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MKTG Management Chapter 17 (FINAL)

B
1) ________ refers to the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell.
A) Human resource development
B) Marketing communications
C) Financial management
D) Operations management
E) Planning
A
2) Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media?
A) advertising
B) personal selling
C) sales promotion
D) direct marketing
E) public relations
E
3) Which of the following elements of the marketing communications mix involves a variety of short-term incentives to encourage trial or purchase of a product or service?
A) advertising
B) direct marketing
C) public relations
D) personal selling
E) sales promotion
C
4) Which of the following is an example of a trade promotion?
A) free samples
B) discount coupons
C) display allowances
D) contests for sales reps
E) premiums
C
5) Which of the following is an example of a business and sales force promotion?
A) advertising allowance
B) free samples
C) contests for sales reps
D) display allowance
E) discount coupons
E
6) ________ refer to the marketing communications element that involves company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers.
A) Publicity campaigns
B) Trade promotions
C) Advertisements
D) Public relations
E) Events and experiences
B
7) Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company’s image or its individual product communications?
A) direct marketing
B) public relations and publicity
C) personal selling
D) advertising
E) sales promotion
C
8) Which of the following elements of the marketing communication mix involves use of mail, telephone, fax, e-mail, or Internet to communicate with or solicit response or dialogue from specific customers and prospects?
A) advertising
B) personal selling
C) direct marketing
D) public relations
E) sales promotion
D
9) ________ is an element of the marketing communications mix that involves online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services.
A) Personal selling
B) Direct marketing
C) Sales promotion
D) Interactive marketing
E) Public relations
C
10) ________ is an element of the marketing communications mix that involves people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services.
A) Personal selling
B) Sales promotion
C) Word-of-mouth marketing
D) Public relations
E) Advertising
E
11) Which of the following elements of the marketing communications mix involves face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders?
A) advertising
B) sales promotion
C) word-of-mouth marketing
D) public relations
E) personal selling
A
12) Which of the following is an example of an advertising platform?
A) posters and leaflets
B) company magazines
C) fairs and trade shows
D) sales presentations
E) continuity programs
C
13) Which of the following is an example of an events and experiences platform?
A) fairs and trade shows
B) continuity programs
C) factory tours
D) sales presentations
E) community relations
A
14) Which of the following is an example of a public relations and publicity communication platform?
A) lobbying
B) company museums
C) street activities
D) company blogs
E) incentive programs
D
15) Which of the following is an example of an interactive marketing communication platform?
A) product demonstrations
B) factory tours
C) company museums
D) TV shopping
E) community relations
A
16) Which of the following is an example of a word-of-mouth marketing communication platform?
A) chat rooms
B) billboards
C) factory tours
D) incentive programs
E) trade shows
A
17) Which of the following is an example of a personal selling communication platform?
A) sales presentations
B) company blogs
C) telemarketing
D) TV shopping
E) press kits
B
18) The starting point in planning marketing communications is a ________ that profiles all interactions customers in the target market may have with the company and all its products and services.
A) marketing budget
B) communications audit
C) market research program
D) publicity campaign
E) product launch
D
19) Along which of the following parameters should marketers evaluate communication options when building brand equity?
A) popularity
B) innovativeness
C) technological sophistication
D) efficiency
E) novelty
B
20) Which of the following factors found in the macromodel of the communications process refers to random and competing messages that may interfere with the intended communication?
A) negative feedback
B) noise
C) attenuation
D) phase lag
E) selective distortion
D
21) Which of the following represents one of the major tools for effective communication in the macromodel of the communications process?
A) feedback
B) noise
C) receiver
D) message
E) sender
A
22) Which of the following is the correct order of stages that a buyer is assumed to pass through, by the four classic response hierarchy models?
A) cognitive stage-affective stage-behavioral stage
B) affective stage-cognitive stage-behavioral stage
C) behavioral stage-affective stage-cognitive stage
D) cognitive stage-behavioral stage-affective stage
E) affective stage-behavioral stage-cognitive stage
C
23) LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers, for both individual consumers and businesses. Which of the following sequences of consumer responses is relevant as a marketing communications model for LCH’s products?
A) learn-do-feel
B) feel-learn-do
C) do-feel-learn
D) feel-do-learn
E) do-learn-feel
C
24) All response hierarchy models of the communication process assume the buyer passes through cognitive, affective, and behavioral stages, in that order. Which of the following product categories lends itself most appropriately to such a “learn-feel-do” sequence?
A) clothes
B) dish-washers
C) real estate
D) personal computer
E) air tickets
D
25) When planning communications for a detergent brand, which of the following sequences of buyer responses should the marketer choose on which to base the communications model?
A) feel-do-learn
B) do-feel-learn
C) feel-learn-do
D) learn-do-feel
E) learn-feel-do
D
26) Which of the following steps in the innovation-adoption model of marketing communications corresponds to the cognitive stage that a buyer passes through?
A) interest
B) evaluation
C) trial
D) awareness
E) adoption
C
27) According to the hierarchy-of-effects model, which of the following corresponds to the behavioral stage that a buyer passes through?
A) awareness
B) knowledge
C) purchase
D) preference
E) conviction
E
28) According to the hierarchy-of-effects model, which of the following corresponds to the affective stage that a buyer passes through?
A) attention
B) exposure
C) reception
D) adoption
E) conviction
C
29) Which of the following sequences accurately represents the hierarchy-of-effects model of marketing communications?
A) attention-interest-desire-action
B) awareness-interest-evaluation-trial-adoption
C) awareness-knowledge-liking-preference-conviction-purchase
D) exposure-reception-cognitive response-attitude-intention-behavior
E) knowledge-persuasion-decision-implementation-confirmation
A
30) Which is the first step to be performed by a marketer in developing effective marketing communications?
A) identifying a target audience
B) determining the objectives
C) establishing the budget
D) deciding on the media mix
E) selecting the communication channels
A
31) Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________.
A) brand knowledge
B) purchase patterns
C) demographic characteristics
D) income levels
E) psychographic characteristics
E
32) Which of the following is the marketing communications objective for a new-to-the-world product, such as electric cars?
A) enhancing brand awareness
