ahead for the use of new media as they emerge. b. making sure all media efforts reinforce each other for maximum effect. c. sharing communication goals among clients and suppliers. d. using all the interactive capabilities of any given media.

90. (Scenario 16-3) By sponsoring local high schools and high school sporting events, MyMVPs will be able to promote its brand to a large amount of its target audience, which is made up of athletes, parents and fans. This overlap is referred to as: a. the sweet spot. b. the marketing overlap. c. event sponsorship. d. selective product placement.

91. (Scenario 16-3) The team at MyMVPs decides to make sponsorship one of their top priorities. Not only can they build community relationships, but they can get the MyMVP's name out with signs and banners. The team also prints hundreds of business cards and stationery to distribute, and sets up a number of tents that will feature the company logo. In a small-scale and local way, this is the same thing large corporations do when they make an effort to: a. leverage the event as much as they can. b. make good use of product placement. c. fight the chaos scenario. d. speak to consumers in a single voice.

Scenario 16-4 You are a marketing associate at a promotional firm that specializes in innovative branding. You will be meeting with several clients next week and you need to review their files and get updated on their latest promotional efforts.

92. (Scenario 16-4) In your initial review, you realize that all four clients are currently paying a fee to have their brands exposed or displayed within some entertainment format. This means that they are all utilizing __________. a. event sponsorship b. product placement c. branded entertainment d. co-branding 93. The dynamic marketing environment entails that brand builders want to: a. primarily focus on selling to their customers without reaching them emotionally. b. be part of the entertainment that their target consumers enjoy. c. stick with solely traditional advertising media. d. stick with informational appeals.

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Chap 16_8e 94. One way that companies assess the benefits of event sponsorship is by: a. examining event social responsibility b. calculating the number of viewers who don’t like a brand. c. having company executives personally fund the event. d. promoting competitor causes along with the activities of the event.

95. An event and their sponsor or sponsors do event sponsorship measurement to measure “fit” or congruity; what are two key areas of congruity or fit? a. Brand loyalty-brand; Branded entertainment-event b. Consumer-event; sponsor-event c. Affiliate marketing-sponsor; brand loyalty-event d. Event sponsorship-image; celebrity-affect transfer 96. (Scenario 16-1) A company that thinks about sponsoring the WaveRunner does so with the hopes that it will play a major role in its IBP effort. One potential risk of using nontraditional forms of promotion is that they: a. involve factors that contribute to the challenge of coordinating all IBP messages. b. cannot be quantitatively measured. c. rarely make a strong enough impact on the marketing plan. d. cannot offer the highly targeted audience necessary for this role.

97. Which of the following best describes event sponsorship? a. Providing financial support for an event while displaying an ad message or branding on-site b. Funding a charitable event in an anonymous way to promote the social good c. Buying signage in venues where special events are held d. Embedding the brand name within public events in a subtle way 98. (Scenario 16-3) MyMVPs arranges to sponsor a few high schools, and begins to think of ways to leverage the sponsorship. In this context, leverage can be described as: a. the practice of judging sponsorship through media impressions. b. the practice of placing any branded product into the content and execution of an established entertainment vehicle. c. any collateral communication or activity reinforcing the link between a brand and an event. d. development and support of any entertainment property.

99. A marketing director meets with her staff to review recent problems they have encountered in coordinating widespread and diverse aspects of their marketing plan. Which of the following reasons can explain why coordinating an IBP effort is easy? a. Specialists often have knowledge only in their specialty. b. Internal competition for budget allocation works against coordinated efforts. c. IBP does not require explicit goals and objectives. d. There is a limited number of media options available.

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Chap 16_8e 100. Marketing of and with the consumer experience is a form of IBP, often entailing__________. a. ad allowances b. cash back rebates c. sponsored events d. push money 101. Explain how branded entertainment differs from product placement, and what its future is as a branding tool. Give two examples of branded entertainment to support your answer.

102. Describe the Chaos Scenario. How does it relate to today’s advertising efforts?

103. Procter & Gamble is a prime example of a giant advertiser that has successfully used branded entertainment over many decades. How has P&G incorporated branded entertainment into its marketing mix over the years?

104. Discuss the nature and use of product placement. Explain, with examples, which forms of media today’s advertisers specifically use for product placement.

105. What is meant by the convergence of advertising and entertainment? Explain why this convergence has occurred in the world of promotion.

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Chap 16_8e 106. Lack of coordination of an IBP effort often leads to disagreement and conflict within the business environment.

What kind of factors commonly work against coordination? Explain those specific to an organization that handles the entire effort internally, and those specific to an organization that uses some external sources.

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Chap 16_8e Answer Key 1. True 2. True 3. True 4. True 5. True 6. True 7. True 8. False 9. True 10. True 11. False 12. False 13. True 14. True 15. False 16. True 17. True 18. True 19. True 20. True 21. False 22. True 23. True 24. True 25. False 26. False

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Chap 16_8e 27. True 28. True 29. True 30. False 31. True 32. False 33. b 34. a 35. c 36. b 37. d 38. b 39. b 40. d 41. b 42. a 43. b 44. c 45. d 46. b 47. d 48. d 49. b 50. c 51. c 52. c 53. c 54. c Copyright Cengage Learning. Powered by Cognero.

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Chap 16_8e 55. a 56. d 57. a 58. a 59. c 60. c 61. a 62. b 63. c 64. c 65. c 66. d 67. c 68. d 69. c 70. a 71. d 72. a 73. b 74. c 75. b 76. d 77. a 78. a 79. b 80. c 81. a 82. a Copyright Cengage Learning. Powered by Cognero.

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Chap 16_8e 83. a 84. a 85. d 86. a 87. b 88. a 89. b 90. a 91. a 92. b 93. b 94. a 95. b 96. a 97. a 98. c 99. c 100. c 101. Branded entertainment entails the development and support of any entertainment property where the primary objective is to feature one’s brand or brands to impress and connect with consumers in a unique and compelling way. Branded entertainment and brand placement differ in one clear way. In branded entertainment, the property would not exist without the marketer’s support. In product placement, the property already exists or is already in development, and the branded product will be added to it. Examples will vary among students. One example of this distinction is seen in two BMW promotions. In 1995, product placement was used in the BMW placement of the Z3 in the James Bond thriller GoldenEye. In 2001, branded entertainment was seen with the BMW promotion of the Z4 in the firm’s own custom made, Web distributed short films that featured Marilyn Manson, Clive Owen, and other stars that launched a new era of branded entertainment. The obvious obstacle that may limit the future of branded entertainment is oversaturation.

Like any other faddishly popular promotional tactic, if advertisers pile it on too quickly, a jaded consumer and cluttered environment will result.

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Chap 16_8e 102. The concept of Chaos Scenario was proposed by Bob Garfield, of Advertising Age, in his prediction of a mass exodus by advertisers as they flee from traditional media. His idea is that advertisers will continually shift their advertising dollars away from traditional formats because of ongoing audience fragmentation as well as technology that allows for ad-avoidance. He predicts that those ad dollars instead will be spent on new media in a new advertising world that will not depend on 30-second television commercials or glossy magazine spreads. One repercussion will be seen in alreadystruggling networks that will get less funds to create quality programming, and will therefore lose even more audience members. The end result will be a rapid downward spiral of the old-fashioned media formats. It is impossible to say whether this mass exodus will actually happen, and traditional media will die; but there is already a shift in ad dollars from traditional media to new digital, mobile, and entertainment formats.

103. P&G launched into branded entertainment as early as 1923 with its radio program, Crisco Cooking Talks, a 19-minute program featuring recipes and advice that prominently featured its shortening product called Crisco. By 1937, P&G marketers realized listeners wanted more than recipes, so it created a new format for radio known as the soap opera, featuring dramatic story lines that would lure listeners to tune in every day. It began with Guiding Light, which moved to television by 1952 and is considered the longest-running show in the history of electronic media even though it was canceled in 2009. Today P&G works with other media partners to create shows in which the brands are embedded and the entertainment is branded. The campaign shifted to a focus on moms with its Tide brand, with a thank you mom campaign featuring Olympic athletes, so merged Olympic sports (entertainment) with the brand message via advertising and social media.

104. Product placement involves placing any branded product into the content and execution of an established entertainment vehicle, one that is already in development or is in ongoing broadcast mode. Advertisers pay for the ability to expose or promote their brand by showing it in some way in a television show, film, video game, or novel; or by having it physically present at a sporting event, movie theater, festival, concert, or other public entertainment venue. It is most effective when used with other promotions. Television shows are well-known formats for product placement, especially soap operas, reality shows, and sitcoms. Product placement is often seen in movies when automakers feature particular vehicles during car chases. Product placement is increasingly seen in video games in the form of cars, snacks, beverages, and any number of goods that appear on virtual billboards and signage. Product placement may or may not involve a celebrity connection, but either way, it can be difficult to measure. It works best when it is integrated well with the content, characters, and script so the presence of the product is believable and realistic, a concept referred to as having authenticity.

105. There has been a convergence of sort between two previously separate entities; advertising (located on Madison Avenue in New York), and entertainment (located at the intersection of Hollywood and Vine in Los Angeles). This convergence occurred due to several conditions present in the marketing world, the corporate culture, and the larger society. Advertisers are always searching for new ways to reach consumers, and entertainment provided the perfect avenue. They found that they could sponsor events, connect their name to entertainment venues, and embed their products in TV and film productions. Meanwhile, consumers have been given an increasing number of options to be informed and entertained, always finding new ways to fill their leisure time. Where there was once only television, radio, newspapers, and magazines, there are now video games, mobile devices, cell phones, and almost unlimited possibilities on the Internet, including social networking sites. All of these now act as media vehicles for embedded branding and promotional messages, effectively combining advertising and entertainment in new ways.

