Marketing Exam #2

Hierachy of effects

a model predicted on the on the idea that marcom elements move people from an initial stage of unawareness about a product/brand to a final stage of purchasing that product/brand

intellectual property

a number of different author or company creations (e.g., a new brand name and/or logo) for which a set of exclusive rights are recognized under law. This includes patents, copyrights, and trademarks.

advertising

a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future

advertising strategy

a plan of action of how a brand is to be advertised, involves the development of an advertising message that communicates the brand's value proposition - that is, its primary benefit or how it can solve the consumer's problem

The CAN Elements

Connectedness Appropriateness Novelty

Intense and prominent cues

Cues that are louder, more colorful, bigger, brighter, and so on, thereby increasing the probability of attracting attention

Connectedness

addresses whether an advertisement reflects empathy, creates a bond, and is relevant with what the target audience's basic needs and wants as they relate to making a brand-choice decision in a product category

objective and task method

The most sensible and defendable advertising budget method where advertising planners specify clear objectives for the advertising, identify the tasks the advertising must perform to reach these objectives and then set the budget accordingly

Laddering

a marketing research technique that has been developed to identify linkages between attributes, consequences, and values; involves in-depth, one-on-one interviews that typically last 30 minutes to more than one hour

Elasticity

a measure of how responsive demand for a brand is to changes in marketing variables such as price and advertising

beliefs

consumer's subjective probability assessments, or expectations, regarding the likelihood that performing a certain act will lead to a certain outcome

advertising plan

provides the framework for the systematic execution of advertising strategies; evaluates a brand's advertising history, proposes where the next period's advertising should head, and justifies the proposed strategy for maintaining or improving a brand's competitive situation

likelihood continuum

ranging from a low likelihood at one end to a high likelihood at the other

Credibility

sticky advertisements are believable. They have a sense of authority and provide reasons why they should be accepted as fact

simplicity

sticky advertisements are both simple and profound. An advertisement can be said to be simple when it represents the brand's core idea or key positioning statement

Unexpectedness

sticky advertisements generate interest and curiosity when they deviate from audience members' expectations

Concreteness

sticky ideas possess concrete images as compared to abstract representations

Storytelling

the sixth element of stick messages is telling stories. By definition stories have plots, characters, and settings - all features of which are contained in touching ad campaign

Brand adoption process

the three main stages through which an individual becomes an adopter of a new brand. These stages are the awareness, trier, and repeater classes, with the term referring to a group or category, of consumers who occupy the same stage. The blocks surrounding the circles are mostly Marcom tools that play a role in moving consumers from initial awareness, through trial, and ultimately becoming repeat purchasers.

evaluations

the value, or importance, that consumers attach to consumption outcomes

Objectives and Marcom tools most suitable for accomplishing the objective

- facilitate the successful introduction of new brands (brand naming and packaging, advertising, word-of-mouth buzz generation, sales promotions, point-of-purchase (POP) displays, and social media). - Build sales of existing brands by increasing the frequency of use, the variety of uses, and other quantity purchased (advertising and sales promotions) - Inform the trade (wholesalers, agents or brokers, and retailers) and consumers about brand improvements (personal selling and trade-oriented sales promotions) - Create brand awareness (advertising, social media, packaging, and POP messages) - Enhance a brand's image (brand naming and packaging, advertising, social media, event sponsorship, case-oriented marketing, and marketing-oriented public relations (PR)) - Generate sales leads (advertising and personal selling) - Persuade the trade to handle the manufacturer's brands (trade-oriented sales promotion and personal selling) - Stimulate point-of-purchase sales (brand naming and packaging, POP messages, and external store signage) - Increase customer loyalty (advertising, social media, and sales promotions) - Improve corporate relations with special interest groups (marketing-oriented PR) - Offset bad publicity about a brand or generate good publicity (marketing-oriented PR and social media) - Counter competitors' communications efforts (advertising and sales promotions) - Provide customers with reasons for buying immediately instead of delaying a purchase (advertising, social media, and sales promotions)

Agency Compensation

Commission, fee-based, combination or other.

