Marketing Chapter 17

Duties of public relations departments

1. Press relations 2. Product publicity 3. Corporate communication 4. Public affairs 5. Lobbying 6. Employee and investor relations 7. Crisis management

Types of advertising appeals

1. Profit 2. Health 3. Admiration 4. Fear 5. Convenience 6. Fun and Pleasure 7. Vanity and Egoism 8. Environmental Consciousness

Types of execution strategies

1. Slice of life 2. Lifestyle 3. Fantasy 4. Testimonial 5. Humorous 6. Mood/Image 7. Animated Product Symbol 8. Musical 9. Scientific 10. Demonstration

pulsing media schedule

A media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods.

advertising response function

A phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns.

Trade allowances

A price reduction offered by manufacturers to intermediaries such as wholesalers and retailers.

point of purchase display

A promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying.

sponsorship

A public relations strategy in which a company spends money to support an issue, cause or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image.

advertising campaign

A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

advertising objective

A specific communication task that a campaign should accomplish for a specified target audience during a specified period.

product placement

A strategy that involves getting one's product, service, or name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the internet; or at special events.

Competitor's customers

A type of customer. People who buy a competitor's product most or all of the time. Goal is to break loylaty, persuade to switch to your brand.

Brand switchers

A type of customer. People who buy a variety of products in the category. PErsaude customer to buy your brand more often.

Loyal customers

A type of customer. People who buy your product most often.

Price buyer

A type of customer. People who consistently buy the least expensive brand. Appeal with low prices or supply added value that makes price less important.

Frequent buyer program

A type of loyalty marketing program that rewards loyal consumers for making multiple purchases.

flighted media schedule

A type of media schedule in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times.

Continuous media schedule

A type of media schedule in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle.

sampling

Allows the customer to try a product risk free

infomercial

An alternative to a commercial spot. It is a thirty-minute or longer advertisement, which is relatively inexpensive to produce and air. Said that it is the ideal way to present complicated information to potential customers.

Cooperative advertising

An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand.

Publicity

An effort to capture media attention, often initiated through press releases that further a corporation's public relations plans.

Premium

An extra item offered to the consumer, usually in exchange for some proof that the promoted product has been purchased. These reinforce the consumer's purchase decision, increase consumption, and persuade nonusers to switch brands. Eg. McDonalds happy meal

Loyalty marketing program

Builds long-term, mutually beneficial relationshups between a company and its key customers. One of the most popular types is the frequent buyer program

Audience selectivity

The ability of an advertising medium to reach a precisely defined market

medium

The channel used to convey a message to a target market.

media mix

The combination of media to be used for a promotional campaign. Usually based on several factors such as: cost per contact, cost per click, reach, frequency, target audience considerations, flexibility of the medium, noise level, and life span of the medium

cost per click

The cost associated with a consumer clicking on a display or banner ad This option enables the marketer to pay only for "engaged" consumers

cost per contact (cost per thousand or CPM)

The cost of reaching one member of the target market. This enables an advertiser to compare the relative costs of specific media vehicles (such as TV vs radio or magazine vs. newspaper), or within a media category (People vs US weekly)

public relations

The element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance.

recency planning

An advertiser should maintain a continuous schedule over as long a period of time as possible. This is now commonly used for scheduling television advertising for frequently purchased products such as Coca-Cola and Tide detergent

Reasons manufacturers prefer rebates

1, Allow manufacturers to offer price cuts to consumers directly 2. Manufacturers use rebate programs to build customer databases 3. Most customers never bother to redeem them

Reasons new brands with smaller market shares spend more on advertising

1. Beyond a certain level of spending for advertising and sales promotion, diminishing returns set in. 2. New brands tend to require higher spending for advertising and sales promotion

Types of media schedules

1. Continuous media schedule 2. Flighted media schedule 3. Pulsing media schedule 4. Seasonal media schedule

Types of consumers

1. Loyal customers 2. Competitor's customers 3. Brand switchers 4. Price buyers

Types of product advertising

1. Pioneering 2. Competitive 3. Comparative

Coupon

A certificate that entitles consumers to an immediate price reduction when the product is purchased. They are a particularly good way to encourage product trial and repurchase.

