Advertising Test 3

goals of contests and sweepstakes

-encourage traffic to a website or retail location -create awareness and exposure--it's doubtful that it will boost sales *it is the INTRINSIC rewards that usually draw people back, not extrinsic*

Manufacturers argue against slotting fees

-form of extortion -diverts money they could spend on advertising and marketing -detrimental to small manufacturers who can't afford the fee

brand-preference customers

-have small set of preferred brands -buy deals for one of preferred brands

Buying product on-deal in one part of the country and shipping it to another part of the country where it is off-deal.

Diversion...this does not happen nearly as often as forward buying because of the cost of shipping

_____ _____ measures the proportion of ad impressions that result in users clicking on or mousing over an ad

Dwell rate

_____ ____ measures the amount of time individuals spend engaged with an online ad

Dwell time

The biggest surge in product placement came in 1982 with.....

ET and Reese's Pieces....65% increase in sales

_______ mktg involves a company's support of a specific event

Event -a local rodeo or special olympics -closely related to lifestyle mktg -involves setting up a booth or display at event -bring name recognition to a company -boost employee morale

Cause-related Mktg

Ex. A dentist provides free services to women living in a shelter -make a difference to consumers and create a bond with customers

Greenwashing

Faking green can be very damaging to a company's image and create backlash

Retailers purchasing additional merchandise when it is on-deal to sell later when it is off-deal. This allows them to earn extra money. The disadvantage is the carrying costs of the extra-inventory

Forward Buying

______ involve using logic to reduce the negative impact of the incident

Justifications

PURLs

Personalized URLs that are preloaded with personal and customized information for that customer

A planned insertion in a movie, television show, book, or other forms of entertainment.

Product Placement

The mktg function that evaluates public attitudes, identifies areas within the org that the public might be interested in, and executes a program of action to earn public understanding and acceptance

Public Relations

Damage Control

Reacting to a negative event, regardless of the cause... Proactive prevent strategies, reactive damage control strategies

Creation and execution of an instantaneous marketing message in response to or during a live event

Real-Time Mktg

Digital tool or venue that allows for social interaction

Social media

Utilization of social media or social networks to market a product, company, or brand

Social media marketing

Social structure of individuals or organizations

Social network

Green Mktg

The development and promotion of products that are environmentally safe -people are concerned about the environment and support green marketing -most consumers still see green products as being inferior

Message passed from one consumer to another: email, blogs. Form of advocacy or word of mouth endorsement

Viral Marketing -ads -hyperlinked promos -online newsletters -streaming videos -games

Tie-ins

When 2 or more companies or products are promoted within a single campaign

Mini applications embedded in banners. Provide personalized access to info that resides outside of the banner as and even outside of the website

Widgets

advertising gives you...

a reason to buy

contests require some type of ____ __ _____. sweepstakes rely on _____ _____

activity or skill random chance

An alternative marketing method designed to make an impression on people without it looking like _____

advertising

Wholesalers and retailers prefer _____ over ______

allowance over incentives

Developing alternative marketing programs require ______ and _______

creativity and imagination

Brand communities cannot be created by brands or companies...It has to be ____ _____

customer driven

Rebates are for _____ goods

hard...automobile, appliance

A ____ is them mention of the company's name/brands in a news story or in any media

hit

Capturing _____ is a goal of PR

hits

Using color, light, sound, taste, motion, and smell increases _____________ engagement

in-store marketing

sales promotion gives you...

