MKG340 M4
Loyalty or frequency programs
"identifying, maintaining, and increasing the yield from a firm's 'best' customers through long-term, interactive, value-added relationships."36 161
Four Major Marketing Communication Options:
(1) advertising and promotion (2) interactive marketing (3) events and experiences (4) mobile marketing
creative strategy
(the way the ad expresses the brand claims). artistic aspects and execution
Radio
93 % of all U.S. consumers 12+ yrs listen to the radio daily (often in the background) Pros: stations are highly targeted, inexpensive, complementing/reinforcing ads, balance between broad and localized messaging Cons: lack of visual message, passive consumer processing.
According to Module 4, which of the following are the strategic goals of marketing communication? Creating awareness and building positive brand images Identifying prospects, retaining customers Building channel relationships All of the above
All of the above.
Multiple information provision strategy
Provide different information within a communication option to appeal to the different types of consumers. Issues of information overload, confusion, and annoyance may come into play if communications become burdened with a great deal of detail.
Broad information provision strategy:
Provide information that is rich or ambiguous enough to work regardless of prior consumer knowledge the information may lack precision and sufficient detail to have any meaningful impact on consumers.
Price bands
Range of acceptable prices that indicate the flexibility and breadth marketers can adopt in pricing their brands within a tier.
Television
Strengths: allows for sight, sound, and motion and reaches a broad spectrum of consumers. 194 ability to vividly demonstrate and portray products and brands Cons: clutter, fleeting, possibly distracting creative elements - consumers can overlook product-related messages and the brand itself. Skip feature. the share of the prime time audience for the major networks has steadily declined. TV spending is forecast to continue to make up almost 40 percent of all U.S. ad spending through 2015.
copy testing
To evaluate the effectiveness of message and creative strategies a sample of consumers is exposed to candidate ads and their reactions are gauged in some manner.
True or False? The basic premise of Integrated Marketing Communication (IMC) is to ensure that a consistent brand message is communicated throughout the entire promotional mix. IMC coordinates the pieces in the promotional mix so that there is transparency and clarity in the message.
True
Cooperative advertising
a manufacturer pays for a portion of the advertising that a retailer runs to promote the manufacturer's product and its availability in the retailer's place of business. To be eligible to receive co-op funds, the retailer must follow the manufacturer's stipulations as to the nature of brand exposure in the ad. 176
Relate marketing
creates experiences by taking into account individuals' desires to be part of a social context (e.g., to their self-esteem, being part of a subculture, or a brand community). 154
Marketing communications contribute to brand equity
creating awareness of the brand linking points-of-parity and points-of-difference associations to the brand in consumers' memory eliciting positive brand judgments or feelings facilitating a stronger consumer-brand connection and brand resonance. 190
Relationship marketing
current customers are the key to long-term brand success. 154 Stronger consumer ties Increased brand resonance provide a more holistic, personalized brand experience Mass customization, One-to-one marketing, and Permission marketing.
Shopper marketing
emphasizes collaboration between manufacturers and retailers on in-store marketing like brand-building displays, sampling promotions, and other in-store activities designed to capitalize on a retailer's capabilities and its customers. 173
Coverage
is the proportion of the audience reached by each communication option, as well as how much overlap exists among communication options. To what extent do different communication options reach the designated target market, and the same or different consumers making up that market?
Permission Marketing
the practice of marketing to consumers only after gaining their permission. avoid interruption marketing, offer incentive more targeted, personalized marketing messages anticipated, personal, and relevant. Think Amazon
Value-based pricing strategies
to uncover the right blend of product quality, product costs, and product prices that fully satisfies the needs and wants of consumers and the profit targets of the firm. Product design and delivery Product costs Product prices
Opt-in advertising
users agree to allow advertisers to use specific, individual information about time, location, and shopping preferences in order to send them targeted ads and promotions. in return for coupons, discounts, and more relevant promotional material and messages.
