Market Research, Marketing Communications, Online Marketing and Brand Management

Question 1

Define the marketing research process.

Answer 1

1) Problem definition

Problem-identification research =Research undertaken to help identify problems which are not necessarily apparent on the surface
e.g. market potential, market share, image, market characteristics, sales analysis, forecasting, trends research
looking at new product, new market, new segment, emerging needs

Problem-solving research = Research undertaken to help solve specific marketing problems
e.g. segmentation, product, pricing, promotion, and distribution research (already have target segment)

2) Decision alternatives
3) Research objectives
4) Developing the research plan

Decision that need to be made:
* Collect own data (primary) or use data that already exists (secondary)
* Choose a research approach (observational, focus group, survey, behavioural data, or experimental to capture cause-and-effect relationships)
* Choose research instruments (questionnaire, qualitative measures, or technological devices)
* Sampling plan (Sampling unit: who; sample size: how many; sampling procedure: how) and contact methods (by mail, phone, in person, or online)

5) Collecting the information
6) Analysing the information
7) Presenting the findings to management
8) Decision making

Question 2

Differentiate qualitative and quantitative marketing research.

Answer 2

Qualitative: using exploratory research to discover ideas
goal: explore, identify, define
observing and interpreting
unstructured data collection
subjective restuls
small samples in natural settings, non-probability sampling

Quantitative: using descriptive or causal research design to test hypotheses or specific research question
goal: to describe and quantify
measure and test
structured data collection
objective results
larger samples to generalise results, probability sampling

Question 3

When would a researcher use qualitative vs. quantitative research?

Answer 3

qualitative:
subject matter is unfamiliar
exploratory research when relevant concepts are unknown or definitions unclear
flexible approach for discovery of unexpected
in-depth investigation
study issues, cases or events in detail
goal: uncover trends or proving insights

quantitative: subject matter is clearly defined
detailed numerical description of a representative sample is required
repeatability of measurement is important
generalising results and comparing across populations

Question 4

What is the difference between primary and secondary research?

Answer 4

primary = collection of new information by conducting own research

secondary research = processing data that has already been collected by previous researchers

Question 5

What are the different sampling methods?

Answer 5

Probability:
Simple random samling
systematic sampling
stratified sampling
cluster sampling

Non-probability sampling
convenience sampling
judgemental sampling
quota sampling
snowball sampling

Question 6

What is a Likert Scale

Answer 6

• Psychometric scale commonly involved in research that employs questionnaires
• Close-ended, forced-choice scale
• Respondents specify their level of agreement or disagreement on a symmetric agree-disagree scale for a series of statements
• Distances between each answer option are equal
• Researchers employ a set of items that are highly correlated (internal consistency) but also that together will capture the full domain under study

Question 7

What are dichotomous questions?

Answer 7

= Structured question with only two alternatives: yes or no – often includes a neutral response as ‘don’t know’, ‘no opinion’, ‘no’

Advantages: easiest to code and analyse

Disadvantages: response is influenced by wording of the question

Question 8

Define the concept of a brand.

Answer 8

Brand = name, term, sign, symbol, design, or some combination of these elements, intended to identify the goods and services of one seller or group of sellers an to differentiate them from those of competitors

= product or service whose dimensions differentiate it in some way from other products or services designed to satisfy the same need
> differences may be functional, rational, or tangible or symbolic, emotional, or intangible

Role of brands: identify the source or maker and to assign responsibility for its performance = sign of quality

Components of a brand: brand elements = brand names, logos, symbols, package designs

Question 9

Why do brands matter? (from a consumer and manufacturer perspective)

Answer 9

Consumer:
Risk reducer
identification of the source
search cost reducer
promise
symbolic device
affect cosnumers’ perception

Manufacturer:
identification
means of legally protecting features
signal of quality
unique associations
source of competitive advantage
source of financial returns

Question 10

Define brand image, personality, and identity.

