Ch 17- Exam 3 (marketing)
frequent buyer program
(i.e. frequent flyer programs) a promotional program designed to build long - term, mutually beneficial relationships between the company and its key customers.
coupon
A certificate that entitles consumers to an immediate price reduction when they buy the product.
consumer-oriented sales promotions
sales promotion activities targeting the ultimate consumer. Also called consumer promotions (examples: coupons, sweepstakes, premiums)
sampling
A promotional program that allows the consumer the opportunity to try a product or service for free.
7. Know the various functions and tools of public relations and be able to recognize examples.
PR is the element in the mix that: evaluates public attitudes identifies issues of public concern executes programs to gain public acceptance tools: publicity, product placement(us of a brand name in a movie, television show, video r commercial for another product), public service ads, sponsorship, company website managing unfav. publicity: crisis management-A coordinated effort to handle the effects of unfavorable publicity or an unexpected unfavorable event.
rating
Percentage of total potential audience who choose a particular media vehicle over another
consumer sales promotion
Consumer sales promotion is a marketing technique that is used to entice customers to purchase a product. The promotions typically last for a set period of time and are used to achieve a specific purpose, such as increasing market share or unveiling a new product.
institutional advertisements
Enhances a company's image rather than promoting a particular product.
gross rating points
GRP stands for Gross Rating Point. A standard measure in advertising, it measures adverising impact. You calculate it as a percent of the target market reached multiplied by the exposure frequency. Thus, if you get advertise to 30% of the target market and give them 4 exposures, you would have 120 GRP. Read more: http://www.marketingprofs.com/Faqs/showfaq.asp?ID=134&CatID=1#ixzz3rmuYpadT
1. Know the different types of advertisements and when and why they are used. Be able to recognize examples.
Institutional Advertising: Enhances a company's image rather than promoting a particular product.-builds up image Product Advertising:Touts the benefits of a specific good or service-enhances sales -Pioneering:Stimulates primary demand for new product or category Used in the PLC introductory stage EX:HONDA AD -Competitive: Influences demand for brand in the growth phase of the PLC ;Often uses emotional appeal EX: INTEL -Comparative(a type of competitive ad): Compares two or more competing brands' product attributes Used if growth is sluggish, or if competition is strong EX:ALLEGRA -Reminder - reinforces previous knowledge of a product EX: GODIVA -Reinforcement ads - designed to reassure current users of a product. EX:DIAL Institutional Advertisements -Advocacy - a form of advertising in which an organization expresses his views on controversial issues or responds to media attacks. EX:PARENTAL GUIDANCE ON INTERNET AD - Pioneering Institutional - used to announce a new company and tell something about who the company is, what it can do, or where it is located EX:EXPLORING LIFE AD -Competitive Institutional - "industry" ads designed to promote a particular product class rather than a specific brand EX: MILK INDUSTRY -Reminder Institutional - designed to boost awareness of the organization as a whole EX: US ARMY ***The product's stage in its life cycle often determines which of the above types of product advertising is selected. Pioneering advertising is used during the introductory stage of the PLC. Competitive advertising is used during the growth phase of the PLC as competition increases. Comparative advertising compares competing brands. Before the 1970s, comparative advertising was allowed only if the competing brand was unidentified. Care should be used with comparative advertising approach in global markets due to government regulations and cultural/social value sensitivity.
4. Know the factors that influence advertising media selection and be able to recognize examples.
Knowing media habits of target market Product attribute or type of product dictate the media used timeliness and nature of the message Geo. Distribution of the target audience Specificity of the audience obj. of the ad campaign, cost, and budget
contest
Promotions in which participants use some skill or ability to compete for prizes.
5. Know the meaning of common media terms (i.e., reach and frequency) and be able to recognize examples.
Reach:The number of target consumers exposed to a commercial at least once during a specific period, usually four weeks. Frequency:The average number of times an individual is exposed to an advertisement. Cost per thousands:The cost of reaching one member of the target market (The cost of advertising divided by the number of thousands of individuals or households who are exposed.) Cost per click:The cost associated with a consumer clicking on a display or banner ad.
sales promotion
Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.
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.
8. Know what sales promotions are and their main advantage and disadvantage.
sales promotion: Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. Main Advantage - Are effective at stimulating sales for their duration. Main Disadvantage - Sales gains are often temporary and may be followed by a drop in sales.
product placement
Use of a brand name in a movie, television show, video or commercial for another product
2. Know the different types of advertising media and their relative importance in the industry (based on $ of advertising spending). Be able to recognize examples.
Used in mass media communication: newspapers ($47,000) magazines($17,000) radio($19,000) television($66,000) outdoor media($6,000) internet($9,000)
point-of-purchase (P-O-P) display
a promotional display set up at the retailer's location to build traffic, advertised product, or induce impulse buying
premium
an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product
Infomercials
infomercial is a form of television commercial, which generally includes a phone number or website
rebate
a cash refund given for the purchase of a product during a specific period
loyalty marketing program
(i.e. frequent flyer programs) a promotional program designed to build long - term, mutually beneficial relationships between the company and its key customers.
