Engaging Consumers and Communicating Customer Value Answers Part 3

62) The aim of ________ is to make ads and brand content so engaging or useful that people want to watch them. A) branded entertainment B) advertainment C) social advertising D) subliminal advertising E) infotainment advertising Answer: B 63) Which of the following is an example of branded entertainment? A) a company placing its product in a movie scene B) a company using a celebrity to endorse a product C) a company airing its advertisements in movie theaters D) a company using an acclaimed movie director to film an advertisement E) a company using a famous song in its advertisement Answer: A 64) Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation comedy about empty nesters. The conditions of the agreement state that the situation comedy will feature only the Starbucks brand of coffee. What kind of advertising technique is being used in this example? A) geofencing B) advertainment C) product placement D) vertical integration E) subliminal advertising Answer: C 65) The ________ style of advertising shows ordinary people clearly using a product in a normal setting. A) personality symbol B) slice of life C) mood or image D) testimonial evidence E) technical expertise Answer: B 66) Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising methods most likely used in the VitaZing ad? A) scientific evidence B) technical expertise C) personality symbol D) testimonial evidence E) lifestyle Answer: E 67) Which of the following best describes the personality symbol style of advertising? A) using ordinary people to show how a product affects them in their daily lives B) using scientific evidence to support claims about a product in an advertisement C) using an animated character or mascot to represent a product in an advertisement D) using a technical expert to recommend a product in an advertisement E) using a celebrity to endorse a product in an advertisement Answer: C 68) A TV ad promoting how an ordinary person's life has changed due to considerable weight loss is an example of the ________ style of advertising. A) scientific evidence B) testimonial evidence C) technical expertise D) mood or image E) fantasy Answer: B 69) Crest toothpaste has used a ________ style of advertising to convince buyers that Crest is better than other brands at fighting cavities. A) testimonial evidence B) technical expertise C) scientific evidence D) mood or image E) fantasy Answer: C 70) Which of the following media is most suitable for advertising a product that needs to be demonstrated? A) television B) radio C) newspaper D) magazine E) billboard Answer: A 71) Which of the following media is most suitable for having consumers provide input on product design or features? A) television B) radio C) magazines D) social media E) billboards Answer: D 72) Marketers need to know how customers connect with an ad and brand idea as a part of the broader brand relationship. This can be achieved by measuring ________ levels. A) media engagement B) reach C) frequency D) listenership E) readership Answer: A 73) Which of the following is a disadvantage of using digital, mobile, and social media for advertising? A) The costs are high. B) Audience selectivity is low. C) The audience controls content and ad exposure. D) The interactive capabilities are low. E) There is little scope for personalization. Answer: C 74) Which of the following is a disadvantage of using a magazine as an advertising medium? A) It has a poor pass-along readership. B) It involves high costs. C) It has low geographic selectivity. D) It has low credibility and image. E) It consists of low-quality reproduction. Answer: B 75) The mood or image style shows the company's expertise in making the product. Answer: FALSE 76) Comparative advertising is a type of persuasive advertising. Answer: TRUE 77) Native advertising refers to advertising or other brand-produced online content that looks in form and function like the other natural content surrounding it on a Web or social media platform. Answer: TRUE 78) Traditional mass media still make up a majority of today's media mixes. Answer: TRUE 79) A promotion strategy consists of two major elements: creating advertising messages and selecting advertising media. Answer: FALSE 80) The competitive-parity method of setting promotion budgets prevents promotion wars between companies. Answer: FALSE 81) Product placement is a form of brand integration. Answer: TRUE 82) The affordable method tends to place promotion last among spending priorities, even in situations in which advertising is critical to the firm's success. Answer: TRUE 83) Advertising's goal is to help move consumers through the buying process. Answer: TRUE 84) In advertising media selection, frequency describes the qualitative value of message exposure through a given medium. Answer: FALSE 85) In any medium, the relevance of advertising content to an audience is less important than how many people the advertisement reaches. Answer: FALSE 86) Standardization produces many benefits–lower advertising costs, greater global advertising coordination, and a more consistent worldwide image. Answer: TRUE 87) The aim of advertainment is to make ads and brand content so entertaining or so useful that people want to watch them. Answer: TRUE 88) Kronos Inc., a car manufacturer, makes a car called Hover that runs on the force generated by super magnets. Kronos is the first company to use super-magnet technology in automobile manufacturing, aiming to reduce dependency on non-renewable fuels. If Kronos plans to release television advertisements about Hover, what kind of advertising objective should it pursue when introducing the new product into the market? Answer: (Students' answers may vary. The answer given below is indicative.) Hover uses a new technology in its production, and its advertisement should reflect that. Introducing a new product and potentially creating a new market requires an advertising campaign that stresses on its uniqueness and usability. The best advertising model to follow for Hover would be informative advertising. Informative advertising is used heavily when introducing a new product category. In this case, the objective is to build primary demand. 