Marketing Concepts Quiz

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Questions and Answers

What type of exchange is characterized by a short-term orientation and motivated by self-interest?

  • Reciprocal exchange
  • Relational exchange
  • Redistributive exchange
  • Market exchange (correct)

Which type of exchange is driven primarily by the need to strengthen a relationship?

  • Redistributive exchange
  • Relational exchange
  • Market exchange
  • Reciprocal exchange (correct)

In which type of exchange do participants typically belong to a collective unit?

  • Market exchange
  • Redistributive exchange (correct)
  • Relational exchange
  • Reciprocal exchange

Which of the following exemplifies co-creation?

<p>A brand running a contest for customers to design a product (D)</p> Signup and view all the answers

What is a primary goal of integrated marketing communication (IMC)?

<p>Coordinate all marketing messages across channels (B)</p> Signup and view all the answers

How does relational exchange differ from market exchange?

<p>Relational exchange has a long-term orientation. (C)</p> Signup and view all the answers

What internal influence might affect a consumer's perception of a brand?

<p>Personal experience with the brand (C)</p> Signup and view all the answers

What motivates participants in redistributive exchange?

<p>Sharing resources with others (D)</p> Signup and view all the answers

What does the 'S' in SMART objectives stand for?

<p>Specific (D)</p> Signup and view all the answers

Which component of SMART indicates the need for a defined target?

<p>Measurable (C)</p> Signup and view all the answers

How did Netflix aim to create interest in the Indian market?

<p>Through outdoor advertising and focusing on youth (C)</p> Signup and view all the answers

Which step in the AIDA model corresponds to showing customers what Netflix has to offer?

<p>Desire (B)</p> Signup and view all the answers

During which stage of creating a SMART goal should one ask, 'When is this goal to be achieved?'

<p>Time-Bounded (A)</p> Signup and view all the answers

What was a major challenge Netflix faced when entering the Indian market?

<p>Availability of free content on other platforms (C)</p> Signup and view all the answers

Which of the following is NOT a factor of the SMART framework?

<p>Simplicity (C)</p> Signup and view all the answers

What action step did Netflix take in order to encourage subscriptions?

<p>Introduced multiple subscription plans (C)</p> Signup and view all the answers

What is a primary benefit of sponsorship for brands?

<p>It allows brands to blend tools in the communication mix. (D)</p> Signup and view all the answers

How does function-based similarity impact sponsorship effectiveness?

<p>It aligns the product with the sponsored event's activities. (A)</p> Signup and view all the answers

What is a potential criticism of the KFC and Susan G. Komen partnership?

<p>It creates confusion by suggesting unhealthy practices. (B)</p> Signup and view all the answers

What does image-based similarity in sponsorship reflect?

<p>The prestige the sponsor brings to the event. (C)</p> Signup and view all the answers

What should not be expected from a successful sponsorship relationship?

<p>Direct translation into sales. (D)</p> Signup and view all the answers

What can sponsorship help to diffuse among target audiences?

<p>Negative effects of traditional media. (A)</p> Signup and view all the answers

What is a key component in determining the effectiveness of a sponsorship relationship?

<p>Degree of fit between the parties. (A)</p> Signup and view all the answers

What argument do some critics make about KFC's association with the breast cancer awareness campaign?

<p>It contradicts health-conscious messaging. (D)</p> Signup and view all the answers

What primarily attracts sponsors to sports sponsorship?

<p>High media coverage and large audience reach (A)</p> Signup and view all the answers

What distinguishes programme sponsorship from traditional advertising?

<p>Broadcasting requirements prevent it from appearing as a standard advertisement (D)</p> Signup and view all the answers

What is a primary goal of point-of-purchase communications?

<p>To influence consumer decisions at the point of sale (D)</p> Signup and view all the answers

How has arts sponsorship evolved in its purpose?

<p>It has become a method for sophisticated brand targeting (B)</p> Signup and view all the answers

Which of the following represents a common misconception about sponsorship in the arts?

<p>It lacks strategic planning and targeting (B)</p> Signup and view all the answers

What purpose did the 'chill' n charge' tent at Glastonbury Festival serve for Orange?

<p>To develop their brand and increase purchase consideration (D)</p> Signup and view all the answers

What is the relationship between in-store advertising and consumer purchase decisions?

<p>In-store advertising significantly influences purchasing behavior (A)</p> Signup and view all the answers

Which statement is true regarding the distinction between programme sponsorship and product placement?

<p>Product placement is a type of programme sponsorship (B)</p> Signup and view all the answers

What was the purpose of the first written advertisement found in Thebes, Egypt?

<p>To promote a weaving shop and find a runaway slave (C)</p> Signup and view all the answers

What significant development in the 15th and 16th centuries contributed to modern advertising?

<p>Development of printing (C)</p> Signup and view all the answers

Which of the following is NOT a characteristic of advertising?

<p>It is primarily focused on verbal communication (A)</p> Signup and view all the answers

What type of appeals do emotional advertisements primarily rely on?

<p>Affective responses and image conveyance (B)</p> Signup and view all the answers

In which year was the first advertising agency, opened by William Taylor, established?

<p>1786 (D)</p> Signup and view all the answers

What is an example of BTL (Below The Line) advertising?

<p>Direct mail campaigns (A)</p> Signup and view all the answers

Which emotional appeal type is characterized by evoking laughter?

<p>Cognitive humor (A)</p> Signup and view all the answers

What percentage of Kellogg's communications budget is typically allocated to advertising?

<p>Over 80% (B)</p> Signup and view all the answers

What is a key benefit of segmenting emails by demographic?

<p>It ensures users receive messages they want to see. (D)</p> Signup and view all the answers

How does Google Display Ads optimize ad performance across the web?

<p>Using machine learning algorithms to combine ad assets. (A)</p> Signup and view all the answers

What does signing up for a Google Ads account allow you to do?

<p>Run search ads to drive traffic to your website. (C)</p> Signup and view all the answers

What is the primary payment model for social network advertising?

<p>Cost-per-click (CPC). (C)</p> Signup and view all the answers

What impact did the development of the U.S. have on direct marketing?

<p>It introduced technological advancements aiding distribution. (B)</p> Signup and view all the answers

What is the role of the Google Keyword Planner in advertising strategy?

<p>It estimates search volume for keywords. (D)</p> Signup and view all the answers

Which component is necessary for creating an ad campaign on social networks?

<p>An objective for the campaign. (C)</p> Signup and view all the answers

What is one function of AI tools in digital marketing?

<p>To generate creatives and automate tasks. (C)</p> Signup and view all the answers

Flashcards

Sponsorship

A commercial activity where one party allows another to use their association with a target audience in exchange for money, services, or resources.

Degree of fit

The level of similarity or compatibility between the sponsored entity and the sponsor.

Function-based similarity

Occurs when the product or service being sponsored is actually used in the event. For example, a piano manufacturer sponsoring a piano recital.

Image-based similarity

Reflects the image or values of the sponsor in the event. For example, an airline sponsoring a prestigious technical exhibition to promote its brand reputation.

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Awareness-based brand message

A type of sponsorship where the sponsor seeks to increase awareness of their brand among a specific audience.

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Association-based sponsorship

A sponsorship strategy that aims to create a perceived connection between the sponsor and the event, implying that the association is valuable or desirable.

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Third-party endorsement

Sponsorship allows brands to reach audiences indirectly through a third party, mitigating potential negative effects associated with traditional advertising methods.

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Communication mix

Sponsorship offers brands the ability to use diverse communication tools more effectively and efficiently.

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Sports Sponsorship

A type of sponsorship where companies invest in sporting events, teams, or athletes to gain visibility and connect with target audiences.

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Program Sponsorship

A type of sponsorship where companies invest in specific programs or shows on television, radio, or digital platforms to reach their target audience.

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Arts Sponsorship

A type of sponsorship where companies invest in arts-related events, organizations, or individuals to project a positive image and connect with a specific audience.

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Point-of-Purchase (POP) Communication

A strategy used by companies to engage consumers at the point of purchase, encouraging them to choose a specific brand or product.

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Packaging

A type of POP Communication where the product itself is used to communicate with consumers, often through branding, design, and packaging.

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POP Display

A type of POP Communication consisting of in-store displays and promotions designed to attract attention, highlight features, and encourage purchase.

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Visual Communication

A type of POP Communication that uses visual cues like eye-catching displays, vibrant colors, and interesting designs to attract consumers' attention.

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Verbal Communication

A type of POP Communication that uses words and phrases to convey information and messages to consumers at the point of purchase.

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SMART goals

A goal-setting framework that ensures objectives are specific, measurable, achievable, relevant, and time-bound.

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Marketing objective

A specific and measurable outcome that contributes to broader marketing or business objectives.

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AIDA model

A model that describes the stages consumers go through in their decision-making process: awareness, interest, desire, and action.

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Knowing your audience

The process of understanding your target audience's characteristics, needs, and preferences to tailor your marketing efforts effectively.

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Measurable marketing

The ability to measure the success of your marketing efforts in achieving specific goals.

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Creating interest

The process of generating interest and excitement in your product or service among potential customers.

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Driving action

Encouraging customers to take a specific action, such as purchasing a product or signing up for a service.

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Relational exchange

A type of exchange where the focus is on creating a lasting relationship, often involving frequent interactions and mutual support.

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Redistributive exchange

An exchange where goods or services are traded between individuals or groups belonging to a collective unit, often based on shared norms and values.

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Reciprocal Exchange

An exchange that occurs between individuals who have some form of connection, often involving the giving and receiving of gifts.

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Cocreation

A collaborative process where customers and businesses co-create value by working together on products, services, or experiences.

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Integrated Marketing Communication (IMC)

The process of managing and coordinating all marketing communications activities, including advertising, public relations, sales promotion, and direct marketing, to deliver a consistent message to the target audience.

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Integrated Marketing (IM)

A strategic approach that aims to harmonize all marketing messages sent by a company, utilizing the four Ps of marketing (product, price, place, promotion).

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Market exchange

The exchange of goods or services between individuals without any prior relationship or expectation of future interaction.

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Top of Mind

The first brand that comes to mind when thinking of a specific category.

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Emotional Advertising

An ad that tries to make customers feel something instead of think.

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Humor in Advertising

Using humor to get people's attention to the ad.

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ATL advertising

Categories of advertising that are typically placed in media such as TV, radio, print, and online.

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BTL advertising

Advertising strategies that focus on creating a direct experience with customers, like events, street marketing, or product sampling.

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Earliest Advertisement

The earliest example of an advertisement was found in ancient Egypt, written on papyrus around 3000 BC.

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Printing and Advertising

The development of printing in the 15th and 16th centuries was a major step forward in the evolution of advertising.

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Differentiation and Branding

Advertising plays a powerful role in differentiating brands and positioning them in the market.

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What is Advertising?

Any paid, non-personal communication through various media by an identified company, non-profit organization, or individuals.

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Email Segmentation

Dividing email lists into smaller groups based on factors like demographics, email size, and spam potential. This allows you to target specific audiences with relevant messages.

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Google Display Network (GDN)

Google's advertising network that allows you to display ads on millions of websites and apps, including Gmail and YouTube.

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Direct Marketing

A marketing strategy that involves sending targeted messages directly to individual consumers. Examples include mailers, catalogs, and email campaigns.

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Asset-based Ads

Components of an ad, such as headlines, descriptions, images, or logos. These assets are combined by Google's machine learning algorithms to create variations of your ad.

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Google Search Ads

Allows you to showcase your website listings at the top of search results. You pay when someone clicks on your ad and visits your site.

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Google Keyword Planner

A tool that helps assess potential keywords by analyzing search volume and competition. This helps you determine how much you should bid on each keyword.

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Social Network Advertising

Social media platforms like Facebook, Instagram, YouTube, and LinkedIn allow you to target specific audiences based on demographics, interests, and behaviors.

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AI Tools in Marketing

AI tools used for automating content creation, generating creative ideas, and optimizing copywriting tasks.

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Study Notes

Sponsorship Definition

  • Sponsorship is a commercial activity where one party allows another to associate with a target audience in return for resources, services, or funds.
  • It exposes brands to specific audiences.
  • It suggests an association between the brand and the sponsor.
  • It can diffuse negative effects associated with traditional mass media.
  • It allows for diverse communication tools and resource efficiency.

Degree of Fit

  • A key factor in sponsorship effectiveness is the degree of fit.
  • Fit is considered through two dimensions:
    • Function-based similarity: the product is used in the event.
    • Image-based similarity: the sponsor's image aligns with the event.

KFC Example

  • KFC partnered with Susan G. Komen for the Cure for breast cancer awareness.
  • Critics argued the partnership was hypocritical, as KFC food might increase cancer risk.

Most Used Sponsorship Types: Sports

  • Sports sponsorship is popular because:
    • High media coverage attracts audiences.
    • Large audiences across mediums.
    • Simplistic measure of segmentation

Coca-Cola at the Olympics

  • Coca-Cola highlighted the Olympic Games' unifying power.
  • They partnered with French artists to create unique can designs.

Program Sponsorship

  • Sponsorship agreements do not usually affect content or scheduling.
  • Sponsored content should avoid resembling regular (unsponsored) ads.
  • Sponsorship lines can blur with product placement and brand entertainment.

Point-of-Purchase (POP) Communication

  • POP (point-of-purchase) communication is a promotional tool inside a store.
  • 82% of purchase decisions occur in-store.
  • POP can attract attention, remind, inform, and persuade.

Store Atmosphere

  • Store atmosphere, such as music, can influence customer behavior.
  • Customers linger longer and buy more from restaurants playing their preferred genre of music.

Business Insight: Nike & Foot Locker

  • Nike and Foot Locker initially had a strained but then successful partnership.
  • Nike's order to Foot Locker decreased due to differing visions of products, sales, and price.
  • This caused significant issues and challenges for Foot Locker's sales.

Marketing Communication Tools: Public Relations

  • Public relations (PR) builds goodwill with audiences.
  • PR bridges the gap between company views and media coverage.
  • The PR function frequently reports directly to the CEO.

PR Strengths and Weaknesses

  • Strengths: Effective in influencing public perception, flexible messaging, cost-effective
  • Weaknesses: Difficult to measure effectiveness, lack of direct control, journalists act as gatekeepers.

PR Instruments and Channels

  • PR tools are used for internal and external communication.
  • Media relations are critical for disseminating information quickly.

Pepsi Case

  • Pepsi's 2017 ad featuring Kendall Jenner drew criticism for seemingly trivializing social issues.
  • The company swiftly apologized and discontinued the ad.

Marketing

  • Marketing involves managing competitive advantages, reaching customers, and providing messages to generate awareness.
  • It involves planning and executing the conception of product, pricing, promotion, and distribution.
  • It focuses on identifying and meeting customer needs.

Marketing Mix (4Ps)

  • Product: features and production.
  • Place: location and distribution.
  • Promotion: marketing channels and strategies.
  • Price: price strategy and profit margin.

Communication Process

  • Communication is the exchange of meaning through a shared symbolic system (e.g verbal or nonverbal).
  • Senders and receivers process information, impacting communication; filter and noise influence the process.
  • Laswell's model highlights factors like who, says what, in what channel, influencing outcomes.

One-Step Communication Flow

  • A direct message reaches the recipient.
  • Each recipient is independent in response.

Two-Step Communication Flow

  • The message reaches a specific audience via intermediary (influencer).
  • Personal influence affects target audience decisions.
  • This involves influencers as intermediaries, who filter messages potentially causing loss of some details

Multi-Step Communication Flow

  • Interconnected actors influence one another in the process.
  • Recipients act as message senders (e.g., social networks)

Marketing vs Communication

  • Marketing focuses on presenting the brand, while communication is about reaching the target audience.
  • Marketers aim to have their products/services sought after, via communication efforts, prompting a purchase or purchase consideration

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