CH-17 Designing and Managing Integrated Marketing Communications – Marketing Management : Exam Guide

Chapter 17 1. ________ refers to the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell. A) Human resource development B) Marketing communications C) Financial management D) Operations management E) Planning Answer: B Rationale: Marketing communications encompass various strategies and tools used by companies to reach out to consumers, inform them about products, persuade them to make purchases, and remind them about brands. This involves activities such as advertising, public relations, direct marketing, and sales promotions. 2. Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media? A) advertising B) personal selling C) sales promotion D) direct marketing E) public relations Answer: A Rationale: Advertising involves any paid form of communication through various media channels to promote products or services. It is typically nonpersonal and aims to reach a wide audience with a persuasive message. 3. Which of the following elements of the marketing communications mix involves a variety of short-term incentives to encourage trial or purchase of a product or service? A) advertising B) direct marketing C) public relations D) personal selling E) sales promotion Answer: E Rationale: Sales promotion includes various short-term tactics aimed at stimulating immediate sales or encouraging trial of a product or service. This can include discounts, coupons, samples, contests, and other promotional offers. 4. Which of the following is an example of a trade promotion? A) free samples B) discount coupons C) display allowances D) contests for sales reps E) premiums Answer: C Rationale: Trade promotions are aimed at intermediaries or resellers rather than end consumers. Display allowances, which provide funds or discounts to retailers for featuring a product prominently in-store, are an example of a trade promotion. 5. Which of the following is an example of a business and sales force promotion? A) advertising allowance B) free samples C) contests for sales reps D) display allowance E) discount coupons Answer: C Rationale: Business and sales force promotions are incentives or rewards aimed at motivating a company's sales team or intermediaries. Contests for sales reps are a typical example, encouraging sales performance through competition. 6. ________ refer to the marketing communications element that involves companysponsored activities and programs designed to create daily or special brand-related interactions with consumers. A) Publicity campaigns B) Trade promotions C) Advertisements D) Public relations E) Events and experiences Answer: E Rationale: Events and experiences involve creating brand-related interactions with consumers through sponsored activities and programs. This includes events like product launches, experiential marketing campaigns, and sponsorships. 7. Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications? A) direct marketing B) public relations and publicity C) personal selling D) advertising E) sales promotion Answer: B Rationale: Public relations and publicity involve managing a company's communication with various stakeholders, including employees, consumers, media, and government, to promote or protect its image or product communications. 8. Which of the following elements of the marketing communication mix involves use of mail, telephone, fax, e-mail, or Internet to communicate with or solicit response or dialogue from specific customers and prospects? A) advertising B) personal selling C) direct marketing D) public relations E) sales promotion Answer: C Rationale: Direct marketing involves communicating directly with targeted individuals or groups to solicit a response or initiate a dialogue. This can include various methods such as mail, telephone, email, and online advertising. 9. ________ is an element of the marketing communications mix that involves online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services. A) Personal selling B) Direct marketing C) Sales promotion D) Interactive marketing E) Public relations Answer: D Rationale: Interactive marketing involves online activities and programs aimed at engaging customers or prospects. It can include interactive ads, social media campaigns, and other digital strategies to raise awareness, improve brand image, or drive sales. 10. ________ is an element of the marketing communications mix that involves people-topeople oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. A) Personal selling B) Sales promotion C) Word-of-mouth marketing D) Public relations E) Advertising Answer: C Rationale: Word-of-mouth marketing involves individuals sharing their experiences or opinions about products or services with others, either orally, in writing, or electronically. It relies on personal communication rather than paid advertising or promotions. 11. Which of the following elements of the marketing communications mix involves face-toface interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders? A) advertising B) sales promotion C) word-of-mouth marketing D) public relations E) personal selling Answer: E Rationale: Personal selling involves direct interaction between a sales representative and prospective customers to present products, address queries, and ultimately secure sales. It is characterized by personalized communication tailored to individual needs. 12. Which of the following is an example of an advertising platform? A) posters and leaflets B) company magazines C) fairs and trade shows D) sales presentations E) continuity programs Answer: A Rationale: Advertising platforms are mediums through which advertising messages are conveyed to target audiences. Posters and leaflets represent physical advertising materials commonly used to promote products or services. 13. Which of the following is an example of an events and experiences platform? A) fairs and trade shows B) continuity programs C) factory tours D) sales presentations E) community relations Answer: C Rationale: Events and experiences platforms involve activities or programs designed to engage consumers directly with a brand. Factory tours offer firsthand experiences allowing consumers to interact with a brand in a unique and immersive way. 14. Which of the following is an example of a public relations and publicity communication platform? A) lobbying B) company museums C) street activities D) company blogs E) incentive programs Answer: A Rationale: Public relations and publicity platforms encompass various strategies aimed at managing a company's reputation and public image. Lobbying involves influencing governmental decisions and policies, which is often part of a company's public relations efforts. 15. Which of the following is an example of an interactive marketing communication platform? A) product demonstrations B) factory tours C) company museums D) TV shopping E) community relations Answer: D Rationale: Interactive marketing communication platforms involve engaging consumers in two-way communication that allows for participation or interaction. TV shopping enables viewers to directly engage with products being showcased and make purchases interactively. 16. Which of the following is an example of a word-of-mouth marketing communication platform? A) chat rooms B) billboards C) factory tours D) incentive programs E) trade shows Answer: A Rationale: Word-of-mouth marketing platforms facilitate informal communication among consumers, often through online or offline conversations. Chat rooms provide a platform for individuals to discuss products or services, influencing others through word-of-mouth. 17. Which of the following is an example of a personal selling communication platform? A) sales presentations B) company blogs C) telemarketing D) TV shopping E) press kits Answer: A Rationale: Personal selling platforms involve direct interaction between a salesperson and potential customers. Sales presentations provide an opportunity for sales representatives to present products or services to prospects in a personalized manner. 18. The starting point in planning marketing communications is a ________ that profiles all interactions customers in the target market may have with the company and all its products and services. A) marketing budget B) communications audit C) market research program D) publicity campaign E) product launch Answer: B Rationale: A communications audit involves assessing and analyzing all communication channels and touchpoints between a company and its customers. It helps in identifying existing communication strategies, gaps, and opportunities for improvement. 19. Along which of the following parameters should marketers evaluate communication options when building brand equity? A) popularity B) innovativeness C) technological sophistication D) efficiency E) novelty Answer: D Rationale: When building brand equity, marketers should evaluate communication options based on their efficiency in reaching and engaging the target audience. Efficiency ensures that communication efforts generate desired outcomes effectively within available resources. 20. Which of the following factors found in the macromodel of the communications process refers to random and competing messages that may interfere with the intended communication? A) negative feedback B) noise C) attenuation D) phase lag E) selective distortion Answer: B Rationale: In the macromodel of the communications process, noise refers to any interference that distorts or disrupts the intended message between the sender and receiver. This interference can be caused by various factors, such as competing messages, environmental distractions, or technical issues. 21. Which of the following represents one of the major tools for effective communication in the macromodel of the communications process? A) feedback B) noise C) receiver D) message E) sender Answer: D Rationale: In the macromodel of the communication process, the message is a fundamental tool for communication. It is the information or content being transmitted from the sender to the receiver and plays a central role in conveying the intended meaning or purpose of the communication. 22. Which of the following is the correct order of stages that a buyer is assumed to pass through, by the four classic response hierarchy models? A) cognitive stage-affective stage-behavioral stage B) affective stage-cognitive stage-behavioral stage C) behavioral stage-affective stage-cognitive stage D) cognitive stage-behavioral stage-affective stage E) affective stage-behavioral stage-cognitive stage Answer: A Rationale: The correct order of stages according to the classic response hierarchy models is cognitive stage (learning), affective stage (feeling or emotion), and behavioral stage (action or purchase). 23. LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers, for both individual consumers and businesses. Which of the following sequences of consumer responses is relevant as a marketing communications model for LCH's products? A) learn-do-feel B) feel-learn-do C) do-feel-learn D) feel-do-learn E) do-learn-feel Answer: C Rationale: The "do-feel-learn" sequence is relevant for products like computers, where consumers often engage in trial or usage (do), which then leads to emotional response or satisfaction (feel), followed by learning more about the product features or benefits (learn). 