Question 1

Comparative advertising is never used in conjunction with persuasive advertising.

Accepted Answer

A) True 
 B)False  False

Question 2

As the text points out, advertisers use a combination of quantitative and qualitative factors when evaluating the suitability of different media options for inclusion in an advertising campaign. An advertiser of fine foods is seeking to place some advertising on popular foodie websites. The table below shows available data for a selection of popular websites. Comment on the suitability of the websites for a marketer of fine foods.
 \(\begin{array}{|l|l|l|l|l|}
\hline \text { Web Site } & \begin{array}{l}
\text { Unique } \
\text { Visitors }
\end{array} & \begin{array}{l}
\text { P age } \
\text { Impressions }
\end{array} & \begin{array}{l}
\text { Average Time } \
\text { Spent on Site }
\end{array} & \text { Core Demographic } \
\hline \text { Taste.com.au } & 1,984,000 & 31,390,000 & \text { n.a. } & \begin{array}{l}
\text { Female, aged 25- 49 } \
\text { earning p.a. }
\end{array} \
\hline \begin{array}{l}
\text { Australian G ourmet } \
\text { Traveller }
\end{array} & 179,631 & 1,100,500 & 7 \text { minutes } & \begin{array}{l}
\text { Male and Female AB } \
\text { socioeconomic }, \
\text { aspirational s egm hea } \
\text { spenders on dining ou } \
\text { lifestyle products }
\end{array} \
\hline \text { Donna Hay Online } & 115,000 & 95,000 & \text { 3 minutes } & \begin{array}{l}
\text { Female, aged 25- 39, } \
\text { pref } \text { or } \
\text { to at home and enjoy } \
\text { entertaining }
\end{array} \
\hline
\end{array}\)

Accepted Answer

The profiles clearly show that the audience for each of the three food websites is very different.
In terms of audience quality, the three websites are very different. Taste.com.au attracts women who are in middle to lower socioeconomic groups, Australian Gourmet Traveller (AGT) attracts the highest socioeconomic group and its audience includes more males. Donna Hay Online attracts a slightly more youthful audience and perhaps significantly its audience show a preference for cooking at home and entertaining. Donna Hay Online is potentially a strong candidate for advertising of food ingredients.
In terms of reach, we refer to the number of unique visitors. Taste.com attracts the largest number of site visitors, followed by AGT and Donna Hay. However, the other information provides more detail about how site visitors actually use the relevant sites. The number of page impressions provides information about how much of the content site visitors actually view. Visitors to Taste.com traverse approximately 15 of its pages while visitors to AGT and Donna Hay view an average of 6 and 8 pages respectively.
The data also tells us that visitors to Donna Hay remain on the site for longer with an average duration of 7 minutes. This suggests that visitors enjoy the site and for advertisers it means that there are more opportunities for site visitors to notice any advertising messages. On the other hand, visitors to Donna Hay only remain on the site for 3 minutes, which might suggest that they use the site to locate specific content such as recipes and then leave. For an advertiser this could suggest that there are fewer opportunities for site visitors to notice the advertisement. Of particular concern is that Taste.com does not provide information about session duration. Most advertisers are sceptical about sites that fail to provide this type of basic information. While we can only speculate as to the reason for this oversight, it may suggest that the average duration is well below industry averages, which in turn might suggest that visitors rapidly click through this site on their way to something else. In the trade, average duration on site is also known as "site stickiness." When site stickiness figures are low, the site is not generally seen to be a great avenue for advertising.
After evaluating all this information, no clear website emerges as a favourite. Taste.com commands the largest audience, AGT attracts a demonstrably up- market audience who spend a lot of time on the site while Donna Hay visitors seem to view more pages while they are on the site, possibly while searching for recipe ideas. Each site has its strengths and weaknesses. To make final decisions, the advertiser might also consider the relative cost of each website and the advertising options available.
Students should note that the data presented in the table is authentic and was collected from News Limited and Donna Hay in August, 2012.