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Chap 16_8e 106. Coordinating a complex IBP effort is a challenge for any organization. The chief problem in achieving coordination is that there can be an incredible lack of alignment around who is responsible for achieving the integration. The question involves whether the client or the agency should accept this responsibility. Ad agencies often see themselves in this lead role of architect and general contractor, but not many have demonstrated great success in this area. As advertising has become more complex, organizations have often become reliant on functional specialists. Specialists, by definition, focus on their specialty and can lose sight of the big picture and the efforts of others in the organization.

Specialists also want their own budgets. Internal competition for budget dollars often yields rivalries and animosities that work against coordination.

Few ad agencies have all the internal skills necessary to fulfill clients' demands for integrated marketing communications today. For example, interactive media often require special skills that are not held by most traditional ad agencies. Therefore, external sources must be used. External contractors often do not understand the overall strategy of the IBP effort. And the greater the number of external organizations delivering messages to potential customers, the greater the coordination challenge.

Most importantly, the main objective underlying the need for coordination is to achieve a synergistic effect for a consistent brand meaning.

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Chap 17_8e Indicate whether the statement is true or false.

1. It can cost 19 to 20 times more to reach a person with a direct mail piece than it would to reach that person with a traditional advertising medium because of the cost-per-contact advantages of traditional mass media. a. True b. False 2. Direct marketing is interactive because the advertiser is attempting to develop an ongoing dialogue with customers. a. True b. False 3. Products that are higher priced, complicated to use, or require demonstration are heavily dependent on personal selling in order to close the deal. a. True b. False 4. Knowing who the best customers are along with what and how often they buy is a direct marketer’s secret weapon. a. True b. False 5. A key aspect of direct marketing is that it is interactive; the advertiser is attempting to develop an ongoing dialogue with customers. a. True b. False 6. Direct marketing programs are commonly planned with the notion that one contact will lead them to another and then another. a. True b. False 7. List enhancement includes any of four categories of information: demographic data, geodemographic data, psychographic data, and behavioral data. a. True b. False 8. With the growing concern about fragmenting markets and the diminishing effectiveness of traditional media in reaching those markets, many advertisers are investing in direct marketing programs for more precision in targeting and measuring results. a. True b. False 9. The missionary salesperson calls on accounts with the express purpose of monitoring the satisfaction of buyers and updating buyers’ needs but may provide product information after a purchase. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 17_8e 10. Direct marketing is measurable by calculating cost per inquiry (CPI) or cost per order (CPO), for example. a. True b. False 11. A marcom manager, or marketing communications manager—which may be folded into the chief marketing officer role—plans an organization’s overall communications program and oversees the various functional specialists inside and outside the organization. a. True b. False 12. The CAN-SPAM legislation passed in 2003 requires that marketers use an accurate and verifiable return email address, be transparent about the nature of the e-mail content, provide opt-out options and act on such requests or face stiff penalties. a. True b. False 13. A smart way to enhance direct mail is to make it personal, such as addressing it to the consumer’s name or thanking a consumer for their loyalty. a. True b. False 14. Creative selling is the type of selling in which customers rely heavily on the salesperson for technical information, advice, and service. a. True b. False 15. Privacy is a big concern with respect to consumer databases and other related lists (internal lists, mailing lists, email lists). a. True b. False 16. System selling entails selling a set or interrelated components that fulfill all or a majority of a customer’s needs in a particular area. a. True b. False 17. The evolution of direct marketing can be seen by the history of some brands; among catalog marketers, few are more exemplary than L.L. Bean. a. True b. False 18. Direct marketing includes e-commerce; direct marketing has broken free from its mail-order heritage to ecommerce and other direct-to-consumer interactive digital platforms. a. True b. False

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Chap 17_8e 19. Our advice is to stay away from the low-cost temptations of bulk-email because the quickest way to get flamed and damage your brand name is to start sending out bulk emails to people who do not want to hear from you. a. True b. False 20. Advertisers invest nearly $9 billion annually in direct-mail programs. a. True b. False 21. Direct marketing programs are commonly used for three purposes: closing a sale, prospecting future customers, and engaging customers. a. True b. False 22. One disadvantage of direct marketing is that it has no way to identify and target specific segments of the population. a. True b. False 23. Companies use advanced technology to merge offline data, like credit ratings and home value, with online data, like online searches. a. True b. False 24. Keeping a date of birth in a customer database allows companies to do something a little special and contact customers on their birthdays with a birthday note or special promotion for them. a. True b. False 25. Direct marketing is not helpful as a tool to close the sale with a customer. a. True b. False 26. Traditionally done via face-to-face-communications, now personal selling has emerged to include personal chats, video session, calls, and other ways to communicate in a more personal manner with a consumer as it relates to a sale or service. a. True b. False 27. A marketing database allows a firm to measure how much business it is doing with its best customers through an analysis of recency, frequency, and monetary factors. a. True b. False

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Chap 17_8e 28. In an omnichannel strategy, a consumer could have the choice of returning an online purchase digitally or in the store. a. True b. False 29. Called hybrid commerce or an omnichannel strategy, the consumer can have the best of both digital and in-store channels. a. True b. False 30. Multiple media can be used in direct marketing programs a. True b. False 31. A key aspect of direct marketing programs is that they are often designed to produce an immediate, measurable response. a. True b. False 32. In digital form, spam is the new manifestation of junk mail. a. True b. False 33. Direct marketing is an interactive system of marketing that uses one or more advertising media to affect a measurable response and/or transaction at any location. a. True b. False 34. Customer relationship management, or CRM, involves cultivating short-term transactions with customers. a. True b. False 35. The pivotal role for direct marketing programs in this process is to establish dialogue with customers and then close the sale. a. True b. False 36. Cross-selling is the practice of identifying past purchasers of one product and suggesting that they purchase other products. a. True b. False

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Chap 17_8e Indicate the answer choice that best completes the statement or answers the question.

37. The unsolicited email generates a response rate that is less than: a. 5 percent b. 10 percent c. 1 percent d. 20 percent 38. For consumers, what is often a benefit of direct marketing? a. Convenience b. Privacy c. Technology d. Quality 39. Marketers in many fields are offering frequency-marketing programs that __________________. a. test internal mailing lists b. offer concrete rewards to frequent customers c. comprise an external mailing list d. need a salesperson to help implement 40. A company has a mailing list, but they are collecting information directly from individual consumers as well.

They are in the process of developing: a. a marketing database. b. an external mailing list. c. a geo-demographic data source. d. a single-source tracking study.

Scenario 17-1 American Profile is an e-technology company. It allows companies to search and navigate gigabytes of data, categorize disparate content, and gain secure access to information regardless of where it resides—all from its Web browser. Thus, American Profile can share content across connected servers with partners, suppliers, customers, and employees to form an e-business content network. And it all happens in real time.

41. (Scenario 17-1) American Profile is considering imitating a direct marketing tactic employed by several consumer magazines. Visitors to the home pages of these magazines’ websites can link to tips on gardening, home decorating, cooking, clothes shopping, skin care, hair care, etc. They are then encouraged to rate these articles and columns, explain whether they were helpful, and add comments and suggestions based on their own lifestyles and hobbies. This allows marketers to enhance their customer information with: a. psychographic data. b. geo-demographic data. c. demographic data. d. behavioral data.

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Chap 17_8e 42. In evaluating direct marketing programs, which of the following are frequently used measures? a. Cost per media and cost per consumer b. Cost per rating point and cost per share c. Cost per thousand and cost per million d. Cost per inquiry and cost per order 43. What is an important form of integrated brand promotion that relates to the sale of a product or service, and one that was traditionally done face-to-face (in person) but now has emerged with technology such as chats, videos, and online calls? a. public relations b. personal selling c. publicity d. e-mail 44. According to Seth Godin in his 1999 book Permission Marketing, what is the best way to make your customer list worthless? a. Decreasing the cost and response rate b. Selling it c. Merging offline mailing lists and online consumer data d. Increasing cost and delivery of the list to employees 45. (Scenario 17-1) The idea behind promoting American Profile is to show companies that gathering information about visitors’ households and lifestyles through its website is a crucial step in building a: a. selection of testimonials. b. creative selling strategy. c. marketing database. d. core team of functional specialists.

46. ARF Systems sells a finance and payroll application to a corporate buyer. In addition to the software, they offer to install the hardware required to run, install, and maintain the software. It will also train the employees on the usage of the software, and provide engineers to fix any problem that may arise in the software. They fulfill all or a majority of client needs in a particular area. In this scenario, ARF is involved in ________. a. system selling b. frequency marketing c. cross selling d. CPO marketing 47. Companies can address customers’ privacy concerns if they remember two fundamental premises about database marketing. Which of the following is one of those premises? a. Customers should be provided with the option of replying to a lead card. b. Information gained for databases should only be used for mailing purposes. c. Information collected should not be sold to other companies. d. A primary goal for developing a marketing database is to get to know customers in such a way that an organization can offer them products and services that better meet their needs.

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Chap 17_8e 48. An RFM analysis is used to: a. determine which products or services are most popular. b. identify the most loyal customers. c. track the replies from direct mail pieces. d. compare the efficiencies of various direct marketing programs.

