Marketing Management Chapter 20 PDF

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Marketing Management, 15e (Kotler)
Chapter 20 Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations...

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Marketing Management, 15e (Kotler) Chapter 20 Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations 1) An advertising ________ is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. A) medium B) objective C) channel D) budget E) copy Answer: B Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 2) ________ advertising aims to create brand awareness and knowledge of new products or new features of existing products. A) Informative B) Corporate C) Reinforcement D) Persuasive E) Reminder Answer: A Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 3) When Lola asked what the advertising campaign should say, she was concerned with which of the five Ms? A) Mission B) Money C) Message D) Media E) Measurement Answer: C Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Application of knowledge

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4) ________ advertising aims to create liking, preference, conviction, and purchase of a product or service. A) Corporate B) Reminder C) Persuasive D) Reinforcement E) Informational Answer: C Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 5) Comparative advertising works best when ________. A) it elicits cognitive and behavioral motivations simultaneously B) the firm is trying to minimize brand dilution C) consumers are processing advertising in a detailed, analytical mode D) it elicits affective motivation, followed by cognitive motivation E) the advertising message uses negative fear appeals Answer: C Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 6) ________ advertising aims to stimulate repeat purchase of products and services. A) Reinforcement B) Comparative C) Persuasive D) Informational E) Reminder Answer: E Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

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7) The "Got Milk" campaign was intended to boost sagging milk consumption among Californians in the 1990s. The campaign ads highlighted the inconvenience of running out of milk when intended to be used with certain foods, such as cookies or muffins, advising consumers to stock up on milk to avoid such inconveniences. The "Got Milk?" campaign is an example of ________ advertising. A) informational B) reminder C) institutional D) comparative E) reinforcement Answer: B Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Analytical thinking; Application of knowledge 8) ________ advertising aims to convince current purchasers that they made the right choice. A) Persuasive B) Informational C) Reinforcement D) Reminder E) Comparative Answer: C Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 9) The predominant response function for advertising is often concave, but when it is S-shaped, ________. A) sales are flat, and advertising does not generate any sales impact B) any increase in advertising spending results in a proportionally positive increase in sales C) any increase in advertising spending results in a proportionally negative decrease in sales D) some positive amount of advertising is necessary to generate any sales impact, but sales increases eventually flatten out E) advertising is not necessary to generate any sales impact Answer: D Diff: 3 LO: 20.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

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10) Which of the following conditions necessitates that the objective of advertising should be to stimulate more usage of a product? A) The advertised product belongs to a nascent product category. B) The company is not the market leader. C) The advertised brand is superior to the market leader. D) The product class is mature. E) Brand usage for the product is very high. Answer: D Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 11) Which of the following statements is true of the factors that affect an advertising budget? A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share. B) Brands in less-differentiated or commodity-like product classes require less advertising to establish a unique image. C) New products typically merit large advertising budgets to build awareness and to gain consumer trial. D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard. E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales. Answer: C Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 12) Marketers often cut the cost of advertising dramatically by using consumers as their creative team. This strategy is known as ________. A) disintermediation B) public relations C) vertical integration D) reintermediation E) crowdsourcing Answer: E Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 13) An advertising objective is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. Answer: TRUE Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 4 Copyright © 2016 Pearson Education, Inc.

14) Persuasive advertising aims to create brand awareness and knowledge of new products or new features of existing products. Answer: FALSE Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 15) Reinforcement advertising aims to stimulate repeat purchase of products and services. Answer: FALSE Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 16) When Staples introduced a new $69.99 paper-shredding device called the MailMate in 2006 by striking a two-episode deal with NBC's popular television program, The Office, it was using product placement. Answer: TRUE Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Application of knowledge 17) If the product class is mature, then the advertising objective is to convince the market of the brand's superiority. Answer: FALSE Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 18) Puffery refers to simple exaggerations in advertisements that are not meant to be believed and are considered illegal. Answer: FALSE Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 19) Advertising elasticities were estimated to be higher for established (0.3) than for new (0.1) products. Answer: FALSE Diff: 3 LO: 20.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

