Marketing Management, 14e (Kotler/Keller) Chapter 17 Designing and Managing Integrated Marketing Communications 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 Answer: B Page Ref: 476 Objective: Difficulty: Easy 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 Answer: A Page Ref: 478 Objective: Difficulty: Easy 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 Answer: E Page Ref: 478 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 Answer: C Page Ref: 478 Objective: Difficulty: Easy 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 Answer: C Page Ref: 478 Objective: Difficulty: Easy 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 Answer: E Page Ref: 478 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 Answer: B Page Ref: 478 Objective: Difficulty: Easy 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 Answer: C Page Ref: 478 Objective: Difficulty: Easy 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 Answer: D Page Ref: 478 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 10) is an element of the marketing communications mix that involves people-topeople 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 Answer: C Page Ref: 478 Objective: Difficulty: Easy 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 Answer: E Page Ref: 478 Objective: Difficulty: Easy 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 Answer: A Page Ref: 479 Objective: Difficulty: Easy 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 Answer: C Page Ref: 479 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 Answer: A Page Ref: 479 Objective: Difficulty: Easy 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 Answer: D Page Ref: 479 Objective: Difficulty: Easy 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 Answer: A Page Ref: 479 Objective: Difficulty: Easy 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 Answer: A Page Ref: 479 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 Answer: B Page Ref: 479 Objective: Difficulty: Moderate 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 Answer: D Page Ref: 479 Objective: Difficulty: Moderate 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 Answer: B Page Ref: 480 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 Answer: D Page Ref: 480 Objective: Difficulty: Easy 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 Answer: A Page Ref: 480 Objective: Difficulty: Moderate 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 Answer: C Page Ref: 480 Objective: AACSB: Analytic skills Difficulty: Moderate Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 Answer: C Page Ref: 480 Objective: AACSB: Analytic skills Difficulty: Moderate 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 Answer: D Page Ref: 481 Objective: AACSB: Analytic skills Difficulty: Moderate 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 Answer: D Page Ref: 481 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 Answer: C Page Ref: 481 Objective: Difficulty: Easy 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 Answer: E Page Ref: 481 Objective: Difficulty: Easy 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 Answer: C Page Ref: 481 Objective: Difficulty: Moderate 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 Answer: A Page Ref: 482 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 Answer: A Page Ref: 482 Objective: Difficulty: Moderate 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 Answer: E Page Ref: 482 Objective: Difficulty: Moderate 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 Answer: D Page Ref: 482 Objective: AACSB: Analytic skills Difficulty: Moderate 10 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 Answer: TRUE Page Ref: 485 Objective: Difficulty: Easy 99) Celebrities are likely to be effective when they are credible or personify a key product attribute Answer: TRUE Page Ref: 485 Objective: Difficulty: Easy 100) Trustworthiness is that source of a spokesperson's credibility that describes his or her attractiveness Answer: FALSE Page Ref: 485 Objective: Difficulty: Easy 101) The most highly credible source would score high on at least two of the three dimensions— expertise, trustworthiness, and likability Answer: FALSE Page Ref: 485 Objective: Difficulty: Moderate 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 Answer: TRUE Page Ref: 486 Objective: Difficulty: Moderate 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 Answer: TRUE Page Ref: 487 Objective: Difficulty: Easy 28 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 104) Personal influence carries especially great weight when products are inexpensive, risk-free, or purchased frequently Answer: FALSE Page Ref: 487 Objective: Difficulty: Easy 105) Although personal communication is often more effective than mass communication, mass media might be the major means of stimulating personal communication Answer: TRUE Page Ref: 488 Objective: Difficulty: Easy 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 Answer: FALSE Page Ref: 488 Objective: Difficulty: Moderate 107) Two-step communication suggests that mass communicators should direct messages specifically to opinion leaders and let them carry the message to others Answer: TRUE Page Ref: 488 Objective: Difficulty: Easy 108) The affordable method accounts for the role of promotion as an investment and the immediate impact of promotion on sales volume Answer: FALSE Page Ref: 489 Objective: Difficulty: Moderate 109) The percentage-of-sales budgeting method encourages management to think of the relationship among communication cost, selling price, and profit per unit Answer: TRUE Page Ref: 489 Objective: Difficulty: Easy 29 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 110) The percentage-of-sales method leads to a budget set by market opportunities rather than by the availability of funds Answer: FALSE Page Ref: 489 Objective: Difficulty: Easy 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 Answer: TRUE Page Ref: 490 Objective: Difficulty: Easy 112) Advertising allows the buyer to receive and compare the messages of various competitors Answer: TRUE Page Ref: 490 Objective: Difficulty: Easy 113) Public relations is incapable of reaching prospects who prefer to avoid mass media and targeted promotions Answer: FALSE Page Ref: 491 Objective: Difficulty: Easy 114) In general, personal selling is used more with complex, expensive, and risky goods and in markets with fewer and larger sellers Answer: TRUE Page Ref: 492 Objective: Difficulty: Easy 115) Advertising and publicity play the most important roles in the conviction stage of buyer readiness Answer: FALSE Page Ref: 493 Objective: Difficulty: Moderate 116) In the growth stage of a product's life cycle, demand has its own momentum through word of mouth and interactive marketing Answer: TRUE Page Ref: 493 Objective: Difficulty: Easy 30 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 Answer: TRUE Page Ref: 495 Objective: Difficulty: Moderate 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: TRUE Page Ref: 496 Objective: Difficulty: Easy 119) Briefly describe the current marketing communications environment 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 Page Ref: 476 Objective: Difficulty: Moderate 31 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 120) What are the elements of the marketing communications mix? Answer: The marketing communications mix consists of eight major modes of communication: 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 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 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 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 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 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 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 Personal selling — Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders Page Ref: 478 Objective: Difficulty: Moderate 32 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 121) Briefly