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Chapter Seven: Strategic Planning

CHAPTER SEVEN
Strategic Planning
GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS
1. ________ is the process of determining objectives, deciding upon strategies, and
implementing the tactics.
a. Marketing planning
b. Marketing research
c. Strategic research
d. Strategic planning
e. Advertising planning
(d; moderate; p. 1!"1#; $%1; AA&S' Anal(tic Skills)
!. ________ are *hat (ou *ant to accomplish *ith a strategic plan.
a. Strategies
b. %bjectives
c. +actics
d. Motives
e. ,nds
(b; eas(; pp. 1!"1#; $%1; AA&S' Anal(tic Skills)
#. ________ determine ho* to accomplish objectives outlined in a strategic plan.
a. Strategies
b. %bjectives
c. +actics
d. Motives
e. ,nds
(a; eas(; p. 1#; $%1; AA&S' Anal(tic Skills)
-. ________ make the strategic plan come to life.
a. Strategies
b. %bjectives
c. +actics
d. Motives
e. ,nds
(c; moderate; p. 1#; $%1; AA&S' Anal(tic Skills
.. Strategic planning is a three"tiered process that starts *ith the ________.
a. marketing plan
b. initial investment
c. business plan
d. advertising plan
e. goal formulation
(c; moderate; p. 1#; $%1; AA&S' Anal(tic Skills)
/. 0hich concept is a measurement that sho*s *hether, in general, the costs of conducting the
business"" the investment"" are more than matched b( the revenue produced in return.
a. marketing concept
b. customer concept
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Part "#o: Principle: Strategy is Creative, "oo
c. integrated marketing communications (1M&)
d. integrated marketing (1M)
e. return"on"investment (2%1)
(e; moderate; p. 1.; $%1; AA&S' Anal(tic Skills)
3. 4or most organi5ations, strategic planning starts b( ________.
a. formulating a business mission statement
b. identif(ing the target market
c. determining the re6uired return"on"investment
d. conducting an internal and e7ternal environment anal(sis
e. identif(ing the strategic business unit (S'8)
(a; moderate; p. 1., 4igure 3.!; $%1; AA&S' Anal(tic Skills)
9. +he ________ plan parallels the business strategic plan and contains man( of the same steps.
a. advertising
b. marketing
c. strategic business unit
d. tactical
e. semi"annual
(b; moderate; p. 1.; $%1; AA&S' Anal(tic Skills)
. A(n) ________ assesses the e7ternal and internal environments that affect the marketing
operations.
a. market situation anal(sis
b. point"in"time anal(sis
c. internal:e7ternal anal(sis
d. mission statement
e. action plan
(a; eas(; p. 1.; $%1; AA&S' Anal(tic Skills)
1;. 0hich anal(sis in the marketing planning process looks at the compan(<s histor(, products, and
brands, as *ell as the competitive environment, consumer trends, and other marketplace
trends that affect the product categor(=
a. market situation anal(sis
b. point"in"time anal(sis
c. internal:e7ternal anal(sis
d. mission statement anal(sis
e. action plan anal(sis
(a; eas(; p. 1."1/; $%1; AA&S' Anal(tic Skills)
11. +he percentage of the categor( purchases that are made b( the brand<s customers is kno*n
as ________.
a. sales levels
b. return"on"investment
c. share of market
d. share of voice
e. categor( share
(c; eas(; p. 1/; $%1; AA&S' Anal(tic Skills)
1!. 0hat is the most important part of the marketing plan for advertising managers=
a. marketing objectives
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Chapter Seven: Strategic Planning
b. threats and opportunities
c. marketing mi7 strateg(
d. evaluation and control
e. situation anal(sis
(c; moderate; p. 1/; $%1; AA&S' 2eflective +hinking)
1#. A(n) ________ plan is more tightl( focused on solving a particular marketing communication
problem than an annual advertising or 1M& plan . +(picall( it includes a variet( of messages
carried in different media and is sometimes targeted to different audiences.
a. business
b. marketing
c. communications
d. campaign
e. strategic business unit
(d; moderate; p. 13; $%!; AA&S' &ommunication)
1-. 1n *hich section of a t(pical advertising plan are media objectives, media vehicle selection
and budget allocations, and media scheduling stated=
a. situation anal(sis
b. ke( strategic decisions
c. media strateg(
d. message strateg(
e. campaign management
(c; eas(; p. 13; $%!; AA&S' &ommunication)
1.. 1n *hich section of a t(pical advertising plan are the advertising objectives, the target
audience, the brand position specified=
a. situation anal(sis
b. ke( strategic decisions
c. media strateg(
d. message strateg(
e. campaign management
(b; eas(; p. 13; $%!; AA&S' &ommunication)
1/. 1n *hich section of a t(pical advertising plan are ke( consumer insights, selling premise, the
big idea, and e7ecutions detailed=
a. situation anal(sis
b. ke( strategic decisions
c. media strateg(
d. message strateg(
e. campaign management
(d; eas(; p. 13; $%!; AA&S' &ommunication)
13. 1n a S0%+ anal(sis, strengths and *eaknesses are ________, and the opportunities and
threats are ________.
a. primar(; secondar(
b. internal; e7ternal
c. secondar(; primar(
d. e7ternal; internal
e. long"term; short"term
(b; moderate; pp. 19"1; $%!; AA&S' Anal(tical Skills)
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Part "#o: Principle: Strategy is Creative, "oo
19. 1n a S0%+ anal(sis, a(n) ________ is an area in *hich the compan( could develop an
advantage over its competition.
a. strength
b. *eakness
c. opportunit(
d. threat
e. leverage
(c; moderate; p. 1; $%!; AA&S' Anal(tical Skills)
1. 1n a S0%+ anal(sis, a(n) ________ of a business are its positive traits, conditions, and good
situations.
a. strength
b. *eakness
c. opportunit(
d. threat
e. leverage
(a; moderate; p. 1; $%!; AA&S' Anal(tical Skills)
!;. 1n a S0%+ anal(sis, a(n) ________ is a trend or development in the environment that *ill
erode business unless the compan( takes action.
a. strength
b. *eakness
c. opportunit(
d. threat
e. leverage
(d; moderate; p. 1; $%!; AA&S' Anal(tical Skills)
!1. 1n a S0%+ anal(sis, a(n) ________ of a business is a trait, condition, or situation that is
perceived as negative.
a. strength
b. *eakness
c. opportunit(
d. threat
e. leverage
(b; moderate; p. 1; $%!; AA&S' Anal(tical Skills)
!!. 0hat kind of problems can advertising solve=
a. product
b. price
c. perception
d. availabilit(
e. all of the above
(c; moderate; p. 1; $%!; AA&S' Anal(tical Skills)
!#. 0hich advertising and 1M& strateg( or strategies are commonl( used to affect perception=
a. information
b. attention and a*areness
c. emotions
d. action
e. image and s(mbols
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Chapter Seven: Strategic Planning
(b; difficult; p. !;1 >4igure 3.-?; $%!; AA&S' Anal(tical Skills)
!-. 0hich of the follo*ing is @%+ a re6uirement for a measurable objective=
a. a specific effect that can be measured
b. a time frame
c. a baseline
d. percentage change
e. a h(pothesis
(e; moderate; p. !;!; $%!; AA&S' Anal(tical Skills)
!.. 0hich of the follo*ing is @%+ a re6uirement for a measurable objective=
a. a specific effect that can be measured
b. a behavioral component
c. a time frame
d. a baseline
e. percentage change
(b; moderate; p. !;!; $%!; AA&S' Anal(tical Skills)
!/. Aetermining *hat place a product should occup( in a given market is called ________.
