Advertising and Marketing Communications Exam 1

Brand identity

A combination of many factors, including the name, logo, symbols, design, packaging, and performance of a product or service as well as the image or type of associations that come to mind when consumers think about a brand Consumers' awareness, knowledge, and image of the brand as well as the company behind it Sum of all points of encounter or contact

Message

A communication containing information or meaning that a source wants to convey to a receiver May be verbal or nonverbal, oral or written, or symbolic Must be put into a transmittable form that is appropriate for the channel of communication being used Marketers must make decisions regarding the content of the messages they send to consumers as well as the structure and design of these messages Content refers to the information and/or meaning contained in the message Structure and design refer to the way the message is put together in order to deliver the information or intended meaning

Persuasion matrix

A communication planning model in which the stages of the response process (dependent variables) and the communication components (independent variables) are combined to demonstrate the likely effect that the independent variables will have on the dependent variables Helps marketers see how each controllable element interacts with the consumer's response process Independent variables: controllable components of the communication process - Source, message, channel, receiver (target audience), destination Dependent variables: steps a receiver goes through in being persuaded - Message presentation, attention, comprehension, yielding, retention, behavior Can evaluate: - Receiver/comprehension: can the receiver comprehend the ad? - Channel/presentation: which media will increase presentation? - Message/yielding: what type of message will create favorable attitudes or feelings? - Source/attention: who will be effective in getting consumers' attention?

Direct-marketing agency

A company that provides a variety of direct-marketing services to its clients, including database management, direct mail, research, media service, creative, and production Direct marketing is one of the fastest growing areas of IMC Infomercial production, digital marketing, analytics, and database management Many companies are using database marketing to pinpoint new customers and build relationships and loyalty among existing customers Typically divided into three departments: account management, creative, and media Most are compensated on a fee basis

Integrated marketing communications plan

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

Personal selling

A form of (paid) person-to-person communication communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company's product or service or to act on an idea Face-to-face or through some form of telecommunications (unlike advertising) Individualized communication allowing the seller to tailor the message to the customer's specific needs/situation Involves more immediate and precise feedback

Incentive-based system

A form of compensation whereby an advertising agency's compensation level depends on how well it meets predetermined performance goals such as sales or market share (or even quality of the creative work) Demands more accountability for agencies; ties agency compensation to performance; works best when the agency has complete control over a campaign Compensation determined through media commissions, fees, bonuses, or some combination of these methods Performance reviews, sales goals, brand/ad awareness can be used as performance criteria Value-based compensation: agencies are compensated above their basic costs, if they achieve or exceed results as measured by agreed-upon metrics

Reference group

A group whose perspectives, values, or behavior is used by an individual as the basis for his or her judgements, opinions, and actions Three types: associative, aspirational (to which we might like to belong), and dissociative (to which we do not wish to belong) Family members may assume a variety of roles (i.e. initiator, the information provider, the influencer, the decision maker(s), the purchasing agent, and the consumer) in the decision-making process Advertiser must determine who is responsible for the various roles in the decision-making process so messages can be targeted at those people Understanding the decision-making process and the use of information by individual family members is critical to the design of messages and choice of promotional program elements

Classical conditioning (book)

A learning process whereby a conditioned stimulus that elicits a response is paired with a neutral stimulus that does not elicit any particular response; through repeated exposure, the neutral stimulus comes to elicit the same response as the conditioned stimulus Assumes that learning is an associative process with an already existing relationship between a stimulus and a response Contiguity (UCS and CS must be close in time and space) and repetition (frequency) are important I.e. UCS (lollipop), UCR (sweetness), CS (Mariah's lollipop), CR (sweetness) Buyers can be conditioned to form favorable impressions and images of various brands through the associative process Image advertising presents UCS and brand (CS) Can associate a product or service with a favorable emotional state (i.e. background music) Views the individual as a passive participant in the learning process who simply receives stimuli; conditioning occurs as a result of exposure to a stimulus that occurs before the response Conditioned stimulus: in classical conditioning, a stimulus that becomes associated with an unconditioned stimulus and capable of evoking the same response or reaction as the unconditioned stimulus; i.e. bell Conditioned response: in classical conditioning, a response that occurs as a result of exposure to a conditioned stimulus; i.e. salivating

