Marketing Communications

Advanced Certificate in Marketing - Stage 2

Marketing Communications

December 2003

© The Chartered Institute of Marketing 2004

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 Marketing Communications
Examination Papers
Each subject differs slightly from the other, and you
need to make sure that you are familiar with the style
of question and the requirements of the different
examinations.
There are three basic question types:
1. The mini case or scenario or article
Part A of all papers (except Analysis and Decision)
has a mini case, scenario or article, with compulsory
questions. This represents only part of the paper, but
students are required to make marketing decisions
based on the information given. Spend time
evaluating the material given in the case, but do not
rewrite this for the examiners. You will gain credit for
the decisions and recommendations you make on the
basis of the analysis, but nothing for the analysis
itself. This is a compulsory part of the paper designed
to evaluate practical marketing skills. Make sure you
allocate enough time to it, but do not ignore the
other part of the paper.
2. The straightforward exam question
You are expected to make a choice from a number of
questions. There is some skill necessary in selecting
the questions which you are best prepared to answer.
Read the questions through carefully before making
your choice. Think about how you will tackle the
question. Check you are answering the question in
the context it has been set, then make a rough plan
before you start writing. Remember that examiners
are interested in quality answers.
3. Analysis and Decision (Diploma)
This final paper is an open book examination. The
Case Study is sent out 4 weeks before the paper is
sat. Students should complete their analysis and
preparation before the examination takes place. The
questions asked will require marketing decisions and
actions in specific response to the questions set. The
question paper will include extra information about
the case which will have to be used to obtain best
marks.
Special Notice
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any medium by electronic means and whether or not transiently or inadvertently to some other use of this publication) without the written permission of
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the Copyright Licencing Agency Ltd, 90 Tottenham Court Road, London, England W1P 9HE.
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Common Mistakes
Reports from examiners are published regularly and
are available to students. Even a casual look through
these reveals the same concerns and problems
coming up time and time again across all subject
areas. Most of these common mistakes are caused by
a lack of exam technique and examination practice.
– Not answering the question set
The examiners are looking for both relevant content
and its application in an appropriate context. You
must be able to work flexibly with the material you
have studied, answering different questions in
different ways, even though the fundamental theory
remains the same.
– Presentation and style
Both of these essential business skills are of great
importance to a marketing practitioner. The
examiners expect work to be presented in a well-
written, professional manner. ‘Report’ style, using
sub-headings and indented numbering for points etc.
is not only acceptable, but looks much more
commercially credible than academic essays. This
approach allows you to break the work up, highlight
the key points, and structure your answer in a logical
way. Take care with your grammar and use of
language; small errors can change the sense
considerably.
– Timing
The scarce resource in an examination is time. You
must control the allocation of this resource carefully.
Read the instructions to the paper carefully, and
identify what has to be done and how the marks are
allocated. Spread your time proportionately to the
mark allocation, i.e. if the mini case = 40% of marks,
allocate 40% of your time to it. Allow a few minutes
at the end to read through your work.
It is no good only completing four questions when
you should have done five. It is so much harder for
you to pass on just four questions. Have a clock or
watch with you and be ruthless in your timekeeping.
If you find you are spending too long on an answer,
you are probably not answering the question
specifically enough.
– Theory without application
The examiners expect relevant theory to be illustrated
with practical examples and illustrations. These can
be drawn from your own marketing experience, or
observations, or your reading. A theory paper without
evidence of practical appreciation is unlikely to be
successful.
 Marketing Communications

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 Marketing Communications

Specimen Answers
for
Marketing Communications

December 2003

Introduction
The secret of success when taking any examination is preparation. With this important thought in mind,
The Chartered Institute of Marketing has asked the Senior Examiners to produce these specimen answers
to the actual questions set.

The answers are for your guidance and should not be seen as perfect solutions. In marketing, there is
never one entirely correct solution. Whatever the style adopted, the format and the content of these
answers should be indicative of what the examiners want to see.

It is hoped that you will find these specimen answers, and the examiners’ comments, useful and
informative. However, it is regretted that no correspondence can be entered into regarding the subject
matter. We advise students to practise past questions and to use their tutors for guidance and feedback.

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 Marketing Communications

Advanced Certificate in Marketing - Stage 2

Marketing Communications

Part A

Question 1

Background
This Case Study is based on a real life organisation in the fragrance and cosmetics industry which
markets different brands to different segments. (Note that details have been changed for assessment
purposes). The compulsory question is divided into four parts to assess candidates' knowledge and
understanding of various aspects of marketing communications.

