ASIA PACIFIC MARKETING FEDERATION
CERTIFIED PROFESSIONAL MARKETER
QUALIFYING EXAMINATIONS
MARKETING COMMUNICATIONS
SEPTEMBER 2001
SECTION A: ANSWERS
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2.
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4.
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6.
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7.
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8.
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9.
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10.
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SECTION B: ANSWERS
QUESTION 1
What are the characteristics of an effective banner ad on the Internet? (10 marks)
Effective banner ads should:

relate to the website in content and design

allow interaction

use animation

make sure to include action words such as 'click here'

avoid non-descript colours

be as large as possible

be carefully pretested

be changed regularly
QUESTION 2
What are the primary advantages and disadvantages offered by the growth of cable and
satellite television in Asia? (10 marks)
In the past television was a medium for the mass market, usually a national one
controlled by the government. Now advertisers have an incredibly wide choice of
television channels.
With more specialised channels by programming content,
viewership and geography, advertisers can target very specialised audiences for specific
products and brands with little wastage. Since cable and satellite homes tend to be of
higher socio-economic status, advertisers are able to better target up-market products. On
the other hand television audiences are so fragmented that advertisers for mass market
products find it difficult to obtain efficient means of reaching them, except via some
dominant terrestrial free-to-air channels.
QUESTION 3
How does public relations differ from advertising? (10 marks)
Public relations and advertising differ in the way they use the media and control the
messages they convey. Public relations practitioners have a different approach to media
than do advertisers. Whenever possible they avoid purchasing time and space to
communicate messages. Instead they persuade media 'gatekeepers' to carry the
information they provide. This controls expense and lends credibility to their message.
Even when public relations uses paid-media, the nature of the message tends to be
general and makes little or no attempt to sell a brand or product. A strong disadvantage
of public relations is that it is difficult, even sometimes impossible, to control the
message that is printed or aired via the media.
SECTION C ( 60 marks)
Answer any THREE (3) out of SIX (6) questions. Each question carries 20 marks.
QUESTION 1
It is said that advertisements on the side of Bangkok buses facing pedestrian pavements
are usually for low unit-price, high-volume consumer goods. But the advertisements on
the rear of the bus and on the side adjacent to other vehicles are for higher-value, luxury
items. [adapted from Fletcher and Brown, 1999, p. ]
What do you think is the rationale for this? (10 marks)
The advertising of cheaper products on the sides of buses facing the pedestrians is
based on the rationale that those having to walk or wait for buses are usually poorer.
They are a prime target market for the low-cost high-volume consumer necessities such
as soaps, cooking oils, shoes, etc. But it is a fallacy to assume that the wealthy do not
walk at all and that the poor do not ride in traffic, even if via other buses, taxis,
motorcycles, pillion, on scooter-taxis, etc.
On the other hand, advertisements on the back and sides of buses facing traffic are
being directed at those who are in cars and stuck in traffic. Being richer to own cars, they
are considered also the target market segment for high value luxuries such as cars, real
estate, banking, designer clothes, air-travel and the like. In general, transit advertising is
a mass medium and not suitable for high-value products targeted at small segments.
If you were responsible for marketing such products, would you choose to advertise them
on the sides of buses in that way? Why or why not? (10 marks)
Transit (as well as other outdoor) advertising has grown in tandem with the
worsening of traffic congestion in Bangkok, growing by over 80 percent in 1993 alone.
In addition to bus-backs and sides, there is advertising at bus shelters and bus interiors.
Since it often takes 2-3 hours of commuting each day through very slow traffic,
advertising on such media would enjoy considerable exposure in general.
It could be argued as above that the back/pedestrian-side and the traffic-side of
buses can be used to target different market segments with different products. However,
all sides of buses are seen by most of people on the streets whether in cars or walking or
seated in other buses. Furthermore the appearance of products/brands with quite different
positioning on the same medium could cause some dissonance among the mass
'audience'.
It may also be argued that such transit advertising is a very cost-effective medium,
given the high exposure in Bangkok's traffic congestion. However it needs to be borne in
mind that transit advertising has considerable disadvantages. Given the high levels of
pollution that accompanies traffic congestion, there is difficulty in maintaining the
advertisement in pristine condition. This would be particularly disadvantageous to
products that seek to maintain an upmarket image. Viewers of the ads would not be in a
receptive state of mind to absorb the message if they are stressed about being held up in
traffic jams.
QUESTION 2
What are the differences between consumer-oriented and trade-oriented sales promotion?
(10 marks)
Consumer-oriented sale promotions are directed at the consumers who purchase
various goods and services and are designed to provide them with an extra incentive or
