Principles of Marketing Ch.12 Book/Vocab Notes

Define Advertising

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

What is another name for creative concept?

Big idea

What does Advertising include?

Broadcast, print, itnernet, mobile, outdoor, and other forms.

Define Public relations (PR)

Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

Define Integrated marketing communications (IMC)

Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

What does Direct Marketing include?

Catalogs, direct-response TV, kiosks, the Internet, mobile marketing, and more.

Define Objective-and-task method

Developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.

Define Direct Marketing

Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

What does Sales promotion include?

Discounts, coupons, displays, and demonstrations

What are the drawbacks of Standardization?

Ignores the fact that country markets differ in their cultures, demographics, and economic conditions.

(Graph Notecard) Integrated Marketing Communcations

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What are media multitaskers?

People who absorb more than one medium at a time.

Define Personal selling

Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships

What does Public relations (PR) include?

Press releases, sponsorships, events, and web pages.

What is the aim of Advertainment?

TO make ads themselves so entertaining, or so useful, that people want to watch them.

Define Execution style

The approach, style, tone, words, and format used for executing (properly conveying) an advertising message.

Define Creative concept

The compelling big idea that will bring the advertising message strategy to life in a distinctive and memorable way

Define Advertising budget

The dollars and other resources allocated to a product or a company advertising program.

LO 12-2 (Summary and Review) Discuss the changing communications landscape and the need for integrated marketing communications

The explosive developments in communications technology and changes in marketer and customer communications strategies have had a dramatic impact on marketing communications. Advertisers are now adding a broad selection of more-specialized and highly targeted media--including digital media--to reach smaller customer segments with more personalized, interactive messages. As they adopt richer but more fragmented media and promotion mixes to reach their diverse markets, they risk creating a communications hodgepodge for consumers. To prevent this, companies are adopting the concept of integrated marketing communications (IMC). Guided by an overall IMC strategy, the company works out the roles that the various promotional tools will play and the extent to which each will be used. It carefully coordinates the promotional activities and the timing of when major campaigns take place.

Define message strategy

The general message that will be communicated to consumers.

What are the three characteristics Advertising appeals should have?

-They should be meaningful, pointing out benefits that make the product more desirable or interesting to consumers -Appeals must be believable. Consumers must believe that the product or service will deliver the promised benefits. -Appeals should be distinctive

Advertising objectives can be classified by their primary purpose of....

-To inform -To persuade -To remind

Define Pull strategy

A promotion strategy in which a company spends a lot of money on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that pulls the product through the channel.

Define Push Strategy

A promotion strategy in which the sales force and trade promotion are used to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.

Define Advertising objective

A specific communication task to be accomplished with a specific target audience during a specific period of time

Define Madison & Vine

A term that has come to represent that merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages.

Define Return on Advertising Investment

The net return on advertising investment divided by the costs of the advertising investment.

Define Advertising strategy

The plan by which the company accomplishes its advertising objectives. It consists of two major elements: creating advertising messages and selecting advertising media.

What is media impact?

The qualitative value of message exposure through a given medium.

Define Promotion mix (or marketing communications mix)

The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.

Define Advertising media

The vehicles through which advertising messages are delivered to their intended audiences.

True or False: Advertising messages are planned and implemented by the advertising department or an ad agency. Personal selling communications are developed by sales management. Other company specialists are responsible for PR, sales promotion events, internet or social network efforts, and other forms of marketing communication. This may result in a blurred vision due to consumers not separating their communication tools.

True

True or False: Advertising's goal is to help move consumers through the buying process.

True

True or False: Although the promotion mix is the company's primary communication activity, the entire marketing mix--promotion, as well as product, price, and place-- must be coordinated for greatest impact

True

True or False: Business to Business marketers tend to push more, putting more of their funds into personal selling, followed by sales promotion, advertising, and PR. Business to consumer companies usually pull more, putting more of their funds into advertising, followed by sales promotion, personal selling, and then PR.

True

True or False: Companies are doing less broadcasting and more narrowcasting

True

True or False: Countries differ in media costs and availability and advertising practices.

True

True or False: Direct Marketing is less public: The message is normally directed to a specific person. Direct marketing is immediate and customized: Messages can be prepared very quickly and can be tailored to appeal to specific consumers. Finally, direct marketing is interactive: it allows a dialogue between the marketing team and the consumer, and messages can be altered depending on the consumer's response. Direct Marketing is well suited to highly targeted marketing efforts and building one-to one customer relationships.

True

True or False: Each brand contract will deliver a message-whether good, bad, or indifferent. The company's goal should be to deliver a consistent and positive message to each contract.

True

True or False: Informative advertising is used heavily when introducing a new-product category. In this case, its primary objective is to build primary demand

True

True or False: Marketers reach smaller consumer segments in interactive and engaging ways

True

True or False: Measuring the communication effects of an ad or ad campaign tells whether the ads and media are communicating the ad message well.

True

True or False: Mix of traditional mass media and a wide array of online, mobile, and social media.

True

True or False: Persuasive advertising becomes more important as competition increases. Here, the company's objective is to build selective demand. Some persuasive advertising has become comparative advertising (or attack advertising) in which a company directly or indirectly compares its brand with one or more other brands.

True

True or False: Reminder advertising is important for mature products; it helps to maintain customer relationships and keep consumers thinking about the product.

True

True or False: Sales and profit effects of advertising are often much harder to measure.

