Advertising module


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This Advertising Module is designed to provide basic understanding of advertising. The text for the presentation is based on the book by Ferrell & Pride (2000) "Marketing".

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Advertising module

  1. 1. ADVERTISING & PUBLIC RELATIONS Presentation Specially Developed ForAdvertising in a *NUTSHELL™ PRODUCTIONS by George E. Ablay 1 * a subsidiary of AMERICAN ENGLISH® Copyright© 2013
  2. 2. Dear Student, This Advertising Module comprises of just5 lectures and a final test on the sixth meeting. Hopefully you can attend all five preparatory meetings to get the most out of the module.Theory will be combined with a few case studies, such as the “Microsoft Crafting Image” case and websearches. Enjoy the material and lectures, Which are predominantly based on Ferrell & Prides book “Marketing Concepts and Strategies” and dont forget to take notes where you can,as it is one of the most effective tools in learning. Any questions? Email me at George Ablay 2
  3. 3. Table of Contents Part 1●Objectives 4●What is Advertising? 5●Types of Advertising 6●Other types of Advertising Categories 7●Institutional Advertising 8●Advocacy Advertising 9●Product Advertising I 10●Product Advertising II : Pioneer Advertising 11●Product Competitive Advertising Example 12●Product Advertising III: Competitive Advertising 12●Product Advertising IV: Comparative Advertising 14●1988 Trademark Law Act 15●Reminder Advertising 16●Reinforcement Advertising 17Table of Contents; part 2● 18 3(Developing an Advertisement Campaign)
  4. 4. Objectives✔ To become aware of the nature and types of advertsising✔ To explore the major steps involved in developing an advertising campaign✔ To find out who is responsible for developing advertising campaigns✔ To gain an understanding of Public Relations (and understand its relationship with advertising)✔ To analyze how public relations is used and evaluated 4
  5. 5. Advertsing; what is that?Advertising = “paid nonpersonal communication about anorganization and its products transmitted to a target audiencethrough mass media.” (Pride & Ferrell, 2000)Mass media = television, radio, internet, newspapers,magazines, direct mail, outdoors displays (bill boards), andsigns on mass transit vehicles.Goal is to reach a variety of audiences by creating visibility ofproduct/service, brandname, company and people.Advertisers do so by using the concept of: A.I.D.A.(attract Attention & awareness; raise consumers Interest; create Desireby showing need satisfaction; ask for consumer Action)Who uses advertising?: Government; Businesses,Churches and other non-profit organizations; NGOs; 5Universities etc.
  6. 6. Types of Advertising 1. Institutional Advertsing 2. Advocacy Advertising (a type of organizational advertising) 3. Product AdvertisingForms ofproduct 4. Pioneer Advertising 5. Competitive Advertisingadvertising (type of competitive advertising) 6. Comparative Advertising 7. Reminder Advertising 8. Reinforcement AdvertisingAlso checkout this website for more ideas on categorization: 6
  7. 7. Other Advertisement CategoriesAs you may have heard of please remember theyreadvertisement categories still in some way a form of: suchas:●Social Media Advertising product/service advertising●Guerilla Advertising product/service advertising●Informative Advertising other name for category advertising●Public Service Advertising advocacy advertising●Celebrity Advertising product/service/advocacy/institutional advertising●Surrogate Advertising product advertising 7
  8. 8. 1. Institutional Advertising1)“Institutional advertising” promotesorganizational images, ideas, and political issues.Used to create or maintain an organizationalimage.“IA” usually deals with broad issues ranging fromcompanys strength to friendliness of employees.Example: A company that has changed its logo andtries to explain the philosophy behind the change(and how this adds value for the customer).Often aimed to create a more favorable view of anorganization to the general public, shareholders 8and nonconsumer groups.
