Advertising

Level 3

Model Answers
Series 2 2007 (Code 3002)

1 ASE 3002 2 06 1

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Advertising Level 3
Series 2 2007

How to use this booklet

Model Answers have been developed by Education Development International plc (EDI) to offer
additional information and guidance to Centres, teachers and candidates as they prepare for LCCI
International Qualifications. The contents of this booklet are divided into 3 elements:

(1) Questions – reproduced from the printed examination paper

(2) Model Answers – summary of the main points that the Chief Examiner expected to
see in the answers to each question in the examination paper,
plus a fully worked example or sample answer (where applicable)

(3) Helpful Hints – where appropriate, additional guidance relating to individual

questions or to examination technique

Teachers and candidates should find this booklet an invaluable teaching tool and an aid to success.

EDI provides Model Answers to help candidates gain a general understanding of the standard
required. The general standard of model answers is one that would achieve a Distinction grade. EDI
accepts that candidates may offer other answers that could be equally valid.

© Education Development International plc 2007

All rights reserved; no part of this publication may be reproduced, stored in a retrieval system or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise
without prior written permission of the Publisher. The book may not be lent, resold, hired out or
otherwise disposed of by way of trade in any form of binding or cover, other than that in which it is
published, without the prior consent of the Publisher.

2
QUESTION 1 (Compulsory)

Prepare a storyboard for a 30 second television commercial to be shown during music programmes
on a variety of channels to advertise a book about a famous musician. The commercial is to include a
sign-off stating where or how the book can be purchased (in conventional bookstores or on-line) and
how to obtain an album with recordings of the musician’s best known songs.
(Total 20 marks)

MODEL ANSWER TO QUESTION 1

Candidates should use a storyboard format (representing a number of television screens) which
should also have, underneath, the following:

Technical instructions (camera directions and EFX)

Voice overs (including gender [MVO or FVO] and tone [harshly])
Use of music
Sign-off/contact number/address (on screen or in voice over)

There should also be creative use of words (nominally 60) and indication of pictures relevant to target
audience.

3002/2/07/MA 3
QUESTION 2

Write a business letter to the media director of an overseas agency explaining, separately, the
primary and secondary media that would be used in your country for:

(a) fast moving consumer goods (10 marks)

(b) factory equipment

(6 marks)
Illustrate your answer with examples.

(4 marks will be awarded for a business letter format).

(Total 20 marks)

MODEL ANSWER TO QUESTION 2

Candidates should write a formal business letter (sender and recipient addresses, date, salutation and
subject [e.g. Re: Primary and Secondary Media] which describes campaigns using a selection of
above-the-line and below-the-line media best suited to a client’s promotional objectives.

(a) The selected media for fast-moving consumer goods should be taken from the list below:

PRESS (Newspapers and Magazines)

RADIO (Local and National Commercial Radio)
OUTDOOR (Roadside Posters)
TRANSPORT (Bus, Train, Taxi and Tube Advertising)
CINEMA (Screen Advertising)
TELEVISION (Terrestrial, Satellite and Cable)

SALES PROMOTION (for trial, increasing use etc.

POS DISPLAY
DOOR-TO-DOOR DISTRIBUTION

Do not include leaflets or brochures (for fast moving consumer goods)

(b) For factory equipment, a selection from the following should be included:

PRESS (Technical and Business Newspapers/Magazines or sections)

EXHIBITIONS (including Business Trade Fairs)
DIRECT MAIL (targeted by job title/function)
DISPLAY (in trade/distribution outlets)

General statements about each medium are not acceptable without reference to the question - this is
particularly true for products sold to industry or commerce.

The examples should include titles of actual publications (e.g. Daily mail – for part (a) or Factory
Equipment News for part (b)).

3002/2/07/MA 4
QUESTION 3

Draft an email to a potential client explaining:

(a) the formalities needed for an advertising agency to obtain recognition from media owners
(8 marks)
(b) how the advertising agency would be charged for space and air-time by media owners
under the commission system.
(10 marks)
(2 marks will be awarded for a suitable email format).
(Total 20 marks)

3002/2/07/MA 5 OVER
MODEL ANSWER TO QUESTION 3

Email format to be used (similar to memorandum)

Use of Trade and Technical or Industrial Advertising Agency

(a) Agency Recognition

The advertising agency gains recognition by applying to the main trade associations representing
the printed and broadcast media (see below). So it is not eligible to receive commission unless it
has been accepted by these bodies as being creditworthy or, in other words, has sufficient funds,
turnover or share capital to meet any debts that it might incur.