True

True or False: The concept of integrated marketing communications suggests that the company must blend the promotion tools carefully into a coordinated promotion mix.

True

True or False: The merging of advertising and entertainment (Madison & Vine) takes one of two forms: advertainment or branded entertainment

True

True or False: The objective and task method entails (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.

True

True or False: To help implement integrated marketing communications, some companies have appointed a marketing communications director who has overall responsibility for the company's communications efforts.

True

True or False; Diversity between countries requires advertisers to adapt their campaigns to meet local cultures and customs media characteristics regulations.

True

Define Content Marketing

managers#create,#inspire#and# share#brand#messages#and#conversations.

What is Continuity?

means scheduling ads evenly within a given period.

What is Pulsing?

means scheduling ads unevenly over a given period of time.

IMC leads to a ....

total marketing communications strategy aimed at building strong customer relationships by showing how the company and its products can help customers solve their problems.

What does Personal selling include?

Sales presentations, trade shows, and incentive programs.

Define Percentage-of-sales method

Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.

Define Affordable method

Setting the promotion budget at the level management thinks the company can afford

Define Competitive-parity method

Setting the promotion budget to match competitors' outlays.

Define Sales promotion

Short-term incentives to encourage the purchase or sale of a product or service.

What are the Methods of Setting the Advertising Budget?

- Affordable+Method • Percentage of Sales Method • Competitive Parity Method • Objective and Task Method

What are the factors that are changing the face of today's marketing communications?

- Changing consumers -Changing marketing strategies -Advancements in digital technology

The five major promotion tools are...

-Advertising- Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. -Sales promotion- Short-term incentives to encourage the purchase or sale of a product or service. -Personal selling- Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships -Public relations- Building good relations with the company's various publics by obtaining favorable publicity, building yp a good corporate image, and handling or heading off unfavorable rumors, stories, and events -Direct Marketing- Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

What are the major advertising strategy elements?

-Creating advertising messages -Selecting advertising media

What are the Steps In Advertising Media Selection:

-Determining reach, frequency, impact and engagement -Choosing among major media types -Selecting specific media vehicles -Choosing media timing

What are the Standardization benefits?

-Lower advertising costs -Greater global advertising coordination -Most consistent worldwide image

Marketers can choose between what two basic promotion mix strategies?

-Push promotion -Pull promotion

What four four important decisions when developing an advertising program marketing managers must make?

-Setting advertising objectives -Setting the advertising budget -Developing advertising strategy (message decisions and media decisions) -Evaluating advertising campaigns

What are the two types of advertising results?

-The communication effects -The sales and profit effects

What are the major steps in advertising media?

1. Determining reach, frequency, and impact 2. Choosing among major media types 3. Selecting specific media vehicles 4. Choosing media timing

LO 12-1 (Summary and Review) Define the five promotion mix tools for conmmunicating customer value

A company's total promotion mix--also called its marketing communications mix--consists of the specific blend of advertising, personal selling, sales promotion, public relations, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships. Advertising includes any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. In contrast, public relations focuses on building good relations with the company's various publics. Personal selling is personal presentation by the firm's sales force for the purpose of making sales and building customer relationships. Firms use sales promotion to provide short-term incentives to encourage the purchase or sale of a product or service. Finally, firms seeking immediate response from targeted individual customers use direct-marketing tools to communicate with customers and cultivate relationships with them.

Define Advertising agency

A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs.

Advertising strategy...

Accomplishes the company's advertising objectives

LO 12-3 (Summary and Review) Describe and discuss the major decisions involved in developing an advertising programs.

Advertising--the use of paid media by a seller to inform, persuade, and remind about its products or organization-- is a strong promotion tool that takes many forms and has many uses. Advertising decision making involved decisions about the objectives, the budget, the message, the media, and, finally, the evaluation of results. Advertisers should set clear objectives as to whether the advertising is supposed to inform, persuade, or remind buyers. The advertising budget can be based on what is affordable, on sales, on a competitors' spending, or on advertising objectives and tasks. The message decision calls for planning a message strategy and executing it effectively. The media decision involves defining reach, frequency, and impact goals; choosing major media types; selecting media vehicles; and deciding on media timing. Message and media decisions must be closely coordinated for maximum campaign effectiveness. Finally, evaluation calls for evaluating the communication and sales effects of advertising before, during,m and after the advertising is placed and measuring advertising's return on investment.

What is Branded entertainment (or brand integrations)?

Involves making the brand an inseparable part of some other form of entertainment.

What is Frequency?

Is a measure of how many times the average person in the target market is exposed to the message.

What is Reach?

Is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time

LO 12-4 (Summary and Review) Explain how companies use public relations to communicate with their publics

Public relations involves building good relations with the company's various publics. It functions include press agentry, product publicity, public affairs, lobbying, investor relations, and development. Public relations can have a strong impact on public awareness at a much lower cost than advertising can, and public awareness at a much lower cost than advertising can, and PR results can sometimes be spectacular. Despite its potential strengths, however, PR sometimes sees only limited and scattered use. Public relations tools include news, special events, written materials, audiovisual materials, corporate identity materials, and public service activities. A company's Web site and online social networking can be good PR vehicles. In considering when and how to use product PR, management should set PR objectives, choose the PR messages and vehicles, implement the PR plan, and evaluate the results. Public relations should be blended smoothly with other promotional activities within the company's overall IMC effort.