MARK Exam 3 - Module 6 (Ch 17,18,19)

Return on marketing investment (ROMI)

(Gross margin-marketing expenditure / marketing expenditure) x 100

Three elements of an IMC strategy

1) the consumer, 2) the channels, 3) the evaluation

Event sponsorship

A PR tool where corporations support various activities, usually in the cultural or sports and entertainment sectors

Contests

A brand-sponsored competition that requires some form of skill or effort

Lagged effect

A delayed response to a marketing communication campaign; it generally takes many exposures before a consumer fully processes the message

Food and Drug Administration (FDA)

A federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products

Sweepstakes

A form of sales promotion that offers prizes based on a chance drawing

Gross Rating Points (GRPs)

A measure used for comparing the effectiveness of different media vehicles: average reach x frequency for a SINGLE MEDIUM (can sum)

Cold calls

A method of prospecting in which salespeople telephone or go to see potential customers without appointments

Telemarketing

A method of prospecting in which salespeople telephone potential customers; popularity is falling, regulated

Brand awareness

A potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service; strength of the link

Relationship selling

A sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties

Institutional advertisements

A type of advertising that promotes a company, corporation, business, institution, or organization; NOT intended to sell a particular product or service

Q: Qualifying leads by their financial resources to pay for a product or service is acceptable in ______ settings, but never in ______ settings

A: B2B, B2C

Q: The _____________ of the presentation may be the most important part of the entire selling process because it is when the salesperson establishes exactly where the customer is in the buying process

A: Beginning

Q: A _________ advertising schedule runs steadily throughout the year and is good for products/services consumed continually, while ___________ is a schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising for seasonal products. _________ is a combination of the two, where a base level of advertising is maintained but increases in intensity during certain periods.

A: Continuous, flighting, pulsing

Q: Advertisers must be careful not to let ______ overshadow the _______

A: Creativity, image

Q: This marketing channel appears in all four boxes

A: Direct marketing

Q: The ________ of the ad often dictates the ________ when ad is created, the message and appeal translated creatively into words, pictures, colors, music, etc

A: Execution, medium

Q: What are the 2 measures used to gauge consumers' exposure to marketing communications?

A: Frequency and reach

Q: The ARBY'S NOW HAS COKE ad was an example of ______ advertising

A: Informative

Q: Advertisements about GE's Ecomagination program are __________ advertisements

A: Institutional

Q: Disney increases ______ in an upcoming tour or record by including a mention in star's TV shows.

A: Interest

Q: Importance of _____ has grown as the costs of other forms of marketing communications have increased

A: PR

Q: Advertising is a _______ form of communication serving to _________ consumers that must be carried by _________, its message must be _____ or ________

A: Paid; persuade; some media; known; knowable

Q: IMC programs regard each of the firm's marketing communications channels as ________________

A: Part of a whole

Q: Lacome's "The skin tone of your dreams" ad is an example of ______ advertising

A: Persuasive

Q: Marketing goals are part of the firm's ___________, a subsection of the firm's marketing plan, and should be explicitly defined and measured

A: Promotional plan

Q: Follow up establishes the following 5 things

A: Reliability, responsiveness, assurance, empathy, tangibles

Q: A Kleenex display at the grocery store is an example of _______ advertising

A: Reminder

Q: Because salespeople can be held accountable for illegal actions sanctioned by the employer, and must be able to live within their own ethical comfort zone, there is often conflict between the _________ and _________

A: Sales force, corporate policy

Q: Equal opportunity and fairness in hiring, promotion, supervision, training, assignment, and compensation must be observed in the relationship between the ________ and the ________

A: Sales manager, sales force

Q: Though reservations can arise during each stage of the selling process, they are very likely to occur during the ___________________

A: Sales presentation

Q: For frequently purchased consumer goods in the maturity stage, like soda, __________________ offers a good indicator of ad effectiveness

A: Sales volume

Q: It is important for sales managers to lead by example so that the _________ as the frontline emissaries for the firm are ethically and legally correct in their dealings with the ____________

A: Salespeople, customer

Q: Puma uses Jozy Altidore to target soccer fans, and Selena Gomez to target young pop music fans. This is a result of research, which is part of ________

A: Step one of advertising - identifying target audience

Q: When asked about American-made motorcycles, a consumer responds "Harley." This is __________

A: Top-of-mind awareness

Q: "Oreo...Milk's Favorite Cookie" is an example of a ______

A: USP

Lift

Additional sales caused by advertising

Public service advertising (PSA)

Advertising that focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing and a subset of institutional advertising; often get free airtime

Emotional appeals

Aims to satisfy consumers' emotional desires rather than their utilitarian needs; fear/safety, humor, happiness, love/sex, comfort, nostalgia

Unique selling proposition (USP)

An abbreviated value proposition that is the common theme or slogan in an advertising campaign; succinctly communicates the most unique attributes of the product or service, "snapshot" of the entire campaign

Search Engine Marketing (SEM)

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

Federal Communications Commission (FCC)

An independent federal agency that regulates interstate and international communication by radio, television, telephone, telegraph, cable, and satellite

Pretesting

Assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do

Advertising plan

Asubsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful

Seven steps of planning and executing an ad campaign (AOBMMAA)