Representative Trade Associations

ITVA (Independent Television Association) - Commercial Television

NPA (Newspaper Publishers Association) - National Newspapers
NS (Newspaper Society) - Regional Newspapers (Jointly with NPA)
PPA (Periodicals Publishers Association) - Magazines and Trade Press

Other trade associations now rely on the recognition of these bodies to ensure that agencies are
acceptable to their members.

The system of recognition is managed and controlled by the IPA (Institute of Practitioners in
Advertising representing the advertising agencies), ISBA (Incorporated Society of British Advertisers
representing the advertisers) and Committee of Advertising Practice (CAP representing the ASA
[Advertising Standards Association] and the regulations laid down by the British Codes of Advertising
and Sales Promotion Practice).

(b) The Commission System

Once bulk of the income for an advertising agency, commission does still play an important role
in contributing to the agency’s income especially where there is a heavy commitment to using
‘above-the-line’ media.

Once the schedule is agreed, the media buyer – negotiates the final price for space or air time
with media advertisement manager when the commission level will be established (normally
between 10 to 15%).

Although the rate card price might be £10,000, the commission system would work as follows
once the final price has been set:

Negotiated price = £9,000

Commission (10%) = £900 (discounted to agency)
_______

Cost to agency = £8,100

Mark-up/Handling Charge = £1,429.65 (17.65%)
_______

Actual total cost = £9,529.65

3002/2/07/MA 6
QUESTION 4

(a) Describe the specialist advice and services provided by a recruitment advertising agency.
(6 marks)
(b) List and describe the type of advertisements that the recruitment advertising agency
would place in the following publications (giving examples of the level of staff to be attracted):

(i) Local newspapers

(ii) National newspapers
(iii) Technical and professional journals.
(14 marks)

(Total 20 marks)

3002/2/07/MA 7 OVER
MODEL ANSWER TO QUESTION 4

(a)

- Preparation of advertisements to match job descriptions/personnel specifications

- Use of appropriate media to attract suitable applicants for management, technical,
professional and administration posts
- Advice on employment law (including sex and race discrimination acts)

(b)

Advertisements can use word-by-word, lineage and/or display and semi display. The latter
means that they will have a border around them and the typography will be used to emphasis a
key point such as the headline, the job title or the company seeking staff.

(i) Local papers usually carry recruitment for lower grades of employees and staff though
they may include advertisements for supervisors and junior managers

(ii) Most likely to be display or semi-display advertisements describing specialist staff and
senior manager positions in the national broadsheet media like The Times and the
Daily Telegraph. These have special supplements for recruitment on a certain weekday
and/or devoted to separate specialist headings everyday of the week.

Top and senior staff jobs advertised in the Sunday Times in the special Appointments
section.

The Financial Times also carries recruitment advertising but as would be expected this
would be for accountants, financial directors and other finance-based positions.

National tabloid newspapers carry recruitment advertising usually for specialist trades
(for example, for printers in the Daily Mail).

(iii) Companies recruiting technical, managerial and specialist staff would place advertisements
in the technical and professional media. There are over 3,500 professional, management
and technical publications covering job functions from accountancy to veterinary surgeon
and industries from adhesives and sealants to water supply. (Examples in the UK are
Marketing Week, Marketing. PR Week and Campaign for such jobs in marketing and
marketing communications).

3002/2/07/MA 8
QUESTION 5

Write notes for a presentation to the marketing department of a company of your choice explaining
the advertising objectives for campaigns that would promote:

(a) a new product that the company is introducing

(8 marks)
(b) the company’s existing ranges of products
(10 marks)
Do not provide marketing objectives.

(2 marks will be awarded for notes suitable for a presentation).

(Total 20 marks)

MODEL ANSWER TO QUESTION 5

Each section should have a selection (to a maximum of four) with additional explanation. The same
objectives cannot be repeated in both parts unless they are separately justified for a new product or an
existing range.