Parts a and b attract 10 marks each and ask candidates to evaluate communications messages and
the extent to which L'Oreal uses source credibility to improve its communications.

Parts c and d attract 15 marks each and ask candidates to explain the link between marketing
communications and international marketing strategy, and recommend ways in which
communications can influence relationships with its intermediaries.

Note that a report format is asked for.

Report for L'Oreal Audit Project Manager

An Evaluation of L'Oreal's Marketing Communications

From: Karl Winston, Marketing Audit Team

To: Jeremy Kennedy, Audit Project Manager

1.0 Introduction and Terms of Reference

2.0 Marketing Communications used to Support Professional and Consumer Products Divisions
3.0 Source Credibility
4.0 Marketing Communications and the International Marketing Strategy
5.0 Relationships with Intermediaries
6.0 Conclusion and Recommendations

a.

1.0 Introduction and Terms of Reference

The promotional element of the marketing mix is used to communicate with our target audience. After
making the strategic decisions about product, price and distribution, the promotional variable is used to
attract customers and aims to keep them loyal to the brand. The term promotion is sometimes confused
with one element of the promotional mix, 'sales promotion', and is therefore referred to as 'Marketing
Communications'.

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Marketing Communications are used to help complete certain objectives set by marketing plans such as
brand repositioning, the launch of a new product or increasing awareness or sales. Different elements of
marketing communications include -

Advertising
Personal selling
Sales Promotion
Sponsorship
Public Relations
Direct Mail
Events

Other elements of the marketing mix such as packaging are also use to communicate with the customer.

The purpose of this report is to evaluate current marketing communications, how they can be
influenced by international marketing strategy and how they can influence relationships with
intermediaries.

2.0 Marketing Communications used to Support Professional and Consumer Products Divisions
The message communicated by L'Oreal through their marketing for consumer products has a distinct
style. For their L'Oreal brand supermodels are used who function as the face of the brand. The
consumer then identifies the brand as part of a glamorous and aspirational lifestyle. L'Oreal's consumer
products are promoted using one of two marketing communication methods. The Lancome range of
products is communicated as stylish and luxurious. This message, along with minimal packaging but
substantial product information, helps L'Oreal to communicate effectively with their target audience for
the Lancome product range. These messages are communicated mainly via advertising on television and
in specialist style magazines or at the point of purchase by using experts in department stores.

The other message communicated through a different marketing communications mix is for the L'Oreal
Paris and Garnier product ranges. Their brand image and values are communicated through
spokespersons, beauty, a lower price and more attractive packaging. These marketing communications
methods help to reach the younger target audience.

The marketing communications used when targeting the trade channel differ from those used for the
different consumer product ranges. When communicating with these professional bodies, such as
exclusive hair stylists, the image is one of professionalism and technological supremacy. Further
technical information about the products is also provided through training along with management
seminars and fashion shows. This helps to communicate the professionalism and business structure of
the L'Oreal Professional brand to the trade channel. These are much more personalised than the
marketing communications used for the consumer brands with personal selling, exhibitions and events
taking on a more prominent role.

Comments
This candidate gives a good evaluation of the communications approach used to support both
consumer and professional brands.

The answer identifies the emotional, aspirational and luxurious nature of consumer
communications, and the fact that celebrities and experts are used to promote the brands. In
contrast it identifies that trade promotions use a more rational approach, stressing professionalism
and giving technical information.

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b.

3.0 Source Credibility

Source credibility is defined as the extent to which the audience of a communication perceives the
source to be reliable and objective in the message that is being put across.

It therefore follows that if, as in L'Oreal's brand promotion, supermodels and celebrities are used, they
must be recognised by the target audience as credible in terms of the 'beauty' message that is being
communicated.

Other consumer brands within the group use spokespersons to communicate their messages, and these
must again be perceived to have the necessary expertise to be responsible for the message being put
across.

Kelman put forward that there were three source characteristics - as well as source credibility there is
source attractiveness, and also source power.

Source attractiveness would apply to the type of communication L'Oreal uses for Lancome. It looks to
build personal relationships with its customers through selective distribution. The 'Official Beauty
Consultants' used in these outlets are carefully selected so that the target audience identifies with them,
and finds them suitably 'attractive', probably in age and appearance, to present the Lancome product.
For example, these consultants will also be professionally made-up using the product range.

