978-1337116800 Chapter 16 Solution Manual Part 2

subject Type Homework Help
subject Pages 12
subject Words 6375
subject Authors Carl Mcdaniel, Charles W. Lamb, Joe F. Hair

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Chapter 16: Advertising, Public Relations, and Sales Promotion
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After each student issues a policy statement citing the stance the company is taking, the
classroom (press conference) is opened up to other students. Here is where the fun begins . . .
Selected students are previously chosen by me (the instructor) to role-play specific publics and to
raise critical and timely questions to the Public Relations Director standing before them. For
example, I will have one young lady play a production worker who feigns crying because she is
afraid that as a single parent with four children to support, should XYZ Corporation close, how
would she cope? Other student role plays might include a union delegate seeking job security for
member workers, a major shareholder worried that the price per share of company stock will
decline, and even a local legislator trying to look good to his constituents. Such questioning put
to our PR Director will provide a very real crisis situation forcing him to think quickly and
answer carefully. As the instructor, you can encourage your students to give you scenarios to
play out.
Teaching Tip for this Exercise: Always select at least four volunteers to allow different
viewpoints and approaches. Ask each student to wait outside of the classroom to guarantee that
each response will not be influenced by the preceding students. However, after each student
completes his turn in the line of fire, let him rejoin the class to observe the others who follow.
Here is an example:
Chemo Technology Corporation
Riverhead, N.Y.
Situation: Chemco Technology Corporation is a large metalworking manufacturer that employs
over 500 Nassau and Suffolk residents in Riverhead, L.I.
Founded in 1948, this publicly held company has seen its share value increase from $3 to $67
(plus annual dividends). Many shareholders live on Long Island and admire the company. Now
the company is facing its greatest crisis to date. Chemco has been getting rid of poisonous zinc-
plating residue by dumping them into a large field adjacent to the factory. This toxic fluid has
slowly infiltrated ground water that feeds into Hampton Bays. Two days ago, 25,000 dead trout
were found floating in the creek, killed by the cyanide in the waste fluid that was not adequately
treated. Drinking water could be contaminated, too.
The New York State Environmental Protection Agency is planning to indict the company, and
the media is publicizing the incident.
Your Challenge: You are Director of Community Relations at Chemco Technology Corporation.
Management has designated you to issue a policy statement at an open press conference
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tomorrow morning.
Prepare a written statement based on a plan of action to deal with the crisis.
Your Objective: To restore public, employee, and shareholder confidence and pacify the
authorities.
Ethics Exercise
Creative Advertising Agency has been asked to help its largest client improve its corporate
image after a highly publicized product recall. The client requests a television advertisement
highlighting the companys generous donation of products to low-income families. The only
such donation the company has made, however, is a donation of the recalled products. The
account executive fears promoting the donation could cause further consumer backlash, but the
client continues to press for the spot.
1. Should Creative Advertising meet the clients expectations (i.e., create the
promotional spot) or risk losing the account? Explain your reasoning.
Students answers will vary. This question elicits a free response from the students. A way
2. What does the AMA Code of Ethics say about truth in advertising? Go to
http://www.marketingpower.com, and review the code. Then write a brief paragraph
on what the AMA Code of Ethics contain that relates to this issue.
Students answers will vary. The AMA Code of Ethics is very clear in its position on truth
Video Assignment: BoltBus
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BoltBus is Greyhounds curbside, express bus service. BoltBus operates primarily in the
Northeast between major hubs, with some other service in the Northwest. This clip covers how
BoltBus reaches its target markets through advertising, promotion, and social media.
1. Which of the following appeals would be the BEST choice for BoltBus to use in its
advertising?
a. Health
b. Fun and pleasure
c. Environmental consciousness
d. Vanity and egoism
2. Identify which of the following would be the correct attribute/benefit combination for
BoltBus.
a. Boltbus is a curbside bus service operating on the Southwest Airlines model that
gives customers reservations and comfort!
b. Boltbus is a curbside bus service operating between major metropolitan areas that has
Wi-Fi and plugs for each seatnot to mention great leg room!
c. Boltbus is a curbside bus service operating between major metropolitan areas that
gets you there quickly, comfortably, and with a smile!
d. BoltBus is an express type bus service that lets you order your ticket online and
avoid bus stations by hopping on the bus from the street corner!