Answer 10

Brand image = Brand competence, brand tonality, brand utility, brand iconography/appearance
= view of customers

Brand identity = internal view by company; how you want others to perceive you (Logo, tagline, aesthetic style, language and tone)

brand personality = personality traits like sincerity, excitement, competence, sophistication, ruggedness

Question 11

Deine brand extension.

Answer 11

= firm uses an established brand name to introduce a new product

> judged by how effectively they leverage existing brand equity to a new product and how effectively they contribute to the equity of the parent brand in turn

Sub-brand = combine a new brand with an existing brand (brand extension)

Line extension = parent brand covers a new product within a product category it currently services; e.g. Coca Cola, Coca Cola Light, Coca Cola zero

Category extensions = use parent brand to enter a different product category

Question 12

What are risks of brand extension?

Answer 12

extension to unrelated markets may lead to loss of reliability
risk that new product may generate implications that damage the image of the core brand
chances of less awareness and trial bc management may not provide enough investment for the introduction of a new product

Question 13

Explain the spillover effect.

Answer 13

= change in beliefs regarding one entity due to the evaluation of another associated entity

• Core mechanism of a variety of marketing activities, such as brand extensions, co-branding like celebrity endorsement, brand alliances and sponsorship; also country-of-origin
• Using external cues to convey a product’s quality, awareness, or superior performance
• Knowledge of one entity (e.g. brand, country, or celebrity) produces a transfer of attitudes to another entity
• Brand extension: attitudes toward the parent brand spill over to the brand extension

positive spillover effect = umbrella effect
negative spillover effect = cannibalism (new product pushes existing products from the market)

Question 14

How can brand successfully differentiate? In relation to Points of difference and points of parity

Answer 14

Points-of-difference = associations unique to the brand; strongly held and favourably evaluated by consumer > desirable to consumers; deliverable by the company; differentiating from competitors

Points-of-parity = associations not necessarily unique to the brand but perhaps shared with other brands
* Category point-of-parity associations = associations consumers view as being necessary to a legitimate and credible product offering within a certain category
* Competitive point-of-parity associations = associations designed to negate competitors’ points-of-difference or overcome perceived weaknesses or vulnerabilities of the brand

Key to competitive advantage is relevant brand differentiation – consumers must find something unique and meaningful about the market offering
> differences may be based directly on the product or service itself or on other considerations, e.g. employees, channels, image, or services

Consumers must see the competitive advantage as a consumer advantage

Question 15

How do marketing communications work?

Answer 15

Communications process consists of 9 elements:
* Sender
* Receiver
* Message
* Media: transmit the message through effective media to reach target audience
* Encoding : take into account how the target market decodes the message
* Decoding
* Response
* Feedback: develop feedback channels to monitor response to the message
* Noise

Understand fundamental elements of effective communications:
Macromodel of the communications process: sender must know what audience they want to reach and what response they want to get; encode message so target audience can decode it; transmit message through media that reaches target audience and develop feedback channels to monitor the response

Question 16

Name the different Consumer response hierarchy models.

Answer 16

AIDA: Attention, interest, desire action

Hierarchy of effects: awareness, knowledge, liking, preference, conviction, purchase

Innovation-Adoption model: Awareness, interest, evaluation, trial, adoption

Communication model: exposure, reception, cognitive response, attitude, intention, behaviour

Question 17

Through what stages do consumer pass when responding to messages?

Answer 17

Cognititve = consumer’s beliefs (Attention, Awareness, Exposure, Knowledge)

Affective = consumers’s feelings (Interest, Desire, Liking, Interest, Attitude)

Behavioural = consumer’s intention (Action/Trial/Purchase)

Question 18

Through what stages do consumers pass when there is high involvement and high differentiation

Answer 18

Learn - feel - do
Cognitive - affective - behavioural

Question 19

Through what stages do consumers pass when there is high involvement and low differentiation?

