Marketing Chapter 17

AIDA Model

(most common model) A common model of the series of mental stages through which consumers move as a result of marketing communications: Awareness leads to Interests, which lead to Desire, which leads to Action.

Objective-and-Task Method

An IMC budgeting method that determines the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives, choosing media, and determining costs.

Search Engine Marketing (SEM)

An activity used in online searches to increase the visibility of a firm by using paid searches to appear higher up in search results.

Transmitter

An agent or intermediary with which the sender works to develop the marketing communications; for example, a firm's creative department or an advertising agency.

Rule-of-Thumb Methods

Budgeting methods that base the IMC budget on either the firm's share of the market in relation to competition, a fixed percentage of forecasted sales, or what is left after other operating costs and forecasted sales have been budgeted.

brand awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

Return on Marketing Investment (ROMI)

The amount of profit divided by the value of the investment. In the case of an advertisement, the ROI is (Sales revenue generated by ad − Ad's cost) ÷ Ad's cost.

Communications Channel

The medium—print, broadcast, the Internet—that carries the message.

Click-Through Rate (CTR)

The number of times a user clicks on an online ad divided by the number of impressions.

Impressions

The number of times an advertisement appears in front of the user.

Social Media

The online and mobile technologies that distribute content to facilitate interpersonal interactions, with the assistance of various firms that offer platforms, services, and tools to help consumers and firms build their connections.

Public Relations (PR)

The organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media.

receiver

The person who reads, hears, or sees and processes the information contained in the message or advertisement.

decoding

The process by which the receiver interprets the sender's message

Which statements about measuring marketing campaigns are true? (Choose every correct answer.)

The success of campaigns is measured using marketing metrics. Factors such as the lagged effect can complicate the measurement process.

Which formula is accurate for calculating gross rating points (GRP)?

reach multiplied by frequency

Zubi Advertising Services, Inc., has worked with American Airlines to create advertisements across various media. This ad agency is performing what role in the communication process?

transmitter

lagged effect

A delayed response to a marketing communications campaign.

Advertising

A paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver to take some action now or in the future.

top-of-mind awareness

A prominent place in people's memories that triggers a response without them having to put any thought into it.

Why are many firms shifting some of their promotional dollars away from advertising? (Choose every correct answer.)

Advances in technology have led to a variety of new and traditional media channel options for consumers. Print media have grown and become more specialized.

feedback loop

Allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly.

aided recall

An awareness metric that occurs when consumers recognize a name (e.g., of a brand) that has been presented to them.

blog (weblog)

An online diary with periodic posts that allows people to share their thoughts, opinions, and feelings with the entire world; corporate blogs are a new form of marketing communications.

noise

Any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium; a problem for all communications channels.

Which pieces of information should be communicated to customers through a company's website? (Choose every correct answer.)

Features of products and services Reviews of products or services Where customers can purchase products

Which of these elements would be the most important for building a top-of-mind level of brand awareness?

Having a memorable brand

Which steps should marketers follow when using the objective-and-task method to determine a budget? (Choose every correct answer.)

Identify the cost of the necessary communications. Determine which media best reach the target market. Establish a set of communication objectives.

Relevance

In the context of search engine marketing (SEM), it is a metric used to determine how useful an advertisement is to the consumer.

What goals might a firm hope to achieve with an IMC campaign? (Choose every correct answer.)

Increasing customer loyalty Increasing market share Generating inquiries

Channels of an IMC Strategy

Interactive Offline Online Passive (see page 103 Chapter 17 Marketing textbook exhibit 17.3)

If marketers have a brand or service that has reached top-of-mind awareness among their consumers, this most likely means which of the following?

It has fairly high visibility among consumers.

Public relations is the organizational function that oversees a company's communications to achieve which of these objectives? (Choose every correct answer.)

Maintaining a positive image Handling unfavorable stories or events Maintaining positive relationships with media

mobile marketing

Marketing through wireless handheld devices such as smartphones and tablets.

Reach

Measure of consumers' exposure to marketing communications; the percentage of the target population exposed to a specific marketing communication, such as an advertisement, at least once.

Frequency

Measure of how often the audience is exposed to a communication within a specified period of time.

Gross Rating Points (GRP)

Measure used for various media advertising—print, radio, or television; GRP = Reach × Frequency.

How Consumers Perceive Communication

Receivers Decode Messages Differently Senders Adjust Messages According to the Medium and Receivers'' Traits

Integrated Marketing Communications (IMC)

Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media—in combination to provide clarity, consistency, and maximum communicative impact.

Direct Marketing

Sales and promotional techniques that communicate directly with target customers to generate a response or transaction.

Planning For and Measuring IMC Success

Setting Goals Setting and Allocating the IMC Budget Measuring Success Using Marketing Metrics Planning, Implementing, and Evaluating IMC Programs

Web-Tracking Software

Software used to assess how much time viewers spend on particular web pages and the number of pages they view.

sales promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.

Sender

The firm from which an IMC message originates; the sender must be clearly identified to the intended audience.

encoding

The process of converting the sender's ideas into a message, which could be verbal, visual, or both.

Personal Selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision.

Social Shopping

Using the Internet to communicate about product preferences with other shoppers.

Imagine that a firm sends out a message in the form of a print advertisement for a product. Which element is most likely to contribute to how receivers decode the message differently?

Whether or not the receiver is a user of the firm's product

What activity involves placing announcements and persuasive messages in the mass media, to inform and/or persuade a target market or audience about products, services, organizations, or ideas?

advertising

Which of the following is the most visible IMC component?

advertising

Imagine that you are reading one of your favorite magazines. If you see a logo and recognize the brand as it is being presented to you, this is an example of

aided recall

What type of metrics, such as aided recall, measure a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service?

awareness

AIDA Model

awareness interest desire action

Rule-of-Thumb Methods

competitive parity percentage-of-sales available budget

When a firm influences the actions of a consumer, the firm has probably done so through

marketing communications

What IMC strategy involves a two-way flow of communication between a buyer and a seller and is designed to influence the buyer's purchase decision?

personal selling

The integrated marketing communications process refers to which of the six Ps in the marketing mix?

promotion

Three Elements of an IMC Strategy

the consumer the channels through which the message is communicated the evaluation of the results of the communication

The Communication Process

the sender (firm) transmitter encodes message communications channel (media) receiver (consumer) decodes message

When someone is asked to name a brand of soda, most consumers will reply back with Coca-Cola. This is an example of

top-of-mind awareness

online marketing

websites blogs social media