MKTG 330: Exam 3

Antirumor Campaign Elements

-Focus on Specific Points in the Rumor That Need to be Refuted -Emphasize that the Conspiracy or Rumor is Untrue and Unfair -Pick Appropriate Media and Vehicles for Delivering Message -Select a Credible Spokesperson to Deliver the Message on the Company's Behalf.

Coupon Distribution Methods

-Freestanding Inserts (FSIs): Inserts in Sunday newspapers; account for 89.1% of all coupons distributed in the US. -In stores -Direct Mail -Magazines -Newspapers -In- and On-Package -Shelf Delivery -Register Delivery -Internet

Online and Social Group Coupons

-Growing in popularity -Leaves potential for fraud

Factors to Consider in Choosing Events

-Image Matchup -Target Audience Fit -Sponsor Misidentification -Clutter -Complement Other MARCOM Elements -Economic Viability

Immediate vs. Delayed Rewards

-Immediate Reward: One that delivers monetary savings or some other form of benefit as soon as the consumer performs a marketer-specified behavior. -Delayed Reward: Those that follow the behavior by days, weeks, or longer.

POP's Influence on Consumer Behavior

-Informing them about specific items -Reminding them of information acquired from other advertising media. -Encouraging them to select particular brands, sometimes. -Aiding merchandising with effective and efficient use of retail floor space.

Point of Purchase Couponing

-Instantly Redeemable Coupons -Shelf-Delivered Coupons: -Scanner Delivered Coupons -Mobile Phone Coupons

Customized Events

-Some firms develop their own events rather than sponsor existing events. Two major reasons why brand managers choose to customize own events: -Provides a brand total control over the event, eliminating clutter. -There's a good chance that a specially designed event is more effective but less costly than a preexisting event.

Sponsorship Agreements

-Sponsor should try to gain exclusivity so that competitor isnt given same benefits. -A granting of rights should be clear as to what can and cannot be done with the sponsor's brand. -Benefits to the sponsor should be identified -Sponsor needs to control the licensing of their trademarks associated with the event. -Options to renew, escape clauses, insurance (with event risk), accoms. for changes in events, payment terms, and publicity must be considered.

Major Sampling Practices

-Targeting Sample Recipients: Sampling services that specialize in precision distribution have emerged -Using Creative Distribution Methods -Estimating Return on Investment: Evidence that a profit is being turned.

On-Premise Business Signs

-Types: Freestanding (i.e., monument poles, A-frame signs, portable signs, inflatable signs, and other unattached signs) and building mounted (i.e., projecting signs, wall signs, roof signs, etc.).

Utilitarian vs. Hedonic Benefits

-Utilitarian Benefits: Obtaining monetary savings, reducing search and decision costs, obtaining improved product quality made possible by a price reduction that allows consumers to buy superior brands that might not otherwise purchase. -Hedonic Benefits: Accomplishing a sense of being a wise shopper when taking advantage of sales promotions, achieving a need for stimulation and variety when, say, trying a brand one otherwise might not purchase if it weren't for an attractive promotion, obtaining entertainment value when, for ex., consumer competes in promotional contest or participates in sweepstakes, being viewed as "tech savvy", socializing with others on a deal with a group coupon. One's functional, one's emotional.

The VIEW Model in Evaluating Packaging

-Visibility -Information -Emotional Appeal -Workability

Encouraging Repeat Purchases

A brand management objective of sales promotion that aims to hold on to current consumer base by rewarding them for continued purchases.

Generating Purchase Trial and Retrial

A brand management objective of sales promotion that prompt nonusers to try a brand for the first time or to encourave retrial from prior users who have not purchased the brand for perhaps extended periods.

Reinforcing Brand Image

A brand management objective of sales promotion that, for example, can be a premium object or sweepstakes prize that bolster's a brand's image.

Ambushing

An activity that takes place when companies that are not official sponsors of an event undertake marketing efforts to convey the impression that they are. -People thought Visa and American Express sponsored the Olympics, but Visa sponsored, and American Express just heavily advertised during it.

Clutter

Like every marcom communications medium, an event sponsor typically competes with signage and attention from every other company that sponsors the event.

Proactive vs. Reactive MPR

MPR: A narrower aspect of PR involving an organization's interactions with actual or prospective customers. Proactive MPR: A tool for communicating a brand's merits and typically is used in conjunction with other marcom tools such as advertising and sales promotions. -Offensively, rather than defensively oriented and opportunity seeking rather than problem solving. -Product Releases: Publicity tool that announces new products, provides info, and tells consumers where to find more info. -Executive Statement Releases: News releases quoting CEOs, CFOs, etc. -Feature Article: Detailed description of a product or other newsworthy programs that a PR firm writes for immediate publication or airing by print/broadcast media, etc. -Content Marketing: Producing, curating, and sharing (marketer) content that is based on customer's needs and delivers visible value. It is also known as sponsored content. -Native Advertising: Content created or sponsored by a brand that blends in with the surrounding editorial environment. Reactive MPR: Marketing undertaken as a result of external pressures and challenges brought by competitive actions, changes in consumer attitudes, or other external influences. It typically deals with changes that have negative consequences for the organization.

Mail and Media Delivered Coupons

Mail Delivered Coupons FSIs and Other Media Delivered Coupons In and On Pack Coupons Online and Social Group Coupons

Refunds vs. Rebates

Refund: The practice in which manufacturers give cash discounts or reimbursements to consumers who submit proofs of purchase for CPGs. Rebate: A cash reimbursement for purchasing a durable good. -Unlike coupons which customers redeem at retail checkouts, rebates are mailed to manufacturers with proofs of purchases, and are cash rather than gifts. -Rebates are delayed and achieve customer-holding objectives. -Phantom Discounts: People dont usually redeem rebates. -Rebate Fraud: Occurs by manufacturers, retailers, and consumers when they promote rebate offers and then fail to fufill them.

Sweepstakes vs. Contests

Sweepstakes: Winners are determined purely on basis of chance. Contests: A form of consumer-oriented sales promotion in which consumers have an opportunity to win cars, merchandise, or prizes. Usually, there is some "skill" or effort required on the part of participants.

POP Communications

This is the time at which many product and brand-choice decisions are made, where all the elements of the sale (consumer, money, and product) come together. -(i.e., Permanent displays, semipermanent displays, temporary displays, in-store media.)

Strengths of Billboard Advertising

-Broad Reach -High Frequency -Geographic Flexibility -Low Cost per Thousand -Substantial Brand Identification -Excellent Last Reminder Before Purchasing

Limitations of Billboard Advertising

-Demographic Non-Selectivity -Short Exposure Time -Environmental Concerns

Overlay Promotions

The simultaneous use of two or more sales promotion techniques. -Increases likelihood that consumers will attend to a message and process the promotion offer.

Functions of Packaging

-Draw attention to a brand -Break through competitive clutter at the point of purchase -Justify price and value to the consumer -Signify brand features and benefits -Convey emotionality -Motivate consumers' brand choices

Conspicuity of Business Signs

Ability of a sign to capture attention; allows consumers to differentiate from environment.

Relationship Between Brand Management Objectives and Major Consumer-Oriented Sales Promotions (Table 19.1)

(see photo)

FSIs and Other Media Delivered Coupons

-88% of all coupons distributed via Sunday newspaper freestanding inserts -Provides broad exposure -Is relatively cheaper -Serves both reminder and advertising functions -Redemption rate is very low -Don't generate much trade interest -Susceptible to misredemption -Attractive looking and eye catching- particularly effective when consumers know the brand. -Bounce Back Coupons: Requested by consumers via toll-free numbers or online.