49. General Motors has its salespeople attend Disney Institute, and BMW, like Apple, now features a highly trained “genius” to demonstrate and explain the many features of its luxury vehicles. This suggests the importance of ________________ in sales and marketing. a. customer service b. affect appeals c. cross-selling d. database marketing 50. Personal selling is: a. traditionally face-to-face communication and persuasion related to a sale of a product or service, but adapting to be virtual as well. b. now exclusively digital or technology mediated, although its origin was face-to-face. c. easier to conduct than any other marketing function d. the most controversial form of direct marketing 51. Which of the following is a key to success for an infomercial? a. Keeping the broadcast under five minutes b. Avoiding the use of celebrities c. Promoting only nationally known brand names d. Including testimonials from satisfied users 52. One characteristic of direct marketing is that it: a. depends on consumer response for its success. b. emphasizes developing a customer database. c. has a lower cost per contact. d. relies on audience segmentation.

53. Careless use of the e-mail took can earn one’s company the label of ____________. a. junk mailer b. telemarketer c. spammer d. netiquette

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Chap 17_8e 54. (Scenario 17-3) After the initial contact, the managers have identified about two dozen potential new visitors who live in and around the closest big city, the one that is about 250 miles away. They decide to start with this group.

They want to send a sales representative to host a casual buffet dinner for these potential guests along with the current customers who recommended them. The representative will promote the features of the recreational facility and drum up sales from both returning and new customers. Which of the following roles is this person playing in supporting the lodge’s direct marketing process? a. Salesperson b. Marcom manager c. Account executive d. Frequency marketer 55. (Scenario 17-2) Marketers consider _________ to be the most economical form of direct response advertising, but when unsolicited the response rate is less than one percent. a. email b. magazines c. telemarketing d. direct mail 56. A suburban country club contacts each member who holds a pool membership to inquire if they would also be interested in purchasing a golf membership. The country club personnel are using their marketing database for . a. personal selling b. creative selling c. marcom selling d. cross-selling 57. _________ lists are the starting point for developing better relationships with current customers, whereas __________ lists help an organization cultivate new business. a. internal; external b. demographic; psychographic c. external; internal d. psychographic; demographic 58. A shoe retailer uses its marketing database to run a recency, frequency, monetary analysis on its customers. In this context, recency refers to: a. how often a consumer was reached with any kind of advertising message. b. how often a consumer was reached through a direct marketing medium. c. how long it has been since a consumer shopped at or bought a product from the company. d. how often a consumer purchases a product from a certain product category.

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Chap 17_8e 59. The role of a marcom manager (or CMO for some firms) is to: a. ensure efficient and timely delivery of products ordered. b. monitor contacts, sales, and return sales. c. schedule the media for marketing communications. d. plan overall communications programs and oversee the functional specialists inside and outside of the organization.

60. (Scenario 17-1) An important legal and ethical issue relevant to this scenario is the importance of: a. abstaining from sharing their information with third parties without permission. b. making the site appear independent from commercial sponsors. c. having creative salespeople call visitors and ask about such concerns. d. enhancing the final mailing list with nothing more than demographic data.

61. What is a very important concern for consumers regarding direct marketing that advertisers and marketers should take very seriously? a. Cross-selling b. Invasion of privacy c. Increased junk mail d. Credit card debt Scenario 17-3 Trapper's Lake Lodge is a rustic hotel situated on a large lake in the Flat Tops Wilderness Area. The lodge offers a relaxing getaway as well as guided fishing, hunting, bicycling, and cross-country skiing trips from its remote location 250 miles away from a major airport. Guests must travel the last 40 miles on a rough dirt road during the summer months or ride a special snow car during the snow season. Trapper's Lake Lodge management has found that guests almost always have a wonderful experience during their stay and swear they will visit again. Nonetheless, the biggest problem is getting people to visit in the first place, probably due to the difficult travel involved. So the lodge management has decided to mount an aggressive direct marketing campaign to increase first-time guest visits as well as to nurture loyal frequent visitors.

62. (Scenario 17-3) A public relations consultant advises the lodge management that any direct marketing campaign should be coordinated with its other advertising and promotional strategies, as well as all the efforts that its employees are making in order to make the stay so wonderful. In effect, the consultant is recommending that the lodge make _________ the final goal of their campaign, since it would make all the efforts even more effective. a. services management b. marcom management c. integration d. innovation

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Chap 17_8e 63. A direct marketing transaction can take place ___________. a. anywhere b. only in store c. only online d. only through omnichannel 64. Because advertising conducted in direct marketing campaigns is typified by this emphasis on immediate response, it is commonly referred to as _____________. a. cross-selling b. direct response advertising c. instant gratification d. instant commerce 65. (Scenario 17-2) Which of the following is an essential application of the marketing database? a. Keeping close tabs on consumers to ensure their loyalty b. Reinforcing and recognizing the most frequent customers c. Degrading and ignoring customers that are not providing consistent business d. Notifying customers of minute changes to various products and services 66. Direct marketing is ________________ because the marketer attempts to develop an ongoing dialogue with the customer based on the idea that one contact will lead to another, and the message is continually refined. a. mass b. interactive c. social media d. partnership 67. Which of the following is the least complex form of personal selling? a. Creative selling b. System selling c. Missionary services d. Order taking 68. (Scenario 17-2) Which of the following is the most controversial of the various direct marketing methods? a. Social media interaction b. Direct mail b. Direct mail c. Bulk email d. Repetitive telemarketing

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Chap 17_8e 69. A direct marketer promoting a service industry uses both internal and external lists. Which of the following is a difference between internal and external lists? a. Internal lists contain all types of consumer information, whereas external lists consist of names and addresses. b. Internal lists help to develop relationships with current customers, whereas external lists help to attract new customers. c. Internal lists are drawn from the general population, whereas external lists are drawn from competitors' customer lists. d. Internal lists cannot be enhanced, whereas external lists can be enhanced.

70. In some companies, the ___________ is rolled into the Chief Marketing Officer (CMO) job. a. missionary salesperson b. marcom manager c. list enhancer d. functional specialist 71. Likely related to consumer privacy concerns, direct mail and/or direct e-mail marketers should be prepared for the: a. limited ability to test executions. b. lack of creative options. c. inaccuracy of addresses or e-mail addresses on mailing lists. d. consumers' distrust in mailed advertising.

72. Most consumers view their personal email addresses and mobile phones as _____________ and violating that space _______________. a. personal property; upsets people b. unimportant; is not a big deal. c. rented; is amusing. d. just a material possession; is not a true privacy violation since we can simply delete the unwanted email or text.

73. A real estate firm has a name-and-address file. It now chooses to incorporate into the file the demographic, geodemographic, psychographic, and behavioral data of its customers. Through this type of list enhancement, the real estate firm will: a. get a larger number of customer names and addresses in its database. b. contribute to the ease of payment for its customers. c. have a more complete description of who its customers are. d. allow consumers convenient access to compare product features on its website.

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Chap 17_8e 74. (Scenario 17-1) One of the publishers that American Profile has studied collects data at its website about readers of its health and fitness columns. The publisher uses direct mail to try and get these readers to subscribe to another one of its publications. This one focuses on nutrition. This publisher is involved in _____________. a. missionary selling b. creative selling c. system selling d. cross-selling 75. The Direct Marketing Association (DMA) estimated that the _______ would cost telemarketers about $50 billion in lost sales. a. CAN-SPAM act b. Direct Marketing Association’s opt-out program c. FTC’s Do Not Call Registry d. Better Business Bureau 76. (Scenario 17-1) Like many firms, American Profile uses an RFM analysis to identify certain groups of high-profile customers and analyze their habits across three criteria. RFM stands for: a. record, format, momentum. b. recency, frequency, monetary. c. reach, function, marketing. d. returns, files, mailings.

77. Since the Do Not Call Registry was established, U.S. regulators have fined violators more than ________. a. $50,000 b. $500 million c. $5 billion d. $500,000 78. Which forms of media can be used in executing direct marketing programs? a. direct mail only b. social media only c. direct mail, digital, social, and mobile media d. e-commerce only 79. What are three main purposes of direct marketing programs? a. To close the sale, identify prospects, and engage consumers b. To identify target markets, tailor the message, and support brand identity c. To provide information, answer questions, and foster brand loyalty d. To reward customers, furnish information, and generate brand preference

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Chap 17_8e Scenario 17-2 As the number of firms utilizing direct marketing continues to grow, so does the number of consumers opposed to the methods often described as “intrusive.” To combat the growing number of opposed consumers, marketers need to find creative new ways to optimize their direct marketing campaigns. One such outlet that firms are beginning to experiment with is social media. Executives understand that many consumers view a company’s Facebook page more often than the company’s home page, so they’ve grown to realize that setting up some form of an email opt-in on social media sites is a great way to build marketing databases. In addition to opt-in sections, social media allows businesses to interact with consumers, which may make them less inclined to respond negatively to a company’s direct marketing efforts. By utilizing social media more often in the future, a number of U.S. companies hope to build stronger and more useful marketing databases.

80. (Scenario 17-2) Building a marketing database can be helpful because it allows companies to gauge how receptive customers may be to new products or product features. One way of isolating a company’s best customers is by utilizing: a. a recency, frequency, and monetary analysis. b. a frequency marketing program. c. cross-selling techniques. d. direct response advertising.

81. Just because a company sends an email does not mean it was received. Roughly what percent of emails get directed to recipients’ “spam inboxes”? a. 80 percent b. 1 percent c. 5 percent d. 20 percent 82. A marketing manager for a company that packages vacations to exotic locations uses a variety of media to promote these trips, including social media, infomercials, and direct mail. One of the primary objectives is integration. This is because if these programs are integrated, the manager can: a. cut the cost of communicating with audiences. b. easily measure results. c. make the program more effective than the sum of its parts. d. eliminate the need to tailor specific messages to specific audiences.

