Chapter 18—Advertising and Public Relations
ESSAY
1. Describe the major types of advertising, and discuss how they differ.
2. What are the important issues to consider when developing advertising objectives?
3. What are the major differences between sales-based and communications-based advertising
objectives?
4. What is an advertising platform? What is the best way to develop a platform?
5. Compare the competition-matching approach with the arbitrary approach in determining an advertising
appropriation. Which method might more easily lead to overspending or underspending on the
appropriation?
6. What are the major components of a media plan? What limitations must be considered as the media
plan is implemented?
7. What are the components of a print ad? What are the functions of each component?
8. Describe how the use of social media can strengthen the effectiveness of advertising.
9. Why would a marketer conduct a posttest when the advertising campaign has already run and the
dollars have already been spent?
10. What are the advantages of using an advertising agency to develop an advertising campaign?
11. What is public relations and for what purposes is it used?
12. Discuss how event sponsorship can be used as a public relations tool.
13. Identify and describe four publicity-based public relations tools.
14. What approaches can be used to evaluate the effectiveness of public relations programs?
15. What steps should an organization take to be able to deal effectively with negative public relations?
MULTIPLE CHOICE
16. Advertising that aims to create a more favorable view of a company as a whole in the eyes of various
stakeholders is called ____ advertising.
a.
institutional
b.
product
c.
organizational
d.
pioneer
e.
advocacy
17. Parisian Dry Cleaners airs a series of radio ads that claim, “We are the fastest dry cleaners in town.”
This campaign would best be described as ____ advertising.
a.
pioneer
b.
target
c.
product
d.
institutional
e.
comparative
18. The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its
faculty, staff, and students are as well as how outstanding its academic programs are. This type of
promotion would best be characterized as
a.
public relations.
b.
product advertising.
c.
advocacy advertising.
d.
institutional advertising.
e.
comparative advertising.
19. When a company promotes its position on a public issue, this is specifically referred to as ____
advertising.
a.
institutional
b.
product
c.
advocacy
d.
issue
e.
competitive
20. When Anheuser-Busch ran an advertising campaign featuring the slogan, “Know when to say when,” it
was using
a.
competitive advertising.
b.
public relations.
c.
product advertising.
d.
public service awareness.
e.
advocacy advertising.
21. Tropicana orange juice has a television commercial where a young boy is drinking orange juice at
dinner. He remarks that he likes the great taste of Tropicana anytime. The element of the commercial
that focuses on drinking orange juice at dinner would be best classified as ________, while the focus
on the great taste of Tropicana would be best classified as ___.
a.
comparative advertising; informative advertising
b.
pioneer advertising; competitive advertising
c.
institutional advertising; stimulating primary demand
d.
product advertising; institutional
e.
comparative advertising; competitive advertising
22. The two major types of product advertising are
a.
institutional and advocacy.
b.
pioneer and competitive.
c.
competitive and comparative.
d.
advocacy and competitive.
e.
informative and comparative.
23. The “Got milk?” print campaign is advertising that stimulates demand for a(an) ____, known as ____
advertising.
a.
product category; pioneer
b.
product brand; competitive
c.
product category; institutional
d.
brand category; pioneer
e.
product; comparative
24. Which of the following lists forms of competitive advertising?
a.
Pioneer, comparative, reminder
b.
Reminder, repetitive, reinforcement
c.
Comparative, reminder, reinforcement
d.
Institutional, product, comparative
e.
Product, pioneer, reminder
25. When Volvo’s advertising campaign mentions the Volvo CX60 has the highest safety rating of any
European sedan, it is using _______ advertising.
a.
Reminder
b.
Reinforcement
c.
Competitive
d.
Defensive
e.
Institutional
26. Coors advertises that its beer is the only one that is kept cold from the brewery to the store. This type
of advertising is called
a.
pioneer.
b.
competitive.
c.
comparative.
d.
defensive.
e.
institutional.