Ten Universal Values

1. Self-direction 2. Stimulation 3. Hedonism 4. Achievement 5. Power 6. Security 7. Conformity 8. Tradition 9. Benevolence 10. Universalism

competitive parity method

A budgeting method that sets the advertising budget by examining what competitors are doing. Also called the match-competitors method

The Brand-Naming Process

1. Specify Objectives for the Brand Name - As with all managerial decisions, the initial step is to identify the objectives to be accomplished. Most managers are concerned with selecting a name that will successfully position the brand in the minds of the target audience, provide an appropriate image for the brand, and distinguish it from competitive brands 2. Create Candidate Brand Names - Brand-name candidates are often selected using creative-thinking exercises and brainstorming sessions. Companies frequently use the services of naming consultants to generate candidate names. 3. Evaluate Candidate Names - The many names generated are evaluated using criteria such as relevance to the product category, favorability of associations conjured up by the name, and overall appeal. Product and brand managers consider it critical that names be easily recognized and recalled. 4. Choose a Brand Name - Managers use the criteria noted in steps 1 and 3 to select a final name from the candidate field. In many firms, this choice is a matter of subjective judgment rather than the product or rigorous market research. 5. Register a Trademark - Most companies apply for trademark registration. Some companies submit only a single name for registration whereas others submit multiple name (5 on average)

A Five-Step Program

1. Specify the key fact from the consumer's point of view 2. State the primary problem from the marketer's point of view 3. State the communication objective 4. Implement the creative message strategy (creative platform) 5. Establish mandatory requirements

The Objective-and-Task Budgeting Method

1. The first step is to establish specific marketing objectives that need to be accomplished, such as sales volume, market share, and profit contribution 2. The second step in implementing the objective-and-task method is to assess the communication functions that must be performed to accomplish the overall marketing objectives 3. The third step is to determine advertising's role in the total communication mix in performing the functions established in step 2. 4. The fourth step is to establish specific advertising goals in terms of the levels of measurable communication response required to achieve marketing objectives 5. The final step is to establish the budget based on estimates of expenditures required to accomplish the advertising goals

All marketing communications should be:

1. directed to a particular TARGET MARKET 2. clearly POSITIONED 3. created to achieve a SPECIFIC OBJECTIVE 4. undertaken to accomplish the objective within BUDGET CONSTRAINT

Repeater Class

A function of five primary forces: personal selling, advertising and social media, price, distribution, and product satisfaction

integrated information response model

A model that takes its name from the idea that consumers integrate information from two sources—advertising and direct product usage experience—in forming attitudes and purchase intentions toward products and brands.

Sticky Ads

Ads for which the audience comprehends the advertiser's intended message; they are remembered, and they change the target audience's brand-related opinions or behaviors

affordability method

An advertising budgeting method that sets the budget by spending on advertising those funds that remain after budgeting for everything else

complexity

An innovation's degree of perceived difficulty - the more difficult an innovation is to understand or use, the slower the rate of adoption

Brand Logo

As part of a brand's "trade dress" (name, design, shape, colors, sounds, etc.) associated with a brand is a graphic design element.

transformational advertising

Brand image advertising that associates the experience of using an advertised brand with the unique set of psychological characteristics that typically would not be associated with the brand experience to the same degree without exposure to the advertisement

psychological reactance

Helps explain why scarcity works. a theory that suggests that people react against any efforts to reduce their freedom choice

Advertising Functions

Informing Influencing Reminding and Increasing Salience Adding Value - There are 3 basic ways by which companies can add value to their offerings: innovating, improving quality, and altering consumer perceptions Assisting company efforts

Goals

Objectives become goals when time and magnitude are included. Objectives provide the foundation for all remaining materials

involuntary attention

Occurs automatically or involuntarily due to an intruding stimulus (e.g. due to the use of attention gaining techniques) rather than by the consumer's inherent interest in the topic

trier class

The group of consumers who actually try a new product; the second step in which an individual becomes a new brand consumer

The Integrated Information Response Model

Pattern 1: Cognition --> Affect --> Commitment - The pattern of cognition to affect to commitment is the traditional (high involvement) hierarchy-of-effects model. This pattern is applicable when consumers fully accept advertising messages (under high involvement), form attitudes toward the advertised brand, and become firmly committed to purchasing the advertised product Pattern 2: Cognition --> Trial --> Affect - This sequence from (minimal) cognition to trial to affect to commitment. This response pattern typifies low-involvement learning. When consumers are passive learners of information (as typically the case with most products), higher-order affects results only after one has acquired direct (or first-hand) experience or using a Pattern 3: Cognition --> Trial --> Trial --> Trial...

