Marketing 420 Exam 1
Integrated Marketing Communication (IMC)
a strategic busn process used to plan, develop, execute, and evaluate coordinated measurable persuasive brand communication programs with consumers, customers, prospects, employees and other relevant external and internal audiences.
Marketing Plan
a written document that describes the overall marketing strategy and programs developed for an organization, a particular product line, or a brand
Direct-response Advertising
a product is promoted through an ad that encourages the consumer to purchase directly from consumer
Contact/Touch Point
each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it
Differentiated Marketing
marketing in multiple segments, developing separate mktg strategies for each
Geographic segmentation
mkt divided into different geographic units (region, city size, metro area, density)
Sales Promotion
mktg activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales
Carryover effect
monies spent on advertising do not necessarily have an immediate impact on sales
Publicity
nonpersonal communications regarding an organization, product, service or idea not directly paid for or run under identified sponsorship
Social Media
online means of communication and interactions among people that are used to create, share, and exchange content such as info, insights, experiences, perspectives and even media themselves
Direct Marketing
organizations communicate directly with target markets to generate a response and/or transaction
Internal Analysis
part of situational analysis, asses relevant areas involving the product/service offering and the firm itself
External Analysis
part of the situational analysis, focuses on factors such as characteristics of the firms customers, market segments, positioning strategies and competitors
personal channels
personal selling and word of mouth
Marketing Channels
place element of the mktg mix - sets of interdependent organizations involved in the process of making a product or service available for use or consumption
IMC
plays a major role in the process of developing and sustaining brand identity and loyalty
Primary v. Selective Demand Advertising
primary - product, what the product does brand - which brand to pick
nonpersonal channels
print media and broadcast media
decoding
process of transforming the senders message back into a thought
Promotional Push Strategy
programs designed to persuade the trade to stock, merchandise and promote a manufacturers products
Integrated Marketing Communication Plan
provides the framework for developing, implementing and controlling the organization's IMC program
Affective
realm of emotions, ads change attitudes and feelings (preference, liking) *competitive ads argumentative appeal or image copy, glamour appeal
Conative
realm of motives, ad stimulates or directs desire (purchase, conviction) *point of purchase or "last chance" offers
Cognitive
realm of thoughts - ads provide info and facts ( knowledge, awareness) *Announcements, descriptive copy, classified ads, slogans, jingles or teaser campaigns
communication is decided by
reciever
Contemporary Perspective of IMC
recognized as a business process, multiple relevant audiences, demand for accountability and measurements of outcomes
Marketing Objectives
refer to what is to be accomplished by overall mktg program
Communication Objectives
refer to what the firm seeks to accomplish with its promotional program
Consumer Oriented Sales Promo
targeted to end-user of product or svc. (i.e. coupons, samples, premiums, rebates, contests, etc.)
Trade Oriented Sales Promo
targeted to resellers - wholesalers, distributors, retailers (i.e. promo and merch allowances, price deals, sales contests, trade shows)
Packaging
has become an increasingly important aspect of product strategy - often the 1st exposure to product
Goal of Branding
(1) build and maintain brand awareness and interest (2) develop and enhance attitudes toward the company, product or svc. (3) build and foster relationship between consumer and the brand
2 Steps to Selecting a Market
(1) determine how many segments to enter (2) determine which segments offer the most potential
Steps of Target Marketing
(1) identify markets with unfulfilled needs (2) determine mkt segmentation (3) select mkt to target (4) position through mktg strategies
Pros of DAGMAR
- focus on communications objective - measurement of stages - better understanding of goals and objectives - less subjective
Cons of DAGMAR
- relies heavily on the response of hierarchy - may not increase sales - practicality and cost - inhibitionIn of creativity
Assumptions for Marginal Analysis
-sales are a direct measure of advertising and promotion efforts -sales are determined solely by advertising and promo
80-20 rule
20% of a brand's buyers account for 80% of their sales volume
The Semiotic Perspective
3 components -object/brand -sign or symbol representing intended meaning - interpret intended meaning
Marketing Mix
4 Ps - price, product, promotion, placement
Models of the Hierarchal Response Process
AIDA, Hierarchy of effects, innovation adoption, info processing
Characteristics of Objectives
Attainable, Realistic, Measurable/quantifiable, specific
Advertising to Business and Professional Markets
B2B professional advertising - to docs, dentists, lawyers trade advertising - wholesalers, distributers, retailers
Objectives for IMC
Communications, planning & decision making, measurement and evaluation
Lavidge and Stiener Hierarchy of Effects Model
Conative, Affective, Cognitive
Main focus of NEW AMA Definition
Creating relationships with customers so they value benefits
What is an advantage of publicity over other forms of promotion?
