Promotion: Managing Communication

Question 1

communication

Answer 1

inform the market—customers, collaborators, company stakeholders, competitors, and society in general—about the specifics of a company’s offering.

Question 2

Managing communication involves 2 types of decisions

Answer 2

1 strategic decisions

2 tactical decisions

Question 3

managing communication involves 6 key steps

Answer 3

1 setting the goal
2 developing the message
3 selecting the media
4 developing the creative solution
5 implementing the communication campaign
6 evaluating the campaign result

Question 4

goal

Answer 4

identifies a set of criteria to be achieved by the communication campaign within a given time frame. The three most common communication goals are to create awareness, strengthen preferences, and incite action.

Question 5

3 most common goals

Answer 5

awareness
strengthen preferences
incite action

Question 6

message

Answer 6

identifies the information communicated to target customers. The message can focus on one or several of the six value-design marketing mix variables: product, service, brand, price, incentives, and distribution.

Question 7

media

Answer 7

the means used by the company to convey its message. The media decision involves three aspects: setting the media budget, deciding on the media type (advertising, public relations and social media, personal selling, product samples, event sponsorship, and product placement), and outlining the media scheduling (pattern, reach, and frequency).

Question 8

3 aspects to media

Answer 8

1 setting media budget
2 deciding on media type
(advertising, public relations and social media, personal selling, product samples, event sponsorship, and product placement)

3 outlining the media scheduling (pattern, reach, and frequency)

Question 9

creative solution

Answer 9

involves the execution of the company’s message in a given media. Among the key aspects of the creative solution are appeal type (information- based or emotion-based) and execution style (text, format, and layout).

Question 10

key aspects to creative solution

Answer 10

1 appeal type (information based or emotion based

2 execution style (text, format, and layout)

Question 11

implementation

Answer 11

aspect of marketing communication identifies the timeline and the logistics of executing the message, media, and creative decisions.

Question 12

control

Answer 12

evaluating the success of the communication campaign with respect to achieving the goals

Question 13

6 factors to control

Answer 13

1 exposure
2 comprehension
3 recall
4 persuasion
5 intent
6 behavior

Question 14

3 key considerations of control metric

Answer 14

goal of the campaign
message being communicated
selected media format

Question 15

Above-the-Line Communications:

Answer 15

mass media advertising such as television commercials, radio, and print advertisements

Question 16

Below-the-Line (BTL) communications

Answer 16

public relations, event sponsorship, personal selling, and direct mail

Question 17

Advertising Allowance:

Answer 17

A form of trade promotion in which retailers are given a discount in exchange for advertising manufacturers’ products.

Question 18

Advertising Awareness:

Answer 18

awareness =( advertising reach * frequency of exposure) / (number of exposures necessary to create awareness)

Question 19

Advertising Frequency:

Answer 19

The number of times the target audience is exposed to an advertisement in a given period.

Question 20

Advertising Reach:

Answer 20

For example, if 40,000 of 100,000 different households are exposed to a given commercial at least once, the reach is 40%.

Question 21

Affiliate Marketing:

Answer 21

A communication strategy that involves revenue sharing between advertisers and online content providers. An affiliate is rewarded based on specific performance measures, such as sales, click-throughs, and online traffic.

Question 22

Carryover Effect in Advertising:

Answer 22

Carryover Effect in Advertising: Impact of an advertising campaign that extends beyond the time frame of the campaign. To illustrate, an advertising effort made in a given period might generate sales in subsequent periods.

Question 23

Competitive Parity Budgeting:

Answer 23

Competitive Parity Budgeting: Budget allocation strategy based on (1) matching competitors’ absolute level of spending or (2) the proportion per point of market shar e.

Question 24

Cost Per Thousand Impressions (CPM)

Answer 24

Measure used to represent the cost of a communication campaign. CPM is the cost of reaching 1,000 individuals or households with an advertising message

Question 25

Impression:

Answer 25

Impression: A single exposure of an advertisement to one person.

