COB 300 MARKETING EXAM 2
QUESTIONS AND ANSWERS (SET 2)
Full-service agency - Answer-Does research, selects media, develops copy, and
produces artwork; also coordinates integrated campaigns with all marketing efforts
Limited-service agency - Answer-Specializes in one aspect of creative process; usually
provides creative production work; buys previously unpurchased media space
In-house agency - Answer-Provides range of services, depending on company needs
Coupons (objectives) - Answer-Stimulates demand
Deals (objectives) - Answer-Increase trial
Premiums (objectives) - Answer-Build goodwill
Contests (objectives) - Answer-Increase customer purchases; build business inventory
Sweepstakes (objectives) - Answer-Encourage present customers to buy more;
minimize brand switching
Samples (objectives) - Answer-Encourage new product trial
Loyalty programs (objectives) - Answer-Encourage repeat purchases
Point-of-purchase displays (objectives) - Answer-Increase product trial
Rebates (objectives) - Answer-Encourage customers to purchase
Product placement (objectives) - Answer-Introduce new products
Which three advertising mediums account for more than 60% of all advertising
expenditures? - Answer-TV 30%
Direct Mail: 22%
Internet: 17%
CPM means... - Answer-Cost per thousand
CPM formula - Answer-
Coupons (pros & cons) - Answer-Pro: Encourage retailer support
Con: Consumers delay purchases
, Deals (pros & cons) - Answer-Pro: Reduce consumer risk
Con: Consumers delay purchase
Premiums (pros & cons) - Answer-Pro: Consumers like free or reduced prices
Con: Consumers buy for premium, not product
Contests (pros & cons) - Answer-Pro: Encourage consumer involvement with product
Con: Require creative or analytical thinking
Sweepstakes (pros & cons) - Answer-Pro: Get consumer to use product and store more
often
Con: Sales drop afterwards
Samples (pros & cons) - Answer-Pro: Low risk for consumer
Con: High cost for company
Loyalty programs (pros & cons) - Answer-Pro: Help create loyalty
Con: High cost for company
Point-of-purchase displays (pros & cons) - Answer-Pro: Provide good product visibility
Con: Hard to get retailer to allocate high-traffic space
Rebates (pros & cons) - Answer-Pro: Effective at stimulating demand
Con: Easily copied, steal sales from future, reduced perceived product value
Product placement (pros & cons) - Answer-Pro: Positive message in a noncommercial
setting
Con: Little control over presentation of product
Publicity tools - Answer-Sponsorships
Social Responsibility
(Ex. Tom Shoes)
(Ex. Yoplait)
News Releases
Press Conferences
QUESTIONS AND ANSWERS (SET 2)
Full-service agency - Answer-Does research, selects media, develops copy, and
produces artwork; also coordinates integrated campaigns with all marketing efforts
Limited-service agency - Answer-Specializes in one aspect of creative process; usually
provides creative production work; buys previously unpurchased media space
In-house agency - Answer-Provides range of services, depending on company needs
Coupons (objectives) - Answer-Stimulates demand
Deals (objectives) - Answer-Increase trial
Premiums (objectives) - Answer-Build goodwill
Contests (objectives) - Answer-Increase customer purchases; build business inventory
Sweepstakes (objectives) - Answer-Encourage present customers to buy more;
minimize brand switching
Samples (objectives) - Answer-Encourage new product trial
Loyalty programs (objectives) - Answer-Encourage repeat purchases
Point-of-purchase displays (objectives) - Answer-Increase product trial
Rebates (objectives) - Answer-Encourage customers to purchase
Product placement (objectives) - Answer-Introduce new products
Which three advertising mediums account for more than 60% of all advertising
expenditures? - Answer-TV 30%
Direct Mail: 22%
Internet: 17%
CPM means... - Answer-Cost per thousand
CPM formula - Answer-
Coupons (pros & cons) - Answer-Pro: Encourage retailer support
Con: Consumers delay purchases
, Deals (pros & cons) - Answer-Pro: Reduce consumer risk
Con: Consumers delay purchase
Premiums (pros & cons) - Answer-Pro: Consumers like free or reduced prices
Con: Consumers buy for premium, not product
Contests (pros & cons) - Answer-Pro: Encourage consumer involvement with product
Con: Require creative or analytical thinking
Sweepstakes (pros & cons) - Answer-Pro: Get consumer to use product and store more
often
Con: Sales drop afterwards
Samples (pros & cons) - Answer-Pro: Low risk for consumer
Con: High cost for company
Loyalty programs (pros & cons) - Answer-Pro: Help create loyalty
Con: High cost for company
Point-of-purchase displays (pros & cons) - Answer-Pro: Provide good product visibility
Con: Hard to get retailer to allocate high-traffic space
Rebates (pros & cons) - Answer-Pro: Effective at stimulating demand
Con: Easily copied, steal sales from future, reduced perceived product value
Product placement (pros & cons) - Answer-Pro: Positive message in a noncommercial
setting
Con: Little control over presentation of product
Publicity tools - Answer-Sponsorships
Social Responsibility
(Ex. Tom Shoes)
(Ex. Yoplait)
News Releases
Press Conferences
