Scenario2-5
In 2008, Chicago native Andrew Mason launched Groupon, a website that offered
Chicago consumers various “deals of the day.” At the time, Groupon had a unique
business modeleach 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, only two years later, the business continues to grow, and the service is being
offered in several more U.S. cities. Google made a multi-billion dollar offer for the
company that Mason turned down in the December of 2010. Continuing the company’s
rapid rise to success will be a challenging task for CEO Andrew Mason and his
team because they 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.
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
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.
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
What is the first step in STP marketing?
a. market segmentation
b. position strategy
c. benefit positioning
d. target marketing
The Starch readership test measures readers of print materials who either noted the ad,
associated the ad, or read most of the ad, then calculates these results into scores.
a. True
b. False
Research on the topic of using sex in the ad business generally confirms that sex-appeal
ads can be effective when:
a. more focus groups and communication tests are ordered.
b. the ad produces enough “heat.”
c. they emphasize how one looks, feels, and smells.
d. the context is appropriate.
Creativity in ads is required in order to break through ad clutter.
a. True
b. False
Which of the following is the main factor that has contributed to the popularity of direct
marketing with consumers?
a. Convenience
b. Privacy
c. Technology
d. Quality
Cloud9, a social networking site, has generated a large amount of revenue from selling
information regarding its users preferences of soft drinks to a soft drink manufacturing
and advertising firm. This is an example of______ .
a. crowdsourcing
b. appropriation
c. phishing
d. behavioral targeting
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.
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
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
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
Which of the four primary consumer protection organizations was the first to be
established, and is best known for its publication of Consumer Reports?
a. Consumer Federation of America
b. Consumers Union
c. Consumer Alert
d. Commercial Alert
An objective of consumer-market sales promotion is to:
a. stimulate the inelasticity of demand of a product.
b. lower the economies of scale.
c. encourage smaller purchases.
d. stimulate trial purchases.
Advertising is only one area of the marketing mix, and it represents only one of the
many different integrated brand promotion tools used in the marketing mix.
a. True
b. False
Which of the following is true of the media environment today?
a. It is settled into a predictable structure.
b. Traditional media no longer commands the majority of ad dollars.
c. Digital media must synergize with traditional media to work effectively.
d. Traditional media companies must avoid getting into new media.
Scenario 10-6
Facing stiff competition from Walmart and K-mart, executives for Target stores have
decided to focus on reaching more affluent shoppers and luring them away from
traditional 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 advertising campaigns
that are presently in the planning stages. Most of the advertising budget will be directed
to ads in regional luxury magazines, which, research shows, are frequently read by
affluent individuals.
Another magazine ad designed for Target’s new campaign shows a well-dressed shopper
pushing her loaded Target cart to her Jaguar, showing satisfaction in the parking lot as
she spots another consumer loading Target shopping bags into her Jaguar. Which
objective is this ad hoping to achieve?
a. To instill brand preference
b. To change the actual experience through ad visuals
c. To situate the brand socially
d. To change behavior by inducing anxiety
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.
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.
It is critically important for an advertiser and agency to align around evaluation criteria
upfront.
a. True
b. False
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.
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 countrywestern 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.
Scenario5-5
Jerome was preparing to host a graduation party for his friends and relatives when he
suddenly realized that he did not have a blender to mix the beverages that he knew his
guests would like. Having never purchased a blender before, Jerome 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, Jerome settled on a
Kitchen-Aid model that cost $100.
Jerome asked his friends for suggestions on which brand of blender he should purchase.
This is an example of:
a. need recognition.
b. postpurchase use.
c. top of mind awareness.
d. information search.
Infomercials were made possible by:
a. the advent of video cameras in mobile marketing.
b. increasingly gullible consumers.
c. less expensive ad space on satellite and cable systems.
d. relaxed network standards for television programs.
Scenario 8-5
Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo
into the market in several months. In test marketing, many consumers liked the product
but their comments indicated that it is different enough from existing brands that
significant promotion and information will be needed to convince them to switch from
their current brands. Helene Curtis has always used an objective-and-task approach to
develop advertising budgets. Due to these research results, the firm must now do a
detailed build-up analysis.
The build-up analysis will also address costs not listed elsewhere, particularly those
associated with advertising to the trade and doing specialized research. Which factor
does this involve?
a. Ancillary costs
b. Production costs
c. Media expenditures
d. Promotional costs
An ad for concentrated frozen orange juice highlights the product using a combination
of backlighting and low-angle shots to show the golden liquid being poured into the
sparkling tumbler. Which of the following is depicted in this illustration?
a. The product set in a test situation
b. The brand seen in a social context
c. The brand portrayed as a hero
d. The product used by a typical consumer
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 never change.
a. True
b. False
Creativity:
a. enriches personal lives and creates emotional stability.
b. enables forming conventional decisions in life.
c. makes social life or hobbies significant factors.
d. reflects early childhood experiences and cognitive styles.
When an ad agency is asked to recommend a budget to the client, it is usually the
account executive who handles this.
a. True
b. False
The positioning model from Anne Bahr constitutes the overlapping of the proposition
for the brand and persuasion tools.
a. True
b. False
Scenario 18-3
For some years now, enterprising individuals have gotten 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 creations on the
Internet. It began with blogs, moved to podcasts, expanded to social networks, moved
on to YouTube videos, and transferred to Twitter. Audience members can download
these technological tidbitstext, visual, and audio formatsto their laptops as well as to
cell phones, Blackberries, iPods, iPads, and every other mobile gadget that hits the
market. Eventually, public relations companies started getting into the act.
A garment manufacturer emphasizes on designing clothes using sustainable practices.
Recently, it launched a Facebook page to gather signatures of people in favor of
planting three trees when one is felled. This is a form of _____.
a. corporate image advertising.
b. advocacy advertising.
c. buzz marketing.
d. influencer marketing.
Scenario43
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
wellknown 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 RodThe 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.
The slogan for the spot, “Lightning RodThe 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.
When marketers are considering cause-related advertising, it should be stressed that this
type of advertising 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 exciting new product.
Members of trade channels include:
a. not-for-profit businesses.
b. retailers.
c. household consumers.
d. government officials.
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.
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.
Last week, you met with your copywriters and reminded them of the various options
they had 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
A real-life nurse discussing the benefits of a home blood-pressure kit and a real-life
librarian promoting the
advantages of a children’s reading program are both:
a. acting as expert spokespeople. b. lending celebrity credibility.
c. providing real-life demonstrations.
d. delivering average-user testimonials.