MKTG 330 Exam 4

Anti-rumor campaign elements

-Focus on specific points in the rumor that need to be refuted -Emphasize that the conspiracy or rumor is untrue and unfair -Pick appropriate media and vehicles for delivering message -Select a credible spokesperson to deliver the message on the company's behalf of Mouth influence Strong and weak ties Opinion leaders

POP's influence on consumer behavior

-Informing (signs, posters, displays, in-store advertisements, etc.) -Reminding ( reminding them about specific aspects of the product that they heard before from broadcasts, prints, online, etc.) -Encouraging (encourage impulse buying) -Merchandising (efficient use of retail space)

Sponsorship agreement factors

-The sponsor should try to obtain some exclusivity, such that the competitor does not share in the same benefits of the event. -A granting of rights should be clear as to what can and cannot be done with the sponsor's brand -Benefits to the sponsor must be identified -The sponsor needs to control the licensing of their trademarks associated with the event. -Options to renew, escape clauses, insurance, payment terms, and publicity all should be considered with the sponsorship agreement.

price-offs are effective when marketers objective is:

-To reward present brand users. -To get consumers to purchase larger quantities of a brand than they usually do. -To establish a repeat-purchase pattern after initial trial. -To ensure that promotional dollars do, in fact, reach consumers -To obtain off-shelf display space when such allowances are offered to retailers -To provide the sales force with an incentive to obtain retailer support.

The VIEW model in evaluating packaging

-Visibility; attract attention to the point of purchase. -Information; ingredients, usage, instructions, benefits, etc. -Emotional appeal; ability to evoke a desired feeling or mood. -Workability; does the package protect the product contents? Easy storage? Simplify usage of the product? Environmentally friendly?

point-of-purchase (POP) couponing

-instantly redeemable coupons -shelf-delivered coupons -scanner delivered coupons -mobile phone coupons

Utilitarian Rewards

-obtaining monetary savings -reducing search and decision costs -obtaining improved product quality made possible by a price reduction that allows consumers to buy superior brands they might not otherwise purchase

hedonic reward

-sense of being a wise shopper -achieve a need for stimulation and variety -obtain entertainment value -being viewed as "tech-savvy" -socializing with others on a deal

Generating purchase trial and retrial

A brand manager employs these promotional tools to prompt nonusers to try a brand for the first time or to encourage retrial from prior users who have not purchased the brand for perhaps extended periods. (example: samples and coupons)

customized events

Brand managers sometimes choose to customize their own events rather than sponsor events another organization conducts for the following reasons: -A customized event provides a brand total control over the event -A specially designed event could be more effective but less costly than a pre existing event.

Encouraging repeat purchases:

Managers use promotions to hold onto their current customer base by rewarding them for continuing to purchase the promoted brand or loading them with a stockpile or manufacturer's brand so they do not switch to another brand in the short run. (usually are located in, on, or near the product)

Phantom Discounts

Manufacturers are using rebates more now than ever because many consumers never bother to redeem them. Thus, when using rebates, manufacturers stimulate consumer purchases of rebated items without having to pay the rebate amount because most consumers do not mail in rebate forms.

Rebate Fraud

Manufacturers commit rebate fraud when promoting rebate offers, but then fail to fulfill them when consumers submit rebate slips with accompanying proof of purchase. Retailers sometimes advertise attractive rebates, but then do not disclose that the rebate will not arrive for several months, or that the consumer must purchase another item to be eligible for the rebate.

Online and social group coupons:

Many online sites distribute coupons. Disadvantages: potential for fraud.

crisis management

Quick and positive responses to negative publicity are important. When done effectively, reactive MPR can virtually save a brand or a company. Steps that companies are encouraged to take when faced with a crisis: -Be open with customers, media, regulators, and shareholders -Follow through on promises and explain your progress -Halt all marketing campaigns until is resolved -If you advertise, do so carefully -Put a face on your company -Be the first with the news

Estimating return on investment

ROI is a tool that can be used to assess whether an investment in a sampling program is cost justified

Continuity Promotions

Rewarding consumers' repeat purchasing of a particular brand by awarding points leading to reduced prices or free merchandise. Also referred to as reward, loyalty, or point programs.

