Deck 16: Advertising and Public Relations

Question 1

What are the advantages of using an advertising agency to develop an advertising campaign?

Answer 1

Most large corporations employ an advertising agency to develop advertising campaigns. When an organization uses an advertising agency, the firm and the agency usually develop the advertising campaign jointly. How much each participates in the campaign's total development depends on the working relationship between the firm and the agency. Ordinarily, a firm relies on the agency for copywriting, artwork, technical production, and formulation of the media plan.
Advertising agencies assist businesses in several ways. An agency, especially a large one, can supply the services of highly skilled specialists-not only copywriters, artists, and production coordinators but also media experts, researchers, and legal advisers. Agency personnel often have broad advertising experience and are usually more objective than a firm's employees about the organization's products.
Because an agency traditionally receives most of its compensation from a 15 percent commission paid by the media from which it makes purchases, firms can obtain some agency services at low or moderate costs.

Question 2

Compare the competition-matching approach with the arbitrary approach in determining an advertising appropriation. Which method might more easily lead to overspending or underspending on the appropriation?

Answer 2

The competition-matching approach is one of the ways to determine advertising appropriation. Marketers following this approach try to match their major competitors' appropriations in absolute dollars or to allocate the same percentage of sales for advertising that their competitors do. Although a marketer should be aware of what competitors spend on advertising, this technique should not be used alone because the firm's competitors probably have different advertising objectives and different resources available for advertising. Many companies and advertising agencies review competitive spending on a quarterly basis, comparing competitors' dollar expenditures on print, radio, and television with their own spending levels. Competitive tracking of this nature occurs at both the national and regional levels. For example, AT&T spends 2.4 percent of sales on advertising, while Verizon spends 2.3 percent of sales.
At times, marketers use the arbitrary approach, which usually means a high-level executive in the firm states how much to spend on advertising for a certain period. The arbitrary approach often leads to under spending or overspending. Although hardly a scientific budgeting technique, it is expedient.

Question 3

Describe the major types of advertising, and discuss how they differ.

Answer 3

Advertising can be classified as institutional or product advertising. Institutional advertising promotes organizational images, ideas, and political issues. It can be used to create or maintain an organizational image. Institutional advertisements may deal with broad image issues, such as organizational strengths or the friendliness of employees. They may also aim to create a more favorable view of the organization in the eyes of noncustomer groups, such as shareholders, consumer advocacy groups, potential shareholders, or the general public. When a company promotes its position on a public issue, institutional advertising is referred to as advocacy advertising.
There are two types of product advertising: pioneer and competitive. Pioneer advertising focuses on stimulating demand for a product category by informing potential customers about the product's features, uses, and benefits. Competitive advertising attempts to stimulate demand for a specific brand by promoting the brand's features, uses, and advantages, sometimes through indirect or direct comparisons with competing brands.
Other forms of competitive advertising include reminder and reinforcement advertising. Reminder advertising tells customers that an established brand is still around and still offers certain characteristics, uses, and advantages. Reinforcement advertising assures current users that they have made the right brand choice and tells them how to get the most satisfaction from that brand.

Question 4

What are the important issues to consider when developing advertising objectives?

Question 5

The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as

A) public relations.
B) product advertising.
C) advocacy advertising.
D) institutional advertising.
E) comparative advertising.

Question 6

Parisian Dry Cleaners airs a series of radio ads that claim, "We are the fastest dry cleaners in town." This campaign would best be described as ____ advertising.

A) pioneer
B) target
C) product
D) institutional
E) comparative

Question 7

Discuss how event sponsorship can be used as a public relations tool.

Question 8

Tropicana orange juice has a television commercial where a young boy is drinking orange juice at dinner. He remarks that he likes the great taste of Tropicana anytime. The element of the commercial that focuses on drinking orange juice at dinner would be best classified as ________, while the focus on the great taste of Tropicana would be best classified as ___.

A) comparative advertising; informative advertising
B) pioneer advertising; competitive advertising
C) institutional advertising; stimulating primary demand
D) product advertising; institutional
E) comparative advertising; competitive advertising

Question 9

What is an advertising platform? What is the best way to develop a platform?