incentive to buy

The number of int'l trade shows has ______ as global competition has increased

increased -smaller regional niche shows make it easier for companies to locate good prospects and the costs are much lower

the greatest emphasis on promotions would come in the ______ stage

maturity because there are so many competitors

Trade shows are more of an opportunity to ______, _____, and ______

meet look and learn

Location is the key for _____ __ ______

point of purchase....the last chance to reach a potential buyer

prizes, gifts, or other special offers consumers recieve when purchasing a product. the key is that customers pay full price for the product

premiums

Cinema advertising occurs ____ to the movie. It is a captive audience. Most will watch the ad

prior

brand loyal customers

purchase only preferred brand

Refunds are for ____ goods

soft....food, clothing

True customer-generated buzz occurs after the awareness is generated through _____ media

traditional

People do not like refunds and rebates because they have to ____wait for the check

wair

Reinforcement seekers

want reassurance they made the right decision in past purchases

Education seekers

want to browse, look, and learn but are not interested in buying anything

Overlays

-At times companies combine 2 or more consumer promotions into a single campaign ex.a sweepstake or contest with a coupon attached; coupon + sample

Expressions of Innocence

"We didn't cause this negative event to happen, it was some other company"

Redemption rates are low for refund and rebates, but if the rebate is more the ______ then the rate jumps up to 65%

$50 automobiles and computer printers are two major users

______ per year spent on in-game ads

$7 bil product placement in video games

Cooperative Advertising *most used and well-known trade incentive*

*Manuf* -pays part of retailer's ad costs -gains exposure in local markets *Retailer* -must follow guidelines: no competing brands -accrue monies: amount is based on sales -can expand advertising

Trade allowance problems

*retailers do not always pass along the savings to customers*

Guerrilla Mktg

-Developed by Jay Conrad Levinson -designed to bring instant results with low-cost, unique marketing methods -Focuses on a region or area and involved interacting with consumers in a unique and different way -Goal is to create excitement and to generate buzz...often alternative media are used -Build relationships with customers

Lifestyle Mktg

-Identifying marketing methods associated with the hobbies, entertainment, and lives of the target audience -making contact with consumers where they go for relaxations, excitement, socialization, and enjoyment. -Intersect with consumers during daily lives

Experiential Mktg

-Intersection of direct mktg, field mktg, and sales promotions -increasing the experience of direct marketing through an interactive connection -rather than just pass out samples, make it an experience the consumer will remember

Cooperative Merchandising Agreement

-a formal agreement between a manuf and a channel member(normally a retailer) -specifies the marketing functions the channel member will perform in exchange for the financial incentive retailers must perform some marketing functions and manufs have control...long term commitment

Brand Advocate characteristics

-behavioral commitment -emotional connection -quality communication skills

Sponsorship Mktg

-build brand equity and positive feelings toward a company -positive feelings toward the sport, athlete, team, concert, or whatever is being sponsored will be transferred to the brand

Types of trade incentives

-cooperative merchandising agreement -premium or bonus pack -coop advertising programs

Retailer justification for slotting fees

-costs money to add new product to inventory -requires shelf space -simplifies the decision process -adds to the bottom line

Trade allowances: Off-invoice Allowances

-discount on the product to encourage channel members to place an order -35% of all trade dollars -retailers are reluctant to purchase products off-deal -pressure from competitors who offer deals keep the cycle going

benefits of sampling

-introduce new products -generate interest -generate leads -collect info -internet sampling -boost sales

Keys to successful premiums

-match premium to target market -avoid fads and try for exclusivity -don't expect premiums to increase short-term profits -integrate premiums with other IMC tools: especially advertising and POP displays

Trade allowances: Slotting fees

-most controversial form -a fee charged by retailers to stock new products

Problems of Trade Sales Promos

-often corporate reward structures push sales -easy way to stimulate sales often is not part of the IMC plan -while it can boost sales, it can also result in higher costs and lower profits -encourages over reliance on promotions to push merchandise with channel members and with customers -becomes difficult to reduce because competitors are using promotions to keep up with each other -end result is potential erosion of brand image

price-sensitive customers

-price is primary factor in purchases -brand name is not important -take advantage of deals that reduce price

Promotion-prone customers

-respond to deals (coupons, sweepstake, etc) -like to purchase products that are on-deal

Trade Contests

-used to achieve sales targets -funds known as "spiff money" -rewards can be prizes or cash

Buzz Marketing Stages

1. Inoculation: product introduction. difficult to generate buzz 2. Incubation: product trial. still difficult 3. Infection: widespread use. the best time

