advertising final

Q: What is the difference between marketing objectives and integrated marketing communications (IMC) objectives?

A: Marketing objectives define what the overall marketing program must achieve (e.g., sales growth, market share), while communications objectives specify how advertising and IMC support those goals by building awareness, attitudes, and brand preference.

Q: Why are communications objectives considered task-based rather than sales-based?

A: They focus on delivering messages and moving consumers through cognitive, affective, and conative stages rather than directly generating sales.

Q: What are sales oriented objectives?

A: focus on increasing sales and require economic justification and ROI measurement

Q: Why are sales objectives problematic for advertising evaluation?

A: Advertising has a lag effect, sales are influenced by many non-ad factors, and sales goals provide little guidance for planning promotions.

Q: What are communications objectives?

A: focus on informing consumers, creating favorable brand impressions, and moving consumers through cognitive (thinking), affective (feeling), and conative (behavioral) stages. Advertising typically works first at these lower levels before influencing purchase behavior

 

Q: What is the lag (carryover) effect of advertising?

A: Advertising does not create immediate sales; its effects often appear months or years later by building brand equity and awareness.

Q: Does a dollar spent on advertising in one fiscal year typically translate into $ for $ sale in the same year?

A: Yes

Q: Advertising builds

A: long-term brand equity and awareness that affects future performance, not instant sales.

 

Q: What is top-down budgeting?

A: A budgeting approach where top management sets the budget first and departments must work within that limit.

Q: Examples of top down budgeting

A: Affordable method, Arbitrary allocation, Percentage-of-sales method

Q: What is bottom-up budgeting?

A: A budgeting approach that starts with communications objectives, identifies required tasks, estimates costs, and submits a total budget for approval.

Q: Examples of bottom up budgeting

A: Objective-and-task method, Payout planning, Quantitative models

Q: How does arbitrary budgeting work?

A: Budgets are set by management judgment or intuition with no systematic analysis; Common in top-down budgeting; Can result in under- or overspending

Q: What is the percentage-of-sales method, and what is a major flaw?

A: Budgets are set as a percentage of sales; it incorrectly assumes advertising causes sales and cuts budgets when sales decline, Does not support strategic changes or new product launches

Q: How do companies budget in the real world?

A: By combining top-down and bottom-up approaches in a two-way process influenced by competitive and organizational constraints; Often views promotion as an expense rather than an investment; Considers sales response models, marginal analysis, competitive pressures, and organizational constraints

Q: What factors influence how advertising budgets are allocated?

A: Client/agency policies, market size, market potential, market share goals, and economies of scale.

Q: Client/Agency Policies

A: Internal rules, approval processes, power dynamics, and decision-maker preferences strongly influence how much is spent and where

Q: Market Size

A: Larger markets generally require larger absolute advertising budgets to achieve sufficient reach and frequency

Q: Market Potential

A: Markets with higher growth potential justify greater investment, even if current sales are low

Q: Profit-taking brands (underspenders)

A: Spend less than their share of market

Q: Investment brands

A: Spend more than their market share to grow (share-of-voice strategy)

 

Q: Economies of Scale

A: Larger firms benefit from efficiencies that allow them to:

• Spend less per unit of sales

• Maintain advertising shares smaller than their market shares while still achieving strong returns

Q: What is an informational (rational) appeal?

A: An appeal that focuses on facts, features, benefits, and logical reasons to buy a product.

Q: Give examples of informational appeal types.

A: Feature appeals, competitive advantage claims, price appeals, news appeals, and popularity appeals.

Q: What is an emotional appeal in advertising?

A: An appeal that targets consumers’ social and psychological needs to create feelings and emotional connections with a brand.

Q: What is transformational advertising?

A: Advertising that makes using the product feel more exciting, enjoyable, or meaningful and closely links the ad experience to the brand.

Q: Example of emotional appeal ad

A: A Coca-Cola ad showing friends laughing together to associate the brand with happiness and connection.

Q: Example of transformational ad

A: Nike ads that associate wearing the brand with motivation, confidence, and achievement rather than shoe features.

Q: Why do many ads combine rational and emotional appeals?

A: Rational appeals provide credibility, while emotional appeals improve liking, memory, and brand attachment.

Q: Example of ad with informational and emotional appeals

A: An insurance ad that explains coverage benefits (rational) while showing a family feeling safe and secure (emotional).

Q: Name common advertising execution methods.

A: Straight sell, scientific evidence, demonstration, comparison, testimonial, slice of life, animation, personality symbol, fantasy, dramatization, humor.

