G.A.M Chapter 7

Advertising & IMC: Principles and Practice, 9e (Moriarty)

Advertising & IMC: Principles and Practice, 9e (Moriarty)

Chapter 7 Strategic Planning

1) ________ is the process of identifying a problem, determining objectives, deciding upon strategies, and implementing tactics.

A) Insight mining

B) Situation analysis

C) Strategic research

D) Strategic planning

E) Marketing research

Answer: D

Diff: 1 Page Ref: 190

Skill: Concept

Objective: 7-1

2) ________ are goals to be accomplished with a strategic plan.

A) Strategies

B) Objectives

C) Tactics

D) Motives

E) Needs

Answer: B


Skill: Concept

Objective: 7-1

3) ________ are concerned with how to accomplish objectives outlined in a strategic plan.

A) Strategies

B) Needs

C) Tactics

D) Motives

E) Insights

Answer: A


Skill: Concept

Objective: 7-1

4) ________ are the actions that make the strategic plan come to life.

A) Strategies

B) Objectives

C) Tactics

D) Motives

E) Insights

Answer: C


Skill: Concept

Objective: 7-1

5) Strategic planning is a three-tiered process that starts with the ________.

A) marketing plan

B) initial investment

C) business plan

D) advertising plan

E) SWOT analysis

Answer: C


Skill: Concept

Objective: 7-1

6) A strategic business unit is ________.

A) a line of products

B) all of the offerings under a single brand name

C) a functional department of a company

D) both A and B

E) all of the above

Answer: D


Skill: Concept

Objective: 7-1

7) Which concept is a measurement that shows whether, in general, the costs of conducting the business are more than matched by the revenue produced in return?

A) SWOT

B) SBU

C) IMC

D) the 4 Ps

E) ROI

Answer: E


Skill: Concept

Objective: 7-1

8) The objectives for planning at the ________ level tend to focus on maximizing profit and return on investment.

A) advertising planning

B) IMC planning

C) marketing planning

D) tactical planning

E) business planning

Answer: E


Skill: Concept

Objective: 7-1

9) For most organizations, strategic planning starts with ________.

A) formulating a business mission statement

B) identifying the target market

C) determining the required return-on-investment

D) conducting an internal and external environment analysis

E) creating the marketing mix

Answer: A


Skill: Concept

Objective: 7-1

10) A(n) ________ assesses the external and internal environments that affect marketing operations.

A) market situation analysis

B) point-in-time analysis

C) strategic business unit analysis

D) mission statement

E) action plan

Answer: A


Skill: Concept

Objective: 7-1

11) Adam is assisting in the development of his company's marketing plan, and he has been assigned to assess the external and internal environments that affect the marketing operations. He will be looking at the company's history, products, and brands, as well as the competitive environment, consumer trends, and other marketplace trends that affect the product category. What type of analysis is Adam conducting?

A) business analysis

B) competitive analysis

C) internal/external analysis

D) market situation analysis

E) category analysis

Answer: D


Skill: Concept

Objective: 7-1

12) The percentage of the category purchases that are made by the brand's customers is known as ________.

A) customer equity

B) return-on-investment

C) share of market

D) share of voice

E) customer value

Answer: C


Skill: Concept

Objective: 7-1

13) What is the most important part of the marketing plan for advertising managers?

A) business objectives

B) business mission statement

C) marketing mix strategy

D) evaluation and control

E) situation analysis

Answer: C


Skill: Concept

Objective: 7-1

14) A(n) ________ plan is more tightly focused on solving a particular marketing communication problem than an annual marketing plan is.

A) business

B) IMC

C) corporate

D) campaign

E) strategic

Answer: D


Skill: Concept

Objective: 7-2

15) The practice of ________ involves mobilizing a digital crowd to provide collective intelligence in the marketing analysis process.

A) SWOT analysis

B) tactical formulation

C) insight mining

D) crowdsourcing

E) synergy

Answer: D


Skill: Concept

AACSB: Use of information technology

Objective: 7-2

16) In which section of a typical campaign plan are media objectives, media selection, media budget allocations, and media scheduling determined?

A) situation analysis

B) key strategic decisions

C) media strategy

D) message strategy

E) campaign management

Answer: C


Skill: Concept

Objective: 7-2

17) In which section of a typical campaign plan are the advertising objectives, the target audience, and the brand position specified?



C) media strategy

D) message strategy


Answer: B


Skill: Concept

Objective: 7-2

18) In which section of a typical campaign plan are key consumer insights, the selling premise, and the big idea detailed?



C) media strategy

D) message strategy


Answer: D


Skill: Concept

Objective: 7-2

19) Which step of campaign planning details the process by which the effectiveness of the campaign is determined?



C) media strategy

D) message strategy


Answer: E


Skill: Concept

Objective: 7-2

20) In a SWOT analysis, strengths and weaknesses are ________, and opportunities and threats are ________.

A) primary; secondary

B) internal; external

C) secondary; primary

D) external; internal

E) long-term; short-term

Answer: B


Skill: Concept

Objective: 7-2

21) In a SWOT analysis, a(n) ________ is an area in which the company could develop an advantage over its competition.

A) win

B) weakness

C) opportunity

D) threat

E) leverage

Answer: C


Skill: Concept

Objective: 7-2

22) In a SWOT analysis, a(n) ________ is a positive trait or condition.