83. Which of the following is true of building customer relationships through direct marketing? a. Word-of-mouth advertising is the best way to build a marketing base. b. Long-term customer relationships must be based on trust. c. Transactions are more important than relationships in direct marketing. d. Customers are willing to pay for catalogs if given the proper incentive.

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Chap 17_8e 84. Cross-selling involves marketing: a. additional products to current customers. b. the same product to different consumers. c. products to different members of the same household. d. to one geo-demographic segment.

85. (Scenario 17-3) Guests at the lodge have always filled out a brief form with their name, address, phone number, and email address. They will now be asked to complete a questionnaire that collects more information such as their age, gender, education level, and occupation. Additionally, the survey asks about their outdoor interests, recreational preferences, other hobbies, and comments about their stay at Trapper's Lake Lodge. This combination of new _________ data will be used to help build a marketing database for the lodge. a. demographic and psychographic b. personal and behavioral c. behavioral and academic d. demographic and geo-demographic 86. Two advantages of direct mail as a medium of communication is its: a. cost and response rate. b. selectivity and flexibility. c. mailing lists and consumer data. d. cost and delivery.

87. (Scenario 17-2) What effect has the Internet had on privacy concerns regarding direct marketing? a. It has caused consumers to feel safer because they know marketers are acting responsibly. b. It has amplified privacy concerns as it makes it easier for marketers to access personal information. c. It has had no effect on consumer’s feelings towards direct marketing. d. It has greatly reduced the direct marketing efforts of companies across the world.

88. Direct marketing is defined as an interactive system that uses one or more advertising media to: a. develop a one-time communication with customers. b. push a product through the distribution channel. c. sustain a brand image. d. affect a measurable response and/or transaction at any location.

89. (Scenario 17-3) After asking for references from current guests and for permission to use their names, the lodge has gathered a list of about 75 friends and family members who may be interested in a stay. The lodge managers plan on making an initial contact with each of them, hoping to experiment with a couple of different messages to see what works best. But they want to be careful not to turn off these potential customers. Which approach would work best for this first step? a. Mobile marketing through text messages b. Personalization c. Phone calls through telemarketing d. Bulk promotional messages through email

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Chap 17_8e 90. The wide variety of options available for reaching customers poses tremendous challenges with respect to: a. languages b. social media c. humor appeals d. coordination and integration 91. Marketing databases can be expanded by adding _________ data, which allows for a more qualitative assessment of a customer’s general lifestyle, interests, and options. a. demographic b. psychographic c. telegraphic d. geo-demographic 92. Which is a key aspect of direct marketing programs? a. It uses only one type of media to get a response. b. It has a long-term sales promotion goal. c. It often is designed to produce an immediate, measurable response. d. It relies on technology rather than human behavior.

93. Why is privacy so important to consider when working in the area of direct marketing and customer relationship management?

94. Discuss why the role of personal selling is a critical one in the direct marketing tool kit, and briefly explain the three types of personal selling.

95. Define list enhancement, and discuss two simple ways to conduct it. What four categories of information can be included to help define various populations and target markets?

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Chap 17_8e 96. You are the marketing manager for the Internet’s largest online shoe retailer. The company ships shoes of all types, styles, and sizes to locations throughout the U.S. and around the world. Given a choice between access to a mailing list and access to a marketing database, which would you choose? Define each and state the advantages of your choice?

97. Marketing databases are used by businesses for three concrete tasks or specific applications. Identify and define all three.

98. What is meant by the term direct marketing? What elements have contributed to its growth and popularity in recent years? What are the three principal purposes that a direct marketing program could serve for a company?

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Chap 17_8e Answer Key 1. True 2. True 3. True 4. True 5. True 6. True 7. True 8. True 9. True 10. True 11. True 12. True 13. True 14. True 15. True 16. True 17. True 18. True 19. True 20. True 21. True 22. False 23. True 24. True 25. False 26. True

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Chap 17_8e 27. True 28. True 29. True 30. True 31. True 32. True 33. True 34. False 35. True 36. True 37. c 38. a 39. b 40. a 41. a 42. d 43. b 44. b 45. c 46. a 47. d 48. b 49. a 50. a 51. d 52. b 53. c 54. a Copyright Cengage Learning. Powered by Cognero.

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Chap 17_8e 55. a 56. d 57. a 58. c 59. d 60. a 61. b 62. c 63. a 64. b 65. b 66. b 67. d 68. c 69. b 70. b 71. c 72. a 73. c 74. d 75. c 76. b 77. b 78. c 79. a 80. a 81. d 82. c Copyright Cengage Learning. Powered by Cognero.

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Chap 17_8e 83. b 84. a 85. a 86. b 87. b 88. d 89. b 90. d 91. b 92. c 93. Privacy is crucial to understand and respect for customers. Customers need to have an “opt-out” choice and follow laws such as the CAN SPAM act. Consumers consider their email and their mobile phone numbers as personal property, and a perceived invasion of such privacy is a way to “tick-off” or upset customers. It is also important to be transparent and responsible with consumer lists. Many consumers are uneasy about privacy issues related to marketing databases. The internet amplifies the concerns about the way consumer information is gathered and exchanged by businesses and governments. And now that offline data is merged with online consumer data, privacy concerns are in both online and offline areas. It is crucial to respect privacy and know the most recent laws, and to treat consumer information very carefully.

94. Personal selling is critically important for establishing face-to-face communication with consumers. Face-to-face interactions enhance persuasion and are often necessary in selling products involving high technology or a high price.

Products that are complicated to use, require demonstration, or must be customized to individual consumer needs are also more successfully marketed when the IBP mix includes a personal selling approach. The following are the three types: Order taking: A familiar sales role, one that involves documenting new purchases from consumers or businesses who want to buy goods or schedule services. What is not generally understood is that order takers very often act as the first line for establishing a dialogue with the customer.

Creative selling: It is needed when the consumer relies heavily on the sales person for technical information, advice, and service.

System selling: It entails offering a set of interrelated components rather than a single item, and sometimes a full range of products and services needed by customers. This often involves industrial manufacturers, producers of heavy equipment, or government buyers who have complex purchasing processes; and prefer dealing with a single firm, or a small group of firms, rather than multiple suppliers.

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Chap 17_8e 95. List enhancement refers to any additions or expansions that are made within a basic internal mailing list such as a basic name-and-address file. It involves merging existing records with new information. One way to do this is to simply purchase lists with more names and addresses from a research firm or noncompetitive business, and add these to the existing internal list. The second way is to incorporate information from external databases into the original list. The four categories of information that are often used to enhance lists are as follows: Demographic data, the basic descriptors of households and consumers supplied by the Census Bureau.

Geo-demographic data, the information about the neighborhood in which a person lives. Psychographic data, the information involving a person’s lifestyle, interests, and opinions. Behavioral data, the information about other products and services the person has purchased.

96. A mailing list is simply a file of the names and addresses that your business could use in contacting current or prior customers. An internal list (an organization’s records of its own customers, subscribers, donors, and inquirers) offers little perspective on the best marketing prospects for the future. But it can be enhanced with information from external lists by adding additional names, or by merging it with other lists to match up demographic, geo-demographic, behavioral, and psychographic data with these customers. A marketing database has all of the information that would be on this mailing list, plus one more element—it includes information about individuals' preferences and behavior patterns, collected directly from the customers. It allows marketers to give customers personalized attention because they understand their likes and dislikes, purchasing patterns, frequency and timing of purchases, nature of returns (a common issue with online shoe purchases), and other details related to shopping and consumption. In addition, it can form the basis for an RFM (reach, frequency, and monetary) analysis. This allows marketers to target their most profitable customers with specialpromotions and personal attention. Therefore, the marketing database would be more advantageous for the retail shoe business.

97. Businesses use marketing databases in at least three specific applications—the RFM analysis, the frequency marketing program, and the cross-selling effort. An RFM analysis provides data on recency, frequency, and monetary elements.

This means it reviews the database and tells the marketer how often a customer is buying from the company, how recently that customer has made a purchase, and how much that customer is spending. In this way it calculates the value of the customer based on past behavior and purchasing patterns. A frequency marketing program recognizes and reinforces buying behavior in preferred customers. It has three elements—a database to hold its collective memory; a benefit package to attract and retain customers; and a communication strategy to keep an ongoing dialogue going with the firm’s best customers. A cross-selling effort identifies customers who have already purchased one of the firm’s products and creates a marketing strategy to encourage them to purchase other products the firm offers. In an extension of cross-selling, a firm can turn this information around and do just the opposite. It can determine which types of customers have bought a certain product, and then pitch that product to others in the database who share some of the same characteristics or demographics. Student examples may vary.

98. According to the Direct Marketing Association, direct marketing is an interactive system of marketing, which uses one or more advertising media to affect a measurable response and/or transaction at any location. It is interactive because it attempts to initiate and maintain a dialogue with customers, and it involves multiple forms of media to be most effective.

Some elements that have contributed to its recent growth and popularity are convenience (including time-savings for the consumer); credit cards (including more liberal views about using credit and accumulating debt); toll-free numbers (which make it simpler and more appealing to respond to direct marketing efforts); and computers (allowing for quick response and comparison shopping on the part of consumers, and easy ways to tract and interact with customers on the part of businesses). The most common purpose that direct marketing serves is to close the sale with a customer. It can also identify prospects for future contacts. And it can be used to engage customers by seeking their advice, giving them information, addressing their concerns, rewarding their support, or fostering their loyalty.

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Chap 18_8e Indicate whether the statement is true or false.

1. A company allows its workers to take off on one a ernoon, every month, to volunteer at a nonprofit organiza on of their choice. The company sends out a press release that explains this program to the media.

