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Chapter 6 – Planning and implementation
TRUE/FALSE
1. Attributes are what consumers hope to receive or avoid when consuming products.
ANS: F PTS: 1 DIF: Moderate TOP: Means–end chaining and laddering
2. An attribute for a brand of automobiles might be engine performance.
ANS: T PTS: 1 DIF: Easy TOP: Means–end chaining and laddering
3. Account managers are involved in tactical decision making and day-to-day contact with brand
managers and other client personnel.
ANS: T PTS: 1 DIF: Moderate TOP: Advertising agency organisation
4. The generic strategy is most appropriate for a company that dominates a product category.
ANS: T PTS: 1 DIF: Easy TOP: Generic strategy
5. In-house advertising operations are usually profitable because a company has control.
ANS: F PTS: 1 DIF: Moderate TOP: The role of the advertising agency
6. An advertiser employs a generic strategy when it makes a claim that could be made by any
company that markets a brand in that product category.
ANS: F PTS: 1 DIF: Moderate TOP: Generic strategy
7. Corporate image advertising involves a company taking a position on a controversial social issue
of public importance ‘in hopes of swaying public opinion’.
ANS: F PTS: 1 DIF: Moderate TOP: Corporate issue (advocacy) advertising
8. Emotional advertising works well for ice-cream.
ANS: T PTS: 1 DIF: Moderate TOP: Emotional strategy
9. The generic strategy consists of an advertiser making a superiority claim based on a unique product
attribute that represents a meaningful and distinctive consumer benefit.
ANS: F PTS: 1 DIF: Moderate TOP: Generic strategy
10. Two distinct forms of corporate advertising are image and product advertising.
ANS: F PTS: 1 DIF: Moderate TOP: Corporate issue (advocacy) advertising
11. The resonance strategy structures an advertising campaign to pattern the prevailing lifestyle
orientation of the intended market segment.
ANS: T PTS: 1 DIF: Moderate TOP: Resonance strategy
12. A pre-emptive strategy is employed when an advertiser makes a generic-type claim but does so
with an assertion of superiority.
ANS: T PTS: 1 DIF: Moderate TOP: Pre-emptive strategy
13. The brand image strategy attempts to develop an image or identity for a brand by associating the
product with symbols.
MULTIPLE CHOICE
1. The _____________ are what consumers hope to receive or avoid when consuming products.
A consequences
B values
© Cengage Learning Australia 2014
C specifics
D attributes
E sections
ANS: A PTS: 1 DIF: Moderate TOP: Means–end chaining and laddering
2. Harriett Barnes purchased a very expensive watch. The status Harriett is seeking is the
_____________ of wearing the watch.
A attribute
B power
C specific
D value
E consequence
ANS: E PTS: 1 DIF: Difficult TOP: Means–end chaining and laddering
3. A document designed to inspire copywriters by channelling their creative efforts toward a solution
that will serve the interests of the client is known as a(n) _____________.
A advertising platform
B creative platform
C creative copy
D creative brief
E advertising copy
ANS: D PTS: 1 DIF: Moderate TOP: Constructing a creative brief
4. Laddering is a marketing research technique that has been developed to identify links between
_____________.
A attributes, consumers and values
B attitudes, consumers and values
C attributes, consequences and variables
D attributes, consequences and values
E attitudes, consequences and values
ANS: D PTS: 1 DIF: Difficult TOP: Determining means–end chains: the method
of laddering
5. The _____________ strategy is employed when an advertiser makes no attempt to differentiate its
brand from or claim superiority over competitive offerings.
A pre-emptive
B positioning
C resonance
D emotional
E generic
ANS: E PTS: 1 DIF: Moderate TOP: Generic strategy
6. Marian is concerned with the preservation and enhancement of her family and friends. She is
honest, loyal and helpful. She possesses the _____________ value.
