Scenario 15-4
General Mills brand breakfast cereals face strong competition in the dry cereal category
from brands like Kellogg’s and Quaker Oats. Still, General Mills brands like Wheaties
and Cheerios maintain a strong share of the market. As a manufacturer, General Mills
knows it must stimulate consumer demand for its brands, but it must gain retailer
support for these brands as well. Its market research shows that some consumers are
very loyal to certain brands of cereal, but most consumers show some level of
variety-seeking behavior in this product category. As a result, General Mills is
constantly examining different sales promotion tools to stimulate consumers to consider
its brands when shopping for breakfast cereal.
The marketers at General Mills have learned that they, along with Kellogg’s and Quaker
Oats, often target the same customers with their advertising. This problem of customers
receiving too many messages from too many firms has been addressed with sales
promotion tactics featured in advertising, such as coupons included in magazine ads, or
rebate offers mentioned in TV commercials. This is an example of ____ driving growth
in sales promotion.
a. short-term orientation
b. media clutter
c. demand for greater accountability
d. increased power of retailers
One advertiser needs to get its message out to a number of diverse communities within
the U.S. Another advertiser wants to reach populations in diverse nations across the
three continents where its product is sold. Which person in the advertising agency will
work with both of these clients to translate cultural and consumer values into
advertising messages?
a. media services director
b. director of production
c. account services manager
d. administrative executive
When national companies and local merchants share advertising expenses, they are
taking part in ____ advertising.
a. external
b. local
c. cooperative
d. selective
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:
The CEO also wants to compare her firm’s share of voice with that of her main
competitor. What is the share of voice for Appleberry Farm, based on the figures
provided?
a. 3 percent
b. 6 percent
c. 41 percent
d. 48 percent
Advertising is a $300-billion-per-year business in the United States. Understandably,
competition for clients is fierce among advertising agencies. There are many different
reasons why a client may choose to move its business to a new agency, but there is one
constant. The agency that wins the business is celebrated by the press; the agency that
loses the business, however, is typically forgotten fairly soon.What type of agency
would Subway most likely select to promote its new line of sandwiches and bread to a
national television audience?
a. an Internet publisher
b. an in-house advertising agency
c. a creative boutique
d. a full-service advertising agency
A ____ provides information about an organization and its products or services in
detail, often acting as a virtual brochure.
a. consumer blog
b. search engine optimizer
c. corporate/brand home page
d. virtual mall
When advertisers consider running ads in American Life magazine, they have the option
of buying geographic and demographic editions as well as the national edition. For
instance, they can choose from editions targeted at professionals and managers,
homeowners, working women, and people aged 50 and older. In addition, they are
offered editions for 8 geographical regions and for the top 20 metropolitan areas.
American Life also offers multiple-page discounts for advertisers buying four or more
consecutive pages in any one edition, as well as other volume discounts.The basic rate
to reach 2,847,600 readers in its national edition with a full-page, four-color
advertisement is $91,300. The basic rate to reach the same 2,847,600 nationwide
readers with a single-column, black-and-white ad is $31,300.
Based on the figures provided, what is the CPM of a single-page, full-color
advertisement in American Life‘s national edition?
a. $ 10.99
b. $ 31.19
c. $ 32.06
d. $ 90.98
American Express is dissatisfied with the degree of penetration of its Gold Rewards
Plus card in the U.S. market. Marketing managers at American Express feel that the
firm needs to increase advertising to small entrepreneurial businesses to encourage
more acceptance of the card for use in purchasing office supplies and durable goods like
computers and office furniture. American Express feels that to accomplish the goal of
increased penetration in this sector, the budget should be based on communications
objectives aimed at certain target markets.
Within the ____ portion of its advertising plan, American Express suggests that the
most important outcome of the campaign will be for Visa customers to start to switch to
American Express in this market segment.
a. strategy
b. execution
c. situation analysis
d. objectives
In economic recessions or in other situations requiring downsizing within an agency,
which is one of the first positions to be cut?
a. the account executive
b. the creative director
c. the budgeting manager
d. the research director
Regarding the relationship between the client and agency, things will go most smoothly
and efficiently when
a. you see them as equal forces with equal power and responsibility.
b. you can identify two distinct entities with clearly defined roles and tasks.
c. you can tell that the agency does everything the client wants without question.
d. you can’t tell where the work of one ends and the other begins.
An advertisement for a Michigan resort features the headline, “Endless Coast. Endless
Sand. Endless Sunset. Endless Time. Lighthouse Harbor Lodge.” This headline has the
primary purpose of
a. identifying the brand.
b. establishing a tone or emotion.
c. selecting the audience.
d. giving advice to the reader.
