MKT final

Steps in planning and executing an Ad Campaign

1. identify target market. 2. set advertising objectives. 3. determine the advertising budget 4. convey the message 5. evaluate and select media 6. create advertisements 7. assess impact

Passive/online

Direct marketing (email marketing)

Interactive/online

Direct marketing (mobile marketing), Online marketing (blogs, social media)

Online marketing

Websites, blogs, social media

media buy

actual purchase of air time or print pages, generally the largest expense in advertising budget

public service advertisements

ad focus is on public welfare; generally sponsored by non-profits; inform persuade and remind for the betterment of society; represent a form of social marketing (the application of marketing principles to a social issue to bring about behavioral change among general public)

product focused advertisements

ad focus is to inform, persuade, or remind consumers about a specific product or service

institutional advertisements

ad focus is to inform, persuade, or remind consumers about issues related to places, politics, or an industry (ex: got milk campaign)

Pulsing schedule

ad schedule combines continuous and flighting schedules by maintaining a base level of advertising but increasing intensity during certain periods (airlines, hotels, car rental companies might increase advertising in spikes during certain low demand periods)

Flighting schedule

ad schedule implemented in spurts with periods of heavy advertising followed by periods of no advertising; pattern generally functions for products with fluctuating demand (i.e suntan lotion)

continuous schedule

ad schedule runs steadily throughout the year and therefore is suited to products consumed continually at relatively steady level of persuasive/reminder advertising (ex: Tide is advertised continuously)

premium

adv- builds goodwill, increases perception of value disadv- consumers buy for premium not product, has to be carefully managed

deals

adv- encourages trial, reduces consumer risk disadv- may reduce perception of value

contests

adv- increases consumer involvement, generates excitement disadv- requires creativity, must be monitored

sweepstakes

adv- increases involvement with the product disadv- sales often decline after

coupons

adv- stimulate demand, allow for direct tracking of sales disadv- has low redemption rates, high cost

samples

adv-- encourage trial, offers direct involvement disadv- has high cost to firm

Radio

advantage- relatively inexpensive, can be selectively targeted, wide reach. disadvantages- no video, consumers give less focused attention, exposure periods are short

outdoors

advantage- relatively inexpensive, offers opportunities for repeat exposure disadvantage- not easily targeted, has placement problems in some markets, short exposure time

internet

advantages- can be linked to detailed content, highly flexible and interactive, allow for specific targeting disadvantages- becoming cluttered, may be blocked by software

newspapers

advantages- flexible, timely, able to localize disadvantages- can be expensive, have short life span

direct marketing

advantages- highly targeted, allow for personalization disadvantages- cost can vary depending on type of direct marketing used, traditional media like mail is more expensive than newer media

Magazines

advantages- very targeted, subscribers pass along to others. disadvantages- relatively inflexible, take some time for magazine to be available

TV

advantages- wide reach, incorporates sound and video disadvantages- high cost, a lot of channel and program options, may increase awareness of competitors products

Passive/offline

advertising, sales promotions (coupons), public relations, direct marketing (catalogs)

D-desire

after the firm has piqued the interest of target market, the goal of IMC messages should move the consumer from 'i like it' to 'I want it' (ex: if Allstar Weekend appears no Good Morning America (owned by disney) and talks about upcoming tour, the viewing audience is more likely to demand access)

Awareness metrics

aided recall and top-of-mind awareness

search engine marketing

allows advertisers to show up in the sponsored links section of the search results page based on the keywords potential customers use

emotional appeal

appeal that aims to satisfy consumers emotional desires rather than their utilitarian needs; appeals focus on feelings about the self; key is to use emotion to create a bond between the consumer and the brand (fear, safety, humor, happiness, love, comfort, nostalgia)

informational appeal

appeal to help consumers make purchase decisions by offering factual information that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provides (ex: Exxon attempts to explain technical aspects of products to convince consumers that they are environmentally friendly and responsible)

The appeal (step 4)

appeals portray the product or service and persuade consumers to purchase them- informational vs. emotional

clicks

as in mouse clicks, are used to assess the effectiveness of advertising expenditures.

cause related marketing

commercial activity in which businesses and charities form a partnership to market an image, product, service for their mutual benefit

reminder advertising

communication used to remind or prompt repurchases (especially for those products that have gained market acceptance and are in the maturity stages of their life cycle) (ex: if you buy tissue paper you dont carefully consider the different kinds, you grab the first thing you see) (end of aisle displays prompt you to by that one because its the first thing you see)

3. determine advertising budget

considerations- firms must consider the role that advertising plays in their attempt to meet overall promotional objectives; expenditures vary over the course of the product life cycle; consider the nature of the market and product influence the size of advertising budget

Aided recall

consumers indicate they know the brand when the name is presented to them

advertising schedule

continuous, pulsing, flighting- specify the timing and duration of advertisement

types of sales promotion

coupons, deals, premium, contest, sweepstakes, sampling, loyalty programs, pop displays, rebates, product placement

Objective-and-task method

determines the budget required to undertake specific tasks to accomplish communication objectives. To use this method, marketers set objectives, choose media, and determine costs (this is repeated for each product/service). The sum of all individual communication plan budgets become firms total marketing communications budget

7. assess impact using marketing metrics

effectiveness of an advertising campaign must be assessed before, during, and after the campaign has run. Pretesting, tracking, posttesting

goals

firms need to understand the outcome they hope to achieve before they begin. can be short-term: such as generating inquiries, increasing awareness, prompting trial. or can be long term such as increasing sales, market share, and customer loyalty. goals should be explicitly defined and measured, they may change over time. goals constitute part of the overall promotional plan

Websites

firms use websites to build their brand image and educate customers about their products or services; firms offer websites devoted to community building- give customers with similar interests opportunity to learn about products that support their hobbies and share info with others. often retailers websites have customer reviews

top-of-mind awareness

highest level of awareness- occurs when consumers mention a specific brand name first when they are asked about a product or service- brand enters evoked set. Top of mind awareness is established by having memorable names, exposing their name through advertising, locations, sponsorship, and using memorable symbols (ex: Harley Davidson has top-of-mind awareness if a consumer responds "Harley" when asked about American made motorcycles) (ex: Disney uses multi channel approach to raise their "product" and brand name, Hannah Montana has a show, songs, merchandise)

gross rating points

how marketing communication managers slate their media objectives- represents reach multiplied by frequency (GRP= reach x Frequency) . can refer to print, radio, or TV

frequency

how often the audience is exposed to a communication within a specific period of time

brand elements

identify the sponsor of the ad, typically a logo and unique selling proposition

2. set advertising objectives

inform, persuade, remind- derived from overall objectives of marketing program and clarify the specific goals that the ads are designed to accomplish

Public relations

involves managing communications and relationships to achieve various objectives (building and maintaining a positive image of the firm and positive relationships with media)

headline

large type in ad that is designed to draw attention

4. convey the message

marketers must determine what they want to convey about the product. first determine key message to communicate to audience, second decide what appeal would most effectively convey the message

Direct marketing

marketing that communicates directly with target customers to generate a response or transaction. includes mail and catalogs sent through mail, or e mail and mobile marketing. (has received greatest increase in aggregate spending) fastest growing element of IMC, includes e-mail and m-commerce, good for multicultural groups, database technology allows marketers to track consumers over time and across purchase situations. differs on the interactivity and online/offline dimensions of matrix. (ex: omaha steaks sends coupons via email for meals customers have previously purchased.

mobile marketing

marketing through wireless hand held devices (cell phones)

web tracking software

measures how much time viewers spend on particular web pages, the number of pages they view, how many times users click on baner ads, which site they came from

Social Media

media content distributed through social interactions. YouTube, Facebook, and twitter are the most popular- consumers review, communicate about, and aggregate information about products, prices, promotions. Allows users to interact among themselves; helps facilitate the consumer decision process by encouraging need recognition, information search, alternative evaluation, purchase, and post purchase reviews.

5. evaluate and select media

media planning, media mix, media buy (mass media/niche media)

tracking

monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium

niche media

more focused and generally used to reach narrower segments with unique demographic characteristics (TV channels- Home and Garden; magazines- Cosmo Girl) (billboard in a specific community for McDonalds)

AIDA Model

most common series of mental stages which suggests that Awareness leads to Interest, which leads to desire, which leads to Action. At each stage the consumer makes judgements about whether to take the next step in the process.

mass media

national newspapers, magazines, radio, TV are ideal for reaching large numbers of anonymous audience members (billboard on major highway for McDonalds)

Elements of an IMC

no single channel is necessarily better than another. the goal of IMC is to use the strategies together, reaching the right audience is becoming more difficult. Can be passive and interactive (from customer perspective) and online and offline- Advertising, PR, Sales promotion, personal selling, direct marketing, online marketing

selling and allocating IMC budget

no single method should be used in isolation- firms use a variety of methods to plan their marketing communications budgets. (objective task method, rule of thumb method)

measuring success using marketing metrics

once a firm has decided how to set its budget for marketing communications and its campaigns have been developed and implemented, it reaches the point that it must measure the success of the campaigns. each step in IMC process can be measured to determine how effective it has been in motivating customers. (frequency, reach, gross rating points, web tracking)

I-interest

once the consumer is aware that the company/product exists, communication must work to increase their level of interest. Consumers must be persuaded that it is a product worth investigating. Marketers persuade them by ensuring that the ad's message includes attributes that are of interest to the target audience (ex: Disney increases interest in an upcoming tour or record by including a mention in the stars television show because the target market for the tour is probably the same as those who watch the show)

Public Relations

organizational function that manages the firms communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events. relatively passive, like advertising, in that customers dont have to take any action to receive it. PR activities support other promotional efforts by generating 'free' media attention. can be aimed at both end user consumers or channel members. used in conjunction with other forms of IMC. can be used for short term or long term objectives. push strategy, pushing product out there hoping consumers buy it.

advertising

paid form of communication, delivered through media from an identifiable source; is not free; must be carried by some medium; legally, the source of the message must be known or knowable; represents a persuasive form of communication designed to get the consumer to take some action (word of mouth/political advertising is not technically advertising because its not for commercial purposes.)

Blogs

periodic posts on a common webpage; can communicated trends, announce special events, create positive word of mouth, connect customers. supposed to be transparent and contain authors honest observations. becoming more interactive today as communication between bloggers and customers has increased. can be linked to other social media such as microblog, Twitter. ex: nuts about southwest- southwest airlines blog to connect flyers with employees and let them in on the culture

Interactive/offline

personal selling, sales promotions (contests), direct marketing (telemarketing)

Media planning

process of evaluating and selecting the media mix

online couponing

promotional web technique in which consumers print a coupon directly from the site and then redeem the coupon in a store.

the message (step 4)

provides target audience with reasons to respond in the desired way; to decide, tout the key benefits of the product; message should communicate its problem solving ability clearly and in compelling fashion; establish its unique selling proposition

PR toolkit

publications: brochures, special-purpose single-issue publications such as books; video and audio: programs, public service announcements; annual reports; media relations: press kits, news releases, speeches, event sponsorships; electronic media: websites, email campaigns

pretesting

refers to assessments performed before an ad campaign is implemented to ensure the various elements are working in an integrated fashion and doing what they are intended to do

6. create advertisements

step following the decision of the message, ad type, appeal and attention shifts. message and appeal are translated into words pictures or music- type of medium determines execution style, creativity plays major role in execution stage, creativity should not overshadow the message, the execution style must match the medium and objectives (headline, subhead, body copy, brand elements)(should be short and simple- include primary benefits, name of brand, and interest provoking idea)

1. identify target audience

success of advertising program depends on how well the advertiser can identify its ______ audience. during research firms must keep in mind that their target audience may or may not be the same as current users of the product (ex: adidas may feature an NBA star and pop star in their ads to attract athletes and teenaged music fans)

reach

the % of the target population exposed to a specific marketing communication, such as an advertisement, at least once

media mix

the combination of the media used and the frequency of advertising in each medium

posttesting

the evaluation of the campaigns impact after it is has been implemented; advertisers assess the sales and or communication impact of the advertisements or campaign

pull strategy

the goal of this strategy is to get consumers to pull the product into the marketing channel by demanding it

push strategy

this strategy is designed to increase demand by focusing on wholesalers, retailers, or salespeople (attempt to motivate seller to highlight the product)

A-action

ultimate goal of any marketing communication is to drive the receiver to action. Consumers will likely act on their interest by searching for product or making a purchase if the message has caught consumers attention and made them interested enough to consider the product as a means to satisfy a specific desire.

