MARKETING 420 – ADVERTISING AND INTEGRATED MARKETING COMMUNICATIONS
Final Exam
Travor Flaa
OVERVIEW/INSTRUCTIONS
Open book, due 11:59 pm May 13. Work independently. Do not talk to others about the
exam. Do not look at others’ responses. Do not share the exam with others. Note: multiple
questions deal with you selecting a brand, please use different brands (i.e., do not use the same
brand over and over). If you have any questions, let me know.
There are 10 sets of questions, select any 8 sets (17.5 points each set; 140 total
points). Answer all parts of each set that you select. Start any time after 11:59 pm May
11. After starting the exam, you will have three hours to complete it. It needs to be completed
by 11:59 pm May 13 (i.e., you should start it before 8:59 pm May 13, it might take 3 hours to
complete it).
#1. Chapter 2. Advertising and sales promotion each has its own unique characteristics and
costs. On one hand, advertising can be used to build up a long-term image for a product, and on
the other hand, sales promotion can be used to boost sagging sales. (a) Define “brand equity”
and apply it to advertising and sales promotion. Give examples of “intended effects” of
advertising and sales promotion. Explain how advertising and sales promotion can build up a
long-term image for a product or trigger quick sales. (b) Given that the ABC Company has used a
sales promotion and it finds a significant sales increase for a particular consumer packaged
good. In fact, it finds that brand switching accounts for 84% of the sales increase in the
promotion time period. Explain this short-run sales response. Do you have any concerns
regarding long-run brand equity effects? Can sales promotions rob a brand’s
future? Explain (c) Use YouTube, type in “ads for children’s meals and free toys” and select an
ad (give the ad). Discuss the coordination of media achieved through the ad and the sales
promotion. Discuss the impact of free toys on consumers’ fast food restaurant selection. Are
there any ethical issues associated with offering free toy promotions? Explain your responses
A) Brand equity is a set of assets and liabilities linked to a brand that add value to or
subtract value from the product or service under that brand. Advertising and sales promotion
create a long term image for a product by introducing the product to the consumers. When
consumers see an advertisement or sales promotion for a product, they will always remember
it. If you continue to do these, it will keep reminding consumers of the product and how great
it is. Sales promotions can trigger quick sales because consumers will see that discount and
want to purchase the product at that lower price.
B) When a product goes on sale, consumers will see this sale and want to purchase the
item at the discounted price before the price goes back up. Sales promotions could potentially
hurt the long term sales because once the product goes back to the original price, consumers
wont want the item as bad.
C) McDonalds Happy Meal commercial. This commercial demonstrates how when
purchasing a happy meal for your children, they will receive a free toy inside the happy
meal. This makes business go way up because the children will mainly want to get the happy
meal for the toy that’s inside and its very inexpensive to get the toys but the meal is where they
make the money. I think the only ethical issue there would be would be if its “right” to put the
toy in the happy meal knowing your sales will increase due to the fact that kids want the toy
more than the meal.
#2. Chapter 2. (a) Explain the concept of brand equity from both the company’s and the
customer’s perspectives. (b) From the customer’s perspective, what is meant by the terms
“brand awareness” and “brand image”? Regarding brand image, pick a brand (give the brand)
and discuss associations that are activated in memory when you think about the brand.
(c) When discussing brand equity from the firm’s perspective, it was explained that as the equity
of a brand increases, at least four positive outcomes result (one outcome is: a higher market
share). Select a brand (i.e., use a different brand than the one in “b”) and explain how its’
relatively greater equity, compared to a lesser brand in the same product category, is manifest
in terms of each of the outcomes discussed in chapter 2.
#3. Chapter 2. (a) Brands can be thought of having their own unique personalities. Explain
“brand personality” and provide examples of brands, other than those illustrated in chapter 2,
that reflect the personality dimensions of sincerity, excitement, competence, sophistication,
and ruggedness. (b) Three basic ways by which brand equity is enhanced is discussed in chapter
2. Define and give examples of the “speak-for-itself” approach and the “message–driven”
approach. Describe the “leveraging strategy for enhancing brand equity” approach. Take a
