978-1337407588 Chapter 16 Solution Manual Part 1

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Chapter 16: Advertising, Public Relations, and Sales Promotion

Review and Assignments for Chapter 16

Review Quesons

1. Discuss the reasons why new brands with a smaller market share spend proportionately

more on advertising than brands with a larger market share.

Students’ answers will vary. Companies that market brands with a small market share tend to

spend proportionately more for advertising than those with a large market share to break

2. What is an advertising appeal? Give some examples of advertising appeals you have

observed recently in the media.

Students’ answers will vary. However, they should address some of these points: An

advertising appeal represents a reason to purchase a product or service. Automobiles are

frequently advertised using cash-back promotional techniques that appeal to peoples’ desire

3. What are the advantages of radio advertising?

Students’ answers should address some of these points: In relationship to other media, radio

advertising is quite inexpensive. In addition, radio still allows advertisers to target specific

markets. For example, a manufacturer of photocopiers can be assured of reaching the target

4. At what stage in a product’s life cycle are pioneering, competitive, and comparative

advertising most likely to occur? Give a current example of each type.

Chapter 16: Advertising, Public Relations, and Sales Promotion

Students’ answers will vary. Pioneering advertising is intended to stimulate primary demand

for a new product or product category at the introductory stage of the life cycle. E-readers

are a product category that use pioneering advertising. The goal of competitive advertising

is to influence demand for a specific brand of good or service. It is often used when a

5. How can advertising and publicity work together? Give an example.

Students’ answers should address some of these points: Each is a way of communicating

information to potential users of the good or service. For new products, such as a new car,

6. What is the primary factor that determines sales promotion objectives? Name some

different types of sales promotion techniques, and explain the type of customer they

are intended to influence.

Students’ answers will vary. The general behavior of target consumers determines the sales

promotion objectives. Students’ examples of sales promotion techniques and the customers

7. Discuss how different forms of sales promotion can erode or build brand loyalty. If a

company’s objective is to enhance customer loyalty to its products, which sales

promotion technique would be the most appropriate?

Students’ answers will vary. Some promotions—such as coupons, contests, or rebates—may

encourage brand switching and actually result in less brand loyalty. Consumers become

Chapter 16: Advertising, Public Relations, and Sales Promotion

8. What forms of consumer sales promotion might induce impulse purchases? What forms

of sales promotion are more effective at persuading consumers to switch brands?

Students’ answers will vary. The form of promotion that is most likely to promote impulse

9. How does trade sales promotion differ from consumer sales promotion? How is it the

same?

Students’ answers will vary. Manufacturers use many of the same sales promotion tools used in

Manufacturers and channel intermediaries use several unique promotional strategies: trade

10. What are the main forms of trade sales promotion? Which type might be the most

enticing to a grocery store manager? To a buyer for a major electronics chain?

Students’ answers will vary. Trade sales promotions may be sales contests, premiums, and

point-of-purchase displays. They can also be in the form of trade allowances; push money;

Applicaon Quesons

1. Form a three-person team. Divide the responsibility of getting newspaper

advertisements and menus for several local restaurants. While you are at the

restaurants to obtain copies of their menus, observe the atmosphere and interview the

manager to determine what he or she believes are the primary reasons people choose

to dine with them. Pool your information, and develop a table comparing the

restaurants in terms of convenience of location, value for the money, food variety and

quality, atmosphere, and so on. Rank the restaurants in terms of their appeal to

college students. Explain the basis of your rankings. What other market segments

would be attracted to the restaurants, and why? Do the newspaper advertisements

emphasize the most effective appeal for a particular restaurant? Explain.

Chapter 16: Advertising, Public Relations, and Sales Promotion

2. Design a full-page magazine advertisement for a new brand of soft drink. The name of

the new drink, as well as the package design, is at the discretion of the student. On a

separate sheet, specify the benefits stressed or appeals made in the advertisement.

3. You are the advertising manager of a sailing magazine, and one of your biggest

potential advertisers has questioned your rates. Write the firm a letter explaining why

you feel your audience selectivity is worth the extra expense for advertisers.

Students’ answers will vary. However, they should address some of these points: An advertiser

can use a very specific medium, such as this magazine, to reach a narrow target audience

4. Identify an appropriate media mix for the following products: chewing tobacco,

Playboy magazine, Weed-Eaters, foot odor killers, and “drink responsibly” campaigns

by beer brewers.

Students’ answers will vary. The options for chewing tobacco are limited by laws.

Traditionally they have used print, outdoor, and sports sponsorship. Playboy magazine

5. How easy is it to find out about advertising options on the Internet? Go to Looksmart’s

and Yahoo’s advertiser pages (http://www.looksmart.com/ and

http://advertising.yahoo.com/). What kind of information do they require from you?

Send an e-mail requesting information, and compare what you receive.

6. As the new public relations director for a sportswear company, you have been asked to

set public relations objectives for a new line of athletic shoes to be introduced to the

teen market. Draft a memo outlining the objectives you propose for the shoe’s

introduction and your reasons for them.

