Mktg Exam 4
advertising campaign steps
(1) identifying and analyzing the target audience, (2) defining the advertising objectives, (3) creating the advertising platform, (4) determining the advertising appropriation, (5) developing the media plan, (6) creating the advertising message, (7) executing the campaign, and (8) evaluating advertising effectiveness.
Guidelines for optimizing websites for organic (or unpaid) search results include:
(1) publishing relevant and useful content (2) keeping content current (3) using meta-data tags to clearly describe the webpage and provide information about is contents (4) having links with rich descriptions (5) using alt tags (alternative text descriptions) to describe images on the page, instead of generic titles like "image 1."
Marketers value the impressions
(e.g., number of people who are exposed to a message) gained from their promotional efforts, and account for impressions from both owned and earned media as well as impressions from paid media.
Disadvantages (coupons)
- Coupon fraud (ex: counterfeit internet coupons as well as coupons cashed in under false retailer names) - potential for retail stockouts - customers who redeem coupons for products they normally buy anyway.
Choice of media
- Effective outdoor displays and short broadcast spot announcements require concise, simple messages - Magazine and newspaper advertisements can include considerable detail and long explanations.
Advantages (personal selling)
- Greater impact on customers - provides immediate feedback, allowing marketers to adjust their messages to improve communication
Characteristics of the Target Market
- Size, geographic distribution, and sociocultural and demographic characteristics of an organization's target market help dictate the methods to include in a product's promotion mix - If the size is limited, the promotion mix will probably use a more targeted form of marketing such as personal selling, which can be very effective for reaching small numbers of people. - When a product's market consists of millions of customers, organizations rely on mass marketing through advertising and sales promotion, because these methods reach large groups at a low cost per person. - When the population density is uneven around the country, marketers may use regional advertising to target smaller markets. - When the company's customers are numerous and dispersed, regional or national advertising may be more practical.
Websites (owned media)
A company brand or website is often the foundation of digital marketing. - Many times, the goals of digital marketing tactics are to drive consumers to the website where they can purchase products or interact with the brand. - Because the company controls the website, it does not have to pay to place any messages on the pages; hence, we consider it as "owned" media.
Characteristics of online media (Growth and Benefits of Digital Marketing)
Addressability Interactivity Accessibility Connectivity Control
Social media engagement
An effective experiential activation is worth sharing! How much was it shared? Make it easier with custom hashtags, selfie opportunities, etc.
advertising campaign success factors:
Based on meaningful key insight Focus on a single message Actually communicate that message
ethical and legal issues digital marketing
Brand safety→ Companies do not want their advertisements appearing alongside questionable or controversial content. privacy online fraud intellectual property and illegal activity
Pricing considerations
Digital media marketing facilitates both price and nonprice competition because internet marketing gives consumers access to more information about products and prices. - the demand for low-priced products grows, leading to the creation of daily deal sites. - buying incentives (online coupons or free samples) to generate consumer demand for their product offerings.
Intellectual Property and Illegal Activity
Each year, intellectual property losses in the United States total billions of dollars stemming from the illegal copying of computer programs, movies, compact discs, and books. - The selling of illegal drugs and counterfeit products is also becoming more common over the internet.
Does promotion create needs?
Marketing does not create needs, but makes consumers aware of needs they already have
Media classes:
Newspapers Magazines Direct mail Radio Television Digital media Outdoor
The Google Analytics dashboard is broken into five sections
Real-Time, Audience, Acquisition, Behavior, and Conversions.
Evaluating Public Relations Effectiveness
Research can be conducted to determine how well a firm is communicating its messages or image to its target audiences. Environmental monitoring public relations audit communications audit social audit Organizations should avoid negative public relations by taking steps to prevent negative events that result in unfavorable publicity. - To diminish the impact of unfavorable public relations, organizations should institute policies and procedures for dealing with news personnel and the public when negative events occur.
common mobile marketing tools
SMS messages, multimedia messages, mobile advertisements, mobile websites, and mobile applications
Current customer sales
Sales personnel who concentrate on current customers call on people and organizations that have purchased products from the firm before. - seek more sales from existing customers by following up on previous sales.
Distribution considerations
The ability to process orders electronically and increase the speed of communications via the internet reduces inefficiencies, costs, and redundancies while increasing speed throughout the marketing channel. - Shipping times and costs have become an important consideration in attracting consumers, prompting many companies to offer consumers low shipping costs or next-day delivery
Creating the Advertising Message
The basic content and form of an advertising message are a function of several factors: - A product's features, uses, and benefits - the intensity of the advertising (push advertising) - Characteristics of the people in the target audience (gender, age, education, race, income, occupation, lifestyle, life stage, and other attributes) - An advertising campaign's objectives and platform - Ex: If a firm's advertising objectives involve large sales increases, the message may include hard-hitting, high-impact language, symbols, and messages. - Choice of media
creative selling
Using both inside and outside salespersons to manage accounts (very typical)
Shopper loyalty and Frequent user incentives
Various incentives exist for frequent product users and loyal customers. - purpose of shopper and frequent-user cards→ to encourage continued loyalty. - Ex: Cosmetics company Sephora has a rewards program called the Beauty Insider Program.
Parallel script
Video is described in the left column and audio in the right.
storyboard
a blueprint that combines copy and visual material to show the sequence of major scenes in a commercial
public relations
a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders/customers - uses a variety of tools, including annual reports, brochures, event sponsorship, and support of socially responsible programs aimed at protecting the environment or helping disadvantaged individuals. - Goal→ to create and enhance a positive image of the organization.
promotion mix
a combination of promotional methods used to promote a specific product - specific methods to manage the integrated marketing communications for a particular product
dealer loader
a gift, often part of a display, given to a retailer that purchases a specified quantity of merchandise used to obtain special display efforts from retailers by offering essential display parts as premiums; to obtain new distributors and push larger quantities of goods. Ex: New Belgium Brewing can provide a Fat Tire bicycle to hang in a pub.
a hybrid mix of a social networking site and a microblogging site that asks viewers one simple question: "What's happening?" - limitation of 280 characters - enhance customer service and create publicity about company products.
merchandise allowance
a manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display (Proof needed) best suited to high-volume, high-profit, easily handled products. Drawback→ some retailers perform activities at a minimally acceptable level simply to obtain allowances.
free merchandise
a manufacturer's reward given to resellers that purchase a stated quantity of products used as payment for allowances provided through other sales-promotion methods. can be aimed at the resellers employees, especially the decision makers
press conference (PR tools)
a meeting used to announce major news events
consumer jury
a panel of a product's existing or potential buyers who pretest ads - based on the belief that consumers are more likely than advertising experts to know what influences them
sales contest
a sales-promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements (must be equitable for all individuals involved.) Advantage→ it can achieve participation at all distribution levels. Positive effects may be temporary, however, and prizes are usually expensive.
communication
a sharing of meaning through the transmission of information - For communication to take place, both the sender and receiver of information must share some common ground, and have a common understanding of the symbols, words, and pictures used to transmit information.
buying allowance
a temporary price reduction to resellers purchasing specified quantities of a product Takes the form of money (simple and straightforward; can use wherever) Used to encourage resellers to carry a product or stock more of it; provide an incentive for resellers to handle new products, achieve temporary price reductions, or stimulate purchase of items in larger-than-normal quantities. Ex: A paper supplier could offer an office supply store $3 off of every case of paper purchased. Problems→ customers may buy "forward"—that is, buy large amounts that keep them supplied for many months or competitors may match (or beat) the reduced price, which can lower profits for all sellers.
TikTok
a video-sharing platform that specializes in short-form mobile video, is known for its meme culture, dancing videos, challenges, and comedic sketches - encourages users to build off of content from other users - 800 million active users
Low-priced convenience items (paper towels and deli meats) (Characteristics of the Product)
advertising and sales promotion (intensive distribution)
Consumer products (Characteristics of the Product)
advertising plays a major role; convenience items are promoted mainly through advertising and sales promotion; Personal selling is used extensively for consumer durables (ex: home appliances, automobiles, and houses).
comparative advertising
advertising that compares the sponsored brand with one or more identified brands on the basis of one or more product characteristics (direct product comparisons) - Favorable→ when it clearly identifies the competition - The brands that are promoted through comparative advertisements have low market shares and are compared with competitors that have the highest market shares in the product category.
push advertising on digital devices
advertising that is not requested by the user (might alienate some consumers)
product advertising
advertising that promotes the uses, features, and benefits of products. - Smart for two-offroad commercial ex: shows how the car is a better city car bc it's a small smart car
Media sharing sites
allow marketers to share photos, videos, and podcasts but are more limited in scope in how companies interact with consumers. - more promotional-oriented; potential to reach a global audience of consumers.
Youtube
allows users to upload and share videos worldwide
artwork
an advertisement's illustrations and layout
cooperative advertising
an arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products (usually based on the quantities purchased) give retailers additional funds for advertising; proof needed
buzz marketing
an attempt to incite publicity and public excitement surrounding a product through a creative event - an effective way of allowing a company to stand out from competing brands. (positive effect on brand equity) - works best as a part of an integrated marketing communication program that also uses advertising, personal selling, sales promotion, and publicity.
noise
anything that reduces a communication's clarity and accuracy - occurs when a source uses signs or symbols that are unfamiliar to the receiver or have a meaning different from the one intended. (decoding differs) - Sources of noise→ Radio or television transmission difficulties (satellite or cable) and poor or slow internet connections
programmatic advertising
automated technologies and algorithmic tools to purchase the ad space
consumer-sales-promotion techniques (10)
coupons, cents-off offers, money refunds and rebates, frequent-user incentives, point-of-purchase displays, demonstrations, free samples, premiums, consumer contests and games, and consumer sweepstakes.
Promotion considerations
creating profiles on social networks for connecting with consumers, inserting brands into virtual social games, and approaching promotion in entirely new, creative ways. many types of display advertising (the use of text, logos, animation, video, photographs, or any other type of graphic display). Major advantage→ being able to track advertising statistics Google's Ads (Google AdWords) small businesses do not engage in paid internet advertising as much due to smaller budgets. opportunities for business-to-business promotions Digital promotions all attempt to increase brand awareness and market to consumers Consumer consumption patterns are changing radically, and marketers must adapt their promotional efforts to meet these new patterns.
primary demand
demand for a product category rather than for a specific brand - When an organization is the first to introduce an innovative product, it tries to stimulate primary demand
selective demand
demand for a specific brand - Promotional efforts that point out the strengths and benefits of a specific brand; and singling out attributes important to potential buyers - stimulated by differentiating the product from competing brands in the minds of potential buyers, and increasing the number of product uses and promoting them through advertising campaigns, as well as through price discounts, free samples, coupons, consumer contests and games, and sweepstakes.