  9. 9. 2. Advocacy Advertising2) “Advocacy Advertising” is a form oforganizational advertising:When a company promotes its position (itsopinion) on a public issue it is referred to as“advocacy advertising”.Example: Government launches a public statementon TV about a recent tax increase; abortion; welfareor international trade coalitions to explain theirdecisions to the general public. 9
  10. 10. 3. Product Advertising3) “Product Advertising” promotes the uses,features, and benefits of a product.Two types of Product Advertising:A) Pioneer AdvertisingB) Competitive Advertising 10
  11. 11. product advertising cont.d 14. Pioneer AdvertisingA) Pioneer Advertising (4): Used to stimulate demand for a product category (rather than for a specific brand!) By informing customers about the non- specific brand products benefits, features and uses. Primarily done at the “Introductory Stage” of the products life cycle: a) introductory; b) growth; c) maturity; d) decline) 11
  12. 12. Competitive Advertising 12
  13. 13. product advertising contd 35. Competitive AdvertisingB) Competitive Advertising (5): Used to stimulate demand for a specific brand. By informing customers about the potential benefits of a specific product,.. often directly comparing it with the competitions products, if so..... 13
  14. 14. product advertising contd 46. Comparative Advertising6) B.1. Comparative Advertising:When two or more brands are being comparedon the basis of one or more product characteristics.Usually the brand promoted has lower marketshare, compared to brands with highest marketshare in a product category.Often used with soft drinks, toothpaste,pain relievers, foods, tires, automobilesand detergents. 14
  15. 15. Marketer Be Aware!“1988 Trade Law Revisions Act”, which provisionsstate that we cannot misrepresent the qualities orcharacteristics of competing products.If we do so anyway, we can expect major law suits(at least in the U.S.)So..dont get too carried away in your enthusiasm in “puttingthe competition down”, or an initial smile may turn into a sourface, since “libel and slander” may end up costing yourcompany millions of dollars! 15
  16. 16. 7. Reminder Advertising7) Reminder Advertising: Tells customers that an established brand is still around and re-emphasizes its benefits, uses and characteristics. Example: If “Snickers”, the famous and long known chocolate-peanut candy bar, launches an advertising campaign to re-emphasize its full load of peanuts and caramel, to remind us that its still here in the midst of plenty of competing candy bars. 16
  17. 17. 8. Reinforcement Advertising 8) Reinforcement Advertising: Assures current users of a product that they have made the right brand choice, which functions to re-assure the customers. It also lets them know how to get the most benefit from the product.Also checkout this website page for further categorization of advertising types: 17
  18. 18. Table of Contents Part 2●Developing an Avertisement Campaign 18●ID CDD CEE or the 8 steps in creating an Ad Campaign 19●Identifying and analyzing a Target Audience 20●Defining the Advertising Objectives 21●Creating the Advertisement Platform 22●Determining the Advertisement Appropriation 23●Developing the Media Plan 29●Creating the Advertising Message 33●Executing the Campaign 41●Evaluating Advertising Effectiveness 42●Public Relations 47●Evaluating Public Relations Effectiveness 53●Dealing with Unfavorable Public Relations 55●Task 1; Microsoft Crafting Case 56●Task 2: BP Gulf Oil Spill Case 57●Test preparatory Questions 58●References 65 18
  19. 19. Developing an AdvertisingCampaignObjective is to create a series of advertisementsand placing them in various advertisment media toreach (a) target audience(s).There are approximately 8 steps in the process: ID CDD CEECheck out these campaigns and their objectives: 19
  20. 20. ID CDD CEE: 8 steps in an advertising campaign1) Identify and analyze a target audience2) Define advertising objectives3) Create an advertising platform4) Determine advertising appropriation (funds)5) Develop a media plan6) Create an advertising message7) Execute the campaign8) Evaluate the advertising effectiveness 20
  21. 21. Identify & Analyze a Target AudienceA target audience is the group at which theadvertisements are aimed at.This helps in establishing an information base.i.o.w.: WHO TO SHOW / TELL WHATInformation needed:(the more we know, the better) 1. Age 4. Sex (gender) 2. Income 5. Education 3. RaceExample: When focusing in on specific age group it isof crucial importance to use age appropriate languagefor more effectiveness. 21
  22. 22. Defining the Advertising ObjectivesNext we need to determine the objectives (inform,persuade, remind), i.o.w.:What do we want to accomplish with the campaign?Objectives (determine what kind of advertising) must beclear and measurable! (how else do we check success after campaign?)Use “benchmarks” and indicate how far to deviate from these.Example: If objective is to increase sales: State currentsales levels (benchmark), and state how much you wishto gain from the campaign (in $ or %)Note: Although most marketers seek sales increases, sometimes 22through Product-Awareness; stated as a “communication objective”:“to increase product feature awareness from 0-40% within 6 months in our target audience”.
