Download KEY_IMC_T3

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PESIT Bangalore South Campus
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Department of Master of Business Management
Answer key for INTERNAL ASSESSMENT TEST –3
Date
03/6/2015
Subject & Code : Integrated Marketing Communications – 12MBAMM417
Name of faculty: Ravi Urs
Max Marks: 50
Section
:A
Time
: 8.30 – 10.00 AM
Note: Answer all questions
1.
a
What is Internet advertising?
3
Using Internet as a medium for advertising. It allows companies to create awareness, provide
information, and influence attitudes. It is a direct-response medium, allowing the user to both
purchase and sell products through e-commerce. It includes a variety of forms like banners,
sponsorships, pop-ups, pop-under, interstitials, push technologies, links, paid searches, behavior
targeting, contextual ads and rich media.
B
Differentiate between business-to-business and consumer focused communication.
Elements
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B2B Communication
Consumer Focus
Communication
Decision making authority
Collective decision making
consisting of user department
head, user department
member, top management,
purchasing dept, etc. The
buying decision is made by
buying centre or committee
Consumer and decision
maker may be the same
Nature of communication
(appeal and execution style)
Rational appeal, straight talk,
demonstration. Advertising
and promotion takes a
supportive role
Emotional appeal and use of
different execution style like
drama, humor, fantasy,
animation, etc. Ad and
promotion plays lead role
Involvement of the buyers
Involvement is collective
The buyer is generally
involved in the buy decision
of the consumer product
Integration of communication
elements
Does not need sophisticated
technology to provide
message. Focus would be on
This requires sophisticated
technology to create
attention and recall value.
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PESIT Bangalore South Campus
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Department of Master of Business Management
c
demonstration. Multimedia
graphics such as 3-D is used
The communication must be
eye catching accompanied by
graphics, music, etc.
Budget allocation
Personal selling gets the
highest budget and less
money is allotted to ad and
promotion
Bulk of the marketing money
is spent on market research,
ad and promotion
Evaluation measure
Directly related to sales of
products
Directly related to reach and
coverage
Message content
Mainly focused on feature,
benefits and other value
additions offered along with
the product
The communication message
is designed to create
awareness, interest, emotion,
humor, etc.
Use of creativity
Not much of a scope for
creativity since it does not
have any impact on target
group
Great scope for creativity as it
acts as a nerve center of
success and failure of ad
Media used
Technical journal and
magazines
TV, Radio, print media, etc.
Elucidate the factors influencing international advertising environment.
 The following factors are important in evaluating the potential of each country as well as
designing and implementing a marketing promotion program
1.
Economic Environment
2.
Demographic Environment
3.
Cultural Environment
4.
Political/Legal Environment
Economic Environment
 A country’s economic conditions indicate its present and future potential for consuming
 Products and services can be sold only in countries where there is enough income to buy
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USN
1 P E
PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of Master of Business Management
them
 Developed countries have higher incomes and standard of living, and thus purchase a
variety of products and services
 Developed countries have infrastructure in terms of communications, transportation,
financial and distribution networks
 Though industrialized nations represent greatest marketing and advertising
opportunities, these markets have stable population and many products and services are
saturated
 Companies want to focus on nations with growing economies and consumers
 MNCs are turning their attention to third-world countries where consumer markets are
slowing emerging
Demographic Environment
 Major demographic differences exist among countries as well as within them
 Marketers must consider income levels and distribution of income, age and occupation,
distribution of population, household size, education and employment rates, and literacy
rates
 Demographic data can provide insights into the living standards and lifestyles in a
particular country to help companies plan ad campaigns
Cultural Environment
 Cultural variables marketers must consider include: language, customs, tastes, attitudes,
lifestyles, values and ethical/moral standards
 Cultures influence needs and wants of consumers and also how they go about satisfying
them
 Marketers must be sensitive to the needs of products and services of the foreign cultures
and also about how to communicate with them
 Communication is very challenging due to problems associated in developing messages
that will be understood in various cultures
 International advertisers often have problem with language
 Advertiser must know not only the native tongue of the country but also its nuances,
idioms, and subtleties
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USN
1 P E
PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of Master of Business Management
 They must be aware of the connotations of words and symbols used in their messages
and understand how advertising copy and slogans are translated
 Many companies use agencies specializing in translating advertising slogans and copy to
overcome problems related with language
 Customs effect what products and services it will buy and how they must be marketed
 Values are beliefs and goals shared by members of a society and it affects their behavior
and determine how they respond to various situations
 Response to foreign brands and ads are affected by ethnocentrism and nationalism
 Japan market is very difficult to understand due to its unique values and customs
 Chinese values are centered around Confucianism, which stresses loyalty and
interpersonal relationship
 However with westernization and modernization the advertisers are able to show subtle
changes in cultural values in ads aimed at young people
 Religion affects norms, values and behaviors
Political/Legal Environment
 Regulations differ due to economic and sovereign considerations, goal of protecting
consumers from false or misleading ads and sometimes from ads in general
 Government regulations and restrictions affect the company’s advertising program the
following ways:
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
The type of products that may be advertised