A) strength

B) win

C) opportunity

D) threat

E) leverage

Answer: A


Skill: Concept

Objective: 7-2

23) In a SWOT analysis, a(n) ________ is a trend or development in the environment that will erode business unless the company takes action.

A) strength

B) weakness

C) opportunity

D) threat

E) leverage

Answer: D


Skill: Concept

Objective: 7-2

24) In a SWOT analysis, a(n) ________ of a business is a trait, condition, or situation that is perceived as negative.

A) strength

B) weakness

C) opportunity

D) threat

E) leverage

Answer: B


Skill: Concept

Objective: 7-2

25) What kind of problems can advertising solve?

A) quality

B) price

C) perception

D) availability

E) all of the above

Answer: C


Skill: Concept

Objective: 7-2

26) Which of the following is the most accurate statement about brand loyalty?

A) To create brand loyalty, an advertising campaign must have both cognitive and rational effects.

B) To create brand loyalty, an advertising campaign must have both cognitive and affective effects.

C) To create brand loyalty, an advertising campaign must have both affective and emotional effects.

D) To create brand loyalty, an advertising campaign must have both perceptive and associative effects.

E) To create brand loyalty, an advertising campaign must have both perceptive and emotional effects.

Answer: B


Skill: Concept

Objective: 7-2

27) Which type of advertising objective is most closely associated with the Facets Model of Effects category of perception?

A) cue the psychological appeal

B) create awareness

C) stimulate desire

D) stimulate trial

E) connect to positive brand experiences

Answer: B


Skill: Concept

Objective: 7-2

28) Which type of advertising objective is most closely associated with the Facets Model of Effects category of emotion?


B) create awareness

C) stimulate desire

D) establish the brand position


Answer: A


Skill: Concept

Objective: 7-2

29) Which type of advertising objective is most closely associated with the Facets Model of Effects category of cognition?


B) create awareness

C) stimulate desire

D) establish the brand position


Answer: D


Skill: Concept

Objective: 7-2

30) To ________ an objective, a planner uses a comparable effort, such as a similar product or prior brand campaign, to predict a logical goal.

A) target

B) differentiate

C) segment

D) position

E) benchmark

Answer: E


Skill: Concept

Objective: 7-2

31) Which of the following is NOT a requirement for a measurable objective?

A) a specific effect that can be measured

B) a time frame

C) a baseline

D) percentage change

E) a hypothesis

Answer: E


Skill: Concept

Objective: 7-2

32) Establishing in the consumer's mind what a brand offers and how it compares with the competition is ________.

A) benchmarking

B) targeting

C) segmenting

D) positioning

E) attributing

Answer: D


Skill: Concept

Objective: 7-2

33) Which of the following is a tangible product feature?

A) quality

B) status

C) value

D) ease of use

E) fashion

Answer: D


Skill: Concept

Objective: 7-2

34) Which strategy is designed to focus attention on product differences that are important to consumers and that distinguish the company's product from its competitors?

A) product differentiation

B) segmentation

C) feature analysis

D) benchmarking

E) targeting

Answer: A


Skill: Concept

Objective: 7-2

35) Products that really are the same, such as milk, unleaded gas, and over-the-counter drugs, are referred to as ________ products.

A) generic

B) differentiated

C) parity

D) unpositioned

E) positioned

Answer: C


Skill: Concept

Objective: 7-2

36) Which type of analysis involves making a chart of a company's product and competitors' products, listing each product's relevant features, evaluating how well the product and the competitors' products perform on that feature, and then evaluating how important each feature is to the target audience?


B) segmentation analysis

C) feature analysis

D) differential analysis

E) market situation analysis

Answer: C


Skill: Concept

Objective: 7-2

37) ________ is found where the product has a strong feature in an area that is important to the target and the competition is weaker.

A) Position

B) Competitive advantage

C) Differentiation

D) Segmentation

E) Brand equity

Answer: B


Skill: Concept

Objective: 7-2

38) What do planners use to compare positions of competitors?

A) brand matrix

B) situation matrix

C) differential map

D) perceptual map

E) SWOT map

Answer: D


Skill: Concept

Objective: 7-2

39) Advertising shapes the position of a brand, but what anchors it in target consumers' minds?

A) personal experiences

B) price

C) distribution

D) publicity

E) sales promotions

Answer: A


Skill: Concept

AACSB: Communication abilities

Objective: 7-2

40) As described in "A Matter of Principle," what objective did 7-Up have when it wanted to reposition its product in 1967?

A) to pick up the green 7-Up bottle in consumers' minds and move it to where Pepsi and Coke are

B) to penetrate the British consumer market

C) to change the perception that 7-Up was too expensive

D) to change the perception that 7-Up was unhealthy

E) to capture a large share of the family market soft drink expenditures

Answer: A


Skill: Concept

Objective: 7-1

41) ________ use reasons to persuade consumers whereas ________ build an image for a brand and touch consumers' emotions.

A) Hard-sell approaches; soft-sell approaches

B) Soft-sell approaches; hard-sell approaches

C) Benefit position approaches; usage approaches

D) Category approaches; competitors' approaches

E) Usage approaches; benefit approaches

Answer: A


Skill: Concept

Objective: 7-1

42) Which of the following refers to the amount customers spend on a brand?

A) return on investment

B) share of wallet

C) share of mind

D) value position

E) share of voice

Answer: B


Skill: Concept

Objective: 7-1

43) Which of the following is NOT a common advertising budgeting method?