Source power relates to the extent that a sales person can exert power over a buyer. This would be
more common in trade promotion and is not evident in the Case Study. It could be used in a
department store, where there is competition from many other brands, and free gifts are offered by one
brand and not another. This could be described as 'source power'.

In summary, L'Oreal use source credibility in many ways to enhance their promotions - specialist sales
personnel (or consultants), celebrities and supermodels are all appropriate sources for their message.

Comments
This is a very good answer, relating source credibility to the Case Study, and identifying and
explaining the three source characteristics attributed to Kelman (1961).

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c.

4.0 Marketing Communications and the International Marketing Strategy

Marketing communications can be influenced by an organisation's international marketing strategy in
several ways. L'Oreal operates in 130 countries around the world, and offers brands that are designed
with several different cultures (that are associated with fashion and life style) - French, Italian and
American. These appeal to a range of customer segments in many countries.

This strategy allows them to offer standard products as opposed to adapting the product to different
country markets. Communications might then also be standardised or adapted. The most obvious
difference may be language. For example, L'Oreal may use the same products, the same celebrity, and
the same strapline, but advertisements may be made with the 'voiceover' in the local language.

Companies may choose to adopt a global or geocentric strategy, where products, services, and
promotions are the same wherever they are offered. Alternatively, they may choose a polycentric
strategy which means that their approach is varied depending on the local needs of each market they
enter. L'Oreal uses a combination of these strategies which is sometimes referred to as 'glocalisation'.

A final factor that impacts on communications is the availability of Communications Agencies in the
countries where they are operating. Companies need to make a decision about whether to use an
Agency in their home country which has international offices, or experience in communicating in those
markets, or whether to use separate Agencies in each country. An international Agency offers
advantages in controlling the image and message, and being cost-effective, as well as understanding the
local media in each region. If separate Agencies are used, while these may have a better understanding
of their own local media, the company loses some control over the message, and there may be no
suitable Agency in some of the countries targeted.

Comments
This is a good answer, which recognises some of the influences that an international marketing
strategy may have over communications. More marks might have been gained by mentioning the
impact this would have on resource and budget availability.

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d.

5.0 Relationships with Intermediaries

Maintaining effective relationships with intermediaries, such as hair salons, is very important to
L'Oreal. Building and maintaining relationships with customers helps to create trust, cooperation
and loyalty which helps L'Oreal in providing customer satisfaction and can lead to improved market
share and profits.

The effective use of marketing communications can help L'Oreal to build better relationships with their
intermediaries. The selection of appropriate promotional media for the marketing mix is very important.
One of the key promotional media when building relationships with intermediaries is personal selling.
As the intermediaries in this instance are hair salons, or businesses, then their buying decision process
is different to that of a consumer and personal selling can benefit L'Oreal by helping to build
relationships and promote products.

It is important that contact with these intermediaries is maintained on a regular basis, providing support
and training to use L'Oreal's products. The easier the sales force makes life for the salon staff, the more
likely they are to use and reorder their products.

Advertising and PR in trade press and on the website can be used to support the sales force.

Comments
This is a good answer to this part of the question, which covers an appropriate promotional mix for
this audience, and suggests training and support that will help to build the relationship. Additional
marks could have been earned through discussion about the ways communication can be used to
reduce nay conflict within the channel.

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Part B

Question 2

Background
This question is set to assess candidates' ability to compare two promotional tools, explain how a
promotional mix can be evaluated, and how word of mouth promotion can be used in a specific
context.

Note that the marks are split 10 marks for each of the first two parts, and five marks for the final part.

To: Jane McLoughlin, Marketing Director, HiEnergy Drinks

From: Dean Pullman, Marketing Manager
Re: Meeting with Advertising Agency

These notes cover the following topics -

A comparison between direct marketing and advertising
Evaluation of the promotional mix
Recommendations for word-of-mouth communications

a.
A comparison between direct marketing and advertising.

Direct marketing includes all of the marketing tools available to a marketer that enable direct
communication. These include direct mail, telemarketing, interactive TV advertising, some forms of
personal selling (such as door-to-door sales) and the internet. At its most basic level direct marketing is
used to reach targeted customers directly.

