Past exam papers

Question 1

Above the Line

Answer 1

Promotional activities carried out through mass media, such as television, radio and newspapers are classed as above-the-line promotion.

Question 2

There are four major above-the-line categories of advertising media:

Answer 2

• print
• electronic/broadcast
• out-of-home
• digital interactive media.

Question 3

Below the line

Answer 3

Below-the-line promotion refers to forms of non-media communication or advertising; this type of promotion has become increasingly important in the communications mix of many companies, not only those involved in fast-moving consumer goods, but also those that produce industrial goods.

Question 4

Through the line

Answer 4

Through-the-line promotion refers to an advertising strategy that involves both above- the-line and below-the-line communications; one form of advertising points the target to another form of advertising, thus crossing the “line”.

Question 5

Participants in the media process

Answer 5

Advertiser Advertising Agency Media Owner Target Market

Question 6

Advertiser

Answer 6

Manufacteres & Service Firms Trade Sellers Government & Social Organisations Role: Is to satisfy the needs and wants of the target audience

Question 7

Advertising Agency

Answer 7

In House Trade Sellers Agency Role: Advise on how to communicate product benefits, consider the media options and to schedule advertisements.

Question 8

Media Owner

Answer 8

Media, production, research PR, direct market, promotions Internet sponsorships and events Role: Books advertisements, places advertisements, broadcasts, print

Question 9

Target Audience

Answer 9

Psychographic Geographic Demographic Lifestyle Behaviour Role: Message is directed to this group to influence and reach.

Question 10

Professional Participants

Answer 10

Advertiser, Agency, Media Owner (make money)

Question 11

Media with biggest exposure

Answer 11

Billboards and newspapers

Question 12

The universal principles of creating effective outdoor advertising are:

Answer 12

• ensuring the product is clearly visible and identifiable
• using short copy for high impact
• using short words and legible type, so the message is easy to read from a distance
• using large illustrations and bold colours for visibility and impact
• keeping it simple
• involving and engaging the consumer by using intriguing concepts

Question 13

Stages in planning a public relations program:

Answer 13

1. situational analysis
2. set objectives
3. select target market
4. develope message
5. planning activities
6. establishing a budget
7. review and evaluate

Question 14

Difference between Public Relations and Marketing

Answer 14

Public relations and marketing both deal with organisational relationships and employ similar processes, techniques and strategies.

• The goal of marketing is to attract and satisfy customers on a sustained basis in order to achieve the organisation’s economic objective
• Marketing focuses on exchange relationships with customers that lead to quid pro quo transactions, meeting customer demands and achieving organisational economic objectives.
• The goal of public relations is to attain and maintain accord with social groups on whom the organisation depends in order to achieve its mission.
• PR covers a broad range of relationships and goals with many groups, including employees, investors, neighbours, special-interest groups, governments and others.

Question 15

What is micro marketing?

Answer 15

An effective marketing strategy should aim to fulfil customer needs and wants better than competitors do.

Focus on customers is the essence of marketing strategy, hence the emergence of a new segmentation concept called micro-marketing or segment- of-one marketing. Forced by competitive pressures, mass marketers have discovered that a segment can be trimmed down to smaller sub- segments, even to an individual. Very often the PR executive needs to focus on one influential individual. This is where micro-marketing becomes very usefull.

Question 16

To be successful Micro Marketing should:

Answer 16

To be successful, micro-marketing requires that marketers

• Know the customers: Using high-tech techniques, find out who the customers are and aren’t; by linking that knowledge with data about ads and coupons, marketing or public relations strategy can be fine-tuned.
• Make what the customers want: Tailor products or messages to individual tastes, needs or problems.
• Use targeted and new media: Advertising on pay-channel television (such as M-Net) and in specialist magazines can be used to reach specific audiences. In addition, it is vital to develop new ways to reach customers. The Internet offers that opportunity.
• Use non-media: Companies can sponsor sport, festivals and other events to reach local or otherwise defined markets.
• Reach customers in the store. Consumers make most buying decisions while they are shopping, so it pays to put ads on supermarket loud speakers, shopping carts and in-store monitors.
• Sharpen promotions: Couponing and price promotions are expensive and often harmful to a brand’s image. Thanks to better data some companies are using fewer but more effective promotions. One promising approach is aiming coupons at competitors’ customers.
• Work with retailers: FMCG manufacturers must learn to micro- market to the retail trade, too. Some are linking their computers to retailers’ computers and some are tailoring their marketing, public relations and promotions to an individual retailer’s needs.

