Marketing 420 Exam 1

Integrated Marketing Communication (IMC)

a strategic busn process used to plan, develop, execute, and evaluate coordinated measurable persuasive brand communication programs with consumers, customers, prospects, employees and other relevant external and internal audiences.

Marketing Plan

a written document that describes the overall marketing strategy and programs developed for an organization, a particular product line, or a brand

Direct-response Advertising

a product is promoted through an ad that encourages the consumer to purchase directly from consumer

Contact/Touch Point

each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it

Differentiated Marketing

marketing in multiple segments, developing separate mktg strategies for each

Geographic segmentation

mkt divided into different geographic units (region, city size, metro area, density)

Sales Promotion

mktg activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales

Carryover effect

monies spent on advertising do not necessarily have an immediate impact on sales

Publicity

nonpersonal communications regarding an organization, product, service or idea not directly paid for or run under identified sponsorship

Social Media

online means of communication and interactions among people that are used to create, share, and exchange content such as info, insights, experiences, perspectives and even media themselves

Direct Marketing

organizations communicate directly with target markets to generate a response and/or transaction

Internal Analysis

part of situational analysis, asses relevant areas involving the product/service offering and the firm itself

External Analysis

part of the situational analysis, focuses on factors such as characteristics of the firms customers, market segments, positioning strategies and competitors

personal channels

personal selling and word of mouth

Marketing Channels

place element of the mktg mix - sets of interdependent organizations involved in the process of making a product or service available for use or consumption

IMC

plays a major role in the process of developing and sustaining brand identity and loyalty

Primary v. Selective Demand Advertising

primary - product, what the product does brand - which brand to pick

nonpersonal channels

print media and broadcast media

decoding

process of transforming the senders message back into a thought

Promotional Push Strategy

programs designed to persuade the trade to stock, merchandise and promote a manufacturers products

Integrated Marketing Communication Plan

provides the framework for developing, implementing and controlling the organization's IMC program

Affective

realm of emotions, ads change attitudes and feelings (preference, liking) *competitive ads argumentative appeal or image copy, glamour appeal

Conative

realm of motives, ad stimulates or directs desire (purchase, conviction) *point of purchase or "last chance" offers

Cognitive

realm of thoughts - ads provide info and facts ( knowledge, awareness) *Announcements, descriptive copy, classified ads, slogans, jingles or teaser campaigns

communication is decided by

reciever

Contemporary Perspective of IMC

recognized as a business process, multiple relevant audiences, demand for accountability and measurements of outcomes

Marketing Objectives

refer to what is to be accomplished by overall mktg program

Communication Objectives

refer to what the firm seeks to accomplish with its promotional program

Consumer Oriented Sales Promo

targeted to end-user of product or svc. (i.e. coupons, samples, premiums, rebates, contests, etc.)

Trade Oriented Sales Promo

targeted to resellers - wholesalers, distributors, retailers (i.e. promo and merch allowances, price deals, sales contests, trade shows)

Packaging

has become an increasingly important aspect of product strategy - often the 1st exposure to product

Goal of Branding

(1) build and maintain brand awareness and interest (2) develop and enhance attitudes toward the company, product or svc. (3) build and foster relationship between consumer and the brand

2 Steps to Selecting a Market

(1) determine how many segments to enter (2) determine which segments offer the most potential

Steps of Target Marketing

(1) identify markets with unfulfilled needs (2) determine mkt segmentation (3) select mkt to target (4) position through mktg strategies

Pros of DAGMAR

- focus on communications objective - measurement of stages - better understanding of goals and objectives - less subjective

Cons of DAGMAR

- relies heavily on the response of hierarchy - may not increase sales - practicality and cost - inhibitionIn of creativity

Assumptions for Marginal Analysis

-sales are a direct measure of advertising and promotion efforts -sales are determined solely by advertising and promo

80-20 rule

20% of a brand's buyers account for 80% of their sales volume

The Semiotic Perspective

3 components -object/brand -sign or symbol representing intended meaning - interpret intended meaning

Marketing Mix

4 Ps - price, product, promotion, placement

Models of the Hierarchal Response Process

AIDA, Hierarchy of effects, innovation adoption, info processing

Characteristics of Objectives

Attainable, Realistic, Measurable/quantifiable, specific

Advertising to Business and Professional Markets

B2B professional advertising - to docs, dentists, lawyers trade advertising - wholesalers, distributers, retailers

Objectives for IMC

Communications, planning & decision making, measurement and evaluation

Lavidge and Stiener Hierarchy of Effects Model

Conative, Affective, Cognitive

Main focus of NEW AMA Definition

Creating relationships with customers so they value benefits

What is an advantage of publicity over other forms of promotion?

