978-1337407588 Chapter 16 Solution Manual Part 2

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Chapter 16: Advertising, Public Relations, and Sales Promotion

Application 2

In this age of 24-hour cable news channels, tabloid news shows, and aggressive local and

national news reporters intent on exposing corporate wrongdoing, one of the most important

skills for a manager to learn is how to deal effectively with the press. Test your ability to deal

effectively with the press by putting yourself in the following situation. To make the situation

more realistic, read the scenario and then give yourself two minutes to write a response to each

question.

Purpose: To give students an opportunity to role-play crisis management.

Setting It Up: This exercise works well for pair work or group work. The example is dramatic in

nature, supposing a television station’s camera crew has shown up unannounced at your place of

business to do an exposé. Students are given a limited time to answer the interviewer’s questions

and no time to prepare the responses. Consider sending teams to the university’s audio-visual

center to videotape their dramatic role-play. Students could watch the videos in class and then

determine how the responses will “play” in the media. As an alternative to the dramatic role-play

in the text, you can use the original Great Idea below.

Activities

Today in the nation’s capital, a public interest group held a press conference to release the results

of a study that found that the food sold in most Chinese restaurants is high in fat. The group

claims that the most popular Chinese dishes, including orange chicken, pork fried rice, and

Hunan beef, contain nearly as much fat as the food you get from fast-food chains like

McDonald’s, Wendy’s, and Burger King. (Much of it is fried or is covered with heavy sauces.)

Furthermore, the group says that customers who hope to keep their cholesterol and blood

pressure low by eating Chinese food are just fooling themselves.

A TV reporter from Channel 5 called you at Szechuan Palace, your Szechuan-style Chinese

restaurant, to get your response to this study. When he and the camera crew arrived, he asked you

the following questions:

1. A new study released today claims that food sold in Chinese restaurants is on average nearly

as fattening as that sold at fast-food restaurants. How healthy is the food that you serve at

Szechuan?

2. Get the camera in close here (camera closes in to get the shot) because I want the audience at

home to see that you don’t provide any information on your menu about calories, calories

from fat, or cholesterol. Without this information (camera pulls back to get a picture of you

and the reporter), how can your customers know whether the food that you serve is healthy

for them?

3. These new studies were based on lunches and dinners sampled from Chinese restaurants

Chapter 16: Advertising, Public Relations, and Sales Promotion

across the nation. A local company, Huntington Labs, has agreed to test foods from local

restaurants so that we can provide accurate information to our viewers. Would you agree to

let us sample the main dishes in your restaurant to test the level of calories, calories from

fat, and cholesterol? Furthermore, can we take the cameras into your restaurant so that we

can get your customers’ reactions to these studies?

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

Jack K. Mandel, Nassau Community College

Putting Students “In the Line of Fire” to Learn Crisis Management Techniques

The concept of crisis management is becoming an important topic for marketing and public

relations classes. As companies continue to globalize, seek to make their staffing more culturally

I have incorporated fictitious crisis situations (based on actual news events) that students must

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

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

Chapter 16: Advertising, Public Relations, and Sales Promotion

Here is an example:

Chemo Technology Corporation

Riverhead, NY

Situation: Chemco Technology Corporation is a large metalworking manufacturer that employs

over 500 Nassau and Suffolk residents in Riverhead, LI.

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 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.

Prepare a written statement based on a plan of action to deal with the crisis.

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 company’s 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 client’s expectations (i.e., create the promotional

spot) or risk losing the account? Explain your reasoning.

Chapter 16: Advertising, Public Relations, and Sales Promotion

Students’ answers will vary. This question elicits a free response from the students. A way

to use this as a class activity is as follows: You may wish to have students divide into three

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 contains that relates to this issue.

Students’ answers will vary. The AMA Code of Ethics is very clear in its position on truth

in advertising. It states that the marketer’s responsibilities include “avoidance of false or

Video Assignment: BoltBus

BoltBus is Greyhound’s curbside, express bus service. BoltBus operates primarily in the

Northeast between major hubs, with some other services 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

Chapter 16: Advertising, Public Relations, and Sales Promotion

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 seat—not 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 BoltBus’s unique selling

proposition?

a. Low-cost travel, from one curb-side to the next, no terminals

necessary!

b. Getting you there without a care—with 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 won’t break the

bank!

d. We can get you anywhere, just show us how to go, we’ll make sure

you’re able to show!

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

Chapter 16: Advertising, Public Relations, and Sales 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. Competitor’s customers

6. What is BoltBus’s 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

However, in recent years, KFC has decided that instead of distancing themselves from the

“We were thinking about, ‘What’s our North Star?’ And our North Star is the Colonel,

Chapter 16: Advertising, Public Relations, and Sales Promotion

With that in mind, KFC launched an advertising campaign featuring a variety of Colonel

The campaign launched in 2015, featuring Saturday Night Live alumnus Darrell

Six months later, Norm MacDonald took on the role. MacDonald’s ads poked fun at the

In the first non-authentic portrayal, George Hamilton became the “extra crispy Colonel”

KFC launched their latest iteration of Sanders just in time for football season. Rob

Riggle, best known for his appearances on the Daily Show and Saturday Night Live, depicts the

Riggle was selected after people on the Internet began calling for the company to use a

The campaign has paid off for Yum Brands (KFC’s parent company). In July 2016, KFC

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.”

Chapter 16: Advertising, Public Relations, and Sales Promotion

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,

That,” Who2, June 30, 2016, accessed October 20, 2016,

Totey, “George Hamilton Is the ‘Extra Crispy Colonel’ – Why KFC Keeps Switching the

Actors,” Inquisitr, June 27, 2016, accessed October 20, 2016,

September 8, 2016, accessed October 20, 2016,

TRUE/FALSE

1. How a company chooses to advertise is ultimately of no real consequence to anyone but them.

PTS: 1 OBJ: LO: 16-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. George Hamilton’s “Extra Crispy” KFC commercial is part of an advertising campaign.

PTS: 1 OBJ: LO: 16-3 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. The Rob Riggle commercials are considered advergaming because they play during football

games and are targeting football fans.

PTS: 1 OBJ: LO: 16-4 TOP: AACSB: Reflective Thinking

Chapter 16: Advertising, Public Relations, and Sales Promotion

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. Airing fried chicken commercials during football games is a wise move for KFC as that

timeslot has a large reach.

PTS: 1 OBJ: LO: 16-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

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.

PTS: 1 OBJ: LO: 16-5 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

MULTIPLE CHOICE

1. Darrell Hammond’s and Norm McDonald’s KFC commercials served as __________

advertising.

a. institutional

b. product

c. advocacy

d. pioneering

PTS: 1 OBJ: LO: 16-2 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. Jim Gaffigan’s commercial served as __________ advertising.

a. institutional

b. product

c. advocacy

d. pioneering

Chapter 16: Advertising, Public Relations, and Sales Promotion

PTS: 1 OBJ: LO: 16-2 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. KFC’s main medium for their new colonel campaign was __________.

a. magazines

b. television

c. radio

d. outdoor media

PTS: 1 OBJ: LO: 16-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

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

PTS: 1 OBJ: LO: 16-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

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

PTS: 1 OBJ: LO: 16-5 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge