Marketing Chapter 17

The communication Process

1. Sender (firm) 2. Transmitter encodes message Encode: converting the sender's ideas into a message, which could be verbal, visual, or both. The transmitter performs this action 3. Communications channel (media) Carries the message 4. Receiver (consumer) decodes message

When Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message, she was told the reach was 40, the frequency was 4, and the competitive parity was 10. The gross rating points for her firm's campaign were A. 160 B. 1600 C. 400 D. 40 E. The answer cannot be determined from this information

A. 160

In the AIDA model, the think stage is the _______ stage A. awareness B. action C. interest D. desire E. intention

A. Awareness

If you ever watched a television commercial and at the end of the message wondered what it was promoting, you may have had trouble __________ the IMC message. A. decoding B. transmitting C. precoding D. encoding E. tracking

A. Decoding

An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results for this ad, six would be the _______ for this telecast A. frequency B. reach C. gross rating points D. ROI E. click-through rate

A. Frequency

Marketing dollars have recently been shifted toward direct marketing, website development, and product placement Q: compared to mass media advertising, a key advantage of direct marketing is that A. it allows for personalization of the message B. it reaches a larger audience C. in involves face-to-face contact D. it uses the rule-of-thumb budgeting method E. it is used almost exclusively for B2B marketing

A. It allows for personalization of the message

Red Bull sends out student brand managers to distribute free samples to their peers. What form of marketing communication is this? A. sales promotion B. direct marketing C. public relations D. mobile marketing E. advertising

A. Sales promotion

If you send an email and include a link, you can track how many people took the desired action of clicking the link. This is known as A. the click-through rate B. impressions C. frequency D. gross rating points E. reach

A. The click through rate

Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMC budget. He receives offers from a variety of advertising media, spends money on his firm's public relations efforts, and is considering electronic media alternatives. Carlos must recognize that each IMC alternative A. will stand on its own B. is part of the whole C. is part of non commercial free speech D. is less important than stealth marketing E. is dictated by the nature of the supply chain

B. Is part of the whole

When using the objective-and-task method of IMC budgeting for multiple products and services, how often must the process be repeated A. never, after the first product/service B. once for each individual product and service C. once by each management team member D. only when a product is removed from the line E. when the prior year's budget is exceeded

B. Once for each individual product and service

To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To do so, they need to know the number of clicks and A. the number of destinations B. the number of impressions C. the cost per click D. how much time consumers spend viewing the ad or page E. the total number of clicks recorded by the industry

B. The number of impressions

Public Relations

Building and maintaining a positive image, and customers do not need to take any action to receive it, making it a passive, rather than an interactive activity Supports other promotional efforts by generating "free" media attention

When Apple's famous 1984 "Big Brother" ad aired during the Super Bowl, it reached an estimated 500 million viewers. It aired only once on commercial television, but was seen later years in at least ten television programs recalling great commercials. For its target audience, the frequency of this ad is measured as A. one B. ten C. 500 million D. one/tenth E. 5 billion (ten times 500 million)

C. 500 Million

Advertising agencies often provide the IMC function of comparing their customer's target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with A. competing messages B. lack of clarity in the message. C. a poor choice of medium D. an extended feedback loop E. a flaw in the medium

C. A poor choice of medium

Direct marketing is the form of marketing communication that is most easily personalized Q: Cora will be a bridesmaid next summer and has purchased her dress online. When she turns on her computer again, Cora is surprised to see special offers for matching accessories. This is an example of which marketing strategy? A. sales promotions B. media advertising C. direct marketing D. personal selling E. public relations

C. Direct marketing

In the AIDA model, awareness leads to A. Intention, which hopefully leads to desire and then action B. integration, which hopefully leads to desire and then action C. Interest, which hopefully leads to desire and then action D. intention, which hopefully leads to desire and then attention E. interest, which hopefully leads to determination and then action

C. Interest, which hopefully leads to desire and then action

Julie is developing a budget for her firm's IMC program. First she sets objectives. Then she chooses media and finally, she determines the cost for each product to be promoted. Julie is using the ________ method of establishing an IMC budget A. reach and frequency B. track and decode C. objective-and-task D. rule-of-thumb E. sender-receiver

