Deck 8: Planning Advertising and Integrated Brand Promotion

Question 1

An advertising plan is designed to create sales strategies for the client in a process that is totally separate from the overall marketing plan.

Answer 1

False

Question 2

Objectives for advertising are measurable only through quantifiable variables.

Answer 2

True

Question 3

Well-stated objectives work best when they set a benchmark, specify a measurement method, and define a time frame.

Answer 3

True

Question 4

Advertisers should set only one objective in an advertising plan.

Question 5

Few companies use purchase intent as the criterion in setting ad objectives because it tends to be much less accurate in predicting sales than other factors, such as attitude.

Question 6

When an ad agency is asked to recommend a budget to the client, it is usually the account executive who handles this.

Question 7

The competition's strengths, weaknesses, tendencies, and any threats they pose are included in the competitor analysis.

Question 8

Some argue that sales should not be set as an objective for advertising, since advertising is only one variable in an entire marketing mix and cannot be solely responsible for selling the product.

Question 9

Share of voice has its problems, but is most often used when launching new products.

Question 10

Years spent in marketing or advertising often turn an individual's cultural values into a type of inner comfort zone that zeros in on cultural nuances, thinks globally, and fights ethnocentrism.

Question 11

The initial section of the ad plan should be a budgeting section that directly states what it will cost to implement this plan.

Question 12

Viewing advertising strictly from a communications perspective has its disadvantages.For example, it restricts marketers to a narrower range of advertising strategies.

Question 13

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.

Question 14

Share of voice, or share of market, is a method that bases an ad budget on whatever significant competitors are spending.

Question 15

The method of budget setting that focuses on the relationship between spending and advertising objectives is the margin-analysis approach.

Question 16

Setting an advertising budget based on the percentage-of-sales approach sounds simple, but it is full of problems.

Question 17

It is tempting for both clients and agencies to rely on their own cultural attitudes and values as a subconscious guide in considering what other people want and need.Another name for this subconscious guide is bias.

Question 18

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.

Question 19

The situation analysis of an advertising plan includes historical context as well as evaluation of the industry, the market, and the competition.

Question 20

An advertising plan should be a direct extension of a firm's marketing plan.

Question 21

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

A)ethnocentrism.
B)international advertising.
C)share of voice.
D)self-reference criterion.

Question 22

The essence of agency-client teamwork is to answer the question concerning what brand should be promoted within the market.

Question 23

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.

A)situational analysis
B)competitor analysis
C)executive summary
D)strategy

Question 24

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

A)historical context
B)industry analysis
C)competitor analysis
D)market analysis

Question 25

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

A)should be explained in the industry analysis.
B)can be listed as an objective.
C)should be noted in the market analysis.
D)belongs in the evaluation section.

Question 26

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.

Question 27

The industry analysis and market analysis work together to form part of the overall situation analysis.The industry analysis focuses on ____ and the market analysis focuses on ____.

A)consumers; competitors
B)brand; product
C)supply; demand
D)objectives; tasks

Question 28

When devising the evaluation stage of ad planning, it is determined how much time the agency has, how it will be graded, and what criteria will be applied when judging its efforts.

Question 29

A young man heads the marketing team for a national electronics retailer.He has before him the task of drafting the ad plan for the company.From a long list of situational factors, which is probably the single most important one for him to consider?

A)projected industry growth
B)advertising spending by competitors
C)basic demographic trends
D)economic and regulatory restrictions

Question 30

The one point where all the money is spent-and where much money can be saved-is when you are conducting the evaluation.

Question 31

Apple used a wide array of options to create interest and communicate the value proposition for its brands like the iPad and iPhone.Which of the following was NOT included in Apple's advertising plan?

A)billboard ads
B)manufacturing schedule
C)product placement
D)promotional events

Question 32

Minor modifications are common, but every precaution should be taken to avoid having to radically alter a budget after it is submitted.

Question 33

If a reader of an advertising plan remembers only one part, it should be the

A)situation analysis.
B)executive summary.
C)strategy.
D)objectives.

Question 34

The first element to appear in an advertising plan is the ____, and the last element is the ____.

A)executive summary; execution
B)introduction; evaluation
C)history; strategy
D)overview; competitor analysis

Question 35

The copy strategy is one of two main parts you will consider when you are actually launching and conducting the overall advertising plan.