Planning and measuring IMC success

understand the outcome they hope to achieve, short term or long term, should be explicitly defined and measured.

persuasive advertising

used once firm has gained certain level of brand awareness; used to motivate customers to take action; generally occurs in the growth and early maturity stages of the product life cycle when competition is most intense; in later stages it may be used to re position an established brand by persuading consumers to change their existing perceptions. (ex: often used by firms live CoverGirl to convince consumers to take action, switch brands, try new peoducts)

Rule of thumb method

used to set budgets- uses prior sales and communication activities to determine the present communication budget. easy to implement but has various limitations.

informative advertising

used to tell their customers about an upcoming sale or event or the arrival of new merchandise; used to create and build brand awareness

online referring

when consumers fill out an interest or order form and are referred to an offline dealer or firm that offers the product or service of interest

event sponsorship

when corporations support various activities in the cultural or sports and entertainment sector

advertising plan

where advertising objectives appear- subsection of firms overall marketing plan (crucial because it will serve as the yardstick against which ad success or failure is measured)

Unique selling proposition (USP)

"value proposition"- the common theme or slogan in an advertising campaign- a good USP communicates the unique attributes of the product and becomes a snapshot of the entire campaign. (ex: red bull- gives you wings; Nike- just do it; state farm insurance- like a good neighbor, state farm is there; TNT- we know drama)

click through rate (CTR)

# of times a user clicks on an add divided by # of impressions

impressions

# of times ad appears in front of users, used to estimate reach

Advertising

Entails the placement of announcements and persuasive messages in time or space purchased in any of the mass media. extremely effective for creating awareness of product and generating interest. Most visible element of IMC. Relies on certain images, traditionally has been passive and offline

Relevance

____ of ad describes how useful an ad message is to the consumer doing the search

lagged effect

a delayed response to a marketing communication campaign (generally takes several exposures to an add before a consumer fully processes its message)- measuring effect of a current campaign becomes more difficult because of lagged effect of previous ones. advertising does not always have an immediate impact, multiple exposures (often 3) are necessary before it impacts you, it is difficult to determine which exposure led to purchase (ex: "Prius goes plural" promotes addition of family sized car (v) and urban version (c) of its hybrid car. The campaign demands consumer participation to make Prius plural, but the Prius V was not released until 6 months after campaign and the lag time for Prius C was even longer.)

Brand awareness

a potential customers ability to recognize or recall that the brand name is a particular type of retailer or product/service (the strength of the link between the brand name and the type of merchandise or service in minds of consumer) (ex: coca-cola has excellent brand awareness so they don't have to focus so much on this step when they want to introduce a new flavor. Jay Z needed to exert more effort when he wanted to promote his memoir to get people to think of him as an author)

body copy

represents main text portion of the ad; used to build on interest generated by the visual and headlines, more in depth explanation

ROI

sales rev - ad costs/ ad cost

A- awareness

sender must gain attention of consumer first- consumer must be aware.

subhead

smaller headline in addition to the headline, provides more information about the product (should be short and simple- include primary benefits, name of brand, and interest provoking idea)

personal selling

some products require the help of a sales person. the two way flow of communication between a buyer and a seller that is designed to influence the buyers purchase decision. can take place in various settings: face to face, video teleconference, on the phone, over the internet. especially important in B2B settings. the cost of personal selling is high but it is most effective way to sell certain services/products. sales persons simplify the buying process and can add significant value, which makes the expense worth it.

Sales promotion

special incentives or excitement-building programs that encourage the purchase of a product or service (coupons, rebates, free samples, point of purchase displays, contests). marketers usually design these incentives for use in conjunction with other advertising or personal selling programs. free samples or point of purchase displays are designed to build short term sales, contests and sweepstakes are designed to build customer loyalty