a. benchmarking
b. targeting
c. segmenting
d. positioning
e. competitive advantage
(d; moderate; p. !;!; $%!; AA&S' Anal(tical Skills)
!3. 1n *hich marketing process is the objective to establish a location in the consumer<s mind
based on *hat the product offers and ho* that compares *ith the competition=
a. benchmarking
b. targeting
c. segmenting
d. positioning
e. competitive advantage
(d; moderate; p. !;!; $%!; AA&S' Anal(tical Skills)
!9. 1n *hich t(pe of anal(sis do (ou make a chart of (our products and competitors< products, list
each product<s relevant features, evaluate ho* *ell the product and the competitors<
products perform on that feature, and then evaluate ho* important each feature is to the
target audience=
a. situation anal(sis
b. positioning anal(sis
c. feature anal(sis
d. differential anal(sis
e. market situation anal(sis
(c; moderate; p. !;-; $%!; AA&S' Anal(tical Skills)
!. ________ lies *here the product has a strong feature in an area that is important to the
target and the competition is *eaker.
a. Bosition
b. &ompetitive advantage
c. Aifferentiation
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Part "#o: Principle: Strategy is Creative, "oo
d. 'rand position
e. 'rand e6uit(
(b; moderate; p. !;-; $%!; AA&S' Anal(tical Skills)
#;. 0hich strateg( is designed to create product differences that distinguish the compan(<s
product from all others in the e(es of consumers=
a. product differentiation
b. competitive advantage
c. feature anal(sis
d. benchmarking
e. objective"and"task method
(a; moderate; p. !;.; $%!; AA&S' Anal(tical Skills)
#1. Broducts that reall( are the same, such as milk, unleaded gas, and over"the"counter drugs, are
referred to as ________ products.
a. generic
b. differentiated
c. parit(
d. unpositioned
e. positioned
(c; moderate; p. !;.; $%!; AA&S' Anal(tical Skills)
#!. A location in a consumer<s mind *here the product or brand is placed relative to its
competitors on the basis of the ke( factors the consumer uses to make a decision is kno*n as
a ________.
a. position
b. differential advantage
c. competitive advantage
d. brand
e. point
(a; moderate; p. !;.; $%!; AA&S' Anal(tical Skills)
##. 0hat do planners use to compare positions of competitors=
a. brand plot
b. situation plot
c. differential map
d. perceptual map
e. scree plot
(d; moderate; p. !;.; $%!; AA&S' Anal(tical Skills)
#-. Advertising shapes the position of a brand, but *hat anchors it in the target audience<s mind=
a. personal e7periences
b. price
c. distribution
d. perceptions
e. other marketing communication tools
(a; difficult; p. !;/; $%!; AA&S' &ommunication)
#.. 0hich of the follo*ing is @%+ a common advertising budgeting method=
a. historical method
b. objective"task method
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Chapter Seven: Strategic Planning
c. consumer insight method
d. percentage"of"sales method
e. all (ou can afford
(c; moderate; pp. !;"!1;; $%!; AA&S' &ommunication)
#/. 0hich advertising budgeting method ma( simpl( be based on last (ear<s budget, *ith a
percentage increase for inflation or some other marketplace factor=
a. historical method
b. objective"task method
c. competitive budgets
d. percentage"of"sales method
e. all (ou can afford
(a; moderate; p. !;; $%!; AA&S' &ommunication)
#3. 0hich advertising budgeting method develops the budget from the ground up so that
objectives are the starting point=
a. historical method
b. objective"task method
c. competitive budgets
d. percentage"of"sales method
e. all (ou can afford
(b; eas(; p. !;; $%!; AA&S' &ommunication)
#9. 0hich advertising budgeting method compares the total sales *ith the total advertising
budget during the previous (ear or the average of several (ears to compute a percentage=
a. historical method
b. objective"task method
c. competitive budgets
d. percentage"of"sales method
e. all (ou can afford
(d; eas(; p. !1;; $%!; AA&S' &ommunication)
#. 0hich advertising budgeting method uses competitors< budgets as benchmarks and relates
the amount invested in advertising to the product<s share of market=
a. historical method
b. benchmarking method
c. competitive budgets
d. percentage"of"sales method
e. comparative budgets
(c; moderate; p. !1;; $%!; AA&S' &ommunication)
-;. 0hat concept represents the advertiser<s media presence=
a. share of advertising voice
b. share of mind
c. market share
d. competitive share
e. percent of sales
(a; moderate; p. !1;; $%!; AA&S' &ommunication)
-1. +(picall(, companies using *hich of the follo*ing advertising budgeting methods don<t value
advertising as a strategic imperative=
a. historical method
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b. objective"task method
c. competitive budgets
d. percentage"of"sales method
e. all (ou can afford
(e; moderate; p. !1;; $%!; AA&S' &ommunication)
-!. 0hich step of the advertising plan details the process b( *hich the effectiveness of the
campaign is determined=
a. situation anal(sis
b. ke( strategic decisions
c. media strateg(
d. message strateg(
e. campaign management
(e; eas(; p. !1;; $%!; AA&S' &ommunication)
-#. 0hich of the follo*ing element(s) are at the heart of an advertising plan=
a. audience insight, message, medium
b. product strateg( and planning
c. pricing strateg(
d. distribution decisions and kno*ing the consumer
e. problem solving and understanding markets
(a; moderate; p. !1;; $%#; AA&S' &ommunication)
--. ________ is the research"and"anal(sis process used to gain kno*ledge and understanding of
the consumer, understanding that is e7pressed as a ke( consumer insight into ho* people
relate to a brand or product.
a. Account planning
b. Advertising planning
c. &onsumer planning
d. Message planning
e. Media planning
(a; moderate; p. !11; $%#; AA&S' &ommunication)
-.. 0ho in an advertising agenc( uses the research"and"anal(sis process to research a brand and
its customer relationships in order to devise advertising message strategies that are
effective in addressing consumer needs and *ants=
a. account manager
b. account planner
c. media director
d. creative director
e. research director
(b; moderate; p. !11; $%#; AA&S' &ommunication)
-/. 0ho in an advertising agenc( is often described as Cspeaking for the consumerD or Cspeaking
*ith the voice of the consumerD=
a. account manager
b. account planner
c. media director
d. creative director
e. research director
(b; moderate; p. !11; $%#; AA&S' &ommunication)
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Chapter Seven: Strategic Planning
-3. 0hich of the follo*ing is @%+ considered a task performed b( an account planner=
a. 8nderstand the meaning of the brand.
b. Articulate communication strategies.
c. ,valuate the effectiveness of the communication in terms of ho* the target reacts
to it.
d. Brepare creative briefs based on an understanding of the consumer and the brand.
e. Aecide the pricing strateg( of the brand.