Answer 19

Do - feel - learn
behavioural - affective - cognitive

Question 20

Through what stages do consumers pass when there is low involvement and low differentiation?

Answer 20

learn - do - feel
Cognitive - behavioural - affective

Question 21

What are the steps in consumer decision-making according to the Hierarchy of Effects Model?

Answer 21

Cognitive stage
1) Awareness: : becoming aware of the brand/product

2) Knowledge: evaluate whether the product can meet the needs and how it is compared to other products and brands

Affective stage
3) Liking

4) Preference: compare quality, value, performance, other features to competitors)

5) Conviction: decision-making stage where the positive feelings convert into the certainty of buying

Behavior Stage
* Purchase

Question 22

Describe the AIDA model in consumer decision making.

Answer 22

Cognitive
1) Awareness

Affective
2) Interest
3) Desire

Bahavioural
4) Action

Question 23

What steps do marketers follow to develop effective communication?

Answer 23

1) Identify target audience

2) Determine communication objectives: e.g., create category need, brand awareness, brand attitude, brand purchase intention

3) Design communications: requires solving three problems
what to say (message strategy)
how to say it (creative strategy)
who should say it (message source)

4) Select communication channels: can be personal (advocate, expert, and social channels) or non-personal (media, atmospheres, and events)

5) Establish the total communications budget: affordable method (what you can afford); percentage-of-sales method; competitive-parity method; objective-and-task methods – develop budgets by identifying specific objectives

6) Decide on the communications mix: examine the distinct advantages and costs of each communication tool and the company’s market rank; consider the type of product market in which they are selling; how ready consumers are to make a purchase; and the product’s stage in the company, brands, and product

7) Measure the communications results: ask members of the target audience whether they recognise or recall the communication, how many times they saw it, what points they recall, how they felt about the communication, and what their previous and current attitudes toward the company, brand, and product are

8) Manage the integrated marketing communications process: Integrated marketing communications (IMC)

Question 24

Differentiate above-the-line and below-the-line communication.

Answer 24

Above = visible to everyone
Below = visible to selected circle

ATL = classic, daily advertising
e.g. TV, print advertising, sponsorship, brochures, banner and SEO

BTL = not reaching the mass, but a selected target audience > creativity required to reach audience
e.g. giveaways, product trials, guerrilla marketing, loyalty programs, discounts for VIP customers

Question 25

What is the communication mix?

Answer 25

Advertising: any paid form of non-personal presentation and promotion of ideas, goods, and services by an identified sponsor via media channels

Sales promotion: variety of short-term incentives to encourage trial or purchase

PR and publicity: variety of programs directed internally to employees of the company or externally to consumers, other firms, government, and media to promote or protect a company’s image

Events and experiences: company-sponsored activities and programs

Direct marketing: use of mail, telephone, fax, email, or Internet to communicate

Interactive marketing: online activities and programs designed to engage customers or prospects; or raise awareness, improve image

WOM marketing

Personal selling: face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders

Sponsoring: internal events and external events

Question 26

How do companies select media?

Answer 26

1) Budget
2) Campaign objective
3) target audience
4) focus
5) readership
6) circulation
7) timing

Question 27

What are the criteries for selecting media class and media vehicle? (Intra und inter media Selektion)

Answer 27

Media class (Intermedia Selektion) = TV, radio, nrewpaper, product placement, etc.
goals to be achieved
advertising budget
competitive activity
retailers’ view

Media vehicle (intramedia Selektion) = TV chanell, radio channel, social media app
reach of target segment
cost measures by TAI (= thousand ass impressions)

other considerations:
frequency, continuity, impact, copy formulation, media cost and availability
research, type of message and products, clutter, etc.

Question 28

Celebrity and influencers:
What sources contribute to a source’s effectivness to transfer their values to the brand?

