Exam 1: The World of Integrated Marketing Communication

Outline the four main components of a marketing mix. List two factors that must be considered for each component. Describe advertising's role in the marketing mix.

To be effective, brand differentiation must be based on tangible as well as intangible differences between brands.

Scenario 1-1 In fall 2004, Sears and Kmart announced a merger of their operations. The new company, known as Sears Holdings, will be based at Sears headquarters outside Chicago. While the new company will operate both Sears and Kmart stores, "several hundred" Kmarts will be converted to Sears. The companies currently operate about 3,500 stores combined. Kmart is known for its in-store special offers which it signals with blue lights. Recently Kmart has been losing ground to industry goliath Wal-Mart Stores Inc. The Troy, Michigan based Kmart has a history stretching back more than 100 years from its start as Kresge dime stores. To compete, Kmart has introduced Super K Stores which offer thousands of name brand products for personal use, home and auto, as well as full service grocery stores. (Jackie Sindrich and Michael Erman, "No Sure Way Seen to Keep Kmart's Blue Light Shining," Reuters, AOL Online, January 4, 2002. Parija Bhatnagar and Chris Isodore, "The Kmart Sears Deal,"CNNMoney, money.cnn.com, November 17, 2004.) -(Scenario 1-1) The use of a direct mail flyer with free incentive "blue light" and free offers enticing potential customers to come into the new store, the blue lights during the shopping trip, the purchase of Super K blue light specials and merchandise and blue light logo items are all coordinated to build brand awareness, identity and preference. This is advertising technique is called:

Titleist, the manufacturer of golf balls, runs a commercial featuring professional golfer John Daly. A group of people watching the commercial at a country club all interpret the commercial in a similar manner. When members of an audience share a similar interpretation of an advertisement like this, it is most likely the result of

Scenario 1-4 At Sam-Mart, a huge discount retailer, sales are around $70 billion a year and rising. In addition, the company employs more than 500,000 people worldwide. Sam-Mart stores carry just about every major brand imaginable. In addition, Sam-Mart carries its own brand called Wally's Choice. The Wally's Choice label is on products like cookies, potato chips, paper towels, and other personal and household products. -(Scenario 1-4) In one city, Biggies', a competing retail outlet, opens a store across the street from a Sam-Mart. A battle for business ensues. One of the tools both chains use in their fight for customers is advertising. Sam-Mart runs three different commercials that stress the point that it has very low prices. Biggies' runs three different commercials that stress the point that it has very friendly salespeople. Which one of the following practices are the two stores engaging in?

An incumbent senator appears on television, saying that she should be re-elected because she has brought jobs to the state. Obviously, this effort is mass mediated and is an attempt to persuade. For it to be considered advertising, which other condition must be met?

The communication production process produces the content of all advertising messages. The communication reception process produces the same interpretations among all audience members.

Scenario 1-3 Sony has just begun to aggressively promote its new digital music player, the NW-HD1. This is the latest version of Sony's ubiquitous Walkman portable music player. Commercials feature Macy Gray singing a cover of Aerosmith's "Walk This Way." But can Sony supplant Apple's wildly popular iPod in the hearts of music lovers? That will be a tough challenge. To many of teens and young adults, the Walkman is like, you know, so 1987. "Today's generation thinks of the iPod the way that a generation ago thought of the Walkman," said Gartenberg. "Apple has built a phenomenally strong brand. People are not saying, 'I want an MP3 player.' They're saying, 'I want an iPod.'" Baker agrees that Sony, despite its pedigree as a portable music pioneer, has little chance of making a major splash in the digital music area anytime soon. (Paul R. LaMonica, "Walk this Way," CNN Money, September 15, 2004.) -(Scenario 1-3) The fundamental purpose to be served by the marketing of NW-HD1s and affordable music players by Sony retailers is to:

Mass communication has two major components: production and reception.

Explain the evolution of Integrated Marketing Communications since the 1990s and why IMC is crucial to brand success.

