978-0134292663 Chapter 13 Solution Manual Part 2

Chapter 13: Promotion I: Advertising and Sales Promotion

13-16 What is media planning? How do media planners use reach, frequency, gross rating points, and

cost per thousand in developing effective media schedules?

After she chooses the advertising media, the planner then creates a media schedule that specifies

the exact media the campaign will use as well as when and how often the message should

appear. The media schedule outlines the planner’s best estimate of which media will be most

13-17 What is sales promotion? Explain some of the different types of consumer sales promotions

marketers frequently use.

13-18 Explain some of the different types of trade sales promotions marketers frequently use.

ACTIVITIES: APPLY WHAT YOU’VE LEARNED

Chapter 13: Promotion I: Advertising and Sales Promotion

13-19 Creative Homework/Short Project You work in the marketing department at your local Red

Cross blood center. Because donations are down, it’s important that you reach out to the

community for blood donor volunteers. Using the communication model, explain how you

will create and transmit this message to the consumer. Then describe how you will determine

whether consumers successfully received this message.

MyMarketingLab for answers to Assisted Graded Questions.

13-20 Creative Homework/Short Project Assume you are the director of marketing for a firm

that markets snack foods. You are developing a promotional plan. Develop suggestions for

each of the following items.

a. Marketing communication objectives

b. The method you will use for determining the communication budget

c. The use of a push strategy or a pull strategy

d. Elements of the traditional promotion mix you will use

MyMarketingLab for answers to Assisted Graded Questions.

13-21 Creative Homework/Short Project Your company has developed a new high-end hand

cream, designed to noticeably soften hands and reduce the appearance of age spots and scars

when used daily. Using the hierarchy of effects, develop communications objectives for your

product for consumers who may be at each stage in the hierarchy. Make sure your objectives

are specific.

The marketer “pushes” the consumer through a series of steps, or a hierarchy of effects, from

Each part of this path entails different communication objectives to “push” people to the next

level:

A. Create awareness: The first step is to make members of the target market aware that there

is a new hand cream on the market.

C. Create Desire: The next task is to create favorable feelings toward the product and to

convince at least some members of this group that they would rather use this hand cream

instead of other hand creams.

Chapter 13: Promotion I: Advertising and Sales Promotion

13-22 For Further Research (Individual) More and more firms are engaged in multichannel

promotional programs. You can learn about many of these by searching library or Internet

sources. Some Internet sources that may be useful are the following:

Brandchannel.com

Adweek.com (Adweek magazine)

NYTimes.com (New York Times)

Adage.com (Advertising Age magazine)

13-23 Creative Homework/Short Project As we discussed in this chapter, many consumers are

highly critical of advertising. In order to better understand this, conduct a short survey of (1)

your college classmates and (2) a different group of consumers, such as your parents and their

friends. In the survey, ask the respondents about the criticisms of advertising discussed in this

chapter, that is, that advertising (1) is manipulative, (2) is deceptive and untruthful, (3) is

offensive and in bad taste, (4) creates and perpetuates stereotypes, and (5) causes people to buy

things they don’t really need. Be sure to ask respondents to give you examples of ads that they

feel fall in these categories. Develop a report that summarizes your results and compares the

attitudes of the two consumer groups.

13-24 In Class, 10–25 Minutes for Teams Assume that you are a member of the marketing

department for a firm that produces several brands of snack foods. Your assignment is to

develop recommendations for consumer and trade sales promotion activities for a new low-

fat, low calorie, high protein snack food. Develop an outline of your recommendations for

these sales promotions. In a role-playing situation, present and defend your

recommendations to your boss.

In a role-play students can develop an outline of recommendations for the sales promotion

activities for a new low-fat, low calorie, high protein snack food using the following sales

Chapter 13: Promotion I: Advertising and Sales Promotion

Trade Sales Promotion: Targeting the B2B Customer: Co-op advertising, sales promotion

designed to increase industry visibility

13-25 In Class, 10–25 Minutes for Teams Timing is an important part of a sales promotion plan.

Trade sales promotions must be properly timed to ensure channel members fully maximize

the opportunity to sell your product. Assume that the introduction of the new snack food in

question 13-24 is planned for April 1. Place the activities you recommended in question

13-24 onto a12-month calendar of events. (Hint: The calendar needs to start before the

product introduction.) In a role-playing situation, present your plan to your boss. Be sure to

explain the reasons for your timing of each trade sales promotion element.

APPLY MARKETING METRICS

13-26 You learned that media planners use a variety of metrics to help in making decisions on

what TV show or which magazines to include in their media plans. Two of these are gross

rating points (GRPs) and cost per thousand (CPM). Assume you are developing a media

plan for a new brand of gourmet frozen meals. Your target market includes females ages 25

to 64. The table below lists six possible media buys you are considering for the media plan,

along with some relevant information about each (Note that the numbers are fictitious,

created for example purposes only). The plan is based on a four-week period:

a. Calculate the GRPs for each media buy based on the information given.

b. Calculate the CPM for each media buy.

c. Based on the cost of each buy, the reach or rating of each buy, and any qualitative

factors (e.g., decision criteria beyond the numbers) that you believe are important,

select the top three media buys that you would recommend.

d. Explain why you would select these three.

Chapter 13: Promotion I: Advertising and Sales Promotion

Going on GRPs, students could select the top media buys above such as CBS Evening News,

Dancing with the Stars, Big Bang Theory, and USA Today. However, considering the product

CHOICES: WHAT DO YOU THINK?

13-27 13-27 Critical Thinking Marketers are spending less on mass-media advertising today than in

means of communicating with customers for many products and is preferred over spending on

d digital and mobile advertising. What products do you think most benefit from digital and

mobile

a advertising? Why is this so? Do you feel traditional advertising will continue to decline in

Media vehicle Rating Cost per ad or

insertion

Number of

insertions

GRPs for this

number of

insertions

Dancing with

the Stars

30 $500,000 4 (1 per weekly episode) 120

Chapter 13: Promotion I: Advertising and Sales Promotion

I importance as a means for marketing communication, or will it rebound in the future?

This question can be used as a small-group exercise, allowing students to discuss digital and

mobile advertising.

28 13-

1131313-28 Ethics The use of branded content is on the rise, especially in digital marketing. This includes

content

ten marketing, native advertising, product placements, branded entertainment, and advergaming.

How do you think consumers respond to these tactics? Are you aware that these are forms of

advertising? Is this deceptive? How do you suggest this approach could be improved to

address

pot potential ethical issues?

Students will have various opinions about these issues. The issue is whether they believe that

such

search engines, media sites, and TV programs/movies should restrict such practices. However,

one

could argue that any search engine, social media site, TV program, or movie has the right to

set up

their business/product as they see fit as long as it does not harm consumers. Therefore, how

exactly

consumers be harmed from such practices That is the key issue that students should

considered in

these questions?

-29 Critical Thinking advertising and other forms of marketing communications have changed

radically during the last decade or so as a result of digital technology. List some of these

changes.

What about each of these changes has benefitted consumers? Harmed consumers? Benefitted

marketers? Harmed marketers? What changes would you recommend?

MyMarketingLab for answers to Assisted Graded Questions.

Stud

13-30 Critical Thinking Greenwashing is a practice in which companies promote their products as

environmentally friendly when in truth the brand provides little ecological benefit. What are

your thoughts on greenwashing? How much of a product should be environmentally friendly

for it to be considered a truly green brand? Fifty percent? Eighty percent? Should the practice

of greenwashing be regulated?

Chapter 13: Promotion I: Advertising and Sales Promotion

MyMarketingLab for answers to Assisted Graded Questions.

13.31 Ethics Firms are increasing their use of search engine marketing in which they pay search engines

such as Google and Bing for priority position listings. Social media sites such as Twitter are

generating revenue by offering to sell “search words” to firms so that their posting appears on top.

Are such practices ethical? Are consumers being deceived when a firm pays for priority

positioning?

13.32 Critical Thinking Companies sometimes teach consumers a “bad lesson” with the overuse of

sales promotions. As a result, consumers expect the product always to be “on deal” or have a

rebate available. What are some examples of products for which this has occurred? How do you

think companies can prevent this?

13-33 MINI-PROJECT

This mini-project is designed to help you develop your skills in marketing communication

planning. Working with one or more of your classmates, complete the following suggested

activities. Assume you are developing a multichannel marketing communication program for a firm

that produces and sells disposable diapers and other products to care for babies.

