04 Advertising and PR

Question 1

(Elements of the Promotional Mix (10))

Answer 1

1) Sales Promotion
2) Advertising
3) Product Placement
4) Direct Marketing
5) PR
6) Event Sponsorships
7) Publicity
8) Personal Selling
9) Point of Purchase
10) Digital

Question 2

Stages of the basic communication model (6)

Answer 2

1) Sender sends message (ad agency)
2) Encode (convert idea to words and pictures)
3) Choose message channel (in-store display, tv, radio)
4) Decode (interpret message)
5) Arrives at reciever (customer or consumer)
6) Reciever gives feedback to sender
!) Interference/Noise: Friends, other ads, leave room, switch channel…

Question 3

Role of communication in marketing/stages of marketing communication to consumers (8)

Answer 3

1) Unawareness
2) Awareness
3) Knowledge
4) Liking or disliking
5) Develop a preference
6) Conviction
7) Purchase
8) Repeat purchase

Question 4

Major communication tools (5)

Answer 4

1) Advertising
2) Personal selling
3) Sales promotion
4) Public relations
5) Direct and digital marketing

Question 5

Communication tool: Advertising - description (6)

Answer 5

• reaches masses of buyers at low costs per exposure
• builds long-term image for a product
• can trigger quick sales
• has a public nature and is viewed as legitimate
• very expressive
• impersonal and lacks the direct persuasiveness of salespeople

Question 6

Communication tool: Personal selling - description (4)

Answer 6

• personal interaction between two or more people
• allows all kinds of customer relationships to spring up
• buyer feels a greater need to listen and respond
• most expensive promotion tool

Question 7

Communication tool: Sales promotion - description (6)

Answer 7

• wide assortment of tools with unique qualities
• attracts consumer attention
• offers strong incentives to purchase
• used to dramatize product offers and boost sales
• invites and rewards quick response
• short-lived-effects, less effective than advertising or personal selling in building long-term relationships

Question 8

Communication tool: Public relations - description (4)

Answer 8

• very believable to readers
• can dramatize a company or product
• reaches many prospects
• effective and economical when well thought out

Question 9

Communication tool: direct and digital marketing - description (2)

Answer 9

• more targeted and interactive

- immediate and personalized

Question 10

Two communication strategies

Answer 10

Push strategy: Manufacturer ->(flow of demand stimulation, flow of promotion, mainly personal selling)-> Wholesaler -> Retailer -> Consumer

Pull strategy: Manufacturer Consumer

Question 11

Advertising or communication decisions/ The 5 Ms of Advertising (5)

Answer 11

Objectives setting -> budget decisions -> Message decisions and media decisions -> advertising evaluation

1) Mission (Set sales goals and advertising objectives)
2) Money (Do we have the funds, market share and consumer base?)
3) Message (What do we want to say with our marketing?)
4) Media (What time, what medium, frequency, location?)
5) Measurement (What was the impact?)

Question 12

Advertising Strategy Decisions - Message&Media / Objectives of a marketing message (4)

Answer 12

• inform/educate/persuade consumers
• targeted at AIDA (awareness, interest, demand, action)
• break through the clutter
• merge message with entertainment

Question 13

Approaches of creative messages/appeals

Answer 13

• rational approach
• emotional approach
• humor
• sexual
• fear …

Question 14

Public relations Objectives

Marketers -> Press influence -> Consumers

Answer 14

• promote goodwill
• promote a product/service
• for internal communications
• counteract negative publicity
• lobby

Question 15

Good examples of PR (3)

Answer 15

• cheerios: world without dieting
• lego: sustainable non-plastic bricks
• starbucks: college degree

Question 16

Bad examples of PR (4)

Answer 16

• epipen prices raised considerably
• samsung: exploding battery
• nike: tennis dress
• VW: emission cheating