5 parts of PR

1. identify internal and external stakeholders 2. assess the corporate reputation 3. audit CSR 4. create positive image-building activities 5. prevent or reduce image damage

Alternative Media Venues

1.Video Games 2. Cinemas 3.Subways, street mall kiosks, escalators, parking lots, airlines, shopping bags, clothes

Manufacturers issue about ______ of all coupons

80%

Crisis Management

A company can either accept the blame for an event and offer an apology or they can refute the charges against them. It can be an opportunity or a problem

Impression Mgmt

An attempt to project a certain type of image to others and to consciously or unconsciously attempt to control the images that are projected in real or imagined social interactions

______ methods have emerged as advertisers look for new ways to reach consumers

Alternative

The goal is to reach consumers in *unexpected* ways or in everyday life situations that resonate with consumers and where there is less competition for attention

Alternative Marketing Program

______ is the leader of consumer generated reviews

Amazon

Many companies sponsor individuals as agents or advocates to introduce new products.. The idea is to talk to their friends and other people. They should be genuine and do believe in the product being pitched.

Brand Ambassadors -companies have no control of what they say or who they talk to

The integration of the entertainment and advertising by embedding the brand into the storyline of the movie, TV show or other entertainment medium

Brand Entertainment

_____ ______ emphasizes consumers passing along information about a product and since it is word-of-mouth from an individual it has a higher level of credibility

Buzz marketing: Consumers who like a brand

types of consumer sales promotions

coupons premiums contest & sweepstakes refunds & rebates sampling bonus packs

Financial incentives

coupons rebates contests

An obligation to act ethically and to consider the needs of society

CSR

A program whereby a firm ties a marketing program to a charity in order to generate goodwill

Cause-related mktg

Internet Intervention

Consumers can spread bad news quickly -Assign employees to monitor online communications -Provides information on what people are thinking

Security issues

fear that their credit card number will get stolen or worse, identity theft

Brand Community

The ultimate in brand loyalty and brand devotion -offers symbolic meaning -provides interaction between the brand, consumers, and companies -offers shared values and experiences ex. Harley Davidson, Jeeep, Apple

The channel member must perform some type of marketing function to receive the funds.

Trade incentives most are done with retailers

________ media faces many challenges with clutter and declining attention

Traditional

consumers must make a conscious effort to clip the coupon --> creates brand ______ and encourages purchase

awareness

Trade shows are used extensively in _____ marketing programs

b-2-b

when an additional or extra number of items are placed in a special package

bonus pack...typical bonuses range from 20-100%...paper towels, tooth paste increase usage of product stockpile the product match or preempt competition develop customer loyalty attract new customers encourage brand switching

Least engaging form of in-store mktg:

ceiling banners and overhead mobiles

Interactive Mktg

development of mktg programs that create 2-way communications and enhance engagement of consumers with the brand -Can track activity, personalize messages -emphasize 2 primary activities: targeting individuals, engaging consumers

Most engaging form of in-store mktg:

end-aisle displays and merchandise displays

Sales promotions _____ brand equity and focuses more on _______

erode price

Value-added incentives

exclusive information cause-related marketing

Damage control and greenwashing are essentially the same public relations practices.

false

The Internet is the ideal medium for interactive marketing because of the low cost per contact

false because it can track consumers' activities and personalize messages.

Cooperative merchandising agreements can be formed between two manufacturers seeking to jointly advertise products

false a manufacturer and a retailer

Guerilla marketing involves using traditional marketing tools to reach consumers with a controversial message.

false alternative marketing tools

. During the infection stage of buzz marketing, it is virtually impossible to generate word-of-mouth communications from actual customers.

false best time

Sponsorships and event marketing are used by companies to create a short-term burst in sales

false build brand awareness and customer loyalty

Brand advocates need to display a commitment to the brand either by their purchases of the brand or their emotional connection to the brand. Both are not necessary.

false by both

If brand communities are to thrive, it is important that it be driven by brand owners and for the company not to get involved.

