Objective Learning 1-7

In-House Agency

Advertising agency that is set up, owned, and operated by the advertiser. -Reduces advertising and promotion costs. -Allows companies to maintain tighter control. -Critics worry about experience and objectivity.

Describe the influence of social media on the consumer decision process.

"social media is a unique component of the consumer decision journey: it's the only form of marketing that can touch consumers at each and every stage, from when they're pondering brands and products right through the period after a purchase, as their experience influences the brands they prefer and their potential advocacy influences others."

Maslow's Hierarchy of needs

(Lower-level physiological and safety needs must be satisfied before higher-order needs become meaningful.) (1) physiological —the basic level of primary needs for things required to sustain life, such as food, shelter, clothing, and sex; (2) safety —the need for security and safety from physical harm; (3) social/love and belonging —the desire to have satisfying relationships with others and feel a sense of love, affection, belonging, andacceptance; (4) esteem —the need to feel a sense of accomplishment and gain recognition, status, and respect from others; and (5) self-actualization —the need for self-fulfillment and a desire to realize one's own potential.

Describe the role of advertising and other promotional elements in marketing

-Advertising and other forms of promotion are an integral part of the marketing process in most organizations -The basic task of marketing is to combine the four controllable elements, known as the marketing mix, into a comprehensive program that facilitates exchange with a target market. The elements of the marketing mix are the product or service, price, place (distribution), and promotion.

The Decentralized System

-Used by firms with multiple divisions and many different products. -Each product or brand is assigned to a brand manager. "An organizational system whereby planning and decision-making responsibility for marketing, advertising, and promotion lies with a product/brand manager or management team rather than a centralized department." (Brand manager: Responsible for total management of the brand, including planning, budgeting, sales, and profit performance. Category management system: Additional layer of management above brand managers.)

Customer-initiated touch points (Contact Points)

-are interactions that occur whenever a customer or prospect contacts a company. -most of these contacts involve inquiries or complaints consumers might have regarding the use of a product or service and occur through calls made directly to the company, via e-mails, or through specific sections of websites to which customers are directed. -many of the customer-initiated contacts are handled through customer service departments, although a number of companies have in-bound telemarketing departments as part of their direct sales efforts.

Intrinsic touch points (Contact Points)

-are interactions that occur with a company or brand during the process of buying or using the product or service such as discussions with retail sales personnel or customer service representatives. -intrinsic touch points are often not under the direct control of the marketing department or IMC program. -(experienced while purchasing or using a product or service the "how of the experience")

Company Planned (Contact Point):

-are planned marketing communication messages created by the company: -such as advertisements, websites and social media sites, news/press releases, packaging, brochures and collateral material, sale promotions, and point-of- purchase displays along with other types of in-store décor. -company-created touch points account for a large part of an IMC program and have the advantage of being under the control of the marketer.

Unexpected touch points (Contact Points)

-are unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization. -probably the most influential type of unexpected contact is a word-of-mouth message which refers to a personal communication that comes from friends, associates, neighbors, co-workers, or family members. -unexpected messages may also come from other sources such as the media which may print or broadcast stories about a company and/or its brands, as well as experts who write about products and services. -another type of unexpected touch point that has become very influential is websites and apps that provide reviews of products and services. some of these sites provide expert reviews while others give reviews from other customers.

Describe positioning and repositioning strategies: Positioning:

-defined as "the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition." Positioning strategies generally focus on either the consumer or the competition. While both approaches involve the association of product benefits with consumer needs, the former does so by linking the product with the benefits the consumer will derive or creating a favorable brand image

Positioning Strategies:

-product attributes and benefits -price/quality -use or application -product class -product user -competitor -cultural symbols

Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy.

-the receiver can be analyzed with respect to both its components (i.e., individual, group, or mass audiences) and the response process it goes through several models of the response process have been developed, including the AIDA, innovation adoption, and hierarchy of effects model. Alternative orderings of the traditional response hierarchy are possible, including the standard learning and low involvement models.

Identify decision factors involved in selecting a source for a promotional message.

