General content: multiple-choice questions




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APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE
Procter & Gamble is a major manufacturer of consumer packaged goods and spent almost $3 billion on consumer advertising in 2004, much of it on television. P&G has nationwide distribution of its products and uses television advertising because of that. However, P&G is concerned about the decrease in television audiences in recent years and the fact that consumers are better able to avoid television commercials.


  1. Mini-Case Question. What type of television delivery system allows P&G to advertise on hundreds of television stations simultaneously across the country during prime time programs?

    1. network television

    2. public television

    3. specialty television

    4. pay-per-view

    5. interactive television

(a; easy; p. 264; LO2; AACSB Reflective Thinking)


  1. Mini-Case Question. The bulk of P&G’s television advertising is 30-second commercials that air nationwide during several different programs every day of the week. What type of television advertising is this?

    1. sponsorship

    2. participations

    3. spot announcements

    4. on-network syndication

    5. specialty television

(b; moderate; p. 271; LO2; AACSB Reflective Thinking)


  1. Mini-Case Question. One thing P&G has done recently is to develop family-friendly programming, assuming the total financial responsibility for producing the program and providing the accompanying commercials. They are concerned that some of the controversial programming on television today hurts their brand’s image if they advertise during that type of programming. What form of television advertising is P&G undertaking?

    1. sponsorship

    2. participations

    3. spot announcements

    4. on-network syndication

    5. specialty television

(a; moderate; p. 271; LO2; AACSB Analytic Skills)


  1. Mini-Case Question. Another major concern of P&G and other advertisers is the fact that consumers are increasingly avoiding commercials, either by zapping them or using technology, such as digital video recorders, to avoid them completely. As a result, they are making a concerted effort to get the actors in movies and television programs to verbally or visually expose their brands to the audience. What is this practice known as?

    1. sponsorship

    2. product placement

    3. participations

    4. de-clutter

    5. share

(b; moderate; p. 278; LO4; AACSB Reflective Thinking)

APPLICATION QUESTIONS: SHORT-ANSWER


  1. What was the challenge facing the agency of Holiday Inn Express, which was described in the chapter opening vignette, and how did they address it?

Answer:
The challenge facing the agency of Holiday Inn Express was to create a brand in a well-established category and find a way to distinguish the subbrand from Holiday Inn with less than half the budget of its fiercest competitor.

The campaign focused on the smart road warrior who got a good night's rest while spending his money wisely. Wacky 'smart' people stepped up to emergency situations as a result of having stayed at Holiday Inn Express. This created the brand in a popular, funny and memorable way.

TV was the primary medium and the media buys were precise. They bought time on Saturday and Sunday when the businessmen were planning trips and on cable stations they were likely to watch.

(moderate; pp. 255-256)


  1. Coca-Cola had an “Always Coca-Cola” campaign in which their agency created jingles in several different music styles, such as rock-and-roll, country, hip-hop, and easy rock. The musical quality was on par with the music programming heard on radio stations, and they wanted to ensure that consumers heard it at that quality level. They also wanted as many consumers as possible to be exposed to the ads. Explain which type of radio is best at meeting these requirements?

Answer:
Although cable, satellite, and web radio offer excellent sound quality, not all consumers subscribe or have access to these radio options. FM radio, on the other hand, offers better tonal quality than AM and is free to consumers—all they need is a radio receiver.

(b; difficult; p. 258; LO1; AACSB Reflective Thinking)


  1. The Secret Gallery is a unique gift and home accessories store that recently opened. The owners want to advertise their business and are looking for an advertising medium that will allow them to advertise frequently and at a low cost to women aged 18 to 45. They want to get the audience curious about the uniqueness of the offerings and get them imagining the uniqueness and beauty they can expect when they visit the store. Based on this information, recommend the appropriate medium for them.

Answer:
Radio would probably be most appropriate because it is the least expensive of all media, and advertisers can easily build frequency through repetition. Based on the nature of the medium, reminder messages, particularly jingles and other musical forms, are easier to repeat without becoming irritating. It is also a medium that allows the listener to imagine by using words, sound effects, music, and tone of voice to enable listeners to create their own pictures.

