Chapter 14. Engage and Communicate Customer Value (From FCB Grid)

Question 1

Describe and illustrate the Foote, Cone, and Belding Grid (FCB Grid)

Answer 1

The FCB Grid illustrates the consumer decision process. It uses the idea of “Think, “Feel,” and “Do” as the steps in the process. The graph runs High/Low involvement across the Y-Axis and Rational/Emotional across the X-Axis.

Question 2

What is the Marketing Communications Mix?

Answer 2

Advertising
Sales Promotion
Public Relations
Personal Selling
Direct and Digital Marketing

Question 3

Define Advertising

Answer 3

Any paid form of non-personal presentation and promotion of ideas, goods, or services by a sponsor.

Question 4

What are the Pros of Advertising?

Answer 4

Control over the message and receiver
Signal’s the advertiser’s size, popularity, and success
Useful for long-term image or short-term sales

Question 5

What are the Cons of Advertising?

Answer 5

One-way communication
Expensive
Company may have low credibility or be ignored

Question 6

Define Sales Promotion

Answer 6

short-term sales to encourage purchasing (ex. coupons, contests, sweepstakes)

Question 7

What are the Pros of Sales Promotion?

Answer 7

Encourages purchase
Incentives for retail to support the product
Appeal to price-sensitive consumers

Question 8

What are the Cons of Sales Promotion?

Answer 8

Short-term emphasis (sales vs. loyalty)
Competing promotions create noise

Question 9

Define Public Relations

Answer 9

Obtaining favorable publicity, building corporate image, and handling unfavorable rumors.

Question 10

What are the Pros of Public Relations?

Answer 10

Low to no-cost
High credibility
Appeals to consumers who avoid sales-people

Question 11

What are the Cons of Public Relations?

Answer 11

Lack of control of eventual message
Difficult to track results

Question 12

Define Personal Selling

Answer 12

Personal presentation by the firm’s sale force (relationship building and sales).

Question 13

What are the Pros of Personal Selling?

Answer 13

Direct connection with consumer
Immediate feedback

Question 14

What are the Cons of Personal Selling?

Answer 14

High cost per contact
Less flexibility to adapt to communication changes
Difficult to ensure consistent message
Credibility depends on company image

Question 15

Define Direct and Digital Marketing

Answer 15

Engaging directly with carefully targeted individual consumers and customer communities to obtain an immediate response and build relationships.

Question 16

What are the two Promotion Mix strategies?

Answer 16

Push Strategy and Pull Strategy

Question 17

What are the methods for setting a Promotional Budget?

Answer 17

1. Affordable method
2. Percentage of Sales (cause-effect issues)
3. Competitive Parity
4. Objective-and-Task method (short-term)

Question 18

What are the Buyer-Readiness stages?

Answer 18

Awareness, Knowledge, Liking, Preference, Conviction, and Purchase