A leading sporting goods company calls a press conference to announce that the winner
of the National Football League’s Most Valuable Player Award has signed a contract to
endorse the company’s products. The advantage of using a press conference rather than
other tools is that it
a. virtually forces the national media to cover the story.
b. adds credibility and lends an air of importance.
c. is perceived as a proactive tool.
d. is easier to integrate into a IBP program.
What should always be a key goal of direct marketing today, one that many for-profit
businesses and not-for-profit organizations seem to forget?
a. to build a widespread mail-order operation
b. to create an image for the brand
c. to integrate the message with all other advertising efforts
d. to reach customers across the board rather than consumers in specific markets
A shoe manufacturer pays part of the media bill when a local shoe store features the
manufacturer’s brand in its advertising. What kind of advertising is this?
a. segmented
b. syndicated
c. co-op
d. preferred
Internet media, cross-promotions, product placements, buzz and viral marketing, and
movies as feature-length commercials are all forms of new media.
Who prepares the creative brief?
a. the client leader and the account executive
b. the owner(s) of the agency
c. the client brand manager and the head of the creative department
d. the account executive assigned to the campaign
Trial offers have the same goal as samples, except that trial offers
a. usually promote low-priced convenience goods.
b. are handed out in malls, retail stores, and other public places.
c. involve more expensive items.
d. arrive through mail or newspaper delivery.
Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo
into the market in several months. In test marketing, many consumers liked the product
but their comments indicated that it is different enough from existing brands that
significant promotion and information will be needed to convince them to switch from
their current brands. Helene Curtis has always used an objective-and-task approach to
develop advertising budgets. Due to these research results, the firm must now do a
detailed build-up analysis.The advertising agency for Helene Curtis is in the process of
doing a build-up analysis. This means it is
a. isolating the key costs in moving from awareness to preference to purchase of the
shampoo.
b. determining the cost of building up awareness of the new shampoo to a
predetermined level.
c. adding up each cost associated with a task identified in the advertising plan for the
shampoo.
d. determining the approximate time frame that will be necessary to meet all advertising
objectives in promoting the shampoo.
(Scenario 18-5) Scenario 18-5
An old adage states that all publicity is good publicity. However, Professors Jonah
Berger of the Wharton School, and Alan Sorensen and Scott Rasmussen of Stanford
found that there is such a thing as bad publicity. The colleagues studied the relationship
between bad publicity and its impact on music albums, books, and movies. In 2010,
they published their findings in an article in Marketing Science. After studying cases
involving the late Michael Jackson, Russell Crowe, and various authors, the colleagues
concluded that negative publicity can increase product sales. Michael Jackson sold
more albums after receiving negative media attention, and films starring Russell Crowe
received higher rankings following an incident in which he allegedly threw a cell phone
at a hotel employee. These high-profile stars actually thrived after receiving substantial
amounts of negative publicity. However, in many lower profile cases, negative publicity
hurt sales and product reception. The three colleagues conducted an analysis of The
New York Times’ reviews and book sales and found that negative reviews hurt sales of
books by well-established authors, but helped sales of books by relatively unknown
authors. After conducting their study, the authors found that conventional wisdom is
wrong: not all publicity is good publicity. But they did show that negative publicity can
sometimes be positive; it all depends on existing-product awareness.(Ned Smith, “Can
Bad Buzz Be Good?” Business News Daily, November 1, 2010)
One way to help firms implement a reactive public relations strategy and prepare for
possible negative publicity is to
a. identify any weaknesses in the firm’s operations or products that may negatively
affect relationships with its constituents.
b. promote goodwill.
c. prepare internal communications.
d. increase corporate advertising efforts.
Scenario 15-2
The Sounds Good recording company is getting ready to release the first compact disc
from its newest band, Planet Moon. Sounds Good’s last three releases have been dismal
failures, and the struggling company needs a quick influx of cash. The owners decide to
use sales promotions to move the Planet Moon disc through record stores and into
customers’ hands.
The displays commissioned by Sounds Good need to be set up and maintained. Any
record store that agrees to do this gets several copies of Planet Moon CDs and past
releases from Sound Goods for free. This is known as a(n)
a. incentive.
b. merchandise allowance.
c. maintenance exchange.
d. off-invoice allowance.