(moderate; p. 262; LO1; AACSB Reflective Thinking)


  1. Community Coffee once claimed in one of their television commercials that it was the “state coffee of Louisiana,” and a nice lady mockingly said at the end of the commercial that “You’ve got to be a Yankee if you don’t like Community Coffee!” Community wants to advertise on cable television, especially during food-related shows that appear on the Food Network. Because Community Coffee is distributed only in the South, they don’t want nationwide exposure for their ads. Explain how Community can advertise on a regional basis on cable television.

Answer:
With local cable scheduling, advertisers can show their commercials to highly restricted geographic audiences through interconnects, a special cable technology that allows local or regional advertisers to run their commercials in small geographic areas through the interconnection of a number of cable systems.

(moderate; p. 266; LO2; AACSB Use of IT)


  1. Ruth was watching public television and noticed that there were commercial messages. She always thought that public television was commercial-free. Is that true? Explain your answer.

Answer:
Although many people still consider public television to be commercial-free, in 1984 the FCC liberalized its rules and allowed the public broadcasting system (PBS) stations some leeway in airing commercial messages, which are called program sponsorships. The FCC says these messages should not make a call to action (ask for a purchase) or make price or quality comparisons. Ads are allowed to appear only during the local 2.5-minute program breaks, and each station maintains its own acceptability guidelines.

(moderate; p. 266; LO2; AACSB Reflective Thinking)


  1. Six Flags Fiesta Texas is located in San Antonio, Texas. Although several locals and other Texans visit the park every year, Six Flags wants to target the millions of tourists that visit the beautiful city for the Alamo and the riverwalk area. They would like to reach these tourists through television in their hotel rooms. Explain how they can do that.

Answer:
One programming option for television is Specialty Television. Hotels and restaurants use multipoint distribution systems (MDS) to provide guests with movies and other entertainment. These systems can also carry ads and would be ideal for Six Flags to use if that is the target market they are seeking.

(moderate; p. 267; LO2; AACSB Reflective Thinking)


  1. May is the time of year when agencies start purchasing advertising time during prime time network programming for the next television season that begins in September. Name and describe the three forms of network television advertising.

Answer:
The forms of network television advertising are:

(1) Sponsorships—Advertiser assumes the total financial responsibility for producing the program and providing the accompanying commercials.

(2) Participations—Advertiser pays for 10, 15, 20, 30, or 60 seconds of commercial time during one or more programs.

(3) Spot announcements—Commercials that appear in the breaks between programs, which local affiliates sell to advertisers who want to show their ads locally. Commercials are sold on a station-by-station basis to local, regional, and national advertisers.

(moderate; pp. 271-272; LO2; AACSB Reflective Thinking)




  1. In Prof. Rotfeld's opinion presented in “A Matter of Practice,” is advertising the solution to persuading people to change their 'problem' behavior?

Answer:
Advertising, especially public service announcements (PSA's), are not effective at changing people's problem behavior, such as rape, drunk driving, cigarette smoking, etc. The people behind the PSA's presume that advertising is the solution. However, the PSA placements are free, therefore there is no assurance that the ad will reach the targeted audience. Maybe some people change, but this happens rarely. Advertising is then a waste of resources so become part of the problem rather than the solution.

(moderate; p. 278; AACSB Ethical Reasoning)


  1. As described in “The Inside Story,” Framsokn, historically one of the three largest political parties in Iceland, found itself in a downward spiral in popularity for the parliamentary election in 2003. Describe how their agency turned this around for them.

Answer:
They used humorous, engaging television ads with a serious selling point. The agency’s mission was to break the mold of political advertising with a new, fresh approach to politics. They took a more “consumer advertising” approach, and all ads had to pass the “what’s in it for me” test and have a strong selling point. Analysis of the party’s research resulted in a targeting strategy based more on lifestyle than demographics. They used TV advertising because of its ability to reach a broad target audience, as well as to deliver the image message and resonate in a gently humorous way with the concerns of voters. The campaign was recognized as having turned around the party’s image and as the best political campaign that year—and possibly ever in Iceland.

