Marketing Management - Chapter 16

What are the 5 M's of advertising?

- Mission (what are our advertising objectives?) - Money (how much can we spend and how do we allocate our spending across media types?) - Message (what message should we spend?) - Media (what media should we use?) - Measurement (how should we evaluate the results?)

3 major trade promotion tools are: _______, _______, and _______

- Price Off - Allowances - Free Goods

_______ are straight discounts off the list price on each case purchased during a stated time period.

price-off

_____ is any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives

public

_______ is continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity, to help the audience learn the message more thoroughly and at a lower cost to the firm.

pulsing

The effect of exposures on audience awareness depends on ______, ________, and ________.

reach (R), frequency (F), and impact (I)

________: consists of useful, low-cost items beaing the company's name and address, and sometimes an advertising message that salespeople give to prospects and customers. ex: pens, calendars, tote bags, key chains

specialty advertising

_______: two or more brands or companies team up on coupons, refunds, and contests to increase pulling power.

tie-in promotions

______ is any paid form of nonpersonal presentation and promotion of a product by an identified sponsor.

Advertising

_____ refers to the number of times within the specified time period that an average person or household is exposed to the message.

Frequency

______ refers to the qualitative value of an exposure through a given medium ex: a food ad will have a higher ____ in Good Housekeeping compared to in Fortune magazines.

Impact

________ advertising aims to create brand awareness and knowledge of new products or new features of existing products.

Informative advertising

_______: the ask of securing editorial space, as opposed to paid space, in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization.

Marketing Public Relations (MPR)

________ advertising aims to create liking, preference, conviction, and purchase of a product or service. - some use comparative advertising, which make a comparison of the attributes of 2 or more brands

Persuasive adverting

________: displays and demonstrations that take place at the point of purchase or sale.

Point-of-Purchase (P-O-P)

________ offers to consumers of savings off the regular price of a product, flagged on the label or package. -- 2 or more of a single item sold at a reduced price -- or 2 related products banded together & sold (tooth brush & toothpaste)

Price Packs (cents-off deals)

_______ includes a variety of programs to promote or protect a company's image or individual products.

Public Relations (PR)

______: simple exaggerations that are not meant to be be believed and that are permitted by law.

Puffery

______ refers to the number of different persons or households exposed to a particular media schedule at least once during a specified time period.

Reach

______ advertisement aims to convince current purchasers that they did make the right choice. --> automobile ads often depict satisfied customers enjoying special features of their new car

Reinforcement

________ advertisement aims to stimulate repeat purchase of products and services --> Coca-Cola ads do this

Reminder

What are the 4 steps in the formula for measuring the sales impact of advertising?

Step 1: Share of Expenditures Step 2: Share of Voice Step 3: Share of Hearts Step 4: Share of Market

_______ is an amount offered in return for the retailer's agreeing to feature the manufacturer's products in some way. ex: compensations retailers for advertising the manufacturer's products or for them carrying a special product display.

allowance

_______ are "packaged environments" that create or reinforce learnings toward product purchase.

atmospheres

Advertising for Advil pain reliever shows how Advil is superior to Tylenol. This is an example of ________ advertising. a. descriptive b. persuasive c. reminder d. informative e. instructive

b.) Persuasive

Ricolini's Italian Deli has a program that gives you your 10th sandwich free. What type of consumer sales promotion is Ricolini's using? a. free trials b. frequency programs c. cross-promotions d. samples e. coupons

b.) frequency programs

________ calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity. - useful when funding is limited - useful for seasonal items

flighting

______: offers of extra cases of merchandise to intermediaries who buy a certain quantity or who feature a certain flavor or size.

free goods

What are the 5 factors to consider when setting the advertising budget?

