SCHOOL OF MANAGEMENT SCIENCES DEPARTMENT OF MARKETING AND LOGISTICS MARKETING SECTION BACHELOR MARKETING PROGRAMME [21BMAR]

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1 SCHOOL OF MANAGEMENT SCIENCES DEPARTMENT OF MARKETING AND LOGISTICS MARKETING SECTION BACHELOR MARKETING PROGRAMME [21BMAR] MARKETING COMMUNICATIONS STRATEGY COURSE CODE: MLY612S (NQF Level 7) DATE: January 2016 DURATION: 2½ Hours MARKS: 100 EXAMINERS: Mr. S. Tjitamunisa Mr. E. Endjala MODERATOR: Ms. A.Shimuafeni 2 ND OPPROTUNITY EXAMINATION QUESTION PAPER (This paper consists of 11 pages including this front page) INSTRUCTIONS Attempt all questions Write as legible as possible, and as precise as possible. Read carefully for an in-depth understanding of each question before attempting it. Detach the tables on page 11, answer the multiple choice and true or false questions and attach it to your answer sheet. BEST OF LUCK 1 P age

2 SECTION A Question 1 [Multiple choice questions] Choose the correct answer and use the table provided on [page 11] to answer these questions, detach and insert it into your answer booklet. 1.5 marks shall be awarded for each correct answer. (30 x1.5 =45 Marks)] 1.1 In the marketing mix, where do integrated marketing communications belong? A) pricing decisions B) product design C) promotion D) distribution 1.2 The individual who is responsible for a specific brand or line of products is the: A) agency account executive B) brand manager C) media buyer D) media planner 1.3 Marlene just developed a new slogan to use in a company's advertising. Her main job is to think up these ideas and put them into the company's advertising plan. Marlene is a (n): A) account manager B) brand manager C) creative D) media manager 1.4 When a message is being heard or seen by a consumer, what is taking place? A) encoding B) transmission C) decoding D) feedback 1.5 Which is not part of a corporate image? A) tangible elements B) intangible elements C) what the company stands for as well as how it is known in the marketplace D) governmental regulations that affect the company 1.6 In the mind of the consumer, a strong corporate image is linked to: A) perceptions of economic conditions B) ratings by financial advisors 2 P age

3 C) reduction of search time in purchase decisions D) finding substitute goods when making purchases 1.7 A person's educational level combined with specific knowledge about a product category determines the: A) ability to search B) desire to search C) need for cognition D) involvement level 1.8 Developing an integrated marketing communications plan requires the analysis of the 3 C's, which consist of: A) current customers, competitors' customers, and former customers B) customers, competitors, and communications C) company, context, and IMC components D) communications, coupons, and customers 1.9 Market segments should be internally: A) heterogeneous B) identifiable C) unique D) homogeneous 1.10 A top-of-mind brand is: A) the company's chief competitor, as identified by a competitive analysis B) the brand that comes to mind in a product category when asked to name the first brands a person can think of C) the most expensive good or service in a product category D) a purchasing alternative when the primary product is not available 1.11 When a television advertisement makes a special offer on a piece of luggage, encouraging viewers to call a toll-free number to take advantage of the special, the ad is designed to meet the goal of: A) building brand image B) informing C) persuading D) encouraging action 1.12 A pulsating schedule of advertising: A) involves continuous advertising with bursts of higher intensity B) involves advertising during certain times of the year with no advertising at other times C) is level throughout the year D) involves alternating levels of advertising from high to low amounts 1.13 The best medium for using an emotional appeal is probably: 3 P age

4 A) magazines B) radio C) television D) newspapers 1.14 Scarcity appeals: A) only work in children's advertising because adults are aware of the ploy B) do not work for children because they cannot process the information C) urge consumers to buy a product because of some kind of limitation D) urge consumers to save money to buy the product later 1.15 Which message strategy has the goal of creating an impact on a person's beliefs or knowledge structure? A) affective B) conative C) cognitive D) resonance 1.16 An outline of the key ideas in an advertisement is the: A) message theme B) message strategy C) cognitive message D) generic message 1.17 The goal of a generic message strategy is to: A) increase brand loyalty B) persuade viewers of the brand's superiority C) make the brand synonymous with the product category D) preempt the competition from using a particular claim or benefit 1.18 A media strategy is the process of: A) investigating the media usage of a product's target market B) analyzing and choosing media for an advertising and promotions campaign C) selecting the outlets of each media that will be used for an advertising campaign D) choosing the proper appeal, message, strategy, and execution 1.19 The individual that negotiates rates for space on billboards and in magazines is the: A) creative B) media planner C) media buyer D) client 1.20 If an advertisement is placed in three different places in The Namibian and then runs for five issues, the number of opportunities to see (OTS) would be: A) 3 B) 5 4 P age

