When a Bahamas resort runs its commercials on TV, it gets an advantage that cannot be
matched by radio or print media. Which of the following advantages does it have?
a. Less fleeting message than that used in print media
b. Low absolute cost
c. Highly selective geographic targeting
d. Low cost-per-contact
The organization that pays for an advertisement is referred to as the client.
a. True
b. False
Scenario 12-2
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 Lifealso 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 number of
2,847,600 nationwide readers with a single-column, black-and-white ad is $31,300.
The owners of the oak furniture company are now considering buying an ad in
American Life.
However, before they go ahead with their decision, they want to know the approximate
number of times an individual within a target audience will be exposed to an ad in
American Life in a given period of time. Which of the following are they referring to?
a. Placement
b. Frequency
c. Reach
d. Continuity
The strategy section of an advertising plan is the mechanism that states:
a. why the advertising is needed for this product or service.
b. what goals need to be reached.
c. how things will be done so that objectives are achieved.
d. who will handle various promotional tasks.
Harper & Kane advertising agency sets an hourly rate for the services it provides to its
clients. This rate is based on the average salary of all the members in the creative
department. Harper & Kane uses the system.
a. commission
b. cost-plus
c. markup charge
d. fee
Which of the following is an example of a brand extension?
a. Tracker, a company selling security systems, advertises its product on a local
television network.
b. Dog Handler, a manufacturer of leashes for dogs, collaborates with a competitor to
expand its market base.
c. Blossoms, a women’s perfume line, advertises its new line through sales promotions
and point-of-purchase advertising at department stores.
d. The manufacturers of Cocoa flakes, a popular cereal, launches a biscuit called
“Cocoa crunch” in a new product category.
What is a market niche?
a. A small group of consumers with unique needs and who typically are willing to pay a
premium to have those needs met
b. A large group of heavy users who are loyal to a brand because it provides value at a
relatively low price
c. A market segment that is served by many firms and is characterized by high levels of
competition
d. A market segment that is characterized by high sales volumes and low prices
Carmel Inc. has come up with the idea of creating a television ad for its new range of
assorted cookies. The marketing executives approached RT Designs who will be
filming the ad, preparing a set to record the ad, and employing an actress to play the
role of a little girl enjoying her cookies. RT Designs is an example of a ____ .
a. creative boutique
b. production house
c. fulfillment center
d. media specialist
An advertisement for a Michigan resort features the headline, “Endless Coast. Endless
Sand. Endless Sunset. Endless Time. Lighthouse Harbor Lodge.” The primary purpose
of this headline is to:
a. identify the brand.
b. establish a tone or emotion.
c. select the audience.
d. give advice to the reader.
Scenario2-5
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 modeleach 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 the 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 find a firm that can help them in planning, preparing, and executing
promotional campaigns. The company whose services Groupon is seeking is referred to
as a(n):
a. client.
b. database consultant.
c. sponsor.
d. external facilitator.
The ____ part of an overall situation analysis commonly begins by stating who the
current users are and why they are current users.
a. historical context
b. industry analysis
c. competitor analysis
d. market analysis
In local spot radio advertising, an advertiser places advertisements with a network or
syndicate rather than directly with individual stations.
a. True
b. False
In the 1980s, the Saatchi and Saatchi ads were primarily politically neutral.
a. True
b. False
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
Which of the following ads uses indirect comparison?
a. EZTalk offers you four times the performance of other leading brands.
b. Refresh toothpaste gives you all-day protection against germs.
c. The Palazzo offers better mileage for half the price of a Gordano.
d. Buying Verity results in immense savings over the long term.
All conventional media such as television, radio, newspapers, and magazines can be
used to deliver direct response advertising.
a. True
b. False
Share of voice, or share of market, is a method that bases an ad budget on whatever
significant competitors are spending.
a. True
b. False
______ is one of the world’s largest media conglomerates and provides broadcasting,
film, music, cable, print, publishing, and a dominant Internet presence.
a. News Corp
b. Fox Broadcasting Company
c. Sony Corporation
d. Time Warner
A drawback of anxiety ads is that their effects cannot be measured.
a. True
b. False
As a way to energize the creative process, firms are starting to use a technique called
crowdsourcing by specifically encouraging customers to offer suggestions.
a. True
b. False
_____is the measure of the total value of goods and services produced within an
economic system.
a. Gross domestic product
b. Residual income
c. Net present value
d. Gross domestic income
Scenario 17-4
Trapper’s Lake Lodge is a rustic hotel situated on a large lake in the Flat Tops
Wilderness Area. The lodge offers a relaxing getaway as well as guided fishing,
hunting, bicycling, and cross-country skiing trips from its remote location 250 miles
away from a major airport. Guests must travel the last 40 miles on a rough dirt road
during the summer months or ride a special snow car during the snow season. Trapper’s
Lake Lodge management has found that guests almost always have a wonderful
experience during their stay and swear they will visit again. Nonetheless, the biggest
problem is getting people to visit in the first place, probably due to the difficult travel
involved. So the lodge management has decided to mount an aggressive direct
marketing campaign to increase first-time guest visits as well as to nurture loyal
frequent visitors.
