Question 101. A decade ago, the advertising-to-sales-promotion rat

101. A decade ago, the advertising-to-sales-promotion ratio was about 60:40. Today, in many consumer-packaged-goods companies, sales promotion accounts for 75% of the combined budget. Several factors contribute to this rapid growth. List and explain these factors.

102. Manufacturers face several challenges in managing trade promotions. List some of these challenges.

103. In deciding to use a particular type of consumer promotional incentive, marketers have several factors to consider. List these factors and briefly explain them.

104. Report, $14.9 billion was projected to be spent on sponsorships in North America during 2007. List the eight reasons why marketers may want to sponsor an event.

Marketing public relations plays an important role in specific tasks. List these six tasks.

105. In considering when and how to use MPR, management must establish the marketing objectives, choose the PR messages and vehicles, implement the plan carefully, and evaluate the results. To accomplish this, MPR has a number of “tools” at its disposal. List the major tools of effective MPR.

APPLICATION QUESTIONS

Multiple Choice

106. As the newest brand manager for your company, you are in the process of developing an advertising campaign for the coming year. When you review your product substitutability and the stage in the product life cycle, which of “the five Ms” are you deciding?

a. Message

b. Measurement

c. Money

d. Media

e. Mission

107. Your product competes in a mature market and your company is the market leader in the category. The advertising objective for your product should be ________.

a. to stimulate and persuade consumers to use your product

b. to stimulate and demonstrate the product’s superiority

c. to stimulate more usage

d. to stimulate brand recognition

e. none of the above

Advertising often fails to increase sales for mature brands and categories in decline. The ________ is much lower for these products than for newer ones.

f. clutter

g. message generation

h. creative brief

i. advertising elasticity

j. flexibility

108. You have decided to use print media to advertise your product because the amount of information you wish to communicate is large. In designing a print campaign, you have been advised to write a headline for the ad that is strong. What is it about the headline that is so important in a print ad campaign?

a. The headline must reinforce the picture and lead the person to read the copy.

b. The headline must attract the reader’s eyes.

c. The headline must appeal to the reader’s sense of “wow.”

d. The headline must spark curiosity from the reader.

e. The headline must offend the readers’ sensibilities to attract them to read it.

109. The company has decided to change its advertising message in key markets. Speed and flexibility are the issues here as the company scrambles to make up lost ground. Of all of the advertising media available to you, which one offers your company flexibility?

a. Billboards

b. Television

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