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Exam 8: Planning Advertising and Integrated Brand Promotion

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Question 41

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Scenario 8-5 Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market in several months.In test marketing, many consumers liked the product but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands.Helene Curtis has always used an objective-and-task approach to develop advertising budgets.Due to these research results, the firm must now do a detailed build-up analysis. -(Scenario 8-5) The build-up analysis will also address costs not listed elsewhere, particularly those associated with advertising to the trade and doing specialized research.Which factor does this involve?

A) ancillary costs
B) production costs
C) media expenditures
D) promotional costs

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Question 42

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Some analysts argue that ____ objectives are the only legitimate and reasonable goals for advertising, because advertising is only one variable in a complex market mix.

A) sales
B) market share
C) profit
D) communications

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Question 43

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Scenario 8-5 Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market in several months.In test marketing, many consumers liked the product but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands.Helene Curtis has always used an objective-and-task approach to develop advertising budgets.Due to these research results, the firm must now do a detailed build-up analysis. -(Scenario 8-5) The advertising agency for Helene Curtis is in the process of doing a build-up analysis.This means it is

A historical background is a key element in an advertising plan, one that should include the history of all main players, the industry, the brand, and the corporate culture.

Scenario 8-2 Following the announcement that the world's largest e-tailer, Amazon.com, made a profit for the first time since it started business in the early 1990s, the company saw more than 90 percent of its market value disappear as part of the dot-com collapse.It is questionable whether or not Amazon figured out a profitable business model after changing its tune several times over those early years.Then it began circling back somewhat to an earlier focus on becoming the Walmart of the Internet.It said it wanted to sell huge volumes of merchandise cheaply, and in the process eke out enough of a profit to satisfy Wall Street.Although investors had to wait some time for the e-tailer to work out the kinks, and it's uncertain how much longer they'll remain patient, Amazon's mainstay retail business may see further improvements as it grows.As we all have now witnessed, unlike brick-and-mortar retailers who must build new stores, stock them, and hire people to staff them, Amazon has been able to open new stores with minimal additional cost.Some years ago, it reported turning over its inventory 17 times a year-close to double that of traditional retailers at the time.And on average, it reported having gotten paid 32 days before it must pay its suppliers-in essence, providing millions of dollars in cash flow.Information updated for 2011, based on the following initial articles: (David Shook, "Can Amazon Turn Baby Steps Into Strides?," Businessweek Online, February 13, 2002.) (Rob Hof, "Why Amazon Could Keep Flowing," Businessweek Online, January 5, 2005.) -(Scenario 8-2) In the early days of Internet shopping, people were skeptical about the idea of buying things over the computer, largely due to their worries about privacy issues combined with their habitual patterns of purchasing at retail outlets.Some concerns remain today.But many years after the shake-out of companies in the dot-com world, players that survived have come back stronger.And new players have come onto the scene.The demand is there, and this has instilled a feeling of trust in millions of customers who make purchases online.The concept of customers having enhanced trust in e-tailing would most likely be contained in the ____ section of the advertising plan.

Scenario 8-3 After working as an account executive in an advertising agency for 20 years, you've decided to chuck it all and be your own boss.You buy a neighborhood hardware store from a man who has owned and run the business for the past 52 years-Springfield Hardware.He sells the store and all the inventory, with one warning-he wasn't much on paperwork, so there won't be a lot of records to be found.You hand him a cashier's check, and he leaves without looking back.He heads to a vacation at a Club Med, and you head to an office that hasn't been cleaned in 52 years to create your ad plan. -(Scenario 8-3) You're currently deciding exactly where and when ads will be placed, and determining the strategy behind each placement.This takes a while-with the explosion of Internet sites, outdoor advertising, and innovative promotions, the options are almost unlimited.In this way, you are

Why is the objectives section of an advertising plan so important to an advertiser? Name at least three of the objectives described in the text.For each objective, list one important consideration for advertisers.

Scenario 8-5 Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market in several months.In test marketing, many consumers liked the product but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands.Helene Curtis has always used an objective-and-task approach to develop advertising budgets.Due to these research results, the firm must now do a detailed build-up analysis. -(Scenario 8-5) The number of exposures required to accomplish the advertising objectives for the shampoo, referred to as ____, will also be included in the build-up analysis for Helene Curtis.

