Of all options for creating advertising budgets, the ____ relies most heavily on a
marginal analysis involving the company’s past sales, profits, and ad expenditures.
a. objective-and-task method
b. share-of-market method
c. percentage-of-sales system
d. advertising response function
EcoNature is a small manufacturing firm distributing a new line of eco-friendly
household cleaning products in Western and Southwestern states. To raise awareness
and encourage consumers to trial its products, it buys advertising time on cable TV,
places ads in regional issues of women’s magazines, and offers coupons via a number of
metropolitan newspapers. Each new communication undergoes a review process to
ensure that it displays the new “green” brand logo and carries the same message.
Overall, EcoNature is
a. segmenting its target audience.
b. running corporate advertising.
c. creating primary demand.
d. managing the IBP process.
What single element is often at the center of agency conflict, usually between account
managers and their creative teams due to their widely differing views on this issue?
a. copy research
b. product description
c. online data gathering
d. account planning
A discount retailer has been doing very well over the years, and can now expect to get
cash payments from manufacturers and suppliers if they want their products on the
retailer’s shelves. So it regularly receives these payments, known as
a. bill-back allowances.
b. slotting fees.
c. merchandise allowances.
d. off-invoice fees.
Peripheral cues are best used as attention-getting tools for products when
a. the advertising budget is small.
b. extensive decision making is required.
c. brand loyalty is being challenged.
d. cognitive responses are not expected.
Collectively, millions of individuals are continually creating and sharing content
through blogs, social media, wikis, and video sites. What is the term for this
phenomenon?
a. Internet facilitation
b. crowdsourcing
c. Web 2.0
d. digital/interactive production
In theory, of the major options for advertising objectives, ____ asks the least of
consumers and ____ demands the most.
a. trial usage; brand awareness
b. purchase intent; trial usage
c. trial usage; repeat purchase
d. brand awareness; brand switching
You are owner of a 15-person advertising agency in a major market. You’ve been
invited to pitch the Girl Powerz account, the largest female-only fitness center chain in
the region, one that could quickly grow into a national franchise. If you land the
account, it will be your biggest revenue producer by far. You’ll be able to staff up, move
to a nicer space, and buy some decent office furniture. It also will put you, personally,
in a position to make a ton of money by selling out to a larger agency some day.
Considering the importance of the pitch to Girl Powerz execs, you have decided to
spearhead the pitch yourself.
It is ultimately decided that the ad budget will base spending on what needs to be
accomplished from a communications standpoint. This would be the
a. objective-and-task approach.
b. percentage-of-sales approach.
c. share-of-voice approach.
d. response model approach.
A marketing director for a snack producer is trying to convince corporate executives to
consider advertising on several blogs. One thing that he should remember about blogs is
that they
a. do not generate a lot of trust among consumers.
b. are read by more than 80 percent of all Internet users.
c. can contain product pitches or messages without revealing any affiliations with the
companies behind them.
d. provide the strongest reach of all formats on the Internet.
The text poses questions about whether advertising causes people to smoke and drink.
How does it answer these questions?
a. Brands in these categories don’t spend enough advertising dollars to truly influence
consumers.
b. These ads are usually designed to be subliminal, suggesting but not causing behavior.
c. Even sophisticated and knowledgeable consumers are highly influenced by ads to use
these products.
d. Advertising cannot create primary demand in mature product categories such as
these.
Which budgeting method monitors the amount spent by significant competitors and
then allocates an equal or proportionate amount as its advertising dollars?
a. share-of-voice approach
b. objective-and-task approach
c. advertising response function
d. percentage-of-sales approach
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.One student said, “I am sick
and tired of seeing nothing but supermodels advertising women’s clothes. Nobody I
know looks like that! They don’t give us any way to know how a normal woman might
look in their clothes.” On which of the following “cons” of advertising is this comment
most likely based?
a. Advertising wastes resources.
b. Advertising perpetuates stereotypes.
c. Advertising creates needs.
d. Advertising promotes materialism.
Recently, progress has been made in understanding the mechanisms involved in
feel-good advertising and the relationship between thought and feelings. It is now
believed that feelings are
a. less powerful than thoughts.
b. expressed in a more primitive way than thoughts.
c. generated from the same system as thoughts.
d. slower than thoughts.
In the broadest sense, color is often effectively used in advertising illustrations to
a. attract a reader’s attention.
b. create a mood.
c. prevent scrutiny of a product’s functions.
d. get a universally recognized reaction.
What kind of groups are responsible for coming up with the concepts that express the
benefits of a brand?
a. creative and production services
b. direct-marketing departments
c. account services
d. marketing research departments
What are the three main purposes of direct marketing programs?
a. to close the sale, identify prospects, and engage consumers
b. to identify target markets, tailor the message, and support brand identity
c. to provide information, answer questions, and foster brand loyalty
d. to reward customers, furnish information, and generate brand preference
Direct marketing pioneer L.L. Bean has always been a relationship builder. What
insight did L.L. Bean have from the beginning regarding the use of direct marketing?
a. Word-of-mouth advertising is the best way to build a marketing base.
b. Long-term customer relationships must be based on trust.
c. Closing the sale comes first and commitment to customer satisfaction comes second.
d. Customers are willing to pay for catalogs if given the proper incentive.
As noted in your text, critics contend that event sponsorships, especially those of the
sporting kind, can be
a. damaging to a product.
b. ego-driven and a waste of money.
c. too narrow and local in nature.
d. too broad and global in nature.
Scenario 17-2
AmericanProfile is an e-technology company. It allows companies to search and
navigate gigabytes of data, categorize disparate content, and gain secure access to
information regardless of where it resides”all from its Web browser. So,
AmericanProfile can share content across connected servers with partners, suppliers,
customers, and employees to form an e-business content network. And it all happens in
real time.One of the magazine publishers AmericanProfile has studied collects data at
its website about readers of one of its health and fitness magazines. The publisher uses
direct mail to try to get these readers to subscribe to another one of its publications, one
that focuses on nutrition. This practice is known as
a. missionary selling.
b. spamming.
c. system selling.
d. cross-selling.
Paid circulation is the total number of newspapers sold through subscriptions as well as
through newsstand and retail store sales.
Many forms of pre-post attitude studies are becoming more popular than they once
were due to a recent push to gather more rounded “before and after” data from potential
consumers.
Creative thinkers demonstrate complex and mature thoughts, while ordinary people
often have simple and childlike thoughts.
What has led to the growth and popularity of green marketing? What cautions should
potential advertisers take before launching into it? A number of corporations,
manufacturers, and service industries have issued “green” messages. Name as many as
you can, with a few words to describe the promotion if possible.
What is an external facilitator? List the four main types and identify briefly. Within
these categories, what kinds of new facilitators have emerged in recent years? Give an
example.
“The night-time, sniffling, sneezing, coughing, aching, stuffy-head, fever,
so-you-can-rest medicine” is an example of point-of purchase advertising.
What common goal do corporate image advertising, advocacy advertising, and
cause-related advertising share? Outline the unique features of each of these types of
corporate advertising.
