MKTG Test 4
Quote from Don Draper, Mad Men
"Advertising is based on one thing: happiness.... And do you know what happiness is?...It's freedom from fear."
5. Personal selling
Any selling activity that involves direct interaction between the buyer and seller
CONSUMER TRUST IS KEY
Consumer trust is key in getting them to participate
Which is most representative of the marketing concept?
Objective and Task
What does good social media marketing require? (why)
"Flattening" the organization and stripping layers of quality control -Giving up quality control --empowering customers and employees to do it -*Fast content and fast response.* Need to be able to keep up with constant changes--------Companies will turn to their own employees to improve SM reach
Quote by Kimberly Whitler, professor at U of Virginia
"Now, not only do marketers have to be finance experts, but they have to be technologists and they have to understand the ways in which they can connect with consumers"
What is the CPM of social media? How does this number compare to those we calculated for the Super Bowl and USA today?
$2.50 -Significantly cheaper than both
Which type of *sales presentation* is most powerful? What tool is absolutely necessary for this type of presentation? (lecture)
*Adaptive selling*: actively listening to your consumer --This way you can get crucial feedback that you can use to gauge the situation to potentially move to a sale -Having a two way conversation - listening to their suggestions and answering questions
Is there a difference between SMM and traditional advertising in terms of "mistakes"?
*Advertising* is tested and contains a lot of *quality control* *SMM* can be like the wild west. All the 'mistake' and fails are usually weeded out in traditional advertising. Mistakes happen all the time because content has to be produced very quickly and therefore does not have time to be reviewed by numerous groups.
What are the two benefits of IMC? How does conceptual fluency (i.e process fluency) explain these effects? (lecture)
*Clarity and Synergy* *Conceptual fluency*- How easy it is for customers to process and digest info --when different touch-points (PoP that relate to a brand) are congruent, it reinforces the brand image making it easier to understand -Synergy means added value of one medium as a result of the presence on another medium, causing their combined effect of media to exceed the sum of their individual effects *When two mediums work together, the results are BIG*
What are customers connections and how does connection differ in the digital realm compared to tradition media?
*Customer connection:* The accumulation of meaningful behavioral, social, and psychological contacts between people and brands and among people interacting about brands. Digital: Everyone is connected Customer connections allow the consumers to interact with each other rather than just the marketer interacting with the consumer
How does this contrast with what Sergio Zyman says and what the book says?
*His idea is advertising should give a response within 24 hours. It can do that, but it can also build a brand. Creating a brand normally takes time* -Zyman states that the sole purpose of marketing is to sell to more people more often and at a higher price and that there is no reason to do it. If you don't see results from advertising in 24 hours, it's not doing what it needs to do. -The book says ads should grab attention, stimulate relevance, and be capable of multiple executions.
What are the conceptual differences between inbound and outbound marketing? (lecture)
*Inbound:* focuses on *earning* a customers attention. --Attracting people to you. Getting people to share what you're making and to seek you out *Outbound:* tries to find customers and *grab* their attention at a specific moment
What is IMC?
*Integrated Marketing Communications* -Utilizing multiple channels of communication to project a single, unified, and compelling message about a brand (twitter, youtube, data) -Instead of having multiple different ads across different channels, essentially trying to connect the dots in some way. Ex: Wendy's attacking McDonalds on multiple forms
What are the methods of promotion budgeting?
*Intuition and instinct*: Managers base promotional budgets on "Gut instinct" *Percentage of sales*: Promotion budgeting set as a percentage of prior year sales or predicted coming year sales -*Competitive response*: Look at what other brands are doing and respond. Budgets are set based on predictions of what competitors will spend. See what everyone else is doing -*Objective and Task*: Figure out your goal by advertising, then figure out what you need to do, then decide how much money to spend on it. Budget is set based on promotional activities and objectives. *What do I want to do, how do I do it, how much money is it*
Can you understand the goal of each stage of the personal selling process?