Message requirements (Evaluating media)
designed for a specific medium (radio/television) if communicating the message effectively requires a verbal explanation or a video story approach.
native advertising
digital advertising that matches the appearance and the purpose of the content in which it is embedded (meant to resemble the content itself) - improved brand perception, awareness, and engagement over standard banner ads - Advantages→ offers marketers the opportunity to reach consumers in new and innovative ways and increases advertising revenue for the sites that host them - Disadvantages→ potentially misleading when consumers do not realize that a video or post is sponsored by an organization
ROI (return on investment) / ROAS (return on advertising spending) (Evaluating media)
digital spending has the highest return on advertising spending (cost per ad→ low) television has second highest
Identifying and Analyzing the Target Audience
done by an account planner in an agency (establish an information base for a campaign)
Mobile marketing
effective in grabbing consumers' attention
digital media
electronic media that function using digital codes; media available via computers, cellular phones, smartphones, and other digital devices that have been released in recent years
Seasonal products (Characteristics of the Product)
emphasize advertising and sometimes sales promotion as well, because off-season sales generally will not support an extensive year-round sales force.
pretest
evaluation of advertisements performed before a campaign begins (new product development) - Use consumer jury to pretest (focus groups)
Rational appeals
focus on logic and provide facts to back up the message (focus on facts) - ex: ad for Popchips→ providing nutrition facts. - What type of ad does this represent?→ competitive—the ad compares Popchips to "fried chips" and "kettle chips" without naming specific brand names of either
managing sales territories
focuses on such factors as size, shape, routing, and scheduling. sales managers must construct territories that allow sales potential to be measured. - Sales territories often consist of several geographic units, such as census tracts, cities, counties, or states, for which market data are obtainable. - If territories have equal sales potential, they will almost always be unequal in geographic size. - Customer density and distribution are important factors. The geographic size and shape of a sales territory are the most important factors affecting the routing and scheduling of sales calls. - Next in importance is the number and distribution of customers within the territory, followed by sales call frequency and duration. - Those in charge of routing and scheduling must consider the sequence in which customers are called on, specific roads or transportation schedules to be used, number of calls to be made in a given period, and time of day the calls will occur.
Digital marketing
growing business because gathering information about products is one of the main reasons people go online
Objectives
help guide the development of the campaign and relate to both the problem being solved and the customer insights from the account planner. - advertising objectives should be SMART (Specific, Measurable, Achievable, Relevant, Time Bound) (should have a benchmark) - If the goal is to increase sales, the advertiser should state the current sales level (the benchmark) and the amount of sales increase sought through advertising. - Ex: Our primary advertising objective is to increase average monthly sales from $450,000 to $540,000 (20%) within 12 months. - the basis of sales→ the objectives focus on increasing absolute dollar sales or unit sales, increasing sales by a certain percentage, or increasing the firm's market share. - increase product awareness→ objectives are stated in terms of communication.
Target market fit (Evaluating media)
how heavily the target market consumes that media
Environmental monitoring
identifies changes in public opinion affecting an organization.
signature
identifies the advertisement's sponsor. (may contain the firm's trademark, logo, name, and address.)
Call reports
identify the customers called on and present detailed information about interactions with those clients.
Radio copy
informal, highly perishable and should consist of short, familiar terms, which increase their impact.
advertising can be classified as
institutional or product advertising.
recruiting and selecting salespeople
involve attracting and choosing the right type of salesperson to maintain an effective sales force. Companies intent on reducing sales-force turnover are likely to have strict recruiting and selection procedures. The process should include steps that yield the information required to make accurate selection decisions. - should be sequenced so the more expensive steps (physical examination) occur near the end. - should not be sporadic; it should be a continuous activity aimed at reaching the best applicants. - should systematically and effectively match applicants' characteristics and needs with the requirements of specific selling tasks. - should ensure that new sales personnel are available where and when needed.
Virtual sites
involve user-created, three-dimensional worlds that have their own economies and currencies, lands, and residents who come in every shape and size.
Does promotion encourage materialism?
it may contribute to materialism in the same way that movies, sports, theater, art, and literature may contribute to materialism
communications audit
may include a content analysis of messages, a readability study, or a readership survey.
Ad liking
measures how much people like the ad. It's related to sales, but generally not as strongly as recall or persuasion
Account Executive
oversees campaign execution and puts out all the many fires that can pop up when trying to implement something of this complexity.
Large markets can be targeted and reached through
paid media, owned media, and earned media.
pull policy
promoting a product directly to consumers to develop strong consumer demand that pulls products through a marketing channel - Flow of communications: Producer → consumer - primarily through advertising and sales promotion - intended to pull the goods down through the channel by creating demand at the consumer level. - Ex: Apple and the iPhone. Each new iPhone iteration is teased by Apple, which creates demand through word-of-mouth. Consumers hear about Apple's new offerings and are encouraged to seek out more information.
new introductory promotion
promotion that informs consumers about a new product - what it is, what it does, how it can be used, and where it can be purchased. - used in the introductory stage of the product life cycle (there are no competing brands) it neither emphasizes brand names nor compares brands.
The promotional methods are determined by the organization's
promotional resources, objectives, and policies; characteristics of the target market; characteristics of the product; and cost and availability of promotional methods.
cents-off offers
promotions that allow buyers to pay less than the regular price to encourage purchase Ex: a digital code that customers can redeem for 15 percent off can stimulate product sales or multiple purchases, yield short-lived sales increases, and promote products during off-seasons easy to control and are often used for specific purposes. If used on an ongoing basis, however, they reduce the price for customers who would buy at the regular price and may also cheapen a product's image
Personal selling process (7 steps)
prospecting, preapproach, approach, making the presentation, overcoming objections, closing the sale, and following up.
Types of Appeals
rational, emotional, humor, fear, sex, romance, adventure, social, status
media plan primary goal
reach the largest number of people in the advertising target that the budget will allow.
Posttest methods based on memory:
recognition and recall tests.(survey)
Internet
referred to as a pull medium because users determine which websites they are going to view; the marketer has only limited ability to control the content to which users are exposed, and in what sequence. - used to get information about the consumer; examine how consumers are using the internet to target marketing messages to their audience; and track the success of their online marketing campaigns
The Federal Trade Commission (FTC)
regulates and makes rules for privacy, fraud, and misappropriation of copyrighted intellectual property, as well as other illicit internet activities. - identifies risk areas for online communication and issues warnings to consumers as misconduct is reported - requires influencers to clearly disclose any connection they have with brands they promote. - Neglecting to make a disclosure is viewed as deceptive advertising.
Trade allowances
rewards, money, or price reductions designed to encourage retailers to carry a product
Frequency (Evaluating media)
the number of times these targeted consumers are exposed to the advertisement.
Privacy
the use of personal information that companies collect from website visitors in their efforts to foster long-term relationships with customers.. The FTC attempts to regulate and prevent identity theft and online fraud and to provide information on privacy to consumers and marketers. - Federal Video Privacy Protection Act Digital Advertising Alliance (DAA) has adopted privacy guidelines for online advertisers. - The DAA has created a "trusted mark" icon that websites adhering to their guidelines can display. (not all digital advertisers may choose to participate in its programs.)
audience
two or more receivers
advertising Disadvantages
- High cost→ absolute dollar outlay - rarely provides rapid feedback - Measuring its effect on sales is often difficult, and it is generally less persuasive than personal selling.
Disadvantages (personal selling)
- expensive - involves more specific communication directed at one or several individuals.
Outdoor
Advantages→ Allows for frequent repetition; low cost; message can be placed close to point of sale; geographic selectivity; operable 24 hours a day; high creativity and effectiveness Disadvantages→ Message must be short and simple; no demographic selectivity; seldom attracts readers' full attention; criticized as traffic hazard and blight on countryside; much wasted coverage; limited capabilities
Magazines Advantages/Disadvantages
Advantages→ Demographic selectivity; good reproduction; long life; prestige; geographic selectivity when regional issues are available; read in leisurely manner Disadvantages→ High costs; 30-to 90-day average lead time; high level of competition; limited reach; communicates less frequently
Who Develops the Advertising Campaign?
An advertising campaign may be handled by an individual, a few people within a firm, a firm's own advertising department, or an advertising agency. - A campaign created by the firm's personnel may be developed by one or more individuals or by an advertising department within the firm. - Use of an advertising agency may be advantageous because an agency provides highly skilled, objective specialists with broad experience in advertising at low to moderate costs to the firm.
Experiential marketing key performance indicators that can be evaluated:
Attendance and engagement Social media engagement Brand sentiment
Attendance and engagement
How many people attended the event? How long did they stay? Did they engage?
PR disadvantages
Media personnel must judge company messages to be newsworthy if the messages are to be published or broadcast at all. Consequently, messages must be timely, interesting, accurate, and in the public interest. No control over the content nor the timing of the communication (only influenced) Media personnel may edit and remove parts of the message.
Sales structure
One salesperson can, and often does, perform multiple functions. Inside sales-people→ support personnel or take orders, follow up on deliveries, and provide technical information. outside sales forces→ more consultative and are built on developing long-term relationships.
Stimulate demand (Objectives of Promotion)
Primary demand, new introductory promotion, selective demand
Exposure (KPI)
Quantitative - Page Visits - Visitors, Unique Visitors - Visits per Channel (Source) - Reach Total Follower (Audience Count) - Opportunity-to-See - CPM (cost per thousand exposures)
Engagement (KPI)
Quantitative - Repeat Visits - Time Spent on Site - Total Interactions on Post/Page - Likes, Shares Comments, +1s - Click-Throughs - Number of Followers, Friends - Total Audience of All Shares - Interaction with Profile - Use of Hashtags Qualitative - Mentions - People Talking about Brand
Influence
Quantitative Links Association with Brand Attributes Purchase Consideration Likelihood to Recommend Qualitative Sentiment (Positive, Neutral, Negative) Net Promoter Score Klout Score
Impact
Quantitative New Subscribers Number of Referrals to Website Number of Content Downloads Number of App Downloads Abandoned Shopping Carts (-) Number of Sales Leads Conversion Rate Sales Repeat Sales Purchase Frequency Cost Savings Qualitative Satisfaction Loyalty
Advocacy
Quantitative Online Ratings Ratio Mentions to Recommendations Number of Brand Fans/Advocates Qualitative Content of Ratings/Reviews Organic Posts by Advocates Employee Ambassadors
Should potentially harmful products be advertised?
Some critics suggest that promotion of possibly unhealthy products should not be allowed at all; others argue that as long as it is legal to sell such products, promoting those products should be allowed.
Promotional Resources, Objectives, and Policies
The size of an organization's promotional budget affects the number and intensity of promotional methods used - If a company's promotional budget is extremely limited, the firm is likely to rely on personal selling - If a company's objective is to create mass awareness of a new convenience good, such as a breakfast cereal, its promotion mix probably leans heavily toward advertising, sales promotion, and possibly public relations. - If a company hopes to educate consumers about the features of a durable good, such as a home appliance, its promotion mix may combine a moderate amount of advertising, possibly some sales promotion designed to attract customers to retail stores, and a great deal of personal selling - If a firm's objective is to produce immediate sales of nondurable services, the promotion mix will probably stress advertising and sales promotion.
Is promotion deceptive?
The vast majority of promotions are not deceptive.
Brand sentiment
Tracking people's feelings about a brand before and after an experiential campaign can help identify changes in brand feelings and estimate brand connection.
Does promotion help customers without costing too much?
