IMC Exam 1 - (chapter 1-6)

direct source

a spokesperson who delivers a message and/or endorses a product or service

disadvantages in house agencies

less experience, less objectivity, less flexibility, less access to top creative talent

account service

link between the ad agency and the client - account executive -- responsible for understanding the advertisers marketing and promotions needs and interpreting them to the agency personnel --coordinate agency efforts in planning, creating and producing ads

differentiated marketing

marketing in many segments developing different marketing strategies for each

Review of Marketing Plan

marketing plan - doc that describes the overall marketing strategy and programs developed for an org steps 1. detailed situation analysis -- including internal marketing audit and external analysis of competition and environmental factors 2. Specific marketing objectives -- direction time frame mechanism for measuring 3. marketing strategy -- select target market -- decision and plans for the four elements of marketing mix 4. Program for implementing that marketing strategy -- specific tasks and responsibilities 5. Process to monitor and evaluate performance so changes can be made if necessary in the future

Packaging

more buying decisions are made at point of purhcase

The tole of IMC in marketing process

must understand their buyers and potential buyer to develop specific strategies

Direct channels

no channel intermediaries and sell to customers directly ex: tupperware

Publicity

non personal communications regrading an orgs product service or idea not directly paid for or run under identified sponsorship -- ex: news story, editorial or announcement about an org -- usually very creditable

specialized marketing communication services

organizations that provide marketing communication services in their areas of expertise including direct marketing, public relations, and sales promotion firms

company created touch points

planned created by company under control of marketer ex: ads

IMC planning process

planning executing evaluating and controlling the use of the promotional mix elements Step: 1. review of marketing plan 2. analysis of promotional program situation 3. analysis of communication process 4. budge determination 5. develop integrated marketing communications program 6. integrate and implement marketing communications strategies 7. monitor evaluate and control integrated marketing communications program

indirect brand competition

product substitutes

out of stock

when consumer use their existing supply of a product and must buy more

participants in the integrated marketing communications process

5 major groups 1. advertiser 2. ad agency 3. media org 4. specialized communication services 5. collateral services

Interactive media

- Two way flow of communication that users can participate in and modify form and content of the info they get in real time -- can share pics respond to questions and make purchases online

Internal Analysis

- assesses relevant areas that include the product offering and the firm itself - abilities of the firm and to develop a successful IMC program

Mobile Marketing

- promotional activity designed for delivery to cell phones smartphone tablet and handheld devices including apps messaging commerce and customer relationship management

The promotional mix include

-Advertising -Direct marketing -Digital internet -marketing -Sales promotion -Publicity/ PR -Personal selling

category management system

-An organizational system where managers have responsibility for the marketing programs for a particular category or line of products -Category manger oversees management of the entire product category

Reasons for Using an Ad Agency

-Highly skilled specialists -Specialization in a particular industry -Objective viewpoint of the market -Broad range of experience 1. Provide client with services from skilled people that specialize in their chosen field Ex: Lambesis Agency specializes in using IMC to develop strong brands 2. Objective viewpoint of the market and business Not subject to biases policies or limitations 3. Agency has lots of experience

Group system

-Individuals from each department work together in groups to service particular accounts -Headed by account executive or supervisor and has one or more media people, copywriters directors artists etc.

Full service agency

-Offers clients a full range of marketing communications and promotions services including --planning creating and producing the advertising performing research and selecting media -Can also offer non advertising services like --Strategic market planning sales promo direct marketing and digital interactive capabilities package design and PR

Centralized system

-Org system that the advertising along with other marketing activities are divided along functional lines and are run from one central marketing department -Usually used when not many product or service lines or brands to advertise -More efficient -Problems: hard to see overall strategy

