Final Exam Reviewing Session

Question 1

Good or great ads work on what two levels?

Answer 1

• Satisfy the customer’s objectives by engaging them & delivering a relevant message (clearly and easily, based on your message, your offer needs to be able to help their needs)
• Achieve the Sponsor’s Objectives

adv campaigns is used to boost the sales, we want to get a return on investment

Question 2

Great advertising is a dual process, in what way?

Answer 2

Advertising objectives need to match the consumer objectives. For an ad to be really performant it should address all of these objectives for you and the consumers:

Attention/awareness (raise curiosity) <—> satisfy curiosity
Interest <—> identify personal needs ( Parallel, is there a connection between what the brand needs and what I personally need)

Knowledge <—> gather relevant information (good ad provides some knowledge of the brand)

Attitude change <—> support risk associated with attitude change

Behavioral change/trial <—> Enhance need reduction (reduce the tension of need and satisfy customers needs)

Repurchase <—> Reinforce trial and need reduction

Question 3

What does a brand consist of?

Answer 3

Brand:
Brand name
Brand mark (logo)
Trademark
Brand equity (is the differential effect that knowing the brand name has or customer response to the product and its marketing. A brand is something that generate more revenue. Part of the price is associated with the brand image. A certain percentage of the price is associated with the brand equity. Tropicana juice.. Defined as the perception of consumers and the feeling they have about a product

Question 4

What are the elements we need to consider for brand image?

Answer 4

• physical dimension
• psychological dimension
• promise (key element of the copy strategy)
• product personality (marketing mix)

Question 5

Why are people willing to pay more for a branded product than the same product without the brand?

Answer 5

Percieved value and trust.
Status
Emotional connection and loyalty
Consistency and predictability

Question 6

How does branding assists consumer’s memory process?

Answer 6

Identifying the product,
* Positioning it relative to other products,
* Making it more valued because of the respect
that has been created for the brand name (brand
equity).

Question 7

What are the tools used to transform products, lock brands into memory, and build brand equity?

Answer 7

• Distinctive names,
• Slogans,
• Graphics,
• Characters

Question 8

What is the CPM?

Answer 8

The cost per thousand is the cost of the advertising to reach out to a thousand people. It is calculated as followed:

CPM = Cost of page or fractional page unit * 1000 / Target audience readers

Always the lowest one that is the best.

Question 9

How do you calculate the GRP?

Answer 9

Gross rating point? (GRP, %) = Frequency * Reach

Always the highest one that is the best.

Question 10

What are the different advertising budgets?

Answer 10

• All-you-can-afford budget - allocates whatever is left of your budget to advertising. Not very smart or thoughtful
• Historical methods - common budgeting method, based on last years budgeting + percentage increase cause of inflation.
• Percentage of sales method - compare the total sales to the total advertising budget during a previous time to compute a percentage
• Competitive methods - share of market and share of voice, used a lot in luxury sector
• Task-objective method (bottom up) - most common. Divides the tasks and objectives and allocate cost for each task