27. Tercile Products Company advertises a specific product heavily, and Carbone Products Company
wants to offset the effects of that advertising. In this case, Carbone would most likely employ ____
advertising.
a.
competitive
b.
pioneer
c.
institutional
d.
primary
e.
target
28. Soft drink companies advertise that their products beat the competition in national “taste tests,” and
they refer to the rival brands by name. This type of advertising is best described as
a.
pioneer.
b.
competitive.
c.
comparative.
d.
defensive.
e.
selective.
29. Brands that are promoted through comparative advertising are most likely to be
a.
market leaders.
b.
brands that are attempting to compete with market leaders.
c.
primarily services rather than tangible goods.
d.
attempting to compete on a nonprice basis.
e.
competing in a less competitive market.
30. The advertising campaign for Crest toothpaste lets consumers know about its newest flavor, and also
mentions its history as an established brand. The ad also mentions Crest’s advantages and benefits.
Crest’s advertising would be classified as
a.
repetitive.
b.
reminder.
c.
pioneer.
d.
competitive.
e.
reinforcement.
31. An ad for a multivitamin that claims, “We still bring you everything you need to get through your day
in one vitamin,” would most likely be considered ____ advertising.
a.
reinforcement
b.
competitive
c.
comparative
d.
reminder
e.
institutional
32. Reinforcement advertising is primarily targeted at
a.
new potential target markets.
b.
users of competitors’ brands and products.
c.
anyone who uses that type of product.
d.
all the stakeholders of an organization.
e.
the current users of a particular product.
33. Dial Soap’s advertising slogan “Aren’t you glad you use Dial? Don’t you wish everybody did?”
exemplifies the use of ____ advertising.
a.
reinforcement
b.
offensive
c.
comparative
d.
institutional
e.
defensive
34. The target audience for an advertising campaign is the
a.
information base on which to develop the campaign.
b.
geographic distribution of persons.
c.
people toward whom the advertisements are directed.
d.
overall goal of the advertising campaign.
e.
sales objective to be achieved by the campaign.
35. The first stage in the development of any advertising campaign is
a.
creating the message.
b.
setting the budget.
c.
identifying the advertising target audience.
d.
defining the advertising objectives.
e.
creating the advertising platform.
36. The last stage in the development of any advertising campaign is
a.
creating the advertising platform.
b.
developing the media plan.
c.
creating the advertising message.
d.
evaluating the effectiveness of advertising.
e.
defining the advertising objectives.
37. After the target audience for an advertising campaign has been identified and analyzed, marketers
should then proceed by
a.
creating the advertising platform.
b.
determining the financial resources available.
c.
defining the advertising objectives.
d.
developing a media plan.
e.
creating an advertising message.
38. After the advertising budget is determined, the next step in creating an advertising campaign is
a.
creating the advertising message.
b.
creating the advertising platform.
c.
evaluating the advertising objectives.
d.
executing the campaign.
e.
developing the media plan.
39. The step in developing an advertising campaign that directly precedes campaign execution is
a.
defining advertising objectives.
b.
creating the advertising platform.
c.
evaluating advertising effectiveness.
d.
developing a media plan.
e.
creating the advertising message.
40. Suppose State Farm Insurance stated, “We want our advertising to increase our customer base for
home and automobile insurance 10 percent by the end of the fiscal year.” This would be considered
a(n)
a.
target audience goal.
b.
advertising platform.
c.
percent-of-sales approach.
d.
advertising objective.
e.
media plan goal.
41. When developing an advertising campaign, benchmarks need to be included in the
a.
campaign platform.
b.
evaluation of the advertising effectiveness.
c.
statement of advertising objectives.
d.
media plan.
e.
budget.
42. Why should a benchmark statement be included in advertising objectives?
a.
Shareholders want to see where a company is in relation to competition.
b.
It is useful in determining whether retailers have increased their sales over the year.
c.
It gives an indication of how the advertising message is best presented.
d.