Question 26

Integrated Marketing Communication (IMC):

Answer 26

Integrated Marketing Communication (IMC): An approach to designing marketing communication programs that emphasizes the importance of consistency in all communication activities. In particular, this approach calls for consistency on at least three levels: strategic, tactical, and internal. Strategic consistency implies coordination among the different aspects of the communication campaign and the elements of the offering’s overall marketing strategy. Tactical consistency implies coordination among communication and the other elements of the marketing mix to keep an offering’s message consistent with the perceived product and service benefits, brand image, price, incentives, and distribution channel. Internal consistency implies that the message, media, creative solution, implementation, and control metrics evaluating the success of the campaign need to be consistent with the communication goal as well as in and of themselves. The concept of internal consistency can also be applied with respect to the different media types (e.g., advertising, public relations, and direct marketing) to ensure that they work in a coordinated fashion rather than independently of one another.

Question 27

NPV Net promotor score

Answer 27

Net Promoter Score: A popular metric designed to measure customers’ word of mouth about a company and/or its products.1 The basic idea is fairly simple: A company’s current and potential customers are asked to indicate the likelihood that they will recommend the company and/or its products to another person (e.g., “How likely is it that you would recommend this company to a friend or colleague?”). Responses are typically scored on a 0–10 scale, with 0 meaning extremely unlikely and 10 meaning extremely likely. Based on their responses, customers are divided into one of three categories: promoters (those with ratings of 9 or 10), passives (those with ratings of 7 or 8), and detractors (those with ratings of 6 or lower). The net promoter score is then calculated as the difference between the percentage of a company’s promoters and detractors. For example, if 40% of a company’s customers are classified as promoters and 25% are classified as detractors, the company’s net promoter score is 15%.

Question 28

Target Rating Point (TRP)

Answer 28

: A measure of the total volume of advertising delivery to the target audience. TRP is similar to GRP, but its calculation involves using only the target audience (rather than the total audience watching the program) as the base. Thus, a single TRP represents 1% of the targeted viewers in any particular region.

Question 29

What is this example? Leo Burnett, the founder of Leo Burnett advertising agency, Advertising says to people, “Here’s what we’ve got. Here’s what it will do for you. Here’s how to get it.”

Answer 29

Managing Communication

Question 30

Communication Plan

Answer 30

``` goal strategy message media creative solution implementation control ```

Question 31

Communication Goals

Answer 31

``` 1 focus (awareness, preference, action) 2 performance benchmarks (awareness 40% of market, time frame) ```

Question 32

Developing message (5)

Answer 32

``` Product- and service-related messages 2 Brand-related messages 3 Price-related messages 4 Incentives-related messages 5Distribution-related messages ``` think 7 Ts!

Question 33

Media budget strategies (5)

Answer 33

1 goal driven (the click funnel stuff) 2 percentage of sales (budget is a percentage of sales revenue) 3 competitive parity (budget at par with that of a key competitor) 4 legacy (budgeting based on prior year expenditures) 5 affordability (setting the budget based on resources available for promotional activities.)

Question 34

Types of media

Answer 34

``` 1 Advertising 2 Public relations and social media 3 Direct marketing 4 Personal selling 5 Event sponsorship 6 Product-based communication 7 Product samples and free trials ```

Question 35

Creative Solution

Answer 35

The creative solution involves translating the company’s message into the language of the selected media format, such as television, print, radio, online, and point of purchase. Creative solutions vary on two main factors: their appeal and execution style

Question 36

Appeal

Answer 36

two types of appeals: information-based and emotion-based. Information-based appeals typically rely on methods such as factual presentations (straightforward presentation of the relevant information), demonstrations (illustration of the offering’s key benefits in a staged environment), slice-of-life stories (illustration of the offering’s key benefits in everyday use), and testimonials (praise by an individual based on his or her experience with the offering and endorsements by ordinary users or celebrities). In contrast, emotion-based appeals typically play on emotions such as love, romance, humor, and fear.

Question 37

Execution Style

Answer 37

method used to convey a particular appeal using the language of the selected media format. Style decisions are media specific. Thus, print advertising involves decisions concerning the copy (wording of the headline and the body text), visual elements (pictures, photos, graphics, and logos), format (size and color scheme), and layout (the arrangement of different parts of the advertisement). Radio advertising involves decisions dealing with the text (wording of the dialogue and narration), audio (music, dialogue, and sound effects), and format (length). Television advertising involves decisions concerning the visual elements (imagery), text (wording of the dialogue, voice-over narration, and printed text), audio (music, dialogue, and sound effects), and format (length).