  23. 23. Creating the Advertising Platform“Advertising Platform” means the basic issues or sellingpoints to be included in the advertising campaign.A single advertisement in a campaign (=a series ofadvertisements) may address just one of the issues.Surveys used to measure customers priorities andpreferences in a product, service or political party.If wrong message: Campaign may fail!Must include strong competitive features of the advertisedbrand, not just customers important issues.Research is expensive, therefore an “advertsing platform”is often based on opinions from employees in the firm or 23the advertsing agency (“trial-and-error approach”).
  24. 24. Determining the Advertising Appropriation“Advertising Appropriation” simply means the budget(total amount of money) for a specified period foradvertisement.Main determiners for the budget include:1. Geographic size of the market2. Distribution of the market3. Type of product advertised4. Firms sales volume vs. competitors sales volumeSmall Advertisement budgets for business products (e.g.copy machines) compared to product sales.Large Advertisement budgets for consumer/convenience 24items such as soft drinks, soaps, and cosmetics.
  25. 25. determining the Advertisement Appropriation cont.d 1 Several techniques to be used to determine budgets: 1) Objective-and-task approach 2) Percent-of-sales approach 3) Competition-matching-approach 4) Arbitrary approach We will discuss the details of each approach next. 25
  26. 26. Determining Advertisement Appropriation1) Objective-and-Task ApproachBudgeting for an advertising campaign by:1.Determining its objectives (what to gain) and then;2.Estimating the cost of all the tasks needed to attain them.“Although most logical”;Problem:Accurately estimating the cost of all efforts neededto get the expected resultsExample: Coffee marketer has trouble determininghow much TV advertising needed to raise a brands 26market share from 8 to 10%
  27. 27. Determining Advertisement Appropriation2) Percent-of-Sales ApproachBudgeting for an advertising campaign byMultiplying the firms.....1. Past sales2. Expected sales (growth or decline) a standard percentage (based on firms regular advertisement spending or industry average)“Although most favorable”;Problem:This idea assumes that sales create advertising, not otherway around. Thus..when sales decline, advertising 27budget may too, but this could jeopardize sales further!
  28. 28. Determining Advertisement Appropriation3) Competition-Match-ApproachDetermining an advertising budget by:Trying to match the competitions ad campaign (cost)Usually tracked quarterly on national and regional levelson print; radio; tv; and compared to own advert. spending.Marketer be aware: Competitor might have deeperpockets and different objectives, so only to use incombination with other techniques. 28
  29. 29. Determining Advertisement Appropriation4) Arbitrary ApproachBudgeting for an advertising campaign as specified bya high-level executive in the firmProblem:Often leads to under- or over spendingIf set too low >> it cannot reach its full potentialIf set too high >> financial resources are wastedIn conclusion:Correct appropriation is critical for an advertising campaignssuccess and a companys or its brands survival. 29
  30. 30. Developing the Media PlanA Media Plan specifies the media vehicles and the schedulefor running the advertisementsMedia vehicles are: specific magazines, tv stations,newspapers, radio stations, bus lines, internet, postal service(public transport advertising) etc.Schedule: includes the dates and times the ads will appear inthe vehiclesThe Media Plan determines who (target audience; highestpercentage = ”reach”), when, where and how often(frequency) the target will be exposed to the advertisingmessage 30
  31. 31. developing the media plan continued 1Primary goal: To reach the largest amount of people in the targetthat the budget will allow,Secondary goal: Deliver the right message to the highest percentage(“reach”) of consumers in target as often as possible within budget.Media planning is complex because we need careful study ofa) demographics and b) media markets. Some TV stations can targetmany Asians, others many Afro- Americans, but in afternoons target kids,while at night adults in mind.. etc.Same counts for some magazines which attract females, others malesand others again teenagers for example. Each needs different approach.Printed media used for addressing complex issues, but.. TV ads more used to highlight selling points Youve seen the light, 31 but can you reach it?