Without a reference point, it is difficult to determine to what degree objectives have been
accomplished.
e.
Objectives become more easily attainable when such a statement is included.
43. The owner of a professional baseball team asks the account representative of an advertising agency to
develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account
representative logically begins to discuss establishing ____ for the campaign.
a.
the target audience
b.
a budget
c.
a media plan
d.
objectives
e.
advertising directives
44. Dan is responsible for developing the promotional campaign for Under Armour’s new line of footwear
for teens. He will be writing advertising campaign objectives that are aimed at making the target
customers’ attitudes more favorable toward Under Armour, which should be stated in ____ terms.
a.
communication
b.
sales
c.
demand
d.
market
e.
survey
45. If an advertising campaign is aimed at increasing brand awareness and consumers’ knowledge of a
product’s features, the advertising objective should be stated in terms of
a.
market share.
b.
dollar sales.
c.
unit sales.
d.
communication.
e.
long-run goals.
46. An advertising platform is the
a.
basic issue or selling point that an advertiser wishes to include in an advertising campaign.
b.
objective of the advertising campaign, stated in precise and measurable terms.
c.
form in which the basic issues of the campaign should be presented.
d.
broad objectives of the advertising campaign.
e.
consumer advertising research conducted.
47. The basic issues or selling points that an advertiser wants to include in an advertising campaign is (are)
the
a.
advertising objectives.
b.
target audience objectives.
c.
media plan.
d.
advertising message.
e.
advertising platform.
48. Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must
determine the selling points that they want to include in the advertisements. The identification and
organization of these selling points is called the
a.
advertising appropriation.
b.
objective-and-task approach.
c.
advertising platform.
d.
advertising objective.
e.
advertising budget.
49. Frederick Griffith of Griffith’s department stores tells his marketing director that he is tired of the
constant price-centered advertising by the firm’s agency. “We have the best customer service in town,
and I feel that is what we should be hanging our hats on,” he states. This statement is most appropriate
for use in which of the following stages of campaign development?
a.
Determining the appropriations
b.
Creating the platform
c.
Identifying the target
d.
Defining objectives
e.
Developing the media plan
50. An advertising platform should consist of issues that are important to consumers. Selling features
should be important to consumers and should be features that
a.
competitive products lack.
b.
can be seen easily in a photograph.
c.
are familiar concepts to those in the target market.
d.
competitive products have as well.
e.
are reasonably inexpensive to develop.
51. Chloe is employed by an advertising agency and is currently working on the advertising platform for a
client. Most often, the method of determining platform issues is to use the opinions of _____;
however, the most effective method is to use _____.
a.
marketers in the industry; opinions of personnel within the firm.
b.
individuals at the advertising agency; opinions of advertising experts.
c.
individuals at the advertising agency; a survey of customers.
d.
marketers in the industry; a survey of customers.
e.
advertising experts; opinions of personnel within the firm.
52. What is an advertising platform most commonly based upon?
a.
The opinions of employees within the firm or the advertising agency
b.
Data collected from past marketing research about the brand
c.
Customer surveys about what they consider the most important issues
d.
Retailer information about potential consumers of the product
e.
The advertising appropriation for that particular ad campaign
53. The total amount of money a marketer allocates for advertising for a specific time period is the
a.
marketing budget.
b.
advertising appropriation.
c.
objective-and-task approach.
d.
promotion grant.
e.
finances for advertising.
54. Advertising appropriations are largest for which type of product?
a.
Business products
b.
Convenience goods
c.
High-priced products
d.
Specialty goods
e.