Answer 28

1. Credibility = tendency to believe or trust someone – process of internalisation occurs when the receivers accepts the source’s position on an issue as his or her own
   > Expertise
   > Trustworthiness
2. Attractiveness = the process of identification
   > Similarity
   > Familiarity
   > Liking
3. Power = the process of compliance
   = occurs when an individual is persuaded by an advertised source because they hope to achieve a favourable reaction or approval from this source

Question 29

What are practical considerations in the selection of endorsers?

Answer 29

Celebrity and audience match-up
Celebrity and brand match-up
Celebrity credibility
Celebrity attractiveness
Celebrity’s power to persuade
Cost consideration
Working ease and difficulty factor
Saturation factor
Trouble factor

Question 30

What are the advantages and disadvantages of social media?

Answer 30

Pro:
* Flexibility: in marketing and advertising planning – ability to quickly modify apps, posting, ads, and blogs
* Accessibility
* Usability
* Immediacy
* No permanence – changes can be made
* Reach options: increased targeting
* Consumer engagement: CGC
* Two-way-dialogue: consumer feedback; new brand and product ideas; pricing, location and promotion modifications
* Integration and ability to drive traffic
* Improved metrics and research
* Cost effectiveness

Con:
* Privacy and censorship
* Lost productivity, addiction and fatigue: burnout
* Meaningless comment, babble, spam and “like-backs”
* Hackers and fraud
* Dealing with negative (viral) comments

Question 31

What are examples for weak, acceptable and strong metrics in social media marketing?

Answer 31

weak: views, likes, followers, comments, sharing

acceptable: number of visitors to owned media, group membership, downloads, brand sentiment, email subscription

strong (conversion): ROI, conversion rate, cost per action, cost per customer, repeat sales (retained customers)

Question 32

Define and describe owned, paid, and earned media.

Answer 32

Paid = PPC, display ads, retargeting, affiliate, social media ads, banner advertising, video advertising, traditional advertising (TV, print, out-of-home)
> strangers

owned = owned by the company
e.g. website, ecommerce site, email, mobile apps, sms, direct mail, retail, social channels
> customers

Earned = WOM, blogs, social mentions, partnerships, ambassadors, reviews, external organic search, digital PR, testimonials
> fans

Combination of them:
Influencer marketing
Content marketing
Social media
SEO
Events

Question 33

What are strategic advantages of mobile marketing?

Answer 33

devices are always on, always connected, and always with the consumer

the ability to generate location-sensitive offers

the ability to send relevant personalised messages and offers

Question 34

How has the mobile wallet changed consumer behaviour? (Use Elaboration Likelihood Model)

Answer 34

• Mobile wallet: apps on mobile devices that store debit and credit card information, as well as coupons, rewards or discount information
• Only mobile phone needed when you leave your home
• Replace the need to carry physical cards; ability to carry financial information from multiple sources
• Increase conversion rates and customer spending; better offer and coupon redemption rate; makes loyalty programmes accessible from anywhere; provides incentives to customers

Two ways people can be persuaded of something, depending on how invested they are in a topics
* Strongly motivated and time to think over decision > persuasion over central route, weigh pros and cons, arguments, critical thinking, trying to make best decision
* Rushed or decision is less important > persuasion over peripheral route, more influenced by cues that do not relate to the issue at hand, e.g. because product represented by famous spokesperson

• Persuasion: context, whether offer has relevance and resonance for the consumer to be motivated enough to process the situation
• Situational context: feelings when receiving messages; whether consumer is able to process the information when received; e.g. being on a train with weak Wi-Fi

Question 35

What are the main factors in changing digital behaviour?

Answer 35

• Searching online for products > direct comparison of price, functionality, features, delivery times, costs, etc.
• Checking for reviews and ratings
• Saving items for later, using ‘wish lists’
• Consumer power: increase of consumer power, consumer can now express their opinion online, easier, broad reach
• Voicers, activists, social networks and irates
• Voicers: share opinions more easily via social media, instead of consumer to business
• Activists: message can be shared using hashtags
• Social networks: wider audience online reached through social media, WOM
• Irates: gain attention and ensure their point of view was heard
• Rise of prosumer: consumers more involved, create value as well; user-generated content
• Second screening: consumers watching programmes on TV while using a mobile device (Tablets for Facebook etc.), especially to access supplementary content or applications; communicate their feelings to friends
• Showrooming: searching in store and buying online
• Webrooming: searching online and buying in store
• Liquid consumption: access based and dematerialized, e.g. on Computers, data
• Solid consumption: ownership based and tangible

Question 36

What is an intergrated marketing communications program and its advantages?

Answer 36

IMC = the integration of multiple communication tools and media yield more positive communication results than the tools used individually

plan to evaluate the strategic roles of a variety of communications disciplines, and that combines these disciplines to provide clarity, consistency, and maximum impact through the seamless integration of discrete messages

core message should always be about their core value of the brand and should not change even though it is promoted differently on different platforms
> Have one voice across your media and across your marketing mix

• Using more media is more effective than only using one media
• Customer sees it from different sources
• TV ads very short and can only get short message across
• Newspaper: print media good for more complicated messages/topics

Question 37

What are key features of IMC?

Answer 37

1. Start with your audience – and then work backwards to the brand communicator to determining the most appropriate messages and media to employ for the brand
2. Use any form of relevant contact or touch point - personalisation
3. Speak with one voice - positioning
4. Build relationships

Question 38

What are the steps in developing an advertising programm?

Answer 38

1) Set advertising objectives = specific communications task and achievement level to be accomplished with a specific audience in a specific time period
classification of objectives:

• Informative advertising aims to create brand awareness and knowledge
• Persuasive advertising aims to create liking, preference, conviction, and purchase
• Reminder advertising aims to stimulate repeat purchase
• Reinforcement advertising aims to convince current purchasers that they made the right choice

2) Establish a budget: factors affecting budget decisions are 1) stage in the product life cycle, 2) market share and consumer base, 3) competition and cluster, 4) advertising frequency, 5) product substitutability

3) Choose the advertising message and creative strategy

4) Decide on the media: decide on reach frequency, and impact (exposure through a medium)
Alternative advertising options:
* Place advertising (out-of-home): billboards, public spaces, product placement, point of purchase

5) Evaluate communication and sales effects: decide on media timing and allocation

Question 39

What are the different sales promotion methods?

Answer 39

Sampling to induce trial
Coupons
Price-offs
Bonus packs
Refunds and rebates
Premiums
Contests
Free products

Question 40

Name the different mass communication and personal communication forms.

Answer 40

Mass: PR, Advertising, Sales Promotion, Events and Experiences

Personal: Direct and Interactive Marketing, WOM, Personal Selling

Question 41

What is direct and interactive marketing?

Answer 41

Direct marketing = use of consumer-direct channels to reach and deliver goods and services to customer without using marketing middle men
= interactive marketing system that uses one or more media to effect a measurable response or transaction at any location

e.g. direct mail (sending offer, announcement, reminder, or other item to an individual consumer)
catalog marketing (send catalogues)
telemarketing (attract prospects, sell to existing customers, and provide service)
other media: newspapers and magazines carry ads offering books, clothing, etc.
informercials

Question 42

What is direct and interactive marketing?

Answer 42

Direct marketing = use of consumer-direct channels to reach and deliver goods and services to customer without using marketing middle men
= interactive marketing system that uses one or more media to effect a measurable response or transaction at any location

e.g. direct mail (sending offer, announcement, reminder, or other item to an individual consumer)
catalog marketing (send catalogues)
telemarketing (attract prospects, sell to existing customers, and provide service)
other media: newspapers and magazines carry ads offering books, clothing, etc.
informercials

Question 43

What are forms of interactive marketing?