89) What methods of setting advertising budgets are directly based on company revenues? What are the disadvantages of such methods? Answer: One of the methods of setting advertising budgets based on company revenues is called the affordable method. The team sets the promotion budget at the level they think the company can afford. Small businesses often use this method, reasoning that a company cannot spend more on advertising than it has. They start with total revenues, deduct operating expenses and capital outlays, and then devote some portion of the remaining funds to advertising. This method of setting budgets completely ignores the effects of promotion on sales. It tends to place promotion last among spending priorities, even in situations in which advertising is critical to the firm's success. It leads to an uncertain annual promotion budget, which makes long-range market planning difficult. Other companies use the percentage-of-sales method, setting their promotion budget at a certain percentage of current or forecasted sales. Or they budget a percentage of the unit sales price. The percentage-of-sales method has advantages. It is simple to use and helps management think about the relationships between promotion spending, selling price, and profit per unit. Despite these claimed advantages, however, the percentage-of-sales method has little to justify it. It wrongly views sales as the cause of promotion rather than as the result. 90) With a suitable example, show how advancements in technology help consumers avoid advertisement cluttering. What implications does this trend hold for advertisers? Answer: (Students' answers may vary. The answer given below is indicative.) Until recently, television viewers were pretty much a captive audience for advertisers. But today's digital wizardry has given consumers a rich new set of information and entertainment choices. With the growth in cable and satellite TV, the Internet, video streaming, tablets, and smartphones, today's viewers have many more options. Digital technology has also armed consumers with an arsenal of weapons for choosing what they watch or don't watch. Increasingly, thanks to the growth of DVR systems, consumers are choosing not to watch ads. Seventy-six percent of American TV households have a DVR, subscribe to Netflix, or use videoon-demand from a cable or telecommunications provider and two-thirds of DVR owners use the device to skip commercials. Thus, advertisers can no longer force-feed the same old cookiecutter messages and content to captive consumers through traditional media. Simply interrupting or disrupting consumers no longer works. Unless ads provide content that is engaging, useful, or entertaining, many consumers will simply ignore or skip them. To break through the clutter, many marketers have subscribed to a new merging of advertising and entertainment, dubbed "Madison & Vine." It represents the merging of advertising and entertainment in an effort to create new avenues for reaching consumers with more engaging messages. Just to gain and hold attention, today's content must be better planned, more imaginative, more entertaining, and more emotionally engaging. Simply interrupting or disrupting consumers no longer works. Unless ads provide information that is interesting, useful, or entertaining, many consumers will simply skip by them. 91) Yuran Inc., a designer and seller of lifestyle products and inexpensive furniture, has decided to engage in brand integration to advertise its products. The decision coincides with Yuran's plan to release a new line of coffee tables that fold easily and do not take up much space. What are the different ways in which Yuran can achieve brand integration? Answer: Yuran can achieve brand integration through product placement. Product placement involves embedding brands as props within other programming like TV shows, either being used in a show, or being scripted into the show. The Yuran coffee table, for example, could be placed in sitcoms which generally have home settings. The product could even be worked into the show's overall storyline, making it an integral part of that episode. It can even have product placement in movies, video games, comic books, and even pop music. Yuran can achieve brand awareness by being part of the entertainment rather than interrupting it. 92) What are the important factors that a marketer should be aware of when developing a creative concept for an advertisement? Answer: An advertiser must develop a compelling creative concept—or big idea—that will bring a message strategy to life in a distinctive and memorable way. The creative concept will guide the choice of specific appeals to be used in an advertising campaign. Advertising appeals should have three characteristics. First, they should be meaningful, pointing out benefits that make the product more desirable or interesting to consumers. Second, appeals must be believable. Consumers must believe that the product or service will deliver the promised benefits. However, the most meaningful and believable benefits may not be the best ones to feature. Appeals should also be distinctive. They should tell how the product is better than competing brands. 