Infrequently purchased goods
55. Sony Corporation has a particular approach for determining its advertising appropriation. A problem
with this technique, however, is that the people in the marketing department have difficulty estimating
the level of effort needed to achieve certain goals. This problem is characteristic of the ____ approach.
a.
reliable-appropriation
b.
match-competition
c.
arbitrary
d.
objective-and-task
e.
percent-of-sales
56. The main problem with using the objective-and-task approach to setting an advertising budget is that
a.
sales create advertising rather than advertising creates sales.
b.
it often results in overspending or underspending of the firm’s resources.
c.
it does not achieve full potential in terms of stimulating demand.
d.
the marketer may experience difficulty when trying to estimate accurately the level of
effort needed to achieve goals.
e.
it is difficult to determine the objectives of the campaign.
57. Danielle Robinson, account representative for EXpert Advertising, tells D’Orazio Tile Products that
she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an
increase in consumer and builder inquiries of 15 percent. This approach is an example of which of the
following methods of determining advertising expenditure levels?
a.
Competitive parity
b.
Percent of sales
c.
Arbitrary
d.
Affordability
e.
Objective-and-task
58. To determine how much money to spend on advertising, marketers for a new brand of caffeinated
energy drink decided that they wanted the advertising to create awareness of the new flavor in 80
percent of the energy drink market within one month of introduction. The marketers then determined
how much it would cost to reach this goal. This is an example of which one of the following
approaches to determining advertising budgets?
a.
Objective-and-task
b.
Percent of sales
c.
Competition matching
d.
Arbitrary allocation
e.
Past-year comparison
59. When using the percentage–of-sales approach for determining the advertising appropriation, marketers
a.
base their funding on a percentage of the competitors’ sales.
b.
multiply the firm’s past sales by a set percentage they want to spend.
c.
set sales objectives for the upcoming period and base appropriations on these goals.
d.
multiply the firm’s past sales plus a factor for expected changes in sales times a standard
percentage.
e.
use an industry standard to determine what percentage of their profits they want to allocate
to advertising.
60. If Target were to base its advertising appropriation on the amount that Walmart spends, it would be
using the ____ approach.
a.
objective-and-task
b.
percent-of-sales
c.
industry-standard
d.
arbitrary
e.
competition-matching
61. Colin McKinney, director of marketing for Greenwald Industrial Products, complains to his
advertising director that the continuing slump in orders has apparently been perpetuated by the firm’s
failure to have the necessary advertising expenditures. Based on this information, Greenwald is most
likely using the ____ approach to determine its advertising expenditures.
a.
percent-of-sales
b.
objective-and-task
c.
competition-matching
d.
arbitrary
e.
judgmental
62. Alan is the CEO of Greensprings Landscaping. At the recent budget planning meeting, Alan stated
that last year’s sales were down from the previous period. He then went on to say that Greensprings
would have a budget of $100,000 for advertising in the coming year. In this instance, Alan was using
the ____
a.
arbitrary approach.
b.
executive decision process.
c.
objective-and-task approach.
d.
percentage-of-sales approach.
e.
competition-matching approach.
63. An advantage of the arbitrary approach for determining the advertising appropriation is that it is
a.
objective.
b.
unique.
c.
profitable.
d.
effective.
e.
expedient.
64. After developing the budget for advertising the Kia Soul automobile, marketing managers at Kia then
determined what proportion of that budget would be spent on television, radio, and magazine
advertisements based on the cost effectiveness of each. This subsequent allocation of the budget is
known as a(n) ____ plan.
a.
advertisement-allocation
b.
media
c.
arbitrary allocation
d.
objective-and-task
e.
percent-of-sales
65. A list of the exact magazines, newspapers, and television stations in which an advertisement will
appear, along with the dates and times, is a(n)
a.
advertising plan.
b.
media plan.
c.
advertising message.
d.
advertising appropriation.
e.
media platform.
66. The primary goal of a media planner is to
a.
choose the best commercial spots available.
b.
develop a message that works well with the firm’s target market.
c.
achieve the appropriate message reach and frequency.
d.
use a wide variety of media to ensure the entire target audience is exposed.
e.
reach the largest number of people in the target market within the budget constraints.
