7. Mass comms 8. Personal comms. 9. New market offerings

Question 1

What are the 5 M’s of advertising?

Answer 1

1. Mission: What are our advertising objectives?
2. Money: How much can we spend and how do we allocate our spending across media types?
3. Message: What should the ad campaign say?
4. Media: What media should we use?
5. Measurement: How should we evaluate the results?

Question 2

What is an advertising objective / goal?

Answer 2

An advertising objective (or goal) is a specific communications task and achievement level to be
accomplished with a specific audience in a specific period of time:

Question 3

Types of mkt. objectives?

Answer 3

• Informative advertising
aims to create brand awareness and knowledge of new products or new features of existing products. Consumer packaged goods companies like Colgate, General Mills, and Unilever will often focus on key product benefits.

• Persuasive advertising
aims to create liking, preference, conviction, and purchase of a product or service. Some persuasive advertising is comparative advertising, which explicitly compares the attributes of two or more brands, such as the Chrysler TV ad for the Dodge Ram that asks, “What if you were to take away horsepower, torque and warranty coverage from a Ram? Well, you’d end up with a Ford F-150.” Comparative advertising works best when it elicits cognitive and affective motivations simultaneously and when consumers are processing advertising in a detailed, analytical mode.

• Reminder advertising aims to stimulate repeat purchase of products and services. Expensive, four-color Coca-Cola ads in magazines remind people to purchase Coca-Cola.

• Reinforcement advertising aims to convince current purchasers they made the right choice. Automobile ads
often depict satisfied customers enjoying special features of their new car

Question 4

What are the factors affecting advertising budgeting?

Answer 4

1. Stage in the product life cycle—New products typically merit large advertising budgets to build awareness and gain consumer trial. Established brands usually are supported by lower advertising budgets, measured as a ratio to sales.
2. Market share and consumer base—High-market-share brands usually require less advertising expenditure as a percentage of sales to maintain share. Building share by increasing market size requires larger expenditures.
3. Competition and clutter—In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard. Even advertisements not directly competitive to the brand create clutter and a need for heavier advertising.
4. Advertising frequency—The number of repetitions needed to put the brand’s message across to consumers has an obvious impact on the advertising budget.
5. Product substitutability—Brands in less-differentiated or commodity-like product classes (beer, soft drinks,
   banks, and airlines) require heavy advertising to establish a unique image.

Question 5

What are the 3 steps for developing an advertising campaign?

Answer 5

1. message generation and evaluation,
2. creative development and execution,
3. and social-responsibility review.

Question 6

What are benefits of TV ads?

Answer 6

TV advertising has two particularly important strengths.

1. First, it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits.
2. Second, it can dramatically portray user and usage imagery, brand personality, and other intangibles.

Question 7

How is importance distributed between the elements in print ads?

Answer 7

Researchers report that the

1. picture,
2. headline, and
3. copy in print ads

matter in that order. The picture must draw attention. The headline must reinforce the picture and lead the person to read the copy. The copy must be engaging and the brand’s name prominent.

Question 8

Which criteria to use to evaluate print Ads?

Answer 8

1. Is the message clear at a glance? Can you quickly tell what the ad is all about?
2. Is the benefit in the headline?
3. Does the illustration support the headline?
4. Does the first line of the copy support or explain the headline and illustration?
5. Is the ad easy to read and follow?
6. Is the product easily identified?
7. Is the brand or sponsor clearly identified?

Question 9

What are advantages / disadvantages of radio?

Answer 9

Advantages:
1. flexibility—stations are very targeted,
2. ads are relatively inexpensive to produce and place, and short closings for scheduling them allow for quick response.
3. Radio can engage listeners through a combination of popular brands, local presence, and strong personalities.
4. It is a particularly effective
medium in the morning;
5. it can also let companies achieve a balance between broad and localized market coverage.
Radio’s obvious disadvantages are its lack of visual images and the relatively passive nature of the consumer

Radio’s obvious disadvantages are its

1. lack of visual images and the
2. relatively passive nature of the consumer processing that results.

Question 10

How to select media?

Answer 10

The steps here are
1. deciding on desired reach, frequency, and impact;
2. choosing among major media types;
3. selecting specific media vehicles;and
4. setting media timing and geographical allocation.
5. Then the marketer evaluates the results of these
decisions.

Question 11

How is the relationship on Reach, Frequency and Impact?

Answer 11

1. Total number of exposures (E).This is the reach times the average frequency; that is, E = R × F, also called
   the gross rating points (GRP).
2. Weighted number of exposures (WE). This is the reach times average frequency times average impact, that is
   WE = R × F × I

Question 12

What are the PLACE options?

Answer 12

1. Billboards
2. Public Spaces
3. Product Placement
4. Point of Purchase

Question 13

How to decide which MEDIA VEHICLE?

Answer 13

1. Audience quality
2. audience-attention probability
3. medium’s editorial quality - prestige and believability
4. ad placement policies and extra services

Question 14

What is macro/micro - scheduling?

Answer 14

The macroscheduling decision relates to seasons and the business cycle.

The microscheduling decision calls for allocating advertising expenditures within a short period to obtain maximum impact.

Question 15

Which factors should be considered in the chosen timing pattern?

Answer 15

1. Buyer turnover
   expresses the rate at which new buyers enter the market; the higher this rate, the more continuous the
   advertising should be.
2. Purchase frequency
   is the number of times the average buyer buys the product during the period; the higher the purchase frequency, the more continuous the advertising should be.
3. The forgetting rate is the rate at which the buyer forgets the brand; the higher the forgetting rate, the more continuous the advertising should be.

Question 16

What are the priorities to choose from when launching a NEW PRODUCT?

Answer 16

• Continuity
means exposures appear evenly throughout a given period. Generally, advertisers use continuous advertising in expanding markets, with frequently purchased items, and in tightly defined buyer categories.

• Concentration
calls for spending all the advertising dollars in a single period. This makes sense for products
with one selling season or related holiday.

• Flighting
calls for advertising during a period, followed by a period with no advertising, followed by a second
period of advertising activity. It is useful when funding is limited, the purchase cycle is relatively infrequent, or
items are seasonal.

• Pulsing is continuous advertising at low levels, reinforced periodically by waves of heavier activity. It draws on the strengths of continuous advertising and flights to create a compromise scheduling strategy. Those who favor pulsing believe the audience will learn the message more thoroughly and at a lower cost to the firm

Question 17

What are the types of “buys”?

Answer 17

1. “national buys”
   when it places ads on national TV networks or in nationally circulated magazines. It makes
2. “spot buys” when it buys TV time in just a few markets or in regional editions of magazines. These markets are called areas of dominant influence (ADIs) or designated marketing areas (DMAs). The company makes
3. “local buys” when it advertises in local newspapers, radio, or outdoor sites.

Question 18

What is Communication-Effect Research?

Answer 18

Communication-effect research
called copy testing, seeks to determine whether an ad is communicating effectively. Marketers should perform this test both before an ad is put into media and after it is printed or broadcast.

Question 19

What is Sales-Effect Research?

Answer 19

What sales are generated by an ad that increases brand awareness by 20 percent and brand preference by 10 percent? The fewer or more controllable other factors such as features and price are, the easier it is to measure advertising’s effect on sales. The sales impact is easiest to measure in direct marketing situations and hardest in brand or corporate image-building advertising.

Question 20

What is Sales Promotion?

Answer 20

Sales promotion, a key ingredient in marketing campaigns, consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Whereas advertising offers a reason to buy, sales promotion offers an incentive.

Question 21

What is a franchise building promotion?

Answer 21

Consumer franchise-building promotions can offer the best of both worlds—building brand equity while moving product. McDonald’s, Dunkin’ Donuts, and Starbucks have given away millions of samples of their new products because consumers like them and they often lead to higher long-term sales for quality products.

Question 22

What is the fastest-growing area in sales promotion?

