MGT 4308 Exam 1

review of the marketing plan

1. detailed situational analysis that consists of internal marketing audit and review and an external analysis of market competition and environmental factors 2. specific marketing objectives that provide direction, time frame for marketing activities and mechanism for measuring performance 3. marketing strategy and program that include selection of target markets and decisions and plans for 4 elements of marketing mix 4. program for implementing the marketing strategy including determining specific tasks to be performed and responsibilities 5. process for monitoring and evaluating performance and providing feedback so that proper control can be maintained and any necessary changes can be made in overall marketing strategy

developing the marketing planning program

1. product decisions- product symbolism is what product/brand means to consumers and what they experience in purchasing and using it [product planning involves decisions not only about item itself such as design and quality but also aspects like service/warranties and brand name and package design] ~branding- goal is (1) to build and maintain brand awareness and interest (2) develop attitudes towards company or product (3) build and foster relationships b/w consumer and brand [brand equity allows brands to earn greater sales volume than it could w/o name providing competitive advantage] ~packaging- must attract and hold consumers attention, communicate info on how to use product, satisfy legal requirements regarding disclosure [package is important way to communicate w/ customers and create impression of brand in their minds] 2. price decisions- cost of product to consumer includes time, mental activity and behavioral effort [marketing manager is usually concerned w/ establishing price level, developing pricing policies and monitoring competitors and consumers reactions to prices in marketplace] 3. distribution channel decisions- marketing channels are interdependent orgs involved in process of making product available for use or consumption [company can not use intermediates but rather sell to customers through direct channels]

target marketing process (continued)

3. selecting a target market- (1) determining how many segments to enter (2) determining which segments offer potential [examine sales potential, opportunities for growth, competition and ability to compete] ~3 market coverage alternatives are available- (1) undifferentiated marketing [ignoring segment differences and offering just one product to entire market] (2) differentiated marketing [marketing in number of segments developing separate strategies for each] (3) concentrated marketing [firm selects one segment and attempts to capture large share of market] 4. market positioning- fitting product to one or more segments of broad market in such a way as to set it meaningfully apart from competition [positioning relates to image of brand relative to competing brands]

developing IMC program

~2 important aspects of advertising program are development of message and media strategy [message development (creative strategy) involves determining basic appeal and message advertiser wishes to convey to target audience] [media strategy involves determining which communications channels will be used to deliver advertising message to target audience]

participants in IMC process

~advertisers/clients- they have products to be marketed and provide funds that pay for advertising and promotions [assume responsibility for developing program and final decisions to be employed] [may perform these efforts through own advertising department or in house agency] ~advertising agency- outside firm that specializes in creation, production and placement of messages that may facilitate marketing process [acting more as partners w/ advertisers and assuming more responsibility for developing marketing programs] ~media organizations- provide environment for firms marketing communications message [must have editorial or program content that attracts consumers so advertisers and agencies will want to buy time or space w/ them] [sell itself as way for companies to reach target markets w/ their messages effectively] ~organizations that provide specialized marketing communication services (include direct marketing agencies, sales promotion agencies, digital/interactive agencies, public relations firms and they provide services in their areas of expertise) ~orgs that provide collateral services (wide range of support functions used by advertisers, agencies, media orgs and specialized marketing communication firms)

cognitive processing of communications

~approaches to examine nature of consumers cognitive processing of advertising messages- cognitive response approach, elaboration likelihood model

purchase decision

~as outcome of alternative evaluation stage the consumer may develop a purchase intention or predisposition to buy certain brand [purchase intentions are generally based on matching of purchase motives w/ attributes or characteristics of brands under consideration] ~purchase decision isnt the same as actual purchase [additional decisions may be needed such as when to buy, where to buy and how much money to spend] [often there is time delay b/w formation of purchase intention or decision and actual purchase] ~packaging, shelf displays, point of purchase materials and promotional tools such as on package coupons or premium offers can influence decisions made at time of purchase

elaboration likelihood model

~attitude formation or change process depends on amount and nature of elaboration (or processing) of relevant info that occurs in response to persuasive message [high elaboration means receiver engages in careful consideration and evaluation of info] [low elaboration occurs when receiver doesnt engage in active info processing but makes inferences on message on basis of simple positive or negative cues] ~elaboration likelihood is function of 2 elements- motivation and ability to process message [motivation to process message depends on involvement, personal relevance and individuals arousal levels] [ability depends on individuals knowledge, intellectual capability and opportunity to process message] ~central route to persuasion- receiver is viewed as active involved participant in communication process whose ability and motivation to comprehend messages is high [when message occurs consumer pays close attention to message content and scrutinizes arguments] [attitude change through central processing is relatively enduring and should resist subsequent efforts to change it] ~peripheral route to persuasion- receiver lacks motivation or ability to process info and isnt likely to engage in cognitive processing [relies on peripheral cues that may be incidental to main arguments] [favorable attitudes must be maintained by continual exposure to peripheral cues such as through repetitive advertising]