Sampling

-Any method used to deliver actual or trial-size products to consumers. Examples: -Direct Mail: Samples are mailed to households targeted by demo. characteristics or in terms of geodemographics. -Newspapers and Magazines: Samples within these. -Door to Door Sampling: Allows for considerable targeting and possesses advantages such as lower cost and short lead times -On- or In-Pack Sampling: This method uses the package of another product to serve as as the sample carrier. -High-Traffic Locations and Events: Public places offer valuable forums for sample distribution. -Sampling at Unique Venues -In-Store Sampling -Online Sampling

In and On Pack Coupons

-Are Included either in or on the product's package -Cannot be removed at the point of purchase; it's for next purchase -May use a coupon to promote one brand by another brand (crossruffing) -Have bounce-back value -Have no distribution costs -Have higher redemption rates -Offer delayed value to consumers -Don't reach nonusers of the carrying brand

Functions of On-Premise Business Signs

-Attract New Customers' -Brand the Retail Site in Consumers' Minds -Create Impulse Buying Decisions

Event Sponsorship

A form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social or other type of high-interest public activity -i.e., NASCAR

Price-Offs

A form of sales promotion that entails a reduction (typically ranging from 10% to 25%) in a brand's regular price. -From of immediate reward for consumers to encourage repeat purchasing. -AKA, cents-off or price packs. -Clearly labelled on a package. -Effective when the marketer's objective is: to reward present brand users, to get consumers to purchase larger quantities, establish repeat-purchase pattern after initial trial, ensure that promotional dollars do get to consumers, obtain off-shelf space, provide sales force w/ incentives to obtain retailer support. -Retailers often dislike b/c they create inventory and pricing problems; however, strong consumer appeal.

Bonus Packs

A form of sales promotion whereby extra quantities of the product that a company makes are made available to consumers at the regular price. -Immediate reward serving as a repeat purchase objective. -Alternative to price-off deals -Effective in loading current users.

Premiums

A merchandise or services manufacturers offer as a form of gift to induce action the part of consumers and possibly also retailers and the sales force. -Free with Purchase Premiums -Mail In and Online Offers -In-and-On-Pack Premiums -Near-Pack Premiums -Self-Liquidating Offers

In-and-On-Pack Premiums

A premium offer that includes a free item inside or attached to a package or makes the package itself the premium item. -Offers immediate value and thereby encourage increased product consumption from consumers who like or prefer the premium-offering brand.

Near-Pack Premiums

A premium offer that provides the retail trade with specially displayed premium pieces that retailers then give to consumers who purchase the promoted product.

Couponing

A promotional device that rewards consumers for purchasing the coupon offering brand by providing either cents-off savings or free merchandising.

Shelf-Delivered Coupons

Attached to shelf alongside coupon sponsoring brands.

Commercial vs. Conspiracy vs. Contamination Rumors

Commercial Rumor: A widely circulated but unverified statement about a product, brand, company, store, or other commercial target. (i.e., Because Mt. Dew has Yellow Dye, men lose sperm count) Conspiracy Rumor: A widely circulated but unverified statement that involves supposed company policies or practices that are threatening or ideologically undesirable to consumers. (i.e., Founder of Popeyes supported a politician known to have KKK and Nazi connections.) Contamination Rumor: A widely circulated but unverified statement dealing with undesirable or harmful product or store features. (i.e., In Reno, rumors about urine being in Corona because it was produced in Mexico were spread by a competitor.)

Brand Management Objectives of SP

Generating Purchase Trial and Retrial Encouraging Repeat Purchases Reinforcing Brand Images

Mail Delivered Coupons

Have 95% household penetration rate Have highest redemption rate of all mass-delivered coupons (3.5%) Increase the amount of product purchases Are relatively expensive Are Inefficient and expensive for brands enjoying a high market share

Complement Other MARCOM Elements

In event sponsorship, does the event complement existing sponsorships and fit with other marcom programs for the brand? -Important for events to speak with a single voice.

Target Audience Fit

In event sponsorship, does the event offer a strong likelihood of reaching the desired target audience?

Sponsor Misidentificaiton

In event sponsorship, is this event one that the competition has previously sponsored, and therefore is there a risk of being perceived as "me-too-istic" and confusing the target audience as to the sponsor's identity?

Economic Viability

In event sponsorship, what are the budget constraints? -Two to three times the cost of a sponsorship must be spent in properly supporting it.

Image Matchup

In event sponsorship, will the event be consistent with brand image and will it benefit the image?

Emotional Appeal

In the VIEW model, concerns a package's ability to evoke a desired feeling or mood.

Information

In the VIEW model, deals with various forms of product information that are presented on packages.

Workability

In the VIEW model, refers to how a package functions rather than how it communicates. -Does the package protect the product contents? -Does it facilitate easy storage on part of both retailers and consumers? -Does it simplify the consumer's task to accessing and using the product? -Does it protect retailers from unintentional breakage? -Is the package environmentally friendly?

Visibility

In the VIEW model, the ability of a package to attract attention at the point of purchase.

Word of Mouth Influence

Informal communication among consumers about products and services. Strong and Weak Ties: -Strong Ties: i.e., Frequent and often intimate communications between friends. -Weak Ties: i.e., Rare interactions between casual acquaintances. Opinion Leaders: A person within a social network of family, friends, and acquaintances who has particular influence on other individuals' attitudes and behaviors.

Self-Liquidating Offers

Known as SLOs by practitioners, this form of premium requires that a consumer mails in a stipulated number of proofs of purchase along with sufficient money to cover the manufacturer's purchasing, handling, and mailing costs of the premium item. -Consumers pay for actual cost, not retail price. -From manufacturer's expected, "cost-free".

Mobile Phone Coupons

Offers shopper a way to quickly access a coupon mobily. -Sometimes merged with loyalty programs.

Instantly Redeemable Coupons

Peeled from the package and designed to be removed by the consumer and redeemed at checkout when purchasing the brand carrying the coupon. -Can also be received on smartphone. -Higher value coupons signaled higher prices to consumers; especially true when consumers unfamiliar.

Mail In and Online Offers

Premiums in which consumers receive a free item from the sponsoring manufacturer in the mail or online in return for submitting a required number of proofs of purchase or taking some action related to the brand. -Delayed reward to consumers that is primarily designed to generate trial purchases.

Free with Purchase Premiums

Premiums that represent a delayed reward to consumers that are primarily designed to generate trial purchases. -Perceived value of a premium the or gift depends on the value of the brand that is offering the gift.

Continuity Promotions

Promotions that reward consumers for purchasing a particular brand repeatedly or shopping regularly at a particular store. Also referred to as reward, loyalty, or point programs.

Unplanned Purchases

Purchases made in a retail outlet that are different from those the consumer planned to make prior to entering that retail outlet.

Tie-In Promotions (Intra-Company vs. Inter-Company)

The simultaneous promotion of multiple brands in a single-sales promotion effort. -Cost-effective b/c cost is shared across brands. Intracompany: A sales promotion involving two or more distinct products within the same company. Intercompany: A sales promotion involving two different companies offering complimentary products.

Brand Lift Index

Used by retailers to measure the incremental sales that occur when a product is on display.

Consumer Rewards from SP

Utilitarian vs. Hedonic Benefits Immediate vs. Delayed Rewards

Buzz Creation vs. Viral Marketing

Viral Marketing: Techniques that use social networks to increase brand awareness or other marketing objectives, through a self-replicating, viral process, similar to the spread of a virus. -Law of the Few: Deals with messenger; only takes a few well-connected people to start an epidemic. The people capable of starting "commercial epidemics" know a lot of people, receive satisfaction from sharing info, and innately persuasive in advocating products and brands. -Stickiness Factor: Deals with nature of message; are messages that are attention catching and memorable and facilitate talk about the brand. -Power of Context: Indicates that circumstances and conditions have to be right for a persuasive message a connector conveys to have its impact and initiate and epidemic. Buzz Creation: The systematic and organized effort to encourage people to talk favorably about a particular item- either over the fence or online- and to recommend its usage to others who are part of their social network. -Each person in their own social system can be considered a node who are connected to additional nodes (people). -Large number of contacts: influentials. To be spread: design product to be unique or visible, select and seed the vanguard, ration supply, use celebrity icons, tap the power of lists, and nurture the grass roots.