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. broadened the FTC’s power to practices that were unfair to competitors alone.
Scenario 10-3
Advertisers have a wide choice of objectives and methods when creating an ad for a
product, no matter what the product category is. For example, both Taylor and Yamaha
sell guitars. Both have created ads that have been recognized by the advertising industry
as outstanding creative efforts. However, they have chosen different ways to use
magazine advertising to sell guitars.
A representative advertisement for Taylor features a photograph of a beautiful, lush,
fog-shrouded green 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 time and attention that Taylor takes in making
quality guitars. Only the top couple inches of a guitar featuring the Taylor logo is
shown. While the ad could be classified as exemplifying a number of approaches to
meeting message objectives, it most closely fits the description of the USP method by
linking a key attribute (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.” This ad also features characteristics of several approaches to meeting
message objectives. However, the headline seems to define it as using the humor
method to persuade consumers to prefer the brand.
The Taylor ad focuses on the time it takes to produce a quality guitar. Based on the
functions and strengths of USP, the ad would nothave been as effective if the:
a. visual was less eye-appealing.
b. copy attempted to address four or five desirable attributes.
c. visual was a drawing rather than a photograph.
d. copy focused on a different attribute, such as sound.
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)
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.
There is one big difference between a successful and an unsuccessful humor adthe joke
or payoff in the successful one:
a. is funnier.
b. can be run more often.
c. is linked to the product.
d. puts down the competition.
One important tactical tool is the press release. A firm can best take advantage of press
coverage by:
a. conducting industry events or community activities that reflect favorably on the firm.
b. disseminating information and correcting misinformation within the firm.
c. preparing employees for public appearances.
d. having a file of information that makes for good news stories.
Scenario 8-2
Following the announcement that the world’s largest e-tailer, Amazon.com, made a
profit for the first time 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
questionable whether or not Amazon figured out a profitable business model after
changing its tune several times 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 satisfy Wall Street.
Although investors had to wait some time for the e-tailer to work out the kinks, and it’s
uncertain how much longer they’ll remain patient, 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 additional cost.
Some years ago, it reported turning over its inventory 17 times a yearclose to double
that of traditional retailers at the time. And on average, it reported having gotten paid 32
days before it must pay its suppliersin essence, providing millions of dollars in cash
flow.
Information updated for 2011, based on the following initial articles:
(David Shook, “Can Amazon Turn Baby Steps Into Strides?,” Businessweek
Online,February 13, 2002.)
(Rob Hof, “Why Amazon Could Keep Flowing,” Businessweek Online,January 5,
2005.)
Amazon.com began by facing a myriad of problems since its inception, with perhaps
the biggest obstacle being the demise of hundreds of dot-com companies in the late
1990s and early 2000. Those dot-com companies that did survive initially had a difficult
time making a profit, and over time a few began to face new competition. The issue as
to who will supply online consumers has been continually evolving and changing since
then. This type of information would most likely be noted in the ____ section of an ad
plan.
a. historical context
b. purchase intent
c. market analysis
d. budgeting
Which of the following is an example of interactive media?
a. Banners
b. Electronic directories
c. Catalogs
d. CD-ROMs
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.
Direct marketing is interactive because the advertiser is attempting to develop an
ongoing dialogue with customers.
a. True
b. False
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 about 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 of the teams. 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.
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 all too rarely useful to measure actual behavior.
c. the identification of competitors may have been inaccurate.
d. theater audiences are not considered scientifically reliable.
Direct marketing can provide consumers access to a range of products and services
right in their own homes, which many customers consider to be a valuable trait
nowadays.
a. True
b. False
There are two elements to the execution of an advertising plan: determining the copy
strategy and devising a media plan.
a. True
b. False
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.
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
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
According to Gardner, creative people have much less interest in playing by the rules,
acting nice, and being socially acceptable than more ordinary people.
a. True
b. False
Which of the following is true of public relations?
a. It is a tool to produce more sustainable and environment-friendly products.
b. It is a tool to manage goodwill, corporate communications, and damage caused by
negative publicity.
c. It is a process of changing the features of a product to suit customer needs.
d. It is a process of transporting products to the location where consumers can buy
them.
Integrated brand promotion (IBP) can be defined as:
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.
TetraCom, a personal computer manufacturer, launched an advertisement comparing its
computer with a competitor’s computers. However it was found to be an unfair claim. In
order to justify its fairness, TetraCom would be required to include a(n)____ .
a. testimonial
b. stealth sponsorship
c. consent order
d. disclaimer
What does the objectives section of an advertising plan do?
a. Defines those who use the product
b. Notes possible barriers and problems
c. Estimates probable costs
d. Identifies concrete goals
Scenario 12-6
Taylor, Frenz, 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.
“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.”
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
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.
A surfboard manufacturer decides to promote the sales of his product by offering
discounts on the Internet 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. acquires the consumers’ email information and optin contact.
In television advertising, the visual is important only if it is the main feature, and not if
it plays a supportive role.
a. True
b. False
A ratings point indicates that 100 television households in a given area were tuned to
the program being measured.
a. True
b. False
____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
Advertisers focusing on integrating more tools into promotional efforts has resulted in
an enhanced role of traditional media.
a. True
b. False
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.
When researchers study consumer behavior, they study a process that begins with
product evaluation and ends with the perception of a need.
a. True
b. False
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
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.
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
The concept of message strategy refers to both objectives and methodswhat you want to
do, and how you want to plan it.
a. True
b. False