The content or creative approach that may be used

The media that all advertisers are permitted to use

The amount of advertising a single advertiser may use in total or in a specific
medium

The use of foreign language in ads

The use of advertising material prepared outside the country

The use of local versus international advertising agencies
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PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of Master of Business Management
The specific taxes that may be levied against advertising
2.
a
What is event marketing?
3
Event management is about generating ideas and concepts and translating them into reality.
Creativity, imagination and an eye for detail are needed for successful execution of events. An
event management company specializes in planning, staffing and organizing events like
conferences, trade shows, tours, live shows, fashion shows and similar events. Event organizers
take care of the publicity for the event. It is an industry which is growing exponentially.
b
Explain the different services provided by an event management company.
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Logistics
Guest finalizing, inviting, and taking care of guest
Event promotion
Event PR and Publicity
Event location arrangements
Ticketing
c
Government permissions
State the important reasons for measuring advertising effectiveness. Explain pretesting and
post testing methods available for measuring advertising effectiveness.
1.
Avoiding costly mistakes
 Huge money is being spent on advertising
 To avoid wastage due to ineffectiveness of ads
 To avoid opportunity loss due to poor communication, due the ads not meeting its
objective and missing on the potential gain that accrued to the firm
It helps maximize investments
2.
Evaluating Alternative Strategies
 It helps to know which medium would be useful for what type of communication

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Alternatives like medium, messages, promotional programs, traditional vs non-
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PESIT Bangalore South Campus
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Department of Master of Business Management
traditional ads, etc. can be done
 Appropriation of budgets can be done better with evaluation
 Different strategies can be evaluated
 Effectiveness of different ads can be done
 Different types of couponing options can be explored
3.
Increasing the efficiency of advertising in general
 It helps to understand if the ad message is understood by the targeted consumer
correctly
 Helps in correcting ads with too much jargons, too much creativity, brand names not
being conveyed for impact
 Helps ads to become efficient and effective
Helps handle the agent queries better
4.
Determining if objectives are achieved
 Since an IMC works on the principle of taking the customers through various phases, it is
necessary to understand if the customer has reached the level that was originally set as
the objective for the communication
 Only when the current objective is met will the new objectives bet set
How the different programs elements lead to or failed to achievement of goal needs to be
determined?
Pretests
 Pretests are measures taken before the campaign is implemented
 It can occur at many number of points, like idea generation to rough execution to testing
the final version before implementing it
 More than one type of pretest may be used

E.g. Concept testing may happen at the earliest development of the ad
 Pretests may be used to determine:
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PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of Master of Business Management

The shopping power of the ads and communications effectiveness

Layout of the ad campaign that include headlines, body copy, rough illustrations

For TV commercials storyboard and animations may be tested
 The reasons for pretesting are:

To identify winners

To enhance good ads

To eliminate bad ones
 The methodologies to conduct pretests include:

Focus groups, where participants freely discuss the meanings they get from the
ads, consider the relative advantage of alternatives, suggest improvements or
additional themes

Consumers may be asked to evaluate the ad on a series of rating scales

In-home interviews

Mall intercept

Laboratory methods
 Advantages of pretesting include:

Feedback is relatively inexpensive

Any problems with the concept or the way it is to be delivered before large
amount of money are spent in development

Evaluating more than one version of the ad helps in determining which is most
likely to be effective
 Research shows that pretesting of message creativity showed that 80 percent of the
campaign initially presented for consideration had to be totally redeveloped
 Disadvantages of pretesting:
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
Mock-ups, storyboards, or animations may not communicate nearly as
effectively as the final product

The mood-enhancing and/or emotional aspect of the message are very difficult
USN
1 P E
PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of Master of Business Management
to communicate in this format

