Home Depot is a powerful retailer with a high-volume, low-price position. Therefore,
Home Depot can exert pressure on manufacturers and suppliers to offer its staff various
forms of trade-market promotions. These come in four major types:
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.
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 $20.00. Voice-It’s products are about the
size of four credit cards stacked on one another and have a useful life of about one year.
The slogan this firm uses on its packaging and advertising is “Don’t Write It, Voice-It!”
A consumer who purchased the product from Voice-It was heard to say, “It’s better than
having pieces of paper all over. I thought the price was good too.” These statements
reflect the consumer’s
a. evaluative criteria.
b. need state.
c. external information.
d. brand attitude.
Scenario 17-1
If you walk into a Cracker Barrel Old Country Store, you’ll see many items once found
in general stores, like porcelain signs, ceramic jugs, tin boxes”and Coca-Cola trays and
plaques. And since 2004, Coca-Cola Co. has maintained a larger display of unique
Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland
Hotel. Visitors will find a number of rare holiday paintings, prints, and calendars
featuring the familiar Santa Claus figure and a bottle of Coke. In 1931, the company
had commissioned professional illustrator Haddon Sundblom to create illustrations for
its advertising, resulting in the warm and jolly image of Santa that has endured in
American culture ever since. The soft drink has been served in Cracker Barrel stores for
40 years, so this is a natural connection for both brands. In fact, for its 40th anniversary
in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing
logos of both brands.(http://www.crackerbarrel.com/about-decor.cfm?doc_id=51.
Accessed January 17, 2011.)(original press release by Jim Taylor, “Rare Coca-Cola®
Holiday Artwork on Display at Cracker Barrel Old Country Store®,”
http://www.crackerbarrel.com/mediaroom-newsreleases, November 15, 2004.)The
marketers of Coca Cola collectibles offer their best customers a program in which they
are allowed to preview and purchase limited-edition items one month before the general
public is informed of the sale. This assures key customers that they won’t miss out on a
valued collectible due to unusually high demand. This is an example of
a. an effective use of external lists.
b. a CPO program.
c. a frequency-marketing program.
d. marcom management.
Scenario 1-6
Gillette M3Power-a MACH3 razor innovation-is a groundbreaking, powered wet
shaving system for men that delivers a totally new shaving experience resulting in
Gillette’s best shave ever. M3Power builds on the heritage of MACH3 and combines
Gillette’s latest and best razor and blade technologies. M3Power outperforms all other
blades and razors in closeness, comfort and safety during and after the shave. Gillette
M3Power features other innovations beyond power: new blades featuring PowerGlide
¢-an enhanced blade coating for incredible glide and maximum comfort, a moisturizing
Indicator® Lubrastrip¢ and a technologically-advanced handle (www.Gillette.com).
Recently, Gillette Co. direct-mailed users of competing male products, throughout the
United States, a free MACH3Power razor with blades and a coupon offer. In addition, a
series of coordinated advertisements to male consumers were developed to increase
awareness of this product. Gillette said that its goal was to have a market awareness rate
of 70 percent within four months.
Gillette advertises to consumers, retailers, and even wholesalers with the slogan “The
Best a Man Can Get” to encourage more distribution of its products. It also has personal
salespeople meeting with retailers and wholesalers on a regular basis. Gillette offers
promotional items in stores for consumers and is known to sponsor events like
NASCAR races. This emphasis on the brand and not just communication is known as
a. integrated brand promotion.
b. selective demand stimulation.
c. primary demand stimulation.
d. advertising.
Scenario 1-3
In 2006, gaming giant 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, dominated hardware sales
in the gaming industry as any true competition for the product was yet to be introduced.
However, this changed in late 2010 as 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 it is more precise and flaunting 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 has yet to be seen. To dethrone the Wii,
Sony will need to find a way to appeal to those that have not yet bought into
“motion-gaming.” And of course, it wouldn’t hurt if Sony somehow found a way to
entice Nintendo followers to switch over to its newest addition to the gaming industry.
Through various studies, Sony discovers that 40 percent of U.S. households do not own
a Nintendo Wii, so it purchases advertising to directly target those households. The 40
percent to which the advertising is aimed is best described as the
a. potential client.
b. target audience.
c. receiver.
d. client.
