Answer Dec 03

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Marketing Communications

The Chartered Institute of Marketing 2004- i -

Advanced Certificate in Marketing - Stage 2


December 2003


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The Chartered Institute of Marketing 2004

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Special Notice

CIM Holdings Ltd 2001. All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing in

any medium by electronic means and whether or not transiently or inadvertently to some other use of this publication) without the written permission ofthe copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by

the Copyright Licencing Agency Ltd, 90 Tottenham Court Road, London, England W1P 9HE.



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Examination Papers

Each subject differs slightly from the other, and youneed to make sure that you are familiar with the styleof question and the requirements of the differentexaminations.

There are three basic question types:

1. The mini case or scenario or articlePart A of all papers (except Analysis and Decision)has a mini case, scenario or article, with compulsoryquestions. This represents only part of the paper, butstudents are required to make marketing decisionsbased on the information given. Spend timeevaluating the material given in the case, but do notrewrite this for the examiners. You will gain credit forthe decisions and recommendations you make on thebasis of the analysis, but nothing for the analysisitself. This is a compulsory part of the paper designedto evaluate practical marketing skills. Make sure you

allocate enough time to it, but do not ignore theother part of the paper.

2. The straightforward exam questionYou are expected to make a choice from a number ofquestions. There is some skill necessary in selectingthe questions which you are best prepared to answer.Read the questions through carefully before makingyour choice. Think about how you will tackle thequestion. Check you are answering the question inthe context it has been set, then make a rough planbefore you start writing. Remember that examinersare interested in quality answers.

3. Analysis and Decision (Diploma)This final paper is an open book examination. TheCase Study is sent out 4 weeks before the paper issat. Students should complete their analysis andpreparation before the examination takes place. Thequestions asked will require marketing decisions andactions in specific response to the questions set. Thequestion paper will include extra information aboutthe case which will have to be used to obtain bestmarks.

Common Mistakes

Reports from examiners are published regularly andare available to students. Even a casual look throughthese reveals the same concerns and problemscoming up time and time again across all subject

areas. Most of these common mistakes are caused bya lack of exam technique and examination practice.

Not answering the question setThe examiners are looking for both relevant contentand its application in an appropriate context. Youmust be able to work flexibly with the material youhave studied, answering different questions indifferent ways, even though the fundamental theoryremains the same.

Presentation and styleBoth of these essential business skills are of greatimportance to a marketing practitioner. Theexaminers expect work to be presented in a well-

written, professional manner. Report style, usingsub-headings and indented numbering for points etc.is not only acceptable, but looks much morecommercially credible than academic essays. Thisapproach allows you to break the work up, highlightthe key points, and structure your answer in a logicalway. Take care with your grammar and use oflanguage; small errors can change the senseconsiderably.

TimingThe scarce resource in an examination is time. Youmust 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 areallocated. Spread your time proportionately to themark allocation, i.e. if the mini case = 40% of marks,allocate 40% of your time to it. Allow a few minutesat the end to read through your work.

It is no good only completing four questions whenyou should have done five. It is so much harder foryou to pass on just four questions. Have a clock orwatch 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 questionspecifically enough.

Theory without applicationThe examiners expect relevant theory to be illustratedwith practical examples and illustrations. These canbe drawn from your own marketing experience, orobservations, or your reading. A theory paper withoutevidence of practical appreciation is unlikely to besuccessful.


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Specimen Answersfor


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 answersto the actual questions set.

The answers are for your guidance and should not be seen as perfect solutions. In marketing, there isnever one entirely correct solution. Whatever the style adopted, the format and the content of theseanswers 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 andinformative. However, it is regretted that no correspondence can be entered into regarding the subjectmatter. We advise students to practise past questions and to use their tutors for guidance and feedback.



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Advanced Certificate in Marketing - Stage 2


Part A

Question 1

Background

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

Parts a and b attract 10 marks each and ask candidates to evaluate communications messages andthe 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 marketingcommunications and international marketing strategy, and recommend ways in whichcommunications can influence relationships with its intermediaries.

Note that a report format is asked for.