inducement to buy the marketer’s brand. They are part of a promotional “pull strategy”
and designed to help create demand for a brand at the end-consumer level. In a very
competitive market, consumers must often be provided with an extra incentive such as a
coupon, bonus pack, premium, or price reduction to encourage them to choose one brand
over another.
Trade-oriented promotions are targeted to the wholesalers, distributors and
retailers in the channel of distribution and are designed to encourage channel members to
stock and promote the marketer’s products. Trade-oriented promotions are part of a
promotional “push” strategy.
Discuss the role of each type of promotion in a firm's IMC program, especially in the
Asia-Pacific context (10 marks)
Both consumer- and trade-oriented promotions are an important part of a firm’s
integrated marketing communications program.
Consumer-oriented promotions, along with advertising, are a very important part
of marketers’ “pull strategy” which create demand for their brands. With the increasing
amount of advertising clutter and many purchase decisions being made in the store,
marketers must do more than just advertise to gain and hold market share. In Asia there
is generally a higher expectation of consumer promotions such as premiums,
sweepstakes, discount coupons for particular product categories.
Trade-oriented promotions are also very important, as marketers must give
attention to getting the channel members to stock, display and promote their brands.
Much of the power in channels of distribution has shifted to the retailer and competition
as limited amounts of shelf space have intensified. Thus marketers must focus attention
and effort on “pushing” their products through the channels of distribution. Tradeoriented promotions are an important part of this strategy in Asia where the channels
members are more instrumental in promoting products and media penetration more
limited, especially in the rural areas and less developed countries.
QUESTION 3
Starbucks headed to the East Asia in the late 1990s, despite the region's economic
uncertainty and Singapore was one of the first new markets selected outside North
America. Its outlet in the central office district is invariably packed with a mixture of
Singaporeans, expatriates and tourists eager for a caffeine stimulant and a touch of the
Starbucks experience so popular in North America. Yet Starbucks has faced rough times
in other places in East Asia. [adapted from Wells et al, 2000, p.484].
Why would Singapore be the first Asian market to use media advertising to promote its
Starbucks outlets? (10 marks)
The reasons for the choice of Singapore to use media advertising first would be similar to
its choice as the first market to enter:
• High incomes, standard of living and sophistication of lifestyles, including media
habits would allow for similar positioning and targeting strategies as in the US.
• One of the East Asian economies least affected by the economic crisis and hence
consumers more responsive to advertising.
• Comprehension of English, hence the possibility of similar advertising campaign
generated in the US with minimal changes to copy and overall message.
• Wide choice and quality of the media available in both print and electronic would
also allow of similar media strategies.
• Large expatriate executive population and tourists who would be familiar with
Starbucks and not need to be educated via advertising, but simply reminded of
availability.
What marketing communications challenges do you think Starbucks faces in its entry into
East Asia? (10 marks)
For Starbucks there would be many challenges in East Asia as a whole as well as in
particular parts:
• Regional economic crisis which led to personal financial insecurities - difficulty in
convincing consumers to spend on indulgences.
• Considerable variation in socio-economic development within the East Asia region,
eg. between Japan, Singapore, Korea on one hand and Philippines, Indonesia, Thailand
on the other.
• Centuries-old preference for tea and wide varieties of herbal teas (also deemed more
healthy) in most East Asian markets.
• Changing cultural habit of having coffee (or tea) with substantial meals and not small
snacks, often of local cuisine.
• Persuading consumers to pay considerably more for a cup of coffee, in comparison
with local coffee lounges, franchised or otherwise.
• Multiplicity of ethnicities, languages and cultures requiring non-standardised
advertising: sensitivity to colours, religious imagery, translation problems.
•
Lack of high-penetration of pan-Asian regional media either in television or print.
QUESTION 4
What are the advantages and disadvantages of direct marketing? (10 marks)
Definition - Direct marketing involves a total set of activities by which the seller attempts
to elicit a direct action response usually, a purchase. Types include mail catalogues,
telemarketing, infomercials, web-based retailling.
Advantages of direct marketing are cited including:
(1) selective reach - isolate customers as individuals
(2) segmentation capabilities - what differentiates them from others;
(3) personalization - design more convincing appeals;
(4) frequency and timing flexibility - not dependent on mass media;
(5) cost efficiencies - controllable costs, generally low
(6) motivates action - calls for specific response
(7) ability to measure effectiveness - test what works and doesn't.
Disadvantages include:
(1) image factors - perception as junk mail, intrusive of privacy, manipulative;
(2) accuracy - outdating of customer databases;
(3) content support - constant updating needed.
(4) mood creation - poor potential, unlike television medium
How would you adapt this tool for use in your country or any other Asia-Pacific country?
(10 marks)
General tips for its use in Asia-Pacific region:
- keeping costs low, using joint-ventures
- establish brand name initially via retail outlets