5 C) 15 D) depends on the gross rating points for The Namibian 1.21 Viral marketing relies on: A) a series of click-throughs B) use of search engine optimization C) highly visible banners D) word-of-mouth communications 1.22 All of the following are problems faced in International e-commerce, except: A) cultural differences B) global shipping and infrastructure deficiencies C) varying degree of Internet capabilities D) population shifts within other countries 1.23 Forms of alternative marketing include the following, except: A) video game marketing B) lifestyle marketing C) experiential marketing D) branded entertainment 1.24 Word-of-mouth marketing is also known as: A) guerilla marketing B) lifestyle marketing C) buzz marketing D) branded entertainment 1.25 A toy placed inside a box of cereal is an example of a(n): A) bonus pack B) in-package premium C) store premium D) self-liquidating premium 1.26 Which of the following consumers creates the most ideal form of buzz marketing for Guess jeans? A) Vanessa truly likes Guess jeans and tells others about how nice they are. B) Trinity likes Guess jeans, which allowed Guess' marketers to sponsor her to tell others about the brand. C) Guess has created a blog about Guess jeans and invites consumers to participate and offer their opinions, good and bad. D) Guess has one of its employees pose as a customer on her personal blog telling others about how great the jeans are Experiential marketing seeks to: 5 P age

6 A) engage individuals with the brand rather than just provide free samples B) generate buzz about a brand through stealth techniques C) engage individuals in generating social media buzz D) provide companies with a unique venue to reach consumers where they go for entertainment 1.28 A coupon placed on a package to be used during the purchase is called a(n): A) free-standing coupon B) bounce-back coupon C) instant-redemption coupon D) rebate coupon 1.29 Buzz, or word-of-mouth, marketing can be generated in the following ways, except: A) consumers who truly like a brand and tell others B) consumers who like a brand and are sponsored by a company to tell others C) companies developing user-generated ads or blogs D) company or agency employees posing as customers of the company, telling others about the brand 1.30 A "write our new slogan" event that awards a prize to the winning slogan is a(n): A) contest B) sweepstakes C) premium D) illegal activity 6 P age

7 Question 2 True or False Questions Use the table provided on [page 11] to answer these questions, detach and insert it into your answer booklet.1 marks shall be awarded for each correct answer. [10x 1 = 10 Marks] 2.1 When advertising creative takes an idea and transforms it into an advert, the process is known as decoding in a communications model. 2.2 Typically, advertising messages are decoded in the same way by large numbers of consumers because of the standard nature of the decoding process. 2.3 In addition to the traditional elements of advertising, sales promotions, and personal selling promotions now also includes activities such as database marketing, direct marketing, sponsorship marketing, internet marketing, guerrilla marketing, and alternative marketing. 2.4 Advertising management is the process of preparing and integrating a company's advertising efforts with the overall IMC message. 2.5 In business-to-business communications, advertising is often the primary promotion method with the other components of the promotional mix, such as trade promotions, consumer promotions, and personal selling supporting the advertising. 2.6 Part of the reasoning for using an in-house advertising department is that internal organization members have a better sense of the company's mission and message. 2.7 Preference occurs before knowledge or awareness in the hierarchy of effects model. 2.8 The attitude sequence of cognitive conative affective is based on the hierarchy of effects model sequence. 2.9 A cognitive message strategy is a presentation of rational arguments or pieces of information about a good or service A leverage point moves the consumer from understanding a product's benefits to linking those benefits with personal values. 7 P age