Operant (instrumental) conditioning

A learning theory that views the probability of a behavior as being dependent on the outcomes or consequences associated with it The individual must actively operate or act on some aspect of the environment for learning to occur Behavior (consumer uses product or service) -> positive or negative consequences occur from use of product, leading to reward or punishment -> increase or decrease in probability of repeat behavior (purchase)

Indirect channel

A marketing channel where intermediaries such as wholesalers (institutions that sell to other resellers) and retailers (which sell primarily to the final consumer) are utilized to make a product available to the customer

Two-sided message

A message in which both good and bad points about a product or claim are presented Acknowledging a limitation or short-coming can be a way to enhance credibility and make the message more effective More effective when the target audience holds an opposing opinion or is highly educated I.e. Domino's introducing its reformulated pizza

Fixed-fee method

A method of agency compensation whereby the agency and client agree on the work to be done and the amount of money the agency will be paid for its services The agency charges a basic monthly fee for all of its services and credits to the client any media commissions earned

Cost-plus system

A method of compensating advertising agencies whereby the agency receives a fee based on the cost of the work it performs plus an agreed-on amount for profit (often a percentage of total costs) Agency must keep detailed records of the costs it incurs in working on the client's account Direct costs (personnel time and out-of-pocket expenses) plus an allocation for overhead and a markup for profits determine the amount the agency bills the client Fee agreements and cost-plus systems are commonly used in conjunction with a commission system

Commission system

A method of compensating advertising agencies whereby the agency receives a specified commission (traditionally 15%) from the media on any advertising time or space it purchases Traditional and simple method of compensation Critics argue that it encourages agencies to recommend high-priced media to their clients to increase their commission level; also argued that the system ties agency compensation to media costs, which have skyrocketed over the years May encourage agencies to recommend mass-media advertising and avoid noncommisisionable IMC tools such as direct mail, sales promotion, PR, and event sponsorships unless they are requested by the clients Easy to administer and keeps the emphasis in agency compensation on non-price factors such as the quality of the advertising developed for the clients Agency services are proportional to the size of the commission, since more time and effort are devoted to the large accounts that generate high revenue for the agency More flexible than it appears as agencies often perform other services for large clients at no extra charge as a way of justifying the large commission they receive Movement away from system during the 1990s; now more common outside US

Negotiated commision

A method of compensating advertising agencies whereby the client and agency negotiate the commission structure rather than relying on the traditional 15% media commission Commissions average from 8-10% or are based on a sliding scale that becomes lower as the clients' media expenditures increase

Demographic segmentation

A method of segmenting a market based on the demographic characteristics of consumers Segmentation variables include gender, age, sex, education, income, social class, race, life stage, birth era, household size, residence tenure, and marital status Most common method of segmenting markets

Behavioristic segmentation

A method of segmenting a market by dividing customers into groups based on their usage, loyalties, or buying responses to a product or service; PRIZM system may be used 80-20 rule: the principle that 80% of sales volume for a product or service is generated by 20% of the customers

Geographic segmentation

A method of segmenting a market on the basis of different geographic units or areas Segmentation variables include region, city size, metropolitan area, density, nations, states, counties, and neighborhoods

Benefit segmentation

A method of segmenting markets on the basis of the major benefits consumers seek in a product or service The grouping of consumers on the basis of attributes sought in a product

Information processing model

A model of advertising effects developed by William McGuire that views the receiver of a message as an information processor and problem solver; the model views the receiver as passing through a response hierarchy that includes a series of stages including message presentation, attention, comprehension, acceptance of yielding, retention, and behavior Similar to hierarchy of effects sequence Retention is the receiver's ability to retain the portion of comprehend information that he or she accepts as valid or relevant; important stage since most promotional campaigns are designed not to motivate consumers to take immediate action but rather to provide information they will use later Cognitive stage (presentation, attention, comprehension) -> affective stage (yielding, retention) -> behavioral stage (behavior)

Multi-attribute attitude models

A model of attributes that views an individual's evaluation of an object as being a function of the beliefs that he or she has toward the object on various attributes and the importance of these attributes Mathematical way to represent attitudes Formula = sum (weighting x evaluation) Views an attitude object, such as a product or brand, as possessing a number of attributes that provide the basis on which consumers form their attitudes Consumers have beliefs about specific brand attributes and attach different levels of importance to these attributes By understanding the beliefs that underlie consumers' evaluations of a brand and the importance of various attributes or consequences, the marketer is better able to develop communication strategies for creating, changing, or reinforcing brand attitudes Provides insight into ways marketers can influence consumer attitudes: Increasing or changing the strength or belief rating of a brand on an important attribute (Colgate has the best whitening power) Changing consumers' perceptions of the importance or value of an attribute (Michelin tires provide higher gas mileage and safety) Adding a new attribute to the attitude formation process (the product is environmentally friendly) Changing perceptions or belief ratings for a competing brand (GM shows its cars can compete with anyone)