Question 3

In business markets, advertising can build awareness and comprehension, generate leads, and legitimise the company and its products.

Accepted Answer

A) True 
 B)False  True

Question 4

Radco Inc produces a brand of a mature product that is similar to five other brands on the market. In setting its advertising budget, Radco must first consider:

Accepted Answer

A)  advertising frequency. 
B)  advertising reach. 
C)  the need for product differentiation. 
D)  the marketing strategy. 
E)  the stage in the product life cycle. 
A)  advertising frequency. 
B)  advertising reach. 
C)  the need for product differentiation. 
D)  the marketing strategy. 
E)  the stage in the product life cycle.

Question 5

Media planners must look at both the total cost of using a medium and the cost per one thousand exposure.

Accepted Answer

A) True 
 B)False

Question 6

Word- of- mouth is an important part of the marketing communication system.

Accepted Answer

A) True 
 B)False

Question 7

Robinsons Department Stores of Singapore traditionally stages a major Easter Sale each year. If it organised a harbour "dragon- boat race" to coincide with the sale, such a race would be best described as an event.

Accepted Answer

A) True 
 B)False

Question 8

The affordable method of budgeting for promotion recognises the effect of promotion on sales volume.

Accepted Answer

A) True 
 B)False

Question 9

Bea Ware is currently selecting media for an advertising campaign. She is studying some research findings from a cross- media study which, for a number of popular media vehicles, provides relative measures of ad recall; the amount of attention audience members pay to the medium and whether audience members have acted on the information in the ad. Bea is investigating:

Accepted Answer

A)  media reach. 
B)  media interactivity. 
C)  media frequency. 
D)  media impact. 
E)  none of the above 
A)  media reach. 
B)  media interactivity. 
C)  media frequency. 
D)  media impact. 
E)  none of the above

Question 10

During the introductory stage of a product's life cycle, firms should use __________ to encourage retail channels to stock the product.

Accepted Answer

A)  personal selling 
B)  public relations 
C)  sales promotion 
D)  direct marketing 
E)  advertising 
A)  personal selling 
B)  public relations 
C)  sales promotion 
D)  direct marketing 
E)  advertising

Question 11

Research suggests that an advertiser is better off asking questions and letting consumers:

Accepted Answer

A)  hang out for a satisfactory solution. 
B)  ask more questions. 
C)  draw their own conclusions. 
D)  frame their own narrative ending. 
E)  none of the above 
A)  hang out for a satisfactory solution. 
B)  ask more questions. 
C)  draw their own conclusions. 
D)  frame their own narrative ending. 
E)  none of the above

Question 12

Barbara is in the third year of a business degree, majoring in music industry management. To gain work experience, she volunteered to work as a manager for a local jazz- funk fusion band. As time progressed, Barbara found her duties primarily consisted of securing free listings in gig guides and on music websites. She also writes reviews of the band's performances for music industry magazines and maintains the band's blog. Finally, Barbara has assisted the band to apply for an Arts Council grant for the purpose of taking the band on tour into regional and remote Australia. Barbara is primarily engaged in:

Accepted Answer

A)  buzz marketing. 
B)  public relations. 
C)  advertising. 
D)  publicity. 
E)  social network advertising. 
A)  buzz marketing. 
B)  public relations. 
C)  advertising. 
D)  publicity. 
E)  social network advertising.

Question 13

When introducing a new product category, the advertiser would be wise to use:

Accepted Answer

A)  persuasive advertising. 
B)  humourous advertising appeals. 
C)  emotional advertising appeals. 
D)  informative advertising. 
E)  comparative advertising. 
A)  persuasive advertising. 
B)  humourous advertising appeals. 
C)  emotional advertising appeals. 
D)  informative advertising. 
E)  comparative advertising.

Question 14

An advertising campaign for Clean Up Australia encouraged the public to "Do the Right Thing: Put It in the Bin." This is an example of which type of advertising appeal?

