Which of the following is an example of Madison & Vine?
a. A race car featuring advertisements for several brands.
b. A children’s movie featuring a new brand of candies.
c. A t-shirt featuring a sports person.
d. An actor endorsing an anti-aging lotion.
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. Customers should be offered something they value.
The stereotypes about business and advertising people serve to remind us that:
a. people approach problem solving with different styles.
b. advertising experts rely on their left brain.
c. business types use both sides of their brain.
d. people prefer to think about things in a conventional style.
Scenario 13-3
You are a media planner at a large advertising agency in Chicago. You are currently
assigned five accountsa used car dealer in the northern suburbs of the city, a
guitar/drum retailer on the south side of the city, a nationally distributed orange juice
retailer, a quick grits hot breakfast cereal sold nationwide but with the strongest sales in
large Southern cities, and a ski equipment manufacturer. Each account has requested
some type of information from you regarding next year’s media buy.
The guitar retailer has never advertised much. The owner now wants a highly creative,
cutting- edge 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.
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.
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.
Scenario1-4
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. Additionally, Target 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 storefor 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.
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.
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
Scenario2-2
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.
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
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.
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.
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.
Who prepares the creative brief?
a. The client lead and the account executive
b. The owner(s) of the agency
c. The client brand manager and the head of the creative department
d. The research executive assigned to the campaign
Scenario1-1
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 since the company’s inception. “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 has also
removed all advertisements carrying the word “apparel,” and will begin 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 from powerhouses Nike and Adidas, and will help increase its
current 1.1 percent market share.
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 that 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
as advertising.
b. is paid for and is an attempt to persuade; however, it is only distributed locally and
therefore, cannot be considered as advertising.
c. is not received by a large enough number of people to be considered as advertising.
d. is not a part of an advertising campaign and thus, cannot be considered as
advertising.
Corporate advertising is gaining favor worldwide as well-known firms and established
companies invest in this form of promotion.
a. True
b. False
Cross-selling involves marketing:
a. additional products to current customers.
b. the same product across different consumers.
c. products to different members of the same household.
d. only to one geo-demographic segment.
Compared to achieving a brand recall objective, achieving a persuasion objective
typically requires less cognitive processing on the part of the consumer.
a. True
b. False
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
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
Retailers often run trade promotions simultaneously along with consumer promotions.
a. True
b. False
The CEO of a small but growing sports equipment firm has just announced that sales
went up significantly last year. The marketing director is happy because her budget will
go up also. This indicates that the firm is using the ____ to set the advertising budget.
a. objective-and-sales approach
b. share-of-market approach
c. percentage-of-sales approach
d. advertising response function
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 executive.
b. keep them out of any conflicts that arise.
c. give them some structure.
d. just agree with them.
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
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.
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.
What are the three fundamental options that advertisers have when choosing a
positioning theme?
a. demographic, psychographic, or geographic
b. benefit, user, or competitive
c. STP, VALS, or SIC
d. functional, emotional, or psychological
Promoting a product or service using press releases or events is a public relations tactic
to increase public awareness of a brand.
a. True
b. False
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.
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.
One big plus from a product position that stays consistent over time, like State Farm’s
“Good Neighbor” 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.
The creative boutique’s greatest advantage is its niche expertise.
a. True
b. False
The forgetting function is based on a well-known concept and compelling 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.
An agency’s crucial role is to translate the current market and marketing status of a firm
and its advertising objectives into advertising strategy and, ultimately, finished
advertisements and IBP materials.
a. True
b. False
In social media, the brand”consumer relationship is characterized by two nodesmarketer
to consumer.
a. True
b. False
Which individuals did Howard Gardner highlight in his book, CreatingMinds, in his
pursuit of the most creative people of the past century?
a. Edison, Einstein, Twain, Roosevelt, Gandhi, Disney, and Vonnegut
b. Picasso, Bernstein, Van Gogh, Nureyev, Frost, Hemingway, and Einstein
c. Eliot, Bradbury, Ellington, Graham, Churchill, Wright, and Edison
d. Freud, Einstein, Picasso, Stravinsky, Eliot, Graham, and Gandhi
A(n) ____ coordinates the research effort of an advertisement agency.
a. graphic designer
b. media specialist
c. account planner
d. fulfillment center
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. 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.