(e; moderate; p. !11; $%#; AA&S' &ommunication)
-9. 0hich of the follo*ing is @%+ considered a task performed b( an account planner=
a. 2esearch the brand.
b. Aevise advertising message strategies.
c. Aevelop communication strategies.
d. 8ses a disciplined s(stem to gain consumer insight.
e. pricing strateg( planning
(e; difficult; p. !11; AA&S' &ommunication)
-. 0hat is at the basis of all account planning=
a. consumer research
b. pricing plans
c. message strategies
d. product management
e. distribution management
(a; moderate; p. !1;; $%#)
.;. 0ho in an advertising agenc( has been compared to a social anthropologist because he or she
is in touch *ith cultural and social trends and understands ho* the( take on relevance in
people<s lives=
a. account manager
b. account planner
c. media director
d. creative director
e. research director
(b; moderate; p. !1!; $%#; AA&S' Multicultural and Aiversit()
.1. 0hat is the fuel that fires the ideas for an account planner=
a. consumer insight
b. increasing trends
c. critical thinking
d. creative thinking
e. creative brief
(a; difficult; p. !1!; $%#; AA&S' Anal(tical Skills)
.!. 0hat is the greatest challenge for an account planner that has been described as Cpeering
into nooks and crannies *ithout losing sight of the big picture in order to identif( a ke(
insight that can transform a client<s businessD=
a. consumer insight
b. critical thinking
c. creative thinking
d. insight mining
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Part "#o: Principle: Strategy is Creative, "oo
e. insight anal(sis
(d; difficult; p. !1!; $%#; AA&S' Anal(tical Skills)
.#. 0hich of the follo*ing is @%+ considered an important dimension that account planners seek
to understand in planning brand strategies=
a. the brand relationship
b. perceptions
c. media usage
d. the promise
e. the point of differentiation
(c; difficult; p. !1-; $%#; AA&S' &ommunication)
.-. +he outcome of strategic research usuall( reaches agenc( creative departments in the form
of a strateg( document called a ________.
a. communication brief
b. research brief
c. strateg( brief
d. message brief
e. competitive brief
(a; moderate; p. !1-; $%#; AA&S' &ommunication)
... +he outcome of strategic research usuall( reaches agenc( creative departments in the form
of a strateg( document called a ________.
a. creative brief
b. research brief
c. strateg( brief
d. message brief
e. competitive brief
(a; moderate; p. !1-; $%#; AA&S' &ommunication)
./. 0hich document e7plains the consumer insight and summari5es the strateg( decisions=
a. creative brief
b. research brief
c. strateg( brief
d. message brief
e. competitive brief
(a; moderate; p. !1-; $%#; AA&S' &ommunication)
.3. 0hich of the follo*ing is @%+ included in a communication brief=
a. proposition or selling idea
b. problem
c. target audience
d. brand imperatives
e. objectives of the sales force
(e; eas(; pp. !1-"!1.; $%#; AA&S' &ommunication)
.9. 0hich element of the communication brief details the brand<s essence, personalit(, and
image=
a. communication objectives
b. problem
c. target audience
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Chapter Seven: Strategic Planning
d. brand imperatives
e. proposition or selling idea
(d; moderate; pp. !1-"!1.; $%#; AA&S' &ommunication)
.. 0hich element of the communication brief states the single"minded thought that the
communication *ill bring to life in a provocative *a(=
a. communication objectives
b. problem
c. creative direction
d. brand imperatives
e. proposition or selling idea
(e; moderate; pp. !1-"!1.; $%#; AA&S' &ommunication)
/;. 0hich element of the communication brief provides the reason to believe the proposition=
a. brand position
b. support
c. creative direction
d. brand imperatives
e. proposition or selling idea
(b; moderate; pp. !1-"!1.; $%#; AA&S' &ommunication)
/1. 0hat is the difference bet*een an advertising plan and an 1M& plan=
a. the time frame of the plan
b. the amount of research conducted to develop the plan
c. the scope of the plan and the variet( of marketing communication areas involved in
the effort
d. the formalit( of the plan
e. the message
(c; moderate; p. !1.; $%-; AA&S' &ommunication)
/!. 0hich of the follo*ing does @%+ represent an area *here an 1M& plan is different from an
advertising plan=
a. stakeholders
b. time frame
c. contact points
d. objectives
e. internal marketing
(b; moderate; p. !1.; $%-; AA&S' &ommunication)
/#. ________ refers to an( group of people *ho have a stake in the success of a compan( or a
brand.
a. Shareholder
b. Stakeholder
c. &ontact point
d. +arget group
e. Market segment
(b; moderate; p. !1.; $%-; AA&S' &ommunication)
/-. Support from emplo(ees for marketing, advertising, and marketing communication programs is
managed through an activit( called ________.
a. internal public relations
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b. internal relations
c. internal marketing
d. internal contact points
e. internal objectives
(c; moderate; p. !1.; $%-; AA&S' &ommunication)
/.. ,mplo(ees, customers, shareholders, and elected officials are all e7amples of ________.
a. contact points
b. the internal audience
c. the audience
d. stakeholders
e. interested parties
(d; moderate; p. !1.; $%-)
//. ________ are all the *a(s and places *here a person can come into contact *ith a brand; all
the points *here a message about the brand is delivered.
a. Stakeholders
b. &ontact points
c. 1M& points
d. &ontact levels
e. 1nternal points
(b; moderate; p. !1.; $%-; AA&S' &ommunication)
/3. &ontact points, *hich are all the *a(s and places *here a person can come into contact *ith a
brand or all the points *here a message about the brand is delivered, are also called
________.
a. internal points
b. critical points
c. stake points
d. objective points
e. touch points
(e; moderate; p. !1.; $%-; AA&S' &ommunication)
/9. 1ncrease sales, attract attention at selection point, deliver product information, or create
brand reminder are t(pical objectives for *hich marketing communication area=
a. public relations
b. direct marketing
c. packaging
d. specialties
e. mass media
(c; moderate; p. !1/ >+able 3.-?; $%-; AA&S' &ommunication)
/. 0hich of the follo*ing is @%+ a t(pical objective for public relations=
a. encourage repeat purchase
b. announce ne*s
c. affect attitudes and opinions
d. ma7imi5e credibilit( and likeabilit(
e. create and improve stakeholder relationships
(a; moderate; p. !1/ >+able 3.-?; $%-; AA&S' &ommunication)
3;. 0hich of the follo*ing is a t(pical objective of consumer sales promotion=
a. announce ne*s
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Chapter Seven: Strategic Planning
b. build industr( acceptance
c. push through the channel
d. create pull through the channel
e. create brand e7perience
(d; moderate; p. !1/ >+able 3.-?; $%-; AA&S' &ommunication)
GENERAL CONTENT: TRUE/FALSE QUESTIONS
31. Market planning is the process of determining objectives, deciding on strategies, and
implementing the tactics to occur *ithin a specified time frame.
(4alse; moderate; p. 1!; $%1)
3!. Marketing planning occurs subse6uent to business planning.
(+rue; moderate; p. 1#; $%1)
3#. A business plan ma( cover a specific division of the compan( or a strategic business unit, such
as a line of products or all the offerings under a single brand name.
(+rue; moderate; p. 1.; $%1)
3-. +he business planning process starts *ith a business mission statement that is uni6ue,
focused, and differentiating, one that supports the broad goals and policies of the business
unit.
(+rue; eas(; p. 1.; $%1)
3.. A market situation anal(sis assesses the e7ternal and internal environments that affect the
marketing operations.
(+rue; moderate; p. 1.; $%1)
3/. +he objectives at the marketing level tend to be focused on return"on"investment.
