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
Diff: 1 Page Ref: 190
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
Diff: 2 Page Ref: 191
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
Diff: 2 Page Ref: 191
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
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
Diff: 2 Page Ref: 192
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
Diff: 2 Page Ref: 193
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
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
Diff: 1 Page Ref: 193
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
Diff: 2 Page Ref: 193
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
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
Diff: 2 Page Ref: 194
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?
A) situation analysis
B) key strategic decisions
C) media strategy
D) message strategy
E) campaign management
Answer: B
Diff: 2 Page Ref: 194
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?
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
Diff: 2 Page Ref: 196
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
Diff: 2 Page Ref: 196
Skill: Concept
Objective: 7-2

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

A) strength
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
Diff: 2 Page Ref: 196
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
Diff: 2 Page Ref: 197
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.
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
Diff: 2 Page Ref: 199
Skill: Concept
Objective: 7-2

28) Which type of advertising objective is most closely associated with the Facets Model of
Effects category of emotion?
A) cue the psychological appeal
B) create awareness
C) stimulate desire
D) establish the brand position
E) connect to positive brand experiences
Answer: A
Diff: 2 Page Ref: 199
Skill: Concept
Objective: 7-2

29) Which type of advertising objective is most closely associated with the Facets Model of
Effects category of cognition?
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
Diff: 2 Page Ref: 199
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
Diff: 1 Page Ref: 202
Skill: Concept
Objective: 7-2

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

A) quality
B) status
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
Diff: 2 Page Ref: 202
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?
A) situation analysis
B) segmentation analysis
C) feature analysis
D) differential analysis
E) market situation analysis
Answer: C
Diff: 1 Page Ref: 204
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
Diff: 1 Page Ref: 205
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
Diff: 3 Page Ref: 205
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
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
Diff: 1 Page Ref: 206
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
Diff: 2 Page Ref: 209
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?
A) historical method
B) objective-task method
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?
A) historical method
B) objective-task method
C) competitive budgets
D) percentage-of-sales method
E) all you can afford
Answer: D
Diff: 2 Page Ref: 209
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?
A) historical method
B) benchmarking method
C) competitive budgets
D) percentage-of-sales method
E) comparative budgets
Answer: C
Diff: 2 Page Ref: 209
Skill: Concept
Objective: 7-2

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

A) share of advertising voice
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
Diff: 1 Page Ref: 210
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
Diff: 2 Page Ref: 211
Skill: Concept
Objective: 7-3

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

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
Diff: 2 Page Ref: 213
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
Diff: 1 Page Ref: 214
Skill: Concept
Objective: 7-3

56) Which of the following explains the consumer insight and summarizes the basic strategy
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
Diff: 2 Page Ref: 215
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
Diff: 2 Page Ref: 215
Skill: Concept
Objective: 7-3

60) Which component of a communication brief provides the reason to believe the proposition?
A) brand position
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
Diff: 3 Page Ref: 216-217
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
Diff: 1 Page Ref: 216
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
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
Diff: 3 Page Ref: 216
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
Diff: 2 Page Ref: 217
Skill: Concept
Objective: 7-4

68) Employees, customers, shareholders, and elected officials are all examples of a company's
________.
A) communities
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
Diff: 1 Page Ref: 218
Skill: Concept
AACSB: Communication abilities
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
Diff: 2 Page Ref: 190
Skill: Concept
Objective: 7-1

72) Marketing planning follows business planning.

Answer: TRUE
Diff: 2 Page Ref: 191
Skill: Concept
Objective: 7-1
76) The objectives at the marketing level tend to be focused on return-on-investment.
Answer: FALSE
Diff: 2 Page Ref: 193
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
Diff: 2 Page Ref: 193
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
Diff: 2 Page Ref: 194-196
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
Diff: 2 Page Ref: 194
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
Diff: 2 Page Ref: 197
Skill: Concept
AACSB: Communication abilities
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
Diff: 2 Page Ref: 197
Skill: Concept
AACSB: Communication abilities
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
Diff: 2 Page Ref: 197
Skill: Concept
AACSB: Communication abilities
Objective: 7-2

