Student Name _______________________

STONEHILL COLLEGE

Spring 2007

BA344 Advertising Management

First Hour Exam

Dr. Geoffrey P. Lantos

Part 1 12 points ______

Part 2 32 points ______

Part 3 56 points ______

Total Points Deducted ______

Total Points Earned 103 points ______

Your Grade ______

PART I: CONCEPTS (12 points - 4 points each)

Please briefly define in your own words, and in one or two sentences, three of the following four concepts as each relates to advertising management. You may use examples to help clarify your answers where examples are not specifically asked for.

1. Branded entertainment (advertainment) -

2. Coolhunt -

3. Single-source data -

4. Top-of-the-mind awareness -

PART II: DESCRIPTIVE SHORT ANSWER (32 points)

Please briefly answer the required number of questions for each Section as each question relates to advertising management. Your answer should be in either a short paragraph or else in outline form -- complete sentences need not be used. You may use graphs, figures, charts, equations, etc., where appropriate. Be sure you answer all parts of all questions that you choose to answer.

Section A (12 points): Answer three of the following four 4-point questions

1. (4 points) In “Chapter 3 Jobs in Advertising and How to Get Them,” David Ogilvy gives some pointers on how to apply for a job. Briefly cite two of them.

2. (4 points) How does David Ogilvy feel about the use of marketing research (Chapter 15)? How does he feel about doing marketing research among children?

3. (4 points) Cite (without defining) the four primary functions performed by a full-service advertising agency.

4. (4 points) Cite four general cases (not specific example situations) in which advertising can reasonably be expected to fulfill a direct action, short-term objective.

Section B 12 points): Answer two of the following three 6-point questions

5. (6 points) Explain both the similarity and the difference between integrated marketing communication and integrated brand promotion.

6. (6 points) What us meant by the term external facilitators? Cite two general examples.

7. (6 points) What is posttesting? Cite two purposes it can serve.

Section C (8 points): Answer the following 8-point question

8. (8 points) Cite four potential disadvantages of using advertising as a marketing communications tool (based on four factors to be considered in selecting among the various promotional tools). For each disadvantage, cite another promotional tool that is more advantageous/performs better than advertising on that factor.

PART III: APPLIED SHORT ANSWERS (59 points)

Please briefly answer all of the following questions for both scenarios below in either a short paragraph or else in outline form--complete sentences need not be used. Be sure to answer all parts of all questions.

Section A: Scenario 1 (44 points)

Gillette M3Power -- a MACH3 innovation -- is a groundbreaking, powered wet shaving system for men that delivers a totally new shaving experience resulting in Gillette’s best shave ever. M3Power builds on the heritage of MACH3 and combines Gillette’s latest and best razor and blade technologies. This innovative technology utilizes a battery-powered pulsating handle to deliver gentle micro-pulses that stimulate hair up and away from the skin, providing the closest, most thorough shave with less irritation than ever before. M3Power outperforms all other blades and razors in closeness, comfort, and safety during and after the shave.

A series of coordinated advertisements targeted to male consumers were developed to increase awareness of this product. Gillette said that it wished to achieve a market awareness rate of 70% within four months. To help achieve this, ads remind consumers that Gillette is “the best a man can get.” The extensive advertising campaign includes print, television and Internet advertising, in-store promotions and in-store displays, supports M3Power.

M3Power’s advertising claim is "Stimulates hair up and away from skin.” Created by BBDO New York, TV commercials illustrate the M3Power's unique micro-power technology. One series of ads that do this stars the Gillette Young Guns–six of NASCAR's top young drivers -- Kurt Busch, Dale Earnhardt Jr., Kevin Harvick, Jimmie Johnson, Matt Kenseth and Ryan Newman. These commercials showcase the solid connection between the sheer power and performance of M3Power with these six phenomenal drivers.

Ads encourage consumers to register online at www.gilletteyoungguns.com to predict the highest-finishing Gillette Young Gun driver prior to each of this year's 36 NASCAR NEXTEL Cup events. Each week, all correct entrants are automatically entered in a drawing for a $5,000 prize, and Gillette makes a $1,000 donation in the name of the highest-finishing Gillette Young Gun to the National Prostate Cancer Coalition (NPCC).

As part of the IMC, Gillette Co. direct-mailed users of competing male products, throughout the United States, a free M3Power razor with blades and a coupon offer for additional blades.

Required:

1. (6 points) During our first few class sessions (after syllabus day) we discussed the basic purposes/functions of advertising. Other than the general purposes "to communicate" and "to ultimately sell the product," what three more specific purposes/functions does this advertising/IMC campaign seem to be serving? Explain each purpose in one or two phrases or sentences.

2. (8 points)

a. (2 points) If an ad for M3Power made direct comparisons of their brand against another named brand of shaving system (e.g., Schick) along one or more purchase criteria (e.g., close, smooth, comfortable shave, etc.), what type of advertising would this be (i.e., what is it called)?

b. (6 points) Cite three possible problems with running such an ad. (Problems can be for the advertiser, consumers, and/or society.)

3. (6 points) Which stage in the advertising spiral does this product seem to be in? Give two pieces of evidence.

4. (8 points) What does your answer in question 3 regarding the stage in the advertising spiral for suggest for each of the following? (Your answers need be no more than one sentence long):

a. The ad's communication objectives

b. The ad's function/role

c. The theme/message in this ad campaign (at a very general level, as found for most products in this stage of the ad spiral)

d. Relative size of the advertising appropriation for this ad campaign

5. (6 points) Cite three types of organizations or departments Gillette could have gone to get strategic research done, along with an advantage of using each.

6. (10 points) Making any reasonable assumptions that you need to make, write your own clear and complete statement of advertising objectives for the M3Power’s advertising campaign, citing and including a specific example of each of the five criteria for "good" advertising objectives discussed in class.

Section B: Scenario 2 (15 points)

Kentucky Fried Chicken (KFC), a subsidiary of Yum! Brands, Inc., which owns A&W All-American Food Restaurants, KFC, Long John Silvers, Pizza Hut, and Taco Bell restaurants, is the world's largest restaurant company in terms of system units, with nearly 32,500 outlets in more than 100 countries and territories. As a multinational client, KFC is looking for a new advertising agency to assist with advertising in Mexico and Canada. The client feels that it would be best served by a very large agency offering a wide range of services. They wish to compensate their agency using an incentive (performance)-based system.

Required:

7. (3 points) Cite three reasons KFC should hire an advertising agency rather than trying to do the advertising work itself.

8. (6 points)

a. (3 points) Describe how the performance-based system of agency pay could be sat up by KFC.

b. (3 points) Cite three reasons why KFC might prefer performance-based compensation to a commission system or a fee system.

9. (6 points) Cite six criteria that KFC would be likely to use in selecting between among ad agencies.