B) developing brand attitude
C) increasing brand purchase intention
D) encouraging repeat purchases
E) establishing category need
D
33) When Apple introduced the iPod in October, 2001, it was the first-of-its-kind product that offered sizable storage capacity for songs and a portable device that was not seen before in the market. Which of the following is most likely to have been the marketing communications objective for the iPod at the time of its introduction?
A) developing brand awareness
B) building customer traffic
C) enhancing purchase actions
D) establishing product category
E) enhancing firm image
A
34) One of the possible objectives of marketing communications is helping consumers evaluate a brand’s perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need?
A) normal depletion
B) sensory gratification
C) social approval
D) intellectual stimulation
E) value enhancement
B
35) One of the possible objectives of marketing communications is helping consumers evaluate a brand’s perceived ability to meet a currently relevant need. Which of the following is a positively oriented relevant brand need?
A) problem removal
B) social approval
C) normal depletion
D) problem avoidance
E) incomplete satisfaction
C
36) One of the possible objectives of marketing communications is helping consumers evaluate a brand’s perceived ability to meet a currently relevant need. Which of the following relevant brand needs is emphasized by an advertisement for dish-washing gloves?
A) social approval
B) intellectual stimulation
C) problem removal
D) normal depletion
E) sensory gratification
B
37) One of the possible objectives of marketing communications is helping consumers evaluate a brand’s perceived ability to meet a currently relevant need. Which of the following relevant brand needs is most likely emphasized by an advertisement for a luxury car?
A) problem removal
B) sensory gratification
C) normal depletion
D) intellectual stimulation
E) problem avoidance
A
38) Creative strategies refer to _______.
A) the way marketers translate their messages into a specific communication
B) the amount of creative content in a communications message
C) the degree of innovation involved in the marketing of a product
D) the novelty of a marketing communication
E) the type of medium used to deliver a marketing communication
B
39) A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or benefits.
A) aesthetic
B) informational
C) bandwagon
D) emotional
E) transformational
B
40) A(n) ________ appeal is a creative strategy that elaborates on a nonproduct-related benefit or image.
A) logical
B) transformational
C) reasonable
D) informational
E) rational
D
41) Which of the following ads depict a transformational appeal?
A) Thompson Water Seal can withstand intense rain, snow, and heat
B) DIRECTV offers better HD options than cable or other satellite operators
C) NBA phenomenon LeBron James pitching Nike, Sprite, and McDonald’s
D) Pringles advertised “Once You Pop, the Fun Don’t Stop” for years
E) Excedrin stops the toughest headache pain
A
42) Which of the following ads depict an informational appeal?
A) Thompson Water Seal can withstand intense rain, snow, and heat
B) The California Milk Processor Board ran the successful “Got Milk?” ad to boost declining sales
C) VW advertised to active, youthful people with its famed “Drivers Wanted” campaign
D) Pringles advertised “Once You Pop, the Fun Don’t Stop” for years
E) KFC has marketed its fast-food products under the slogan, “Finger Lickin’ Good”
B
43) ________ is one of the sources of a spokesperson’s credibility that refers to the specialized knowledge that he or she possesses to claim.
A) Trustworthiness
B) Expertise
C) Acquaintance
D) Likability
E) Professionalism
D
44) ________ is a source of a spokesperson’s credibility that describes how objective and honest the spokesperson is perceived to be.
A) Likability
B) Expertise
C) Experience
D) Trustworthiness
E) Compassion
C
45) Which of the following sources of a spokesperson’s credibility describes his or her attractiveness?
A) expertise
B) trustworthiness
C) likability
D) integrity
E) experience
D
46) Which of the following marketing communications principles implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience?
A) principle of closure
B) principle of duality
C) principle of delegation
D) principle of congruity
E) principle of neutrality
C
47) Which of the following is an example of a personal communications channel?
A) public relations
B) events and experiences
C) interactive marketing
D) sales promotions
E) advertising
C
48) Which of the following personal communication channels consist of company salespeople contacting buyers in the target market?
A) expert channels
B) social channels
C) advocate channels
D) independent channels
E) informal channels
C
49) Which of the following personal communications channels consist of family members, neighbors, friends, and associates talking to target buyers?
A) expert channels
B) advocate channels
C) social channels
D) formal channels
E) sponsored channels
A
50) Top Gear is an award-winning British television series about motor vehicles, mainly cars. It is presented by a set of hosts who test drive new cars and provide reviews on the cars’ performance, their prices, and other factors. Which of the following personal communications channels is Top Gear closest to in description?
A) expert channel
B) formal channel
C) social channel
D) sponsored channel
E) advocate channel
C
51) Which of the following is a form of earned media for marketing communication messages?
A) experts providing product reviews
B) celebrities endorsing products
C) social network discussions about products
D) company salespeople contacting target buyers
E) sponsored advertisements promoting products
C
52) Personal influence in marketing communications carries great weight when ________.
A) the product being marketed is a convenience item
B) the purchase of the product is considered to be safe and risk-free
C) the product suggests something about the user’s status or taste
D) the product being marketed is purchased on a frequent basis
E) the product or service in questions is used without being recommended by others
C
53) Which of the following is a form of mass communications channel?
A) interactive marketing
B) personal selling
C) public relations
D) word-of-mouth marketing
E) sales presentations
D
54) Which of the following statements is true of the two-step approach to mass communications?
A) The influence of mass media on public opinion is more direct, powerful, and automatic than marketers have supposed.
B) Communications through mass media bypasses opinion leaders and reaches the individual buyers.
C) The two-step flow supports the notion that consumption styles are primarily influenced by a “trickle-down” or “trickle-up” effect from mass media.
D) According to the two-step flow, people interact primarily within their own social groups and acquire ideas from opinion leaders in their groups.
E) Two-step communication suggests that mass communicators should direct messages to groups of buyers who interpret the message and act accordingly.
D
55) Which of the following is a characteristic of the affordable method of establishing a marketing communications budget?
A) fixed annual budget
B) suitable for long-range planning
C) priority given to role of promotion as an investment
D) calculated to reflect what the company can spare for marketing communications
E) based on the immediate impact of promotion on sales volume
E
56) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company’s marketing communications budget. After extensive discussions, they decide that the size of the budget will be calculated as a fraction of the overall turnover. What method did Kelly and Trent use to arrive at the marketing communications budget?
A) affordable method
B) objective-and-task method
C) competitive-parity method
D) activity-based method
E) percentage-of-sales method
A
57) Which of the following is an advantage of using the percentage-of-sales method to determine the marketing communications budget?
A) The percentage-of-sales method encourages stability when competing firms spend approximately the same portion of their sales on communications.
B) The percentage-of-sales method views sales as the determiner of communications rather than as the result.
C) The percentage-of-sales method leads to a budget set by market opportunities rather than the availability of funds.
D) The percentage-of-sales method encourages experimentation with countercyclical communication or aggressive spending.
E) The percentage-of-sales method encourages building the communication budget by determining what each product and territory deserves.
D
58) Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget?
A) It discourages stability when competing firms spend approximately the same percentage of their sales on communications.
B) By using a percentage-of-sales method, communication expenditures tend to be extremely high irrespective of what a company can afford.
C) It discourages management from thinking of the relationship among communication cost, selling price, and profit per unit.
D) Dependence of the percentage-of-sales method on year-to-year sales fluctuations interferes with long-range planning.
E) The percentage-of-sales method views sales as the result in itself rather than the determiner of communications.
B
59) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company’s marketing communications budget. They pore over the sales reports and other financial records and determine the amount of resources they can spare for marketing communications, after resources have been allocated to other functions, such as R&D, logistics, etc. What method did Kelly and Trent use to arrive at the marketing communications budget?
A) objective-and-task method
B) affordable method
C) competitive-parity method
D) activity-based method
E) percentage-of-sales method
C
60) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company’s marketing communications budget. They decide to trust in the prevailing collective wisdom of the industry as a whole, and not wanting to instigate a communications war, settle on spending only as much as their nearest market rival does on marketing communications. What method did Kelly and Trent use to arrive at the marketing communications budget?
A) objective-and-task method
B) affordable method
C) competitive-parity method
D) activity-based method
E) percentage-of-sales method
D
61) Marketing communications budgets tend to be higher when ________.
A) there is high channel support
B) there exists hardly any change in the marketing program over time
C) there are infrequent product purchases in large quantities
D) there are differentiated products and nonhomogeneous customer needs
E) there are many easily-reachable customer spread over small geographic territories
D
62) Which of the following benefits is offered by sales promotion tools?
A) Sales promotion tools are more authentic and credible to buyers than others such as advertising, public relations, and personal selling.
B) Sales promotion tools can reach prospects who prefer to avoid mass media and targeted promotions.
C) Sales promotion tools are typically an indirect form of “soft-sell” and hence, better received by customers.
D) Sales promotion tools incorporate some concession, inducement, or contribution that gives value to the consumer.
E) Sales promotion tools allow buyers personal choices and encourage them to respond directly.
A
63) Which of the following statements correctly reflects a characteristic of public relations as a marketing communications tool?
A) Public relations can reach prospects who prefer to avoid mass media and targeted promotions.
B) They incorporate some concession, inducement, or contribution that gives value to the consumer.
C) Given their live, real-time quality, public relations tools are more actively engaging for consumers.
D) Public relations communications can be prepared to appeal to the addressed individual.
E) Public relations tools create an immediate and interactive episode between two or more persons.
E
64) Janet is a marketing manager with a Injoos, a company that manufactures packaged fruit juices. Knowing that there exist several other companies in the market that offer similar products, Janet decides to build a customer base from among those who prefer to avoid mass media and other targeted promotions. Which of the following marketing communications tools would be her best option to build a favorable impression among the prospective customers?
A) advertising
B) personal selling
C) sales promotions
D) direct marketing
E) public relations
A
65) Which of the following marketing communications tools is most effective at the later stages of the buying process?
A) personal selling
B) public relations
C) advertising
D) sales promotions
E) direct marketing
D
66) Which of the following statements is true of the role of advertising in business markets?
A) Advertising is unsuitable for explaining any new features that a product might have.
B) Sales calls are more economical than reminder advertisements.
C) Sales calls are more effective than advertisements at reminding customers how to use a product and reassure them about their purchase.
D) Sales representatives can use copies of the company’s ads to legitimize their company and products.
E) Advertisements are the least preferred tools when intended to generate leads for sales representatives.
C
67) Which of the following circumstances are best suited for the use of personal selling?
A) when the products used are simple and easy-to-use
B) when there is minimal risk involved in buying or using the products
C) when the market has fewer and larger sellers
D) when the products being marketed are inexpensive and easily available
E) when prospective customers are spread across a wide geographic area
D
68) Which of the following marketing communications tools is most effective at influencing customers at the conviction stage of buyer readiness?
A) advertising
B) publicity
C) sales promotion
D) personal selling
E) events and experiences
E
69) Advertising and publicity tools play the most important roles in influencing buying decisions at the ________ stage of buyer readiness.
A) comprehension
B) conviction
C) ordering
D) reordering
E) awareness-building
B
70) Which of the following tools or combinations of tools is most influential at the comprehension stage of buyer readiness?
A) sales promotion and advertising
B) advertising and personal selling
C) publicity and personal selling
D) reminder advertising and publicity
E) sales promotion and personal selling
E
71) Which of the following marketing communications tools has the highest cost-effectiveness in the introduction stage of the product life cycle?
A) personal selling
B) sales promotion
C) interactive marketing
D) direct marketing
E) events and experiences
C
72) Which of the following marketing communications tools is most influential at the maturity stage of a product’s life cycle?
A) sales promotions
B) direct marketing
C) advertising
D) publicity
E) interactive marketing
D
73) Luke is considering the various options available to him to promote an energy-drink, Turbozade, that is seeing decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should Luke focus marketing efforts on to keep the sales volume up?