cognitive response approach

~cognitive responses- thoughts that occur while reading/viewing communication [determine types of responses evoked by message and how these responses relate to attitudes toward brand and purchase intentions] ~product/message thoughts- thoughts directed at product and claims being made in communication [counterarguments are thoughts that are opposed to position taken in message] [support arguments affirm claims made in message] ~source oriented thoughts- thoughts directed at source of communication [source derogations- negative thoughts about spokesperson or org making claim] [source bolsters-react favorably to source] ~ad execution thoughts- thoughts about ad itself [reactions to ad execution factors like creativity of ad, quality of visual efforts, colors, voice tones]

agency compensation

~commissions from media- agency receives specified commission (usually 15%) from media on any advertising time or space it purchases for its client [encourages agencies to recommend high priced media to clients to increase commission level] ~negotiated commission- commissions average from 8-10% or are based on sliding scale that becomes lower as clients media expenditures increase ~fixed fee method- agency charges a basic monthly fee for all its services and credits to client any media commissions earned ~fee commission combination- media commissions received by agency are credited against fee [if commissions are less than agreed on fee the client makes up the difference] ~cost plus system- client agrees to pay agency a fee based on costs of its work plus some agreed on profit margin (often percentage of total costs) ~incentive based system- basic idea is that agencys ultimate compensation level will depend on how well it meets predetermined performance goals ~percentage charges- adding markup of percentage charges to various services agency purchases from outside providers

analyzing the receiver

~communication process begins w/ identifying audience that will be focus of advertising efforts [may consist of individuals, groups, niche markets, market segments or mass audience- approach each of these differently] ~mass communication is one way flow from market to consumer [feedback on reactions to message is indirect and difficult to measure] ~response process- traditional response hierarchy models, alternative response hierarchies, social consumer decision journey

message appeals

~comparative advertising- practice of either directly or indirectly naming competitors in ad and comparing one or more specific attributes [often used for new brands or brands w/ small market share- compare themselves to established market leader in hopes of creating association and tapping into leaders market] ~fear appeals- evoke emotional response the threat that implies some sort of danger and arouses individuals to take steps to remove threat ~low level of fear can have facilitating effects it attracts attention and interest in message and may motivate receiver to act to resolve the threat [increasing level of fear in message from low to moderate can result in increased persuasion] [high levels of fear can produce inhibiting effects the receiver may emotionally block message by tuning it out or denying its arguments outright] ~protection motivation model- 4 cognitive appraisal processes mediate the individuals response to threat [(1) info available regarding severity of perceived threat (2) perceived probability that threat will occur (3) perceived ability of coping behavior to remove threat (4) individuals perceived ability to carry out coping behavior] ~humor appeals- humorous messages attract and hold consumers attention [enhance effectiveness by putting consumers in positive mood and increasing liking of ad itself and feeling toward brand] [humor can also distract receiver from counter-arguing against message] [humorous ads may wearout (tendency of ad to lose effectiveness when its seen/head repeatedly) faster than serious appeals]

postpurchase evaluation

~compares level of performance w/ expectations and is either satisfied or dissatisfied [postpurchase evaluation is important b/c feedback from actual use of product will influence likelihood of future purchases] ~cognitive dissonance- feeling of psychological tension or postpurchase doubt that consumer experiences after making difficult purchase choice [may seek reassurance from others, lower attitudes of unchosen alternative, deny info that doesnt support choice they made, look for info that does support their choice]

alternative evaluation

~consumer compares various brands or products they have identified as being capable of solving the consumption problem and satisfying needs that initiated decision process [various brands identified as purchase options to be considered are referred to as evoked set] ~evoked set- subset of brand of which consumer is aware [goal of advertising is to increase likelihood that brand will be included to consumers evoked set] ~evaluative criteria- dimensions or attributes of product that are used to compare different alternatives [functional consequences are concrete outcomes of product usage that are tangible and directly experienced by consumers] [psychosocial consequences are abstract outcomes that are subject and personal such as how product makes you feel] ~2 subprocesses are very important during alternative evaluation stage- (1) process by which consumer attitudes are created, reinforced and changed (2) decision rules or integration strategies consumers use to compare brand and make purchase decision

social consumer decision journey

~consumers dont make purchase in linear manner [more reductive process and they can enter purchase path at various points depending on whether they first engage w/ brand, research product or hear about product through social networks] ~decision journey has 4 basic stages- consider, evaluate, buy and enjoy-advocate-bond