This is an example of a reac ve public rela ons strategy. a. True b. False 2. There are three broad types of corporate adver sing—professional, peer‐to‐peer, and word of mouth. a. True b. False 3. Three basic types of corporate adver sing dominate the campaigns run by organiza ons: image adver sing, advocacy adver sing, and cause‐related adver sing. a. True b. False 4. Corporate image adver sing focuses on enhancing the overall image of a firm among important cons tuents such as customers, employees, and the general public. a. True b. False 5. Corporate adver sing is not always targeted at the consumer. a. True b. False 6. There are goals for sustainable development from the United Na ons (UN) such as no poverty, end hunger, quality educa on, and gender inequality; leaders and influencers and marketers can think through these goals and how their business relates to them. a. True b. False 7. The field of public rela ons does much more than its tradi onal role of managing goodwill with a company’s stakeholders and customers. a. True b. False 8. A reac ve public rela ons strategy is a tool designed for firms to take quick and though ul ac on at the first sign of nega ve publicity. a. True b. False 9. Advocacy adver sing focuses on enhancing the overall image of a firm among important cons tuents —typically customers, employees, and the general public. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 18_8e 10. To generate buzz, five Ts are the keys: talkers, topics, tools, talking and tracking. a. True b. False 11. Apple is a company that has historically relied on corporate campaigns to support its numerous subbrands. a. True b. False 12. Audi used its Super Bowl ad to take a stance on gender equality; this is an example of advocacy adver sing. a. True b. False 13. Public rela ons professionals can work with press releases, interviews and press conferences, sponsored events and event marke ng, and feature stories in digital and tradi onal spaces. a. True b. False 14. Influencer marke ng could be considered a special case of public rela ons. a. True b. False 15. Gatorade enjoys posi ve publicity when an athlete gets “dunked” with the sport drink a er a big win and it is on social media or television. a. True b. False 16. PR is a vital tool for implemen ng prosocial public service announcements. a. True b. False 17. WOM can relate with a customer’s intentions to buy the brand, especially if the information comes from someone with close social ties to that consumer. a. True b. False 18. Word of mouth is the process of encouraging consumers to talk to each other about a firm’s brand or marke ng ac vi es; electronic word of mouth is the digital version. a. True b. False

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Chap 18_8e 19. Corporate adver sing is not designed to promote the benefits of a specific brand, but instead is intended to establish a favorable a tude toward a company as a whole. a. True b. False 20. In peer‐to‐peer programs, the idea is to give influencers something fun or provocative to talk about; there is an emphasis on social currency. a. True b. False 21. Press conferences can be strong public rela ons tools because they lend an air of credibility by using a news format to present informa on. a. True b. False 22. Common people who have large social circles and can recommend brands to their friends and colleagues are useful in influencer marke ng. a. True b. False 23. Developing connector databases, finding the conversa on starters, tracking the buzz online and off— that’s the new era of influencer marke ng. a. True b. False 24. The people enrolled by manufacturers to bring their brands into their conversa ons and share interes ng or exci ng informa on about them with their social networks are called controllers. a. True b. False 25. Public rela ons professionals working for a business may seek to highlight posi ve events like quarterly sales or profits for stockholders. a. True b. False 26. Public rela ons is more about corporate communications and image management in times of non‐crisis. a. True b. False 27. Social media is a sweet spot for public rela ons. a. True b. False

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Chap 18_8e 28. Buzz marke ng is the exact same thing as electronic word of mouth and viral marke ng. a. True b. False 29. The intent of corporate adver sing is to establish a favorable a tude toward a company as a whole, instead of focusing on the features of its products. a. True b. False 30. Corporate adver sing is gaining favor worldwide as well‐known firms and established companies invest in this form of promo on. a. True b. False 31. A shoe manufacturing company makes the claim that it’s shoes have environmental benefits, but this is ques onable and not supported with facts or specifics; there is a possibility the company is doing a prac ce called greenwashing. a. True b. False 32. Public rela ons can help with damage control in the face of nega ve publicity, in addi on to the more constant image management in mes of non‐crisis. a. True b. False 33. Green marke ng refers to corporate communica on efforts that embrace a cause or a program in support of the environment. a. True b. False 34. The objec ves of corporate adver sing include boos ng employee morale and a rac ng new employees. a. True b. False 35. Buzz marke ng involves crea ng an event or experience that leads to conversa ons about the brand. a. True b. False 36. Public rela ons is synergis c with social media as well as with mainstream media. a. True b. False

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Chap 18_8e Indicate the answer choice that best completes the statement or answers the question.

37. Cause‐related marke ng is becoming increasingly common because: a. consumers prefer brands that support important social issues. b. it is the most cost‐effec ve public rela ons tool. c. it is directly relevant to the business opera ons of organiza ons. d. it focuses on promo ng the products of a brand.

38. Peer‐to‐peer influencer programs have a different tone than those involving professionals in that they focus more on: a. superior product benefits and features. b. sharing advice or exper se with another consumer. c. evidence or data to back up product claims. d. something fun or provoca ve to talk about.

39. Public rela ons strategies can be broadly categorized as either: a. public or private. b. product‐oriented or customer‐oriented. c. proac ve or reac ve. d. internal or external.

40. Television is a popular choice for corporate campaigns because: a. it is free from ad clu er. b. billions of dollars are invested annually in media for corporate campaigns. c. companies need not monitor the publicity gained through television commercials. d. the crea ve opportuni es provided by television can deliver a powerful message.

41. Many contemporary companies are seeking influencers, especially those who connect people.

Connectors are people who: a. are employees of companies who spread goodwill about their brand and their products in person. b. are paid to go door‐to‐door to offer samples and product informa on. c. are social influencers who can generate buzz and viral marke ng with their large and ac ve social networks. d. act as intermediaries and sell products to consumers at compe

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Chap 18_8e 42. (Scenario 18‐1) A news ar cle on projected plant closings in Milwaukee has been going around the city. The manager of one of the Milwaukee brewing plants is approached by some of his subordinates who are concerned about retaining their jobs. He sees the need for a public rela ons response since his plant is not one among those that are closing. Which of the following is his objec ve in doing this? a. Lobbying b. Holding a sponsored event c. Preparing internal communica ons d. Creating a press release 43. Which of the following terms refers to the free media exposure that a firm receives about its ac vi es or brands? a. Publicity b. Interviews c. Product launch d. Sponsored events 44. (Scenario 18‐2) Over the years, he has learned that posi ve word‐of‐mouth adver sing helps. He now enlists the tes mony of seamstresses who have been with him for years, customers who won’t buy any casual clothing but his, and even high‐end designers who praise his business integrity and product quality.

Which of the following is he currently involved in? a. Publicity marke ng b. Influencer marke ng c. Sponsorship marke ng d. Internal marke ng 45. Which of the following people in the community is most likely to be a professional influencer? a. A doctor who conducts medical checkups for underprivileged children free of cost b. A neighbor who likes to shop, talk about new products, and share recipes c. A hairdresser who talks about a new condi oner and offers a sample d. A teenager who tells his friends about the new bicycle he saw at the store 46. Among all the public rela ons tools that a company might use, which of the following focuses specifically on employees? a. A press release b. A feature story c. A company newsle er d. A sponsored event

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Chap 18_8e 47. A car company is introducing a new truck. Its public rela ons team focuses on a feature story rather than a press release because the company can: a. create the feature story internally. b. be more in control with a feature story. c. make it short and precise. d. distribute it to mul ple media outlets.

48. (Scenario 18‐2) A er 35 years, he looks back to his beginnings. He had li le money for a public rela ons agency early on so he had to create carefully worded messages, and strategically placed ads that the public would perceive in a very posi ve light. In essence, he was using a type of: a. influencer marke ng. b. free publicity. c. corporate adver sing. d. reactive strategy.

49. Compared to a proac ve strategy, a reac ve strategy is more difficult for public rela ons staff to organize and prepare because it: a. cannot implement input suggested by the staff. b. is triggered by events that are unpredictable. c. must iden fy the content, ra onale, and vehicles related to the overall message. d. it does not involve a public rela ons audit.

50. When marketers are considering cause‐related adver sing, it should be stressed that this type of adver sing works best when a company: a. needs to do damage control. b. intends to increase its sales figures radically. c. chooses an issue that connects with its business. d. wants to create a buzz about an exci ng new product.

51. Dell, a computer firm in Aus n, Texas had many of its employees volunteer at an event by a charity group to help give out free winter coats to people who have a demonstrated financial need. By doing so, Dell is . a. promo ng a product b. preparing internal communica ons c. promo ng goodwill d. greenwashing

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Chap 18_8e 52. A coffee retailer runs ads and posts signs in his coffee shops to no fy that the cups are made from recyclable material, and the coffee is organically grown by free‐market producers. In this case, the retailer is using . a. green marke ng b. influencer adver sing c. viral marke ng d. advocacy adver sing 53. A publisher of children’s books launches a campaign to promote literacy by dona ng books to 25 public libraries and 50 public schools in low‐income areas across the country. The publisher is conduc ng: a. a sales promo on. b. advocacy adver sing. c. green marke ng. d. cause‐related adver sing.

Scenario 18‐2 A young man decides to become a mass producer of T‐shirts. His small factory located in Oregon begins promo ng itself by hiring excellent seamstresses, offering a pleasant working environment, decent salaries, and giving the public an opportunity to buy clothes that are truly “made in America.” The company eventually adds other clothing items, opens three brick‐and‐mortar retail stores in several large ci es, and expands to online shopping. Over the years, the firm grows and prospers due to its reputa on as an American manufacturer, a fair employer, and an opponent of the tradi onal view of “sweatshops.” However, along the way, it deals with a few public rela ons issues too.