Question 36

An advertising agency may take an active role in helping the client formulate the marketing plan.

Question 37

In an advertising plan, the ____ is the section in which the client and the agency lay out the key factors that define the current conditions and then explain the importance of each factor.

A)execution
B)strategy
C)situation analysis
D)evaluation

Question 38

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.

A)society
B)entertainment
C)everything
D)journalism

Question 39

In essence, what an agency reasonably expects from a client involves autonomy, total creative control, and an open-ended approach to the time and resources to be allocated.

Question 40

Based on information gathered during various types of analyses, the primary expectations and intentions for advertising are embodied in the process of setting objectives.

Question 41

Combining sales objectives with communications objectives

A)will almost certainly spell disaster for an advertising plan.
B)may seem effective on paper but may confuse consumers during the campaign.
C)is the only way to identify truly quantitative benchmarks for the campaign.
D)can be an excellent way to develop an advertising campaign.

Question 42

What does the objectives section of an advertising plan do?

A)defines those who use the product
B)notes possible barriers and problems
C)estimates probable costs
D)identifies concrete goals

Question 43

An "advertising ____ function" is a mathematical relationship that associates the money spent on advertising with the sales generated.

A)sales
B)communications
C)task
D)response

Question 44

Of all options for creating advertising budgets, the ____ relies most heavily on a marginal analysis involving the company's past sales, profits, and ad expenditures.

A)objective-and-task method
B)share-of-market method
C)percentage-of-sales system
D)advertising response function

Question 45

A frozen dessert manufacturer wants to see an increase in consumers who say they do plan on buying desserts at one of its outlets soon, so the manufacturer sets this as its objective in the ad plan.In doing so, the underlying assumption here is that purchase intent is

A)synonymous with positive attitudes.
B)accurately and reliably expressed by consumers.
C)an easier goal to reach than most other objectives.
D)a reliable indicator of repeat purchases.

Question 46

A common objective for many clients is to create, change, or reinforce attitudes.Sometimes a number of logical, well-written arguments can make a strong case and ultimately influence attitudes.What method does this represent?

A)repeat purchase approach
B)information-dense approach
C)brand-switching approach
D)visual imagery approach

Question 47

Which element is essential to articulating a well-stated advertising objective?

A)a time frame
B)a budget
C)an overview
D)an evaluation

Question 48

To determine the public's knowledge of a product, a marketer asks consumers to name five breakfast cereals.Cheerios is the cereal most often listed first, so it is considered to show

A)top-of-the-mind awareness.
B)purchase intent.
C)ethnocentrism.
D)market awareness.

Question 49

The account planner at an Indianapolis ad agency has done a survey and found that a significant percentage of people already recognize the name of the cold remedy his firm is about to advertise.When consumers know that a brand exists and recall its name to some degree, they are demonstrating

A)brand loyalty.
B)brand switching.
C)brand awareness.
D)top-of-the-mind awareness.

Question 50

What is probably the most agonizing task to be done during an advertising effort?

A)setting the objective
B)creating the budget
C)summarizing the campaign
D)writing the copy

Question 51

The percentage-of-sales approach to advertising budgeting

A)is best used during times of declining sales.
B)is difficult to understand and operationalize.
C)often leads to overspending or underspending.
D)relates advertising dollars to advertising objectives.

Question 52

What is the first step in implementing the objective-and-task approach?

A)identifying last year's sales
B)determining costs based on a build-up analysis
C)comparing expenditures against industry benchmarks
D)calculating a marginal analysis

Question 53

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?

A)purchase intent
B)trial usage
C)repeat purchase
D)build-up purchase

Question 54

A fragrance manufacturer wants its target customers to demonstrate top-of-the-mind awareness regarding its long-standing perfume, Bouquet.This means that when they are asked to think of perfumes, they would

A)include the name Bouquet somewhere on their list.
B)realize that they want to purchase Bouquet.
C)think of Bouquet first.
D)only be able to think of Bouquet.

Question 55

The CEO of a small but growing sports equipment firm has just announced that sales went up significantly last year.The marketing director is happy because her budget will go up also.This indicates that the firm is using the ____ to set the advertising budget.

A)objective-and-task approach
B)share-of-market approach
C)percentage-of-sales approach
D)advertising response function

Question 56

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

Question 57

In theory, of the major options for advertising objectives, ____ asks the least of consumers and ____ demands the most.