A) historical method

B) objective-task method

C) consumer insight method

D) percentage-of-sales method

E) all you can afford

Answer: C


Skill: Concept

Objective: 7-2

44) Which advertising budgeting method simply bases the annual budget on last year's budget, with a percentage increase for inflation or some other marketplace factor?



C) competitive budgets



Answer: A


Skill: Concept

Objective: 7-2

45) Which advertising budgeting method involves developing the budget from the ground up, with objectives as the starting point?






Answer: B


Skill: Concept

Objective: 7-2

46) Which advertising budgeting method compares the total sales with the total advertising budget during the previous year or the average of several years to compute a percentage?






Answer: D


Skill: Concept

Objective: 7-2

47) Which advertising budgeting method uses competitors' budgets as benchmarks and relates the amount invested in advertising to the product's share of market?


B) benchmarking method



E) comparative budgets

Answer: C


Skill: Concept

Objective: 7-2

48) Which concept represents the advertiser's media presence?

A) share of advertising voice

B) share of mind

C) market share

D) competitive share

E) percent of sales

Answer: A


Skill: Concept

Objective: 7-2

49) ________ is the research-and-analysis process used to gain knowledge and understanding of the consumer that is expressed as a key consumer insight into how people relate to a brand or product.

A) Account planning

B) Advertising planning

C) Consumer planning

D) Message planning

E) Media planning

Answer: A


Skill: Concept

Objective: 7-3

50) In an advertising agency, who is responsible for researching a brand and its customer relationships in order to devise advertising message strategies that are effective in addressing consumer needs and wants?

A) account manager

B) account planner

C) media director

D) creative director

E) research director

Answer: B


Skill: Concept

Objective: 7-3

51) Who in an advertising agency is most accurately described as "speaking for the consumer" or "speaking with the voice of the consumer"?

A) account manager

B) account planner

C) media director

D) creative director

E) research director

Answer: B


Skill: Concept

Objective: 7-3

52) Which of the following is NOT typically a responsibility of an account planner?

A) understanding the meaning of the brand

B) articulating communication strategies

C) evaluating the effectiveness of the communication in terms of how the target reacts to it

D) preparing creative briefs based on an understanding of the consumer and the brand

E) deciding the pricing strategy of the brand

Answer: E


Skill: Concept

Objective: 7-3

53) What is at the core of all account planning?

A) consumer research

B) pricing plans

C) hard-sell approaches

D) soft-sell approaches

E) distribution management

Answer: A


Skill: Concept

Objective: 7-3

54) Which of the following tasks of an account planner has been described as "peering into nooks and crannies without losing sight of the big picture in order to identify a key insight that can transform a client's business"?

A) big idea generating

B) critical thinking

C) creative thinking

D) insight mining

E) insight communicating

Answer: D


Skill: Concept

Objective: 7-3

55) The outcome of strategic research usually reaches agency creative departments in the form of a strategy document called a ________.

A) communication brief

B) situation analysis

C) business plan

D) marketing plan

E) competitive brief

Answer: A


Skill: Concept

Objective: 7-3

56) Which of the following explains the consumer insight and summarizes the basic strategy decisions?

A) creative brief

B) research brief

C) business plan

D) IMC plan

E) competitive brief

Answer: A


Skill: Concept

Objective: 7-3

57) Which of the following is NOT included in a communication brief?

A) proposition or selling idea

B) problem

C) target audience

D) brand imperatives

E) sales force objectives

Answer: E

Diff: 2 Page Ref: 214-215

Skill: Concept

Objective: 7-3

58) Which component of a communication brief details the brand's essence, personality, and image?

A) communication objectives

B) problem

C) target audience

D) brand imperatives

E) support

Answer: D


Skill: Concept

Objective: 7-3

59) Which component of a communication brief states the single-minded thought that the communication will bring to life in a provocative way?

A) communication objective

B) consumer insight

C) creative direction

D) brand imperative

E) proposition or selling idea

Answer: E


Skill: Concept

Objective: 7-3

60) Which component of a communication brief provides the reason to believe the proposition?

A) brand position

B) support

C) creative direction

D) brand imperative

E) proposition or selling idea

Answer: B


Skill: Concept

Objective: 7-3

61) Which of the following most accurately states the difference between an advertising plan and an IMC plan?

A) the time frame of the plan

B) the amount of research conducted to develop the plan

C) the scope of the plan and the variety of marketing communication areas involved in the effort

D) the formality of the plan

E) the message

Answer: C


Skill: Concept

Objective: 7-4

62) Which of the following does NOT represent an area where an IMC plan is different from an advertising plan?

A) stakeholders

B) time frame

C) contact points

D) objectives

E) internal marketing

Answer: B


Skill: Concept

Objective: 7-4

63) ________ refers to any group of people who have a stake in the success of a company or a brand.

A) Shareholder

B) Stakeholder

C) Contact point

D) Target group

E) Market segment

Answer: B


Skill: Concept

Objective: 7-4

64) Typical objectives for which marketing communication area include increasing sales, attracting attention at selection point, delivering product information, and creating a brand reminder?

A) public relations

B) direct marketing

C) packaging

D) specialties

E) sponsorship

Answer: C


Skill: Concept

Objective: 7-4

65) Which of the following is NOT a typical objective for public relations?