(4alse; moderate; p. 1.; $%1)
33. 4or advertising managers, the most important part of the marketing plan is the marketing mi7
strateg(.
(+rue; moderate; p. 1/; $%1)
39. A t(pical advertising or 1M& plan includes a situation anal(sis, ke( strategic decisions, media
strateg(, message strateg(, other tools (in an 1M& plan), and campaign management.
(+rue; moderate; p. 13; $%!; AA&S' &ommunication)
3. +he situation anal(sis of a t(pical advertising or 1M& plan includes background research, a
S0%+ anal(sis, and ke( advertising problems to be solved.
(+rue; moderate; p. 13; $%!; AA&S' &ommunication)
9;. Ee( strategic decisions in a t(pical advertising plan include media objectives, media vehicle
selection and budget allocation, media scheduling, ke( consumer insight, and the selling
premise.
(4alse; moderate; p. 13; $%!; AA&S' &ommunication)
91. 1n strategic planning the idea is to leverage the strengths and opportunities and to ignore or
avoid the *eaknesses and threats.
(4alse; moderate; p. 1; $%!; AA&S' &ommunication)
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Part "#o: Principle: Strategy is Creative, "oo
9!. Anal(sis of S0%+s means finding *a(s to address the *eaknesses and threats and leverage
the strengths and opportunities.
(+rue; moderate; p. 1)
9#. A strength is an area in *hich the compan( could develop an advantage over its competition.
(4alse; difficult; p. 1; $%!; AA&S' &ommunication)
9-. Advertising planners must anal(5e the market situation for an( communication problems that
affect the successful marketing of a product, as *ell as opportunities that advertising can
create or e7ploit.
(+rue; eas(; p. 1; $%!; AA&S' &ommunication)
9.. Advertising can solve onl( message"related problems such as image, attitude, perception, and
kno*ledge or information.
(+rue; moderate; p. 1; $%!; AA&S' &ommunication)
9/. Advertising can affect the *a( consumers perceive price, availabilit(, and 6ualit(, but it
cannot solve problems related to the price of the product, availabilit(, or 6ualit(.
(+rue; eas(; p. 1; $%!; AA&S' &ommunication)
93. 4or advertising to be trul( effective, it must focus on onl( one effect at a time.
(4alse; moderate; p. !;!; $%!; AA&S' &ommunication)
99. +he advertiser<s basic assumption is that advertising *orks if it creates an impression,
influences people to respond, and separates the brand from the competition.
(+rue; moderate; p. !;!; $%!; AA&S' &ommunication)
9. 'enchmarked means using a comparable effort to predict a logical goal.
(+rue; moderate; p. !;!; $%!; AA&S' Anal(tical Skills)
;. +he first step in crafting a position is to identif( the importance and performance of (our
brand to determine competitive advantage.
(4alse; moderate; p. !;-; $%!; AA&S' Anal(tical Skills)
1. A product must be differentiated on tangible differences for it to create long"lasting
product differentiation.
(4alse; difficult; p. !;.; $%!; AA&S' &ommunication)
!. A position is a location in a consumer<s mind *here the product or brand is placed relative to
its competitors on the basis of the ke( factors the consumer uses to make a decision.
(+rue; moderate; p. !;.; $%!; AA&S' 2eflective +hinking)
#. Bositioning represents one of advertising<s most critical tasks.
(+rue; moderate; p. !;/; $%#; AA&S' &ommunication)
-. +he historical method of advertising budgeting compares the total sales *ith the total
advertising budget during the previous (ear or the average of several (ears to compute a
percentage.
(4alse; moderate; pp. !;"!1;; $%#; AA&S' Anal(tical Skills)
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Chapter Seven: Strategic Planning
.. &ompanies using the all (ou can afford method of advertising budgeting do not value
advertising as a strategic imperative.
(+rue; moderate; p. !1;; $%#; AA&S' &ommunication)
/. An advertiser<s Cshare of voiceD is determined b( comparing the amount spent on advertising
to the advertiser<s sales.
(4alse; moderate; p. !1;; $%!; AA&S' &ommunication
3. Account planning is the research"and"anal(sis process used to gain kno*ledge and
understanding of the consumer, understanding that is e7pressed as a ke( consumer insight
into ho* people relate to a brand or product.
(+rue; moderate; p. !11; $%#; AA&S' &ommunication)
9. +he outcome of strategic research usuall( reaches agenc( creative departments in the form
of a strateg( document called a message brief.
(4alse; moderate; p. !1-; $%#; AA&S' Anal(tical Skills)
. 8nder the brand position section of a communication brief, the brand essence, brand
personalit(, and image are described.
(4alse; difficult; p. !1-; $%#; AA&S' &ommunication)
1;;. +he proposition or selling idea component of a communication brief describes the single
thought that the communication *ill bring to life in a provocative *a(.
(+rue; difficult; p. !1.; $%#; AA&S' &ommunication)
1;1. ,mplo(ees, investors, government bodies, and business partners are e7amples of corporate
level stakeholders.
(+rue; moderate; p. !1/ >+able 3.#?; $%-)
1;!. S(nergistic points are all the *a(s and places *here a person can come into contact *ith a
brand.
(4alse; moderate; p. !1.)
1;#. +(pical objectives for public relations include announce ne*s, affect attitudes and opinions,
ma7imi5e credibilit( and likeabilit(, and create and improve stakeholder relationships.
(+rue; moderate; p. !1/ >+able 3.-?; $%-; AA&S' &ommunication)
1;-.+he account planner is the voice of the consumer.
(+rue; moderate; p. !11; $%#)
1;.. +(pical objectives for point"of"purchase displa(s are to increase immediate sales, attraction
attention at the decision point, create interest, stimulate urgenc(, and encourage trial and
impulse purchasing.
(+rue; moderate; p. !1/ >+able 3.-?; $%-; AA&S' &ommunication)
GENERAL CONTENT: ESSA QUESTIONS
1;/. &ompare and contrast a business plan, a marketing plan, and an advertising plan.
Ans*erF
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Part "#o: Principle: Strategy is Creative, "oo
Strategic planning is a three"tiered process that starts *ith the business plan, then moves to
functional areas of the compan( such as marketing *here a marketing plan is developed that
outlines objectives, strategies, and tactics for all areas of the marketing mi7. 'oth the
business plan and the marketing plan contribute direction to specific plans for specialist
areas, such as advertising and other areas of marketing communication.
A business plan ma( cover a specific division of the compan( or a strategic business unit. +he
objectives for planning at this level tend to focus on ma7imi5ing profit and 2%1. +o a large
e7tent, the marketing plan parallels the business strategic plan and contains man( of the
same components. 4inall(, the advertising planning operates *ith the same concern for
objectives, strategies, and tactics that are outlined for business and marketing plans.
(difficult; pp. 1#"13; $%1; AA&S' 2eflective +hinking)
1;3. Aescribe the components and purpose of a S0%+ anal(sis.
Ans*erF
+he primar( tool used to make sense of information is a S0%+ anal(sis, *hich stands for
strengths, *eaknesses, opportunities, and threats. +he strengths and *eakness are internall(
focused and the opportunities and threats lie in the e7ternal marketing environment. 1n
strategic planning, the idea is to leverage the strengths and opportunities and address the
*eaknesses and threats, *hich is ho* the ke( problems and opportunities are identified. More
specificall(, the components of the S0%+ anal(sis areF
(1) StrengthsGA business<s positive traits, conditions, and good situations.