false customers

Experiential marketing combines direct marketing, buzz marketing, and sales promotions into a single consumer experience.

false field marketing

Intra-company tie-ins are the promotion of two different products from different companies using one consumer promotion.

false inter

Employees are external stakeholders of an organization.

false internal

Rebate programs tend to be more effective than other promotions because consumers get excited about them and this leads them to wait patiently until one is offered before making a purchase.

false less effective, more tired, and not patient

In terms of e-commerce, a value-added incentive is used to cause consumers to change purchasing habits in the short term

false long term

Cooperative advertising takes place when the consumer pays part of the advertising cost.

false manufacturer

Retailers tend to use forward buying less than diversion due to the carrying costs associated with forward buying.

false more than, shipping costs, and diversion

Three types of incentives can be used to encourage customers to make online purchases: financially-based incentives, convenience-based incentives, and pricebased

false not price based... value based

The most controversial form of trade allowance is the off-invoice allowance.

false slotting fees

Brand spiraling is the practice of using interactive media to promote and attract consumers to an on-line Web site.

false traditional

Seller opportunities

fear that the business is not legitimate and is out to cheat them

E-Commerce Benefits:

financial incentives convenience incentives value-added incentives

coupons are sent through print media with ____ ____ ____

free standing inserts

Trade allowance: Exit fees

payment of monies to remove an item if it does not sell and has to be removed from inventory

Privacy issues

information about them will be sold to other businesses

Inter-company tie-in

involve two or more companies working together

Intra-company tie-in

involves products with one company

Approx 60% of all purchase decisions are made in the ____ _____

retail store

the actual delivery of a product to consumers for their use or consumption

sampling encourage prospects to try the brand and compare it to the brand they are currently using

Solution seekers

seek solutions to specific problems and are in the buying mode if they find the right solution

Buying teams

seek vendors for their businesses, and are usually ready to talk sales

Sales promotion is marketing communication activities, other than advertising, personal selling, and PR, in which a ______ ______ ______ motivates a purchase

short-term incentive

Purchasing habits

they prefer shopping in a store where they can see the merchandise

types of trade sales promotions

trade allowances trade incentives trade show trade contests

Consumers today expect corporate ________, so the company and its employees should act in a socially-responsible manner

transparency

. A brand or product recommendation from one person to another carries a higher level of credibility than does an advertisement or a paid spokesperson.

true

A brand's appeal may be stronger when it is shown in a nonadvertising context, such as in product placements and branded entertainment.

true

A contest requires the use of a skill while a sweepstakes relies on random chance.

true

Brand-loyal consumers purchase only one particular brand and do not respond to consumer promotions unless it is for their particular brand.

true

Buzz marketing emphasizes consumers passing along information about a product to other consumers.

true

Content seeding by brands can be any type of incentive that offers information, uniqueness, novelty, or financial benefits.

true

Corporate social responsibility is the obligation an organization has to be ethical, accountable, and reactive to the needs of society.

true

Crisis management involves accepting the blame for an event and offering an apology or vigorously defending the company when negative charges have been made.

true

In choosing a cause-related program, the marketing team should focus on causes that relate to the company's business.

true

Interactive marketing is the development of marketing programs that create interaction between consumers and businesses rather than simply sending messages to potential customers

true

One of the functions of a public relations department is to assess the company's reputation.

true

Reasons consumers are wary of shopping on the Internet include seller opportunism, security concerns, information privacy issues, and purchasing habits.

true

Social media marketing is the utilization of social media and/or social networks to market a product, company, or brand.

true

The Internet has changed the ways individuals communicate and how the world conducts business.

true

Viral marketing is preparing a marketing message that in some way is passed from one consumer to another through digital means.

true

Interactive blogs allow ____ ___ communication

two-way ...higher level of risk

Buzz mktg works the best when the brand is ______, new, or performs better than the competition. If a company can get customers involved it works best.

unique

Power buyers

upper management or key purchasing agents with the authority