A) encourage repeat purchase

B) announce news

C) affect attitudes and opinions

D) maximize credibility and likeability

E) create and improve stakeholder relationships

Answer: A


Skill: Concept

Objective: 7-4

66) Which of the following is a typical objective of consumer sales promotion?

A) announce news

B) build industry acceptance

C) push through the channel

D) create pull through the channel

E) create brand experience

Answer: D


Skill: Concept

Objective: 7-4

67) Support from employees for marketing, advertising, and marketing communication programs is managed through an activity called ________.

A) public relations

B) community building

C) internal marketing

D) internal targeting

E) service management

Answer: C


Skill: Concept

Objective: 7-4

68) Employees, customers, shareholders, and elected officials are all examples of a company's ________.

A) communities

B) segments

C) partners

D) stakeholders

E) investors

Answer: D


Skill: Concept

Objective: 7-4

69) ________ are all the ways and places where a person can come into contact with a brand.

A) Target points

B) Contact points

C) IMC points

D) Brand experiences

E) Brand images

Answer: B


Skill: Concept

Objective: 7-4

70) According to the concept of ________, messages should vary with the interest of the stakeholder but the brand strategy should remain the same.

A) segmentation

B) competitive advantage

C) strategic consistency

D) brand personality

E) psychological positioning

Answer: C


Skill: Concept


Objective: 7-4

71) Market planning is the process of determining objectives, deciding on strategies, and implementing the tactics to occur within a specified time frame.

Answer: FALSE


Skill: Concept

Objective: 7-1

72) Marketing planning follows business planning.

Answer: TRUE


Skill: Concept

Objective: 7-1

73) A business plan may cover a specific division of the company or a strategic business unit.

Answer: TRUE


Skill: Concept

Objective: 7-1

74) A business mission statement should be a concise expression of the broad goals and policies of the business unit.

Answer: TRUE


Skill: Concept

Objective: 7-1

75) A market situation analysis assesses the external and internal environments that affect the marketing operations.

Answer: TRUE


Skill: Concept

Objective: 7-1

76) The objectives at the marketing level tend to be focused on return-on-investment.

Answer: FALSE


Skill: Concept

Objective: 7-1

77) The marketing mix strategy includes decisions about the target market, brand position, product design and performance, pricing, distribution, and marketing communication.

Answer: TRUE


Skill: Concept

Objective: 7-1

78) A typical advertising or IMC plan includes a situation analysis, key strategic decisions, media strategy, message strategy, and campaign management.

Answer: TRUE


Skill: Concept

Objective: 7-2

79) The situation analysis of a typical advertising or IMC plan includes background research, a SWOT analysis, and key advertising problems to be solved.

Answer: TRUE


Skill: Concept

Objective: 7-2

80) Key strategic decisions in a typical advertising plan include media objectives, media vehicle selection and budget allocation, media scheduling, and key consumer insight development.

Answer: FALSE


Skill: Concept

Objective: 7-2

81) In strategic planning, the idea is to leverage the strengths and opportunities and to avoid the weaknesses and threats.

Answer: FALSE


Skill: Concept


Objective: 7-2

82) Advertising planners must analyze the market situation for any communication problems that affect the successful marketing of a product, as well as opportunities that advertising can create or exploit.

Answer: TRUE


Skill: Concept


Objective: 7-2

83) Advertising can affect the way consumers perceive price, availability, and quality, but it cannot solve problems related to the price of the product, availability, or quality.

Answer: TRUE


Skill: Concept


Objective: 7-2

84) The advertiser's basic assumption is that advertising works if it creates an impression, influences people to respond, and separates the brand from the competition.

Answer: TRUE


Skill: Concept


Objective: 7-2

85) Benchmarking refers to using a comparable effort to predict a logical goal.

Answer: TRUE


Skill: Concept

Objective: 7-2

86) The first step in crafting a position is to identify the importance and performance of your brand to determine competitive advantage.

Answer: FALSE


Skill: Concept

Objective: 7-2

87) A position is a location in a consumer's mind where the product or brand is placed relative to its competitors on the basis of the key factors the consumer uses to make a decision.

Answer: TRUE


Skill: Concept

Objective: 7-2

88) The historical method of advertising budgeting compares the total sales with the total advertising budget during the previous year or the average of several years to compute a percentage.

Answer: FALSE


Skill: Concept

Objective: 7-2

89) Companies using the all-you-can-afford method of advertising budgeting do not value advertising as a strategic imperative.

Answer: TRUE


Skill: Concept

Objective: 7-2

90) An advertiser's "share of voice" is determined by comparing the amount spent on advertising to the advertiser's sales.

Answer: FALSE


Skill: Concept

Objective: 7-2

91) Account planning is the research-and-analysis process used to gain knowledge and understanding of the consumer, which is expressed as a key consumer insight into how people relate to a brand or product.

Answer: TRUE


Skill: Concept

Objective: 7-3

92) The account planner is the voice of the consumer.

Answer: TRUE


Skill: Concept

Objective: 7-3

93) The outcome of strategic research usually reaches agency creative departments in the form of a strategy document called a message brief.

Answer: FALSE


Skill: Concept

Objective: 7-3

94) Under the brand position section of a communication brief, the brand essence, brand personality, and image are described.

Answer: FALSE


Skill: Concept

Objective: 7-3

95) The proposition or selling idea component of a communication brief describes the single thought that the communication will bring to life in a provocative way.

Answer: TRUE


Skill: Concept


Objective: 7-3

96) A communication brief should be both strategic and inspirational.