It leads to time delay
Many marketers believe being first in the market offers a distinct advantage over competitors
Focus Groups
 It is one of the more commonly used methods
 It usually consists of 8 to 10 people in the target market for the product
 It can be used to test product concepts and advertising concepts
 For most companies, it is the first step in research process
The number of focus groups used varies depending on group consensus, strength of response,
and/or the degree to which participants like or dislike the concepts
Mall Intercepts
 Consumers in shopping malls are approached and asked to evaluate rough ads and/or
copy
 Individuals assess the ads via questionnaires, rating scales, and/or rankings
Over Internet
 Advertisers show concepts simultaneously to consumers throughout the U.S.
 They garner feedback and analyze the results almost instantaneously
 It is becoming increasingly popular
 It saves cost and is time efficient
Rough Art, Copy, and Commercial Testing
 Costs make testing a final ad at early stages necessary
 Slides of artwork posted on a screen or animatic and photomatic roughs may be used to
test at this stage
 Rough tests must indicate how the finished commercial would perform
 Studies have demonstrated that these testing methods are reliable and the results
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PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of Master of Business Management
typically correlates well with the finished ad
 Most of the tests at this stage involve lab settings
 Popular tests include
1.
Comprehension and reaction tests
Consumer juries
Pretesting of Finished Ads
 The ad or the commercial is fished and is ready to go to market
 Testing of finished ad gives better information about the ad
Print Ads:
The methods available for testing finished print ads include:
1.
Portfolio test
2.
Analysis of readability
3.
Dummy advertising vehicles
Broadcast Ads
The methods available for testing finished broadcast ads include:
1.
Theater tests
On-air test
Posttests
 Posttests occur after the ad or commercial has been in the field
 It is designed to

Determine if the campaign is accomplishing the objective sought
Serve as input into the next period’s situation analysis
Pretesting finished broadcast ads
Theater Testing
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PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of Master of Business Management
 It is a laboratory method
 Participants are invited to view pilots of proposed TV programs
 Standard programs are used so audience response can be compared with normative
responses established by previous viewers
 Sample size range from 250 to 600 participants
 On entering the theater, viewers are told a drawing will be held for gifts and asked to
complete a product preference questionnaire asking which products they would prefer if
they win
 This form also seeks demographic data
 Participants may be seated in specific locations in the theater to allow observation by
age, sex, and so on
 They view the program and commercials, and a form asking for evaluation is distributed
 Participants are then asked to complete a second form for a drawing so that changes in
product preference can be noted
On-Air Tests
 Here the finished ads are into actual TV programs in certain test markets
 The commercials used are in finished form, although the testing of ads earlier in the
developmental process is also becoming more common
 It used field methodology
 Most of the testing services like Nielsen have offered evidence of both validity and
reliability for on-air pretesting of commercials
 It indicates the ad’s likely success
Day-after recall scores
 It is a primary measure used in these tests
 Here the audience are asked to score based on their recall of the test ad
Physiological Measures
 It is a laboratory setting in which physiological responses are measured
MBA IV
USN
1 P E
PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of Master of Business Management
 It is a less common method
 These measures indicate the receiver’s involuntary response to the ad
 It theoretically eliminates biases associated with voluntary measures
 Physiological measures used to test both print and broadcast ads include:
3.

Pupil dilation

Galvanic skin response

Eye tracking

Brain wave
Case Study: (Compulsory)
A health drink called Malt-K was manufactured by a company based in Mumbai. This beverage
was consumed by children during lunch hour at school. Children need healthy drink for their
growth. This company also manufactured several beverages of which Malt-K had the most market
share. The taste was liked by children and most parents bought it. It was reasonably priced, and
was available in packets and jars.
After successfully selling this product for ten years, like any other product this product too
showed signs of sales decline. Concerned by this, the company stepped up its advertisement using
multiple media. Ad was given in children’s magazine. Essentially TV as a media using sports
channel was very popular. The company also found that though there was competition, it was not
a threat. However, in the light of declining trend, the company wanted to give new lease of
life/push to the product. Therefore, they decided to introduce some promotion measures, so as to
increase the sale.
Questions:
a
Suggest promotion measures to boost the sales.
The following promotional measures can be taken:





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Offer of toys and other things to attract the children
Provide free samples
Provide discounts for a set period
Have a contest to involve children
Have a contest for retailers to display the product
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PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of Master of Business Management
Offer some other product as a gift when this product is purchased
b
Describe the Ad campaign that you would undertake to extend the life of the product.
The advertisement should highlight the following:
 Advertise in cartoon channels which are generally seen by children
 Highlight the strength the children will get when they use this product
 Change the packaging style
 Change the ads to show novelty
 Have a celebrity endorse the product
Involve the parents by inviting them to share how the product helped their children. Advertise the
same in ads
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