(moderate; p. 274)


  1. A recent Wall Street Journal article was entitled “Marketing Nirvana Is to Be a President’s Preferred Brand.” The article discussed how President and Mrs. Bush receive about 1,000 gifts each month and keep and use only a handful of them. The president must disclose this information to the public, and marketers want the president to choose their brands. One TV news story discussed how President Bush has stopped running and has started biking instead, and video showed him riding a Trek bicycle. Based on what you learned from this chapter, why are so many marketers eager to give their products to the president?

Answer:
Product placement is a practice in which a company pays to have verbal or visual brand exposure in a movie or television program. Although technically not product placement, having the president seen using your brand could be construed as an implied endorsement by the president. Advantages of product placement include demonstrating the product in use in a natural setting (i.e., the president riding a Trek bike), it’s unexpected and catches the audience when their resistance to advertising messages may be dialed down (i.e., consumers don’t expect the president to be a paid product endorser), and it’s good for engaging the affections of other stakeholders, such as employees and dealers. However, disadvantages include not being noticed, problems if there is not a match between the product and the audience, and the success or failure of a movie is not known when the placement is negotiated (in this case, there is no guarantee that the president will even accept your gift and give you exposure).

(moderate; p. 278; LO4; AACSB Reflective Thinking)


  1. Based on the “Practical Tips” given in this chapter, give three reasons to use radio as an advertising medium.

Answer:
The “Practical Tips” box gives several reasons to use radio, and students can answer any three of the following. Use radio if . . .

(1) You are a local business

(2) You need a highly targeted local audience

(3) You have a relatively small advertising budget

(4) You want to build frequency

(5) You know the timing when your audience is considering the purchase

(6) Your audience’s interests align with certain types of music, advice programs, or talk shows

(7) You have a personal message that uses the power of the human voice

(8) You have a message that works well in a musical form or one that is strong in mental imagery

(9) You need a reminder message

(difficult; p. 279)




  1. Based on the “Practical Tips” given in this chapter, give three reasons to use television as an advertising medium.

Answer:
The “Practical Tips” box gives several reasons to use television, and students can answer any three of the following. Use television if . . .

(1) You want to reach a wider mass audience

(2) Your audience’s interests align with a certain type of cable television program

(3) You have a relatively good advertising budget

(4) You have a product that needs both sight and sound, such as an emotional message, a demonstration, or a drama

(5) You want to prove something so the audience can see it with their own eyes

(6) You want the halo effect of a big TV ad to impress other stakeholders, such as dealers and franchisees

(7) You need to create or reinforce brand image and personality

(difficult; p. 280; LO2; AACSB Reflective Thinking)




  1. Based on the “Practical Tips” given in this chapter, give three reasons to use movie ads as an advertising medium.

Answer:
The “Practical Tips” box gives several reasons to use movie ads, and students can answer any three of the following. Use movie ads if:

(1) You are advertising a national brand and have the budget to do high-quality commercials

(2) You want your brand to be associated with the movie’s story and stars

(3) The people in the audience match your brand’s target audience

(4) Your commercial has enough visual impact and quality production that it will look good next to the movie previews

(difficult; p. 280; LO2; AACSB Reflective Thinking)


  1. Based on the “Practical Tips” given in this chapter, give three reasons to use product placement as an advertising medium.

Answer:
The “Practical Tips” box gives several reasons to use product placement, and students can answer any three of the following. Use product placement if . . .

(1) You want your brand to be associated with the movie’s story and stars

(2) The people in the audience match your brand’s target audience

(3) There is a natural fit between the product and the movie’s storyline

(4) There is an opportunity for the brand to be a star

(5) The placement will appeal to the brand’s stakeholders

(6) You have the budget for a campaign to support the placement

(difficult; p. 280; LO2; AACSB Reflective Thinking)


  1. Describe the challenge facing Sirius satellite radio and the risky step they took to meet their challenge as described in the “Hands-On” case at the end of the chapter.

Answer:
Sirius is trying to change the way people listen to radio by convincing them to pay a monthly fee for almost 200 channels of radio, much of it commercial-free. But Sirius is number two in the industry, having only 600,000 subscribers compared to XM radio’s 2.5 million. The risky move Sirius has taken is signing “shock jock” Howard Stern to leave the radio airwaves and bring his program to Sirius in 2006. For this deal to be profitable, Sirius figures it must bring in 1 million new subscribers. The other risk is that Stern might get even “raunchier” once he moves to the largely unregulated satellite network.

(moderate; p. 283; LO2; AACSB Reflective Thinking)
APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER
John is opening a Lion’s Choice fast food roast beef restaurant in Baton Rouge, Louisiana. This restaurant is actually nationwide, but this is the first franchise opening in this city. In fact, their strategy is to increase its presence in the South, where currently it does not have as many outlets as in other parts of the country but is opening about one new outlet each month. Although the national office does some advertising, franchisees are allowed to do local advertising using advertisements provided to them by the national office. However, John has only about $1,000 to purchase media exposure.


  1. Mini-Case Question. What broadcast media and delivery systems is the national office likely to use for its advertising? Explain your answer.

Answer:
Because this restaurant has a national presence, participations on network television can reach a wide audience. Additionally, they could also use network and/or syndicated radio advertising. If the national office wants to increase its advertising exposure in the South where it is currently expanding, they can purchase spot announcements from local television stations or purchase local cable time to more heavily target the South. Radio can be very effective for targeting a specific geographic region as well.

(moderate; pp. 264-267; LO2; AACSB Reflective Thinking)


  1. Mini-Case Question. What broadcast media and delivery systems is John, the franchise owner in Baton Rouge, likely to use for advertising? Explain your answer.

Answer:
John is a local business with a small advertising budget aimed at the Baton Rouge area, so radio is an appropriate medium for him. The “Practical Tips” box gives useful information to help students answer this question. For example, John has a local business, he has a relatively small advertising budget, and he knows the timing when his audience is considering the purchase (i.e., lunch and dinner). These are characteristics that lend themselves well to using radio. He will most likely advertise on AM and/or FM radio by purchasing spot radio advertising, that is, placing an ad with an individual station rather than through a network.

(moderate; pp. 264-267; LO2; AACSB Reflective Thinking)


  1. Mini-Case Question. John really wants consumers to see the delicious roast beef sandwiches Lion’s Choice has to offer. Which broadcast media is NOT appropriate for his needs? Explain your answer.

Answer:
If John wants consumers to see the product, radio is not an appropriate medium because of the lack of visuals.

(easy; p. 257; LO1; AACSB Reflective Thinking)


  1. Mini-Case Question. John wants to learn more about the audiences of the local broadcast media in Baton Rouge. Name the companies that provide audience data for these media and explain how they collect this information.

Answer:
The major audience-rating services for radio are Arbitron and Radio’s All-Dimension Audience (RADAR). Arbitron estimates the size of the radio audience for more than 250 markets in the United States. They use a seven-day self-administered diary that the person returns to Arbitron at the end of the week. RADAR deals with both local and network radio. For RADAR (owned by Arbitron), Statistical Research calls 12,000 respondents for seven consecutive days and asks about network radio listening done the day before.


Several independent rating firms periodically sample a portion of the television viewing audience, assess the size and characteristics of the audiences watching specific shows, and then make these data available to advertisers and ad agencies. Currently, A. C. Nielsen dominates this industry and provides the most commonly used measure of national and local television audiences. They measure television audiences at two levels: network and spot. In some markets, respondents hook a device to their TVs to monitor what station it is tuned in to (i.e., audiometer), and in some cases, the devise also records which family members are viewing at that time (i.e., people meter). In smaller markets, such as Baton Rouge, respondents most likely fill out a viewing diary for the week. Diaries are mailed each week during survey months to sample homes in each of the 211 television markets.

(moderate; pp. 260, 268; LO2; AACSB Reflective Thinking)




  1. Mini-Case Question. The local television station shared audience data with John to help him determine during which time he should advertise. It was rather confusing to him, and he wasn’t sure what rating and share actually meant. Explain these two concepts.

Answer:
A rating compares the number of viewers of a specific television show to the total number of TV households in the market regardless of whether or not those TVs are in use. Share compares the same number of viewers of a specific television show not to the number of TV households, but, rather, to the number of TV sets turned on. So the share figure is always larger than the rating, because the base is smaller.



(moderate; p., 269; LO2; AACSB Reflective Thinking)

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall
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