search advertising
users are presented with sponsored links relevant to their search words alongside unsponsored search results. Tied to specific keywords, marketers can target them more effectively than banner ads and thus generate higher response rates. Almost half of all Internet advertising in 2010 (over $12 billion) was devoted to search.52 210 cost effective - "cost per click"
Direct response
uses mail, telephone, Internet, and other contact tools to communicate with or solicit a response from specific customers and prospects. 200 The goal of direct response is to elicit some type of behavior from consumers pros: establishing relationships w customers allow marketers to explain new developments with their brands on an ongoing basis, consumer feedback, easy to measure effects, relationship marketing, precision marketing. Cons: intrusiveness, clutter To improve the effectiveness of direct marketing programs, many marketers are embracing database marketing 200
database marketing
using comprehensive, up-to-date, relevant data on customers, inquiries, prospects and suspects, to identify our most responsive customers Purpose: develop high quality, long-standing relationship of repeat business, predictive models which enable us to send desired messages at the right time in the right form to the right people Goals: pleasing our customers, increasing our response rate per marketing dollar, lowering our cost per order, building our business, and increasing our profits. 201 more effective at helping firms retain existing customers than in attracting new ones.
Advertising retrieval cues
visual or verbal information uniquely identified with an ad that is evident when consumers are making a product or service decision. Maximize the probability that consumers who have seen or heard the cued ad will retrieve the communication effects stored in long-term memory key visual, a catchy slogan, or any unique advertising element that serves as an effective reminder to consumers Ex. pink energizer bunny
6 information-processing factors affecting the success of advertising:
1. consumer targeting 2. the ad creative 3. consumer understanding 4. brand positioning 5. consumer motivation 6. ad memorability. 196
The promotional mix
Advertising sales promotion public relations personal selling social media
Positioning factors for establishing brand equity
Competitive frame of reference Point-of-parity attributes or benefits Point-of-difference attributes or benefits
Six Criteria for a Successful IMC Program
Coverage Contribution Commonality Complementarity Conformability Cost
"cost-per-click" pricing
Created by google - cost effective advertisers were charged based on the number of times a sponsored link was actually clicked. 210
Five Strategic Goals of Marketing Communication
Creating awareness Building positive brand images Identifying prospects Retaining customers Building channel relationships
buzz marketing
Creating consumer word-of-mouth through various techniques 218 an accepted member of the social circle will always be more credible than any communication that could ever come directly from the brand. 219 enlist genuine consumers able to give authentic-seeming endorsements of the brand. consumers who are likely to influence other consumers to "discover" the product in the hopes that they will pass a positive endorsement on to their peers.
Mass Customization
Customers communicate their preferences directly to the manufacturer. Using advanced production methods, can assemble the product for a price comparable to that of a non customized item. 156 Enables customers to distinguish themselves and share their experience through social media.
Advertising strategy goals:
Defining the proper positioning to maximize brand equity Identifying the best creative strategy to communicate or convey the desired positioning
Pull Strategies
Devoting marketing efforts to the end consumer Consumers use their buying power and influence on retailers to "pull" the product through the channel. 174
Information Processing Model of Communications:
Exposure: to hear or see. Attention: to notice Comprehension: to understand the intended message or arguments. Yielding: to respond favorably Intentions: to plan to act in the desired manner Behavior: to actually act in the desired manner of the communication.
Motivational "borrowed-interest" techniques
Humor, Warmth, Sex appeal, Music, Fear Special effects. Attract attention, raise consumer involvement, break through the clutter. can be too effective and distract from the brand or its product claims.
