100 questions - Advertising and Promotions

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12/14

MKT 310 Advertising and Promotions

Tracking Your Academic Activities Verifying an accurate course completion time is essential for accreditation. To meet both accreditation requirements and award academic credit, educational institutions must document the total number of hours students spend completing designated academic activities related to their coursework.

The total hours are then translated into academic credit based on a prescribed method of measuring educational attainment known as the Carnegie Unit. 90 hours of student preparation time and 45 hours of student engagement time are required for a 3 credit hour course.

Using the attached form as an example, keep track of the time you spend on each lesson, pre-test, self-test, unit test, writing assignment, reading assignment, outside reading, final examination, etc. You will not be required to turn in the worksheet; however, at the end of the course you will receive a Student Course Survey and the final question will ask how long it took you to complete the course. Your assistance in completing this requirement and providing the university with this valuable data is greatly appreciated.

As you fill out the worksheet, please keep in mind that your Academic Engagement Activities should total approximately 45 hours. Some examples of this type of activity may include:

Lesson Review Exercises

Key Term Reviews

Analysis

Study Guide Review

Writing Assignments

Review Grading Rubric

Unit Examinations

Proctored Final Examination

Course Academic Online Discussions

Student/Instructor Interaction

Documents/Student Resources

As you fill out the Academic Preparation Activities, please keep in mind that these should total approximately 90 hours. Some samples of this type of activity may include:

Pre-Test

Reading Assignments

Key Term Reviews

Studying for Examinations

Writing Assignments

Review Grading Rubric

Study Lesson Review Exercises

Internet/Web Research

Reading Websites

Suggested Online Readings

Adweek www.adweek.com

Branding Asia www.brandingasia.com

Lexicon Branding, Inc. www.lexicon-branding.com

CoreBrand www.corebrand.com

Private Label Manufacturers Association www.plma.com

Ad agency news www.adage.com

Gays and lesbians www.planetout.com

African-Americans www.targetmarketnews.com

Women www.iVillage.com

Media research information www.nielsenmedia.com

Table of Contents

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MKT 310 Advertising and Promotions

Syllabus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii - xxiii

Unit One Chapter 1: Integrated Marketing Communications . . . . . . . . . . . . . . . . . 1

Chapter 2: Corporate Image and Brand Management . . . . . . . . . . . . . . . 10

Chapter 3: Buyer Behaviors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Unit 1 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Unit 1 Examination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Unit 1 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Unit Two

Chapter 4: The IMC Planning Process . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Chapter 5: Advertising Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Chapter 6: Advertising Design—Theoretical Frameworks and Types of Appeals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Chapter 7: Advertising Design—Message Strategies and Executional Frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Unit 2 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Unit 2 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Unit 2 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Unit Three

Chapter 8: Traditional Media Channels . . . . . . . . . . . . . . . . . . . . . . . . . 81

Chapter 9: E-Active Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Chapter 10: Alternative Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Chapter 11: Database and Direct Response Marketing and Personal Selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

Unit 3 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

Unit 3 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

Unit 3 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

Table of Contents

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MKT 310 Advertising and Promotions

Unit Four Chapter 12: Sales Promotions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

Chapter 13: Public Relations and Sponsorship Programs. . . . . . . . . . . . . 134

Chapter 14: Regulations and Ethical Concerns. . . . . . . . . . . . . . . . . . . . 143

Chapter 15: Evaluating an Integrated Marketing Program . . . . . . . . . . . . 152

Unit 4 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161

Unit 4 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

Unit 4 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

Final Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

Objectives

MKT 310 Advertising and Promotions

Instructions to Students

Chapter One Integrated Marketing Communications

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Consider how communication takes place.

2. Evaluate integrated marketing communications programs.

3. Investigate how an integrated marketing communications program creates value.

4. List the components of an integrated marketing communications program.

• Read pages 1-21 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

MKT 310 Advertising and Promotions

This chapter explains the nature of an integrated advertising and marketing communications program. First, communication processes are described because understanding how communication works builds the foundation for an integrated marketing program. Next, an integrated marketing communications program is described. Finally, the integrated marketing communications process is applied to global or international operations, creating a globally integrated marketing communications (GIMC) program.

Key Terms

MKT 310 Advertising and Promotions

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Communication:

Encoding:

Decoding:

Feedback:

Clutter:

Marketing mix:

Brand parity:

Contact points:

Standardization:

Adaptation:

Summary

MKT 310 Advertising and Promotions

Communication is transmitting, receiving and processing information. It is a two-way street in which a sender must establish a clear connection with a receiver. Effective communication is the glue holding the relationship between two entities together. When communication breaks down, conflicts, misunderstandings and other problems may develop. The components of the communication process include the sender, an encoding process, the transmission device, the decoding process and the receiver. Noise is anything that distorts or disrupts the flow of information from the sender to the receiver.

Integrated marketing communications (IMC) takes advantage of the effective management of the communications channel. Within the marketing mix of products, prices, distribution systems and promotions, firms that speak with one clear voice are able to coordinate and integrate all market- ing tools. The goal is to have a strong and positive impact on consumers, businesses and other end users.

IMC plans are vital to achieving success. The reasons for their importance begin with the explosion of information technologies. Channel power has shifted from manufacturers to retailers to consumers. Company leaders must adjust in order to maintain a strong market standing and IMC programs can assist in this effort. New levels of competition drive marketers to better understand their customers and be certain those end users are hearing a clear and consistent message from the firm. As consumers develop a stronger sense of brand parity, whereby no real differences in product-service quality are perceived, marketers must recreate a situation in which their brand holds a distinct advantage over others. This is difficult because consumers now can collect and integrate information about products from a wide variety of sources, including technological outlets (Internet Web sites) and interpersonal (sales reps) sources. Quality IMC programs help maintain the strong voice companies need to be certain their messages are heard. An additional challenge is the decline in effectiveness of mass-media advertising. IMC helps company leaders find new ways to contact consumers with a unified message.

This text explains the issues involved in establishing an effective IMC program. The importance of business-to-business marketing efforts is noted because many firms market items as much to other companies as they do to consumers. Successful development of an IMC program should help firms remain profitable and vibrant, even when the complexities of the marketplace make these goals more difficult to reach.

Self Test

MKT 310 Advertising and Promotions

Multiple Choice Questions (Circle the correct answer)

1. An advertising agency is told by the client that an advertising campaign should result in a 20% increase in sales. This is an example of __________.

a. adaptation b. marketing myopia c. standardization d. accountability

2. A creative’s main responsibility is to ___________.

a. develop advertisements and campaigns b. represent the customer’s voice with an advertising agency c. receive marketing messages from various sources d. evaluate the marketing plan

3. Preparing ad copy is which part of the communication process?

a. situational analysis b. encoding c. filtering out noise d. decoding

4. In the communication process, the items that carry the message from the sender to the receiver are __________.

a. feedback devices b. transmission devices c. decoding processes d. encoding processes

5. A consumer sees a billboard while driving. The billboard is a ___________.

a. decoding device b. creative c. transmission device d. form of feedback

Self Test

MKT 310 Advertising and Promotions

6. A person smells the fragrance of a perfume attached to a magazine advertisement. What is taking place?

a. encoding b. feedback c. transmission d. decoding

7. Which would be an example of feedback in a marketing channel?

a. removing a product from the market b. a customer complaint c. a decision to begin international operations d. new product development

8. Traditionally, promotions included the following, EXCEPT __________.

a. personal selling b. sales promotions c. advertising d. product design

9. The term used to summarize the various activities involved with the Internet is ___________.

a. electronic marketing b. blogging c. international commerce d. e-active marketing

10. Brand parity is the ___________.

a. belief that all advertisers say essentially the same thing b. feeling that most advertising is false c. perception that there are no real differences between major brands d. idea that brands are distinct and easy to identify

Answer Keys

MKT 310 Advertising and Promotions

Key Term Definitions

Communication: Transmitting, receiving and processing information.

Encoding: The verbal (words, sounds) and nonverbal (gestures, facial expressions, posture) cues that the sender utilizes in dispatching a message.

Decoding: When the receiver employs any of his or her senses (hearing, seeing, feeling) in an attempt to capture a message.

Feedback: Information the sender obtains from the receiver regarding the receiver’s perception or interpretation of a message.

Clutter: Exists when consumers are exposed to hundreds of marketing messages per day and most are tuned out.

Marketing mix: Consists of products, prices, places (the distribution system) and promotions.

Brand parity: Occurs when there is the perception that most goods and services are essentially the same.

Contact points: The places where customers interact with or acquire additional information about a firm.

Standardization: When a firm features uniform products and market offerings across countries with the goal of generating economies of scale in production while using the same promotional theme.

Adaptation: Occurs when products and marketing messages are designed for, and adapted to, individual countries.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

1. d

2. a

3. b

4. b

5. c

6. d

7. b

8. d

9. d

10. c

Notes

MKT 310 Advertising and Promotions

Objectives

MKT 310 Advertising and Promotions

Instructions to Students

Chapter Two Corporate Image and Brand Management

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Propose how a corporate image affects consumers, other businesses and the company itself.

2. Chart elements that are involved in identifying, creating, rejuvenating or changing a corporation’s image.

3. Assess the characteristics of effective logos.

4. Describe how brands are developed, built and sustained in order to build brand equity and fend off perceptions of brand parity.

5. Investigate current trends affecting private labels.

6. Consider how packages and labels are used to support an integrated marketing communications program, both domestically and in foreign settings.

• Read pages 22-49 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

MKT 310 Advertising and Promotions

One of the most critical ingredients in the successful development of an integrated marketing communications plan is effective management of an organization’s image. The first part of this chapter examines the activities involved in managing a corporation’s image including its name and logo. The second part addresses ways to develop and promote the various forms of brand names. Brand equity and brand parity are also described. Finally, packages and labels, which should be part of a marketing communications program, are assessed. Ethical and international considerations are also described.

Key Terms

MKT 310 Advertising and Promotions

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Corporate logo:

Stimulus codability:

Brands:

Brand extension:

Flanker brand:

Co-branding:

Cooperative branding:

Salient:

Brand equity:

Brand metrics:

Summary

MKT 310 Advertising and Promotions

An effective integrated marketing communications plan must emphasize a strong and positive company or corporate image as part of the program. An image consists of consumer and business-to-business feelings toward the overall organization as well as evaluations of each individual brand the firm carries. An image has both tangible and intangible components. Tangible ingredients include products, advertisements, names, logos and services provided. Intangible elements consist of policies and practices that change or enhance the company’s image in the consumer’s mind. A well-developed and well-established image benefits both customers and the company in many ways.

Brands are names given to goods or services or groups of complementary products. Effective brands give the firm an advantage, especially in mature markets containing fewer actual products or where service differences exist. Strong brands convey the most compelling benefits of the product, elicit proper consumer emotions and help create loyalty. There are many versions of brands including family brands, flanker brands and co-brands. In each, brand equity is built by domination or the recognition that the brand has one key advantage or characteristic. Creating an effective image is a difficult task. It is important to know how all publics view the firm before seeking to build or enhance an image. Rejuvenating the image involves reminding customers of their previous conceptions of the company while at the same time expanding into a closely related area of concern. Once an image is strongly pressed into the minds of customers, it becomes difficult, if not impossible, to change.

Private brands, or private labels, have become important components in the success of both producers and retailers. Consumers now view private brands as having quality equal to or close to that of more famous manufacturer brand names. At the same time, customers expect price advantages in private label products. Consequently, effective management of brands and products includes creating a mix of offerings that both end users and retailers recognize as a beneficial range of choices.

Self Test

MKT 310 Advertising and Promotions

Multiple Choice Questions (Circle the correct answer)

1. A corporate image summarizes __________.

a. all of the tangible elements of a company b. what employees and customers think of a company c. what the company stands for as well as how it is known in the marketplace d. all of the intangible components that surround a firm

2. When business travelers began to view Holiday Inn as outdated with old decor, the management team remodeled many properties and terminated contracts with proprietors that did not meet the new standards. This is an example of __________.

a. changing an image b. rejuvenating an image c. reinforcing the current image d. developing a new image

3. Which type of corporate name does not reflect the company’s goods or services?

a. overt b. iconoclastic c. conceptual d. implied

4. Overt names __________.

a. reveal what the company does b. do not reflect the company’s goods or services but instead something that is unique, different and memorable c. capture the essence of the idea behind the brand d. contain recognizable words or word parts that imply what the company is about

5. A Pillsbury cookie mix featuring Hershey’s Chocolate is a form of ____________.

a. flanker branding b. cooperative branding c. ingredient branding d. complementary branding

Self Test

MKT 310 Advertising and Promotions

6. The secret to a long brand life is ___________.

a. developing a unique brand name b. having the largest market share within an industry c. having a high level of product quality and high margins d. finding one unique selling proposition and sticking with it

7. The first step in building brand equity is ___________.

a. to focus on domination b. integrating old and new media c. to research and analyze what it would take to make the brand distinctive d. to engage in continuous improvement

8. Which measures returns on branding investments?

a. brand equity b. brand infringement c. brand parity d. brand metrics

9. Private brands are ___________.

a. the use of established brand names on goods and services not related to the company’s core brand b. proprietary brands marketed by an organization and normally distributed exclusively within the organization’s outlets c. new brands sold in the same category d. the joint venture of two or more brands in a new good or service

10. The following statements about private labels are true EXCEPT ___________.

a. quality levels of many private label products have improved b. prices for private labels are going up in many markets c. some firms have begun advertising private labels d. consumers still perceive private labels as being inferior to manufacturer’s brands

Answer Keys

MKT 310 Advertising and Promotions

Key Term Definitions

Corporate logo: The symbol used to identify a company and its brands helping to convey the overall corporate image.

Stimulus codability: Items that easily evoke consensually held meanings within a culture or subculture.

Brands: Names generally assigned to a good or service or a group of complementary products.

Brand extension: The use of an established brand name on goods or services not related to the core brand.

Flanker brand: The development of a new brand by a company in a good or service category in which it currently has a brand offering.

Co-branding: Offering two or more brands in a single marketing effort.

Cooperative branding: A form of co-branding in which two firms create a joint venture of two or more brands into a new good or service.

Salient: When consumers are aware of the brand, have it in their consideration sets (things they consider when making purchases), regard the product and brand as a good value, buy it or use it on a regular basis and recommend it to others.

Brand equity: A set of brand assets that add to the value assigned to a product.

Brand metrics: Measures of returns on brand investments.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

1. c

2. b

3. b

4. a

5. c

6. d

7. c

8. d

9. b

10. d

Notes

MKT 310 Advertising and Promotions

Objectives

MKT 310 Advertising and Promotions

Instructions to Students

Chapter Three Buyer Behaviors

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Detect what elements are involved in internal and external information searches by consumers as part of the purchasing process.

2. Distinguish the three models that explain how individuals evaluate purchasing alternatives.

3. Determine trends that are affecting the consumer buying environment.

4. Dissect how the roles played by various members of the buying center and the factors that influence them impact business purchases.

5. List the steps of the business-to-business buying process.

6. Explain how dual channel marketing expand a company’s customer base and its sales.

7. Explore how a company can overcome international differences when adapting to buying processes.

• Read pages 50-79 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

MKT 310 Advertising and Promotions

This chapter reviews consumer buyer behaviors and business-to-business buyer behaviors. Consumer purchasing processes include five steps; however, two of those steps are most important from an IMC perspective: (1) The information search stage and (2) the evaluation of alternatives stage. These two steps are described in detail. Next, the consumer buying environment is described. Business buying behaviors are assessed starting with a description of the five major roles played in a business buying center. Next, the three main types of business-to-business purchases are noted. Finally, dual channel marketing is described.