Answer 22

The fastest-growing area in sales promotions is digital coupons, redeemed via smart phone or downloaded to a consumer’s printer.

Question 23

What are the major decisions in sales-promotion?

Answer 23

1. establish its objectives,
2. select the tools,
3. develop the program,
4. implement and control it, and
5. evaluate the results

Question 24

What are major promotion tools?

Answer 24

Samples: Offer of a free amount of a product or service delivered door to door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer.

Coupons: Certificates entitling the bearer to a stated saving on the purchase of a specific product: mailed, enclosed in other products or attached to them, inserted in magazine and newspaper ads, or emailed or made available online.

Cash Refund Offers (rebates): Provide a price reduction after purchase rather than at the retail shop: Consumer
sends a specified “proof of purchase” to the manufacturer who “refunds” part of the purchase price by mail.

Price Packs (cents-off deals): Offers to consumers of savings off the regular price of a product, flagged on the label or package. A reduced-price pack is a single package sold at a reduced price (such as two for the price of one).

A banded pack is two related products banded together (such as a toothbrush and toothpaste).

Premiums (gifts): Merchandise offered at a relatively low cost or free as an incentive to purchase a particular
product. A with-pack premium accompanies the product inside or on the package. A free in-the-mail premium is mailed to consumers who send in a proof of purchase, such as a box top or UPC code. A self-liquidating premium is sold below its normal retail price to consumers who request it.

Frequency Programs: Programs providing rewards related to the consumer’s frequency and intensity in purchasing the company’s products or services.

Prizes (contests, sweepstakes, games): Prizes are offers of the chance to win cash, trips, or merchandise as a result of purchasing something. A contest calls for consumers to submit an entry to be examined by a panel of judges who will select the best entries. A sweepstakes asks consumers to submit their names in a drawing. A game presents consumers with something every time they buy—bingo numbers, missing letters—which might help them win a prize.

Patronage Awards: Values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors.

Free Trials: Inviting prospective purchasers to try the product without cost in the hope that they will buy.

Product Warranties: Explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customer’s money during a specified period.

Tie-in Promotions: Two or more brands or companies team up on coupons, refunds, and contests to increase pulling power.

Cross-Promotions: Using one brand to advertise another noncompeting brand.
Point-of-Purchase (P-O-P)

Price-Off (off-invoice or off-list): A straight discount off the list price on each case purchased during a stated
time period.

Allowance: An amount offered in return for the retailer’s agreeing to feature the manufacturer’s products in some way. An advertising allowance compensates retailers for advertising the manufacturer’s product. A display allowance compensates them for carrying a special product display.

Free Goods:

Trade Shows and Conventions

Sales Contests:

Specialty Advertising

Question 25

What is LEAD TIME and SELL IN TIME?

Answer 25

1. Lead time is the time necessary to prepare the program prior to launching it. 2. Sell-in time begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers.

Question 26

What are the benefits of sponsoring events?