54. (Scenario 18‐2) Shortly a er this young man launched his business, a local newspaper runs a series of inves ga ve reports on crowded, dimly lit, and unven lated sweatshops along the West Coast that hire illegal immigrants. His business is men oned, though only in a list of firms that employ seamstresses, not in the list of those accused of wrongdoing. S ll, he feels the need to write a le er to the editor as well as put out press releases to clarify his posi on and describe his business ethics. In terms of public rela ons, which of the following is he doing? a. Promo ng products b. Preparing internal communica ons c. Counterac ng nega ve publicity d. Lobbying 55. (Scenario 18‐5) Although it is some mes unavoidable, one way to prevent nega ve publicity is to develop a ________ public rela ons strategy that focuses on opportuni es to accomplish something posi ve. a. reac ve b. damage‐control c. proac ve d. situa onal

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Chap 18_8e 56. (Scenario 18‐5) When publicity is posi ve it tends to: a. carry heightened credibility. b. create more skep cism. c. create compe

on amongst brands.

d. polarize individuals within a company.

57. The idea behind both buzz and viral marke ng strategies is to: a. focus on low levels of contact between consumers. b. target a handful of carefully chosen connectors as influencers. c. use solely new digital media to create word‐of‐mouth buzz. d. replace peer‐to‐peer programs with professional influencer programs.

58. A company goes through all of its products and looks for ways in which the products could hurt customers or break; then it looks through social media posts by consumers to see what parts of the products consumers have had problems with. In public rela ons, this is identifying _______. a. a proac ve situa on b. vulnerabili es c. a synergis c opportunity d. influencer marke ng strategies 59. Although its role is changing, tradi onally, the role of public rela ons is to: a. foster goodwill between a firm and its cons tuent groups. b. damage the image of a rival company. c. use paid media to convey a message. d. increase the produc vity of employees in a firm.

60. (Scenario 18‐4) There are six primary objec ves of public rela ons. Which of the following objec ves were ineffec vely portrayed by LeBron James’ management team? a. Promo ng goodwill b. Lobbying c. Preparing a program ra onale d. Giving advice and counsel

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Chap 18_8e Scenario 18‐4 Celebrity basketball star LeBron James found himself in the middle of a PR nightmare when he decided to turn his decision regarding his future team into an hour long spot on ESPN, which was en tled, “The Decision.” Almost immediately, fans and cri cs alike began to express their distaste for the way the mul ‐ millionaire handled the situa on. Many fans’ opinions of the star were greatly altered and James’ posi ve public image appeared to be sha ered. Perhaps even worse than the damage to his image, the LeBron James “brand” began to take a hit when his jerseys were pulled from many stores and websites, and thousands of fans vowed they would never buy James’ line of shoes ever again. Several months later, James began repairing his public image. James, who endorses Nike products, came out with a controversial commercial that was believed to evoke sympathy. However, many viewers felt the commercial mocked the nega ve reac on expressed over “The Decision,” and was intended to re‐brand the star as a rebel. Either way, LeBron James has a long way to go before he can regain his tle as one of the most beloved players in the NBA. 61. (Scenario 18‐4) This is an unfortunate case of nega ve public rela ons. Which of the following is the classic role of public rela ons? a. To foster goodwill between a firm and its many cons tuent groups b. To promote new forms of marke ng such as green marke ng c. To boost employee morale or a ract new employees d. To be er posi on the firm’s products against foreign compe

on

62. A car company had a scandal where its breaks were not always working. Then, their air bags didn’t always deploy. Months later, a public rela ons consultant reviews this situa on and how it was handled. To help the company be er handle such situa ons in the future, the consultant should a. start a new adver sing campaign for the new model of the car. b. prepare a public rela ons audit and iden fy the company's vulnerabili es. c. disseminate posi ve informa on through in‐house publica ons. d. deploy lobbyists to monitor legisla on that can nega vely impact the company.

63. (Scenario 18‐5) Publicity o en increases the awareness of a par cular brand. The concept of crea ng an event or experience that yields casual conversa ons which include the brand is referred to as marke ng. a. viral b. publicity c. influencer d. buzz 64. In the context of corporate adver sing, the green movement looks sustainable for some me because: a. it helps companies focus on their bo om‐line. b. companies no longer engage in greenwashing. c. environmental issues are of major concern to consumers. d. it allows companies to overpromise and under deliver.

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Chap 18_8e 65. Over 100 consumers claimed, via social media, that a certain brand of highchair is breaking, and their babies were in danger of falling or ge ng hurt. Which of the major PR tools should the manufacturer use in this situa on? a. Adver sing the new model of the high chair b. Calling a press conference c. Issuing an email to employees for ideas on how to proceed d. Sponsoring an event 66. Which of the following is true of a proac ve public rela ons strategy? a. It focuses on problems to be solved. b. It emphasizes the defensive measures a company must consider. c. It focuses on iden fying vulnerabili es. d. It is guided by marke ng objec ves.

67. Public rela ons is strategically used for a. internal communica ons

when adversity strikes.

b. damage control c. community service d. proac ve efforts 68. A firm’s owner moved out of the country, and she may close down the private company. To reduce the anxiety of its workforce, which of the following objec ves of public rela ons can the company adopt? a. Par cipate in industry events. b. Lobby with industry groups. c. Promote its products and services. d. Prepare internal communica ons.

69. While its inten on was to do advocacy adver sing, Pepsi eventually pulled its ad with Kendall Jenner giving a Pepsi to a cop during a protest. A er some outrage by enough consumers, the company pulled the ad and did an apology, which are forms of ________. a. situa on analyses b. reac ve public rela ons c. program ra onale d. public rela ons audits 70. (Scenario 18‐4) Judging by his recent apology and television commercial, LeBron James is apparently trying to repair his image. This effort is known as: a. damage control. b. situa on analysis. c. proac ve strategy. d. public rela ons audit.

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Chap 18_8e 71. Influencer marke ng involves individuals or groups who: a. represent the larger public in their opinions on products or brands. b. support social causes or issues promoted by an organiza on. c. spread posi ve word of mouth to a broad popula on. d. are unusually impacted by branded marke ng programs.

72. Electronic word of mouth marke ng is very useful for a rac ng a en on and ___________, especially on social media. a. iden fying vulnerabili es in a public rela ons audit b. buzz building c. greenwashing d. compe tor insights Scenario 18‐5 An old adage states that all publicity is good publicity. However, Professors Jonah Berger of the Wharton School, and Alan Sorensen and Scott Rasmussen of Stanford University found that there is such a thing as bad publicity. The colleagues studied the rela onship between bad publicity and its impact on music albums, books, and movies. They published their findings in Marke ng Science. A er studying cases involving the late Michael Jackson, Russell Crowe, and various authors, the colleagues concluded that nega ve publicity can increase product sales. Michael Jackson sold more albums a er receiving nega ve media a en on, and films starring Russell Crowe received higher rankings following an incident in which he allegedly threw a cell phone at a hotel employee. These high‐profile stars actually thrived a er receiving substan al amounts of nega ve publicity. However, in many low profile cases, nega ve publicity hurt sales and product recep on. The three colleagues conducted an analysis of The New York Times’ reviews and book sales, and found that nega ve reviews hurt sales of books by well‐established authors, but helped sales of books by rela vely unknown authors. A er conduc ng the study, the authors found that conven onal wisdom is wrong: not all publicity is good publicity. But they did show that nega ve publicity can some mes be posi ve; it all depends on exis ng‐product awareness.

73. (Scenario 18‐5) Which of the following factors contributes to the idea that we have entered a new era of public rela ons? a. Increased media coverage of company adver sing b. Aggressive efforts to catch firms ac ng in an improper manner c. Sophis cated and connected consumers who talk more about brands d. Increased focus on public rela ons and its applica ons rather than other marke ng processes

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Chap 18_8e 74. (Scenario 18‐4) One reason LeBron James and his team did not expect such nega ve backlash following “The Decision” was because he donated the $3 million generated by the television spot to a number of children’s chari es. Although it may not have been effec ve in this instance, through this sponsorship, James and his team hoped to: a. completely erase any nega ve public image. b. increase the sales for his company. c. give posi ve visibility to his brand. d. leverage their investment and a ract future sponsors.

75. In peer‐to‐peer programs, Dove did a campaign about real beauty sketches, where an ar st drew women based on what they described themselves to look like. At the me of this wri ng, the video had over 67 million views on social media. The campaign is said to have “_____________”, which indicates success. a. program ra onale b. gone viral c. greenwashed d. corporate adver sing 76. Which of the following components of public rela ons includes analyses, objec ves, and ra onales regarding a company’s programs, and the message content and vehicles that will assist in its communica ons? a. A public rela ons plan b. A public rela ons audit c. A publicity tool d. A press release 77. Which of the following objec ves of public rela ons focuses on dealing with government officials and pending legisla on? a. Giving advice and counsel b. Lobbying c. Counterac ng nega ve publicity d. Preparing internal communica ons 78. (Scenario 18‐2) The young business owner feels he did a good job in his press release by describing the posi ve aspects of his company. However, he is aware that his press release: a. can only promote posi ve news, but not combat nega ve informa on. b. cannot be integrated with other communica on efforts. c. can do well in communica ng informa on internally, but not externally. d. can be edited, misconstrued, or not run at all by media organiza ons.