Key Terms

MKT 310 Advertising and Promotions

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Involvement:

Need for cognition:

Attitude:

Evoked set:

Inept set:

Inert set:

Straight rebuy:

Modified rebuy:

Derived demand:

Dual channel marketing:

Compensatory heuristics:

Summary

MKT 310 Advertising and Promotions

Buyer behaviors are part of the purchasing process in both consumer markets and business-to- business transactions. An effective IMC program accounts for the ways in which goods and services are purchased in both markets. The goal is to tailor marketing messages to target audiences in the appropriate media.

The consumer buying decision-making process consists of five steps. Marketing experts and especially creatives must be aware of each step and prepare effective communications that will lead most directly to the decision to buy. Two of the most important steps, for the purposes of creating effective marketing communications, are the information search stage and the evaluation of alternatives stage.

After a consumer recognizes a want or need, the individual searches for information internally and externally. Marketing messages must be directed to placing the product or service in the consumer’s evoked set of viable purchasing prospects. The more involved the customer feels in the search, the more likely the product will have a longer-lasting impact once purchased. Those with greater needs for cognition are attracted to the process of thinking through a decision. Those with a greater degree of enthusiasm for shopping spend more time analyzing the available alternatives. Customers consider the benefits and costs of searches and make more or less rational decisions about how extensively they will seek out information.

Evoked sets, attitudes, values and cognitive maps explain how an individual evaluates various purchasing choices. Evoked sets reveal which products “make the cut” and receive consideration. Attitudes and values predispose consumers toward some products and companies and away from others. Cognitive maps help the customer link what the company says about itself with other experiences. Marketing experts must identify consumer attitudes and values that affect purchase decisions and make sure they do not offend prospects with their messages. Stronger ties can be built with customers when the good or service is favorably attached to strongly held attitudes and values.

New cultural values and attitudes, time pressures and busy lifestyles influence what people buy, how they buy and the manner in which they can be enticed to buy. Many families try to isolate themselves from everyday pressures by cocooning. They also try to escape through indulgences and pleasure binges, by finding excitement or fantasy and by planning to meet social needs. An aging baby boom population is more focused on lasting values and health issues. Marketing experts can address these needs and lead customers to purchases based on them. By understanding business buyer behaviors, the marketing team can construct a more complete and integrated marketing communications program. Business purchases are driven by members of the buying center. These members include users, buyers, influencers, deciders and gatekeepers. Each role is important, even when a single person plays more than one role. Members of the buying center are human beings. This means they are influenced by both organizational and individual factors that affect various marketing decisions.

Summary

MKT 310 Advertising and Promotions

Business-to-business sales take three forms. A straight rebuy occurs when the firm has previously chosen a vendor and intends to place a reorder. A modified rebuy occurs when the purchasing group is willing to consider and evaluate new alternatives. This decision is usually based on dissatisfaction with a current vendor. A new task purchase is one in which the company buys a good or service for the first time and the product involved is one with which organizational members have no experience. The business-to-business buying process is similar to the consumer purchase decision-making process. A more formal purchasing process includes formal specifications, bids from potential vendors and a contract finalizing the purchasing agreement.

Self Test

MKT 310 Advertising and Promotions

Multiple Choice Questions (Circle the correct answer)

1. An internal information search for product information is when ___________.

a. a consumer experiences uneasiness b. advertisements are being ignored c. the consumer buying process is nearly complete d. a consumer thinks about brands he/she is willing to consider

2. When a person conducts an internal search for product information and already has sufficient information, the next step in the purchase decision process will be to ___________.

a. evaluate the alternatives b. make the purchase decision c. search for additional information d. identify the need or problem the choice will meet

3. Which component of an attitude displays the individual’s intentions, actions or behavior?

a. affective b. rational c. conative d. cognitive

4. The affective component of an attitude __________.

a. is the mental picture a person has of an object, person or idea b. contains the feelings or emotions a person has about an object, person or idea c. is an individual’s intentions, actions or behavior d. refers to a person’s mental images, understanding and interpretations of an object, person or idea

5. An advertisement that encourages consumers to call a toll free number or access a website to purchase a product at a discount price focuses on which part of an attitude?

a. cognitive b. conative c. affective d. the inert set

Self Test

MKT 310 Advertising and Promotions

6. In using the affect referral approach to decision-making, the person considers ___________.

a. product attributes and the importance of attributes b. evoked, inept and inert sets of brands c. cognitive and conative cues d. the brand he or she likes the best

7. The consumer buyer behavior trend of individualism has resulted in consumers wanting ___________.

a. companies to design products just for them that meet their individual needs b. companies to develop time-saving products c. new products developed at a faster pace than ever before d. gender neutral products

8. The members of the buying center who shape purchasing decisions by providing information and criteria are called ___________.

a. users b. deciders c. influencers d. buyers

9. Decision rules that help employees make quick decisions regarding purchases are called ____________.

a. methodologies b. satisficing c. role playing d. heuristics

10. In the business-to-business buying process, evaluation of vendors normally occurs at two levels. The second level is ____________.

a. an initial screening of proposals b. vendor identification c. a vendor audit d. a sharing of vendor audit information

Answer Keys

MKT 310 Advertising and Promotions

Key Term Definitions

Involvement: The extent to which a stimulus or task is relevant to a consumer’s existing needs, wants or values.

Need for cognition: A personality characteristic an individual displays when he or she engages in and enjoys mental activities.

Attitude: A mental position taken toward a topic, person or event that influences the holder’s feelings, perceptions, learning processes and subsequent behaviors.

Evoked set: Consists of the set of brands a consumer considers during the information search and evaluation processes.

Inept set: Part of a memory set that consists of the brands that are held in a person’s memory but that are not considered because they elicit negative feelings.

Inert set: Part of a memory set of brands that hold the brands that the consumer has awareness of but has neither negative nor positive feelings about.

Straight rebuy: Occurs when the firm has previously chosen a vendor and intends to place a reorder.

Modified rebuy: The company buying team considers and evaluates new purchasing alternatives.

Derived demand: Demand based on, linked to or generated by the production and sale of some other good or service.

Dual channel marketing: Selling virtually the same goods or services to both consumers and businesses.

Compensatory heuristics: A purchasing decision model that assumes no one single brand will score high on every desirable attribute and that individual attributes vary in terms of their importance to the consumer.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

1. d

2. a

3. c

4. b

5. b

6. d

7. a

8. c

9. d

10. c

Notes

MKT 310 Advertising and Promotions

Unit 1 Examination Instructions

MKT 310 Advertising and Promotions

The Unit Examination

The unit examination contains 25 multiple choice questions, as well as a writing assignment.

Your grade on the examination will be determined by the percentage of correct answers. The university utilizes the following grading system:

A = 90% – 100% correct B = 80% – 89% correct C = 70% – 79% correct D = 60% – 69% correct F = 59% and below correct

4 grade points 3 grade points 2 grade points 1 grade point 0 grade points

Completing Unit One Examination

Before beginning your examination, we recommend that you thoroughly review the textbook chapters and other materials covered in each unit and follow the suggestions in the mastering the course content section of the syllabus.

This unit examination consists of objective test questions as well as a comprehensive writing assignment selected to reflect the learning objectives identified in each chapter covered so far in your textbook.

Additional detailed information on completing the examination, writing standards and how to submit your completed examination may be found in the syllabus for this course.

Unit 1 Examination

MKT 310 Advertising and Promotions

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)

1. Marketing account executives are facing increasing pressures related to ___________.

a. applicability b. accountability c. accessibility d. affordability

2. The individuals who develop the actual advertisements for promotional campaigns are called ___________.

a. receivers b. account executives c. brand managers d. creatives

3. The person or group who wishes to convey a message is which element of the communication process?

a. receiver b. encoder c. sender d. decoder

4. The verbal and nonverbal cues that a salesperson uses during a sales presentation are which part of the communication process?

a. encoding b. filtering out noise c. transmission d. sending

5. Integrated marketing communications affects all of the following except ___________.

a. business-to-business market b. competitors’ advertising c. internally directed communications d. marketing channel

Unit 1 Examination

MKT 310 Advertising and Promotions

6. The second element of an IMC marketing plan following a situation analysis is a ___________.

a. situational analysis b. target market c. SWOT analysis d. marketing objectives

7. The foundation of an IMC program consists of a careful review of all of the following except ___________.

a. company’s image b. the products to be sold c. the markets in which buyers are located d. the buyers to be served

8. The foundation of an integrated marketing communications program consists of managing the brand and corporate image, understanding buyer behaviors and a(n) ___________.

a. company assessment program b. analysis of the organization c. advertising management program d. promotions opportunity analysis

9. Promotions which are directly oriented to end users and include coupons, contests, premiums, refunds, rebates, free samples and price-off offers are ____________.

a. rebate programs b. trade promotions c. direct marketing programs d. consumer promotions

10. Advances in ____________ have dramatically changed marketing.

a. technology and communication b. global competition and micro-marketing c. integrated marketing methods and venues d. hand-held communication technologies and the Internet

11. The competitive environment is now more ____________.

a. concentrated b. local c. global d. benign

Unit 1 Examination

MKT 310 Advertising and Promotions

12. Brand parity means quality becomes less of a concern for consumers so purchase decisions are based on ____________.

a. price, availability, promotions or other criteria b. information found on the Internet c. advertising effectiveness d. retail store location

13. Which type of corporate name reveals what a company does?

a. conceptual b. implied c. iconoclastic d. overt

14. Which type of corporate name is unique, different and memorable without suggesting the company’s goods or services?

a. conceptual b. iconoclastic c. overt d. implied

15. A logo with a consensually held meaning, such as the Prudential Rock, displays ____________.

a. brand parity b. stimulus codability c. brand prominence d. product positioning

16. Selling Reese’s Peanut Butter Cup milkshakes at the DQ is an example of ____________.

a. flanker branding b. complementary branding c. cooperative branding d. extension branding

17. Charles sees only minor differences among the various brands of high definition televisions. This is an example of ____________.

a. flanker branding b. brand parity c. the private label problem d. brand equity

Unit 1 Examination

MKT 310 Advertising and Promotions

18. Traditionally, a package provided each of the following functions except ___________.

a. protect the contents b. provide for easy placement on store shelves c. provide for ease of shipping, moving and handling d. key component of a company’s integrated marketing communications plan

19. New trends in packaging include the following except ____________.

a. designed for ease of use b. contemporary and striking design c. prevent tampering d. meet consumer needs for speed, convenience and portability

20. The two components of the consumer decision-making process that are most critical to developing an integrated marketing communications program are ____________.

a. evaluation of alternatives and purchase decision b. problem recognition and information search c. problem recognition and evaluation of alternatives d. information search and evaluation of alternatives

21. During the external information search process for product information, consumers with high levels of involvement tend to spend ____________.

a. less time searching for external information b. more time shopping in retail stores c. rely on external information more than internal information d. more time searching for external information

22. If an advertisement by Pampers is designed to appeal to a person’s emotions first, the ad is addressing which component of an attitude?

a. affective b. cognitive c. value d. conative

23. Decision rules that help employees make quick decisions regarding purchases are called ____________.

a. methodologies b. satisficing c. role playing d. heuristics

Unit 1 Examination

MKT 310 Advertising and Promotions

24. When an acceptable purchasing alternative has been identified and it is taken, the process is called ____________.

a. standardization b. utilization c. satisficing d. decision maximization

25. A straight rebuy involves ____________.

a. buying materials from a new vendor b. purchasing a new building for an expansion project c. re-ordering raw materials from the same vendor d. seeking bids from a new vendor because of dissatisfaction with the current supplier

Unit 1 Examination

MKT 310 Advertising and Promotions

Writing Assignment for Unit One

• Include your name, student number, course number, course title and unit number on each page of your writing assignment (this is for your protection in case your materials become separated).

• Begin each writing assignment by identifying the question number you are answering followed by the actual question itself (in bold type).

• Use a standard essay format for responses to all questions (i.e., an introduction, middle paragraphs and conclusion).

• Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.

Word count is NOT one of the criteria that is used in assigning points to writing assignments. However, students who are successful in earning the maximum number of points tend to submit writing assignments that fall in the following ranges:

Undergraduate courses: 350 - 500 words or 1 - 2 pages. Graduate courses: 500 - 750 words or 2 - 3 pages. Doctoral courses: 750 - 1000 words or 4 - 5 pages.

Plagiarism

Please answer ONE of the following:

1. What are the steps in preparing a marketing plan?

2. What recent trends make an IMC approach valuable to companies in the marketplace?

3. What are the four types of corporate names?

You Can Do It

MKT 310 Advertising and Promotions

You have just completed Unit 1 of this course.

You are off to a great start!

Keep up the good work!

Objectives

MKT 310 Advertising and Promotions

Instructions to Students

Chapter Four The IMC Planning Process

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Determine how the three Cs of the IMC planning context can form the basis for an effective advertising program.

2. List categories that are used to identify consumer target markets or market segments.

3. List categories that are used to identify business-to-business market segments.

4. Distinguish how the various approaches to positioning influence the selection of target markets.

5. Analyze how the various marketing communications objectives interact with the other elements of an IMC planning process.

6. Examine the relationships between communications expenditures and company sales.

• Read pages 80-111 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

MKT 310 Advertising and Promotions

This chapter describes the nature of the integrated marketing communications planning process. It begins with an analysis of the company’s context including a review of customers, competitors and communications. This allows the marketing team to identify potential target markets and position strategies that match those markets. Next, communications objectives may be specified. Finally, a budget designed to achieving the communication objectives is matched with the IMC components that will be employed. In addition, any international considerations must be taken into account.

Key Terms

MKT 310 Advertising and Promotions

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Market segment:

Market segmentation:

Demographics:

Psychographics:

Threshold effects:

Marginal analysis:

Decay effects:

Meet-the-competition budget:

Payout-planning budget:

Cultural assimilator:

Summary

MKT 310 Advertising and Promotions

A marketing communication planning program begins with the analysis of the organization’s context including customers, competitors and communications. When the analysis is complete, target markets may be selected in conjunction with product-positioning tactics.

Market segmentation is identifying sets of business or consumer groups with distinct characteristics. Segments must be clearly different, large enough to support a marketing campaign and reachable through some type of media. Consumer groups that can be segmented include those identified by demographics including gender, age, income and ethnic heritage. Markets can also be identified using psychographic, generational and geographic delineations. Geodemographic segmentation combines demographic, psychographic and geographic information together. Other ways to categorize consumers are by the benefits they receive from goods or services and by the ways they use products.

Business-to-business segmentation can be accomplished by targeting business customers by industry, business type, the size of the company, geographic location, usage and customer value calculations. Marketing managers should carefully specify the company’s consumer and business market segments. All other promotions opportunity analysis processes are tied to the identification of key customers.

Product positioning represents the perceptions in consumer minds of the nature of a company and its products relative to the competition. Positioning may be based on product attributes, competitors, product uses or applications, the price-quality relationship, product class or through the association with a cultural symbol.

