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I.

              DISSCUSION:

1. Find an example of company or brand that has reduced its spending on traditional
mass-media advertising and is allocating more of its IMC budget to digital media. Do
you agree with this decision or do you think this company or brand should be
maintaining its spending on traditional media advertising?

Company Procter & Gamble (P&G). P&G, a multinational consumer goods company,
reduced its spending on traditional media advertising and shifted more of its budget to digital
advertising.
The decision to allocate more funds to digital media is often driven by several factors:
Changing Consumer Behavior: Consumers are spending more time online, and digital media
allows brands to target specific audiences with greater precision.
Data-Driven Advertising: Digital platforms offer advanced analytics and tracking capabilities,
enabling companies to measure the effectiveness of their campaigns more accurately.
Cost-Effectiveness: Digital advertising can often be more cost-effective than traditional mass-
media, especially for smaller businesses.
Personalization: Digital media allows for personalized content and targeted advertising, which
can lead to higher engagement rates.
Interactivity: Digital media offers interactive elements that can increase user engagement and
create a more immersive experience.
While the shift to digital media has clear benefits, it doesn't mean that traditional media
advertising is completely irrelevant. Different companies and industries may still find value in
traditional advertising channels depending on their target audience, product, and brand
positioning.
Ultimately, the effectiveness of the advertising strategy depends on the specific company, its
goals, and its target audience. A balanced and integrated approach to both traditional and
digital media may yield the best results in some cases. Companies should carefully analyze
their marketing data, conduct market research, and track their ROI to make informed
decisions about their advertising budget allocation.

2. Discuss the importance of logos. Why have logos for brands such as Nike, Apple,
McDonald’s, and Coca-Cola become so widely recognized and memorable?

Logos play a crucial role in brand identity and recognition. They are graphic symbols or
marks that represent a brand, company, or organization. The importance of logos lies in their
ability to communicate a brand's values, personality, and offerings succinctly. Here are some
key reasons why logos are essential and how certain brands like Nike, Apple, McDonald's,
and Coca-Cola have achieved widespread recognition and memorability:
Brand Identity and Recognition: A logo serves as the face of a brand. It is often the first thing
consumers see and remember about a company. A well-designed logo helps establish a strong
brand identity and creates a lasting impression in the minds of consumers.
Consistency: Consistency in branding is crucial. Iconic brands have maintained their logos
over long periods, creating strong associations with their products and services. Coca-Cola's
classic Spencerian script and distinctive red and white color scheme have remained consistent
for decades.
Emotional Connection: Memorable logos evoke emotions and foster a connection with
consumers. The Apple logo, with its clean design and association with innovation, has helped
create a sense of belonging and loyalty among its customers.
Effective Marketing: Successful marketing campaigns reinforce logo recognition and
memorability. Iconic brands invest heavily in advertising, ensuring their logos are consistently
seen and associated with positive experiences.
In conclusion, logos are powerful tools that can profoundly impact a brand's success. The
logos of companies like Nike, Apple, McDonald's, and Coca-Cola have achieved widespread
recognition and memorability due to their simplicity, distinctiveness, consistent branding, and
effective visual communication, all of which contribute to building strong brand identities and
lasting connections with consumers.

3. Why is it important for marketers to set specific objectives for advertising and
promotion? What criteria must these objectives meet to be valid?

Setting specific objectives for advertising and promotion is essential for marketers for the
following reasons:
Clarity of Purpose: Specific objectives provide a clear and well-defined direction for
marketing efforts. They help marketers understand exactly what they need to accomplish,
ensuring that everyone is on the same page regarding the goals of the campaign.
Measurable Results: Specific objectives are quantifiable, which means they can be measured
and evaluated. Marketers can track key performance indicators (KPIs) to determine the
success of their campaigns and make data-driven decisions.

CASE STUDY

CASE 1: FARMERS MARKETS VERSUS GROCERY STORES

It is often said that buying food grown at local farms is a better choice than buying from a supermarket
or grocery store. But is this true? Many farmers forgo the use of chemical pesticides and fertilizers.
Many say that, for this reason, locally grown food is healthier and fresher than the produce you get
from your local supermarket, and that it tastes better too. Buying vegetables at a farmer’s market, they
say, is also better for the environment if you compare it with buying the same vegetables from the
local grocery store; these have very likely been packed and shipped months before. It’s a simple idea
—the shorter the trip from the farm to our plate, the fresher and healthier our food will be.