Report for L'Oreal Audit Project ManagerAn Evaluation of L'Oreal's Marketing Communications

From: Karl Winston, Marketing Audit TeamTo: Jeremy Kennedy, Audit Project Manager

1.0 Introduction and Terms of Reference2.0 Marketing Communications used to Support Professional and Consumer Products Divisions3.0 Source Credibility

4.0 Marketing Communications and the International Marketing Strategy5.0 Relationships with Intermediaries6.0 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. Aftermaking the strategic decisions about product, price and distribution, the promotional variable is used toattract customers and aims to keep them loyal to the brand. The term promotion is sometimes confusedwith one element of the promotional mix, 'sales promotion', and is therefore referred to as 'MarketingCommunications'.



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

AdvertisingPersonal selling

Sales PromotionSponsorshipPublic RelationsDirect MailEvents

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 beinfluenced by international marketing strategy and how they can influence relationships withintermediaries.

2.0 Marketing Communications used to Support Professional and Consumer Products DivisionsThe message communicated by L'Oreal through their marketing for consumer products has a distinctstyle. For their L'Oreal brand supermodels are used who function as the face of the brand. Theconsumer then identifies the brand as part of a glamorous and aspirational lifestyle. L'Oreal's consumerproducts are promoted using one of two marketing communication methods. The Lancome range ofproducts is communicated as stylish and luxurious. This message, along with minimal packaging butsubstantial product information, helps L'Oreal to communicate effectively with their target audience forthe Lancome product range. These messages are communicated mainly via advertising on television andin 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'OrealParis and Garnier product ranges. Their brand image and values are communicated through

spokespersons, beauty, a lower price and more attractive packaging. These marketing communicationsmethods help to reach the younger target audience.

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

CommentsThis candidate gives a good evaluation of the communications approach used to support bothconsumer and professional brands.

The answer identifies the emotional, aspirational and luxurious nature of consumercommunications, and the fact that celebrities and experts are used to promote the brands. Incontrast it identifies that trade promotions use a more rational approach, stressing professionalismand 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 thesource 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, theymust be recognised by the target audience as credible in terms of the 'beauty' message that is beingcommunicated.

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

Kelman put forward that there were three source characteristics - as well as source credibility there issource 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 BeautyConsultants' 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 bemore common in trade promotion and is not evident in the Case Study. It could be used in adepartment store, where there is competition from many other brands, and free gifts are offered by onebrand 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 salespersonnel (or consultants), celebrities and supermodels are all appropriate sources for their message.

CommentsThis is a very good answer, relating source credibility to the Case Study, and identifying andexplaining 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 inseveral ways. L'Oreal operates in 130 countries around the world, and offers brands that are designedwith 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 differentcountry markets. Communications might then also be standardised or adapted. The most obviousdifference may be language. For example, L'Oreal may use the same products, the same celebrity, andthe 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, andpromotions are the same wherever they are offered. Alternatively, they may choose a polycentricstrategy which means that their approach is varied depending on the local needs of each market theyenter. 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 thecountries where they are operating. Companies need to make a decision about whether to use anAgency in their home country which has international offices, or experience in communicating in thosemarkets, or whether to use separate Agencies in each country. An international Agency offersadvantages in controlling the image and message, and being cost-effective, as well as understanding thelocal media in each region. If separate Agencies are used, while these may have a better understandingof their own local media, the company loses some control over the message, and there may be nosuitable Agency in some of the countries targeted.

CommentsThis is a good answer, which recognises some of the influences that an international marketingstrategy 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 toL'Oreal. Building and maintaining relationships with customers helps to create trust, cooperationand 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 theirintermediaries. 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 processis different to that of a consumer and personal selling can benefit L'Oreal by helping to buildrelationships and promote products.

It is important that contact with these intermediaries is maintained on a regular basis, providing supportand training to use L'Oreal's products. The easier the sales force makes life for the salon staff, the morelikely 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.

CommentsThis is a good answer to this part of the question, which covers an appropriate promotional mix forthis audience, and suggests training and support that will help to build the relationship. Additionalmarks could have been earned through discussion about the ways communication can be used toreduce 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 apromotional mix can be evaluated, and how word of mouth promotion can be used in a specificcontext.