3. Which of the following would be a good example of BoltBuss unique selling proposition?
a. Low-cost travel, from one curb-side to the next, no terminals necessary!
b. Getting you there without a carewith plenty of money to spare! (Not to mention
extra battery life from our plugs and the roomy seats with extra leg room)
c. Nonstop service from your favorite cities, at a price that wont break the bank!
d. We can get you anywhere, just show us how to go, well make sure youre able to
show!
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: B
BoltBus is not the only nonstop bus (or travel) service between cities. The best choice here
is to highlight the on-bus features, such as leg room and plugs.
4. A loyalty program, such as the one used by BoltBus, is an example of:
a. a type of trade allowance
b. a product benefit
c. an advertising appeal
d. a tool for consumer trade promotion
5. Based on what you saw in this video, which type of consumer does BoltBus target?
a. Loyal customers
b. Price buyers
c. Brand switchers
d. Competitors customers
6. What is BoltBuss primary media selection for advertising?
a. The Internet
b. Radio stations
c. Billboards
d. Magazines
Case Assignment: KFC
Several years ago, but already many years after the company stopped featuring the real Colonel
Sanders in their ads, Kentucky Fried Chicken officially changed their name to KFC. The
intention of the change was to distance the brand from the exclusive image of fried chicken, as
the menu had expanded over the years to include grilled products and sides. The plan backfired,
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instead creating rumors that the company could not legally call it Kentucky “fried chicken”
because it contained mutant chicken parts.
However, in recent years, KFC has decided that instead of distancing themselves from the
Colonel, they should embrace the founder. They call it their “re-Colonelization of KFC.”
“We were thinking about, ‘What’s our North Star?’ And our North Star is the Colonel,
and doing things the hard way. When we’re at our best, the Colonel is at the center of everything.
When he passed, we started losing our way a little bit,” said Kevin Hochman, KFC’s chief
marketing officer.
With that in mind, KFC launched an advertising campaign featuring a variety of Colonel
Sanders impersonators. The strategy behind the campaign is to have multiple colonels, each
iteration being tied to a different promotional window.
The campaign launched in 2015, featuring Saturday Night Live alumnus Darrell Hammond
playing the Colonel. His portrayal was very dry. If you weren’t paying attention, the commercial
looked just like an old one starring the real Sanders. But those who were paying close attention
began wondering what was going on.
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
[Riggle] was born in Louisville, Kentucky and served our country as a Lieutenant Colonel in the
Marines. It doesn’t get any more real than that,” said Hochman.
The campaign has paid off for Yum Brands (KFC’s parent company). In July 2016, KFC
reported its eighth consecutive quarter of same-store sales growth, after a period of slumping
sales. "So far the response has been about 80% positive, 20% hate it," said Greg Creed, CEO of
Yum Brands. "And I am actually quite happy that 20% hate it, because now they at least have an
opinion."
Hochman said the company is trying to embrace its founder, not just in advertising but in
philosophy. They will be subtly moving back to the name “Kentucky Fried Chicken.”
Sources: D. Mann, “KFC and the four colonels: It’s all part of a plan,” Louisville Business First,
July 1, 2016, accessed October 20, 2016,
http://www.bizjournals.com/louisville/news/2016/07/01/kfc-and-the-four-colonels-its-all-part-of-
a-plan.html; F. Holznagel, “George Hamilton is the new Colonel Sanders, if you can believe
that,” Who2, June 30, 2016, accessed October 20, 2016, http://www.who2.com/george-hamilton-
is-the-new-colonel-sanders-if-you-can-believe-that/; J. Totey, “George Hamilton is the ‘Extra
Crispy Colonel’ – why KFC keeps switching the actors,” Inquisitr, June 27, 2016, accessed
October 20, 2016, http://www.inquisitr.com/3251648/george-hamilton-is-the-extra-crispy-
colonel-why-kfc-keeps-switching-the-actors/; K. Taylor, “KFC just revealed a new Colonel
Sanders,” Business Insider, September 8, 2016, accessed October 20, 2016,
http://www.businessinsider.com/kfc-just-revealed-a-new-colonel-sanders-2016-9.
