Pretests are conducted before the advertisements are placed in any medium. They are conducted to determine whether the advertisement communicates the intended message or to select between alternative versions of the advertisement. Methods of pretesting advertising include portfolio tests, jury tests, and theater tests. Posttests occur after an advertisement has been shown to the target audience. The purpose of the posttest is to determine whether it accomplished its intended purpose. Five approaches common in posttests are: aided recall, unaided recall, attitude tests, inquiry tests, and sales tests. The results of posttesting advertising are used to reach decisions about changes in the advertising program. AACSB: Analytical Thinking Blooms: Understand Kerin - Chapter 15 #361 Learning Objective: 15-03 Explain the advantages and disadvantages of alternative advertising media. Level of Difficulty: 2 Medium Topic: Assessing advertising
362. (p. 387) Differentiate among full-service advertising agencies, limited-service advertising agencies, and in- house agencies as to the services provided. Advertising programs can range from completely external to completely internal. (1) The full-service agency provides the most complete range of services, including market research, media selection, copy development, artwork, and production. Agencies that assist a client by both developing and placing advertisements have traditionally charged a commission of 15 percent of media costs. As companies introduced integrated marketing approaches, many advertisers switched from paying commissions to incentive plans based on performance. (2) Limited-service agencies specialize in one aspect of the advertising process such as providing creative services to develop the advertising copy or buying previously un-purchased media space. Limited-service agencies that deal in creative work are compensated by a contractual agreement for the services performed. (3) Finally, in-house agencies made up of the company's own advertising staff may provide full services or a limited range of services. AACSB: Analytical Thinking Blooms: Understand Kerin - Chapter 15 #362 Learning Objective: 15-03 Explain the advantages and disadvantages of alternative advertising media. Level of Difficulty: 2 Medium Topic: Executing the advertising 363. (p. 389) What is the difference between a coupon and a deal? Coupons are sales promotions that offer a discounted price to the consumers. They are typically used to encourage trial among consumers and support among retailers. Deals are short-term price reductions used to increase trial among potential customers or to retaliate against a competitor's actions. The latter is accomplished because customers build up inventory as a result of the deal and, therefore, do not react to competitive actions (a new product introduction, for example).
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- Fall '16
- Denise Peterson