audience contacts

~contact/touch point- each and every opportunity the customer has to see or hear about company and/or its brands or have an encounter/experience w/ it ~company created touch points- planned marketing communication messages created by company ~intrinsic touch points- interactions that occur w/ brand during process of buying or using product [design and functioning of website, packaging, etc] ~unexpected touch points- unanticipated references or info about company that customer receives [it is beyond control of org] [reviews, word of mouth, etc] ~customer initiated touch points- interactions that occur whenever customer contacts company

other types of agencies and services

~creative boutiques- small ad agencies that provide only creative services [work directly for companies or full service agencies subcontract work to them if they are busy] ~media specialist companies- specialize in buying of media (particularly radio and TV time) [agencies/clients usually develop own media strategies and hire buying service to execute them]

source credibility

~credibility- extent to which the recipient sees the source as having relevant knowledge, skill or experience and trusts source to give unbiased, objective info [2 important dimensions- expertise and trustworthiness] ~internalization- occurs when receiver adopts opinion of credible communicator since they believe info from this source is accurate [once the receiver internalizes an opinion/attitude it becomes integrated into belief system and may be maintained even after source of message is forgotten] ~using corporate leaders as spokespeople- way of enhancing source credibility is to use company president or CEO as spokesperson [this is particularly prevalent among small and midsize companies] ~sleeper effect- persuasiveness of message increases w/ passage of time [immediate impact of persuasive message may be inhibited b/c of association w/ low credibility source but w/ time the association of message w/ source diminishes and attention focuses more on favorable info in message]

environmental influences on consumer behavior

~culture, subcultures [based on age, geographic, religious, racial, ethnic], social class [based on occupational status, educational attainment and income], reference groups [group whose presumed perspectives or values are being used by individual as basis for judgment/opinions/actions] [consumers use 3 types of reference groups (associative, aspirational and dissociative) as guide to behaviors even when groups arent present], situational determinants [3 types of situational determinants have effect- specific usage situation, purchase situation and communications situation] ~roles in family decision making process- (1) initiator [person responsible for initiating purchase decision process] (2) information provider [responsible for gathering info used in making decision] (3) influencer [person who exerts influence as to what criteria will be used in selection process] (4) decision maker [person who actually makes decision] (5) purchasing agent [performs physical act of making purchase] (6) consumer [actual user of product]

buzz marketing

~different from traditional word of mouth communication b/c it includes systematic and organized efforts to encourage people to speak favorably about company/brand/issue and to recommend it to others in their social network ~viral marketing- act of propagating marketing relevant messages through help and cooperation of individual consumers [3 major factors affect success of viral marketing- message characteristics, individual sender or receiver characteristics, social network characteristics] ~seeding- identifying and choosing initial group of consumers who will be used to start diffusion or spreading of message

specialized services

~direct marketing agencies- provide variety of services including database analytics and management, direct mail, research, media services, creative and production capabilities ~sales promotion agencies- developing and managing sales promotion programs such as contests, sweepstakes, refunds and rebates, premium and incentive offers and sampling programs ~public relations firms- develops and implements programs to manage the orgs publicity, image and affairs w/ consumers and other relevant publics (employees, stockholders, government, labor groups, suppliers, general public) ~digital/interactive agencies- development and strategic use of various digital marketing tools (SEO, websites, mobile marketing, social media campaigns, etc) ~collateral services- marketing research companies, package design firms, consultants, photographers, printers, video production houses, event marketing

behavioral learning theory

~emphasizes role of external, environmental stimuli in causing behavior- minimize significance of internal psychological processes [based on stimulus-response orientation (S-R) which is that learning occurs as result of responses to external stimuli in environment] ~classical conditioning- assumes learning is associative process w/ already existing relationship b/w stimulus and response [ex: food is unconditioned stimulus and salivating is unconditioned response (after training bell was conditioned stimulus and salivating was conditioned response)] [2 factors important for learning to occur through associative process- (1) contiguity [unconditioned stimulus and conditioned stimulus must be close in time and space] (2) repetition [the more often the unconditioned and conditioned stimuli occur together the stronger the association b/w them] [attempt to pair neutral product w/ stimulus that arouses positive feelings such as music or humor] ~operant conditioning- individual must actively operate or act on some aspect of environment for learning to occur [behavior that is reinforced strengthens bond b/w stimulus and response] [diff schedules of reinforcement result in varying patterns of learning and behavior- leaning occurs most rapidly under continuous reinforcement schedule in which every response is rewarded but behavior is likely to cease when reinforcement stops] [learning occurs more slowly but lasts longer when intermittent reinforcement schedule is used and only some of responses are rewarded]

source attractiveness

~encompasses similarity (supposed resemblance b/w source and receiver), familiarity (knowledge of source through exposure) and likability (affection for source as result of physical appearance, behavior, or other personal traits) ~source attractiveness leads to persuasion through identification (where receiver is motivated to seek some type of relationship w/ source and thus adopts similar beliefs/attitudes/preferences] [unlike internalization, identification doesnt usually integrate info from source into receivers belief system- may maintain attitude only as long as its supported by source or source remains attractive] ~celebrities have stopping power (draw attention to advertised messages in very cluttered media environment) ~overshadowing product- consumers may focus attention on celebrity and fail to notice brand ~overexposure- when celebrity endorses too many products and becomes overexposed [consumers are often skeptical of endorsements b/c they know celebrities are being paid] ~target audiences receptivity- how well individual matches w/ and is received by advertisers target audience ~risk to advertiser- celebritys behavior may pose risk to company [involved in activities that could embarrass companies whose products they endorse] [expensive and high risk strategy b/c what celebrities do in personal life can impact image] ~return on investment- use celebrities to increase awareness or to develop strong associations b/w celebrity and brand that will result in higher purchase intentions [all of these factors must translate into higher sales in order for company to get positive ROI from endorsement deal] ~meaning transfer model- stage 1 (objects/persons/contexts are transferred meanings that then reside in celebrity), stage 2 (bring their meanings and image into ad and transfer them to product they are endorsing), stage 3 (meanings celebrity has given to product are transferred to consumer)

consumer learning process

~factor in level of problem solving to be employed is consumers involvement w/ product/brand ~5 stage decision process model views consumer as problem solver and info processor who engages in variety of mental processes to evaluate various alternatives and determine degree to which they might satisfy needs ~consumer learning had been defined as process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior ~2 approaches are behavioral learning theory and cognitive learning theory ~cognitive learning theory- internal psychological processes are more important than external stimulus factors

analysis of communication process

~how company can effectively communicate w/ consumers in its target markets [think about process consumers go through in responding to communication] ~communication decisions regarding use of source, message and channel factors must be considered [consider diff effects various types of message might have on consumers and whether they are appropriate for brand] ~marketing objectives- what is to be accomplished by overall marketing program [often stated in terms of sales, market share or profitability] ~communications objectives-refer to what firm seeks to accomplish w/ its promotional program [stated in terms of nature of message to be communicated or what specific communication effects are to be achieved]

in house agency

~in effort to reduce costs and maintain greater control over agency activities- set up own advertising agencies internally [can use in house exclusively or combine in house efforts w/ outside agencies ~reasons for using- more cost effective, time savings, bad experiences w/ outside agencies, increased knowledge and understanding of market, maintain tighter control over process, more easily coordinate promotions w/ overall marketing program ~outside agencies have more skilled specialists, objectivity, range of services, more creative experience, greater strategic planning capabilities ~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

integration processes and decision rules

~integration processes are the way product knowledge, meanings and beliefs are combined to evaluate two or more alternatives ~sometimes consumers make purchase decisions using more simplified decision rules known as heuristics [for familiar products that are purchased frequently consumers may use price based heuristics (buy the least expensive brand) or promotion based heuristics (choose brand for which you can get price reduction through coupon)] ~affect referral decision rule- consumers make selection on basis of overall impression or summary evaluation of various alternatives under consideration [suggests that consumers have affective impressions of brands stored in memory that can be accessed at time of purchase]

promotional situation analysis

~internal analysis- assesses relevant areas involving product/service offering and firm itself [capabilities of firm and its ability to develop/implement successful promotional program, org of promotional department, successes and failures of past programs should be reviewed] [study advantages and disadvantages of performing promotional functions in house or w/ agency] [assesses strengths and weaknesses of brand from image perspective] [assesses strengths/weaknesses of product, any unique selling points or benefits, its packaging/price/design] ~external analysis- focuses on characteristics of firms customers, market segments, positioning strategies and competitors [detailed consideration of customers characteristics and buying patterns, their decision processes and factors influencing their purchase decisions] [assessment of market and segments to target] [focus on primary competitors specific strengths/weaknesses, segmentation, targeting, positioning strategies, promotional strategies, size and allocation of budget, media strategies, messages they are sending]

