Second semester

Question 1

Communication mix goals

Answer 1

The specific blend of communications tools that the company uses to communicate customer value and build customer relationships

Question 2

Communication goal focus AIDA

Answer 2

Awareness: Making consumers aware that the offering exists

Interest: Simulating interest in the offering

Desire: Creating or strengthening customers preference by enhancing the offerings attractiveness

Action: Triggering purchasing or other actions e.g. contacting the company for information

Question 3

Three parts of customer value

Answer 3

Functional value
Psychological value
Monetary value

Question 4

Outbound media

Answer 4

Advertising, public relations, social media, direct marketing, personal selling, event sponsorship, product placement and product samples and free trials

Question 5

Inbound media

Answer 5

Online research, personal interaction, phone communication, online interactive forums, and Mail/email

Question 6

Advertising pros:

Answer 6

Reach: Size of the audience that was exposed to the ad at least once (absolute or percentage)

Impressions: A single exposure of an advertisement to one person

Question 7

Endowment effect

Answer 7

Perceived value goes up with ownership

Question 8

Advertising cons

Answer 8

Difficult in estimating advertisement effectiveness

High expenditures
Limited Persuasiveness

Question 9

Awareness related effects:

Answer 9

Advertising reach, Message comprehension, changes in unlaided brand recall, changes in top of mind awareness, changes in brand recognition

Question 10

Interest related effects

Answer 10

Online search, banner click-through, store visits (online and offline), online word of mouth volume

Question 11

Preference related effects

Answer 11

Changes in brand association, changes in brand attitudes, changes in choice share

Question 12

Advertising elasticity

Answer 12

Percentage increase in sales or market share for a 1% increase in advertising
 Monetary spending, share in the market, gross rating points (reach x mean frequency)

Question 13

How to get high rank on google auction

Answer 13

Second price auction or ad quality

Question 14

Second price auction

Answer 14

Everyone submits a bid, the one with the highest bid is the winner

Question 15

Effect of comscores

Answer 15

Lead to higher sales

ex. People who like starbuckss facebook page or who had a facebook friend who liked the page, spend 8% more and transacted 11% more frequently

Question 16

Self selection problem

Answer 16

People are not randomly assigned to like a page

Question 17

What online communications benefit a company

Answer 17

Google ads, social media (and likes), community websites

Question 18

Public relations pros

Answer 18

Create engagement and potentially high effectiveness

Question 19

Public relations cons

Answer 19

Coordination issues, separate departments, different audiences and different performance metrics