Self Test

MKT 310 Advertising and Promotions

Multiple Choice Questions (Circle the correct answer)

1. The first step in the IMC planning process is ____________.

a. developing communications objective b. defining the firm’s target market c. analysis of the company’s context d. an analysis of the product positioning

2. In examining customers during the IMC planning context analysis, the easiest group to study is ____________.

a. potential new customers b. former customers c. current customers d. competitors’ customers

3. In examining customers during the IMC planning context analysis, the reason for studying former customers is to ____________.

a. determine how to improve the firm’s product or service b. determine which customers a firm should seek c. determine which target group has the highest potential d. understand why they defected

4. The second phase of an analysis of the company’s context is examining ____________.

a. the target market and positioning b. communications c. competitors d. customers

5. The following are methods of segmenting consumer markets EXCEPT _____________.

a. psychographics b. industry size c. generations d. demographics

Self Test

MKT 310 Advertising and Promotions

6. The product positioning strategy based on how a product is used is the positioning approach of _____________.

a. product attributes b. use or application c. price-quality relationship d. competitors

7. A communications budget is based on _____________.

a. a targeted level of return on investment b. both communication and marketing objectives c. communication objectives d. marketing objectives

8. Which method of developing marketing communications budget is often used in highly, competitive markets where rivalries between competitors are intense?

a. meet the competition b. what we can afford c. percentage of sales d. objective and task

9. Managers who do not recognize the benefits of marketing may be most inclined to use which method of communications budgeting?

a. percentage of sales b. payout planning c. what we can afford d. meet the competition

10. In terms of ad spending by media in the United States, the largest category is ____________ at 43.6 percent.

a. the Internet b. magazines c. television d. newspapers

Answer Keys

MKT 310 Advertising and Promotions

Key Term Definitions

Market segment: A set of businesses or group of individual customers with distinct characteristics.

Market segmentation: Identifying specific groups (target markets) based on their needs, attitudes and interests.

Demographics: Population characteristics such as gender, age, educational levels, income and ethnicity.

Psychographics: Patterns of responses that reveal a person’s activities, interests and opinions (AIO).

Threshold effects: The point at which an advertising or promotional program has begun to affect customer responses.

Marginal analysis: A model that shows when additional expenditures on advertising and promotions have an adverse affect on profits.

Decay effects: Declines in advertising effectiveness that occur when advertising stops and consumers begin to forget about the company.

Meet-the-competition budget: A communications budget in which expenditures are raised or lowered to match the competition.

Payout-planning budget: A budgeting method that establishes a ratio of advertising to sales or market share.

Cultural assimilator: A person who is familiar with the local language and culture of a given country who is employed to help marketing efforts in that particular region.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

1. c

2. c

3. d

4. c

5. b

6. b

7. b

8. a

9. c

10. c

Notes

MKT 310 Advertising and Promotions

Objectives

MKT 310 Advertising and Promotions

Instructions to Students

Chapter Five Advertising Management

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Specify the essential ingredients in advertising campaign management, including the role of advertising.

2. Calculate when a company should employ an external advertising agency rather than completing the work in-house.

3. Characterize the steps that are completed as part of advertising campaign management.

4. List the primary goals of advertising.

5. Pinpoint the key elements of an advertising budget.

6. Explore issues in the media selection process.

7. Determine how a creative brief facilitates effective advertising.

• Read pages 112-139 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

MKT 310 Advertising and Promotions

This chapter focuses on advertising campaign management, which is the process of preparing and integrating an advertising program with the overall IMC message. One element is developing the message theme which outlines the key idea(s) the advertising campaign conveys. Chapters 6 and 7 describe advertising design processes including deciding on the leverage point to use, the major appeal in the advertising campaign and the type of executional framework to use.

A leverage point is the key element in an advertisement that taps into, or activates, a consumer’s personal value system—a value, idea or concept. The appeal is that the approach used to design the advertisement that attracts attention or presents information to consumers is done through the use of humor, fear, sex, logic or emotions. The executional framework explains how the message will be delivered. Methods include the slice-of-life approach, fantasies, dramatizations and ads constructed using animation.

Key Terms

MKT 310 Advertising and Promotions

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Message theme:

Leverage point:

Appeal:

Crowdsourcing:

Focus group:

Top choice:

Pulsating schedule of advertising:

Flighting schedule of advertising:

Support:

Constraints:

Summary

MKT 310 Advertising and Promotions

Effective advertising requires matching a noticeable message with appropriate media. Every aspect of a company’s activities including company business cards, stationery, brochures, advertisements and commercials should spell out the organization’s identity and image. The goal of an IMC program is to make sure all of these elements speak with the same voice. Customers must clearly understand the nature of the company, its goods and services and its methods of doing business.

This chapter reviews the advertising management process. Effective advertising is more likely to occur when the firm has a well-defined mission statement and targets its energies in the direction of creating goods or services to meet the needs of a target market. Then, an integrated marketing communications program can build on the central theme pursued by those in the firm. Advertising management begins with deciding whether an in-house department or group should develop advertisements or whether an external advertising agency should be retained. When choosing an external agency, the company’s leaders establish clear steps to lead to the best chance that the optimal agency will be selected. The steps include (1) spelling out and prioritizing organizational goals, (2) carefully establishing quality selection criteria, (3) screening firms based on those criteria, (4) requesting references from firms that are finalists, (5) performing background checks, (6) requesting creative pitches, (7) making an on-site visit to get to know those in the agency and (8) offering and finalizing a contract.

Common selection criteria used in selecting agencies include: (1) the size of the agency matching the size of the company, (2) relevant experience, (3) no conflicts of interest, (4) production capabilities, (5) quality creative capabilities,(6) suitable media purchasing skills, (7) other services that can be rendered as needed, (8) client retention rates and (9) a good chemistry between those in the company and those in the agency. Carefully utilizing these criteria increases the odds of a match between the company and the agency, which heightens levels of success.

Within the advertising agency, the account manager performs the functions of soliciting accounts, finalizing contracts and selecting creatives to prepare advertising campaigns. Account executives are go-betweens who mediate between the agency and the client company. Account executives also help client organizations refine their IMC messages and programs. Creatives prepare advertisements and are guided by the creative brief. This document spells out: (1) the objective of the promotional campaign, (2) the target audience, (3) the message theme, (4) the support and (5) the constraints. The message theme is an outline of the key idea(s) that the program is supposed to convey. The constraints include logos, warranties, disclaimers or legal statements that are part of various advertisements.

Advertising management is an important ingredient in the success of an integrated marketing communications program. A quality ad that garners the attention of people in the target audience, makes a key memorable point and moves buyers to action is difficult to prepare. At the same time, company officials and market account executives know that designing effective ads with tangible results is a challenging but necessary activity. It is important to go through every step of the process carefully to help the company achieve its marketing goals in both the short and long term.

Self Test

MKT 310 Advertising and Promotions

Multiple Choice Questions (Circle the correct answer)

1. A boutique-type advertising agency ____________.

a. offers a wide array of services b. is designed to handle smaller accounts c. offers one or a few specialized service or works with one type of client d. serves in-house clients

2. A media service company ____________.

a. handles direct marketing efforts b. negotiates and purchases media packages c. negotiates contract rates between the agency and the client d. negotiates pay rates for creatives and advertising performers

3. The following are important evaluation criteria that should be considered in selecting an advertising agency, EXCEPT _____________.

a. size of the agency b. conflicts of interest c. governmental regulations d. relevant experience of the agency

4. Which individual works closely with the account executive to schedule the various aspects of the agency’s work to ensure the work is completed by the target deadline?

a. traffic manager b. media planner c. media buyer d. account planner

5. The person who develops and produces the actual advertisement is the _____________.

a. account planner b. account executive c. creative d. media planner

Self Test

MKT 310 Advertising and Promotions

6. Discovering the major selling idea for a good or service is part of which component of advertising research?

a. general pre-planning input b. consumer-oriented research c. product-specific research d. quantitative research

7. Predicting consumer behavior by concentrating on the motives of purchasing involves using a(n) _____________.

a. product-specific research approach b. anthropological approach c. sociological approach d. psychological approach

8. For a brand to have a high level of brand equity, it must have all of the following EXCEPT ______________.

a. top choice status b. brand parity status c. top-of-mind status d. high level of brand awareness

9. A flighting schedule of advertising ______________.

a. involves alternating levels of advertising from a high to low amount b. involves advertising during certain times of the year with no advertising at other times c. involves continuous advertising with bursts of higher intensity d. is level throughout the year

10. In terms of advertising allocation, a continuous campaign schedule is best for products that have _____________.

a. peak seasons at certain times in the year and are not purchased at all during other times of the year b. steady sales throughout the year c. a high level of fluctuating demand d. peak seasons but do sell throughout the entire year

Answer Keys

MKT 310 Advertising and Promotions

Key Term Definitions

Message theme: An outline of key idea(s) the advertising campaign conveys.

Leverage point: The key element in the advertisement that taps into, or activates, a consumer’s personal value system.

Appeal: The approach used to design the advertisement that attracts attention or presents information to consumers through the use of humor, fear, sex, logic or emotions.

Crowdsourcing: Process of outsourcing the creative aspect of an advertisement to the public.

Focus group: A set of consumers or businesspeople who are retained to talk about a particular topic, product or brand.

Top choice: The first or second pick when a consumer reviews his or her evoked set of possible purchasing alternatives.

Pulsating schedule of advertising: Continuous advertising with bursts of higher intensity (more ads in more media) during the course of the year.

Flighting schedule of advertising: A schedule whereby companies present ads only during specific times and not at all during other times of the year.

Support: The facts that substantiate the unique selling point of a creative brief.

Constraints: The company’s legal and mandatory restrictions placed on advertisements; they include legal protection for trademarks, logos and copy registrations.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

1. c

2. b

3. c

4. a

5. c

6. c

7. d

8. b

9. b

10. b

Notes

MKT 310 Advertising and Promotions

Objectives

MKT 310 Advertising and Promotions

Instructions to Students

Chapter Six Advertising Design: Theoretical Frameworks and Types of Appeals

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Propose how the hierarchy of effects model and a means-ends analysis help an advertising creative design better commercials.

2. Discover how leverage points and taglines increase advertising effectiveness.

3. Interpret the roles visual and verbal images play in advertisements.

4. Name the seven main types of advertising appeals.

5. Determine how fear or humor can be used to create an effective advertisement.

6. Consider reasons why sex plays such a prominent role in advertising.

7. Strategize how music, rationality and scarcity can be used to increase advertising effectiveness.

8. List the primary areas of concern in international advertising.

• Read pages 140-167 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

MKT 310 Advertising and Promotions

Two major topics are covered in this chapter. The first is the three theoretical approaches to advertising design: the hierarchy of effects model, means-ends theory and visual and verbal imaging. The second topic is to review, in detail, the major appeals used by advertisers. The goal of the account executive and the creative is to select the appeal that has the best chance of leading to the desired outcome or behavior. From there, the actual message content is developed. Before beginning the process of creating the ad, it is important to remember the steps taken up to this point. These are summarized by noting the items in the creative brief.

Key Terms

MKT 310 Advertising and Promotions

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Hierarchy of effects model:

Means-end chain:

Means-End Conceptualization of Components for Advertising Strategy (MECCAS):

Tagline:

Visual Esperanto:

Advertising appeals:

Severity:

Vulnerability:

Decorative models:

Summary

MKT 310 Advertising and Promotions

Developing effective advertisements is the culmination of a series of integrated marketing communications efforts. They include knowing the objective of the ad, the target audience the message theme used, the type of support needed and any constraints that apply. Then, a creative must work within the context of key advertising theories in selecting the correct media and designing the leverage point and message appeal that work effectively within each medium. Three important theoretical approaches drive the development of many advertisements. The hierarchy of effects model suggests consumers move through a series of stages as they are persuaded to make a purchase. Although the process probably is not a lock-step model that every buyer follows, the hierarchy of effects approach does provide important information about which mental issues to account for in various advertising campaigns. The hierarchy of effects model can be combined with the three main elements present in attitudes: (1) cognitive, (2) affective and (3) conative components. Ads are designed to influence affective feelings, cognitive knowledge or conative intentions to act or behave based on an attitude. A means-end chain displays the linkages between a means to achieve a desired state and the end or personal value at issue. Advertisers can select personal values that mesh with the key characteristics of the target market and then construct ads designed to provide them the means to achieve these ends by purchasing the good or service. These ideas help the creative develop a leverage point to move the buyer from understanding the product’s benefits to incorporating those benefits with his or her personal values.

Visual and verbal issues should also be considered in the formation of an ad. Concrete visual images are easily recognized and recalled. Abstract images may be linked with values or emotions the product creates or the feeling the buyer should experience that may be associated with the product or company. Visual elements are key components in almost every form of advertising. Verbal elements must reach the more rational, central route of the audience’s mental processing procedures.

Beyond these components, advertising creatives must form messages using one (or more) of the seven major appeals: (1) fear, (2) humor, (3) sex, (4) music, (5) rationality, (6) emotions or (7) scarcity. Just as there are logical combinations of media, there are logical combinations of these appeals for various messages. Often, music is the backdrop for messages invoking fear, humor, sex and emotions. Humor can be linked with sex, music rationality (by showing how being illogical is silly or funny) and scarcity. Rationality combines with fear in many commercials. The goal of the creative is to design a message argument that takes advantage of the various characteristics of these appeals, breaks through clutter and convinces the audience to buy the item involved.

Business-to-business ads often appear in print and many times include rational approaches in the copy because the purchase decision variables are more complex. At the same time, many advertisers have recently discovered that emotional ads can be effective, which expands business-to-business advertising into other venues such as television, radio and the Internet. The process of designing ads for international markets is quite similar to that for domestic ads. The major difference is careful consideration of local attitudes and customers with due care given to the language, slang and symbols of the area.

Self Test

MKT 310 Advertising and Promotions

Multiple Choice Questions (Circle the correct answer)

1. According to a survey by Adweek Media and Harris Interactive, the age group that said they were the most influenced by advertising (almost half) was ____________.

a. 70 and older b. 18-34 years old c. 55-69 years old d. 35-54 years old

2. The third step in a purchase decision, according to the hierarchy of effects model, is ____________.

a. conviction b. liking c. preference d. awareness

3. In the hierarchy of effects model, preference for a particular product only occurs after each of the following occurs EXCEPT ____________.

a. liking b. awareness c. conviction d. knowledge

4. The cognitive component of attitude matches the hierarchy of effects model’s components of _____________.

a. the actual purchase b. liking, preference and conviction c. conviction and action d. awareness and knowledge

5. The conative component of attitude matches the hierarchy of effects model’s element of ____________.

a. conviction b. the actual purchase c. knowledge d. preference

Self Test

MKT 310 Advertising and Promotions

6. A means-ends chain is the basis for the _____________.

a. components of attitudes b. MECCAS model c. visual and verbal cue consistency approach d. hierarchy of effects model

7. The key phrase of an advertisement is the _____________.

a. tagline b. leverage point c. product benefit d. personal value

8. The following are types of appeals that can be used in designing ads EXCEPT ____________.

a. sex b. humor c. fear d. fantasy

9. Television and print advertisements by Victoria Secret’s of models wearing only underwear are using which sexual appeal?

a. overt sexuality b. sexual suggestiveness c. subliminal technique d. nudity or partial nudity

10. Although sexually-oriented advertisements attract attention, which is lower for ads using a sex appeal than for ads using some other type of appeal?

a. the level of physiological response b. the interest level c. the level of sexual arousal d. brand recall

Answer Keys

MKT 310 Advertising and Promotions

Key Term Definitions

Hierarchy of effects model: A marketing approach suggesting that a consumer moves through a series of six steps when becoming convinced to make a purchase: (1) awareness, (2) knowledge, (3) liking, (4) preference, (5) conviction and (6) the actual purchase.

Means-end chain: An advertising approach in which the message contains a means (a reasoning or mental process) to lead the consumer to a desired end state such as a key personal value.