Answer: TRUE


Skill: Concept


Objective: 7-3

97) Typical objectives for public relations include announcing news, affecting attitudes and opinions, maximizing credibility and likeability, and creating and improving stakeholder relationships.

Answer: TRUE


Skill: Concept


Objective: 7-4

98) Typical objectives for point-of-purchase displays are to increase immediate sales, attract attention at the decision point, create interest, stimulate urgency, and encourage trial and impulse purchasing.

Answer: TRUE


Skill: Concept


Objective: 7-4

99) Employees, investors, government bodies, and business partners are examples of corporate level stakeholders.

Answer: TRUE


Skill: Concept

Objective: 7-4

100) Synergistic points are all the ways and places where a person can come into contact with a brand.

Answer: FALSE


Skill: Concept


Objective: 7-4

101) For advertising to be truly effective, it must focus on only one effect at a time.

Answer: FALSE


Skill: Critical Thinking

AACSB: Reflective thinking skills

Objective: 7-2

102) A manager's decision to run a quarter-page ad in the business section of the local newspaper to promote goodwill toward his company is part of a campaign plan.

Answer: TRUE


Skill: Application

AACSB: Analytic skills

Objective: 7-2

103) Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called targeting.

Answer: FALSE


Skill: Application


Objective: 7-2

104) A product must be differentiated on tangible differences in order to create long-lasting product differentiation.

Answer: FALSE


Skill: Application


Objective: 7-2

105) Positioning represents one of advertising's most critical tasks.

Answer: TRUE




Objective: 7-2

106) Compare and contrast a business plan, a marketing plan, and an advertising plan.

Answer: Strategic planning is a three-tiered process that starts with the business plan, then moves to functional areas of the company such as marketing where a marketing plan is developed that outlines objectives, strategies, and tactics for all areas of the marketing mix. Both the business plan and the marketing plan contribute direction to specific plans for specialist areas, such as advertising and other areas of marketing communication.

A business plan may cover a specific division of the company or a strategic business unit. The objectives for planning at this level tend to focus on maximizing profit and ROI. To a large extent, the marketing plan parallels the business strategic plan and contains many of the same components. Finally, the advertising planning operates with the same concern for objectives, strategies, and tactics that are outlined for business and marketing plans.


Skill: Synthesis


Objective: 7-1

107) Describe the components and purpose of a SWOT analysis.

Answer: The primary tool used to make sense of information in a situation analysis is a SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. The strengths and weakness are internally focused, and the opportunities and threats lie in the external marketing environment. In strategic planning, the idea is to leverage the strengths and opportunities and address the weaknesses and threats, which is how the key problems and opportunities are identified. More specifically, the components of the SWOT analysis are:

(1)Strengthsthe positive traits, conditions, and good situations of the business.

(2)Weaknessesthe traits, conditions, and situations of the business that are perceived as negatives.

(3)Opportunityan area in which the company could develop an advantage over its competition.

(4)Threata trend or development in the environment that will erode business unless the company takes action.


Skill: Synthesis


Objective: 7-2

108) Name and describe the five common advertising budgeting methods.

Answer: The five advertising budgeting methods are:

(1)HistoricalBases a budget on last year's budget, perhaps with a percentage increase for inflation or some other marketplace factor. Though easy, it has little to do with reaching advertising objectives.

(2)Objective-TaskLooks at the objectives for each activity and determines the cost of accomplishing each objective. The advantage of this method is that it develops the budget from the ground up so that objectives are the starting point.

(3)Percentage-of-SalesCompares the total sales with the total advertising budget during the previous year or the average of several years to compute a percentage.

(4)Competitive BudgetsUses competitors' budgets as benchmarks and relates the amount invested in advertising to the product's share of market. This suggests that the advertiser's share-of-advertising voice affects the share of attention the brand will receive, and that, in turn, affects the market share the brand can obtain.

(5)All You Can AffordAllocates whatever is left over to advertising. It's not really a method, but rather a philosophy, and companies using this approach don't value advertising as a strategic imperative.


Skill: Synthesis


Objective: 7-2

109) Define account planning and describe the tasks involved.

Answer: Account planning is the research-and-analysis process used to gain knowledge and understanding of the consumer, understanding that is expressed as a key consumer insight into how people relate to a brand or product. An account planner, then, is a person in an agency who uses this disciplined system to research a brand and its customer relationships in order to devise marketing communication message strategies that are effective in addressing consumer needs and wants. The account planner's tasks involve the following:

(1)Understand the meaning of the brand.

(2)Understand the target audience's relationship to the brand.

(3)Articulate communication strategies.

(4)Prepare creative briefs based on understanding of consumer and brand.

(5)Evaluate the effectiveness of the communication in terms of how the target reacts to it.


Skill: Synthesis


Objective: 7-3

110) Name and describe six of the nine components of a typical communication brief.

Answer: The communication brief includes the following components:

(1)ProblemWhat's the problem that communication can solve?

(2)Target AudienceWho do we want to speak to?

(3)Consumer InsightWhat motivates the target? What are the major truths about the target's relationship to the product category or brand?

(4)Brand ImperativesWhat are the important features? What's the point of competitive advantage? What's the brand's position relative to competition? What are the brand's essence, personality, and image?

(5)Communication ObjectivesWhat do we want customers to do in response to our message?

(6)The Proposition or Selling IdeaWhat is the single thought that the communication will bring to life in a provocative way?

