978-0134492513 Chapter 14 Which Promotional Mix Elements Does Volvo Use

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Discussion Questions

14-1 Name and describe the five major promotion tools used in a company’s marketing

communications mix. (AASCB: Communication)

Answer:

 14-2 Discuss content marketing and how marketers are using a new framework that builds on

how and by whom marketing content is created, controlled, and distributed. (AACSB:

Communication)

14-3 What is integrated marketing communications (IMC), and how does a company go about

implementing it? (AACSB: Communication)

Answer:

Integrated marketing communications (IMC) is a concept under which the

company carefully integrates its many communications channels to deliver a clear, consistent,

 14-4 Discuss the two broad types of communication channels used by marketing

communicators to distribute messages. (AACSB: Communication)

14-5 How does a company determine its promotional budget? (AACSB: Communication)

Answer:

One of the hardest marketing decisions facing a company is how much to spend on

promotion. There are four common methods used to set the total budget for advertising:

The affordable method—The company sets the promotion budget at the level it thinks

The competitive-parity method—The company sets the promotion budget to match

The objective-and-task method—The company sets the promotion budget based on

Critical Thinking Exercises

 14-6 Identify a new consumer food or beverage product. Using the major promotion tools,

design a promotion campaign for the product. Identify how you are using both push and pull

strategies. (AACSB: Communication; Use of IT; Reflective Thinking)

Answer: Student answers will vary based on their personal response. Refer to the MyLab for

14-7 In a small group, select an advertisement that appropriately addresses each aspect of the

communication process shown in Figure 14.2. Illustrate how each element is represented in

the company’s advertisement. Discuss how the advertisement, by itself, does or does not

constitute effective marketing communication for the product. (AACSB: Communication;

Reflective Thinking)

Answer:

Using Figure 14.2, students can address each aspect of the communication process sender,

14-8 According to a Nielsen Global Survey, consumers are more likely to support companies that

they perceive as socially responsible. Find three examples of advertisements that incorporate

socially responsible marketing messages. Do these advertisements increase your likelihood of

buying from the company sponsoring them? Explain. (AACSB: Communication; Ethical

Reasoning; Reflective Thinking)

Answer:

The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000

internet respondents in 58 countries. The percentage of consumers willing to pay more

Students can be directed to search “socially responsible advertising campaigns” or for

examples. Examples include: (1) AT&T’s “It Can Wait” campaign educates against texting

APPLICATIONS AND CASES

Online, Mobile, and Social Media Marketing: #withoutshoes

Blake Mycoskie launched TOMS with a commitment to donate one pair of shoes for every pair

sold. In May 2015, TOMS took to the social media with a campaign to extend its philanthropic

mission. For each Instagram post showing bare feet and using the hashtag #withoutshoes, TOMS

donated a pair of shoes to a child in need. The campaign demonstrated the company’s

commitment to its cause while expertly piggybacking on a common Instagram trend. The

#withoutshoes campaign resulted in the donation of 296,243 pairs of shoes and won a Silver Anvil

Award of Excellence from the Public Relations Society of America. TOMS’s many one-for-one

programs for shoes and now necessities such as eyewear, water, and even “kindness”

(anti-bullying training) help build strong customer relationships and brand community.

14-9 Explain how TOMS used public relations for the #withoutshoes campaign as part of the

company’s promotion mix. It what ways did this tool helped promote TOMS? (AACSB:

Communication, Reflective Thinking)

Answer:

TOMS blended several elements: reaching its target market of men and women aged 18-34

14-10 Research the internet for more information on how TOMS engages consumers using

promotion tools. Choose two specific campaigns and evaluate TOMS’s promotion strategies

for both. (AACSB: Communication, Reflective Thinking, Use of IT)

Answer:

TOMS blends promotion tools including direct mail, public relations events, and sales

Marketing Ethics: An Ethical Promotion?

A Unilever brand in Thailand ran into some problems with one of its promotion campaigns, the

“Citra 3D Brightening Girls Search.” Citra Pearly White UV Body Lotion is marketed as a

skin-whitening product. Skin whitening is popular in many Asian countries because lighter skin

color is associated with higher economic status. However, this belief is not created by marketers.

