1) Advertising is any
paid form of nonpersonal communication about an organization, good, service, or
idea by an identified sponsor.
2) Product
advertisements focus on selling a good or service and take three major forms.
They are pioneering, competitive, and reminder.
3) Product
advertisements focus on selling a good or service.
4) Advertisements can
take either of two primary forms: product or institutional. Product ads focus
on selling a specific good or service while institutional ads primary purpose
is to build goodwill or to create or maintain an image for an organization. The
ad described in the question is an informational product ad, designed to inform
consumers of the newest features of a specific product.
5) The primary purpose
of a pioneering advertisement is to inform the target market.
6) Pioneering
advertisements are used in the introductory stage of the product life cycle to
tell people what the product is, what the product can do, and where the product
can be found. The key objective of the pioneering ad is to inform the target
market. Informative ads have been found to be interesting, convincing, and
effective.
7) The primary purpose
of a competitive advertisement is to persuade the target market to select the
firm’s brand rather than that of a competitor.
8) Advertising that
promotes a specific brand’s features and benefits is competitive. The objective
of these messages is to persuade the target market to select the firm’s brand
rather than that of a competitor.
9) 8) Comparative
advertisements are competitive advertisements that show one brand’s strengths
relative to those of competitors.
10) An increasingly
common form of competitive advertising is comparative advertising, which shows
one brand's strengths relative to those of the competitors. Studies indicate
that comparative ads attract more attention and increase the perceived quality
of the advertiser’s brand. Firms that use comparative advertising need market
research to provide legal support for their claims.
11) The purpose of a
reminder advertisement is to reinforce previous knowledge of a product.
12) Reminder advertising
is good for products that have achieved a well-recognized position and are in
the mature phase of their product life cycle. In this case, Campbell’s is a
well-known, established brand in the mature phase of the product life cycle.
Consumers just need to be reminded to purchase the brand.
13) Advertisements whose
objective is to build goodwill or an image for an organization rather than
promote a specific good or service are called institutional advertisements.
14) The objective of
institutional advertisements is to build good will or an image for an
organization, rather than promote a specific good or service. Often this form
of advertising is used to support the public relations plan or respond to
negative publicity. Four forms of institutional advertisements are often used:
advocacy, pioneering institutional, compettive institutional, and reminder
institutional. Alternative d is incorrect as it is not one of the four listed
forms.
15) The purpose of an
advocacy advertisement is to state the position of a company on an issue.
16) An ad for an international
consulting firm was intended to communicate the company philosophy—that you can
be big and nimble at the same time—rather than sell any one particular service
provided by the company. The ad is an example of pioneering advertising.
17) The state of Florida
Department of Citrus developed the “To Your Health” campaign to show the
benefits of orange juice. The goal of these ads is to increase demand for
orange juice as it competes with other beverages. This is an example of
acompetitive institutional cadvertisement.
18) The purpose of
competitive institutional advertisements is to promote the advantages of one
product class over another.
19) The purpose of
reminder institutional advertisements is to bring the company's name to the
attention of the target market again.
20) The first step of
the promotion decision process is developing the promotion program. This can be
applied to advertising, so the steps in developing the advertising program are
(1) identify the target audience, (2) specify the advertising objectives, (3)
set the advertising budget, (4) design the advertisement, (5) select the right
media (6) schedule the advertising.
21) An advertising
message usually focuses on key benefits of the product that are important to
the buyer.
22) The advertising
message depends on the appeal used and the actual words included in the ad.
23) Most advertising
messages are made up of both informational and persuasional elements.
Information and persuasive content can be combined in the form of an appeal to
provide a basic reason for the consumer to act. Although the marketer can use
many different types of appeals, common advertising appeals include fear
appeals, sex appeals, and humorous appeals.
24) Fear appeals suggest
to the consumer that he or she can avoid some negative experience through the
purchase and use of a product or through a change in behavior. When using fear
appeals, the advertiser must be sure the appeal is strong enough to get the
audience's attention and concern but not so strong it will lead them to tune
out the message.
25) Sex appeals suggest
to the audience that the product will increase the attractiveness of the user.