Chapter 16: Advertising, Public Relations, and Sales Promotion

Students’ answers should address some of these points: Public relations management must

establish clearly defined objectives in order to be effective. Furthermore, those objectives

For example, the sportswear firm may have a corporate policy to use spokespeople in its

advertising who have a reputation of being against drug abuse. It may also have a policy to

7. Review the newspapers in your area for one week. Try to review several and varied

newspapers (local, campus, cultural, countercultural, etc.). During this period, cut out

all the event advertisements that list sponsors. Once you have your collection, spread

them out so you can see them all at once. Identify any patterns or connections

between the type of event and its sponsors. Identify companies that sponsor more

than one event. What do sponsors tell you about target markets? After analyzing the

ads, write a brief paragraph summarizing your discoveries.

8. You have recently been assigned the task of developing promotional techniques to

introduce your company’s new product, a Cajun chicken sandwich. Advertising

spending is limited, so the introduction will include only some low-budget sales

promotion techniques. Write a sales promotion plan that will increase awareness of

your new sandwich and allow your customer base to try it risk-free.

9. Consider the different consumer sales promotion tools. Give an example of how each

type of tool has influenced you to purchase—or purchase more of—a product or

service.

Students’ answers will vary, but must include an example for each of the tools for consumer

Chapter 16: Advertising, Public Relations, and Sales Promotion

10. Not everyone thinks supermarket shopper cards are a bargain. Go to

http://www.nocards.org, and read several pages. Is the information compelling? What

do you think of shopper cards? You may want to use the Internet to research shopper

cards in more detail before forming an opinion.

Students’ responses will vary. This is a good question to use to set up a debate in class. Divide

11. Contests and sweepstakes are very common in the entertainment industry. Radio

stations have contests almost weekly (some daily); local television morning shows quiz

viewers on trivia; even movies offer sweepstakes in conjunction with film previews

and premiere nights. Think of a television or radio program unlikely to have contests

or sweepstakes (things like Cops, The View, Scooby-Doo, or your local classical music

radio station, for example). Once you have chosen your program, design a contest or

sweepstake to promote the show or the channel on which it airs. List the objectives,

and describe the rationale behind each part of your promotion.

12. How can uPromote.com (http://www.upromote.com) help you with your sales

promotions efforts? What kind of marketing budget would you need to take

advantage of its services? What kind of company would be best served by

uPromote.com?

13. Form a team of three to five students. As marketing managers, you are in charge of

selling Dixie Cups. Design a consumer sales promotion plan and a trade sales

promotion plan for your product. Incorporate at least three different promotion tools

into each plan. Share your results with the other teams in the class.

Applicaon Exercises

Application 1

Chapter 16: Advertising, Public Relations, and Sales Promotion

You may think that creating advertising is easy. After all, you have a lot of experience with

advertising, having been bombarded with advertisements since you were a child. But creating

Purpose: To experientially demonstrate how difficult it is to create an ad.

Setting It Up: This exercise is an excellent group project. Divide students into groups of three or

Activities

1. You have been hired by the purveyor of your chosen product to create a print advertisement.

Lay out your ad on a piece of paper that is no smaller than 8.5 by 11 inches and no larger

2. Include the copy of your ad directly on the front of the ad unless your copy blocks are too

3. Don’t forget to pick your own brand name for the product or service (like “Minute Mice”).

This exercise was inspired by the following Great Idea in Teaching Marketing:

S. J. Garner, Eastern Kentucky University

Creating Advertising for an Illegal Product or Service

When I first started teaching Principles of Marketing twelve years ago, I experienced a problem

getting students to really pay attention to the Advertising/Promotion section of the course. I

Chapter 16: Advertising, Public Relations, and Sales Promotion

I begin by going over in class the parts of a print advertisement. I show the students a variety of

Each of you is to pretend that a currently illegal product or service has recently been legalized.

There are a number of things to select from including (but not limited to) theft, murder,

Lay out your ad on a piece of paper that is no smaller than 8-1/2 inch by 11 inch and no larger

than 11 inch by 14 inch. Include a headline, an illustration, a logotype, and a body copy. The

illustration may be either hand drawn or clipped from a magazine. The copy you write for the ad

No credit will be given for a “Coca-Cola/cocaine” ad. I know you can be more creative than that!

This assignment is worth only 20 points out of a possible 400 in the entire course, but the

students put an amazing amount of effort into their creations. Since I usually have around 120

I have been using this assignment for many years and have worked some of the bugs out of it

over time. One bug I should mention is that once in a long while, a student will complain about

being made to promote something dangerous. Thus, I have evolved an alternate assignment that I

The students really enjoy this assignment. I have had students ask me the first day of class if they

were going to get to do this during the semester! They actually look forward to it! As a matter of

Chapter 16: Advertising, Public Relations, and Sales Promotion

I warn the students that these assignments will not be returned to them. I destroy all but the best