Yes Promotion helps create competition.
scan-back allowance
a manufacturer's reward to retailers based on the number of pieces scanned link trade spending directly to product movement at the retail level.
source
a person, group, or organization with a meaning it tries to share with a receiver or an audience (ex: electronics sales person) - Strategy→ enhances source's communication
captioned photograph (PR tools)
a photograph with a brief description of its contents - effective for illustrating new or improved products with highly visible features
media plan
a plan that specifies the media vehicles to be used and the schedule for running advertisements - determines how many people in the target audience will be exposed to the message and to some degree, the effects of the message on those specific target markets. - a complex task requiring thorough analysis of the target audience - AI and predictive analytic and sophisticated computer models help
aided recall test
a posttest that asks respondents to identify recent ads and provides clues to jog their memories
Influencer marketing
a type of social media marketing that uses endorsements and product mentions from influencers-individuals who have a dedicated social following and are viewed as experts within their niche. (can be paid or unpaid) Ex: Kim Kardashian uses her social media influence to promote the Flat Tummy 2-step tea. - Kim charged in the 7 figures to post the advertising material on her social media channel. - form of personalized marketing which has grown tremendously since the advent of social media.
social network
a website where users can create a profile and interact with other users, post information, and engage in other forms of web-based communication
media plan secondary goal
achieve the appropriate message reach and frequency for the target audience while staying within budget.
flighting schedule
advertisements run for set periods of time, alternating with periods in which no ads run. (strong seasonality aspect) (ex: imperial sugar)
dealer listings
advertisements that promote a product and identify the names of participating retailers that sell the product can influence retailers to carry the product, build traffic at the retail level, and encourage consumers to buy the product at participating dealers.
A/B testing
advertisers may create different versions of the same digital display or email ad and conduct an experiment by tracking click-through rates to see which performs best. Then the lower-performing ad will be pulled and the higher-performing ad will be launched more widely
Determining the Advertising Appropriation
advertisers must decide how much money to spend on the campaign
Continuity (continuous) schedule
advertising runs at a constant level with little variation throughout the campaign period. (ex: McDonald's, soft drinks or laundry detergent)
reinforcement advertising
advertising that assures users they chose the right brand and tells them how to get the most satisfaction from it - Ex: Insurance companies GEICO encourage potential new customers to spend 15 minutes on the phone getting an insurance quote and save 15% or more on their policy.
Photo-sharing sites
allow users to upload and share their photos with the world. (Flickr, Shutterfly, Snapfish, Instagram, Pinterest) - an opportunity for companies to market themselves visually by displaying snapshots of company events, company staff, and/or company products. - Ex: Nike, Audi, and MTV have all used Instagram in digital marketing campaigns. - Ex: Zales Jewelers has topic boards on Pinterest featuring rings as well as other themes of love, including songs, wedding cakes, and wedding dresses
video-sharing sites
allow virtually anybody to upload videos, from professional marketers at Fortune 500 corporations to the average internet user. (YouTube and Vimeo) - give companies the opportunity to upload ads and informational videos about their products. - Videos can become viral at any time→ promote awareness and use of their products
Paid media
communication channels where advertising messages are budgeted and placed by the media planner in channels (TV, radio, print, digital display, billboards) - Messages are typically designed to reach a large target audience.
promotion
communication to build and maintain relationships by informing and persuading one or more audiences to view an organization positively and accept its products. - reinforces market positioning versus the competition and creates a reason for purchase. - facilitate favorable relationships by focusing information about company activities and products on interest groups (such as environmental and consumer groups), current and potential investors, regulatory agencies, stakeholders, and society in general. - Ex: promote responsible use of products criticized by society, such as tobacco, alcohol, and violent movies or video games; the FDA created a campaign to curb use of e-cigarettes by teens. The campaign used images of teens in environments such as a school bathroom and displayed warnings about the chemical contents of e-cigarettes. These ads are displayed on social media channels such as YouTube and Instagram where their teen audience will most likely visit.
decoding process
converting signs or symbols into concepts and ideas
integrated marketing communications
coordination of promotion and other marketing efforts (including price, distribution channels, and product labeling and packaging) for maximum informational and persuasive impact; unifying a brand's messaging to make it consistent across all media the brand uses to reach its target audience. - creates long-term customer relationships, and enables the efficient use of promotional resources. - most successful IMC campaigns are strategically consistent, allowing them to create very strong mental associations while tailoring messages to different segments and situations. - Ex: Taco Bell developed an integrated marketing campaign to promote its Nacho Fries to demonstrate the elusiveness of this limited-time-only offering. Its advertisements, a series of movie-trailer-inspired videos featuring celebrities like James Marsden, were shown during the Super Bowl. The fast food chain utilized public relations and social media to support the campaign. The introduction of Nacho Fries was Taco Bell's biggest debut of all time.
Encourage product trial (Objectives of Promotion)
customers may stall during the evaluation stage; certain types of promotion (free samples, coupons, test drives, or limited free-use offers, contests, and games) - Ex: Costco uses free sampling throughout its stores.
premium money (push money)
extra compensation to salespeople for pushing a line of goods appropriate when personal selling is an important part of the marketing effort; it is not effective for promoting products sold through self-service. helps a manufacturer obtain a commitment from the sales force, but it can be very expensive. must be in compliance with retailers' policies as well as state and local laws.
single-source data
help evaluate advertisements; individuals' behaviors are tracked from television sets to checkout counters
Identify prospects (Objectives of Promotion)
identify customers who are interested in the firm's product and are likely potential buyers. - Ex: Television advertisements may encourage the viewer to visit the company's website and share personal information in order to receive something of value from the company. Customers who respond to such a message usually have higher interest in the product, making them potential customers.
compensating salespeople
involves formulating and administering a compensation plan that attracts, motivates, and retains the right types of salespeople The plan should give sales management the desired level of control and provide sales personnel with acceptable levels of income, freedom, and incentive. should be flexible, equitable, easy to administer, and easy to understand. compensation varies by industry and is often based on skills or knowledge needed to relate to customers
preapproach
involves identifying key decision makers, reviewing account histories and problems, contacting other clients for information, assessing credit histories and problems, preparing sales presentations, identifying product needs, and obtaining relevant literature. marketing analytics and customer relationship management systems comb through databases and identify their most profitable products and customers. Determining your strengths and weaknesses Aka doing your homework (research and obtain info)
Boosted social media
involves paying for organic posts on their on accounts to ensure they appear in followers' feeds or are viewable by non-followers - Best for awareness, engagement objectives - Ad audience size smaller - Limited audience targeting - Limited objective options - No A/B testing - Easy to use - for amateurs - No options for creative ad displays
premiums
items offered free or at a minimal cost as a bonus for purchasing a product Ex: Cracker Jack, introduced in 1896 as the first junk food, had a prize of trivial value inside used to attract competitors' customers, introduce different sizes of established products, add variety to other promotional efforts, and stimulate consumer loyalty Must be creative, easily recognizable, and desirable placed on or inside packages and can also be distributed by retailers or through the mail.
types of interpersonal communication
kinesic communication, proxemic communication, tactile communication
Subheadline
links the headline to the body copy and sometimes serves to explain the headline.
Persuasion
measures and ads ability to influence interest in the message of the brand. It is the percentage of respondents whose interest in buying the product was increased after being exposed to the ad
social audit
measures the extent to which stakeholders view it as being socially responsible
trade-sales-promotion methods
methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively Used to counter the effect of lower-priced store brands, pass along a discount to a price-sensitive market segment, boost brand exposure among target consumers, or provide additional incentives to move excess inventory or to counteract competitors.
Publicity
nonpersonal communication in news-story form about an organization or it's products, or both, transmitted through a mass medium at no charge. - Ex: news releases, press conferences, feature articles, and social media sites such as YouTube and Twitter.
number one social networking site in the world (more than 2.6 billion users worldwide 68% U.S.) Used by organizations to share news, showcase their products, and teach consumers how to use their products. - Advertising→ target ads to users based upon their web-browsing habits. - useful for relationship marketing, or the creation of relationships that mutually benefit the business and the customer
omnichannel retailing
offering a seamless experience across mobile, desktop, and traditional retail spaces (Synchronizes everything that contributes to the customer experience.)
pay-per-click advertising (PPC)
only charged when customers actually click on their ads
Product considerations
opportunity to add a service dimension to traditional products and create new products only accessible on the internet - Ex: the digital platform Steam provides gamers access to tens of thousands of video games for PC and Mac. These represent products that can only be found in the digital realm. - upgrade their product offerings to meet consumer needs. - consumer-generated brand stories that address quality and performance and impact image. - online advertising campaigns and contests to help develop better products.
creative brief
outlines the creative approach and deliverables for an advertising campaign. - provides the who, what, where, when, why, and even how of the campaign. - an actual document that serves as an informal contract between the agency and client. - Key purpose→ identify and justify the advertising platform to keep the designers on track as they develop the ads, and remind the client of what the objectives are, in case they have questions along the way. (keeps everyone on the same page)
Transmission media
printed words (newspapers and magazines), broadcast media (television and radio), and digital communication (social media platforms such as Facebook and YouTube).
Flexibility (Evaluating media)
production times vary considerably - Much longer time and costs more to produce a video ad than a social media post - Media lead time→ require files to be submitted up to 3 months in advance
push policy
promoting a product only to the next institution down the marketing channel - Flow of communications: Producer→ wholesaler→ retailer→ consumer - stresses personal selling. - used as a retailer promotes this feature of a product directly to the ultimate consumer.
two main reasons for criticism
promotion does have flaws, and it is a highly visible business activity that pervades our daily lives
customer success manager (CSM)
provides proactive support to customers to help increase customer value realization over time helps the customer understand and use existing and new features of changing products to get and maintain desired outcomes prevent customer churn that can occur when a customer doesn't believe they received the value that was expected.
demonstrations
sales-promotion methods a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how a product works (excellent attention-getters) Not used widely (expensive labor costs) effective for promoting appliances, cosmetics, cleaning supplies, cars, etc.
trade salespeople
salespeople involved mainly in helping a producer's customers promote a product not strictly support personnel, because they usually take orders as well. likely to restock shelves, obtain more shelf space, set up displays, provide in-store demonstrations, and distribute samples to store customers. Ex: Food producers and processors commonly employ trade salespeople.
free samples
samples of a product given out to encourage trial and purchase, increase sales volume in the early stages of a product's life cycle, and obtain desirable distribution (Most expensive sales promotion activity) - eliminate the risk of trying a new product and allow consumers to feel as if they are getting something for free; can lead to repeat purchases as well as purchases of other products under the same brand name
second most popular (35%)
Web Room
showrooms only, meaning customers can touch and feel the products, but all orders are placed online, saving the company money in distribution costs and real estate costs associated with large storefronts.
point-of-purchase (POP) materials
signs, window displays, display racks, and similar devices used to attract customers (aka in store displays) (supplied by producers) designed to induce trial or purchase; attract attention, inform customers, and encourage retailers to carry particular products. Innovations in POP displays→ sniff-teasers, which give off a product's aroma in the store as consumers walk within a radius of four feet, and computerized interactive displays.
determining sales-force size
size of the sales force must be adjusted occasionally because a firm's marketing plans change along with markets and forces in the marketing environment.