Direct Mail Sampling

Samples are mailed to households targeted by demographic characteristics or in terms of geodemographics

High traffic locations and events

Shopping centers, movie theaters, airports, and special events

targeting sample recipients

Targeting rather than mass distributing to avoid wasting resources

event sponsorship

a form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social, or other type of high interest public point-of-purchase activity.

price-offs

a reduction in a brand's regular price. It is clearly labeled on the package

Major Sampling Practices

a. Targeting sample recipients b. Using creative distribution methods c. Estimating return on investment

door-to-door sampling

allows considerable targeting, lower costs, and short lead times

commercial rumors

are widely circulated but unverified propositions about a product, brand, company, store, or other commercial target.

Shelf-delivered coupons

attached to the shelf alongside coupon-sponsoring brands. Consumers interested in purchasing a particular brand can tear a coupon and redeem it when checking out.

immediate rewards

one that delivers monetary savings or some other form of benefit as soon as the consumer performs a marketer-specified behavior. (Example: immediate pleasure you get from trying a free sampled food in a supermarket) consumers are more responsive to this type of reward

Point of purchase communications

point of purchase, or store environment, provides brand marketers with a final opportunity to affect consumer behavior. Includes the following: ● Permanent displays ● Semi-permanent displays ● In-store media

Couponing

promotional device that rewards consumers for purchasing the coupon-offering brand by providing cents-off or dollars-off savings.

Rebate

refers to a cash reimbursement for purchasing a durable good, they are often delayed rather than instant (example: 3,000 refund on a new car)

Refund

refers to the practice in which manufacturers give cash discounts or reimbursements to consumers who submit proofs of purchase for CPGs. (example: $5 refund for ten proofs of purchase for Minute Maid orange juice)

Mobile Phone Coupons

The use of digital coupons to aid grocery shopping is of keen interest to 46% of consumers

(premium) Free with purchase premiums

This form represents a delayed reward to consumers that is primarily designed to generate trial purchase

delayed rewards

Those that follow the behavior by a period of days, weeks, or even longer. (Example: you may have to wait 6 to 8 weeks before a mail-in premium item can be enjoyed)

Functions of on-premise business signs (ABC)

-Attract new customers -Brand the retail site in consumers' minds -Create impulse buying decisions

When should sampling be used?

-Brand is demonstrably superior/has distinct relative advantages -Concept is difficult to communicate by advertising alone -Can afford to generate consumer trial quickly

Functions of Packaging

-Draw attention to a brand -Break through competitive clutter at the point of purchase -Justify price and value to the consumer -Signify brand features and benefits -Convey emotionality -Motivate consumers' brand choices

on-premise business signs

(signs located on or near retail stores) considered the most cost effective and efficient form of communication available to retail business.

Strengths of billboard advertising

- Broad reach - High frequency - Geographic flexibility - Low cost per thousand - Substantial brand identification - Excellent last reminder before purchasing

Limitations of billboard advertising

- Demographic non-selectivity - Short exposure time - Environmental concerns

factors to consider in choosing events

1. Image matchup - Is the event consistent with the brand image and will it benefit the image? 2. Target audience fit - Does the event offer a strong likelihood of reaching the desired target audience? 3. Sponsor misidentification- Is the event one that the competition has previously sponsored, and therefore is there a risk of confusing the target audience as to the sponsor's identity? 4. Clutter- is the event sponsoring too many brands? Will you stand out? 5. Complement other marcom elements - Does the event complement existing sponsorships and fit with other marcom programs for the brand? 6. Economic viability- Can you afford the fees to properly support the sponsorsh

Premiums

Articles of merchandise or services manufacturers offer as a form of gift to induce action on the part of consumers and possibly also retailers and the sales force.

(premium) self-liquidating offers

Consumers mail in a stipulated number of proofs of purchase along with sufficient money to cover the manufacturer's purchasing, handling, and mailing costs of the premium item. This way, the given premium item will be cost free to the retailer or self liquidating.

native advertising

Content that is created or sponsored by a brand that blends in with surrounding editorial content.

FSIs and other media delivered coupons

Distributed through sunday newspapers and magazines.

scanner delivered coupons

Example: Nelson Catalina; once the scanner records that the shopper has purchased a competitor's brand, a coupon from the participating manufacturer is dispensed. (targeting competitor's customers)

Brand Management objectives of Sales Promotion

Generating purchase trial and retrial Encouraging repeat purchases Reinforcing brand images

In and on pack coupons

Included either inside a product's package or as part of the package's exterior. (don't confuse it with peelable or instant coupon as it cannot be redeemed in store)