Within the advertising plan, what does a “build-up” analysis actually build up?
a. the backlog of consumer profiles to be used
b. the expenditure level for tasks to be done
c. the sales expected to be seen
d. the goals and objectives to be pursued
A real estate firm has a name-and-address file. It can now add more names, add more
details about the names already on the list, or merge the list with another list consisting
of new information. All of these choices are forms of
a. media application.
b. cross-selling.
c. list enhancement.
d. system selling.
Without a leader, the many individuals on an IBP campaign are compared in the text to
a. athletes exercising as they get ready for a game.
b. symphony musicians making noise as they warm up.
c. artists splashing paint on a wall.
d. children arguing as they play in a sandbox.
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.Yamaha has created
quite a witty ad. Research suggests that this method increases in effectiveness when the
a. ad is judged as funny by consumers.
b. ad is understood by both children and adults.
c. humor is directed at an unsuspecting consumer.
d. payoff of the joke is linked to the brand.
The Wheeler-Lea Amendment in 1938 greatly influenced the future of advertising in
America by
a. establishing the powerful Federal Trade Commission (FTC).
b. allowing the FTC to stop practices that were misleading regardless of their impact on
competition.
c. granting industries the right to form self-regulatory organizations to reduce FTC
interference.
d. reducing FTC control over advertising practices regarding competition and
monopoly.
A salesperson sells sets of interrelated components, essentially representing a full range
of products and services, to his business customers. His accounts are mainly industrial
manufacturers who prefer to purchase entire lines of parts and products from his firm,
including producers of steel and aluminum goods, manufacturing plants, heavy
equipment producers, and government buyers. This individual is involved in
a. system selling.
b. missionary selling.
c. creative selling.
d. marcom management.
Scenario 1-6
Gillette M3Power-a MACH3 razor innovation-is a groundbreaking, powered wet
shaving system for men that delivers a totally new shaving experience resulting in
Gillette’s best shave ever. M3Power builds on the heritage of MACH3 and combines
Gillette’s latest and best razor and blade technologies. M3Power outperforms all other
blades and razors in closeness, comfort and safety during and after the shave. Gillette
M3Power features other innovations beyond power: new blades featuring PowerGlide
¢-an enhanced blade coating for incredible glide and maximum comfort, a moisturizing
Indicator® Lubrastrip¢ and a technologically-advanced handle (www.Gillette.com).
Recently, Gillette Co. direct-mailed users of competing male products, throughout the
United States, a free MACH3Power razor with blades and a coupon offer. In addition, a
series of coordinated advertisements to male consumers were developed to increase
awareness of this product. Gillette said that its goal was to have a market awareness rate
of 70 percent within four months.
The functional goal for Gillette’s advertising of the Mach3Power razor is to get male
consumers to shift their preferences from other brands. This is known as
a. corporate advertising.
b. direct response advertising.
c. selective demand stimulation.
d. primary demand stimulation.
An old saying applies to the idea of individuality within teams in the world of
advertising. It goes like this: “If you and I think alike . . .”
a. “. . . then one of us is unnecessary.”
b. “. . . then you must be right.”
c. “. . . then we’ll make a good team.”
d. “. . . then we’re probably both wrong.”
You scan the ads for Dallas on craigslist.com and find what may be your dream job.
The posting reads, “Entry-level position in media.” You click on it, and the ad says,
“Motivated individual sought to aid in media planning and buying at established
advertising agency. Must have general knowledge of media and be aware of current and
future challenges facing media buyers. Salary negotiable.” You email your resume and
cover letter to the contact person in the ad, and the reply sets you up for an interview
next week.
The interviewer says that it’s nice to interview people straight out of school because
they seem to have knowledge of the current advertising world. She asks you whether
the CPRP is a good indicator of advertising effectiveness for a campaign, since clients
often press them for some indicator of ROI. What should you reply?
a. “No, because CPRP says nothing about the quality of the advertising itself.”
b. “Not alone, because such indicators need to be compared to stated objectives.”
c. “Yes, and I know how much good numbers can reassure clients.”
d. “Yes, if you reference SOV numbers to highlight your performance vs. competition.”
In a print ad, the subhead serves basically the same purpose as the headline.
A person fills out an online form and gives his permission to a bookstore retailer to send
messages about new books, sales, and special incentives to his email address. This is
referred to as viral marketing.
Psychologists now believe that memory is more fluid than was once thought, and is
more strongly influenced by motivation to remember, or not to remember.
Product placement involves advertisers finding shows where the product might fit.
Branded entertainment involves advertisers creating shows so the product will star.
When an individual feels a symbolic or self-expressive meaning about a brand, his or
her involvement level tends to be lower within this product category.
Objectives of corporate advertising can include boosting employee morale and
attracting new employees.
One reason that television is such an effective medium for ads is that there is the
opportunity to present one message with the video and a second, entirely different,
message with the audio.