A) advertising
B) direct marketing
C) events and experiences
D) sales promotions
E) publicity
D
74) Which of the following marketing communications tools is most influential at the reordering stage of buyer readiness?
A) events and experiences
B) publicity
C) direct marketing
D) sales promotion
E) interactive marketing
B
75) ________ is a measure of communications effectiveness that describes the percentage of target market exposed to a communication.
A) Frequency
B) Reach
C) Width
D) Depth
E) Range
B
76) ________ refers to a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.
A) Brand engagement
B) Integrated marketing communications
C) Market research
D) Customerization
E) Marketing research
true
77) Marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things.
false
78) The rapid diffusion of multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital video recorders (DVRs) have augmented the effectiveness of the mass media.
false
79) The pervasive nature of advanced communications technologies, such as the Internet, has resulted in greater exposure of customers to advertising content than it was in the 1960s.
true
80) Marketing communications in almost every medium and form have been on the rise, and some consumers feel they are increasingly invasive.
false
81) In this new communication environment, advertising is often the single-most important element of a marketing communications program for sales and building brand and customer equity
false
82) Personal selling refers to people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services.
true
83) In building brand equity, marketers should be “media neutral” and evaluate all communication options on effectiveness and efficiency
false
84) The less the sender’s field of experience overlaps that of the receiver, the more effective the message is likely to be.
false
85) All the response hierarchy models assume that a buyer passes through affective, cognitive, and behavioral stages, in that order
true
86) A “do-feel-learn” response sequence is considered appropriate when the audience has high involvement but perceives little or no differentiation within the product category.
true
87) Though the target audience can be profiled in terms of demographic, psychographic, or behavioral segments, it is often useful to do so in terms of usage and loyalty.
true
88) Marketers can set communications objectives at any level of the hierarchy-of-effects model.
true
89) The marketing communications objective of “brand attitude” refers to helping consumers evaluate the brand’s perceived ability to meet a currently relevant need.
false
90) Problem removal and normal depletion are examples of positively oriented relevant brand needs.
false
91) Communications effectiveness depends solely on the content of a message, irrespective of how it is expressed.
true
92) Volkswagen’s famed “Drivers Wanted” advertising campaign aimed at attracting active, youthful people uses a transformational appeal as its creative strategy.
false
93) One-sided presentations that praise a product are found to be more effective than two-sided arguments that also mention shortcomings.
true
94) Two-sided messages are more effective with more educated audiences and those who are initially opposed.
true
95) In a one-sided message, presenting the strongest argument first arouses attention and interest, important in media where the audience often does not attend to the whole message.
false
96) Fear appeals work best when they are rather strong and reinforce what the audience already believes.
true
97) If the messages are too discrepant, audiences will counterargue and disbelieve them.
true
98) Motivational or “borrowed interest” devices—such as the presence of cute babies, frisky puppies, popular music, or provocative sex appeals—are often employed to attract attention and raise involvement with an ad.
true
99) Celebrities are likely to be effective when they are credible or personify a key product attribute.
false
100) Trustworthiness is that source of a spokesperson’s credibility that describes his or her attractiveness.
false
101) The most highly credible source would score high on at least two of the three dimensions—expertise, trustworthiness, and likability.
true
102) The principle of congruity implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience.
true
103) Personal communications channels derive their effectiveness from individualized presentation and feedback and include direct and interactive marketing, word-of-mouth marketing, and personal selling.
false
104) Personal influence carries especially great weight when products are inexpensive, risk-free, or purchased frequently.
true
105) Although personal communication is often more effective than mass communication, mass media might be the major means of stimulating personal communication.
false
106) The two-step flow supports the notion that consumption styles are primarily influenced by a “trickle-down” or “trickle-up” effect from mass media.
true
107) Two-step communication suggests that mass communicators should direct messages specifically to opinion leaders and let them carry the message to others.
false
108) The affordable method accounts for the role of promotion as an investment and the immediate impact of promotion on sales volume.
true
109) The percentage-of-sales budgeting method encourages management to think of the relationship among communication cost, selling price, and profit per unit.
false
110) The percentage-of-sales method leads to a budget set by market opportunities rather than by the availability of funds.
true
111) Marketing communications budgets tend to be higher when there is much change in the marketing program over time and more complex customer decision making.
true
112) Advertising allows the buyer to receive and compare the messages of various competitors.
false
113) Public relations is incapable of reaching prospects who prefer to avoid mass media and targeted promotions.
true
114) In general, personal selling is used more with complex, expensive, and risky goods and in markets with fewer and larger sellers.
false
115) Advertising and publicity play the most important roles in the conviction stage of buyer readiness.
true
116) In the growth stage of a product’s life cycle, demand has its own momentum through word of mouth and interactive marketing
true
117) Media coordination can occur across and within media types, but marketers should combine personal and nonpersonal communications channels through multiple-vehicle, multiple-stage campaigns to achieve maximum impact and increase message reach and impact.
true
118) By using full-service marketing communications agencies, integrated and more effective marketing communications at a much lower total communications cost can be achieved.
Answer: Technology and other factors have profoundly changed the way consumers process communications, and even whether they choose to process them at all. The rapid diffusion of multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital video recorders (DVRs) have eroded the effectiveness of the mass media. In 1960, a company could reach 80 percent of U.S. women with one 30-second commercial aired simultaneously on three TV networks: ABC, CBS, and NBC. Today, the same ad would have to run on 100 channels or more to achieve this marketing feat. Consumers not only have more choices of media, they can also decide whether and how they want to receive commercial content.
119) Briefly describe the current marketing communications environment.