What was one of the government’s earliest restrictions that targeted specific techniques
and policies being used in programming and advertising designed for children?
a. the Children’s Food and Beverage Advertising Initiative
b. the Nutrition Labeling and Education Act
c. the “Cheeseburger Bill”
d. the Children’s Television Act
Which organization is the newest addition to the federal government’s regulatory team
regarding advertising issues?
a. the Library of Congress
b. the Federal Communications Commission
c. the Consumer Finance Protection Agency
d. the U.S. Patent Office
Scenario 17-3
As the number of firms utilizing direct marketing continues to grow, so too does the
number of consumers opposed to the methods often described as “intrusive.” To combat
the growing number of opposed consumers, marketers need to find creative new ways
to optimize their direct marketing campaigns. One outlet firms are beginning to
experiment with is social media. Executives understand that many consumers view a
company’s Facebook page more often than the company’s home page, so they’ve grown
to realize that setting up some form of an email opt-in on social media sites is a great
way to build marketing databases. In addition to opt-in sections, social media allows
businesses to interact with consumers, which may make them less inclined to respond
negatively to a company’s direct marketing efforts. By utilizing social media more often
in the future, a number U.S. companies hope to build stronger and more useful
marketing databases.
Which of the following is an essential application of the marketing database?
a. keeping close tabs on consumers to ensure their loyalty
b. reinforcing and recognizing your best customers
c. degrading and ignoring customers that are not providing consistent business
d. notifying customers of minute changes to various products and services
The United States federal government spends more than $2 billion annually on
advertising and promotion. Most of that money is spent in what two areas?
a. lottery advertising and armed forces recruitment
b. campaign advertising and armed forces recruitment
c. armed forces recruiting and social issues
d. social issue advertising and political campaign advertising
Display/banner ads and websites allow advertisers to measure with some accuracy the
actual individual responses to an ad, something that is unattainable in current forms of
traditional media.
Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on
Toyota Camrys. He was interested in that model because he had seen a number of
television and magazine ads describing the car’s features and reputation for reliability.
After closely examining the stickers, Joe noticed a line that said “Dealer Promotion
Allowance-$125.00.” Joe asked a salesperson what that meant. The salesman replied
that it was a charge that helped the dealership pay for local advertising to encourage
consumers to shop at that particular dealer. After further discussion, Joe learned that
almost 5 percent of the cost of the vehicle comes from expense for national and local
advertising.Joe saw a television ad that stated the Toyota Camry was “the world’s best
car for reliability.” The use of such absolute superlatives in advertising is
a. an illegal use of advertising language.
b. unethical but legal.
c. a legal and quite common use of exaggeration.
d. unfair advertising but not deceptive advertising.
A company is found to be making a technically “true” but unfair comparison to a
competitor’s product. It may be required to add information in future ads clarifying its
benefits against those of a competitor in a balanced and fair way. This is called
a. vertical comparative advertising.
b. stealth sponsorship.
c. a trade allowance.
d. a disclaimer.
Once they decide they need something, what is typically the first option for consumers
to take, and sometimes all that is needed, as they begin to think about a product
purchase?
a. developing a consideration set
b. conducting an internal search for information
c. conducting an external search for beliefs
d. determining evaluative criteria to use
What type of digital media has emerged as the most significant form of consumer
control over information creation and communication?
a. Web advertising
b. social media
c. interactive television
d. mobile marketing
The goal of achieving a synergistic effect through IBP is to get various media to
a. have an equal level of reach and frequency.
b. minimize the number of different media needed.
c. make sure that any marketing effort uses all media available.
d. build on each other’s efforts and ensure coherent and timely communication.
A marketer wonders aloud why salespeople no longer simply approach their prospects
with the direct intention of making a sale, but instead spend time analyzing all their
possible needs and desires. Her colleague in the next cubicle thinks about this as well,
and they talk. They realize that the answer is because today’s salespeople are expected
to
a. be problem solvers who work in partnership with customers.
b. be technical experts with experience in database management and analysis.
c. take orders only after confirming the appropriateness of each sale.
d. do everything that was once done by several departments.
Comparison ads are rarely seen outside the United States, usually due to cultural
customs or legal restrictions of other nations.
A frequent criticism of social anxiety ads is that historically they have ignored an entire
population-namely, women.
How do media organizations measure their audiences to obtain an accurate account of
their readers or viewers? Choose two of the major classes of traditional media, then list
and briefly explain at least two methods of audience measurement used for each format.
If you can, note the companies that provide these measurement services.
Viral marketing involves promoting a brand by stimulating professionals or “experts” to
discuss it with consumers online or in person.
The one word that could be used to summarize the popularity of direct marketing
among today’s consumers is convenience.