C. Objective-and-task

Sales promotions include all of the following EXCEPT A. coupons B. rebates C. online ads D. point-of-purchase displays E. free samples

C. Online ads

Direct Marketing

Communicating directly with target customers to generate a response or transactions Fastest growing element of IMC Improvement in database technology have contributed to rapid growth Growth stimulated by increased use of online shopping and credit and debit cards

Compared to other IMC alternatives, advertising is extremely effective for A. closing a sale B. efficient message decoding C. reducing the potential for noise D. creating awareness and generating interest in a product E. repositioning consumers in the AIDA model

D. Creating awareness and generating interest in a product

Which of the following is the LEAST interactive IMC strategy A. personal selling B. Mobile marketing C. online marketing via social media D. direct marketing via catalog E. direct marketing via telemarketing

D. Direct marketing via catalog

From a consumer's perspective, all of the following are interactive elements of an IMC strategy EXCEPT A. personal selling B. consumer contests C. mobile marketing D. public relations E. telemarketing

D. Public relations

Using prior sales and communication activities to determine the present communication budget describes which method of IMC budgeting? A. reach and frequency B. track and decode C. objective-and-task D. rule-of-thumb E. sender-receiver

D. Rule of thumb

The proliferation of new media alternatives has led many firms to shift their promotional budget from A. publicity to public relations B. personal selling to advertising C. integrated marketing communications to diverse marketing communications D. stealth marketing to viral marketing E. advertising to direct marketing and website development

E. Advertising to direct marketing and website development

Brenda wants to reduce mass media IMC and to increase the use of personalized marketing communication messages. To achieve this goal, Brenda will likely increase her use of A. sales promotions B. advertising C. public relations D. price reductions E. direct marketing

E. Direct marketing

When purchasing books on Amazon.com, customers are shown other books and a message saying "Customers who purchased (your book) also purchased..." This is an example of A. mass media advertising B. publicity C. public relations D. sales promotions E. direct marketing

E. Direct marketing

In simple terms, the AIDA model is known as the _________ model. A. intention, action, interest B. stop, look, listen C. want, need, desire D. inform, persuade, act E. think, feel, do

E. Think, feel, do

Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message. Yolanda is asking for _________ data A. parity and affordability B. sales and promotion C. attitude change D. rule-of-thumb E. frequency and reach

E. frequency and reach

Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboard saying, "South of the Border Restaurant and Motel is just 100 miles away." Julia has never heard of South of the Border before. After seeing the sign, she will most likely need additional exposure to the product before deciding whether to stop at South of the Border. This is an example of A. rejection of advertising B. subliminal advertising C. product underwhelm D. IMC strategy E. the lagged effect

E. the lagged effect

Online marketing

Looks at all tasks needed to best accomplish their communication objectives and then totals the costs of these tasks to create the budget

Sales Promotions

Marketing activity designed to increase sales, encourage customer loyalty, or generate brand awareness Used in conjunction with other forms of IMC Ex. coupons, rebates, point-of-purchase displays, free samples

Advertising

Most visible element of IMC Best suited for creating awareness and interest Because it is a relatively passive medium, it does not do as well at generating desire and spurring consumers to action

The lagged effect

Multiple exposures are often necessary It is difficult to determine which exposure led to purchase

Channels used in IMC strategy

Passive vs. interactive (from the consumer's perspective) Offline vs. online

Intergrated Marketing Communications (IMC)

REPRESENTS PROMOTION (of 4P's) having a clear cohesive method of targeting consumers so they understand your brand Customers Communication channel Evaluation of results

Available Budget

The communication budget is the money available after operating costs and profits have been budgeted

Click through Rate

click/impressions

Frequency

how often the audience is exposed to a communication within a specified period of time

Gross rating Points

multiplying reach x frequency Web tracking Clicks Impressions

Reach

percentage of target population exposed to the message

Percentage-of-sales

the communication budget is a fixed percentage of forecasted sales

Competitive Party

the communication budget is set to that the firm's share of communication expenses equals its share of the market