Unfortunately many commercials that use sex appeals are only successful at
gaining the attention of the audience, and they have little impact on how
consumers think, feel, or act. Some advertising experts even argue that such
appeals get in the way of successful communication by distracting the audience
from the purpose of the ad.
26) Humorous appeals
imply either directly or more subtly that the product is more fun or exciting
than competitors’ offerings.
27) As with fear and sex
appeals, the use of humor is widespread in advertising and can be found in many
product categories. Unfortunately for the advertiser, humorous appeals tend to
wear out quickly, eventually boring the consumer. Another problem with humorous
appeals is that their effectiveness may vary across cultures if used in a
global campaign.
28) When developing an
advertisement, understanding the lifestyles, attitudes, and demographics of the
target market is essential.
29) Advertising with an
objective of creating awareness would be better matched with a magazine rather
than a directory such as the Yellow Pages.
30) You might not
remember who advertised during the 1990 Super Bowl, but is cost the companies
$700,000 to place a 30-second ad. By 2005, the cost of placing a 30-second ad
during Super Bowl XXXIX was $2.4 million. The reason for the escalating cost is
the growing number of viewers.
31) Some facts about
creating the advertising message: a) Copywriters are responsible for creating
the text portion of the messages in advertisements, b) A high-quality 30-second
TV commercial typically costs about $372,000 to produce. c) There are about
2,000 small commercial production companies in the US, and d) As companies have
developed global campaigns, the need to shoot commercials in “exotic” locations
has increased.
32) The means by which
the advertising message is communicated to the target audience is through
advertising media.
33) Television garners
the largest amount of U.S. advertising expenditures at $67,791,000, followed by
direct mail at $52,919,000, and newspapers at $46,614,000. The expenditures
drop nearly in half for “other”, radio magazines, yellow pages, outdoor and
internet.
34) Reach is defined as
the number of different people or households exposed to an advertisement.
35) Rating is defined as
the percentage of households in a market that are tuned to a particular
television show or radio station.
36) Frequency is defined
as the number of times an advertisement can be shown before it begins to lose
effectiveness average number of times a person in the target audience is
exposed to an advertisement.
37) Gross rating points
(GRPs) are reach multiplied by frequency.
38) CPM with respect to
advertising is defined as the cost of reaching 1000 individuals or households
with the advertising message.
39) One of the
advantages associated with television as an advertising medium is that it
communicates with sight, sound and motion.
40) Program-length
(30-minute) advertisements that take an educational approach to communication
with potential customers are called infomercials.
41) One reason for using
radio as an advertising medium is it is segmented.
42) Radio is low cost
and can target specific local audiences. Radio ads can be quickly created and
placed. Radio can use sound, humor, and intimacy effectively. Disadvantages
include no visual element; short exposure time and perishable message;
difficult to convey complex information.
43) Magazines can target
specific audiences; use high-quality color. The ads have long lives; ads can be
clipped and saved and can convey complex information. However, a long time is
needed to place an ad; ads are relatively high cost; and compete for attention
with other magazine features. Some magazines such as Time publish regional
editions.
44) Newspapers are an
important local medium with excellent reach potential. Because of the daily publication
of most papers, they allow advertisements to focus on specific current events.
Local retailers often use newspapers as their sole advertising medium.
Newspapers are rarely saved by the purchaser, so companies are limited to ads
that call for an immediate response. Color reproduction is not as good as that
in most magazines. National advertising campaigns rarely include this medium
except in conjunction with local distributors and usually both parties>
45) One reason for NOT
using newspapers as an advertising medium is their short life span.
46) Yellow pages are a
directional medium because they help consumers know where purchases can be made
after other media have created awareness and demand.
47) A disadvantage of
the Yellow Pages is the lack of timeliness.
48) Internet advertising
has the following advantages: video and audio capabilities; animation can
capture attention; ads can be interactive and link to advertiser. Internet
advertising has the following disadvantage: effectiveness is still uncertain
and difficult to measure.
49) Called rich media,
these internet interactive ads have drop-down menus, built-in games, or search
engines to engage viewers.
50) Billboard
advertising is most effective for reminder advertising.