TRUE/FALSE
1. How a company chooses to advertise is ultimately of no real consequence to anyone but them.
2. George Hamilton’s “Extra Crispy” KFC commercial is part of an advertising campaign.
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3. The Rob Riggle commercials are considered advergaming because they play during football
games and are targeting football fans.
4. Airing fried chicken commercials during football games is a wise move for KFC as that
timeslot has a large reach.
5. The rumor that “Kentucky Fried Chicken” had to legally change their name to “KFC” because
of the use of mutant chicken parts was a public relations nightmare.
MULTIPLE CHOICE
1. Darrell Hammond’s and Norm McDonald’s KFC commercials served as __________
advertising.
a. institutional
b. product
c. advocacy
d. pioneering
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. Jim Gaffigan’s commercial served as __________ advertising.
a. institutional
b. product
c. advocacy
d. pioneering
3. KFC’s main medium for their new colonel campaign was __________.
a. magazines
b. television
c. radio
d. outdoor media
4. Which of the following is an example of a seasonal media schedule?
a. KFC focusing their advertising campaigns to football season.
b. Coopertown sunscreen being advertised during summer.
c. Sudafed cold tablets advertising heavier during cold season.
d. All of these are examples of a season media schedule.
5. Showing football players eating KFC at a party in a major Hollywood sports film would be an
example of __________.
a. new product publicity
b. product placement
c. consumer education
d. sponsorship
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
company name to appear in a movie, television show, radio program, magazine, newspaper,
video game, video or audio clip, book, or commercial for another product; on the Internet; or at
special events. Sponsorship is a public relations strategy in which a company spends money to
support an issue, cause, or event that is consistent with corporate objectives, such as improving
brand awareness or enhancing corporate image.
PTS: 1 OBJ: LO: 16-5 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
Great Ideas for Teaching Chapter 16
Gary M. Donnetty, Casper College
An Advertising Project to Stimulate Downtown Business
The following project has been successful in teaching principles, and the students seem to enjoy
it.
Assignment
You will develop an advertising campaign for a downtown business, for a specific time period
and a specific budget.
Your group will contact a business and get the time period the campaign will run and the budget,
and you must stay within the budget.
Specific Guidelines: (These must be included somewhere in the project.)
1. Establish written goals for the campaign.
2. Define the market segment your campaign will appeal to and why.
3. Select the media you will use and explain why.
4. Develop sample ads for the chosen media and explain each ad and commercial in detail
regarding the message you are trying to get across and to whom. Also, include the cost of
each ad and commercial and state the time period they will run.
5. Develop an evaluation method for determining if the campaign was successful (if your
campaign gets used).
Be creative and include anything else in the campaign that you think will make the campaign
successful. You may utilize any outside resource that you can find.
This project is your final examination, so do a complete and thorough job. The project will be
graded by your instructor and the manager of the business for whom the project is developed.
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This will give you the fairest and most objective grade possible.
The businesses will be able to keep the project if they choose and use any or all of the project for
their own advertising.
The project is required for you to get actual hands-on experience in developing advertising and
experience the problems of working within budget limitations and still get the maximum amount
of return from the advertising dollar spent. This project can give you the best insight possible
into retail advertising.
Suggestion: Do not wait to get started on this project. It will take time to do an adequate job.
While working in groups, you will also learn something about group dynamics and some of the
problems in trying to get anything done in a group, especially a project of this size. If you as a
group feel that a member or members of your group are not fulfilling their part or portion of the
workload, the group and the instructor will meet privately and come to a decision as to what will
be done. This project will constitute a large portion of your grade, so it is the best policy for all
concerned to be honest and straightforward with each other from the very beginning.
Information to Cooperating Business
1. Students are to develop an advertising package (campaign) for you for a period of time
chosen by you. They will need a realistic budget from which to work.
2. The students may need to get some additional information about the store regarding peak
seasons, etc., and possibly even some ideas as to last years expenditures for the same
period of time.
3. The students should be given only basic information, as they are the ones who must learn
to develop advertising.