attitudes

~learned predispositions to respond to object [summarize consumers evaluation of object/brand and represent positive or negative feelings and behavioral tendencies] ~multiattribute attitude model- views attitude object (such as product) as possessing number of attributes that provide basis on which consumers form attitudes ~Ab=∑Bi × Ei where Ab=attitude toward brand, Bi=beliefs about brands performance on attribute i, Ei=importance attached to attribute i [salient beleifs are specific attributes or consequences that are activated and form basis of attitude] ~multiattribute model provides insight into ways marketers can influence consumer attributes including (1) increasing/changing strength or belief rating of brand on important attribute (2) changing consumers perceptions of importance or value of an attribute (3) adding new attribute to attitude formation process (4) changing perceptions of belief ratings for competing brand

perception

~marketers are interested in (1) how consumers sense external info (2) how they select and attend to various sources of info (3) how this info is interpreted and given meaning ~perception- process by which individual receives, selects, organizes, and interprets info to create a meaningful picture of world [depends on internal factors like persons beliefs, experiences, needs, moods, expectations] [perceptual process is also influenced by characteristics of stimulus (such as size/color/intensity) and context in which its seen or heard] ~perception involves 3 distinct processes- (1) sensation [immediate direct response of senses to stimulus such as ad/brand name/package (2) consumers personality/needs/motives/expectations [focus on elements of environment that are relevant to needs and tune out irrelevant stimuli] (3) interpretation and meaning an individual assigns to incoming stimulus depend in part on nature of stimulus [selective perception may occur at exposure, attention, comprehension or retention stage of perception] ~selective exposure occurs as consumer chooses whether or not to make themselves available to info [selective attention occurs when consumer chooses to focus attention on certain stimuli while excluding others] [selective comprehension is interpreting info on basis of attitudes/beliefs/motives] [selective retention is when consumers dont remember all the info they see/hear] ~subliminal perception- ability to perceive stimulus that is below level of conscious awareness

message factors

~marketers must consider not only content of messages but also how this info will be structured for presentation and what type of message appeal will be used ~message structure and message appeal

centralized system

~marketing activities are divided along functional lines w/ advertising placed alongside other marketing functions ~advertising manager is responsible for all promotions activities except sales [controls entire promotions operation including budgeting, coordinating creation, production of ads, planning schedules, etc] ~planning and budgeting, administration and execution (working w/ departments such as production, media, art, copy, digital/interactive and sales promotion), coordination w/ other departments, coordination w/ outside agencies and services [ ~centralized system is used when companies dont have many different divisions, product or service lines or brand to advertise ~centralized system results in more efficient operation b/c fewer people are involved in program decisions ~advantages- facilitated communcations, fewer personnel required, continuity in staff, allows for more top management involvement ~disadvantages- less involvement w/ and understand of overall marketing goals, longer response time, inability to handle multiple product lines

developing a positioning strategy

~positioning by product attributes/benefits- marketers attempt to identify salient attributes (those that are important to consumers and are basis for making purchase decision), positioning by price/quality, positioning by use/application, positioning by product class, positioning by product user, positioning by competitor, positioning by cultural symbols ~repositioning- altering or changing a products/brands position [usually occurs b/c of declining ales or b/c of anticipated opportunities in other market positions]

role of marketing

~marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives [this focuses on exchange as central concept and use of basic marketing activities to create and sustain relationships w/ customers] ~for exchange to occur there must be 2 or more parties w/ something of value to one another, desire to give up that something to the other party and way to communicate w/ each other ~marketing is activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large [this focuses on developing relationships w/ customers and delivering value] ~value is customers perception of all benefits of product weighed against all costs of acquiring and consuming it [benefits can be functional (performance of product), experiential (what it feels like to use the product), psychological (feelings from owning product/brand)] [costs include money paid for product, learning how to use product, maintaining product, etc]

variations in consumer decision making

~may minimize or even skip one or more stages if they have previous experience in purchasing product or if decision is of low personal/social/economic significance

choosing a celebrity endorser

~most important factors are celebritys match w/ target audience and product/brand, overall image of celebrity, cost of acquiring celebrity, trustworthiness, risk of controversy and celebritys familiarity and likability among target audience ~some models draw attention to ad but not product or message [model facilitates recognition of ad but doesnt increase readership or recall] [some women experience negative feelings when comparing themselves w/ beautiful models in ad] ~source power- has power when they can actually administer rewards/punishments to receiver [source must be perceived as being able to administer positive/negative sanctions to receiver (perceived control) and receiver must think sources cares about whether or not receiver conforms (perceived concern)] [receivers estimate of sources ability to observe conformity is also important (perceived scrutiny)] ~compliance- receiver accepts persuasive influence of source and conforms to position in hopes of obtaining favorable action [this may be superficial and only last as long as receiver perceives that source can administer reward/punishment]