Communication process
source; coded message; communication channel; decoded message; receiver or audience
Connectivity
the ability for consumers to be connected with marketers along with other consumers - Ex: Mary Kay offers users the opportunity to sign up for MyMK, a system that connects customers with beauty consultants and allows them to develop their own personalized space
Accessibility
the ability for marketers to obtain digital information - Ex: Google can use web searches done through its search engine to learn about customer interests
Interactivity
the ability of customers to express their needs and wants directly to the firm in response to its marketing communications - Ex: Texas Instruments interacts with its customers on its Facebook page by answering concerns and posting updates
Addressability
the ability of the marketer to identify customers before they make a purchase - Ex: Amazon installs cookies on a user's computer that allow the company to identify the user when he or she returns to the website
advertising appropriation
the advertising budget for a specific time period
Television copy
the audio material must not overpower the visual material
the most important feature of apps
the convenience and cost savings they offer to the consumer.
specific elements in designing a print ad
the graphics or visuals, the layout (or physical arrangement of the illustrations), the headline (which is designed to grab attention) and the copy, which is the more detailed verbal portion of the ad. - Effective ads also include the brand logo and often, an accompanying slogan. - Ex: nike ad
target audience
the group of people at whom advertisements are aimed - may include everyone in the firm's target market or only a portion of the target market. - Ex: Advertisements for the Dyson vacuum cleaner target more affluent homeowners, whereas the Dirt Devil targets lower-to middle-income households.
receiver
the individual, group, or organization that decodes a coded message
channel capacity
the limit on the volume of information a communication channel can handle effectively - determined by the least efficient component of the communication process
Earned media
the natural result of marketing efforts created by advertising, experiential events, promotions, social media and other company-owned content. (shares, mentions, comments, likes, and reviews, traditional word-of-mouth and public relations efforts) - consumers are communicating on social media sites - User-generated content relates to consumers that create, converse, rate, collect, join, or simply read online materials.
Reach (Evaluating media)
the percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period.
Customer churn
the percentage of customers that stop using a product in a specific time period.
layout
the physical arrangement of an advertisement's illustration and copy (headline, subheadline, body copy, and signature) - promotes an exchange of ideas among people developing the advertising campaign and provides instructions for production personnel
SEO
the process of designing a website so that it maximizes the search engine's algorithm, resulting in a higher ranking on the organic search results page.
PR Crisis management
the process of preparing an organization for a major event that threatens the organization or brand, its reputation, stakeholders, or the general public. (critical aspect of public relations) Ex: infographic from Brand 24 shows the seven basic steps for effective PR crisis management- (1) don't overreact, (2) act swiftly, (3) evaluate the situation, (4) identify the first response unit, (5) prepare the plan (6) cooperate with influencers, and (7) analyze the plan. Ex: Fast-food restaurant, KFC, has perhaps one of the most surprising (and risky) yet effective responses to a crisis situation- When a supply chain issue caused almost all 870 KFC restaurants in the UK to run out of chicken, it's PR team responded swiftly with ads in newspapers and continuous updates on social media.
Following up
the salesperson determines whether the order was delivered on time and installed properly, if installation was required. (Very important) - used to determine customers' future product needs.
Making the presentation
the salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product. (make a personal connection) influencing tactics matched to prospects→ information exchange, recommendations, deadlines, promises, ingratiation, and inspirational appeals Don't only talk but listen→ Listening is half of the communication process and is often the most important part for a salesperson. (nonverbal signs)
Overcoming objectives
the salesperson should handle objections as they arise (think on your feet) Some anticipate and counter them before the prospect raises them (risky because the salesperson may mention objections that the prospect would not have raised)
copy
the verbal portion of advertisements (includes headlines, subheadlines, body copy, and a signature) (create awareness, produce interest, create desire, and ultimately result in a purchase (action)) - Not all advertising contains all of these copy elements.
video pre roll
those short videos you sometimes have to watch (and sometimes can opt out of) before you view your streamed video content. - Pre roll ads can be skippable or non-skippable and can be effective at building brand awareness and intention, even if just a few seconds are watched. Ex: skechers pre-roll video
Facilitate retail and wholesale support (Objectives of Promotion)
two-way street: producers generally want to provide support to resellers to assist in selling their products, and in turn they expect resellers to support their products - To encourage wholesalers and retailers to increase their inventories of its products, a manufacturer may provide them with special offers and buying allowances.
Predictive analytics
use historical data with statistical techniques to find answers and solutions to address future decisions. Ex: machine learning can use big data and predictive models to help improve the design and performance of digital marketing.
public relations audit
used to assess an organization's image among the public or to evaluate the effect of a specific public relations program.
digital marketing
using all digital media, including the internet and mobile and interactive channels, to develop communication and exchanges with customers
regional issues
versions of a magazine that differ across geographic regions
Ex: Gallup is a research organization that conducts research to help advertisers determine which of their ads was more effective and what elements of the ads were responsible for their performance→ comparison of two ads for Lipton's Brisk tea.
- Great advertising→ recall and persuasion and ad liking Commercial 1→ babe ruth needed a quick refresher then winning the game - Recall→ 33 - Persuasion→ 51 - Ad liking→ 65 - pulled the best→ celebrities easily recognized; powerful positive happy ending; fun and enjoyable; product integrated seamlessly blue and red can stands out. Commercial 2→ eminem demands brisk - Recall→ 15 - Persuasion→ 39 - Ad liking→ 56 - Didn't pull well→ Too negative; negative in tone (confusing); sarcastic humor; not well integrated introduced late Generalizations - Celebrities should be easily recognizable or well-identified, otherwise they lose their added interest; they should be involved in the product story, or their popularity might upstage the product. - Storyline should be interesting, uncomplicated, and induce the viewer to get involved anc commit to attend to the entire message. - Humor, especially if related to the product in some way, can aid likability and establish positive attitude toward the product and its message. - Commercial effectiveness is increased when the product is an integral part of the commercial, and the earlier it is introduced, the better.
Two major trends have caused consumer-generated information to gain importance:
- The increased tendency of consumers to publish their own thoughts, opinions, reviews, and product discussions through blogs or other digital media. - Consumers' tendencies to trust other consumers over corporations. Consumers often rely on the recommendations of friends, family, and fellow consumers when making purchasing decisions.
Institutional and advocacy Unilever ex:
- This advertising campaign from Unilever, which ran in the UK, Brazil, South Africa, and Indonesia, is an example of both. - It is institutional advertising because it communicates about the parent corporation overall, featuring multiple corporate brands. (persil, dove, domestos, pg tips, hellmans, sure, knorr, flora, comfort) - It is advocacy advertising because it promotes social issues including self-confidence, access to toilets, and education.
Ex: a sponsored Facebook ad (ad for Dollar Shave Club)
- ad has a clear, specific goal of communicating a price promotion with a goal of adding new subscribers for $9. - The brand avatar and name are at the top, and since this is a paid ad, the word "sponsored" also appears. - Text and hashtags go below that. Generally, 3-5 lines of text with 3 or so hashtags are most effective, but Dollar Shave Club has elected to keep a cleaner look with less text and no hashtags. - The image or video takes up the bulk of the ad space and should be eye catching and relevant. - Some images will have headlines or copy embedded in them like this one does. - Then, at the bottom are the components that are characteristic of a sponsored ad (rather than a boosted post). - The website link, ad headline and call-to action buttons all encourage the viewer to click through to the brand's website. - Common CTA button labels include "shop now," "learn more," or "sign up."
Types of approaches
- based on referrals - "cold canvass"→ calls on potential customers without prior consent. (decreasing) - Social media - Repeat contact→ when making the contact, the salesperson mentions a previous meeting.
Advantages (coupons)
- can be traceable to the target market - reward current product users, win back former users, and encourage purchases in larger quantities. - help a manufacturer determine whether it reached the intended target market.
Public Relations Tools
- digital media to deliver brochures, newsletters, company magazines, news releases, blogs, managed social media sites, and annual reports that reach and influence their various stakeholders. - corporate identity materials (logos, business cards, stationery, signs, and promotional materials) that make firms immediately recognizable - Speeches→ what a company executive says publicly at meetings or to the media can affect the organization's image, the speech must convey the desired message clearly. - Event sponsorship→ a company pays for part or all of a special event, like a benefit concert or a tennis tournament, is another public relations tool. - Sponsoring special events can be an effective means of increasing company or brand recognition with relatively minimal investment; Free media coverage
advertising Advantages:
- extremely cost-efficient when it reaches a vast number of people at a low cost per person. - can add to the product's value - Enhance organization's image
Google Analytics
- the largest analytics platform monitoring more than 30 million websites. - allows you to identify your website's strengths and weaknesses and uncover opportunities for growth
Growth and Benefits of Digital Marketing
- unprecedented opportunities for marketers to forge interactive relationships with consumers. - possible to target markets more precisely and reach markets that were previously inaccessible. most important benefit→ the ability of marketers and customers to share information; permit innovative forms of communication and co-created content in relationship-based interactions - Through websites, social networks, and other digital media, consumers can learn about everything they consume and use in life. - engaging in digital marketing activities is essential to maintaining competitive advantages. - One of the biggest mistakes a marketer can make when engaging in digital marketing is to treat it like a traditional marketing channel.
Six qualities of effective social media ads include:
1. A unique selling proposition or clearly defined goal for the ad (remember, a USP is a description of how your product is different in a better way from competitors). 2. A small, highly-targeted audience 3. A high-quality, relevant, and eye-catching image or video. Interactivity (e.g., swipe-able carousel images) is also effective. 4. A short description or relevant conversational messaging (3-5 lines of text with relevant hashtags) 5. A call-to-action (CTA) 6. A link that goes directly to a relevant landing page
Possible Objectives of Promotion
1. Create Awareness 2. Stimulate Demand 3. Encourage Product Trial 4. Identify Prospects 5. stimulate word of mouth 6. Retain Loyal Customers and reach new ones 7. Facilitate Reseller Support 8. Combat Competitive Promotional Efforts 9. Reduce Sales Fluctuations 10. generate positive social media posts
Digital media
Advantages→ Immediate response; potential to reach a precisely targeted audience; ability to track customers and build databases; highly interactive medium; real-time analytics Disadvantages→ Costs of precise targeting are high; inappropriate ad placement; effects difficult to measure; concerns about security and privacy
Television
Advantages→ Reaches large audiences; high frequency available; dual impact of audio and video; highly visible; high prestige; geographic and demographic selectivity; difficult to ignore; on-demand capabilities Disadvantages→ Very expensive; highly perishable message; size of audience not guaranteed; amount of prime time limited; lack of selectivity in target market
Does promotion increase prices?
