Chapter 13 – Timing + Scheduling 1. What does it mean to allocate advertising do
ID: 351640 • Letter: C
Question
Chapter 13 – Timing + Scheduling
1. What does it mean to allocate advertising dollars throughout the year in relation to
sales? What are the advantages and disadvantages of this strategy?
2. How can competitive advertising levels affect an advertiser’s timing strategy?
3. Some advertisers prefer their advertising to lead sales in order to assure higher
awareness or consideration when purchase decisions are being made. Compare this
timing strategy with the strategy of spending in relation to sales.
4. How does consumer purchase behavior affect the timing of advertising for
considered
products versus impulse products?
5. Discuss how the element of surprise can be used to gain a competitive advantage.
Chapter 14 – Media Budgets
6. Why is it so difficult to select an appropriate method (or methods) for developing an
advertising or marketing budget?
7. What are the advantages and disadvantages of developing a media budget based
on
percentage of sales or spending per unit?
8. What are the advantages and disadvantages of using the task method to develop a
budget?
9. Using the advertising/sales ratio method, calculate the budget for a brand with sales
of $150 million and an industry A/S ratio average of 2.2%.
Chapter 15 – Integrated Marketing Communications
10. Briefly explain the philosophy and rationale for using integrated marketing
communications.
11. What is trade promotion and which marketing tasks does it address?
12. What is product placement and what are its pros and cons?
13. If your job was to generate awareness and trial of the latest iPhone and you could
only choose three ways to promote it, which three marketing communications forms
would you use? Explain.
14. Describe a brand that has built a good relationship with you. Describe the
marketing communications functions used and the messages that have helped build
and sustain
your relationship with the brand.
15. Innovative companies like Intel, Nike, Coca-Cola and many more are embracing
social media and using it to their advantage. Name some of the different ways social
media can be used to enhance a traditional marketing communications plan.
16. Conduct a Google search for a story about a new product launch. In addition to the
story placement itself, what other traditional and digital/social media tactics were used
to introduce this product? What tactics could have been used that were not?
17. Describe an effective sales promotion involving both traditional and digital/social
media that captured your attention and offered an incentive to purchase that ultimately
led you to choose that brand over another. Detail the promotion and tell us how it
impacted your purchase decision.
Chapter 16 – Traditional Media
18. Based on the subjective analysis, choose at least three media types you would
select to communicate mouthwatering food imagery for Chipotle Mexican Grill?
Explain your
reasoning.
19. Which three media types would be most appropriate for communicating product
benefits and features that would persuade your target audience that the newest iPhone
is superior to the newest Android? Why?
20. If Target were having a Black Friday sale, which three mediums would you use to
communicate sales prices and immediacy? Why?
Explanation / Answer
1. Allocation of advertising dollars is always a dilemma for many marketing departments. The effectiveness of marketing channels against various marketing metrics are often complicated and does not return a true value of the channel. An organization usually uses multiple channels of advertisements for different objectives. However, the goal of advertisement is to eventually increase sales.
The revenue generated through sales is also used in return to fuel marketing (advertisement) budget. This means companies often have a strategy where X% of their revenue is channeled back for advertisement. The value of X depends on the industry and the product type. This is allocation of advertising dollars in relation to sale.
In simple term it means if a company generate Y amount of revenue then it will allocate X amount into advertisement where X is a static fraction of Y. For example, a company that generates $4 million monthly could allocate 25% of it for advertisement. Next month if the company generates $6 million it will allocate $1.5 million for advertisement and so on.
The advantages of this strategy is that the marketing spend is always along the line of business effectiveness. In an established industry this approach is fairly efficient.
The disadvantage of this strategy is that this approach does not work at all time. For example during the holiday season, the company may end up allocating budget according to previous month’s sales data. However, depending on the season they should spend more in order to get better result in the holiday season. So the seasonality factor is often overlooked by this approach.
2. Competitive advertising levels often create a bidding process in advertisement market. This means when there is the demand for a specific advertisement channel and slot increases the cost for advertisement too increases. For example, let’s say Coca-Cola wants to advertise on TV during super bowl. The slot price will definitely be higher for its competitors such as Pepsi. In order to maneuver through such situations Pepsi may decide to choose another channel or time slot that provides more value. The competition from Coca-Cola has definitely changed the way Pepsi was planning to advertise during super bowl.
In digital marketing the online advertisers often choose their timing for the best value. For example the USA business hours are often more expensive on Google adwords for any given keyword. Many companies with smaller budget choose to change the time of advertisement to night or early morning for this purpose. This may provide lesser result in terms of cardinality. However, it provides better value for money.
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