8 SECTION B [45 Marks] Question 1 [25 Marks] E-commerce, the commerce channel of the future (Source: retrieved on 16 Sep :45) As globalisation continues to promote an electronically focused world, consumers in South Africa and abroad are becoming increasingly adept at navigating the e-commerce realm with confidence. Whether conducting purchases online, checking sites for the best deals or for price comparisons, e-commerce has become the commerce channel of the future. Image credit: Supplied According to the South African E-commerce Report 2015, prepared by Effective Measure and IAB South Africa, a 94% increase in regular online purchases was experienced between December 2013 and December The availability of mobile data has further spiked online shopping statistics, and the report predicts that cheap mobile devices will result in even more e-commerce activity, as more people will now have the opportunity to shop online. The report's findings were based on a survey of the online shopping habits of 11,000 internet users in South Africa. Of the population surveyed, it was found that: almost 8% of online shoppers made weekly purchases; females are the most prominent online shoppers (making up 55% of visitors to shopping websites); and the 25 to 29-year-old demographic are most active, with 30- to 34-year-olds coming a close second. The report also showed that almost 65% of all online shoppers chose to shop from local South African e-commerce merchants, rather than purchasing from international sites. 8 P age

9 Eric Edelstein, CEO of Daddy's Deals, believes that people are becoming more comfortable with purchasing online due to an evolution that is akin to that of internet usage; at the onset people were sceptical but were slowly won over by the power of the World Wide Web. "In the past, in addition to the fact that either there weren't many people using the internet, or they hadn't been online long enough to feel comfortable with purchasing online, the variety of online shops was still limited. That has largely changed, with mobile internet access, a massive selection of products available online, and state-of-theart security ensuring safe online purchasing." Demand-driven market Considering the immense growth in online purchasing shown in just one year, it is not surprising that e- commerce companies have emerged to service a demand-driven market. Online stores and deal announcers may abound, but Edelstein feels that there is more to it. "E-commerce businesses should focus on building real awareness and excitement around their client's brands in smart and creative ways. The result shouldn't be a purchase only, but rather the acquisition and long-term retention of loyal customers. This will create a sustainable e-commerce sector, scalable to the daily growth currently being experienced. Airline tickets, books and hotel reservations were confirmed as the most purchased items online by the report. This indicates that the tourism and hospitality industries are leading the e- commerce trend, with 44.9% of purchases being for airline tickets, and 30.1% being for hotel reservations. According to Manie Smith, Hotel Manager of the Daddy Long Legs Hotel, for example, the hotel received great exposure through listing a deal on the Daddy's Deals e-commerce platform. "The outcome was so incredible that the hotel had to remove the special offer from the site just two days after going live, in order to deliver on the demand created in a mere 48 hours," said Smith. The Zulu Nyala County Manor also sold over 2,900 vouchers online for a dinner, bed and breakfast stay. This gave the manor the opportunity to up-sell game drives and cultural shows to guests, further enhancing the brand exposure value received. Similar success has been achieved for restaurants such as Moyo, Blouberg, which rebuilt its brand and re-established repeat business through offering a deal on the e-commerce site. As the e-commerce community continues to grow, a passion for excellence, real brand value and unprecedented exposure is what sets certain platforms apart from those that function to buy and sell only. By partnering the correct e-commerce business, merchants are given the opportunity to drive unprecedented awareness and growth for their businesses, while consumers are given greater buyer power. 1.1 What kinds of e-commerce incentives can be offered to encourage consumers to purchase products over the Internet? (5 Marks) 1.2 As per the case study, what are some advantages of e-commerce? (10 Marks) 9 P age

10 1.3 What concerns do some consumers still have about e-commerce? (10 Marks) Question 2 [20 Marks] 2.1 MTC spends N$13 million on advertising in the last financial year 2012/2013, as an advertising guru, justify to the Namibian taxpayers, whether advertising is really that important? (10 marks) 2.2 What recent trends make an IMC approach valuable to companies in the marketplace? (10 marks) 10 P age

11 SECTION A (DETACH AND HAND IN WITH YOUR ANSWER BOOKLET) Student no. Question 1: Multiple Choice [20 X 1.5 = 30 Marks] A B C D Question 2 True or False [20x 1 = 10 Marks] True False END P age