Managing Mass Communication

Managing Mass Communication

56. Information Resources Institute has provided a unique, in-depth examination into how advertising works. One of their findings regarding promotions was that the ________ statistics on promotions are dismal with roughly only 16 percent of trade promotions being profitable.

a. normal

b. failure

c. costs

d. payout

e. success

57. In using sales promotion, a company must establish its objectives, select the tools, develop the program, ________, implement and control it, and evaluate the results.

a. review the costs

b. pretest the program

c. target market

d. select the audience

e. select the media for the program

58. Several factors have contributed to the increase in sales promotion as a marketing tool. One of these factors is ________.

a. the cost of credit is low so more money can be spent on promotions than in the past

b. product managers are under greater pressure to increase current sales

c. top management has increased the budgets for sales promotions

d. sales promotions is a money making undertaking

e. none of the above

59.________ seeks to determine whether an ad is communicating effectively.

a. Communications-effect research

b. Marketing research

c. Buyer research

d. Consumer research

e. Media research

60. The term “concentration” when used in the context of advertising means that the advertiser will ________.

a. run heavy advertising day and night for a short period of time

b. spend all of the advertising dollars in a single period

c. run all the ads for the product within a specific period of time

d.spend all of the advertising dollars across a specific time period

e. not spend all of the advertising dollars in a single period

True/False

61.Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

62. An advertising goal (or objective) is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time.

63. The advertising objective should emerge from a thorough analysis of the current marketing situation.

64. One of the five specific factors that must be considered when setting an advertising budget is the amount of money available from top management.

65. In designing and evaluating an ad campaign, it is important to distinguish the message strategy from the “messenger.”

66. A creative brief is an elaboration of the positioning statement of the brand.

67. One of the advantages of television is that the large number of ads and non-programming material on television creates clutter that makes it easy for consumers to ignore or forget the ad.

68. One of the advantages of print ads is that they can provide dynamic presentations and demonstrations as well as provide much detailed information.

69. One of the advantages of radio advertising is its flexibility.

70. Sellers in the United States are legally obligated to avoid bait-and-switch advertising that attracts buyers under false pretenses.

71. Media selection is finding the most cost-effective media to deliver the desired number and types of exposures to the target audience.

72. The total number of exposures in a marketing advertising campaign can be expressed in the formula: E = Rx F.

73. The weighted number of exposures to an advertising campaign is reach times average frequency times average impact or WE = R x F x I.

74. Frequency is most important where there are weak competitors, a complex story to tell, low consumer resistance or an in-frequent purchase cycle.

75. One of the limitations of newspapers is their relatively high cost and short life span.

76. In deciding on an advertising budget, marketers must understand that consumer response can be U-shaped: some positive amount of advertising is necessary before it produces a consumer response.

77. Place advertising, also called out-of-home advertising is a broadly defined category that captures many different alternative advertising forms.

78. In product placement advertisements, marketers pay a fee to have their products make cameo appearances in movies, films, and television shows.

79. “Branded entertainment” is where editorial content is produced that reflects favorable on the product or brand.

80. One of the appeals of point-of-purchase advertisements as one study suggested is that 70 percent of all buying decisions are made in the store.

81. Strategically, out-of-home advertising is often more effective at enhancing brand awareness or reinforcing brand image than creating new brand associations.

82. In making choices, the media planner has to rely on measurement services that provide estimates of audience size, composition, and media cost.

83. In choosing media, the advertiser faces both a macroscheduling and a microscheduling problem.

84. Advertisers have the choice of concentrated, continuous, or episodic when deciding on the advertisements timing patterns.

85. Most advertisers try to measure the communication effect of an ad- that is, its potential effect on awareness, knowledge, preference, and sales effect.

86. Communication-effect research seeks to determine whether an ad is communicating effectively.

87. Advertising’s sales effect is generally no more difficult to measure than its communication effect.

88. Researchers try to measure the sales impact through analyzing historical or experimental data.

89. Sales promotion consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

90. Sellers use incentive-type promotions to attract new triers, to reward loyal customers, and to increase the repurchase rates of occasional users.

91. Advertising typically builds brand loyalty and sales promotions weaken brand loyalty.

92. For consumers, ideally, sales promotions would have short-run sales impact as well as long-run brand equity effects.

93. Examples of retailer promotions include price cuts, feature advertising, retailer coupons, and retailer contests or premiums.

94. Studies have shown that sales promotions are NOT effective when used in conjunction with advertising.

95. The growing power of larger retailers has increased the retailer’s ability to demand trade promotion at the expense of consumer promotion and advertising.

96. Marketers report a number of reasons why the sponsor events. One of these reasons is that the firm wishes to identify with a particular target market or life style.

97. Developing successful sponsored events involves choosing the appropriate events; designing the optimal sponsorship program for the event; and managing the event dynamics properly.

