Chapter 15

Question 1

Agencies that are responsible for regulating ad-based communication in Canada

Answer 1

a. Competition Bureau
b. Canadian Redio-Television and Telecommunications Commission
c. Health Canada
d. Advertising Standards Canada

Question 2

Mass marketing tool

Answer 2

Advertising media: Electronic, print… E.g., TV commercials, banner ads, billboards…
* Can dramatize – create this larger-than-life brand image
* Negatives - One-way communication channel + Very costly

Question 3

AIDA Model

Answer 3

Attention – What is it?
Interest – I like you
Desire - I want you
Action – I am getting you

Question 4

Why is Attention important?

Answer 4

leads to Awareness then Attitude then Engagement / Relationship

Question 5

Two awareness metrics

Answer 5

(i) Aided recall l = occurs when consumers recognize the brand when its name is presented to them

(ii) Top-of-mind recall/awareness = a prominent place in people’s memories that triggers a response without them having to put any thought into it

Question 6

How to grab consumer’s attention

Answer 6

(i) bright colors, (ii) big images/fonts, (iii) augmented reality (3D)…….
* Targeted ways: depends on the TA – What will capture their attention?

Question 7

How to make a product desirable?

Answer 7

be relatable
make yourself appear trustworthy (e.g., can you advertise your online reviews?)
appeal to the target audience’s aspirational self (e.g., before and after pictures)

Question 8

How to motivate consumers to take action?

Answer 8

• Provide an easy way to take action (e.g., press this button to donate $5 now)
• Highlight value (e.g., mentioning the massive discount they will get for signing up right now)
• Create a sense of urgency (e.g., offer valid till stocks last)

Question 9

lagged effect

Answer 9

a delayed response to a marketing communication campaign

Question 10

Advertising objective - inform

Answer 10

– introduction stage of PLC
- brand awareness
- communicate what the product does, how it works…

Question 11

Persuade

Answer 11

• during growth and early maturity stages of PLC
• build positive associations about the brand
• encourage switching

Question 12

Remind

Answer 12

• later stages of PLC
• prevent consumers from forgetting your product
• promote repurchase

Question 13

Focus of advertisements

Answer 13

Product focused ads: a specific product
Institutional ads: about issues related to places (e.g., tourism), politics, industry, or a corporation

Question 14

Public service announcements (PSA)

Answer 14

Ads that are focused on public welfare + ads are generally sponsored by government or civic/welfare groups (e.g., NGOs)
* Broadcasters often give free airtime for PSAs

Question 15

Puffery in advertising

Answer 15

The legal exaggeration of praise, stopping just short of deception, lavished on a product.
* Legal in Canada and US. Illegal in most European countries.
* Thin line difference between puffery (legal) and deception (illegal)

Question 16

Sales promotions

Answer 16

special incentives (e.g., BOGO) or excitement building programs (e.g., offer applicable till stock lasts) that encourage consumers to purchase.

can be short-term (e.g., free samples) or long-term promotions (e.g., loyalty program)

Can be focused on:
(i) end-consumers
(ii) distribution channel (including salespeople)

Question 17

Premium

Answer 17

an item offered for free or at a bargain price to reward some type of behaviour, such as buying, sampling, or testing.

Question 18

Sweepstakes

Answer 18

a form of sales promotion that offers prizes based on a chance drawing of entrants’ names

Question 19

point-of-purchase (POP) display

Answer 19

a merchandise display located at the point of purchase, such as at the checkout counter in a grocery store.

Question 20

Rebates

Answer 20

a portion of the purchase price is returned to the buyer

Question 21

Discounts vs allowances vs credit

Answer 21

Buy 100 boxes worth of product, get 10% off purchase invoice (discount)
Buy 100 boxes worth of product, get 5 additional cases for free (allowance)
Order now, pay later (credit)

Question 22

Evaluating Sales Promotions

Answer 22

• realized margin
• cost of additional inventory
• potential increase in sales
• long-term impact
• potential loss from switches from more profitable items
• additional sales made to customers

Question 23

The personal selling process

Answer 23

1. Generate and Qualify Leads
2. Preapproach
3. Sales Presentations and Overcoming Objections
4. Closing the Sale
5. Follow-Up

Question 24

trade shows

Answer 24

= major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry

Question 25

cold calls

Answer 25

a method of prospecting in which salespeople telephone or go to see potential customers without appointments.

Question 26

telemarketing

Answer 26

a method of prospecting in which salespeople telephone potential customers

Question 27

Preapproach

Answer 27

occurs prior to meeting the customer for the first time and extends the qualification of leads procedure; in this step, the salesperson conducts additional research and develops plans for meeting with the customer.

Question 28

CRM (customer relationship management) system

Answer 28

– a customer database

Question 29

Closing the Sale

Answer 29

= obtaining a commitment from the customer to make a purchase

Question 30

Follow-Up

Answer 30

1. reliability = the salesperson and the supporting organization must deliver the right product or service on time 2. responsiveness = the salesperson and the support group must be ready to deal quickly with any issue, question or problem that may arise 3. assurance = customers must be assured through adequate guarantees that their purchase will perform as expected 4. empathy = the salesperson and support group must have a good understanding of the problems and issues faced by their customers 5. tangibles = website, marketing communications, and delivery materials