51) A very effective
medium for reminding consumers about products is outdoor advertising, such as
the scoreboards at baseball stadiums. Billboards often result in good reach and
frequency and have been shown to increase purchase rates. The visibility of this
medium is good supplemental reinforcement for well-known products, and it is a
relatively low-cost, flexible alternative. A disadvantage is that no
opportunity exists for lengthy advertising copy.
52) The most common form
of outdoor advertising is billboard advertising.
53) Transit advertising
is a form of outdoor advertising that includes the interior and exterior of
buses, subway cars, and taxis. Transit routes can provide geographic
selectivity of audiences for advertisers. One disadvantage of transit
advertising is that heavy travel times often do not permit riders to read
advertising copy.
54) As traditional media
have become more expensive and cluttered, advertisers have been attracted to a
variety of nontraditional advertising options—in airports, doctors' offices,
health clubs, or theaters—called place-based media.
55) Buyer turnover is
defined as how often new buyers enter the market to buy the product.
56) The definition for
purchase frequency is the more frequently the product is purchased, the less
repetition is required.
58) The three
approaches to setting advertising schedules are continuous (steady), flighting
(intermittent), and pulse (burst).
59) Continuous schedule
advertising is run at a steady or regular schedule throughout the year when
demand and seasonal factors are unimportant.
60) A basic approach to
scheduling, in which periods of advertising are scheduled between periods of no
advertising to reflect seasonal demand is called flighting.
61) A flighting schedule
combined with a continuous schedule because of increases in demand, heavy
periods of promotion, or introduction of a new product is called a pulse
schedule. Candy would most likely need heavier promotion before Halloween,
Valentine's Day, Mother's Day, etc. in addition to the fairly continuous ads
for non-seasonal candy that run throughout the year.
62) Candy however, would
most likely need heavier promotion before Halloween, Valentine's Day, Mother's
Day, etc. in addition to the fairly continuous ads for non-seasonal candy that
run throughout the year.
63) Because advertising
is expensive, marketers want to be certain the advertisements they run
communicate the intended message to the target audience. In order to accomplish
this communication goal, marketers conduct pretests before advertisements are
placed in a medium.
64) A portfolio test
places an ad in a portfolio with several other ads and stories and consumers
are asked to read through the portfolio. Afterward, subjects are asked for
their impressions of the ads.
65) Jury tests involve
showing the ad copy to a panel of consumers and having them rate how much they
liked it, how much it drew their attention, and how attractive they thought it
was. This approach is similar to the portfolio test in that consumer reactions
are obtained. However, unlike the portfolio test, a test advertisement is not
hidden within other ads.
66) Theater testing is
the most sophisticated form of pretesting. Consumers are invited to view new
television shows or movies in which test commercials are also shown. Viewers
register their feelings about the advertisements either on hand-held electronic
recording devices used during the viewing or on questionnaires afterward.
67) A full-service
agency is an advertising agency provides the most complete range of services,
including market research, media selection, copy development, artwork, and
production.
68) A limited-service
agency is an advertising agency that specializes in one aspect of the
advertising process such as providing creative services to develop advertising
copy or buying previously unpurchased media space.
69) An in-house agency
made up of the company’s own advertising staff may provide full services or a
limited range of services.
70) Tests conducted
after an advertisement has been shown to the target audience to determine
whether it accomplished its intended purpose are referred to as posttests.
71) Sales tests allow a
manufacturer, a distributor, or an advertising agency to manipulate an
advertising variable (such as schedule or copy) and observe subsequent sales
effects by monitoring data collected from checkout scanners in supermarkets.
72) In an aided recall
posttest, respondents are first shown an ad and then asked whether their
previous exposure to it was through reading, viewing, or listening.
73) The Starch test
determines the percentage of those who remember seeing a specific magazine ad,
who saw or read any part of the ad identifying the product or brand, and who
read at least half of the ad. It is a type of aided recall test.
74) The other name used
for aided recall tests is recognition-readership testing.
75) A question such as,
"What ads do you remember seeing yesterday?" is asked of respondents
without any prompting to determine whether they saw or heard advertising
messages when using unaided recall posttests.
76) When using attitude
posttests, respondents are asked questions to measure changes in their
attitudes after an advertising campaign, such as whether they have a more
favorable attitude toward the product advertised.