Means-End Conceptualization of Components for Advertising Strategy (MECCAS): An advertising approach that suggests using five elements in creating ads: (1) the product’s attributes, (2) consumer benefits, (3) leverage points, (4) personal values and (5) the executional framework.

Tagline: A catchy, easy-to-remember phrase in an ad used to make the key point and reinforce the company’s image to the consumer.

Visual Esperanto: A universal language that makes global advertising possible for any good or service by recognizing that visual images are more powerful than verbal descriptions.

Advertising appeals: Approaches to reaching consumers with ads. The seven major appeals are: (1) fear, (2) humor, (3) sex, (4) music, (5) rationality, (6) emotions and (7) scarcity.

Severity: Part of the fear behavioral response model that leads the individual to consider how strong certain negative consequences of an action will be.

Vulnerability: Part of the fear behavioral response model that leads the individual to consider the odds of being affected by the negative consequences of an action.

Decorative models: Models in an advertisement whose primary purpose is to adorn the product as a sexual or attractive stimulus without serving a functional purpose.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

1. b

2. b

3. c

4. d

5. b

6. b

7. a

8. d

9. d

10. d

Notes

MKT 310 Advertising and Promotions

Objectives

MKT 310 Advertising and Promotions

Instructions to Students

Chapter Seven Advertising Design: Message Strategies and Executional Frameworks

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Assess how the main types of executional frameworks help to deliver quality advertising messages.

2. Distinguish characteristics that are most important when selecting a source or spokesperson for advertisements and commercials.

3. Characterize the process used to create advertisements.

4. Pinpoint the principles of advertising effectiveness.

5. Determine how advertising programs are adjusted to fit international circumstances.

• Read pages 168-195 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

MKT 310 Advertising and Promotions

This chapter first focuses on the main three types of message strategies. The major types of executional frameworks are explained in the second part. The third section describes the four types of sources or spokespersons that appear in various advertisements and the criteria used to select them are reviewed. Finally, the fourth part notes the principles of effective advertising campaigns.

Key Terms

MKT 310 Advertising and Promotions

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Message strategy:

Generic messages:

Preemptive messages:

Hyperbole:

Resonance advertising:

Emotional advertising:

Executional framework:

Expert authority:

Sources and spokespersons:

Variability theory:

Summary

MKT 310 Advertising and Promotions

Advertising is the process of transmitting a personal message through one or more impersonal media. The message should reflect the image that occurs throughout an IMC program. Three types of message strategies are present in advertisements. Cognitive strategies emphasize rational and logical arguments to compel consumers to make purchases. Affective strategies are oriented toward buyer emotions and feelings. Conative strategies are linked to more direct responses, behaviors and actions. These strategies should be integrated with various types of appeals through the media selected for the campaign.

Executional frameworks tell the story in the ad. Animation has become more sophisticated and provides many new creative approaches in the design of ads. The slice-of-life approach and dramatizations are problem-solving types of ads leading the consumer to something better by using the product. Testimonials are rendered by individuals who have realized the benefits of a product. An authoritative expert can build consumer confidence in a product or company. Demonstrations show how products can be used. A fantasy takes people away from the real world to a make believe place. This makes the product more exotic and desirable. Informative ads render basic information about the product. Each execution can be used effectively to persuade consumers and business-to- business buyers to consider a company’s offerings.

Celebrities, CEOs, experts and typical persons can be chosen to be “out front” in the advertisement. Each has advantages and disadvantages. The marketing team selects sources or spokespersons based on the individual’s attractiveness, likeability, trustworthiness, expertise or credibility. The more of these characteristics that are present, the better off the advertiser will be. Effective ad campaigns are based on the seven principles of visual consistency, sufficient campaign duration, repeated taglines, consistent positioning, simplicity, presentation of an identifiable selling point and creation of an effective flow. Creatives and account executives must incorporate these principles into the advertising campaign to enhance the odds of success. Also, clutter must be overcome by repeating ads and showing them in various media or in some other way.

Designing ads is often considered the most glamorous part of the advertising industry and it is in many ways. Remember, however, that the other side of the glamour coin is hard work and the constant pressure to perform. Many people think being a creative is a burnout-type job. At the same time, those who have proven track records of success are well rewarded for their efforts. Utilizing the principles presented in this chapter can be a key to success in the highly competitive and exciting business of advertising design.

Self Test

MKT 310 Advertising and Promotions

Multiple Choice Questions (Circle the correct answer)

1. An outline of the key ideas in an advertisement is the _____________.

a. cognitive message b. generic message c. message theme d. message strategy

2. Which message strategy is a claim of superiority based on a product’s specific attribute or benefit, which cannot then be used by a competitor?

a. preemptive b. unique selling proposition c. generic d. hyperbole

3. Which type of message strategy is designed to elicit some type of behavior or action on the part of the viewer?

a. emotional b. affective c. conative d. corporate

4. The manner in which an advertising appeal is presented is a(n) _____________.

a. conative message strategy b. executional framework c. humor methodology d. rational approach

5. The Pillsbury Dough character used by Pillsbury is an example of which type of executional framework?

a. fantasy b. animation c. testimonial d. dramatization

Self Test

MKT 310 Advertising and Promotions

6. A credit card ad dramatically showing a consumer about to be attacked in a war-like fashion by high interest charges is most likely using which type of executional framework?

a. slice-of-life b. resonance advertising c. dramatization d. testimonial

7. In terms of spokespersons, expert sources would include each of the following EXCEPT ____________.

a. physicians b. CEOs of corporations c. financial planners d. lawyers

8. In terms of spokesperson characteristics, which is the degree of confidence or the level of acceptance consumers place in the spokesperson’s message?

a. trustworthiness b. credibility c. likeability d. expertise

9. A physician endorsing a specific brand of medicine would have a high level of _____________.

a. likeability b. attractiveness c. personality d. expertise

10. Visual consistency is important in developing effective advertisements because _____________.

a. it maintains ad consistency b. buyers, whether consumers or businesses, spend very little time viewing or listening to ads c. of the high cost of producing new ads d. it creates a higher level of brand equity

Answer Keys

MKT 310 Advertising and Promotions

Key Term Definitions

Message strategy: The primary tactic used to deliver the message. Generic messages: Direct promotions of product attributes or benefits without any claim of superiority.

Preemptive messages: Claims of superiority based on a specific attribute or benefit of a product that preempts the competition from making the same claim.

Hyperbole: Making an untestable claim based upon some attribute or benefit.

Resonance advertising: Attempting to connect a product with a consumer’s experiences to develop stronger ties between the product and the consumer.

Emotional advertising: Attempting to elicit powerful emotions that eventually lead to brand recall and choice.

Executional framework: The manner in which an ad appeal is presented.

Expert authority: When an advertiser seeks to convince viewers that a given product is superior to other brands in some authoritative manner.

Sources and spokespersons: Persons in the advertisement who make the actual presentation.

Variability theory: A theory stating that when a consumer sees the same advertisement in different environments, the ad will be more effective.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

1. c

2. a

3. c

4. b

5. b

6. c

7. b

8. a

9. d

10. b

Notes

MKT 310 Advertising and Promotions

Unit 2 Examination Instructions

MKT 310 Advertising and Promotions

The Unit Examination

The unit examination contains 25 multiple choice questions, as well as a writing assignment.

Your grade on the examination will be determined by the percentage of correct answers. The university utilizes the following grading system:

A = 90% – 100% correct B = 80% – 89% correct C = 70% – 79% correct D = 60% – 69% correct F = 59% and below correct

4 grade points 3 grade points 2 grade points 1 grade point 0 grade points

Completing Unit Two Examination

Additional detailed information on completing the examination, writing standards and how to submit your completed examination may be found in the syllabus for this course.

Unit 2 Examination

MKT 310 Advertising and Promotions

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)

1. The following are methods of segmenting consumer markets EXCEPT ____________.

a. industry size b. psychographics c. generations d. demographics

2. Product positioning is the ____________.

a. perception consumers have of a company or brand relative to competitors b. number and level of products offered by a company c. perception consumers have of a company or brand relative to other brands being offered by the company d. level of brand equity faced by a company or brand

3. Wal-Mart uses the tagline “save money, live better.” This is an example of product positioning by _____________.

a. use or application b. cultural symbol c. price-quality relationship d. product user

4. The product positioning strategy based on a category or class of products is the positioning approach of _____________.

a. product user b. use or application c. cultural symbol d. product class

5. The early effects of an advertising campaign may be minimal but over time gain momentum. This phenomena is called ______________.

a. threshold effects b. diminishing returns c. carryover effect d. the sales-response curve

Unit 2 Examination

MKT 310 Advertising and Promotions

6. When a concave, downward function is present, increasing advertising expenditures result in ____________.

a. greater sales b. average returns c. diminishing returns d. further advertising expenditures

7. Which is a model that shows further advertising and promotion expenditures may result in adverse effects on profits?

a. promotions opportunity curve b. a marginal analysis c. average return on investment curve d. a sales-response function

8. In terms of media expenditures, the fastest growing media outlet is ____________.

a. television b. network TV c. outdoor advertising d. the Internet

9. A major principle guiding any advertising program should be ____________.

a. consistency b. personality c. conversation d. complexity

10. Advantages of an in-house advertising department include all of the following EXCEPT _____________.

a. lower costs b. the CEO and upper management can work closely with the marketing team c. greater expertise and talent on creating ads d. the message can be aligned with the brand and other company communications

11. The first step in selecting an advertising agency is to _____________.

a. select the process to be used and the criteria for selection b. screen an initial list of applicants c. request client references d. set goals

Unit 2 Examination

MKT 310 Advertising and Promotions

12. A stewardship report describes _____________.

a. the status of an advertising campaign for the client b. the nature of a company’s public relations program c. how an advertising agency is selected d. how the client has developed its advertising budget

13. A “left-brain” advertisement is _____________.

a. used with pulsating distribution schedules b. used primarily for consumer advertisements c. oriented towards the emotional or feeling side of the brain d. oriented towards the logical, rational side of the brain

14. Which product is most likely to include a disclaimer warranty?

a. shirt b. medicine c. scotch tape d. hammer

15. In terms of the hierarchy of effects model, to obtain brand loyalty, _____________.

a. all six steps must be present b. knowledge and preference is essential, the other steps are not c. awareness, knowledge and conviction are essential, the other steps are not d. liking, preference and conviction are essential, the other steps are not

16. The attitude formation sequence which matches the typical steps in the hierarchy of effects model is ____________.

a. cognitive-affective-conative b. discovery-liking-decision c. affective-conative-cognitive d. liking-decision-discovery

17. A leverage point is the feature of the ad that moves the viewer from understanding the product’s benefits to linking those benefits with ____________.

a. some type of action or change in attitude b. personal values c. a liking for the product d. the visual element into both a mental picture and words

Unit 2 Examination

MKT 310 Advertising and Promotions

18. In terms of the visual element of an advertisement, a concrete image has a ______________.

a. lower level of recall than an abstract image b. lesser impact on the cognitive component of attitude than on the affective component c. higher level of recall than an abstract image d. lesser impact on the affective component of attitude than an abstract image

19. The appeal that often wins awards and tends to be a favorite among judges is ______________.

a. emotions b. humor c. fear d. sex

20. In determining the level of sex appeal to use in an advertisement, it is important to consider ______________.

a. society’s view and level of acceptance at the time the ad is to run b. how decorative models are being used c. the target audiences’ view of sexuality d. the amount of sexually-oriented advertising that is being used by competitors

21. The goal of a generic message strategy is to _____________.

a. preempt the competition from using a particular claim or benefit b. make the brand synonymous with the product category c. persuade viewers of the brand’s superiority d. increase brand loyalty

22. Using music to build emotions surrounding a product is tied to which type of message strategy?

a. affective b. cognitive c. conative d. brand

23. An affective message strategy that connects a product with a consumer’s experiences to build stronger ties with the consumer is which form of message strategy?

a. generic b. emotional c. cognitive d. resonance

Unit 2 Examination

MKT 310 Advertising and Promotions

24. Which strategy is often used to promote a stronger brand name?

a. conative b. affective c. cognitive d. generic

25. A credit card ad dramatically showing a consumer about to be attacked in a war-like fashion by high interest charges is most likely using which type of executional framework?

a. resonance advertising b. testimonial c. dramatization d. slice-of-life

Unit 2 Examination

MKT 310 Advertising and Promotions

Writing Assignment for Unit Two

• Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.

Undergraduate courses: 350 - 500 words or 1 - 2 pages. Graduate courses: 500 - 750 words or 2 - 3 pages. Doctoral courses: 750 - 1000 words or 4 - 5 pages.

Plagiarism

Please answer ONE of the following:

• Include your name, student number, course number, course title and unit number on each page of your writing assignment (this is for your protection in case your materials become separated).

• Begin each writing assignment by identifying the question number you are answering followed by the actual question itself (in bold type).

• Use a standard essay format for responses to all questions (i.e., an introduction, middle paragraphs and conclusion).

1. What roles can music play in advertisements?

2. Name the ways to present claims in authoritative executions.

3. What is the first step in the IMC Planning Process? Describe the components.

You Can Do It

MKT 310 Advertising and Promotions

With Unit 2 complete, you are half way through the course.

Take a break and reward yourself

for a job well done!

Objectives

MKT 310 Advertising and Promotions

Instructions to Students

Chapter Eight Traditional Media Channels

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Define media strategy.

2. List elements and individuals involved in media planning.

3. Identify some of the primary advertising objectives.

4. Distinguish the advantages and disadvantages associated with each of the traditional advertising media.

5. Propose how a marketing team can use media mix to increase advertising effectiveness.

6. Characterize key issues associated with media selection for business-to-business markets.

7. Identify issues associated with media selection in international markets.

• Read pages 196-227 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

MKT 310 Advertising and Promotions

This chapter is devoted to explaining the nature of the advertising media selection. The topics to be covered include media strategy, media planning processes and the roles of the media planner and buyer, advertising objectives, media choices based on the advantages and disadvantages of each medium and media selection in business-to-business and international settings.

Development of an advertising campaign within the framework of an integrated marketing communications program is the most important function an advertising agency can provide. Advertising media selection is an important element in the success of any advertising program.

Key Terms

MKT 310 Advertising and Promotions

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Media planner:

Spot ad:

Reach:

Frequency:

Ratings:

Continuity:

Intrusion value:

Effective reach:

Effective frequency:

Media multiplier effect:

Summary

MKT 310 Advertising and Promotions

This chapter reviews the media selection process. A media strategy is the process of analyzing and choosing media for an advertising and promotions campaign. Media planners and buyers complete much of this work. The media planner’s primary job is to formulate a program stating where and when to place advertisements. Media planners work closely with creatives and account executives. Media buyers purchase the space and negotiate rates, times and schedules for the ads. The goals of reach, frequency, opportunity to see, gross rating points, effective rating points, cost, continuity and impressions drive the media selection process. Reach is the number of people, households or businesses in a target audience exposed to a media vehicle or message schedule at least once during a given time period. Frequency is the average number of times an individual, household or business within a particular target market is exposed to a particular advertisement within a specified time period. Gross rating points measure the impact or intensity of a media plan. Cost per thousand (CPM) is one method of finding the cost of the campaign by assessing the dollar cost of reach 1,000 members of the media vehicle’s audience. Cost per rating point is a second cost measure which assesses the efficiency of a media vehicle relative to a firm’s target market. Ratings measure the percentage of a firm’s target market that is exposed to a show on television or an article in a print medium. Continuity is the schedule or pattern of advertisement placements within an advertising campaign period. Gross impressions are the number of total exposures of the audience to an advertisement.

