Chapter 1

OVERVIEW OF INTEGRATED MARKETING COMMUNICATIONS AND THE MARCOM PROCESS

. TRUE/FALSE
1. Marketing communications play an important role for all companies. ( ) 2. The marketing communications component of the marketing mix has decreased dramatically in importance in recent decades. ( ) 3. Marketing and communications are virtually inseparable. ( ) . The use of marketing communications is not appropriate for organi!ations delivering not"for"profit services. ( ) #. Most marketing communications occur at the brand level. ( ) $. %rands perform a critical strategic role by providing a key means for differentiating one company&s offering from competitive brands. ( ) '. Many companies treat the various communication elements( such as advertising( sales promotions( public relations( and so on( as virtually separate activities rather than integrated tools that )ork together to achieve a common goal. ( ) *. +nteractive marketing communications( or simply +M,( is the philosophy and practice of carefully coordinating a brand&s sundry marketing communications elements. ( ) -. The +M, approach uses the .inside"out/ approach in identifying communication vehicles. ( ) 10. The use of integrated marketing communications is restricted to the mass media. ( ) 11. The terms touch point and contact are used interchangeably to mean any message medium capable of reaching target customers and presenting the brand in a favorable light. ( ) 12. ,oordination of messages and media is absolutely critical to achieving a strong and unified brand image and moving consumers to action. ( ) 13. 1 positioning statement is the key idea that encapsulates )hat a brand is intended to stand for in its target market&s mind. ( ) 1 . 2uccessful marketing communication re3uires building relationships bet)een brands and their consumers4customers. ( ) 1#. The mixture of communications elements and the determination of messages( media( and momentum are all fundamental decisions in the brand"level marcom decision process. ( ) 1$. The various types of brand"level marcom decisions include fundamental decisions and implementation decisions. ( ) 1'. The ob5ective of marketing communications is to enhance brand e3uity as a means of moving customers to favorable action to)ard the brand. ( ) 1*. 1 brand has no e3uity if consumers are unfamiliar )ith it. ( ) 1-. 1 brand&s name is the central idea that encapsulates a brand&s meaning and distinctiveness relative to competitive brands in the product category. ( )
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20. The ultimate ob5ective of successful marketing communications is to cut costs. ( )

