Chapter 14 - Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Multiple Choice Questions Which of the following is NOT true about integrated marketing communications (IMC)? A The goal is to make sure all advertising campaigns send the same message B Enhances the value story by offering a clear and consistent message C It has three components: the consumer, the channels, and the evaluation of the results D Unifying the company messages is in heart of IMC E Represents the promotion dimension of marketing mix IMC goes beyond just advertising It deals with all communication disciplines such as advertising, sales promotion, personal selling, public relationship etc Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-02 The Communication Process The firm from which an integrated marketing communications (IMC) message originates is called a: A receiver B decoder C transmitter D creator E sender In the context of the communication process, the sender refers to a firm from which an integrated marketing communications (IMC) message originates; the sender must be clearly identified to the intended audience 14-1 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-02 The Communication Process Which of the following refers to an agent or intermediary with which the sender works to develop the marketing communication? A Receiver B Decoder C Transmitter D Creator E Sender In the context of the communication process, the transmitter refers to an agent or intermediary with which the sender works to develop the marketing communications; for example, a firm's creative department or an advertising agency Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-02 The Communication Process The person who reads, hears, or sees and processes the information contained in the IMC message or advertisement is referred to as the: A receiver B decoder C transmitter D creator E sender In the context of the communication process, the receiver is a person who reads, hears, or sees and processes the information contained in a message or advertisement 14-2 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-02 The Communication Process The process of converting a sender's ideas into a message, which could be verbal, visual, or both is called: A noise B encoding C decoding D a communication channel E a feedback loop Encoding means converting the sender's ideas into a message, which could be verbal, visual, or both Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-02 The Communication Process A medium—print, broadcast, the Internet—that carries messages is called: A noise B frequency C an impression D a communication channel E a feedback loop A communication channel is a medium—print, broadcast, the Internet—that carries a message 14-3 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-02 The Communication Process The process by which the receiver interprets the sender's message is called: A noise B frequency C decoding D a communication channel E a feedback loop Decoding refers to the process by which the receiver interprets the sender's message Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-02 The Communication Process Any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium is called: A noise B frequency C decoding D a communication channel E a feedback loop Noise is any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium, and it poses a problem for all communication channels 14-4 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-02 The Communication Process Which of the following allows a receiver to communicate with the sender and thereby informs the sender whether the message was received and interpreted properly? A Noise B Encoding C Decoding D The communication channel E The feedback loop The feedback loop allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly Feedback can take many forms: a customer's purchase of the item, a complaint or compliment, the redemption of a coupon or rebate, and so forth Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-02 The Communication Process 10 Which of the following is true about communication with customers? A All receivers decode message the same B There is no need for selecting the target market The message should be clear and consistent for every single customer in the market C Customers' knowledge and attitudes toward the brand will impact their message decoding D Companies should send the exact same message through different medium and to different customer groups E Billboard advertising is not efficient as people tend to misinterpret the message Consumer perceive the messages they receive differently depending on their level of knowledge and attitudes toward the brand 14-5 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-03 How Consumers Perceive Communication 11 Which of the following is a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future? A Tracking B Pretesting C Advertising D Decoding E Feedback loop Advertising is a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-14 Advertising 12 A two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision is called: A frequency B media buy C impression D public relations E personal selling Personal selling is a two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision Personal selling can take place in various settings: face to face, video teleconferencing, on the telephone, or over the Internet 14-6 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-15 Personal Selling 13 A clothing line chooses a sports star to endorse its products It pays a fee to a broadcasting channel to air the endorsement The aim of airing the endorsement is to persuade customers to buy its products This is an example of: A weblog B cause-related marketing C advertising D event sponsorship E personal selling Advertising is a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-14 Advertising 14 A company selling beauty products does not sell its goods in any retail outlets Instead it relies on salespeople to sell door to door Salespeople simplify the buying process by providing information and services that save customers' time and effort This is an example of: A a catalogue B direct mail C DRTV D a kiosk E personal selling Personal selling is the two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision Personal selling can take place in various settings: face to face, video teleconferencing, on the telephone, or over the Internet 14-7 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-15 