(!) 0eaknessesGA business<s traits, conditions, and situations that are perceived as
negatives.
(#) %pportunit(GAn area in *hich the compan( could develop an advantage over its
competition.
(-) +hreatGA trend or development in the environment that *ill erode business unless
the compan( takes action.
(eas(; p. 19"1; $%!; AA&S' Anal(tical Skills)
1;9. @ame and describe the five common advertising budgeting methods.
Ans*erF
+he five advertising budgeting methods areF
(1) HistoricalG'ases a budget on last (ear<s budget, perhaps *ith a percentage increase
for inflation or some other marketplace factor. +hough eas(, it has little to do *ith
reaching advertising objectives.
(!) %bjective"+askG$ooks at the objectives for each activit( and determines the cost
of accomplishing each objective. +he advantage of this method is that it develops the
budget from the ground up so that objectives are the starting point.
(#) Bercentage"of"SalesG&ompares the total sales *ith the total advertising budget
during the previous (ear or the average of several (ears to compute a percentage.
(-) &ompetitive 'udgetsG8ses competitors< budgets as benchmarks and relates the
amount invested in advertising to the product<s share of market. +his suggests that
the advertiser<s share"of"advertising voice affects the share of attention the brand
*ill receive, and that, in turn, affects the market share the brand can obtain.
(.) All Iou &an AffordGAllocate *hatever is left over to advertising. 1t<s not reall( a
2$% Copyright 2009 Pearson Education, Inc. Publishing as Prentice all
Chapter Seven: Strategic Planning
method, but rather a philosoph(, and companies using this approach don<t value
advertising as a strategic imperative.
(moderate; pp. !;"!1;; $%!; AA&S' 2eflective +hinking)
1;. Aefine account planning, and identif( the tasks involved.
Ans*erF
Account planning is the research"and"anal(sis process used to gain kno*ledge and
understanding of the consumer, understanding that is e7pressed as a ke( consumer insight
into ho* people relate to a brand or product. An account planner, then, is a person in an
agenc( *ho uses this disciplined s(stem to research a brand and its customer relationships in
order to devise advertising (and other marketing communication) message strategies that are
effective in addressing consumer needs and *ants. +he account planner<s tasks involveF
(1) 8nderstand the meaning of the brand.
(!) 8nderstand the target audience<s relationship to the brand.
(#) Articulate communication strategies.
(-) Brepare creative briefs based on understanding of consumer and brand.
(.) ,valuate the effectiveness of the communication in terms of ho* the target reacts
to it.
(difficult; pp. !1;"!11; $%#; AA&S' 2eflective +hinking)
11;. @ame and describe the nine components of the communication brief that *ere given in the
&ommunication 'rief %utline that is used at %gilv( and Mather.
Ans*erF
+he communication brief includes the follo*ing componentsF
(1) BroblemG0hat<s the problem that communication can solve=
(!) +arget AudienceG0ho do *e *ant to speak to=
(#) &onsumer 1nsightG0hat motivates the target= 0hat are the major truths about
the target<s relationship to the product categor( or brand=
(-) 'rand 1mperativesG 0hat are the important features= 0hat<s the point of
competitive advantage= 0hat<s the brand<s position relative to competition= 0hat
are the brand essence, brand personalit(, and image=
(.) &ommunication %bjectivesG0hat do *e *ant them to do in response to our message=
(/) +he Broposition or Selling 1deaG0hat is the single thought that the communication
*ill bring to life in a provocative *a(=
(3) SupportG0hat is the reason to believe the proposition=
(9) &reative directionGHo* can *e best stimulate the desired response= Ho* can *e
best sa( it=
() Media imperativesG0here and *hen should *e sa( it=
(difficult; pp. !1-"!1.; $%1; AA&S' &ommunication)
APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS
111. Eodak defined the film categor( for more than a centur(. 1n the late 1;s Eodak faced a
major _______ from digital development b( Son( and He*lett"Backard.
a. monopol(
b. Eodak moment
Copyright 2009 Pearson Education, Inc. Publishing as Prentice all 2$&
Part "#o: Principle: Strategy is Creative, "oo
c. threat
d. strength
e. *eakness
(c; difficult; p. 11)
11!. 0hich of the follo*ing *as @%+ a ke( point from EodakJs situation anal(sis=
a. Eodak needed to be more direct in adopting a digital point of vie*.
b. Eodak needed to make a big statement.
c. &onsumersJ attitudes to*ard pictures *ould probabl( sta( the same *hen the( use
digital.
d. &onsumersJ *ill not care about the pictures the( decide to keep.
e. &onsumers liked the concept of deleting un*anted pictures.
(d; difficult; p. 1!)
11#. +he follo*ing statement appeared in an organi5ation<s business planF CKuick and Airt( Auto
2epair aims to offer high"6ualit( auto repair services and a full range of auto parts. KAA2
focuses on personali5ed service to its customers b( offering convenience and rapid service.
Additionall(, KAA2 is technologicall( savv( *ith computeri5ed monitoring of all parts
inventor(, to ensure that parts are al*a(s in stock, *hile keeping a balanced level of inventor(
to ma7imi5e inventor( turnover. 4inall(, KAA2 has strong vendor relationships *ith the most
service"conscious vendors *ho are capable of shipping major parts rapidl( (on an overnight
timeline in most cases).D 0hich part of a business plan does this represent=
a. business objectives
b. business mission
c. marketing objectives
d. business goals
e. business strateg(
(b; moderate; p. 1.; $%1; AA&S' 2eflective +hinking)
11-. Adam is assisting in the development of his compan(<s marketing plan, and he has been
assigned to assess the e7ternal and internal environments that affect the marketing
operations. He *ill be looking at the compan(<s histor(, products, and brands, as *ell as the
competitive environment, consumer trends, and other marketplace trends that affect the
product categor(. 0hat t(pe of anal(sis is Adam conducting=
a. business anal(sis
b. competitive anal(sis
c. internal:e7ternal anal(sis
d. market situation anal(sis
e. categor( anal(sis
(d; moderate; p. 1.; $%1)
11.. +on( developed the follo*ing objective for his advertising planF C1ncrease market share in the
consumer market from 1; percent to 1. percent in one (ear.D 0hat is *rong *ith this
advertising plan objective=
a. 1t is an objective more appropriate for a marketing plan.
b. 1t does not have a specific effect that can be measured.
c. +he goal is not realistic.
d. 1t does not include a time frame.
e. 1t does not provide a percentage change.