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

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
Diff: 2 Page Ref: 209
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
Diff: 2 Page Ref: 210
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
Diff: 2 Page Ref: 209
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
94) Under the brand position section of a communication brief, the brand essence, brand
personality, and image are described.
Answer: FALSE
Diff: 3 Page Ref: 215
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
Diff: 2 Page Ref: 215
Skill: Concept
AACSB: Communication abilities
Objective: 7-3

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

Answer: TRUE
Diff: 2 Page Ref: 216
Skill: Concept
AACSB: Communication abilities
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
100) Synergistic points are all the ways and places where a person can come into contact with a
brand.
Answer: FALSE
Diff: 2 Page Ref: 218
Skill: Concept
AACSB: Communication abilities
Objective: 7-4

101) For advertising to be truly effective, it must focus on only one effect at a time.
Answer: FALSE
Diff: 2 Page Ref: 199
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
Diff: 2 Page Ref: 194
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.
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.
Diff: 3 Page Ref: 191-194
Skill: Synthesis
AACSB: Reflective thinking skills
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
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.
Diff: 3 Page Ref: 209-210
Skill: Synthesis
AACSB: Reflective thinking skills
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
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?
Diff: 3 Page Ref: 214-215
Skill: Synthesis
AACSB: Reflective thinking skills
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
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
Diff: 2 Page Ref: 196
Skill: Application
AACSB: Analytic skills
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
Diff: 2 Page Ref: 196
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
Diff: 2 Page Ref: 196
Skill: Application
AACSB: Analytic skills
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
Diff: 2 Page Ref: 199
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
Diff: 2 Page Ref: 202
Skill: Application
AACSB: Analytic skills
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
Diff: 2 Page Ref: 209
Skill: Application
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
Diff: 2 Page Ref: 218
Skill: Application
AACSB: Reflective thinking skills
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
Diff: 2 Page Ref: 192
Skill: Critical Thinking
AACSB: Reflective thinking skills
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
Diff: 3 Page Ref: 196
Skill: Critical Thinking
AACSB: Reflective thinking skills
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
Diff: 2 Page Ref: 202
Skill: Critical Thinking
AACSB: Reflective thinking skills
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
Diff: 2 Page Ref: 196
Skill: Application
AACSB: Analytic skills
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
Diff: 2 Page Ref: 202
Skill: Application
AACSB: Analytic skills
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?
A) historical method
B) objective-task method
C) percentage-of-sales method
D) all-you-can-afford method
E) competitive budgeting method
Answer: C
Diff: 2 Page Ref: 209
Skill: Application
AACSB: Analytic skills
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?
Diff: 2 Page Ref: 193
Skill: Synthesis
AACSB: Reflective thinking skills
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 Insight
they think, feel, and act? How should they respond to your advertising message?
(2)
to the creative team?
(3)
are useful to the media team?
Diff: 3 Page Ref: 194
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.
Diff: 2 Page Ref: 198
Skill: Synthesis
AACSB: Reflective thinking skills
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.
Diff: 2 Page Ref: 202
Skill: Synthesis
AACSB: Reflective thinking skills
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
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.
Diff: 3 Page Ref: 206
Skill: Critical Thinking
AACSB: Reflective thinking skills
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'
wanted to do. In one word, it did it all. It positioned 7-Up as a cola, yet not a cola. Today, the 7-

classic example of how the right brand positioning can lead to marketing magic.
Diff: 3 Page Ref: 206
Skill: Synthesis
AACSB: Reflective thinking skills
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
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.
Diff: 3 Page Ref: 211
Skill: Synthesis
AACSB: Reflective thinking skills
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.
Diff: 2 Page Ref: 213
Skill: Synthesis
AACSB: Reflective thinking skills
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?
Diff: 2 Page Ref: 213
Skill: Application
AACSB: Reflective thinking skills
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.
Diff: 2 Page Ref: 217
Skill: Synthesis
AACSB: Reflective thinking skills
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
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.
Diff: 2 Page Ref: 210
Skill: Application
AACSB: Analytic skills
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.
Diff: 2 Page Ref: 214-215
Skill: Synthesis
AACSB: Reflective thinking skills
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