CRS 262 Exam 2

What is tone and why is it important?

"tone of voice" is not only what your advertisements say about your brand, but how they say it It's the intentional use of images, lighting, sound and written copy to create a specific impact on the viewer

What is the STP process?

- Identify markets with unfulfilled needs - Determine market segmentation - Select a market to target - Position through marketing strategies

customer relaionship mgmt

--Process of building and maintaining profitable customer relationships by providing superior customer value and satisfaction --Collect and organize consumer preferences --Track consumer behaviors --Prioritize and synchronize marketing messages --Communicate effectively w/ consumers and stakeholders at every level --Price/value equation P/V = PC P= price, V=value, PC =perceived cost to consumer -->Inverse relationship: between customer value and perceived cost components -->Direct relationship: when both factors move in the same direction -->Marketer wants increases in market share, share of customer and brand loyalty

bottom-up budgeting

--Promotion objectives are set --Activities needed to achieve objectives are planned --Costs of promotion activities are budgeted --Total promotion budget is approved by mgmt Methods: Objective-and-task method baes on budget on goals the company wishes to accomplish

customer experience mgmt.

--The function of managent the overall experience customer has w/ supplier --Tools to harvest data to monitor and further develop customer relationship --Synchronizes all stakeholders, systems, and strategies --Competitive advantage gained by providing unique experience and engagement w/ customers

top-down budgeting

--Top mgmt --Affordable method --Arbitrary allocation*** based on what mgmt thinks is necessary --EX: well we've spent 15 million on advertising in the last 2 years, so it's enough for this year too --Percentage of sales*** --Competitive parity --If your competition is in one particular magazine, then you'll see several of the same types of businesses in the same magazine so you all get the same eyeballs --Return on investment

What is the AIDA model?

1. Attention: capture consumer attention and awareness of product 2. Interest: generate interest by touting uniqueness, features, and benefits of product 3. Desire: create desire among consumers for the particular product 4. Action: motivate consumers to buy product

What are some main segmentation categories?

1. Demographics: statistical characteristics of a pop --gender, age cohorts 2. Geographics: physical environment, climate, and natural resources inherent to a market 3. Psychographics: consumer lifestyle, leisure activities, and personal preferences 4. Usage: quantity and rate at which customers make brand purchases; their level of loyalty to a brand

What are the four levels of segmentation for targeting strategies? (know their diferences)

1. Mass marketing (undifferentiated) --Fashions targeted at all consumers --Message may be diluted in order to attract a wide audience --Cost effective marketing method, yet can be ineffective 2. Segment marketing (differentiated) marketed specifically to individual consumer segments --Demographics used --Incorporate messages that are important to the segment quality, sustainability, luxury, beauty 3. Niche Marketing (concentrated) --Subgroups are developed w/in each segment --Emphasis on psychographics --Very important in fashion marketing 4. Micromarketing (customized) --Individualized marketing program --Message focused on a geographic, regional or population based --Emphasizes an understanding w/ the culture and commitment to the target market

Media Planning

A series of decisions involving the delivery of messages to audiences

major pros/cons of radio advertising

Advantages: Local coverage, low cost, high frequency, flexible, low production cost, well-segmented audience Disadvantages: Audio only, clutter, low attention getting, fleeting message

major pros/cons of magazine advertising

Advantages: Segmentation potential, quality reproduction, high info content, longevity, multiple readers Disadvantages: Long lead time for ad placement, visual one, lack of flexibility

major pros/cons of newspaper advertising

Advantages: high coverage, low cost, short lead time for placing ads, ads can be placed in interest sections, timely (current ads). reader controls exposure, can be used for coupons Disadvantages: Short life, clutter, low attention getting, poor reproduction quality, selective reader exposure

Major pros/cons of television advertising

Advantages: mass coverage, high reach, sight, sound, motion, high prestige, low cost per exposure, attention-getting, favorable image Disadvantages: low selectivity, short message life, high absolute cost, high production cost, clutter

Measurability

Can the segment be quantified in terms of size and buying power?

Customer retention management

Consistently coordinating important areas of the customer experience when delivering products or services in order to improve customer retention and lead to business growth

Media Strategy

Decisions on how the media objectives can be attained

Market segmentation

Divides total markets into smaller clusters of possible customers who display similar characteristics, wants, and needs

Medium

General categories of delivery systems, including broadcast and print media

Media Objectives

Goals to be attained by the media strategy and program

Accessibility

How easily can target be reached?

Serviceability

How well can needs in segment be met in terms of delivering what they want & when they want it; doing better than the competition

What are the different types of coupons?

In/On-pack - Bounce-back(Try to get the customer back in the store in the next few weeks), Cross-ruff (offering a discount with an item related), Instant In-Store- Tear-off pads, Handouts, Dispensers, Register printout

Why is market segmentation important?

Increases the odds of focusing on the right group of prospects Helps to differentiate between: - Those who may potentially buy a product - Those who are likely to buy a product

What are the three main promotional goals?

Inform, remind, persuade (Attract new customers, sell to existing customers, aid distributors, stabilize sales, boost name recognition, create sales leads, differentiate the product, influence decision-makers)

Substantiality

Is the base large enough to generate sufficient sales and profits?

Reach

Number of different audience memebers exposed at least once in a time period

Frequency

Number of times the receiver is exposed to the media vehicle in a time period

What is public relations and what are some of the ways PR helps a business?

PR is a marketing communications function Aimed at generating goodwill and positive image for the marketer and its products among publics - Non-paid promotion of newsworthy products - Important for crisis management and counteracting negative publicity

What is the difference between push and pull strategies?

Push & Pull: on whom to focus the promotion Push: promotions to next level of supply chain (i.e. pushing retailers to carry your apparel products) Pull: promoting to the end consumer (i.e. pulling customers toward your brand so they demand your products from retailers) Most advertising is pull strategy

What are some of the main types of sales promotion vehicles?

Samples, Coupons, Premiums, Contests/sweepstakes, Refunds/rebates, Bonus packs, Price-off deals, Frequency programs, Cooperative advertising, Trade allowances, Sales training programs, Contests, incentives, POP displays, Trade shows, Consumer-oriented, Trade-oriented, Event marketing

What are the four criteria for evaluating potential markets?

Substantiality, Measurability, Accessibility, Serviceability

Coverage

The potential of the audience that might receive the message through the vichicle

Media vehicle

The specific carrier within a medium category

Why would marketers use sales promotion tools? Know the various reasons.

To increase demand and stimulate sales - Gives a temporary boost to sales - Valuable in a highly competitive market environment Increase consumption of an established brand Obtain trial and purchase Defend (maintain) current customers Enhance IMC efforts and build brand equity Target a specific segment

Why is positioning a product important?

Using marketing mix tools to determine how a product fits within the marketplace and in relation to other products (step "P" of STP process) Marketer's job: --Influence how customers in specific segments view the product --Convey info about a product so customers view it as one that occupies a better, more attractive position than that of a competing product

What are the five main elements in the promotional mix?

direct mail Advertising public relations personal selling sales promotions