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 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, 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 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.Because Groupon does not do an extensive amount
of advertising, it decides to look outside the company for help in guiding its efforts. The
company called upon to aid Groupon would be referred to as a(n)
a. client.
b. market research firm.
c. advertiser.
d. external facilitator.
Two big advantages of direct mail as a communication medium stems from its
a. cost and response rate.
b. selectivity and flexibility.
c. mailing lists and consumer data.
d. timing and delivery.
When considering what is truly wanted from advertising research, the answer depends
on whom you ask. If so, which of the following can be generally accepted as true?
a. The ad agency wants numbers.
b. The account team wants to know if the ad works.
c. The client wants awards for creativity.
d. The creatives want account planning.
(Scenario 16-2) One drawback for advertisers when subcontracting out to creative
teams or external sources like HollywoodBranding is that
a. they often duplicate the tactics 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.
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
In late 2010, renowned actress Rachel Leigh Cook spoke out against the entertainment
industry and the way it portrays celebrities in advertising. Cook, who starred in the
popular 90s hit She’s All That, claimed that the airbrushing of celebrities that often takes
place before an advertisement is published is a clear case of false advertising. Cook told
FoxNews.com, “It breaks my heart to be part of an industry and part of a machine that
really pushes out these images and propagates these really terrible standards that are
false.” Cook went so far in her criticism to question how falsely editorializing is not
considered a crime, and stating that so many young women struggle with identity issues
in today’s society because they are striving to be something that does not exist.(John
Dorian, “Rachel Leigh Cook Against Air Brushing, Calls it False Advertising.”
International Business Times, October 25, 2010.)There are three primary groups
involved in the regulation of advertising. They are
a. parents, children and schools.
b. businesses, the government and athletes.
c. educators, athletes and parents.
d. consumers, industry organizations and governmental bodies.
As arguably the most branded entertainment in the Western Hemisphere, NASCAR is a
massive celebration of brands. It currently attracts about ____ sponsors just from the
cars alone, based on companies that cover them with their logos.
a. 800
b. 500
c. 300
d. 100
Students from several organizations on campus sponsored a forum to debate the pros
and cons of advertising. Student organizations representing consumers, journalists,
marketers, entrepreneurs, and political scientists all had members in attendance.
Following are some of the comments made at the forum.A student said, “Hey, like
everybody, I don’t like being interrupted by TV commercials, radio spots, or pages and
pages of ads in magazines. But all that advertising gives us a whole world of
information, news, and entertainment in so many formats. Without it, we’d be paying
for TV shows and radio programs, and way more for newspapers and magazines.” On
which of the following “pros” of advertising is this comment most likely based?
a. Advertising lowers the cost of products.
b. Advertising is a democratic art.
c. Advertising reflects society’s priorities.
d. Advertising fosters a diverse and affordable mass media.
What is the term for the effort to create a perceived distinction between an
organization’s brand and the competition’s brand?
a. internal positioning
b. external positioning
c. market segmentation
d. differentiation
Scenario 15-6
You are a media planner at an advertising agency in Dallas. Since it is Friday, you take
a long lunch with a sales associate at the Dallas Morning News followed by a walk
through a nearby park, returning to the office around 2:30 p.m. When you get to your
desk, you find a number of new emails from account execs waiting for you, all with
subject lines suggesting pressing client issues. You need to answer them before the
weekend hits.
Another email comes from a client asking for clarification on something. She owns a
hair salon downtown, and you have occasionally placed newspaper ads for her. One of
her regular customers works in marketing and casually mentioned that she should
advertise in “out-of-home” media. She never got to ask her exactly what that is. You
email a brief definition, adding a note that
a. it generally targets local audiences.
b. this is not a type of support media but a primary means of advertising.
c. it involves either billboard, transit, or packaging formats.
d. it is a low-key, low-tech way to advertise.
(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 that figure is precisely what was reported in a 2009 study conducted by
MerchantCircle, a social network for small businesses. Once 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 inexpensive way to reach targeted consumers. Rather than pouring large
sums of money into traditional marketing, business owners are starting to find more
creative ways of promoting 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.)
Two young women decided to open a new comedy club and chose YouTube as the main
outlet for their advertising. The two put together a five minute clip of an improvisation
routine they had written and posted it on the site-soon after, the two noticed that the
total number of views for the video had skyrocketed to 25,000. It turns out the video
was being sent all over the country via email and Facebook messages. This short video
apparently became a form of
a. mobile marketing.
b. online retailing.
c. interactive advertising.
d. viral marketing.