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20) What you say (ad copy) is more important than the number of times you say it (ad frequency). Answer: TRUE Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Analytical thinking 21) Kraft utilized customers to name its new flavor of its iconic Vegemite product, and their selection, iSnack 2.0, increased sales dramatically. Answer: FALSE Diff: 3 LO: 20.1: What steps are required in developing an advertising program? AACSB: Application of knowledge 22) In developing an advertising program, marketing managers can make the five major decisions known as the five Ms. List and explain each of these Ms. Answer: The five major decisions are: 1. Mission — sales goals and advertising objectives 2. Money — factors to consider: stage in PLC, market share and consumer base, competition and clutter, advertising frequency, and product substitutability 3. Message — message generation, message evaluation and selection, message execution, and social-responsibility review 4. Media — reach, frequency, impact, major media types, specific media vehicles, media timing, and geographical media allocation 5. Measurement — communication impact and sales impact. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Application of knowledge 23) Explain the classification of advertising objectives. Answer: The classification of advertising objectives includes: • Informative advertising aims to create brand awareness and knowledge of new products or new features of existing products. • Persuasive advertising aims to create liking, preference, conviction, and purchase of a product or service. Some persuasive advertising uses comparative advertising, which makes an explicit comparison of the attributes of two or more brands. Comparative advertising works best when it elicits cognitive and affective motivations simultaneously, and when consumers are processing advertising in a detailed, analytical mode. • Reminder advertising aims to stimulate repeat purchase of products and services. • Reinforcement advertising aims to convince current purchasers that they made the right choice. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

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24) Describe how advertising objectives are set to reflect the product class. Answer: The advertising objective should emerge from a thorough analysis of the current marketing situation. If the product class is mature, the company is the market leader, and brand usage is low, the objective is to stimulate more usage. If the product class is new, the company is not the market leader, but the brand is superior to the leader, then the objective is to convince the market of the brand's superiority. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 25) Give a brief description of the various factors that affect advertising budget decisions. Answer: The various factors that affect advertising budget decisions include: • Stage in the product life cycle — New products typically merit large advertising budgets to build awareness and to gain consumer trial. Established brands usually are supported with lower advertising budgets, measured as a ratio to sales. • Market share and consumer base — High-market-share brands usually require less advertising expenditure as a percentage of sales to maintain share. To build share by increasing market size requires larger expenditures. • Competition and clutter — In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard. Even simple clutter from advertisements not directly competitive to the brand creates a need for heavier advertising. • Advertising frequency — The number of repetitions needed to put the brand's message across to consumers has an obvious impact on the advertising budget. • Product substitutability — Brands in less-differentiated or commodity-like product classes (beer, soft drinks, banks, and airlines) require heavy advertising to establish a unique image. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 26) Briefly describe the role of television as an advertising medium. Answer: Television is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure. TV advertising has two particularly important strengths. First, it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits. Second, it can dramatically portray user and usage imagery, brand personality, and other intangibles. Because of the fleeting nature of the ad, however, and the distracting creative elements often found in it, product-related messages and the brand itself can be overlooked. Moreover, the high volume of nonprogramming material on television creates clutter that makes it easy for consumers to ignore or forget ads. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