Answer 43

• Web: embody and express the brand’s purpose, products, vision; ease of use (quick download, easy to navigate); physical attractiveness (clean, readable, colour)
• Search ads: paid search or pay-per-click ads; SEO
• Display ads: banner ads on relevant web sites
• Emails
• Mobile marketing

Question 44

Define SEO and its advantages.

Answer 44

SEO (search engine optimisation/Suchmaschinenoptimierung) = process of improving the visibility of a website or webpage on search engines (rank higher in the list of search engine results)

• Align the website page with the search engine’s ranking algorithm so it can be easily found, crawled, indexed, and surfaced in the SERP for relevant queries
• On-page SEO = optimising quality and structure of the content on a page (content quality, keywords, and HTML tags)
• Off-page SEO = getting other sites, and other pages on your site to link to the page you are trying to optimise (backlinks, internal linking)

Advantages:
More website traffic – increased brand awareness
More customers – targeted to customers
Better reputation – higher ranking gives more credibility
Higher ROI

Question 45

Define SEA and its advantages.

Answer 45

SEA (search engine advertising/Suchmaschinenwerbung) = form of paid marketing that helps businesses to get their ads in front of searchers by paying to have their ad copy at the top of search results
* Form of pay-per-click advertising = marketers bid for relevant search queries and pay for each click that their ad receives

Advantages:
gives results very quickly
most successful form of digital marketing (good ROI)
> search ads can be refined to target specific audiences and key words
faster traffic growth

Question 46

Define SEM and the difference between SEA and SEO.

Answer 46

SEM (Search engine marketing) = Kombination von SEO und SEA Maßnahmen
* Relevant and structured content offered together with SEA campaign combined

• SEO = organic results vs. SEA = paid ads, paid search

Question 47

Define reach, net reach and gross (brutto) reach in digital marketing campaigns.

Answer 47

= Approx.. number of possible customer who may see a unique campaign or promotional channel

gross reach = sum of all contacts with a media or a message
net reach= number of unique users you have exposed your ad to

• Calculating reach: impressions divided by frequency (reach impressions/frequency)

Question 48

Define influencer marketing and best practices.

Answer 48

Influencer marketing = form of online marketing; results of the campaign are collaborations between brands and influencers (endorsement)

• Influencer = some who has the power to affect the purchasing decisions of others because of their authority, knowledge, position, or relationship with the audience AND who follows a distinct niche whom they actively engage
• Developed a reputation for being the experts in their field

Best practices:
* Put together a strategy, plan, and budget
* Be patient, slow game of acquiring followers who are going to be loyal and engaged
* Do not set rules for the influencers

Question 49

Define guerilla marketing.

Answer 49

= advertising method through which unusual and low-budget strategies are used with the aim of reaching as many people as possible
* Actions that have not been done before

• Advantages: no large budgets required; early obtaining of results; profitable; improves image of the brand; viralizable

Examples:
* Tipex: campaign placing tipex boats next to zebra crossings, simulating that the stripes of them were produced by the strokes of a tipex
* Miele: transformed entrance of road tunnel to stimulate entry into a giant vacuum cleaner

Question 50

Define ambush marketing and its advantages and disadvantages.

Answer 50

= practice by which a rival company attempts to associate its products with an event that already has official sponsors
> steal attention from others (Ausnutzung der medialen Aufmerksamkeit eines Großereignisses, ohne selbst Sponsor zu sein)

• Creative and intelligent; both legal and illegal; unexpected outcome (not in control of the circumstances)
• Direct = attaching itself openly when it does not have legal rights like official sponsors, e.g. Nike at the Olympic games installing a billboard outside the stadium
• Indirect = company attaches itself indirectly to some other parents advertising campaign, not aggressively (does not want to grab the main spotlight)
• Advantages: increases brand awareness (can attach brand directly with a multinational brand); clever
• Disadvantages: unhealthy competitive environment; ROI difficult to calculate; can be expensive