Emotionality

People care about ideas that generate emotions and tap into feelings

SUCCES Model

Simplicity Unexpectedness Concreteness Credibility Emotionality Storytelling SUM UP: Have a lasting imapact

resonant advertising

Symbolic or experiential-oriented, it extends from psychographic research and structures an advertising campaign to pattern the prevailing lifestyle orientation of the intended market segment

compatibility

The degree to which the innovation is perceived to fit into a person's way of doing things, such as consumers' needs, personal values, beliefs, and past consumption practices.

Observability

The degree to which the user of a new brand or other people can observe the positive effects of new-product usage

commercial specifics

The elements in the execution of the advertisement such as the spokesperson or endorser, the music, the overall situation, and characters

Trialability

The extent to which an innovation can be used on a limited basis prior to making a full-blown commitment

peripheral cues

The presence of cues that are peripheral to the primary message arguments, including such elements as background music, attractive sources, scenery and graphics.

Share of Voice (SOV)

The ratio of a brand's advertising expenditures to total category advertising expenditures

Share of Market (SOM)

The ratio of one brand's revenue to total category revenue

sales-to-advertising response function

The relationship between money invested in advertising and the response, or output, of that investment in terms of revenue generated.

preference

a behavioral tendency that exhibits itself in how a person acts toward an object

slogan

a catch phrase or small group of words that are combined in a special way to identify a product or company

percentage of sales method

a company sets a brand's advertising budget by simply establishing the budget as a fixed percentage of past (e.g., last year or anticipated sales volume (e.g., next year's) sales volume

Trademark

a distinctive sign, or an indicator used by an individual, business organization, or other legal entity to identify goods or services to consumers with which the trademark appears; and to distinguish its goods and services from the competition.

attitude

a general and somewhat enduring positive or negative feeling toward, or evaluative judgment of, some person, object or issue

preemptive style

a second category-dominance technique it is employed when advertiser makes a generic-type claim but does so with an assertion of superiority

Copyright

a set of exclusive rights, not for an actual idea or invention, but the form in which it is expressed and it should be in a tangible medium

brand image style

a symbolic or experiential orientation that involves psychological rather than physical differentiation

marketing plan

a written document that specifies the marketing objectives and goals, strategies, programs, budgets, and controls for a company and its brands

Corporate Image Advertising

advertising that attempts to (1) increase a firm's name recognition (2) establish goodwill for the company and its products, (3) identify itself with some meaningful and socially acceptable activity

generic style

an ad strategy that uses a straightforward product claim with no assertion of brand superiority

unique selling proposition (USP)

an advertiser makes a superiority claim based on a unique product attribute that represents a meaningful, distinctive consumer benefit.

vicarious learning (modeling)

an attempt to change preferences and behavior by having an individual observe the actions of others and the consequences of those behaviors.

Outcomes

aspects of product ownership that the consumer either desires to obtain or to avoid

motivation, ability, opportunity (MAO)

determine each individuals elaboration likelihood for a particular message

values

enduring beliefs people hold regarding what is important in life

Kiasu

fear of losing out

attributes

features or aspects of the advertised product or brand

Marcom Objectives

general outcomes that the various marcom elements try to achieve individually or collectively

What Constitutes a Good Brand Name?