*Prospecting*: Looking for your customers *Preparation*: Getting all the info you need on who/how your selling *Approach*: Making contact with possible people you'll sell too *Sales presentation*: AKA sales pitch. Deliver basic sales message to the prospect *Meeting customer objectives:* During presentation, prospects will voice in objectives and you need to a well response to their questions. *Trial close*: Transition from meeting customer objections to closing the sale. Clarify what you're selling and making sure price is right. "So, are you thinking of buying this?" *Closing the Sale*: Asking them to order from you
What are the different types of advertising appeals? (lecture, link in slide, and pg 221)
-Rational: straight sell, demonstration, testimonial/ endorsements/ comparative ---every appeal needs to connect to the product in a meaningful way -Emotional: fear/ humor/ sexual desire/ awe/ love
What is the personal selling process?
- Prospecting - Preparation approach - Sales presentation - Meeting objections - Trial close - Closing the sale
How does Hubspot model inbound marketing? (what are the steps) *Not on Test*
-*Attract, Engage, Delight* - Attract: Drawing in the right people with valuable content and conversations that establish you as a trusted advisor with whom they want to engage Engage: Presenting insights and solutions that align with their pain points and goals so they are more likely to buy from you Delight: Providing help and support to empower your customers to find success with their purchase
What is a big problem in digital marketing? (lecture)
-*Data Privacy concerns* -There is an issue with digital privacy. Companies such as Google make their money off of users info rather than tangible reach -People don't like giving up their personal data
What is reach and frequency?
-*Reach*- the % of target market exposed to an ad -*Frequency*- the average # of times the target audience sees an ad (*These are inversely related*)
How does commission versus incentives affect employee behavior? What is the best structure?
--It will persuade employees to be more pushy, sometimes to an uncomfortable degree, in an attempt to get more sales -Commission only can ruin company morale and stress employees out. Salary-only does not encourage competitive drive. *Best model is a blend of salary and commission*
What are two things advertising does (lecture)
-Builds brand awareness and brand image -Drive the purchase decisions process.(Influence buyer behavior)
What parts of the hierarchy of effects model to the different effects focus on? *(NOT ON TEST)*
-Communication, Sales, Non-sales behaviors
What is viral marketing? (lecture)
-Creating videos, ads, and other marketing content that are so infectious that customers will seek them out and pass them along
How does spending on digital marketing compare to traditional advertising today? What is the trend?
-Digital marketing is taking over traditional advertising because none of them have the reach / target market of digital -Digital keeps increasing each year -Traditional techniques are declining
What is the relationship between these two concepts? (Reach and Frequency) (lecture and pg 222)
-Inversely related. -The more reach you go for, the less frequency you'll have and vice versa. Brands usually go for one or the other but will make sure not to go too far on one side.
Why was Cambridge Analytica not as problematic as one might think? (lecture)
-It hardened peoples opinions on both sides, didn't really change anyone's opinion. Essentially having no effect -They were using psychographics to influence voting behavior. Psychographics don't predict very well.
Why is the spending trend happening? (i.e why are companies moving to digital?
-It is the better deal. It is cheap and has tons of data. -The world is moving to digital, so thats where you're going to get the most amount of reach. Definitely not radio or newspapers -Digital marketing has a lower CPM and a larger reach Ex: $48 for CPM Super Bowl ad vs. $2.50 CPM Social media ad
Can appeals such as fear, humor, or sex go too far?
-Not with fear, some people say you can go too far with humor of sex Sex: can become very controversial Other: -Humor and Fear? not really. (Dollar shave club and Helmet ad) -Sex? potentially, cause it can be controversial (Sexy burger ad)
What happens if fear, humor, and sex appeals do not have a link with why someone buys a product?
-People might not be as willing to participate in/purchase whatever your company is selling because it doesn't resonate w/ them -It is less likely to influence behavior -The caveat is that if you just want to get your point across, then not having a link may be more acceptable -People wont remember what brand the ad is advertising
Why didn't Starbucks have to advertise for their first 25 years in existence?