Credibility

Value

Customer's perception of all the benefits of a product or svc. weighted against all the costs of acquiring and consuming it

DAGMAR

Defining Advertising Goals for Measured Advertising Results

Examples of Direct Marketing

Direct mail, internet sale, shopping channels, catalogs, direct response, telemarketing

Target Market Selection

Done after evaluating market opportunities and doing a competitive analysis and has a direct implications for its advertising and promotional efforts

Main focus of OLD AMA Definition

Exchange - central concept in mktg & use of the basic marketing activities to create and sustain relationships with customers

Developing a Positioning Platform (NIB)

Id competitors, assess perception of them, determine their position, analyze consumer preference, make the positioning decision, monitor the position

Top Down Budgeting

Management sets the spending limit

NEW AMA Marketing Definition

Mktg is the activity, set of institutions, and process for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.

Reasons for the growing importance of IMC

Movement from... 1. media towards multiple forms of advertising 2. mass media towards specialized media 3. manufacturing dominance towards retail dominance 4. general focus towards data based mktg 5. low towards high agency acctability 6. traditional competition towards performance based competition 7. limited to widespread internet access

Advertising to Consumer Markets

National Advertising Retail/local advertising primary vs. selective demand advertising

Publicity Vehicles

News releases, feature articles, press conference, special events, photos

Is repositioning easy to accomplish?

No. Difficult bc of entrenched perceptions and attitudes toward a product or brand

What is an exception to the "paid" aspect of advertising?

PSA - donated by the media

Market Segments

target markets the company wishes to pursue

Price Variable

What the consumer must give up to purchase the product or svc

Brand Identity

a combination of factors: name, logo, symbols, design, packaging, product or service performance, and image or association in the consumers mind`

Cognitive response approach

a method for examining consumers cognitive processing of advertising messages by looking at their cognitive response to hearing, viewing, reading and communicating examines types of thoughts that are evoked by an advertising method

Basic elements of the Promotional Mix

advertising, sales promotion, publicity/PR, personal selling

Interactive Media

allows for a two way flow of communication whereby users can participate in a and modify the form and content of the information they receive in real time

Repositioning

altering a product or brand's position due to: - declining or stagnant sales - anticipated opportunities in the other mkt positions

Brand Equity

an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to company name, brand name, or trademark

Advertising

any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor

Budgeting Methods

arbitrary, percent of sales, ROI, Affordable, competitive parity

Market Opportunities

areas where there are favorable trends, where the company believes customer needs and opportunities are not being satisfied , and where it can compete effectively

Different ways to position products

attiributes/benefits, price/quality, use or application, product class, product user, competitor, cultural symbols

DAGMAR Approach to objectives

awareness - comprehension - conviction - action

Promotional Mix

basic tools used to accomplish an organization's communication objectives

routes to attitude change

central route & peripheral route

stages of hierarchal of effects model

cognitive, affective, behavioral

DAGMAR thesis

communications effects are the logical basis for advertising goals and objectives against which success or failure should be measured

Factors affect sales

compeition, technology, economy, product quality, price, distribution , advertising and promo

Advertising sales/response functions

concave-downward function & S-shaped response curve

2 Categories of Sales Promotion

consumer oriented or trade oriented

product/message thoughts

counterargument/support argument

Communication Objective

derived from mktg plan and more narrow than mktg objective

Marketing Segmentation

dividing a mkt into distinct groups with common needs who respond similarly to a marketing situation

Behavioristic Segmentation

dividing consumers into groups based on their usage, loyalties, or buying responses to a product

Demographic Segmentation

dividing market based on ages, gender, race, life stage, birth era, marital status, etc.