Accepted Answer

A)  educational 
B)  persuasive 
C)  informative 
D)  moral 
E)  comparative 
A)  educational 
B)  persuasive 
C)  informative 
D)  moral 
E)  comparative

Question 15

JogMate is a protein that comes in a tube and is designed to be consumed within 30 minutes of when you finish exercising. The product claims it increases glycogen storage, decreases protein breakdown, and allows your muscles to recover faster from a strenuous workout. Steve Tilford is a Bike Masters' World Champion who endorses the use of JogMate. Its ad reads "Why Steve Tilford Gets More Out of His Workouts Than You Do." For bicyclists, this headline would have a(n)_________ appeal.

Accepted Answer

A)  moral 
B)  emotional 
C)  cognitive 
D)  social 
E)  rational 
A)  moral 
B)  emotional 
C)  cognitive 
D)  social 
E)  rational

Question 16

Michelin Tyres has commercials featuring diaper- clad babies sitting in Michelin Tyres. A voiceover tells you the tyres are more expensive than many brands but that what is riding on them is priceless. This is an example of a(n)_________ appeal.

Accepted Answer

A)  emotional 
B)  discriminant 
C)  social 
D)  rational 
E)  moral 
A)  emotional 
B)  discriminant 
C)  social 
D)  rational 
E)  moral

Question 17

A skincare manufacturer is planning a magazine advertising campaign and wants to identify the best possible women's magazine for this task. Some preliminary background on the top selling Australian magazines, their readership and advertising rates has been prepared and is summarised in the figure

Figure Ad rates and readership figures for selected women's magazines
$\begin{array} { | l | l | l | } 
\hline \text { Magazine Title } & \begin{array} { l } 
\text { Advertising Rate } \
\text { (Full page, four colour) }
\end{array} & \begin{array} { l } 
\text { Readers } \
\text { hip } \
\text { (Number } \
\text { of } \
\text { people) }
\end{array} \
\hline \text { Harper's Bazaar } & \$ 10,500 & 213,000 \
\hline \text { Cleo } & \$ 16,180 & 378,000 \
\hline \text { Cosmopolitan } & \$ 18,950 & 529,000 \
\hline \text { Marie Claire } & \$ 20,600 & 420,000 \
\hline \text { Vogue Australia } & \$ 12,500 & 356,000 \
\hline
\end{array}$
-Which of the five magazine titles has the lowest reach?

Accepted Answer

A)  Cosmopolitan 
B)  Vogue Australia 
C)  Cleo 
D)  Harper's Bazaar 
E)  Marie Claire 
A)  Cosmopolitan 
B)  Vogue Australia 
C)  Cleo 
D)  Harper's Bazaar 
E)  Marie Claire

Question 18

Alice Springs Consolidated is preparing to introduce a unique new product. The firm's first task will be to build awareness in its target market.

Accepted Answer

A) True 
 B)False

Question 19

The competitive- parity method is a promotional budgeting method that forces management to spell out assumptions about the relationship among dollars spent, exposure levels, trial rates, and regular usage.

Accepted Answer

A) True 
 B)False

Question 20

Auckland Financial Services is determined to employ its best estimate of the relationship between dollars spent and promotion results. It is most likely to use:

Accepted Answer

A)  affordable budgeting. 
B)  competitive- parity budgeting. 
C)  objective- and- task budgeting. 
D)  percentage- of- sales budgeting. 
E)  none of the above 
A)  affordable budgeting. 
B)  competitive- parity budgeting. 
C)  objective- and- task budgeting. 
D)  percentage- of- sales budgeting. 
E)  none of the above

Comparative advertising is never used in conjunction with persuasive advertising.

In business markets, advertising can build awareness and comprehension, generate leads, and legitimise the company and its products.

Radco Inc produces a brand of a mature product that is similar to five other brands on the market. In setting its advertising budget, Radco must first consider:

Media planners must look at both the total cost of using a medium and the cost per one thousand exposure.

Word- of- mouth is an important part of the marketing communication system.

