Scenario 15-2
The Sounds Good recording company is getting ready to release the first compact disc
from its newest band, Planet Moon. Sounds Good’s last three releases have been dismal
failures, and the struggling company needs a quick influx of cash. The owners decide to
use sales promotions to move the Planet Moon disc through record stores and into
customers’ hands.
Sounds Good commissions the design of 50 cardboard displays for record stores. The
displays will hold 144 compact discs, with headphones for patrons to listen to selections
off each disc. This type of promotion is known as ____ advertising.
a. point-of-purchase
b. on-package
c. in-store
d. business-market
The last decade has known unprecedented change in advertising spending.
Digital/interactive advertising is now a $ ____ industry, which is about ____ percent of
U.S. spending on advertising and promotion.
a. 80 billion; 44
b. 30 billion; 14
c. 10 billion; 28
d. 4 billion; 11
A marketing manager for a giant beverage firm has been put in charge of all advertising
for a new soft drink that appears to have a common appeal in different cultures around
the world. This manager will most likely engage in
a. national advertising.
b. international advertising.
c. multicultural advertising.
d. global advertising.
Some commercial firms specialize in gathering data based on geographic clustering,
such as PRIZM, which works on the assumption that _____ are more alike than
different regarding their consumer practices.
a. most people within a certain household
b. most people within certain professions or occupations
c. most people within a given zip code
d. most people with the same ethnic background.
A group of friends sitting in a bar talk and joke about various beer commercials. One of
them describes an ad and they all laugh, and then someone says, “That is one great ad.
Who was that for, anyway?” The text clearly makes the point that if someone is asking
which product is behind an ad, it
a. is not a great ad.
b. has successfully used product recall.
c. generates anxiety instead of humor.
d. is not really a funny ad.
Which of the following demonstrates the way we pick up phrases or slogans from
advertisements and commercials, then make them part of our everyday conversation,
and ultimately part of our popular culture?
a. “Make my day.”
b. “Read my lips.”
c. “Yes we can.”
d. “Just do it.”
(Scenario 14-3) A new business owner is looking into various forms of advertising. Of
all the different methods, he seems to be most excited about the idea of advertising
through interactive media. Perhaps this is because
a. consumers no longer pay attention to traditional forms of advertising.
b. interactive media is better for small business owners.
c. traditional forms of advertising do not provide enough information for consumers.
d. the increase in wireless technology allows businesses to reach consumers at all hours
of the day, regardless of location.
A hospital is attempting to change its image. In the past, the hospital has been perceived
as having a high degree of expertise across all medical services, but also as having a
cold and unfeeling atmosphere. This has resulted in the hospital losing business in
situations where patients feel that a procedure is simple enough that any hospital can
perform it equally well. The decision is made to hire a local advertising agency. The
agency’s creative director meets with the hospital marketing director to develop a
creative brief. It focuses on print ads for local newspapers and regional magazines, and
states that the advertising for the hospital must create feelings of caring and warmth,
without explicitly stating that the hospital “cares”-a tactic that has been used again and
again by other medical institutions.
Once she has a rough draft, the art director has to admit it’s a really great-looking ad.
All the elements hang together and work with each other, and the overall feel is
harmonious and peaceful. She clearly understands the principle of
a. balance.
b. unity.
c. order.
d. proportion.
Stockholders, suppliers, employees, government entities, citizen action groups, and the
general public can all be considered ____ in the world of public relations.
a. obstacles
b. tools
c. constituent groups
d. publicity seekers
What format seen today represents perhaps the oldest form of advertising and
promotion?
a. the coupon
b. the premium
c. the directory
d. the billboard
The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a
preliminary meeting with its agency, the president of Castaway Sports mentions that the
rod can improve casting distance for an average individual by more than 20 percent.
The account executive asks if the president has data to support this, and the president
says “Yes.” The agency proceeds to produce a series of television spots featuring a
well-known sports celebrity using the rod and rating it as excellent. The spots run on
network television and trumpet the improved casting distance that the rod provides. The
slogan of the spots is “Lightning Rod-The Finest Rod Ever Cast.” After about a week, a
competitor questions whether the rods really offer the improved performance Castaway
Sports claims, and decides to file a complaint with the FTC.
The FTC investigates the claim of 20 percent more casting distance when using the
Lightning Rod. Castaway Sports admits that it has no actual data to support the claim
but believes it to be true. Still, the FTC rules that should stop running the ads. This is an
example of
a. affirmative disclosure.
b. a cease-and-desist order.
c. a consent order.
d. corrective advertising.
Which of the following is true concerning teams?
a. They try to blend diverse skills but are rarely successful.
b. They have become the primary means for getting things done.
c. They squash individuality and creativity all too often.
d. They were popular in the 80s and 90s but are now considered a passing fad.
Juan has just been assigned the role of team leader of his creative group for a new ad
campaign. What is Juan’s first job?
a. to suppress any disagreements
b. to meet with the client
c. to provide a list of his ideas
d. to build consensus about goals
(Scenario 18-1) Scenario 18-1
The giant brewing companies of the U.S. love to use public relations to keep their
company names in the minds of Americans and to promote their many brands of beer
and ale. Both traditional and innovative public relations activities-using both traditional
and innovative media-help to promote a positive public image, create brand awareness,
highlight the product line, and act as cost-effective ways to enhance the overall IBP
campaign. And these brewers use a variety of objectives and tools that support the field
of public relations.A public relations firm has designed a website for a large brewing
company. It provides product information on all its brands, with a separate page for
each, featuring the way that particular product was imagined, concocted, tested-and
named. It offers a contest to name the new fall lager that will premiere later in the year.
With this site, the company seems to have set its primary objective as
a. promoting a product or service.
b. giving advice and counsel.
c. delivering internal communications.
d. counteracting negative publicity.
McMann and Young advertising agency has been hired by Broadway Bicycles, Inc. to
assist with advertising and promotions for a chain of bicycle stores in Vermont. The
agency has agreed that a certain level of awareness and interest in Broadway Bicycles
will be generated in order to gain the sales results the company desires, and they have
agreed to be paid accordingly. This is called
a. amortization.
b. a retainer.
c. cost plus.
d. pay-for-results compensation.
Issues of both _____ and _____ represent restrictions on the activities of public
relations firms, and involve getting written permission for the use of certain materials.
a. affirmative disclosure; diffusion of innovation
b. defamation; material representation
c. substantiation; behavioral targeting
d. appropriation; copyright
A peanut supplier is new to sponsorship and wants to get an outside opinion on the
advantages of signage in baseball stadiums. Which company gives advertisers a read on
the impact of various signs at various sporting venues?
a. Forrester Research
b. Starcom MediaVest Group
c. Nielsen Media Research
d. Commercial Alert
Multi-attribute attitude models (MAAMs) provide a framework and a set of research
procedures for collecting information from consumers
a. about how they establish benchmarks for repetitive integration.
b. to determine the price they are willing to pay for a product.
c. about whether they experience postpurchase anxiety.
d. to assess their salient beliefs and attitudes about competitive brands.
A search engine allows an Internet user to surf the Web by typing in key words and be
given a list of all websites containing those key words.
While purchases based on brand loyalty are often just consumption simplifiers,
purchases based on habit are the result of strong commitment.
The only medium that places the advertising, the product, and the consumer together in
the same place at the same time is P-O-P advertising.
The theory behind transformational advertising is that it can actually improve the
consumption experience.
A sponsored event can still be considered a positive addition to the IBP mix for the
advertiser even if predetermined exposure figures are not met.
There is absolutely no doubt that humor is the secret ingredient in great advertising.