24. All response hierarchy models of the communication process assume the buyer passes through cognitive, affective, and behavioral stages, in that order. Which of the following product categories lends itself most appropriately to such a "learn-feel-do" sequence? A) clothes B) dish-washers C) real estate D) personal computer E) air tickets Answer: C Rationale: Real estate is a high-involvement product category where consumers typically engage in information gathering and evaluation (learn), develop emotional attachment or preference (feel), and finally take action, such as purchasing or renting (do). 25. When planning communications for a detergent brand, which of the following sequences of buyer responses should the marketer choose on which to base the communications model? A) feel-do-learn B) do-feel-learn C) feel-learn-do D) learn-do-feel E) learn-feel-do Answer: D Rationale: For a low-involvement product like detergent, the "learn-do-feel" sequence is appropriate. Consumers first learn about the product (e.g., its features or benefits), then engage in trial or purchase (do), which may lead to emotional response or satisfaction (feel). 26. Which of the following steps in the innovation-adoption model of marketing communications corresponds to the cognitive stage that a buyer passes through? A) interest B) evaluation C) trial D) awareness E) adoption Answer: D Rationale: In the innovation-adoption model, the cognitive stage corresponds to awareness, where consumers become aware of the existence of the new product or innovation. 27. According to the hierarchy-of-effects model, which of the following corresponds to the behavioral stage that a buyer passes through? A) awareness B) knowledge C) purchase D) preference E) conviction Answer: C Rationale: In the hierarchy-of-effects model, the behavioral stage corresponds to purchase, where consumers take action by buying the product or service. 28. According to the hierarchy-of-effects model, which of the following corresponds to the affective stage that a buyer passes through? A) attention B) exposure C) reception D) adoption E) conviction Answer: E Rationale: In the hierarchy-of-effects model, the affective stage corresponds to conviction, where consumers develop a strong preference or conviction towards the product or service. 29. Which of the following sequences accurately represents the hierarchy-of-effects model of marketing communications? A) attention-interest-desire-action B) awareness-interest-evaluation-trial-adoption C) awareness-knowledge-liking-preference-conviction-purchase D) exposure-reception-cognitive response-attitude-intention-behavior E) knowledge-persuasion-decision-implementation-confirmation Answer: C Rationale: The hierarchy-of-effects model follows the sequence of awareness, knowledge, liking, preference, conviction, and finally purchase or action, representing the stages consumers go through in response to marketing communications. 30. Which is the first step to be performed by a marketer in developing effective marketing communications? A) identifying a target audience B) determining the objectives C) establishing the budget D) deciding on the media mix E) selecting the communication channels Answer: A Rationale: Identifying a target audience is the first step in developing effective marketing communications as it allows marketers to tailor their messages and strategies to reach and engage the intended audience effectively. 31. Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________. A) brand knowledge B) purchase patterns C) demographic characteristics D) income levels E) psychographic characteristics Answer: A Rationale: Profiling the target audience in terms of brand knowledge helps marketers understand consumers' familiarity with and perceptions of the brand. This analysis informs the development of effective marketing communication strategies tailored to address gaps in brand knowledge or reinforce existing perceptions. 32. Which of the following is the marketing communications objective for a new-to-theworld product, such as electric cars? A) enhancing brand awareness B) developing brand attitude C) increasing brand purchase intention D) encouraging repeat purchases E) establishing category need Answer: E Rationale: For new-to-the-world products like electric cars, the primary marketing communications objective is to establish the category need, making consumers aware of the product's existence and its potential to fulfill a previously unaddressed need or desire. 33. When Apple introduced the iPod in October 2001, it was the first-of-its-kind product that offered sizable storage capacity for songs and a portable device that was not seen before in the market. Which of the following is most likely to have been the marketing communications objective for the iPod at the time of its introduction? A) developing brand awareness B) building customer traffic C) enhancing purchase actions D) establishing product category E) enhancing firm image Answer: D Rationale: When introducing a groundbreaking product like the iPod, the primary marketing communications objective is to establish the product category. Apple aimed to educate consumers about this new type of portable music player and create demand for it by defining the category it belonged to. 34. One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need? A) normal depletion B) sensory gratification C) social approval D) intellectual stimulation E) value enhancement Answer: A Rationale: A negatively oriented relevant brand need, such as normal depletion, focuses on addressing the depletion or loss of something normal or expected, indicating a deficiency that the brand can fulfill. 35. One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a positively oriented relevant brand need? A) problem removal B) social approval C) normal depletion D) problem avoidance E) incomplete satisfaction Answer: B Rationale: A positively oriented relevant brand need, such as social approval, emphasizes the desire for recognition, acceptance, or validation from others, indicating a benefit or desire that the brand can fulfill. 36. One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is emphasized by an advertisement for dish-washing gloves? A) social approval B) intellectual stimulation C) problem removal D) normal depletion E) sensory gratification Answer: C Rationale: Dish-washing gloves address the need for problem removal by providing a solution to the inconvenience or discomfort of washing dishes without protection, emphasizing the practical benefit of the product. 37. One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is most likely emphasized by an advertisement for a luxury car? A) problem removal B) sensory gratification C) normal depletion D) intellectual stimulation E) problem avoidance Answer: B Rationale: An advertisement for a luxury car is likely to emphasize sensory gratification, highlighting the pleasure, comfort, and prestige associated with owning and driving the car. 38. Creative strategies refer to _______. A) the way marketers translate their messages into a specific communication B) the amount of creative content in a communications message C) the degree of innovation involved in the marketing of a product D) the novelty of a marketing communication E) the type of medium used to deliver a marketing communication Answer: A Rationale: Creative strategies refer to the approach or method used by marketers to translate their messages into specific communications that resonate with the target audience. It involves crafting messages in a creative and compelling manner to achieve communication objectives effectively. 39. A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or benefits. A) aesthetic B) informational C) bandwagon D) emotional E) transformational Answer: B Rationale: An informational appeal focuses on elaborating product or service attributes, features, or benefits to inform and educate consumers about the functional aspects of the offering. 40. A(n) ________ appeal is a creative strategy that elaborates on a nonproduct-related benefit or image. A) logical B) transformational C) reasonable D) informational E) rational Answer: B Rationale: A transformational appeal emphasizes nonproduct-related benefits or images associated with the brand, such as social status, emotional satisfaction, or lifestyle enhancement. It aims to evoke emotions or aspirations in consumers rather than focusing solely on product attributes. 41. Which of the following ads depict a transformational appeal? A) Thompson Water Seal can withstand intense rain, snow, and heat B) DIRECTV offers better HD options than cable or other satellite operators C) NBA phenomenon LeBron James pitching Nike, Sprite, and McDonald's D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years E) Excedrin stops the toughest headache pain Answer: D Rationale: The Pringles ad "Once You Pop, the Fun Don't Stop" emphasizes the transformational appeal by associating the product with the idea of continuous enjoyment and fun, suggesting that consuming Pringles can lead to a lasting positive experience beyond just the initial act of opening the can. 42. Which of the following ads depict an informational appeal? A) Thompson Water Seal can withstand intense rain, snow, and heat B) The California Milk Processor Board ran the successful "Got Milk?" ad to boost declining sales C) VW advertised to active, youthful people with its famed "Drivers Wanted" campaign D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years E) KFC has marketed its fast-food products under the slogan, "Finger Lickin' Good" Answer: A Rationale: The Thompson Water Seal ad focuses on providing information about the product's capabilities, such as its ability to withstand intense weather conditions, appealing to consumers based on its functional attributes rather than emotional or transformational benefits. 43. ________ is one of the sources of a spokesperson's credibility that refers to the specialized knowledge that he or she possesses to claim. A) Trustworthiness B) Expertise C) Acquaintance D) Likability E) Professionalism Answer: B Rationale: Expertise is a source of a spokesperson's credibility that refers to the specialized knowledge or skills they possess, which enables them to make credible claims or endorsements related to the product or service being promoted. 44. ________ is a source of a spokesperson's credibility that describes how objective and honest the spokesperson is perceived to be. A) Likability B) Expertise C) Experience D) Trustworthiness E) Compassion Answer: D Rationale: Trustworthiness is a source of a spokesperson's credibility that refers to the perception of the spokesperson's honesty, integrity, and reliability in conveying information or making endorsements, which enhances their credibility with the audience. 