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Chap 18_8e 79. How are buzz marke ng and viral marke ng similar to one another? a. Both refer to efforts to s mulate word of mouth b. Both rely on a celebrity influencer c. Both involve face‐to‐face communica on d. Both do not work with social media 80. Stockholders, suppliers, employees, government en es, ci zen ac on groups, and the general public are all considered to be _______ in the world of public rela ons. a. beneficiaries b. shareholders c. cons tuents d. adversaries 81. As opposed to a news release, a feature story: a. gives a single journalist exclusive rights to the informa on. b. is short and precise. c. gives the company no control over the content. d. can be wri en by an employee of the firm.

82. One important tac cal tool is the press release. A firm can best take advantage of press coverage by: a. conduc ng industry events or community ac vi es that reflect favorably on the firm. b. dissemina ng informa on and correc ng misinforma on within the firm. c. preparing employees for public appearances. d. having a file of informa on that makes for good news stories.

83. Which of the following is true of public rela ons? a. It is a tool to produce more sustainable and environment‐friendly products. b. It is a tool to manage goodwill, corporate communica ons, and damage caused by nega ve publicity. c. It is a process of changing the features of a product to suit customer needs. d. It is a process of transpor ng products to the loca on where consumers can buy them.

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Chap 18_8e Scenario 18‐1 The brewing companies in the U.S. love to use public rela ons to keep their company names in the minds of Americans and to promote their many brands of beer and ale. Both tradi onal and innova ve public rela ons ac vi es—using both tradi onal and innova ve media—help to promote a posi ve public image, create brand awareness, highlight the product line, and act as cost‐effec ve ways to enhance the overall IBP campaign. And these brewers use a variety of objec ves and tools that support the field of public rela ons.

84. (Scenario 18‐1) A large brewing company has its public rela ons staff create an interac ve website aimed at men and women in their 20s and early 30s. It offers interes ng facts about the history of beer, the making of beer, the defini on of various brewing terms, the difference between hops and malt, etc. It includes games like crossword puzzles, word jumbles, and trivia contests related to beer. The objec ve of such PR ini a ves is to: a. counteract nega ve publicity about beer. b. disseminate internal informa on about the beer industry. c. lobby poli cians for favorable outcomes for the beer industry. d. promote goodwill toward beer drinkers.

85. (Scenario 18‐3) The makers of a well‐known Tennessee whiskey release a very funny three‐minute video on their website. It gradually gets no ced and distributed to friends and family by loyal consumers, and by people who just want to share a funny video. With very li le effort, the word gets out and people start talking about this old‐ fashioned brand in a new way. The company is benefi ng from the success of: a. corporate image marke ng. b. lobbying. c. green marke ng. d. viral marke ng.

86. (Scenario 18‐4) LeBron James was widely cri cized for his decision because he refused to a end a tradi onal press conference. Press conferences are o en a good way to announce important decisions, scien fic breakthroughs, and new product details because they: a. offer a chance to see that an organiza on is dedicated to suppor ng its community. b. use a news format to present salient informa on. c. offer a single journalist exclusive rights to the informa on. d. ensure that a company gets the appropriate amount of publicity following their announcement.

87. ___________is a component of a public rela ons plan that summarizes the informa on obtained from a public rela ons audit a. Program objec ves b. Communica ons vehicles c. Program ra onale d. Situa on analysis

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Chap 18_8e 88. A canned soup manufacturer has prepared ques onnaires for its employees and customers. The ques ons are about how the people view its brands, the profits it is making, current market trends for canned soup, and the employee ac vi es of the company. Through these ques onnaires, it hopes to collect posi ve, newsworthy informa on that it can use later. The company is in the process of: a. conduc ng a public rela ons audit. b. iden fying vehicles for PR communica on. c. crea ng a company newsle er. d. researching an influencer program.

89. Which of the following steps help in retaining the intended meaning and purpose of a press release? a. Distribu ng newsle ers among employees b. Having working rela onships with editors c. Conduc ng shareholder mee ngs regularly d. Encouraging employees to write feature stories about the firm 90. A print ad shows an empty bo le of Coca Cola with the cap on "No added preserva ves. No ar ficial flavors.

'The real thing' since 1886." This is an example of . a. viral marke ng b. corporate image adver sing c. cause‐related adver sing d. green marke ng 91. The issue featured in a. cause‐related adver sing

is directly relevant to the business opera ons of the organiza on.

b. advocacy adver sing c. philanthropy d. community marke ng 92. (Scenario 18‐3) A garment manufacturer emphasizes designing clothes using sustainable prac ces. Recently, it launched a Facebook page to gather signatures of people in favor of plan ng three trees when one is felled. This is a form of _____. a. corporate image adver sing. b. advocacy adver sing. c. buzz marke ng. d. influencer marke ng.

93. Compared to other influencers, professional influencers are usually: a. paid lesser by companies to push their products. b. in need of factual data or clinical results before suppor ng a brand. c. more interested in something fun or provoca ve to talk about. d. easier to recruit for marke ng efforts.

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Chap 18_8e 94. (Scenario 18‐1) The brewing company with the interac ve website full of facts and games is moving beyond the Web and into the community. It sends stories to media outlets announcing that all the fun on its website will con nue at its beer gardens to be set up at summer and fall fes vals around the country. It will feature more games, puzzles, and trivia contests. The two PR tools that the company is using are: a. press conference and lobbying. b. press release and sponsored event. c. buzz marke ng and publicity. d. feature story and viral marke ng.

95. (Scenario 18‐1) A public rela ons firm has designed a website for a large brewing company. It provides informa on on all its beverages, with a separate page for each, featuring how each was imagined, concocted, tested, and named. It offers a contest to name the new fall lager that will premiere later in the year. With this website, the company's primary objec ve is to: a. increase public awareness for its brands. b. increase the selling cost of its products. c. help the management an cipate public reac ons. d. counteract nega ve publicity.

Scenario 18‐3 For some years now, enterprising individuals have go en their own ideas, forums, and entertainment programs out in front of the public with no help from big tech firms, media conglomerates, or ad agencies.

They simply posted their crea ons on the Internet. It began with blogs, moved to podcasts, expanded to social networks, moved on to YouTube videos, and transferred to Twi er. Audience members can download these technological dbits—text, visual, and audio formats—to their laptops as well as to cell phones, Blackberries, iPods, iPads, and every other mobile gadget that hits the market. Eventually, public rela ons companies started ge ng into the act.

96. (Scenario 18‐3) An athle c supply manufacturer is about to launch a new sports sock made of an innova ve fabric that cushions the foot, reduces impact, absorbs moisture, and supports high‐intensity sports. It creates short video spots and posts them on its home page, Facebook page, YouTube, and other sites for viewing and downloading. Since this video is generated by the company, intends to gain posi ve publicity, and hopes for free exposure of a new product, it works in much the same way that the more tradi onal does. a. company newsle er b. sponsored event c. press release d. feature story

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Chap 18_8e 97. (Scenario 18‐3) A high‐tech firm creates special effects and computer‐generated content for Hollywood movies. Its PR people prepare intriguing 60‐second videos about its role in three blockbuster ac on movies released this year and posts them on YouTube. The firm is using a type of ______ aimed at the movie trade as well as consumers. a. advocacy marke ng b. buzz marke ng c. green marke ng d. influencer marke ng 98. An auto marketer runs a commercial that implies how the car is good for the environment but the implicit and vague men on of it is ques onable. Which of the following is the auto marketer using? a. Cause‐related adver sing b. Community marke ng c. Affinity marke ng d. Greenwashing 99. Which of the following objec ves of public rela ons exclusively involves damage control? a. Lobbying b. Giving advice and counsel c. Counterac ng nega ve publicity d. Promo ng a product 100. A leading spor ng goods company calls a press conference to announce that the Na onal Football League has signed a contract to endorse the company's products. By doing this, the spor ng goods company ensures that: a. the na onal media is virtually forced to cover the story. b. its story has more credibility and an air of importance. c. journalists do an exclusive story on the firm. d. its goods become more financially beneficial to the consumer.

101. (Scenario 18‐2) The conflict passes, things se le down, and he goes on to build his business—knowing that a rash of bad publicity could have done him wrong even before he got started. Now, he knows that he is part of an industry with many ques onable players. He is also aware that the chance of being associated with sweatshops, illegal hiring, or other unsavory aspects of business is high. Therefore, he prepares a ______ in order to be in a be er posi on to issue public statements based on current and accurate data. a. reac ve strategy b. press conference c. publicity stunt d. public rela ons audit

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Chap 18_8e 102. In which of the following ways has the Internet helped to change the world of green marke ng? a. It helps companies focus primarily on their bo om‐line. b. It offers ps on crea ng “green sites.” c. It encourages companies to engage in greenwashing prac ces. d. It helps green sites iden fy companies that are taking ac on to protect the environment.

103. Which of the following is an example of corporate adver sing? a. An adver sement showing the logo of Adidas, an athlete ed to a re, and the cap on "Bring it on." b. An adver sement showing the logo of LG, the cell phone model "Chocolate Pla num," and the cap on "Pure Decadence." c. An adver sement showing the brand name of Sony, a PlaySta on 3, and several game characters placed around the device. d. An adver sement showing the various lips cks of a cosme cs company and the cap on "Luscious Lips."

104. Axel Corpora on undergoes a public rela ons audit. Ideally, the ul mate result of this audit should be to: a. replace its reac ve strategy with a proac ve strategy. b. calculate the costs of its public rela ons efforts. c. tell the company whether it needs to hire a public rela ons agency from outside. d. prepare the company for both proac ve and reac ve strategies.