-Started off with social currency: word of mouth. At the time Starbucks was up-and-coming. Trigger: Every morning people drink coffee, don't you want to drink starbucks rather than something bland? Emotion: You love how you feel when you're in starbucks. You're cool and trendy. You're waiting for Joe from "You" to find you lol Public: You carry a white cup with a green logo on it-- its unique and easy to spot *They were naturally created to take advantage of STEPPS*
How does advertising for streaming TV combat waste coverage and what are the problems of this type of advertising?
-Using targeted ads. Problem is sometimes there are not enough targeted ads to fill a designed ad spot (i.e on hulu) The ads on streaming services use data brokers and only show up on the screens of people that it would statistically apply to. However, the kinks haven't been worked out: -*Over frequency*: you see the ad over and over again -*Placeholders* :There is no ad that plays and it's just a blank screen
Is advertising during the Super Bowl a good buy?
-Yes -You'll get a very large reach but not a lot of frequency because it'll probably only be played once. From a CPM standpoint, it is a great deal. It is only not a good value from a waste coverage perspective. Brands that usually use super bowl advertising are brands with a mass public, such as Coke or Budweiser. -Only $48 CPM compared to $158 CPM in USA today weekend 1/2 page spread. (SB is $5.5 mil, 115 mil audience. USA TD is $158k for 1 mil audience.)
Can appeals be combined?
-Yes EX: the DNA kit that the grandma started acting like she was British. Humor and straight selling EX: Sexy/ Humorous beer commercial
Why is IMC difficult?
-You are trying to align different functions areas -The manifestations of the "brand image" have to make sense in the promotional channel/medium -Organizations have to be quick to respond - nimble * Customer service can't be integrated when it's offshore. If someone calls service and it's someone for another country, it doesn't accurately portray the brand
What are the 5 main categories of promotion (promotion mix) covered in Ch 11? (pgs 218-232)
1. Advertising 2. Personal selling 3. Sales promotion 4. Public relations 5. Direct Marketing
What are the six principles of marketing through social media?
1. Know your audience 2. Stick to your strategy 3. Coordinate your message and coordinate posts to be consistent 4. Be simple and visual-don't drift away from simple but compelling messages 5. Respond to customers- especially dissatisfied ones 6. Favor quality over quantity- don't post content just to do it, invest in resources necessary to curate relevant content. Don't annoy your followers
What are the "three simple questions" for effective media selection?
1. Who is the target of the message? 2. Where will the product be advertised? 3. What timing will be used?
What is content marketing? (lecture)
A form of inbound marketing. -A marketing technique of creating and distributing valuable, relevant, and consistent content to attract a clearly defined audience --- with the objective of driving profitable consumer reaction
5. Respond to Customers.
A huge strength of social media is the ability to respond directly to customers, particularly dissatisfied ones. Social media permits marketers not only to respond, but also to have that response observed by huge numbers of other followers of your brands.
Stories
A narrative or story that people want to tell which caries your idea along for the ride
6. Favor quality over quantity
Avoid the temptation to post content to social media just to do it. Invest in the resources necessary to create or curate content relevant to your brand's followers. If you run short of things to say, its better to say nothing than annoy your followers.
What is the hierarchy of effect model? *(NOT ON TEST)*
Awareness -> Knowledge -> Liking -> Preference -> Action HEF is a useful way to categorize promotion objectives. The model postulates that people must pass through two cognitive and emotional states before taking action, such as visiting a store or making a purchase decision. Because promotion objectives can be states using psychological or behavioral metrics, the hierarchy of effects provides some guidance on how these various objectives work together.
Public
Built to show, built to grow. The more public something is, the more likely people will imitate it. Design products and initiatives that advertise themselves and create some visible behavioral residue.
What is CPM
Cost per Thousand Impressions -The cost of reaching 1000 people. The metric can be used to measure the relative cost efficiency of different media
Can you identify an appeal based on seeing an ad?
EX: My heritage= straight sell Dunkin' ad = comparative McDonald's = comparative Apple Watch= Testimony (was on the emotional side tho)
How are gross impressions, average frequency, and GRP calculated? What do these calculations tell you?