Pros of integrated services

-Past problems are being solved and various people in the agencies are learning to work together to deliver a consistent message to the client's customers -Greater synergy among each of the communications program elements -More convenient

cons of integrated services

-Providers become involved in political wrangling over budgets -Do not communicate with each other well -Do not achieve synergy -Agencies efforts to control all aspects of promotional programs are just an attempt to hold on to business that might otherwise be lost to independent providers

collateral services

-The final participants in the promotional process are those that provide various collateral services -Marketing research companies, package design firms, consultants photographers graphic design companies talent agencies video production houses and event marketing service companies

Product user

-associating it with a particular use or group of users skateboarding ads for vans

financial audit

-focuses on how the agency conducts its business -Aspect of advertising agency evaluation process that focuses on how the agency conducts financial affairs related to serving a client

developing the IMC program

-most involved and detailed step of the promotional planning process -creative strategy -media strategy

Fee Arrangements

1. Fixed feed method -- Basic fee for all of its services and credits to the clients any media commissions earned 2. Fee commission combo --Media commissions received by the agency are credited against the fee --If commissions are less than agreed on fee the client makes up the difference

The target marketing process

1. Identifying markets 2. Segmenting the market with unfulfilled needs 3. Targeting specific segments 4. Positioning ones product or service through marketing strategies

Marketing process model has 4 major components

1. Organization's marketing strategy and analysis 2. Target marketing process 3. Marketing planning program development 4. Target market

Selecting a target market

1. determining how many segment to enter 2. determining which segments offer the most potential -- examine the sales potential of the segment and ops for growth the comp and its ability to compete

Consumer Decision Making Process

1. problem recognition -- when consumer perceives a need and becomes motivated to solve the problem difference between current state and ideal state 2. information search 3. evaluation of alternatives 4. product choice 5. post purchase evaluation

direct response advertising

A product is promoted by an ad that tells the buyer to purchase directly from the manufacturer -- ex: smartphones

Digital agencies

Agencies that specialize in the development and strategic use of various digital and interactive marketing tools such as websites for the internet banner ads search engine optimization mobile marketing and social media campaigns

sales promotion agency

An organization that specialized in the planning and implementation of promotional programs such as contests sweepstakes sampling premiums and incentive offers for its clients

advertising

Any paid form of nonpersonal communication about an org product service or idea by an identified sponsor - most cost effective away to reach customers -build bran equity/image

Disadvantages of decentralized system

Brand managers often lack training and experience Promotional strategy for the brand can be developed by a brand manager who doesn't always know what ads or sales promotions can and cannot do Short run planning Neglect long term programs Competition for managers attention ($) Failing to provide brand managers with authority over function needed to control the plans they develop

related products/purchases

Can be stimulated by the purchase of a product Ex: getting an Ipad -- needed the apple pen to go with it

new needs/wants

Changes in their lives cause this Financial situation, employment status or lifestyle Want Desire for something one does not have

cost plus agreement

Client agrees to pay the agency a fee based on the costs of its work plus some agreed on profit margin

collateral services

Companies that provide companies with specialized services such as package design, advertising production, and marketing research. --Wide range of support functions Perform specialized functions the other participant use in planning executing advertising and other promotional functions

incentive based compensation

Compensation where an agency compensation level depends on how well it meets predetermined performance goals such as sales or market share

promotion

Coordination of all seller initiated efforts to set up channels of info and persuasion to sell goods and services or promote and idea

creative services

Creation and execution of advertisements Copywriters -Those who conceive the ideas for ads write headlines subheads and body copy Art department -How the ad looks Prepare layouts- drawings that show what the ad will look like Prepare storyboard- frames or panels that depict the commercial in still form Production department Usually hire producers to finish the ads Oversee the casting of people to appear and setting for the scenes Traffic department Coordinates all phases of production to see that the ads are completed on time

the process of segmenting a market

Determine as much as they need about the market -- What needs are not being fulfilled what benefits are being sought, characteristics that distinguish among the group s seeking these products and services and alternative segmentation strategies may be used

PR firms

Develops and implements programs to manage the organization publicity image and affairs with consumers and other relevant publics including employee suppliers stockholder government labor groups citizens action groups and the general public Relationship between client and customer