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 DrinksFrom: Dean Pullman, Marketing ManagerRe: Meeting with Advertising Agency

These notes cover the following topics -

A comparison between direct marketing and advertisingEvaluation of the promotional mixRecommendations 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 directcommunication. These include direct mail, telemarketing, interactive TV advertising, some forms ofpersonal selling (such as door-to-door sales) and the internet. At its most basic level direct marketing isused to reach targeted customers directly.

Advertising is a non-personal form of communication. It uses channels of communication such astelevision, radio, the press, outdoor billboards and the internet. Advertising can be used tocommunicate with a variety of customers, from very large to small specific groups.

Direct Marketing Advertising

Cost Determined by media From very expensive for primeused and number of contacts, time television to lower costrelatively expensive outdoor advertising

Channels Direct mail, telephone marketing, Television, radio, newspapers,interactive TV advertisements, door magazines, outdoor, publicto door sales, internet transport, internet

Advantages Selective, circulation is Reach a large audience,controlled, personal, easy to TV and high class press

measure performance, little communicate prestige, highlywastage of resources visible, degree of selectivity

Disadvantages Can be expensive, perceived Can be very expensive, highlyas 'junk', increasingly perishable message, audiencecontrolled by regulations, size/type not guaranteedpossible invasion of privacy

Communication effectiveness Selection of audience by Not very cost effective, small degreeorganisation, use of database of selectivity but no control, TVand MkIS improves targeting and specialist communicationsand effectiveness, technological associated with prestige, message isdevelopments improve highly perishable, hard to measureeffectiveness such as results and success of advertisingtelecommunications, internet campaignand digital TV, easier to measureresults and success



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b.

In order to evaluate the promotional mix implemented it is vital that the initial objectives set in themarketing plan are well developed. These objectives need to specific, measurable, accurate, relevantand time bound - or SMART. Depending on the scope of the marketing plan, the size of theorganisations 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 orevaluate the campaign as a whole.

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

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

Another way of evaluating the promotional campaign would be to assess the customers' awareness ofthe 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, setin 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 beneficialto pre-test the response to their marketing communications. This will help an organisation to maximisethe effectiveness of the campaign through evaluation prior to the promotional campaigns actualimplementation.

c.

Word-of-mouth communications can be used as part of a promotional campaign in order to supportother 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 aproduct, normally a new product, and pass it on to family and friends. These 'ordinary' people aresometimes used in advertisements for new products in order to communicate with an audience thatmay 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 andrecommend new technological or pharmaceutical products. Sometimes TV and film stars are used tocommunicate 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 helpadd credibility to the organisation and its brand/product or service. For example, we could benefit byusing a recognised sports personality as 'the face' of our advertising campaign. We could then give outsamples at sports events, and also obtain PR by targeting appropriate sports magazines.

CommentsThis is a good answer which shows a good basic understanding of the concepts and tools beingexamined. It could be improved by further links to the context of the question - the Hi-energydrinks market. Some mention is made in the final section to the use of sports personalities toencourage 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, explainhow four types of sales promotion works, and to make recommendations about relationshipmarketing 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 andeffort should be allocated accordingly.

Report for UK AirlinesEnhancing Performance through Marketing and Promotion

To: David Hessle, Marketing Communications Manager

From: Amanda Hughes, Marketing ExecutiveDate: 13th Dec 2003

1.0 Introduction and Terms of Reference2.0 Outdoor and Print Media3.0 Sales Promotion4.0 Relationship Marketing Approach5.0 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 andhave 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 basicservice and cheap air fares. This has had a major impact on the performance of UK Airlines as morecustomers opt for a budget travel.

This report will look at various promotional tools that could be used to improve on our organisationscurrent performance. It will also consider the benefits of adopting a relationship marketing approach asopposed 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 tosupport other promotional activities such as advertising campaigns.

Print media includes local, national, free and weekly newspapers and magazines (these may be specialinterest, consumer, professional and controlled circulation). Magazine scan be useful whenorganisations 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 foradvertising.



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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 weadopt a 'relationship marketing' approach as opposed to a 'transaction marketing' approach. Transactionmarketing 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 thelevel of sales. The following table illustrates some of the key differences between transaction andrelationship marketing.