Question 17

Modes of Marketing:

Answer 17

Mode 1

Basic offer

Mode 2

Persuasive communication

Mode 3

Promotional inducement

Question 18

Frequency

Answer 18

This refers to the number of times, on average, that a person within the target market is

supposed to have been exposed to the advertiser’s message.

Question 19

Impact

Answer 19

This refers to the relative degree of awareness achieved by a particular creative execution in any given medium.

Question 20

Time

Answer 20

This refers to the proposed duration of the campaign or the period during which

the stated objectives of the campaign will be achieved.

Question 21

Reach

Answer 21

This refers to the number of persons within the target market who are exposed to the

advertiser’s message at least once. This is usually reflected as a percentage (coverage).

Question 23

The marketing communication mix consists of:

Answer 23

• advertising
• personal selling
• shopper marketing and sales promotion;
• direct response and database marketing
• public relations and word-of-mouth
• sponsorship and event marketing
• digital media marketing;
• alternative communication channels.

Question 24

Elements of brand equity:

Answer 24

Brands have equity because consumers have

• a high awareness of them
• they have many loyal customers
• a reputation for quality
• proprietary brand assets and highly regarded brand associations.

Question 25

Advertising:

Answer 25

• Many people assume marketing and advertising to be synonymous or the same, but that is far from the truth. Advertising can be defined as a paid, mass-mediated attempt to persuade.
• Advertising is one of the most visible manifestations of a marketer’s communication efforts and few would claim that it is possible to be immune to the constant exposure to advertisements.
• Advertising messages are delivered in a wide variety of formats using many different media, including print, television, radio, out-of-home and most recently, the Internet and social media.
• The distinguishing feature of advertising is that it is a one-way form of communication with targeted consumers, referred to collectively as the target audience.
• Advertising has four main purposes, namely to attract attention, to inform, to persuade and to remind.
• When the product is new to the market, advertising’s main objectives are to grasp the attention of the prospective customers and to inform the target audience about the new product.
• Advertising messages will be mainly informational, even educational — educating the target audience about new technology, for example.
• Finally, advertising is persuasive and reminds the reader, viewer or listener about the brand and its features, advantages and benefits (FABs).
• The role or task of advertising changes over the product life cycle. The role of advertising in the introduction phase of the life cycle, for example, will be to make people aware of the product and to create primary demand for it. As the product moves into the growth phase of the life cycle, the emphasis will shift to persuading customers to buy the product. During the maturity phase, the focus will fall more on reminder advertising and, in the decline phase, advertising may be stopped altogether as the company may not want to spend money on a product that may soon be discontinued.

Question 26

Personal Selling

Answer 26

• Personal selling is a person-to-person process by which the seller learns about the prospective buyer’s wants, and seeks to satisfy them by offering suitable goods or services and making a sale.
• This element dominates the marketing communication mix (in terms of money spent) in almost all situations.
• It would probably be true to say that virtually all organisations start off by selling to a relatively small number of customers and this is best accomplished by personal selling.
• In many cases the nature of the product offering is such that it is absolutely essential to present it in a personal way.
• Personal selling certainly has several advantages, not the least of which is that each customer can be approached in a unique way.
• But personal selling is expensive.
• It is therefore necessary to establish whether or not it can be justified before simplistically assuming that it will be a part of the organisation’s marketing communication mix.

Question 27

Shopper marketing and sales promotion

Answer 27

Shopper marketing is a strategy designed to influence and affect shoppers’ behaviour at retail touchpoints.

Shopper marketing is in fact brand marketing in the retail environment.

It includes discovering shopper insights, pathway management, displays, category management, merchandising, sales promotions and online buying.

Sales promotion is any activity that offers incentives, such as a trial or continued purchase, for a limited time period to induce a desired response from a targeted population.

To be effective, sales promotion should be directed at three groups. The first group is internal, ie within the organisation. In most instances this would mean the sales force. The next group would be members of the distribution channels, such as wholesalers and retailers. The last group to be targeted is consumers or shoppers. Specific objectives should be set for sales promotion to be effective.