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27) What is the role of print media in advertising? What are the major advantages and disadvantages associated with print advertising media? Answer: Print media offer a stark contrast to broadcast media. Because readers consume them at their own pace, magazines and newspapers can provide detailed product information and effectively communicate user and usage imagery. At the same time, the static nature of the visual images in print media makes dynamic presentations or demonstrations difficult, and print media can be fairly passive. The two main print media — magazines and newspapers — share many advantages and disadvantages. Although newspapers are timely and pervasive, magazines are typically more effective at building user and usage imagery. Newspapers are popular for local — especially retailer — advertising. Although advertisers have some flexibility in designing and placing newspaper ads, relatively poor reproduction quality and short shelf life can diminish the ads' impact. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 28) What are the legal and social issues associated with advertising? Answer: To break through clutter, some advertisers believe they have to be edgy and push the boundaries of what consumers are used to seeing in advertising. In doing so, marketers must be sure advertising does not overstep social and legal norms or offend the general public, ethnic groups, racial minorities, or special-interest groups. A substantial body of laws and regulations governs advertising. Under US law, advertisers must not make false claims, such as stating that a product cures something when it does not. They must avoid false demonstrations, such as using sand-covered Plexiglas instead of sandpaper to demonstrate that a razor blade can shave sandpaper. It is illegal in the United States to create ads that have the capacity to deceive, even though no one may actually be deceived. The challenge is telling the difference between deception and "puffery" — simple exaggerations that are not meant to be believed and that are permitted by law. Sellers in the United States are legally obligated to avoid bait-and-switch advertising that attracts buyers under false pretenses. Advertising can play a more positive broader social role. The Ad Council is a nonprofit organization that uses top-notch industry talent to produce and distribute public service announcements for nonprofits and government agencies. From its early origins with "Buy War Bonds" posters, the Ad Council has tackled innumerable pressing social issues through the years. One of its recent efforts featured beloved Sesame Street stars Elmo and Gordon exhorting children to wash their hands in the face of the H1N1 flu virus. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Ethical understanding and reasoning

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29) What are the four types of advertising timing patterns available to marketers when launching a new product? Answer: In launching a new product, the advertiser must choose among continuity, concentration, flighting, and pulsing. • Continuity means exposures appear evenly throughout a given period. Generally, advertisers use continuous advertising in expanding market situations, with frequently purchased items, and in tightly defined buyer categories. • Concentration calls for spending all the advertising dollars in a single period. This makes sense for products with one selling season or related holiday. • Flighting calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity. It is useful when funding is limited, the purchase cycle is relatively infrequent, or items are seasonal. • Pulsing is continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity. It draws on the strength of continuous advertising and flights to create a compromise scheduling strategy. Those who favor pulsing believe the audience will learn the message more thoroughly, and at a lower cost to the firm. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 30) Place advertising, or out-of-home advertising, is a broad category that includes many creative and unexpected forms to grab consumers' attention, including all of the following EXCEPT ________. A) billboards B) yellow pages C) public spaces D) product placement E) point of purchase Answer: B Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 31) Which of the following is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure? A) television B) radio C) newspapers D) magazines E) billboards Answer: A Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking

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32) TV advertising is considered to be particularly advantageous because ________. A) the low volume of nonprogramming material on television makes it difficult for consumers to ignore or forget ads B) it provides detailed product information and effectively communicates user and usage imagery C) it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits D) TV channels are very targeted, ads are relatively inexpensive to produce and place, and short closings allow for quick response E) it lets companies achieve a balance between broad and localized market coverage Answer: C Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 33) According to researchers, which of the following is the correct order in which content of print advertisements matter? A) picture-headline-copy B) copy-picture-headline C) headline-copy-picture D) picture-copy-headline E) copy-headline-picture Answer: A Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 34) Which of the following is the main advantage of radio as an advertising medium? A) low competition B) more attention than television C) longer duration of ad exposure D) flexibility E) standardized rate structures Answer: D Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking

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35) ________ refers to simple exaggerations in advertisements that are not meant to be believed and that are permitted by law. A) Puffery B) Boosterism C) Astroturfing D) Doublethink E) Subliminal advertising Answer: A Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 36) ________ is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience. A) Media scheduling B) Content analysis C) Media selection D) Communication design E) Copy testing Answer: C Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 37) The number of different persons or households exposed to a particular media schedule at least once during a specified time period is known as ________. A) range B) impact C) intensity D) reach E) frequency Answer: D Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective think...