A conformity
B universalism
C benevolence
D self-direction
E security
ANS: C PTS: 1 DIF: Difficult TOP: The nature of values
© Cengage Learning Australia 2014
7. The generic strategy is most appropriate for a company that _____________.
A has a lower price than its major competitor
B has a higher price than its major competitor
C dominates a product category
D has a major competitive advantage over its major competitors
E sells a high percentage of its products to foreign markets
ANS: C PTS: 1 DIF: Moderate TOP: Generic strategy
8. A car manufacturer that advertises its product as the only car where you can unlock the door with
your thumb-print is using the _____________ strategy.
A pre-emptive
B unique selling proposition
C positioning
D resonance
E emotional
ANS: B PTS: 1 DIF: Moderate TOP: Unique selling proposition strategy
9. The advertisers that designed the Mountain Dew commercials portraying the soft drink as a hip and
outrageous brand used the _____________ strategy.
A generic
B pre-emptive
C brand image
D positioning
E emotional
ANS: C PTS: 1 DIF: Moderate TOP: Brand image strategy
10. According to the MECCAS model, the value orientation represents the consumer value or the end
level on which an advertising strategy focuses and can be thought of as its _____________.
A leverage point
B objectives
C message content
D media mix
E driving force
ANS: E PTS: 1 DIF: Difficult TOP: Advertising applications of means–end
chains: the MECCAS model
11. According to the MECCAS model, the _____________ provide(s) the mechanism for
communicating the value orientation and the overall tone and style for the advertisement.
A leverage point
B objective orientation
C brand consequences
D executional framework
E brand attributes
ANS: D PTS: 1 DIF: Difficult TOP: Means–end chaining and laddering
12. The _____________ strategy implants in the customer’s mind a clear meaning of what the product
is and how it compares to competitive offerings.
A pre-emptive
B generic
C positioning
© Cengage Learning Australia 2014
D unique selling proposition
E brand image
ANS: C PTS: 1 DIF: Moderate TOP: Means–end chaining and laddering
13. The _____________ strategy extends from psychographic research and structures an advertising
campaign to pattern the prevailing lifestyle orientation of the intended market segment.
A generic
B pre-emptive
C positioning
D resonance
E brand image
ANS: D PTS: 1 DIF: Moderate TOP: Resonance strategy
14. Two distinct forms of corporate advertising are _____________.
A image and issue
B objective and subjective
C product and service
D rational and emotional
E planned and unplanned
ANS: A PTS: 1 DIF: Difficult TOP: Corporate image and issue advertising
15. The _____________ strategy is employed when an advertiser makes a generic-type claim but does
so with an assertion of superiority.
A resonance
B unique selling proposition
C positioning
D pre-emptive
E emotional
ANS: D PTS: 1 DIF: Moderate TOP: Pre-emptive strategy
16. The emotional strategy works especially well for _____________.
A food
B jewellery
C cosmetics
D None of the answers supplied for this question are correct.
E All of the answers supplied for this question are correct.
ANS: E PTS: 1 DIF: Moderate TOP: Emotional strategy
17. The _____________ strategy involves psychological, rather than physical, differentiation.
A pre-emptive
B brand image
C positioning
D unique selling proposition
E generic
ANS: B PTS: 1 DIF: Moderate TOP: Brand image strategy
18. Advertising that attempts to establish goodwill for the company and its products is known as
_____________ advertising.
A primary demand
B corporate image
© Cengage Learning Australia 2014
C corporate issue
D reminder
E competitive
ANS: B PTS: 1 DIF: Moderate TOP: Corporate image and issue advertising
19. Enduring beliefs that people hold regarding what is important in life are known as __________.
A attributes
B norms
C values
D roles
E consequences
ANS: C PTS: 1 DIF: Moderate TOP: Means–end chaining and laddering
20. Message strategies and decisions are most often the joint enterprise of the companies that advertise
and their _____________.
A advertising agencies
B marketing departments
C advertising departments
D promotion departments
E None of the answers supplied for this question are correct.
ANS: A PTS: 1 DIF: Easy TOP: The role of the advertising agency
21. Most personal computers purchased by households are acquired primarily to assist children in their
schoolwork. In referring to its brand of PC, one computer company came up with the clever
advertising line ‘The teacher’s aid’. This line is the only notable aspect of the company’s
advertising. What strategy is the company employing?
A pre-emptive
B unique selling proposition
C resonant
D generic
E None of the answers supplied for this question are correct.
ANS: A PTS: 1 DIF: Difficult TOP: Pre-emptive strategy
22. A TV commercial for a sports car marketed to young people emphasises pleasure and freedom as
end levels. The advertised car is shown delivering these end levels when the car is transformed into
a magic chariot and its young driver is carried away into a fantasyland. In terms of the MECCAS
model, the magic chariot technique represents the commercial’s _____________.
A driving force
B leverage point
C message elements
D consequences
E terminal values
ANS: B PTS: 1 DIF: Difficult TOP: Advertising applications of means–end
chains: The MECCAS model
23. An insurance company’s advertisements that mention how they contribute to cancer research
would be using _____________ advertising.
A corporate issue
B primary demand
C corporate image
© Cengage Learning Australia 2014
D competitive
E reminder
ANS: C PTS: 1 DIF: Difficult TOP: Corporate image advertising
24. Corporate issue advertising is also known as _____________ advertising.
A advocacy
B image
C goodwill
D selective demand
E pulsing
ANS: A PTS: 1 DIF: Easy TOP: Corporate issue (advocacy) advertising
25. Sunshield is a new line of sunglasses that boasts lenses that grow progressively darker with
increasing sunlight. Other brands have this same type of lens, but Sunshield is the first to make the
claim that its product helps prevent sun lines and ageing of skin. What type of creative advertising
strategy is described here?
A resonance
B pre-emptive
C unique selling proposition
D brand image
E positioning
ANS: B PTS: 1 DIF: Moderate TOP: Pre-emptive strategy
26. Advertisements for athletic shoes often focus on technological features such as special
shock-absorbing sole construction. What strategy is being used when the advertising for a brand of
athletic shoes focuses on a particular technological feature?
A resonance
B pre-emptive
C unique selling proposition
D positioning
E brand image
ANS: C PTS: 1 DIF: Moderate TOP: Unique selling proposition strategy
27. Levi’s 501 and 502 jeans are advertised as casual clothes for fashion-conscious young people. In
comparison, Just Jeans advertises their Plain Pockets brand as no-nonsense and more economical
than the name brands. Just Jeans is practicing what type of advertising strategy?
A resonance
B unique selling proposition
C brand image
D positioning
E none of the answers supplied for this question are correct
ANS: D PTS: 1 DIF: Moderate TOP: Constructing a creative brief
28. Which of the following statements is false?
A Humour is an effective method for attracting attention to advertisements.
B Humour in advertisements increases product sales.
C Humour does not necessarily harm comprehension.
D Humour does not enhance source credibility.
E Humour enhances liking of both the advertisement and the advertised brand.
ANS: B PTS: 1 DIF: Moderate TOP: The role of humour in advertising
© Cengage Learning Australia 2014
29. You are the brand manager of a new spray-can lubricant product that will compete against WD-40,
the category leader. You want to convince consumers that your brand, SA-90, is better than
WD-40. Which advertising strategy would you use?
A pre-emptive
B unique selling proposition
C positioning
D generic
E none of the answers supplied for this question are correct
ANS: C PTS: 1 DIF: Difficult TOP: Constructing a creative brief
30. Humour in advertisements involves the use of _____________.
A consistent resolution
B infinite resolution
C incongruity resolution
D congruity construction
E consistent construction
ANS: C PTS: 1 DIF: Difficult TOP: The role of humour in advertising
31. Your company markets a moulded plastic product shaped like a baseball that is meant to be used to
store baseball cards. You will advertise this product as a gift item to be purchased by parents of
young children. Your advertising will feature the nostalgia of collecting baseball cards. What
strategy are you using?
A pre-emptive
B unique selling proposition
C resonance
D generic
E None of the answers supplied for this question are correct.
ANS: C PTS: 1 DIF: Difficult TOP: Resonance strategy
32. When consumers find something in an endorser that they consider attractive, persuasion occurs
through _____________.
A attraction
B identification
C similarity
D worship
E All of the answers supplied for this question are correct.
ANS: B PTS: 1 DIF: Difficult TOP: Attractiveness: the process of identification
33. Jif Peanut Butter has long used the slogan ‘Choosy mothers choose Jif’. This campaign does not
directly challenge competitors but instead relies upon an understanding of the consumer’s desire to
be perceived as a good parent. Hence, in the sense that Jif is being advertised as the ‘good-parent
peanut butter’, what creative advertising strategy is being used?
A resonance
B brand image
C unique selling proposition
D positioning
E None of the answers supplied for this question are correct.
ANS: B PTS: 1 DIF: Difficult TOP: Brand image strategy
34. Two important sub-attributes of endorser credibility are trustworthiness and _____________.
© Cengage Learning Australia 2014
A respect
B physical attractiveness
C reliability
D expertise
E None of the answers supplied for this question are correct.
ANS: D PTS: 1 DIF: Difficult TOP: Endorser attributes: the TEARS model
35. Two types of negative appeals in advertising are _____________.
A fear and guilt
B threat and abuse
C abuse and guilt
D fear and threat
E None of the answers supplied for this question are correct.
ANS: A PTS: 1 DIF: Moderate TOP: The use of sex in advertising
36. Currently, advertising agency compensation comes in the form of _____________.
A commissions
B monthly fees
C a percentage of sales
D both A and B
E None of the answers supplied for this question are correct.
ANS: B PTS: 1 DIF: Easy TOP: Agency compensation
37. All of the following are desired attributes of endorsers except _____________.
A trustworthiness
B expertise
C exposure
D respect
E physical attractiveness
ANS: C PTS: 1 DIF: Moderate TOP: Endorser attributes: the TEARS model
38. Which of the following statements is false?
A Comparative advertising is better than non-comparative advertising at enhancing brand
awareness (i.e. brand name recall).
B Comparative advertising promotes better recall of message arguments.
C Comparative advertising generates stronger intentions to purchase the sponsored brand.
D Comparative advertising generates more purchases than non-comparative ads.
E None of the answers supplied for this question are correct.
ANS: E PTS: 1 DIF: Difficult TOP: The role of comparative advertising
39. A _____________ gives copywriters an understanding of how their creative work must fit into the
overall marketing strategy.
A communications strategy statement
B statement of marketing objectives
C media strategy statement
D strategy statement
E pre-testing evaluation statement
ANS: D PTS: 1 DIF: Difficult TOP: Constructing a creative brief
40. One way of defining effective advertising is if it _____________.
© Cengage Learning Australia 2014
A accomplishes the advertiser’s objectives
B creates attention
C is liked by the audience
D is colourful
E All of the answers supplied for this question are correct.
ANS: A PTS: 1 DIF: Moderate TOP: Creating effective advertising
41. In the terms of the MECCAS model, an advertisement that proclaims that pleasure and freedom
will result from the purchase of a particular brand is using pleasure and freedom as
_____________.
A driving forces
B leverage points
C message elements
D consequences
E None of the answers supplied for this question are correct.
ANS: A PTS: 1 DIF: Difficult TOP: Advertising applications of means–end
chains: the MECCAS model
42. Which of the following statements is true?
A Comparative advertising is better than non-comparative advertising at enhancing brand
awareness (i.e. brand name recall).
B Comparative advertising promotes better recognition of the product category.
C Comparative advertising generates stronger intentions to spread positive word-of-mouth.
D All of the answers supplied for this question are correct.
E None of the answers supplied for this question are correct.
ANS: A PTS: 1 DIF: Difficult TOP: The role of comparative advertising
43. When audience attitudes change because they perceive an endorser of a product to be credible, this
is referred to as _____________.