Question 28

Direct Marketing

Answer 28

• Direct response marketing is an interactive system of marketing that uses one or more advertising media to effect a measurable response or transaction at any location (Stone, 1986:1).
• The database of potential customers is vital.
• The real key to the understanding of this rapidly growing tool is the word measurable. Indeed, more than with any of the other elements of the marketing communication mix, the marketer is able to measure the effectiveness of a particular campaign with surprising accuracy.
• And therein lies its appeal, since marketers are under increasing pressure to account for the money they spend on any form of marketing communication. One of the main criticisms is that it frequently uses unsolicited direct mail, which is often labelled junk mail.

Question 29

Public relations and word-of-mouth

Answer 29

• Defines public relations (PR) as ‘… the management, through communication, of perceptions and strategic relationships between an organisation and its internal and external stakeholders.’
• Used appropriately PR can significantly enhance an organisation’s marketing efforts.
• The most visible result of an organisation’s public relations activities is publicity.
• This is frequently, and mistakenly, referred to as free publicity because an organisation that gets favourable publicity in a newspaper or trade journal, or on television, does not pay the medium directly for the exposure.
• Word-of-mouth (WOM) is a non-paid form of communication, usually interpersonal communication face-to-face or via digital means regarding products, brands or services.
• These discussions can be positive or negative.
• It has always been said that WOM is probably the most powerful tool of marketing communication because it is spontaneous, unbiased and trustworthy.
• Companies are realising more and more that planned WOM (word-of-mouth and word-of-mouse) can create excellent results for them.

Question 30

Sponsorships and Event marketing

Answer 30

• Sponsorship and event marketing
• Sponsorship is the marketing communications activity whereby a sponsor contractually provides financial and/or other support to an organisation, an individual or a team in return for rights to associate the sponsor’s name, company, product or brand and logo with the sponsored event or activity.
• Sponsorship is an important part of IMC, but very often large amounts of money are expended without the sponsor receiving much benefit.
• Corporate sponsorship of events has become a major promotional activity for many organisations.
• Event marketing, which may be part and parcel of a sponsorship deal, is the marketing of a product at sport, cultural, charity or other events. Event marketing and branded entertainment are often linked.

Question 31

Digital Media Marketing

Answer 31

• In the past ten years electronic media, now known as digital media, has become very prominent and important in marketing.
• The use of the Internet, world wide web, e-mail and mobile technology has become commonplace, and few people can imagine a world without the internet, e-mail or cell phones.
• Most consumers in their teens have grown up with mobile technology and social media as the norm, and not as something new.
• Some marketers talk about screenagers and the mobile youth. These are consumers who are connected wherever they are, and communicate through mobile devices (primarily cell phones) on social media such as Facebook and Twitter.
• The potential of these media is being unlocked daily and a lot more emphasis will be placed on them in the future.

Question 32

Alternative Communication Channels

Answer 32

• Alternative communication channels and media have been developed to break through the mass media clutter.
• These unexpected and unconventional media channels thrive on engagement and visual impact in a connected society.
• They have a disruptive approach as their foundation, and often consist largely of user-generated content.
• Ambient marketing uses product relevance in an unusual way. Colgate, for example, uses the inside of pizza box lids to convey the message, ‘don’t let your dinner breath become your morning breath’.
• Buzz marketing relies on generating a social media buzz that is often supported by word-of-mouth communication. Technology-created buzz is often mind-boggling and talked about.
• Other alternative communication tools or media include augmented reality, sensory branding, product placement, non- linear advertising and video networks.

Question 33

Main ways of

Classifying of advertising

Answer 33

There are many ways to classify advertising, but the main way is by

Purpose:

Primary and selective demand

• Brand advertising
• Corporate image advertising
• Commercial/non-commercial advertising
• Action/response advertising
• Retail advertising

target audience:

Consumer advertising

• Business-to-business advertising: industrial advertising professional advertising trade advertising agricultural advertising

geographic area:

National advertising

Regional advertising

Local advertising

International advertising

medium:

Print advertising (newspapers and magazines)

• Broadcast/electronic advertising (radio and television)
• Out-of-home advertising (outdoor and cinema)
• Digital media

Question 34

National advertising

Answer 34

• National advertising is usually image-creating, and is the most general in terms of product information.
• Aspects such as price, retail availability and even service and installation are often omitted from national advertising.
• National advertising seeks to establish demand for a brand, especially one sold through self-service outlets.
• Ideally the customer comes into the retail store already presold on a certain brand because of its national advertising.
• National advertising does not necessarily mean that the product is sold nationwide, but that it is sold in all major centres.