And there’s no journey that’s shorter than that of the fruit and vegetables at farmers’ markets, which
as the name suggests are physical markets where farmers sell fruit, vegetables, eggs, meat, and
sometimes even preserves and beverages directly to consumers. In Canada, farms sell a variety of
organically or locally grown produce, such as kale, several different types of fruit and vegetables, such
as strawberries, raspberries, oranges, apples, cherry tomatoes and Romano tomatoes, egg plants, green
pepper, beetroot, lettuces, spinach, honey, and maple syrup. The farmers’ markets are also found in
flea markets in Canada. They are especially popular during the summer, when the open air of the
farmers’ market draws customers away from the enclosed space of the grocery store. At the farmers’
market, in addition to the locally grown produce on offer, customers can also find sweets, pastries,
condiments and artisan treats. For many, farmers’ markets are not just a place to buy produce; they
have become a foodie’s delight.

The popularity of farmers’ markets is a relatively recent phenomenon. Interest in the environment and
sustainability led to the “locavore” or “localvore” movement, which sought to encourage people to
buy more from local food producers. Though these ideas were articulated back in 2001 in Gary Paul
Nabhan’s book Coming Home to Eat: The Pleasures and Politics of Local Foods, the movement really
took off in 2005 through the work of a group of women in Northern California, including chef and
author Jessica Prentice, who coined the term “locavore.” The movement has prompted the
environmental and socioeconomic sectors to conduct more research into the merits of going local

Of late, public health officials have also increasingly been looking toward local markets, hoping to
determine if locally produced foods are safer in terms of foodborne illnesses. The relationship between
food purchased at retail grocery stores and foodborne illness was already well established, but officials
wanted to determine whether buying locally would reduce the risk. In 2002, they compared locally and
organically grown food and those sold in large grocery stores.

The results were perhaps not surprising. Shoppers who purchased food grown locally were more likely
to get food that had less pesticides and better food quality. More importantly, the food was less likely
to be handled after it was harvested, which is a common reason for the spread of foodborne infection.
Scientists who investigated foodborne outbreaks discovered links to several well-known problems
associated with large-scale farming. By 2010, the difference between locally produced and retail
grocery food had become the basis for better microbiological quality standards in local foods.

Overuse of antibiotics has been implicated in illnesses spread by meat; it has led to higher resistance
among pathogens that attack livestock, and their cramped living conditions has allowed the disease to
spread faster. Moreover, livestock in industrial farming are highly stressed, and this weakened their
immune systems, making it harder to fight off infections.

Local produce is also much less likely to have additives like high fructose corn syrup,
monoglycerides, or triglycerides. Buying local does not prevent foodborne illness entirely, of course,
and consumers are encouraged to follow basic hygiene rules. Nevertheless, the risks are definitely
lower. Consumers who frequent farmers’ markets also supported local farmers, and by extension, local
entrepreneurs, rather than a company that imports produce.

However, the other claimed merits of local food haven’t shown appreciable differences from grocery
store–bought food. Produce from farmers’ markets may not be pesticide free; the farmers do in fact
spray. In fact, research shows that local produce is pretty comparable to what you get at the grocery
store. Comparisons have demonstrated that they are almost the same when it comes to quality as well.

Discussion Questions
1.     Discuss the consumer decision making process for a product such as
canned/packaged tuna and the response hierarchy model this is most likely to be
applicable in the purchase of this product.

Consumers might not initially prefer canned tuna while shopping for food, but an appealing
aspect can drive purchases. Brand awareness and reputation are crucial in this regard,
especially for canned seafood. Shoppers are cautious about brand selection, with factors like
necessity and brand perception influencing choices. Ultimately, the cost becomes a deciding
factor. While personally inclined to avoid canned tuna, I would choose an affordable option
from a reputable brand if necessary. The hierarchy of effects model, fittingly, applies to
brands like Chicken of the Sea, as consumers base decisions on brand-related factors, such as
reputation and product recalls.

2.     Discuss the role integrated marketing communications plays in the marketing of


canned/packaged tuna for a company such as Chicken of the Sea International. How
might the company use the various IMC tools as part of its marketing program?