Hierarchy of effects model

A model of the process by which advertising works; assumes a consumer must pass through a sequence of steps from initial awareness to eventual action; awareness -> knowledge -> liking -> preference -> conviction -> purchase Premise of this model is that advertising effects occur over a period of time The basis for the classic purchase funnel metaphor that is often used to depict the decision process consumers go through The consumer starts at the top of the funnel with a number of brands in mind, methodically reduces that number as he or she becomes familiar with and evaluates these alternatives, and then emerges with the brand he or she chooses to purchase Foundation for setting objectives and measuring the effectiveness of advertising and other tools in many companies Cognitive stage (awareness, knowledge) -> affective stage (liking, preference, conviction) -> behavioral stage (purchase)

AIDA model

A model that depicts the successive stages a buyer passes through in the personal-selling process, including attention, interest, desire, and action Most common model Developed to represent the stages a salesperson must take a customer through in the personal-selling process The "action" stage is the most important, but it can also be the most difficult Cognitive stage (attention) -> affective stage (interest, desire) -> behavioral stage (action)

Elaboration likelihood model

A model that identifies two processes by which communications can lead to persuasion -- central and peripheral routes Explains the process by which persuasive communications (such as ads) lead to persuasion by influencing attitudes The attitude formation or change process depends on the amount and nature of elaboration, or processing, of relevant information that occurs in response to a persuasive message - High elaboration means the receiver engages in careful consideration, thinking, and evaluation of the information or arguments contained in the message - Low elaboration occurs when the receiver does not engage in active information processing or thinking but rather makes inferences about the position being advocated in the message on the basis of simple positive or negative cues Marketers must decide whether to focus on central messaging or peripheral cues

Innovation adoption model

A model that represents the stages a consumer passes through in the adoption process for an innovation such as a new product; the series of steps includes awareness, interest, evaluation, trial, and adoption Evolved from work on the diffusion of innovations Sampling or demonstration programs encourage trial of new products Especially important to companies who are using IMC tools to introduce new products to the market Marketers recognize that early adopters and digital adopters are valuable Cognitive stage (awareness) -> affective stage (interest, evaluation) -> behavioral stage (trial, adoption)

Selective attention

A perceptual process in which consumers choose to attend to some stimuli and not others Consumers screen out the majority of ads

Sleeper effect

A phenomenon in which the persuasiveness of a message increases over time; explains why a low-credibility source may be as effective as a high-credibility source

Selective exposure

A process whereby consumers choose whether or not to make themselves available to media and message information I.e. might change channels or leave room during TV commercial break

Direct-response advertising

A product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer A form of advertising for a product or service that elicits a sales response directly from the advertiser

Creative boutique

A small advertising agency that specializes in and provides only services related to the creative aspects of advertising Has long been part of the advertising industry Has creative personnel such as writers and artists on staff but do not have media, research, or account planning capabilities Can turn out inventive creative work quickly and without the cumbersome bureaucracy and politics of larger agencies Many companies prefer working directly with a smaller creative boutique because they can get more attention and better access to creative talent than they would at a larger agency Face challenges as many find themselves competing against larger agencies for business, particularly when there are cutbacks in advertising spending Many clients want the range of services that large agencies provide Many offer additional services as they grow

Attractiveness

A source characteristic that makes him or her appealing to a message recipient; source attractiveness can be based on similarity, familiarity, or likability Similarity is a supposed resemblance between the source and the receiver of the message - If the communicator and receiver have similar needs, goals, interests, and lifestyles, the position advocated by the source is better understood and received - Sometimes used by creating a situation where the consumer feels empathy for the person shown in the ad Familiarity refers to knowledge of the source through exposure Likability is an affection for the source as a result of physical appearance, behavior, or other personal traits Can be applied by using celebrities; many marketers think celebrities have stopping power (they draw attention to ads in a very cluttered media environment, favorably influence consumers, and enhance the target audience's perceptions of the product) Must avoid dangers such as overshadowing the product (vampire effect), overexposure, target audiences' receptivity, risk to the advertiser (celebrity scandals), and return on investment (usually strong in the short-term but fades after 6 months)