98. In measuring an event, the supply-side method attempts to approximate the amount of time or space devoted to media coverage of an event.

99. Public relations involves a variety of programs designed to promote or protect a company’s image or its individual products.

100. Marketing public relations serves a special constituency, the marketing department.

Essay

101. 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 and define the major “tools” of an effective MPR department.

102. In 2004, IEG Sponsorship Report estimated that $11.14 billion will be spent on sponsorship in North America alone. List the eight reasons why marketers may want to sponsor an event.

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. 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 percent of the combined budget. Several factors contribute to this rapid growth. List and explain these factors.

105. The media planner has to know the capacity of the major advertising media types to deliver reach, frequency, and impact. Media planners make their choices by considering four variables. List these variables and briefly explain them.

106. Advertisers and their agencies must be sure advertising does not overstep social and legal norms. Public policy makers have developed a substantial body of laws and regulations to given advertising. List the restraints imposed upon advertisers and their clients today.

107. In designing and evaluating an ad campaign, it is important to distinguish the message strategy or positioning of an ad from it creative strategy. To develop a message strategy, advertisers go through three steps. List and explain these three steps.

.

108. In developing an advertising program, marketing managers must always start by identifying the target market and buyer motives. Then they can make the five major decisions know as “the five Ms.” List and explain each of these “Ms.”

109. Manufacturers face several challenges in managing trade promotions. List some of these challenges and explain.

110. Marketing public relations plays an important role in specific tasks. List these six tasks.

APPLICATION QUESTIONS

Multiple Choice

111. 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 and analysis what stage in its product life cycle are you in, and which of “the five Ms” of your decision process?

a. Message

b. Measurement

c. Money

d. Media

e. Mission

112. 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 to ________.

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

113. You have delineated your product’s message generation and evaluation. Now you are ready to proceed to the next step in developing an advertising campaign. What is the next step in this process?

a. Appointing an ad agency.

b. Designing the creative development and execution.

c. Hiring an agency.

d. Creating the creative strategy.

e. None of the above.

114. 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.

115. 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

116. A competitive product is advertised as being able to “keep the floor clean” for six months. Testing by your firms laboratories refute 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

117. The formula for the total number exposures E is expressed as ________.

a. E = Tx R

b. E = Fx R

c. E = Fx I

d. E = Rx A

e. E = Rx F

118. 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 percent. To reverse this trend, you will undertake an advertising campaign designed to get the “message back into memory.” Which of the following techniques would be most likely to produce success for your product?

a. Exposure

b. Impact

c. Reach

d. Frequency

e. None of the above

119. 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

120. 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

121. 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 70 percent 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.

a. point-of-purchase material

b. print material

c. coupons

d. flyers

e. none of the above

122. 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

123. The marketing department of your company is sponsoring an event for the local marathon runners in your community. As a running shoe manufacturer, the rationale for such a sponsorship includes ________.

a. to express commitment to the community

b. to identify with a particular target market or life style

c. to increase awareness of the company or product name

d. to create experiences and evoke feelings

e. all of the above

124. 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 ________ advertising timing pattern.

a. continuous

b. intermittent

c. concentrated

d. flighting

e. pulsing

125. 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. building interest in a product category

b. assisting in the launch of new products

c. assisting in repositioning a mature product

d. defending products that have encountered public problems

e. building the corporate image in a way that reflects favorable on its products

126. 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

127. You are testing the effectiveness of your upcoming advertising campaign. The results of these tests should measure the communication effects of the campaign on the brand’s awareness, consumer knowledge, consumer preferences, and the ad’s ________.

a. effect on complementary products

b. purchase intent

c. increases in the brand’s “likeness”

d. increases in brand salience

e. sales effect

128. One of the ways you can attempt to measure whether or not a company is overspending on advertising is to try to connect share of expenditures to share of market. The first step in this process is to translate a company’s share of expenditures into its ________.

a. share of consumer’s minds

b. share of advertising expenditures

c. market share

d. share of market

e. share of voice

129. As a sponsoring organization of a recent sporting event, your ad agency presenting 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 what ________ measurement.

a. supply-side

b. demand-side

c. market share

d. share of market

e. share of voice

130. 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

Short Answer

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

132. What are “the five Ms” that one must consider when setting advertising objectives?

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

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

135. What does the concept of “social responsibility” mean for advertisers?

136. Explain the concept of “reach.”

137. Explain the concept of “frequency.”

138. Explain the concept of “impact.”

139. The media planner has 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?

140. You are considering alternative advertising options. What specific alternative options would be available to you?

141. 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. Explain what the four choices are available to you.

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

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

144. 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?

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

146. The existence of Nike World, M&M World, and General Mills Cereal Adventure in Mall of America are examples of “experiences.” Why are more and more companies investing funds into creating “experiences” for their consumers?

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

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

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

150. What would be a better way to measure the effectiveness of a MPR campaign?