A internalisation
B externalisation
C standardisation
D customisation
E liquidation
ANS: A PTS: 1 DIF: Difficult TOP: Credibility: The process of internalisation
44. Music in advertising is good for _____________.
A attracting attention
B communicating meaning about a product
C entertaining
D luring the customer to the shop
E both A and B
ANS: E PTS: 1 DIF: Moderate TOP: The functions of music in advertising
45. Which value is derived from the need for variety and achieving an exciting life?
A self-direction
B hedonism
C achievement
D stimulation
E tradition
© Cengage Learning Australia 2014
ANS: D PTS: 1 DIF: Difficult TOP: The nature of values
46. The tasks of full-service advertising agencies include _____________.
A performing research
B providing creative services
C media planning and buying
D All of the answers supplied for this question are correct.
E account management
ANS: D PTS: 1 DIF: Moderate TOP: Advertising agency organisation
47. Guilt appeals in advertising are used to motivate individuals to _____________.
A undertake responsible action
B buy
C self-evaluate themselves
D switch brands
E evaluate their morals
ANS: A PTS: 1 DIF: Moderate TOP: The use of appeals to consumer guilt
48. According to classical conditioning theory, when music is used in advertising it is the
_____________.
A conditioned stimulus
B operant stimulus
C artistic stimulus
D classical stimulus
E unconditioned stimulus
ANS: E PTS: 1 DIF: Moderate TOP: The functions of music in advertising
49. In a study where advertisers were trying to pick music for a new ballpoint pen ad, more than half
of the subjects in the study selected the pen after listening to _____________.
A Asian Indian music
B rock music
C classical music
D belly dance music
E None of the answers supplied for this question are correct.
ANS: E PTS: 1 DIF: Moderate TOP: The functions of music in advertising
50. Many advertisements that portray typical-person users often include multiple people rather than a
single individual. The reason for this practice is _____________.
A because typical-person users are less expensive
B to provide multiple points of view
C to generate higher levels of message involvement
D to guard against the possibility that one endorser will be ineffective
E to increase the consumers’ perception of trustworthiness of the endorsers
ANS: C PTS: 1 DIF: Difficult TOP: Typical-person endorsers
51. Janice was influenced to purchase an abdominal exercise device after watching an infomercial
showing people like her – females in their middle forties and mothers. Which subcomponent of the
general concept of attractiveness influenced Janice to purchase this product?
A trustworthiness
B expertise
© Cengage Learning Australia 2014
C physical attractiveness
D respect
E similarity
ANS: E PTS: 1 DIF: Moderate TOP: Attractiveness: the process of identification
52. Which of the following is true regarding the source attribute of attractiveness?
A Attractiveness refers only to physical attractiveness.
B Attractiveness and credibility are basically different labels for the same concept.
C An endorser, although physically unattractive, may be perceived as attractive if consumers
share a sense of similarity with him or her.
D Attractiveness is a far more important attribute for a celebrity to possess than is credibility.
E An endorser must be considered physically attractive, well-respected and perceived as
similar to the audience to be effective.
ANS: C PTS: 1 DIF: Difficult TOP: Attractiveness: the process of identification
53. Full-service advertising agencies perform activities such as _____________.
A. research
B. media planning
C. the advertiser’s total marketing process
D. none of these choices
E. all of these choices
ANS: E PTS: 1 DIF: Easy TOP: The role of the advertising agency
54. The most effective level of fear _____________.
A is a strong level
B is a weak level
C depends on how much relevance a topic has for an audience
D is a weak level with a humorous message
E is a weak level with a credible spokesperson
ANS: C PTS: 1 DIF: Moderate TOP: Appropriate intensity
55. Which of the following would NOT be included in a creative brief?
A background
B target audience
C creative strategy
D positioning
E objectives and measures
ANS: C PTS: 1 DIF: Easy TOP: Constructing a creative brief
56. Those performing the ‘creative’ function in the advertising-development process must know the
audience for the advertisements they are to create. This ‘audience’ is also referred to as the