Integrated Marketing Communication

You have been placed in charge of all promotion for a product that has common appeal in different cultures around the world. You will most likely engage in

Motorola's worldwide advertising campaign for cell phones is an attempt to provide a common theme and presentation in all markets including consumers in North America, Europe, Asia, Africa, Australia, and South America. This is an example of a global advertising campaign.

CampusTown Foods, a local grocery store, has decided to run a series of advertisements. For this to be considered an advertising campaign, which one of the following conditions must be met?

Scenario 1-3 Sony has just begun to aggressively promote its new digital music player, the NW-HD1. This is the latest version of Sony's ubiquitous Walkman portable music player. Commercials feature Macy Gray singing a cover of Aerosmith's "Walk This Way." But can Sony supplant Apple's wildly popular iPod in the hearts of music lovers? That will be a tough challenge. To many of teens and young adults, the Walkman is like, you know, so 1987. "Today's generation thinks of the iPod the way that a generation ago thought of the Walkman," said Gartenberg. "Apple has built a phenomenally strong brand. People are not saying, 'I want an MP3 player.' They're saying, 'I want an iPod.'" Baker agrees that Sony, despite its pedigree as a portable music pioneer, has little chance of making a major splash in the digital music area anytime soon. (Paul R. LaMonica, "Walk this Way," CNN Money, September 15, 2004.) -(Scenario 1-3) To have the greatest opportunity for success in selling NW-HD1s, Sony must rely on a number of different tools available in the marketing mix. Which one of the following is true?

Which of the following is NOT an element of the marketing mix?

A target audience is the whole group of consumers that will see an advertisement or an advertising campaign.

Albertson's is a retail chain that sells groceries. It has stores in 31 western, northwestern, mid-western and southern states. It is most likely to use national advertising to reach its target market.

Scenario 1-6 Gillette M3Power-a MACH3 razor innovation-is a groundbreaking, powered wet shaving system for men that delivers a totally new shaving experience resulting in Gillette's best shave ever. M3Power builds on the heritage of MACH3 and combines Gillette's latest and best razor and blade technologies. M3Power outperforms all other blades and razors in closeness, comfort and safety during and after the shave. Gillette M3Power features other innovations beyond power: new blades featuring PowerGlide™-an enhanced blade coating for incredible glide and maximum comfort, a moisturizing Indicator Lubrastrip™ and a technologically-advanced handle (www.Gillette.com). Recently, Gillette Co. direct-mailed users of competing male products, throughout the United States, a free MACH3Power razor with blades and a coupon offer. In addition, a series of coordinated advertisements to male consumers were developed to increase awareness of this product. Gillette said that its goal was to have a market awareness rate of 70% within four months. -(Scenario 1-6) The series of coordinated advertisements and promotional tools to male consumers for Gillette's Mach3Power razor is best described as

Scenario 1-1 In fall 2004, Sears and Kmart announced a merger of their operations. The new company, known as Sears Holdings, will be based at Sears headquarters outside Chicago. While the new company will operate both Sears and Kmart stores, "several hundred" Kmarts will be converted to Sears. The companies currently operate about 3,500 stores combined. Kmart is known for its in-store special offers which it signals with blue lights. Recently Kmart has been losing ground to industry goliath Wal-Mart Stores Inc. The Troy, Michigan based Kmart has a history stretching back more than 100 years from its start as Kresge dime stores. To compete, Kmart has introduced Super K Stores which offer thousands of name brand products for personal use, home and auto, as well as full service grocery stores. (Jackie Sindrich and Michael Erman, "No Sure Way Seen to Keep Kmart's Blue Light Shining," Reuters, AOL Online, January 4, 2002. Parija Bhatnagar and Chris Isodore, "The Kmart Sears Deal,"CNNMoney, money.cnn.com, November 17, 2004.) -(Scenario 1-1) A brand new Super K Store sends a direct mail piece to 500 households in a radius of one mile of the new store. In the flyer, the store announces the opening of its grocery department and offers several incentive specials including a free gallon of milk, a free loaf of bread and a dozen eggs to entice these potential customers to visit the store. This direct mail piece: