The major difference between public relations and advertising is that public relations cannot be ...

Answer to #1

FALSE

Answer to #2

TRUE

Answer to #3

TRUE

Answer to #4

The client's role is to produce all necessary information on the firm, the brand, the product, and the market. It should identify the firm's basis for offering value to customers. The client should also clearly identify the external environment and the opportunities and challenges that can be addressed with advertising. In addition, it should include a well-articulated statement of the brand's competitive position and the marketing mix strategies designed to gain and sustain competitive advantage.
The agency's role is to use all that information and its own expertise to create finished ads. It should consider the conditions in the current market plus the firm's marketing status and ad objectives, and then translate this information into promotional strategies and, ultimately, into finished advertisements. An agency best serves its client by taking charge of the preparation and placement stages. The agency needs to hammer out message strategies and tactics for the advertising effort and for the effective design and placement of adsoverall, it needs to manage the entire IBP process.

Answer to #5

FALSE

Answer to #6

Share-of-market strategy. In the memo, you will want to explain that you can run into several problems associated with the share-of-market method of setting advertising objectives. First, it may be difficult to gain access to precise information about your competitors' expenditures. Second, there is no reason to believe that your competitors are spending their money wisely, or in a way even remotely related to what your firm wants to accomplish. Third, a likely outcome of budgeting in this fashion is that your firm will make little headway over the competition and but will simply maintain the status quo. Fourth, the flaw in logic behind this method is the presumption that every advertising effort has the same goals, is of the same quality, and will have the same effect from a creative execution standpoint.
Objective-and-task strategy. Now your memo will address the preferred alternative. The objective-and-task approach will allow you to focus on the relationship between your spending and your advertising objectives. The budget is formulated by identifying the specific tasks necessary to achieve different aspects of the objectives. The four major steps that must be taken after advertising objectives have been set are (1) using a build-up analysis to determine costs; (2) comparing the costs against industry and corporate benchmarks; (3) reconciling and modifying the budget; and (4) determining the time frame for payout.

Answer to #7

TRUE

Answer to #8

Many marketers would take the stance that communications objectives are the only legitimate objectives for advertising a brand like Sweet Sunshine. They would argue that it is not reasonable to set sales objectives for its advertising effort when other variables in the mix might undermine the advertising effort, or might be responsible for sales of Sweet Sunshine orange juice (or lack of sales) in the first place. In addition, viewing advertising as primarily a communications effort will allow the marketer to consider a broader range of ad strategies in promoting the Sweet Sunshine brand. Overall, communications objectives should create an awareness for the Sweet Sunshine brand, offer information about its features and benefits, and develop a favorable attitude toward the brand that may lead to consumer preference. These objectives have certain advantages over sales objectivesthey consider a broader
range of strategies, and they gain a greater appreciation for the overall communications process.
But there is always the idea, even if it is in the background, that advertising must sell. So the marketer may use both types, as long as certain criteria are met. Any objectives that enable a firm to make intelligent decisions about resource allocationwhether based on communications or salesmust be stated in an advertising plan in terms specific to the organization. The objectives must establish a quantitative benchmark, specify measurement methods and criteria for success, and identify a time frame for the desired results to occur.