6. Be familiar with the creative aspects of designing advertising campaigns including creative decisions, setting objectives, identifying product benefits, and commonly used advertising appeals. Be able to recognize examples.
According to the DAGMAR (Defining Advertising Goals for Measured Advertising Results) approach, all advertising objectives should precisely define the target market, the desired percentage change in some specified measure of effectiveness, and the time frame in which that change is to occur. Once objectives are defined, creative work can begin on the advertising campaign. Creative decisions include identifying product benefits, developing and evaluating advertising appeals, executing the message, and evaluating the effectiveness of the campaign. Identify product benefits: "Sell the Sizzle, not the Steak" Sell product's benefits, not its attributes A benefit should answer "What's in it for me?" Advertising Appeals: Profit, health, fear, admiration, convenience, fun and pleasure, vanity and egoism, environmental consciousness Unique Selling Proposition: A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign EX:SLOGAN 11 Common Executional styles for advertisement: Slice of life-mcdonalds lifestyle-jetta in new York streets testimony/spokesperson-beyonce Fantasy-carmaker advertising Humorous-snickers Real/animated product-energizer bunny Symbols ex:geico Mood or image: diamond commercials Demonstration: laundry detergent Musical: nike ad Scientific: pain relievers
cooperative advertising
An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand
9. Be able to define and recognize examples of the various consumer-oriented and trade-oriented sales promotions. Also know the main reasons (objectives of sales promotion) for which each is used.
Consumer-Oriented Sales Promotions - sales promotion activities targeting the ultimate consumer. Also called consumer promotions (examples: coupons, sweepstakes, premiums) -coupons, rebates, premiums, loyalty marketing program, contests and sweepstakes, sampling, point of purchase promotion, online sales promotion Trade-Oriented Sales Promotions - sales promotion activities targeting a marketing channel member, such as a wholesaler or retailer. Also called trade promotions (examples: allowances and discounts) -trade allowances (a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers), push money, training, free merchandise, store demonstration, conventions and trade shows *While consumer promotions pull a product through the channel by creating demand, trade promotions push a product through the distribution channel . Benefits of trade promotion: Help manufacturers gain new distributors Obtain wholesaler and retailer support for consumer sales promotions Build or reduce dealer inventories Improve trade relations Enable manufacturers to maintain a steady production schedule
Frequency
The average number of times an individual is exposed to an advertisement.
cost per thousand
The cost of reaching one member of the target market (The cost of advertising divided by the number of thousands of individuals or households who are exposed.)
reach
The number of target consumers exposed to a commercial at least once during a specific period, usually four weeks.
product advertisements
Touts the benefits of a specific good or service.
3. Know the advantages and disadvantages of different advertising media.
tv: -Advantages: Wide, diverse audience Low cost per thousand Creative opportunities for demonstration Immediacy of messages Entertainment carryover Demographic selectivity with cable -Disadvantages: Wasted Coverage Short life of message Consumer skepticism High campaign cost Little demographic selectivity with stations Long-term advertiser commitments Long lead times for production Commercial clutter Radio: Advantages: Low cost Immediacy of message Short notice scheduling No seasonal audience change Highly portable Short-term advertiser commitments Entertainment carryover Disadvantages: No visual treatment Short advertising life High frequency to generate comprehension and retention Background distractions Commercial clutter Threat from satellite radio *Local advertisers are the most frequent users of radio advertising. Radio also lends itself well to cooperative advertising. The ability to target specific demographic groups is a major selling point for radio stations Newspapers: -Adv. Geographic selectivity Short-term advertiser commitments News value and immediacy Year-round readership High individual market coverage Co-op and local tie-in availability Short lead time -Disadv.: Limited demographic selectivity Limited color Low pass-along rate May be expensive if used for a large-scale campaign Cooperative Advertising: An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand.- to devote more effort towards manufacturers line Magazines: Adv.: Good reproduction Demographic selectivity Regional/local selectivity Long advertising life High pass-along rate Disadv.: Long-term advertiser commitments Slow audience build-up Limited demonstration capabilities Lack of urgency Long lead time *Compared to the cost of other media, the cost per contact in magazine advertising is usually high. Although magazine cost per contact may be higher than other media, ads reach specialized audiences and thus more potential customers. One of the main advantages of magazine advertising is market selectivity. Internet: Adv: Fast growing Ability to reach narrow target audience Short lead time Moderate cost Interactivity!! Disadv.: Difficult to measure ad effectiveness and ROI Ad exposure relies on "click through" from banner ads Not all consumers have access to Internet *With ad revenues exceeding $22 billion annually, the Internet has become a solid advertising medium. *One of the most popular approaches for Internet advertising is search engine ads. Outdoor Media: -Adv: Repetition Moderate cost Flexibility Geographic selectivity -Disadv.: Short message Lack of demographic selectivity High "noise" level Alternative media