Robinsons Department Stores of Singapore traditionally stages a major Easter Sale each year. If it organised a harbour "dragon- boat race" to coincide with the sale, such a race would be best described as an event.

The affordable method of budgeting for promotion recognises the effect of promotion on sales volume.

During the introductory stage of a product's life cycle, firms should use __________ to encourage retail channels to stock the product.

Research suggests that an advertiser is better off asking questions and letting consumers:

When introducing a new product category, the advertiser would be wise to use:

An advertising campaign for Clean Up Australia encouraged the public to "Do the Right Thing: Put It in the Bin." This is an example of which type of advertising appeal?

Michelin Tyres has commercials featuring diaper- clad babies sitting in Michelin Tyres. A voiceover tells you the tyres are more expensive than many brands but that what is riding on them is priceless. This is an example of a(n)_________ appeal.

Alice Springs Consolidated is preparing to introduce a unique new product. The firm's first task will be to build awareness in its target market.

The competitive- parity method is a promotional budgeting method that forces management to spell out assumptions about the relationship among dollars spent, exposure levels, trial rates, and regular usage.

Auckland Financial Services is determined to employ its best estimate of the relationship between dollars spent and promotion results. It is most likely to use:

Marketing: Creating Superior Customer Value

Marketing: Delivering and Capturing Value

Strategic Planning and Marketing

Marketing Strategies for Competitive Advantage

The Global Marketing Environment

Information Management and Marketing Research

Consumer Behaviour

Business-To-Business Behaviour

Market Segmentation, Targeting and Positioning

Products and Services Marketing

New Products

Pricing for Value

Marketing Channels and Logistics Networks

Retailing and Wholesaling

Sales Promotion and Selling

Direct and Online Marketing

Tapping Into Markets Across the Globe

Responsible Marketing

Filters

Exam 15: Advertising and Public Relations

Comparative advertising is never used in conjunction with persuasive advertising.

In business markets, advertising can build awareness and comprehension, generate leads, and legitimise the company and its products.

Radco Inc produces a brand of a mature product that is similar to five other brands on the market. In setting its advertising budget, Radco must first consider:

Media planners must look at both the total cost of using a medium and the cost per one thousand exposure.

Word- of- mouth is an important part of the marketing communication system.

Robinsons Department Stores of Singapore traditionally stages a major Easter Sale each year. If it organised a harbour "dragon- boat race" to coincide with the sale, such a race would be best described as an event.

The affordable method of budgeting for promotion recognises the effect of promotion on sales volume.

During the introductory stage of a product's life cycle, firms should use __________ to encourage retail channels to stock the product.

Research suggests that an advertiser is better off asking questions and letting consumers:

When introducing a new product category, the advertiser would be wise to use:

An advertising campaign for Clean Up Australia encouraged the public to "Do the Right Thing: Put It in the Bin." This is an example of which type of advertising appeal?

Michelin Tyres has commercials featuring diaper- clad babies sitting in Michelin Tyres. A voiceover tells you the tyres are more expensive than many brands but that what is riding on them is priceless. This is an example of a(n)_________ appeal.

Alice Springs Consolidated is preparing to introduce a unique new product. The firm's first task will be to build awareness in its target market.

The competitive- parity method is a promotional budgeting method that forces management to spell out assumptions about the relationship among dollars spent, exposure levels, trial rates, and regular usage.

Auckland Financial Services is determined to employ its best estimate of the relationship between dollars spent and promotion results. It is most likely to use:

Marketing: Creating Superior Customer Value

Marketing: Delivering and Capturing Value

Strategic Planning and Marketing

Marketing Strategies for Competitive Advantage

The Global Marketing Environment

Information Management and Marketing Research

Consumer Behaviour

Business-To-Business Behaviour

Market Segmentation, Targeting and Positioning

Products and Services Marketing

New Products

Pricing for Value

Marketing Channels and Logistics Networks

Retailing and Wholesaling

Sales Promotion and Selling

Direct and Online Marketing

Tapping Into Markets Across the Globe

Responsible Marketing

Filters