Gross impressions: Estimates the total number of times a commercial or other traditional advertisement is seen by the target populations Average Frequency: The average number of times members of a target audience are exposed to a commercial or other traditional ad Gross ratings points (GRP): measures schedule intensity. It's the product of reach and avg. frequency
What are brand communities and what is the framework for brand community development?
Groups of consumers united by strong connections of a branded product or service *-*Know your audience (focus on their needs) *-*Understand that a brand community exists to serve the people in it (give them control and encourage participation), *-*Monitor and support (listen and learn and be authentic) -Marketers should not attempt to control or govern brand communities. Customers control brand communities and decide how the community can best serve the needs of the group.
What are in-person and online examples of brand communities? (lecture)
In-person: Jeep community Online: Reddit and twitter
If I were to give you an example of a viral marketing campaign, could you identify which STEPPS category is represented?
Hump day ad: Trigger. You think about it every Wednesday Livestrong Bracelet**: Public. You can see the thing from far away, easy to spot. Rick Wolter: Compelling Story. Convicted felon who turned his life around Starbucks: Social currency, trigger, emotion, and public -BlentTech- "Will it Blend?". Emotion curiosity -yeti: practical
What are the 5 characteristics of the consumer digital culture? (lecture and pg 246) *(NOT on test)*
Information rich: Digital media produces information of use to both consumers and marketers. Consumers gain insights on brands and marketers gain insights to the customer they serve Consumer-centered: Much of the consumer-generated context created on various digital media pertains to the activities and opinions of the consumer Omnipresent: Consumer digital culture is growing in terms of reach, technology, and platforms. More consumers are entering the digital culture including older generations Interconnected: While we often associate high levels of interconnectedness strictly with social media, other digital media channels permit multiple flows of info. Connects consumers to each other in was not possible before Personalized: highly personalized content for friends, family, and, colleagues
What are the advantages and deficiencies of each methods of promotion budgeting?
Intuition: *Pro*: saves time and effort *Con*: can be wasteful and undisciplined Percentage of Sales *Pro*: simplicity, especially in stable markets. *Con*: assumes sales produce promotion, not that promotion produces sales Competitive response: *Pro*: simplicity and responsiveness to a competitive environment. *Con*: bases important budgetary decisions on the actions of competitors. Objective and task: *Pro*: budgets are based on goals and are independent of prior expenditures or competitors *Con*: vulnerable to overspending. Time consuming process that draws on consuming
What is IMC not?
It's *NOT* about having the *same look and feel* across different channels. --"matching luggage" -- will create successful integrating. But that's a terrible basis for creating an integrated campaign. Just bc the press ad and website look the same, it won't necessarily connect with customer. It many just get boring -*NOT* creating a bureaucratic nightmare. Having autonomy is good but can be hard to coordinate on an enterprise level. "Yet some of the best work we've done is empowering small teams" -IT IS about making the brand work in different environments (McDonald's menus outside the U.S.)
3. Coordinate your messaging
Marketers must manage and coordinate posts across platforms to keep content and messaging consistent
2. Stick to your strategy
Marketing through social media, like any marketing effort, should be guided by a larger strategy. Drifting away from the strategy confuses audiences and clouds brand messaging. Make sure those responsible for social media content keep the overall guiding strategy firmly in their sights and know social media's role in that strategy.
What is the biggest mistake beginning salespeople make?
They don't close the sale (not asking for their order)
Practical value
News you can use. Useful things get shared-- highlight incredible value and package knowledge and expertise so that people can easily pass it on
Which is least / most commonly used methods of promotion budgeting?