Answer 26

1. To identify with a particular target market or lifestyle—Customers can be targeted geographically, demographically, psychographically, or behaviorally according to events. Old Spice sponsors college sports—including its college basketball Old Spice Classic in late November—to highlight product relevance and sample among its target audience of 16- to 24-year-old males. 2. To increase salience of company or product name—Sponsorship offers sustained exposure for a brand, a necessary condition for reinforcing brand salience. Top-of-mind awareness for soccer World Cup sponsors Emirates, Hyundai, Kia, and Sony benefited from the repeated brand and ad exposure over the month-long tournament. 3. To create or reinforce perceptions of key brand image associations—Events themselves have associations that help to create or reinforce brand associations.To toughen its image and appeal to the heartland, Toyota Tundra sponsors B.A.S.S. fishing tournaments and has sponsored Brooks & Dunn country music tours. 4. To enhance corporate image—Sponsorship can improve perceptions that the company is likable and prestigious. Although Visa views its long-standing Olympic sponsorship as a means of enhancing international brand awareness and increasing usage and volume, it also engenders patriotic goodwill and taps into the emotional Olympic spirit. 5. To create experiences and evoke feelings—The feelings engendered by an exciting or rewarding event may indirectly link to the brand. Audi models featured prominently in the 2010 blockbuster Iron Man 2, including main character Tony Stark’s personal R8 Spyder and the A8, Q5 and Q7 SUVs, and A3 hatchback. After a month-long marketing blitz, positive word of mouth doubled for the brand. 6. To express commitment to the community or on social issues—Cause-related marketing sponsors nonprofit organizations and charities. Firms such as Timberland, Stonyfield Farms, Home Depot, Starbucks, American Express, and Tom’s of Maine have made their support of causes an important cornerstone of their marketing programs. 7. To entertain key clients or reward key employees—Many events include lavish hospitality tents and other special services or activities only for sponsors and their guests. These perks engender goodwill and establish valuable business contacts. From an employee perspective, events can also build participation and morale or serve as an incentive. BB&T Corp., a major banking and financial services player in the South and Southeast United States, used its NASCAR Busch Series sponsorship to entertain business customers and its minor league baseball sponsorship to generate excitement among employees. 8. To permit merchandising or promotional opportunities—Many marketers tie contests or sweepstakes, in-store merchandising, direct response, or other marketing activities with an event. Ford and Coca-Cola have used their sponsorship of the popular TV show American Idol in this way.

Question 27

In measurement event success, what is supply-side and demand-side?

Answer 27

1. Supply-side methods for measuring an event’s success assess the media coverage, for example, the number of seconds the brand is clearly visible on a television screen or the column inches of press clippings that mention it. These potential “impressions” can translate into the dollar cost of actually advertising in the particular vehicle. 2. The demand-side method identifies the sponsorship’s effect on consumers’ brand knowledge. Marketers can survey spectators to measure their recall of the event and their resulting attitudes and intentions toward the sponsor.

Question 28

What are the 5 functions of PUBLIC RELATIONS?

Answer 28

1. Press relations—Presenting news and information about the organization in the most positive light 2. Product publicity—Sponsoring efforts to publicize specific products 3. Corporate communications—Promoting understanding of the organization through internal and external communications 4. Lobbying—Dealing with legislators and government officials to promote or defeat legislation and regulation 5. Counseling—Advising management about public issues as well as company positions and image during good times and bad

Question 29

What are the main tasks in MPR (Marketin Public Relations)?

Answer 29

• Launching new products. The amazing one-time commercial success of toys such as LeapFrog, Beanie Babies, and Silly Bandz owes a great deal to strong publicity. • Repositioning mature products. In a classic PR case study, New York City had extremely bad press in the 1970s until the “I Love New York” campaign. * Building interest in a product category. Companies and trade associations have used MPR to rebuild interest in declining commodities such as eggs, milk, beef, and potatoes and to expand consumption of such products as tea, pork, and orange juice. * Influencing specific target groups. McDonald’s sponsors special neighborhood events in Latino and African American communities to build goodwill. • Defending products that have encountered public problems. PR professionals must be adept at managing crises, such as those weathered by such well-established brands as Tylenol, Toyota, and BP in recent years. • Building the corporate image in a way that reflects favorably on its products. The late Steve Jobs’s heavily anticipated Macworld keynote speeches helped to create an innovative, iconoclastic image for Apple Corporation.

Question 30

What are the objectives of MPR?

Answer 30

1. awareness by placing stories in the media to bring attention to a product, service, person, organization, or idea. It can build 2. credibility by communicating the message in an editorial context. It can help 3. boost sales force and dealer enthusiasm with stories about a new product before it is launched. It can 4. hold down promotion cost because MPR costs less than direct-mail and media advertising.

Question 31

What are major tools in MPR?

Answer 31

``` Publications: Events: Sponsorships: News: Speeches: Public Service Activities: Identity Media: ```

Question 32

How to evaluate results of MPR?

Answer 32

1. Exposure 2. Change in product awareness, comprehension, or attitude resulting from the MPR campaign (after accounting for the effect of other promotional tools as well as possible).