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.Groupon decides to hire a full-service advertising
agency to create a new campaign for the company. The ad agency agrees to be
compensated through an incentive based program that will measure increased brand
awareness and brand identification. This type of compensation program is called a
a. fee system.
b. commission system.
c. pay-for-results system.
d. mark-up charge system.
(Scenario 18-4) Scenario 18-4
In the summer of 2010, basketball star LeBron James found himself in the middle of a
PR nightmare when he decided to turn his decision regarding his future team into an
hour-long spot on ESPN, which interestingly enough was entitled, “The Decision.”
Almost immediately, fans and critics alike began to express their distaste for the way
the multi-millionaire handled the situation. Many fans’ opinions of the star were greatly
altered and James’ positive public image appeared to be shattered. Perhaps even worse
than the damage to his image, the Lebron James “brand” began to take a hit when his
jerseys were pulled from many retailers’ stores and websites, and thousands of fans
vowed they would never buy James’ line of shoes ever again. Several months later,
James began the process of repairing his public image. James, who endorses Nike
products, came out with a controversial commercial some believe was intended to
evoke sympathy. However, many others felt the commercial mocked the negative
reaction expressed over “The Decision,” and was intended to rebrand the star as a bit of
a rebel. Either way, LeBron James appears to have a long way to go before he can once
again be recognized as one of the most beloved players in the NBA.
One reason LeBron James and his team did not expect such negative backlash
following “The Decision” was because he donated the $3 million generated by the
television spot to a number of children’s charities. Although it may not have been
effective in this instance, fundraisers generally
a. erase a company’s negative public image completely.
b. cause any company to greatly increase its sales.
c. give positive visibility to a brand or company.
d. serve as the make-or-break element for any brand or company.
Which model takes into account consumer involvement levels, information processing,
cognitive responses, and attitude formation in a single framework?
a. the multi-attribute attitude model
b. the intergenerational model
c. the elaboration likelihood model
d. the social stratification model
A large metropolitan newspaper comes out with an investigative piece on unsafe baby
cribs, and overnight, the manufacturer highlighted in the article finds itself in a crisis
management situation. Which of the major tools of public relations is most likely to be
immediately employed in a case like this?
a. lobbying elected officials
b. calling a press conference
c. issuing a company newsletter
d. setting up a feature story
An American automobile company sees that the market share of one model has steadily
declined. It seems that every percentage point drop is matched by a corresponding
percentage point rise in the Japanese-made competition. In an effort to regain market
share, the automobile company decides to promote its American-made heritage. In fact,
every part of its car is manufactured in the United States. The advertising agency for the
company comes up with the slogan “Right here. Right now. Your all-American car.”
The advertising it creates is image oriented, and hopes to produce a delayed
response.By running delayed response advertising, the agency is hoping to
a. establish brand loyalty for the car.
b. avoid having to create favorable consumer attitudes toward the car.
c. have the car show up in an internal search when the time comes to shop.
d. create recognition of a need state.
A savvy Internet marketer has tried a number of measurement methods over the years,
finding many to be inaccurate or misleading. He has now found the best way to
measure the effectiveness of his clients’ Web ads. He is probably relying on
a. click-throughs.
b. page views.
c. hits.
d. unique visitors.
(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.
In your initial review, you realize that all four clients are currently paying a fee to have
their brands exposed or displayed within some entertainment format. This means they
are all taking part in
a. event sponsorship.
b. product placement.
c. branded entertainment.
d. co-branding.
Scenario 17-1
If you walk into a Cracker Barrel Old Country Store, you’ll see many items once found
in general stores, like porcelain signs, ceramic jugs, tin boxes”and Coca-Cola trays and
plaques. And since 2004, Coca-Cola Co. has maintained a larger display of unique
Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland
Hotel. Visitors will find a number of rare holiday paintings, prints, and calendars
featuring the familiar Santa Claus figure and a bottle of Coke. In 1931, the company
had commissioned professional illustrator Haddon Sundblom to create illustrations for
its advertising, resulting in the warm and jolly image of Santa that has endured in
American culture ever since. The soft drink has been served in Cracker Barrel stores for
40 years, so this is a natural connection for both brands. In fact, for its 40th anniversary
in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing
logos of both brands.(http://www.crackerbarrel.com/about-decor.cfm?doc_id=51.
Accessed January 17, 2011.)(original press release by Jim Taylor, “Rare Coca-Cola®
Holiday Artwork on Display at Cracker Barrel Old Country Store®,”
http://www.crackerbarrel.com/mediaroom-newsreleases, November 15, 2004.)Cracker
Barrel stores feature a big fishbowl inviting visitors to leave a business card and
announcing a monthly drawing for free memorabilia from both brands. Those whose
cards are drawn receive their prizes by mail. What are Cracker Barrel and Coca Cola
specifically doing with this fishbowl activity?
a. developing a mailing list
b. promoting brand loyalty
c. cross-selling
d. conducting personal selling
Failing to address how the expenditures being proposed will actually meet the goals
being pursued is a major downfall of the typical advertising budget. In fact, the only
budgeting method that specifically relates spending to goals is the
a. share-of-market approach.
b. percentage-of-sales approach.
c. objective-and-task approach.
d. share-of-voice approach.
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 forgotten almost immediately and removed from short-term memory.
c. begin to fade from people’s memories at certain mathematically calculated points.
d. are retained only if the individual wants to remember them.
The most complex and demanding type of creative selling is seen in telemarketing
efforts directed at consumers at home.
A researcher is said to conduct “field work” when he or she joins in and actually takes
part in the study, usually in a taste test or other form of product testing.
Click fraud is a crime, one that is being monitored and detected by Google and Yahoo!
by watching for repeated clicks or unusual visit patterns from anonymous servers.
Most large agencies, such as Omnicom, Chiat/Day, and Fallon McElligott, set up
digital/interactivemedia groups only recently in response to the sudden surge of client
demands that Internet and mobile media options be included in nearly every IBP plan.
Discuss the nature and use of product placement. How do today’s advertisers
specifically use product placement, and in which forms of media? Cite several
examples based on instances of product placement that you have noticed.
Television offers advertisers two extraordinary opportunities– outstanding creative
expression, and amazing geographic selectivity.
Mass-mediated communication has three major components: production, reception and
distribution.
What are the two main categories of point-of-purchase promotions? What types of
P-O-P formats or techniques can you name? (The text lists 16.) Now imagine yourself
as a retailer specializing in a particular area -groceries, discount items, sporting goods,
apparel, books, electronics, big-box items, etc. Describe how you would use at least
three types of P-O-P techniques to merchandise, display, and promote various goods.
