978-0078028861 Chapter 13 Solution Manual

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1 Chapter 13

2 Advertising, Sales Promotion, and Public Relations

1.1 ETHICAL DIMENSION 13

Ethical Perspective

1. Marketers: Should a marketer be allowed to use information from an individual’s social

networking profile? Is targeted messaging based on analysis of personal information ethical?

2. Teenagers: Should teenagers be able to provide false information to gain access to Web sites

restricted by age or some other characteristic?

1.2 KEY TERMS

advertising wearout When customers become bored with an existing advertising campaign.

advertising response function An effect in which, beyond a certain ad spending level,

diminishing returns tend to set in.

institutional advertising Advertising that promotes industry, company, family of brands, or

some other issues broader than a specific product.

product advertising Advertising designed to increase purchase of a specific offering.

pioneering advertising Advertising intended to stimulate primary demand, typically during the

introductory or early growth stages of an offering.

competitive advertising Advertising intended to build sales of a specific brand through shifting

emotional appeal, persuasion, and providing information.

comparative advertising Advertising in which two or more brands are directly compared

against each other on certain attributes.

reach The percentage of individuals in a defined target market that are exposed to an ad during a

specific time period.

frequency The average number of times a person in the target market is exposed to the message.

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advertising execution The way an advertisement communicates the information and image.

clutter The level of competing messages on a particular medium.

trade show An industry- or company-sponsored event in which booths are set up for the

dissemination of information about offerings to members of a channel.

cooperative advertising and promotion When a manufacturer provides special incentive

money to channel members for certain promotional performance.

publicity An unpaid and relatively less personal form of marketing communications, usually

through news stories and mentions at public events.

buzz Word-of-mouth communication generated about a brand in the marketplace.

event sponsorship Having your brand and company associated with events in the sports, music,

arts, and other entertainment communities.

crisis management A planned, coordinated approach for disseminating information during times

of emergency and for handling the effects of unfavorable publicity.

1.3 APPLICATION QUESTIONS

1. Consider the concept of advertising wearout.

a. What is advertising wearout?

b. What do you think are some causes of the wearout?

c. Come up with as many ads as you can that, for you, are “worn out?” Can you recall how

long each ad interested you before wearout begin to set in?

2. Review Exhibit 13.1 on the Top 20 U.S. Advertisers.

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a. Look at those whose advertising went down by double digits from the prior year.

Speculate about what might have caused those advertisers’ expenditures to decline.

b. Do the same analysis of those whose advertising went up by double digits from the prior

year. What do you suppose might have caused each to go up?

3. Review the Common Approaches to Advertising Execution (Exhibit 13.2) and Pros and Cons

of Key Advertising Media (Exhibit 13.3). Review some ads in any three of the seven

different types of media identified, watching for examples of the different execution

approaches.

a. Make notes about the ads you reviewed and the different types of media execution you

witnessed. Which ads do you think were the most effective? Why?

b. For the same ads, based on the chapter’s list of pros and cons for each, identify specific

examples of ads for which one or more of the pros and cons apply.

c. Share your findings with another student or with the class.

MANAGEMENT DECISION CASE: Advertising to Gain or Keep Market Share in the

Hypercompetitive Insurance Space

Questions for Consideration:

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1. What types of advertising are being used by these insurance companies? Pick two of the

insurance companies listed, go online and review their current ad campaign, describe their

ads, and then indicate if they are using product, institutional, pioneering, or comparative

advertising. Be sure to justify your selection.

2. Many of the ads for insurance referred to in the case are primarily transmitted to the target

audience using television as the medium. However, the proliferation of DVRs means that

fewer people are actually watching the ads in real time and instead are fast- forwarding

through them to get to the show content. With that in mind, what other media do you

recommend that these companies use to reach their target audience? That is, how should they

integrate the marketing communications?

3. Take a closer look at State Farm. What advertising strategy do you recommend it follow to

distinguish itself from its competitors? Be sure you discuss the type of advertising, the

executional style, and the type of media along with a justification for your choices.

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