An ad layout typically progresses through several standard stages during its
development. In what order does this occur?
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
During the 1970s, sales promotion expenditures by marketers of consumer goods were
about ____ percent of their budgets, while today they are about ____ percent.
a. 10; 40
b. 30; 75
c. 50; 35
d. 70; 45
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.
(Iko Han, “Gap’s New Logo Proves the Company Knows How to Listen.” Cornerline
News, October 13, 2010.)Facebook played a large role in Gap reversing its decision to
change the company logo. Thousands of users created status updates expressing their
distaste for the new logo, and company executives could not overlook the consensus
feelings. In this instance, Gap apparently had a strong
a. need state.
b. brand community.
c. set of beliefs.
d. reaction to advertising clutter.
Which system has identified 62 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
A detailed version of Internet research called _____ involves both gathering Web data
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
MidSouth Media Company (MMC) is a media placement firm serving small- and
mid-sized firms in several Midwest and Southern states. It specializes in working with
new businesses, many of which have owners and managers with little advertising media
experience. MMC asks all new clients to complete a brief survey to better determine
their exposure needs and their level of knowledge about media decisions. Some
questions from the latest MMC survey are included below. Please complete the missing
part of each item, based on your study of the chapter.
“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
Scenario 15-4
General Mills brand breakfast cereals face strong competition in the dry cereal category
from brands like Kellogg’s and Quaker Oats. Still, 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.
General Mills’ salespeople handle or 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
The account planner at an Indianapolis ad agency has done a survey and found that a
significant percentage of people already recognize the name of the cold remedy his firm
is about to advertise. When consumers know that a brand exists and recall its name to
some degree, they are demonstrating
a. brand loyalty.
b. brand switching.
c. brand awareness.
d. top-of-the-mind awareness.
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 hopes the new slogan can once again instill confidence into a number of
consumers who grew weary of the brand after a number of massive recalls in recent
years. 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 will be featured in all of the company’s
future advertisements.(Andy Borowitz, “Toyota Unveils New Slogan: €Drive a Toyota.
You’ll Never Stop’.” The Huffington Post, February 6, 2010.)
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. continuity
d. balanced
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 an example of ____ segmentation.
a. psychographic
b. behavioral
c. geographic
d. geodemographic
Headquartered in Boston, The Gillette Company is the 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,
nearly 40 million women now use Venus products.
(http://www.gillettevenus.com/en_US/products/index.jsp)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.
Today’s advertising process can make use of its speed, widespread reach, and ability to
describe benefits. This promotes the diffusion of innovations, meaning that products are
a. delivered quickly to a large portion of the marketplace.
b. priced affordably for the average consumer.
c. designed to meet a number of basic human needs.
d. produced to imitate the goods of competitors rather than offer creative new options.
A deep forest green makes up the background color of a magazine ad dominated by a
photo of a lush forest. The green color runs to the edge of the page and replaces the
standard white border for most ads. This is a
a. bleed page.
b. run-of-press ad.
c. gatefold ad.
d. double-page spread.
You are the creative director at a Milwaukee ad agency. Today, your copywriters are
presenting you with their ideas for several 30-second radio spots for the City of
Milwaukee Tourism Bureau, which wants to feature its own information center and
tours, as well as city museums, art galleries, concerts, festivals, and special events.
When they are ready, the best ideas will be taken to the marketing director at 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 ratings point indicates that 100 television households in a given area were tuned to
the program being measured.
Even those who view advertising positively for other reasons often admit that it rarely
contributes to art and culture, and art and culture have little room for advertising.
Sales promotion is the use of incentive techniques that create a perception of greater
brand value among consumers, the trade, and business buyers.
Materials used in the retail setting to attract shoppers’ attention to a product, convey
primary product benefits, or highlight pricing information, are referred to as
point-of-purchase advertising.
When Tylenol’s competitor, Excedrin, touted its benefit as providing pure headache
relief unlike Tylenol’s flu and cold symptom relief, Excedrin implemented user
positioning.
Pop-up ads have never been popular, but they seem to be more irritating than ever, with
80 percent of respondents in a recent survey saying they were annoying.
In essence, what an agency reasonably expects from a client involves autonomy, total
creative control, and an open-ended approach to the time and resources to be allocated.