Advantages of decentralized system

Each brand receives concentrated managerial attention Faster responses to problems and ops Brand managers have full responsibility for the marketing program Identifying target markets and development on iMC program More flexible = easy adjusting

departmental system

Each of the agency functions are set up as a separate department and is called on as needed to perform their task

hierarchy of needs

Five basic levels of human needs arranged in a hierarchy based on their importance Physiological Basic level of primary needs (food water) Safety Need for security and safety from harm Social love and belonging Desire to have satisfying relationships with others and feel a sense of love affection belonging and acceptance Esteem Need to feel a sense of accomplishment and gain recognition Self actualization Need for self fulfillment and desire to realize ones own potential

Sales Promotion

Generally defined as marketing activities that provide extra value or incentives to the sales force

clients

Have product service etc and pay for the IMC program Make final decisions

Demographic

Ikea enhanced store be more women friend - 70% of shoppers are women -- gender, age, race, life stage, household, birth year, martial status, income, edu, occupation

new products

Innovative products are introduced and brought to the attention of consumers Ex: apple

brand equity

Intangible asset of added value or good will that results from the favorable image impressions of added value or goodwill that results from the favorable image. --Allows brand to earn greater sales volume

Digital/Internet Marketing

Interactive media online Social media Mobile Marketing

Promotional Program Situational analysis

Internal Analysis External Analysis

Superagencies

Large external agencies that offer IMC on a worldwide basis Agencies held in the top four holding companies account for more than half of revenue generated by agencies in the US WPP Omnicom Group, Interpublic Group and Publicis Groupe

marketer-induced problem recognition

Marketers action that encourage consumers to not be content with their current state or situation Ex: ads for mouthwash and deodorant can create insecurities that consumers can resolve by using these products

Market segments

target markets the company wants to pursue

decentralized system

Org system where planning and decision making responsibility for marketing advertising and promotion lies with a product/brand manager or management team rather than a centralized department ---Those who use it: Pepsi, Google, Nestle

Direct Marketing

Organization communicates directly with target customers to generate a response and or transaction - ex: dataase management, direct selling, telemarketing, direct response, direct mail, online and broadcasts

media specialist companies

Organizations that specialize in the buying of media Because they buy so much at one time they often get discounts and can save small agencies money

ad agency

Outside firm that creates produces and places the communications messages and can provide other services to facilitate the marketing and promotions process

personal selling

Person to person communication that a seller attempts to assist and persuade prospective buyers to purchase the companies product or service or to act on an idea -flexible and immediate feedback --ex: telecommunication

marketing channels

Place element of the marketing mix are sets of interdependent orgs involved in the process of making ap product or service available for use or consumption

why agencies lose clients

Poor performance or service Poor communication Unrealistic demands by the client Personality conflicts Personnel changes Changes in size of client or agency Conflicts of interest Changes in the clients corporate and or marketing strategy Declining sales Conflicting compensation philosophies Changes in policies Disagreements over marketing and creative strategy Laco of integrated marketing capabilities

motivation research

Qualitative research designed to probe the consumers subconscious and discover deeply rooted motives for purchasing a product in depth interviews -- f2f interview ask consumer to tell them about motives ideas or opinions projective techniques -- designed to gain insights to cust values motives attitudes association test --when individual is asked to respond with the first thing that comes to mind focus groups -- small number of ppl with similar backgrounds

promotional push strategy

Programs designed to persuade the trade to stock merchandise and promotes a manufacturers products

