Advertising-to-sales-promotion ratio

101. A decade ago, the advertising-to-sales-promotion ratio was about 60:40. Today, in many consumer-packaged-goods companies, sales promotion accounts for 75% of the combined budget. Several factors contribute to this rapid growth. List and explain these factors.

102. Manufacturers face several challenges in managing trade promotions. List some of these challenges.

103. In deciding to use a particular type of consumer promotional incentive, marketers have several factors to consider. List these factors and briefly explain them.

104. Report, $14.9 billion was projected to be spent on sponsorships in North America during 2007. List the eight reasons why marketers may want to sponsor an event.
Marketing public relations plays an important role in specific tasks. List these six tasks.

105. In considering when and how to use MPR, management must establish the marketing objectives, choose the PR messages and vehicles, implement the plan carefully, and evaluate the results. To accomplish this, MPR has a number of “tools” at its disposal. List the major tools of effective MPR.

APPLICATION QUESTIONS

Multiple Choice

106. As the newest brand manager for your company, you are in the process of developing an advertising campaign for the coming year. When you review your product substitutability and the stage in the product life cycle, which of “the five Ms” are you deciding?

a. Message

b. Measurement

c. Money

d. Media

e. Mission

107. Your product competes in a mature market and your company is the market leader in the category. The advertising objective for your product should be ________.

a. to stimulate and persuade consumers to use your product

b. to stimulate and demonstrate the product’s superiority

c. to stimulate more usage

d. to stimulate brand recognition

e. none of the above
Advertising often fails to increase sales for mature brands and categories in decline. The ________ is much lower for these products than for newer ones.

f. clutter

g. message generation

h. creative brief

i. advertising elasticity

j. flexibility

108. You have decided to use print media to advertise your product because the amount of information you wish to communicate is large. In designing a print campaign, you have been advised to write a headline for the ad that is strong. What is it about the headline that is so important in a print ad campaign?

a. The headline must reinforce the picture and lead the person to read the copy.

b. The headline must attract the reader’s eyes.

c. The headline must appeal to the reader’s sense of “wow.”

d. The headline must spark curiosity from the reader.

e. The headline must offend the readers’ sensibilities to attract them to read it.

109. The company has decided to change its advertising message in key markets. Speed and flexibility are the issues here as the company scrambles to make up lost ground. Of all of the advertising media available to you, which one offers your company flexibility?

a. Billboards

b. Television

c. Print

d. Place advertising

e. Radio

110. A competitive product is advertised as being able to “keep the floor clean” for six months. Testing by your firms’ laboratories refutes this advertising message. Under U.S. law, the competition is practicing ________.

a. deceptive advertising

b. puffery

c. creative license

d. acceptable risks

e. none of the above

 

111. Your research has shown that your consumers have a high forgetting rate on your product. In fact, the forgetting rate is as high as 20%. To reverse this trend, you will undertake an advertising campaign designed to get the message back into memory by emphasizing ________.

a. complicity

b. impact

c. reach

d. frequency

e. none of the above

112. Although outdoor advertising has limited audience selectivity, it ________.

a. is very expensive

b. offers low repeat exposure

c. is subject to low competition

d. is highly inflexible

e. all of the above

113. In developing an advertising campaign of your new product, you have decided on creating a mobile workshop that would travel around the country showing consumers how to use the product. This mobile “workshop” is an example of ________.

a. place advertising

b. creative advertising

c. product advertising

d. billboards

e. branded advertising

114. When Pringles is featured on the television show Survivor, this is an example of________.

a. product placement

b. advertorials

c. branded entertainment

d. product advertising

e. creative advertising

 

The ad agency you are working with cites studies that show that consumers wait until the last minute to make buying decisions and in fact, one study suggested that over 74% of all buying decisions are made in the store. The ad agency is urging you to approve the creation of ________ to capitalize on these spontaneous buying decisions.