Objective and Task is *least* used because its expensive and requires a lot of in-depth analysis. Complicated Percentage of sales is *most* commonly used
Social currency
People care about how they look to others. They want to seem smart, cool, and in-the-know. So be sure to find the inner-remark-ability (will it blend?) and make people feel like insiders (please don't tell)
How is data collection changing in the future? (lecture)
Privacy policies are changing Ex: apple is giving people the option to opt-out of ad tracking and it makes it harder for Facebook and other data tracking networks to target specific ads -The internet "pays for itself" by turning a profit on user info. This could change in the future as consumers push for more digital privacy -Privacy issues-- moving away from highly targeted ads, or at least trying to get permission.
4. Direct Marketing
Promotion to an individual consumer that includes an offer, information to justify purchase, and a method for customers to respond. Typically categorized by direct communication-----Same thing as personal selling but just online Things you get individualized to you. Directly to you, instead of mass-marketing. (Like when they advertise you directly through mail/text.
Be familiar with the types of sales promotions
Ran to promote short-term reactions -Coupons -Premiums -Bonus packs -Sampling -Contests and sweepstakes -Price-off deals -Sponsorships (sometimes)
What is the concept of sales versus service? (lecture)
Sales is a powerful tool that also: -gets in the way of service, depending on the incentive structure -Is generally best funded using commission and incentives together. -Can encourage risk averse, irrational, and malicious behavior depending on the financial incentives. -When companies start pushing sales, it gets in the way of service -The dichotomy between trying to satisfy customers while trying to make sales (BAM membership) -*Customer satisfaction goes down from this* When companies sell memberships and when employees are the frontline salespeople
How do the two goals of sales promotions conflict?
Sales promotions are good at encouraging behavior, but they... -can undermine a brands value and image -create consumer adaptation (i.e waiting for promotions) -are still viable from a long-term perspective if thought out and created in ways to reinforce the brand.
2. Sales Promotion
Short term incentives designed to persuade customers to make a purchase or speed their decision process
What are the two goals of sales promotions?
Short term: behavior now Long term: Brand loyalty
4. Be simple and visual
Simplicity is best. Social media platforms allow for ease in communicating visually. Socially media is capable of adding lots of details and information. Avoid the temptation to drift away from simple and compelling messaging.
What is STEPPS? (lecture)
Social Currency- People talking about things to *make themselves look good* Triggers- Idea on *top of head*, tip of tongue- people talk about whats on their mind. "Peanut-butter and..." Emotion- when we care, we share Public- when we see others doing something, we are more likely to imitate it Practical value- news you can use = sharable Stories- how we share things. People Love stories
If I were to give you examples of marketing campaigns, could you use STEPPS to guess which would be most viral?
Starbucks
What can't firms avoid SMM?
The conversation is already happening, so you (the brand) needs to be a part of it -Customers will use SM to talk about a brand anyway, the brand needs to make sure they are maintaining a positive SM image. -It has a good amount of influence and untapped data
Why are we considering these objectives separately? *(NOT ON TEST)*
The effects model connects the communication side to the sales side -This is on the chart in ppt. -Things used in communications obj: Awareness, knowledge, liking, and preference Awareness and knowledge are cognitive variables. They represent thinking Liking and preference are affective variables. They represent feeling Behavioral variable is the doing
3. Public Relations
The management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance
1. Know your audience
The wealth of data produced by social media use gives marketers no excuse not to have strong indicators of audience composition and preferences
Why are companies shifting to digital forms of promotion?
These methods are more accountable, and measuring spending effectiveness is easier -Cheaper -There is a lot of data opportunities. You can target different samples of consumers
Triggers
Top-of-mind means tip-of-tongue. So consider the context and grow your habitat so that people are frequently triggered to think about your product or idea
What is advertising waste coverage?
Waste coverage- occurs when people outside the target audience are exposed to advertising messages not intended for them. - Or when the target audience is over or underexposed to the advertising message.
Emotion
When we care, we share. Emotional content often goes viral-- so focus on feelings rather than function. Kindle Fire using high arousal emotions
Can the two goals of sales promotions work together?
Yes!! -Find a way to run a promotion that runs with your brand image EX: is free guac from chipotle on Avocado Day
1.Advertising
any paid, non-personal communication to an audience -Institutional advertising and product advertising