Instantly redeemable coupons

Instantly redeemable coupons are peelable from the package and are designed to be removed by the consumer and redeemed at checkout when purchasing the brand carrying the coupon. (avoids delay)

online sampling

Interested customers register online to receive free samples for brands that interest them. (very expensive: three times as expensive as in store sampling)

mail delivered coupons

Marketers use mail delivered coupons to introduce new or improved products. Disadvantages: relatively expensive compared to other coupon distribution methods

in- and on- pack premiums

Offering a free item inside or attached to a package or make the package itself the premium item. (example: colgate toothpaste attaching a free colgate toothbrush to the package)

(premium) mail in and online offers

Premiums in which consumers receive a free item from the sponsoring manufacturer in the mail or online in return for submitting a required number of proofs of purchases or taking some action related to the brand. (example: Nestle offering a free zip up hoodie to consumers who purchase chocolate milk after showing proof of purchase)

content marketing

Producing, curating, and sharing content that is based on customers' needs and delivers visible value. (example: "sponsored" videos)

Games

Provide consumers with an instant reward and, for marketers, serve primarily to encourage repeat purchasing from existing brand users. Promotional games are capable of creating excitement, stimulating brand interest, and reinforcing brand loyalty.

in-store sampling

Providing product samples in a place where they can instantly buy the product.

Overlay promotions

The simultaneous use of two or more sales promotion techniques.

Reinforcing brand images

The careful selection of the right premium object or appropriate sweepstakes prize can serve to bolster a brand's image.

Contests

The participant must act according to the rules of the contest and may or may not be required to submit proofs of purchase. Sometimes, some "skill" or effort is required on the part of the participants.

Intra-company tie-in promotions

The simultaneous promotion between different departments or products in the same company.

Inter-company tie-in promotions

The simultaneous promotion of different companies.

Sweepstakes

Winners are determined purely by basis of chance. Therefore, proof of purchase cannot be required as a condition for entry.

Reactive MPR

by comparison, describes the conduct of PR in response to outside influences. It is undertaken as a result of external pressures and challenges brought by competitive actions, shifts in consumer attitudes, or other external influences.

unplanned purchases

many product and brand choice decisions are made while the consumer is in the store rather than beforehand.

contamination rumors

deal with undesirable or harmful product or store features.

Using creative distribution methods

example: pop-up shops by Cetaphil skin care giving potential customers free hand massages and invited to spin a wheel of fortune to take their chance of winning Cetaphil products) -more interactive

Bonus Packs

extra quantities of a product that a company makes available to consumers at the regular price. (example: Listerine mouthwash provided consumers with a free 250 mL bottle along with the purchase of 1.7 Liter bottle)

brand lift index

gauges the average increase of in store purchase decisions when POP materials are present versus when they are not. (the term lift is used in reference to lifting or increasing sales in the presence of POP materials)

Sampling

includes any method used to deliver an actual or trial sized product to consumers. generates trials and leverages trade support

Word of Mouth

informal communication among consumers about products and services.

Sponsorship Marketing

investments in events or causes for the purpose of achieving corporate or marketing objectives.

conspiracy rumors

involve supposed company policies or practices that are threatening or ideologically undesirable to consumers.

Conspicuity of business signs

involves those signage characteristics that enable walkers or drivers and their passengers to distinguish a sign from its surrounding environment. This requires it to be clear, concise, legible, and distinguishable from competing signs.

Proactive MPR

is a tool for communicating a brand's merits and typically is used in conjunction with other marcom tools such as advertising and sales promotions. Objectives: ● Facilitating brand awareness by increasing recognition and recall of publicity releases ● Augmenting brand image by forging in customers' minds strong and favorable associations with the brand Forms: ● Product releases ● Executive statement releases ● Feature articles

How to prevent Word of Mouth

show customers that they are responsive to legitimate complaints

ambushing

takes place when companies that are not official sponsors of an event undertake marketing efforts to convey the impression that they are.

buzz creation

the systematic and organized effort to encourage people to talk favorably about a particular brand and recommend its usage to others who are part of the social network.

viral marketing

the techniques that use social media networks to increase brand awareness or other marketing objectives, through a self replicating, viral process, similar to the spread of a virus.

near-pack premiums

this type of premium rewards brand's loyal customers or encourages trial from purchasers of competitive brands who are willing to switch in order to save money. (Example: Buy X, get 1 free)

on-pack sampling

using the package of another product to serve as the sample carrier.

Consumer rewards from sales promotion

utilitarian vs hedonic benefits immediate vs delayed rewards

Newspapers and magazines sampling

which represents cost-efficient forms of sampling for reaching a mass audience