Cognitive dissonance

A state of psychological tension or post-purchase doubt that a consumer may experience after making a purchase decision; this tension often leads the consumer to try to reduce it by seeking supportive information More likely to occur in important decisions where the consumer must choose among close alternatives (especially if the unchosen alternative has unique or desirable features that the selected alternative does not have) May seek out reassurance and opinions from others, lower their opinions or attitudes of the unchosen alternative, deny or distort any information that doesn't support their choice, or look for information that supports their choice

Public relations

A strategic communications process that builds mutually beneficial relationships between organizations and their publics The management function that evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program to earn public understanding and acceptance When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives Broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics Uses publicity, special publications, participation in community activities, fundraising, sponsorship of special events, advertising, and various public affairs activities Nonpersonal, nonpaid

Promotional pull strategy

A strategy in which advertising and promotion efforts are targeted at the ultimate consumers to encourage them to purchase the manufacturer's brand The goal is to create demand among consumers and encourage them to request the product from the retailer May be appropriate when the demand outlook for a product is favorable because it has unique benefits, is superior to competing brands, or is very popular among consumers

Promotional push strategy

A strategy in which advertising and promotion efforts are targeted to the trade to attempt to get them to promote and sell the product to the ultimate consumer Programs designed to persuade the trade to stock, merchandise, and promote a manufacturer's products The goal is to push the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade Companies that have favorable channel relations may prefer to use this, or those with a limited promotional budget

Undifferentiated marketing

A strategy in which market segment differences are ignored and one product or service is offered to the entire market Saves the company money, but does not allow the opportunity to offer different versions of the product to differential markets

Omnichannel retailing

A strategy whereby companies sell their products through multiple distribution channels including retail stores, online, catalogs, and mobile apps Involves using a combination of physical or offline channels as well as digital or online channels to influence a customer's shopping experience including research before a purchase and service after a sale

Primacy effect

A theory that the first information presented in the message will be the most likely to be remembered If the target audience is opposed to the communicator's position, presenting strong points first can reduce the level of counterarguing Strong arguments work best at the beginning of the message if the audience is not interested in the topic, so they can arouse interest in the message

Fee-commission method

A type of compensation system whereby an advertising agency establishes a fixed monthly fee for its services to a client and media commissions received by the agency are credited against the fee The media commissions received by the agency are credited against the fee If the commissions are less than the agreed-on fee, the client must make up the difference If the agency does much work for the client in non-commissionable media, the fee may be charged over and above the commissions required

Affect referral decision rule

A type of decision rule (heuristic) where selections are made on the basis of an overall impression or affective summary evaluation of the various alternatives under consideration Suggests that consumers have affective impressions of brands stored in memory can be accessed at the time of purchase Marketers selling familiar and popular brands may stress overall affective feelings or impressions about the product

Compliance

A type of influence process where a receiver accepts the position advocated by a source to obtain favorable outcomes or to avoid punishment When a receiver perceives a source as having high power Persuasion induced may be superficial and last only as long as the receiver perceives that the source can administer some reward or punishment

Concentrated marketing

A type of marketing strategy whereby a firm chooses to focus its marketing efforts on one particular market segment -- selects one segment and attempts to capture a large share of this market

Differentiated marketing

A type of marketing strategy whereby a firm offers products or services to a number of market segments and develops separate marketing strategies for each (i.e. Marriott)

Refutational appeal

A type of message in which both sides of the issue are presented in the communication, with arguments offered to refute the opposing point Special type of two-sided message; tend to "inoculate" the target audience against a competitor's counterclaims Can be more effective in making consumers resistant to an opposing message Helps build attitudes that resist change

Interactive media

A variety of media that allows for a two-way flow of communication whereby users can participate in and modify the form/content they receive in real time; consumers can interact with the source of the message, actively receiving information and altering images, responding to questions, and so on Allows users to perform a variety of activities such as receive, alter, and share information and images; make inquiries; respond to questions; and even make purchases online We are in the second phase of the internet revolution (Web 2.0), where the focus is on collaboration and sharing among Internet users Digital is an integrator of different elements (i.e. YouTube integrates PR, sales promotion, advertising, etc.) and a medium itself