(a; difficult; p. 1/; $%1; AA&S' Anal(tic Skills)
11/. Eenisha just started *orking at a major consumer packaged goods manufacturer, and her
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Chapter Seven: Strategic Planning
duties entail assisting in the development of the advertising plan. She has been given her
compan(<s business and marketing plans to help her prepare the advertising plan. 4rom her
perspective, *hich part of *hich plan is most important=
a. the marketing mi7 strateg( of the marketing plan
b. the business mission statement of the business plan
c. the marketing mi7 strateg( of the business plan
d. the target market section of the marketing plan
e. the threats and opportunities section of the business plan
(a; difficult; p. 1/; $%1)
113. @e*man<s %*n is a brand of salad dressing. 1n !;;-, lo*"carboh(drate dieting became the
cra5e among consumers, *ith millions supposedl( follo*ing a lo*"carb lifest(le. 1n their print
advertising, @e*man<s %*n featured the fact that several of their dressings are lo* in
carboh(drates. 1n terms of a S0%+ anal(sis, the lo*"carb diet trend among consumers
represents a(n) ________.
a. strength
b. *eakness
c. opportunit(
d. threat
e. all of the above
(c; moderate; p. 1; $%1; AA&S' 2eflective +hinking)
119. @e*man<s %*n is a brand of salad dressings, and 1n !;;-, lo*"carboh(drate dieting became
the cra5e among consumers, *ith millions supposedl( follo*ing a lo*"carb lifest(le. 1n print
advertising, @e*man<s %*n featured that fact that several of their dressings are lo* in
carboh(drates. 1n terms of a S0%+ anal(sis, the fact that the brand *as lo* in
carboh(drates represents a(n) ________.
a. strength
b. *eakness
c. opportunit(
d. threat
e. all of the above
(a; moderate; p. 1; $%1; AA&S' 2eflective +hinking)
11. 0hat strateg( did Special E, *hich *as described in C+he 1nside Stor(,D pursue to reach its
marketing objective of capitali5e on consumersJ goals to lose *eight as a @e* IearJs
resolutions=
a. Aeluged the market right after the holida(s *ith +L commercials.
b. Bositioned Special E as a comple7 *eight loss solution to a complicated problem.
c. &onvince customers of a competitor<s brand to s*itch to Special E.
d. Aesigned a poster campaign reaching *omen at the moment the( are in need of a
*eight"loss solution and delivering a simple diet in the conte7t of their environment.
e. &onvince more men to eat Special E because of the high fiber content of the cereal
*ith advertising on sub*a(s.
(d; moderate; p. !;;)
1!;. At *hat market *as the AunkinJ Aonuts coffee campaign, described in te7t directed=
a. nondrinkers of coffee
b. the average Moe coffee drinker *ho *as intimidated b( ordering espresso drinks.
c. people *ho s*itched among several brands of coffee
d. *omen
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Part "#o: Principle: Strategy is Creative, "oo
e. (oung professionals
(b; moderate; p. !11)
1!1. As described in CA Matter of Bractice,D *hat objective did 3"8p have=
a. to pick up the green 3"8p bottle mentall( in the consumersJ mind and move it to
*here Bepsi and &oke *ere.
b. to penetrate the 'ritish consumer market.
c. to change the perception that 3"8p *as too e7pensive..
d. to change the perception that 3"8p *as unhealth(.
e. to capture a large share of the famil( market soft drink e7penditures.
(a; moderate; p. !;3)
1!!. As described in CA Matter of Bractice,D *hat did J8ncolaJ do for 3"8p=
a. 1t appealed to the Mature market segment.
b. 1t positioned 3"8p as a medicinal drink.
c. 1t positioned 3"8p as a mi7er..
d. 1t positioned 3"8p as a cola, (et not a cola.
e. 1t appealed to moms as the perfect drink for children.
(d; moderate; p. !;3)
1!#. &arrie is tr(ing to describe the uni6ue personalit( for the brand that the creative team in her
advertising agenc( *ill be developing ads for. She<s tr(ing to put into *ords the brand<s
essence, its personalit(, and image. 1n *hich component of the communication brief *ill this
information be included=
a. problem
b. target audience
c. brand position
d. brand imperatives
e. brand s(nopsis
(d; moderate; p. !1-; $%#; AA&S' 2eflective +hinking
1!-. 1n NBractical +ipsN function of the _______ is to kno* *hat consumers think and feel and
ho* the( behave *hen it come to the products and services the compan( sells.=
a. account planner
b. advertiser
c. insights team
d. strategic team
e. target audience planner
(c; moderate; p. !1#; $%#)
1!.. 0hich of the follo*ing statements is true regarding the results of EodakJs Oaller( campaign=
a. 1t demonstrates that brands have enormous po*er, even those brands that seem
spent, and the creative can pla( a pivotal role in bringing them back to life.
b. +he campaign did not *in an ,ffie.
c. +he campaign did not *in the $ondon 1nternational A*ard.
d. +here *as no change in the top"of"mind a*areness of Eodak as a compan( that makes
digital products during the first si7 *eeks of the campaign.
e. EodakJs market share did not change as a result of the campaign.
(a; difficult; p. !13)
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Chapter Seven: Strategic Planning
1!/. According to the case at the end of the chapter, entitled C&hasing the @AS&A2 4an,D ho* did
Mosh $inkler get information to better understand the @AS&A2 audience=
a. He combined information from several secondar( data sources, such as A.&. @ielsen,
Mediamark, and Simmons, to devise a @AS&A2 fan persona.
b. He conducted several focus group intervie*s *ith @AS&A2 fans right at the races
b( providing them pri5es for participating.
c. He devised a promotion *here @AS&A2 fans *ere given an Ce"decoderD device to
compare *ith a code given on a 0eb site to see if the( are *inners of pri5es, and
the( could do this dail( *ith the provision that the( gave a small amount of personal
information each time the( pla(ed.
d. He devised a promotion in *hich one @AS&A2 fan *as announced as a *inner at each
race, but to enter the promotion, participants had to give personal information.
e. He used several different promotion tools, such as s*eepstakes, contests, games,
and premiums to get @AS&A2 fans to provide personal information in order to be
eligible for pri5es.
(c; moderate; p. !!;; $%1; AA&S' 8se of 1+)
APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE
Susan is *orking on the advertising plan for her compan(<s brand of shampoo named Silkience. She has
conducted a S0%+ anal(sis and learned that her compan( enjo(ed a strong financial position and has
good *orking relations *ith the resellers of their brands. +he primar( target customers for this
brand are *omen bet*een the ages of #. and .;, and demographic anal(sis indicates that this age
demographic *ill gro* in double digits over the ne7t 1; (ears. Silkience targets *omen *ho ma( be
having concerns about gra(ing hair, and it is a gentle shampoo that *ill not *ash out color, especiall(
semi"permanent color that *omen of this age tend to use. Ho*ever, she also learned that the target
customers do not perceive her compan(<s brand of shampoo as a brand for them but rather for a
(ounger consumer because their previous ads tended to use (ounger"looking models. +here *as also
nothing in the previous advertising campaigns that reall( e7plained the benefits of their brand, such
as suggesting that it *as gentler for semi"permanent"colored hair.