A)trial usage; brand awareness
B)purchase intent; trial usage
C)trial usage; repeat purchase
D)brand awareness; brand switching

Question 58

Failing to address how the expenditures being proposed will actually meet the goals being pursued is a major downfall of the typical advertising budget.In fact, the only budgeting method that specifically relates spending to goals is the

A)share-of-market approach.
B)percentage-of-sales approach.
C)objective-and-task approach.
D)share-of-voice approach.

Question 59

Which budgeting method monitors the amount spent by significant competitors and then allocates an equal or proportionate amount as its advertising dollars?

A)share-of-voice approach
B)objective-and-task approach
C)advertising response function
D)percentage-of-sales approach

Question 60

A marketing manager has always used the share-of-voice budget method and probably always will.One big problem with marketers who rely on a share-of-voice budget plan is that they assume, often wrongly, that

A)their competition doesn't know how to allocate its advertising dollars.
B)their sales figures should automatically dictate their advertising figures.
C)they know how much competitors are really spending.
D)their ad is distinct, unique, and superior among all others in the field.

Question 61

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.

A)historical context
B)industry analysis
C)market analysis
D)competitor analysis

Question 62

Like many companies today, a young but growing electronics retailer knows it needs help.If it is like most clients, in what two areas does it need the most help from an ad agency?

A)creating value for the product, and setting objectives
B)integrating the brand within the media, and generating new ideas
C)defining the product, and creating brand awareness
D)creating the budget, and writing the copy

Question 63

John Wanamaker's famous line, that "I know half my advertising is wasted, I just don't know which half," jokes about the difficulties associated with advertising

A)execution.
B)strategy.
C)evaluation.
D)objectives.

Question 64

Scenario 8-1
You are owner of a 15-person advertising agency in a major market.You've been invited to pitch the Girl Powerz account, the largest female-only fitness center chain in the region, one that could quickly grow into a national franchise.If you land the account, it will be your biggest revenue producer by far.You'll be able to staff up, move to a nicer space, and buy some decent office furniture.It also will put you, personally, in a position to make a ton of money by selling out to a larger agency some day.Considering the importance of the pitch to Girl Powerz execs, you have decided to spearhead the pitch yourself.
(Scenario 8-1) In the past, Girl Powerz has set sales objectives for its advertising.You feel that this doesn't take into account the overall complexities presented in the situation analysis.On the other hand, you don't want to risk alienating a potential client by totally rejecting its current practices.Therefore, you are recommending combining sales objectives with

A)advertising objectives.
B)marketing objectives.
C)communications objectives.
D)promotion objectives.

Question 65

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) Like many firms, Amazon has refined its priorities over the years.Many firms begin by setting as their advertising objective something that is often disputed by communications-oriented marketers.They choose ____ as their primary advertising objective.

A)stimulating trial use
B)boosting sales
C)establishing brand recall
D)identifying purchase intent

Question 66

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.

A)overview and executive summary
B)industry analysis and historical context
C)strategy and execution
D)historical context and market analysis

Question 67

The strategy section of an advertising plan is the mechanism that states

A)why the advertising is needed for this product or service.
B)what goals need to be reached.
C)how things will be done so that objectives are achieved.
D)who will handle various promotional tasks.

Question 68

A canned soup manufacturer and its agency are nailing down the responsibilities of each side as they begin their planning effort.In a nutshell, the agency will

A)translate goals into strategies and create promotions and finished ads for the product.
B)provide input on the most important competition within the soup industry.
C)identify the value that the product offers to customers.
D)assess the external environment for potential soup purchases.

Question 69

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.

A)historical context
B)market analysis
C)industry analysis
D)competitor analysis

Question 70

Scenario 8-1
You are owner of a 15-person advertising agency in a major market.You've been invited to pitch the Girl Powerz account, the largest female-only fitness center chain in the region, one that could quickly grow into a national franchise.If you land the account, it will be your biggest revenue producer by far.You'll be able to staff up, move to a nicer space, and buy some decent office furniture.It also will put you, personally, in a position to make a ton of money by selling out to a larger agency some day.Considering the importance of the pitch to Girl Powerz execs, you have decided to spearhead the pitch yourself.
(Scenario 8-1) It is ultimately decided that the ad budget will base spending on what needs to be accomplished from a communications standpoint.This would be the

A)objective-and-task approach.
B)percentage-of-sales approach.
C)share-of-voice approach.
D)response model approach.