Credibility
Value
Customer's perception of all the benefits of a product or svc. weighted against all the costs of acquiring and consuming it
DAGMAR
Defining Advertising Goals for Measured Advertising Results
Examples of Direct Marketing
Direct mail, internet sale, shopping channels, catalogs, direct response, telemarketing
Target Market Selection
Done after evaluating market opportunities and doing a competitive analysis and has a direct implications for its advertising and promotional efforts
Main focus of OLD AMA Definition
Exchange - central concept in mktg & use of the basic marketing activities to create and sustain relationships with customers
Developing a Positioning Platform (NIB)
Id competitors, assess perception of them, determine their position, analyze consumer preference, make the positioning decision, monitor the position
Top Down Budgeting
Management sets the spending limit
NEW AMA Marketing Definition
Mktg is the activity, set of institutions, and process for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.
Reasons for the growing importance of IMC
Movement from... 1. media towards multiple forms of advertising 2. mass media towards specialized media 3. manufacturing dominance towards retail dominance 4. general focus towards data based mktg 5. low towards high agency acctability 6. traditional competition towards performance based competition 7. limited to widespread internet access
Advertising to Consumer Markets
National Advertising Retail/local advertising primary vs. selective demand advertising
Publicity Vehicles
News releases, feature articles, press conference, special events, photos
Is repositioning easy to accomplish?
No. Difficult bc of entrenched perceptions and attitudes toward a product or brand
What is an exception to the "paid" aspect of advertising?
PSA - donated by the media
Market Segments
target markets the company wishes to pursue
Price Variable
What the consumer must give up to purchase the product or svc
Brand Identity
a combination of factors: name, logo, symbols, design, packaging, product or service performance, and image or association in the consumers mind`
Cognitive response approach
a method for examining consumers cognitive processing of advertising messages by looking at their cognitive response to hearing, viewing, reading and communicating examines types of thoughts that are evoked by an advertising method
Basic elements of the Promotional Mix
advertising, sales promotion, publicity/PR, personal selling
Interactive Media
allows for a two way flow of communication whereby users can participate in a and modify the form and content of the information they receive in real time
Repositioning
altering a product or brand's position due to: - declining or stagnant sales - anticipated opportunities in the other mkt positions
Brand Equity
an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to company name, brand name, or trademark
Advertising
any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor
Budgeting Methods
arbitrary, percent of sales, ROI, Affordable, competitive parity
Market Opportunities
areas where there are favorable trends, where the company believes customer needs and opportunities are not being satisfied , and where it can compete effectively
Different ways to position products
attiributes/benefits, price/quality, use or application, product class, product user, competitor, cultural symbols
DAGMAR Approach to objectives
awareness - comprehension - conviction - action
Promotional Mix
basic tools used to accomplish an organization's communication objectives
routes to attitude change
central route & peripheral route
stages of hierarchal of effects model
cognitive, affective, behavioral
DAGMAR thesis
communications effects are the logical basis for advertising goals and objectives against which success or failure should be measured
Factors affect sales
compeition, technology, economy, product quality, price, distribution , advertising and promo
Advertising sales/response functions
concave-downward function & S-shaped response curve
2 Categories of Sales Promotion
consumer oriented or trade oriented
product/message thoughts
counterargument/support argument
Communication Objective
derived from mktg plan and more narrow than mktg objective
Marketing Segmentation
dividing a mkt into distinct groups with common needs who respond similarly to a marketing situation
Behavioristic Segmentation
dividing consumers into groups based on their usage, loyalties, or buying responses to a product
Demographic Segmentation
dividing market based on ages, gender, race, life stage, birth era, marital status, etc.