The three-exposure hypothesis suggests that a consumer must be exposed to an ad at least three times before it has the desired impact; other experts believe even more exposures are necessary. In contrast, recency theory suggests that ads truly reach only those wanting or needing a product and that the carryover effects of advertising diminish rapidly. It is necessary, therefore, to advertise on a continuous basis to ensure that the message is noticed by consumers when a purchase decision is made. In addition to these basic concepts, advertising experts often utilize the concepts of effective frequency and effective reach. Effective frequency is the number of times a target audience must be exposed to a message to achieve a particular objective. Effective reach is the percentage of an audience that must be exposed to a particular message to achieve a specific objective.

In seeking advertising goals, marketing experts, account executives and others must assess the relative advantages and disadvantages of each individual advertising medium. Thus, television, radio, outdoor billboards, the Internet, magazines, newspapers and direct mail should all be considered as potential ingredients in a campaign. Other new media can be used to complement and supplement the more traditional media outlets. Logical combinations of media must be chosen to make sure the intended audience is exposed to the message. In business-to-business settings, companies can combine consumer media outlets with trade journals and other business venues to attempt to reach members of the buying center. International advertising media selection is different in some ways from that which takes place in the United States because media buying processes differ as do media preferences of locals in various countries. At the same time, the process of media selection is quite similar: marketing experts choose media they believe will reach the target audience in an effective manner.

Self Test

MKT 310 Advertising and Promotions

Multiple Choice Questions (Circle the correct answer)

1. The part of the media plan that reviews the fundamental marketing program is a(n) ____________.

a. media strategy b. marketing analysis c. advertising analysis d. media mix

2. The number of people, households or businesses in a target market who are exposed to a media vehicle or message schedule at least once during a given time period is _____________.

a. frequency b. impressions c. demographics d. reach

3. In media planning, instead of frequency, which is the commonly used measure?

a. reach b. opportunity to see (OTS) c. cost per thousand (CPM) d. gross rating points (GRP)

4. The cumulative exposures achieved in a given time period is called _____________.

a. reach and frequency b. gross rating points (GRP) c. opportunities to see (OTS) d. cost per thousand (CPM)

5. If the CPM for National Geographic is $16.44, it means it will cost $16.44 to reach _____________.

a. one million readers b. one thousand readers c. the selected target audience d. 1644 readers

Self Test

MKT 310 Advertising and Promotions

6. Cost per rating point (CPRP) is calculated as _____________.

a. cost of media buy divided by gross exposures b. ratings divided by gross exposures c. cost of media buy divided by the vehicle’s rating d. cost of the media buy multiplied by the number of viewers

7. Effective frequency refers to the _____________.

a. number of times a target audience must be exposed to an ad for it to be effective b. percentage of the audience that has seen the ad a minimum of three times c. percentage of the audience that must be exposed to an ad to achieve an objective d. degree of selective attention given by the target audience relative to the objective

8. The percentage of a target audience must be exposed to a message to achieve a particular objective is called _____________.

a. effective frequency b. effective reach c. opportunities to see (OTS) d. gross rating points

9. The number of households turned to a program divided by the total number of households with a television turned on calculates _____________.

a. rating b. frequency c. recall d. share

10. The following are disadvantages of outdoor advertising EXCEPT _____________.

a. little segmentation possible b. short exposure time c. high cost per impression d. brief message duration

Answer Keys

MKT 310 Advertising and Promotions

Key Term Definitions

Media planner: The individual who formulates the media program stating where and when to place advertisements.

Spot ad: A one-time ad placed on a local television station.

Reach: The number of people, households or businesses in a target audience exposed to a media vehicle or message schedule at least once during a given time period.

Frequency: The average number of times an individual, household or business within a particular target market is exposed to a particular advertisement within a specified time period.

Ratings: A measure of the percentage of a firm’s target market that is exposed to a show on television or an article in a print medium.

Continuity: The schedule or pattern of advertisement placements within an advertising campaign period.

Intrusion value: The ability of media or an advertisement to intrude upon a viewer without his or her voluntary attention.

Effective reach: The percentage of an audience that must be exposed to a particular message to achieve a specific objective.

Effective frequency: The number of times a target audience must be exposed to a message to achieve a particular objective.

Media multiplier effect: The combined impact of using two or more media is stronger than using either medium alone.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

1. b

2. d

3. b

4. c

5. b

6. c

7. a

8. b

9. d

10. c

Notes

MKT 310 Advertising and Promotions

Objectives

MKT 310 Advertising and Promotions

Instructions to Students

Chapter Nine E-Active Marketing

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Characterize e-active marketing.

2. Analyze how Web 2.0 has affected the field of marketing communications.

3. Propose how e-commerce programs and incentives can build a stronger customer base and overcome consumer concerns at the same time.

4. Explain what makes e-commerce a crucial part of business- to-business commerce.

5. Assess how brand spiraling and blogs can generate positive outcomes for the marketing department.

6. Critique how online social networks, consumer-generated advertising and reviews, e-mail and viral marketing have become key components of market communications programs.

7. Predict how e-active marketing can be successfully conducted in international markets.

• Read pages 228-255 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

MKT 310 Advertising and Promotions

E-active marketing combines two major components of Internet marketing: (1) e-commerce and (2) interactive marketing. Both activities are vital to an organization’s online presence. The first part of this chapter examines e-commerce programs, including the incentives used to attract customers as well as consumer concerns with Internet shopping. Next, business-to-business e-commerce programs are described. Finally, the various interactive marketing methodologies being used by companies including online advertising, brand spiraling, blogs, online social networks, e-mail campaigns and viral marketing are presented. Each may be designed to increase the company’s brand presence and influence purchasing decisions. International challenges are also described.

Key Terms

MKT 310 Advertising and Promotions

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

E-active marketing:

E-commerce:

Cyberbait:

Interactive marketing:

Widgets:

Dwell rate:

Dwell time:

Brand spiraling:

Personalized URLs (PURLs):

Blogs:

Viral marketing:

Summary

MKT 310 Advertising and Promotions

Increased usage of the Internet by both consumers and businesses has led many marketing teams to develop an Internet presence. E-active marketing combines the two major components of Internet marketing: e-commerce and interactive marketing. Web 2.0 changes the ways consumers communicate and interact with companies. The key is to integrate e-marketing strategies with the overall integrated marketing communications plan.

An e-commerce website includes a catalog, a shopping cart, a payment collection method and a store locator. In e-commerce and other Internet ventures, customers should believe the process is secure and be enticed to change buying habits. Three incentives that help people alter buying patterns are financial incentives, greater convenience and added value. Interactive marketing is the development of marketing programs that create interplay between customers and businesses. It assists marketing in targeting potential customers with personalized information and engages the consumer with the product and company.

Online advertising reaches young, more Internet-savvy consumers. It includes banner advertising, classified and media/video advertising, search engine optimization and paid search ads. Brand spiraling may be used to combine the Internet program with advertising in traditional media. Blogs create a new form of word-of-mouth advertising. Blogs can be company-sponsored or posted by individual Internet users.

Online social networks include Facebook, Twitter and others. Social media has become a major part of the integrated marketing landscape. Consumer-generated advertising includes Crowdsourcing and other methods. They represent a new method for engaging customers with a brand or company. Consumer-generated reviews offer the opportunity to create forums for customers to discuss product benefits and problems.

E-mail may be used to supplement an integrated program. Web analytics assist in directing e-mail blasts to the most viable markets. E-mail newsletters can help create brand awareness, drive traffic to a website and spur sales. Viral marketing is preparing a marketing message that will be passed along by consumers. Effective viral programs spur consumer interest and provide rewards for passing messages to others. International markets may also be served by e-commerce enterprises, especially when cultural differences, shipping problems and Internet capability problems can be solved. Information technology departments play a key role in solving the Internet problems. Shipping issues and language differences also require attention in this lucrative and growing marketplace.

Self Test

MKT 310 Advertising and Promotions

Multiple Choice Questions (Circle the correct answer)

1. According to Shama Kabani of Marketing Zen, business-to-consumer firms who want to use social media and attract visitors to the social media page must offer ____________.

a. free stuff b. coupons and premiums c. expertise d. valuable information

2. E-commerce is ____________.

a. retail by e-mail b. selling goods and services on the Internet c. viral marketing d. vicarious shopping

3. An e-commerce shopping cart is used for ______________.

a. making inquiries b. returning merchandise c. asking questions d. placing an order

4. All of the following are types of cyberbait EXCEPT ______________ incentives.

a. value-based b. convenience c. educational d. financial

5. Free shipping, free freight and dollar discounts are examples of which type of incentive that can be used to encourage online shopping?

a. financial b. consumer c. economic d. convenience

Self Test

MKT 310 Advertising and Promotions

6. The following are online interactive tactics being used by companies EXCEPT _____________.

a. banner ads b. e-mail marketing c. direct marketing d. blogs

7. Using traditional media to promote and attract customers to a website is _____________.

a. brand spiraling b. cyberbranding c. viral marketing d. off-line branding

8. A company-sponsored blog can provide the following benefits EXCEPT _____________.

a. the comments on the blog give individuals an idea of how the company treats its customers b. the blog can provide a means for the company to release information c. it can ease a shopper’s fear about purchasing from a particular company d. since it is controlled by the company, the company is able to censor negative comments

9. The company at the forefront of consumer-generated reviews is _____________.

a. Barnes and Noble b. Amazon.com c. Wal-Mart d. Circuit City

10. Web analytics is the process of analyzing the following EXCEPT _____________.

a. where consumers went on a brand’s website b. what consumers did within the Web site c. what other sites were visited by the individual d. how the individual feels about the website

Answer Keys

MKT 310 Advertising and Promotions

Key Term Definitions

E-active marketing: Term used to describe the two major components of Internet marketing— e-commerce and interactive marketing.

E-commerce: Selling goods and services on the Internet.

Cyberbait: Some type of lure or attraction that brings people to a website.

Interactive marketing: Individualizing and personalizing Web content and e-mail messages for various consumers.

Widgets: Mini-applications embedded in a banner ad that permit a consumer access to some form of dynamic content that is provided by an external source other than the company where the ad resides.

Dwell rate: Measures the proportion of ad impressions that resulted in users clicking an ad or mousing over it.

Dwell time: Measures the amount of time individuals spend engaged with an advertisement.

Brand spiraling: The practice of using traditional media to promote and attract consumers to a website.

Personalized URLs (PURLs): A personalized webpage that is preloaded with the customer’s personal data, contact information, purchase behavior and previous interactions with the company.

Blogs: Online musings by an individual or group; the term is derived from “Web logs.”

Viral marketing: An advertisement that is tied to an e-mail or other form of online communication in which one person passes on the advertisement or e-mail to other consumers.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

1. a

2. b

3. d

4. c

5. a

6. c

7. a

8. d

9. b

10. d

Notes

MKT 310 Advertising and Promotions

Objectives

MKT 310 Advertising and Promotions

Instructions to Students

Chapter Ten Alternative Marketing

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Assess how buzz marketing, guerilla marketing, lifestyle marketing and experiential marketing can enhance a marketing communications program.

2. Consider methods that can be used to effectively employ product placements and branded entertainment.

3. Propose why the use of alternative media venues, especially video game advertising, has grown in marketing communications programs.

4. Determine how in-store marketing and point-of-purchase displays have evolved into even more effective communication and sales tools.

5. Examine methods used to adapt alternative marketing programs to international marketing efforts.

• Read pages 256-281 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

100

MKT 310 Advertising and Promotions

Traditional mass media advertising faces many challenges. The use of alternative media is on the rise. The first topic covered in this chapter is a review of alternative media programs including buzz marketing, guerilla marketing, product placements and branded entertainment and lifestyle marketing. The second issue is a review of alternative media tactics. The third part of the chapter describes in-store marketing. In the fourth section, international implications of alternative marketing programs are examined.

Key Terms

101

MKT 310 Advertising and Promotions

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Buzz marketing:

Stealth marketing:

Guerrilla marketing:

Lifestyle marketing:

Experiential marketing:

Product placement:

Branded entertainment:

Advergames:

Point-of-purchase displays (POP):

Brand communities:

Summary

102

MKT 310 Advertising and Promotions

The four forms of alternative marketing programs are buzz marketing, stealth marketing, guerrilla marketing and product placements. Buzz marketing, or word-of-mouth marketing, places the emphasis on consumers passing along information about a brand. The consumers can be those who like a brand, sponsored consumers or company insiders. Some consider using company insiders to be unethical. Stealth marketing uses surreptitious practices to introduce a product to individuals or fails to disclose or reveal the true relationship with the brand. It also draws some ethical criticism. Guerrilla marketing programs are those designed to obtain instant results with limited resources through creativity, high-quality relationships and a willingness to try unusual approaches. Lifestyle marketing involves the use of marketing methods associated with the hobbies and entertainment venues of the target audience. Experiential marketing combines direct marketing, field marketing and sales promotions into a single consumer experience. Product placements are planned insertions of a brand or product into a movie, television program or some other media program. Branded entertainment is the integration of entertainment and advertising by embedding brands into the storyline of a movie, television show or other entertainment medium. Numerous alternative media venues are available. They include mobile phone advertising, video game advertising and Advergames, cinema advertising, airline in-flight advertising and others. Use of these media has been on the increase as the impact of traditional media and the Internet continue to decline.

In-store marketing programs take two forms. New tactics include the use of high-tech video screens and television monitors in new and more visible places. This also includes tailoring messages to individual parts of the store. Traditional point-of-purchase advertising continues to be widely utilized. Recently, POP advertising has been combined with newer technologies to increase its effectiveness. Brand communities evolve when consumers feel a great deal of brand loyalty and devotion. They form around events, programs and exchanges of information. A company with a strong brand and a devoted marketing team can assist in the formation and continuance of brand communities. Alternative media choices are being utilized to reach minority groups in the United States in unique new ways. They are also expanding into international markets. As advertising clutter increases, the use of these media is likely to grow and will likely become cluttered as well.

Self Test

103

MKT 310 Advertising and Promotions

Multiple Choice Questions (Circle the correct answer)

1. Forms of alternative media programs include the following EXCEPT ____________.

a. online marketing b. product placement c. guerilla marketing d. buzz marketing

2. Word-of-mouth marketing is also known as ____________.

a. brand entertainment b. lifestyle marketing c. guerilla marketing d. buzz marketing

3. In terms of buzz marketing, the ideal situation occurs when _____________.

a. a company creates a blog about a brand and invites consumers to participate b. consumers who like a brand and are sponsored by a company to tell others c. company or agency employees posing as customers of the company, telling others about the brand d. consumers who truly like a brand tell others

4. Buzz marketing can be compared to a virus. The incubation stage _____________.

a. involves the product being adopted by the early majority b. corresponds to the product being introduced c. involves the product being used by a few innovators or trendsetters d. involves widespread use of the product

5. Identifying marketing methods associated with the hobbies and entertainment venues of a target market is ____________.

a. branded entertainment b. guerilla marketing c. lifestyle marketing d. product placement

Self Test

104

MKT 310 Advertising and Promotions

6. The planned insertion of a brand or product into a movie, television show or some other media program with the purpose of influencing viewers is _____________.

a. lifestyle marketing b. product placement c. guerilla marketing d. branded entertainment

7. The key factors that influence the effectiveness of product placement and branded entertainment include the following EXCEPT _____________.

a. costs b. media used c. supporting promotional activities d. consumer attitudes toward placements

8. Of the following age groups, which one is most receptive to product placements and branded entertainment?

a. 15-34 b. 35-49 c. 50-64 d. 65+

9. POP stands for _____________.

a. publicity over protocol b. point-of-purchase c. place of publication d. print-offer proposal

10. The ultimate demonstration of brand loyalty and brand devotion is ______________.

a. brand equity b. guerilla marketing c. a branded community d. a branded entertainment

Answer Keys

105

MKT 310 Advertising and Promotions

Key Term Definitions

Buzz marketing: Emphasizes consumers passing along information about a product to others; also known as word-of-mouth marketing.