Anthropologists point out that Asian cultures, and Thailand in particular, have long histories of

associating darker skin tones with outdoor peasants and field workers and lighter skin tones with

higher socio-economic status. Citra’s advertising was criticized because it showed two female

students—one lighter-skinned than the other—and asked them what would make them

“outstanding in uniform.” The darker girl seemed confused and didn’t answer, while the lighter

girl answered with Citra’s product slogan. After considerable social media outcry, Citra pulled the

ad, but it did not stop a related scholarship competition. The competition offered a 100,000 baht

($3,200) prize for the college student best demonstrating “product efficacy”—that is, the whitest

skin. The company claims its products help people feel good about themselves and enhances their

self-esteem.

14-11 Since lighter skin and skin whitening are popular in Thailand, is it wrong for marketers to

offer and promote products that encourage this belief and behavior? Explain why or why not.

(AACSB: Communication; Reflective Thinking; Ethical Reasoning)

Answer:

14-12 Find other examples of marketers creating controversy by promoting culture-based

products that could be viewed as inappropriate by others outside of that culture. (AACSB:

Communication; Reflective Thinking)

Answer:

Student answers will vary. Some possibilities are food products that are popular in some parts

of the world and are criticized in other parts of the world. Shark fin soup is one example.

Using animal parts in traditional Chinese medicine (TCM) is another category students can

explore.

Marketing by the Numbers: Advertising-to-Sales Ratios

Using the percent of sales method, an advertiser sets its budget at a certain percentage of current

or forecasted sales. However, determining what percentage to use is not always clear. Many

marketers look at industry averages and competitor spending for comparisons. Web sites and trade

publications publish data regarding industry averages to guide marketers in setting the percentage

to use.

14-13 Find industry advertising-to-sales ratio data. Why do some industries have higher

advertising-to-sales ratios than others? (AACSB: Communication; Use of IT; Reflective

Thinking)

Answer:

Schonfeld & Associates provides advertising-to-sales ratios by industry. See

14-14 Determine the advertising-to-sales ratios for two competing companies and compare them

to the industry advertising-to-sales ratio found above. Why do you think there is a difference

between competitors and the industry average? (AACSB: Communication; Use of IT; Analytical

Reasoning; Reflective Thinking)

Answer:

Students will need to search for advertising expenditures and sales data for companies. For

example, 2013 advertising expenditures for the top 25 advertisers can be found at

http://adage.com/article/news/meet-america-s-25-biggest-advertisers/242969/. Students will

Company Case Notes

Volvo Trucks: Integrated Marketing Communications Of Epic Proportions

Synopsis

A few years ago, Volvo Trucks, one of the largest producers of commercial trucks in the world,

faced a big challenge. It was preparing for its first major product launch in 20 years—five new

truck models in one year. With that launch, Volvo Trucks needed an integrated communication

strategy that would achieve a lofty goal—to get people worldwide to talk about its commercial

trucks. Volvo Trucks wasn’t just interested in creating buzz amongst its normal target set of

corporate truck buyers. It wanted to appeal to regular folks in a way that would heighten their

awareness of the brand, elevate the brand’s cool factor, and get them talking, sharing, and

supporting the brand from Singapore to Swaziland. How it accomplished this—and how Volvo

Trucks keeps the brand in the public eye today—is an advertising coup of epic proportions.

Teaching Objectives

The teaching objectives for this case are to:

1. Grasp the general nature of integrated marketing communications.

2. Be introduced to the elements of the promotional mix.

3. Gain exposure to non-traditional methods of promotion.

4. Understand the importance for a correlation between promotion, brand, distribution, price,

and target customers.

Discussion Questions:

14-18 Which promotional mix elements does Volvo Trucks use?

Social media – The centerpiece of the “Live Tests” campaign is the multi-feature series of

short films launched individually on the Volvo Trucks YouTube channel and placed throughout

14-19 How does the “Live Tests” campaign demonstrate the characteristic of integrated

marketing communication? What grade would you give “Live Tests” on integration

effectiveness?

Student answers will vary. However, there is no question that it should be a strong grade.

Does the “Live Tests” campaign appear to be disjointed with different messages being

14-20 Is the consumer marketing approach taken by “Live Tests” appropriate for all B-to-B

marketers? Explain?

An increasing number of consumer-type promotional techniques seem to be working for B2B

14-21 What challenges does Volvo Trucks face in maintaining the success it has achieved with

this campaign?

First, this campaign was designed to promote five new truck models—a huge year for Volvo.