- provide ample service support, often multi-lingual
Specific considerations: depends on country..
Japan: US$ not Japanese yen pricing for 'authenticity' re-US manufacture
India: local firms have better sources for replenishing databases
China: government surveillance of databases
Indonesia: direct mail seen as a valuable source of information
Papua New Guinea: limited phone network
QUESTION 5
Ms. Chan has just begun a new job as a media planner at an advertising agency in an
Asia-Pacific country (such as yours) for Sony. The agency has been asked to prepare a
media plan for a new television model to be launched in 3 months.
What sources of data and information would Ms. Chan be able to obtain for her
preparation? (10 marks):
Marketing sources:
•
Distribution patterns/sales geography: where is the product distributed and how
evenly?
•
Market sales: what are the sales in each area and should this be maintained or
changed?
•
Timing: when is the best time to place message before television-buying audience festive seasons, year-end bonus-time?
•
Consumer product-usage cycles: what is the usual time between purchase and
repurchase of a television set?
Creative sources:
•
Advertising theme/message: what is being said and how is it being said?
•
Target market: what is the demographic and psychographic profile of the firm's
valued customers or prime prospects?
•
Pre-testing: responses of focus groups, even test markets to creative product
Media sources:
•
Popularity of media: amongst the target segments
•
Readership/viewership/listenership profiles
•
Cost forecasts: rate card, bulk discounts, sponsorships
•
Rivals' media patterns: which media, when used, how used?
How should she use these sources in the planning function?: (10 marks)
•
If sales geography uneven, need to balance ad spending area by area utilising target
audience, distribution, media costs, company sales data
•
Aperture concept of timing: when is the consumer in the search and purchase
mode; use of flighting and pulsing versus continuous patterns of media-buying.
•
Media usage preferences of target segment influences best media vehicles in the
media mix: if upmarket model she may need to use executive/business/in-flight
magazines
•
Theme and message suggests prime media to be used for impact: televisions are
usually advertised in television and print, rather than radio or via internet.
•
Positioning of product has impact on the media environment - editorial and other
advertising in that medium.
•
Media costs (after rate discounts/deals) and audience ratings help decide
efficiencies
•
Whilst rivals' media buying must be noted, a decision needs to be made whether to
emulate or differentiate: issues of share of voice in each medium
QUESTION 6
What are the common criticims of sexual appeals in advertising and the rebuttals by
advertisers? (10 marks)
Sexual appeals—the type of advertising appeals that have received the most
criticism for being offensive or in poor taste are those using sexual appeals and/or nudity.
These techniques are often used as ways of gaining consumers’ attention and in some
cases may not even be appropriate to the product being advertised. Even if the sexual
appeal is appropriate for the product, many people may still be offended.
Another common criticism of sexual appeals is that they can be demeaning to
women (and men as well) by depicting them as sex objects. Many advertisers are relying
on nudity, sadomasochism, bestiality, and other startling images to gain consumers
attention and shock them. Advertisers who use nudity and sexual suggestiveness argue
that their ads are not offensive and are consistent with contemporary values and lifestyles
that are more accepting of this type of advertising.
Advertising has received a great deal of criticism for its stereotyping of women.
Critics charge that advertising generally depicts women as being preoccupied with
beauty, household duties, and/or motherhood or shows them as decorative objects or
sexually provocative figures. Critics also argue that advertisers have failed to
acknowledge the changing role of women in society.
Advertisers also complain about the double standard that exists for TV programs
and commercials, noting that even the most suggestive commercials are bland compared
with what is shown in many television programs. The networks argue, however, that they
have to scrutinize commercials more carefully because they encourage people to imitate
behaviors, whereas programs are merely meant to entertain. Because of the clutter
problem, it is likely that advertisers will continue to use sexual appeals to gain the
attention of consumers.
While sexism and stereotyping of women still exist, advertising’s portrayal of
women is improving in many areas as many ads recognize the changing role of women in
our society and the importance of portraying them realistically.
Could such an advertising appeal be used in a pan-Asian campaign or in a national
campaign in your country? (10 marks)
General situation in Asia: More conservative, puritanical societies, even if
hypocritical Strong government intervention in censorship of media including advertising
Some variation within Asia, so difficulty to have a pan-Asian campaign.
Context of particular countries: Indonesia: advertising codes prohibits kissing
and sexual scenes, though can be sensuous Thailand: strict censorship, kissing and
romantic displays not allowed:
Philippines: Catholic country, yet sexual imagery tolerated, industry self-regulation
Hong Kong: updates of codes to match changing values, quite liberal and creative
Malaysia: restrictions on even partial nudity, even of males and child
China: no well-defined guidelines, self-censorship to avoid government reprimand
India: suggestive dances and gestures tolerated, but not explicit kissing and sex
Gulf region: strongly Islamic, women minimally used in ads, and then with covered