Answer to Question 1
C
Answer to Question 2
1 . Reduced dependence on mass media advertising. Many brand managers and their agencies have reduced the role of TV advertising, partially due to the fact that it is not as effective or cost efficient as it once was due to audience fragmentation and the availability of many alternative entertainment options. Moreover, other advertising and non-advertising communication tools often are superior to TV in achieving brand managers' objectives.
2 . Increased reliance on highly targeted communication methods. Pinpointed communications are often less expensive and more effective than mass media advertising. Targeting messages is especially feasible today with the large, up-to-date databases of customers that are maintained by many organizations.
3 . Heightened demands on suppliers. Now it is increasingly important for suppliers to offer multiple services, which explains why some major advertising agencies have expanded their offerings beyond just advertising services to include sales promotion assistance, public relations, direct marketing, and event marketing support.
4 . Increased efforts to assess communications' return on investment. Systematic efforts are demanded to determine whether communication programs yield a reasonable return on their investment. The investment in marketing communications must be assessed in terms of the profit-to-investment ratio to determine whether changes are needed or whether other forms of investment might be more profitable.