Programmatic buying

A wide range of technologies that have begun automating the buying, placement, and optimization of advertising media time and space

Marketing plan

A written document that describes the overall marketing strategy and programs developed for an organization, a particular product line, or a brand Examine overall marketing plan and objectives Role of advertising and promotion Competitive analysis Assess environmental influences

Hierarchy of needs

Abraham Maslow's theory that human needs are arranged in an order or hierarchy based on their importance; postulates 5 basic levels of human needs: Physiological: the basic level of primary needs for things required to sustain life, such as food, water, shelter, clothing, and sex Safety: the need for security/protection and safety from physical harm Social/love and belonging: the desire to have satisfying relationships with others and feel a sense of love, affection, belonging, and acceptance Esteem: the need to feel a sense of accomplishment and gain recognition, status, and respect from others Self-actualization needs: the need for self-fulfillment and a desire to realize one's own potential

The link between the ad agency and its clients

Accounts services or account management

2 schools of thought of advertising

Advertising = information for customers - Raises awareness - Increases price sensitivity so customers buy the best value - Customers have more choice since they can compare, which increases competition - Provides economic impact by fostering innovation and job creation - Becomes a key driver of pop culture Advertising = market power for companies - Alters consumer preferences and decreases competition - Decreases price sensitivity so companies are insulated (letting companies charge higher prices) - Brands build loyalty so it's harder to compete - Can be untruthful/deceptive or is offensive - Encourages materialism and targets children and elderly who are most vulnerable - Fosters stereotypes and influences social values

Promotional elements based on objective and involvement (least time consuming to most)

Advertising and support media: raise awareness, provide information Direct marketing: direct sales and communications Internet/interactive/online: engagement relationship building sales Sales promotion: generate trial, stimulate sales PR/publicity and corp ad: credibility, development, advocacy Personal selling: loyalty, building conversion, differentiation

National advertising

Advertising done by companies on a nationwide basis or in most regions of the country I.e. well-known brands on primetime TV Goals are to inform or remind consumers of the company or brand and its features, benefits, advantages, or uses and to create or reinforce its image Web advertising in which the advertiser attempts to gain attention by providing content in the context of the user's experience

Retail/local advertising

Advertising done by retailers or local merchants to encourage customers to shop at a specific store, use a local service, or patronize a particular establishment; direct-action promotion Emphasize patronage motives such as hours of operation, price, service, atmosphere, image, or merchandise assortment Advertising done by companies within the limited geographic area where they do business

Trade advertising

Advertising targeted to wholesalers and retailers (to interest and motivate them to purchase its products for resale to their customers) Usually appears in publications that serve the particular industry

Changes in agency compensation

Agencies are facing off with procurement specialists (who want to pay based on labor hours) and debating media rebates (an agency's receipt of a volume discount or compensation from media buys) with clients As more companies adopt IMC approaches, they are reducing their reliance on traditional media advertising, and this is leading to changes in the way they compensate their agencies Changes in agency compensation are also being driven by economic factors as most companies cut their advertising and promotion budgets during the recession as part of their efforts to save money across all areas of their marketing programs Companies are making their agencies more accountable for the fees they charge them for services and are asking for more transparency in how agencies structure, determine, and present fee compensation

Collateral services

Agencies that provide companies with specialized services such as packaging design, advertising production, and marketing research Wide range of support functions used by advertisers, agencies, media organizations, and specialized marketing communication firms Perform specialized function the other participants use in planning and executing advertising and other promotional functions Marketing research companies, package design firms, consultants, photographers, graphic design companies, talent agencies, video production houses, and event marketing service companies Marketing research companies conduct qualitative research such as in-depth interviews and focus groups, as well as quantitative studies such as market surveys

Digital/interactive agencies

Agencies that specialize in the development and strategic use of various digital and interactive marketing tools such as websites for the Internet, banner ads, search engine optimization, mobile marketing, and social media campaigns