Transaction marketing Relationship marketing

Focuses on the sale of the product - the Focuses on the retention of customers throughindividual transaction building relationships

Focuses on the features of the product Focuses on the benefits of the product tothe customer

No major emphasis on customer service Major emphasis on the provision of qualitycustomer service

The provision of quality is the responsibility The provision of quality is the responsibilityof the product of everyone

Adopting a relationship marketing approach will help our organisation to develop beneficial customerrelationships and brand loyalty. If the customers we wish to target and retain are those that pay full fareand enjoy the full range of services that we provide it is essential that we adopt a relationship marketingapproach 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 toimprove on our current operating performance. Using specialist print media we can more effectivelytarget our full fare business and leisure travellers and communicate 'prestige' through specialist printmedia. Sales promotions can help to improve sales levels in the short term and may be useful inattracting 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 qualityproducts and services - which is the responsibility of the entire organisation.

CommentsThis is a good answer which contrasts relationship and transactional marketing, and highlights thebenefits of the relationship marketing approach. Further marks could have been gained byexplaining how communications can support the relationship marketing approach.



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Question 4

BackgroundThis 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, theregulatory 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 isbecoming very relevant as regulations such as the Privacy and Electronic Communications Regulationsare 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 communicationsmanagers. The four main types are described below.

Full service - these offer a "one-stop-shop" approach to agency services, with a full range offered byone, usually large, firm. This type of agency may well be useful to you to help you control the use ofyour 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 todeal 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 arein a position to negotiate good prices because of the volume of business they place, and because theyhave 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 besure that they have the necessary expertise in all aspects that you require, as some of these agencieshave grown at the cost of the level of service they are able to offer. A careful selection process isneeded.

CommentsThis is a good answer, and describes the trends in the industry in the UK. More marks could havebeen gained by mentioning the increasing pressure on Agencies to provide measurement facilitiesthat demonstrate value for money to their clients. In addition, although brief mention of regulationis 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 legislationand 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 TradeDescriptions 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 areoffered, and the Data Protection Act governs the use of personal information held by companies, soimpacting on direct marketing activity.

Comments

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

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

c. Ethical behaviour and Corporate ResponsibilityBusiness ethics concerns the use of ethical principles within a business. In terms of marketingcommunications this means that their activities should be legal, decent, honest and truthful, and not beused to mislead.

Social responsibility encompasses a wide range of issues. It may involve employment issues, such as theuse 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 andyour approach to healthy eating may be examples of ssues that could impact either positively ornegatively on your brand, depending on the stance you take.

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

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

CommentsThis 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.



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Question 5

BackgroundThis 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 bemeasured.

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 listof 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 credentialspresentation. As you will remember, we presented to you on matters such as our track record, our keyareas 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 theprocess that we have reached today. We received your Brief six weeks ago, and we will present todayto this Brief.

CommentsThis is a very good answer, which identifies several appropriate sources of information, and thenruns through the stages in the process in the context of the question.



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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 beinvolved. The client and the agency need to be able to work closely together as a team, so their abilityto build a good relationship is essential. This is often referred to as the 'empathy' that exists betweenagency and client.

There are many other factors to consider including who is on their current client list, and whether thiswill cause a conflict of interest. If they have some of your competitors as clients, then this may causeproblems 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 youappoint needs to be able to plan and act for you in a professional manner. A small agency with veryfew 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 workwithin financial constraints. There are a number of different ways in which agencies are remuneratedfor 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.

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

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



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c. Evaluating the effectiveness of an advertising campaign

In evaluating the effectiveness of an advertising campaign, there are several methods we can use. Fourof 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 improveawareness of HIGH FIVE and its products and services by 5% by the end of December2004'. 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 resultsfor the period of the campaign and assess to what extent they increase. This could bethe result of increased sales activity however, so is difficult to positively attribute to theadvertising campaign itself.

Advertising campaigns may aim to retain customers, and rate of customer attritionbefore 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. Theextent to which the message has reached this audience can also be measured throughresearch.

CommentsThis is also a very good answer, which identifies four appropriate measures of advertisingeffectiveness. Further marks could have been gained through a more detailed explanation of eachmethod. 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.


Answer Dec 03

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