(a)

*To launch the product or service.

*To create awareness.
*To generate interest.
*To generate initial sales enquiries
*To overcome resistance to new ideas or product concepts
*To promote the corporate/brand image.
*To attract and support distributors.
*To encourage trial

(b)

*To maintain awareness and interest.

*To remind existing users.
*To reassure previous purchasers.
*To maintain acceptance as the profile of the customer changes.
*To keep the market informed when the market is changing.
*To maintain regular demand (to ease production even though there could be peaks
and troughs in sales).
*To reinforce the corporate and brand image
*To sell by-products and spin off services (supplies, after sales repair and maintenance).
*To maintain loyalty of existing users
*To keep sales persons or outlets busy (including building store traffic) and so maintain
loyalty of intermediaries
*To support individual sales persons or outlets
*To promote new or improved versions of existing products.
*To clear surplus supplies.
*To prolong the life of the product in a declining market.
*To counter declining sales (due to competition).
*To win back previous purchasers and lapsed users.
*To re-position the products as niche product with premium pricing

3002/2/07/MA 9
QUESTION 6

(a) Draw an organisational chart for a full service advertising agency.

(5 marks)

(b) Write the copy only for an advertisement to recruit an account executive for an
advertising agency.
(15 marks)

(Total 20 marks)

MODEL ANSWER TO QUESTION 6

(a)
Account Handling

Creative Media Production Public Direct Sales Exhibitions Recruitment

(TV-Radio Relations Response Promotion
Press) Marketing
Copy Research Print Buying
Visuals Planning Traffic Control
Scripts Buying
Storyboards

(b) This should be in copy style format (no layout is required) and should have the following:

- Job title

Responsibilities

- Client liaison from briefing to presenting/explaining agency’s work

- Advising the client on branding and positioning
- Briefing and working with internal departments to ensure success of the advertiser’s
campaigns.
- Acting as go-between agency and departments
including explaining the various elements to the client.
- Ensuring work is within budget or that the costs are justified having discussed increased
work with the client.
- Ensuring that the client is billed correctly.

Qualities

- Enthusiasm, self-motivation, presentable manner and ability to communicate with people at

all levels

- Contact details (agency name/address/telephone)

3002/2/07/MA 10
QUESTION 7

Write short and separate paragraphs explaining each of the following:

(a) ROP (4 marks)

(b) Special positions (4 marks)
(c) DPS (4 marks)
(d) scc (4 marks)
(e) Controlled circulation. (4 marks)

(Total 20 marks)

MODEL ANSWER TO QUESTION 7

(i) Run of paper - placement of press advertisement involving lower advertising rate as it is
inserted at the discretion of the publisher as no special instruction is given nor space booked
for a special position. Publisher will, however, attempt to find the best possible position for all
ROP advertisements since the publication wants to have successful advertising for advertisers
to keep buying space.

(ii) Special positions - space booked by media department to ensure that client’s advertisements
appear where they may be more likely to be noticed (e.g. outside back cover, inside front cover,
solus or facing matter) or in features which are related to the target audience or the subject of
the advertisement (e.g. cruise ship holiday in travel section). Special position for commercials
might include peak-time viewing or particular type of programme.

(iii) Double page spread (or two facing pages for a single advertisement) – very commonly used for
fast moving consumer goods, household cleaning products and cosmetics in women’s magazines
but also for expensively priced items such as motor vehicles throughout the consumer press.
The aim is to achieve high impact and often advertisers get agency media buyers to buy the first
DPS in publications on the basis they will have greater impact.

(iv) Single column centimetre - means of buying an area of space in printed media based on depth
(per centimetre) and width (by column). More often used for selling classified advertising. The
smallest size of space that can be bought, it is usually bought in multiples (i.e. 4cm, 6cm) and can
be bought across columns (e.g. 8cm x 2 cols)

(v) ‘Controlled circulation’ is the number of people who receive a publication via the post because
as primary readers they have to pass strict criteria before they can receive free copies. These
readers have specifying and purchasing power due to their job functions and so are targets for
advertisers. Hence, the costs of publishing the trade and technical, industrial, management and
professional journals that make up this sector of the press are totally borne by advertising
revenue rather than by the cover charge plus advertising or via subscriptions paid by the readers.

3002/2/07/MA 11
QUESTION 8

Explain any controls that could be needed when preparing advertising or promotional
campaigns for slimming and dieting products and services.
(Total 20 marks)

MODEL ANSWER TO QUESTION 8

Guidelines for Advertising Slimming Methods and Products

- the effectiveness of a slimming method or product must be substantiated by rigorous trials

on people (testimonials without such trials are not substantiation)
- -weight losses involving expelling water, speeding up metabolism (or the body’s ability to
digest food), using mechanical devices, wearing garments or applying substances to the skin
should be substantiated.
- advertisements and promotions should not be targeted at under 18 year olds
- treatments for obesity are not to be advertised unless to be used with qualified supervision
- advertisements and promotions should not suggest it is desirable to be underweight
- vitamins and minerals may be offered as a safeguard to any shortfall when dieting but do not
contribute to weight loss
- diet plans should prove that they are well balanced in nutritional terms
- crash diets (that fall below 400 calories per day) should not be advertised unless they are to
be used under direct medical supervision
- low calorie foods, food substitutes, appetite depressants and meal replacements should
make it clear how they work
- general claims that precise amounts of weight can be lost within a stated period or from
specific parts of the body are not allowed
tight fitting garments (such as corsets) should not be shown as permanent means of losing
weight.

3002/2/07/MA 12
QUESTION 9

Prepare a report defining and explaining the use of sponsorship giving its main aims,
with examples, from a country of your choice.
(18 marks)
(2 marks will be awarded for suitable report format)
(Total 20 marks)

MODEL ANSWER TO QUESTION 9

(Worked Example)

REPORT

Title:

Use and Main Aims of Sponsorship

Prepared by:

A Candidate

For the attention of the Board of Directors, Excel Manufacturing

April 2007

1 A Definition

‘The giving of monetary or other support to a beneficiary in order to make that beneficiary
financially viable, some times for altruistic reasons, but generally to gain some advertising,
marketing or public relations advantage’.
Frank Jefkins

Sponsorship may not have a direct effect on sales but it creates a climate of goodwill where the
corporate or brand image is associated with benefiting sports, cultural and other worthwhile
activities players and performers.

It may be carried out:

- on a local basis to foster employee or community relations

- at a national level to create brand awareness for fast moving consumer goods
(FMCGs)
- at international level (e.g. Formula One motor racing) but it might be specific
to a target audience (e.g. Land Rover and horse riding events to influence
land-owners and farmers)

3002/2/07/MA 13 CONTINUED ON NEXT PAGE

MODEL ANSWER TO QUESTION 9 CONTINUED

2 Areas of Sponsorship

Sponsorship, therefore, can cover a wide range of activity to suit its definition and aims, so listed
below are the types of activity that may benefit from such support which in turn benefit the
sponsor:

*Sports Events
*Sports Leagues (e.g. the English Premier Football League)
*Sports Teams
*Sports Players
*Theatre
*Opera Performances or Venues
*Concerts (Pop and Classical Music)
*Festivals
*Performers of the Arts
*Community Arts
*Prizes (for literature, films, books, TV and radio programmes)
*Award Ceremonies
*Television and radio programmes
*Expeditions
*Schools and Colleges (with courses, bursaries and awards)
*Universities (including research and academic chairs).
*Museums
*Heritage and environmental
*Art Galleries.

Aims of Sponsorship

Typical aims of sponsorship can include:

*To brand and position a product or service by association (e.g. low alcohol lager for a saloon car
racing team to emphasis that it is safer to drink and drive with the product).
*To create brand awareness by exposure (e.g. Barclays Bank sponsored the Football League to
make manual workers aware of its name as cash wages were being eliminated by employers in
favour of payment by cheque and direct debit for which bank accounts were needed).
*To support associated promotional activity (e.g. Canon when it sponsored the football league to
create brand awareness also ran an advertising campaign for its product range to promote itself
as a maker of household electrical and electronic products).
*To reinforce corporate identity (e.g. racing cars in the sponsor’s livery e.g. Benetton)
*To overcome an advertising ban (e.g. tobacco).
*To target a particular audience (e.g. Digital or DEC sponsored opera and ballet in London to get
its name across to the captains of industry who favoured this form of entertainment. The
company was being ignored due to the dominance of IBM in the corporate computer market).
*To generate goodwill in the community (such as a local manufacturer sponsoring the local
football team).
*To support dealer and customer relations where hospitality and entertainment facilities are
included in the sponsorship deal.