1. Credibility is the extent to which the recipient sees the source as having relevant knowledge, skill, or experience and trusts the source to give unbiased, objective information. 1. Information from a creditable source influences beliefs, opinions, attitudes and/or behavior through a process as internalization , which occurs when receiver adopts the opinion of the credible communicator since he or she believes information from this source is accurate. 2. attractiveness is known as familiarity, and likability. Similarity is a supposed resemblance between the source and the receiver of the message, while familiarity refers to knowledge of the source through exposure. (Likability is an affection for the source as a result of physical appearance, behavior, or other personal traits. Even when the sources are not athletes or movie stars, consumers often admire their physical appearance, talent, and/or personality.) 2. Source attractiveness leads to persuasion through a process of identification , whereby the receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences, or behavior. Maintaining this position depends on the source's continued support for the position as well as the receiver's continued identification with the source. If the source changes position, the receiver may also change. Unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. The receiver may maintain the attitudinal position or behavior only as long as it is supported by the source or the source remains attractive. 3. A source has power when he or she can actually administer rewards and punishments to the receiver. As a result of this power, the source may be able to induce another person(s) to respond to the request or position he or she is advocating. The power of the source depends on several factors. The source must be perceived as being able to administer positive or negativesanctions to the receiver (perceived control) and the receiver must think the source cares about whether or not the receiver conforms (perceived concern). The receiver's estimate of the source's ability to observe conformity is also important (perceived scrutiny). When a receiver perceives a source as having power, the influence process occurs through a process known as compliance. The receiver accepts the persuasive influence of the source and acquiesces to his or her position in hopes of obtaining a favorable reaction or avoiding punishment. The receiver may show public agreement with the source's position but not have an internal or private commitment to this position. Persuasion induced through compliance may be superficial and last only as long as the receiver perceives that the source

Identify the contact points between marketers and their target audiences

1. company planned 2. intrinsic 3. unexpected 4. customer initiated.

Discuss the variables in the communication system and how they influence consumers' processing of promotional messages.

1. source 2. message 3. and channel factors. Decisions regarding each of these variables should consider their impact on the various steps of the response hierarchy the message receiver passes through. The persuasion matrix helps assess the effect of controllable communication decisions on the consumer's response process.

Parts of Marketing Mix

1.Product/Service 2.Price 3.Place (distribution) 4.Promotion

Describe the steps in the IMC planning process

1.a review of the marketing plan 2.promotional program situation analysis 3. analysis of the communication process 4. budget determination 5. development of an integrated marketing communications program 6.integration and implementation of marketing communications strategies 7.monitoring, evaluation, and control of the promotional program

Decentralized (Advantages/Disadvantages):

Advantages: -Concentrated managerial attention -Rapid response to problems and opportunities -Increased flexibility Disadvantages: -Ineffective decision making -Internal conflicts -Misallocation of funds -Lack of authority -Internal rather than external focus

In-House Agency (Advantages/Disadvantages):

Advantages: -Cost savings -More control -Increased coordination -Stability -Access to top management Disadvantages: -Less experience -Less objectivity -Less flexibility -Less access to top creative talent

Centralized (Advantages/Disadvantages):

Advantages: -Facilitated communications -Fewer personnel required -Continuity in staff -Allows for more top-management involvement Disadvantages: -Less involvement with and understanding of overall marketing goals -Longer response time Inability to handle multiple product lines

Explain how to select, compensate, and evaluate advertising agencies.

Agency Selection: Agency Compensation(3): -commission -some type of fee arrangement - percentage charges Agency Evaluation:(2) -One financial and operational and the other more qualitative. -The financial audit focuses on how the agency conducts its business. It is designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers. -The qualitative audit focuses on the agency's efforts in planning,developing, achieved. and implementing the client's advertising programs and considers the results achieved.

Discuss behavioral learning theory and cognitive learning theory.

Behavioral learning occurs through the use of reinforcers. While Ray shows that trial purchase behavior may also occur as a function of advertising repetition, such behavior is often stimulated by the use of promotional devices Cognitive learning theory refers to the way consumers learn about the product through analysis and evaluation Cognitive processes such as perception, formation of beliefs about brands, attitude development and change, and integration are important to understanding the decision-making process for many types of purchases. The subprocesses examined during our discussion of the five-stage decision process model are all relevant to a cognitive learning approach to consumer behavior.