Chicken of the Sea employs integrated marketing communication (IMC) effectively by


utilizing not just print and television ads, but also their website. Their website offers
nutritional information, product details, interactive content like games, and recipes, enhancing
customer engagement. Through these diverse IMC strategies, the brand fosters customer
loyalty and product retention. Collaborating with other brands to create multi-brand recipes
could be a viable strategy, encouraging consumers to purchase multiple products. Given the
growing influence of social media and the internet, Chicken of the Sea could extend their
IMC efforts to different platforms, expanding their reach and aligning with their existing
marketing approach.

3. Discuss how Chicken of the Sea’s marketing personnel and advertising agency might
evaluate the appropriateness of using Jessica Simpson as a spokesperson for the
company and whether she is a good fit for the brand.

Chicken of the Sea strategically leveraged Jessica Simpson's star power to enhance their
marketing efforts. Simpson, a popular blonde Hollywood celebrity at the time, added visual
appeal to the brand. Her endorsement carried weight, as people often follow the choices of
celebrities. Simpson further promoted the brand through her television shows, providing an
additional promotional boost. However, Simpson's portrayal of ditsy behavior in her shows
might have deterred some potential customers from becoming loyal buyers. Her public antics
could potentially impact sales negatively by influencing consumers' perceptions of the brand.

4.     Discuss the pros and cons of Chicken of the Sea International hiring Jessica Simpson
as a spokesperson for the company.  Can the company afford to hire her and spend the
money on TV advertising to use her effectively?

The Pros are:


 Remarkable reputation at present scenario.
 Higher ratings and respect from teenagers, attracting a new market to the Chicken of the
Sea
 Could potentially capitalize on a widely recognized fish-related mistake that has brought
fame to the Chicken of the Sea
 Opportunity to establish brand recognition and capture the attention of a new market,
specifically composed of teenagers.
The Cons are:
 The somewhat airheaded image might not align well with the brand image of Chicken of
the Sea
 Enlisting a spokesperson could result in substantial expenses, potentially reaching
millions of dollars.
 Expensive ad campaigns required for her representation, leading to exclusive broadcast
commercials. Other promotions would also increase costs. The mermaid image might
lose appeal over time.

5.     What would you do if you were Don George?  Would you recommend that the
company hire Simpson as a spokesperson? Why or why not?

If we were in Don George's position, we wouldn't choose to hire Jessica Simpson. While we
understand the appeal of her popularity, attractive appearance, and overall celebrity status at
that time, we don't believe her involvement is essential for a tuna brand. Additionally, despite
the unintentional exposure she brought to the brand due to her tuna-related mix-up on live
TV, it actually highlights her lack of suitable brand awareness to be a representative in their
marketing campaigns. In situations like this, companies need to consider the long-term
implications. Stardom like hers tends to diminish more rapidly compared to other potential
spokesperson options such as athletes.

CASE STUDY 2:

Chony was excited to open his new business venture in the springtime. Chony’s Old-Time Ice Cream
and Chocolate Shop was established to take advantage of several opportunities and reach multiple
audiences, all in one location. In the summertime, ice cream should sell best. In the winter and spring,
chocolate products may be given as Christmas, Valentine’s, Easter, and Mother’s Day presents. Chony
also decided to sell fast food throughout the year, including hamburgers, hot dogs, grilled cheese
sandwiches, pretzels, fries, and other items.

To make his store stand out, Chony chose to locate on the outskirts of town, where parking would be
readily available and the store would be surrounded by a more natural environment including a nearby
forest. Then, he was able to obtain a passenger car and caboose from a now-defunct railroad company
that could be set up as a place to enjoy ice cream in a unique seating arrangement in addition to the
regular tables inside the shop. Outside of the rail cars, Chony placed a swing set and other items for
children.

The biggest challenge Chony faced was getting the word out. He contacted a local advertising and
promotions agency to help him get started. The first question the account executive asked was, “Well,
what is going to make your store stand out?” Chony responded, “Several things. First, I am re-opening
a

company that served this area for years, called “Stevenson’s Ice Cream.” I plan to generate publicity
letting everyone know that we will be selling the same kind of great-tasting ice cream that used to be
offered by that company. Second, I have a partnership with a local chocolatier that is on the far side of
town. We’ll be selling their products in our store. And third, we are appealing to that old-fashioned,
old-time relaxation that people enjoy in the summer. Families should love that.” Next the executive
asked, “Who are your major competitors?” Chony answered, “For ice cream I suppose it is Baskin
Robbins and Dairy Queen. For chocolate, it’s probably Nestlé and Hershey’s. But we are set up in
such a unique way we should be able to attract people differently.” The executive and Chony agreed
that the company’s launch was a key time to communicate this difference. They also believed the
target audience would be pretty large, including families with children, grandparents with grandkids,
and other people looking to enjoy high quality chocolate and ice cream in a unique atmosphere,
possibly after enjoying a quick meal. The executive pointed out that getting people to visit for the first
time would be one factor but that generating return business throughout the year was the real key to
long term success. It was time to get started.

