978-0134492513 Chapter 15 Solutions Manual

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Discussion Questions

 15-1 Explain the decisions marketing managers make when developing an advertising

program. (AACSB: Communication)

15-2 By what primary purposes are advertising objectives classified? Explain. Provide two

examples of each. (AASCB: Communication; Reflective Thinking)

Answer:

15-3 Discuss how marketers can break through the cluttered advertising environment. (AACSB:

Communication)

Answer:

15-4 What is an advertising agency? Discuss the changes in advertising agencies today compared

with how they operated in the past? (AACSB: Communication)

Answer:

 15-5 Define public relations and explain the many public relations functions. (AACSB:

Communication)

Critical Thinking Exercises

15-6 Search YouTube for three of your favorite television commercials, each using a different

execution style. For each ad, identify the execution style used and the audience targeted. Is it

a good ad? Be prepared to present the commercials and support your conclusions. (AACSB:

Communication; Use of IT; Reflective Thinking)

Answer:

 15-7 Advertising objectives can be classified by their primary purpose—to inform, persuade,

or remind. In a small group, locate one advertisement that primarily informs, one that

persuades, and one that reminds. Explain how each ad meets the desired objective. (AACSB:

Communication; Use of IT; Reflective Thinking)

15-8 In early 2016, the Wounded Warrior Project suffered a major blow to its fundraising when

reports surfaced suggesting that the nonprofit organization spent too much of its money on

travel, conferences, and high-end events rather than direct assistance to wounded veterans.

Research this case. Was the Wounded Warrior Project’s public relations response to the

alleged misspending accusations effective in reaching out to its donors and other audiences?

Why or why not? How is social media changing the public relations process? (AACSB:

Communication; Use of IT; Reflective Thinking)

Answer:

APPLICATIONS AND CASES

Online, Mobile, and Social Media Marketing: Facebook Audience Network

Facebook has 1.44 billion monthly users, and a large majority of users typically visit the site

daily on a mobile device. What started as an online social network allowing people to connect

with each other has transformed into a behemoth media mogul that promises to be a

game-changer in mobile advertising. Facebook announced its new mobile ad platform called

Audience Network to deliver targeted mobile ads for advertisers. While there are other mobile ad

platforms (Google is the dominant player), Facebook has a treasure trove of data that is useful

for advertisers. Google is strong in search data, but Facebook is part of our lives. Facebook has

been placing ads on its site for advertisers, but now Facebook will be pushing those ads to

third-party apps. This is a win-win-win situation for advertisers, app developers, and Facebook

because advertisers get their mobile ads to people based on very personal information, app

developers get ad revenue, and Facebook gets a cut of the ad revenue for placing the ad. And it’s

no small cut—in just the last quarter of 2015, Facebook earned $5.6 billion in mobile ad revenue.

That’s 80 percent of Facebook’s overall ad revenue.

15-9 Compare and contrast Facebook’s, Google’s, and Twitter’s ad networks. Which is most

effective for advertisers? (AACSB: Communication; Reflective Thinking)

Answer:

15-10 Mobile advertising is one of the fastest growing sectors of digital advertising, but how is

mobile advertising effectiveness measured? Research this issue and create a report of your

findings. (AACSB: Communication; Reflective Thinking)

Answer:

Marketing Ethics: Native Advertising

Native advertising—articles paid for and/or written by a brand that appear on a publisher’s site—

has emerged as a powerful and popular new marketing content tool over the past few years.

Media companies such as BuzzFeed, The New York Times, The Wall Street Journal, and The

Atlantic have all invested heavily in the creation and distribution of native advertisements (also

called sponsored content) on behalf of brands, with many charging more than $100,000 for a

native advertising campaign.

Such sponsored content is designed to blend with the look and feel of the other content on a site,

and written disclosures such as “Sponsored” or “Advertisement” are often hard to see even if

consumers are looking for them. So it’s no surprise that consumers often can’t tell the difference

between paid brand content and regular articles. Marketing content agency Contently recently

surveyed adult consumers, showing them one brand- sponsored online content piece from The

New York Times, The Wall Street Journal, The Atlantic, The Onion, BuzzFeed, or Forbes or an

actual article on Whole Foods in Fortune. In four out of the six groups shown a native

advertisement, a strong majority said they thought the ad was an article.

15-11 Search the internet to find examples of native advertising or other sponsored content.

Could such content mislead consumers? Are companies responsible for ensuring consumers

understand and can distinguish between sponsored content and other content? Explain.