Discuss sales versus communications objectives.

Communication objectives will focus on measuring the attitudes your customers have towards your brand such as its credibility and customer satisfaction. Marketing objectives will be measuring the behaviors of your customers: their visits, rate of purchases, and requests for information.

Describe how companies organize for advertising and integrated marketing communications functions.

Companies use three basic systems to organize internally for advertising and promotion. 1. Centralized System 2. Decentralized System 3. In-House Agencies

Discuss why an understanding of consumer behavior is valuable in developing advertising and promotional programs.

Consumer behavior can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires. -the advertiser (or client), (the key component) -advertising agencies -media organizations -specialized communication services -collateral services -the advertiser (or client), (the key component) clients , are the key participants in the process. -advertising agency , an outside firm that specializes in the creation, production, and/or placement of the communications message and that may provide other services to facilitate the marketing and promotions process. -agency of record (AOR) , which is a single agency that has primary responsibility for most of the IMC services that the company or brand might require, such as brand and creative strategy, media planning, development and maintenance of websites, and digital marketing. -Media organizations are another major participant in the advertising and promotions process. The primary function of most media is to provide information or entertainment to their subscribers, viewers, or readers. -collateral services , the wide range support functions used by advertisers, agencies, media organizations, and specialized communication firms.

Explain the influence of external factors like culture and subculture.

Culture , or the complexity of learned meanings, values, norms, and customs shared by members of a society. Cultural norms and values offer direction and guidance to members of a society in all aspects of their lives, including their consumption behavior. Within a given culture are generally found smaller groups or segments whose beliefs, values, norms, and patterns of behavior set them apart from the larger cultural mainstream. These subcultures may be based on age, geographic, religious, racial, and/or ethnic differences.

Identify the role and functions of specialized marketing communication organizations.

Direct-response agencies, sales promotion agencies, and public relations firms are important to marketers in developing and executing IMC programs in the United States as well as international markets. Let us examine the functions these organizations perform.

Identify the types of advertising agencies and the roles they play.

Full-service agencies Account services Marketing services Creative services Management and finance Agency Organization and Structure Creative boutiques Media specialist companies

Parts of Market Segmentation

Market segmentation is dividing a market into distinct groups that: (1) have common needs and (2) will respond similarly to a marketing action.

Discuss the role of word-of-mouth influence and viral marketing.

Marketers often try to generate WOM through viral marketing, which refers to the act of propagating individual consumers. marketing-relevant messages through the help and cooperation of individual consumers. Marketers, along with their agencies, work to draw attention to their brands in a variety of ways such as encouraging consumers to create user-generated content (UGC)—pictures, videos, product usage ideas— that can be shared with others on their websites or through social media sites such as Facebook, Twitter, Instagram, and YouTube. (Members of one's social networks such as friends, neighbors, associates, co-workers, or family members are also personal channels of communication and represent word-of-mouth (WOM) influence, which can be a very powerful source of information.)

Centralized System:

Marketing activities are divided along functional lines. "An organizational system whereby advertising along with other marketing activities such as sales, marketing research, and planning are divided along functional lines and are run from one central marketing department." (Advertising manager is responsible for: Administration and execution. Coordination with other departments. Coordination with outside agencies and services.)

Identify the marketing-mix decisions that influence advertising and promotional strategy.

Once the target marketing process has been completed, marketing program decisions regarding product, price, distribution, and promotions must be made. All of these must be coordinated to provide an integrated marketing communications perspective, in which the positioning strategy is supported by one voice. Thus all product strategies, pricing strategies, and distribution choices must be made with the objective of contributing to the overall image of the product or brand. Advertising and promotion decisions, in turn, must be integrated with the other marketing-mix decisions to accomplish this goal.

Describe positioning and repositioning strategies: Repositioning:

One final positioning strategy involves altering or changing a product's or brand's position. -a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions

Describe the communication process and its role in IMC.

Product - A product is a tangible item produced to suffice consumer needs and wants to help provide solution and benefits to consumers. Pricing - From an IMC perspective, the price must be consistent with the perceptions of the product, as well as the communications strategy. Distribution - Distribution is another component in marketing mix. It involves the choice of the distribution channel.