When promotion stimulates demand and fuels competition→ keeps prices lower when demand is not stimulated→ prices increase
advocacy advertising
advertising that promotes a company's position on a public issue. (ex: a tax increase, sustainability, regulations, or international trade coalitions) (institutional) - used to promote socially approved behavior (recycling; moderation in consuming alcoholic beverages).
institutional advertising
advertising that promotes organizational images, ideas, and political issues - promotes the corporation rather than the brand - may deal with broad image issues (organizational strengths or the friendliness of employees) - may aim to create a more favorable view of the organization in the eyes of noncustomer groups (shareholders, consumer advocacy groups, potential shareholders, or the general public)
Message type (Evaluating media)
billboard (clean, easy to digest message) v. magazine (more detailed; complicated)
arbitrary approach
budgeting for an advertising campaign as specified by a high-level executive in the firm (expedient; not scientific) - often leads to underspending or overspending; Not profit maximizing
objective-and-task approach
budgeting for an advertising campaign by first determining its objectives and then calculating the cost of all the tasks needed to attain them (most logical) - Problem: trouble accurately estimating the level of effort needed to attain certain objectives. - Ex: A chain of retail donut shops may find it extremely difficult to determine how much of an increase in national television advertising is needed to raise a brand's market share from 8 to 10 percent.
percent-of-sales approach
budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage (more widely used; easy to implement) - Problem: based on the incorrect assumption that sales create advertising rather than the reverse.
Trade-sales-promotion techniques
buying allowances, buy-back allowances, scan-back allowances, merchandise allowances, cooperative advertising, dealer listings, free merchandise, dealer loaders, premium or push money, and sales contests.
Reduce sales fluctuations (Objectives of Promotion)
by generating sales during slow periods; a firm can use its resources more efficiently; Promotional techniques are often designed to stimulate sales during sales slumps.
tactile communication
communicating through touching (handshaking)
three general types of media schedules (Developing the Media Plan) :
continuous, flighting, and pulsing.
PR advantages
credibility, news value, significant word-of-mouth communications, and a perception of media endorsement. (low cost compared to advertising)
Headline
critical because often it is the only part of the copy that people read.
One problem with money refunds and rebates
many people perceive the redemption process as too complicated.
two types of product advertising
pioneer and competitive.
Federal Video Privacy Protection Act
requires that any marketers who wish to disclose or share information about a consumer's video content consumption must obtain separate, independent consent from the consumer.
consumer-sales-promotion methods
sales-promotion techniques that encourage consumers to patronize specific stores or try particular products by retailers→ aim to attract customers to specific locations by manufacturers→ introduce new products or promote established brands. Ex: international promotion technique that ran in Dubai. - Most creative techniques for stimulating product trials focus on consumer products (especially food and beverages). - However, this activation was designed to stimulate trials for a Nissan SUV. - Test drive the car - Block them in with the car and encourage them to move the car
Intellectual property
the copyrighted or trademarked ideas and creative materials developed to solve problems, carry out applications, and educate and entertain others.
Mobile websites
websites designed for mobile devices.
Ex: Coca-Cola is an Integrated Marketing Communications (IMC) powerhouse.
- For decades it has maintained consistent messaging revolving around sharing and friendship across a wide range of quite different campaign executions. - One of the forerunners of Coke's more recent creative "together" activations today is Hilltop remastered from 1971, which was worked into the storyline of the season finale of acclaimed series, Mad Men in 2015. - I'd like to teach the world to sing in perfect harmony - I'd like to buy the world a coke and keep it company - Since then, Coca-Cola has featured many highly creative campaigns with the consistent message of friendship and connections. - In 1993, Coke made a dramatic shift in its advertising by experimenting with computer animation and creating a series of ads featuring polar bears. - Yet, the message of friendship remained consistent as the polar bears shared bottles of Coke while "watching" the northern lights. - This campaign was so successful that polar bears continued to feature in Coke advertising campaigns for more than 20 years. - The "Share a Coke" campaign originated in Australia in 2011 and was so successful it spread internationally. - Labels were personalized with messages and names and people were encouraged to share the messages (or the Coke) with others. - Fans were even able to text the names of loved ones they wanted to share a Coke with and the messages were featured on digital billboards. - In 2013, Coca-Cola set out to "...break down barriers and create a simple moment of connection between two nations --India and Pakistan..." - Coke→ what unites us is stronger than what divides us. - Machines unite india and pakistan - Allows them to digitally touch one another and draw with them and get a coke in return - Wanting to celebrate the gift of "presence" (and not "presents"), Coke launched this holiday campaign in 2020 to convey a message of hope during the pandemic. - The US version of this ad ended with the tagline "Together Tastes Better," while in other markets, it ended with "This Christmas, give something only you can give." - Bring daddy home for christmas
The concept of integrated marketing communications is increasingly effective for several reasons.
- Mass media advertising, a very popular promotional method in the past, is used less frequently today because of its high cost and lower effectiveness in reaching some target markets. - Marketers take advantage of more precisely targeted promotional tools, such as television, direct mail, the internet, special-interest magazines, smartphones, mobile applications, social media, sales calls, and outdoor advertising. - Database marketing and marketing analytics are also allowing marketers to more precisely target individual customers. - Companies can collect mass amounts of data and use artificial intelligence (AI) to sort through the data to find relevant information.
Ex: Matthew McConaughey - Crafting a Personal Story to Sell Your Product
When you go to market, you better be bulletproof, own your product, and be the master of it. Make it personal Sell your product the best way they will understand it and they will need it know what you know and know what you don't ask for help or direction when you don't there's more than one way to be right amendments are not always improvements so create a product that hopefully could have a need; understand that need; and believe in that need
feature article (PR tools)
a manuscript of up to 3,000 words prepared for a specific publication
cost comparison indicator (Developing the Media Plan)
a means of comparing the costs of advertising vehicles in a specific medium in relation to the number of people reached - Ex: Streaming advertisers are using big data from companies such as Nielsen to determine which shows interest their particular target market.
news release (PR tools)
a short piece of copy publicizing an event or a product (most common) (aka press release) (less than 300 words) - gives the firm's or agency's name, address, phone number, and contact person. - Used when introducing new products or making significant announcements
mobile application (apps)
a software program that runs on mobile devices and gives users access to certain content Help consumers access more information about their company or to provide incentives (competitive) - Ex: Starbucks allows its app users to skip the lines by order-ing ahead. App orders account for 21 percent of Starbucks' transactions. the most important feature of apps- the convenience and cost savings they offer to the consumer. allow access to digital networks from a variety of mobile devices (ex: QR scanning app) beacon technology to target and communicate with app users based on their location. Ex: retailers can place beacons throughout their stores, so when a shopper approaches one, it activates the retailer's app on the shopper's smartphone with custom messages and promotions. Shopping experience→ compare prices or download electronic discounts, they can also use them to tally up purchases and pay through their smartphones.
buy-back allowance
a sum of money given to a reseller for each unit bought after an initial promotional deal is over (often offered for bread and other perishable products) foster cooperation during an initial sales-promotion effort and stimulate repurchase afterward. Disadvantage→ expense.
sales promotion
an activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it (Seasonal products) (Costs more and is faster growing than advertising) Used to identify and attract new customers, introduce new products, and increase reseller inventories encompasses all promotional activities and materials other than personal selling, advertising, and public relations. (can increase sales by providing extra purchasing incentives) When deciding which sales-promotion methods to use, marketers must consider several factors, particularly product characteristics (price, size, weight, costs, durability, uses, features, and hazards) and target-market characteristics (age, gender, income, location, population density, usage rate, and shopping patterns). Ex: free samples, games, rebates, sweepstakes, contests, premiums, and coupons.
Facebook Ads Manager
an online analytics tool to create Facebook, Messenger, and Instagram ads and determine where ads should be placed and the key metrics related to performance. - provides customized reports and the opportunity to download insightful data to help develop key performance metrics.
Promotional products
articles of merchandise, usually branded with a logo or slogan, and used in marketing communication programs; can be quite effective. (swag you get at career fairs) ("no big deal" products) promotional products are nearly a $25 billion industry. What do you think the number one preferred promotional product is?→ t-shirt
trial close
asking questions that assume the prospect will buy. (during presentation) Ask about financial terms, desired colors or sizes, or delivery arrangements. questioning approaches - broad questions (what, how, why)→ probe or gather information - focused questions (who, when, where)→ to clarify and close the sale. Ex: closing strategy→ asking the potential customer to place a low-risk, trial order.
emotional appeal
attempt to achieve the advertiser's objectives by evoking strong emotional feelings (fear, anger, passion, etc) - Ex: Budweiser's famous Super Bowl ads with the Clydesdales - long-running campaign with a strong emotional appeal that was ranked as the most popular ad to ever air in NFL history. (Cute puppy making friends with a horse)
kinesic communication
communicating through the movement of head, eyes, arms, hands, legs, or torso (obvious communication; eye contact)
Business products (Characteristics of the Product)
concentrate on personal selling; use some advertising to promote products (ex: computers, road-building equipment, and aircrafts) and some sales promotion
3 most common support personnels
customer success managers, trade salespeople, and technical salespeople.
Evaluating media (Developing the Media Plan)
decide which kinds of media to use (radio, television, newspapers) - The content of the message sometimes affects media choice. - Ex: Print media can be used more effectively than broadcast media to present complex issues or numerous details in single advertisements. - Ex: food can be effectively promoted in full-color magazine advertisements but far less effectively in black-and-white media. Target market fit Message type Message requirements Flexibility ROI (return on investment) / ROAS (return on advertising spending) Cost effectiveness - Reach vs. frequency - Effective exposure
Defining the Advertising Objectives
determine what the firm hopes to accomplish with the campaign
competition-matching approach
determining an advertising budget by trying to match competitors' advertising outlays (not used alone)
prospecting
developing a database of potential customers Salespeople seek names of prospects from company sales records, trade shows, commercial databases, newspaper announcements (of marriages, births, deaths, and so on), public records, trade association directories, and many other sources. Most salespeople prefer to use referrals—recommendations from current customers—to find prospects. Ex: salespeople for Cutco Cutlery, which sells high-quality knives and kitchen cutlery, first make sales calls to their friends and families and then use referrals from them to seek out new prospects. Consistent activity is critical to successful prospecting.
recruiting
developing a list of qualified applicants for sales positions Errors are expensive→ a set of qualifications before beginning to recruit. good salespeople exhibit optimism, flexibility, self-motivation, good time-management skills, empathy, and the ability to network and maintain long-term customer relationships
Native Advertising (sponsored content) (paid)
involves creating ads that are so cohesive with a website that the viewer feels the content belongs there; they may not even recognize it as an ad. Ex: Allbirds, a sustainable shoe brand Why Our Future May Depend on the Fate of Birds - Allbirds-sponsored content placed in the news feed of the New York Times that appears like original NYT content (except for the words paid post at the top). - According to Hubspot, this article is about how valuable birds are to our environment and the ways climate change is putting them at risk. - Allbirds as a company has a major focus on sustainability, and, obviously, has "birds" in its name. - The post's beautiful animated graphics and soundtrack of bird sounds create an awesome experience for viewers that also promotes the company."
Digital Product Placement (paid)
involves featuring branded goods and services in a production such as a movie or TV program. (aka embedded marketing) - Virtual product placement is an emerging technology that allows a digitally rendered product, billboard, or logo to be inserted into a movie or show that has already been produced. - Another type of digital product placement is in-game advertising. Ex: Barak Obama's presidential election campaign included advertising in games such as Guitar Hero, Madden NFL and NBA Live Ex: partnership between Fortnite and Nike- Players compete for Air Jordan XI Cool Gray sneakers and discover rooms dedicated to the best players.