Question 10

What are the major differences between sales-based and communications-based advertising objectives?

Question 11

What are the major components of a media plan? What limitations must be considered as the media plan is implemented?

Question 12

What are the components of a print ad? What are the functions of each component?

Question 13

Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called ____ advertising.

A) institutional
B) product
C) organizational
D) pioneer
E) advocacy

Question 14

When a company promotes its position on a public issue, this is specifically referred to as ____ advertising.

A) institutional
B) product
C) advocacy
D) issue
E) competitive

Question 15

What approaches can be used to evaluate the effectiveness of public relations programs?

Question 16

What is public relations and for what purposes is it used?

Question 17

What steps should an organization take to be able to deal effectively with negative public relations?

Question 18

Describe the various methods used to evaluate the advertising effectiveness after a campaign.

Question 19

When Anheuser-Busch ran an advertising campaign featuring the slogan, "Know when to say when," it was using

A) competitive advertising.
B) public relations.
C) product advertising.
D) public service awareness.
E) advocacy advertising.

Question 20

Identify and describe four publicity-based public relations tools.

Question 21

The target audience for an advertising campaign is the

A) information base on which to develop the campaign.
B) geographic distribution of persons.
C) people toward whom the advertisements are directed.
D) overall goal of the advertising campaign.
E) sales objective to be achieved by the campaign.

Question 22

The two major types of product advertising are

A) institutional and advocacy.
B) pioneer and competitive.
C) competitive and comparative.
D) advocacy and competitive.
E) informative and comparative.

Question 23

Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as

A) pioneer.
B) competitive.
C) comparative.
D) defensive.
E) selective.

Question 24

After the target audience for an advertising campaign has been identified and analyzed, marketers should then proceed by

A) creating the advertising platform.
B) determining the financial resources available.
C) defining the advertising objectives.
D) developing a media plan.
E) creating an advertising message.

Question 25

The step in developing an advertising campaign that directly precedes campaign execution is

A) defining advertising objectives.
B) creating the advertising platform.
C) evaluating advertising effectiveness.
D) developing a media plan.
E) creating the advertising message.

Question 26

The "Got milk?" print campaign is advertising that stimulates demand for a ____, known as ____ advertising.

A) product category; pioneer
B) roduct brand; competitive
C) product category; institutional
D) brand category; pioneer
E) product; comparative

Question 27

Coors advertises that its beer is the only one that is kept cold from the brewery to the store. This type of advertising is called

A) pioneer.
B) competitive.
C) comparative.
D) defensive.
E) institutional.

Question 28

Reinforcement advertising is primarily targeted at

A) new potential target markets.
B) users of competitors' brands and products.
C) anyone who uses that type of product.
D) all the stakeholders of an organization.
E) the current users of a particular product.

Question 29

After the advertising budget is determined, the next step in creating an advertising campaign is

A) creating the advertising message.
B) creating the advertising platform.
C) evaluating the advertising objectives.
D) executing the campaign.
E) developing the media plan.

Question 30

Dial Soap's advertising slogan "Aren't you glad you use Dial? Don't you wish everybody did?" exemplifies the use of ____ advertising.

A) reinforcement
B) offensive
C) comparative
D) institutional
E) defensive

Question 31

When developing an advertising campaign, benchmarks need to be included in the

A) campaign platform.
B) evaluation of the advertising effectiveness.
C) statement of advertising objectives.
D) media plan.
E) budget.

Question 32

The last stage in the development of any advertising campaign is

A) creating the advertising platform.
B) developing the media plan.
C) creating the advertising message.
D) evaluating the effectiveness of advertising.
E) defining the advertising objectives.

Question 33

An ad for a multivitamin that claims, "We still bring you everything you need to get through your day in one vitamin," would most likely be considered ____ advertising.

A) reinforcement
B) competitive
C) comparative
D) reminder
E) institutional

Question 34

Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n)

A) target audience goal.
B) advertising platform.
C) percent-of-sales approach.
D) advertising objective.
E) media plan goal.