  32. 32. developing the media plan continued 2 Also: food ads in full color likely better effect than in B&W in newspapers but..cost is to be considered! The Cost Comparison Indicator lets a marketer compare the costs of various vehicles within a medium (compare cost of two magazines for ex.) CPM = Cost Per Thousand people exposed to a one page advertisement (for magazines/newspapers)The tableshows howmuch moneybusinessesspend onvarious media > 32
  33. 33. Creating the Advertising MessageAn Advertising Message has content and formA Products..● Features● Uses● Benefits ..influence >> content of the messageCharacteristics in target audience..., like:● Gender ● Race● Age ● Income● Education ● Occupation● Lifestyle ..influence >> content & form (form = lay-out) Example: When Proctor & Gamble market “Crest” toothpaste to children>>daily brushing and cavity control emphasized, but... When “Crest” advertized to adults >> tartar and plague emphasized 33
  34. 34. creating the advertising message cont.d 1 To communicate effectively advertisers use: ● words ●meaningful, ● symbols ...that are: ●familiar and ● illustrations ●attractive people in target audience Advertising campaign objectives also influence content and form (lay-out): -If aim is: large sales increases >> hard-hitting /high impact language and symbols -If aim is: increasing brand awareness >> much repetition of brand name and words / illustrations associated with it. 34
  35. 35. creating the advertising message cont.d 2The Advertising Platform is the foundation on whichcampaign messages are built.Important factors influencing the message are...1) Choice of Media2) Regions(1) Outdoors display (billboards) for simple, concise messages; magazines & newspapers for more detail(2) “Regional Issues” (versions of magazines across a nation) allow different times and areas to deliver same message or a different message 35
  36. 36. creating the advertising message cont.d 3Copy is the verbalportion of an adUsually Includes:1) Headlines2) Illustration3) Subheadlines4) Body copy5) Signature(1) Headline is critical!(2) Illustration should be attractive & connecting(3) Subheadline links headline to body copy(4) Body copy explains headline(5) Signature is ads sponsor (incl. ™, logo, name and/or address; must be pretty, legible e-z to identify in 36 various sizes)
  37. 37. creating the advertising message cont.d 4Developing the “Body Copy”:a) Identify desire or problemb) Recommend product as best way to solve or satisfyc) State products advantages and explain why best optiond) Substantiate advertising claims (show proof / results)e) Ask buyer for action (d) be credible so proof will strengthen image of product and integrity of company 37
  38. 38. creating the advertising message cont.d 5Radio Copy must be informal and conversationalto attract listeners attention (usually not tuned in)Radio copy must be short; in familiar terms(not over 2,5 words per second) >> repetition is key!Television Copy designed to make optimal use of visualeffect (demonstrations), and audio should not overpower visualTV Copywriting procedure:1.Video in left column ; Audio in the right column (parallel form)2.Copywriters and artists combine copy with visual material to create >>>>> storyboard3.Technical personnel use storyboard as blueprint for commercialStoryboard = series of miniature tv screens combining copy with visual(sketches) and audio script to show sequence of scenes in commercials 38
  39. 39. creating the advertising message cont.d 6 Storyboard used for commercial for AutoNation™ USA (largest auto dealership network in America) 39
  40. 40. creating the advertising message cont.d 7The Layout of an advertisement is the physical arrangementof the illustration and the copy (-headline, subheadline, bodycopy and signature).Final layout is product of several stages that developexchange of ideas among people who develop the advertisingcampaign >> used to instruct production personnel.Illustrations can be photos, drawings or graphs/charts/tables:Used to attract attention and convey the message(sometimes difficult to put into words) (“a pictures says it all”)Illustrations can express:●Contrast●Comparison●Diagrams 40●Testimonials Layout & Illustrations = Artwork
  41. 41. Executing the CampaignAfter completion of the Media Plan and theAdvertising Message its time for...”Action”!Campaign execution requires extensive planning,scheduling and coordination.Parties that may be involved:●Production companies●Research organizations●Media firms●Printers All must be synchronized for on-time delivery of services and products!●Photoengravers●Commercial artists 41
  42. 42. Evaluating Advertising EffectivenessWhat must be evaluated?:●Achievement of advertising objectives●Assessing effectiveness of copy● “ “ “ illustrations● “ “ “ layout●Evaluating mediaWhen to evaluate? Before > During > AfterBefore = “Pretest” to use a consumer jury (panel of buyers)During = “Inquiries” to use coupons, toll free phone no. or form; then responses measured to determine effectiveness of advertisement (most response=superior)After = “Posttest” to use according to advertising objectives (if objective is to increase brand awareness > do survey) 42
  43. 43. evaluating advertising effectiveness contd 1 Three types of Posttesting, based on memory: 1) Recognition test: show print ad to respondents ask if they recognize it. If “yes”>more Qs follow to see how much is remembered from the advertisement > determine degree of effectiveness of Ad 2) Recall test: respondents do not get to see ad, but are asked what they have seen or heard recently. Aided Recall Test: ! People more likely to buy subjects see list of products Unaided Recall Test: something if they rememberwith brandnames, products, companies subject identifies ads, w/o clues an advertisement of it. 3) Single source data: sophisticated technique to track consumer behavior by monitoring when TV watching is done and on what TV station. Micro computers in preselected homes record and collect data. Also membership cards with buyers personal data etc: Scan43 and record purchases at checkout >> links exposure of ads to purchase behavior!