Advantages of electronic coupons
lower cost per redemption greater targeting ability improved data-gathering capabilities greater experimentation capabilities to determine optimal face values and expiration cycles.
Cost effectiveness (Evaluating media)
measured in terms of CPM cost per thousand impressions; shows the cost of exposing 1,000 people to one advertisement. - CPM = ad cost / impressions x 1,000
Recall
measures an ads ability to break through the clutter and gain attention. It is the percentage of readers who can prove recall of the ad by describing it accurately the day following exposure.
Snapchat
more than 220 million daily active users - opportunity to reach a young, highly engaged audience; used mostly by people under 34 - features skippable, vertical video ads and custom photo filters
combination compensation plan
paying salespeople a fixed salary plus a commission based on sales volume When especially useful→ Sales territories have relatively similar sales potential; firm wishes to provide incentive but still control sales-force activities Advantages→ Provides certain level of financial security; provides some incentive; can move sales-force efforts in profitable direction Disadvantages→ Selling expenses less predictable; may be difficult to administer
straight salary compensation plan
paying salespeople a specific amount per time period, regardless of selling effort remains the same until they receive a pay increase or decrease When especially useful→ Compensating new salespeople; firm moves into new sales territories that require developmental work; sales requiring lengthy presale and postsale services Advantages→ Gives salespeople security; gives sales managers control over salespeople; easy to administer; yields more predictable selling expenses Disadvantages→ Provides no incentive; necessitates closer supervision of salespeople; during sales declines, selling expenses remain constant
Multimedia messages (MMS)
takes SMS messaging a step further by allowing companies to send video, audio, photos, and other types of media over mobile devices.
communications channel
the medium of transmission that carries the coded message from the source to the receiver - The majority use four different devices or technologies during the day. - Television (cable, local, network nightly) → 44% usage - Online (social media, websites, apps) → 34% usage - Radio→ 14% usage - Paper newspapers→ 7% usage
Media Vehicle
the specific station, network, program, website, or publication the message is placed on. - Ex: If a media buyer runs an advertisement in Glamour magazine, the channel used is "magazines" and the specific vehicle is "Glamour."
Mobile advertisements
visual advertisements that appear on mobile devices (search engines, websites, or even games accessed on mobile devices)
integrated marketing communications goal
send a consistent message to customers.
Account Manager
serve as team leader on a campaign project and keep everything moving along. - the liaison with and expert on the client and its business.
Challenge competitors' promotions (Objectives of Promotion)
to prevent a sales or market share loss; used most often by firms in extremely competitive consumer markets, such as the fast-food, convenience store, and cable/internet/cell phone markets. (price matching programs)
Costs and Availability of Promotional Method
- National advertising and sales promotion→ large expenditures. - Some forms of advertising are relatively inexpensive (Ex: local businesses advertise products through local newspapers, magazines, radio and television stations, outdoor boards, internet ads, and signs on mass-transit vehicles.) - availability of promotional techniques→ Some media, such as television, simply may not be available, or advertising on television may be highly regulated. - Ex: Sweden has some of the strictest controls for food advertising to children. Marketers have agreed to not target children 16 and under with unhealthy food or drink messages.
Body copy
- for most advertisements consists of an introductory statement or paragraph, several explanatory paragraphs, and a closing paragraph. - Some copywriters have adopted guidelines for developing body copy systematically: (1) identify a specific desire or problem, (2) recommend the product as the best way to satisfy that desire or solve that problem, (3) state product benefits and indicate why the product is best for the buyer's particular situation, (4) substantiate advertising claims, and (5) ask the buyer to take action.
integrated marketing communications drives successful marketing in three key ways:
1. Provides a smoother customer journey: customers are not confused by mixed messages, enabling them to progress more quickly through the decision-making process. 2. Boosts campaign effectiveness: consistent messages reinforce each other. 3. Increases channel effectiveness: consistent messaging contributes to marketing channels reinforcing each other.
Direct mail Advantages/Disadvantages
Advantages→ Little wasted circulation; highly selective; circulation controlled by advertiser; few distractions; personal; stimulates actions; use of novelty; relatively easy to measure performance; hidden from competitors Disadvantages→ Very expensive; lacks editorial content to attract readers; often thrown away unread as junk mail; criticized as invasion of privacy; consumers must choose to read the ad
Newspapers Advantages/Disadvantages
Advantages→ Reach large audience; purchased to be read; geographic flexibility; short lead time; frequent publication; favorable for cooperative advertising; merchandising services Disadvantages→ Not selective for socioeconomic groups or target market; short life; limited reproduction capabilities; large advertising volume limits exposure to any one advertisement
Radio Advantages/Disadvantages
Advantages→ Reaches 95 percent of consumers; highly mobile and flexible; very low relative costs; ad can be changed quickly; high level of geographic and demographic selectivity; encourages use of imagination Disadvantages→ Lacks visual imagery; short life of message; listeners' attention limited because of other activities; market fragmentation; difficult buying procedures; limited media and audience research Ex: Volkswagon value mysteries of the universe commercial→ Volkswagen, which is rated as one of the most effective radio ads of all time
Display Advertising (paid media)
Display ads are images, videos, gifs, etc. shown to users on third-party websites or apps. (often used to generate interest, promote products and services, and keep brands at the top of consumers' minds.) - Marketers must pay to place these types of ads on websites, often using programmatic advertising - video pre roll Ex: banner ad from Autozone- very effective because it referred to a specific customer pain point with an all-too-relatable scenario. It also used geo-targeting, providing the address and business hours of nearby stores.
Experiential marketing Ex: Poo-Pourri and Zappos
Ex: Poo-Pourri, the brand of "before you go" bathroom spray decided leverage its core brand associations into an experiential activation to raise awareness and support for mental health. #LetThatGoOnTheGiantPooTour! Online retail brand Zappos built its Unique Selling Proposition on top-notch customer service, living up to its tagline, "Powered by Service." CEO Tony Hsieh views customer service as a foundation to disrupt many industries and connect with consumers in unexpected places Made porta potty life beautiful
Ex: Old Spice Social media Case Study
Marketers for Old Spice developed a tv advertising campaign with a celebrity spokesperson that became hugely popular. So they quickly capitalized on that popularity by responding to social media conversations with personally recorded responses as the messages came in. Who was the target market for the ad campaign? Men and their ladies Man smells like old spice and their lady The man your man could smell like whether it was actually effective (versus just popular)? It was actually effective sales went up 107% How, exactly, does the brand engage with the target market in social media? - Responded to consumers questions from facebook twitter reddit - 186 video responses - Real time messages on youtube - This campaign initially started off as a Super Bowl commercial, but it quickly went viral, with lots of user-generated content following the airing of the ad--and even more exposure with the mention on Oprah and guest visit on Ellen. - It was all about the content. It was all about the charismatic appeal of Old Spice Guy, Isiah Mustafa and his witty and off-the-wall responses to the selected social media posts. How the commercial was produced- digital technologies enable producers to create and enhance videos for special effects Do you think the Old Spice "I'm on a Horse" commercial was computer generated? No At least heavy on computer generated graphics and animation? No Was it mostly filmed in real time? Yes What percent of the ad do you think was real and what percent was CGI? Real 99.5% Arm blurred out with CGI .5%
training sales personnel
When developing a training program, managers must consider a variety of dimensions, such as who should be trained, what should be taught, and how training should occur. concentrate on the company, its products, or selling methods. Transformational leadership has proven highly effective in training new hires when sales managers encourage them to make errors during customer interactions and learn from them. Training for experienced company salespeople usually emphasizes product information or the use of new technology, although salespeople must also be informed about new selling techniques and changes in company plans, policies, and procedures. Many firms are now using AI to improve training. - It can determine if salespersons are watching videos or being interrupted on the job while training.
Ex: creative brief subsequent ad campaign for Imperial Sugar. (grumpy grandma on ads)
Why Why are we advertising?→ to get Imperial Sugar back as the top-of-mind brand following a disruption in supply Why should they believe it?→ It's what their grandmothers used... it's written on their recipe cards Who Whom are we talking to?→ Women age 25-50 who bake for the holidays; Top management at Imperial Sugar (not convinced they needed advertising in first place) What What do they currently think?→ "Sugar is sugar. it doesn't matter what brand I buy." What do we want them to think?→ That it is important to use Imperial because of its long history. What is the single most persuasive idea we can convey?→ If you want your holiday recipes to turn out right, use Imperial Sugar. What are the creative guidelines?→ has a holiday focus
publicity (PR Tools)
a news-story type of communication about an organization and/or its products transmitted through a mass medium at no charge - used to provide information about goods or services; to announce expansions or contractions, acquisitions, research, or new-product launches; or to enhance a company's image. - Ex: each time Apple CEO Tim Cook announces that the company will introduce a new model of the iPhone and iPad, the story is covered in newspapers and television news shows throughout the world for months afterward.
advertising
a paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media (television, radio, the internet, newspapers, magazines, video games, direct mail, outdoor displays, and signs on mass transit vehicles) - used to promote goods, services, ideas, issues, and people (Highly flexible) - influence how a brand's own sales force views company products
personal selling
a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation. - most extensively used in the business-to-business market and also in the business-to-consumer market for high-end products such as homes, cars, electronics, and furniture - the most precise of all promotion methods→ focus on the most promising sales prospects. the most effective way to form relationships with customers. - Goals (3 general)→ finding prospects, determining their needs, persuading prospects to buy, following up on the sale, and keeping customers satisfied - Must be aware of competition; Changing based on new technology - Ex: an HP salesperson describing the benefits of the company's servers, PCs, and printers to a small-business customer.
unaided recall test
a posttest in which respondents are asked to identify advertisements they have seen recently but are not given any recall clues
recognition test
a posttest in which respondents are shown the actual ad and are asked if they recognize it - If they do, the interviewer asks additional questions to determine how much of the advertisement each respondent read.
viral marketing
a strategy to get consumers to share a marketer's message, often through email or online videos, in a way that spreads dramatically and quickly - Key contributors→ humor and the unexpected - more effective for products that are less utilitarian (practical and functional) in nature. - Ex: Blendtec, the powerful kitchen blender, developed videos showing its blender pulverizing everything from rakes to marbles and even Apple iPads. "Will it blend videos"
pioneer advertising
advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product. - employed when the product is in the introductory stage of the product life cycle. - cause people to think about the product more and evaluate it more positively.
competitive advertising
advertising that tries to stimulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands in general (ex: Cable, satellite, and streaming internet television service providers) - Advertising effects on sales must reflect competitors' advertising activities. - Get a mac better ex: The "Mac vs. PC" ads from the early 2000's are a classic example of competitive advertising. because the Apple Mac is being compared to the class of competitors that are PCs. No specific brand of PC (such as HP, Dell, etc.) is mentioned. - The way these two brands were personified gave the Mac an advantage over PCs because both characters were likable--the Mac character did not disparage the PC in any way or come across as obnoxious or unpleasant. - These ads were so popular that the campaign lasted three years and included a total of 66 bite-sized spots.
reminder advertising
advertising used to remind consumers about an established brand's uses, characteristics, and benefits - Ex: Chiquita Banana reminded customers about its bananas on World Banana Day by partnering with Snapchat to create banana-themed lenses and filters.
four key elements of promotion
advertising, personal selling, public relations, and sales promotion
Budget allocation
allocating the budget across the different advertising media. - IMC plan→ the budget is allocated across all promotion components such as sales promotions, retailer support, experiential events, sponsorships, etc. - Ex: IMC budget allocation that the Texas A&M Advertising Competition Team created for a national student advertising competition when Nissan was the client. - The $50 million budget was determined using a combination of objective-and-task and arbitrary approaches - IMC budget is allocated across both advertising media such as TV, print, digital and outdoor along with promotional elements such as dealer support. - One database relevant to advertising budgeting and allocation is called Redbooks - advertising budget and allocation data for Starbucks for 2020-2022 found in Redbooks. - In 2021, Starbucks spent an estimated $105 million in advertising, with the majority going towards broadcast television, followed by digital. - Redbooks even gives us the breakdown of each category. the broadcast budget above was spent primarily in network and cable TV, while the print budget was allocated mostly to magazines.
