MKTG 301 ROTH EXAM 3 QUESTIONS AND ANSWERS
Promotional Mix Goals - CORRECT ANSWER✅✅1. to persuasively communicate customer value and
build customer relationships
2. to deliver a clear, consistent and compelling message
"integrated marketing communications"
ex: Apple Store/commercials/print -its always simple
ex: kit Kat bar "have a break"-everyone deserves a break
Promotional Mix Tools - CORRECT ANSWER✅✅1. Advertising
2. Public Relations
3. Personal Selling
4. Sales Promotion
5. Direct and Digital (online) Marketing
What is advertising? - CORRECT ANSWER✅✅Any paid form of non personal presentation and
promotion of ideas, goods, or services by an identified sponsor.
Advertising Key Characteristics - CORRECT ANSWER✅✅Paid
non personal communication
identified sponsor
broadcasting - CORRECT ANSWER✅✅cbs, cnn, large audiences
narrowcasting - CORRECT ANSWER✅✅thinking about the target audience and how your gonna reach
them
ex: advertising on more narrow channels, such as MTV or animal planet
,Madison and Vine - CORRECT ANSWER✅✅product placing within tv, movies, etc.
cost effective, higher reach
A term that has come to represent the merging of advertising and entertainment in an effort to break
through the clutter and create new avenues for reaching consumers with more engaging messages
Like new york and Hollywood, advertising in movies
Ex) coca cola cups on America's got talent
"Advertainment": ads are so cool people WANT to watch them, like the super bowl!!
Paid Media - CORRECT ANSWER✅✅when the company pays to commercial
Traditional advertising; billboards, posters, etc.
ex: kit Kat advertising on bridge so when bridge opens the kit Kat breaks
Owned Media - CORRECT ANSWER✅✅what the company owns
Things a company can change/update often; websites, social media, etc.
Shared Media - CORRECT ANSWER✅✅Passing along from consumer to consumer; People to People,
"sharing" on Facebook, retweet, shared post or re post etc.
Earned media - CORRECT ANSWER✅✅When an actual news agency/magazine/radio show/ tells the
world; The Today Show, Ellen, etc.
ex: a tweet went viral about Kit Kat bar so they were able to make a twitter poll about it etc..
,Advertising Objectives - CORRECT ANSWER✅✅informative advertising
persuasive advertising
reminder advertising
Informative Advertising - CORRECT ANSWER✅✅Communicating customer value while building a brand
and company image and correcting false impressions
Build primary demand (knowledge)
Good for introducing a new product category (brand new product)
Ex) Lysol brush explaining how it works
Ex) oxy clean commercial with detergent ball
Persuasive Advertising - CORRECT ANSWER✅✅Build secondary demand (preference-prefer this brand
over another), while encouraging to switch to a brand and changing customer perceptions of product
value
Good for direct or indirect brand comparisons
Ex) side by side bounty commercials
Ex) hefty trash bags are stronger and cheaper than glad trash bags
Ex) samsung "our battery last longer than apple"
can include competitor but not always
Reminder Advertising - CORRECT ANSWER✅✅Maintaining customer relationships, and keeping the
brand in a customers mind
, Increase frequency of purchase
Good for mature products
Ex) Absolut commercial, reminds you thru seasonal campaign to keep buying vodka
Ex) old spice commercial, different representation of old spice
cash cow - remind that these products are still out there
Advertising Budget Decisions - CORRECT ANSWER✅✅affordable method
percentage-of-sales method
competitive-party method
objective-and-task method
affordable method - CORRECT ANSWER✅✅Setting the promotion budget at the level management
thinks the company can afford.
Small businesses do this a lot to make sure they don't spend more than what they have
Bad though because it places promotion as last obligation of spending, and sometimes advertising is
critical
percentage-of-sales method - CORRECT ANSWER✅✅Setting the promotion budget at a certain
percentage of current or forecasted sales or as a percentage of the unit sales price.
Based on the availability of funds rather than on opportunities
what were our 2nd quarter sales and what can we spend on next quarter sales? (if its a brand new
product you will have to spend more)
Promotional Mix Goals - CORRECT ANSWER✅✅1. to persuasively communicate customer value and
build customer relationships
2. to deliver a clear, consistent and compelling message
"integrated marketing communications"
ex: Apple Store/commercials/print -its always simple
ex: kit Kat bar "have a break"-everyone deserves a break
Promotional Mix Tools - CORRECT ANSWER✅✅1. Advertising
2. Public Relations
3. Personal Selling
4. Sales Promotion
5. Direct and Digital (online) Marketing
What is advertising? - CORRECT ANSWER✅✅Any paid form of non personal presentation and
promotion of ideas, goods, or services by an identified sponsor.
Advertising Key Characteristics - CORRECT ANSWER✅✅Paid
non personal communication
identified sponsor
broadcasting - CORRECT ANSWER✅✅cbs, cnn, large audiences
narrowcasting - CORRECT ANSWER✅✅thinking about the target audience and how your gonna reach
them
ex: advertising on more narrow channels, such as MTV or animal planet
,Madison and Vine - CORRECT ANSWER✅✅product placing within tv, movies, etc.
cost effective, higher reach
A term that has come to represent the merging of advertising and entertainment in an effort to break
through the clutter and create new avenues for reaching consumers with more engaging messages
Like new york and Hollywood, advertising in movies
Ex) coca cola cups on America's got talent
"Advertainment": ads are so cool people WANT to watch them, like the super bowl!!
Paid Media - CORRECT ANSWER✅✅when the company pays to commercial
Traditional advertising; billboards, posters, etc.
ex: kit Kat advertising on bridge so when bridge opens the kit Kat breaks
Owned Media - CORRECT ANSWER✅✅what the company owns
Things a company can change/update often; websites, social media, etc.
Shared Media - CORRECT ANSWER✅✅Passing along from consumer to consumer; People to People,
"sharing" on Facebook, retweet, shared post or re post etc.
Earned media - CORRECT ANSWER✅✅When an actual news agency/magazine/radio show/ tells the
world; The Today Show, Ellen, etc.
ex: a tweet went viral about Kit Kat bar so they were able to make a twitter poll about it etc..
,Advertising Objectives - CORRECT ANSWER✅✅informative advertising
persuasive advertising
reminder advertising
Informative Advertising - CORRECT ANSWER✅✅Communicating customer value while building a brand
and company image and correcting false impressions
Build primary demand (knowledge)
Good for introducing a new product category (brand new product)
Ex) Lysol brush explaining how it works
Ex) oxy clean commercial with detergent ball
Persuasive Advertising - CORRECT ANSWER✅✅Build secondary demand (preference-prefer this brand
over another), while encouraging to switch to a brand and changing customer perceptions of product
value
Good for direct or indirect brand comparisons
Ex) side by side bounty commercials
Ex) hefty trash bags are stronger and cheaper than glad trash bags
Ex) samsung "our battery last longer than apple"
can include competitor but not always
Reminder Advertising - CORRECT ANSWER✅✅Maintaining customer relationships, and keeping the
brand in a customers mind
, Increase frequency of purchase
Good for mature products
Ex) Absolut commercial, reminds you thru seasonal campaign to keep buying vodka
Ex) old spice commercial, different representation of old spice
cash cow - remind that these products are still out there
Advertising Budget Decisions - CORRECT ANSWER✅✅affordable method
percentage-of-sales method
competitive-party method
objective-and-task method
affordable method - CORRECT ANSWER✅✅Setting the promotion budget at the level management
thinks the company can afford.
Small businesses do this a lot to make sure they don't spend more than what they have
Bad though because it places promotion as last obligation of spending, and sometimes advertising is
critical
percentage-of-sales method - CORRECT ANSWER✅✅Setting the promotion budget at a certain
percentage of current or forecasted sales or as a percentage of the unit sales price.
Based on the availability of funds rather than on opportunities
what were our 2nd quarter sales and what can we spend on next quarter sales? (if its a brand new
product you will have to spend more)