Question 35

International Advertising

Answer 35

International advertising is mostly used by multinational companies like L’Oréal, Nestlé, Colgate or Coca-Cola to promote their brands to the trade and to consumers.

In many cases the brands are well known all over the world.

The advertising may be created outside South Africa with a generic advertising approach, but sometimes will feature local changes to allow for different models, languages and cultural issues.

Question 36

Local Advertising

Answer 36

Local advertising is done mostly by retailers or local merchants in local newspapers or on radio stations to encourage consumers to shop at a specific store or to use a local service such as a restaurant, fitness club or hairdressing salon.

While national advertisers focus more on the brand, local advertisers focus more on giving customers a reason to patronise their particular outlet. Therefore, aspects like trading hours, credit facilities, expertise, service, store atmosphere and variety of products are stressed.

Question 37

Regional Advertising

Answer 37

• Regional advertising is focused on a particular region, in which case the marketer is likely to choose regional media.
• Regional advertising is also used for products that are restricted to particular regions and that are available, for example, ‘only in Gauteng,’ or ‘only in the Western Cape’.

Question 39

Trade Advertising

Answer 39

Trade advertising is directed at wholesalers, retailers and agents to convince them to carry (or push) certain national brands in their inventory, or to list them and sell them to consumers.

Before consumers have an opportunity to purchase a product it must be available in retail stores.

Manufactures use trade advertising to promote their products to wholesalers and retailers.

Trade advertising tends to emphasise the product’s profitability, and the consumer demand that will create high turnover of the product for the retailer.

Trade advertising can be used to get initial trial for a product, increase trade support and announce consumer promotions.

Ultimately, the aim is to get the trade to stock the product and become regular buyers of the products. If they try it and like it they will buy it again.

Question 40

Industrial Advertising

Answer 40

Industrial advertising is targeted at individuals who buy or influence the purchase of industrial goods or other services.

Industrial goods are those products that either become a physical part of another product (raw material, component parts) or are used to help the manufacturer conduct business (machinery or tools and even office supplies).

Question 41

Institutional advertising

Answer 41

institutional advertising to demonstrate what good corporate citizens they are. Examples include the South African Breweries campaign against drinking and driving. Others are the Pick n Pay and Nedbank campaigns to protect wildlife and the environment.

Question 42

Professional Advertising

Answer 42

Professional advertising is targeted at doctors, lawyers, dentists, engineers or other professionals to encourage them to use or specify the advertiser’s product.

Question 43

Measurement Challenges of IMC Tools:

Answer 43

• Direct response: Direct mail, telemarketing, etc, are the most measurable.
• Internet/digital: Hits, responses, etc. Very measurable.
• Sales promotion: Effect of short-term incentives can be measured i.t.o. sales, etc.
• TV: TV is more subtle and gradual but ROI can be measured.
• Print: Reach, frequency can be measured. Inserts are more measurable.
• Public relations: One can measure number of impressions, column centimetres obtained, even impact on sales.
• Radio: Data is not so strong here. Listenership can be assessed.
• Cinema: No. of cinema-goers and impressions can be measured.
• Sponsored events: Measurement is complex. Big events can measure attendance, PR generated, recollection of the event, etc. A major recurring event like the Olympics is very measurable.
• Product placement: Quality and quantity of placement can be measured although how does one score ‘quality’?
• Outdoor: One can measure duration (time of billboard up) x no. of people going past it per day.
• Guerilla marketing: Hard to measure effect on sales but can via research, assess attitudes.

Question 44

New Media

Answer 44

The advent of the information super-highway has brought a new media form.

Digital interactive media are channels of communication with which the audience can participate actively and immediately. They are changing the way advertisers and agencies do business.

With a computer keyboard, consumers can now view and order products directly.

They can also participate in game shows.

In addition, they can manipulate images to better view a scene, and can find information about a product or service on the Internet.

They can discuss products on Twitter and Facebook.