(AACSB: Reflective Thinking, Communication; Use of IT)

Answer:

15-12 Are the FTC’s current regulations and guidelines regarding online advertising adequate

for regulating native advertising and sponsored content? Is it likely that the FTC will issue

new guidelines or regulations? Explain. (AACSB Communication; Reflective Thinking)

Answer:

Marketing by the Numbers: C3, CPM, and CPP

Nielsen ratings are very important to both advertisers and television programmers because the

cost of television advertising time is based on these ratings. A show’s rating is the number of

households in Nielsen’s sample that are tuned to that show divided by the number of

television-owning households—115.6 million in the United States. One rating point represents 1

percent of the households (HHS) in the TV market. Nielsen’s TV ratings are referred to as C3

and measure viewers who watch commercials live or watch recorded commercials up to three

days later. A common measure of advertising efficiency is cost per thousand (CPM), which is the

ad cost per thousand potential audience contacts. Advertisers also assess the cost per rating point

by dividing the ad cost by the rating. These numbers are used to assess the efficiency of a media

buy. Use the following average price and rating information for programs that are shown at the

8:00 p.m. hour on network television to answer the questions:

Program Cost per 30 second spot C3 Rating

Sunday Night Football $594,000 7.9

The Big Bang Theory $317,000 5.1

The Voice $264,575 3.9

How I Met Your Mother $168,435 3.2

Agents of S.H.I.E.L.D. $169,730 3.1

15-13 How many households are expected to watch each program? (AACSB: Communication;

Analytical Reasoning)

Answer:

15-14 Calculate the cost per thousand (CPM) and cost per point (CPP) for each program. How

should advertisers use these measures when planning a television media buy? (AACSB:

Communication; Analytical Reasoning; Reflective Thinking)

Answer:

CPM and CPP give advertisers an indication of the efficiency of a TV buy, but comparing

the CPMs and CPPs of these specific shows must be done with caution because these

shows are scheduled at the same time (except Sunday Night Football), but on different

days and may have different audience makeups. CPM and CPP comparisons should be

done on a similar basis, such as comparing programs appearing on Monday night at 9:00

p.m. EST with similar audience breakdowns in terms of demographic variables such as age

and gender.

Company Case Notes

Allstate: Bringing Mayhem to the Auto Insurance Advertising Wars

Synopsis

Once a group of massively boring companies, auto insurance firms were not known for creative

advertising. That has changed dramatically in the past decade as all of the top companies have

developed creative and entertaining campaigns based on widely recognized personality symbols.

Each has also poured more and more money into advertising and promotion in an effort to grow

or protect market share. This case follows Allstate’s efforts by extended the longest-running

slogan to the Mayhem campaign.

Teaching Objectives

The teaching objectives for this case are to:

1. Consider the past, present, and future of advertising and the factors that are affecting it.

2. Analyze a campaign based on the elements of a creative message.

3. Understand the factors involved in selecting advertising media.

4. Examine factors for assessing advertising effectiveness.

5. Gain practical experience by designing an advertisement for the Super Bowl and

integrating it to a full campaigning.

Discussion Questions

15-18 Why has Allstate’s “good hands” slogan withstood the test of time to become advertising’s

longest-running slogan?

A strong emotional appeal is the core of a good campaign. This is particularly true when it is

15-19 Analyze Allstate’s Mayhem ads based on the process of creating an advertising message as

outlined in the text (for the latest Mayhem ads, check

www.allstate.com/mayhem-is-everywhere.aspx).

There are numerous different examples of Mayhem ads that students can analyze. But each of

them follows a very consistent template. Thus, all can be applied to the same rubric with

similar results.

Breaking through the clutter. As the text points out, “today’s content must be better planned,

more imaginative, more entertaining, and more emotionally engaging.” It would seem that

with each iteration of Mayhem, the creativity only increases. With examples like Cheap

Bungee Cord and Tailgate Grill Fire, it is apparent that these ads were timed to coincide

15-20 Discuss issues of selecting advertising media for the Mayhem campaign. How might this

process differ from that of campaigns for other companies?

The main battleground in the insurance advertising wars is television. The 30-second spot ad

15-21 Based on the information in this case, how might Allstate measure the effectiveness of the

Mayhem campaign?

Because the core of the campaign is TV spot ads, traditional measures like surveys can be

15-22 Has the Mayhem campaign been effective? Support your answer.

The campaign has all the right elements as a winner—award-winning, creative, likeable, and

Teaching Suggestions

Prior to discussing the case, have students select their favorite auto insurance advertisements.