_____________.
A client
B focus group
C target market
D trade
E prospects
ANS: C PTS: 1 DIF: Easy TOP: Constructing a creative brief
57. The unique selling proposition strategy is a _____________ advertising strategy.
© Cengage Learning Australia 2014
A functionally oriented
B symbolically oriented
C experientially oriented
D category-dominance
E category-oriented
ANS: A PTS: 1 DIF: Moderate TOP: Alternative styles of creative advertising
58. How do ad agencies plan an IMC campaign? One of the first steps is to conduct a(n)
_____________.
A. SWOT analysis
B. creative brief
C. audience analysis
D. IMC focus group
E. communication objectives analysis
ANS: B PTS: 1 DIF: Moderate TOP: Creating effective advertising
59. _____________ advertising associates the experience of using an advertised brand with a unique
set of psychological characteristics that typically would not be associated with the brand
experience to the same degree without exposure to the advertisement.
A Informational
B Resonance
C Pre-emptive
D Suggestive
E Transformational
ANS: E PTS: 1 DIF: Moderate TOP: Brand image strategy
60. A(n) _____________ represents the linkages among brand attributes, the consequences obtained
from using the brand and the personal values that the consequences reinforce.
A means–end chain
B ladder
C MECCAS
D interconnect
E value connect
ANS: A PTS: 1 DIF: Difficult TOP: Means–end chaining and laddering
61. The consistency triangle model contains aspect/s of _____________.
A. say messages
B. confirm messages
C. do messages
D. none of these options
E. all of these options
ANS: E PTS: 1 DIF: Easy TOP: The consistency triangle
62. The consistency triangle model can be used to identify inconsistency in the company’s
_____________.
A. marketing strategy
B. communications
C. brands portfolio
D. market share
E. budgets
© Cengage Learning Australia 2014
ANS: B PTS: 1 DIF: Moderate TOP: The consistency triangle
63. _____________ exists when a brand does what it says it will do and when expectations and
experience are conformed by others.
A. Brand equity
B. Brand integrity
C. Brand consistency
D. Brand loyalty
E. Brand value
ANS: B PTS: 1 DIF: Easy TOP: The consistency triangle
64. The main feature of the Unique Selling Proposition (USP) advertising is identifying the important
difference that makes a brand _____________ and then developing an advertising claim that
competitors either cannot make or have chosen not to adopt.
A. unique
B. strong
C. liked
D. popular
E. valued
ANS: A PTS: 1 DIF: Easy TOP: Unique selling proposition strategy
65. Transformational advertisements make the experience of using the brand _____________.
A. richer
B. warmer
C. more exciting
D. none of these choices
E. all of these choices
ANS: E PTS: 1 DIF: Easy TOP: Brand image strategy
66. The important point to remember is that the MECCAS approach provides a _____________
procedure for linking the advertiser’s perspective with the consumer’s perspective.
A. simple
B. complex
C. systematic
D. holistic
E. strategic
ANS: C PTS: 1 DIF: Moderate TOP: Practical issues in identifying means-end
chains
67. Advertising and other forms of marketing communications are most relevant to the
_____________.
A. consumer
B. marketer
C. brand
D. corporation
E. IMC campaign
ANS: A PTS: 1 DIF: Easy TOP: Practical issues in identifying means-end
chains
68. Two important sub-attributes of endorser credibility are _____________.
© Cengage Learning Australia 2014
A. respect and expertise
B. trustworthiness and similarity
C. honesty and physical attractiveness
D. expertise and uniqueness
E. trustworthiness and expertise
ANS: E PTS: 1 DIF: Moderate TOP: Endorser attributes: the TEARS model
69. An in-depth analysis of a broad spectrum of magazines revealed that about one in _____________
advertisements contains an appeal to guilt.
A. 80
B. 100
C. 40
D. 60
E. 20
ANS: E PTS: 1 DIF: Moderate TOP: The use of appeals to consumer guilt
ESSAY
1. Identify situations where an advertiser would use in-house advertising operations, full-service
advertising agencies, and a la carte arrangements. Your answer should include a discussion of the
advantages and disadvantages of each of the three alternatives.
ANS:
Message strategies and decisions most often are the joint enterprise of the companies that advertise
(the clients) and their advertising agencies. In general, advertisers have three alternative ways to
perform the advertising function: use an in-house operation, purchase advertising services on an
ad-need basis from specialised agencies, or select a full-service advertising agency.
Maintaining an in-house operation necessitates employing advertising staff and absorbing the
overhead required to maintain the staff’s operations. This arrangement is unjustifiable unless a
company does a large and continuous amount of advertising.
Advertisers can purchase advertising services a la carte. That is, rather than depending on a single
full-service agency to perform all advertising and related functions, an advertiser may recruit the
services of a variety of firms with particular specialties in creative work, media selection,
production, advertising research, and so on. Advantages include the ability to contract for services
only when they are needed and potential cost efficiencies. A disadvantage is that specialists
(so-called boutiques) sometimes lack financial stability and may be poor in terms of cost
accountability.
Full-service agencies perform at least four basic functions: (1) creative services, (2) media
services, (3) research services, and (4) account management. Advantages include acquiring the
services of specialists with in-depth knowledge of advertising and obtaining negotiating leverage
with the media. The major disadvantage is the loss of control over the advertising function.
PTS: 1 DIF: Moderate TOP: The role of the advertising agency
2. Describe the various forms of advertising agency compensation.
ANS:
There are various methods by which clients compensate agencies for services rendered:
1. Commissions from media. Historically, Australian advertising agencies charged a
© Cengage Learning Australia 2014
standard commission of 10 per cent of the gross amount of billings.
2. Monthly fee (with rebate) remains common amongst agencies.
3. Job-by-job & hourly rate is the most transparent and fairer for both parties, agencies
monitor their time and bill clients an hourly fee based on time commitment.
4. Outcome- or performance-based programs. These represent the newest approach to
agency compensation and are based on covering costs and incentive payments that are
tied to a brand’s performance goals. This system encourages, indeed demands, agencies
to use whatever IMC programs are needed to build brand sales.
PTS: 1 DIF: Moderate TOP: Agency compensation
3. Explain the MECCAS model and discuss how it is used in advertising strategy formulation.
ANS:
MECCAS stands for means–end conceptualisation of components for advertising strategy and
provides a procedure for applying the concept of means–end chains to the creation of advertising
messages.
A brand advertiser, armed with knowledge of segment-level values, is in a position to know what
brand attributes and consequences to emphasise to a particular market segment as the means by
which that brand can help consumers achieve a valued end state.
The components include a value orientation, brand consequences and brand attributes, and creative
strategy and leverage point that provides the structure for presenting the advertising message and
the means for tapping into or activating the value orientation. The value orientation represents the
consumer value or end level on which the advertising strategy focuses and can be thought of as the
driving force behind the advertising execution. Every other component is geared toward achieving
the end level. Laddering is a research technique that has been developed to identify linkages
between attributions, consequences and values, and involves in-depth, one-on-one interviews that
typically last between 30 minutes to more than one hour. This method attempts to get at the root, or
deep, reasons for why individual consumers buy certain products and brands.
PTS: 1 DIF: Difficult TOP: Advertising applications of means–end chains: the
MECCAS model
4. Compare and contrast corporate image advertising and corporate issue advertising, and provide an
example of each.
ANS:
Both are forms of corporate advertising, which focuses not on specific brands but on a
corporation’s overall image or on economic or social issues relevant to the corporation’s interests.
Corporate image advertising attempts to increase a firm’s name recognition, establish goodwill
for the company and its products, or identify itself with some meaningful and socially acceptable
activity.
Corporate issue (advocacy) advertising occurs when a company takes a position on a
controversial social issue, or advocacy, of public importance with the intention of swaying public
opinion.
PTS: 1 DIF: Moderate TOP: Corporate image and issue advertising