They can receive offers on their cell phones.

This presents a challenge to advertisers and agencies to learn new forms of creativity. They have to deal with a whole new environment.

It’s a virtual environment where customers may spend 20 minutes or more, not just 30 seconds, and where advertising is a dialogue, not a monologue.

Successful branding is about how you feel.

Social media is about how you feel — and saying it.

Social media brings in the conversations, attitudes, emotions and engagement.

Question 45

Purpose Classification of advertising

Answer 45

The purposes around which advertising can be classified include:

• primary vs selective demand advertising;
• product or brand advertising;
• corporate image advertising;
• commercial vs non-commercial advertising;
• action or response advertising;
• retail advertising.

Question 46

Primary demand advertising & selective demand advertising ​

Answer 46

Primary demand advertising is designed to stimulate demand for the general product class or entire product category or industry, whereas selective demand advertising focuses on creating demand for a particular brand.

Most of the advertising for various products and services is concerned with stimulating selective demand, and emphasises reasons for buying a particular brand.

Primary demand advertising has been shown too ineffective in mature product categories, such as milk, but is rather appropriate for products totally new to the market like some hi-tech gadgets.

Question 47

Brand advertising

Answer 47

Brand advertising is primarily aimed at consumers, but it could also be aimed at the trade and industrial customers.

Successful brand advertising creates a demand among consumers so that retailers will put pressure on suppliers to supply more of the brand in order to meet demand.

Building demand through brand advertising is not easy.

A company must have a brand that both the trade and consumers recognise, and they must be convinced that it is better than other brands.

Question 48

Corporate image advertising

Answer 48

Corporate image advertising, which is also called non- product or institutional advertising, promotes the organisation’s mission or philosophy rather than a specific product.

For example, Kulula.com’s Project Green is designed to inform consumers of the company’s initiatives to lower carbon emissions and other greenhouse gases released by their aircrafts, and also to offset emissions by contributing to conservation and biodiversity initiatives.

Idea advertising is similar, but is not necessarily tied to a corporation.

Question 49

Commercial advertising

Answer 49

commercial advertising seeks profits,

So, commercial advertising includes selective demand, product, direct response, national and retail advertising.

non-commercial advertising is used around the world by governments and non- profit organisations to seek donations or volunteer support, and/ or change behaviour

Non-commercial advertising, on the other hand, focuses more on ideas, image and issues.

Question 50

Action VS Response Advertising

Answer 50

Some adverts are intended to bring about immediate action by the audience, while others intend to elicit a response possibly over a longer time frame, by creating awareness and interest in a product in order to influence the audience to select a specific brand the next time they shop (Semenik et al, 2012:33).

A direct response advert exemplifies action advertising because it seeks an immediate, direct response from the target audience.

Question 51

Retail Advertising

Answer 51

Retail advertising attempts to bring targeted consumers into stores to buy the merchandise that the store carries, or to buy specific brands on special offer.

Retail advertising is usually selling not only individual brands, but also the retail establishment as the place to buy a number of brands. For example, in a recent campaign, Checkers has invited its target audience not to change their life but to change to Checkers.

Retail advertising often includes price information, service and return policies, location of the store and hours of operation.

Often retailers include a number of brands in a single advertisement to show or promote the range of merchandise available.

Question 53

Criteria for Media Type:

Answer 53

• Creative compatibility and media qualities: The media plan exists to give direction and form to the creative message, and to create an environment that will enhance the probability of the consumer noting and comprehending the creative message.

• Target market exposure: Regardless of the qualitative aspects of the medium, if the target market is not actually exposed to it, the medium cannot make a contribution to the advertising plan. If, for example, the target market is teenagers in LSM 1 and 2, cinema would be an inappropriate media selection.

• Timing of exposure: The need to link media exposure to the actual purchase decision is often a critical element of the media plan. In many product categories, seasonal sales patterns are applicable. Point-of-sale advertising such as point-of-purchase stands or trolley advertisements provide a final reminder to theconsumer at the time and at the point of purchase.

• Track record: Although media plans are prepared for 12-month periods, the consumer is completely unaware of this parameter. What the consumer experiences is a continuous communication programme directed towards the achievement of some objective. The media planner must always refer back to previous planning activity in order to assess and build upon those features that proved successful.