  44. 44. evaluating advertising effectiveness contd 2Changes in sales and market share hard to measureaccurately because of....external influences:●Competitors actions●Government actions●Changes in economy●Changes in consumer preference●Weather changesBy using “benchmarks” (past sales figures vs. currentsales) and advertising expenditures data, marketersmake gross estimates of effects of campaign on salesand market share. 44
  45. 45. Who Develops the Advertising Campaign?By one person or a team either inside firms ownmarketing department or through external agencySmall firms: one or two people inside, but depend greatly onlocal newspaper, or broadcast station for copywriting, artworkand advice about scheduling.Large firms:●Either members of their own advertising department(copywriters; artists; media buyers; technical production coordinators)or ..●External advertising agency (less dependence for wholesaleand business products; but more reliance for consumer products) 45
  46. 46. who develops the advertising campaign? contd 1 Advertising agencies often have good access to highly skilled experts in regards to: -research -legal advice -media They are also more objective toward a companys product. Advertising agencies normally receive 15% commission from media, makes it more affordable for advertisers. 46
  47. 47. Public RelationsPublic Relations is a broad set of communicationefforts to create and keep favorable relationshipsbetween an organization and its audiences.Audiences are referred to as●Internal : employees, shareholders, suppliers●External : consumers, government, media, investorsPR can be used to promote:People ActivitiesProducts IdeasPlaces Countries 47
  48. 48. public relations contd 1PR can help a company to maintain image of●Innovativeness● Social responsibility●DependabilityThis helps keeping up:●Public awareness● Employee morale●Media attentionMedia often report on news stories that involvethe general public/communities >>>PR helps maintaining positive public visibility 48
  49. 49. public relations contd 2Main PR print tools: Annual ReportsTo communicate corporate objectives, products, image,market share, stock values and direction to generalaudience and media.But other effective print tools are:Brochures; Newsletters; Company magazines;Logos, stationery, business cards 49
  50. 50. public relations contd 3Other major PR tools include:-*Speeches (at Universities; Fairs, Conventions, on e.g. New technology; materials, sustainable production methods etc.)-*Event sponsorships (sport events, parades, shows)-Publicity (news stories published free in papers on corporate expansion, acquisitions, research, new product launches etc.)-News letters/releases (300 words press releases on new product launch or safety issues etc.)-Feature articles (3000 words script for specific publication)-Captioned photographs (picture with brief description explaining)-*Press conferences (meetings prepared to inform public through various media attention)* non-print 50
  51. 51. public relations contd 4Event Sponsorships are special eventspaid for in part or in whole by a company.Is an effective way of drawing mediaattention often with low budgets. 51
  52. 52. public relations contd 5Press Conferences are meetings called to announcemajor (corporate) news events.Media personnel are invited by letter and are suppliedwith video/audio tapes to broadcast stations andeditorials to newspapers in the hope for publicity.Must be newsworthy, well-timed, interesting, accurate for coverage.Advantages:-credibility (better public perception than advertisements)-news value (often very informational, extended coverage)-word-of-mouth communications-perception of being endorsed by media-low cost compared to advertisementDisadvantage: 52-Media distribution not controllable.