1. What are the objectives of your communication plan?

2. What are two types of traditional marketing communications you would use? Provide details and

be specific. Why are these the best for this product?

3. You will be using website advertising, mobile advertising, video sharing, and branded

entertainment. Design these specific activities providing details.

4. Look over your recommendations and check to see if your plans

a. Work together to be one integrated program of communication

b. Provide a program that will engage the consumer in interactive activities

c. Provide some benefit to improve the life of the consumer.

5. If they do not, revise your program.

6. Make a presentation of the plan to your class.

Students can work in teams to answer the questions. Each team can present its findings to the class.

Chapter 13: Promotion I: Advertising and Sales Promotion

V. MARKETING IN ACTION CASE: REAL CHOICES AT

DOMINOS

Summary of Case

Pizza is big business. Americans spend over $40 billion on pizza every year. With more than

59,000 U.S. stores that sell and deliver pizza, customers have lots of options. Dominos wants them

to make Domino’s their only pizza delivery store. Recently, growth of the retail pizza industry has

slowed because of intensified competition from other types of restaurants and an increased level of

consumer demand for healthier food choices. In this market, where there is little room for growth,

Domino’s must give customers reasons to stay loyal and persuade potential customers to give them

a try. Domino’s spends the majority of its $100 million-plus advertising budget on traditional

television ads. The message of the “AnyWare” campaign is that you can use any device to place

your Domino’s order. Domino’s latest advertising campaign is not even about pizza—it’s about

specialty “delivery expert” car, the DXP. The cars can hold 80 pizzas per trip as well as drinks,

side items, and other delivery products. The DXP comes equipped with a puddle light projecting

the Domino’s logo. Other details include hubcaps with the Domino’s logo and the recognizable

illuminated domino’s car topper.” The humorous DXP ads mimic auto advertising. The message

that Dominos hopes consumers get is that everything Dominos offers improves the pizza ordering

process. Of course, there’s no guarantee that the DXP ads can have a positive impact on sales, that

they can convince consumers to make Domino’s their first and maybe only option.

Suggestions for Presentation

This case could be assigned for various online or in-class discussion activities.

Online

Consider whether Domino’s ad campaign was enough or could they have done more for their

customers?

Analyze other companies that sell pizza like Pizza Hut.

Prepare a SWOT for Domino’s.

In-Class

Consider whether Domino’s ad campaign was enough or could they have done more for their

customers?

Discuss the marketing strategies that are being used by Domino’s then determine if they should be

continued or changed.

Have a class discussion on how much competition currently exists that will affect Stouffer’s.

You Make the Call

13-34 What is the decision facing Domino’s?

Students may come up with a number of different decisions that Domino’s might make such

as:

13-35 What factors are important in understanding this decision situation?

Chapter 13: Promotion I: Advertising and Sales Promotion

Domino’s has an advertising budget of over $100 million.

Domino’s spends the majority of its advertising budget on traditional television ads.

Growth of the retail pizza industry has slowed because of intensified competition from

other types of restaurants.

13-36 What are the alternatives?

Students might recommend a variety of different alternatives. Some possibilities are:

Continue with the DXP integrated promotion campaign and measure the results

Scale down the DXP campaign.

13-37 What decision(s) do you recommend?

13-38 What are some ways to implement your recommendation?

►MYMARKETINGLAB

Go to mymktlab.com for Auto-graded writing questions as well as the following assisted-graded

writing questions:

13.39 As an account executive for an advertising agency, you have been assigned to a new

client, a company that has developed a new energy drink. As you begin development of the

creative strategy, you are considering different types of ad execution formats and tonality:

a. Comparative advertising

b. A fear appeal

c. A celebrity endorsement

d. A slice-of-life ad

e. Sex appeal

f. Humor

Outline the strengths and weaknesses of each of these appeals for advertising the new energy

drink.

13.4 Creative Homework/Short Project. As a marketing consultant, you are frequently asked

by clients to develop recommendations for marketing communication strategies. The

traditional elements used include advertising, sales promotion, public relations, and personal

selling. Which of these do you feel would be most effective for each of the following clients?

Chapter 13: Promotion I: Advertising and Sales Promotion

A university

A company that produces organic snacks

A sports equipment company