67. The percentage of consumers in the target audience actually exposed to a particular advertisement in a
stated period of time is the definition of
a.
frequency.
b.
exposure.
c.
reach.
d.
targeting.
e.
push.
68. The maker of Huggies diapers is developing a media plan that involves trying to expose its target
audience to its new advertisement about ten times. This is advertising
a.
reach.
b.
repetition.
c.
frequency.
d.
targeting.
e.
exposure.
69. Which of the following statements applies to media planning?
a.
Characteristics of the product are the most important consideration in selecting the media
for a campaign.
b.
The message content affects the types of media used for an advertising campaign.
c.
The location of the advertising target is irrelevant in media planning.
d.
Total media dollars spent on advertising have decreased over the last 30 years.
e.
Regardless of the message to be conveyed, newspapers are one medium that is appropriate
for almost any circumstances.
70. A tool that allows an advertiser to compare the costs of several media vehicles within a specific
medium relative to the number of persons reached by each vehicle is called a(n)
a.
cost comparison indicator.
b.
media comparison selector.
c.
unit-price selector.
d.
cost/person index.
e.
vehicle/price indicator.
71. Domino’s is looking into magazine advertising for its pizza. The company wants to reach as many
people as possible, but due to budget constraints Domino’s must reach consumers as efficiently as
possible. What can Domino’s use to evaluate various magazines?
a.
A cost comparison indicator
b.
The total circulation of the magazines
c.
A list of the costs of a one-page ad in various magazines
d.
The advertising appropriations for each magazine
e.
An index of advertisement exposure
72. The cost per thousand (CPM) indicator shows
a.
the cost to expose 1,000 people to a television commercial.
b.
the cost to expose 1,000 people to a one-page magazine advertisement.
c.
the return on investment marketers get for their advertising dollar.
d.
the cost to expose a million people to any type of advertisement.
e.
how one media source compares to a different source for reaching target markets.
73. The three general types of media schedules are
a.
pulsing, beating, and continuous.
b.
short, medium, and long-term.
c.
morning, afternoon, and evening.
d.
pulsing, continuous, and flighting.
e.
light, heavy, and alternating.
74. A schedule in which advertisements run for set periods of time, alternating with periods in which no
ads run is known as
a.
continuous.
b.
skipping.
c.
pulsing.
d.
flighting.
e.
intervals.
75. Disney decided to run its new commercials for all of its theme parks several times a day for three
weeks and then not at all for two weeks. It will then run the commercials again for three more weeks.
Disney is using a ____ schedule for its advertising.
a.
flighting
b.
varying
c.
continuous
d.
pulsing
e.
beating
76. If during an advertising campaign a certain portion of advertising runs continuously, and then during
specific periods additional advertising is used to intensify the level of communication, a(n) ____ media
schedule is being used.
a.
beating
b.
alternating
c.
flighting
d.
continuous with emphasis
e.
pulsing
77. During the duration of an advertising campaign, Verizon Wireless ran television advertisements at a
steady rate throughout the week and intensified its message with newspaper advertising in many major
newspapers in the Sunday paper. Verizon Wireless used a(n)____ media schedule.
a.
flighting
b.
continuous
c.
pulsing
d.
alternating
e.
multimedia
78. Brian and Tiffany are discussing the media plan for the opening of their new bar/laundromat called
Soap and Suds. He tells her that while he agrees that ____ has tremendous impact, he does not feel that
the upfront costs for such a campaign are in the modest budget that presently exists.
a.
radio
b.
outdoor
c.
television
d.
direct mail
e.
newspaper
79. As Oscar Meyer puts together its advertising campaign for the summer, it will need to keep in mind
that its desire to use outdoor advertising will have strong effects on its selection of the advertising
a.
message.
b.
budget.
c.
platform.
d.
audience analysis.
e.
objectives.
80. A marketer that wanted to include detailed information in advertisements would most likely use
a.
radio.
b.
television.
c.
outdoor displays.
d.
magazines.
e.
mass transit.
81. The verbal portion of an advertisement, including headlines, body, and signature, is called the
a.
artwork.
b.
copy.
c.
storyboard.
d.
layout.
e.
script.
82. An ad’s ____ is designed to attract readers’ attention and develop interest so that they will read the
entire advertisement.
a.
signature
b.
layout
c.
headline
d.
artwork
e.
subheadline
83. Todd is developing a print advertisement for Afflac. He knows that the ______ is a critical component
of the copy because _____.
a.
headline; it determines the final layout design.
b.
headline; It is often the only part of the advertisement that is read.
c.
artwork; it takes up the most space.
d.
tag line; it links the copy to the signature.
e.
slogan; it links the artwork to the signature.
84. As Will reads the copy for South Beach Hotel’s upcoming magazine ad in Southern Living, he worries
that no one will spend the time to read all the details of the facilities his resort has to offer. Wanting to
have the greatest impact, Will focuses his creative efforts on the
a.
copy.
b.
body.
c.
text.
d.
signature.
e.
headline.
85. The identification of an advertisement’s sponsor is the
a.
copy.
b.
signature.
c.
trademark.
d.
layout.
e.
subheadline.
86. The advertising department for the Pennzoil Corporation is working on a print advertisement for a new
product. At this point, the layout contains a phrase to attract attention, an additional phrase to provide
an explanation, an illustration to show the product, and a paragraph to explain the advantages and
benefits of the product. What other important element should be included?
a.
Headline
b.
Subheadline
c.
Signature
d.
Artwork
e.
Body copy
87. Rachel is considering advertising her new restaurant on the radio to attract more customers. She knows
that in order to attract listeners’ attention on the radio it will be important for her to
a.
use a high level of repetition.
b.
buy a really long time slot to get all the information in.
c.
be both informal and conversational in tone.
d.
use a quick speaker to attract attention to the commercial.
e.
say the restaurant’s name and location three separate times.
88. Steve is aware of the growth in digital media advertising, particularly to certain target markets. The
use of advertising on digital devices can alienate young consumers. Steve has uncovered recent
research stating that young consumers are more likely to be receptive to advertising appearing on their
digital devices if the source is _____; _____ has been given, and the messages are ______.
a.
known; a coupon; exciting.
b.
trusted; permission; relevant or entertaining.
c.
liked; permission; has a monetary benefit.
d.
trusted; a discount; exciting.
e.
known; a discount; humorous.
89. When a copywriter and an artist combine the copy with the visual material for a television commercial,
it usually is done through use of a
a.
parallel format.
b.
commercial layout.
c.
layout procedure.
d.
storyboard.
e.
visual-impact process.
90. Artwork, a major part of most advertisements, consists of the
a.
illustration and the signature.
b.
illustration and the layout.
c.
illustration and type of print used in the headlines.
d.
layout and the signature.
e.
method by which all the components are put together.
91. The _____ design element of an advertisement is used to attract attention, communicate an idea
quickly, or communicate ideas that are difficult to put into words; the ____ is the physical arrangement
of the illustration, headline, subheadline, body copy, and the signature.
a.
Illustration; layout
b.
Headline; layout
c.
Layout; design
d.
Layout; storyboard
e.
Signature; layout
92. Brittany is choosing the type of media for a new promotional campaign for Halls cough drops. She
knows that each type of media has both benefits and disadvantages. She is considering the Internet as
a form of media. Which of the following is NOT a disadvantage of the Internet as a promotional
medium?
a.
costs of precise targeting are high.
b.
effects of promotion can be difficult to measure.
c.
there are concerns about privacy.
d.
the message must be short and simple.
e.
there are concerns about security.
93. Julie Reese is working on developing a magazine advertisement for Planet Fitness, a health and fitness
club. She knows what she wants the advertisement to say and the illustrations she wants to use, but she
is having a tough time putting it all together. Julie is having trouble determining the