. MULTIPLE CHOICE
1. The marketing mix for a brand consists of 6666. a. product b. price and place c. promotion d. 1ll of these are correct. 2. 7hich of the follo)ing is 89T a form of media advertising: a. sales promotions b. radio c. maga!ines d. television 3. ,oupons( trade sho)s( buying allo)ances( premiums( and price"off deals are all examples of 6666. a.media advertising b. promotions c.place advertising d. point"of"purchase advertising . 7hich of the follo)ing could be a brand: a.product b. service c. person d. 1ll of these could be a brand. #. ,urrent marketing philosophy holds that 6666 is absolutely imperative for success. a.direct marketing b. e"mail c. integration d. coupons $. The ultimate goal of integrated marketing communications is to 6666. a.increase brand a)areness b. affect the behavior of the targeted audience c.learn ho) to outsell the competition d. lo)er production costs '. 7hat is achieved )hen multiple methods are used in combination )ith one another yielding more positive communication results than )hen the tools are used individually: a.synergy b. duplicity c. multiplicity d. redundancy *. 7hich of the follo)ing is 89T a key feature of +M,: a. The customer represents the starting point for all marketing communications activities. b. %rand managers and their agencies should be amenable to using various marketing communication tools. c.Multiple messages must speak )ith a single voice. d. The ultimate goal is to influence brand a)areness and enhance consumer attitudes to)ard the brand. -. 1 key feature of +M, is that the process should 6666. a.use an .inside"out/ approach b. be restricted to only one or a select number of communication media c.use the same media to reach all target audiences to improve efficiency d. start )ith the customer or prospect and then )ork back to the brand communicator in determining the most appropriate messages and media 10. 7hat does the phrase( .speak )ith a single voice(/ mean: a. ,oordination of messages and media is absolutely critical to achieving a strong and unified brand image and moving consumers to action. b. ;each the target audience efficiently and effectively using )hatever touch points are most appropriate.
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c. 2uccessful marketing communications re3uires building relationships bet)een brands and their consumers4customers. d. 1ll marketing communication elements should use the same endorser so that consumers do not get confused. 11. <aren is attempting to put into )ords the key idea that encapsulates )hat her company&s brand is intended to stand for in its target market&s mind. <aren is )riting a 6666. a. relationship statement b. creative brief c. positioning statement d. contact brief 12. =re3uency( loyalty( or ambassador programs and creating brand experiences that make positive and lasting impressions are )ays to 6666. a. speak )ith one voice b. create synergy c. build customer4brand relationships d. start )ith the customer4prospect 13. 7hat is the greatest obstacle to implementing integrated marketing communications: a. There is a lack of interest in +M, by top management. b. =e) providers of marketing communication services have the far"ranging skills to plan and execute programs that cut across all ma5or forms of marketing communications. c. >ittle can be gained by coordinating the various marketing communications elements. d. The cost for implementing an +M, program is difficult to 5ustify. 1 . 7hich of the follo)ing is a fundamental decision in the brand"level marcom decision process: a. targeting b. positioning c. budgeting d. 1ll of these are fundamental decisions. 1#. ?ulie and her department are responsible for making brand"level fundamental and implementation marcom decisions. 7hat are the expected outcomes of these decisions: a. increasing sales and profits b. enhancing brand a)areness and attitudes c. enhancing brand e3uity and affecting behavior d. increasing purchase intentions and affecting behavior 1$. 1 brand&s 6666 represents the key feature( benefit( or image that it stands for in the target audience&s collective mind. a. position b. image c. e3uity d. name 1'. ?oan <aufman is a senior manager of a large conglomerate. 2he decides ho) much money is allocated to each subunit. This is an example of 6666 budgeting. a. top"do)n b. bottom"up c. bottom"up4top"do)n d. top"do)n4bottom"up 1*. The most fre3uently used budgeting method is 6666. a. top"do)n (T@)
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b. bottom"up (%A) c. top"do)n4bottom"up4top"do)n (T@%AT@) d. bottom"up4top"do)n (%AT@) 1-. Barvey is a brand manager for a national brand of soft drinks. Be is making the implementation decisions in the marcom decision process( and he )ants a marcom tool that is most capable of directly affecting consumer behavior. 7hich tool should he use: a. advertising b. sales promotion c. publicity d. events 20. 7hich of the follo)ing is an example of a communication outcome: a. increase sales to grocery stores by 10 percent b. increase total sales by 1# percent c. maintain existing sales levels in ?apan d. increase brand a)areness by 1# percent

. DISCUSSIONS
1. Cxplain the five key features that undergird the philosophy and practice of integrated marketing communications. 2. @ebra is the brand manager for Tide laundry detergent( marketed by Drocter E Famble( and she is making the brand"level fundamental decisions in the marcom decision process. @iscuss )hat she )ill be considering.

KEY: . TRUE/FALSE
1 1 1 T T 2 1 2 = T 3 1 3 T T 1 = T # 1 # T = $ 1 $ T T ' 1 ' T T * 1 * = T 1 = = 1 0 2 0 = =

. MULTIPLE CHOICE
1 d 2 1 2 a c 3 1 3 b b 1 d d # 1 # c c $ 1 $ b a ' 1 ' a a * 1 * d d 1 d b 1 0 2 0 a d

11 c

. DISCUSSIONS
1. 182G The five key +M, features areG (1)The customer represents the starting point for all marketing communications activities. The +M, approach avoids an .inside"out/ approach (from company to customer) in identifying communication vehicles and instead starts )ith the customer