Answer: The marketing communications mix consists of eight major modes of communication:

1. Advertising — Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media.
2. Sales promotion — A variety of short-term incentives to encourage trial or purchase of a product or service including consumer promotions, trade promotions, and business and sales force promotions.
3. Events and experiences — Company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers, including sports, arts, entertainment, and cause events as well as less formal activities.
4. Public relations and publicity — A variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company’s image or its individual product communications.
5. Direct marketing — Use of mail, telephone, fax, e-mail, or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects.
6. Interactive marketing — Online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services.
7. Word-of-mouth marketing — People-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services.
8. Personal selling — Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders.

120) What are the elements of the marketing communications mix?

Answer:

The macromodel of the communications process has nine key factors in effective communication. Two represent the major parties — sender and receiver. Two represent the major tools — message and media. Four represent major communication functions — encoding, decoding, response, and feedback. The last element in the system is noise, random and competing messages that may interfere with the intended communication. Senders must know what audiences they want to reach and what responses they want to get. They must encode their messages so the target audience can decode them. They must transmit the message through media that reach the target audience and develop feedback channels to monitor the responses. The more the sender’s field of experience overlaps that of the receiver, the more effective the message is likely to be.

121) Briefly describe the macromodel of the marketing communications process.
Answer: The macromodel of the communications process comprises of nine key factors in effective communication. Two represent the major parties – sender (Gravity) and receiver (audience). Two represent the major tools – message (content of the ad) and media (print, TV, radio, etc). Four represent the major communications functions – encoding (creation and transmission of the ad by Gravity), decoding (the reception and comprehension of the ad by the audience), response (either ignoring the message or buying Gravity shirts), and feedback (customers providing information about the ad to measure its effectiveness). The last element is noise, random and competing messages that may interfere with the intended communication. Examples of noise in this case could be misunderstood messages from the ad, similar ads from competitors, etc.
122) Gravity is a company that markets customized T-shirts to its customers. Gravity runs an ad that seeks to attract more customers. Apply the macromodel of the communications process to describe the communication between Gravity and its target customers.

Answer: All the four classic response hierarchy models assume that the buyer passes through cognitive (learn), affective (feel), and behavioral stages (do), in that order. Since buying a car, used or new, represents a significant investment for the buyer, it can be said that the buyer has involvement in the purchase decision and perceives high differentiation with the product category. Hence a “learn-feel-do” sequence is considered appropriate for the used-car showroom account.

Similarly, a buyer intending to purchase home appliances, such as a dishwasher or a refrigerator, has high involvement in the purchase decision, even though he perceives little differentiation within the product category. Hence, a “do-feel-learn” approach may be appropriate when planning communications for the home appliances account.

Finally, a buyer has low involvement in purchasing soap that has very little differentiation within its category. For the soap company account, Alan should consider a “learn-do-feel” sequence for planning communications.

123) Alan is an executive with an ad agency that has been entrusted with accounts for a used-car showroom, a home appliances maker, and a soap company. With reference to response hierarchy models, how does Alan plan communication strategies for the three accounts effectively?
Answer: Student answers may vary.
Since customers are comfortable with their present electronic razors, Derek’s communications strategy should aim to build preference for Glazers. Customers have already developed a liking for Glazers. So, Derek should focus on comparing the quality of Glazers with that of competing brands. This can be done by illustrating the improved features of Glazers that provide clean and hassle-free use. Derek could do well to compare the Glazers with other brands in terms of value, utility, and performance factors as well.
124) Derek is working on promoting his company’s Glazer brand of electronic razors. Preliminary surveys have revealed that even though a sizable portion of the target market has developed a liking for the product due to innovative advertising, few customers would actually consider replacing their current razors with Glazers. How can Derek modify the communications program to get customers to favor Glazers over other brands?
Answer: Student answers may vary.
Derek’s task, once the intent to make a purchase has been fostered in the consumers, is to lead the them to the actual buying action. This can be achieved by offering the razors at a low introductory purchase to encourage initial use among customers, offering a discount on the price, or holding a promotional event where they can actually try out the product first-hand.
125) Derek is working on promoting his company’s Glazer brand of electronic razors. Market research suggests that the target audience possesses an intent to use Glazers, but is dithering over actually making the purchase. How can Derek modify the communications program to get customers to purchase Glazer razors?
Answer: Micromodels of marketing communications concentrate on consumers’ specific responses to communications. All the response hierarchy models assume the buyer passes through cognitive, affective, and behavioral stages, in that order. This “learn-feel-do” sequence is appropriate when the audience has high involvement with a product category perceived to have high differentiation, such as an automobile or house. An alternative sequence, “do-feel-learn,” is relevant when the audience has high involvement but perceives little or no differentiation within the product category, such as an airline ticket or personal computer. A third sequence, “learn-do-feel,” is relevant when the audience has low involvement and perceives little differentiation, such as with salt or batteries. By choosing the right sequence, the marketer can do a better job of planning communications.
126) Provide a general description of the four classic response hierarchy models.
Answer: To increase the odds for a successful marketing communications campaign, marketers must attempt to increase the likelihood that each step occurs. For example, the ideal ad campaign would ensure that:
1. The right consumer is exposed to the right message at the right place and at the right time.
2. The ad causes the consumer to pay attention but does not distract from the intended message.
3. The ad properly reflects the consumer’s level of understanding of and behaviors with the product and the brand.
4. The ad correctly positions the brand in terms of desirable and deliverable points-of-difference and points-of-parity.
5. The ad motivates consumers to consider purchase of the brand.
6. The ad creates strong brand associations with all these stored communications effects so they can have an impact when consumers are considering making a purchase.
127) What are the features of an ideal advertising campaign?
Answer: 1. Identify target audience
2. Determine objectives
3. Design communications
4. Select channels
5. Establish budget
6. Decide on media mix
7. Measure results
8. Manage integrated marketing communications
128) What are the steps involved in developing effective marketing communications?
Answer: The objective for Nissin’s marketing communications objective should be to build brand awareness, i.e. fostering the consumer’s ability to recognize or recall the brand within the category, in sufficient detail to make a purchase. Recognition is easier to achieve than recall—consumers asked to think of a brand of frozen entrées are more likely to recognize Stouffer’s distinctive orange packages than to recall the brand. Brand recall is important outside the store; brand recognition is important inside the store. Brand awareness provides a foundation for brand equity.
129) When asked about their preferred brand of instant noodles outside a supermarket setting, customers could not remember Nissin’s name, but relied on the distinct packaging to help them spot the noodles while shopping. Describe how this problem can be addressed through the objective of Nissin’s marketing communications.
Answer: Brand awareness refers to fostering the consumer’s ability to recognize or recall the brand within the category, in sufficient detail to make a purchase. Recognition is easier to achieve than recall. Brand recall is important outside the store; brand recognition is important inside the store. Brand awareness provides a foundation for brand equity.
130) Write a short note on “brand awareness” as an objective of marketing communications.

