Introduction to Marketing Chapter 12 Answers

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Terms and Answers to Learn

What are the five promotion mix tools used by marketers to communicate customer​ value?
​Advertising, public​ relations, personal​ selling, sales​ promotion, and direct and digital marketings
Which of the following statements is true regarding the promotion​ mix?
Public relations includes press​ releases, sponsorships,​ events, and Web pages.
Integrated marketing communications must deliver company and brand messages that are​ ________.
​clear, consistent, and compelling
Which of the following statements is correct regarding marketing communications​ today?
New media formats have allowed marketers to reach smaller communities of consumers in more engaging ways.
What are the four important decisions made when developing an advertising​ program? List them in order.
Setting advertising​ objectives, setting the advertising​ budget, developing advertising​ strategy, and evaluating advertising effectiveness
Advertising strategy
The strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creating advertising messages and selecting advertising media.
In developing advertising​ strategies, marketers must make decisions regarding​ ___________________.
organizing the advertising​ function; adaptation to international markets
​________ is used by companies to build good relations with​ consumers, investors, the​ media, and their communities.
Public relations
Which of the following statements about public relations is​ correct?
The lines between advertising and public relations are becoming more blurred.
Today, the promotions mix must account for:
1. Customer sophistication and knowledge
2. Customer control of the message
3. Declining impact of traditional mass media
Integrated Marketing Communications (IMC)
Coordinating all promotional tools to present a
clear, consistent, compelling message
Sales promotion
Short-term incentives to encourage the purchase or sale of a product or a service. Ex: discounts, coupons, displays, and demonstrations
Possible Advertising Objectives
Top: Awareness, interest, desire, action, engagement (AIDAE)
Affordable method
Setting the promotion budget at the level management thinks the company can afford.
Percentage-of-sales method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.
Objective-and-task method
Developing the promotion budget
by (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget
Competitive-parity method
Setting the promotion budget to match competitors’ outlays.
Slice of Life
Typical people using product in a normal setting
number of different people or households exposed, at least once, to a message during a given period of time Ex: the advertiser might try to reach 70 percent of the target market during the first three months of a campaign.
the average number of times an individual is exposed to a message during a given period of time. Ex: the advertiser might want an average exposure frequency of three.
Return on advertising investment
Net return on advertising investment divided by the costs of the
advertising investment
Trafficking (Ad Agency)
Advertising Operations
•Movement of creative assets / tags between agency and media
Reporting on media activity; Analysis and recommendations for future media placements
Media Planning
Responsible for research and development of media plans while identifying target audiences and ideal media types and specific vehicles. Recommends media formats, platforms, mix and frequency that is in line with the budget and established media objectives
How Ad Agencies Stay Competitive
Today: New Talent Technology Data Content
Traditionally: Talent Price
Role and Impact of PR
Strong impact on public awareness at a lower cost than advertising
• Power to engage consumers and make them part of the brand’s story
• Limited and scattered use
• Powerful brand-building tool
Message Execution Styles
● Slice of life. This style shows one or more “typical” people using the product in a normal setting. For example, a Silk Soymilk “Rise and Shine” ad shows a young professional starting the day with a healthier breakfast and high hopes.
● Lifestyle. This style shows how a product fits in with a particular lifestyle. For example, an ad for Athleta active wear shows a woman in a complex yoga pose and states: “If your body is your temple, build it one piece at a time.”
● Fantasy. This style creates a fantasy around the product or its use. For example, a Calvin Klein “Drive in to Fantasy” ad shows a woman floating blissfully above a surf-strewn beach at sunset in her Calvin Klein Nightwear.
● Mood or image. This style builds a mood or image around the product or service, such as beauty, love, intrigue, serenity, or pride. Few claims are made about the product or service except through suggestion. For example, Dodge Ram Truck’s moving Super Bowl XLVII commercial—”To the Farmer in Us All”—added poi- gnant pictures to radio-broadcast-legend Paul Harvey’s “So God Made a Farmer”
Novel formats can help an advertisement stand out. In this Volkswagen ad, the illustration does most of the work in illustrating the car maker’s parking assist feature.
Used with permission of Volkswagen Aktiengesellschaft. Creative studio – The Operators
customers, “Are you jug addicted?” The solution: “Our patent-pending formula that’s so fricken’ concentrated, 50 loads fits in a teeny bottle. . . . With our help, you can get off the jugs and get clean.”
Finally, format elements make a difference in an ad’s impact as well as in its cost. A small change in an ad’s design can make a big difference in its effect. In a print or display ad, the illustration is the first thing the reader notices—it must be strong enough to draw attention. Next, the headline must effectively entice the right people to read the copy. Finally, the copy—the main block of text in the ad—must be simple but strong and convincing. Moreover, these three elements must effectively work together to engage customers and persuasively present customer value. However, novel formats can help an ad stand out from the clutter. For example, in one striking ad from Volkswagen, the illustration does most of the work in catching relevant attention for the car maker’s precision parking assist feature. It shows a porcupine “parked” in a tight space between goldfish in water-filled plastic bags. The small-print headline says only, “Precision Parking. Park Assist by Volkswagen.” Enough said!
Chapter 12: Engaging Consumers and Communicating Customer Value 383
speech, pulling down the number-two spot in USA Today’s Ad Meter ratings that year. Except for a few brief frames and a closing picture, the two-minute ad never directly mentioned or showed sponsor Dodge Ram Trucks. However, it associated the brand with strong emotions and basic American values.
● Musical. This style shows people or cartoon characters singing about the product. For example, the M&M’s “Love Ballad” ad, part of the Better with M campaign, featured Red singing Meat Loaf’s “I’d Do Anything for Love,” showcasing his commitment to actress Naya Rivera. Red has second thoughts, however, when Rivera can’t resist add- ing Red to some of her favorite treats, including cookies, cake, and ice cream. To all of that, Red answers with the lyric, “But I won’t do that … or that … or that … or that.”
● Personality symbol. This style creates a character that represents the product. The character might be animated (Mr. Clean, the GEICO Gecko, or the Michelin Man) or real (perky Progressive Insurance spokeswoman Flo, Allstate’s Mayhem, Ronald McDonald).
● Technical expertise. This style shows the company’s expertise in making the prod- uct. Thus, Jim Koch of the Boston Beer Company tells about his many years of experience in brewing Samuel Adams beer.
● Scientific evidence. This style presents survey or scientific evidence that the brand is better or better liked than one or more other brands. For years, Crest toothpaste has used scientific evidence to convince buyers that Crest is better than other brands at fighting cavities.
● Testimonial evidence or endorsement. This style features a highly believable or likable source endorsing the product. It could be ordinary people saying how much they like a given product. For example, Whole Foods features a variety of real customers in its Values Matter marketing campaign. Or it might be a celebrity presenting the product, such as Beyoncé or Sofia Vergara speaking for Diet Pepsi


Introduction to Marketing Theory and Practice Course Product Price Promotion Place Marketing Mix Kotler

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