Advertising is a non-personal form of communication. It uses channels of communication such as

television, radio, the press, outdoor billboards and the internet. Advertising can be used to
communicate with a variety of customers, from very large to small specific groups.
Direct Marketing
Cost Determined by media
used and number of contacts,
relatively expensive
Channels Direct mail, telephone marketing,
interactive TV advertisements, door
to door sales, internet
Advantages Selective, circulation is
controlled, personal, easy to
measure performance, little
wastage of resources
Disadvantages Can be expensive, perceived
as 'junk', increasingly
controlled by regulations,
possible invasion of privacy
Communication effectiveness Selection of audience by
organisation, use of database
and MkIS improves targeting
and effectiveness, technological
developments improve
effectiveness such as
telecommunications, internet
and digital TV, easier to measure
results and success
Advertising
From very expensive for prime
time television to lower cost
outdoor advertising
Television, radio, newspapers,
magazines, outdoor, public
transport, internet
Reach a large audience,
TV and high class press
communicate prestige, highly
visible, degree of selectivity
Can be very expensive, highly
perishable message, audience
size/type not guaranteed
Not very cost effective, small degree
of selectivity but no control, TV
and specialist communications
associated with prestige, message is
highly perishable, hard to measure
results and success of advertising
campaign

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b.
In order to evaluate the promotional mix implemented it is vital that the initial objectives set in the
marketing plan are well developed. These objectives need to specific, measurable, accurate, relevant
and time bound - or SMART. Depending on the scope of the marketing plan, the size of the
organisations marketing department and the number of promotional specific objectives, in order to best
evaluate the promotional mix it may be advisable to examine each promotional tool implemented or
evaluate the campaign as a whole.

Two key ways of evaluating a promotional campaign and measuring effectiveness relate to measurable
areas of the objectives - sales or communications.

For example, the objective set may be to increase sales by 10% in a particular time period or to
increase the level of trial or adoption in a set number of customers using particular promotional
tools/activities. Sales figures and the rate of trial and adoption can be measured quite easily by
organisations and can help to evaluate the promotional tools used.

Another way of evaluating the promotional campaign would be to assess the customers' awareness of
the product/service/brand/organisation promoted, and their perceptions and attitudes towards the
campaign and product/service/brand/organisation. This would be done using primary research methods
- mainly questionnaires, surveys or focus groups. The desired outcome of the promotional campaign, set
in the objective(s), can be measured against the results in order to judge effectiveness.

However, if a vast amount of money is being invested in the promotional campaign it may be beneficial
to pre-test the response to their marketing communications. This will help an organisation to maximise
the effectiveness of the campaign through evaluation prior to the promotional campaigns actual
implementation.

c.
Word-of-mouth communications can be used as part of a promotional campaign in order to support
other promotional activities. There are two key types of figures that can be used for word-of-mouth
communications - 'opinion leaders' and 'opinion formers'. Opinion leaders are normally 'ordinary'
people but fall into a buying category of innovator or early adopter. They seek out information about a
product, normally a new product, and pass it on to family and friends. These 'ordinary' people are
sometimes used in advertisements for new products in order to communicate with an audience that
may initially be wary of a product in order to reassure.

Opinion formers have influence over a target audience due to their status or qualifications. For example,
individuals with respected scientific qualifications may be used to communicate the benefits and
recommend new technological or pharmaceutical products. Sometimes TV and film stars are used to
communicate social issues or the needs of particular charities.

Using these two word-of-mouth communication methods the promotional campaign can be supported
and enhanced. Selecting the appropriate person to implement a word-of-mouth campaign can also help
add credibility to the organisation and its brand/product or service. For example, we could benefit by
using a recognised sports personality as 'the face' of our advertising campaign. We could then give out
samples at sports events, and also obtain PR by targeting appropriate sports magazines.

Comments
This is a good answer which shows a good basic understanding of the concepts and tools being
examined. It could be improved by further links to the context of the question - the Hi-energy
drinks market. Some mention is made in the final section to the use of sports personalities to
encourage word of mouth communication, but this link should have been made throughout.

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Question 3

Background
This question is set to assess candidates' ability to compare the use of two types of media, explain
how four types of sales promotion works, and to make recommendations about relationship
marketing in the context of a national airline faced with low price competition.

Note the allocation of marks is 10 marks for parts a and c, with only five marks for part b. Time and
effort should be allocated accordingly.