In-house agency

An advertising agency set up, owned and operated by an advertiser that is responsible for planning and executing the company's advertising program In an effort to reduce costs and maintain greater control over agency agencies, companies may set up their own advertising agencies internally Advantages: cost savings, more control, increased coordination, stability, access to top management Disadvantages: less experience, less objectivity, less flexibility, and less access to top creative talent I.e. Hyundai/Kia, Avon, Revlon, Land Rover, Bennetton Many use in-house agencies exclusively; others combine in-house efforts with those of outside agencies Reduces advertising and promotion costs Can provide related work such as production of collateral materials, digital media, package design, and public relations at a lower cost than outside agencies Keeps the marketing communications function more closely tied to top management (nearly 60% of in-house agencies report directly to the company's CEO or CMO) Provides stability because external agencies have much higher turnover levels which can take a toll on the client-agency relationship In-house agencies are known for retaining their personnel Time savings, bad experiences with outside agencies, and the increased knowledge and understanding of the market that come from working on advertising and promotion for the product or service day by day are reasons Companies can maintain tighter control over the process and more easily coordinate promotions with the firm's overall marketing program May do a better job than an outside agency Opponents say they can give the advertiser neither the experience (variety of backgrounds and ideas) and objectivity of an outside agency nor the range of services Companies often hire outside agencies as they grow and their advertising budgets and IMC needs increase The number of companies using in-house agencies to handle their advertising and other IMC functions is increasing, due in part to the explosion of digital advertising tools that require marketers to produce more content and do so more quickly Useful in industries like financial services or retailing where a large amount of marketing content must be created and distributed Able to move quickly and keep up with the fast-changing needs Has unlimited opportunity to learn from within, as those working inside a company can live and breathe the culture and the brand, which is difficult for external agencies to do

Full-serviceA agency

An advertising agency that offers clients a full range of marketing and communications services, including the planning, creating, producing, and placing of advertising messages and other forms of promotion; performing research; and selecting media May also offer non-advertising services such as strategic marketing planning, sales promotions, direct marketing, digital capabilities, package design, and PR Most full-service agencies maintain a research department whose function is to gather, analyze, and interpret information that will be useful in developing advertising for their clients

Psychoanalytic theory

An approach to the study of human motivations and behaviors pioneered by Sigmund Freud Believes consumers' motivations for purchasing are often very complex and unclear to the casual observer - and to the consumers themselves Many motives for purchase and/or consumption may be driven by deep motives one can determine only by probing the subconscious Criticized as being too vague, unresponsive to the external environment, and too reliant on the early development of the individual; also uses a small sample for drawing conclusions Results are difficult if not impossible to verify Its insights can often be used as a basis for advertising messages aimed at buyers' deeply rooted feelings, hopes, aspirations, and fears

Financial audit

An aspect of the advertising agency evaluation process that focuses on how the agency conducts its financial affairs related to serving a client Designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers

Qualitative audit

An audit of the advertising agency's efforts in planning, developing, and implementing the client's communications programs and considers the results achieved

Changing agencies

An important consideration in evaluating agencies is the value they provide to their client's business While many successful agency-client relationships go on for years, loyalty to a single agency is becoming less common as marketers seek new ways of connecting with consumers Some companies switch agencies quite often in search of better creative work or for a variety of other reasons such as reorganizations that led to changes in top management, changes in marketing or advertising strategy, or conflicts that might arise from mergers and acquisitions among both clients and agencies A company may switch agencies to consolidate all of its advertising and marketing efforts in one shop

Ad execution thoughts

An individual's thoughts about the ad itself Ad execution-related thoughts: a type of thought or cognitive response a message recipient has concerning factors related to the execution of the ad, such as creativity, visual effects, color, style, and voice tones - Can be favorable or unfavorable - Affect attitudes toward the advertisement and the brand - Affective reactions like these are more common than those directly relating to the product and/or message claims Attitude toward the ad (A->ad): a message recipient's affective feelings of favorability or unfavorability toward an advertisement Advertisers may use emotional appeals and/or humor designed to evoke positive feelings and affective reactions