Audience, objectives, budget, message, media, ad, assess

Cause-related marketing

Commercial activity and PR tool in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit; a type of promotional campaign

Informative advertising

Communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase; important early in the product's life cycle when consumers have little information

Persuasive advertising

Communication used to motivate consumers to take action, Generally occurs in the growth and early maturity stages when competition is most intense Repositions product in later stages

Reminder advertising

Communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle

Customer relationship management system

Customer database or data warehouse with transaction information, customer contact information preferences, and market segment information

Push strategy

Designed to increase demand by motivating sellers—wholesalers, distributors, or salespeople—to highlight the product, rather than the products of competitors, and thereby push the product onto consumers

Two elements of conveying the message

Determining the key message and deciding what appeal would most effectively convey it

Rebates

Discounts given by manufacturers, stores, and service establishments in the form of a refund

Trade shows

Events that are attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry

Niche media

Focused and generally used to reach narrow segments, often with unique demographic characteristics or interests

Informational appeals

Help consumers make purchase decisions by offering factual information that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provides

Frequency

How often the audience is exposed to a communication within a specified period of time

Relevance

How useful an ad message is to the consumer doing the search

Objective-and-task method

IMC budgeting method that determines the budget required to undertake specific tasks to accomplish communication objectives Set objectives, choose media, determine costs for EACH product or service and sum

Mass media

Ideal for reaching large numbers of anonymous audience members; include outdoor/billboards, magazines, radio, and TV

Brand elements

Identify the sponsor of the ad, typically through a logo and a unique selling proposition

Three overall objectives of any advertising campaign

Inform, persuade, remind

Public relations

Involves managing communications and relationships to achieve various objectives - building and maintaining a positive image, handling unfavorable press, generating free media attention

5 steps of the personal selling process

Leads, preapproach, presentation, closing, follow up

Body copy

Main text portion of an ad that builds on interest generated by the headline and subhead and visuals

Direct marketing

Marketing that communicates directly with target customers to generate a response or transaction; mail, catalogs, email; includes mobile marketing

Online marketing

Marketing through websites, blogs, and social media

Tracking

Monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium

Desire

Moving a consumer from "I like it" to "I want it"

Closing the sale

Obtaining a commitment from the customer to make a purchase

Preapproach

Occurs prior to meeting the customer for the first time and extends the qualification of leads procedure; must conduct additional research and plans for meeting

Aided recall

Occurs when consumers recognize a name (e.g., of a brand) that has been presented to them.

Premiums

Offers an item for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing

Advertising

Placement of announcements/ persuasive messages purchased in any form of mass media by businesses who seek to inform/persuade members of a target market; traditionally PASSIVE and OFFLINE but changing

Federal Trade Commission (FTC)

Primary enforcement agency for most mass media advertising

Coupons

Provides a stated discount to consumers on the final selling price of a specific item; handled by the retailer

Product placement

Putting products into TV shows and movies where they will be seen

Integrated Marketing Communications (IMC)

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

Q: For any communications campaign to succeed, the firm must deliver the __________ to the __________ through the ___________ to profit from long term consumer relationships rather than just short-term transactions

Right message, right audience, right media

Inbound marketing

Salespeople curate blogs to draw in customers and generate leads

Qualifying leads

Salesperson determines consumers and their potential through methods like research, networking, conferences, cold calls, or social media

Deals

Short-term price reductions like "featured" or "buy 1 get 1 free"

Headline and subhead

Should be short, use simple words, and include primary product or service benefits Headline draws attention Subhead provides more information

Sales promotions

Special incentives/excitement-building programs, encourage the purchase of a product or service; coupons, rebates, contests, free samples, and point-of-purchase displays used to build short-term sales or loyalty; OFFLINE and PASSIVE/INTERACTIVE

Loyalty programs

Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time

Advertising schedule

Specifies the timing and duration of advertising

Media buy

The actual purchase of airtime or print pages; generally the largest expense in the advertising budget

Posttesting

The evaluation of an IMC campaign's impact after it has been implemented

Pull strategy

The goal is to get consumers to pull the product into the marketing channel by demanding it

Top-of-mind awareness

The highest level of awareness, occurs when consumers mention a specific brand name first when they are asked about a product or service

Puffery

The legal exaggeration of praise, stopping just short of deception, lavished on a product

Click-through rate (CTR)

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

Impressions

The number of times an ad appears in front of the user

Reach

The percentage of the target population exposed to a specific marketing communication (like an ad) at least once

Media planning

The process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience

Role playing

The salesperson acts out a simulated buying situation while a colleague or manager acts as the buyer

AIDA Model

The series of mental stages through which consumers move as a result of marketing communications: Awareness leads to Interests, which lead to Desire, which leads to Action Also known as the think, feel, do model

Personal selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision; costly, but best and most efficient way to sell certain products and services

Action

The ultimate goal of any form of marketing communications; driving the receiver to some type of action

Rule-of-thumb method

Use prior sales and communication activities to determine the present communication budget

Product-focused advertisements

Used to inform, persuade, or remind consumers about a specific product or service

Social shopping

Using the internet to communicate about product preferences with other shoppers

Web-tracking software

Web-based media metric that measures how much time viewers spend on particular web pages, the number of pages they view, how many times users click banner ads, which website they came from, and so on

Cross promoting

When two or more firms join to reach a specific target market