Report for UK Airlines

Enhancing Performance through Marketing and Promotion

To: David Hessle, Marketing Communications Manager

From: Amanda Hughes, Marketing Executive
Date: 13th Dec 2003

1.0 Introduction and Terms of Reference

2.0 Outdoor and Print Media
3.0 Sales Promotion
4.0 Relationship Marketing Approach
5.0 Conclusion and Recommendations

1.0 Introduction and Terms of Reference

UK Airlines have been operating in the UK for over 20 years, flying to key international destinations and
have won numerous awards for the provision of quality service over the last ten years. However, over
the last five years low cost competitors have entered the international air travel market; providing basic
service and cheap air fares. This has had a major impact on the performance of UK Airlines as more
customers opt for a budget travel.

This report will look at various promotional tools that could be used to improve on our organisations
current performance. It will also consider the benefits of adopting a relationship marketing approach as
opposed to transactional marketing.

a.

2.0 Outdoor and Print Media

Outdoor media, such as billboards and posters on public transport are widely used throughout the UK.
Billboards are found in many towns and cities and also on major roads. Outdoor media is often used to
support other promotional activities such as advertising campaigns.

Print media includes local, national, free and weekly newspapers and magazines (these may be special
interest, consumer, professional and controlled circulation). Magazine scan be useful when
organisations wish to target particular socio-economic groups or those with a particular interest.

The following table looks at the advantages and disadvantages of both outdoor and print media for
advertising.

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Outdoor
Advantages Low cost, communication can be
placed close to the point of sale, the
advert is working 24 hours a day,
geographic selection, the message
may be viewed many times
(repetition)
Disadvantages There is no socio-economic selectivity,
it can seldom attract full attention,
message has to be short, simple and
effective, has come under criticism for
being a potential traffic hazard
Print
Most people read printed media -
especially newspapers, allows socio-
economic and geographic selection,
short lead time for newspapers, good
reproduction of advertising in
magazines due to long life
Short life in newspapers affecting
reproduction, large advertising volume
in all media, High cost in magazines
along with long lead time

As you can see both of these promotional media have many advantages and disadvantages in relation to
life-span, cost and effective targeting of customer segments. Both can be useful in our promotional mix,
but print media is more targetable for the type of message we need to communicate.

Comments
This is a very good answer, which clearly contrasts the advantages and disadvantages of the two
promotional tools, and makes a recommendation for their use in the scenario given in the question.

b.

3.0 Sales Promotion

Sales promotion is a specific promotional tool used to add value to, or give an incentive to purchase.
They can be aimed at a variety of audiences such as resellers, consumers and salespeople. It is a
promotional tool often used to increase the level of short term sales through the provision of the
incentive to purchase. There are two key categories of sales promotion - consumer sales promotion and
trade sales promotion. In this report I will explain two sales promotion techniques for consumer and
two for trade that I consider to be relevant to UK Airlines.

Consumer Sales Promotions

Coupons - These are used to encourage the consumer to trial a product and increase short term sales for
the organisation. Coupons work by offering a reduction or discount on the price of the product or
service. Coupons are a good way of rewarding loyal customers. However, it is important to control
their use as continued use will affect the perceived value of our product.

Consumer Competitions - These often encourage the consumer to compete for prizes based on
knowledge or skill. The prize could be a free flight(s) to destinations of our choice. These competitions
often benefit from being used in conjunction with other sales promotions such as coupons.

Trade Sales Promotions

Premium or push money - These promotions help obtain the commitment of the sales force. These could
be either our own sales force or travel agents. Sales people are offered additional remuneration to push
travel with our airline.

Sales contests - This form of sales promotion is used to motivate retailers and sales personnel through
rewarding achievement. Specific (higher) sales targets are set and as an incentive to achieve the level of
sales a trip on our airline could be offered to the most successful sales person/retailer etc.

Comments
This is a very good answer, describing four appropriate sales promotional tools for the airline.
This candidate has described two consumer sales promotional tools, and two that can be used
for the trade.

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c.