Benefits of PR
Increased WOM, creating buzz Managing a crisis
Online marketing communications
Increased online presence marketers are scrambling to find the right places to be in cyberspace. low cost and the level of detail and degree of customization it offers. (1) Web sites, (2) online ads and videos, and (3) social media. 208
Creative factors to communicate positioning
Informational (benefit elaboration) Transformational (imagery portrayal) Motivational ("borrowed interest" techniques)
Push Strategy
Marketers ] devote their selling efforts to the channel members themselves, providing direct incentives for them to stock and sell products to the end consumer. The manufacturer is attempting to reach the consumer by "pushing" the product through each step of the distribution chain. 174
point of purchase advertising
ads on shopping carts, cart straps, aisles, or shelves as well as promotion options such as in-store demonstrations, live sampling, and instant coupon machines. 203 Consumers in many product categories make the bulk of their final brand decisions in the store. Designed to increase the number and nature of spontaneous and planned buying decisions. 203
A YouTube video promoting a brand is an example of ________. massive communication direct sales public relations advertising
advertising
Websites
allow any type of consumer to choose the brand information relevant to his or her needs or desires. marketers can collect names and addresses for a database and conduct e-mail surveys and online focus groups. 208 eye-catching pages that can sustain browsers' interest, employing the latest technology and effectively communicating the brand message. Design is crucial bc it can be difficult to entice a customer back after a bad experience.
Social media
allows consumers to share text, images, audio, and video online with each other and—if they choose—with representatives from companies. 210 (1) message boards and forums, (2) chat rooms, (3) blogs, (4) Facebook, (5) Twitter, and (6) YouTube. 210 One forecast projected that by 2014, roughly two-thirds of U.S. Internet users will be regular visitors to social media networks.53 210 Pros: establish a public voice and presence, complements and reinforces, promote innovation and relevance by permitting personal, independent expression, measurable, market insights Cons: Not everyone actively participates in social media.
Sense marketing
appeals to consumers' senses (sight, sound, touch, taste, and smell).
Feel marketing
appeals to customers' inner feelings and emotions
Think marketing
appeals to the intellect in order to deliver cognitive, problem-solving experiences that engage customers creatively.
Sales promotion
are short-term incentives to encourage trial or usage of a product or service. 204 Advertising provides consumers a reason to buy, sales promotions offer consumers an incentive to buy. Change behavior: trade so that they carry the brand and actively support it, consumers so that they buy a brand for the first time, buy more of the brand, or buy the brand earlier or more often Pros: price discriminate effectively, sense of urgency, grab consumer attention to deliver marketing communication, encourage the trade to maintain full stocks and actively support the manufacturer's merchandising efforts. 204 Cons: Decreased brand loyalty and quality perception, increased brand switching and price sensitivity. Subsidize buyers who would have bought the brand anyway and coupon enthusiasts
Marketing communications
are the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the brands they sell. the voice of the brand establish a dialogue and build relationships with consumers. 190
Owned media
are those media channels the brand controls to some extent—Web sites, e-mails, social media, etc.
Earned media
are when consumers themselves communicate about the brand via social media, word-of-mouth, etc. 211
Everyday low pricing (EDLP)
avoids the sawtooth, whiplash pattern of alternating price increases and decreases or discounts in favor of a more consistent set of "everyday" base prices on products. Using sophisticated models and software to determine the optimal schedule for markdowns and discounts. 170 Avoid supply chain stress, and customers waiting for discounts
Events and experiences (event marketing)
brand building in the real world as public sponsorship of events or activities related to sports, art, entertainment, or social causes. Event sponsorship has grown rapidly in recent years, to total $46.3 billion globally in 2010. Target a specific market, create brand awareness, build recognition, create associations, positively enhance brand image, evoke feeling, community participation, reward key customers/employees, tie in promotional opportunities. success can unpredictable, clutter, consumers may still resent the commercialization
Strategies to Strengthen Communication Effects
brand signatures ad retrieval cues media interactions.