describe the macromodel of the marketing communications process 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 Page Ref: 480 Objective: Difficulty: Moderate 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: 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 Page Ref: 480 Objective: AACSB: Analytic skills Difficulty: Moderate 33 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: 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 Page Ref: 480-481 Objective: AACSB: Analytic skills Difficulty: Moderate 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 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 well to compare the Glazers with other brands in terms of value, utility, and performance factors as well Page Ref: 481 Objective: AACSB: Analytic skills Difficulty: Moderate 34 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: 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 Page Ref: 481 Objective: AACSB: Analytic skills Difficulty: Moderate 126) Provide a general description of the four classic response hierarchy models 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-dofeel," 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 a better job of planning communications Page Ref: 480-481 Objective: Difficulty: Moderate 127) What are the features of an ideal advertising campaign? 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: The right consumer is exposed to the right message at the right place and at the right time The ad causes the consumer to pay attention but does not distract from the intended message The ad properly reflects the consumer's level of understanding of and behaviors with the product and the brand The ad correctly positions the brand in terms of desirable and deliverable points-of-difference and points-of-parity The ad motivates consumers to consider purchase of the brand 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 Page Ref: 482 Objective: Difficulty: Moderate 35 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 128) What are the steps involved in developing effective marketing communications? Answer: Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Measure results Manage integrated marketing communications Page Ref: 482 Objective: Difficulty: Easy 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: 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 Page Ref: 482 Objective: AACSB: Analytic skills Difficulty: Easy 130) Write a short note on "brand awareness" as an objective of 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 Page Ref: 482 Objective: Difficulty: Easy 36 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 131) Compare and contrast the use of negative and positive appeals in advertising messages Answer: Communicators use negative appeals such as fear, guilt, and shame to get people to 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 Page Ref: 485 Objective: Difficulty: Moderate 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: Student answers may vary Negative appeals such as fear, guilt, and shame are used by communicators to get people to 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 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 Page Ref: 485 Objective: AACSB: Analytic skills Difficulty: Moderate 37 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: 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 Page Ref: 485-486 Objective: AACSB: Analytic skills Difficulty: Moderate 134) Name a few products for which personal influence plays a significant role in marketing communications 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 Page Ref: 487 Objective: AACSB: Analytic skills Difficulty: Moderate 38 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 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 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: Using the objective-and-task method, Derek can arrive at the marketing communications budget by following these steps: The company estimates 50 million potential users and sets a target of attracting percent of the market—that is, million users 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 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 million people, will become loyal users This is the market goal Next, the number of advertising impressions per percent trial rate is estimated Derek estimates that 40 advertising impressions (exposures) for every percent of the population will bring about a 25 percent trial rate The number of gross rating points that would have to be purchased is now calculated A gross rating point is one exposure to 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 Finally, the necessary advertising budget on the basis of the average cost of buying a gross rating point is estimated To expose 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 Page Ref: 490 Objective: AACSB: Analytic skills Difficulty: Difficult 136) What are the major characteristics of sales promotions as an element of the marketing communications mix? 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: Ability to be attention-getting—They draw attention and may lead the consumer to the product Incentive—They incorporate some concession, inducement, or contribution that gives value to the consumer Invitation—They include a distinct invitation to engage in the transaction now Page Ref: 491 Objective: Difficulty: Moderate 39 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 137) What is the role of advertising as a communications tool in marketing for business markets? Answer: Although marketers rely more on sales calls in business markets, advertising still plays a significant role: Advertising can provide an introduction to the company and its products If the product has new features, advertising can explain them Reminder advertising is more economical than sales calls Advertisements offering brochures and carrying the company's phone number or Web address are an effective way to generate leads for sales representatives Sales representatives can use copies of the company's ads to legitimize their company and products Advertising can remind customers how to use the product and reassure them about their purchase Page Ref: 492 Objective: Difficulty: Moderate 138) How the stages of buyer readiness affect the composition of a product's marketing communications mix? 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 Page Ref: 493 Objective: Difficulty: Moderate 139) How the stages in a product's life cycle influence the 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 Page Ref: 493 Objective: Difficulty: Moderate 40 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: 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 Page Ref: 493 Objective: AACSB: Analytic skills Difficulty: Moderate 141) Briefly describe the process of measuring the results of marketing communications 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 Page Ref: 494 Objective: Difficulty: Moderate 41 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 142) What is integrated marketing communications? What is its significance in the current marketing environment? 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 Page Ref: 494-495 Objective: Difficulty: Moderate 143) How is coordination of media achieved through integrated marketing communications? Answer: Media coordination can occur across and within media types, but marketers should combine personal and nonpersonal communications channels through multiple-vehicle, multiplestage 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 Page Ref: 495-496 Objective: Difficulty: Moderate 42 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall ... engagement B) Integrated marketing communications C) Market research D) Customerization E) Marketing research Answer: B Page Ref: 495 Objective: Difficulty: Easy 77) Marketing communications. .. Difficulty: Moderate 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:... 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