f. point-of-purchase material

g. print material

h. coupons

i. flyers

j. none of the above

115. One of the criteria for evaluating the effectiveness of your print campaign is the circulation of the physical units carrying the advertising. You have asked for more information from the ad agency. In fact, you have asked for the number of people with your target audience’s characteristics who actually saw the ad. This is an example of ________.

a. interactive marketing

b. effective ad-exposed audience

c. direct-response advertising

d. effective audience

e. all of the above

116. If a full-page, four-color ad in Newsweek costs $200,000 and Newsweek’s estimated readership is 3.1 million people, the cost of exposing the add to 1,000 people is approximately ________.

a. $41

b. $53

c. $65

d. $77

e. $84

117. For a baby lotion ad, a magazine read by one million young mothers has high ________.

a. editorial quality

b. ad-placement policies

c. extra services

d. audience quality

e. supply-side measurement

 

118. Buyers enter your market at a high rate and consumers purchase your product on almost a “daily” basis. With these two known characteristics about your consumers and market, you are better off using a(n) ________ advertising timing pattern.

a. continuity

b. intermittent

c. concentrated

d. flighting

e. pulsing

119. When consumers respond to such questions as “What is the main message you get from this ad?” or “How does this ad make you feel?” you are using what communication-effect research method?

a. Opinion testing

b. Laboratory testing

c. Portfolio testing

d. Copy testing

e. Consumer feedback method

120. The company’s marketing mix includes such tools as coupons, cash refund offers, and premiums. These are examples of ________.

a. salesman’s tools

b. marketing mix

c. consumer promotions

d. trade promotions

e. none of the above

121. The way the promotional material gets to the consumer is known as the ________. For example, a 15-cents-off coupon can be sent by mail, offered in stores, or attached to the product packaging.

a. condition

b. distribution vehicle

c. duration

d. supply side

e. implementation

 

122. As a sponsoring organization of a recent sporting event, your ad agency presents you with the following information: “Our brand was visible on national television for a total of 500 second; this exposure represents $100,000 in advertising based on the national rate.” This is an example of a ________ measurement.

a. supply-side

b. demand-side

c. market-share

d. share-of-market

e. share-of-voice

123. As the national brand manager for a major egg producer, you have directed your MPR manager to help you build consumer interest in cooking eggs for dinner. This would be an example of using MPR to ________.

a. build interest in a product category

b. launch new products

c. reposition a mature product

d. defend products that have encountered public problems

e. build the corporate image in a way that reflects favorably on its products

Short Answer

124. What are the major differences between informative and persuasive advertising?

125. In designing and evaluating an ad campaign, it is important to distinguish between what two strategies?

 

126. From a brand-building perspective, television advertising has two particularly important strengths. List and briefly explain these strengths.

127. Explain how format elements of a print ad can impact the ad’s impact.

128. Explain the concept of “reach.”

129. Explain the concept of “frequency.”

.

130. Explain the concept of “impact.”

131. The media planner needs to know the capacity of the major advertising media types to deliver reach, frequency, and impact. Media planners make their choices by considering what variables?

132. Explain the rationale behind using out-of-home advertising to reach consumers.

133. What is the appeal of point-of-purchase advertising?

134. In launching your company’s new product, you are faced with a decision of what type of timing pattern will effectively match the communications objectives in relation to the nature of the product. List the four choices available to you.

135. In attempting to measure the effectiveness of your advertising, you undertake to pretest the advertising. What are the three methods of pretesting?

136. Explain the formula for measuring sales impact of advertising.

137. In designing your sales promotion campaign, your objective is to attract new triers and to reward loyal customers. What type of sales promotion should you use?

138. Define the concept of “consumer franchise-building” sales promotions.

139. Manufacturers use a number of trade promotion tools. Give four reasons why manufacturers award money to the trade.

140. Why are more and more companies investing funds into creating “experiences” for their consumers?

141. Developing successful sponsored events involves a number of decisions. What are the three decisions that must be made to utilize sponsorships effectively?

142. The company’s public relations department performs five functions. List these five functions.

143. MPR (marketing public relations) plays an important role in what tasks?