Question 1: Write an IMC plan with the following requirements: overall plan: (i) big idea, (ii) insight,
and (iii) key message, (iv) target audience? Explain the reasons?

Overall Plan:
(i) Big Idea: Chony's Old-Time Ice Cream and Chocolate Shop is not just a place to get
delicious ice cream and chocolates, but it's a nostalgic experience that takes visitors back to a
simpler time, surrounded by a natural environment and unique seating in vintage rail cars. The
big idea is to offer a blend of high-quality ice cream, chocolates, and fast food, coupled with a
family-friendly, old-fashioned atmosphere.
(ii) Insight: People are drawn to nostalgia and cherish moments that remind them of the past.
Chony's shop taps into this emotional connection by creating an environment reminiscent of
the good old days when families enjoyed ice cream together in a relaxed and natural setting.
(iii) Key Message: "Step back in time and indulge in the taste of tradition at Chony's Old-
Time Ice Cream and Chocolate Shop. Relive the joy of old-fashioned ice cream treats and
delectable chocolates while surrounded by the beauty of nature. A perfect destination for
families, friends, and chocolate enthusiasts!"
(iv) Target Audience: The target audience includes families with children, grandparents with
grandkids, and individuals seeking a unique and relaxing experience. The shop caters to ice
cream lovers, chocolate enthusiasts, and people who appreciate the charm of a vintage-themed
setting.
Explanation:
The big idea centers around nostalgia, offering more than just products but an entire
experience that customers can associate with fond memories. This will differentiate Chony's
shop from typical ice cream and chocolate stores. The insight recognizes the emotional aspect
that can be leveraged to attract customers seeking a break from their busy lives to enjoy
quality time with loved ones. The key message encapsulates the essence of the store,
emphasizing its unique features and appealing to the target audience's desire for a traditional
yet delightful experience.

Question 2: Should he emphasize message structure and message appeals to develop a message?
Why?

Chony should emphasize message structure and appeals to develop the message for his IMC plan. The
following message appeals can be employed:

Emotional Appeal: Highlight the emotional connection with the past and family bonding, evoking
feelings of nostalgia and happiness.

Sensory Appeal: Describe the mouthwatering taste of the ice cream and chocolates, appealing to the
senses of taste and smell.
Unique Experience Appeal: Emphasize the vintage rail cars, natural surroundings, and enjoyable
seating arrangements, creating curiosity and excitement about the unique experience.

Convenience Appeal: Highlight the availability of fast food options, making it a one-stop destination
for quick meals and treats.

Quality and Local Appeal: Promote the partnership with the local chocolatier and the promise of high-
quality ingredients, supporting the community and offering superior products.

Reason:

By using message structure and appeals, Chony can create a compelling and persuasive
communication that resonates with the target audience. Appeals like emotional and sensory
connections evoke strong reactions, making customers more likely to remember and act upon the
message. The unique experience appeal sets Chony's shop apart from competitors, driving interest and
curiosity. Additionally, emphasizing the convenience and quality aspects enhances the perceived value
for potential customers.

Question 3: The estimation of the budget for this IMC plan is based on which approach? Explain the
reasons?

The estimation of the budget for this IMC plan is based on the Task Objective Method.

Reason:

The Task Objective Method involves setting specific communication objectives and then
estimating the cost required to achieve those objectives. In this case, Chony and the
advertising agency need to define measurable goals, such as the number of first-time visitors,
return customer percentage, or sales targets. Once the objectives are established, they can
allocate the budget accordingly to the different components of the IMC plan, such as
advertising, public relations, promotions, and social media campaigns.

Since Chony's main challenge is to get people to visit for the first time and generate return
business throughout the year, the Task Objective Method provides a systematic approach to
allocate resources effectively and measure the success of the IMC campaign. It ensures that
the budget is aligned with the specific goals of the business and maximizes the return on
investment (ROI).

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