4. You will be involved in grading the project when it is completed. The project is the
students final exam.
5. You may keep the project when it is completed and use any ideas, ads, or commercials that
were developed in the advertising package.
In the past, grading has posed somewhat of a problem for cooperating businesses. The following
are the suggested criteria for evaluation:
POOR
FAIR
AVG.
EXCELLENT
Was the project well planned?
Were the ads and copy well
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done?
Did the students use good
judgment?
Were the objectives of the
project realistic and feasible?
Your cooperation with this is appreciated by the students, the college, and more so by the
instructor. It allows me to provide the students with a learning experience that cannot be
achieved in the classroom alone.
Richard M. Lei, Northern Arizona University
Developing In-Market Case Studies for Advertising Students
Team projects in the study of advertising are nothing new, but the NAU capstone course offers
an important twist. The class is broken randomly into competing agency teams, each consisting
of five to seven individuals. There are no tests or exams in the classthere isnt even a textbook.
The entire semesters activity is focused around winning the new account for the team.
Unlike many case studies classes, the winning campaign is ultimately produced and run in the
media, which provides the student with an important portfolio piece and valuable real-world
experience. This paper discusses two of the initial in-market cases sponsored by America West
Airlines and Dial soap.
Selecting a Sponsor
Prior to the start of the semester, the instructor solicits for sponsors. The selection of a sponsor is
a critical decision in the success of this program.
Industry contacts become critical in obtaining sponsorships, and the instructor should endeavor
to use local ad clubs, marketing organizations, internship sponsors, and alumni as recruiting
pools. An important consideration is the reputation of the sponsor. High profile sponsors, such as
major consumer brands, are of greatest value to the students. Because students tend to leave the
local market after graduation, being able to show a portfolio project for a well-known sponsor
like Dial soap has much more impact than for a small local advertiser.
The First Two In-Market Cases at NAU
The first two projects implemented in this capstone course at NAU were sponsored by America
West Airlines during 198889 and Dial soap during 198990. Each campaign proved to be both
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challenging and motivating for the students . . . and a lot of work.
America West Airlines, a Phoenix-based regional air carrier, agreed to sponsor the first
campaign and back the winner with a media and production budget of $5,000. For perspective,
this translates to a national rate of $2,000,000. The campaigns objective was to improve load
factors for inbound and outbound flights servicing Ragstaff. In order to coincide with peak
traveling months, the campaign was scheduled to run during the spring of 1989.
A total of 30 seniors enrolled in the class, which was split into five competing agency teams.
Teams were required to meet with the instructor once per week to review a status report and then
could meet independently at their own discretion.
Early in the semester, America West management conducted a client meeting at the university
and provided detailed marketing, advertising, and competitive information. America West
carefully postured themselves as a demanding client who would not accept below-standard work
from anyone, including students. Student teams were expected to conduct their own research,
develop a creative strategy, formulate media plans, and ultimately recommend creative
executions.
America West pledged to back the campaign with a $5,000 budget if they believed the winning
campaign to be executable and well conceived. Presentations to the client were scheduled in
December 1988 prior to the semester break.
The semester was divided into a series of building block assignments, each designed to move the
student teams through the campaign development process and to culminate with the client
presentations.
The role of the instructor became that of a facilitator and consultant. At regular intervals, team
leaders and the instructor met to discuss progress and issues relating to the campaign.
Presentation rehearsals were scheduled approximately 10 days prior to the client meeting, with
overheads, creative board mockups, and other presentation materials required. Each team was
videotaped, and the videos were viewed later for critique purposes. The client had expected the
student teams to be strongest in creative and weakest in the situation analysis section.
Interestingly, the opposite was true in that students did an excellent job in understanding the
complexities of the market and in defining positioning alternatives for America West. They
developed rather ordinary creative executions.
The winning campaign was chosen largely on the strength of the marketing analysis and overall
thoroughness of the project. The goal of communicating that California is Closer than Ever
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was highly executable and allowed focus around America Wests strengths (convenient
scheduling, amenities, and large, comfortable planes).
After reviewing the presentations and leave-behind materials, America West agreed to sponsor
the project through the production and placement of media.
