Exam 8: Planning Advertising and Integrated Brand Promotion

You are the marketing manager for an online merchandiser of a diverse line of casual sportswear,athletic clothing,and outerwear for both men and women.Write a brief memo to your advertising agency.In the memo,explain why you'd like the agency to abandon its recommendation for a share-of-market strategy in creating the budget.Give several reasons why this approach is unfavorable.Then explain why you want the agency to adopt an objective-and- task method.Also,there are four main steps that must be taken to implement this approach after advertising objectives are determined.List as many as you can.(It is not necessary to describe the steps in detail.)

An advertising response function is a mathematical relationship that associates dollars spent on advertising and sales generated.

Which is a communication objective? 

Apple uses a wide array of options to create interest and communicate the value proposition for its brands like the iPad and iPhone.Which of the following would NOT be included in Apple's advertising plan? 

Viewing advertising strictly from a communications perspective opens marketers to a broader range of advertising strategies.

Scenario 8-1 You are owner of a 19-person advertising agency in a major market. You've been invited to pitch the Girl Powers account, the largest female-only fitness center chain in the region, one that could quickly grow into a national franchise. If you land the account, it will be your biggest revenue producer by far. You'll be able to staff up, move to a nicer space, and buy some decent office furniture. It also will put you, personally, in a position to make money by selling out to a larger agency someday. Considering the importance of the pitch to Girl Powers execs, you have decided to spearhead the pitch yourself. -(Scenario 8-1)It is ultimately decided that the ad budget will base spending on what needs to be accomplished from a communications standpoint.This would be the: 

What is the first step in implementing the objective-and-task approach? 

The various forms of brand promotion that will supplement the advertising effort each need to be spelled out in the ad plan.

Scenario 8-3 After working as an account executive in an advertising agency for 20 years, you've decided you want to own your own business. You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years. He sells you the store and its entire inventory, but with one warning-he wasn't much on paperwork, so there won't be a lot of records to be found. You buy the store and begin to create your ad plan. -(Scenario 8-3)You decide that as soon as you are financially able,you will hire an agency to put together an advertising plan for you.Unfortunately,you realize that even if you do hire an agency,you will still have to provide the agency with statements regarding: 

Scenario 8-4 American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. -(Scenario 8-4)American Express has decided to do a specific type of analysis that focuses on reach,frequency,time frame,production costs,media expenditures,and other specific elements.These factors are always included in a(n)                analysis.

There is only one way to measure success in advertising and integrated brand promotion.

Scenario 8-2 Following the announcement that the world's largest e-tailer, Amazon.com, had made a profit for the first time since it started business in the early 1990s, the company saw more than 90 percent of its market value disappear as part of the dot-com collapse. It is questionable whether or not Amazon figured out a profitable business model after changing its tune several times over those early years. Then it began circling back somewhat to an earlier focus on becoming the Walmart of the Internet. It said it wanted to sell huge volumes of merchandise cheaply, and in the process eke out enough of a profit to satisfy Wall Street. Although investors had to wait some time for the e-tailer to work out the kinks, and it's uncertain how much longer they'll remain patient, Amazon's mainstay retail business may see further improvements as it grows. As we all have now witnessed, unlike brick-and-mortar retailers who must build new stores, stock them, and hire people to staff them, Amazon has been able to open new stores with minimal additional cost. Some years ago, it reported turning over its inventory 17 times a year-close to double that of traditional retailers at the time. And on average, it reported having gotten paid 32 days before it must pay its suppliers-in essence, providing millions of dollars in cash flow. -(Scenario 8-2)When dealing with its advertising agency,Amazon wants a strategy that maximizes media expenditures to target the appropriate markets.It is Amazon's primary responsibility to bring forth a well-articulated statement of the brand's                ,a key concept in reaching and informing the customer through promotion.

In a  ______, the objectives state what the advertiser intends to accomplish in headlines,subheads,and text,while the methods describe how the objectives will be achieved.

The last element to appear in an advertising plan is the                 

Scenario 8-4 American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. -(Scenario 8-4)American Express marketers say they do not use the ______ advertising budgeting method,because if sales begin to decrease in this segment,so will their budget.

Scenario 8-5 Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market. In test marketing, many consumers liked the product, but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis. -(Scenario 8-5)Helene Curtis has once again decided to use objective-and-task budgeting to set the advertising expenditures.This is the only budgeting method that focuses specifically on advertising spending: 

Scenario 8-3 After working as an account executive in an advertising agency for 20 years, you've decided you want to own your own business. You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years. He sells you the store and its entire inventory, but with one warning-he wasn't much on paperwork, so there won't be a lot of records to be found. You buy the store and begin to create your ad plan. -(Scenario 8-3)Your goals are very important at this stage,and you want to avoid budgeting methods that neglect to consider goals.This means that you can cross off one approach that is notorious for failing to relate advertising dollars to advertising objectives,and since you have no past records,this method would be impossible to implement anyway.Which of the following methods is this? 

Scenario 8-4 American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. -(Scenario 8-4)Within the ______ portion of its advertising plan,American Express suggests that the most important  outcome of the campaign will be for Visa customers to start switching to American Express in this market segment.

Scenario 8-5 Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market. In test marketing, many consumers liked the product, but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis. -(Scenario 8-5)The build-up analysis will also address costs not listed elsewhere,particularly those associated with advertising to the trade and doing specialized research.Which factor does this involve? 

Scenario 8-5 Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market. In test marketing, many consumers liked the product, but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis. -(Scenario 8-5)The advertising agency for Helene Curtis is in the process of doing a build-up analysis.This means it is: