ARE136WI12Q6vaKEY.pdf

1 Name: __KEY_______________________ Last 4 digits of SID:_____________ Managerial Economics (ARE) 136 University of California, Davis, Winter 2012 Dr. John H. Constantine Quiz 6 (140 points), Wednesday February 29, 2012 Multiple Choice Questions?(60 points; 10 points each.) 1) A Los Angeles ad agency goes public, and before long it is being pressured to show more profit. What are the two quickest routes to the short-term profits demanded by shareholders of publicly traded ad agencies? a) cutting production expenses, and downsizing executive personnel b) firing staff, and making money from fees and media buys c) soliciting funds from investors, and handling more costly ad productions d) increasing creativity to win industry awards, and charging higher rates 2) A retailer decides to use newspaper ads to support the marketing effort behind its selection of men?s and women?s swimwear. In the media planning process, newspaper is referred to as a(n) a) media class. b) media vehicle. c) media objective. d) interactive media. 3) What is probably the most obvious media objective? a) to support the creative work b) to integrate new media c) to keep client costs down d) to reach the target audience 4) What concept refers to the measure of intensity of one media plan versus another, which takes into consideration both reach and frequency? a) unmeasured media b) gross rating points c) share of voice d) cost per thousand 5) A children?s apparel manufacturer promotes its clothes on a regular basis, but needs a stronger message in August for back-to-school shopping, in December for holiday shopping, and in May for summer shopping. What type of scheduling strategy will run the clothing ads continuously, but will also have three periods of much heavier scheduling? a) pulsing b) continuous c) flighting d) measured 6) Overall, computer media-planning models a) have taken the place of solid planning and sound judgment. b) now provide standardized reports that are comparable across media categories. c) lean toward high-end media options that result in costly media buys. d) assess a wide range of possibilities and save advertisers a lot of money. 2 True/False Questions?(40 points; 10 points each.) 7) Today?s expanding matrix of media options requires attention to detail, creativity, and strategic thinking if the result is to be a media plan that effectively specifies how the message will reach the target audience. True. 8) The number of people or households that will be exposed to a media vehicle at least one time during a particular period is referred to as frequency. False. 9) A retailer selling artificial Christmas trees runs its spots the first week of October, the first week of November, and Thanksgiving week. This retailer is using a between-vehicle media strategy. False. 10) New Belgium Brewery has now devoted more than half of its marketing budget to social-media outlets. False. Multiple Choice Questions?(40 points; 10 points each.) Taylor, Frenz, and Hynes have recently published a short booklet entitled Media Choices: Efficiency and Competitive Assessment. This is a tool that advertising agencies and media planners can offer to clients so they can understand how to better determine their media mix. Included below are several short excerpts from the booklet. Please complete the missing part of each excerpt, based on your study of the chapter. 11) ?When a firm compares its brand advertising expenditures in a medium to the total product category advertising expenditures in a medium, it is able to determine the a) cost per thousand.? b) share of voice.? c) cost per rating point.? d) reach and frequency.? 12) ?Which media deliver the largest audiences at the lowest cost? This is determined by examining the ratio of the cost of the media buy to the total audience and then multiplying it by 1,000. This is known as a) share of voice.? b) media cost.? c) cost per rating point.? d) cost per thousand.? 13) ?The calculation known as ____ compares the relative efficiency between media options by examining the ratio of an ad's placement costs on a program to the program's ratings.? a) cost per thousand b) net promoter score c) cost per rating point d) square root law 14) ?Among advertising agencies, the client?s agency of record is the one chosen by the client specifically to a) purchase all time and space.? b) keep records of all ongoing research efforts.? c) gather all data necessary to measure media exposure.? d) correlate creative efforts with media budgets.? john Microsoft Word - ARE136WI12Q6vaKEY