Exam 17: Advertising and Public Relations

In a comparative advertisement, advertisers point out that their brand has characteristics that are superior to those of competing brands, but they do not actually mention the brand names of competitors.

Some of the posttest methods for measuring advertising effectiveness are based on how well consumers remember advertising and include (1) recognition tests and (2) recall tests. What is the basic difference between these two approaches?

Scenario 17.2 Use the following to answer the questions. The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves over 1.9 million bank accounts. Refer to Scenario 17.2. When deciding on its advertising allocation for the coming year, State Farm Insurance could choose to spend the same amount as Safe Auto, another auto insurance company, or it could allocate an amount that is 10% of last year's premiums. If State Farm uses the same amount as Safe Auto, this method of advertising appropriation is known as the ____ approach; if State Farm uses the amount based on last year's premiums, the method would be _____.

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

Debra has been given the responsibility of determining the advertising appropriation for her firm's newest marketing campaign. At first she thinks that determining the advertising objectives and breaking them into tasks is the best way. However, Debra notices that past sales have been relatively constant, she multiplies the firm's past sales by a standard percentage based on what her firm usually spends on advertising. Debra is using the ________________ approach. The problem of this approach is that it assumes _________________________.

Jackie is interested in measuring the effectiveness of her firm's public relations campaigns. She would like to perform a content analysis of the firm's messages as well as a readership survey. Jackie is most likely performing a

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

An advertising platform is the

Mike Stevens wonders whether the creative idea of using the character "Tom T. Turtle" as an image for marketing a new line of running shoes will be successful. He should suggest to his account representative that a(n) ____ be used to pretest the campaign.

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.

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

Sam works for a national sporting goods store in the marketing department. He wants to place advertisements in sports magazines that target teenagers. He notices that the sports preferences of teenagers tend to differ in different parts of the country. In one geographic area, for instance, teens are highly into skating culture. Along the coast, however, many teenagers are more interested in surf culture. Because these target markets differ, Sam should probably try to place advertisements in _________________ of magazines.

Darcy presents an identification card at the supermarket checkout and has a microcomputer attached to her TV. Information from both of these is sent to a research facility. Darcy is providing

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

Because ad agencies often get commissions on media purchases, firms can obtain some agency services at moderate prices.

Because ad agency personnel are outsiders to the firms, they may not judge the firm's product objectively.

The first stage in the development of any advertising campaign is

Monroe works for NASCAR where his responsibilities include maintaining favorable relationships between the organization and its stakeholders. Monroe is most likely employed in

Scenario 17.1 Use the following to answer the questions. The Toyota Motor Corporation is developing its promotional plan for the coming year and is considering several types of advertising to communicate its messages. Toyota will likely advertise its vehicle, the Venza, on TV, on its website, in major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs. Refer to Scenario 17.1. The advertising mentioned above in which Toyota features all brands of the company would be an example of

If a firm fails to address the media and the public during a major public relations crisis, it is likely rumors and misinformation will develop that could worsen the situation.