The Dial soap project was executed in much the same way as that for America West. In many
regards, this was an easier campaign for students to develop because they had the advantage of
working with a physical product, so they could conduct store checks, organize use tests, and
conduct focus groups.
Dial management approved use of a campaign entitled Dialology that was designed to improve
brand share in the western United States, which is a relatively underdeveloped area. Like
America West, Dial attended a presentation at the end of the fall semester at which the student
team recommendations were made. Dial also agreed to proceed on the production and media
placement segment of the project, and during the spring of 1990, students enrolled in the second
phase and began production of newspaper advertising targeted at college students. Coupon-
bearing ads ran in Flagstaff and Tucson, Arizona, during May and June 1990.
Grading Criteria
Grading this course was completed against a predetermined list of criteria that was agreed to by
the sponsor and instructor. Key elements included the following:
I. Situation Analysis 20 points
Did the team understand the market?
Did they draw reasonable conclusions?
Did they identify a key advertising problem?
II. Creative Strategy 20 points
Did strategy flow from their analysis?
Did they clearly identify a target market?
Did they identify a meaningful benefit?
Did they provide adequate support for their strategy?
III. Media Plan 20 points
Did they spend within their budget?
Did their media and market selections make sense?
Did they generate reasonable levels of reach and frequency?
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IV. Creative Executions 20 points
Did executions flow from recommended strategy?
Did the creative translate between mediums?
Did it make sensewas it reasonable?
V. Presentation/Professionalism 20 points
Did the team appear well rehearsed and professional?
Did they appear confident and poised?
Did they answer questions well?
Total 100 points
Score sheets with these five criteria were furnished to the sponsor and instructor and completed
after each presentation. This section was worth 60 percent of the semester grade. This could be
construed as a team grade. The remaining 40 percent of the semester grade was generated by
each team member, as they graded their individual performances and that of their other team
members for quality and quantity of work contributed during the semester.
Student perceptions were measured by those enrolled in the course. When asked to evaluate this
course on a five-point scale (five being best), students ranked this course among the best they
had taken in college.
By giving our students the opportunity to experience an in-market project, we bridge the
transition between college and the real world. And, in a nutshell, thats what teaching advertising
is all about.
References
Christ, William G. (1990), How Shall I Teach Thee? Let Me Count the Ways. Teaching
Metaphors. AEJMC convention paper
England, Bill (1987) Student Ad Agency Offers Experience, Greater Visibility. Journalism
Educator, 42 No.1 (Spring) 3638.
Marra, James L (1990), A Necessary Course for the 1990s: The Student-Run Advertising
Agency. AEJMC convention paper.
Morris, Jon and Istre, Jennifer (1988) Students, Faculty Formed Ad Agency to Promote
AEJMC. Journalism Educator, 40 No.3 (Fall) 22.
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Schulte, Ted (1987) Advertising Focus Emphasizes Writer as Creative Person. Journalism
Educator, 41 Nd.4 (Winter) 49.
Stewart, Daniel K. (1986) Upgrading Needed for Ad Education. Journalism Educator. 40 No.4
(Winter) 2021.
Stephen B. Castleberry, University of MinnesotaDuluth
Consumer Boycotts and Possible Reactions (Some Folks Out There Just Dont Like Us!)
On the end of the first day of class, after having introduced the marketing concept, I hand out a
list that includes firms and some products. It looks something like this:
What do these firms/products have in common?
American Express World Book
Revere Ware Dayton Hudson
Forbes Johnsons Baby Shampoo
Levi Strauss Nationwide Insurance
New York Times Sony
Walt Disney Merrill Lynch
NutraSweet Radio Shack
Giving no hints, I challenge students to try to find out what the list has in common. At the
beginning of each class session, I poll students: Does anyone know what the companies and
products in this list have in common?
Needless to say, this exercise generates a great deal of interest and enthusiasm. Students guess all
sorts of things: firms listed on the New York Stock Exchange, firms that have outstanding
marketing strategic plans, firms that have been around more than 50 years, firms that have a
really neat website, firms that sell convenience goods, etc. Without giving any more clues, I let
them continue to guess throughout the quarter.
