Exam 1: Marketing Communications and Campaign Planning

A strategy is defined as a broad aim or a desired outcome.

The first marcoms planning step is to set campaign objectives.

Moran's method involves comparing relative price with category profit from week to week to determine the brand-item's brand equity.

The buyer response steps - exposure, ad or promotion processing, brand communication effects, and target audience action - cut across the three levels of effects.

Three levels of effects occur simultaneously during marketing communications: ad or promotion processing, brand communication effects, and customer decision stages.

In the U.S. economy, more money is spent on main-media advertising than on other marcoms activities.

A direct-response ad can achieve all five communication effects in a single ad exposure.

Promotions should activate the customer to immediately purchase a brand-item and provide meaningful communication about the brand.

A goal is an objective made specific as to degree and time.

Brand and brand-item marcoms are not only trying to sell the brand to the customer but must communicate about the brand.

Brand-building advertising is the largest form of advertising.

The purpose of advertising is to be "mind-turning."

A brand item that has low uniqueness equity demonstrates downside elasticity by increasing sales when its relative price is above the category average.

There are six marcoms planning steps.

Manufacturers direct all their marcoms to consumers.

Ad processing responses are different from promotion offer processing responses.

Brand communication effects are likely to operate as a hierarchy during choice.

Brand communication effects are acquired as a "hierarchy of effects."

The buyer response steps are based on probabilities.

A sharp increase in sales prompted by a slight price reduction is an indication of high value equity.