What applications of the Internet are most frequently used by American consumers
today?
a. using email and accessing news or information
b. viewing videos and taking part in social networking
c. making online purchases and accessing email
d. paying bills and doing online comparison shopping
Scenario 17-3
As the number of firms utilizing direct marketing continues to grow, so too does the
number of consumers opposed to the methods often described as “intrusive.” To combat
the growing number of opposed consumers, marketers need to find creative new ways
to optimize their direct marketing campaigns. One outlet firms are beginning to
experiment with is social media. Executives understand that many consumers view a
company’s Facebook page more often than the company’s home page, so they’ve grown
to realize that setting up some form of an email opt-in on social media sites is a great
way to build marketing databases. In addition to opt-in sections, social media allows
businesses to interact with consumers, which may make them less inclined to respond
negatively to a company’s direct marketing efforts. By utilizing social media more often
in the future, a number U.S. companies hope to build stronger and more useful
marketing databases.
What effect has the Internet had on the privacy concern regarding direct marketing?
a. It has caused consumers to feel safer because they know marketers are acting
responsibly.
b. It has amplified privacy concerns because it makes it easier for all kinds of people
and organizations to get access to personal information.
c. It has had no effect on consumer’s feelings towards direct marketing.
d. It has greatly reduced the direct marketing efforts of companies across the world.
____ are the starting points for Internet exploring and searching.
a. Websites
b. Portals
c. Email addresses
d. Home pages
Researchers are trying to determine which advertisements are the most effective for a
cereal company that is running a number of commercial spots. After participating,
viewers are asked if they saw a cereal commercial during a show; some require further
prompting so are asked if they saw a Raisin Bran ad. These respondents would be
documented as showing
a. aided recall.
b. unaided recall.
c. claim-recall.
d. related-recall.
A person’s standing in a society is often based on social stratification, which reflects the
systematic inequalities within that society regarding
a. ethnicity, race, and cultural background.
b. political influence, educational benefits, and intelligence.
c. wealth, power, education, and status.
d. religious beliefs, morals, and values.
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. The media classes selected are local television, magazine, and
newspaper.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.
As part of its media planning process, Champion Chocolate is searching for data on the
city’s adult consumers regarding such issues as purchase frequency, brand loyalty, and
media exposure, as well as standard demographics. This type of detailed information on
consumer behavior can only be obtained from a(n)
a. single-source tracking service.
b. media-planning model.
c. agency of record.
d. media-buying service.
Both the Centers for Disease Control, a highly respected federal agency, and
Coca-Cola, an established giant supplying the world with one of its most popular
products, have run into problems with ads that
a. made false claims that had to be retracted and corrected.
b. promoted cultural stereotypes while targeting young children.
c. used purposefully confusing and misleading language.
d. were criticized for being explicit and offensive.
Appleberry Farm Organic Jam has remained No. 1 one in the jam and jelly food
category for several years. Although still a distant No. 2 in this category, Blackberry
Valley Organic Jam is gaining on Appleberry. 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 for Appleberry. Blackberry also underwent an aggressive relaunch last year
with reformulated flavors, revamped packaging, new ads, and additional
media.Approximate 2010 Jam and Jelly category advertising spending, by brand:
Although Blackberry Valley is gaining share on Appleberry Farm, it still must continue
to answer the same fundamental question concerning its media decisions. What is that
question?
a. What is the least expensive way to reach the greatest number of people?
b. Can new media be integrated into the IBP?
c. What media vehicles best support the needs of the creative execution?
d. How can media be used to reach the target market effectively and efficiently?
Many consumers access social media on the Internet while also using another form of
media, providing a seamless interface. Which IBP tool do they use?
a. radio
b. direct mail
c. television
d. magazines
(Scenario 18-2) Scenario 18-2
A young man decides to become a mass producer of quality T-shirts. His small factory
located in Oregon begins by promoting itself as hiring excellent seamstresses, offering a
pleasant working environment, paying decent salaries, and, most importantly, giving the
public an opportunity to buy clothing that is truly “made in America.” The company
eventually adds other clothing items, opens three brick-and-mortar retail stores in
several large cities, and expands to online shopping. Over the years, the firm grows and
prospers due to its reputation as an American manufacturer, a fair employer, and an
opponent of the traditional view of ‘sweatshops.” And along the way, it deals with a few
public relations issues.
Shortly after this young man launches his business, a local newspaper runs a series of
investigative reports on crowded, dimly lit, and unventilated sweatshops along the West
Coast that hire illegal immigrants. His business is mentioned, though only in a list of
firms that employ seamstresses, not in the list of those accused of wrongdoing. Still, he
feels the need to write a letter to the editor as well as put out press releases to clarify his
position and describe his business ethics. In public relations terms, what is he doing?
a. promoting products
b. preparing internal communications
c. counteracting negative publicity
d. lobbying
Which of the following is the result of a company creating a brand extension?
a. a public service announcement run by the NFL during Monday Night Football
telecasts
b. a new type of dog collar advertised in Dog World and other magazines for pet owners
c. a women’s fragrance imitating a popular Calvin Klein cologne
d. a candy bar created with Oreos and launched by Nabisco
A firm has decided to sponsor a PGA golf tournament. Its marketing director knows it is
critical to find unique ways to leverage the sponsorship. One way to leverage the
sponsorship beyond traditional methods would be to
a. estimate the number of viewers who will see the company name.
b. allow the CEO to meet with top golfers on the course.
c. calculate the exposures to the brand received by attendees.
d. use the opportunity to entertain important clients and recruit new ones.
You are the director of advertising research at a large Minneapolis ad agency. Due to
employee turnover and budget cuts, you’re currently staffed with too many entry-level
research assistants and too few management-level research group leaders. To make
matters worse, one of the group heads is on vacation and another is out sick. Of course,
your clients still expect their research to be done in a timely, professional manner.