Q: Straight Sell / Factual Ad

A: Definition: Straightforward presentation of product information

• Appeal type: Informational/rational
  Example: Print ad listing features and price of a smartphone

Q: Scientific / Technical Evidence Ad

A: Definition: Straightforward presentation of product information

• Appeal type: Informational/rational
  Example: Print ad listing features and price of a smartphone

Q: Demonstration Ad

A: Shows the product being used to prove benefits
Example: Cleaning product removing stains on camera

Q: Comparison Ad

A: Shows a brand’s advantage over competitors
Example: Brand A cleans better than Brand B

Q: Testimonial Ad

A: Uses personal experience to endorse the brand

• Can include celebrity endorsements
  Example: Athlete promoting sports equipment

Q: Slice of Life Ad

A: Shows everyday problems and solutions

• Often uses a problem–solution format
  Example: A parent solving a household problem with a product

Q: Animation Ad

A: Uses animated characters or scenes
Example: Animated cereal mascots

Q: Personality Symbol Ad

A: Uses a central character to represent the brand
Example: The Geico Gecko or Tony the Tiger

Q: Fantasy Ad

A: Creates an unreal or imaginative setting
Example: Perfume ads with dreamlike visuals and no product explanation

Q: Dramatization Ad

A: Tells a story with conflict, climax, and resolution

• More emotional and suspenseful than slice of life
  Example: A commercial showing a dramatic rescue enabled by a product

Q: Humor

A: Uses comedy to attract attention and enhance appeal
Example: Funny Super Bowl commercials

Q: Combinations Ads

A: Uses multiple execution styles in one ad
Example: A humorous testimonial with a product demonstration

Q: What is media planning?

A: The process of deciding how to deliver advertising messages to reach the target audience efficiently and effectively.

• Communicate the message most effectively

• Reach the largest number of potential customers

• At the lowest cost

Q: What are the main problems in media planning?

A: Insufficient information, inconsistent terminology, time pressures, and difficulty measuring effectiveness.

Q: What are the major steps in developing a media plan?

A: Situation analysis, marketing strategy, creative strategy, setting media objectives, determining media strategy, selecting media classes and vehicles.

Q: Situational Analysis

A: Market analysis

• Target market identification

• Environmental scanning (competitive, economic, technological, social, legal)

Q: What do index numbers measure?

A: Market potential relative to the average (100).

= (% of product users in segment / % of population i segment) x 100

> 100 = higher-than-average usage

< 100 = lower-than-average usage

Q: Internal Factors Influencing Media Strategy

A: Size of media budget

• Managerial and administrative capabilities

• Organization of the agency

Q: External Factors Influencing Media Strategy

A: Economy: rising media costs

• Technology: databases, new media platforms

• Competitive factors: environmental scanning

  • Legal

  • Social

  • Competitive actions

Q: Where Should We Promote?

A: Based on regional and geographic differences in sales

• Goal: allocate budget most effectively and efficiently

Q: What is the purpose of using indexes

A: Measures market potential relative to the U.S.

• Based on:

  • Population

  • Effective buying income

  • Retail sales

• Indicates relative value of a geographic market

Q: What does a BDI measure?

A: How well a brand performs in a market relative to population.

= (Brand sales in market/Total brand sales / Population in market/total population) x 100

Q: What does a CDI measure?

A: The strength of the entire product category in a market.

(Category sales in market/total category sales / population in market/total population) x 100

Q: What does a high BDI and high CDI indicate?

A: Strong brand and strong category — invest more.

Q: Low BDI / High CDI

A: category strong, brand weak → opportunity

Q: High BDI / Low CDI:

A: brand strong, category weak → defend position

Q: Low BDI / Low CDI:

A: limited opportunity → minimal spending

Q: What are media objectives usually stated in terms of?

A: Reach, frequency, coverage, and continuity.

Q: What is media mix?

A: the combination of media used to deliver an advertising message.

Q: Media mix selection depends on

A: Target Market Coverage, Scheduling and Reach vs Frequency

Q: Target market coverage levels

A: Full coverage: Attempt to reach the entire market

• Waste coverage: Exposure to people outside the target market

• Partial coverage: Focus on select segments only

Q: Scheduling

A: Continuity, Flighting, Pulsing

Q: Continuity

A: Ads run steadily throughout the year
Advantages: consistent exposure, supports brand awareness
Disadvantages: expensive, inefficient if sales are seasonal

Q: Flighting

A: Periods of advertising followed by no advertising
Advantages: cost-efficient, works for seasonal products
Disadvantages: brand may be forgotten during off periods

Q: Pulsing

A: Combination of continuity and flighting
Advantages: maintains presence while increasing intensity at key times
Disadvantages: complex planning, higher cost than flighting alone

Q: What is the difference between reach and frequency?

A: Reach is the percentage of the audience exposed at least once; frequency is the average number of exposures.

Q: What is the 3-hit rule?

A: One exposure for awareness, one for understanding, and one for persuasion.

Q: Duplicated vs. Unduplicated Reach

A: Duplicated reach: audience exposed to the message more than once

• Unduplicated reach: total number of unique individuals exposed at least once

Q: Gross Rating Points

A: measure total audience exposure to an advertising schedule

= reach x frequency

Q: Effective Reach

A: refers to the percentage of the audience reached at or above a minimum effective frequency level, not just exposed once

Q: Factors That Determine Frequency Levels

A: 1. Market Factors 2. Message Factors 3. Media Factors

Q: Creative Aspects & Mood

A: Media choices help create a mood or image for the brand.
Some media enhance:

• Prestige

• Excitement

• Trust

• Seriousness

Thus, media selection must support the creative strategy and tone of the message

Q: Flexibility in media planning allows planners to respond to:

A: Market opportunities (e.g., new media like the Internet)

1. Market threats

2. Availability of media (e.g., sold-out time slots)

3. Changes in media or media vehicles

Q: Cost per Thousand

A: Used primarily for print and digital media to compare efficiency = (Cost of ad space / circulation) x 1000

Q: Cost Per Rating Point (CPRP)

A: Used primarily for broadcast media to assess cost efficiency = Cost of commercial time/program rating

Q: Advantages of television ads

• Combines sight, sound, and motion

• High reach and frequency

• Strong impact and attention

• Effective for brand image building

Q: What are the major disadvantages of television advertising?

A: High costs, clutter, fleeting messages, limited selectivity.

Q: Advantages and disadvantages of Direct mail

A: Advantages

• High selectivity

• Personalization

• Flexible format

• Easy to measure effectiveness

Disadvantages

• High cost per contact

• Perceived as junk mail

• Requires good database management

• Production costs

Q: Advantages and disadvantages of interactive media

A: Advantages

• Highly targeted

• Interactive

• Immediate response and tracking

• Flexible and customizable

 

Disadvantages

• Clutter

• Ad avoidance (ad blockers)

• Measurement inconsistencies

• Privacy concerns

 

Q: Advantages of Television

A: 1. Creativity & Impact, 2. Coverage & Cost Effectiveness, 3. Captivity & Attention, 4. Selectivity & Flexibility,

Q: Disadvantages of Television

Costs, Lack of Selectivity, Fleeting Message, Clutter, Limited Viewer Attention, Distrust & Negative Evaluation

Q: What Is a Network?

A: a group of television stations that are linked together to distribute programming from a central source to a national audience.

• provide programs to many stations at the same time

• Advertisers can buy time on a network to reach a large, national audience

• Examples: ABC, CBS, NBC, FOX

Key idea: allows advertisers to achieve broad reach and efficiency by advertising across many markets simultaneously.

Q: What Is an Affiliate?

A: a local television station that is contractually connected to a network.

• Affiliates air network programming during designated time slots

• They also sell local advertising time

• Affiliates allow advertisers to target specific geographic markets

Key idea:
give advertisers local market access, while networks provide national coverage.

 

Q: up front market

A: buying time before a show begins/can be risky; show could flop, but can get lower prices, cancellation options

Q: scatter market

A: runs through TV season, can regionalize buys

Q: What is zipping?

A: Fast-forwarding through commercials.

Q: What is zapping?

A: Changing channels to avoid commercials.

Q: What is network advertising?

A: Buying advertising time through a national TV network to reach a broad audience.

Q: What is spot advertising?

A: Commercials placed on local television stations.

Q: syndicated programs

A: shows that are sold or distributed on a station-to-station, market by market basis

 

Q: off-network syndication

A: reruns of network shows that are bought by individual stations or networks

      (examples: Seinfeld, Roseanne, Simpsons)

  -provide quality programming to local stations with an established audiences

  -producers recoup their money when programs syndicate (need 88 shows to do it)

Q: first-run syndication

A: shows produced specifically for the syndication market

     -Star Trek: Voyager, Maury Povich, Oprah Winfrey,  Jerry Springer,  Xena: Warrior Princess

Q: Barter syndication

A: practice of selling shows to stations in return for a portion of the commercial time in

      the shows rather than or in addition to cash. Commercial time from all stations carrying the show is packaged into national units & sold to national advertisers. The station sells the remaining time to local & spot advertisers. Both off-network & first run syndication are offered this way. Local stations get free programming.

 

national advertisers use syndication to broaden their reach, save money, & target certain audiences

Q: disadvantages of barter syndication

A: syndicated programs have more commercials in them; therefore, more clutter

                         audience members tend to be older & rural (don't spend bucks)

                         show up in undesirable timeslots; media buyers must check each market carefully

 

Q: Sponsorships

A: advertiser assumes responsibility for the production/content of the show & advertising

 

P&G: soap operas such as As the World Turns, Another World

Hallmark: Hallmark Hall of Fame

Ford: commercial free- version of Schindler's List

Q: What are methods of buying time

A: sponsorships, participations, spot announcements

Q: Participations

A: most programs sold this way; several advertisers buy time on a particular program

Advantages: advertiser ISN'T tied to the program, can adjust the buy

                     budget can be spread over several programs

Disadvantages: advertiser has no control over the placement of the ad in the program

 

Q: Spot Announcements

A: generally appear during time periods adjacent to network programs rather than within them (the term adjacencies) bought by local and a few national advertisers

 

Q: What are dayparts, and why are they important?

A: Segments of the broadcast day that attract different demographics.