  53. 53. Evaluating Public RelationsEffectivenessResearch necessary in form of:Environmental Monitoring identifies changes inpublic opinion affecting an organization.Public Relations Audit used to measure effects of aspecific PR program and assess the companysimage by public.Communications Audit is done when a contentanalysis of messages is conducted among audiencemembers by readability study or readership survey. 53
  54. 54. evaluating public relations effectiveness contd 1Counting publicity exposure based PR is effective tool;how often and through which channel and where publicexposed to messages.Clipping services often hired to track publicity. They clipand collect articles on company/product messagesappeared in media.TV stations are requested to track dates and times ofbroadcasts, however not always complied. Trackingservices costly >> does not measure attitudes.Surveys before and after media exposure can give best picture of PR results, as do sales figures! 54
  55. 55. Dealing with UnfavorablePublic RelationsPR as a result of unexpected bad events such as:-Accidents (plane crash)-Unsafe operations (resulting in personnel injuries)-Controversial corporate actions (anti-competitive behavior)Can cause rapid downgrading of company image and products.Negative PR prevention include:●Safety programs● Inspections● Quality Control procedures To lessen negative effects companies must have emergency action plans in place and be forthright instead of ignoring media as it can potentially wipe out millions of dollars spent on advertisements. 55
  56. 56. Tasks 1:Read the “Microsoft Crafting” CaseThen answer the following questions:1. What major Public Relations tools does Microsoft use?2. Who are the major audiences Microsoft wants to reach?3. How should Microsoft evaluate the results ot its PR?4. How do you think Microsoft should have used PR to communicate its views during the antitrust trial? Explain. 56
  57. 57. Task 2:Watch the CBS video of “BP in the Gulf 2010”Then answer the following questions:1. What was BPs initial response to public inquiries on the Gulf incident?2. Do you believe BPs response was correct? Explain.3. How could PR have helped in terms of damage control?4. What are the worst negative implications for BP?5. What should BP do next to recover the losses? 57
  58. 58. Test Preparatory Questions-Answers:,Q1. What is advertisement? "Paid non-personal communication about an organization andits products transmitted to a target audience through mass media."Q2. What does the acronym and concept of "AIDA" mean? A. Attract Attention & Awarenessfrom the consumer B. Raise Interest from the Consumer C. Create Desire by showing NeedSatisfaction D. Ask for Action.Q3. "Dont litter, keep our city glitter"; a. Who is most likely the sponsor behind thisheadline? b. What type of advertising would it fall under? a.Government b. AdvocacyAdvertisement. Q4. Toyota for strong communities"; what type of advertising would this fall under?Institutional Advertisement.Q5. "Switch to a flat panel TV, it will change your life for the better"; a. what type ofadvertisement is this? b. Who could be the sponsor of such a seemingly unclaimedadvert? c. Why could this kind of advertsement be necessary? d. At what point wouldthis be most appropriate (think product life-cycle). a. Pioneer Advertisement. b. Anindustry Association (makers of flat panel tv) c. To change consumer habits, move them frombuying traditional products in a specific category to buying same product type in a newform/technological outfit, or just more of it. (Think of the "Drink Milk" ads) 58
  59. 59. test preparatory questions contd 1Q6. Most advertisements we see are what kind of advertisement: a. advocacy advertisement b. institutional advertisements c. competitive advertisement d. viral advertisementQ7. What does the acronym "IDCDDCEE" mean? b. What does it represent? 1. Identify a target audience 2. Define advertising objectives 3. Create an advertising platform 4. Determine advertising budget 5. Develop a media plan 6. Create an advertisement message 7. Execute the campaign 8. Evaluate effectiveness. The 8 steps in the advertsing campaignQ8. Which aspect is not an advertisement budget determiner? a. geographic size of the market b. distribution of the market c. firms location d. product typeQ9. a.What is the problem in an "Objective-and-Task" Advert-Appropr. Approach? a. hard to estimate all the cost to raise brand awareness or sales by a set percentage. b. What is the problem in an Arbitrary Approach? b. Over-or under-spending resulting in either under utilization of campaign potential or waste.Q10. What is a Media Plan and what purpose does it serve? The Media Plan specifies the media vehicles and schedule for running the ads. It determines who, 59 when, where and how often the target will be exposed to the advertising message.