Question 35

The advertising campaign for Crest toothpaste lets consumers know about its newest flavor, and also mentions its history as an established brand. The ad also mentions Crest's advantages and benefits. Crest's advertising would be classified as

A) repetitive.
B) reminder.
C) pioneer.
D) competitive.
E) reinforcement.

Question 36

The first stage in the development of any advertising campaign is

A) creating the message.
B) setting the budget.
C) identifying the advertising target audience.
D) defining the advertising objectives.
E) creating the advertising platform.

Question 37

Tercile Products Company advertises a specific product heavily, and Carbone Products Company wants to offset the effects of that advertising. In this case, Carbone would most likely employ ____ advertising.

A) competitive
B) pioneer
C) institutional
D) primary
E) target

Question 38

Brands that are promoted through comparative advertising are most likely to be

A) market leaders.
B) brands that are attempting to compete with market leaders.
C) primarily services rather than tangible goods.
D) attempting to compete on a nonprice basis.
E) competing in a less competitive market.

Question 39

When Volvo's advertising campaign mentions the Volvo CX60 has the highest safety rating of any European sedan, it is using _______ advertising.

A) Reminder
B) Reinforcement
C) Competitive
D) Defensive
E) Institutional

Question 40

Which of the following lists forms of competitive advertising?

A) Pioneer, comparative, reminder
B) Reminder, repetitive, reinforcement
C) Comparative, reminder, reinforcement
D) Institutional, product, comparative
E) Product, pioneer, reminder

Question 41

The main problem with using the objective-and-task approach to setting an advertising budget is that

A) sales create advertising rather than advertising creates sales.
B) it often results in overspending or underspending of the firm's resources.
C) it does not achieve full potential in terms of stimulating demand.
D) the marketer may experience difficulty when trying to estimate accurately the level of effort needed to achieve goals.
E) it is difficult to determine the objectives of the campaign.

Question 42

Alan is the CEO of Greensprings Landscaping. At the recent budget planning meeting, Alan stated that last year's sales were down from the previous period. He then went on to say that Greensprings would have a budget of $100,000 for advertising in the coming year. In this instance, Alan was using the ____

A) arbitrary approach.
B) executive decision process.
C) objective-and-task approach.
D) percentage-of-sales approach.
E) competition-matching approach.

Question 43

The total amount of money a marketer allocates for advertising for a specific time period is the

A) marketing budget.
B) advertising appropriation.
C) objective-and-task approach.
D) promotion grant.
E) finances for advertising.

Question 44

Danielle Robinson, account representative for EXpert Advertising, tells D'Orazio Tile Products that she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an increase in consumer and builder inquiries of 15 percent. This approach is an example of which of the following methods of determining advertising expenditure levels?

A) Competitive parity
B) Percent of sales
C) Arbitrary
D) Affordability
E) Objective-and-task

Question 45

Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must determine the selling points that they want to include in the advertisements. The identification and organization of these selling points is called the

A) advertising appropriation.
B) objective-and-task approach.
C) advertising platform.
D) advertising objective.
E) advertising budget.

Question 46

Colin McKinney, director of marketing for Greenwald Industrial Products, complains to his advertising director that the continuing slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures. Based on this information, Greenwald is most likely using the ____ approach to determine its advertising expenditures.

A) percent-of-sales
B) objective-and-task
C) competition-matching
D) arbitrary
E) judgmental

Question 47

Frederick Griffith of Griffith's department stores tells his marketing director that he is tired of the constant price-centered advertising by the firm's agency. "We have the best customer service in town, and I feel that is what we should be hanging our hats on," he states. This statement is most appropriate for use in which of the following stages of campaign development?

A) Determining the appropriations
B) Creating the platform
C) Identifying the target
D) Defining objectives
E) Developing the media plan

Question 48

Sony Corporation has a particular approach for determining its advertising appropriation. A problem with this technique, however, is that the people in the marketing department have difficulty estimating the level of effort needed to achieve certain goals. This problem is characteristic of the ____ approach.

A) reliable-appropriation
B) match-competition
C) arbitrary
D) objective-and-task
E) percent-of-sales

Question 49

Why should a benchmark statement be included in advertising objectives?