45. Which of the following sources of a spokesperson's credibility describes his or her attractiveness? A) expertise B) trustworthiness C) likability D) integrity E) experience Answer: C Rationale: Likability is a source of a spokesperson's credibility that refers to the attractiveness or appeal of the spokesperson, influencing the audience's perception of them and their message. 46. Which of the following marketing communications principles implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience? A) principle of closure B) principle of duality C) principle of delegation D) principle of congruity E) principle of neutrality Answer: D Rationale: The principle of congruity suggests that communicators can use their positive image or associations to mitigate negative perceptions or feelings toward a brand. However, in doing so, they may risk losing some credibility or esteem with the audience due to perceived bias or self-interest. 47. Which of the following is an example of a personal communications channel? A) public relations B) events and experiences C) interactive marketing D) sales promotions E) advertising Answer: C Rationale: Interactive marketing involves direct communication between the brand and consumers, allowing for personalized interactions and engagement, making it a personal communications channel. 48. Which of the following personal communication channels consist of company salespeople contacting buyers in the target market? A) expert channels B) social channels C) advocate channels D) independent channels E) informal channels Answer: C Rationale: Advocate channels involve company representatives or salespeople directly contacting buyers in the target market to promote products or services and advocate for the brand. 49. Which of the following personal communications channels consist of family members, neighbors, friends, and associates talking to target buyers? A) expert channels B) advocate channels C) social channels D) formal channels E) sponsored channels Answer: C Rationale: Social channels involve informal communication among individuals, such as family members, friends, neighbors, and associates, who share information, recommendations, or opinions about products or services with target buyers. 50. Top Gear is an award-winning British television series about motor vehicles, mainly cars. It is presented by a set of hosts who test drive new cars and provide reviews on the cars' performance, their prices, and other factors. Which of the following personal communications channels is Top Gear closest to in description? A) expert channel B) formal channel C) social channel D) sponsored channel E) advocate channel Answer: A Rationale: Top Gear functions as an expert channel because the hosts possess specialized knowledge and expertise in the field of motor vehicles, providing authoritative reviews and information to viewers, making it a credible source of information for car enthusiasts and potential buyers. 51. Which of the following is a form of earned media for marketing communication messages? A) experts providing product reviews B) celebrities endorsing products C) social network discussions about products D) company salespeople contacting target buyers E) sponsored advertisements promoting products Answer: C Rationale: Social network discussions about products represent earned media because they are unpaid, organic mentions or discussions about products on social media platforms, generated by consumers or users sharing their opinions, experiences, or recommendations. 52. Personal influence in marketing communications carries great weight when ________. A) the product being marketed is a convenience item B) the purchase of the product is considered to be safe and risk-free C) the product suggests something about the user's status or taste D) the product being marketed is purchased on a frequent basis E) the product or service in question is used without being recommended by others Answer: C Rationale: Personal influence in marketing communications carries great weight when the product suggests something about the user's status or taste, as individuals may seek validation or approval from others, such as peers or opinion leaders, when making purchasing decisions related to products that reflect their identity or social standing. 53. Which of the following is a form of mass communications channel? A) interactive marketing B) personal selling C) public relations D) word-of-mouth marketing E) sales presentations Answer: C Rationale: Public relations is a form of mass communications channel because it involves disseminating information or messages to a wide audience through various media channels, such as press releases, news articles, events, and publicity efforts, to generate awareness and shape public perception of a brand or organization. 54. Which of the following statements is true of the two-step approach to mass communications? A) The influence of mass media on public opinion is more direct, powerful, and automatic than marketers have supposed. B) Communications through mass media bypass opinion leaders and reach individual buyers. C) The two-step flow supports the notion that consumption styles are primarily influenced by a "trickle-down" or "trickle-up" effect from mass media. D) According to the two-step flow, people interact primarily within their own social groups and acquire ideas from opinion leaders in their groups. E) Two-step communication suggests that mass communicators should direct messages to groups of buyers who interpret the message and act accordingly. Answer: D Rationale: According to the two-step flow model, people interact primarily within their own social groups, and they acquire ideas or opinions from opinion leaders within these groups who have more influence on individual beliefs and behaviors than mass media. 55. Which of the following is a characteristic of the affordable method of establishing a marketing communications budget? A) fixed annual budget B) suitable for long-range planning C) priority given to the role of promotion as an investment D) calculated to reflect what the company can spare for marketing communications E) based on the immediate impact of promotion on sales volume Answer: D Rationale: The affordable method of establishing a marketing communications budget involves allocating funds based on what the company can spare for marketing communications after considering other expenses and financial obligations, rather than setting a fixed annual budget or prioritizing promotion as an investment. 56. Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. After extensive discussions, they decide that the size of the budget will be calculated as a fraction of the overall turnover. What method did Kelly and Trent use to arrive at the marketing communications budget? A) affordable method B) objective-and-task method C) competitive-parity method D) activity-based method E) percentage-of-sales method Answer: E Rationale: Kelly and Trent used the percentage-of-sales method, where the marketing communications budget is determined as a percentage of the company's overall sales turnover, providing a simple and straightforward way to allocate funds based on revenue. 57. Which of the following is an advantage of using the percentage-of-sales method to determine the marketing communications budget? A) The percentage-of-sales method encourages stability when competing firms spend approximately the same portion of their sales on communications. B) The percentage-of-sales method views sales as the determiner of communications rather than as the result. C) The percentage-of-sales method leads to a budget set by market opportunities rather than the availability of funds. D) The percentage-of-sales method encourages experimentation with countercyclical communication or aggressive spending. E) The percentage-of-sales method encourages building the communication budget by determining what each product and territory deserves. Answer: A Rationale: One advantage of using the percentage-of-sales method is that it encourages stability when competing firms spend approximately the same portion of their sales on communications, ensuring that companies remain competitive within their industry. 58. Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget? A) It discourages stability when competing firms spend approximately the same percentage of their sales on communications. B) By using a percentage-of-sales method, communication expenditures tend to be extremely high irrespective of what a company can afford. C) It discourages management from thinking of the relationship among communication cost, selling price, and profit per unit. D) Dependence of the percentage-of-sales method on year-to-year sales fluctuations interferes with long-range planning. E) The percentage-of-sales method views sales as the result in itself rather than the determiner of communications. Answer: D Rationale: A disadvantage of using the percentage-of-sales method is that it depends on year-to-year sales fluctuations, which can interfere with long-range planning and may lead to inconsistent or inadequate budget allocations in periods of fluctuating sales. 59. Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They pore over the sales reports and other financial records and determine the amount of resources they can spare for marketing communications, after resources have been allocated to other functions, such as R&D, logistics, etc. What method did Kelly and Trent use to arrive at the marketing communications budget? A) objective-and-task method B) affordable method C) competitive-parity method D) activity-based method E) percentage-of-sales method Answer: B Rationale: Kelly and Trent used the affordable method, which involves determining the marketing communications budget based on what the company can afford to allocate after considering other expenses and financial obligations, ensuring that marketing communications spending does not exceed available resources. 60. Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They decide to trust in the prevailing collective wisdom of the industry as a whole, and not wanting to instigate a communications war, settle on spending only as much as their nearest market rival does on marketing communications. What method did Kelly and Trent use to arrive at the marketing communications budget? A) objective-and-task method B) affordable method C) competitive-parity method D) activity-based method E) percentage-of-sales method Answer: C Rationale: Kelly and Trent used the competitive-parity method, where the marketing communications budget is determined based on what competitors are spending on similar activities, ensuring that the company remains competitive within the industry without overspending or instigating a communications war. 61. Marketing communications budgets tend to be higher when ________. A) there is high channel support B) there exists hardly any change in the marketing program over time C) there are infrequent product purchases in large quantities D) there are differentiated products and nonhomogeneous customer needs E) there are many easily-reachable customers spread over small geographic territories Answer: D Rationale: Marketing communications budgets tend to be higher when there are differentiated products and nonhomogeneous customer needs because such products require more targeted and varied communication efforts to effectively reach and engage different segments of the market. 