MKTG 351 chapter 17 question and answers spring 2023

1. Describe the major types of advertising, and discuss how they differ. ANSWER: Advertising can be classified as institutional or product advertising. Institutional advertising promotes organizational images, ideas, and political issues. It can be used to create or maintain an organizational image. Institutional advertisements may deal with broad image issues, such as organizational strengths or the friendliness of employees. They may also aim to create a more favorable view of the organization in the eyes of noncustomer groups, such as shareholders, consumer advocacy groups, potential shareholders, or the general public. When a company promotes its position on a public issue, institutional advertising is referred to as advocacy advertising. There are two types of product advertising: pioneer and competitive. Pioneer advertising focuses on stimulating demand for a product category by informing potential customers about the product’s features, uses, and benefits. Competitive advertising attempts to stimulate demand for a specific brand by promoting the brand’s features, uses, and advantages, sometimes through indirect or direct comparisons with competing brands. Other forms of competitive advertising include reminder and reinforcement advertising. Reminder advertising tells customers that an established brand is still around and still offers certain characteristics, uses, and advantages. Reinforcement advertising assures current users that they have made the right brand choice and tells them how to get the most satisfaction from that brand. POINTS: 1 DIFFICULTY : Easy LEARNING O BJECTIVES: MARK.PRID.16.17.01 - LO: 17-01 NATIONAL S TANDARDS: United States - BUSPROG: Analytic STATE STAN DARDS: United States - AK - DISC: Strategy TOPICS: A-Head: The Nature And Types Of Advertising KEYWORDS: Bloom's: Knowledge 2. What are the important issues to consider when developing advertising objectives? ANSWER: Advertising objectives guide campaign development, and therefore advertisers should define objectives carefully. Advertising objectives should be stated clearly, precisely, and in measurable terms. Precision and measurability allow advertisers to evaluate advertising success at the end of the campaign in terms of whether objectives have been met. To provide precision and measurability, advertising objectives should contain benchmarks and indicate how far the advertiser wishes to move from these standards. If the goal is to increase sales, the advertiser should state the current sales level (the benchmark) and the amount of sales increase sought through advertising. An advertising objective should also specify a time frame so that advertisers know exactly how long they have to accomplish the objective. POINTS: 1 DIFFICULTY : Moderate LEARNING O BJECTIVES: MARK.PRID.16.17.02 - LO: 17-02 NATIONAL S TANDARDS: United States - BUSPROG: Analytic STATE STAN United States - AK - DISC: Strategy DARDS: TOPICS: A-Head: Developing An Advertising Campaign KEYWORDS: Bloom's: Knowledge 3. What are the major differences between sales-based and communications-based advertising objectives? ANSWER: If an advertiser defines objectives on the basis of sales, the objectives focus on increasing absolute dollar sales or unit sales, increasing sales by a certain percentage, or increasing the firm’s market share. Even though an advertiser’s long-run goal is to increase sales, not all campaigns are designed to produce immediate sales. Some campaigns aim to increase product or brand awareness, make consumers’ attitudes more favorable, heighten consumers’ knowledge of product features, or create awareness of positive, healthy consumer behavior, such as nonsmoking. If the goal is to increase product awareness, the objectives are stated in terms of communication. A specific communication objective might be to increase new product feature awareness, such as increased travel point rewards on a credit card from 0 to 40 percent in the target audience by the end of six months. POINTS: 1 DIFFICULTY : Moderate LEARNING O BJECTIVES: MARK.PRID.16.17.02 - LO: 17-02 NATIONAL S TANDARDS: United States - BUSPROG: Analytic STATE STAN DARDS: United States - AK - DISC: Strategy TOPICS: A-Head: Developing An Advertising Campaign KEYWORDS: Bloom's: Knowledge 4. What is an advertising platform? What is th