Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e
- Promotion −
Introduction to Integrated
Marketing
Communications
Text © The McGraw−Hill
Companies, 2002Promotion_Introduction to Integrated Marketing Communications 419several months to create adequate awareness among her
target market. The FM station will provide an an-
nouncer and prepare a tape of Troy’s ad for a one-time
fee of $200. All she has to do is tell the station what the
message content for the ad should say.
Both the radio station and the magazine gave Troy re-
ports summarizing recent audience research. She decides
that comparing the two media in a spreadsheet will help
her make a better decision.
a. Based on the data displayed on the initial spreadsheet,
which message channel (advertising medium) would
you recommend to Troy? Why?
b. The agency that offered to prepare Troy’s magazine ad
will prepare a fully produced radio ad—including a
musical jingle—for $2,500. The agency claims that
its musical ad will have much more impact than the ad
the radio station will create. The agency says its ad
should produce the same results as the station ad with
20 percent fewer insertions. If the agency claim is cor-
rect, would it be wise for Troy to pay the agency to
produce the ad?
c. The agency will not guarantee that its custom-pro-
duced radio ad will reach Troy’s objective—making
80 percent of the prospects aware of the new store.
Troy wants to see how lower levels of awareness—
between 50 percent and 70 percent—would affect the
advertising cost per buyer and the cost per aware
prospect. Use the feature analysis to vary the percent
of prospects who become aware. Prepare a table
showing the effect on the two kinds of costs. What are
the implications of your analysis?
For additional questions related to this problem, see
Exercise 14-3 in the Learning Aid for Use with Basic Mar-
keting,14th edition.14.Selecting a Communications Channel
Helen Troy, owner of three Sound Haus stereo equip-
ment stores, is deciding what message channel
(advertising medium) to use to promote her newest
store. Her current promotion blend includes direct-mail
ads that are effective for reaching her current customers.
She also has knowledgeable salespeople who work well
with consumers once they’re in the store. However, a
key objective in opening a new store is to attract new
customers. Her best prospects are professionals in the
25 – 44 age range with incomes over $38,000 a year. But
only some of the people in this group are audiophiles
who want the top-of-the-line brands she carries. Troy
has decided to use local advertising to reach new cus-
tomers.
Troy narrowed her choice to two advertising media:
an FM radio station and a biweekly magazine that fo-
cuses on entertainment in her city. Many of the
magazine’s readers are out-of-town visitors interested in
concerts, plays, and restaurants. They usually buy stereo
equipment at home. But the magazine’s audience re-
search shows that many local professionals do subscribe
to the magazine. Troy doesn’t think that the objective
can be achieved with a single ad. However, she believes
that ads in six issues will generate good local awareness
with her target market. In addition, the magazine’s color
format will let her present the prestige image she wants
to convey in an ad. She thinks that will help convert
aware prospects to buyers. Specialists at a local advertis-
ing agency will prepare a high-impact ad for $2,000, and
then Troy will pay for the magazine space.
The FM radio station targets an audience similar to
Troy’s own target market. She knows repeated ads will be
needed to be sure that most of her target audience is ex-
posed to her ads. Troy thinks it will take daily ads forComputer-Aided Problem