Scenario 8-3 After working as an account executive in an advertising agency for 20 years, you've decided to chuck it all and be your own boss.You buy a neighborhood hardware store from a man who has owned and run the business for the past 52 years-Springfield Hardware.He sells the store and all the inventory, with one warning-he wasn't much on paperwork, so there won't be a lot of records to be found.You hand him a cashier's check, and he leaves without looking back.He heads to a vacation at a Club Med, and you head to an office that hasn't been cleaned in 52 years to create your ad plan. -(Scenario 8-3) Due to the lack of records, you have no way of knowing what Springfield Hardware has gone through over the years.You can only guess about the hardware needs of the local population, and the store's target market and customer base.This will be a major hindrance in writing the ____ sections of your situation analysis.

Scenario 8-3 After working as an account executive in an advertising agency for 20 years, you've decided to chuck it all and be your own boss.You buy a neighborhood hardware store from a man who has owned and run the business for the past 52 years-Springfield Hardware.He sells the store and all the inventory, with one warning-he wasn't much on paperwork, so there won't be a lot of records to be found.You hand him a cashier's check, and he leaves without looking back.He heads to a vacation at a Club Med, and you head to an office that hasn't been cleaned in 52 years to create your ad plan. -(Scenario 8-3) There is one thing you'd like to see as a result of your ad campaign-you want local residents to not only know your name, but to think of it first when they need a hardware store.When you think of hardware, think of Springfield.Which concept defines this objective?

It has recently been suggested that if you accept the philosophy that "____" is media, it will be much easier to surround the consumer with messages and connect the consumer to brands.

Looking ahead to an expanding demand for burial plots as the huge population of baby boomers ages, the owner of a cemetery on the outskirts of a city hires an agency to create a sophisticated ad campaign.In knowing its current users and predicting its future users, the cemetery owner is identifying the factors on the demand side of the sales equation.In the advertising plan, this information

Both clients and agencies can get mired in analyses, objectives, logistics, and other details.But in the background there is often a voice reminding them that there is only one rule-advertising must sell.

The account executive in charge of promoting a new perfumed bath soap for women is not expecting a sudden attachment and loyalty to the product-though that would be nice-but realistically, she would like women to at least buy it once and see how they like it.What type of objective does she reflect?

The ____ part of an overall situation analysis commonly begins by stating who the current users are and why they are current users.

Scenario 8-2 Following the announcement that the world's largest e-tailer, Amazon.com, made a profit for the first time since it started business in the early 1990s, the company saw more than 90 percent of its market value disappear as part of the dot-com collapse.It is questionable whether or not Amazon figured out a profitable business model after changing its tune several times over those early years.Then it began circling back somewhat to an earlier focus on becoming the Walmart of the Internet.It said it wanted to sell huge volumes of merchandise cheaply, and in the process eke out enough of a profit to satisfy Wall Street.Although investors had to wait some time for the e-tailer to work out the kinks, and it's uncertain how much longer they'll remain patient, Amazon's mainstay retail business may see further improvements as it grows.As we all have now witnessed, unlike brick-and-mortar retailers who must build new stores, stock them, and hire people to staff them, Amazon has been able to open new stores with minimal additional cost.Some years ago, it reported turning over its inventory 17 times a year-close to double that of traditional retailers at the time.And on average, it reported having gotten paid 32 days before it must pay its suppliers-in essence, providing millions of dollars in cash flow.Information updated for 2011, based on the following initial articles: (David Shook, "Can Amazon Turn Baby Steps Into Strides?," Businessweek Online, February 13, 2002.) (Rob Hof, "Why Amazon Could Keep Flowing," Businessweek Online, January 5, 2005.) -(Scenario 8-2) Amazon.com began by facing a myriad of problems since its inception, with perhaps the biggest obstacle being the demise of hundreds of dot-com companies in the late 1990s and early 2000.Those dot-com companies that did survive initially had a difficult time making a profit, and over time a few began to face new competition.The issue as to who will supply online consumers has been continually evolving and changing since then.This type of information would most likely be noted in the ____ section of an ad plan.

Advertisers should set only one objective in an advertising plan.

A global jewelry retailer serving diverse markets is concerned that its agency is unaware of some cultural issues that may come up in its campaign, since none were addressed in the initial advertising plan.The client is worried that the agency staffers may be unconsciously relying only on their own personal values, experiences, and backgrounds to make promotional decisions, referring to a concept called

An insurance company's researchers spend a lot of time and money trying to understand various age-related markets, from WWII veterans and baby boomers to Generations Y and Z.Based on their findings, the target markets that are ultimately chosen based on such demographics should be defined in the ____ section of the ad plan.

The many forms of brand promotion that will supplement the advertising effort do not need to be spelled out in the ad plan, since this would add too much length and detail.