  60. 60. test preparatory questions contd 2Q11. With "Reach" in a Media Plan we mean:a. aiming at the target marketb. the largest amount of people in a marketc. keeping the Media Plan within the reach of a budget.d. sending the right message to the highest % of actual/potential consumers in the target. Q12. "The key concept at the heart of Juenger’s fallacy — the thing which Meeker doesn’tseem to understand — is the fact that internet advertising in no way substitutes for TV or printadvertising, no matter how often digital ad-sales people bring out their metrics of comparativeCPMs." (Salmon, F.; 2013"CPM" refers to: a. Consumer Packaging Method b. Cost Per Thousand exposed to a one page advertisement c. Consumer Price Marketing d. Cost Per Meter of celluloid used in film production.Q13. In 2012 most of the advertising dollars, globally were spent in ranking order:a. newspapers; tv; magazines; direct-mail c. tv; internet; newspapers; magazinesb . internet; tv; newspapers; magazines d. tv; newspapers; internet; magazines 60
  61. 61. test preparatory questions contd 3,Q14. "In 2011, I gave a talk to a group of online ad-sales people who were so full ofthe multitude of different ways that they could target and quantify their product, theyliterally no longer understood what brand advertising is, or why it exists, or whybrands would be so foolish as to spend so much money on it. They’re quants, living ina world where something only has value insofar as it can be quantified, and where theunquantifiable therefore is perceived to have no value at all. In other words, they’rebasically in the direct-marketing business: they’re the digital version of junk mail. As aresult, just about every website in the world is in the business of delivering that digitaljunk mail to our computers and iPhones and iPads." (Salmon, F.; According to Felix Salmon at Reuters we can infer that internet marketing is the digital equivalent of which type of advertising? a. junk mail b. brand advertising c. reminder advertising d. direct-mail advertisingB. What is the vehicle for conventional direct-mail advertisement? The postal service.C. What is the vehicle for digital advertisement & marketing? The internet.D. How would you define “brand advertisement”? It is advertising with a strong emphasis on the company brand (logo and/or company name) also known as 61 Integrated Marketing Communications (IMC).
  62. 62. test preparatory questions contd 4Q15. "What’s more interesting is that digital advertising now accounts for almost a quarterof all media spending, 22 percent. That’s a huge milestone for a medium that accountedfor only 14 percent three years ago." (Fitzgerald, T.; 2013 MediaLife Magazine) We can conclude above all from this statement and the bar graph displayed here that: a. internet-ad spending has surpassed print-ad spending in 12 b. magazine-ad spending is stable c. newspaper-ads are still favored d. online-ad spending is getting more expensiveQ16. Which one is/are (an) Advertisement Objective: a. inform b. persuade e. all of the above c. remind d. increase sales f. Only a. and b. are correct 62
  63. 63. test preparatory questions contd 5Q17. How do we best measure an advertising campaigns effectiveness: a. by conducting marketing surveys b. by setting benchmarks c. by checking the competitions repsonse d. both a. and b. are correctQ18. When to evaluate / what to measure for Ad campaign effectiveness?: a. Before/Pretest buyers sentiments b. During/Inquiries (coupons;forms etc.) to test change in buyers perception. c. After/Posttesting; survey e.g. brand awareness or companys image d. All of the aboveQ19. Look at the picture below and indicate the five elements of print ads: h... a. ----------------------------------- i... b. ----------------------------------- s... c. ----------------------------------- s.... d. ----------------------------------- b.... e. ----------------------------------- 63
  64. 64. test preparatory questions contd 6Q20. What is not a non-print PR tools: a. press conferences b. circulating news letters c. speeches d. event sponsorshipsQ21. What external influences can affect an Advertisement Campaign? Circle all that apply: a. Government regulation c. Changes in economy . b. Wheather changes d. Changes in consumer preferenceQ22. Which one is an advantage of press-conferences as a PR tool? a. credibility b. paid for by the company c. Environmentally friendly d. public coverageQ23. Whats the main PR print tool called? a. quarterly report b. annual report c. special report d. monthly reportQ24. What is a disadvantage of publicity? a. its expensive b. it draws negative attention c. its uncontrollable d. its credibleQ25. What is meant by “publicity”? 64 a. advertisement b. public awareness c. free media coverage d. city life
  65. 65. Additional Materials Recommendedfor Viewing:See “Marketing Videos” (for on-campus students only)A selection of relevant viewings by Advertising in a Nutshell™ ProductionsReferences:Jobber, D. and Ellis-Chadwick, F. (2013) “Principles and Practice of Marketing”,7th. Edition, MC Graw-Hill Higher Education, United Kingdom.Nickels, W.G.; McHugh, J.M and McHugh, S.(1999) “Understanding Business”,5th edition, Irwin/McGraw-Hill Companies, USA.Pride, W. and Ferrell, O.C. (2000) “Marketing Concepts and Strategies”,Houghton Mifflin Company, Boston, N.Y., accessed on 02/02/13 65