Media Organizations

Provide information, entertainment, or an environment for a firm's marketing communications message --Primary function of most media is to provide information or entertainment or their viewers From promotional planners view the purupse is to have an environment for the firms marketing to communicate messages Ex: nat geographic promote family media

direct marketing agencies

Provide variety of services including database analytics and management direct mail research media service and creative and production capabilities --fasted growing area of IMC direct marketing

decisions that can evaluate with persuasion matrix

Receiver/comprehension - Can the receiver comprehend the ad? Message needs to be clear Channel/Presentation - which media vehicles should be used to present the advertising message Media decisions based on the sixe and composition of the audience reached as well as cost Message/yielding - what type of message will create favorable attitudes or feelings? Generally try to create agreeable messages that lead to positive feelings toward the product or service Source/attention - who will be effective in getting consumers attention How to break through the clutter

why agencies gain clients

Referrals --From existing clients media representatives and other agencies Solicitations --Direct solicitation President my solicit new accounts Large agencies New business development groups seek out and establish contact with new clients Presentations --New agency starts with new clients sending out request for info docs (RIF) Public relations --Agencies seek business though PR Image and reputation --Keeping a good relationship with their current clients Reputation for doing excellent work

marketing service

Research department -Gather analyze and interpret information that will be useful in developing advertising for their clients Account planners -People who gather info that is relevant to the clients product or service and can be used in the development of creative strategy as well as other aspect of the IMC campaign -Provides creative team and other agency personal with more insight to customers and more Media department -Analyzes selected and contacts for space or time in the media that will be used to deliver the clients ad message -Develop media plan that reaches the target market and effectively communicate the message

brand manager

Responsible for the total management of the brand including planning budgeting sales and profit performance, planning implementation and control of the marketing program Work closely with outside agencies to develop IMC plan

indirect source

Say a model, doesn't actually deliver a message but draws attention to and/or enhances the appearance of the ad

psychoanalytic theory

Sigmund Freud Underlying motivations for human behavior Motivation for purchasing are often complex and unclear to the casual observer

agency of record (AOR)

Single agency that has primary responsibility for most IMC services that company might require Ex: brand and creative strategy media planning etc.

creative boutiques

Small agencies that provide only creative services and have long been important part of the advertising industry Have writers artists on staff but do not have media research or account planning abilities

PR

Strategic communication process that build mutually beneficial relationships between organization and their publics -maintain and establish positive company image -- ex: fundraising sponsorship of special events and various public affairs activities

Target market selection

Target market becomes the focus of the firm's marketing effort and goals and objectives are set according to where the company wants to be and what it hopes to accomplish in the market

Customer oriented sales promotions

Targeted to the ultimate user of a product of service and includes coupons etc

Trade Oriented sales promotion

Targeted toward marketing intermediaries like wholesellers distributors and retailers

qualitative audit

The agency efforts in planning developing and implementing the clients advertising programs and considers the results achieved

percentage charges

The markup charged by advertising agencies for services provided to clients.

consumer behavior

The process and activities people engage in when searching for selecting purchasing use evaluating and disposing of product and service to satisfy their needs and desires

dissatisfaction

They do not like the current state of affairs or the product the is being used Ex: snow boots are no longer stylish enough

motives

Those factors that compel a consumer to take particular action

Psychographic

VALS program -- personality, values, lifestyles, needs

programmatic buying

Wide range of technologies that are automating the buying placement and optimization of advertising media

commission system

a method of agency compensation based on the amount of money the advertiser spends on the media -- 15%

in house agencies

ad agencys that is set up owned and operated by the advertisers

Trade advertising

ads targeted to wholesalers and retailers

positioning

art and science of fitting the product or service to one or more segment of the broad market in a way that is meaningfully different to competition

use or application

associated brand with specific use or applicate -- intuit ad is specifically targeted at small business owners effective to expand a product -- arm and hammer baking soda promoted for everything from baking to relieving heartburn to eliminate order in carpets

Branding

building and maintaining a favorable identity and image of the company Goals 1. build and maintain awareness 2. develop and enhance attitudes toward brand 3. build and foster relationships w customers

Direct brand competition

can also include own brand

market segementation

dividing the market into distinct groups that have common needs will respond similarly to marketing action -- more segments = more precise

repositioning

changing of product or brands positioning --product usually declines because of anticipated opportunties in other marketing positioning (can be difficult bc of perceptions about the brand already)

Paid media

channels a marketer pays to leverage and includes traditional ad media like TV radio print outdoor direct mail and online display and video ads --ex: TV, radio, magazine, newspaper, instore media, online banner ads, paid search, social media ads