1!3. Mini"&ase Kuestion. 1n terms of the S0%+ anal(sis, the fact that the demographic anal(sis
indicated that this age group of *omen *ill increase considerabl( in the ne7t 1; (ears
represents a(n) ___________.
a. strength
b. *eakness
c. opportunit(
d. threat
e. gro*th potential
(c; moderate; p. 1; $%!; AA&S' &ommunication)
1!9. Mini"&ase Kuestion. +he place in consumers< minds that placed Silkience among other brands
targeted to (ounger *omen represents Silkience<s ________.
a. position
b. competitive advantage
c. competitive disadvantage
d. product differentiation
e. perceptual map
(a; moderate; p. !;!; $%1)
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Part "#o: Principle: Strategy is Creative, "oo
1!. Mini"&ase Kuestion. Silkience reall( is different from other shampoos because it is so gentle
that it does not fade semi"permanent hair color, allo*ing a *oman to go for a longer period
time before having to color her hair again. 0hat does this product attribute represent=
a. opportunit(
b. product differentiation
c. brand position
d. brand essence
e. brand imperative
(b; moderate; p. !;.; $%!; AA&S' 2eflective +hinking)
1#;. Mini"&ase Kuestion. +o determine the advertising budget, Susan divided last (ear<s
advertising e7penditures b( last (ear<s sales and then multiplied that b( this (ear<s sales
forecast. 0hich advertising budgeting method did Susan use=
a. historical method
b. objective"task method
c. percentage"of"sales method
d. all"(ou"can"afford method
e. competitive budgeting method
(c; eas(; p. !1;; $%!; AA&S' 2eflective +hinking)
APPLICATION QUESTIONS: SHORT-ANS!ER
1#1. 0hat *ere the ke( points from EodakJs situation anal(sis=
Ans*erF
(1) Eodak needed to be more direct in adopting a digital point of vie*.
(!) Eodak needed to make a big statement.
(#) &onsumersJ attitudes to*ard pictures *ould probabl( sta( the same *hen the( use
digital.
(-) &onsumersJ *ill care about the pictures the( decide to keep.
(.) &onsumersJ *ant to delete pictures the( donJt *ant.
(moderate; p. 1!)
1#!. Aistinguish bet*een strategic planning, strategies, and tactics.
Ans*erF
Strategic planning is the process of determining objectives (*hat (ou *ant to accomplish),
deciding on strategies (ho* to accomplish the objectives), and implementing the tactics
(*hich make the plan come to life).
(eas(; pp. 1!"1#; $%1; AA&S' Anal(tical Skills)
1##. Sarah is tr(ing to think of *a(s to better define the marketing problem she is facing. $ist
three C0hat<s going on=D t(pe 6uestions that might be helpful to Sarah in defining the
marketing problem.
Ans*erF
2%0 Copyright 2009 Pearson Education, Inc. Publishing as Prentice all
Chapter Seven: Strategic Planning
Students can give an( three of the follo*ingF
(1) 0hat is happening *ith the brand and the categor(=
(!) Ho* is it happening=
(#) 0here is it happening=
(-) 0hen is it happening=
(.) +o *hom is it happening=
(moderate; p. 1/; $%1; AA&S' 2eflective +hinking)
1#-. 2ichard is tasked *ith developing the campaign plan for his famil(<s business. Oive a general
outline of the major components of the plan.
Ans*erF
A t(pical outline for a campaign plan includes the follo*ingF (1) situation anal(sis, (!) ke(
strategic decisions, (#) media strateg(, (-) message strateg(, (.) other marcom tools used in
support and (/) campaign management
(eas(; p. 13; $%1; AA&S' &ommunication)
1#.. 4iona *as given the information learned in the situation anal(sis and *as tasked *ith
developing the ne7t component of an advertising plan. $ist the elements that she needs to
include in this part of the plan.
Ans*erF
After the situation anal(sis, ke( strategic campaign decisions need to be determined.
Specificall(, 4iona needs to determine the objectives the target audience, the brand
position, and campaign strateg(.
(moderate; p. 13; $%1; AA&S' 2eflective +hinking)
1#/. +om *as given the task of *riting the objectives for an advertising plan. 'riefl( e7plain the
logic of objectives.
Ans*erF
Oiven the huge amounts of mone( spent on advertising, it is important for advertisers to kno*
*hat to e7pect from a campaign or ad. %bjectives are formal statements of the goals of the
advertising or other marketing communication. +he( outline *hat the message is designed to
achieve and ho* it *ill be measured.
(moderate; p. 1"!;;; $%1; AA&S' 2eflective +hinking)
1#3. 0hile *orking on a campaign plan for a client, Madeleine *as given the task of understanding
the brandJs position *ithin the competitive marketplace. 0hat is a position of a brand=
Ans*erF
A "#$iti#n is a place in consumers< minds *here the product or brand stands in comparison to
its competitors. A position is usuall( based on a particular feature or attribute (Holida( 1nn
,7pressGsho*erheads), although it can be ps(chological, such as heritage (Eodak), or both
Copyright 2009 Pearson Education, Inc. Publishing as Prentice all 2%!
Part "#o: Principle: Strategy is Creative, "oo
(Aove). +he target decision is the starting point because the brand position is determined b(
ho* customers see the brand in the marketplace.
(moderate; p. !;!; $%!; AA&S' Anal(tical Skills)
1#9. Aescribe ho* 3"8p, described in CA Matter of Bractice,D repositioned its brand.
Ans*erF
3"8p *anted to turn a medicinal product, *hich is also used as a mi7er *ith *hisk(, into a soft
drink *ithout changing an(thing about the product or its packaging. Breceding 1/3 3"8p *as
marketed, consumers didn<t think of 3"8p as a soft drink, just as *e don<t think of club soda
and tonic *ater as soft drinks. 1n 1/3, a soft drink *as a cola, and a cola *as a soft drink. 3"
8p had to find a *a( to pick up that green bottle (3"8p), pick it up mentall( in consumers<
minds, and move it over to *here &oke and Bepsi *ere. And until the( did that, an(thing 3"8p
did that smacked of soft"drink advertising *as going to be rejected b( consumers. +he 3"8p
advertising team thought of J8ncolaJGit did ever(thing the( *anted to do. 1n one *ord, it did
it all. 1t positioned 3"8p as a cola, (et not a cola. +oda(, the 3"8p 8ncola campaign is
regarded as perhaps the classic e7ample of brand positioningGand a classic e7ample of ho*
the right brand positioning can lead to marketing magic.
(moderate; p !;3)
1#. &aroline needs to develop the advertising budget for her marketing group<s brand. She *ants
to use a method that is the best and most defensible. 0hich method should she use=
Ans*erF
+he objective"task method looks at the objectives for each activit( and determines the cost
of accomplishing each objective. +his method<s advantage is that it develops the budget from
the ground up so that objectives are the starting point, *hich makes it easier to justif( than
the other budgeting methods because the( are not tied directl( to the objectives.
(moderate; p. !;; $%1; AA&S' Anal(tical Skills)
1-;. ,ric is the account planner a major advertising agenc(. 0hat three elements are at the heart
of an advertising plan and represent the decisions ,ric is responsible for as the account
planner=
Ans*erF
+hese three elements are at the heart of an advertising plan and the agenc(<s planner is
responsible for making the follo*ing decisionsF
(1) Audience 1nsightG0hom are (ou tr(ing to reach and *hat insight do (ou have about
ho* the( think, feel, and act= Ho* should the( respond to (our advertising message=
(!) MessageG0hat do (ou sa( to them= 0hat directions from the consumer research
are useful to the creative team=
(#) MediumGHo* and *here *ill (ou reach them= 0hat directions from the consumer
research are useful to the media team=
(moderate; pp. !1;"!11; $%#; AA&S' &ommunication)
1-1. Iou notice that an advertising agenc( is recruiting on (our campus and that one of the job
positions the( are seeking to fill is Caccount planner.D 0hat should be included in the job
description that e7plains an account planner<s tasks=
2%2 Copyright 2009 Pearson Education, Inc. Publishing as Prentice all
Chapter Seven: Strategic Planning
Ans*erF
+he account planner<s tasks are as follo*sF
(1) 8nderstand the meaning of the brand.
