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Chapter 13: Integrated Marketing Communications

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Chapter 13: Integrated Marketing Communications

23 problems · 0 figures

Knowledge Check 13.1.1 §13.1 source ↗

The goal of an integrated marketing communications (IMC) program is to ________.
  1. a.
    have all of a company’s marketing and promotional activities project a consistent image and message to its target market
  2. b.
    control all facets of a product’s distribution
  3. c.
    communicate with customers only through television commercials
  4. d.
    have complete control over all facets of the marketing mix

Answer

A. have all of a company’s marketing and promotional activities project a consistent image and message to its target market
The goal of IMC is to communicate a clear and consistent message through various promotional mix methods that will reach the various segments of the target market.

Knowledge Check 13.1.2 §13.1 source ↗

One of the promotional mix methods is advertising. Advertising may be defined as any ________.
  1. a.
    communications about a good, service, or company
  2. b.
    paid forms of nonpersonal communication about a good, service, or company
  3. c.
    communication that moves the product from the wholesaler to the retailer
  4. d.
    communication from a company sales representative to a company buyer

Answer

B. paid forms of nonpersonal communication about a good, service, or company
The promotional mix method of advertising is a paid form of nonpersonal communication.

Knowledge Check 13.1.3 §13.1 source ↗

If you have a new brand and you want to reach a large consumer audience, which promotional mix element would probably be used?
  1. a.
    Sales promotion
  2. b.
    Personal selling
  3. c.
    Advertising
  4. d.
    Public relations

Answer

C. Advertising
Advertising is a paid form of nonpersonal communications meant to reach a large audience.

Knowledge Check 13.1.4 §13.1 source ↗

Dunkin’ includes coupons in its print magazine advertisements. This is an example of ________.
  1. a.
    sales promotion
  2. b.
    public relations
  3. c.
    personal selling
  4. d.
    Internet/digital promotion

Answer

A. sales promotion
Sales promotion includes coupons that help to induce sales in the short term.

Knowledge Check 13.1.5 §13.1 source ↗

When a singer who is voted off The Voice television series appears on Today to discuss the experience, it is an example of ________.
  1. a.
    advertising
  2. b.
    public relations
  3. c.
    sales promotion
  4. d.
    direct marketing

Answer

B. public relations
Public relations encompasses nonpaid activities that promote a product, service, idea, or person.

Knowledge Check 13.2.1 §13.2 source ↗

When a message is created and the company chooses to have a celebrity as the spokesperson, what does the celebrity represent in the communication process?
  1. a.
    Sender
  2. b.
    Feedback loop
  3. c.
    Medium
  4. d.
    Noise

Answer

A. Sender
The celebrity is the paid spokesperson of the company, and they are the sender of the message.

Knowledge Check 13.2.2 §13.2 source ↗

Which of the following is considered noise in the communication process?
  1. a.
    The sender sings a jingle.
  2. b.
    A special news bulletin interrupts a paid ad.
  3. c.
    The consumer calls the 800 telephone number displayed in the advertisement.
  4. d.
    The consumer clips the coupon from a mailer.

Answer

B. A special news bulletin interrupts a paid ad.
Noise is anything that gets in the way of the sender and the message intended for the receiver.

Knowledge Check 13.2.3 §13.2 source ↗

A popular form of communicating is through television advertisements. Which element of the communication process is the television advertisement?
  1. a.
    Noise
  2. b.
    Sender
  3. c.
    Medium
  4. d.
    Feedback loop

Answer

C. Medium
Television advertising is the medium through which the message is delivered.

Knowledge Check 13.2.4 §13.2 source ↗

Putting thoughts, ideas, or information together in symbolic form is called ________.
  1. a.
    encoding
  2. b.
    noise
  3. c.
    decoding
  4. d.
    sender

Answer

A. encoding
Encoding is the process of taking ideas and information and putting them into symbolic form.

Knowledge Check 13.2.5 §13.2 source ↗

The Tennessee Department of Tourist Development purchased and ad in Southern Living. The ad encouraged people to choose the state of Tennessee for summer vacations. Along with beautiful, scenic photos of Tennessee, the ad includes the tagline “Tennessee sounds good to me.” In this print ad, the source of the advertising message is ________.
  1. a.
    the Tennessee Department of Tourist Development
  2. b.
    Southern Living magazine
  3. c.
    the people in the scenic pictures
  4. d.
    readers of the magazine

Answer

A. the Tennessee Department of Tourist Development
The Tennessee Department of Tourist Development sent the message, so it is the source.

Knowledge Check 13.3.1 §13.3 source ↗

British Airways used the James Bond movie Die Another Day to show that James Bond flies first class. The airline also ran ads with the slogan “Save your moneypennys, fly like Bond,” which referenced one of the main characters in the film. The airline also posted ads where consumers were watching the movie. This an example of ________.
  1. a.
    the marketing mix
  2. b.
    distribution
  3. c.
    integrated marketing communications
  4. d.
    advertising

Answer

C. integrated marketing communications
The combination of product placement, paid advertising, and the screening of the film on the British Airways flights is an example of integrated marketing communications.

Knowledge Check 13.3.2 §13.3 source ↗

The goal of integrated marketing communications is to ________.
  1. a.
    have all marketing and promotional activities project a consistent unified image
  2. b.
    gain control of the distribution process
  3. c.
    use only paid methods of promotion
  4. d.
    develop a competitive pricing structure

Answer

A. have all marketing and promotional activities project a consistent unified image
Integrated marketing communications seeks to have all of the promotions send a consistent and unified image to the customer.

Knowledge Check 13.3.3 §13.3 source ↗

When Sally is able to quickly recall the Taco Bell ad and think about purchasing a Grilled Steak Burrito from Taco Bell when she is hungry, it indicates which of the following benefits of an integrated marketing communications approach?
  1. a.
    Increased efficiency
  2. b.
    Customer satisfaction
  3. c.
    Improved brand awareness
  4. d.
    Expense

Answer

C. Improved brand awareness
Sally’s ability to recall and think of Taco Bell to fulfill her needs is a benefit of improved brand awareness.

Knowledge Check 13.3.4 §13.3 source ↗

Tina knows that when she goes to Walgreens, she can use coupons and her reward points. She is thrilled with the way she saves money at Walgreens, and she is happy to be able to use so many of the great promotional opportunities. She tells many of her family and friends about her savings and her experience. Which of the following integrated marketing communications benefits is Tina demonstrating?
  1. a.
    Better results
  2. b.
    Increased efficiency
  3. c.
    Improved brand awareness
  4. d.
    Customer satisfaction

Answer

D. Customer satisfaction
Because Tina is satisfied and educated on all the ways to shop at Walgreens, she is exhibiting customer satisfaction.

Knowledge Check 13.3.5 §13.3 source ↗

When a marketer uses multiple promotional methods to send a consistent message to the consumer, they are demonstrating the use of ________.
  1. a.
    advertising
  2. b.
    public relations
  3. c.
    integrated marketing communications
  4. d.
    personal selling

Answer

C. integrated marketing communications
Using multiple promotional methods to send a consistent message is the goal of integrated marketing communications.

Knowledge Check 13.4.1 §13.4 source ↗

The first step in the IMC planning process is ________.
  1. a.
    determine the objectives
  2. b.
    determine the budget
  3. c.
    identify the target audience
  4. d.
    select the promotional tools

Answer

C. identify the target audience
The process should begin with a complete understanding of the target audience for the promotional efforts.

Knowledge Check 13.4.2 §13.4 source ↗

According to the 5A framework, when Jennifer uses the Panera Bread coupon sent through a text message to her mobile device, which stage of the customer journey is she in?
  1. a.
    Advocacy
  2. b.
    Aware
  3. c.
    Appeal
  4. d.
    Act

Answer

D. Act
Jennifer is acting on the promotional method Panera Bread used to reach her in the customer journey.

Knowledge Check 13.4.3 §13.4 source ↗

When advertising is scheduled to run constantly without variation, this is referred to as ________.
  1. a.
    flighting
  2. b.
    continuity
  3. c.
    reach
  4. d.
    pulsing

Answer

B. continuity
With continuity scheduling, an advertiser is showing its advertisement on a continuous schedule without variation.

Knowledge Check 13.4.4 §13.4 source ↗

When Nestlé shows an advertisement that has children coming down the stairs on Christmas morning to the smell of freshly baked Nestlé Tollhouse chocolate chip cookies, this is an example of which method of message appeal?
  1. a.
    Rational
  2. b.
    Emotional
  3. c.
    Fear
  4. d.
    Moral

Answer

B. Emotional
Nestlé Tollhouse is working to create an emotional connection with the consumer.

Knowledge Check 13.4.5 §13.4 source ↗

The CFO for Wendy’s tells the CMO that after doing the annual budget, there is only $700,000 left for marketing promotions. Which form of budgeting is Wendy’s using?
  1. a.
    Objective and task
  2. b.
    Competitive parity
  3. c.
    Affordable
  4. d.
    Percent of sales

Answer

C. Affordable
Wendy’s would be using all that their budget could afford for the marketing promotions.

Marketing Dashboard 13.4 §13.4 source ↗

Table 13.1 in the book ↗
Profit from the customer in the current period $38.00
Change in customer’s value in the current period $10.00
Customer’s value at the beginning of the period $21.00

IMC is centered on data-driven decision-making to drive organizational value. So it’s no surprise that the founder of IMC, Don Schultz, determined a way to measure IMC campaigns. Schultz calls this metric return on customer investment (ROCI). ROCI is a marginal analysis that shows the efficiency of marketing communications spending. We often think of effectiveness as the key measure of a campaign’s success. But equally important is the efficiency of how we spend resources. We should consider how hard our resource works for us.

We should also be concerned about how well our investment does in the short term and the long term. After all, we are trying to build financial returns for our organizations. ROCI looks at short- and long-term value by considering the change in profitability and value during the period and overall.

IMC considers all aspects of the marketing communications relationship, not just a single campaign. The ROCI metric looks at how revenue grows over time and not just in response to one action.

The formula for ROCI is as follows:

ROCI = Profit from Customer in Current Period + Change in the Customer’s Value in PeriodCustomer’s Value at the Beginning of the Period

Let’s say we own an ice cream shop and we are interested in the efficiency of our recent IMC campaign. So, we decide to conduct an ROCI calculation for an average customer using the following data. What is the ROCI?

Answer

$38.48

Marketing Dashboard 13.4 (b) §13.4 source ↗

Table 13.1 in the book ↗
Profit from the customer in the current period $38.00
Change in customer’s value in the current period $10.00
Customer’s value at the beginning of the period $21.00

IMC is centered on data-driven decision-making to drive organizational value. So it’s no surprise that the founder of IMC, Don Schultz, determined a way to measure IMC campaigns. Schultz calls this metric return on customer investment (ROCI). ROCI is a marginal analysis that shows the efficiency of marketing communications spending. We often think of effectiveness as the key measure of a campaign’s success. But equally important is the efficiency of how we spend resources. We should consider how hard our resource works for us.

We should also be concerned about how well our investment does in the short term and the long term. After all, we are trying to build financial returns for our organizations. ROCI looks at short- and long-term value by considering the change in profitability and value during the period and overall.

IMC considers all aspects of the marketing communications relationship, not just a single campaign. The ROCI metric looks at how revenue grows over time and not just in response to one action.

The formula for ROCI is as follows:

ROCI = Profit from Customer in Current Period + Change in the Customer’s Value in PeriodCustomer’s Value at the Beginning of the Period

Last period, the ROCI was $37.50. What factors might impact the change from the previous period to this period?

Answer

ROCI considers all aspects of the IMC relationship, so as the relationship grows, the ROCI does as well.

Marketing Dashboard 13.4 (c) §13.4 source ↗

Table 13.1 in the book ↗
Profit from the customer in the current period $38.00
Change in customer’s value in the current period $10.00
Customer’s value at the beginning of the period $21.00

IMC is centered on data-driven decision-making to drive organizational value. So it’s no surprise that the founder of IMC, Don Schultz, determined a way to measure IMC campaigns. Schultz calls this metric return on customer investment (ROCI). ROCI is a marginal analysis that shows the efficiency of marketing communications spending. We often think of effectiveness as the key measure of a campaign’s success. But equally important is the efficiency of how we spend resources. We should consider how hard our resource works for us.

We should also be concerned about how well our investment does in the short term and the long term. After all, we are trying to build financial returns for our organizations. ROCI looks at short- and long-term value by considering the change in profitability and value during the period and overall.

IMC considers all aspects of the marketing communications relationship, not just a single campaign. The ROCI metric looks at how revenue grows over time and not just in response to one action.

The formula for ROCI is as follows:

ROCI = Profit from Customer in Current Period + Change in the Customer’s Value in PeriodCustomer’s Value at the Beginning of the Period

What is the value of the ROCI calculation?

Answer

It determines the marketing communication campaigns that yield the most profitable customers.

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Problems and answers are adapted from Principles of Marketing by Maria Gomez Albrecht, Mark Green and Linda Hoffman, OpenStax, and are used under the CC BY-NC-SA 4.0 licence. Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction. Illustrations: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license. This adaptation is released under the same licence, is non-commercial, and is neither affiliated with nor endorsed by OpenStax or Rice University.