Question 71

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) When dealing with its advertising agency, Amazon wants a strategy that maximizes media expenditures to target the appropriate markets.It is Amazon's primary responsibility to bring forth a well-articulated statement of the brand's _____, a key concept in reaching and informing the customer through promotion.

A)analysis
B)awareness
C)competition
D)value

Question 72

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?

A)top-of-the-mind awareness
B)purchase intent
C)trial usage
D)repeat purchase

Question 73

Within the advertising plan, what does a "build-up" analysis actually build up?

A)the backlog of consumer profiles to be used
B)the expenditure level for tasks to be done
C)the sales expected to be seen
D)the goals and objectives to be pursued

Question 74

Scenario 8-1
You are owner of a 15-person advertising agency in a major market.You've been invited to pitch the Girl Powerz account, the largest female-only fitness center chain in the region, one that could quickly grow into a national franchise.If you land the account, it will be your biggest revenue producer by far.You'll be able to staff up, move to a nicer space, and buy some decent office furniture.It also will put you, personally, in a position to make a ton of money by selling out to a larger agency some day.Considering the importance of the pitch to Girl Powerz execs, you have decided to spearhead the pitch yourself.
(Scenario 8-1) One of the main tasks will be to work with the marketing director at Girl Powerz to determine exactly what she wants from its new advertising campaign.Which elements identify the specific goals that you will ask her to provide, in concrete terms?

A)strategies
B)tactics
C)objectives
D)executions

Question 75

Scenario 8-1
You are owner of a 15-person advertising agency in a major market.You've been invited to pitch the Girl Powerz account, the largest female-only fitness center chain in the region, one that could quickly grow into a national franchise.If you land the account, it will be your biggest revenue producer by far.You'll be able to staff up, move to a nicer space, and buy some decent office furniture.It also will put you, personally, in a position to make a ton of money by selling out to a larger agency some day.Considering the importance of the pitch to Girl Powerz execs, you have decided to spearhead the pitch yourself.
(Scenario 8-1) You announce that you will write the part of the ad plan that contains the crucial information that Girl Powerz execs need to know, even if they remember nothing else.This means you will write the ____ section.

A)situation analysis
B)execution
C)strategy
D)executive summary

Question 76

The ways in which the creative objectives will be accomplished are described in the

A)copy strategy section.
B)build-up analysis.
C)objective-and-task method.
D)media plan.

Question 77

Regarding the relationship between the client and agency, things will go most smoothly and efficiently when

A)you see them as equal forces with equal power and responsibility.
B)you can identify two distinct entities with clearly defined roles and tasks.
C)you can tell that the agency does everything the client wants without question.
D)you can't tell where the work of one ends and the other begins.

Question 78

Scenario 8-1
You are owner of a 15-person advertising agency in a major market.You've been invited to pitch the Girl Powerz account, the largest female-only fitness center chain in the region, one that could quickly grow into a national franchise.If you land the account, it will be your biggest revenue producer by far.You'll be able to staff up, move to a nicer space, and buy some decent office furniture.It also will put you, personally, in a position to make a ton of money by selling out to a larger agency some day.Considering the importance of the pitch to Girl Powerz execs, you have decided to spearhead the pitch yourself.
(Scenario 8-1) The folks at Girl Powerz initially consider using an advertising budgeting method that identifies a mathematical relationship associating ad dollars spent with sales generated.This would be the

A)percentage-of-sales approach.
B)ethnocentric method.
C)advertising response function.
D)share-of-voice approach.

Question 79

Overall, the media plan specifies

A)the objectives the advertiser intends to accomplish.
B)exactly where ads will be placed and what strategy is behind their placement.
C)the prediction of profits based on new advertising.
D)the analysis of the market, industry, and competition.

Question 80

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 was one of the first online retailers to launch advanced technology to track consumer visits and suggest products whenever they returned to the site.This ability to find out what customers have bought in the past, and project that they will buy similar items in the future, has been a key factor underlying Amazon's strategy and growth.When Amazon asks customers if they plan on buying certain products in the future, it is measuring

A)share of market.
B)brand awareness.
C)share of voice.
D)purchase intent.