problem recognition

~occurs when consumer perceives need and becomes motivated to solve problem [problem recognition is caused by difference b/w consumers ideal state (what consumer wants situation to be like) and actual state (what situation really is like)] ~sources of problem recognition- out of stock, dissatisfaction, new needs/wants, related products/purchases (ex: purchase of phone leads to purchase of phone case), marketer induced problem recognition (marketers actions encourage customers to not be content w/ current state or situation), new products

information search

~once consumers perceive problem or need that can be satisfied by purchase of product they begin to search for info needed to make purchase decision ~internal search- first attempt effort that scans info stored in memory to recall past experiences and knowledge regarding various purchase alternatives ~if internal search doesnt yield enough info the consumer will seek additional info through external search [internet sources, personal sources (friends/family), marketer controlled sources (commercials), public sources (newspapers), personal experience (actually handling product) [determining how much and which sources of external info to use is based on importance of purchase decision, effort needed to acquire info, amount of past experience relevant, degree of perceived risk of purchase, time available]

message structure

~order of presentation- strongest arguments should be presented early (primacy effect) or late (recency effect) in message but never in middle [strong arguments work best at beginning if audience isnt interested in topic] [if audience is predisposed to position or is highly interested then strong arguments are better at end of message] ~conclusion drawing- decide whether messages should explicitly draw firm conclusion or allow receivers to draw own conclusions [more highly educated people prefer to draw their own conclusions] [if immediate action is objective the message should draw definite conclusion] ~message sidedness- one sided message mentions only positive attitudes/benefits while two sided message present both good and bad points [one sided messages work better when audience already holds favorable opinion about topic or for less educated audience] ~refutation- in refutational appeal the communicator presents both sides of an issue and then refutes the opposing viewpoint [useful when wanting to build attitudes that resist change and must defend against attacks or criticism of products] ~verbal vs visual messages

channel factors

~personal vs nonpersonal channels- sales message is more flexible, personal and powerful than ad [ad message is designed to appeal to large number of people] [ads can treat objections in appropriate manner as they arise] ~effects of alternative mass media- basic differences in manner and rate at which info from various forms of media is transmitted and processed [info from ads in print media/internet is self paced (readers process ad at own rate and can study it as long as they desire)] [info from radio or TV is externally paced (transmission rate is controlled by medium)] ~effects of context and environment- medium communicates image that is independent of any message it contains [qualitative media effect is the influence medium has on message] ~clutter- amount of advertising in medium [high level of advertising often annoys consumers and makes it difficult for ads to communicate effectively] [advertisers will continue to search for ways to break through clutter such as using humor, celebrity spokespeople or novel/creative approaches]

why agencies lose clients

~poor performance or service, poor communication, unrealistic demands by client (client places demands on agency that exceed amount of compensation received and reduce accounts profitability), personality conflicts, personnel changes, changes in size of client or agency, conflicts of interest (conflict may develop when agency merges- cant handle 2 accounts that are in direct competition w/ each other), changes in clients corporate and/or marketing strategy, declining sales, conflicting compensation philosophies, changes in policies, disagreements over marketing and/or creative strategy, lack of integrated marketing capabilities ~how agencies gain clients- referrals, solicitations, presentations, public relations, image and reputation

overview of consumer behavior

~process and activities people engage in when searching for, selecting, purchasing, using, evaluating and disposing of products so as to satisfy their needs and desires ~where do they prefer to buy product?, how are they influenced by marketing stimuli at point of purchase?, consumer decision process and reasons for purchase ~consumer decision making process- (1) problem recognition (2) examining consumer motivations (3) information search (4) perception (5) alternative evaluation (6) attitudes (7) integration processes and decision rules (8) purchase decision (9) postpurchase decision (10) variations in consumer decision making

marketing mix

~product, price, place (distribution) and promotion [combining these elements into marketing program to facilitate potential for exchange w/ consumers] ~IMC- concept of marketing communications planning that recognizes the added value of comprehensive plan that evaluates strategic roles of variety of communication disciplines- general advertising, direct response, sales promotion and public relations- and combines these to provide clarity, consistency and maximum communications impact ~IMC calls for centralized messaging function so that everything company says and does communicates a common theme and positioning [media ads, price, package design, publicity, websites, point of purchase displays, etc] ~brand identity- combination of name, logo, symbols, design, packaging and performance of product [it encompasses entire spectrum of consumers awareness, knowledge, and image of brand as well as company]

promotional mix

~promotion- coordination of all seller initiated efforts to set up channels of info and persuasion in order to sell goods or promote idea ~promotional mix- advertising, direct marketing, digital/internet marketing, sales promotion, publicity/PR, personal selling ~advertising- paid form of nonpersonal communications about product/idea by identified sponsor [nonpersonal means involves mass media that can transmit message to large groups of individuals at the same time- no opportunity for immediate feedback] [primary demand advertising is designed to stimulate demand for general product class or entire industry while selective demand advertising focuses on creating demand for specific companys brands] ~publicity- nonpersonal communications regarding org/product not directly paid for or run under identified sponsorship [advantages- credibility, low cost] ~public relations- org plans and distributes info in attempt to control and manage its image and nature of publicity it receives [managing relationships w/ number of important audiences including investors, employees, suppliers, communities, government and consumers]