Sponsored social media (paid ads)
allows detailed targeting of posts designed to convert (e.g., drive website clicks, sales, etc.). - Placements can be very precisely targeted based on age, country, income, gender, interests, behaviors, etc. - These ads typically have a call to action with a link to a website. - Best for conversion objectives - Ad audience size larger - Robust audience targeting - Multiple ad objective options - Allows for A/B testing - More complicated to use - Many options for creative ad displays
Animatic
animated storyboard; brings the idea to life and helps advertisers decide if they want to invest fully into producing a video. Ex: volkswagen commercial - Volkswagen sponsored a great Super Bowl commercial to demonstrate its remote start feature. - Shows the animatic that was created before the video was produced. - Animatic storyboard→ Star wars theme pictures drawn out to music - Actual production very similar to storyboard
online fraud
any attempt to conduct dishonest activities online, including deceiving consumers into releasing personal information Hacking→ break into websites and steal users' personal information. most challenging cybersecurity issue→ ransomware Cybercriminals gain access to consumer and business computers, encrypt files, and then demand a ransom payment for providing a key to unlock the files
podcast
audio or video file that can be downloaded from the internet with a subscription that automatically delivers new content to listening devices or personal computers Benefits→ convenience, giving users the ability to listen to or view content when and where they choose; shown to be influential over consumer buying habits Ex: listening to nutrition podcasts while in the grocery store increases the likeli-hood that shoppers will purchase healthier items. create brand awareness, promote their products, and encourage customer loyalty.
advertising platform
basic issues or selling points to be included in an advertising campaign - should be the best and most meaningful message that can be conveyed. - consist of issues important to customers (survey to get info); Focus on selling features or a product's Unique Selling Point, or USP. - It is the account planner's job to ensure the platform conveys the most meaningful message for the target market. - Ex: McDonald's advertises all-day breakfasts as part of its advertising platform for its restaurants.
Retain loyal customers and reach new ones (Objectives of Promotion)
can help an organization control its costs, because the costs of retaining customers are usually considerably lower than those of acquiring new ones. Ex: frequent user programs by airlines; loyalty programs
Owned media
channels (websites, social media, blogs, podcasts, and other media controlled by the brand or company.) (free) - still costs associated with running owned media, such as paying an agency to manage social media or an employee to create blog content.
pulsing schedule
combines continuous and flighting schedules: during the entire campaign, a certain portion (low level) of advertising runs continuously, and during specific time periods of the campaign, additional advertising is used to intensify the level of communication with the target audience (back to school or major holidays)
Electronic word of mouth
communicating about products through websites, blogs, email, social networks, or online forums. (Buyers can peruse internet-based newsgroups, forums, and blogs to find word-of-mouth information) - If followers have a social identification with the celebrity, they are more likely to engage in product involvement.
proxemic communication
communicating by varying the physical distance in face-to-face interactions - Ex: When a customer backs away from a salesperson he or she may be displaying a lack of interest in the product or expressing dislike for the salesperson.
coding process (encoding)
converting meaning into a series of signs or symbols - source must consider certain characteristics of the receiver or audience. - To share meaning, the source should use signs or symbols familiar to the receiver or audience, but try to avoid signs or symbols that may have several meanings for an audience. - Ex: soda as a general term for soft drinks may not work well in national advertisements.
Create awareness (Objectives of Promotion)
crucial to initiating the product adoption process - to generate revenues to off-set the high costs of product development and introduction. - Ex: Apple frequently begins to build awareness about new products months before it releases them. It holds an annual conference, at which CEO Tim Cook creates interest and excitement about new products.
Major decision areas and activities (eight general areas of sales management)
establishing sales-force objectives, determining sales-force size, recruiting and selecting salespeople, training sales personnel, compensating salespeople, motivating salespeople, managing sales territories, and controlling and evaluating sales-force performance.
posttest
evaluation of advertising effectiveness after the campaign; Advertising objectives often determine what kind of posttest is appropriate. - If the objectives' focus is on communication—to increase awareness of product features or brands or to create more favorable customer attitudes—the posttest should measure changes in these dimensions. - Measuring Return on Investment (ROI) and Return on Advertising Spending (ROAS) during and post-campaign are common ways of assessing effectiveness, as are monitoring sales, changes in consumer attitudes, social media engagement, website hits - difficult to determine the direct effects of advertising on sales, many advertisers evaluate print advertisements according to how well consumers can remember them
Industry trade shows
events in which firms in a particular industry display and demonstrate their offerings to other organizations they hope will buy them.
Executing the Campaign
fully execute the campaign across all media throughout the time period; requires extensive planning and coordination - Implementation requires detailed schedules to ensure that various phases of the work are done on time - Advertising management personnel must evaluate the quality of the work and take corrective action when necessary; changes are made during the campaign so it meets objectives more effectively - Account Executive→ oversees campaign execution and puts out all the many fires that can pop up when trying to implement something of this complexity. - Account Manager→ serve as team leader on a campaign project and keep everything moving along; the liaison with and expert on the client and its business.
Experiential marketing
invites an audience to interact with a business in a real-world situation. - Using participatory, hands-on, and tangible branding material, the business can show its customers not just what the company offers, but what it stands for. - It is not the same thing as event marketing (buzz marketing) - extends event marketing to immersive experiences that facilitate dynamic consumer interactions and lasting emotional connections; so the activity needs to be engaging and meaningful, not just an opportunity to try or buy a product. - can occur in stand-alone locations such as parks, busy downtown areas, or retail stores, or in conjunction with other events such as music and other festivals--wherever a large number of the target audience can be found or is willing to go. Goal→ is to build connections with customers, measuring the success of campaigns is challenging compared to campaigns designed to drive sales or product trial. key performance indicators that can be evaluated: Attendance and engagement Social media engagement Brand sentiment
Online Monitoring and Analytics
involves activities to track, measure, and evaluate a firm's digital marketing initiatives. - Monitoring and evaluating digital media help marketers maximize resources and minimize costs. - Trends and changes in outcomes are important to performance. - predictive analytics - Key performance indicators (KPIs) should be embedded at the onset of a social media strategy that can allow almost real-time measurement and evaluation.
Social media marketing
involves obtaining communications with consumers through social media sites; using social platforms to interact with customers - enables firms to promote a message and create online conversations through multiple platforms. - can be used to monitor target market competitors and understand the social and economic environment as a whole. ability to reach out to new target markets - has the potential of building campaigns that produce advocates and enthusiasts of a firm's products. - Ex: Pillsbury invited its 4.7 million Facebook followers to vote for a new limited-edition cookie flavor. Pillsbury released the winning flavor, Strawberry Cheesecake.
straight commission compensation plan
paying salespeople according to the amount of their sales in a given period may be based on a single percentage of sales or on a sliding scale involving several sales levels and percentage rates (ex: sales under $500,000 a quarter would receive a smaller commission than sales over $500,000 each quarter) When especially useful→ Highly aggressive selling is required; non selling tasks are minimized; company uses contractors and part-timers Advantages→ Provides maximum amount of incentive; by increasing commission rate, sales managers can encourage salespeople to sell certain items; selling expenses relate directly to sales resources Disadvantages→ Salespeople have little financial security; sales managers have minimum control over sales force; may cause salespeople to give inadequate service to smaller accounts; selling expenses less predictable
High-priced products (expensive watches, high-end electronics, and high-quality furniture) (Characteristics of the Product)
personal selling (exclusive distribution)
word-of-mouth communication
personal, informal exchanges of communication that customers share with one another about products, brands, and companies - Most customers are likely to be influenced by friends and family members when they make purchases.
New business sales
personnel locate prospects and convert them into buyers. - These organizations largely depend on new customer sales→ real estate, insurance, appliances, automobiles, and business-to-business supplies and services.
illustrations
photos, drawings, graphs, charts, and tables used to spark audience interest in an advertisement (Consumers recall visuals better) - used to draw attention, encourage audiences to read or listen to the copy, communicate an idea quickly, or convey ideas that are difficult to express.
SEM
refers to paid search marketing where businesses pay Google or other search engines to show their ads in search results. - Advertisers bid on the key words they think customers will use when searching for products and if their bid is highest, it is displayed. - pay per click advertising
Search Engine Marketing (paid) and Search Engine Optimization (earned/owned)
related terms that are used interchangeably. - Both techniques attempt to increase visibility of brands and products on a search engine results page (SERP) when a user types a search term into a platform such as Google or Bing. - The key difference is SEO focuses on getting website traffic from organic (unpaid) search and SEM focuses on getting traffic from paid search.