(!) 8nderstand the target audience<s relationship to the brand.
(#) Articulate communication strategies.
(-) Brepare creative briefs based on understanding of consumer and brand.
(.) ,valuate the effectiveness of the communication in terms of ho* the target reacts
to it.
(difficult; p. !11; $%#)
1-!. ,7plain ho* Eellogg took advantage of an opportunit( in timing *ith the @e* IearJs Special E
campaign described in N+he 1nside Stor(.N.
Ans*erF
,ach (ear Eellogg<s supports its Special E cereal *ith special marketing efforts during the
@e* Iear<s resolution season. +he idea is to capitali5e on consumers< goals to lose *eight
after the holida(s. +he !"*eek poster campaign for Special E *as specificall( designed to
reach prospective customers at a moment *hen the( *ould be most interested in the Close
*eightD message. 4or e7ample, the posters *ere displa(ed in locations *here *omen think
about their appearance, such as department store dressing rooms, health clubs, doctor<s
offices, hair or nail salons, and bridal salons. +he messages *ere tailored to each location *ith
such lines as, C+he doctor *ill see (less of (ou) no*.D 2eaching consumers at the moment the(
are in need of a *eight"loss solution and delivering a simple diet in the conte7t of their
environment *as ver( effective. 'usiness results included an overall increase in the poster
markets of !; percent over nonposter markets.
(moderate; p. !;;)
1-#. Mana is an account planner at an advertising agenc(. She conducts consumer research to gain a
better understanding of their clients< brands and their customers. Ho* is the outcome of this
strategic research communicated to the creative teams that *ork on these clients< accounts=
Ans*erF
+he outcome of strategic research usuall( reaches agenc( creative departments in the form
of a strateg( document called a communication brief or creative brief, *hich e7plains the
consumer insight and summari5es the basic strateg( decisions (position, targeting, objectives,
and brand strateg(). Most communication briefs have nine major partsF Broblem, +arget
Audience, &onsumer 1nsights, 'rand 1mperatives, &ommunication %bjectives, Broposition or
Selling 1dea, Support, &reative Airection, and Media 1mperatives.
(moderate; pp. !1-"!1.; $%#; AA&S' &ommunication)
1--. Aescribe three 6uestions from the account planning toolkit as e7plained in the te7t..
Ans*erF
Students can describe an( three of the follo*ingF
Copyright 2009 Pearson Education, Inc. Publishing as Prentice all 2%$
Part "#o: Principle: Strategy is Creative, "oo
(1) 0hat is a realistic response objective (perception, kno*ledge, feelings, attitudes, s(mbolic
meanings, behavior) for this target group=
(!) 0hat are the causes of their lack of response=
(#) 0hat are the barriers to the desired response=
(-) 0hat could motivate them to respond in the desired *a(=
(.) 0hat is the role of each element in the communication mi7 to motivate them or remove a
barrier=
(moderate; p. !1#)
1-.. Iou *ork at an advertising agenc(, and a ne* emplo(ee asks (ou the difference bet*een an
1M& plan and an advertising plan. ,7plain the three main areas *here an 1M& plan is different
from an advertising plan.
Ans*erF
+he three main areas *here an 1M& plan is different from an advertising plan areF
(1) StakeholdersG+he target market in an 1M& plan includes more than just consumers.
Stakeholder refers to an( group of people *ho have a stake in the success of a
compan( or a brand, and e7amples include emplo(ees, trade audiences, the local
communit(, general public, opinion leaders, and so on.
(!) &ontact BointsG1M& programs are designed to ma7imi5e all the various t(pes of
contacts that consumers and other stakeholders might have *ith a brand. &ontact
points, also called touch points, are all the *a(s and places *here a person can come
into contact *ith a brand; all the points *here a message about the brand is
delivered.
(#) 1M& %bjectivesG+ied to the effects created b( the various forms of marketing
communication. An 1M& plan operates *ith a set of interrelated objectives that
specif( the strategies for all the various tools.
(moderate; p. !1."!1/; $%-; AA&S' &ommunication)
1-/. Aescribe ho* @AS&A2 learned more about their fans as described in the CHands %nD case at
the end of the chapter.
Ans*erF
Mosh $inkler developed an e"decoder bearing the phrase C2ace to 0in. Orand Bri5e P1;,;;;
cash.D %*ners of the e"decoder *ent to a 0eb site and compared the device against the code
on the screen to see if the( had *on @AS&A2 pri5es that *ere a*arded ever( da(. 4ans had
to give a small amount of personal information each time the( pla(ed, and someone *ho pla(ed
regularl( could have ended up giving responses to more than 1.; 6uestions. Although some
6uestions dealt *ith racing, others *ere meant to learn fans< hobbies and *here the( shop.
(moderate; p. !!;)
APPLICATION QUESTIONS: MINI-CASE SHORT ANS!ER
'ob *orks at a major advertising agenc(, and his job entails understanding the meaning of the client<s
brand and the target audience<s relationship to the brand. He must also articulate communication
strategies, prepare a creative brief based on an understanding of the consumer and the brand, and
finall(, evaluate the effectiveness of the communication in terms of ho* the target reacts to it.
2%% Copyright 2009 Pearson Education, Inc. Publishing as Prentice all
Chapter Seven: Strategic Planning
1-3. Mini"&ase Kuestion. 0hat is 'ob<s function called=
Ans*erF
'ob is an account planner.
(eas(; p. !11; $%1)
1-9. Mini"&ase Kuestion. 0hat *ill 'ob include in the creative brief that he prepares for the
creative department=
Ans*erF
+he &reative 'rief or &ommunication 'rief %utline includesF the problem, target audience,
consumer insights, brand imperatives, communication objectives, the proposition or selling
idea, support, creative direction, and media imperatives.
(moderate; p. !1-"!1.; $%#; AA&S' &ommunication)
1-. Mini"&ase Kuestion. 'ob is an account planner. facing his greatest challenge, insight mining.
,7plain insight mining.
Ans*erF
1nsight mining is peering into nooks and crannies *ithout losing sight of the big picture in
order to identif( a ke( insight that can transform a client<s business. 1nsight mining is a deep
dive into the meaning of a brand looking for major truths. +he planner engages in unearthing
the relationship (if there is an() that a target audience has *ith a brand or product and *hat
role that brand pla(s in their lives. 8nderstanding the brand:consumer relationship is
important because account planners are taking on the position of the agenc(<s brand ste*ard.
+he account planner puts the clients in touch *ith the souls of their brands.
(moderate; p. !1!; $%#)
1.;. Mini"&ase Kuestion. 4or one of the agenc(<s clients, 'ob is involved in assisting the team in
crafting a position b( identif(ing features of the compan(<s brand as *ell as the competition
to determine *here the brand has an advantage over its competitors. @ame and describe a
techni6ue 'ob can use to help structure this anal(sis.
Ans*erF
A techni6ue called feature anal(sis helps structure this anal(sis. 4irst, (ou make a chart of a
client<s product and competitors< products, listing each product<s relevant features. +hen
evaluate ho* *ell the product and the competitors< products perform on that feature. @e7t,
evaluate ho* important each feature is to the target audience based on primar( research.
(difficult; p. !;-; $%!; AA&S' Anal(tic Skills)
Copyright 2009 Pearson Education, Inc. Publishing as Prentice all 2%&

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