Deck 16: Advertising and Promotion

Question 1

Imagine that you are the new manager of Qantas, the Australian airline. You are getting ready to prepare an advertising campaign. What would be your FIRST step in the planning sequence?

A) select an advertising agency with a good track record for creative strategy
B) develop the brand's communication objectives
C) decide where sales are going to come from, that is, identify the target audience
D) set the marketing objectives for the brand
E) determine the brand's current and desired positioning in the various markets you are aiming for

Answer 1

E

Question 2

You have estimated the probability of exposure to your next advertising campaign as .2, the probability of ad processing as .3, and the probability of achieving the communication objectives as .5. What is the probability that the campaign will be capable of influencing target audience action?

A) 1.0
B) .5
C) .06
D) .03
E) .02

Answer 2

D

Question 3

In terms of brand equity, which is the best combination for a brand item to have?

A) low downside elasticity, high upside elasticity
B) high downside elasticity, low upside elasticity
C) high downside elasticity, high upside elasticity
D) low downside elasticity, low upside elasticity
E) high value, low uniqueness

Answer 3

A

Question 4

In the category of fast-food restaurants, which category positioning strategy has McDonald's adopted?

A) central me-too
B) central
C) differentiated me-too
D) differentiated
E) product-as-hero

Question 5

According to the T-C-B model, under which ONE condition below should a brand adopt differentiated positioning?

A) market pioneer
B) market leader
C) a follower brand that cannot adopt central me-too
D) a brand using mixed approach-avoidance motivation
E) a brand using problem-solution motivation

Question 6

In the I-D-U model, which one of the following is NOT a multiattribute strategy?

A) introduce a new attribute to the category
B) change to a new user target
C) increase perceived delivery
D) increase importance
E) decrease main competitor's perceived delivery

Question 7

"Why the buyer wants it" is the colloquial definition of which one of the following terms?

A) benefit
B) attribute
C) emotion
D) motive
E) reinforcement

Question 8

The selection of a target audience is based on leverage. Which statement is NOT correct for leverage?

A) Target audience leverage varies according to the product life cycle.
B) Leverage refers to marginal sales in relation to marginal cost.
C) New category users have increasing leverage as the product category grows in the market.
D) Brand switchers have overall high leverage.
E) Other-brand loyals have low leverage as a group.

Question 9

The action objective of trial (or re-trial) applies to all but one target audience listed below. Identify which one target audience does NOT have trial as an action objective.

A) negative new category users
B) neutral other-brand loyals
C) routinized other-brand switchers
D) routinized favorable brand switchers
E) unfavorable other-brand loyals

Question 10

In B2B marketing communications, which of the following is the most important decision role to target?

A) positive decider
B) negative decider
C) gatekeeper
D) CEO
E) consultant

Question 11

Dell Computer Company's research indicates that this brand is too rarely included in prospective B2C customers' "possibles" list when they are considering what brand of desktop computer to buy. Which decision role should be targeted in Dell's advertising?

A) initiator
B) influencer
C) decider
D) purchaser
E) user

Question 12

Which communication effect is related to a buyer's overall evaluation of the brand with respect to its perceived ability to meet a currently relevant motivation?

A) category need
B) brand awareness
C) brand attitude
D) brand purchase intention
E) purchase facilitation

Question 13

Brand awareness is best described by which ONE of the following definitions?

A) when you can recognize the brand
B) when you can recall the brand unaided
C) when you can recall the brand name in response to the category cue
D) when you can recall the brand's advertising
E) brand recognition or category-cued brand recall or brand recall-boosted recognition

Question 14

For brand attitude, which one of the following is NOT a possible objective?

A) change
B) maintain
C) redirect
D) modify
E) create

Question 15

In which ONE of the following situations is necessary to generate brand purchase intention?

A) when a promotion offer is included in the ad for the brand item
B) when the target audience is unaware of the brand item
C) when the target audience is aware of the brand item but has never bought it before
D) when the target audience is aware of the brand item but does not have a favorable attitude toward it
E) when the target audience does not know where to buy the brand item

Question 16

According to the theory of random creativity, the number of creative ideas to ask for depends on the ad agency's track record. When should you ask for a very large number of creative ideas?