Psychographic Segmentation

dividing mkt based on the basis of personality, lifecycles, and/or lifestyles

Using the Internet as an IMC Tool

educates & informs customer, a persuasive advertising medium, a sales tool or an actual sales vehicle, customer database info, communicates and interacts with buyers, provides customer service and support, builds and maintains customer relationships

concave-downward function

effects of advertising quickly begin to diminish

Public Relations

evaluates public attitudes, identifies the policies and procedures of an individual or organization with public interest, and executes a program of action to earn public understanding and acceptance

Elaboration Likelihood Model (ELM)

focuses on the way consumers respond to persuasive messages based on amount of nature of elaboration or processing of information

Marketing Objectives

generally stated in marketing plan, achieved through overall marketing plan, quantifiable(sales, mkt share, ROI), to be accomplished in given pd of time, must be realistic & attainable

Benefit Segmentation

grouping of consumers based on attributes sought in a product

Strategic Marketing Plan

guides allocation of resources; evolves from an organizations overall corporate strategy and serves as a guide for specific mktg programs and policies

Semiotic

how symbols have meanings

Undifferentiated Marketing

ignores segment differences and offers just one product or service to the entire market

Basic Principle of Marginal Analysis

increase spending if... cost is less that the marginal return hold spending if... cost is equal to incremental decrease spending if... cost is more than the incremental return

levels of target audience aggregation

individual and group mkt < niche mkt < mkt segments < mass mkts

zero-based communication planning

involves determining what tasks need to be done and which mktg communications functions should be used and to what extent (use functions that effectively address problems/opportunity & use mix that draws on strengths of functions chosen)

What is nonpersonal about Advertising?

involves mass media (tv, radio, magazines, newspapers) that transmits a message to large groups of individuals, often at the same time

Integrated Marketing Communication Management

involves the process of planning, executing, evaluating and controlling the use of the various promotional mix elements to effectively communicate with target audience

Goal of IMC

is to generate short-term returns and build long-term brand value

Field of Experience

refers to the experiences, perceptions, attitudes, and values one brings to the communication experience

Product Symbolism

refers to what a product or brand means to consumers and what they experience in purchasing and using it

successful communication

select an appropriate source - develop a properly encoded message - select the appropriate channel for target audience - receive feedback

hierarchy of effects model

shows the process by which advertising works; assumes a consumer passes through a series of steps in sequential order from initial awareness of product to actual purchase

Competitive Advantage

something special a firm does or has that gives it an edge over competitors

source oriented thoughts

source derogation/source bolstering

PR Tools

special event sponsorship, publicity vehicles, cause-related marketing, special publication, community activities, corporate advertising, public affair activities

Promotional Pull Strategy

spending money on advertising and sales promotion efforts directed toward the ultimate consumer

Positioning

the art and science of fitting the product or svc to one or more segments of the broad mkt in such a way as to set it meaningfully apart from competition a process that influences potential customer's overall perception of a brand, product line, or organization in general.

Promotion

the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea

contribution margin

the difference between the total revenue generated by a brand and in its total variable costs

Channel

the method by which the communication travels from the source or sender to the reciever

Position

the place you occupy in consumers' minds relative to competitive offerings

OLD AMA Marketing Definition

the process of planning & executing the conception, pricing, promo & distribution of ideas, goods, & services to create exchanges that satisfy individual & organizational objectives

central route to persuasion

the receiver is viewed as a very active, involved participant in the communication process whose ability and motivation to attend, comprehend, and evaluate messages are high

peripheral route to persuasion

the receiver is viewed as lacking the motivation or ability to process information and is not likely to engage in detailed cognitive processing

ad execution thoughts

thoughts about ad itself/affect attitude toward ad

Types of word of mouth

traditional WOM buzz mktg consumer generated mktg (CGM) Visual Marketing

Inside out planning

traditional advertising based view of mktg communications

Concentrated Marketing

used when the firm selects one segment and attempts to capture a large share of this mkt

forms o encoding

verbal, graphic, musical, animation