Crisis management

A coordinated effort to handle all the effects of an unfavorable publicity or another unexpected unfavorable event.

Unique selling proposition

A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.

Institutional advertising

A form of advertising designed to enhance a company's image rather than promote a particular product.

Pioneering advertising

A form of advertising designed to stimulate primary demand for a new product or product category.

advocacy advertising

A form of advertising in which an organization expresses its views on controversial issues or responds to media attacks It is a type of institutional advertising.

product advertising

A form of advertising that tours the benefits of a specific good or service.

Seasonal media schedule

A med scheduling strategy that runs advertising only during times of the year when the product is most likely to be used.

DAGMAR Approach

Defining Advertising Goals for Measured Advertising Results It is one method for setting objectives.

media schedule

Designation of the media, the specific publications or programs, and the insertion dates of advertising.

Comparative advertising

Directly or indirectly compares two or more competing brands on one or more specific attributes Some firms use this against their own brands. Products experiencing slow growth or those entering the marketplace against strong competitors are more likely to employ comparative claims in their advertising.

Competitive advertising

Firms use this type of advertising when a product enters the growth phase of the PLC and other companies begin to enter into the marketplace. This type of advertising is designed to influence demand for a specific brand.

Advertising appeal

Identifies a reason for a person to buy a product.

Advertising

Impersonal, one way mass communication about a product or organization that is paid for by a marketer.

sales promotion

Marketing communication activities other than advertising, personal selling, and public relations, in which a short term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value

Push money

Money offered to channel intermediaries to encourage them to "push" products--that is, to encourage other members of the channel to sell the products.

Public affairs

One of the duties of public relations departments. Building and maintaining local, national, or global community relations.

Corporate communication

One of the duties of public relations departments. Creating internal and external messages to promote a positive image of the firm or institution.

Lobbying

One of the duties of public relations departments. Influencing legislators and government officials to promote or defeat legislation and regulation.

Employee and investor relations

One of the duties of public relations departments. Maintaining positive relationships with employees, shareholders, and others in the financial community.

Press relations

One of the duties of public relations departments. Placing positive, newsworthy information in the news media or in the hands of influential bloggers to attract attention to a product, a service, or a person associated with the firm or institution.

Product publicity

One of the duties of public relations departments. Publicizing specific products or services through a variety of traditional and online channels.

advergaming

Placing advertising messages in web-based, mobile, console, or handheld video games to advertise or promote a product, service, organization, or issue.

Trade sales promotion

Promotion activities directed to members of the marketing channel, such as wholesalers and retailers

Consumer sales promotion

Promotion activities targeted to the ultimate consumer market.

contests

Promotions in which participants use some skill or ability to compete for prizes

sweepstakes

Promotions in which winning depends on chance and participation is free.

Gross ratings points (GRPs)

Reach is related to this. It is a medium's industry. A higher ____ means that, in the case of a TV program, more people are tuning in and the reach is higher. As ____ increases for a particular medium, so does cost per contact.

rebate

Similar to a coupon in that it offers the purchaser a price reduction; however, because the purchaser must mail in a rebate form and usually some proof of purchase, the reward is not as immediate.

noise level

The level of distraction experienced by the target audience in a medium.

Reach

The number of target consumers exposed to a commercial at least once during a specific period, usually four weeks

Frequency

The number of times an individual is exposed to a given message during a specific period

Gamification

The process of using game mechanics and a gaming mindset to engage an audience. Increasing in importance.

media fragmentation

The proliferation of media channels is causing this, and is forcing media planners to pay as much attention to where they place their advertising as to how often the advertisement is repeated. Marketers should evaluate reach and frequency in assessing the effectiveness of advertising

Freestanding inserts

The promotional coupons inserts found in newspapers They are the traditional way of circulating printed coupons.

Media planning

The series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost effectively communicate the message to the target audience.

frequent buyer program

This is an effective tool for strengthening brand loyalty. It rewards customers for repeat purchases.