978-0133506884 Chapter 2 Solution Manual

subject Type Homework Help
subject Pages 9
subject Words 1758
subject Authors Nancy Mitchell, Sandra Moriarty, William Wells

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Review Questions
2-4. What is the difference between marketing communication and brand
communication?
Marketing communication (marcom) involves the use of a variety of tools and
functions, such as advertising, public relations, sales promotion, direct response
events and sponsorships, point of sale, digital media, and the communication aspects
. What is the definition of marketing, and where does marketing
communication fit within the operation of a marketing program?
Marketing is the way a product is designed, tested, produced, branded, packaged, priced,
distributed, and promoted. The American Marketing Association (AMA) defines it as “the
activity, set of institutions, and processes for creating, communicating, delivering, and
Marketing communicators manage a multiplicity of interrelated activities and programs
that work together with other elements of the marketing plan, for the purpose of building
and sustaining a strong, viable brand. Without marketing communication, brand building
. In general, outline the structure of the marketing industry and identify the
key players.
The marketing industry is a complex network of professionals. The four categories of
key players include 1) marketers, 2) suppliers and vendors, 3) distributors and retailers,
and 4) marketing partners, such as advertising agencies. The marketer, also referred to as
the advertiser or the client, is any company or organization behind the product, that is,
the organization, company, or manufacturer producing the product and offering it for sale.
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. Explain how marketing communication relates to the four key marketing
concepts and to the marketing mix.
The four key marketing concepts highlighted in this chapter are the marketing
concept, exchange, competitive advantage, and added value. To adhere to the
marketing concept, marketers must first determine through research consumer needs
and wants. Typically, some form of marketing communication is used to collect
consumer feedback so that marketers can develop products that respond to those
The marketing mix, also called the 4Ps, refers to product, pricing, place (distribution),
and promotion strategies. The primary goal of marketing communication is to build
awareness of the new brand, explain how a product works, and illustrate its superiority
over competitors, thereby supporting product strategy. Advertising is often the
primary vehicle for telling consumer about price, and the meaning of price to the
consumer is often dependent upon the context provided by the marketing
2-8. Define integrated marketing communication and explain what
integration contributes to brand.
Integrated marketing communications (IMC)is the practice of coordinating all
marketing communication messages as well as the messages from the marketing mix
decisions. One of the important things that IMC does is send a consistent message
Integration means every message is focused and works together, which creates
synergy. When the pieces are effectively coordinated, the whole has more impact than
the sum of its parts. A problem arises when the marcom tools are not aligned with
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2-9. Explain how brand meaning and brand value are created and how they
relate to brand equity.
Brand meaning evolves through the transformation of a product into something unique
and distinctive and by making a promise that establishes customer expectations of the
product. The impressions created by the brand’s tangible and intangible features come
together as a brand concept. Intangibles are very important because they create the
Brand value comes in two forms the value to a consumer and the value to the
corporation. The first is a result of the experiences a customer has had with a brand. The
second is a financial measure, which is called brand equity. How much a consumer is
willing to pay for a brand is determined by what it symbolizes to them and their
Discussion Questions
2-10. Apple is one of the most recognized brands in the world. How did the company
achieve this distinction? What has the company done in its marketing mix in terms of
product, price, distribution, and marketing communication that has created such
tremendous brand equity and loyalty? How have advertising and other forms of
marketing communicated aided in building the brand?
Below is a brief summary of key elements of Apple’s marketing strategy, reflecting each
Product Strategy: Apple releases few but highly anticipated high-end products that
reflect innovative technology and sleek design. Steve Jobs’ strategy was to develop and
sell brand new, innovative products of which blended art and technology in order to
Promotion: Apple has done a superior job of creating abrand personality and building
an emotional connection with its customers through marketing communication. Apple’s
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advertising has been instrumental in making Apple the iconic brand that it has become.