A) Shareholders want to see where a company is in relation to competition.
B) It is useful in determining whether retailers have increased their sales over the year.
C) It gives an indication of how the advertising message is best presented.
D) Without a reference point, it is difficult to determine to what degree objectives have been accomplished.
E) Objectives become more easily attainable when such a statement is included.

Question 50

Dan is responsible for developing the promotional campaign for Under Armour's new line of footwear for teens. He will be writing advertising campaign objectives that are aimed at making the target customers' attitudes more favorable toward Under Armour, which should be stated in ____ terms.

A) communication
B) sales
C) demand
D) market
E) survey

Question 51

An advertising platform should consist of issues that are important to consumers. Selling features should be important to consumers and should be features that

A) competitive products lack.
B) can be seen easily in a photograph.
C) are familiar concepts to those in the target market.
D) competitive products have as well.
E) are reasonably inexpensive to develop.

Question 52

The owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing ____ for the campaign.

A) the target audience
B) a budget
C) a media plan
D) objectives
E) advertising directives

Question 53

Advertising appropriations are largest for which type of product?

A) Business products
B) Convenience goods
C) High-priced products
D) Specialty goods
E) Infrequently purchased goods

Question 54

An advertising platform is the

A) basic issue or selling point that an advertiser wishes to include in an advertising campaign.
B) objective of the advertising campaign, stated in precise and measurable terms.
C) form in which the basic issues of the campaign should be presented.
D) broad objectives of the advertising campaign.
E) consumer advertising research conducted.

Question 55

When using the percentage-of-sales approach for determining the advertising appropriation, marketers

A) base their funding on a percentage of the competitors' sales.
B) multiply the firm's past sales by a set percentage they want to spend.
C) set sales objectives for the upcoming period and base appropriations on these goals.
D) multiply the firm's past sales plus a factor for expected changes in sales times a standard percentage.
E) use an industry standard to determine what percentage of their profits they want to allocate to advertising.

Question 56

If Target were to base its advertising appropriation on the amount that Walmart spends, it would be using the ____ approach.

A) objective-and-task
B) percent-of-sales
C) industry-standard
D) arbitrary
E) competition-matching

Question 57

The basic issues or selling points that an advertiser wants to include in an advertising campaign is (are) the

A) advertising objectives.
B) target audience objectives.
C) media plan.
D) advertising message.
E) advertising platform.

Question 58

To determine how much money to spend on advertising, marketers for a new brand of caffeinated energy drink decided that they wanted the advertising to create awareness of the new flavor in 80 percent of the energy drink market within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an example of which one of the following approaches to determining advertising budgets?

A) Objective-and-task
B) Percent of sales
C) Competition matching
D) Arbitrary allocation
E) Past-year comparison

Question 59

An advantage of the arbitrary approach for determining the advertising appropriation is that it is

A) objective.
B) unique.
C) profitable.
D) effective.
E) expedient.

Question 60

If an advertising campaign is aimed at increasing brand awareness and consumers' knowledge of a product's features, the advertising objective should be stated in terms of

A) market share.
B) dollar sales.
C) unit sales.
D) communication.
E) long-run goals.

Question 61

An ad's ____ is designed to attract readers' attention and develop interest so that they will read the entire advertisement.

A) signature
B) layout
C) headline
D) artwork
E) subheadline

Question 62

As Oscar Meyer puts together its advertising campaign for the summer, it will need to keep in mind that its desire to use outdoor advertising will have strong effects on its selection of the advertising

A) message.
B) budget.
C) platform.
D) audience analysis.
E) objectives.

Question 63

The maker of Huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising

A) reach.
B) repetition.
C) frequency.
D) targeting.
E) exposure.

Question 64

A tool that allows an advertiser to compare the costs of several media vehicles within a specific medium relative to the number of persons reached by each vehicle is called a(n)

A) cost comparison indicator.
B) media comparison selector.
C) unit-price selector.
D) cost/person index.
E) vehicle/price indicator.

Question 65

The verbal portion of an advertisement, including headlines, body, and signature, is called the

A) artwork.
B) copy.
C) storyboard.
D) layout.
E) script.