developing promotional strategies: push or pull

~promotional push strategy- programs designed to persuade channel members to trade stock, merchandise and promote a manufacturers products [goal of this strategy is to push product through channels of distribution by aggressively selling and promoting item to resellers] ~trade advertising- interest wholesalers and retailers and motivate them to purchase its products for resale to their customers ~promotional pull strategy- spending money on advertising and sales promotions efforts directed toward ultimate consumer [goal is to create demand among consumers and encourage them to request product from retailer]

traditional response hierarchy models

~purchase funnel- consumer starts at top of funnel w/ number of brands in mind and reduces number as they become familiar w/ and evaluate alternatives and then emerges w/ brand they choose to purchase ~AIDA model (stages salesperson must take customer through)- cognitive stage (attention) → affective stage (interest → desire) →behavioral stage (action) ~hierarchy of effects model (process by which advertising works)- cognitive stage (awareness→ knowledge) → affective stage (liking→preference→ conviction) → behavioral stage (purchase) ~innovation adoption model (stages in adopting new product)- cognitive stage (awareness) → affective stage (interest→evaluation) → behavioral stage (trial→ adoption) ~information processing model (series of steps receiver goes through when being persuaded)- cognitive stage (presentation→attention→ comprehension) → affective stage (yielding→ retention) → behavioral stage (behavior) ~cognitive stage is what receiver knows about particular brand/product [includes awareness that brand exists and info about its attributes/characteristics/benefits] ~affective stage refers to receivers feelings for brand [stronger levels of affect such as desire/preference/conviction] ~behavioral stage refers to consumers actions toward brand- trial, purchase, adoption or rejection

advertising agencies

~reasons for using agency- provide clients w/ services of highly skilled individuals who are specialists in their chosen fields, specialized in particular type of business, objective view point of market, not subject to internal company policies/biases/other limitations ~full service agency- offers full range of marketing, communications, promotions services [may also offer nonadvertising services] ~account executive- responsible for understanding advertisers marketing and promotions needs and interpreting them to agency personnel [coordinates agency efforts in planning, creating and producing ads] ~most full service agencies maintain research department whose function is to interpret info that will be useful in advertising for their clients [account planners- gather info that is relevant to clients product and can be used in development of creative strategy] ~departmental system- each of agency functions is set up as separate department and is called on as needed to perform its specialty and serve all of agencys clients ~group system- individuals from each department work together in groups to service particular accounts [each group is headed by account executive and has media people, creative team and production personnel]

decentralized system

~separate manufacturing, research and development, sales and marketing departments for various divisions or product lines [assign each brand a brand manager who is responsible for total management of brand including planning, budgeting, sales and profit performance] ~each brand may have its own ad agency and may compete against other brands within company ~category management- additional layer of management above brand manager to coordinate efforts of all brand managers handling related group of products [each category manager will have one or more brand managers reporting to them as well as advertising manager] ~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

basic model of communication

~source encoding- putting thoughts, ideas or info into symbolic form [goal is to encode the message in such a way that it will be understood by the receiver] [b/c receivers perceptions of source influence how communication is received marketers must be careful to select spokesperson the receiver believes is trustworthy or can relate w/] ~message- must be put into transmittable form that is appropriate for channel of communication being used [not actual words that determine messages effectiveness but rather impression or image it creates] [decisions regarding content of messages they send as well as structure and design (way message is put together in order to deliver info or intended meaning)] ~channel- can be nonpersonal (mass media since message is directed to many individuals at one time- can be print or broadcast) or personal (direct communication b/w persons) [message can be tailored to individual and sender receives direct feedback] ~receiver/decoding- process of transforming message back into thought [influenced by reader field of experience (experiences, perceptions, attitudes, values they bring to communication situation)] [effective communication is more likely when there is common ground b/w source and receives frames of reference] ~noise- message is subject to extraneous factors that can distort or interfere w/ its reception [lack of common ground may result in improper encoding of message] ~response/feedback- set of reactions after message is response [can range from nonobservable (storing info in memory) to immediate (calling number)] [feedback lets sender monitor how intended message is being decoded and received]

promotional planning through the persuasion mix

~source, message and channel factors are controllable elements in communications model [persuasion matrix helps marketers see how each controllable element interacts w/ consumers response process] ~independent variables (on horizontal) are controllable components (source, message, channel, receiver, destination) ~dependent variables (vertical) are steps receiver goes through in being persuaded (message presentation, attention, comprehension, yielding, retention, behavior) [marketers can choose person/source who delivers message, type of message appeal used and channel/medium] [cant control receiver but can select target audience] ~receiver/comprehension- can the receiver comprehend the ad?, channel/presentation- which media will increase presentation?, message/yielding- what type of message will create favorable attitudes or feelings?, source/attention- who will be effective in getting consumers attention?