1. Stage in the product life cycle: - new products need a larger budget - established brands require a smaller budget 2. Market share and consumer base: - companies with low market share need more $$$ to advertise - companies with high market share need less $ to advertise 3. Competition and clutter: - companies need to spend more $$$ on advertising in a market with so many competitors to stand out 4. Advertising Frequency: - refers to the number of repetitions needed to put the band's message across to consumers; this needs more $$$ 5. Product substitutability: - brands in less-differentiated or commodity-like product classes require heavy advertising to establish a unique image --> ex: soft drinks

Important roles and tasks of Marketing Public Relations (MPR):

1. launch new products 2. re-position a mature product 3. build interest in a product category 4. defend products that have encountered public problems 5. build the corporate image in a way that reflects favorably on its products

The owner of a dive shop, which provides its customers with scuba training and sells dive equipment and accessories, would like to advertise. He is considering outdoor advertising. Outdoor advertising would: a. give his ad high repeat exposure b. provide tremendous audience selectivity c. allow the dive shop to create very creative ads d. not have to contend with clutter e. provide all of the above benefits to the dive shop.

a.) give his ad high repeat exposure

1. Which of the following is NOT one of the five Ms of advertising? a. management b. mission c. money d. measurement e. media

a.) management

What is the final step in the formula for measuring the sales impact of advertising? a. share of market b. share of heart c. share of mind d. share of voice e. share of expenditures

a.) share of market

_______ is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. -- to inform, persuade, remind, or reinforce

advertising objective

_________ is a key ingredient in many marketing campaigns and consists of a diverse collection of incentive tools, mostly short term, designed to stimulate trial, or quicker or greater purchase, of particular products or services by consumers or the trade. a. Advertising b. Public relations c. Sales promotion d. Personal selling e. Market segmentation

c.) sales promotion

_______ provide a price reduction after purchase rather than at the retail shop. Consumer sends a specified "proof of purchase" to the manufacturer who "refunds" part of the purchase price by mail

cash refund offers (rebates)

________ seeks to determine whether an ad is communicating effectively. Also called copy testing

communication-effect research

________ calls for spending all the advertising dollars in a single period, which makes sense for products with one selling season or related holiday.

concentration

_______ means exposures appear evenly throughout a given period.

continuity

________: use one brand to advertise another noncompeting brand

cross promotions

Hospitals are engaged in intense competition to fill their maternity beds. What type of advertising would hospitals most likely use for advertising their new amenities like Jacuzzis in every room, filet mignon or lobster on the menu, and afternoon teas for the new mothers and their families? a. descriptive b. persuasive c. reminder d. informative e. instructive

d.) Informative

Zhao is advertising her import-export business and wants to find the most cost-effective way of delivering the desired number and type of exposures to the target audience. Zhao is considering her __________. a. marketing plan b. creative development and execution c. plan of attack d. media selection e. effective appeal

d.) Media selection

Tom's used _____________ when it placed a coupon for $1.00 off any 12-pack of soda on packages of its Hot Fries snacks. a. a price pack b. a prize promotion c. a point-of-purchase promotion d. a cross-promotion e. promotion bundling

d.) a cross-promotion

The media-timing pattern in which advertising is run evenly throughout a given period is called _____________. a. flighting b. concentration c. pulsing d. bursting e. continuity

e.) continuity

An advertiser on a limited budget that schedules media so that a heavy dose of advertising is followed by a period of no advertising is using a pattern called _____________. a. bursting b. continuity c. pulsing d. concentration e. flighting

e.) flighting

Daisy has formed a company that markets ad space on city parking meters. Her first clients are antacids, a dog-walking service, and the local museum's new exhibit. This is an example of what type of alternate advertising form? a. point-of-purchase advertising b. anti-zipping/zapping advertising c. increased intensity advertising d. captured attention advertising e. place advertising

e.) place advertising

The marketer of Squall cigars had a promotion in which customers could send in three proofs of purchase and $29 in exchange for a very nice windproof and waterproof jacket that sported an embroidered Squall logo. The jacket had an actual market value of about $70. This is an example of what type of consumer promotion? a. coupons b. frequency programs c. prizes d. patronage awards e. premiums

e.) premiums

The _________ decision relates to seasons and the business cycle. Firms can vary their advertising expenditures to follow the seasonal pattern, to oppose the seasonal pattern, or to be constant throughout the year.

macroscheduling

The _______ decision calls for allocating advertising expenditures within a short period to obtain maximum impact. Advertising messages can be concentrated, dispersed continuously throughout the month, or dispersed intermittently.

microscheduling

______: values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors.

patronage awards

_____ advertising, or out-of-home advertising, is a broad category including many creative and unexpected forms to grab consumer's attention. --> billboards, public space (such as movie screens and hotel elevators), product placement (in movies and television), and point of purchase

place

_______: merchandise offered at a low cost or free as an incentive to purchase a particular product.

premiums (gifts)