A) low hit rate, low variance agency
B) low hit rate, high variance agency
C) if the agency is a small agency
D) high hit rate, low variance agency
E) new campaign for an established product

Question 17

Which ONE of the following descriptions of the key benefit claim, or KBC, is the most accurate?

A) The KBC must be unique, persuasively sufficient, and stated in three to five words.
B) The KBC must be unique, persuasively sufficient, and stated in no more than three words.
C) The KBC must be unique, persuasively sufficient, and stated in one to four words.
D) The KBC must be unique, persuasively sufficient, and stated in two to four words.
E) The KBC must be unique, persuasively sufficient, and stated in two or three words.

Question 18

The Remote Conveyor Model of the creative idea requires that the conveyor have a number of properties. Identify the ONE INCORRECT property from the list below.

A) attention-getting
B) strong contrasting attribute associations
C) correctly labeled by the target audience
D) high association of the target attribute when prompted
E) low probability of co-occurrence with the advertised product

Question 19

Long-term management of creativity for an established brand or brand item means guarding against which ONE of the following very common mistakes?

A) developing new advertising executions which inadvertently tap into a new key benefit
B) not rotating the advertising executions often enough in the media plan
C) not changing the key benefit claim often enough
D) using too many different executions of the same creative idea
E) not refreshing the campaign at six-month intervals

Question 20

There are a number of advertising tactics for brand recall. Which tactic is INCORRECT?

A) use a simple problem-solution format
B) try to encourage a personal connection with the brand
C) repeat the association of the brand name and category need
D) use high advertising frequency, relative to the competition
E) consider using a special presenter

Question 21

You are planning an ad campaign for M&M's candies using its well-known theme "Melts in your mouth, not in your hand." Given the likely target audience of people who eat chocolate candy, which brand attitude strategy best fits this campaign?

A) low-involvement/informational
B) low-involvement/transformational
C) low-involvement/comparative
D) high-involvement/informational
E) high-involvement/transformational

Question 22

There are a number of advertising tactics for the low-involvement/informational brand attitude strategy. Which is the INCORRECT advertising tactic?

A) Use a simple problem-solution format.
B) Include only one or two benefits or a single group of benefits.
C) The benefits should be easily learned in one or two exposures.
D) The target audience must like the ad.
E) Benefit claims should be stated extremely.

Question 23

For the high-involvement/informational brand attitude strategy, which advertising tactic is INCORRECT?

A) don't overclaim
B) don't inadvertently underclaim
C) overclaiming is recommended but don't underclaim
D) use a "summary" benefit claim
E) consider the addition of an expert, trustworthy presenter

Question 24

In selecting a presenter for Uniqlo men's clothing advertising, which presenter characteristic must DEFINITELY be strong?

A) expertise
B) trustworthiness
C) likability
D) similarity to ideal self
E) power

Question 25

Attention is the single biggest barrier facing advertising right now. Which of the following is NOT a reason for this?

A) The attention value of TV commercials is falling rapidly.
B) TV commercials are too often being run as videos on the Internet.
C) The attention value of radio commercials is falling rapidly.
D) Newspapers are increasingly being read online.
E) Today's agency creatives continue to ignore basic attention-getting tactics when designing ads.

Question 26

Pretesting of ads and promotion offers can best be achieved by which ONE of the following methods?

A) commissioning at least three focus groups drawn from the target audience
B) commissioning successive individual depth interviews until you have a clear go/no-go answer on each ad or promotion offer
C) designing and using a quantitative ad test or promotion offer test and selecting a large enough sample of the target audience to enable a clear decision
D) using an A/B, or split-run ad test, which can easily be done with a panel sample online
E) designing and using a management judgment ad test

Question 27

Which ONE of the following statements is true regarding direct price-off promotions?

A) They usually produce a large immediate sales effect followed by a dip when the promotion is withdrawn.
B) They usually produce only a small immediate sales effect followed by a return to the normal rate of sales after the promotion is withdrawn.
C) They usually produce a large immediate sales effect followed by a return to the normal rate of sales after the promotion is withdrawn.
D) They usually have no effect unless the discount is larger than 10% of the normal selling price.
E) They usually have no effect unless the discount is larger than 15% of the normal selling price.

Question 28

Which one of the following is NOT suitable as a manufacturer's trial promotion to consumers?

A) sampling
B) rebate offers
C) multi-purchase sweepstakes or contests
D) warranties
E) self-liquidating premiums

Question 29

Retailers' promotions are most likely to be effective for gaining additional sales with which ONE of the following potential target audiences?

A) other-store loyals
B) other-store switchers
C) favorable store switchers
D) store loyals
E) new users of that category of store

Question 30

Which one of the following statements is NOT true about online home shopping?

A) The retailer's introduction of an online shopping option in addition to its regular stores usually hurts sales in those stores.
B) Online home shopping is attractive only for certain types of products and services.
C) Online home shopping is mainly a timesaving not a money-saving option.
D) Clothing retailers are unlikely to survive unless they introduce an online shopping option.
E) Online retailing is dominated in the U.S. by Amazon.

Question 31

The Australian Tourist Commission is using a brand recall, high-involvement/informational strategy to advertise to prospective visitors from the U.S. For the primary advertising medium, which would be the best selection?

A) free-to-air television
B) passing-viewed outdoor
C) consumer magazines
D) internet video infomercials
E) pay or cable television

Question 32

LikeNew Car Repairs Company specializes in smash repairs for motor vehicles, advertising on radio throughout the year. Which reach pattern would be the best to use?

A) shifting reach
B) awareness reach
C) seasonal priming
D) wedge
E) reverse-wedge/PI

Question 33

Every media month the advertiser places two ads in the same set of competing vehicles. What reach pattern is implied by this placement?

A) impact schedule
B) shifting reach
C) blitz
D) awareness reach
E) seasonal priming

Question 34

In the MEF/c formula, which ONE of the following correction factors requires the highest frequency?

A) informational brand attitude
B) new category users
C) brand recognition
D) high average contact personal influence
E) high attention media vehicles

Question 35

A direct-response campaign on radio for a local retailer should aim for which ONE of the following MEF/c levels?

A) 2
B) 3
C) 4
D) 5
E) 6

Question 36

Which ONE of the following is the appropriate media strategy for implementing the reach rule?

A) buy many competing vehicles and place one or only a small number of ads in each vehicle
B) buy repeated insertions in a few strip vehicles
C) buy many noncompeting vehicles and place one or only a small number of ads in each vehicle
D) buy multiple insertions in a moderate number of reasonably big vehicles, especially strip vehicles, that are competing
E) buy repeated insertions in a moderate number of reasonably big vehicles, especially strip vehicles, that are non-competing

Question 37

The total marcoms budget allocation for the year is best decided by which ONE of the following methods?

A) Looking at the budget for the previous year and adding about 10% if your objective is an overall sales increase but keeping it the same if you expect overall sales to proceed at the same rate as last year.
B) Estimate the expected cost of media advertising then add to it the anticipated cost of producing the ads, the anticipated cost of producing any promotional materials in support of the advertising, and an amount to cover the cost of anticipated research projects that might be needed during the year.
C) Go by the total marcoms-to-sales ratio employed by the two or three leading companies in the industry, then adjust your budget upwards if you are seeking to increase your market share.
D) Use the task method in a global manner to estimate the budget needed for your total marcoms for the year.
E) Use econometric analysis to project the required budget from last year's sales or, if you are new to the industry, conducted an econometric analysis of the leading competitor's sales to project the budget required.

Question 38

Campaign budget-setting is best achieved by using which ONE of the following methods?

A) A/S ratio method
B) direct matching method
C) econometric projection method
D) SOV matching method
E) objective-and-task method

Question 39

You are the manager of Pepsi Cola and you are using Schroer's regional budget-setting method against the leading competitor, Coca-Cola. In which ONE set of regional conditions should Pepsi MATCH Coke's advertising spending?

A) Pepsi is the leader brand, and Coke's SOV/SOM ratio is below 1.0.
B) Pepsi is the follower brand, and Coke's SOV/SOM ratio is below 1.0.
C) Pepsi is the leader brand, and Coke's SOV/SOM ratio is 1.0 or higher.
D) Pepsi is the leader brand, and Coke's SOV/SOM ratio is below 1.0.
E) Coke is the leader brand, and Pepsi's SOV/SOM ratio is below 1.0.

Question 40

The Bank of China wants to find out if its home loan advertising is "cutting through the clutter" of financial services advertising. Which would be the most appropriate measure?