Managing the Sales Force
sales force is directly responsible for generating sales revenue Suggestions for Attracting and Retaining a Top Sales Force Training and development On-the-job training Online individual instruction Seminars On-site classroom instruction Compensation Make sure pay mix isn't too risky (high commission, low base) for sales role Mix base salary with commission, bonus, or both Base bonuses/commission on reaching sales goals rather than on individual sales dollars Maintain competitive benefits and expense reimbursement practices Work/life autonomy Offer flexible hours Consider telecommuting/work-at-home options Product quality and service Ensure products meet customer needs Provide the appropriate service after the sale
controlling and evaluating sales-force performance
sales managers use information obtained through salespeople's call reports, customer feedback, and invoices. Sales personnel must often file work schedules indicating where they plan to be during specific time periods. Dimensions used to measure a salesperson's performance are determined largely by sales objectives, normally set by the sales manager. To evaluate a salesperson, a sales manager may compare one or more of these dimensions with predetermined performance standards.
consumer sweepstakes
sales promotions in which entrants submit their names for inclusion in a drawing for prizes (employed more often than consumer contests and tend to attract a greater number of participants.)
support personnel
sales staff members who facilitate selling but usually are not involved solely with making sales; engage primarily in marketing industrial products, locating prospects, educating customers, building goodwill, and providing service after the sale.
consumer contests
sales-promotion methods in which individuals compete for prizes based on their analytical or creative skills; used to generate retail traffic and frequency of exposure to promotional messages. Ex: Oreo created a contest, the Oreo Dunk Challenge, where consumers submitted photos or videos dunking Oreos in milk on Facebook, Instagram, and Twitter. The winners won a VIP experience to meet one of the celebrities involved in the campaign, namely Christina Aguilera, Shaquille O'Neal, or Neymar da Silva Santos Junior and winning $2,000 Ex: Dr. Pepper sales promotion that ran in the United Kingdom. - This was a simple contest where consumers pull the ring of their can of Dr. Pepper to see whether they won a major prize, like a television, or if they won a pair of Dr. Pepper underwear. - You wouldn't think the idea of buy a product and see if you won a prize was all that interesting--it's been done many times before. - However, the ridiculous idea of a pair of Dr. Pepper underwear caught peoples' attention and the campaign went viral. - Consumers snapped up Dr. Peppers in hopes of actually winning the underwear instead of a major prize. - (Point of trivia: "smalls" is slang for underwear, especially in the northern UK). Ex: In 2021, Pepperidge Farms Goldfish crackers released a successful sales promotion activation that took advantage of a social media trend occurring at the same time (duetting videos). - The Goldfish #GoForTheHandful TikTok Challenge asked consumers to duet with NBA star, Boban Marjanovic, to see if they could hold as many crackers as he could in a single handful (Boban could hold 301)! - Participants posted their videos to TikTok and the most creative posts won prizes, including special edition autographed "Boban Size" giant bags of Goldfish crackers. - This particular activation was especially effective because the contest placed the product itself front and center.
consumer games
sales-promotion methods in which individuals compete for prizes based primarily on chance (often by collecting game pieces like bottle caps or a sticker on a carton of french fries.) Ex: mcdonalds monopoly Development and management of consumer games is often outsourced to an independent public relations firm, which can help marketers navigate federal and state laws that regulate games.
rebates
sales-promotion techniques in which a consumer receives a specified amount of money for making a single product purchase more expensive products; used to reinforce brand loyalty and encourage product purchase Large expensive items (ex: cars) rebate given at point of sale Smaller items rebate given after sale (in the mail)
money refunds
sales-promotion techniques that offer consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases (relatively low in cost) an alternative to coupons to stimulate sales; used to promote trial use of a product sometimes generate a low response rate and, thus, have limited impact on sales
motivating salespeople
should translate into high productivity (Systematic approach) achieved through an organized set of activities performed continuously by the company's sales management. Effective motivators→ Enjoyable working conditions, power and authority, job security, opportunity to excel, company efforts to make sales jobs more productive and efficient, sales contests, and incentive programs The most common incentive offered by companies is cash, followed by gift cards and travel. Travel reward programs can confer a high-profile honor, provide a unique experience that makes recipients feel special, and build camaraderie among award-winning salespeople. Advantages of awarding merchandise→ the items have visible trophy value, recipients who are allowed to select the merchandise experience a sense of control, and merchandise awards can help build momentum for the sales force. Disadvantages of using merchandise→ employees may have lower perceived value of the merchandise and the company may experience greater administrative problems.
SMS messages
single text messages of 160 characters or less; effective way to send coupons to prospective customers.
widgets
small bits of software on a website, desktop, or mobile device that enable users to interface with the application and operating system (Used to display news headlines, clocks, or games on their webpages.) Ex: CNBC uses widgets to send alerts and financial news to subscribers. used by companies as a form of viral marketing—users can download the widget and send it to their friends with a click of a button. Widgets downloaded to a user's desktop can update the user on the latest company or product information, enhancing relationship marketing between companies and their fans
Types of digital media in which consumers are likely to participate
social networks, blogs, wikis, media-sharing sites, virtual reality gaming, mobile devices, digital assistants, applications and widgets
3 basic compensation methods
straight salary, straight commission, or combination
Email Marketing (paid)
strong potential as an effective digital marketing tool Studies show 58% of Gen Z (age 18-24) check email multiple times per day, yet they only receive about ten emails per day. - This makes it easier for marketers to break through the clutter often experienced with social media and display advertising. Additionally, only about 3% of website visitors say they will make a purchase the first time they visit, but 65% say they will purchase as the result of a well-planned email campaign. Ex: Venmo attempted to reengage lost users with a friendly and informational email highlighting recent changes and benefits.
technical salespeople
support salespeople who give technical assistance to a firm's current customers (ex: advising them on product characteristics and applications, system designs, and installation procedures) formal training in one of the physical sciences, information technology, or in engineering. often sell technical industrial products (computers, heavy equipment, and steel)
establishing sales-force objectives
tell salespeople what they are expected to accomplish during a specified time period. should be stated in precise, measurable terms; specify the time period and geographic areas involved; and be achievable. Total sales force objectives→ terms of sales volume, market share, or profit Ex: the objective for an electric drill producer's sales force might be to sell $18 million worth of drills, or 600,000 drills annually. Individual salespeople objectives→ terms of dollar or unit sales volume; average order size, average number of calls per time period, and ratio of orders to calls.
Evaluating Advertising Effectiveness
test the effectiveness of advertising (measuring achievement of advertising objectives; assessing effectiveness of copy, illustrations, or layouts; and evaluating certain media)
relationship selling
the building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time (aka consultative selling) involves finding solutions to customers' needs by listening to them, gaining a detailed understanding of their organizations, understanding and caring about their needs and challenges, and providing support after the sale. Soft selling→ spending more time listening major part→ Being proactive in identifying the need for recovery behavior - Ex: contacting the customer if delivery time is longer than expected as well as explaining what happened and when the product will be delivered is important. generates loyal long-term customers→ likely to be extremely profitable for the firm both in repeat sales as well as the money saved in trying to find new customers.
advertising campaign
the creation and execution of a series of advertisements to communicate with a particular target audience - Most advertising campaigns are usually part of an overall promotional or IMC campaign.
Control
the customers' ability to regulate the information they view as well as the rate and exposure to that information - Ex: Consumers use Kayak.com to discover the best travel deals
account planner
the link between the customer and the agency, especially the designers in the agency who are developing the advertisements. - Job→ to understand key target market insights make sure the final creative product meets those insights; usually the one to write the creative brief and manage its implementation. - should rely on the brand persona when creating campaigns, and elements of the brand guide may be specified in the creative brief document.
Media Channel
the main class or means of communication (e.g., TV, radio, print, digital)
approach
the manner in which a salesperson contacts a potential customer (critical step in the sales process) (pay special attention to first impressions) Critical tasks→ Creating a favorable impression and building rapport with prospective clients must be designed to deliver value to targeted customers.
feedback
the receiver's response to a decoded message - Calls to action (coupons, visits to websites, and digital marketing response rates) are some of the best ways to measure the impact and collect feedback from consumers on the receptiveness to the offer. - Feedback is coded, sent through a communications channel, and decoded by the receiver, the source of the original communication. - Face to face communication is most adaptive and flexible→ Instant feedback - When mass communication like advertising is used, feedback is often slow and difficult to recognize.
closing
the stage in the personal selling process when the salesperson asks the prospect to buy the product
product placement
the strategic location of products or product promotions within entertainment media content to reach the product's target market (successful in reaching consumers as they are being entertained) - Ex: The Lego Movie represented perhaps the ultimate brand placement. Warner Bros. paid a licensing fee to Lego to use its brand to create the lead roles of Lego characters. Not only was the movie successful, but Lego also went on to surpass Mattel as the world's largest toymaker. Such product placement on television has become more important due to the increasing fragmentation of television viewers who have ever-expanding viewing options and technology that can screen advertisements (e.g., digital video recorders).
electronic marketing (or e-marketing)
the strategic process of pricing, distributing, and promoting products, and discovering the desires of customers using digital media and digital market (mobile phones, banner ads, digital outdoor marketing, and social networks)
the top networking site for businesses and business professionals; allows users to post a public profile, similar to a resume, connect with colleagues, find job listings, and join private groups; used to spread brand awareness and for corporate recruiting - 80% of B2B marketers say LinkedIn is an effective business lead generator.
team selling
the use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process (ex: expensive high-tech business products) involves the salesperson joining with people from the firm's financial, engineering, and other functional areas The salesperson takes the lead in the personal selling process, but other members of the team bring their unique skills, knowledge, and resources to the process to help customers find solutions to their own business challenges. created to address a particular short-term situation, or formal, ongoing teams. advantageous in situations calling for detailed knowledge of new, complex, and dynamic technologies (ex: jet aircraft, medical equipment, construction, consulting)
wiki
type of software that creates an interface that enables users to add or edit the content of some types of websites (wikipedia) (only information that is verifiable through another source is considered appropriate.) - Because of its open format, Wikipedia has suffered from some high-profile instances of vandalism in which incorrect information was disseminated. Advantages→ some companies have begun to use wikis as internal tools for teams working on a project requiring lots of documentation; monitoring wikis provides companies with a better idea of how consumers feel about the company brand. Disadvantages→ Wikis on controversial companies such as Walmart and Nike often contain negative publicity about the companies, such as worker rights violations.
Social media
used to drive engagement and build brand relationships. (owned media) - They often utilize different strategies across different social media platforms. Ex: on Twitter, GoPro communicates with followers and promotes new products. - Its YouTube focuses on tips and tutorials for better videos. - On Instagram, GoPro shows off high quality photos and videos and shares user-generated content - The drawback is that customers must first be following the brand if they are to see the message. - To expand reach beyond current followers and achieve specific objectives, brands will use paid social media. - Paid social media is sometimes difficult to distinguish from the brand's owned media—in fact, it is often the exact same post, but the brand is paying to have the post either boosted or sponsored to send to a wider audience.
Effective exposure (Evaluating media)
we must be exposed to an ad multiple times before we become aware of it and process the message (5 to 12 times)
blogs
web-based journals (short for "weblogs") in which writers editorialize and interact with other internet users - give consumers control, sometimes more than companies would like. - Ex:Tumblr allows anyone to post text, hyperlinks, pictures, and other media and is one of the top free blog-ging platforms. The site, which has been around for more than a decade, has approximately 500 million blogs with 15 million daily posts in 18 languages. Automattic—the owner of Wordpress, another popular blogging platform—acquired Tumblr for $3 million.
Social Listening
when brands track their social media profiles for conversations related to their business, whether directly mentioned or not. - done by searching for business-related keywords, hashtags, or direct mentions and tags. - Effective listening allows brands to respond to influencer or consumer comments, incorporate user-generated content, and identify trends and new product ideas. Ex: using social listening, Netflix learned fans were sharing their humorous frustrations with falling asleep while binging their favorite shows and losing their spot. - Netflix responded with an award-winning solution: Do-it-yourself Netflix Socks that detect when you fall asleep and pause your tv. - The result of this campaign? - Seven million new Facebook fans, 500,000 new Twitter followers, and 800,000 new Instagram followers in a year!
coupons
written price reductions used to encourage consumers to buy a specific product Used to build brand awareness, encourage product trial, stimulate quantity purchases prompt customers to try new or established products increase sales volume quickly attract repeat purchasers introduce new package sizes or features. Savings are deducted from the purchase price most widely used consumer sales-promotion technique Ex: Today show how coupon clipping has changed - shows how coupons have become more difficult to find, despite inflation causing increased pressure to search for bargains. - Retail stockouts huge issue - Coupons online, credit card savings, rebate offers