105. (Scenario 18‐3) A medium‐sized, family‐owned organic farm in California packages its fresh produce and distributes it to grocers around the country. It is now rumored to be part of an E. Coli outbreak that is destroying spinach in nearby farms. This is absolutely false, so the family acts fast by clarifying the situa on through Twi er releases, blog responses, and announcements on its home page. This kind of ac vity focuses on problems to be solved rather than opportuni es to be considered, and requires that the company take defensive measures. Which of the following measures would it take? a. Reac ve public rela ons strategy b. Lobbying campaign c. Corporate image marke ng d. Proac ve public rela ons strategy 106. (Scenario 18‐1) One beer producer has sent the press an expensive, a rac ve, eight‐page press release that explains the organiza on’s new educa onal program on the dangers of teenage drinking. However, the beer producer has failed to an cipate that: a. the press release will be more expensive to run than a typical adver sing spot. b. his planning is not adequate for a press release. c. the story may not be effec ve since it was not used as part of a proac ve strategy. d. he has li le control over how and when the final story will run.

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Chap 18_8e 107. (Scenario 18‐5) One way to help firms implement a reac ve public rela ons strategy, and prepare for possible nega ve publicity is to: a. prepare a public rela ons audit. b. promote goodwill. c. prepare internal communica ons. d. increase corporate adver sing efforts.

108. Describe the objec ves and features of influencer marke ng. Define at least three types that are in use today.

109. What has led to the growth and popularity of green marke ng? What cau ons should poten al adver sers take before launching it since a number of corpora ons, manufacturers, and service industries have issued “green” messages?

110. What common goal do corporate image adver sing, advocacy adver sing, and cause‐related adver sing share? Outline the unique features of each of these types of corporate adver sing.

111. There are six main objec ves of public rela ons efforts. List any three and give an example by iden fying a company that sells a product or service that you purchase.

112. How do proac ve and reac ve public rela ons strategies differ? Describe the steps necessary to implement each strategy.

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Chap 18_8e 113. Public rela ons is the one tool that can accomplish a tough and o en unpleasant task of damage control for a company. Explain and give at least two real‐life examples of this process.

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Chap 18_8e Answer Key 1. False 2. False 3. True 4. True 5. True 6. True 7. True 8. True 9. False 10. True 11. True 12. True 13. True 14. True 15. True 16. True 17. True 18. True 19. True 20. True 21. True 22. True 23. True 24. False 25. True 26. True

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Chap 18_8e 27. True 28. False 29. True 30. True 31. True 32. True 33. True 34. True 35. True 36. True 37. a 38. d 39. c 40. d 41. c 42. c 43. a 44. b 45. c 46. c 47. b 48. c 49. b 50. c 51. c 52. a 53. d 54. c Copyright Cengage Learning. Powered by Cognero.

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Chap 18_8e 55. c 56. a 57. b 58. b 59. a 60. a 61. a 62. b 63. d 64. c 65. b 66. d 67. b 68. d 69. b 70. a 71. c 72. b 73. c 74. c 75. b 76. a 77. b 78. d 79. a 80. c 81. a 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 18_8e 83. b 84. d 85. d 86. b 87. d 88. a 89. b 90. b 91. b 92. b 93. b 94. b 95. a 96. c 97. b 98. d 99. c 100. b 101. d 102. d 103. a 104. d 105. a 106. d 107. a

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Chap 18_8e 108. Influencer marke ng refers to a series of personalized techniques directed at individuals or groups who have the credibility and capability to drive posi ve word of mouth to a broader and salient segment of the popula on. In implemen ng an influencer marke ng ini a ve, it is useful to think of it as systema c seeding of conversa ons involving a consumer, an influencer, and your brand. Professional influencer programs u lize professionals in the field as influencers. These programs offer great credibility but they also require careful enlistment in the effort because professionals take their responsibili es very seriously. Several points should be kept in mind. First, a professional’s me is money, so was ng their me is likely to be counterproduc ve. Second, messaging a professional with informa on that offers them intellectual currency as well as important benefits of the brand will enhance their likelihood of par cipa ng. Finally, a successful professional influencer program requires long‐term commitment. Peer‐to‐peer influencer programs do similar work in spreading posi ve word‐of‐ mouth, but rely on ordinary people to talk about products and brands in a posi ve way. They spread the word through their own social groups, either in person or online. Buzz and viral marke ng are both subspecies of peer‐ to‐peer influencer approaches. In buzz marke ng, the idea is to create an event or experience that yields conversa ons about a brand. In viral marke ng, the goal is to have consumers market to other consumers, usually via the Internet, email, blogs, and social network sites, or via tex ng and downloading to mobile devices.

Personal contact also works. In both buzz and viral programs, the idea is to target a handful of carefully chosen extroverts or trend se ers as influencers, and let them spread the word about your brand.

109. Green marke ng refers to any corporate effort that a empts to align itself with a cause or movement in support of the environment. Like any promo on, the resul ng ad campaign can reflect a sincere effort to do some good or a cheap imita on of such sen ment. Green marke ng has reflected a socioeconomic movement that has been on and off in past decades. In the early 1990s, the book Green Marke ng by Jacquelyn O man predicted that going green would be a marke ng revolu on, but it didn’t come to pass, at least not in the United States. Today, it appears that the movement really will take hold and create meaningful ac ons and messages on the part of the na on’s giant corpora ons as well as smaller businesses. Adver sers and consumers should be aware that there are millions of “green claims” out there, but many are exaggerated, absurd, or false. It is easy for a company to incorporate the word “green” in its name, slogan, or packaging when it really doesn’t mean anything. Adver sers should also be aware that environmental issues are broad and complex. Even the best inten ons of a socially conscious business may fall short. The text advises firms to follow one law when launching a green marke ng campaign—under promise and over deliver.

110. The goal of all corporate adver sing is to establish a favorable a tude toward a company as a whole. Corporate image adver sing focuses on enhancing the overall image of a firm among important cons tuents—usually customers, employees, and the general public. It can range from a general favorable image to a specific image.

Advocacy adver sing a empts to establish an organiza on's posi on on important social, poli cal, or environmental issues. Of course, a firm has a purpose in running such advocacy ads. Typically, the issue chosen is directly relevant to the business opera ons of the organiza on. Cause‐related adver sing affiliates a firm with worthwhile social causes—reducing poverty, increasing literacy, curbing drug abuse, figh ng disease. The idea behind cause‐related marke ng is that a firm launches an effort or funds a campaign that makes a posi ve difference in society. It may also donate money to a nonprofit organiza on in exchange for associa ng its company name with the work of that group. The purpose of cause‐related marke ng is to enhance the image of the firm in the minds of consumers by associa ng the firm with a worthy cause.

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Chap 18_8e 111. Companies may have the following objec ves as their goals for public rela ons efforts: 1. Promo ng goodwill. This is an image‐building func on of public rela ons. Industry events or community ac vi es that reflect favorably on a firm are highlighted.

2. Promo ng a product or service. Press releases or events that increase public awareness of a firm's brands can be pursued through public rela ons.

3. Preparing internal communica ons. Dissemina ng informa on and correc ng misinforma on within a firm can reduce the impact of rumors and increase employee morale.

4. Counterac ng nega ve publicity. The a empt here is not to cover up nega ve events, but rather to prevent the nega ve publicity from damaging the image of a firm and its brands.

5. Lobbying. The public rela ons func on can assist a firm in dealing with government officials and pending legisla on.

6. Giving advice and counsel. The public rela ons effort can assist management in determining what posi on to take on public issues, prepare employees for public appearances, and help management an cipate public reac ons.

Student examples will vary.

112. A proac ve public rela ons strategy is guided by marke ng objec ves, seeks to publicize a company and its brands, and is offensive rather than defensive in spirit. It starts with a public rela ons audit, which iden fies the characteris cs and ac vi es of a firm that are posi ve and newsworthy. The next step is to take informa on from the audit and turn it into a public rela ons plan. The plan iden fies the objec ves and ac vi es related to the public rela ons communica ons issued by the firm. The components of a public rela ons plan include a current situa on analysis, program objec ves, program ra onale, communica ons vehicles, and message content.

A reac ve public rela ons strategy is guided by events outside the control of a company, focuses on problems to be solved rather than on opportuni es, and requires defensive rather than offensive measures. Since the events that trigger a reac ve public rela ons strategy are unpredictable and uncontrollable, it is much more difficult to implement a reac ve than a proac ve strategy. Part of the prepara on for a reac ve strategy occurs during the public rela ons audit prepared for the proac ve strategy. The informa on provided by the audit gives a firm what it needs in a me of crisis so it can issue public statements based on current and accurate data. A second step in preparing a reac ve strategy is the iden fica on of vulnerabili es, that is, the areas of poten al weakness in products or opera ons that might create a nega ve situa on.

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Chap 18_8e 113. Damage control is the task that only public rela ons can handle. Even the most careful, ethical, and organized companies will probably have to face nega ve publicity at some point—a product defect, a recall, a hazard, an accident, a public health issue, an employee scandal, etc. Issues can arise from internal problems that have been neglected or left unsolved, or from external forces that have risen and are completely out of the company’s control. This is where damage control comes in.

Public rela ons departments or directors can do several things to calm nerves and cool tempers. They need to focus on the company’s reputa on and the preserva on of the brand. But first, they need to give honest informa on, speak directly to the public, apologize, spell out the problem, their plan to solve it, and offer something to the public or the customers to make‐up for the mistake. There are things that they should not do, such as hide from the media, refuse to speak to the public, or insist they are right or innocent. One of the first things they normally do is to contact the media and hold a press conference so they can address the issue, answer ques ons, and show that they are handling the situa on. Press releases o en come shortly a erwards, and even new ad messages may be created. Most importantly, PR personnel should be prepared in advance with accurate data and clear informa on at hand, even before “bad news” hits.

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