• Practical constraints: There are many instances where the choice of a medium is restricted by practical problems. For instance, the longer booking lead times for magazines (four to six weeks) eliminate them from snap tactical campaigns, which tend to go into newspapers because of the shorter deadlines (24 to 48 hours). Availability of commercial time can be a problem with television, particularly when popular programmes are selected.

• Budget constraints: The high cost of utilising some media types makes them an inappropriate option for small-budget advertisers. Often it is the high cost of production (such as producing a TV commercial) rather than the flighting of the advertisements themselves that is the restricting factor.

• Competitive frame: The media activities of competitors create the frame within which the media strategy must be developed. The need to match the media activity of competitors, for instance, will suggest a strategy that mirrors their current media selection.

Question 54

(PR) The total process can usually be evaluated according to three criteria,

(input, process and output).

Answer 54

Input

• Was time used economically?
• Was the budget management satisfactory?
• Were resources fully utilised?

Process

• Were there incidents that needed special attention?
• Did the process run according to plan?
• Did the strategic planning work (objective and action)?

Output

• Evaluate the outcome of the project and indicate
• recommendations for future use where necessary.

Question 55

Benefits of Sponsorship

Answer 55

The long-term benefits and rewards that flow from a committed, well-managed approach to sponsorship are vast and multifaceted, both in business and society. As a marketing communication tool, sponsorship:

1. • is flexible
2. • promotes brand equity
3. • offers significant media exposure
4. • is cost effective
5. • contributes to good labour relations
6. • opens doors
7. • crosses all frontiers
8. • presents new challenges
9. • unites the nation.

Question 56

Flexibility:

Answer 56

Sponsorship allows for niche marketing, enabling the marketer to manage demographics, psychographics, time and location.

Many events and activities can be sponsored in many different ways and events can be selected to fit demographic and psychographic requirements.

This provides the opportunity to connect with consumers one-to-one by associating the company (brand or product) with the qualities of the event or activity while simultaneously projecting the company’s personality, values and style.

This positions the company as ‘in sync’ with its target market’s interests and responsive to their preferences, lifestyles and attitudes.

Question 57

Brand equity:

Answer 57

Sponsorship can provide brand exposure, build association value, even brand exclusivity, and can serve as an important branding vehicle that can expand, reinforce and even alter brand personality traits through association with the qualities of an event.

This is a unique way of generating brand loyally and long-term corporate awareness. Sponsorship accrues value over time, increasing its effectiveness and improving the return on investment.

When fully integrated and leveraged, events build brand equity.

Question 58

Media exposure:

Answer 58

Sponsorship is the only form of marketing communication in which a marketer can dominate the ‘stage’ without having to compete with other promotional clutter.

It can also extend the value of ad campaigns by creating a dynamic, interactive environment that makes key messages more relevant and persuasive.

Question 59

Cost effectiveness:

Answer 59

Sponsorship enables marketers to obtain coverage and brand awareness at a more favourable rate than traditional advertising, adding greater value to the advertising rand, and simultaneously incorporates corporate PR and social responsibility programmes.

Question 60

Industrial labour relations:

Answer 60

A company’s reputation and image have bearing on the morale of staff and can encourage the highest quality of future job applications.

Question 61

Opens doors:

Answer 61

Sponsorship creates long-term relationships. It creates influence.

Through corporate hospitality and a good corporate image and reputation, a company’s ability to do business with local and national government and other influential people can be enhanced, producing access that would otherwise be extremely difficult and costly to achieve.

Question 62

Crosses all frontiers:

Answer 62

The involvement of South African companies with South African sporting success is an invaluable tool in the export drive and promotion of the nation.

Sponsorship is global. It crosses all barriers of bureaucracy, national prejudice and language

Question 63

Presents new challenges:

Answer 63

Sponsorship, and the leverage of the sponsorship to maximise the return on investment, presents great challenges and creativity, and often reveals ingenuity in marketers.

Question 64

Unites the nation:

Answer 64

In a nation passionate about sport, sterling performances by national teams help to unify the nation and create feelings of goodwill among people who may otherwise be strongly divided.

Sport sponsorship, in particular, helps to reduce conflict in the nation.

Through association with such activities, sponsors can positively enhance consumer perceptions of their brands in relation to these values.