Compared to past decades, television is doing a better job at reaching people through
____, that is, the development and delivery of specialized programming for a particular
audience.
a. display advertising
b. narrowcasting
c. spot advertising
d. syndicating
The Xcellent Agency specializes in developing advertising campaigns for smaller retail
clients. Xcellent was 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 marketing director, Manuel Margolis, was adamant when
meeting with the Xcellent account executive, Kia Chin, that the campaign must be
catchy and modern to appeal to a target audience that has an active lifestyle and is
between the ages of 18 and 35. More importantly, Margolis wanted the slogan to be
memorable and unique.Kia Chin, representing Xcellent, developed a campaign and
presented it to Margolis, based on the slogan, “Do What You Do in a Shadowleaf Shoe.”
Visuals included men’s legs-different sizes, skin colors, etc.-walking, jogging, dancing,
and otherwise moving in all types of Shadowleaf shoes. She felt that this campaign
would target young male consumers, but would also get the attention of others
regarding its comfortable shoes and would raise awareness of the Shadowleaf brand.
After running the ads, the Xcellent Agency won an advertising effectiveness award. It
seemed that the surprising and appealing visuals gave the slogan unexpectedly positive
social meaning for people of all ages, not just men aged 18 to 35.
Which individual at the Xcellent agency will be responsible for maintaining a good
relationship with Margolis and the Shadowleaf organization?
a. the research manager
b. the creative director
c. the media planner
d. the account executive
The development of a marketing database can lead to interdepartmental conflict within
a company. What are the most common sources of such conflict?
a. whether databases are helpful, and whether or not to even establish one
b. what privacy issues might arise, and how they might be addressed
c. how the information will be collected, and how the listings will be contacted
d. who will have direct access to the database, and whose budget will get cut to create it
The advertising aimed at government officials and bureaucrats who have big budgets to
spend usually centers around
a. local and regional television commercials.
b. pitches in national magazines and city trade journals.
c. direct mail, catalogs, and Web ads.
d. public relations promotions.
Which type of Internet advertising is now the most prominent?
a. sponsorship
b. email messaging
c. display/banner
d. paid search
For an item to be defined as an advertising specialty, it must
a. be rewarded 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.
A large computer hardware manufacturer has decided to advertise in several
well-known digital technology magazines beginning next year. Each magazine has a
different ____ in September or October, that is, the date when production-ready ads
must be delivered to the publisher.
a. circulation date
b. closing date
c. on-sale date
d. cover date
(Scenario 18-3) 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. And it just keeps going. Audience
members can download these technological tidbits-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 relations companies started
getting into the act.
An athletic supply manufacturer is about to launch a new sports sock made of an
innovative fabric that cushions the foot, reduces impact, absorbs moisture, and supports
high-intensity sports like no other. It creates short video spots and posts them on its
home page, Facebook page, YouTube, and other sites for viewing and downloading.
Since this tactic is generated by the company, intends to gain positive publicity, and
hopes for free exposure of a new product, it works in much the same way that the more
traditional ____ does.
a. company newsletter
b. sponsored event
c. press release
d. feature story
How is CBS, one of the three original television networks, dealing with ongoing
changes in media and advertising?
a. by slashing expenditures, downsizing staff, and running a smaller company
b. by campaigning hard about the innovation, reach, and cost-effectiveness of its
network broadcasting
c. by developing interactive media sites to get ad revenue from as many sources as
possible
d. by cutting rates for commercial time and attracting many new advertisers
Though some sites have been successful with this, attempts at requiring registration
have been largely rejected by consumers due to privacy concerns.
Briefly trace the reasons for the rise of research-specifically, advertising and brand
promotion research-after WWII. 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? You do not have to
provide a lot of detail, just a brief sketch of these issues.
An agency decides to use a well-known radio announcer to avoid having to write a
tightly scripted ad. The best choice would be the most loosely structured option for a
radio commercial, one that allows an announcer to ad-lib, called a live script radio ad.
Direct mail is probably the direct marketer’s most invasive tool and as such must be
used with discretion so as not to alienate customers.
A slice-of-life advertisement attempts to identify a cultural or social setting and have it
rub off on a brand.