Have them do so prior to coming to class. Select a few to come forward and play those ads for

the class. Discuss whether or not these ads are merely entertaining or if they actually strengthen

the brand and provide advertising return-on-investment.

This case also works well with the consumer behavior chapter (Chapter 5) and the integrated

marketing communications chapter (Chapter 14).

Go to mymktlab.com for the answers to the following Assisted-graded writing questions:

15-23 Discuss the characteristics advertising appeals should possess to be effective.

15-24 Name and describe the various execution styles for presenting messages and provide an

example of each style different from the ones in the chapter.

ADDITIONAL PROJECTS, ASSIGNMENTS, AND EXAMPLES

Projects

1. Locate a Sunday newspaper (they are always full of advertisements). Remember the

conversation on advertising objectives. Now find two examples of advertisements that

inform, persuade, and remind. (Objective 2)

2. Find an example of a promotional campaign that has employed messages through at least

three different media types. How does each media type affect the message being

communicated? (Objective 2)

3. Go to Coke’s Web site (www.cocacola.com). From their U.S. site and their various

international sites (the links are contained on their homepage), compare their

advertisements here and abroad. (Objective 2)

4. Visit www.benjerry.com. Find all aspects of this Web page that are public relations

oriented and describe them. (Objective 3)

5. Johnson & Johnson made very good use of public relations to introduce and grow the

Aveeno Positively Ageless project line. Take a look at the Aveeno homepage and discuss

the public relations activities in which they are currently involved (see

http://aveeno.com/). (Objective 4)

Small Group Assignments

1. Form students into groups of three to five. Each group should read Real Marketing 15.1:

Microsoft’s Comparative Advertising: “I Just Can’t Do That on My Mac.” Answer the

following questions. (Objective 2)

a. Microsoft has used comparative advertising several times. Was the advertising

effective in each of the three examples described? Explain why or why not.

b. Are there disadvantages to Microsoft in using this kind of marketing appeal? And on

a repeated basis for different products?

c. What other kind of advertising would you suggest for Microsoft, whether in addition

to or instead of, comparative advertising? Why did you suggest the approach you did?

2. Form students into groups of three to five. Each group should read the opening vignette

to the chapter on the GEICO campaign. Each group should then answer the following

questions.

(Objective 2)

a. Through its catchy advertising campaign, which advertising objectives did GEICO

pursue? As the campaign was modified, did the objectives change?

b. Can GEICO use the same advertising campaigns indefinitely? Why or why not?

c. If not, what ideas would you suggest next for the insurance giant?

Individual Assignments

1. Saatchi & Saatchi is one of the most successful advertising companies. Take a look at

their Web site (www.saatchi.com/) and examples of the advertising campaigns they have

created over the years. Find and discuss examples of both informative advertising and

persuasive advertising. (Objective 2)

2. President Barack Obama made excellent use of public relations as a candidate for the

presidency in 2008 and 2012. Throughout his terms in office, he continued to use public

relations activities. Review the six public relations functions (p. 460) and discuss how the

Obama administration made use of each. (Objective 3)

Think-Pair-Share

Consider the following questions, formulate an answer, pair with the student on your right, share

your thoughts with one another, and respond to questions from the instructor.

1. What is the main difference between reach and frequency? Write a definition of each.

(Objective 2)

2. What are the advantages and disadvantages of the various types of media? (Objective 2)

3. What form of media do you believe would be best for reaching a 70-year-old retired

schoolteacher? For reaching a 12-year-old girl? (Objective 2)

4. How is public relations different from advertising? (Objective 3)

5. List and briefly identify the major public relations tools. (Objective 4)

6. How can public relations be used on the Internet? (Objective 4)

Outside Examples

1. Examine the advertising for cigarettes over time. Spend some time researching how

advertising for cigarettes has changed over the past 50 years. Look at old ads from the

1950s and 1960s and compare them with modern ads. How has the message changed?

During which time frame do you believe the advertising to be the most effective? Why?

(Objective 2)

Possible Solution:

This will be a fun exercise for students who may not previously have been exposed to

2. Comparative advertising can be a very powerful form of advertising—if used correctly.

Watch some of the Apple iMac ads comparing (favorably) a Mac to a PC. Discuss what

makes these ads so effective. (You can find many of the ads on Apple’s Web site:

www.apple.com.) (Objective 2)

Possible Solution:

Much has been made of this ad campaign. Apple has gotten an untold amount of free