Marketing Final Exam

By a marketer there are two reasons why new brands

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: why new brands with small market share tend to spend proportionately more for advertising and sales promotion than those with a large market share. ANS: Advertising is impersonal, one-way mass communication about a product or organization that is paid for by a marketer. There are two reasons why new brands with smaller market share tend to spend proportionately more on advertising that those with a larger market share: (1) beyond a certain level of spending for advertising and sales promotion, diminishing returns set in––that is, sales or market share begins to decrease no matter how much is spent on advertising and sales promotion, a phenomenon called the advertising response function; and (2) a certain minimum level of exposure is needed to measurably affect purchase habits. PTS: 1 REF: 265-266 Communication KEY: CB&E Model Promotion OBJ: 17-1 TOP: AACSB MSC: BLOOMS Synthesis 2. Name and briefly define the two major types of advertising. ANS: INSTITUTIONAL ADVERTISING is used when the goal of the campaign is to build up the image of the company. Institutional advertising promotes the corporation as a whole and is designed to establish, change, or maintain the corporation’s identity. Advocacy advertising is a special form of institutional advertising that allows corporations to express viewpoints on controversial issues. PRODUCT ADVERTISING touts the benefits of a specific product or service. Product advertising can take three forms: pioneer advertising, competitive advertising, and comparative advertising. PTS: 1 REF: 267 Communication KEY: CB&E Model Promotion OBJ: 17-2 TOP: AACSB MSC: BLOOMS Synthesis 3. What is institutional advertising? How does advocacy advertising differ from institutional advertising? ANS: Institutional advertising is used when the goal of the campaign is to build up the image of the company rather than promote a specific product. Advocacy advertising is a special form of institutional advertising that allows corporations to express viewpoints on controversial issues. Most advocacy campaigns react to criticism or media attacks. Other campaigns may attempt to ward off impending regulatory threats, damaging legislation, or an unfavorable outcome in a lawsuit. PTS: 1 REF: 267 Communication KEY: CB&E Model Promotion OBJ: 17-2 TOP: AACSB MSC: BLOOMS Synthesis 4. Name and briefly define three forms of product advertising. ANS: Product advertising touts the benefits of a specific product or service. Product advertising can take three forms: pioneer advertising, competitive advertising, or comparative advertising. PIONEER ADVERTISING is intended to stimulate primary demand for a new product or product category. It is used during the introductory stage of the product life cycle to offer information about the benefits of the product class. COMPETITIVE ADVERTISING is used to influence demand for a specific brand. This advertising emphasizes the building of brand name recall and favorable brand attitudes. Firms use t...
View Full Document

This document was uploaded on 09/29/2013.

Ask a homework question - tutors are online