Personal Selling 15 A company that manufactures computers wants to project its products' advantages It uses broadcasting media to reach customers It pays a fee to a broadcasting channel to feature its product The aim of the company is to persuade customers to buy its computers Which of the following is being exemplified in this scenario? A Event sponsorship B Weblog C Advertising D Cause-related marketing E Personal selling Advertising is a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-14 Advertising 16 A company manufactures laundry detergent The company relies on door-to-door salespeople who provide information and services that save the customers time and effort This is an example of: A a weblog B direct mail C DRTV D a kiosk E personal selling Personal selling is the two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision Personal selling can take place in various settings: face to face, video teleconferencing, on the telephone, or over the Internet 14-8 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-15 Personal Selling 17 Mary starts a beauty salon She conducts a door-to-door survey to gauge the number of people who use beauty care products She compiles a list and then uses the Internet to send messages to all these people to let them know about the services offered at her beauty salon This is an example of: A a catalogue B direct mail C DRTV D a kiosk E personal selling Direct mail/email is a targeted form of communication distributed to a prospective customer's mailbox or inbox Mailing lists are a critical component of direct mail Choose the wrong list and your promotion will be perceived as "junk mail" since the information and offer will not be targeted to the appropriate audience Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-17 Direct Marketing 18 Which of the following refers to a targeted form of communication distributed to a prospective customer's mailbox or inbox? A Cause-related marketing B Direct mail C DRTV D Kiosks E Personal selling Direct mail/email is a targeted form of communication distributed to a prospective customer's mailbox or inbox Mailing lists are a critical component of direct mail Choose the wrong list and your promotion will be perceived as "junk mail" since the information and offer will not be targeted to the appropriate audience 14-9 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-17 Direct Marketing 19 Jeff started a pet care centre First, he compiled a list of people in his neighbourhood who had pets, and then he used the Internet to send messages to all these people to let them know of the services he was offering This is an example of: A cause-related marketing B direct mail C DRTV D a kiosk E media buy Direct mail/email is a targeted form of communication distributed to a prospective customer's mailbox or inbox Mailing lists are a critical component of direct mail Choose the wrong list and your promotion will be perceived as "junk mail" since the information and offer will not be targeted to the appropriate audience Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-17 Direct Marketing 20 A company manufactures and sells high-end furniture It compiles a list of all the products it offers and then mails the list to all its customers Customers can select what they want and then order the product This is an example of: A a catalogue B media buy C DRTV D a kiosk E personal selling Many companies use catalogues to strategically build their business Typically, catalogues have been mailed, which can become an issue as a company grows Today, most companies with physical catalogues, such as IKEA and Business Depot, also offer online catalogues 14-10 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-16 Sales Promotion 106 For direct mail to be effective, a good offer is needed to compel consumers to take immediate action TRUE For direct mail to be effective, a good contact list is a must and a good offer is also needed to compel consumers to take immediate action Good offers must be relevant to both consumers and to the product and are important whether a company is promoting products to consumers or businesses Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-17 Direct Marketing 107 Catalogues are particularly important for companies with no bricks-and-mortar locations TRUE Catalogues are particularly important for companies with no bricks-and-mortar locations Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-17 Direct Marketing 108 A firm's objectives or goals serve as a yardstick against which success or failure is measured TRUE Objectives, or goals, are crucial since they will later serve as the yardstick against which success or failure is measured These objectives can be short term, such as generating inquiries, increasing awareness, and prompting trial 14-54 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-02 List the steps in planning an integrated marketing communication campaign Topic: 14-06 Set Objectives 109 Pull strategy campaigns attempt to motivate the seller to highlight the company's product, rather than the products of competitors, and thereby push the product onto consumers FALSE Push strategies are designed to increase demand by focusing on wholesalers, distributors, or salespeople, who push the product to consumers via distribution channels These campaigns attempt to motivate the seller to highlight the product, rather than the products of competitors, and thereby push the product onto consumers Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-02 List the steps in planning an integrated marketing communication campaign Topic: 14-06 Set Objectives 110 Advertising expenditures vary over the course of the product life cycle, with advertising expenditures being the lowest during the introduction stage of the product FALSE Advertising expenditures vary over the course of the product life cycle (PLC), with considerably higher levels of spending during the introduction stage 14-55 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-02 List the steps in planning an integrated marketing communication campaign Topic: 14-07 Determine Budget 111 Moral appeals are considered a separate category that stands apart from the rational and emotional categories of advertising appeals FALSE Marketers, especially those who work in nonprofit organizations, often use moral appeals Since moral appeals can be rational or emotional, they are not addressed as a separate category Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-03 