A public relations consultant advises the lodge management that any direct marketing
campaign should be coordinated with its other advertising and promotional strategies,
as well as all the efforts that its employees are making in order to make the stay so
wonderful. In effect, the consultant is recommending that the lodge make_____the final
goal of their campaign, since it would make all the efforts even more effective.
a. services management
b. marcom management
c. integration
d. innovation
An established cereal manufacturer is being investigated by the FTC for claims that its
oatmeal can repair damaged arteries and prevent heart disease. Its executives are aware
that if the claims are found to be false, the firm may receive the FTC’s most severe
penalty, which involves:
a. ordering corrective advertising.
b. issuing a cease-and-desist order.
c. an order to insert a disclaimer.
d. dissolving the corporation.
Out-of-home media describes various advertising venues that reach local audiences
while they are out in public.
a. True
b. False
A young man heads the marketing team for a national electronics retailer. He has before
him the task of drafting the ad plan for the company. From a long list of situational
factors, which of the following is more likely to be the single most important one for
him to consider?
a. Projected industry growth
b. Advertising spending by competitors
c. Basic demographic trends
d. Economic and regulatory restrictions
Scenario 7-4
You are the director of advertising research at a large Minneapolis ad agency. Due to
employee turnover and budget cuts, you’re currently staffed with too many entry-level
research assistants and too few management-level research group leaders. To make
matters worse, one of the group heads is on vacation and another is out sick. Of course,
your clients still expect their research to be done in a timely, professional manner.
Therefore, you have gathered your department together and announced that your door is
always open if anyone has any questions about any phase of any project. As a result,
your entire day has been filled with questions.
An assistant is working with a company that heard about using UPC data from
packages to generate information on how households turn information from advertising
into actual purchases. She’s never heard of it. What type of research is this?
a. Inquiry/direct response measures
b. Frame-by-frame testing
c. Single-source tracking
d. Split-transmission testing
In which of the following orders does an ad layout typically progress through standard
stages during its development?
a. Rough draft, comp, thumbnail, final mechanical
b. Thumbnail, rough layout, comp, final digital
c. Mechanical, rough draft, thumbnail, final comp
d. Thumbnail, illustration layout, rough layout, final mechanical
Branded entertainment is different from product placement in that it:
a. would not exist without the marketer’s support.
b. displays the brand in novel ways.
c. involves lower levels of exposure for a brand.
d. simply sells space for the brand’s presence.
Scenario 15-3
Stacey is making her weekly trip to the grocery store. She takes with her a National
brand coffee coupon worth 50 cents. While shopping she was asked if she would like to
try a slice of pizza from a sales person. After tasting it, the sales personal directs her to
where the brand is available. When Stacey arrives at her favorite brand of toothpaste,
she is delighted to find that she would receive a toothbrush along with the toothpaste
attached to the box for no charge. She then runs into a carboard cutout of an actor from
a medical drama that she watches on tv, with
a box full of pain relievers built into it. At her last stop, the cereal aisle, she notices that
a brand offers a chance to buy a T-shirt with a picture of the brand’s cartoon character.
The store gives Stacey a loyalty card for the toothpaste which she must produce the
next time she visits the store to purchase the product. This is an example of a _____.
a. push strategy
b. rebate
c. gift card
d. frequency program
The primary role for consumer sales promotion is to:
a. encourage long-term purchasing of a brand.
b. enhance the image of a brand.
c. elicit a purchase from a customer.
d. boost name recognition for a brand.
A rectangular ad for microwave popcorn appears at the top of the home page of your
favorite e-magazine. This is an example of a banner ad.
a. True
b. False
Scenario2-1
As one of the world’s largest computer and technology developers, Dell, Inc. has never
been a stranger to advertising. However, due to a consistent decline in market share, the
Texas-based company is looking to overhaul its advertising efforts for the first time in
years. In the past, Dell found success promoting its products as some of the most
inexpensive computer products in the market. However, the company’s new ad
campaign, which will be targeted toward more high-end users, will make no mention of
product price. The company is looking to reinvent its image and believes that the first
step in doing so is to revamp its outdated advertising campaign.
Dell decides not to use a full-service advertising agency because it would like its own
employees to take responsibility for the new ad campaign. However, fullservice
agencies do provide a number of advantages one of these advantages is that they:
a. are always large, employing thousands of people.
b. can provide the physical facilities for broadcast production.
c. have an array of talented professionals to meet all the needs of a client.
d. are the only way to create an ad campaign.