On the last day of class, we cover the material assigned for the day. Then I wrap up with
something like, Well, thanks for being such good students. I wish you the best on your final
exam, and act like Im going to walk out of the room. The students invariably call out, Wait,
what about that list? What does it mean?
Oh, are you interested in that? I say, pretending surprise that they even remembered it. Then I
give them one final chance to solve the mystery. When they give up, I tell them. The
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companies/products in that list all make contributions to Planned Parenthood. Planned
Parenthood is the largest abortion provider. Since I am personally against abortion, I boycott the
firms/products on that list (which is only a partial list, by the way, and changes each quarter as
firms are added and some drop out due to the boycott pressures). I then lead the class into a
discussion about boycotts and how marketers should respond to them. The following topics are
included in the discussion.
1. The importance of learning all of the relevant evaluative criteria that consumers use
2. The importance of learning the relative importance of the various evaluative criteria that
consumers use
3. How what is typically thought of as a convenience product can become a high-involvement
product (due to a divergence between personal beliefs and company beliefs)
4. The importance of communicating information to consumers
5. The critical functions of public relations and customer service
6. Whether it makes sense to let individuals or organizations that boycott your products have
an impact on your corporate marketing decisions (i.e., will we let our consumers hold us
hostage?)
7. The ethical and far-reaching ramifications of corporate decisions
8. What firms on the list can do to win my business
9. How a teaser campaign works (which is basically what Ive been doing all quarterIve
aroused their curiosity to such a level that, when I do spill the beans, they are all ears and
tell their friends about what they learned)
Of course, you could generate lists using any type of criteria you might have (firms that you just
dont like, firms that your wife/husband just wont shop at, etc.). To tie the exercise directly to
the boycott issue, you can list the firms you (or someone you know) boycott.
James S. Cleveland, Sage College of Albany
Discussion Board Topics to Encourage Participation
Discussion board questions provided to students to encourage them to engage in thinking and
writing about the content of the Principles of Marketing course usually take the form of a
provocative statement to which students are asked to respond. An example of this would be All
PR is good PR.
Discussion topics such as this one are abstract and often require that the instructor provide an
initial reply to show students what is expected of them in their own replies. For students with
limited work experience, this approach may be quite appropriate. For adult students with
extensive experience as employees and consumers, however, the abstract nature of such topics
can be frustrating.
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I have developed, therefore, a series of discussion board questions to use with experienced, adult
students. These questions are designed to encourage them to use their experiences as employees
and consumers as doorways to better understand the course material. They also encourage
students to make their own responses more interesting to themselves and to the other students in
the class who will read and comment on them.
Each question has three parts:
1. First, there is a sentence or two from the students textbook introducing the topic. By using
the text authors own words, students are enabled to locate relevant material in the text
more easily, the text content is reinforced, and confusion resulting from use of variant
terms or expressions is minimized.
2. Second, there is a reference to text pages the students should review before proceeding.
Since the goal of the exercise is for students to apply the course content to their own
experiences, reviewing the content first is important.
3. Third, there is a request for the students to think about or remember some specific situation
in their experience to which they can apply the text material. There are also questions for
them to address in their replies.
Here are additional such discussion board questions developed for Chapter 16 of MKTG11. Each
is written to fit the same text cited above but could easily be rewritten and revised to fit another
text.
Series A
1. If the goal of a promotion plan is to build up the image of the company or the industry,
institutional advertising may be used. By contrast, if the advertiser wants to enhance the
sales of a specific good or service, product advertising in used.
2. Review the information on major types of advertising including the various types of
product advertising from section 16-2 of your text.
3. Then watch an hour or two of prime-time television (8:00 to 11:00 p.m. and 7:00 to 10:00
p.m. CST). Describe the various advertising commercials you saw and what type they
were.
Series B
1. An advertising appeal identifies a reason for a person to buy a product.
2. Review the various appeals that are used in advertising on in section 16-3b (including
Exhibit 16.1) of your text.
3. Then watch an hour or two of prime-time television (8:00 to 11:00 p.m. and 7:00 to 10:00
p.m. CST). Describe the various advertising commercials you saw and the appeals they
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used.

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