Psychographic Segmentation
dividing mkt based on the basis of personality, lifecycles, and/or lifestyles
Using the Internet as an IMC Tool
educates & informs customer, a persuasive advertising medium, a sales tool or an actual sales vehicle, customer database info, communicates and interacts with buyers, provides customer service and support, builds and maintains customer relationships
concave-downward function
effects of advertising quickly begin to diminish
Public Relations
evaluates public attitudes, identifies the policies and procedures of an individual or organization with public interest, and executes a program of action to earn public understanding and acceptance
Elaboration Likelihood Model (ELM)
focuses on the way consumers respond to persuasive messages based on amount of nature of elaboration or processing of information
Marketing Objectives
generally stated in marketing plan, achieved through overall marketing plan, quantifiable(sales, mkt share, ROI), to be accomplished in given pd of time, must be realistic & attainable
Benefit Segmentation
grouping of consumers based on attributes sought in a product
Strategic Marketing Plan
guides allocation of resources; evolves from an organizations overall corporate strategy and serves as a guide for specific mktg programs and policies
Semiotic
how symbols have meanings
Undifferentiated Marketing
ignores segment differences and offers just one product or service to the entire market
Basic Principle of Marginal Analysis
increase spending if... cost is less that the marginal return hold spending if... cost is equal to incremental decrease spending if... cost is more than the incremental return
levels of target audience aggregation
individual and group mkt < niche mkt < mkt segments < mass mkts
zero-based communication planning
involves determining what tasks need to be done and which mktg communications functions should be used and to what extent (use functions that effectively address problems/opportunity & use mix that draws on strengths of functions chosen)
What is nonpersonal about Advertising?
involves mass media (tv, radio, magazines, newspapers) that transmits a message to large groups of individuals, often at the same time
Integrated Marketing Communication Management
involves the process of planning, executing, evaluating and controlling the use of the various promotional mix elements to effectively communicate with target audience
Goal of IMC
is to generate short-term returns and build long-term brand value
Field of Experience
refers to the experiences, perceptions, attitudes, and values one brings to the communication experience
Product Symbolism
refers to what a product or brand means to consumers and what they experience in purchasing and using it
successful communication
select an appropriate source - develop a properly encoded message - select the appropriate channel for target audience - receive feedback
hierarchy of effects model
shows the process by which advertising works; assumes a consumer passes through a series of steps in sequential order from initial awareness of product to actual purchase
Competitive Advantage
something special a firm does or has that gives it an edge over competitors
source oriented thoughts
source derogation/source bolstering
PR Tools
special event sponsorship, publicity vehicles, cause-related marketing, special publication, community activities, corporate advertising, public affair activities
Promotional Pull Strategy
spending money on advertising and sales promotion efforts directed toward the ultimate consumer
Positioning
the art and science of fitting the product or svc to one or more segments of the broad mkt in such a way as to set it meaningfully apart from competition a process that influences potential customer's overall perception of a brand, product line, or organization in general.
Promotion
the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea
contribution margin
the difference between the total revenue generated by a brand and in its total variable costs
Channel
the method by which the communication travels from the source or sender to the reciever
Position
the place you occupy in consumers' minds relative to competitive offerings
OLD AMA Marketing Definition
the process of planning & executing the conception, pricing, promo & distribution of ideas, goods, & services to create exchanges that satisfy individual & organizational objectives
central route to persuasion
the receiver is viewed as a very active, involved participant in the communication process whose ability and motivation to attend, comprehend, and evaluate messages are high
peripheral route to persuasion
the receiver is viewed as lacking the motivation or ability to process information and is not likely to engage in detailed cognitive processing
ad execution thoughts
thoughts about ad itself/affect attitude toward ad
Types of word of mouth
traditional WOM buzz mktg consumer generated mktg (CGM) Visual Marketing
Inside out planning
traditional advertising based view of mktg communications
Concentrated Marketing
used when the firm selects one segment and attempts to capture a large share of this mkt
forms o encoding
verbal, graphic, musical, animation