Describe what appeals advertisers use to get customers' attention Topic: 14-08 Convey Message 112 Pathos appeal helps consumers make purchase decisions by offering factual information and strong arguments built around relevant issues FALSE A rational appeal helps consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage consumers to evaluate the brand favourably on the basis of the key benefits it provides Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-03 Describe what appeals advertisers use to get customers' attention Topic: 14-08 Convey Message 113 Media buy is generally the largest expense in the advertising budget TRUE Media buy refers to the purchase of airtime or print pages It is generally the largest expense in the advertising budget 14-56 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-04 Identify how firms determine which media to use Topic: 14-09 Evaluate and Select Media 114 Mass media channels offer advertisers the opportunity to change and even personalize their messages FALSE In some cases, niche media offer advertisers the opportunity to change and even personalize their messages, which is generally not an option with mass media Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-04 Identify how firms determine which media to use Topic: 14-09 Evaluate and Select Media 115 Measuring sales impact is challenging because of the many influences other than advertising on consumers' choices, purchase behaviour, and attitudes TRUE Measuring sales impact can be especially challenging because of the many influences other than advertising on consumers' choices, purchase behaviour, and attitudes These influences include the level of competitors' advertising, economic conditions in the target market, sociocultural changes, and even the weather, all of which can influence consumer purchasing behaviour 14-57 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 14-05 Summarize how firms measure integrated marketing communications success Topic: 14-11 Assess Impact Using Marketing Metrics 116 Gross rating points measure can be used for various media advertising such as print, radio, or television TRUE Marketing communications managers usually state their media objectives in terms of gross rating points (GRP), which represents reach multiplied by frequency (GRP = reach  frequency) This measure can be used for various media advertising—print, radio, or television Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 14-05 Summarize how firms measure integrated marketing communications success Topic: 14-11 Assess Impact Using Marketing Metrics 117 Company's weblog must be updated periodically TRUE By definition, weblog is a page that contains periodic posts Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-19 Digital Media 14-58 Chapter 14 - Integrated Marketing Communications Short Answer Questions 118 Explain the three components that constitute an integrated marketing communications (IMC) strategy There are three components in any integrated marketing communications (IMC) strategy: the consumer or target market, the channels or vehicles through which the message is communicated, and the evaluation of the results of the communication The first component focuses on consumers, examining the communication process: how consumers receive communications, whether via media or other methods, and how the delivery of that communication affects a message's form and content The second component identifies the steps involved in planning successful campaigns, from identifying a target audience to creating an actual ad and assessing its performance It also considers how the level of complexity in IMC strategies leads marketers to design new ways to measure the results of IMC campaigns The last component examines the six distinct tools of IMC—advertising, personal selling, sales promotion, direct marketing, public relations, and digital media—and how each is used in an overall IMC strategy Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-01 Outline the process that firms use to communicate with consumers Topic: 14-01 Communicating with Consumers 119 Explain the concept of sales promotions Provide examples to support your answer Sales promotions are special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and pointof-purchase displays While some sales promotions are offline (e.g., printed coupons or contest entries), others are online (e.g., e-coupons downloaded to a smartphone.) Marketers typically design these incentives for use in conjunction with other advertising or personal selling programs Many sales promotions, such as free samples or point-of-purchase displays, are designed to build short-term sales, though others, such as contests and sweepstakes, have become integral components of firms' CRM programs as a means to build customer loyalty 14-59 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-16 Sales Promotion 120 Explain the benefits that direct marketing offers to sellers Direct marketing offers benefits to both buyers and sellers Companies that use direct marketing campaigns appreciate the ability to sell to a much wider target audience than could be reached with traditional marketing channels In comparison to personal selling or mass media advertising, the cost of reaching consumers is much lower with direct marketing One of the defining characteristics of direct marketing is its measurability—campaigns can be closely monitored to track results Measurability means marketers know who responds to their campaigns, allowing them to build rich databases that can be used to cross-sell, tailor offers, and create specific promotions geared to individual customers in future campaigns The increased use of customer databases has enabled marketers to identify and track consumers over time and across purchase situations, which has contributed to the rapid growth of direct marketing Marketers have been able to build these databases thanks to consumers' increased use of credit and debit cards, store-specific credit and loyalty cards, and online shopping, all of which require the buyer to give the seller personal information that becomes part of its database Because firms understand customers' purchases better when they possess such information, they can more easily focus their direct marketing efforts appropriately 14-60 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-17 Direct Marketing 121 Explain the concept of public relations Discuss two