(.outside"in/) to determine those communication methods that )ill best serve the customers& information needs and motivate them to purchase the brand. The point of this feature is that brand managers and their agencies should not restrict themselves to only one set of communication media. (2)%rand managers and their agencies should be amenable to using various marketing communication tools. That is( carefully select those tools that are most appropriate for the communications ob5ective at hand. Dractitioners of +M, need to be receptive to using all forms of touch points( or contacts( as potential message delivery channels. The key feature of this +M, element is that it reflects a )illingness on the part of brand communicators to use any communication outlets that are appropriate for reaching the target audience. (3)Multiple messages must speak )ith a single voice. +nherent in the philosophy and practice of +M, is the demand that a brand&s assorted communication elements must all strive to present the same message and convey that message consistently across diverse message channels( or points of contact. ,oordination of messages and media is absolutely critical to achieving a strong and unified brand image and moving consumers to action. +n general( the single"voice principle involves selecting a specific positioning statement for a brand. ( )%uild relationships rather than engage in flings. 1 relationship is an enduring link bet)een a brand and its customers. 2uccessful relationships bet)een customers and brands lead to repeat purchasing and perhaps even loyalty to)ard a brand. 9ne )ay to build brand4customer relationships is the use of fre3uency( loyalty( or ambassador programs. ;elationships also are nurtured by creating brand experiences that make positive and lasting impressions( such as special events. (#)@on&t lose focus of the ultimate ob5ectiveG affect behaviorH Marketing communications must do more that 5ust influence brand a)areness or enhance consumer attitudes to)ard the brand. The ob5ective( in other )ords( is to move people to action. 2. 182G The fundamental decisions in the brand"level marcom decision process includeG (1)Targeting. Targeting allo)s marketing communicators to deliver messages more precisely and to prevent )asted coverage to people falling outside the intended audience. 2election of target segments is a critical step to)ard effective and efficient marketing communications. ,ompanies identify potential target markets in terms of demographic characteristics( lifestyles( product usage patterns( and geographic considerations. Meaningful market segments generally represent consumers )ho share a combination of characteristics and demonstrate similar behavior. (2)Dositioning. 1 brand&s position represents the key feature( benefit( or image that it stands for in the target audience&s collective mind. @ebra must decide on Tide&s positioning statement( )hich is the central idea that encapsulates the brand&s meaning and distinctiveness vis"a"vis competitive brands in the laundry detergent category. (3)2etting 9b5ectives. Marketing communicators& decisions are grounded in the underlying goals( or ob5ectives( to be accomplished for a brand.
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( )%udgeting. =inancial resources are budgeted to specific marcom elements to accomplish desired ob5ectives. @ifferent budgeting methods include top"do)n budgeting (T@)( bottom"up budgeting (%A)( or a combination of the t)o (%AT@ or T@%A).

Dublic relations is defined as being direct connections )ith carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Iour 1ns)erG True ,orrect 1ns)erG =alse

The statement is a definition of direct marketing.

2.

1ny paid form of nonpersonal presentation and promotion of ideas( goods( or services by an identified sponsor is a good definition for sales promotion. Iour 1ns)erG =alse

This )ould be a good definition for advertising.

3.

1 good definition of direct marketing )ould

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be that it is direct communications )ith carefully targeted individual consumers to obtain an immediate response. Iour 1ns)erG True

The definition is a correct appraisal of direct marketing.

Market fragmentation has resulted in media fragmentation. Iour 1ns)erG True

This is a correct relationship.

#.

1 JpullJ promotion strategy )ould be directed to)ard consumers rather than to)ard marketing intermediaries. Iour 1ns)erG True

This is a correct statement.

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The three primary advertising ob5ectives include informative( persuasive( and competitive advertising. Iour 1ns)erG True ,orrect 1ns)erG =alse

The correct ob5ectives are informative( persuasive( and reminder advertising.

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The advertising budget form that sets the promotion budget at a certain percentage of current or forecasted sales is called the percentage of sales method. Iour 1ns)erG =alse ,orrect 1ns)erG True

This is a correct analysis of the percentage of sales method.

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1n advertising execution style that sho)s one or more JtypicalJ people using

the product in a normal setting is called personality symbol. Iour 1ns)erG True ,orrect 1ns)erG =alse

The statement identifies an execution style called slice of life.

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=re3uency is a measure of the percentage of people in the target market )ho are exposed to the ad campaign during a given period of time. Iour 1ns)erG True ,orrect 1ns)erG =alse

The statement describes the concept of reach.

10.

The advantages of online advertising as a ma5or media type )ould include high selectivity( lo) cost( immediacy( and interactive capabilities. Iour 1ns)erG =alse ,orrect 1ns)erG True

These are correct advantages of online advertising.