A) masked ad recognition
B) category-prompted ad recall
C) brand-prompted ad recall
D) ad recognition frequency
E) category-prompted brand recall

Question 41

American Express Card TV commercials, six of them in fact, have been on-air for a while and are suspected of "wearing out." Diners Card, Visa, and MasterCard have also been advertising heavily. Which one of the following is most likely to be the cause of wear-out?

A) attention loss
B) learning interference
C) overexposure
D) communication objectives have changed
E) consumer values have changed

Question 42

Corporate image advertising usually has a particular brand awareness objective. Which one is it?

A) to make stakeholders more aware of what the company does
B) to make stakeholders more aware of the company relative to its competitors
C) brand recognition
D) brand recall-boosted recognition
E) category-cued brand recall

Question 43

Your publicly listed company is trying to decide whether to become an official sponsor of the Olympic Games, which next time will be held in your country. Which one of the following is NOT a relevant decision factor?

A) That the sponsorship will communicate the corporate or master brand's positioning.
B) That the sponsorship offers good media value in terms of reach, reach pattern implementation, and what you believe to be a reasonable cost.
C) That the Olympic Games as an event has a salient attribute consistent with your corporate or master brand's key benefit.
D) That your company brand or master brand will be widely recalled by your target audience as a sponsor of the Olympic Games.
E) That you will be able to measure the effect of the sponsorship in terms of its stock price.

Question 44

You are the worldwide CEO of a major motor vehicle company and looks very likely that you will be sued in most countries by buyers of your vehicles who have found out that, contrary to your claim, the vehicles do not meet the national standard for nitrous oxide fuel emissions. Which of the following crisis management strategies is MOST likely to work in this case?

A) denial by truthfully blaming the problem onto a supplier
B) ignoring the problem until you've been able to measure how widespread the problem is
C) arguing that this was a one-off mistake that will not be allowed to happen again
D) announcing a country by country dealership recall to fix the problem, with a fixed cash payment to customers as compensation
E) outflanking the problem by publicizing all the good things that the company does

Question 45

Which one of the following personal attributes is NOT a valid consideration for a telemarketing company when seeking to hire new telemarketers?

A) relatively rapid speech
B) ability to empathize with the customer
C) externalizing attributional style
D) ability to speak with an accent equal or higher in social status than that of the person called
E) likable-sounding voice on the phone

Question 46

In the face-to-face personal selling encounter for high-involvement products or services, there is typically a sequence of stages to be negotiated if the sale is to be successful. Which one of the following is the best description of these?

A) approach, benefit presentation, de-resistance, closing the sale, follow-up
B) prospecting, benefit presentation, de-resistance, closing the sale, follow-up
C) prospecting, approach, benefit presentation, closing the sale, follow-up
D) approach, de-resistance, benefit presentation, closing the sale, follow-up
E) prospecting, approach, benefit presentation, de-resistance, closing the sale, follow-up

Question 47

There are four conditions essential for profitable database marketing. Which one of the following is NOT one of the conditions?

A) difficult for competitors to duplicate your program
B) expected profit from database greater than expected profit from normal customer turnover
C) realistic chance of reducing switching or increasing customer activity
D) high enough expected profit to offer a loyalty program to reward all active customers
E) substantial number of prospectively loyal customers or customers whose activity rates could be increased

Question 48

Direct response prospects in a database should be "migrated" forward through six classifications. Only one of the following sequences is CORRECT, which one?

A) prospects → suspects
B) regular buyers → lapsed buyers
C) prospects → trialists
D) trialists → prospects
E) advocates → regular buyers

Question 49

In social marketing communications planning, which one of the following statements is INCORRECT?

A) Offenders must be targeted unless personal counseling is in place.
B) Further segmentation may be necessary by gender, ethnicity, or literacy.
C) Vacillators are usually the most leverageable target audience.
D) Social norms are usually important.
E) Chronically anxious individuals respond best to positive reinforcement campaigns.

Question 50

In which one of the following advertising situations would the textbook say it is NOT ethical to lie by exaggeration?

A) when making a key benefit claim
B) when making a subjective benefit claim
C) when making an objective benefit claim
D) when making an obviously humorous benefit claim
E) when making an obviously ironic benefit claim