62. Which of the following benefits is offered by sales promotion tools? A) Sales promotion tools are more authentic and credible to buyers than others such as advertising, public relations, and personal selling. B) Sales promotion tools can reach prospects who prefer to avoid mass media and targeted promotions. C) Sales promotion tools are typically an indirect form of "soft-sell" and hence, better received by customers. D) Sales promotion tools incorporate some concession, inducement, or contribution that gives value to the consumer. E) Sales promotion tools allow buyers personal choices and encourage them to respond directly. Answer: D Rationale: Sales promotion tools offer benefits such as incorporating some concession, inducement, or contribution that gives value to the consumer, making them attractive incentives for consumers to take action, such as making a purchase or trying a product. 63. Which of the following statements correctly reflects a characteristic of public relations as a marketing communications tool? A) Public relations can reach prospects who prefer to avoid mass media and targeted promotions. B) They incorporate some concession, inducement, or contribution that gives value to the consumer. C) Given their live, real-time quality, public relations tools are more actively engaging for consumers. D) Public relations communications can be prepared to appeal to the addressed individual. E) Public relations tools create an immediate and interactive episode between two or more persons. Answer: A Rationale: Public relations can reach prospects who prefer to avoid mass media and targeted promotions because they involve various activities aimed at generating positive publicity and building relationships with stakeholders, which can often reach audiences in a more subtle or indirect manner than traditional advertising or sales promotions. 64. Janet is a marketing manager with Injoos, a company that manufactures packaged fruit juices. Knowing that there exist several other companies in the market that offer similar products, Janet decides to build a customer base from among those who prefer to avoid mass media and other targeted promotions. Which of the following marketing communications tools would be her best option to build a favorable impression among the prospective customers? A) advertising B) personal selling C) sales promotions D) direct marketing E) public relations Answer: E Rationale: Public relations would be the best option for Janet to build a favorable impression among prospective customers who prefer to avoid mass media and targeted promotions. Public relations efforts, such as press releases, events, and sponsorships, can help create positive publicity and build relationships with stakeholders in a less intrusive manner than traditional advertising or sales promotions. 65. Which of the following marketing communications tools is most effective at the later stages of the buying process? A) personal selling B) public relations C) advertising D) sales promotions E) direct marketing Answer: A Rationale: Personal selling is most effective at the later stages of the buying process because it allows for direct interaction between the salesperson and the prospect, enabling the salesperson to address specific concerns, provide detailed information, and guide the prospect towards making a purchase decision. 66. Which of the following statements is true of the role of advertising in business markets? A) Advertising is unsuitable for explaining any new features that a product might have. B) Sales calls are more economical than reminder advertisements. C) Sales calls are more effective than advertisements at reminding customers how to use a product and reassure them about their purchase. D) Sales representatives can use copies of the company's ads to legitimize their company and products. E) Advertisements are the least preferred tools when intended to generate leads for sales representatives. Answer: D Rationale: Sales representatives can use copies of the company's ads to legitimize their company and products, as advertisements often contribute to building brand awareness and credibility in the market, providing sales representatives with supporting materials to enhance their sales presentations and establish trust with customers. 67. Which of the following circumstances are best suited for the use of personal selling? A) when the products used are simple and easy-to-use B) when there is minimal risk involved in buying or using the products C) when the market has fewer and larger sellers D) when the products being marketed are inexpensive and easily available E) when prospective customers are spread across a wide geographic area Answer: C Rationale: Personal selling is best suited for circumstances when the market has fewer and larger sellers because it allows sales representatives to engage in direct, personalized interactions with key decision-makers within target accounts, facilitating relationship-building and negotiation in complex or high-value transactions. 68. Which of the following marketing communications tools is most effective at influencing customers at the conviction stage of buyer readiness? A) advertising B) publicity C) sales promotion D) personal selling E) events and experiences Answer: D Rationale: Personal selling is most effective at influencing customers at the conviction stage of buyer readiness because it allows sales representatives to address specific concerns, overcome objections, and provide tailored solutions to individual prospects, ultimately guiding them towards making a purchase decision. 69. Advertising and publicity tools play the most important roles in influencing buying decisions at the ________ stage of buyer readiness. A) comprehension B) conviction C) ordering D) reordering E) awareness-building Answer: E Rationale: Advertising and publicity tools play the most important roles in influencing buying decisions at the awareness-building stage of buyer readiness because they are effective at generating initial awareness and interest in a product or brand among target customers, helping to create a favorable perception and consideration for further engagement. 70. Which of the following tools or combinations of tools is most influential at the comprehension stage of buyer readiness? A) sales promotion and advertising B) advertising and personal selling C) publicity and personal selling D) reminder advertising and publicity E) sales promotion and personal selling Answer: B Rationale: Advertising and personal selling are most influential at the comprehension stage of buyer readiness because advertising helps to generate initial awareness and interest in a product or brand among target customers, while personal selling allows for direct interaction and engagement to provide detailed information and address specific concerns, facilitating understanding and comprehension of the product's features and benefits. 71. Which of the following marketing communications tools has the highest costeffectiveness in the introduction stage of the product life cycle? A) personal selling B) sales promotion C) interactive marketing D) direct marketing E) events and experiences Answer: E Rationale: Events and experiences are highly effective during the introduction stage of the product life cycle as they offer opportunities for consumers to directly engage with the new product, creating excitement and generating buzz. Additionally, they allow for immersive brand experiences that can effectively communicate the product's unique features and benefits, making them a cost-effective option for generating awareness and interest among target audiences. 72. Which of the following marketing communications tools is most influential at the maturity stage of a product's life cycle? A) sales promotions B) direct marketing C) advertising D) publicity E) interactive marketing Answer: C Rationale: Advertising is most influential during the maturity stage of a product's life cycle because it helps maintain brand awareness and reinforces the product's positioning in the market. By consistently promoting the product through various channels, advertisers can remind consumers about the benefits of the product and encourage repeat purchases, thus sustaining sales levels during the maturity stage. 73. Luke is considering the various options available to him to promote an energy drink, Turbozade, that is seeing decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should Luke focus marketing efforts on to keep the sales volume up? A) advertising B) direct marketing C) events and experiences D) sales promotions E) publicity Answer: D Rationale: Sales promotions would be the most effective marketing communications tool for Luke to focus on in order to keep the sales volume up for Turbozade. Sales promotions offer incentives such as discounts, coupons, or contests to encourage consumers to make immediate purchases, which can help stimulate demand and counteract declining sales volumes. 74. Which of the following marketing communications tools is most influential at the reordering stage of buyer readiness? A) events and experiences B) publicity C) direct marketing D) sales promotion E) interactive marketing Answer: D Rationale: Sales promotion is most influential at the reordering stage of buyer readiness because it offers incentives or discounts to encourage repeat purchases from existing customers. By providing value-added promotions or loyalty rewards, sales promotions can help maintain customer loyalty and encourage ongoing patronage of the product. 75. ________ is a measure of communications effectiveness that describes the percentage of the target market exposed to a communication. A) Frequency B) Reach C) Width D) Depth E) Range Answer: B Rationale: Reach is a measure of communications effectiveness that quantifies the percentage of the target market that has been exposed to a specific marketing communication within a defined period. It indicates the extent to which the message has penetrated the target audience and is essential for evaluating the overall effectiveness of a communication campaign. 76. ________ refers to a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time. A) Brand engagement B) Integrated marketing communications C) Market research D) Customerization E) Marketing research Answer: B Rationale: Integrated marketing communications (IMC) refers to a planning process that ensures all brand communications received by customers or prospects are relevant and consistent over time. It involves coordinating various promotional elements such as advertising, sales promotion, public relations, and direct marketing to deliver a unified and seamless brand experience across multiple channels. 77. Marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things. Answer: True Rationale: Marketing communications encompass a wide array of strategies and tactics aimed at connecting a brand with various elements of the consumer's life, including people, events, experiences, and emotions. This linkage helps reinforce brand associations and build brand equity. 78. The rapid diffusion of multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital video recorders (DVRs) have augmented the effectiveness of the mass media. Answer: False Rationale: The statement is false because the rapid diffusion of technologies such as smartphones, broadband internet, and ad-skipping DVRs has fragmented media consumption patterns, making it more challenging for mass media to reach large audiences effectively. 79. The pervasive nature of advanced communications technologies, such as the Internet, has resulted in greater exposure of customers to advertising content than it was in the 1960s. Answer: False Rationale: The statement is false because although advanced communication technologies like the internet have increased the potential reach of advertising content, it does not necessarily translate to greater exposure for individual customers. The proliferation of media channels and technologies has led to increased fragmentation, allowing consumers to avoid or filter out advertising content more effectively. 80. Marketing communications in almost every medium and form have been on the rise, and some consumers feel they are increasingly invasive. Answer: True Rationale: This statement is true as marketing communications have expanded across various mediums and forms, including traditional media, digital platforms, and even emerging technologies like augmented reality. However, some consumers perceive these communications as invasive due to factors such as ad overload, targeted advertising, and intrusive marketing tactics. 81. In this new communication environment, advertising is often the single-most important element of a marketing communications program for sales and building brand and customer equity. Answer: False Rationale: In the modern communication environment, advertising is just one component of a comprehensive marketing communications strategy. Other elements such as public relations, social media, content marketing, and experiential marketing play significant roles in building brand equity and engaging customers. 82. Personal selling refers to people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. Answer: False Rationale: The statement is false because personal selling specifically refers to face-to-face or direct communication between a salesperson and a potential customer, rather than electronic communication. 83. In building brand equity, marketers should be "media neutral" and evaluate all communication options on effectiveness and efficiency. Answer: True Rationale: Being "media neutral" means that marketers should not favor one communication channel over another but should instead evaluate all options based on their effectiveness and efficiency in reaching the target audience and achieving communication objectives. This approach allows marketers to select the most suitable channels for their specific goals and target audience. 84. The less the sender's field of experience overlaps that of the receiver, the more effective the message is likely to be. Answer: False Rationale: The statement is false because effective communication often relies on shared understanding and common ground between the sender and receiver. When the sender's field of experience overlaps with that of the receiver, it enhances the likelihood of message comprehension and effectiveness. 85. All the response hierarchy models assume that a buyer passes through affective, cognitive, and behavioral stages, in that order. Answer: False Rationale: Response hierarchy models vary in their assumptions about the sequence of buyer response stages. While some models follow the affective-cognitive-behavioral sequence, others may propose different sequences or emphasize different stages based on the context and nature of the product or service. 86. A "do-feel-learn" response sequence is considered appropriate when the audience has high involvement but perceives little or no differentiation within the product category. Answer: True Rationale: The "do-feel-learn" response sequence is suitable for audiences with high involvement but low perceived differentiation within the product category. In such cases, engaging the audience in the product experience (do), eliciting emotional responses (feel), and then providing information (learn) can effectively differentiate the brand and influence purchase decisions. 87. Though the target audience can be profiled in terms of demographic, psychographic, or behavioral segments, it is often useful to do so in terms of usage and loyalty. Answer: True Rationale: Profiling the target audience based on usage and loyalty patterns provides valuable insights into their behaviors, preferences, and purchase intentions. Understanding how consumers use products and their level of loyalty can inform marketing strategies and help tailor communication messages and offers to specific segments, ultimately improving effectiveness and ROI. 88. Marketers can set communications objectives at any level of the hierarchy-of-effects model. Answer: True Rationale: The hierarchy-of-effects model encompasses various stages, including awareness, knowledge, liking, preference, conviction, and purchase. Marketers can set communication objectives at any of these stages depending on their marketing goals and the target audience's position in the decision-making process. 89. The marketing communications objective of "brand attitude" refers to helping consumers evaluate the brand's perceived ability to meet a currently relevant need. Answer: True Rationale: Brand attitude in marketing communications refers to influencing consumers' overall evaluation or perception of a brand, including its ability to fulfill their needs or desires. This objective aims to shape consumers' attitudes toward the brand, which can influence their purchasing behavior. 90. Problem removal and normal depletion are examples of positively oriented relevant brand needs. Answer: False Rationale: Problem removal and normal depletion are examples of negatively oriented relevant brand needs. Positively oriented relevant brand needs typically focus on the desire for improvement or enhancement rather than the alleviation of a problem. 91. Communications effectiveness depends solely on the content of a message, irrespective of how it is expressed. Answer: False Rationale: Communications effectiveness is influenced not only by the content of the message but also by how it is expressed, including factors such as tone, language, imagery, and delivery channel. The manner in which a message is conveyed can significantly impact its reception and effectiveness. 92. Volkswagen's famed "Drivers Wanted" advertising campaign aimed at attracting active, youthful people uses a transformational appeal as its creative strategy. Answer: True Rationale: The "Drivers Wanted" campaign by Volkswagen sought to transform the perception of the brand by associating it with qualities such as freedom, adventure, and youthfulness. This transformational appeal aimed to attract active, youthful consumers by appealing to their desire for excitement and independence. 93. One-sided presentations that praise a product are found to be more effective than twosided arguments that also mention shortcomings. Answer: False Rationale: Two-sided arguments that acknowledge both the positive attributes and shortcomings of a product can be more persuasive than one-sided presentations, especially when the audience is knowledgeable or skeptical. Acknowledging weaknesses can enhance credibility and trustworthiness. 94. Two-sided messages are more effective with more educated audiences and those who are initially opposed. Answer: True Rationale: Two-sided messages are often more effective with educated audiences and those who are initially opposed because they are perceived as more balanced and credible. Presenting both sides of an argument demonstrates honesty and openness, which can lead to greater persuasion, particularly among skeptical or knowledgeable individuals. 95. In a one-sided message, presenting the strongest argument first arouses attention and interest, important in media where the audience often does not attend to the whole message. Answer: True Rationale: In one-sided messages, presenting the strongest argument first is effective in capturing the audience's attention and generating interest, especially in media where attention spans are limited or audience engagement may be fleeting. Leading with the strongest argument increases the likelihood of message retention and impact. 96. Fear appeals work best when they are rather strong and reinforce what the audience already believes. Answer: False Rationale: Fear appeals can be effective in motivating behavior change, but they need to be carefully calibrated. Overly strong fear appeals can lead to defensive reactions or avoidance, while moderate fear appeals that offer viable solutions are generally more persuasive. Additionally, fear appeals are most effective when they are credible and address audience beliefs and concerns, rather than reinforcing existing fears. 97. If the messages are too discrepant, audiences will counterargue and disbelieve them. Answer: True Rationale: When messages are too discrepant or deviate significantly from the audience's existing beliefs or attitudes, they can trigger counterargumentation and skepticism. Audiences may reject or disbelieve messages that are perceived as too far removed from their existing beliefs or experiences, leading to reduced persuasion effectiveness. 98. Motivational or "borrowed interest" devices—such as the presence of cute babies, frisky puppies, popular music, or provocative sex appeals—are often employed to attract attention and raise involvement with an ad. Answer: True Rationale: Motivational or "borrowed interest" devices are frequently used in advertising to capture audience attention and increase engagement with an ad. These devices leverage existing emotional associations or cultural cues, such as cute babies or popular music, to elicit a desired response from the audience and enhance ad effectiveness. 99. Celebrities are likely to be effective when they are credible or personify a key product attribute. Answer: True Rationale: Celebrities can enhance brand credibility by lending their own credibility to the product or by embodying key attributes that align with the brand's image. When consumers perceive the celebrity as credible or relevant to the product, their endorsement can positively influence purchase decisions. 100. Trustworthiness is that source of a spokesperson's credibility that describes his or her attractiveness. Answer: False Rationale: Trustworthiness is a dimension of credibility that pertains to the audience's perception of the spokesperson's honesty, integrity, and reliability. Attractiveness refers to the spokesperson's physical appearance, likability, or appeal to the audience, which is a separate dimension of credibility. 101. The most highly credible source would score high on at least two of the three dimensions—expertise, trustworthiness, and likability. Answer: False Rationale: The most highly credible source would score high on all three dimensions—expertise, trustworthiness, and likability. Each dimension contributes to overall credibility, and a source that excels in all three areas is likely to be perceived as highly credible by the audience. 102. The principle of congruity implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience. Answer: True Rationale: The principle of congruity suggests that communicators should align their image or persona with the desired brand image to enhance credibility and effectiveness. However, if the communicator's image is significantly different from the desired brand image, attempts to reduce negative feelings toward the brand may lead to a loss of esteem or credibility with the audience. 103. Personal communications channels derive their effectiveness from individualized presentation and feedback and include direct and interactive marketing, word-of-mouth marketing, and personal selling. Answer: True Rationale: Personal communications channels rely on individualized interaction between the sender and receiver, allowing for tailored messages, immediate feedback, and interpersonal influence. Examples of personal communications channels include direct marketing, interactive marketing, word-of-mouth marketing, and personal selling. 104. Personal influence carries especially great weight when products are inexpensive, riskfree, or purchased frequently. Answer: False Rationale: Personal influence tends to carry greater weight when products are expensive, complex, risky, or infrequently purchased. In such cases, consumers may seek reassurance, advice, or recommendations from trusted sources before making a purchase decision. 105. Although personal communication is often more effective than mass communication, mass media might be the major means of stimulating personal communication. Answer: True Rationale: Mass media can serve as a catalyst for personal communication by generating awareness, interest, or discussion about a product or brand. Mass media messages can prompt individuals to seek additional information, share opinions, or engage in interpersonal communication with friends, family, or colleagues. 106. The two-step flow supports the notion that consumption styles are primarily influenced by a "trickle-down" or "trickle-up" effect from mass media. Answer: False Rationale: The two-step flow model suggests that information and influence flow from mass media to opinion leaders and then to the wider audience. It does not strictly adhere to a "trickle-down" or "trickle-up" effect but rather emphasizes the role of opinion leaders in interpreting and disseminating media messages to others. 107. Two-step communication suggests that mass communicators should direct messages specifically to opinion leaders and let them carry the message to others. Answer: True Rationale: Two-step communication theory suggests that mass communicators should target their messages toward opinion leaders, who then influence others through personal communication channels. By appealing to opinion leaders, marketers can leverage their influence to disseminate messages more effectively within their social networks. 108. The affordable method accounts for the role of promotion as an investment and the immediate impact of promotion on sales volume. Answer: False Rationale: The affordable method of budget setting does not account for the role of promotion as an investment or consider the immediate impact of promotion on sales volume. Instead, it determines the promotion budget based on what the company can afford or is willing to allocate, which may not align with promotional objectives or market opportunities. 109. The percentage-of-sales budgeting method encourages management to think of the relationship among communication cost, selling price, and profit per unit. Answer: True Rationale: The percentage-of-sales budgeting method ties the promotional budget to sales revenue or units sold, typically as a percentage of past or projected sales. This method encourages management to consider the relationship between communication costs, selling price, and profit per unit, as changes in these factors can affect the available promotional budget. 110. The percentage-of-sales method leads to a budget set by market opportunities rather than by the availability of funds. Answer: False Rationale: The percentage-of-sales method ties the promotional budget to sales revenue, often resulting in a budget that fluctuates based on sales performance. Therefore, this method may lead to a budget constrained by the availability of funds rather than solely by market opportunities. 111. Marketing communications budgets tend to be higher when there is much change in the marketing program over time and more complex customer decision making. Answer: True Rationale: Higher levels of change in the marketing program and more complex customer decisionmaking processes typically necessitate more extensive and targeted marketing communications efforts. As a result, marketing communications budgets are often higher under these conditions to effectively reach and influence consumers. 112. Advertising allows the buyer to receive and compare the messages of various competitors. Answer: True Rationale: Advertising provides buyers with the opportunity to receive and compare messages from various competitors, as advertisements from different brands are often presented in close proximity within the same media channels. This allows consumers to evaluate different offerings and make informed purchase decisions. 113. Public relations is incapable of reaching prospects who prefer to avoid mass media and targeted promotions. Answer: False Rationale: Public relations (PR) strategies can reach prospects through a variety of channels beyond mass media and targeted promotions. PR efforts can include tactics such as events, sponsorships, community engagement, influencer partnerships, and digital content, allowing brands to reach audiences who may actively avoid traditional advertising. 114. In general, personal selling is used more with complex, expensive, and risky goods and in markets with fewer and larger sellers. Answer: True Rationale: Personal selling is often employed for complex, expensive, and high-risk products because it allows for tailored communication, relationship-building, and addressing buyer concerns directly. Additionally, personal selling is more feasible in markets with fewer and larger sellers, where direct engagement with customers can provide a competitive advantage. 115. Advertising and publicity play the most important roles in the conviction stage of buyer readiness. Answer: False Rationale: In the conviction stage of buyer readiness, personal selling typically plays the most significant role, as it allows for direct interaction with customers to address concerns, provide information, and build confidence in the purchase decision. While advertising and publicity may contribute to building awareness and interest, personal selling is crucial for moving customers toward conviction and purchase. 116. In the growth stage of a product's life cycle, demand has its own momentum through word of mouth and interactive marketing. Answer: True Rationale: In the growth stage of the product life cycle, positive word of mouth and interactive marketing activities can generate momentum and drive demand for the product. As more consumers adopt the product and share their experiences, it can create a self-sustaining cycle of growth. 117. Media coordination can occur across and within media types, but marketers should combine personal and nonpersonal communications channels through multiple-vehicle, multiple-stage campaigns to achieve maximum impact and increase message reach and impact. Answer: True Rationale: Effective marketing communications often involve coordinating messages across various media types and integrating personal and nonpersonal channels. Multiple-vehicle, multiplestage campaigns allow marketers to reach consumers through different touchpoints and reinforce messages, increasing overall impact and message reach. 118. By using full-service marketing communications agencies, integrated and more effective marketing communications at a much lower total communications cost can be achieved. Answer: True Rationale: Full-service marketing communications agencies offer a comprehensive range of services, including advertising, public relations, digital marketing, and more. By utilizing these agencies, businesses can benefit from integrated campaigns that leverage multiple communication channels cohesively. This integration can lead to more effective communication strategies while potentially reducing the overall cost compared to employing separate agencies for each function. 119. Briefly describe the current marketing communications environment. Answer: Technology and other factors have profoundly changed the way consumers process communications, and even whether they choose to process them at all. The rapid diffusion of multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital video recorders (DVRs) have eroded the effectiveness of the mass media. In 1960, a company could reach 80 percent of U.S. women with one 30-second commercial aired simultaneously on three TV networks: ABC, CBS, and NBC. Today, the same ad would have to run on 100 channels or more to achieve this marketing feat. Consumers not only have more choices of media, they can also decide whether and how they want to receive commercial content. 120. What are the elements of the marketing communications mix? Answer: The marketing communications mix consists of eight major modes of communication: 1. Advertising — Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media. 2. Sales promotion — A variety of short-term incentives to encourage trial or purchase of a product or service including consumer promotions, trade promotions, and business and sales force promotions. 3. Events and experiences — Company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers, including sports, arts, entertainment, and cause events as well as less formal activities. 4. Public relations and publicity — A variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications. 5. Direct marketing — Use of mail, telephone, fax, e-mail, or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects. 6. Interactive marketing — Online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services. 7. Word-of-mouth marketing — People-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. 