11.

1dvertising agencies )ere started in the mid" to"late 1-#0s by salespeople and brokers )ho )orked for the media and received a commission for selling advertising space to companies. Iour 1ns)erG True ,orrect 1ns)erG =alse

The statement is true except that advertising agencies began in the mid"to"late 1*00s.

12.

2amples( coupons( and price packs are all examples of sales promotion. Iour 1ns)erG True

1ll of the examples are forms of sales promotion.

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13.

1 s)eepstakes calls for consumers to submit an entry (a 5ingle( guess( and suggestion) to be 5udged by a panel that )ill select the best entries. Iour 1ns)erG =alse

The description is more appropriate to a contest than to a s)eepstakes.

1 .

9ne of the functions performed by a public relations department or public relations agency is that of lobbying. Iour 1ns)erG True

This is a public relations function.

1#.

+t is the responsibility of the advertising department )ithin a firm to develop corporate identity materials such as stationery( logos( brochures( signs( business forms( business cards( and uniforms.

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Iour 1ns)erG True ,orrect 1ns)erG =alse

The items listed are normally the responsibility of the public relations department. 1. 2elling is one of the ne)est of the business professions( having been made popular at the turn of the t)entieth" century. Iour 1ns)erG True ,orrect 1ns)erG =alse

2elling is one of the oldest professions in the )orld.

2.

The salesperson can be both an order taker and an order getter. Iour 1ns)erG True

This is a true statement about selling.

3.

The first step in any ma5or sales force management decision is to recruit and select salespeople. Iour 1ns)erG =alse

@esigning sales force strategy and structure is the first step in any ma5or sales force management decision.

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The sales force structure that focuses on exclusive geographic areas as a means for splitting the sales force into )orking units )ould be the customer sales force structure. Iour 1ns)erG =alse

The statement describes a territorial sales force structure.

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Technical support people )ould be considered to be part of a companyKs inside sales force. Iour 1ns)erG True

These people are considered to be part of the inside sales force.

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1s discussed in the text( 8abisco&s experience )ith training its sales people provided a large( positive cost" to"benefit ratio( by improving productivity far beyond the cost of the training. Iour 1ns)erG True

They calculated incremental sales to be L1*3(000 per sales representative( and L31(000 in additional profit per person.

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1 recent survey of sales force compensation sho)ed that '0 percent of all sales forces use straight commission as the primary form of sales compensation. Iour 1ns)erG True ,orrect 1ns)erG =alse

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'0 percent of all sales forces use a combination plan of straight salary( incentives( and commissions to re)ard salespeople.

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%ased on the evaluation provided in the text concerning ho) salespeople spend their time( the average salesperson spends the least amount of their time making service calls. Iour 1ns)erG True

2alespeople only spend 12.' percent of their time making service calls.

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Derhaps the fastest gro)ing sales force technology tool is the cellular telephone. Iour 1ns)erG =alse

Food thinkingH The fastest gro)ing technology tool is the +nternet.

10.

The first step in the effective selling process according to the model presented in the text )ould be to prospect and 3ualify. Iour 1ns)erG True

This is the first step in the model.

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The last step in any good effective selling process )ould be the close. Iour 1ns)erG True ,orrect 1ns)erG =alse

The last step of the effective selling process is to follo)" up.

12.

@irect marketing relies on standardi!ed messages offered through traditional intermediaries. Iour 1ns)erG True ,orrect 1ns)erG =alse

The phrase describes the older and vanishing mass marketers rather than the ne) )ave of direct marketers.

13.

9ne of the advantages of using direct marketing is that it is private. Iour 1ns)erG =alse ,orrect 1ns)erG True

@irect marketing is convenient( easy to use( and private.

1 .

1 customer database could contain geographic( demographic( psychographic( and behavioural data. Iour 1ns)erG True

1 customer database could house all of the forms of data mentioned.

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+f a company )as to place information and ordering machines in stores( airports( malls( and other locations( it )ould be using a form of direct marketing called vending machine marketing. Iour 1ns)erG True ,orrect 1ns)erG =alse

The sentence describes kiosk marketing. <iosks do not dispense products as does vending machine marketing.

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