Relate Marketing
creates experiences by taking into account individuals' desires to be part of a social context (e.g., to their self-esteem, being part of a subculture, or a brand community). 154
Direct channels
can enhance brand equity by allowing consumers to better understand the depth, breadth, and variety of the products associated with the brand as well as any distinguishing characteristics. company owned stores pop-up stores store-within-a-store phone, mail, or electronic means.
precision marketing
combining data analytics with strategic messages and compelling colors and designs in their communications.27 200
One to One marketing
consumers help add value by providing information to marketers; marketers add value, in turn, by taking that information and generating rewarding experiences for consumers. date singles out customers, customer communicates preferences, company anticipates executes preferences. ex. Ritz Carlton
A _______ is any information-bearing experience that a customer or prospect has with the brand, the product category, or the market that relates to the marketer's product or service. 152
contact
Complementarity
describes the extent to which different associations and linkages are emphasized across communication options. 222 more effective when used in tandem capitalizing on those marketing communication options best suited to eliciting a particular consumer response or establishing a particular type of brand association. 222
Channel Strategy
design and management of intermediaries such as wholesalers, distributors, brokers, and retailers. 171 Direct and indirect information, entertainment, and experiences.
Retail segmentation
different marketing capabilities and needs different product mixes, special delivery systems, customized promotions, or even their own branded version of the products. 176 Branded variants - variations in similar products to reduce price comparisons across retailers
Customer franchise building promotions
enhance the attitudes and loyalty of consumers toward a brand—in other words, affect brand equity. samples, demonstrations, and educational material - kick start WOM % of coupons consumers redeem dropped steadily for yrs—in part due to the clutter of coupons that were increasingly being distributed—before experiencing an uptick more recently 206 Growing: in-store coupons, digital coupons
Cost
evaluations of marketing communications on all of the preceding criteria must be weighed against their cost to arrive at the most effective and efficient communication program. 222
A multi-million dollar affair dedicated to a product reveal is an example of which type of marketing? loyalty balls big money networking famous communications events and experiences
events and experiences
Trade promotions
financial incentives/discounts given to retailers, distributors, and other channel members to stock, display, and in other ways facilitate the sale of a product through slotting allowances, point-of-purchase displays, contests and dealer incentives, training programs, trade shows, and cooperative advertising. 208 Secure shelf space
supply-side method
focuses on potential exposure to the brand by assessing the extent of media coverage approx the amount of time/space devoted to the brand in media coverage of an event. evaluate reach or potential impressions
demand-side method
focuses on reported exposure from consumers. Tracking or custom surveys can explore the ability of the event sponsorship to affect awareness, attitudes, or even sales. Evaluating effect on consumer brand knowledge structure
Online Ads and Videos
has grown rapidly—in 2010 it totaled $26 billion in the United States to rank second behind TV advertising ($28.6 billion) 209 Accountable - easy to measure, non disruptive, can extend the creative or legal restrictions of traditional. Any size brand can benefit. Many consumers find it easy to ignore banner ads and screen them out with pop-up filters. Growing: Youtube - initiating dialogue and cultivating community. E-mail ads often receive response rates of 20-30 percent at a cost less than that of banner ads. Search advertising
has taken a huge hit in recent yrs as more consumers choose to collect information and seek entertainment online. publishers in response are publishing online pros: detailed product info, highly engaging cons: static-lack of dynamic demonstrations, timely, less pervasive, poor reproduction quality , short shelf-life. most consumers only glance at the visible elements of a print ad, and overlook the brand name if it is not readily apparent. Clarity, consistency, and branding. 200
Communicating Value
help consumers better recognize the value. Straightforward, stressing quality for price. "framing" convincing consumers to think about their brand and product decisions differently. 168
Paid media
is all the various forms of more traditional advertising media described above, including TV and print.
Advertising
is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. 193 Pro: powerful at creating favorable associations, positive judgements and feelings Con: its specific effects are often difficult to quantify and predict.
Perceived quality
is customers' perception of the overall quality or superiority of a product or service compared to alternatives and with respect to its intended purpose. 159 Influences attitudes and behaviors Product physical features Augmented features Heuristics
Publicity
is nonpersonal communications such as press releases, media interviews, press conferences, feature articles, newsletters, photographs, films, and tapes.