77) With inquiry tests,
additional product information, product samples, or premiums are offered to an
ad's readers or viewers, and ads generating the most inquiries are presumed to
be the most effective.
78) Sales tests allow a
manufacturer, a distributor, or an advertising agency to manipulate an
advertising variable (such as schedule or copy) and observe subsequent sales
effects by monitoring data collected from checkout scanners in supermarkets.
79) Directed to ultimate
consumers, consumer-oriented sales promotions, or simply consumer promotions,
are sales tools used to support a company’s advertising and personal selling.
The alternative consumer-oriented sales promotion tools include coupons, deals,
premiums, contests, sweepstakes, samples, continuity programs,
point-of-purchase displays, rebates, and product placement.
80) Coupons are sales
promotions that usually offer a discounted price to the consumer, which encourages
trial. The redemption rate is typically about 2 percent.
81) A deal is a sales
promotion that offers a short-term price reduction, commonly used to increase
trial among potential customers or to retaliate against a competitor’s actions.
82) A premium is a sales
promotion that consists of offering merchandise free or at significant savings
over its retail price. By offering a premium, companies encourage customers to
return frequently or to use more of the product.
83) A premium is called
self-liquidating when the cost charged to the consumer covers the cost of the
item.
84) Contests are sales
promotions in which customers apply their creative skills or analytical
thinking to win a prize.
85) Sweepstakes are
sales promotions that require participants to submit some kind of entry form
but are purely games of chance requiring no analytical or creative effort by
the consumer.
86) Sampling is a common
consumer sales promotion which offers the product free or at a greatly reduced
price. Often used for new products, sampling puts the product in the consumer’s
hands. A trial size is generally offered that is smaller than the regular
package size.
87) Sampling is an
appropriate strategy for products which are in the introductory stage of the
product life cycle.
88) Loyalty programs are
a sales promotion tool used to encourage and reward repeat purchases by
acknowledging each purchase made by a consumer and offering a premium as
purchases accumulate.
89) A sales promotion
that takes the form of an advertising sign, which sometimes actually holds or
displays the product, and which is often located in high-traffic areas near the
cash register or the end of an aisle are called point-of-purchase displays.
90) Rebates are sales
promotions in which money is returned to the customers based on proof of
purchase. When the rebate is offered on lower-priced items, the time and
trouble of mailing in a proof of purchase to get the rebate check often means
that many buyers never take advantage of it.
91) The consumer
promotion that involves the use of a brand-name product in a movie, television
show, video, or a commercial for another product is called product.
92) Trade-oriented sales
promotions, or simply trade promotions, are sales tools used to support a
company’s advertising and personal selling directed to wholesalers, retailers,
or distributors. There are three common approaches targeted uniquely to
intermediaries: (1) allowances and discounts, (2) cooperative advertising, and
(3) training of distributors’ sales forces.
93) A merchandise
allowance reimburses a retailer for extra in-store support or special featuring
of a brand.
94) A case allowance is
a discount on each case of goods ordered during a specific period of time.
95) A finance allowance
involves paying retailers for financing costs or financial losses associated
with consumer sales promotions.
96) Cooperative
advertising are programs in which a manufacturer pays a percentage of a
retailer's local advertising expense for advertising the manufacturer's
products.
97) One of the many
functions the intermediaries perform is customer contact and selling for the
producers they represent. Both retailers and wholesalers employ and manage
their own sales personnel. A manufacturer’s success often rests on the ability
of the reseller’s sales force to represent its products. It is in the best
interest of the manufacturer to help train the reseller’s sales force. Because
the reseller’s sales force is often less sophisticated and knowledgeable about
the products than the manufacturer might like, training can increase their
sales performance. Training activities include producing manuals and brochures
to educate the reseller’s sales force. The sales force then uses these aids in
selling situations.
98) Publicity tools are
methods of obtaining nonpersonal presentation of an organization, good, or
service without direct cost.
99) A news release
consists of an announcement regarding changes in the company or the product
line.
100) A publicity tool
that is heavily relied on by nonprofit organizations, and which involves free
space or time donated by the media is called a public service announcemant.