Stealth marketing: The use of surreptitious practices to introduce a product to individuals without disclosing or revealing the true relationship with the brand.

Guerrilla marketing: Programs designed to obtain instant results through the use of limited resources by relying on creativity, high-quality relationships and the willingness to try new approaches.

Lifestyle marketing: Marketing methods associated with the hobbies and entertainment venues of the target audience.

Experiential marketing: Combining direct marketing, field marketing and sales promotions into a single consumer experience.

Product placement: The planned insertion of a brand or product into a movie, television show or some other media program.

Branded entertainment: The integration of entertainment and advertising by embedding brands into the storyline of a movie, television show or other entertainment medium.

Advergames: Branded video games.

Point-of-purchase displays (POP): Any form of special display that advertises merchandise.

Brand communities: A link that forms due to an association between the brand, a consumer and others who own or purchase the brand.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

106

1. a

2. d

3. d

4. c

5. c

6. b

7. a

8. a

9. b

10. c

Notes

107

MKT 310 Advertising and Promotions

Objectives

108

MKT 310 Advertising and Promotions

Instructions to Students

Chapter Eleven Database and Direct Response Marketing and Personal Selling

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Judge the role that database marketing, including the data warehouse, data coding and analysis and data mining, plays in creating and enhancing relationships with customers.

2. Determine how database-driven marketing programs create sales and build bonds with customers.

3. Judge when direct response marketing programs should be used to supplement other methods of delivering messages and products to consumers.

4. List the tasks involved in developing successful personal selling programs for consumers and businesses.

5. Propose how database marketing and personal selling programs should be adapted to international settings.

• Read pages 282-309 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

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The secrets to developing loyalty include recognition, relationships and rewards. Building them requires effective use of the following IMC promotional tools: database and direct response marketing, sales promotions and public relations and sponsorships.

The first part of this chapter examines database marketing including methods for building data warehouses, data coding, data mining and data-driven communications and marketing programs. Three key data-driven marketing programs are permission marketing, frequency programs and customer relationship management. Database programs are also used for direct response marketing techniques including direct mail, television programs, other traditional media, alternative media and telemarketing. Databases are also used to support personal selling.

Key Terms

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The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Geocoding:

Lifetime value:

Data mining:

Trawling:

Reciprocity:

Customer relationship management (CRM):

Response list:

Relationship selling:

Need-satisfaction:

Problem-solution:

Mission-sharing:

Summary

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Database marketing has become a vital element of a complete IMC program. The two key activities involved at the most general level, identifying customers and building relationships with them, have an impact on numerous other IMC tasks. It is clearly more cost-effective to retain customers than to continually seek out new ones. Further, the actual message may change when communicating with long-time, loyal customers. Building a data warehouse begins with collect- ing data to be used by the marketing department. Beyond basic information such as a customer’s name, address and e-mail address, other key data include the customer’s purchase history and preferences. Geocoding is the process of adding geographic codes to customer records which assists in selecting media and creating messages targeted to specific groups.

Database coding and analysis leads to either lifetime value analysis of customers or the clustering of customer groups based on customer spending patterns. Data mining programs involve building profiles of customer segments and/or preparing models that predict future purchasing behaviors based on past purchases. The information gathered from data coding and data mining leads to the development of data-driven marketing communications and marketing programs. Database-driven marketing communication programs are facilitated by effective identification codes that allow for personalization of messages and interactions. An effective database-driven communication program relies on customer profiles combined with other information available regarding specific customers. In-bound telemarketing programs, trawling, advertising and lifetime value segment programs can be fine-tuned for individual customers.

Database-driven marketing programs include permission marketing, frequency programs and CRM systems. Permission marketing is a selling approach in which the customer agrees to receive promotional materials in exchange for various incentives. Frequency programs are incentives customers receive for repeat business. Both are designed to create customer loyalty over time. CRM is designed to build long-term loyalty and bonds with customers through the use of a personal touch facilitated by technology. Closely related to database marketing is direct response (or direct) marketing. These marketing efforts may be made by mail, catalog, phone, mass media, the Internet or e-mail. Direct mail programs remain popular as outbound telemarketing programs continue to diminish.

In the new age of marketing communications, a case can be made that individual consumers desire greater intimacy with the companies that serve them. They are drawn to firms that take the time to build relationships through quality, customized communications and marketing programs. It seems likely that this trend will continue and that successful marketing teams must continue to emphasize methods for identifying customers and personalizing relationships with them.

Self Test

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Multiple Choice Questions (Circle the correct answer)

1. Database marketing provides a new communication link with customers that will produce higher levels of all of the following EXCEPT ____________.

a. customer loyalty b. customer acquisition c. customer retention d. customer parity

2. The primary benefit of database marketing is _____________.

a. greater profits b. higher sales c. the enhancement of customer loyalty d. greater brand parity

3. By using cookies to record a customer’s visit to a website, a company’s marketing team can _____________.

a. personalize a greeting the next time the customer goes to the site and customize the content to match the person’s past browsing behaviors b. target customers with a direct marketing program that meets the customer’s personal interests c. access a person’s computer to obtain demographic and psychographic information d. provides sales promotions on the fastest moving products from the website

4. The program designed to build long-term loyalty and bonds with customers, facilitated by technology, is known as ____________.

a. direct marketing b. permission marketing c. customer relationship management d. frequency marketing

5. In purchasing a direct mailing list, a “hot” list consists of individuals who have _____________.

a. responded to a direct mail offer within the last 30 days b. responded to previous direct mail offers made by the company purchasing the list c. met a specific demographic profile d. made purchases or responded to direct mail offers in the past

Self Test

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6. Direct response mass media marketing includes the following media EXCEPT ______________.

a. television b. the Internet c. newspapers d. radio

7. The third step in the selling process is ______________.

a. knowledge acquisition b. sales presentation c. qualifying prospects d. handling objections

8. When qualifying sales leads, Jason places each lead in one of four baskets ranging from A to D, with A leads the best and D leads the worst. Using this method of categorization, the appropriate strategy for “D” leads would be ______________.

a. send the lead marketing materials and encourage them to make inquiries if they are interested b. receive a sales call from one of the firm’s salespeople c. do nothing currently, but monitor the lead for possible future changes d. to contact the lead using telemarketers

9. In terms of the sales presentation, the _____________ approach strives to discover customer needs during the first part of the sales presentation, then provide solutions to those needs during the second part of the sales call.

a. need-satisfaction b. problem-solution c. mission-sharing d. stimulus-response

10. Kaylee is getting ready to close her sales call. She feels she has answered all of the prospect’s objections and feels confident that the prospect is ready to buy. The best close for her would be the ______________.

a. summarization close b. continuous “yes” close c. direct close d. assumptive close

Answer Keys

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Key Term Definitions

Geocoding: Adding geographic codes to customer records to make it possible to plot customer addresses on a map.

Lifetime value: The present value of future profits a customer generates over his or her life in a relationship with a brand or firm.

Data mining: The process of using computer data analysis software to mine data for meaningful information and relationships.

Trawling: The process of searching the database for a specific piece of information for marketing purposes.

Reciprocity: A sense of obligation toward a company that results from receiving special deals or incentives such as gifts.

Customer relationship management (CRM): Programs designed to build long-term loyalty and bonds with customers through the use of a personal touch facilitated by technology.

Response list: A list of customers who have made purchases or who have responded to direct mail offers in the past.

Relationship selling: Developing long-term relationships with customers rather than focusing on a single transaction.

Need-satisfaction: A sales approach in which the salesperson strives to discover a customer’s needs during the first part of the sales presentation and then provides solutions to those needs. Problem-solution: A sales approach that requires employees from the selling organization to analyze the buyer’s operations and offer ways to solve their problems.

Mission-sharing: A sales approach in which two organizations develop a common mission and then share resources to accomplish that mission.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

115

1. d

2. c

3. a

4. c

5. a

6. b

7. a

8. c

9. a

10. c

Notes

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Unit 3 Examination Instructions

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The Unit Examination

The unit examination contains 25 multiple choice questions, as well as a writing assignment.

Your grade on the examination will be determined by the percentage of correct answers. The university utilizes the following grading system:

A = 90% – 100% correct B = 80% – 89% correct C = 70% – 79% correct D = 60% – 69% correct F = 59% and below correct

4 grade points 3 grade points 2 grade points 1 grade point 0 grade points

Completing Unit Three Examination

Additional detailed information on completing the examination, writing standards and how to submit your completed examination may be found in the syllabus for this course.

Unit 3 Examination

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Multiple Choice Questions (Enter your answers on the enclosed answer sheet)

1. The individual that negotiates rates for space on billboards and in magazines is the _____________.

a. media planner b. creative c. media buyer d. client

2. Reach is the number of people _____________.

a. households or businesses who are exposed to a media vehicle or message schedule at least once during a given time period b. who use a certain medium in a four week time period c. who purchase a product in a given time period d. who place a particular brand into their evoked sets

3. When advertisements are used at special intervals with none in-between, which media budgeting method is being used?

a. pulsating b. continuous c. gross impressions d. flighting, or discontinuous

4. Gross impressions are _____________.

a. viewer reactions to the ad b. viewer loyalty to the medium c. the total exposures of an audience to an advertisement d. calculated considering the percentage of a total audience who viewed an ad

5. According to _____________, one ad exposure is enough to affect an audience when that person or business needs the product or has an interest in the product.

a. the intrusion value concept b. three-hypothesis theory c. recency theory d. the media multiplier effect

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6. An advertisement on television will have the biggest impact ______________.

a. in the middle of a set of ads b. at the beginning or end of a set of ads c. when the ad is 15 seconds rather than 30 or 45 d. during an infomercial

7. A Nielsen rating of 15.3 for a CSI television show means _____________.

a. 15.3 percent of all televisions in the U.S. were tuned to the CSI show b. of those watching the CSI show, 15.3 percent matched the advertisers’ target market c. of the televisions that were turned on in the U.S., 15.3 percent were tuned to the CSI show d. 15 percent of all televisions

8. Of the following, the medium that offers the most effective form of a one-on-one message by the spokesperson in the ad is _____________.

a. newspaper b. outdoor c. radio d. magazine

9. Of the following media, the one that is least able to target specific target markets is _____________.

a. radio b. billboards c. magazines d. television

10. For many smaller local companies, the most viable advertising options include all of the following EXCEPT _____________.

a. radio b. billboards c. newspapers d. magazines

11. In terms of media, local retailers tend to spend the most dollars on ______________.

a. radio ads b. television ads c. billboards d. newspaper ads

Unit 3 Examination

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12. The Internet has changed the world. Web 2.0 ______________.

a. provides businesses with an opportunity to advertise effectively on the Internet b. creates online communities that connect buyers and sellers in new ways c. offers consumers a way to communicate with each other through e-mail d. transforms traditional retailing by selling goods and services over the Internet

13. An e-commerce shopping cart is used for _____________.

a. returning merchandise b. making inquiries c. asking questions d. placing an order

14. The component of an e-commerce site is used to hold products that have been chosen for purchase is a ______________.

a. video stream b. catalog c. payment method d. shopping cart

15. Incentives that can be used to encourage consumers to make online purchases include all of the following EXCEPT ______________.

a. convenience incentives b. value-based incentives c. financial incentives d. follow-up incentives

16. Free shipping, free freight and dollar discounts are examples of which type of incentive that can be used to encourage online shopping?

a. economic b. convenience c. financial d. consumer

17. Brand spiraling is a(n) ______________.

a. off-line advertising technique to attract individuals to a website b. branding campaign using both online and offline advertising techniques c. manufacturing technique that reduces the cost of an online operation d. on-line advertising technique to attract individuals to a website

Unit 3 Examination

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18. Successful e-mail marketing campaigns must include the following EXCEPT ______________.

a. must be correlated with the firm’s website b. must include search engine optimization to draw individuals to the website c. must be based on Web analytics d. must be integrated with the other marketing channels

19. Buzz marketing can be compared to a virus. The infection stage ______________.

a. involves the product being used by a few innovators or trendsetters b. corresponds to the product being introduced c. involves the product being adopted by the early majority d. involves widespread use of the product

20. Retailers want point-of-purchase displays that will ______________.

a. generate additional prospects b. boost sales for a particular brand c. boost sales for the store or draw customers into the store d. increase profit for the manufacturer

21. An operational database contains ______________.

a. information about current customers and customers of the competition b. information about current customers, former customers and prospects c. the transactions individuals have with a firm and follows accounting principles d. transactions individuals have with a firm and the interactions an individual has with the firm

22. Data mining is ______________.

a. building profiles of customer segments and preparing models that predict their future purchase behavior b. collecting addresses and zip codes of customers c. selecting cities for data analysis d. reviewing past purchases of a product by customers

23. The most common approach to direct mail is to ______________.

a. purchase a mailing list b. use trawling to parse the mailing list c. use the firm’s database list d. mass mail to everyone within specific geocodes

Unit 3 Examination

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24. In handling objections during the sales call, Brandon (the salesperson) normally answers the objection directly. This approach is called the ______________.

a. indirect method b. compensation method c. head-on method d. “feel, felt, found” method

25. The type of closing used in sales calls depends on the following EXCEPT ______________.

a. personality of the salesperson b. type of product being sold c. personality of the buyer d. situation surrounding the sales call

Unit 3 Examination

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Writing Assignment for Unit Three

• Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.

Undergraduate courses: 350 - 500 words or 1 - 2 pages. Graduate courses: 500 - 750 words or 2 - 3 pages. Doctoral courses: 750 - 1000 words or 4 - 5 pages.

Plagiarism

Please answer ONE of the following:

• Include your name, student number, course number, course title and unit number on each page of your writing assignment (this is for your protection in case your materials become separated).

• Begin each writing assignment by identifying the question number you are answering followed by the actual question itself (in bold type).

• Use a standard essay format for responses to all questions (i.e., an introduction, middle paragraphs and conclusion).

1. What are the primary benefits of outdoor advertising? The primary problems?

2. What are the primary benefits of radio advertising? The primary problems?

3. Discuss the impact of blogs and online social networks on companies and how companies should respond.

You Can Do It

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Unit 3 is done! You’re close to the finish line and we’re cheering you on to victory!

Objectives

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Instructions to Students

Chapter Twelve Sales Promotions

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Chart the differences between consumer promotions and trade promotions.

2. Examine how the different types of customers respond to consumer promotions.

3. Describe the types of trade promotions that can help push products on to retailer shelves and eventually on to end users.

4. Discover concerns that exist for manufacturers considering trade promotions programs.

5. Determine issues that complicate international sales promotions programs.

• Read pages 310-337 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

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Sales promotions consist of all the incentives offered to customers and channel members to encourage product purchases. Consumer promotions are the incentives that are directly offered to a firm’s customers or potential customers. Trade promotions consist of the expenditures or incentives used by manufacturers and other members of the marketing channel to purchase goods for eventual resale.

Key Terms

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The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Sales promotion:

Consumer promotions:

Trade promotions:

Freestanding inserts (FSIs):

Promotion-prone consumers:

Price-sensitive consumers:

Brand-loyal consumers:

Brand-preference consumers:

Trade allowances:

Slotting fees:

Exit fees:

Spiff money:

Summary

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An IMC program should incorporate all four elements of the promotions mix. Advertising may be considered to be the main “voice” of the IMC message. At the same time, the sales promotion part of the mix, including trade and consumer promotions, plays a crucial role in the success or failure of the overall marketing program.

This chapter reviews the techniques available to attract consumers to the company by using consumer sales promotions. These tactics include coupons, premiums, contests and sweepstakes, refunds, rebates, samples, bonus packs and price-off deals. These items should be combined with specific promotional goals to have the right impact on customers. Consumer promotions are often used to boost sales. They can be an excellent short-term method to increase sales or a firm’s market share. They can also be an excellent means of introducing new products. Often a consumer promotion prompts consumers to at least try the product, where selling it at the regular price will not. Coupons and contests have been successful tactics for attracting new customers. Consumer promotions can boost sales of a particular brand and evidence suggests that they increase sales of the overall product category rather than just take sales away from competitors.

Trade promotions complement consumer promotions. The use of trade allowances, trade contests, trade incentives and participation in trade shows helps the manufacturer or member of the marketing channel maintain positive contact with other organizations and moves products toward the retailer. Trade promotions work best when they are integrated into other IMC efforts rather than being viewed as a necessary evil or simply as a short-term tool to increase sales. Internationally, consumer promotions programs can be used when they are chosen based on the characteristics, attitudes, laws, regulations and cultural nuances of a given geographic region. The primary objective of any promotions program must always be to enhance the message sent forth in other aspects of the IMC program in a manner that helps the company reach its long-term marketing objectives in a cost-effective and positive fashion.

Self Test

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Multiple Choice Questions (Circle the correct answer)

1. The majority of all coupons are offered by _____________.

a. Internet companies b. retailers c. wholesalers d. manufacturers

2. An instant-redemption coupon is _____________.

a. placed on a package to be used during the purchase b. delivered electronically over the Internet c. delivered electronically at the cash register d. placed inside the package to be used later

3. A gift sent by mail to a customer, based on a proof-of-purchase receipt, is which type of premium?

a. free-in-the-mail b. instant-redemption c. self-liquidating d. bounce-back

4. For most people, a free trip to Hawaii is an example of a prize with high _____________.

a. Internet inquiries b. redemption rates c. extrinsic value d. intrinsic value

5. Cash returns on soft goods, such as food or clothing, are called ______________.

a. rebates b. bill-back programs c. premiums d. refunds

Self Test

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6. To be effective, rebates and refunds must have the impact on buyers’ behaviors by _______________.

a. either leading to a more immediate purchase or by causing buyers to change brands b. stimulating a trial purchase c. making them more brand loyal d. generating positive word-of-mouth communications

7. Trade promotions are distinguished from other marketing and IMC tools in that they ______________.

a. are limited to activities by manufacturers b. are used to entice other members of the marketing channel to make purchases c. are offered to customers d. involve extensive advertising

8. A retailer stands to gain a direct payment from ______________.

a. forward buying b. an off-invoice allowance c. slotting fees d. a drop-ship allowance

9. Rewards given as contest prizes to brokers, retail salespeople, retail stores, wholesalers or agents would be considered a(n) ______________.

a. drop-ship allowance b. trade contest c. cooperative merchandise agreement d. trade allowance

10. The primary difference between trade incentives and trade allowances is that for the trade incentive ______________.

a. the manufacturer must perform some type of function to encourage the retailer to accept the merchandise b. the retailer must perform some type of function in order to receive the trade incentive c. involves a price reduction being passed on to consumers by retailers d. the retailer receives a price break if they order a specific quantity

Answer Keys

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Key Term Definitions

Sales promotion: All of the incentives offered to customers and channel members to encourage product purchases.

Consumer promotions: Incentives directly offered to a firm’s customers or potential customers.

Trade promotions: Expenditures or incentives used by manufacturers and other members of the marketing channel to purchase goods for eventual sale.

Freestanding inserts (FSIs): Sheets of coupons distributed in newspapers, primarily on Sunday.

Promotion-prone consumers: Consumers who are not brand loyal and regularly respond to promotions such as coupons, price-off plans or premiums or only purchasing items that are on-deal.

Price-sensitive consumers: Consumers for whom price is the primary, if not only, criterion used in making a purchase decision.

Brand-loyal consumers: Consumers who purchase only one particular brand and do not substitute, regardless of any deal being offered.

Brand-preference consumers: Consumers who prefer a small set of brands.

Trade allowances: Financial incentives to other channel members to motivate them to make purchases.

Slotting fees: Funds charged by retailers to stock new products.

Exit fees: Monies paid to remove an item from a retailer’s inventory.

Spiff money: Rewards given as contest prizes to brokers, retail salespeople, stores, wholesalers and agents.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

132

1. d

2. a

3. a

4. c

5. d

6. a

7. b

8. c

9. b

10. b

Notes

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Objectives

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Instructions to Students

Chapter Thirteen Public Relations and Sponsorship Programs

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Examine the relationship between public relations and the marketing activities performed by a company.

2. Analyze how the public relations function helps to build better relationships with all internal and external stakeholders.

3. Predict how the positive image-building programs that are commonly used by companies as part of the public relationships effort can build customer loyalty and brand image.

4. Explore steps companies can take to prevent or reduce image damage when negative events occur.

5. Propose how sponsorships can be tied to public relations efforts to strengthen a customer base.

6. Distinguish the role event marketing can play in creating customer excitement and brand loyalty.

7. Consider how public relations programs, sponsorships and event marketing can be adapted to international settings.

• Read pages 338-365 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

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The traditional marketing mix consists of advertising, personal selling, consumer sales promotions and public relations efforts. The first part of this chapter is devoted to the fourth part of the marketing mix—public relations. Often, the public relations function is handled independently of the marketing department and is usually not under the control of the marketing department, which makes it more difficult to integrate with the IMC effort. The second part of the chapter addresses sponsorship programs and event marketing. The two programs provide places to make quality contacts with existing customers, new prospects, vendors and others.

Key Terms

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The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Public relations (PR) department:

Stakeholder:

Cause-related marketing:

Green marketing:

Greenwashing:

Entitlings:

Enhancements:

Crisis management:

Impression management:

Sponsorship marketing:

Event marketing:

Cross-promotion:

Summary

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The public relations department plays a major role in an integrated marketing communications program, whether the department is separate from marketing or combined as part of a communications division. Public relations efforts are primarily oriented to making sure that every possible contact point delivers a positive and unified message on behalf of the company. This includes assessing a corporation’s reputation and involvement in socially responsible activities. To reach all intended audiences, the public relations department has a series of tools available. These include company newsletters, internal messages, public relations releases, correspondence with stockholders, annual reports and various special events. Even the bulletin board in the company’s break room can be used to convey messages to internal stakeholders.

In the attempt to build a favorable image of the company, the public relations department develops special events such as altruistic activities and cause-related marketing programs. Due care must be given to making certain that these acts are not perceived with cynicism and skepticism. This means being certain that any good deed matches with company products and other marketing efforts. A natural fit between an altruistic event and the company’s brand is more readily accepted by various members of the public.

Managing public relations, sponsorships and event marketing programs requires company leaders to carefully assess both the goals and the outcomes of individual activities. A cost-benefit approach may not always be feasible, but the marketing team should be able to track some form of change, whether it is increased inquires, the number of samples passed out at an event or a shift in the tenor of news articles about the organization. The primary task of public relations is to be the organization’s “watchdog,” making sure those who come in contact with the company believe the firm is working to do things right and to do the right things. The public relations team is also responsible for damage control when negative publicity arises. Both proactive and reactive tactics are available to maintain a positive image for the company. Damage control tactics include Internet interventions, crisis management programs and impression management techniques.

Self Test

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Multiple Choice Questions (Circle the correct answer)

1. In terms of goals for public relations, a hit is _____________.

a. a consumer promotions’ tie in with publicity b. an advertisement that is successful c. an advertising slogan with high recall d. mention of the company’s name in a news story

2. In terms of measuring the impact of public relations, a hit can enhance ______________.

a. stock dividends b. the use of a tagline c. company or brand image d. brand or company awareness

3. The following are external stakeholders EXCEPT ______________.

a. employees b. channel members c. the media d. customers

4. The obligation an organization has to be ethical, accountable and reactive to the needs of society is called ________________.

a. social responsibility b. public relations c. sponsorship marketing d. marketing myopia

5. Social responsibility is ________________.

a. the obligation an organization has to be ethical, accountable and reactive to the needs of society b. the obligation consumers have to shop from companies engaged in green marketing c. a form of marketing based on sponsorships and events d. less of a concern due to better quality governmental oversight of business

Self Test

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6. A program that ties marketing to a charity in order to generate good will is called _______________.

a. social responsibility marketing b. marketing myopia c. cause-related marketing d. sponsorship marketing

7. Green marketing is ______________.

a. a type of apology strategy in which money is paid to the victim b. an Internet intervention focused on money-making c. developing and selling environmentally friendly products d. a form of cause-related marketing

8. Claiming to be green when it is not is called _______________.

a. green entitlement b. greenwashing c. brown wash d. green marketing

9. The danger with greenwashing is that it ______________.

a. can result in losing the grousers and sprouts segments of the market b. may require investing in cause-related marketing to correct the situation c. can damage a company’s reputation by bloggers pointing out a company is not truly green d. will affect a company’s ability to produce additional new products

10. An apology strategy to manage a negative publicity situation should include each of the following elements EXCEPT ______________.

a. an expression of guilt b. acceptance of sanctions because of wrong behavior c. a statement recognizing the inappropriate behavior d. a statement about behaviors of the competition

Answer Keys

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Key Term Definitions

Public relations (PR) department: A unit in the firm that manages items such as publicity and other communications with all of the groups that make contact with the company.

Stakeholder: A person or group with a vested interest in a firm’s activities and well-being.

Cause-related marketing: Matching marketing efforts with some type of charity work or program.

Green marketing: The development and promotion of products that are environmentally safe.

Greenwashing: Activities that are presented as being green or environmentally friendly that are not.

Entitlings: Attempts to claim responsibility for positive outcomes of events.

Enhancements: Attempts to increase the impact of a desirable outcome of an event in the eyes of the public.

Crisis management: Either accepting the blame for an event and offering an apology or refuting those making the charges in a forceful manner.

Impression management: The conscious or unconscious attempt to control images that are projected in real or imagined social situations.

Sponsorship marketing: When the company pays money to sponsor someone or some group that is participating in an activity.

Event marketing: When a company pays money to sponsor an event or program.

Cross-promotion: A marketing event that ties together companies and activities around a specific theme.

Answers to Self Test

Answer Keys MKT 310 Advertising and Promotions

141

1. d

2. d

3. a

4. a

5. a

6. c

7. c

8. b

9. c

10. d

Notes

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Objectives

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Instructions to Students

Chapter Fourteen Regulations and Ethical Concerns

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Examine agencies and laws that regulate marketing communications.

2. Discover why puffery is legal and deception is not. Analyze the role substantiation plays in the process.

3. Distinguish legal remedies that can be used to correct deceptive communications practices.

4. Judge how the three major industry regulatory agencies can help keep advertising and business practices from injuring customers or other businesses.

5. Analyze ethical criticisms that have been registered against advertising and marketing practices.

6. Explore marketing tactics that raise ethical concerns.

7. Investigate international issues that influence the discussion of legal and ethical marketing activities.

• Read pages 366-391 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

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The final level of an IMC program includes making certain the communications program meets ethical and legal requirements and is properly evaluated. The first part of this chapter describes the legal environment surrounding marketing and marketing communications. The second part features views of ethics, morals and social responsibility as they relate to marketing, advertising and promotions.

Key Terms

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The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Puffery:

Consent order:

Morals:

Ethics:

Brand infringement:

Ambush marketing:

Allusion ambushing:

Stealth marketing:

Hedonism:

Utilitarianism:

Individualism:

Rights approach:

Justice approach:

Summary

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To enforce fair standards in the areas of advertising and marketing communications, a number of governmental agencies are ready to take action when needed. These include the Federal Trade Commission (FTC), the Food and Drug Administration (FDA), the Federal Communications Commission (FCC) and others. The FTC is the primary agency regulating marketing communications and it makes special efforts to stop instances of unfair or deceptive practices. In conjunction with the courts, the FTC and other governmental agencies regulate the majority of companies and industries in the United States. The FTC regulates cases of fraudulent practices targeted at individual consumers as well as conflicts between businesses. Through the use of consent orders, administrative complaints, cease and desist orders and full commission hearings, the FTC is able to make its findings and rulings known to the parties concerned. Court actions and corrective advertising programs are utilized in more severe cases. Trade regulation rulings apply when an entire industry is guilty of an infraction.

Ethics and morals are key principles that can be used to guide a person’s activities in the world of commerce. Morals are beliefs or principles that individuals hold concerning what is right and what is wrong. Ethics are moral principles that serve as guidelines for both individuals and organizations. Marketing and marketing communications activities are affected by ethical and moral concerns.

Some of the more common complaints about advertising include issues of materialism and overconsumption. Also, there are criticisms that advertising perpetuates stereotypes, features unsafe products, sends out offensive messages, is deceptive and unfairly targets children. Each of these issues requires consideration by anyone entering the profession. Marketing programs are also subject to ethical concerns. Brand infringement, questionable medical marketing and advertising programs, business-to-business tactics and Internet marketing programs have all come under scrutiny. Responses to these criticisms are the responsibility of top management, the marketing department and those associated with public relations. A number of ethical frameworks and guidelines are available. Those in the field of marketing may be guided by concepts regarding social responsibility. Also, ethics programs consisting of ethics training, codes of ethics and ethics consulting systems are available to those facing dilemmas or wishing to pose questions.

The issues of legality and morality are present in the international arena as well. Each is complicated by different bodies of law and views of ethics in various nations. Companies seeking to expand internationally should be aware of these differences in order to find ways to respond to them.

Self Test

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Multiple Choice Questions (Circle the correct answer)

1. The agency that monitors advertising on food packages and advertisements for drugs is the _____________.

a. Federal Communications Commission b. United States Postal Service c. Food and Drug Administration d. Federal Trade Commission

2. In terms of a judgment by the Federal Trade Commission against a company for false or misleading advertising, which of the following would come first?

a. administrative complaint b. consent order c. court-ordered reparations d. cease-and-desist order

3. When a company must pay for ads that refute false claims it had made in previous ads, it is called a(n) ______________.

a. cease-and-desist order b. consent order c. corrective advertisement d. administrative ruling

4. If the National Advertising Review Board rules against an advertiser, it will ______________.

a. refer the case to the National Advertising Division (NAD) of the CBBB b. ask the firm to modify the ad or discontinue using it c. refer the case to the FTC d. order the firm to discontinue the ad in a manner similar to the consent order of the FTC

5. In addition to handling complaints about advertising to children, which agency also prescreens ads directed to children?

a. National Advertising Division b. Children’s Advertising Review Unit c. Federal Communications Commission d. National Advertising Review Board

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6. When a company creates a brand name that closely resembles a popular or successful brand, it is _____________.

a. domain infringement b. brand infringement c. domain squatting d. brand parity

7. Stealth marketing occurs when _____________.

a. a brand suggests or hints it is associated with a major sporting event when it is not b. a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand c. consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand. d. firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event

8. In terms of foundations and frameworks for ethical guidelines, the philosophy of life that believes in a balance of a variety of urges throughout life is ______________.

a. hedonism b. individualism c. homeostasis d. utilitarianism

9. In terms of ethical frameworks for reasoning, individualism is _______________.

a. a means of making decisions based on what is the greatest good for the greatest number of people b. a method of decision making based on treating all people fairly and consistently c. the degree to which society values personal goals, personal autonomy, privacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness and intense socialization d. a means of making decisions based on the belief that each person has fundamental rights that should be respected and protected

10. In terms of ethical frameworks for reasoning, justice approach is _____________.

a. a means of making decisions based on what is the greatest good for the greatest number of people b. a means of making decisions based on the belief that each person has fundamental rights that should be respected and protected c. a method of decision making based on treating all people fairly and consistently d. the degree to which society values personal goals, personal autonomy, privacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness and intense socialization.

Answer Keys

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Key Term Definitions

Puffery: When a firm makes an exaggerated claim about its products or services without making an overt attempt to deceive or mislead.

Consent order: A directive issued when the FTC believes a violation has occurred.

Morals: Beliefs or principles that individuals hold concerning what is right and what is wrong.

Ethics: Moral principles that serve as guidelines for both individuals and organizations.

Brand infringement: Occurs when a company creates a brand name that closely resembles a popular or successful brand.

Ambush marketing: A brand’s attempt to associate itself with a team or event without buying the rights to do so.

Allusion ambushing: When a firm creates an impression that it is a sponsor when it is not.

Stealth marketing: A tactic in which consumers are enticed to look at a product through a personal contact without them realizing that the person making the pitch is being paid or compensated.

Hedonism: Maximizing pleasure and minimizing pain.

Utilitarianism: A means of making decisions based on what is the greatest good for the greatest number of people.

Individualism: The degree to which society values personal goals, personal autonomy, privacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness and intense socialization.

Rights approach: A means of making decisions based on the belief that each person has fundamental rights that should be respected and protected.

Justice approach: A method of decision making based on treating all people fairly and consistently.

Answers to Self Test

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1. c

2. b

3. c

4. d

5. b

6. b

7. c

8. c

9. c

10. c

Notes

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Objectives

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Instructions to Students

Chapter Fifteen Evaluating an Integrated Marketing Program

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Critique the three broad categories of evaluation tools that can be used to evaluate IMC systems.

2. Characterize how marketing teams can match evaluation methods with IMC objectives.

3. Explore the forms of message evaluations that can be conducted to assess IMC programs.

4. Examine evaluation criteria that are suggested by the positioning advertising copy testing (PACT) system.

5. Consider how online evaluation systems assist advertising managers in assessing the quality of a firm’s Internet activities.

6. Judge the types of behavioral evaluations that can be employed to assess IMC programs.

7. Explain how evaluation programs are adjusted to match international operations.

• Read pages 392-417 of your textbook

• Reference: Integrated Advertising, Promotion, and Marketing Communications, by Kenneth Clow and Donald Baack, 5th edition, 2012

Overview

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This final chapter is devoted to the various methods available for evaluating components of an IMC program. The term used to describe various measures is metrics. This final chapter considers the various methods available for evaluating components of an IMC program. Three broad categories of evaluation tools can be used to evaluate IMC systems: message evaluations, online evaluations and respondent behavior evaluations.

Key Terms

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The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

Metrics:

Message evaluation techniques:

Online evaluation metrics:

Respondent behavior evaluations:

Storyboard:

Copytests:

Portfolio test:

Theater test:

Warmth monitor:

Cognitive neuroscience:

Positioning advertising copytesting (PACT):

Summary

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Assessing an IMC program often involves examining the effects of individual advertisements. These efforts are conducted in two major ways: (1) message evaluations and (2) evaluating respondent behaviors. A wide variety of techniques can be used. Most of the time, marketing managers and advertisement agencies use several different methods in order to get the best picture of an ad’s potential for success. Advertisements are studied before they are developed, while they are being developed and after they have been released or launched.

The guiding principles for any marketing tool include agreement on how test results will be used, pre-establishing a cutoff score for a test’s results, using multiple measures, basing studies on models of human behaviors, using multiple exposures, testing marketing instruments that are in the same stage of development and preventing as many biases as possible while conducting the test. Many times it is difficult for certain members of the marketing team to be objective, especially when they had the idea for the ad or campaign.

In these instances, it is better to retain an outside research agency to study the project. Public relations programs should be assessed in light of not only how many times a company is mentioned in the media but also what various ads and stories have said about the company. Also, public relations efforts should be compared with the goals for the department in order to see if the company is achieving the desired effects with its publicity releases and sponsorship efforts. IMC plans are general, overall plans for the entire company. Therefore, more general and long-term criteria should be included in any evaluation of an IMC program. When the IMC theme and voice are clear, the company is achieving its long-range objectives, the principles stated in this book are being applied efficiently and effectively and the company is in the best position to succeed at all levels including in all international operations.

Self Test

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Multiple Choice Questions (Circle the correct answer)

1. The primary methods used by companies and advertising agencies to evaluate advertising and ad campaigns included all the following EXCEPT _______________.

a. copytesting b. cognitive neuroscience c. online cookie analysis d. advertising tracking research

2. Ad tracking research can provide an agency and client with the following types of information EXCEPT ______________.

a. how an ad is performing compared to the competition b. how an ad is performing compared to previous ads c. why an ad is not performing well d. how an ad is performing over time

3. When copytesting print ads, researchers often use which type of approach?

a. regulatory test b. theater test c. portfolio test d. cognitive neuroscience

4. Quantitative questions included in copytesting can measure all of the following EXCEPT _______________.

a. ability of the ad to break through b. what the ad communicates c. how enjoyable the ad is d. why a particular ad is not liked

5. Warmth monitors are an example of a(n) _______________.

a. emotional reaction test b. copytesting c. cognitive neuroscience d. ad tracking research

Self Test

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6. Brain-image measurement is part of _______________.

a. copytesting b. cognitive neuroscience c. emotional reaction tests d. ad tracking research

7. To measure the impact of a point-of-purchase display, retailers and manufacturers can use ________________.

a. response rates b. scanner data c. changes in sales d. number of inquiries

8. Test markets are used for all of the following EXCEPT _______________.

a. studying new product acceptance b. testing emotional reactions to marketing campaigns c. setting prices d. studying promotions and premiums

9. A purchase simulation test takes place in a _______________.

a. theater b. retail store c. laboratory d. mall

10. All of the following are common measures of the overall health of a company EXCEPT ________________.

a. productivity b. level of innovation c. market share d. brand awareness

Answer Keys

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Key Term Definitions

Metrics: Measures that are designed to accurately portray the effectiveness of a marketing communications plan.

Message evaluation techniques: Methods used to examine the creative message and the physical design of an advertisement, coupon or direct marketing piece.

Online evaluation metrics: Methods used to examine online advertising and marketing campaigns.

Respondent behavior evaluations: Methods used to examine visible customer actions including making store visits, inquiries or actual purchases.

Storyboard: A series of still photographs or sketches that outlines the structure of a television ad.

Copytests: Tests that are used to evaluate a marketing piece that is finished or is in its final stages prior to production.

Portfolio test: A test of an advertisement using a set of print ads, one of which is the ad being evaluated.

Theater test: A test of an advertisement using a set of television ads including the one being evaluated.

Warmth monitor: A method to measure emotional responses to advertisements.

Cognitive neuroscience: A brain-mage measurement process that tracks brain activity.

Positioning advertising copytesting (PACT): Principles to use when assessing the effectiveness of various messages.

Answers to Self Test

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1. c

2. c

3. c

4. d

5. a

6. b

7. b

8. b

9. c

10. d

Notes

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Unit 4 Examination Instructions

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The Unit Examination

The unit examination contains 25 multiple choice questions, as well as a writing assignment.

Your grade on the examination will be determined by the percentage of correct answers. The university utilizes the following grading system:

A = 90% – 100% correct B = 80% – 89% correct C = 70% – 79% correct D = 60% – 69% correct F = 59% and below correct

4 grade points 3 grade points 2 grade points 1 grade point 0 grade points

Completing Unit Four Examination

Additional detailed information on completing the examination, writing standards and how to submit your completed examination may be found in the syllabus for this course.

Unit 4 Examination

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Multiple Choice Questions (Enter your answers on the enclosed answer sheet)

1. One of the primary goals of a consumer promotion is to ______________.

a. entice the customer to try the product b. build brand equity c. entice the customer to take the final step and make a purchase d. enhance brand parity

2. The majority of all coupons are offered by ______________.

a. Internet companies b. retailers c. wholesalers d. manufacturers

3. A toy placed inside a box of cereal is an example of a(n) ______________.

a. store premium b. in-package premium c. bonus pack d. self-liquidating premium

4. A Star Wars action figure given when a customer buys a Whopper meal at Burger King would be a(n) ______________ premium.

a. self-liquidating b. store or manufacturer c. bounce-back d. in- or on-package

5. Each of the following are important keys to building a successful premium program EXCEPT ______________.

a. select premiums that reinforce the firm’s product and image b. select premiums that are highly popular and current fads c. match the premium to the target market d. integrate the premium with other IMC tools

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6. The enjoyment of playing or participating in a contest is called _______________ value.

a. extrinsic b. redemption c. intrinsic d. historic

7. The primary role of trade promotions is to _____________.

a. pull products through the channel b. encourage trial purchases c. push products through the channel d. build brand equity

8. Financial discounts on cases or pallets of merchandise ordered are called _____________.

a. cooperative advertising b. consumer promotions c. off-invoice allowances d. spiff money

9. Each of the following are problems associated with trade allowances EXCEPT ______________.

a. failing to pass along allowances to retail customers b. forward buying c. increased advertising costs d. diversion

10. A formal agreement between a retailer and a manufacturer to undertake a two-way marketing effort is called a(n) _____________.

a. sales promotion b. cooperative merchandising agreement c. venture agreement d. alliance of capital

11. Cause-related marketing is ______________.

a. a program that ties marketing to a charity b. the same thing as green marketing c. a type of Internet intervention d. causing buyers to want to buy a product due to an effective cross-promotion

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12. An apology strategy is ______________.

a. another form of proactive damage control b. an impression management technique c. a form of defense of innocence used to counter bad publicity d. another form of reactive of crisis management and damage control

13. The conscious or unconscious attempt to control images in social situations is _____________.

a. crisis management b. social responsibility c. impression management d. enhancement

14. Each of the following is an impression management technique EXCEPT ______________.

a. justification b. entitlings c. expression of innocence d. excuses

15. When a company advertises, develops consumer promotions (such as a contest) and develops other marketing communications as a tie-in with an event marketing program, it is called a(n) ______________ promotion.

a. advertising b. local c. corporate d. cross

16. The agency that would be concerned with the salt content in foods would be the ____________.

a. Federal Trade Commission b. United States Postal Service c. Food and Drug Administration d. Federal Communications Commission

17. An administrative complaint is _______________.

a. a formal proceeding before an administrative law judge used by the FTC b. a formal hearing before the full FTC commission c. a formal hearing before the Court of Appeals d. used by the NARB when the NAD cannot solve a complaint

Unit 4 Examination

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18. Which industry agency monitors online privacy practices of websites that involve children younger than 13 years of age?

a. Federal Communications Commission (FCC) b. National Advertising Division (NAD) c. Children’s Advertising Review Unit (CARU) d. National Advertising Review Board (NARB)

19. Which statement below about the advertising of underwear, sexually-related products, feminine hygiene products and male enhancement products is FALSE?

a. It is important for marketing professionals to create advertisements that are not offensive. b. The use of nudity and sexuality featuring teens and children has been highly criticized. c. In recent years, there has been a decline in sensitivity towards child molestation, child pornography and related sexual issues. d. In Islamic countries, the advertising of personal hygiene and sexually-related products would be highly offensive.

20. In terms of ethical frameworks for reasoning, the rights approach is ___________.

a. the degree to which society values personal goals, personal autonomy, privacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness and intense socialization b. a means of making decisions based on the belief that each person has fundamental rights that should be respected and protected c. is a means of making decisions based on what is the greatest good for the greatest number of people d. a method of decision making based on treating all people fairly and consistently

21. A form of law based on local customs, traditions and precedents is ___________ law.

a. theocratic law b. common law c. moral law d. civil law

22. Of the following methods of evaluating advertising and ad campaigns, the one that has the most promise for the future, is ___________.

a. copytesting b. cognitive neuroscience c. advertising tracking research d. online cookie analysis

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23. Which uses a computer joystick to test emotional reactions to an ad?

a. copytesting b. cognitive neuroscience c. a warmth monitor d. ad tracking research

24. In terms of online metrics, which evaluation method allows companies to gauge consumer reactions to a new advertising campaign, whether it is online or traditional?

a. monitoring web chatter b. copytesting c. click-through rate d. emotional reaction tests

25. All of the following are behavioral evaluation measures EXCEPT ___________.

a. coupon redemptions b. Internet hits c. emotional arousal d. actual sales

Unit 4 Examination

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Writing Assignment for Unit Four

• Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.

Undergraduate courses: 350 - 500 words or 1 - 2 pages. Graduate courses: 500 - 750 words or 2 - 3 pages. Doctoral courses: 750 - 1000 words or 4 - 5 pages.

Plagiarism

Please answer ONE of the following:

• Include your name, student number, course number, course title and unit number on each page of your writing assignment (this is for your protection in case your materials become separated).

• Begin each writing assignment by identifying the question number you are answering followed by the actual question itself (in bold type).

• Use a standard essay format for responses to all questions (i.e., an introduction, middle paragraphs and conclusion).

1. What are the major types of coupons?

2. What makes measuring the effectiveness of advertisements more problematic?

3. What is the primary difference between a contest and a sweepstakes?

You Can Do It

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Congratulations! You have completed Unit 4.

Now let’s sharpen our pencils for the Final Exam.

We are confident you will do well.

Final Exam Scheduling Form

MKT 310 Advertising and Promotions

The university requires all final examinations to be completed under the supervision of a proctor. Please provide information on your designated proctor. ALL information must be filled in; otherwise, your request will not be processed.

Date _____________________________ Student I.D. ______________________________________________

Student Name ________________________________________________________________________________

Address ______________________________________________________________________________________

City __________________________________________________ State _________________________________

Zip Code ________________ Country ____________________________________________________________

E-Mail Address _______________________________________________________________________________

Daytime Telephone _____________________________ Evening Telephone _____________________________

Course Information:

Course Number ___________ Course Title _______________________________________________________

Please send the Final Examination to:

Proctor’s Name _______________________________________________________________________________

Proctor’s Relationship to Student ________________________________________________________________

Street Address _______________________________________________________________________

City ______________________________ State _________________ Zip Code __________________________

Country __________________________________ Email Address ___________________________

Daytime Telephone _________________________ Evening Telephone _________________________________

Student’s Signature ________________________________________________________________________

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Final Examination Instructions

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About the Final Examination

After you have successfully completed all of the unit examinations and writing assignments, it will be time for you to take the final examination.

The final examination will be provided by student services only after you have completed all four unit examinations and submitted all four writing assignments.

Scheduling a Final Examination

Final examination requests can be submitted via U.S. mail, online through the Coast Connection student portal, or by calling the Testing Department at (714) 547-9625.

A final exam scheduling form is located on the last page of this study guide. Please fill out ALL required fields and mail it to the university.

Final exams will only be sent if you have completed all four unit examinations and submitted all four writing assignments.

Submitting Your Final Examination

Final Examinations can be submitted by mail, fax or online through the Coast Connection student portal.

After you have completed your exam, you or your proctor can fax it to the Grading Department at (714) 547-1451 or mail it to the university. When faxing exams, please do not resize your fax.