Question 66

The three general types of media schedules are

A) pulsing, beating, and continuous.
B) short, medium, and long-term.
C) morning, afternoon, and evening.
D) pulsing, continuous, and flighting.
E) light, heavy, and alternating.

Question 67

If during an advertising campaign a certain portion of advertising runs continuously, and then during specific periods additional advertising is used to intensify the level of communication, a(n) ____ media schedule is being used.

A) beating
B) alternating
C) flighting
D) continuous with emphasis
E) pulsing

Question 68

A schedule in which advertisements run for set periods of time, alternating with periods in which no ads run is known as

A) continuous.
B) skipping.
C) pulsing.
D) flighting.
E) intervals.

Question 69

During the duration of an advertising campaign, Verizon Wireless ran television advertisements at a steady rate throughout the week and intensified its message with newspaper advertising in many major newspapers in the Sunday paper. Verizon Wireless used a(n)____ media schedule.

A) flighting
B) continuous
C) pulsing
D) alternating
E) multimedia

Question 70

The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of

A) frequency.
B) exposure.
C) reach.
D) targeting.
E) push.

Question 71

Domino's is looking into magazine advertising for its pizza. The company wants to reach as many people as possible, but due to budget constraints Domino's must reach consumers as efficiently as possible. What can Domino's use to evaluate various magazines?

A) A cost comparison indicator
B) The total circulation of the magazines
C) A list of the costs of a one-page ad in various magazines
D) The advertising appropriations for each magazine
E) An index of advertisement exposure

Question 72

Brian and Tiffany are discussing the media plan for the opening of their new bar/laundromat called Soap and Suds. He tells her that while he agrees that ____ has tremendous impact, he does not feel that the upfront costs for such a campaign are in the modest budget that presently exists.

A) radio
B) outdoor
C) television
D) direct mail
E) newspaper

Question 73

A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n)

A) advertising plan.
B) media plan.
C) advertising message.
D) advertising appropriation.
E) media platform.

Question 74

A marketer that wanted to include detailed information in advertisements would most likely use

A) radio.
B) television.
C) outdoor displays.
D) magazines.
E) mass transit.

Question 75

Disney decided to run its new commercials for all of its theme parks several times a day for three weeks and then not at all for two weeks. It will then run the commercials again for three more weeks. Disney is using a ____ schedule for its advertising.

A) flighting
B) varying
C) continuous
D) pulsing
E) beating

Question 76

The cost per thousand (CPM) indicator shows

A) the cost to expose 1,000 people to a television commercial.
B) the cost to expose 1,000 people to a one-page magazine advertisement.
C) the return on investment marketers get for their advertising dollar.
D) the cost to expose a million people to any type of advertisement.
E) how one media source compares to a different source for reaching target markets.

Question 77

The primary goal of a media planner is to

A) choose the best commercial spots available.
B) develop a message that works well with the firm's target market.
C) achieve the appropriate message reach and frequency.
D) use a wide variety of media to ensure the entire target audience is exposed.
E) reach the largest number of people in the target market within the budget constraints.

Question 78

Which of the following statements applies to media planning?

A) Characteristics of the product are the most important consideration in selecting the media for a campaign.
B) The message content affects the types of media used for an advertising campaign.
C) The location of the advertising target is irrelevant in media planning.
D) Total media dollars spent on advertising have decreased over the last 30 years.
E) Regardless of the message to be conveyed, newspapers are one medium that is appropriate for almost any circumstances.

Question 79

Todd is developing a print advertisement for Afflac. He knows that the ______ is a critical component of the copy because _____.

A) headline; it determines the final layout design.
B) headline; It is often the only part of the advertisement that is read.
C) artwork; it takes up the most space.
D) tag line; it links the copy to the signature.
E) slogan; it links the artwork to the signature.

Question 80

After developing the budget for advertising the Kia Soul automobile, marketing managers at Kia then determined what proportion of that budget would be spent on television, radio, and magazine advertisements based on the cost effectiveness of each. This subsequent allocation of the budget is known as a(n) ____ plan.

A) advertisement-allocation
B) media
C) arbitrary allocation
D) objective-and-task
E) percent-of-sales