93) John works as a junior marketing executive at Frontloop Corporation. Frontloop Corporation manufactures guitars and other stringed instruments. It designs a new guitar, the Loneway, customized for the folk music genre. The company plans to attract both folk artists and folk music lovers with its advertising campaigns and decides to exclusively use mass-media marketing techniques to advertise the Loneway guitar. What arguments can John use if he wants to convince Frontloop to adopt digital media instead of television advertising? Answer: (Students' answers may vary. The answer given below is indicative.) The Loneway guitars are specifically designed for folk music lovers, who form a niche market in music. Marketing these guitars through mass-media outlets like television will not help the company reach its target customers efficiently. The costs of mass media are rising, and their audiences are reducing in number. Though mass media have good coverage, they provide low audience selectivity. In contrast, the digital media, like the Internet, are relatively inexpensive and highly customer selective. They are also highly interactive. The Loneway guitar ads could be placed at strategic websites that folk music enthusiasts frequently visit. The ads can be uploaded on sites like YouTube, or Facebook, which are very apt at reaching target customers and niche markets. On the other hand, television advertising is highly cluttered and provides fleeting exposure to potential customers. Using the Internet also saves time as compared to television, which may have a higher ad purchase lead time. Hence, advertising the Loneway line of guitars through online advertising is the cheaper, more audience selective, and customer interactive outlet that the Frontloop Corporation can adopt, especially when compared to television advertising. 94) What is consumer-generated content? Provide an example. Answer: (Students' answers may vary. The answer given below is indicative.) Taking advantage of today's digital and social media technologies, many companies are now tapping consumers for marketing content, message ideas, or even actual ads and videos. Sometimes the results are outstanding; sometimes they are forgettable. If done well, however, user-generated content can incorporate the voice of the customer into brand messages and generate greater customer engagement. Perhaps the best known consumer-generated content effort is the long-running annual "Crash the Super Bowl Challenge" held annually by PepsiCo's Doritos brand. Doritos invites consumers to create their own 30-second video ads, and winners receive large cash awards and have their ads run during the Super Bowl. But brands across a wide range of industries – from automakers and fast-food chains to apparel brands and pet food marketers – are inviting customers to participate in generating marketing content. 95) Which of the following is an example of a firm utilizing public relations as a promotion tool? A) a firm using its personal sales force at an expo to sell its products B) a firm sending its catalog directly to customers through e-mail C) a firm informing customers of special discounts on its website D) a firm providing interesting information about a product to the news media E) a firm using a celebrity to endorse a product in a television commercial Answer: D 96) A common PR tool is special events, ranging from news conferences and speeches, brand tours, and sponsorships to multimedia presentations or educational programs designed to reach and interest target publics. Answer: TRUE 97) Usually, when using public relations, a company pays for the space or time in the media. Answer: FALSE 98) Lobbying refers to a PR department maintaining relationships with shareholders and others in the financial community. Answer: FALSE 99) What are the different functions of a public relations (PR) department? Answer: PR departments may perform any or all of the following functions: Press relations or press agency: Creating and placing newsworthy information in the news media to attract attention to a person, product, or service. Product publicity: Publicizing specific products. Public affairs: Building and maintaining national or local community relationships. Lobbying: Building and maintaining relationships with legislators and government officials to influence legislation and regulation. Investor relations: Maintaining relationships with shareholders and others in the financial community. Development: Working with donors or members of nonprofit organizations to gain financial or volunteer support. 100) How does public relations help in creating an integrated marketing communications system? Answer: An integrated marketing communications system is required to deliver a consistent and positive message of a company's brand to its customers. Public relations is used to promote products, people, places, ideas, activities, organizations, and even nations. Companies use PR to build good relations with consumers, investors, the media, and their communities. Public relations can have a strong impact on public awareness at a much lower cost than advertising can. When using public relations, a company does not pay for the space or time in the media. Rather, it pays for a staff to develop and circulate information and manage events. If the company develops an interesting story or event, it could be picked up by several different media and have the same effect as advertising that would cost millions of dollars. Moreover, public relations has the power to engage customers and make them a part of the brand story. Although public relations still captures only a small portion of the overall marketing budgets of many firms, PR can be a powerful brand-building tool. Especially in this digital age, the lines between advertising, PR, and other content are becoming more and more blurred. For example, are brand websites, blogs, brand videos, and social media activities advertising, PR, or something else? All are marketing content. And as the use of earned and shared digital content grows rapidly, PR may play a bigger role in marketing content management. More than any other department, PR has always been responsible for creating relevant marketing content that draws consumers to a brand rather than pushing messages out. Hence, public relations works hand-in-hand with advertising within an integrated marketing communications program to help build brands and customer relationships.