3002/2/07/MA 14
QUESTION 10

Describe press advertising with particular reference to business to business companies including:

(a) target audiences and key messages (10 marks)

(b) media (stating actual publications) (10 marks)

(Total 20 marks)

MODEL ANSWER TO QUESTION 10

(a) Importance aspect of ‘selling in’ as part of the ‘Push/Pull Process’ of ensuring that the trade -
wholesalers, distributors and retailers - is motivated to stock - on a ‘sale or return’ basis - or even
buy the product to sell on to customers and consumers.

As the trade consists of enterprising business people, they are not concerned that the product
can fulfil their physical needs or satisfy their psychological wants. That products offer security
and safety, social acceptance, status and esteem is only of concern if these qualities will make
the product saleable to their end customers and they will provide income and profit.

Consequently, trade advertisements are likely to feature the price that the customers are
prepared to pay (the recommended retail price or RRP) and the discounts that are available for
purchasing in bulk - the difference being the margin or profit that the distributor, wholesaler or
retailer can expect. It may include the results of any market research indicating the potential
acceptance and demand within the market-place.

Any additional incentives that the manufacturer can provide would also be outlined. These may
include the promotional support that is planned in terms of launch advertising (with details of the
advertising budget and the scheduling of adverts and commercials). It might also include sales
promotion schemes to encourage customers and consumers to try and buy the product. It might
also include incentives for the stockist and his staff (to encourage them to push the product at the
expense of competing brands).

Trade advertising would also state the POS and display material available as well as any in-store
demonstrations that were planned. For consumer durables, it may also include leaflets,
brochures and manuals that can be supplied while it may incorporate the possibility of credit
facilities which will stimulate purchase but with a gain for the stockist.

(b) The above is not the kind of information that manufacturers would want their customers to read
so there is specialist media to carry such advertisements – called ‘the trade press’. In the UK,
there are a whole range of publications targeted at the wholesalers, distributors and retailers.
These include ‘The Grocer’ for consumables such as foodstuffs and household products;
‘Chemist and Druggist’ for over-the-counter (OTC) and non-ethical drugs medicines and
healthcare products as well as cosmetics and haircare products sold in chemist shops.
(Cosmetics, beauty products and perfume are also promoted to the trade by ‘Soap, Perfumery
and Cosmetics’ magazine).

Adverts promoting products like sweets, cigarettes and newspapers to newsagents, tobacconists
and corner shops are carried by publications such as ‘CTN - Confectionery, Tobacco, News’
which would also feature any other products that could be profitably supplied via these outlets.
Other magazines targeted at the trade include journals such as ‘Electrical Wholesaler’ which
promotes electrical appliances to the retailer and distributor.

3002/2/07/MA 15 CONTINUED ON NEXT PAGE

MODEL ANSWER TO QUESTION 10 CONTINUED

Trade magazines may be bought on subscription but as the manufacturers and suppliers want
and need such publications to target their intermediate customers, they would support them by
media advertising (with the editorial influenced, if not supplied by manufacturers’ and suppliers’
public relations departments). The readership would be built up by the controlled circulation.
Journals are supplied free-of-charge to readers who the publishers know have buying or
specifying power but this has to be justified for it to be certified by the Audit Bureau of Circulation.
Although, potential readers can register to receive copies, this is subject to strict criteria which
involves them completing an application form (usually bound into the magazine) on which they
must state their names, company and business address contact details together with information
about their position/job title. It will also require details on their responsibilities which includes the
power to purchase or specify products or services on behalf of their company.

Trade advertising is not the only promotional technique that the manufacturers and suppliers
would use as they would also employ sales representatives to call on store buyers and owners.
They may also utilise direct mail as a way of communicating all or some of the aspects mentioned
here. Trade exhibitions are also an important medium for bringing products to the attention of
potential wholesalers, distributors and retailers either on a national or international scale.

3002/2/07/MA 16 © Education Development International plc 2007