Owned Media

channels of marketing communication that a company controls like websites blogs mobile apps facebook twitter instagram youtube --ex: website microsites, mobile apps, fb, twitter, instagram, snapchat, blogs, brochures, instore displays

Brand Identity

combo or name logo symbols design packaging and performance of product or service and the image or type of association that come to mind

persuasion matrix

communication planning model that stages of the response process (dependent variables) and the communication components (independent variables) are combined to demonstrate the likely effect that the independent variables will have on the dependent variable Helps marketers see how each controllable element interacts with the consumer's response process

omnichannel retailing

companies sell products through multiple distribution channels retail stores, online catalogs and mobile apps -- combo of physical and online channels to influence a customers behaviors/experience

advantages of in house agencies

cost savings, more control, increased coordination, stability, access to top management --Reduce ad and promotion costs Keep the marketing communications function more closely tied to top management External agencies have higher turnover levels and can take a toll on client agency relationships Saves time, increased knowledge of market

sustainaility

development that meets the needs of the current generation without compromising the ability of future generations to meet their needs

Geographic Segmentation

different buying habits depending on where they live -- region, city, size, statistical area, media TV, density

touch point

every opportunity a customer has to see or hear about the company and its brand or encounter an experience with it

Earned Media

exposure for a brand that it did not have to pay for and is generated by outside entities like media or the general public --ex: word of mouth, social media mentions comments, shared videos, picture, posts, reposts, online communities, media coverages

External Analysis

factors such as characteristics of the firm's customers, market segments, positioning strategies, and competitors -- assess market -- analysis of marketing environment environment current trends

concentrated marketing

firm selects one segment and tries to capture a large share of its market

Behavioral

heavy vs light or brand loyalty are combined with demographic and psychographic criteria - retail store type, direct marketing, product feature, usage rate, user status

price/quality

high quality while cost is secondary to quality benefits -- premium brands quality or value offered by brand at competitive price -- kohls

budget determination

how much will the IMC plan cost how much money will be allocated across different media location and time periods

undifferentiated marketing

ignores segment differences and offers just one product to the entire market -- ford assembly line

Salient attributes

important to consumers and are the basis for making a purchase decision

Monitoring evaluation and control

important to determine how well the IMC program is meeting communication objectives and get feedback on it

customer initiated touchpoint

interaction when a customer contacts the company ex: email calling section of website

intrinsic touch points

interactions that happen with company or brand during buying or using the product - ex: discussion with sales personnel customer service rep -- not usually under marketers control

Product attributes and benefits

setting brand apart based on specific characteristics or benefits offered

competitive advantage

something special a firm does that gives them an edge over the competition -Quality & premium price -Superior customer service -Lowest production costs = lower prices -Dominating channels of distribution -Ads

promotional pull strategy

spending money on advertising and sale promotion efforts direct towards ultimate consumer

analysis of the communication process

stage that examines how the company can communicate with consumers in its target market -- communication objective (what the firm seeks to accomplish with its promotional program

benefit segmentation

the grouping of consumers on the basis of the benefits they derive from products or services - differences in perception of value -- function vs status

source

the person involved in communicating a marketing message either directly or indirectly

strategic marketing plan

the planning framework for specific marketing activities -evales the orgs overall strategy and guides for IMC programs and policies

Competitor

today effective positioning strategy for a product or brand may focus on specific competitors

unexpected touch points

unanticipated reference or info about a company that a customer receives that is beyond the control of the organization --ex: word of mouth

Cultural symbols

used to differentiate brands - when associated with a meaningful symbol the brand is easily identifiable and differentiated from others

indirect channels

using a network of wholesalers and retailers

market opportunity

where there are favorable demand trends that the company thinks customers needs and ops are not being satisfied and where it can compete

Product class

while they compete with other airlines trains and buses as viable alternative - amtrack --positions itself as the alternative to flying (cheaper and enjoyment)