Answer: Communicators use negative appeals such as fear, guilt, and shame to get people to do things (brush their teeth, have an annual health checkup) or stop doing things (smoking, abusing alcohol, overeating). Fear appeals work best when they are not too strong, when source credibility is high, and when the communication promises, in a believable and efficient way, to relieve the fear it arouses. Messages are most persuasive when moderately discrepant with audience beliefs. Stating only what the audience already believes at best just reinforces beliefs, and if the messages are too discrepant, audiences will counterargue and disbelieve them.

Communicators also use positive emotional appeals such as humor, love, pride, and joy. Motivational or “borrowed interest” devices—such as the presence of cute babies, frisky puppies, popular music, or provocative sex appeals—are often employed to attract attention and raise involvement with an ad. These techniques are thought necessary in the tough new media environment characterized by low-involvement consumer processing and competing ad and programming clutter. Attention-getting tactics are often too effective. They may also detract from comprehension, wear out their welcome fast, and overshadow the product.

131) Compare and contrast the use of negative and positive appeals in advertising messages.
Answer: Student answers may vary.
Negative appeals such as fear, guilt, and shame are used by communicators to get people to do things (brush their teeth) or stop doing things (smoking). The cooking oil ad can use fear appeals to get consumers to start using its product. This can be achieved by depicting health risks associated with using cooking oils other than Savola, such as hypertension, heart attacks, etc. Guilt appeal can be used to depict a family grieving the death of someone who did not use Savola. Shame appeal could illustrate the case of a parent who cannot play catch with his kids because his fitness is compromised by not using Savola.However, the ad agency should take care to ensure that the negative appeals do not come across as too strong to the audiences, the credibility of the source in the ads is high, and the ad promises to relieve fears of health risks in a believable and efficient way. The ad is most persuasive when moderately discrepant with audience beliefs. If the ad merely says that using unhealthy oil leads to health risks, it only serves to reinforce the belief, and if the message exaggerates the health risks of not using Savola, audiences will only counterargue and disbelieve the ad.

132) An ad agency has landed an account for Savola, a brand of healthy cooking oil. Describe how the ad can incorporate negative appeals in its messages effectively.
Answer: Celebrities are likely to be effective when they are credible or personify a key product attribute. Tiger Woods’ personal problems have resulted in the erosion of his credibility as a product’s spokesperson. The three most important sources of a spokesperson’s credibility are expertise, trustworthiness, and likability. Following revelations about his personal life and his past indiscretions, his trustworthiness (how objective and honest the source is perceived to be) was negatively affected and also his likability (the source’s attractiveness). The most highly credible source would score high on all three dimensions—expertise, trustworthiness, and likability. Scoring high on only one or two dimensions would still negatively affect his credibility. Also, the principle of congruity implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience. The converse also holds true, i.e. a product’s positive brand image is likely to be hit by virtue of being associated with a communicator with a negative image.
133) Tiger Woods’ endorsement deals were terminated by a host of sponsors, including Accenture, Gillette, AT&T, and General Motors. What are the reasons for these companies dropping Woods from their promotional efforts?
Answer: Personal influence carries especially great weight (1) when products are expensive, risky, or purchased infrequently, and (2) when products suggest something about the user’s status or taste. On that count, life insurance, real estate, health services, automobiles, luxury items, consultation services, etc. can be expected to be significantly influenced by word-of-mouth and endorsements by credible sources.
134) Name a few products for which personal influence plays a significant role in marketing communications.
Answer: Using the objective-and-task method, Derek can arrive at the marketing communications budget by following these steps:
1. The company estimates 50 million potential users and sets a target of attracting 8 percent of the market—that is, 4 million users.
2. The percentage of the market that should be reached by advertising is determined. Derek hopes to reach 80 percent (40 million prospects) with his advertising message.
3. The percentage of aware prospects that should be persuaded to try the brand is then calculated. Derek would be pleased if 25 percent of aware prospects (10 million) tried Glazers. He estimates that 40 percent of all triers, or 4 million people, will become loyal users. This is the market goal.
4. Next, the number of advertising impressions per 1 percent trial rate is estimated. Derek estimates that 40 advertising impressions (exposures) for every 1 percent of the population will bring about a 25 percent trial rate.
5. The number of gross rating points that would have to be purchased is now calculated. A gross rating point is one exposure to 1 percent of the target population. Because Derek wants to achieve 40 exposures to 80 percent of the population, he will want to buy 3,200 gross rating points.
6. Finally, the necessary advertising budget on the basis of the average cost of buying a gross rating point is estimated. To expose 1 percent of the target population to one impression costs an average of $4,500. Therefore, 3,200 gross rating points will cost $14,400,000 (= $4,500 × 3,200) in the introductory year.
135) Derek is working on promoting his company’s Glazer brand of electronic razors. The company estimates 50 million potential users and sets a target of attracting 8 percent of the market. Derek hopes to reach 80 percent of the potential customers with an advertising message. He would be pleased if 25 percent of the prospects that were aware, tried the Glazer. According to further estimates, 40 percent of all triers will become loyal users. If the cost of exposing 1 percent of the target population to one impression is $4500 on an average, determine the necessary advertising budget, according to the objective-and-task method.
Answer: Companies use sales promotion tools—coupons, contests, premiums, and the like—to draw a stronger and quicker buyer response, including short-run effects such as highlighting product offers and boosting sagging sales. Sales promotion tools offer three distinctive benefits:
1. Ability to be attention-getting—They draw attention and may lead the consumer to the product.
2. Incentive—They incorporate some concession, inducement, or contribution that gives value to the consumer.
3. Invitation—They include a distinct invitation to engage in the transaction now.
136) What are the major characteristics of sales promotions as an element of the marketing communications mix?
Answer: Although marketers rely more on sales calls in business markets, advertising still plays a significant role:
1. Advertising can provide an introduction to the company and its products.
2. If the product has new features, advertising can explain them.
3. Reminder advertising is more economical than sales calls.
4. Advertisements offering brochures and carrying the company’s phone number or Web address are an effective way to generate leads for sales representatives.
4. Sales representatives can use copies of the company’s ads to legitimize their company and products.
5. Advertising can remind customers how to use the product and reassure them about their purchase.
137) What is the role of advertising as a communications tool in marketing for business markets?
Answer: Communication tools vary in cost-effectiveness at different stages of buyer readiness. Advertising and publicity play the most important roles in the awareness-building stage. Customer comprehension is primarily affected by advertising and personal selling. Customer conviction is influenced mostly by personal selling. Closing the sale is influenced mostly by personal selling and sales promotion. Reordering is also affected mostly by personal selling and sales promotion, and somewhat by reminder advertising.
138) How do the stages of buyer readiness affect the composition of a product’s marketing communications mix?
Answer: In the introduction stage of the product life cycle, advertising, events and experiences, and publicity have the highest cost-effectiveness, followed by personal selling to gain distribution coverage and sales promotion and direct marketing to induce trial. In the growth stage, demand has its own momentum through word of mouth and interactive marketing. Advertising, events and experiences, and personal selling all become more important in the maturity stage. In the decline stage, sales promotion continues strong, other communication tools are reduced, and salespeople give the product only minimal attention.
139) How do the stages in a product’s life cycle influence the marketing communications mix?
Answer: Mobile phones have relatively short life cycles. In the introduction stage of the phones’ life cycle, advertising, events and experiences, and publicity have the highest cost-effectiveness. In-store personal selling helps improve distribution coverage, while sales promotions such as discounted accessories, freebies etc., help induce trial. In the growth stage, demand has its own momentum through word of mouth and interactive marketing. Web sites are effective tools during the growth stage. As the phones reach the maturity stage, advertising, promotional events and experiences, and personal selling again become more important. As the phones enter the decline stage of their life cycle, sales promotion takes over as the most important tool in the marketing communications mix, even as other communication tools are reduced, and salespeople give the phones only minimal attention.
140) Karl Lipton is marketing communications coordinator for a major electronics manufacturer. He is assigned with charting out a communications strategy for a new range of mobile phones developed by his company. How will Karl’s communications strategy look like over the course of the mobile phones’ life cycle?