Idetinfity the elements of the promotional mix

Promotion is best viewed as the communication function of marketing. It is accomplished through a promotional mix that includes: 1.advertising 2.personal selling 3.publicity/public relations 4.sales promotion 5.direct marketing 6.digital/Internet marketing. Traditionally 4 parts: Advertising, Sales Promotion, Publicity/Public Relations and Personal Selling

The Persuasion Mix

Receiver/comprehension: Can the receiver comprehend the ad? Marketers must know their target market to make their messages clear and understandable. Channel/presentation: Which media vehicles should be used to present the advertising message? When advertisers purchase media, they do so based on exposure potential, or the opportunity for consumers to see their message. Message/yielding: What type of message will create favorable attitudes or feelings? Marketers 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? The large number of ads we are bombarded with every day makes it difficult for advertisers to break through the clutter.

Describe the basic model of the communication process.

Success depends on such factors as the nature of the message, the audience's interpretation of it, and the environment in which it is received. The receiver's perception of the source and the medium used to transmit the message may also affect the ability to communicate, as do many other factors. Words, pictures, sounds, and colors may have different meanings to different audiences, and people's perceptions and interpretations of them vary

Explain how different types of channels influence the marketing communications process.

The channel or medium used to deliver the message was considered. Non-personal vs personal. Information received from personal influence channels is generally more persuasive than information received via the mass media. Alternative mass media can have an effect on communication process as a result of information processing and qualitative factors. The context in which an ad appears and the reception environment are important factors consider in the selection of mass media. Clutter has become a serious problem for advertisers, particularly on TV, where commercials have become shorter and more numerous.

Discuss consumers' cognitive processing of marketing communications.

The cognitive response approach examines the thoughts evoked by a message and how they shape the receiver's ultimate acceptance or rejection of the communication. (The elaboration likelihood model of attitude formation and change recognizes two forms of message processing: 1.the central and peripheral routes to persuasion, which are a function of the receiver's motivation 2. ability to process a message.) There are three critical intermediate effects between advertising and purchase: including cognition, affect, and experience.

Define: Marketing Mix

The controllable elements of a marketing program including product, price, place (distribution), and promotion.

Compare the different types of message structures and appeals.

The design is process. There are various message arguments, visual traits. The advantages and disadvantages of different message appeal strategies were considered, including comparative messages and emotional appeals such as fear and humor. of the advertising message a critical part of the options regarding message structure, including order conclusion drawing, message sidedness, refutation, communication of presentation of and verbal versus

The Persuasion Mix (Long Explanation)

The persuasion mix helps marketers see how each controllable element interacts with the process has sets of variables. Independent variables process, outlined in Chapter 5; the steps goes in being persuaded. Marketers can choose the person or source who delivers the message, the type of message appeal used, and the channel or medium. And although they can't control the receiver, they can select their target audience. The destination variable is included because the initial message recipient may pass on information to others, such as friends or associates, through word of mouth. consumer's are the dependent response The controllable components variables are matrix two of the communication a receiver through

innovation adoption model

The steps preceding the final adopt a new product or service include awareness, interest, evaluation, and trial.

AIDA model

This model depicts the buyer as going through attention, interest, desire, and action stages.

Heirarchy of Effects Model

awareness, knowledge, liking, preference, conviction, purchase

Describe the steps in the consumer decision-making process.

relevant internal psychological processes that relate to each: -Problem recognition - Consumer perceives a problem, need, or want and becomes motivated to solve or satisfy it. -Information search - Looking for information needed to make a decision. -Alternative evaluation - Considering other brands or alternatives. -Purchase decision - Actual purchase of the product or service. -Postpurchase Evaluation internal psychological processes that occur at each stage of the decision process: Motivation - Factors that compel a consumer to take a particular action. Perception - The process by which consumers receive, select, organize, and interpret information to create a meaningful picture. Attitude formation... overall feeling toward, or evaluation of, an object. Integration - The way product knowledge, meanings, and beliefs are combined to evaluate two or more alternatives. Learning - Process by which individuals acquire the purchase and consumption knowledge they apply to future related behavior.

Define: Target Marketing:

the process of identifying the specific needs of segments, selecting one or more of these segments as a target, and developing marketing programs directed to each.