Commonality
is the extent to which common information conveyed by different communication options shares meaning across communication options. 221 consistency and cohesiveness - recall and associations, brand image A more abstract association helps maintain a consistent message.
Contribution
is the inherent ability of a marketing communication to create the desired response and communication effects from consumers in the absence of exposure to any other communication option. describes the main effects of a marketing communication option in terms of how it affects consumers' processing of a communication and the resulting outcomes. generating conceptual guidelines and evaluation criteria in the process. Measurable
brand signature
is the manner by which the brand is identified in a TV or radio ad or displayed within a print ad. must creatively engage the consumer and cause him or her to pay more attention to the brand itself and, as a consequence, increase the strength of brand associations created by the ad. 223 Ex. "Got Milk?"
Integrated Marketing Communication Programs
marketers should "mix and match" communication options to build brand equity— choose a variety of different communication options that share common meaning and content but also offer different, complementary advantages so that the whole is greater than the sum of the parts 220 Criteria for assessing the collective impact: Coverage Contribution Commonality Complementarity Conformability Cost
Aftermarketing
marketing activities that occur after customer purchase. user manuals customer service programs loyalty programs
Public relations
may also include annual reports, fund-raising and membership drives, lobbying, special event management, and public affairs. 218
Mobile marketing
mobile ad spending passed $1 billion in 2011. 217 more targeted, interactive, and useful ads point of purchase, geotargeting privacy concerns - opt in advertising m-commerce
Sex appeal and humor are considered ________ when designing effective ad campaigns. motivational transformational recreational informational
motivational
Geotargeting
occurs when marketers take advantage of digital technology to send messages to consumers based on their location and the activities they are engaging in.72
message strategy
or positioning of an ad (what the ad attempts to convey about the brand) scientific aspects and brand claim information
What are media channels that a brand controls? . known media paid media owned media earned media
owned media
Which of the following represents a broadly defined category that captures advertising outside of traditional media? sponsorships testimonials public communication place advertising
place advertising
Experiential marketing
promotes a product by not only communicating a product's features and benefits but also connecting it with unique and interesting consumer experiences. 153 "The idea is not to sell something, but to demonstrate how a brand can enrich a customer's life." 153 "Any form of customer-focused marketing that creates a sensory-emotional connection to customers." 153
___________ strategies market directly to the customer, serving as motivation for the customer to ask the retailer for the product.
pull
Which strategy involves the manufacturers bringing consumers to them through other channel members? push strategy pull strategy magnet strategy forward strategy
pull strategy
__________ strategies are directed at the actual merchants and sales personnel, encouraging them to carry a brand's products to sell to consumers.
push
Conformability
refers to the extent that a marketing communication option is robust and effective for different groups of consumers. 222 Multiple information provision strategy Broad information provision strategy:
Indirect channels
sell through third-party intermediaries such as agents or broker representatives, wholesalers or distributors, and retailers or dealers. 171 the most visible and direct contact with customers and therefore have the greatest opportunity to affect brand equity.
Direct channels
selling through personal contacts from the company to prospective customers by mail, phone, electronic means, in-person visits, and so forth.
Place/ Out-of-Home advertising (nontraditional, alternative, support)
serves as a compliment, unusual spots/experiential billboards and posters; movies, airlines, lounges, and other places; product placement; and point-of-purchase advertising. 201 Pros: precise audience, cost-effective, short bursts Cons: hard to measure, consumer backlash to against over commercialization often more effective at enhancing awareness or reinforcing existing brand associations than at creating new ones.
Price segmentation
sets and adjusts prices for appropriate market segments according to their different demand and value perceptions.
What allows brands to establish a public voice and presence on the web? Groupon search engines social media brand relations
social media
Product Strategy
tangible and intangible benefits the product will embody marketing activities that consumers desire A range of possible associations can become linked to the brand. Percieved quality & Aftermarketing
Act marketing
targets physical behaviors, lifestyles, and interactions.