is Requirement #1: Distinguish the Brand from Competitive Offerings - It is desirable for a brand to have a unique identity, something that clearly differentiates it from competitive brands. Failure to distinguish a brand from competitive offerings creates confusion and increases the chances that consumers will not remember the name or mistakenly select another brand. Requirement #2: Facilitate Consumer Learning of Brand Associations - When discussing customer-based brand equity, a brand's image represents the associations that are activated in memory when people think about a particular brand. It is desirable that Marcom efforts create associations that are favorable, strong, and perhaps unique. Brand names serve as memory cues that facilitate recall of product attributes and benefits and also predict product performance. Requirement #3 Achieve Compatibility with a Brand's Desired Image and with Its Product Design or Packaging - It is important that the name chosen for a brand be compatible with a brand's desired image and also with its design or packaging Requirement #4 Be Memorable and Easy to Pronounce - A good brand name is easy to remember and pronounce. Although shortness is not an essential ingredient for a good name, many brand names are short, one-word names that facilitate ease of memory and pronunciation.

low involvement hierarchy

learn, do, feel

elaboration

mental activity in response to a message such as an advertisement

novel messages

messages that are unusual, distinctive, unpredictable, and somewhat unexpected; such stimuli tend to produce greater attention than those that are familiar and routine

Brand

name, term, symbol, design, or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competition

shaping

one application by which marketers attempt to shape certain behaviors through a process of changing preceding conditions and behaviors

patent

permits an author or a firm to secure a monopoly or exclusive rights to the use of an invention for a period of 20 years, which is generally not renewable

Elaboration Likelihood

represents the chance that a message receiver will elaborate on a message by thinking about and reacting to it and comparing to with his or her preexisting thoughts and beliefs regarding the product category, the advertised brand, and perhaps competitive brands.

message-based persuasion

results from processing message arguments

high involvement hierarchy (standard learning hierarchy)

shows a clear progression under high involvement from initial cognition to affect to conation. An individual becomes aware of an object, such as a new brand, then acquires information and forms beliefs about the brand's ability

attitudinal response (feelings)

television commercials and online videos (e.g., from YouTube, Tumblr) can evoke a variety of positive and negative feelings. Positive feelings might include reactions such as pride, excitement, warmth, tenderness, amazement, confidence, humor, and so on. Negative feelings might might include fear, boredom, sadness, anger, disgust, and irritation.

trade dress

the appearance and image of the product, including its packaging, labeling, shape, color, sounds, design, lettering, and style - all associated with the brand

creative brief

the blueprint or guide that links the advertising strategy with the execution of the ad campaign

relative advantage

the degree to which consumers perceive a new brand as being better than existing alternatives with respect to specific attributes or benefits

consequences

the desirable or undesirable results from consuming a particular product or brand

Appropriateness

the extent to which the message is on target for delivering the brand's relative strengths and weakness vis-a-vis competitive brands

specific sales message

the last or highest level on an impression viewers retain in the specific sales message

Generics

the major selling claim associated with the advertised brand

opportunity to process

the matter of whether it is physically possible for a person to process a message

theory of reasoned action (TORA)

this theory proposes that all forms of planned and reasoned behavior (versus unplanned, spontaneous, impulsive behavior) have two primary determinants: attitudes and normative influences.

novel ads

unique, fresh, and unexpected

emotion-based persuasion

when a consumer is highly involved in a message such as a TV commercial, there is a tendency to relate aspects of the message to his or her personal situation

motivation to process

when a message relates to a person's present consumption-related goals and needs and is thus relevant to that individual

support argument

when a receiver agrees with a message argument

central route

when a receiver's motivation, ability, and opportunity to process the message arguments are high (and therefore one's elaboration likelihood is high), the receiver will focus predominately on message arguments rather than peripheral cues leading to enduring attitude change

peripheral route

when a receiver's motivation, ability, or opportunity to process the message arguments are low (and therefore one's elaboration likelihood is low), the receiver will not focus predominately on the message arguments. Rather, the focus may be on a peripheral cue (background music, attractive sources, scenery) leading to temporary attitude change.

Novelty

when an ad differs from the customer's expectations of a typical ad for a brand in a particular product category

Counterargument

when the receiver challenges a message claim

ability to process

whether a person is familiar with message claims and has the necessary skills (e.g., literacy, knowledge) to help comprehend them

voluntary attention

willful or prior attention to a message due to its perceived relevance pertinent to customers' needs (e.g., intent to purchase an advertised product)