8. Personal selling — Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders. 121. Briefly describe the macromodel of the marketing communications process. Answer: The macromodel of the communications process has nine key factors in effective communication. Two represent the major parties — sender and receiver. Two represent the major tools — message and media. Four represent major communication functions — encoding, decoding, response, and feedback. The last element in the system is noise, random and competing messages that may interfere with the intended communication. Senders must know what audiences they want to reach and what responses they want to get. They must encode their messages so the target audience can decode them. They must transmit the message through media that reach the target audience and develop feedback channels to monitor the responses. The more the sender's field of experience overlaps that of the receiver, the more effective the message is likely to be. 122. Gravity is a company that markets customized T-shirts to its customers. Gravity runs an ad that seeks to attract more customers. Apply the macromodel of the communications process to describe the communication between Gravity and its target customers. Answer: The macromodel of the communications process comprises of nine key factors in effective communication. Two represent the major parties - sender (Gravity) and receiver (audience. Two represent the major tools - message (content of the ad) and media (print, TV, radio, etc. Four represent the major communications functions - encoding (creation and transmission of the ad by Gravity), decoding (the reception and comprehension of the ad by the audience), response (either ignoring the message or buying Gravity shirts), and feedback (customers providing information about the ad to measure its effectiveness. The last element is noise, random and competing messages that may interfere with the intended communication. Examples of noise in this case could be misunderstood messages from the ad, similar ads from competitors, etc. 123. Alan is an executive with an ad agency that has been entrusted with accounts for a usedcar showroom, a home appliances maker, and a soap company. With reference to response hierarchy models, how does Alan plan communication strategies for the three accounts effectively? Answer: All the four classic response hierarchy models assume that the buyer passes through cognitive (learn), affective (feel), and behavioral stages (do), in that order. Since buying a car, used or new, represents a significant investment for the buyer, it can be said that the buyer has involvement in the purchase decision and perceives high differentiation with the product category. Hence a "learn-feel-do" sequence is considered appropriate for the used-car showroom account. Similarly, a buyer intending to purchase home appliances, such as a dishwasher or a refrigerator, has high involvement in the purchase decision, even though he perceives little differentiation within the product category. Hence, a "do-feel-learn" approach may be appropriate when planning communications for the home appliances account. Finally, a buyer has low involvement in purchasing soap that has very little differentiation within its category. For the soap company account, Alan should consider a "learn-do-feel" sequence for planning communications. 124. Derek is working on promoting his company's Glazer brand of electronic razors. Preliminary surveys have revealed that even though a sizable portion of the target market has developed a liking for the product due to innovative advertising, few customers would actually consider replacing their current razors with Glazers. How can Derek modify the communications program to get customers to favor Glazers over other brands? Answer: Since customers are comfortable with their present electronic razors, Derek's communications strategy should aim to build preference for Glazers. Customers have already developed a liking for Glazers. So, Derek should focus on comparing the quality of Glazers with that of competing brands. This can be done by illustrating the improved features of Glazers that provide clean and hassle-free use. Derek could do well to compare the Glazers with other brands in terms of value, utility, and performance factors as well. 125. Derek is working on promoting his company's Glazer brand of electronic razors. Market research suggests that the target audience possesses an intent to use Glazers, but is dithering over actually making the purchase. How can Derek modify the communications program to get customers to purchase Glazer razors? Answer: Derek's task, once the intent to make a purchase has been fostered in the consumers, is to lead the them to the actual buying action. This can be achieved by offering the razors at a low introductory purchase to encourage initial use among customers, offering a discount on the price, or holding a promotional event where they can actually try out the product firsthand. 126. Provide a general description of the four classic response hierarchy models. Answer: Micromodels of marketing communications concentrate on consumers' specific responses to communications. All the response hierarchy models assume the buyer passes through cognitive, affective, and behavioral stages, in that order. This "learn-feel-do" sequence is appropriate when the audience has high involvement with a product category perceived to have high differentiation, such as an automobile or house. An alternative sequence, "do-feel-learn," is relevant when the audience has high involvement but perceives little or no differentiation within the product category, such as an airline ticket or personal computer. A third sequence, "learn-do-feel," is relevant when the audience has low involvement and perceives little differentiation, such as with salt or batteries. By choosing the right sequence, the marketer can do a better job of planning communications. 127. What are the features of an ideal advertising campaign? Answer: To increase the odds for a successful marketing communications campaign, marketers must attempt to increase the likelihood that each step occurs. For example, the ideal ad campaign would ensure that: 1. The right consumer is exposed to the right message at the right place and at the right time. 2. The ad causes the consumer to pay attention but does not distract from the intended message. 3. The ad properly reflects the consumer's level of understanding of and behaviors with the product and the brand. 4. The ad correctly positions the brand in terms of desirable and deliverable points-ofdifference and points-of-parity. 5. The ad motivates consumers to consider purchase of the brand. 6. The ad creates strong brand associations with all these stored communications effects so they can have an impact when consumers are considering making a purchase. 128. What are the steps involved in developing effective marketing communications? Answer: 1. Identify target audience 2. Determine objectives 3. Design communications 4. Select channels 5. Establish budget 6. Decide on media mix 7. Measure results 8. Manage integrated marketing communications 129. When asked about their preferred brand of instant noodles outside a supermarket setting, customers could not remember Nissin's name, but relied on the distinct packaging to help them spot the noodles while shopping. Describe how this problem can be addressed through the objective of Nissin's marketing communications. Answer: The objective for Nissin's marketing communications objective should be to build brand awareness, i.e. fostering the consumer's ability to recognize or recall the brand within the category, in sufficient detail to make a purchase. Recognition is easier to achieve than recall—consumers asked to think of a brand of frozen entrées are more likely to recognize Stouffer's distinctive orange packages than to recall the brand. Brand recall is important outside the store; brand recognition is important inside the store. Brand awareness provides a foundation for brand equity. 130. Write a short note on "brand awareness" as an objective of marketing communications. Answer: Brand awareness refers to fostering the consumer's ability to recognize or recall the brand within the category, in sufficient detail to make a purchase. Recognition is easier to achieve than recall. Brand recall is important outside the store; brand recognition is important inside the store. Brand awareness provides a foundation for brand equity. 131. Compare and contrast the use of negative and positive appeals in advertising messages. Answer: Communicators use negative appeals such as fear, guilt, and shame to get people to do things (brush their teeth, have an annual health checkup) or stop doing things (smoking, abusing alcohol, overeating. Fear appeals work best when they are not too strong, when source credibility is high, and when the communication promises, in a believable and efficient way, to relieve the fear it arouses. Messages are most persuasive when moderately discrepant with audience beliefs. Stating only what the audience already believes at best just reinforces beliefs, and if the messages are too discrepant, audiences will counterargue and disbelieve them. Communicators also use positive emotional appeals such as humor, love, pride, and joy. Motivational or "borrowed interest" devices—such as the presence of cute babies, frisky puppies, popular music, or provocative sex appeals—are often employed to attract attention and raise involvement with an ad. These techniques are thought necessary in the tough new media environment characterized by low-involvement consumer processing and competing ad and programming clutter. Attention-getting tactics are often too effective. They may also detract from comprehension, wear out their welcome fast, and overshadow the product. 132. An ad agency has landed an account for Savola, a brand of healthy cooking oil. Describe how the ad can incorporate negative appeals in its messages effectively. Answer: Negative appeals such as fear, guilt, and shame are used by communicators to get people to do things (brush their teeth) or stop doing things (smoking. The cooking oil ad can use fear appeals to get consumers to start using its product. This can be achieved by depicting health risks associated with using cooking oils other than Savola, such as hypertension, heart attacks, etc. Guilt appeal can be used to depict a family grieving the death of someone who did not use Savola. Shame appeal could illustrate the case of a parent who cannot play catch with his kids because his fitness is compromised by not using Savola. However, the ad agency should take care to ensure that the negative appeals do not come across as too strong to the audiences, the credibility of the source in the ads is high, and the ad promises to relieve fears of health risks in a believable and efficient way. The ad is most persuasive when moderately discrepant with audience beliefs. If the ad merely says that using unhealthy oil leads to health risks, it only serves to reinforce the belief, and if the message exaggerates the health risks of not using Savola, audiences will only counterargue and disbelieve the ad. 133. Tiger Woods' endorsement deals were terminated by a host of sponsors, including Accenture, Gillette, AT&T, and General Motors. What are the reasons for these companies dropping Woods from their promotional efforts? Answer: Celebrities are likely to be effective when they are credible or personify a key product attribute. Tiger Woods' personal problems have resulted in the erosion of his credibility as a product's spokesperson. The three most important sources of a spokesperson's credibility are expertise, trustworthiness, and likability. Following revelations about his personal life and his past indiscretions, his trustworthiness (how objective and honest the source is perceived to be) was negatively affected and also his likability (the source's attractiveness. The most highly credible source would score high on all three dimensions— expertise, trustworthiness, and likability. Scoring high on only one or two dimensions would still negatively affect his credibility. Also, the principle of congruity implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience. The converse also holds true, i.e. a product's positive brand image is likely to be hit by virtue of being associated with a communicator with a negative image. 