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Exam 16: Advertising and Public Relations

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Question 61

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The effectiveness of a public relations program is usually measured in terms of sales.

A) True
B) False

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Question 62

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Small firms generally depend on local newspapers and radio stations for assistance with advertising efforts.

A) True
B) False

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Question 63

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The last stage in the development of any advertising campaign is:

When sales go up, advertising should be increased; when sales decline, advertising should be decreased.

Publicity is a subset or part of public relations.

Scenario 18.1 Use the following to answer the questions. The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of advertising to communicate its messages. Toyota will likely advertise its new vehicle, the Venza, on TV, on its website, in major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs. -Refer to Scenario 18.1. The advertising mentioned above in which Toyota features all brands of the company would be an example of .

An effective approach for dealing with potential unfavorable public relations resulting from a negative event is to discourage news coverage.

The advertising department for the Pennzoil Corporation is working on a print advertisement for a new product. At this point, the layout contains a phrase to attract attention, an additional phrase to provide an explanation, an illustration to show the product, and a paragraph to explain the advantages and benefits of the product. What other important element should be included?

Discuss four publicity-based public relations tools.

Scenario 18.2 Use the following to answer the questions. The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance Company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves over 1.9 million bank accounts. -Refer to Scenario 18.2. When deciding on its advertising allocation for the coming year, State Farm Insurance could choose to spend the same amount as Safe Auto, another auto insurance company, or it could allocate an amount that is 10% of last year's premiums. If State Farm uses the same amount as Safe Auto, this method of advertising appropriation is known as the approach; if State Farm uses the amount based on last year's premiums, the method would be .

What steps should an organization take to be able to deal effectively with negative public relations?

A major way to reduce unfavorable public relations is to reduce the number of negative events.

The public relations department at Lowe's Home Improvement submits one page of typewritten copy to national newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks event. This is an example of a .

The first stage in the development of any advertising campaign is:

The cost per thousand impressions (CPM) indicator shows:

If a company is perceived positively by the public, employee morale is often higher.

The design element of an advertisement is used to attract attention, communicate an idea quickly, or communicate ideas that are difficult to put into words; the is the physical arrangement of the illustration, headline, subheadline, body copy, and the signature.

What are the advantages of using an advertising agency to develop an advertising campaign?

The primary goal of a media planner is to:

A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n) .