Chapter 17

Question 1

Explain the communication process

Answer 1

1. Sender (party sending the message)
2. Encoding (putting thoughts into symbolic form- language, imagery)
3. Message (set of symbols the sender transmits on a particular medium)
4. Decoding (receiver assigns meaning to the symbols)
5. Receiver (party who receives the message)
   ***the danger zones are encoding and decoding

For a message to be effective, the sender’s encoding must match the receiver’s decoding
Markets should: understand the consumers experience and use words/symbols that are familiar to the receiver
Speak their language
There is always noise occurring in the environment

Question 2

What is the AIDA model

Answer 2

Awareness: knowing a brand exists
Interest: likes the idea enough to want to learn more
Desire: likes and wants the product
Action: purchases, changes of behavior, sign-ups, etc.

**want to formulate an attitude towards the product
** think of the Ariana Grande song (I see it, I like it, I want it, I got it)

Question 3

What is the lagged effect

Answer 3

• Advertising that often does not have an immediate impact
• Multiple exposures are often necessary
• Difficult to determine which exposure led to the purchase

Question 4

What is reach and relevance when looking at the usefulness of ads

Answer 4

Reach is the measure of percentage of people in a given target market who are exposed to the ad in a given period of time

Relevance is used to determine the usefulness of an ad to a consumer

Question 5

How do marketers calculate return on investment

Answer 5

Profit generated by ad - cost of ad / cost of ad

Question 6

What is gross rating points (GRP)

Answer 6

Measure used for various media advertising—print, radio, or television; GRP = Reach × Frequency.

Question 7

What are the 6 elements that can be used in an integrated marketing communications program

Answer 7

1. advertising
2. public relations (PR)
3. sales promotion
4. personal selling
5. direct marketing
6. online marketing

Question 8

Explain advertising in the promotions mix

Answer 8

Any paid form of nonpersonal presentation and promotion of ideas, or services by an identified sponsor
- Media: broadcast, print, internet, outdoor
- Can reach many geographically dispersed buyers
- Low cost per exposure
- Enables repeat messaging
- Effective at creating awareness and generating interest

Question 9

Explain public relations in the promotions mix

Answer 9

Obtaining favorable publicly, building a good corporate image and responding to or preventing unfavorable rumors, stories, and events
- Ways to build good relations
- Press releases (news, stories, features)
- Sponsors
- Special events
- Very believable from of promotion (more credible because not paid for advertisement)

Question 10

Explain sales promotion in the promotions mix

Answer 10

Incentive to encourage sales; can have short-term or long-term objectives

Types: discounts, coupons, displays, demonstrations, contests, loyalty programs, etc

Question 11

Explain personal selling in the promotions mix

Answer 11

Personal presentations by the firm’s sales force for the purpose of making sales and building customer relationships
- Most effective method for complex products or at certain stages of the buying process
- Building buyers preferences
- Encouraging action
- Developing customer relationships
- Expensive

Question 12

Explain direct marketing in the promotions mix

Answer 12

Contacting carefully targeted individual consumers to obtain an immediate response and/or build customer relationships
- Direct mail (letters, catalogs)
- Telemarketing
- Email: mobile marketing
- Characteristics: non-public, customizable, interactive

Question 13

Explain online marketing in the promotions mix

Answer 13

Promotions through electronic media vehicles
- Websites, blogs, social media