Apple’s logo is an equally significant contributor to success of its brand communication
campaign. Initially Apple was marketed as “Apple Computer Co.,” with the imagery of
Newton sitting under an apple tree. In 1976, this complex logo was replaced with a
Distribution Strategy: In the late 1990s and early 2000s, Apple, like other consumer
electronics companies, was dependent on big-box retailers to sell its products. While this
strategy made sure that Apple products were widely available, it gave the company little
control over point-of-sale customer experience as the retailers’ staff was usually not
Pricing Strategy: According to Forbes Magazine, Apple uses a “high price, high margin
strategy.” Some feel that the company’s insistence on this strategy is limiting profit
Sources:http://www.saleschase.com/blog/2012/04/17/how-apples-branding-strategy-made-it-an-icon/#sthash.UXOE
Web. 15 Oct. 2012. <http://www.forbes.com/sites/darcytravlos/2012/05/15/apple-product-commoditization.“The Cost
2-11. When identical products carry different labels, people will pay more for the
recognized brand. Explain why that is so.
Because it is brand relationships that drive brand value, how much a consumer is
willing to pay for a brand is determined by what it symbolizes to them and their
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2-12. List your favorite brands and from that list do the following analyses:
a. Think about the categories where it is important to you to buy your favorite
brand. For which categories does the brand not make a difference? Why is
that so?
While student responses will vary, product categories in which branding and associated
brand meaning plays a major role include soft drinks, face soap, toothpaste, children’s
toys, athletic shoes, breakfast cereals, etc. It is challenging to think of consumer product
b. In those categories where you have a favorite brand, what does that brand
represent to you? Is it something that you’ve used and liked? Is it
comfortable familiarity you know it will be the same every time? Is it a
promise if you use this, something good will happen? Is it something you
have always dreamed about owning? Why are you loyal to this brand?
While student responses will vary, product categories in which branding and associated
brand meaning plays a major role include soft drinks, face soap, toothpaste, children’s
toys, athletic shoes, breakfast cereals, etc. It is challenging to think of consumer product
TAKEHOME PROJECTS
2-13. Portfolio Project: Look through the ads in this textbook or in other
publications and find an example of an advertisement that you think adds value to a
brand and another ad that you think does not effectively make the brand valuable to
consumers. Compare the two and explain why you evaluated them as you did. Copy
both ads and mount them and your analysis in your portfolio.
Added valuerefers to a strategy or activity that makes the product more useful or
appealing to the consumer, as well as distribution partners. Added value is the reason
consumers are willing to pay more for one brand over its competition. Advertising and
2-14. Mini-Case Analysis: In the “I’m Lovin’ It” campaign, McDonalds needed a
theme that was wide enough and broad enough to speak to all of its various audiences
both in the United States and around the world. This is a classic brand building
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campaign. Go online and read what you can about the effectiveness of this effort.
What are its strong points? Are there any points of criticisms? Consider the
components of a brand described in this chapter and analyze. How do you think this
campaign should be continued, or is it time to update or change the message?
Develop a one-page proposal for next year, including your analysis that supports your
ideas.
"I'm Lovin' It” was launched in the fall of 2003 under the direction of Larry Light. It is
now the company's most successful and longest-running campaign, surpassing the iconic
"You deserve a break today," and "Food, Folks and Fun," both in longevity and sales
"We’re making sure that we build both brand equity and drive sales with every piece of
advertising,” according to Ms. Dillon. According to her, strengths of this campaign
include increased authenticity, increased saturation in consumer insights and emotion,
and "a framework that gives us a consistent point of view about our brand." It celebrates
The company has come under fire from critics who say its food plays a role in the
nation's obesity problem. In response,the “I'm Lovin' It” marketing campaign was
modified in March 2005 to promote physical activity as part of a balanced life. The
TRACE NORTH AMERICA CASE
Multicultural Millenials
Read the Trace case in the Appendix before coming to class.
2-15. What aspects of the marketing mix are relevant to a campaign to Multicultural
Millennials?
2-16. Why do you think TRACE would want a campaign directed to Multicultural
Millennials?
2-17.Prepare a one page statement explaining how the “Hard to Explain, Easy to
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Experience” campaign will actually help TRACE sales among Multicultural
Millennials.
ADDITIONAL MATERIAL
WEB REVIEW QUESTIONS
1. Who are the key players in the world brand communication?
The marketing industry is a complex network of professionals. The four categories of
key players include 1) marketers, 2) suppliers and vendors, 3) distributors and retailers,
and 4) marketing partners, such as advertising agencies.