source factors

~source- person involved in communicating marketing message either directly or indirectly [direct source is spokesperson who delivers message and/or endorses product] [indirect source doesnt actually deliver message but draws attention to and/or enhances appearance of ad] [some ads use neither direct or indirect source- the source is the org] ~3 categories of source attributes- credibility, attractiveness, power

alternative response hierarchies

~standard learning hierarchy- info and knowledge acquired or learned about brands are basis for developing feelings that will guide what consumer will do [learn→feel→do sequence] [consumer is active participant in process who gathers info through active learning] ~dissonance/attribution hierarchy- consumers first behave and then develop attitudes/feelings as result of that behavior and then learn/process info that supports that behavior [do→feel→learn sequence] [occurs when must choose b/w 2 alternatives that are similar in quality but may have hidden or unknown attributes] ~low involvement hierarchy- passing from cognition to behavior to attitude change [learn→do→feel sequence] [situations of low consumer involvement, minimal differences among brand alternatives, mass media advertising is important] [message exposure under low involvement → shift in cognitive structure → purchase → positive or negative experience → attitude formation] [consumer engages in passive learning and random information catching rather than active information seeking- passive consumer may focus more on nonmessage elements like music]

marketing strategy and analysis

~strategic marketing plan- evolves from orgs overall corporate strategy and serves as guide for specific marketing program and policies [from this situation analysis a firm develops an understanding of the market and various opportunities it offers, competition and market segments/target markets company wishes to pursue] 1. opportunity analysis- analysis of marketplace leads to alternative market opportunities for existing products in new markets, new products in current markets or new products in new markets [market opportunities are areas where there are favorable demand trends or where product can compete effectively] 2. competitive analysis- analyze competition to be faced in marketplace from direct brand competition (which can also include its own brands) to indirect forms (such as product substitutes) [competitive advantage is something special about a firm that gives it edge over competitors- can include having quality products w/ higher price, superior customer service, lowest production costs so therefore lower prices, dominating channels of distribution, advertising that creates brand equity] 3. target market selection- may select one or more of the market segments after evaluating opportunities [goals/objectives are set in terms of specific performance variables] [this market is broken into segments w/ diff objectives, diff budgets and diff promotional mix strategies]

nature of communication

~success depends on nature of message, audiences interpretation of it, environment in which its received [receivers perception of source and medium used to transmit message may also affect ability to communicate]

target marketing process

~target marketing- developing different marketing strategies to satisfy different consumer needs [involves 4 steps- identifying markets w/ unfilled needs, segmenting the market, targeting specific segments, positioning product through marketing strategies] 1. identifying markets- identifies needs of group of people (segment), selects one or more of these segments as target and develops programs directed to each [constantly search for ways to segment market in attempt to better satisfy customers needs] 2. market segmentation- marketing segmentation is dividing market into distinct groups that (1) have common needs and (2) will respond similarly to marketing action ~bases for segmentation- (1) geographic [nations/states/counties/neighborhoods] (2) demographic [age/sex/family size/education/income/social class] (3) psychographic [personality/lifestyles] [lifestyles is usually based on activities, interests and opinions (AIOs) of consumer] (4) behavioristic segmentation [usage/loyalty/buying responses to product] [80-20 rule- 20% of buyers account for 80% of sales volume] ~benefit segmentation- grouping customers on basis of attributes (that provide specific benefits to satisfy needs) sought in product

examining consumer motivations

~to understand reasons underlying consumer purchases marketers devote considerable attention to examining motives (factors that compel consumer to take particular action) ~hierarchy of needs- (1) physiological [basic level of primary needs for things required to sustain life like food/shelter/sex] (2) safety [need for security and safety from physical harm] (3) social/love and belonging [desire to have satisfying relationships and feel sense of acceptance] (4) esteem [need to feel sense of accomplishment and gain recognition, status and respect from others] (5) self actualization [need for self fulfillment and desire to realize ones own potential] ~psychoanalytic theory- motives of purchase may be driven by deep motives one can determine only by probing the subconscious ~motivation research- in depth interviews, projective techniques, association tests and focus groups that lead to insights as to why people purchase