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Marketing and communication Exam 3

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Marketing and communication Exam 3 2. Why is the objective-and-task method of setting an IMC budget better than the rule-of-thumb methods?: Rule of thumb budget method: Can use percentage of sales or compet- itive parity (where you set budget qual to share of the market). Or you can do the available budget, which is the left over margin for IMC Objective and Task: You determine your budget that is required to accomplish the SMART objective. Problem is you need to be aware it can be costly and time-con- suming to get a real number, plus you might not be able to afford the actual budget needed. 3. How do firms use GRP to evaluate the effectiveness of traditional media: - Formula = Reach x Frequency

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Marketing and communication Exam 3



1. What are the different steps/components in the communication process?: 1. The sender
2. The transmitter (the agency creating ad)
3. The communications channel (the media type used)
4. The receiver (the targeted consumer)
5. Noise factors
6. Feedback factors
2. What is the AIDA model?: Provides a basis for understanding how marketing
communications works. Stands for Awareness, Interest, Desire, Action

3. What are the different elements of an IMC program?: - Personal Selling
-Sales Promotions
-Direct Marketing

- Advertising
- Public Relations
- Online Marketing

goal is to profit from long-term customer relationships

4. Why is the objective-and-task method of setting an IMC budget better than the rule-of-thumb
methods?: Rule of thumb budget method: Can use percentage of sales or compet- itive parity
(where you set budget qual to share of the market). Or you can do the available budget, which is
the left over margin for IMC


Objective and Task: You determine your budget that is required to accomplish the SMART
objective. Problem is you need to be aware it can be costly and time-con- suming to get a real
number, plus you might not be able to afford the actual budget needed.

5. How do firms use GRP to evaluate the effectiveness of traditional media: -
Formula = Reach x Frequency


Used to examine when and how often consumers have been exposed
1/
13

, Marketing and communication Exam 3
GRP is known as Gross Rating Points!!

6. How would a firm evaluate the effectiveness of its Google advertising?: You can use its Google
Ad Words to find the reach, frequency, ad relevance and ROAS for each of the keywords used in
the search campaign

7. What are the seven steps involved in planning an ad campaign?: 1. Identify Target Audience
2. Set Advertising Objectives




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