forms of public relations and provide one example for each Public relations (PR) is an organizational function that manages a firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavourable stories or events, and maintaining positive relationships with the media Like advertising, this tactic is relatively passive in that customers not have to take any action to receive it However, PR efforts span both offline and online media PR activities support the other promotional efforts by the firm by generating "free" media attention and general goodwill Two types of PR could be cause-related marketing and event sponsorship Student Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-18 Public Relations 122 Explain how digital media tools have affected marketers' communications with their customers Digital media tools range from simple website content to far more interactive features such as corporate blogs, online games, text messaging, social media, and mobile apps Marketers are using them more and more often for the following reasons, among others: they can be targeted to specific customer segments, their impact can be easily and quickly measured in real time, modifications can be quickly made to increase their effectiveness, and customers can be engaged to forward the message to their social networks Firms are increasing their emphasis on communicating with customers through their websites They use them to build their brand image and educate customers about their products or services and where they can be purchased Retailers and some manufacturers sell merchandise directly to consumers over the Internet A well-received blog can communicate trends, promote special events, create positive word-of-mouth, connect customers by forming a community, increase sales, improve customer satisfaction because the company can respond directly to customers' comments, and develop a long-term relationship with the company 14-61 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-19 Digital Media 123 Explain the issues that marketers have to consider while selecting various budgeting methods for marketing communications When selecting the various budgeting methods for marketing communications, firms must first consider the role that advertising plays in their attempt to meet their overall promotional objectives Second, advertising expenditures vary over the course of the product life cycle, with considerably higher levels of spending during the introduction stage Third, the nature of the market and the product influence the size of advertising budgets For example, advertising for the Scion was less than 14 percent of the total promotional budget because Toyota used so many kinds of nontraditional media to get the attention of its young target customers For other products or services, the advertising portion of the total promotional budget may be as high as 95 percent It all depends on the objectives of the overall IMC campaign The nature of the market also determines the amount of money spent on advertising For instance, less money is spent on advertising in B2B marketing contexts than in B2C markets Personal selling likely is more important in B2B markets Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-02 List the steps in planning an integrated marketing communication campaign Topic: 14-07 Determine Budget 124 Explain the concept of unique selling proposition Provide one example A common strategy that helps to differentiate a product is by establishing its unique benefits This distinction forms the basis for the unique selling proposition (USP), which is often the common theme or slogan in an advertising campaign A good USP communicates the unique attributes of the product and thereby becomes a snapshot of the entire campaign Some of the most famous USPs include Ford, "Built Tough"; Red Bull, "Gives You Wings"; and Nike, "Just Do It." The selling proposition communicated by the advertising must be not only unique to the brand, but also meaningful to the consumer; it furthermore must be sustainable over time, even with repetition 14-62 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-03 Describe what appeals advertisers use to get customers' attention Topic: 14-08 Convey Message 125 Explain the different types of advertising schedules used by companies for the advertisement of their products An advertising schedule specifies the timing and duration of advertising There are three types of schedules: • A continuous advertising schedule runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive or reminder advertising For example, P&G advertises its Tide brand of laundry detergent continuously • A flighting advertising schedule refers to one implemented in spurts, with periods of heavy advertising followed by periods of no advertising This pattern generally functions for products whose demand fluctuates, such as tennis racquets, which manufacturers may advertise heavily in the months leading up to and during the summer • A pulsing advertising schedule combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods For example, furniture retailer IKEA advertises throughout the year but boosts its advertising expenditures to promote back-to-school in August Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-04 Identify how firms determine which media to use Topic: 14-09 Evaluate and Select Media 126 Explain the key components of print advertising Print advertising has several key components: • The headline or large type designed to draw attention and be read first • The body copy, which represents the main text portion of the ad • The background for the ad, usually a single colour • The foreground, which refers to everything that appears on top of the background • The branding, which identifies the sponsor of the ad 14-63 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-04 Identify how firms determine which media to use Topic: 14-14 Advertising 127 Explain the concept of gross rating points Marketing communications managers usually state their media objectives in terms of gross rating points (GRP), which represents reach multiplied by frequency (GRP = reach  frequency) This measure can be used for various media advertising—print, radio, or television GRP can be measured for print, radio, or television but, when comparing the calculations, they must refer to the same medium Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 14-05 Summarize how firms measure integrated marketing communications success Topic: 14-09 Evaluate and Select Media 128 If Bell Canada run 12 TV ads during the CFL Final which has a rating of 8.8, what would be the gross rating points? GRP = Reach x Frequency GRP = 8.8 x 12 = 105.60 14-64 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14-05 Summarize how firms measure integrated marketing communications success Topic: 14-09 Evaluate and Select Media 129 You have opened a new gym How would you use direct marketing to attract target customers to it? Student answers will vary The component of IMC that has received the greatest increase in aggregate spending recently is direct marketing, or marketing that communicates directly with target customers to generate a response or transaction Direct marketing contains a variety of traditional and new forms of marketing communication initiatives, including offline forms such as direct mail, direct response TV commercials (infomercials), catalogues, and kiosks, as well as online technologies such as email, podcasts, and cellphones Digital technologies have had a profound effect on direct marketing initiatives Email, for instance, can be directed to specific consumers to inform them about new merchandise, special promotions, confirm receipt of an order, and indicate when an order has been shipped All these initiatives address the customer in very different ways and could be used to raise awareness of the new gym 14-65 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-17 Direct Marketing 130 Your company deals in sports goods How would you use cause-related marketing and event sponsorship to boost the image of your company in the market? Student answers will vary However, they must include the following concepts • Cause-related marketing: Cause-related marketing refers to commercial activity in which businesses and charities form a partnership to market an image, product, or service for their mutual benefit It is a type of promotional campaign • Event sponsorship: Event sponsorship occurs when corporations support various activities (financially or otherwise), usually in the cultural or sports and entertainment sectors Both cause-related marketing and event sponsorship are public relations (PR) that manages a firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavourable stories or events, and maintaining positive relationships with the media Like advertising, this tactic is relatively passive in that customers not have to take any action to receive it While it can be very difficult to convince the media to write about a company or its products and services, this media attention can be crucial to a company's success 14-66 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14-06 Explain the six tools of integrated marketing communications campaigns Topic: 14-18 Public Relations 131 Your company specializes in guitars You have hired a creative agency to make an ad for your product What would be your advertising objectives? How would you employ the pull strategy to drive the sales of your guitars in the music market? Student answers will vary All marketing communications aim to achieve certain objectives: to inform, persuade, and remind customers Communication objectives also need to consider focus—for example, does the company hope to stimulate demand for a new product or service or to increase awareness for the company in general? When setting advertising objectives, the overarching strategy used is one of push versus pull Generally, when advertising to consumers, the objective is a pull strategy in which the goal is to get consumers to pull the product into the supply chain by demanding retailers carry it In the context of the given scenario, it is important for the guitar manufacturing company to effectively advertise its products by generating greater awareness of its brand among the consumers Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14-02 List the steps in planning an integrated marketing communication campaign Topic: 14-14 Advertising 132 Your company specializes in guitars You have hired a creative agency to make an ad for your product How would you use the competitive parity method to plan the marketing communications budget? What are the limitations of this method? The competitive parity method is a method of determining a communications budget in which the firm's share of the communication expenses is in line with its market share Adopting the competitive parity method requires the guitar manufacturing company to allocate its communication budget based on its market share This method has certain limitations First, it prevents firms from exploiting the unique opportunities or problems they confront in a market Second, if all competitors use this method to set communication budgets, their market shares will stay approximately the same over time 14-67 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14-02 List the steps in planning an integrated marketing communication campaign Topic: 14-07 Determine Budget 133 You are the marketing manager of a company that deals in hockey equipment The company has launched a new series of hockey sticks in the market It has also asked a few national-level hockey players to endorse the product The endorsement would be aired on national television in the form of an ad How would you assess the effectiveness of the advertising campaign? Student answers will vary However, they must include the following The effectiveness of an advertising campaign must be assessed before, during, and after the campaign has run Pretesting refers to assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to Tracking includes monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium Post-testing is the evaluation of the campaign's impact after it has been implemented At this last stage, advertisers assess the sales and/or communication impact of the advertisement or campaign Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14-05 Summarize how firms measure integrated marketing communications success Topic: 14-11 Assess Impact Using Marketing Metrics 14-68 ... campaign 14- 14 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14- 06 Explain the six tools of integrated marketing. .. Internet 14- 7 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 14- 06 Explain the six tools of integrated marketing. .. Internet 14- 8 Chapter 14 - Integrated Marketing Communications Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 14- 06 Explain the six tools of integrated marketing