(7)SupportWhat is the reason to believe the proposition?

(8)Creative directionHow can we best stimulate the desired response? How can we best say it?

(9)Media imperativesWhere and when should we say it?


Skill: Synthesis


Objective: 7-4

111) Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and garden products and one that markets booklets. Each business is called a(n) ________.

A) return on investment (ROI)

B) strategic business unit (SBU)

C) integrated media company (IMC)

D) key account

E) business portfolio

Answer: B


Skill: Application


Objective: 7-1

112) The following statement appeared in an organization's business plan: "Quick and Dirty Auto Repair aims to offer high-quality auto repair services and a full range of auto parts, focusing on personalized, convenient, and rapid service." Which part of a business plan does this represent?

A) business objectives

B) business mission

C) marketing objectives

D) corporate tactics

E) business strategy

Answer: B


Skill: Application


Objective: 7-1

113) Harris, the marketing manager at a small sports retail chain, has conducted a marketing analysis. He has investigated the company's internal resources and situational factors, as well as factors and trends in the competitive sports retail chain market. Which of the following has Harris completed?

A) a SWOT analysis

B) a business plan

C) a creative brief

D) a marketing plan

E) a marketing mix

Answer: A


Skill: Application


Objective: 7-2

114) Biopure is a company that manufactures and markets oxygen therapeutics. Its products are Hemopure for human use and Oxyglobin for animal use. Both have been developed as alternatives to red blood cell transfusions. Which of the following would be part of Biopure's internal environment?

A) approval by the U.S. Food and Drug Administration to allow veterinarians to use Oxyglobin

B) the global market for the raw materials needed to make Hemopure and Oxyglobin

C) the patented manufacturing process that Biopure uses to produce Hemopure and Oxyglobin

D) a competitor developing a similar product

E) changes in patent law

Answer: C


Skill: Application


Objective: 7-2

115) Newman's Own is a brand of salad dressing. In 2004, low-carbohydrate dieting became the craze among consumers, with millions attempting to follow a low-carb lifestyle. In print advertising, Newman's Own featured the fact that several of its dressings are low in carbohydrates. In terms of a SWOT analysis, the low-carb diet trend among consumers represents a(n) ________.

A) strength

B) weakness

C) opportunity

D) threat

E) all of the above

Answer: C


Skill: Application


Objective: 7-2

116) Newman's Own is a brand of salad dressings. In 2004, low-carbohydrate dieting became the craze among consumers, with millions attempting to follow a low-carb lifestyle. In print advertising, Newman's Own featured the fact that several of its dressings are low in carbohydrates. In terms of a SWOT analysis, the fact that the brand was low in carbohydrates represents a(n) ________.

A) strength

B) weakness

C) opportunity

D) threat

E) all of the above

Answer: A


Skill: Application


Objective: 7-1

117) In Party People's marketing plan, two of the company goals are "Achieve growth rate in sales of 15% for the year 2012" and "Maintain a gross margin of 40% each month." As indicated by these two examples, an objective should be ________.

A) measurable

B) general

C) creative

D) company-wide

E) set by management

Answer: A


Skill: Application


Objective: 7-2

118) For Hyundai Corporation, customers who care about the price of a car and its operating economy make up one ________.

A) market position

B) market value

C) market segment

D) strategic business unit (SBU)

E) share of mind

Answer: C


Skill: Application


Objective: 7-2

119) Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing else." Statements such as these reflect a firm's ________.

A) brand personality

B) target markets

C) positioning

D) marketing mix

E) brand preference

Answer: C


Skill: Application


Objective: 7-2

120) Toward the end of the fiscal year, the owner of a small company came back from lunch concerned because he had learned that a business targeting the same customers as his was planning on spending $150,000 on advertising. As soon as he arrived at the office, he called his financial manager and said, "I want to budget $150,000 for next year's advertising." Which method of budgeting did the owner want to use?

A) the objective-and-task method

B) the percentage-of-sales method

C) the competitive method

D) the historical method

E) the pull-push method

Answer: C


Skill: Application


Objective: 7-2

121) Delia's is a clothing retailer that targets teenage girls. It runs coordinated promotions for its catalogs, Web site, and retail outlets. It uses the same models in its catalog and in its print ads as well as on its Web site. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all venues. From this information, you can infer that Delia's is using ________.

A) crowdsourcing

B) soft-sell approaches

C) integrated marketing communication

D) hard-sell approaches

E) benchmarking

Answer: C


Skill: Application


Objective: 7-4

122) Harpo Enterprises maintains the Oprah Winfrey show, a Web site, and O magazine. Because Harpo Enterprises practices integrated marketing communications, these different brand contacts all maintain ________ in design and tone.

A) variety

B) feedback

C) consistency

D) creativity

E) convenience

Answer: C


Skill: Application


Objective: 7-4

123) When the makers of a ballpoint pen state they are in the communication equipment business, they are defining their mission too ________.

A) narrowly

B) realistically

C) specifically

D) broadly

E) futuristically

Answer: D




Objective: 7-1

124) Tony developed the following objective for his advertising plan: "Increase market share in the consumer market from 10 percent to 15 percent in one year." What is wrong with this advertising plan objective?

A) It is an objective more appropriate for a marketing plan.

B) It does not have a specific effect that can be measured.

C) The goal is not realistic.

D) It does not include a time frame.

E) It does not provide a percentage change.