Therefore, you have gathered your department together and announced that your door is
always open if anyone has any questions about any phase of any project. As a result,
your entire day has been filled with questions.
One assistant comes in to show you the results of some recognition tests that have been
run on a magazine advertisement. She is really excited by the high levels of recognition.
You caution her not to get too excited, because high levels of recognition
a. rarely be judged by normative data.
b. don’t always correlate to higher product sales.
c. can be inaccurate since respondents don’t get to see the ad beforehand.
d. calculate feelings about an ad rather than thoughts about an ad.
Appleberry Farm Organic Jam has remained No. 1 one in the jam and jelly food
category for several years. Although still a distant No. 2 in this category, Blackberry
Valley Organic Jam is gaining on Appleberry. 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 for Appleberry. Blackberry also underwent an aggressive relaunch last year
with reformulated flavors, revamped packaging, new ads, and additional
media.Approximate 2010 Jam and Jelly category advertising spending, by brand:
A new line of Blackberry Valley jams is being launched soon. Its agency’s media
planner calls two companies-Mediamark Research and Information Resources’
BehaviorScan-and orders data before placing ads for the new products. Surpassing the
capabilities of Mediamark and most other consumer research firms, BehaviorScan will
be able to furnish additional information on consumer data such as
a. demographics correlated with product usage data.
b. brand preferences, desired benefits, purchasing habits, and media exposure.
c. age, gender, race/ethnicity, and education level.
d. geographic scope, effective reach, and effective frequency.
Wood Carver Cabinet Makers recently developed a line of kitchen cabinets designed for
new custom homes and kitchen remodeling jobs. The line of cabinets is to be called
“Signature Hardwoods” and a new magazine advertising campaign is being tested. Each
of the ads that is being tested has a photograph of a woodworker handcrafting some part
of the cabinet. In addition, his or her signature is shown at the bottom of the page as an
indicator that the cabinets are carefully hand made.To target new markets, Wood Carver
is looking for up-to-date information-the latest available-on employment, occupation,
and income throughout the country without having to pay a fee for commercial data.
National data on consumers is gathered by the U.S. Census through a number of
avenues, but one of its survey instruments publishes monthly statistics on just these
topics. Which is it?
a. Pew Center Survey
b. Current Population Survey
c. American Demographics Survey
d. International Social Survey
When consumers are brand loyal, the term inelasticity of demand is often used. This
means that
a. consumers won’t accept price increases for a particular product category.
b. consumers are less sensitive to price increases for a brand they like.
c. firms have the flexibility to lower prices if this will increase sales.
d. firms may decrease production in order to increase demand.
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 not have been as effective if the
a. visual was more 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 1-2
Chug Enterprises is considering entering the already-crowded sports drink market with
a line of products. The first brand will be advertised to teenagers as being the
best-tasting sports drink on the market. The second brand will be advertised to adults as
being the lowest calorie sports drink you can buy. The third brand will be advertised to
senior citizens as containing calcium, a mineral needed to maintain a healthy bone
structure. Each brand will have separate, distinctive packaging. However, the drinks
inside are actually identical to one another.
What would most likely be the least effective strategy Chug Enterprises could pursue in
marketing its product to consumers?
a. to focus on integrated brand promotion
b. to use delayed response advertising
c. to stimulate primary demand
d. to attempt to increase elasticity of demand
Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on
Toyota Camrys. He was interested in that model because he had seen a number of
television and magazine ads describing the car’s features and reputation for reliability.
After closely examining the stickers, Joe noticed a line that said “Dealer Promotion
Allowance-$125.00.” Joe asked a salesperson what that meant. The salesman replied
that it was a charge that helped the dealership pay for local advertising to encourage
consumers to shop at that particular dealer. After further discussion, Joe learned that
almost 5 percent of the cost of the vehicle comes from expense for national and local
advertising.
After Joe complained, the salesperson replied, “If our industry didn’t do so much
advertising you probably couldn’t afford to buy that computer to do your own research.”
Which of the following “pros” of advertising is the salesperson likely using to support
his comment?
a. Advertising fosters a diverse and affordable mass media.
b. Advertising fosters new product success and lowers costs.
c. Advertising reflects the priorities of a society.
d. Advertising contributes to art and culture in a society.
The initial section of the ad plan should be a budgeting section that directly states what
it will cost to implement this plan.
A commercial created by the Partnership for a Drug-Free America shows eggs dropping
into a frying pan, with the caption, “This is your brain on drugs.” It is aired on three
major television networks for free. Though this sounds like a public service message, it
is actually an advertisement.
A hit rate doesn’t really reflect the number of consumers interested in a site.
Sales promotion can provide an affiliation value for a brand, meaning that the consumer
wants to, or is able to, identify with the brand.
P-O-P promotion can aid manufacturers not only by attracting consumers, but also by
securing relationships within trade and business markets. For instance, it can encourage
buyers to support their brand over another with more exposure and shelf space.
A global corporation has manufactured chocolate chips for more than 60 years. Sales
for 12-oz. packages of both milk chocolate and dark chocolate are strong in the U.S.
throughout the year, but peak from Thanksgiving through New Years, with November
and December often producing sales almost four times that of the “average” month.
Describe the three choices concerning media continuity that the corporation would
consider when deciding on advertising scheduling. Recommend the option most
appropriate for the company to adopt.
What is Chaos Scenario? How does it relate to today’s advertising efforts?
In the past, research has suggested that advertisers should exert caution when
attempting to use certain methods of advertising. List at least two of these methods and,
for each method, describe two of the lessons that advertisers can learn from the
research.
Companies are now spending more than $10 billion annually to advertise on
digital/interactive media, with “paid search” in the lead at $3 billion.