Teaching Suggestions

Go to Volvo Trucks’ YouTube channel: https://www.youtube.com/user/VolvoTrucks. Ahead of

time, choose a few Volvo Trucks’ videos to present. These could include some from the “Live

Tests” campaign. But Volvo Trucks has posted new material, extending the campaign. Use these

to reinforce the case study. You might also consider a different approach—put students into

groups or pairs. Give them a few minutes to find as many examples and references to Volvo

Trucks promotional efforts as they can by scouring all things online.

This case also works well with the advertising and PR chapter (Chapter 15), the direct and online

chapter (Chapter 17), and the global chapter (Chapter 19).

Go to mymktlab.com for the answers to the following Assisted-graded writing questions:

14-22 Name and describe the types of appeals marketers use when designing marketing

communication messages. What message structure issues must be considered when creating

messages?

14-23 Select an advertisement for a national brand. What type of appeal is the advertiser using?

Describe the message structure used. Create an advertisement for the brand that communicates the

same information but uses a different type of appeal and message structure.

ADDITIONAL PROJECTS, ASSIGNMENTS, AND EXAMPLES

Projects

1. Review the five components of the promotion mix. Find a merchant that is utilizing all

five components and describe how they are using each. (Objective 1)

2. Why are companies using less mass media and rather adding more specialized and highly

targeted media? What company uses both? Give examples of how that company is

accomplishing this. (Objective 2)

3. Consider the buzz marketing tactic of sending $40 off coupons for a smartphone to

teenagers who fit the profile of having large social networks. Develop a brief message to

accompany the coupons. Consider content, structure, and format issues. (Objective 3)

4. Give three examples of word-of-mouth communication that you personally have received

about some product. What was the nature of the communication and what impact did it

have on you? (Objective 3)

5. Describe the five promotion tools and discuss the factors that must be considered in

shaping the overall promotion mix. (Objective 4)

Small Group Assignments

1. Form students into groups of three to five. Each group should read Real Marketing 14.2:

Doing Good with Advertising and Marketing. Each group should then answer the

following questions and share their answers with the class. (Objective 2)

a. What are the key elements of an effective socially responsible marketing program?

b. What are the benefits to companies of using advertising and marketing to take a stand

on relevant social and environmental issues? Explain.

c. Are there disadvantages to a company in taking a stand on social and environmental

issues?

2. Form students into groups of three to five. Each group should review the basic elements of

the communication process (refer back to Figure 14.2). Each group should then answer the

following questions and share their answers with the class. (Objective 3)

a. What do the best messages consist of?

b. What are several key factors in good communications pointed out by the model?

c. What is “noise” and how does it potentially impact the communication process?

d. Apply the communication model to an Apple iMac television commercial. (If you need

to view one of their commercials, go to www.apple.com.)

Individual Assignments

1. Review the information on promotion mix. General Motors has been in the news

frequently in recent years. How is GM effectively (or not effectively) using each tool of

the promotion mix? (Objective 1)

2. Marketers can choose from two basic promotion mix strategies—push or pull promotion.

First, describe each. Larger companies typically use a combination of both strategies. Find

two examples of companies that are making successful use of both promotion mix

strategies. Describe what they are doing and why you believe it to be successful.

(Objective 4)

Think-Pair-Share

Consider the following questions, formulate an answer, pair with the student on your right, share

your thoughts with one another, and respond to questions from the instructor.

1. What is the difference between the marketing mix and the promotional mix?

(Objective 1)

2. Define the five types of promotion in the promotional mix. (Objective 1)

3. What is different about today’s promotional environment? What are the implications of

this? (Objective 2)

4. Identify the components of the personal communications process. Which element(s) is

(are) the most critical for successful communication? (Objective 3)

5. Define the various methods of setting a promotion budget. Which is the most effective?

(Objective 4)

6. What is “bait-and-switch” advertising? Give examples. (Objective 4)

Outside Examples

1. Sea Ray is one of today’s most successful manufacturers of sport boats, cruisers, and

yachts. They have models ranging from a small 17-foot sport boat up to a 61-foot motor

yacht. Take a look at the company (www.searay.com/index.asp). Learn about their product

offerings. Most importantly, learn and discuss how they employ the various elements of

the promotion mix. (Objective 1)

Possible Solution:

Sea Ray is successful in part because they have learned how to effectively use the

promotion mix elements. From a thorough review of their Web site, you can learn the

following: