MKTG Mid-Term: Chapter 1 Review

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Questions and Answers

What is marketing?

Human activity directed at satisfying needs and wants through exchange processes.

Which of the following is NOT a requirement for exchange to occur?

Two parties

Having the same interests (correct)

Agreement to terms

Capable of communication and delivery

Marketing communications is the collection of all elements of a firm's marketing mix that facilitates exchange.

True

Which element is NOT part of the promotional mix?

Supply chain management Signup and view all the answers

What is earned media?

When customers become the channel, such as through word of mouth. Signup and view all the answers

Paid media allows for high control and immediate results.

True Signup and view all the answers

The promotional tool that includes trade deals and buying allowances is known as __________.

trade promotions Signup and view all the answers

Which of the following is an example of owned media?

Website Signup and view all the answers

What is the first step in the Traditional Learning Hierarchy model?

Cognition Signup and view all the answers

Which of the following is a characteristic of Low Involvement Hierarchy?

Minimal Cognition before Conation Signup and view all the answers

What primarily drives brand loyalty?

Customer satisfaction and product quality Signup and view all the answers

Which of the following should NOT be a consideration when setting good Marcom objectives?

Vague and broad statements Signup and view all the answers

What type of objectives do campaigns aimed at enhancing brand awareness typically focus on?

Communications Objectives Signup and view all the answers

Which of the following factors can influence brand loyalty?

Positive customer experience Signup and view all the answers

In the Hierarchy of Effects Model, what comes after Affect in the Traditional Learning Hierarchy?

Conation Signup and view all the answers

Which of the following statements about personal experience and advertisements is accurate?

Advertisements initiate engagement while personal experiences build trust. Signup and view all the answers

What is the primary objective of Integrated Marketing Communications (IMC)?

Affect behaviour Signup and view all the answers

What is a crucial aspect of the IMC feature that focuses on branding?

Present a clear idea of the brand Signup and view all the answers

Which statement best describes the concept of 'Affect Behaviour' in IMC?

It seeks to influence consumer actions towards brands. Signup and view all the answers

Which IMC feature emphasizes the importance of consistency in messaging?

Achieve Synergy Signup and view all the answers

What is a primary challenge in implementing IMC according to the content?

Lack of skilled providers Signup and view all the answers

What is the primary function of Long-Term Memory (LTM) in relation to consumer choice?

To store unlimited information organized into coherent units. Signup and view all the answers

Which of the following statements accurately reflects a feature of IMC?

It encourages the use of direct-to-customer strategies. Signup and view all the answers

Which of the following best describes low involvement learning?

Involves minimal cognitive engagement leading to attitudes based on experience. Signup and view all the answers

Why are loyalty programs considered important in IMC?

They help build long-term relationships with existing customers. Signup and view all the answers

Which of the following describes a non-compensatory heuristic?

A method where an individual must meet certain criteria to make a choice. Signup and view all the answers

According to the levels of processing theory, how is information retained best?

Through deep semantic processing of the information. Signup and view all the answers

Which component of an attitude pertains to a person's beliefs and knowledge?

Cognitive Signup and view all the answers

What does a media-neutral approach suggest in a marketing strategy?

Flexibility in choosing the most effective communication channels Signup and view all the answers

What is one of the six tools of persuasion that involves psychological reactance theory?

Scarcity Signup and view all the answers

How does the receiver's initial position affect cognitive response type generated?

It influences the ratio of support and counter arguments generated. Signup and view all the answers

What does the spreading activation model primarily explain?

The retrieval of related concepts from memory. Signup and view all the answers

In the hierarchy of effects model, what is the sequence for high involvement learning?

Cognition -> Affect -> Conation Signup and view all the answers

What is one important factor in persuasion that involves the clarity and creativity of the message?

Message strength Signup and view all the answers

Which model is characterized by ranking the importance of attributes in decision-making?

Lexicographic Model Signup and view all the answers

What role does imagery play in the learning process?

It enhances the visualization of concepts for better understanding. Signup and view all the answers

What role does the 'commitment and consistency' tool play in persuasion?

Involves individuals sticking to their commitments once made. Signup and view all the answers

What is meant by 'concretising' in the context of information learning?

Making abstract concepts more relatable. Signup and view all the answers

In the context of setting marketing communication objectives, what is one key purpose?

To express management consensus on advertising goals. Signup and view all the answers

What can enhance a receiver's involvement in a persuasive message?

Ensuring personal relevance to the receiver. Signup and view all the answers

What is a disadvantage of working with a full-service advertising agency?

Potential financial instability Signup and view all the answers

Which of the following is primarily responsible for developing the overall media strategy?

Media planners Signup and view all the answers

In the agency organization, which department focuses on understanding the client’s customers' buying habits?

Research services Signup and view all the answers

What is one of the common elements of sticky ads that helps make a lasting impression?

Simplicity Signup and view all the answers

What is a primary role of account management in an advertising agency?

Linking the agency with the client Signup and view all the answers

Which option best describes the 'Impression Hierarchy' in advertising?

Brand Name, Commercial specifics, Emotional reaction Signup and view all the answers

What does the term 'unexpectedness' refer to in the context of advertising?

Surprising and innovative elements Signup and view all the answers

Which method is commonly used to acquire insights into consumers' preferences in advertising research?

Syndicated research data Signup and view all the answers

Study Notes

Marketing Fundamentals

Definition of Marketing: A human activity aimed at satisfying needs and wants through exchange processes.
Marketing Concept: Aligns company offerings with customer needs and wants.

Exchange Conditions

Requires two parties, both must possess something valuable to each other.
Parties must be capable of communication and delivery.
There must be freedom to accept or reject the offer.
An agreement on the terms of exchange is essential.

Communication in Marketing

Communications: Sharing meaning and establishing common understanding.
Marketing Communications: Collection of all elements in a marketing mix aimed at facilitating exchange through shared meanings with customers.

Marketing Mix

4Ps of Marketing: Product, Place, Promotion, and Price.
Promotional Mix Elements:
- Advertising
- Direct marketing
- Public relations
- Sales promotion
- Digital marketing/Social media
- Personal selling

Media Types

Earned Media: Generated when customers become the channel (e.g., word of mouth, buzz, viral content).
- Role: Reacting to earned media as a result of owned and paid media efforts.
- Benefits: Credibility, vital for sales, transparent.
- Challenges: Lack of control, potential negativity, scalability, measurement difficulties.
Paid Media: Instances where a brand pays to utilize a channel (e.g., display ads, paid searches).
- Role: Transforms from foundational to a catalyst that supports owned media and creates earned media.
- Benefits: High demand, immediacy, scale, and control.
- Challenges: Clutter, decreasing response rates, credibility issues.
Owned Media: Channels that a brand controls (e.g., website, blog, social media accounts).
- Role: Establish longer-term relationships with customers and support earned media.
- Benefits: Full control, cost efficiency, good longevity, versatility, niche targeting.
- Challenges: No guarantees, trust issues, scaling takes time.

Advertising Examples

Traditional Media: Billboards, TV, radio, magazines, newspapers.
Direct Response Advertising: Posters, transit ads, direct mail, telephone solicitation.
Digital Advertising: Online ads and cinema advertising.

In-Store Advertising

Point-of-Purchase Advertising: External store signs, in-store shelf signs, shopping cart ads, in-store radio/TV.

Trade and Consumer Promotions

Involves trade deals, buying allowances, cooperative advertising, industry trade shows, and promotional tactics like coupons and samples.

Event Marketing and Sponsorships

Sponsorships of sports, arts, fairs, and community causes play a significant role in brand visibility and engagement.

Key platforms include Facebook, Instagram, Twitter, Pinterest, Snapchat, LinkedIn, and YouTube for marketing outreach.

Digital Marketing Overall

Focus on mobile advertising and engaging with audiences through various digital channels for comprehensive marketing strategies.

Integrated Marketing Communication (IMC) Features

Begin with the customer or prospect to ensure the marketing strategy is customer-focused.
Employ a media-neutral approach to identify marketing communication (Marcom) program goals effectively.
Allocate the marketing budget in alignment with identified goals to maximize impact.

Key IMC Features

Utilize any relevant contact or touchpoints for 360 marketing strategies, exemplified by Apple Pay.
Maintain synergy across multiple messages to create a unified brand voice and consistent messaging across all platforms.
Establish and nurture relationships with customers, exemplified by Harley Davidson's focus on strong customer loyalty programs, which are more cost-effective than acquiring new customers.

Marketing Objectives

Aim to affect behavior as the ultimate goal of IMC; the objective is to move consumers to take action rather than merely boosting brand awareness or attitudes.
Shift from mass media advertising towards highly targeted communication methods to enhance relevance.
Increased emphasis on assessing communication’s return on investment (ROI) to justify marketing expenditures.

Challenges of Implementing IMC

Lack of skills among service providers poses a challenge for effective execution.
Mass media campaigns are easier to execute compared to direct-to-customer strategies.
Maintaining consistent execution of diverse marketing tools is critical.

Memory Models in Consumer Behavior

Sensory Stores: Rapid loss of information unless attention is allocated; involves short-term memory (STM).
Short-Term Memory: Limited processing time, information fades without rehearsal in about 30 seconds.
Long-Term Memory: Unlimited storage, structured into cognitive units called brand schemas, which marketers should aim to fill with positively valued information.
Additional theories: Levels of processing and spreading activation model.

Learning Types and Behavior Modification

Learning occurs through changes in information organization in memory, enhancing or establishing linkages among brand associations.
Low involvement learning focuses on concrete information to aid retrieval and improve recall.

Attitude Formation and Components

Attitude: A mental property reflecting positive or negative feelings towards a person, object, or issue.
Three components of attitude:
- Cognitive: Knowledge and beliefs.
- Affective: Emotional responses.
- Behavioral: Intentions to act.

Hierarchy of Effects Models

High involvement learning hierarchy follows: Cognition → Affect → Conation.
Low involvement hierarchy follows: Minimal Cognition → Conation → Affect.
The Hierarchy of Marcom Effects illustrates sequential consumer movement toward marketing goals.

Important Considerations in Persuasion

Message clarity, strength, and emotional appeal are crucial for effective communication.
Receiver involvement and predisposed attitude will influence the effectiveness of the message.
Moderate sources can be effective with positive initial positions, despite general skepticism towards advertisements.

Setting Marcom Objectives

Clearly define target audience, objectives, measurable outcomes, and ensure internal consistency.
Distinguish between indirect communication objectives (brand awareness, attitude enhancement) and direct sales objectives (sales increases).

Advertising Agency Structure

Creative services develop advertising concepts; media services handle media strategies; research services analyze consumer behavior and preferences.
Agencies typically compensate through commission structures, although this can lead to larger clients overshadowing smaller businesses.

Elements of Effective Advertising

Aim for sticky ads through simplicity, emotional resonance, storytelling, credibility, and unexpected elements to leave a lasting impression.
Prioritize establishing brand recognition, evoke emotional responses, and deliver specific commercial details in advertising campaigns.

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Description

Revise the fundamentals of marketing and the marketing concept with this mid-term quiz. Explore key principles that outline how marketing satisfies needs and wants through exchange processes. This quiz is essential for understanding the foundations of marketing strategies.