Answer: A

Diff: 3 Page Ref: 193, 199



Objective: 7-1

125) Which of the following most accurately identifies a difference between a weakness and a threat in SWOT analysis?

A) A company is more able to change a threat than a weakness.

B) A company is more able to change a weakness than a threat.

C) A company can be more negatively affected by a weakness than by a threat.

D) A company can be more negatively affected by a threat than by a weakness.

E) A company can more easily identify threats than weaknesses.

Answer: B




Objective: 7-1

126) Of the following, it is most important for marketers to develop ________ for their products.

A) preemptive positions

B) unique market positions

C) cross-functional organizations

D) marketing ROI data

E) value positions

Answer: B




Objective: 7-2

Refer to the following scenario to answer the questions below.Susan is working on the advertising plan for her company's shampoo named Silkience. She has conducted a SWOT analysis and learned that her company enjoyed a strong financial position and has good working relations with the resellers of its brands. The primary target customers for this brand are women between the ages of 35 and 50, and demographic analysis indicates that this age demographic will grow in double digits over the next 10 years. Silkience targets women who may be having concerns about graying hair. It is a gentle shampoo that will not wash out color, especially semi-permanent color that women of this age tend to use. However, Susan also learned that the target customers do not perceive her company's brand of shampoo as a brand for them but rather for a younger consumer because previous ads tended to use younger-looking models. There was also nothing in the previous advertising campaigns that really explained the benefits of the brand, such as suggesting that it was gentler for semi-permanent-colored hair.

127) In terms of the SWOT analysis, the fact that the demographic analysis indicated that this age group of women will increase considerably in the next 10 years represents a(n) ________.

A) strength

B) weakness

C) opportunity

D) threat

E) win

Answer: C


Skill: Application


Objective: 7-2

128) Silkience's place in consumers' minds among other brands targeted to younger women represents Silkience's ________.

A) position

B) competitive advantage

C) competitive disadvantage

D) target

E) perceptual map

Answer: A


Skill: Application


Objective: 7-2

129) Silkience really is different from other shampoos because it is so gentle that it does not fade semi-permanent hair color, allowing a woman to go for a longer period time before having to color her hair again. What does this product attribute represent?

A) opportunity

B) product differentiation

C) brand position

D) brand target

E) brand imperative

Answer: B


Skill: Application


Objective: 7-2

130) To determine the advertising budget, Susan divided last year's advertising expenditures by last year's sales and then multiplied that by this year's sales forecast. Which advertising budgeting method did Susan use?



C) percentage-of-sales method

D) all-you-can-afford method

E) competitive budgeting method

Answer: C


Skill: Application


Objective: 7-2

131) Distinguish between strategic planning, strategies, and tactics.

Answer: Strategic planning is the process of determining objectives (what you want to accomplish), deciding on strategies (how to accomplish the objectives), and implementing the tactics (which make the plan come to life).


Skill: Synthesis


Objective: 7-1

132) Sarah is trying to think of ways to better define the marketing problem she is facing. List three "What's going on?" type questions that might be helpful to Sarah in defining the marketing problem.

Answer: Students can give any three of the following:

(1)What is happening with the brand and the category?

(2)How is it happening?

(3)Where is it happening?

(4)When is it happening?

(5)To whom is it happening?


Skill: Synthesis


Objective: 7-1

133) Eric is an account planner at a major advertising agency. What three elements are at the heart of an advertising plan and represent the decisions Eric is responsible for as the account planner?

Answer: These three elements at the heart of an advertising plan are audience insight, message, and medium.

(1)Audience InsightWhom are you trying to reach and what insight do you have about how they think, feel, and act? How should they respond to your advertising message?

(2)MessageWhat do you say to them? What directions from the consumer research are useful to the creative team?

(3)MediumHow and where will you reach them? What directions from the consumer research are useful to the media team?


Skill: Synthesis


Objective: 7-1

134) Richard is tasked with developing the campaign plan for his family's business. Give a general outline of the major components of this type of plan.

Answer: A typical outline for a campaign plan includes the following: (1) situation analysis, (2) key strategic decisions, (3) media strategy, (4) message strategy, (5) other marcom tools used in support and (6) campaign management.


Skill: Synthesis


Objective: 7-2

135) Tom was given the task of writing the objectives for an advertising plan. Briefly explain the logic of objectives.

Answer: Given the huge amounts of money spent on advertising, it is important for advertisers to know what to expect from a campaign or ad. Objectives are formal statements of the goals of the advertising or other marketing communication. They outline what the message is designed to achieve and how it will be measured.


Skill: Synthesis


Objective: 7-2

136) While working on a campaign plan for a client, Madeleine was given the task of understanding the brand's position within the competitive marketplace. What is a position of a brand?

Answer: A position is a place in consumers' minds where the product or brand stands in comparison to its competitors. A position is usually based on a particular feature or attribute, although it can be psychological or both. The target decision is the starting point because the brand position is determined by how customers see the brand in the marketplace.


Skill: Synthesis


Objective: 7-2

137) Explain the purpose of a perceptual map.

Answer: A perceptual map is used to compare positions of different brands in a product category. The perceptual map plots all of the competitors on a matrix based on the two most important consumer decision factors.


Skill: Synthesis


Objective: 7-2

138) Why is repositioning a difficult task?

Answer: Repositioning involves changing a product's established position, as 7-Up did when it repositioned itself as the "uncola." Repositioning is difficult because it involves changing consumers' entire understanding of a brand.




Objective: 7-2

139) What is the difference between a hard-sell approach and a soft-sell approach?

Answer: A hard-sell approach uses reasons to persuade consumers; a soft-sell approach builds an image for a brand and touches consumers' emotions.




Objective: 7-2

140) Describe how 7-Up, described in "A Matter of Practice," repositioned its brand.

Answer: 7-Up wanted to turn a medicinal product, which was also used as a mixer with whisky, into a soft drink without changing anything about the product or its packaging. In 1967, a soft drink was a cola, and a cola was a soft drink. 7-Up had to find a way to take that green bottle (7-Up), pick it up mentally in consumers' minds, and move it over to where Coke and Pepsi were. And until they did that, anything 7-Up did that smacked of soft-drink advertising was going to be rejected by consumers. The 7-Up advertising team thought of 'Uncola'it did everything they wanted to do. In one word, it did it all. It positioned 7-Up as a cola, yet not a cola. Today, the 7-Up Uncola campaign is regarded as perhaps the classic example of brand positioningand a classic example of how the right brand positioning can lead to marketing magic.


Skill: Synthesis


Objective: 7-2

141) Caroline needs to develop the advertising budget for her marketing group's brand. She wants to use a method that is the best and most defensible. Which method should she use?

Answer: The objective-task method looks at the objectives for each activity and determines the cost of accomplishing each objective. This method's advantage is that it develops the budget from the ground up so that objectives are the starting point, which makes it easier to justify than the other budgeting methods because they are not tied directly to the objectives.




Objective: 7-2

142) You notice that an advertising agency is recruiting on your campus and that one of the job positions they are seeking to fill is "account planner." What should be included in the job description that explains an account planner's tasks?

Answer: The account planner's tasks are as follows:

(1)Understand the meaning of the brand.

(2)Understand the target audience's relationship to the brand.

(3)Articulate communication strategies.

(4)Prepare creative briefs based on understanding of consumer and brand.

(5)Evaluate the effectiveness of the communication in terms of how the target reacts to it.


Skill: Synthesis


Objective: 7-3

143) Explain insight mining and why it is important.

Answer: Insight mining is peering into nooks and crannies without losing sight of the big picture in order to identify a key insight that can transform a client's business. Insight mining is a deep dive into the meaning of a brand looking for major truths. The planner engages in unearthing the relationship (if there is any) that a target audience has with a brand or product and what role that brand plays in their lives. Understanding the brand/consumer relationship is important because account planners are taking on the position of the agency's brand steward.


Skill: Synthesis


Objective: 7-3

144) Jana is an account planner at an advertising agency. She conducts consumer research to gain a better understanding of their clients' brands and their customers. How is the outcome of this strategic research communicated to the creative teams that work on these clients' accounts?

Answer: The outcome of strategic research usually reaches agency creative departments in the form of a strategy document called a communication brief or creative brief, which explains the consumer insight and summarizes the basic strategy decisions (position, targeting, objectives, and brand strategy).


Skill: Application


Objective: 7-3

145) Identify three questions account planners can use to gain useful insights from consumer and market research.

Answer: Students can describe any three of the following:

(1)What is a realistic response objective (perception, knowledge, feelings, attitudes, symbolic meanings, behavior) for this target group?

(2)What are the causes of their lack of response?

(3)What are the barriers to the desired response?

(4)What could motivate them to respond in the desired way?

(5)What is the role of each element in the communication mix to motivate them or remove a barrier?


Skill: Application


Objective: 7-3

146) What is the difference between a stakeholder and a customer?

Answer: Stakeholder is a much broader term. It refers to any group of people who have a stake in the success of a company or a brand, including employees, trade audiences, the local community, general public, opinion leaders, and so on.


Skill: Synthesis


Objective: 7-4

147) What are contact points, and why are they important in IMC programs?

Answer: IMC programs are designed to maximize all the various types of contacts that consumers and other stakeholders might have with a brand. Contact points, also called touch points, are all the ways and places where a person can come into contact with a brand.


Skill: Synthesis


Objective: 7-4

Refer to the following passage to answer the questions below.Bob works at a major advertising agency, and his job entails understanding the meaning of the client's brand and the target audience's relationship to the brand. He must also articulate communication strategies, prepare a creative brief based on an understanding of the consumer and the brand, and finally, evaluate the effectiveness of the communication in terms of how the target reacts to it.

148) What is Bob's function called?

Answer: Bob is an account planner.


Skill: Application


Objective: 7-1

149) What should Bob include in the creative brief that he prepares for the creative department?

Answer: The Creative Brief or Communication Brief Outline includes the problem, target audience, consumer insights, brand imperatives, communication objectives, proposition or selling idea, support, creative direction, and media imperatives.


Skill: Synthesis


Objective: 7-3

150) For one of the agency's clients, Bob is involved in assisting the team in crafting a position by identifying features of the company's brand as well as the competition to determine where the brand has an advantage over its competitors. Name and describe a technique Bob can use to help structure this analysis.

Answer: Bob can use feature analysis. First, he'll need to make a chart of a client's product and competitors' products, listing each product's relevant features. Then he'll evaluate how well the product and the competitors' products perform on that feature. Next, he'll evaluate how important each feature is to the target audience based on primary research.


Skill: Synthesis


Objective: 7-2

40Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

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G.A.M Chapter 7