Answer: Senior managers want to know the outcomes and revenues resulting from their communications investments. Too often, however, their communications directors supply only inputs and expenses: press clipping counts, numbers of ads placed, media costs. In fairness, communications directors try to translate inputs into intermediate outputs such as reach and frequency (the percentage of target market exposed to a communication and the number of exposures), recall and recognition scores, persuasion changes, and cost-per-thousand calculations. Ultimately, behavior-change measures capture the real payoff.

After implementing the communications plan, the communications director must measure its impact. Members of the target audience are asked whether they recognize or recall the message, how many times they saw it, what points they recall, how they felt about the message, and what are their previous and current attitudes toward the product and the company. The communicator should also collect behavioral measures of audience response, such as how many people bought the product, liked it, and talked to others about it.

141) Briefly describe the process of measuring the results of marketing communications.

Answer: Many companies still rely on only one or two communication tools. This practice persists in spite of the fragmenting of mass markets into a multitude of minimarkets, each requiring its own approach; the proliferation of new types of media; and the growing sophistication of consumers. The wide range of communication tools, messages, and audiences makes it imperative that companies move toward integrated marketing communications. Companies must adopt a “360-degree view” of consumers to fully understand all the different ways that communications can affect consumer behavior in their daily lives.

The American Marketing Association defines integrated marketing communications (IMC) as “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” This planning process evaluates the strategic roles of a variety of communications disciplines—for example, general advertising, direct response, sales promotion, and public relations—and skillfully combines these disciplines to provide clarity, consistency, and maximum impact through the seamless integration of messages.

142) What is integrated marketing communications? What is its significance in the current marketing environment?

Answer: Media coordination can occur across and within media types, but marketers should combine personal and nonpersonal communications channels through multiple-vehicle, multiple-stage campaigns to achieve maximum impact and increase message reach and impact.

Promotions can be more effective when combined with advertising, for example. The awareness and attitudes created by advertising campaigns can increase the success of more direct sales pitches. Advertising can convey the positioning of a brand and benefit from online display advertising or search engine marketing that offers a stronger call to action.

Many companies are coordinating their online and offline communications activities. Web addresses in ads (especially print ads) and on packages allow people to more fully explore a company’s products, find store locations, and get more product or service information. Even if consumers don’t order online, marketers can use Web sites in ways that drive them into stores to buy.

143) How is coordination of media achieved through integrated marketing communications?

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