The marketer, also referred to as the advertiser or the client, is any company or
organization behind the product, that is, the organization, company, or manufacturer
producing the product and offering it for sale. The materials and ingredients used in
producing the product are obtained from other companies, referred to as suppliers or
2. Select one of the four main types of markets and explain how it works.
Answers will vary. Here are several possibilities:
Consumer Markets:Consumer marketsconsist of people who buy products and services
for personal or household use. As a student, you are considered a member of the
consumer market for companies that sell jeans, athletic shoes, sweatshirts, pizza, music,
Business-to-Business (Industrial) Markets:Business-to-business (B2B) markets consist
of companies that buy products or services to use in their own businesses or in making
Institutional Markets:Institutional markets include a wide variety of profit and nonprofit
organizations such as hospitals, government agencies, and schools —that provide
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Channel Markets:The channel market is made up of members of the distribution chain,
which is made up of businesses that we call resellers, or intermediaries. Resellers are
wholesalers, retailers, and distributors who buy finished or semi- finished products and
resell them for a profit. Microsoft and its retailers are part of the reseller market.
Companies that sell such products and services as trucks, cartons, and transportation
3. What is the distribution chain or channel? Explain its role in marketing.
The distribution chain or distribution channel refers to the various companies that are
involved in moving a product from its manufacturer into the hands of its buyers. These
resellers, or intermediaries, are needed to make the product easily accessible to its
There are many routes to distribution and marketing managers consider a variety of
channels when developing distribution strategies. Direct marketing companies distribute
4. What is a brand, how is it defined, and who is responsible for building
brands?
A brand is more than a product. Branding is a communication function that creates
the intangible aspects of a product, thereby making it memorable and meaningful to
A brand can be defined as a perception, often imbued with emotion that results from
experiences with and information about a company or a line of products. Other
Branding also differentiates similar products from one another. Companies make
products but they sell brands. In addition to differentiating a product from its
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5. What is meant by brand transformation and how does it work?
A basic principle of branding is that a brand communication transforms a product into
something more meaningful than the product. Brand transformation creates this
To transform a brand, first a separate identity must be created for it within is product
category. Important brand identity cues are the brand name and the brand logo. Also
6. What is word-of-mouth communication and why has it become such a
powerful force in the world of brand communication?
Word-of-mouth communication, also called buzz, means people are talking about a
Word-of-mouth communication has emerged as a powerful new force not only
because of its inherent persuasiveness, but because it is frequently powered by social
Because the recommendations of others are so highly persuasive, and it is now often
coupled with social media, word-of-mouth communication has been elevated to a new
7. What is the “accountability” trend in the marketing industry? Why has it
become important?
Marketing managers are being challenged by senior management to prove that their
decisions lead to the most effective marketing strategies. They are under pressure to
ASSIGNMENTS
Individual Assignments
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1. Have students select one of their favorite brands. It can be either a product or a
service. Then have them consider what sort of image the brand carries in their minds.
How did this image come about, and what was the role of advertising in creating it?
2. Ask each student to interview the owner or manager of a local small business to
find out how he or she competitively markets against larger, nationallybased
Think-Pair-Share
1. Have students pair off to interview each other regarding a negative experience
they can recall with a specific brand of product or service. Drawing upon the
principles of Integrated Marketing Communications in this chapter, determine what
went wrong. How did it happen? What contradictory brand messages were conveyed?
What was the result of this breakdown in communication? Did the student remain as a
customer with the company, or was the brand relationship severed? Once the
interviews are complete, each student should draft a brief report outlining their
findings.
2. Have students get together and recall a marketing campaign that incorporated a
form of digital media or personal media into its marketing communication efforts.
What was the product or service, and what was especially unique about the marketing
strategy? How well did it seem to work?
OUTSIDE EXAMPLES
1. Go online. Using any search engine you like, enter the term “Integrated Marketing
Communications.” Locate an agency or organization that explains this concept
2. Choose a company or organization in your community to visit. Gather as many
samples of their five marketing efforts as possible and analyze them carefully.
Examples could include product brochures, print advertisements, DVDs, direct mail
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