134. Name a few products for which personal influence plays a significant role in marketing communications. Answer: Personal influence carries especially great weight (1) when products are expensive, risky, or purchased infrequently, and (2) when products suggest something about the user's status or taste. On that count, life insurance, real estate, health services, automobiles, luxury items, consultation services, etc. can be expected to be significantly influenced by word-ofmouth and endorsements by credible sources. 135. Derek is working on promoting his company's Glazer brand of electronic razors. The company estimates 50 million potential users and sets a target of attracting 8 percent of the market. Derek hopes to reach 80 percent of the potential customers with an advertising message. He would be pleased if 25 percent of the prospects that were aware, tried the Glazer. According to further estimates, 40 percent of all triers will become loyal users. If the cost of exposing 1 percent of the target population to one impression is $4500 on an average, determine the necessary advertising budget, according to the objective-and-task method. Answer: Using the objective-and-task method, Derek can arrive at the marketing communications budget by following these steps: 1. The company estimates 50 million potential users and sets a target of attracting 8 percent of the market—that is, 4 million users. 2. The percentage of the market that should be reached by advertising is determined. Derek hopes to reach 80 percent (40 million prospects) with his advertising message. 3. The percentage of aware prospects that should be persuaded to try the brand is then calculated. Derek would be pleased if 25 percent of aware prospects (10 million) tried Glazers. He estimates that 40 percent of all triers, or 4 million people, will become loyal users. This is the market goal. 4. Next, the number of advertising impressions per 1 percent trial rate is estimated. Derek estimates that 40 advertising impressions (exposures) for every 1 percent of the population will bring about a 25 percent trial rate. 5. The number of gross rating points that would have to be purchased is now calculated. A gross rating point is one exposure to 1 percent of the target population. Because Derek wants to achieve 40 exposures to 80 percent of the population, he will want to buy 3,200 gross rating points. 6. Finally, the necessary advertising budget on the basis of the average cost of buying a gross rating point is estimated. To expose 1 percent of the target population to one impression costs an average of $4,500. Therefore, 3,200 gross rating points will cost $14,400,000 (= $4,500 × 3,200. in the introductory year. 136. What are the major characteristics of sales promotions as an element of the marketing communications mix? Answer: Companies use sales promotion tools—coupons, contests, premiums, and the like— to draw a stronger and quicker buyer response, including short-run effects such as highlighting product offers and boosting sagging sales. Sales promotion tools offer three distinctive benefits: 1. Ability to be attention-getting—They draw attention and may lead the consumer to the product. 2. Incentive—They incorporate some concession, inducement, or contribution that gives value to the consumer. 3. Invitation—They include a distinct invitation to engage in the transaction now. 137. What is the role of advertising as a communications tool in marketing for business markets? Answer: Although marketers rely more on sales calls in business markets, advertising still plays a significant role: 1. Advertising can provide an introduction to the company and its products. 2. If the product has new features, advertising can explain them. 3. Reminder advertising is more economical than sales calls. 4. Advertisements offering brochures and carrying the company's phone number or Web address are an effective way to generate leads for sales representatives. 4. Sales representatives can use copies of the company's ads to legitimize their company and products. 5. Advertising can remind customers how to use the product and reassure them about their purchase. 138. How do the stages of buyer readiness affect the composition of a product's marketing communications mix? Answer: Communication tools vary in cost-effectiveness at different stages of buyer readiness. Advertising and publicity play the most important roles in the awareness-building stage. Customer comprehension is primarily affected by advertising and personal selling. Customer conviction is influenced mostly by personal selling. Closing the sale is influenced mostly by personal selling and sales promotion. Reordering is also affected mostly by personal selling and sales promotion, and somewhat by reminder advertising. 139. How do the stages in a product's life cycle influence the marketing communications mix? Answer: In the introduction stage of the product life cycle, advertising, events and experiences, and publicity have the highest cost-effectiveness, followed by personal selling to gain distribution coverage and sales promotion and direct marketing to induce trial. In the growth stage, demand has its own momentum through word of mouth and interactive marketing. Advertising, events and experiences, and personal selling all become more important in the maturity stage. In the decline stage, sales promotion continues strong, other communication tools are reduced, and salespeople give the product only minimal attention. 140. Karl Lipton is marketing communications coordinator for a major electronics manufacturer. He is assigned with charting out a communications strategy for a new range of mobile phones developed by his company. How will Karl's communications strategy look like over the course of the mobile phones' life cycle? Answer: Mobile phones have relatively short life cycles. In the introduction stage of the phones' life cycle, advertising, events and experiences, and publicity have the highest costeffectiveness. In-store personal selling helps improve distribution coverage, while sales promotions such as discounted accessories, freebies etc., help induce trial. In the growth stage, demand has its own momentum through word of mouth and interactive marketing. Web sites are effective tools during the growth stage. As the phones reach the maturity stage, advertising, promotional events and experiences, and personal selling again become more important. As the phones enter the decline stage of their life cycle, sales promotion takes over as the most important tool in the marketing communications mix, even as other communication tools are reduced, and salespeople give the phones only minimal attention. 141. Briefly describe the process of measuring the results of marketing communications. Answer: Senior managers want to know the outcomes and revenues resulting from their communications investments. Too often, however, their communications directors supply only inputs and expenses: press clipping counts, numbers of ads placed, media costs. In fairness, communications directors try to translate inputs into intermediate outputs such as reach and frequency (the percentage of target market exposed to a communication and the number of exposures), recall and recognition scores, persuasion changes, and cost-perthousand calculations. Ultimately, behavior-change measures capture the real payoff. After implementing the communications plan, the communications director must measure its impact. Members of the target audience are asked whether they recognize or recall the message, how many times they saw it, what points they recall, how they felt about the message, and what are their previous and current attitudes toward the product and the company. The communicator should also collect behavioral measures of audience response, such as how many people bought the product, liked it, and talked to others about it. 142. What is integrated marketing communications? What is its significance in the current marketing environment? Answer: Many companies still rely on only one or two communication tools. This practice persists in spite of the fragmenting of mass markets into a multitude of minimarkets, each requiring its own approach; the proliferation of new types of media; and the growing sophistication of consumers. The wide range of communication tools, messages, and audiences makes it imperative that companies move toward integrated marketing communications. Companies must adopt a "360-degree view" of consumers to fully understand all the different ways that communications can affect consumer behavior in their daily lives. The American Marketing Association defines integrated marketing communications (IMC) as "a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time." This planning process evaluates the strategic roles of a variety of communications disciplines—for example, general advertising, direct response, sales promotion, and public relations—and skillfully combines these disciplines to provide clarity, consistency, and maximum impact through the seamless integration of messages. 143. How is coordination of media achieved through integrated marketing communications? Answer: Media coordination can occur across and within media types, but marketers should combine personal and nonpersonal communications channels through multiple-vehicle, multiple-stage campaigns to achieve maximum impact and increase message reach and impact. Promotions can be more effective when combined with advertising, for example. The awareness and attitudes created by advertising campaigns can increase the success of more direct sales pitches. Advertising can convey the positioning of a brand and benefit from online display advertising or search engine marketing that offers a stronger call to action. Many companies are coordinating their online and offline communications activities. Web addresses in ads (especially print ads) and on packages allow people to more fully explore a company's products, find store locations, and get more product or service information. Even if consumers don't order online, marketers can use Web sites in ways that drive them into stores to buy. Test Bank for Marketing Management Philip T Kotler, Kevin Lane Keller 9780132102926, 9780273753360, 9781292092621, 9780133856460, 9789332587403, 9780136009986