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Name: ________________________ Class: ___________________ Date: __________ ID: A
1
Chapter 16 Be Creative with Advertising
True/False
Indicate whether the statement is true or false.
____ 1. In the United States, total advertising expenditures are about $5 billion a year.
____ 2. Product advertising gives at least one product attribute as a reason for purchasing a product.
____ 3. Almost all advertising is a mix of product and brand advertising.
____ 4. The person in an advertising agency who develops the media plan is called the account planner.
____ 5. The team that actually creates an advertisement is typically made up of an art director and a copywriter.
____ 6. An advertising plan may be for a single advertisement, but it is most often written for an advertising
campaign.
____ 7. The objective of all advertising is the same: to increase sales.
____ 8. A major drawback of the percentage-of-sales method of budgeting for advertising is that the advertising
budget varies directly with sales.
____ 9. The process of deciding what to say in an ad campaign—as well as how to say it—starts with the
creative strategy.
____ 10. One major disadvantage of radio advertisement is its long lead time.
____ 11. Advertising efficiency is measured by the per-reader or per-viewer cost.
____ 12. A product demonstration advertisement shows the product in action.
____ 13. Image advertising makes a claim of superiority over the competition.
____ 14. The effectiveness of an ad cannot be evaluated until after the ad has been run.
____ 15. A large part of regulation actually comes from competing companies, who watch each other closely to
ensure that competitors are not gaining an unfair advantage by making untruthful claims.
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 16. This type of advertising aims to build an image by using common elements to define what a product or
company stands for and to give it a personality in the minds of consumers.
a. company advertising
b. brand advertising
c. product advertising
d. market advertising
____ 17. A detailed listing of where and when ads will run is called a(n)
a. media plan..
b. account plan.
c. portfolio
d. advertising schedule.
____ 18. The person in an advertising agency who is typically responsible for how an ad will look is called the
a. creative director.
b. producer.
c. copywriter.
d. art director.
____ 19. The first step in the process of creating an advertising campaign is to
a. select and schedule the media.
b. set objectives.
c. develop the creative strategy.
d. develop the creative concept.
____ 20. The best method of determining an advertising budget is to base it on
a. the amount of money your competitors spend on advertising.
b. a percentage of past, current, or projected future sales.
c. the objectives to be achieved.
d. whatever money you have left over after all other expenses have been met.
____ 21. All of the following are advantages of television advertising except
a. it reaches large audiences.
b. it has a relatively low total cost.
c. it has emotional impact.
d. it has highly segmented markets.
____ 22. In advertising, the term unit refers to
a. the type of media used, such as TV, radio, or print.
b. the specific vehicle used.
c. the length or size of the advertisement.
d. the programming or publication in which the advertising appears.
____ 23. In the United States, most advertising dollars are spent on
a. magazine ads.
b. radio ads.
c. newspaper ads.
d. television ads.
____ 24. This type of advertisement is supposed to give the audience the feeling that they are watching or
hearing a real event.
a. dramatization
b. testimonial
c. image advertisement
d. competitive advertisement
____ 25. Which two federal agencies oversee all commerce and commercial communications in the United
States?
a. the Federal Bureau of Investigation and the Federal Trade Commission
b. the Federal Trade Commission and the Federal Communications Commission
c. the Better Business Bureau and the National Advertising Review Board
d. the Federal Communications Commission and the Securities and Exchange Commission
Numeric Response
26. Wrecking Ball Remodeling uses the percentage-of-sales approach for its advertising budget. If the company
allocates 5 percent of last year’s sales to advertising, and had sales of $50 million, what will be Wrecking
Ball’s advertising budget?
27. Suppose last year, $11 billion was spent on Internet advertising. If that amount increases by 17 percent this
year, how much will be spent on Internet advertising?
28. The per-reader cost of magazines is expressed as the cost per thousand readers, or CPM. Suppose the total
cost of an ad in a national magazine that reaches 600,000 people is $30,000. Find the CPM for that ad.
29. In a recent year, total advertising expenditures in the United States were $260 billion. Of that, 14 percent
went to advertising agencies. What was the dollar amount spent on ad agencies?
30. Gamers Magazine has a circulation of 50,000 and a pass-along rate of 4.5. What is the reach of an
advertisement run in Gamers Magazine?
Complete each statement.
31. __________ advertising gives the benefits of a specific product or service and relies on rational arguments
why a customer should buy it.
32. Advertising for a company is called __________ advertising.
33. An advertising __________ is a company that specializes in creating advertising.
34. In an advertising agency, the __________ facilitates everything that happens after the client agrees to
develop
an ad or campaign.
35. An advertising __________ is a series of related advertisements with a similar look, feel, and theme that
centers on a specific product, service, or brand.
36. The __________ strategy is how a company positions its brand or product in its advertising.
37. The __________ is the total number of people who see an ad.
38. The number of times a member of the target audience is exposed to the advertising message is the
__________.
39. A product endorsement by a celebrity, knowledgeable professional, or even an everyday person is called
a(n)
__________.
40. __________ research involves collecting data that can be classified into meaningful numerical values.
Short Answer
41. What is a brand?
42. In advertising, what is a focus group?
43. What is an advertising plan? What is specified in an advertising plan?
44. What is a strategic brief and why is it important?
45. Explain the difference between a continuous advertising campaign and a pulsing advertisement campaign.
46. What is lead time?
Essay
47. Discuss the key roles of account executives and account planners.
48. There are four common methods of determining budgets for advertising. Identify and briefly explain each.
49. Define the terms circulation and reach and explain why a magazine’s reach is probably higher than its
circulation.
50. Explain three types of corrective measures that can be imposed on advertisers by the federal government.
Under what circumstances would these measures be imposed? What are such measures intended to
accomplish?