Question 1

Scenario 8-4
American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets.
-(Scenario 8-4)American Express marketers say they do not use the ______ advertising budgeting method,because if sales begin to decrease in this segment,so will their budget.

Accepted Answer

American Express is not using the percentage-of-sales advertising budgeting method because they do not want their advertising budget to decrease if sales decrease. The objective-and-task method, on the other hand, allows marketers to set specific objectives and then determine the necessary budget to achieve those objectives. Therefore, it is the most suitable method for American Express to use in this scenario.

Question 2

Many marketers would take the stance that communications objectives are the only legitimate objectives for advertising a brand like Sweet Sunshine.They would argue that it is not reasonable to set sales objectives for its advertising effort when other variables in the mix might undermine the advertising effort,or might be responsible for sales of Sweet Sunshine orange juice (or lack of sales)in the first place.In addition,viewing advertising as primarily a communications effort will allow the marketer to consider a broader range of ad strategies in promoting the Sweet Sunshine brand.Overall,communications objectives should create an awareness for the Sweet Sunshine brand,offer information about its features and benefits,and develop a favorable attitude toward the brand that may lead to consumer preference.These objectives have certain advantages over sales objectives-they consider a broaderrange of strategies,and they gain a greater appreciation for the overall communications process.But there is always the idea,even if it is in the background,that advertising must sell.So the marketer may use both types,as long as certain criteria are met.Any objectives that enable a firm to make intelligent decisions about resource allocation-whether based on communications or sales-must be stated in an advertising plan in terms specific to the organization.The objectives must establish a quantitative benchmark,specify measurement methods and criteria for success,and identify a time frame for the desired results to occur.

Accepted Answer

The answer of Many marketers would take the stance that...

Question 3

Define these terms: brand awareness,top-of-the-mind awareness,purchase intent,trial usage,repeat purchase,and brand switching.Choose two of these concepts and give real-life examples.

Accepted Answer

The answer of Define these terms: brand awareness,top-of-the-mind awareness,purchase intent,trial...

Question 4

Why is the objectives section of an advertising plan so important to an advertiser? Name at least three of the objectives described in the text.For each objective,list one important consideration for advertisers.

Accepted Answer

The answer of Why is the objectives section of an...

Question 5

You are the marketing manager for an online merchandiser of a diverse line of casual sportswear,athletic clothing,and outerwear for both men and women.Write a brief memo to your advertising agency.In the memo,explain why you'd like the agency to abandon its recommendation for a share-of-market strategy in creating the budget.Give several reasons why this approach is unfavorable.Then explain why you want the agency to adopt an objective-and- task method.Also,there are four main steps that must be taken to implement this approach after advertising objectives are determined.List as many as you can.(It is not necessary to describe the steps in detail.)

Accepted Answer

The answer of You are the marketing manager for an...

Question 6

Scenario 8-4
American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets.
-(Scenario 8-4)Within the ______ portion of its advertising plan,American Express suggests that the most important  outcome of the campaign will be for Visa customers to start switching to American Express in this market segment.

Accepted Answer

The objective portion of the advertising plan outlines the specific goals that American Express wants to achieve through its advertising campaign, which includes increasing penetration in the small business market by encouraging more usage of the Gold Rewards Plus card for purchasing office supplies and durable goods. The objective of the campaign is to get Visa customers to switch to American Express, which is a specific communication objective aimed at a certain target market.

Question 7

Scenario 8-4
American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets.
-(Scenario 8-4)The marketers are keenly aware that many budgeting methods fail to address the objectives originally set and relate these to the dollars to be spent.Which budgeting technique is American Express ultimately most likely to use,based on this awareness and the information in this scenario?

Accepted Answer

The scenario emphasizes that American Express wants to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card. Therefore, the most appropriate budgeting technique for American Express would be the objective-and-task approach. This approach involves setting communication objectives, determining the tasks required to achieve them, estimating the costs of performing these tasks, and then adding them up to create the budget. This approach is more likely to ensure that the budget is aligned with the company's objectives and that the required resources are available for communication activities.

Question 8

Scenario 8-4
American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets.
-(Scenario 8-4)Within various sections of the _______ portion of its advertising plan,American Express explains how and why Visa has been more successful at penetrating the small business market because of lower fees.

Accepted Answer

The situation analysis portion of the advertising plan would include a discussion of competitors, such as Visa, and reasons for their success in the small business market.

Question 9

Scenario 8-4
American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets.
-(Scenario 8-4)American Express has decided to do a specific type of analysis that focuses on reach,frequency,time frame,production costs,media expenditures,and other specific elements.These factors are always included in a(n)                analysis.

Accepted Answer

This type of analysis is known as a build-up analysis, which focuses on the detailed aspects of a marketing campaign such as reach, frequency, time frame, production costs, and media expenditures, specifically tailored to achieve certain communications objectives.

Question 10

A good advertising plan is the result of combining the knowledge and talents of both the advertising agency and the client.In heading up a team that is creating the marketing plan for a large cosmetics firm,an account manager needs to make sure all goals are met and all responsibilities are assigned.For what issues does the client take primary responsibility? For what elements does the agency take primary responsibility?​

Accepted Answer

The answer of A good advertising plan is the result...

Question 11

Scenario 8-5
Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market. In test marketing, many consumers liked the product, but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis.
-(Scenario 8-5)Helene Curtis has once again decided to use objective-and-task budgeting to set the advertising expenditures.This is the only budgeting method that focuses specifically on advertising spending:

Accepted Answer

Objective-and-task budgeting links advertising goals with the specific tasks that are necessary to accomplish them, thus determining the amount of money that will be spent on advertising. This approach requires careful analysis of the advertising objectives and the specific tasks needed to achieve them, which makes it the most suitable method for Helene Curtis in this scenario.

Question 12

Scenario 8-5
Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market. In test marketing, many consumers liked the product, but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis.
-(Scenario 8-5)The advertising agency for Helene Curtis is in the process of doing a build-up analysis.This means it is:

Accepted Answer

A build-up analysis involves adding up the costs associated with each task identified in the advertising plan for the new product. This will help determine the total advertising budget needed for the campaign. Option A refers to the process of isolating key costs in moving from awareness to preference to purchase, which is part of the build-up analysis. Option B is only focused on determining the cost of building up awareness, ignoring the other necessary tasks. Option D refers to determining the time frame needed to meet advertising objectives, which is important but not the main focus of a build-up analysis.

Question 13

Scenario 8-5
Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market. In test marketing, many consumers liked the product, but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis.
-(Scenario 8-5)Which element of the build-up analysis will identify the demographic and geographic exposure that the advertising for the shampoo hopes to achieve?

Accepted Answer

The element of the build-up analysis that identifies the demographic and geographic exposure that the advertising for the shampoo hopes to achieve is reach. Reach refers to the number or percentage of the target audience that will be reached by the advertising. Therefore, the correct answer is D) Reach.

Question 14

Scenario 8-5
Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market. In test marketing, many consumers liked the product, but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis.
-(Scenario 8-5)The number of exposures required to accomplish the advertising objectives for the shampoo,referred to as                 ,will also be included in the build-up analysis for Helene Curtis.

Accepted Answer

The number of exposures required to accomplish the advertising objectives is known as frequency. This information will be included in the build-up analysis for Helene Curtis along with other components such as reach, media costs, and production costs. Therefore, option C is the correct choice. Execution and production refer to different aspects of creating an advertising campaign, while reach refers to the number of people who are exposed to the ad.

Question 15

Describe the essential difference between an industry analysis and a market analysis.In what section of an ad plan are these typically included? What are the other considerations for an advertiser that should be part of this section? Where does the competitor analysis come in?

Accepted Answer

The answer of Describe the essential difference between an industry...

Question 16

Scenario 8-5
Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market. In test marketing, many consumers liked the product, but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis.
-(Scenario 8-5)The build-up analysis will also address costs not listed elsewhere,particularly those associated with advertising to the trade and doing specialized research.Which factor does this involve?

Accepted Answer

Ancillary costs refer to costs not included in other categories, such as advertising to the trade and specialized research. Therefore, the build-up analysis is addressing ancillary costs.

Quiz 8: Planning Advertising and Integrated Brand Promotion

Define these terms: brand awareness,top-of-the-mind awareness,purchase intent,trial usage,repeat purchase,and brand switching.Choose two of these concepts and give real-life examples.

Why is the objectives section of an advertising plan so important to an advertiser? Name at least three of the objectives described in the text.For each objective,list one important consideration for advertisers.

Describe the essential difference between an industry analysis and a market analysis.In what section of an ad plan are these typically included? What are the other considerations for an advertiser that should be part of this section? Where does the competitor analysis come in?