4.0 Relationship Marketing Approach

As the marketplace for our products and services becomes more competitive it is important that we
adopt a 'relationship marketing' approach as opposed to a 'transaction marketing' approach. Transaction
marketing focuses on the actual transaction between the business and the customer whereas
'relationship marketing' focuses on building a relationship with the customer in order to improve the
level of sales. The following table illustrates some of the key differences between transaction and
relationship marketing.
Transaction marketing Relationship marketing
Focuses on the sale of the product - the Focuses on the retention of customers through
individual transaction building relationships
Focuses on the features of the product Focuses on the benefits of the product to
the customer
No major emphasis on customer service Major emphasis on the provision of quality
customer service
The provision of quality is the responsibility The provision of quality is the responsibility
of the product of everyone

Adopting a relationship marketing approach will help our organisation to develop beneficial customer
relationships and brand loyalty. If the customers we wish to target and retain are those that pay full fare
and enjoy the full range of services that we provide it is essential that we adopt a relationship marketing
approach to build trust and commitment.

5.0 Conclusion and Recommendations

In conclusion there are a few important points to note that may benefit the organisation in order to
improve on our current operating performance. Using specialist print media we can more effectively
target our full fare business and leisure travellers and communicate 'prestige' through specialist print
media. Sales promotions can help to improve sales levels in the short term and may be useful in
attracting new customers. However, to retain our customers (existing and new) our organisation will
benefit from the adoption of a relationship marketing approach. This involves the provision of quality
products and services - which is the responsibility of the entire organisation.

Comments
This is a good answer which contrasts relationship and transactional marketing, and highlights the
benefits of the relationship marketing approach. Further marks could have been gained by
explaining how communications can support the relationship marketing approach.

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Question 4

Background
This question is set to assess candidates' understanding of the communications industry in their own
country. It asks candidates to explain the key issues facing the communications industry, the
regulatory arrangements, and ethical issues.

Notes for presentation to McQueen Burgers

a. The marketing communications industry in the UK

The Marketing communications industry in the UK, as in many countries, is constantly changing.
Recently there have been many new specialist agencies emerge that deal with electronic media. This is
becoming very relevant as regulations such as the Privacy and Electronic Communications Regulations
are introduced, as it can be difficult for the generalist marketing manager to keep in touch with all
developments. There are several different types of agencies that can help marketing communications
managers. The four main types are described below.

Full service - these offer a "one-stop-shop" approach to agency services, with a full range offered by
one, usually large, firm. This type of agency may well be useful to you to help you control the use of
your brand by franchisees.

Specialist - these agencies focus on one of the key areas of communication, such as public relations,
new media or sales promotion. However, if you are using a Full Service Agency, they would be able to
deal with PR, sales media and new media for you as well.

Creative hotshops - these focus on the creative aspect of promotion.

Media buying houses - as their title suggests, these provide a specialist media buying function. They are
in a position to negotiate good prices because of the volume of business they place, and because they
have a well-developed knowledge of the media, so can offer specialist guidance and expertise.

Full service agencies may be the most cost-effective approach for your needs. However, you need to be
sure that they have the necessary expertise in all aspects that you require, as some of these agencies
have grown at the cost of the level of service they are able to offer. A careful selection process is
needed.

Comments
This is a good answer, and describes the trends in the industry in the UK. More marks could have
been gained by mentioning the increasing pressure on Agencies to provide measurement facilities
that demonstrate value for money to their clients. In addition, although brief mention of regulation
is made in respect of electronic media, this could also have been expanded and explained further.

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b. Regulatory and legal arrangements

In the UK regulation of the communications industry is undertaken through a combination of legislation
and voluntary self-regulation.

The Advertising Standards Agency (ASA) regulates advertising and makes decisions on complaints
received from the public and pressure groups about all advertising except for TV. This is a form of self-
regulation.

TV advertising is regulated by the ITC (Independent Television Commission), and the European Union
(EU) has recently introduced regulations that govern the use of electronic communication, especially e-
mail, and say that e-mail should not be used without the recipient's permission.

There is also legislation that impacts on communication within the UK. For example, the Trade
Descriptions Act impacts on the words that advertisers use to describe their products or services.

The Consumer Protection Act impacts on the content of advertisements about financial services that are
offered, and the Data Protection Act governs the use of personal information held by companies, so
impacting on direct marketing activity.

Comments
This is a good answer, recognising the difference between legislation and regulation, and giving
examples of each.

Further marks could have been gained by expanding on the type of action each might take, and
also giving examples of actual marketing communications that have received complaints - for
example, the Wrigley's chewing gum advertisement which was withdrawn following a record
number of complaints to the ASA.

c. Ethical behaviour and Corporate Responsibility

Business ethics concerns the use of ethical principles within a business. In terms of marketing
communications this means that their activities should be legal, decent, honest and truthful, and not be
used to mislead.

Social responsibility encompasses a wide range of issues. It may involve employment issues, such as the
use of slave or child labour as part of the supply chain. It may also be about environmental concerns
(rainforest destruction or CFC emissions).

In looking to launch your brand into the UK issues such as the biodegradability of your packaging and
your approach to healthy eating may be examples of ssues that could impact either positively or
negatively on your brand, depending on the stance you take.

We would recommend that you consider the packaging you use, and use PR to communicate the
socially responsible stance that you take on this issue. This information should also be published on
your website.

Also, you should consider adjusting your menu to include some healthy eating options. There is
considerable feeling within the UK currently about fast food and its contribution to obesity in both
adults and children. Again, PR and the website, as well as advertising can be used to enhance the
brand and public perception.

Comments
This is a very good answer, which expalins the terms ethics and social responsibility, and then links
them appropriately to the example given in the question.

© The Chartered Institute of Marketing 2004

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 Marketing Communications

Question 5

Background
This question is set to assess candidates' understanding of the way in which communications
agencies work. It asks about agency selection and ways in which advertising effectiveness can be
measured.

Information Pack for HIGH FIVE

a. Finding and appointing a new Agency

The first stage in agency selection involves searching various information sources to identify a short list
of firms. These sources include the following -

· Campaign Portfolio
· The Advertising Agency Roster (AAR
)· Trade press
· Web sites
· Recommendations from customers or other colleagues

The next stage is to visit the firms identified on your short list, just as you visited us, for a credentials
presentation. As you will remember, we presented to you on matters such as our track record, our key
areas of expertise, and our size and resources.

Following this visit, a smaller group of agencies will be invited to pitch, and it is this stage of the
process that we have reached today. We received your Brief six weeks ago, and we will present today
to this Brief.

Comments
This is a very good answer, which identifies several appropriate sources of information, and then
runs through the stages in the process in the context of the question.

© The Chartered Institute of Marketing 2004

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 Marketing Communications

b. Key factors when deciding on a new Agency

When selecting a suitable agency to work with, the main consideration is the "people" that are to be
involved. The client and the agency need to be able to work closely together as a team, so their ability
to build a good relationship is essential. This is often referred to as the 'empathy' that exists between
agency and client.

There are many other factors to consider including who is on their current client list, and whether this
will cause a conflict of interest. If they have some of your competitors as clients, then this may cause
problems in making decisions about whose interests should be considered first.

A third factor for consideration is how big the agency is, and how well resourced. The agency you
appoint needs to be able to plan and act for you in a professional manner. A small agency with very
few staff may not be able to cope with a large account such as yours.

Another important point is how much the services of the agency will cost, as all organisations work
within financial constraints. There are a number of different ways in which agencies are remunerated
for their work, and these include:

n Fees:
o Hourly rate.
o Project-by-project rates.
n Media % commission.
n Performance related or payment by results.

Comments
This is an excellent answer, which covers four of the key factors for consideration when choosing an
agency - empathy, current clients and conflict of interest, size and resources, and costs.

Other factors that would have attracted marks would include background and experience, creative
ideas and proposals, any Awards won, and client references/testimonials.

© The Chartered Institute of Marketing 2004

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 Marketing Communications

c. Evaluating the effectiveness of an advertising campaign

In evaluating the effectiveness of an advertising campaign, there are several methods we can use. Four
of these methods are outlined below -

· The first method is to compare the outcome of the campaign to the promotional
objective that was set for the campaign. For example, this might be 'to improve
awareness of HIGH FIVE and its products and services by 5% by the end of December
2004'. The 5% mentioned in the objective could be measured through pre- and post-
testing.

· Another method of measuring the effectiveness of a campaign is to look at sales results

for the period of the campaign and assess to what extent they increase. This could be
the result of increased sales activity however, so is difficult to positively attribute to the
advertising campaign itself.

· Advertising campaigns may aim to retain customers, and rate of customer attrition
before and after the campaign may also be an effective measure of these figures.

· Finally, to be effective an advertising campaign needs to reach the target audience. The
extent to which the message has reached this audience can also be measured through
research.

Comments
This is also a very good answer, which identifies four appropriate measures of advertising
effectiveness. Further marks could have been gained through a more detailed explanation of each
method. Links to the context of the question would also have strengthened this answer.

A measure of brand equity would also have been an acceptable method to put forward.

© The Chartered Institute of Marketing 2004

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