Centralized system

An organization system whereby advertisers along with other marketing activities such as sales, marketing research, and planning are divided along functional lines and are run from one central marketing department Advertising manager: the individual in an organization who is responsible for the planning, coordinating, budgeting, and implementing of the advertising program - In the most common example, the advertising or marcom manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services Responsible for all promotions activities except sales Advantages: facilitates communications, fewer personnel required, continuity in staff, and allows for more top-management involvement Disadvantages: less involvement with and understanding of overall marketing goals, longer response time, inability to handle multiple product lines Manager's roles: administration and execution (organizes/controls the advertising department and subordinates - media, production, digital - and/or the agency). coordination with other departments (like research), and coordination with outside agencies and services Often used when companies do not have many different divisions, products or service lines, or brands to advertise (i.e. Target, Walmart, JetBlue, Southwest) Developing and coordinating advertising and marketing programs from one central location facilitates communication regarding the promotion program, making it easier for top management to participate in decision making May result in a more efficient operation since fewer people are involved in the program decisions, and as their experience in making such decisions increases, the process becomes easier May be difficult for advertising department staff to understand the overall marketing strategy for the brand, particularly if they are not brought into the planning process The department may be slow in responding to specific needs and problems of a product/service or brand As companies become larger and develop or acquire new products, services, or even divisions, the centralized system may become impracticable

Public relations firm

An organization that develops and implements programs to manage a company's publicity, image, and affairs with consumers and other relevant publics, including employees, suppliers, stockholders, government, labor groups, citizen action groups, and the general public Planning the PR strategy and program, generating publicity, conducting lobbying and public affairs efforts, becoming involved in community activities and events, preparing news releases, conducting research, promoting and managing special events, and managing crises Most are compensated on a fee basis or by retainer

Sales promotion agency

An organization that specializes in the planning and implementation of promotional programs such as contests, sweepstakes, refunds and rebates, sampling, premiums, and incentive offers for its clients Often work in conjunction with the client's advertising and/or direct-response agencies to coordinate their efforts with the advertising and direct-marketing programs Most are compensated on a fee basis

Decentralized system

An organizational system whereby planning and decision-making responsibility for marketing, advertising, and promotion lies with a product/brand manager or management team rather than a centralized department Separate manufacturing, research and development, sales, and marketing departments for various divisions, product lines, or businesses I.e. P&G, Unilever, PepsiCo, Google, and Nestle Assigns each product/service or brand to a brand (or product) manager: the person responsible for the planning, implementation, and control of the marketing program for an individual brand - In charge of the total management of the brand, which also includes budgeting, sales, and profit performance Advantages: concentrated managerial attention, rapid response to problems and opportunities, increased flexibility Disadvantages: ineffective decision making, internal conflicts, misallocation of funds, lack of authority, internal rather than external focus Each brand may have its own ad agency and may compete against other brands within the company, not just against outside competitors Advertising (and marketing research) part of marketing services department and provides support for the brand managers Category management system: an organizational system whereby managers have responsibility for the marketing programs for a particular category or line of products; oversees management of the entire product category and focuses on the strategic role of the various brands in order to build profits and market share Advertising or macrom manager may have authority to override the brand manager's decisions Each brand receives concentrated managerial attention, resulting in faster response to both problems and opportunities The brand managers have full responsibility for the marketing program, including the identification of target markets as well as the development of IMC programs that will differentiate the brand The brand manager system is also more flexible and makes it easier to adjust various aspects of the advertising and promotional program, such as creative platforms and media and sales promotion schedules Brand managers often lack training and experience The promotional strategy for a brand may be developed by a brand manager who does not really understand what advertising or sales promotion can and cannot do and how each should be used Brand managers may focus too much on short-run planning and administrative tasks, neglecting the development of long-term programs Individual brand managers often end up competing for management attention, marketing dollars, and other resources, which can lead to unproductive rivalries and potential misallocation of funds Fails to provide brand managers with authority over the functions needed to implement and control the plans they develop Some companies have in turn expanded the roles of the advertising and sales promotion managers and their staff of specialists Brand managers spend too much time on internal issues (planning/budgeting) and not enough to external matters or to creativity and problem solving A new challenge is training managers to keep abreast of the rapidly changing world of digital marketing and managing the identity of a brand across various social media platforms Brand managers are often involved in developing social media strategies

Advertising agency

An outside firm that specializes in the creation, production, and placement of advertising/communications messages and may provide other services that facilitate the marketing communications (and promotions) process A service organization that specializes in planning and executing advertising programs for its clients Many large advertisers retain the services of a number of agencies, particularly when they market a number of products (i.e. Kraft, General Motors) Many large companies often use additional agencies that specialize in developing ads for multicultural markets More and more, ad agencies are acting as partners with advertisers and assuming more responsibility for developing the marketing and promotional programs

Media department (agency)

Analyzes, selects, and contracts for space or time in the media that will be used to deliver the client's advertising message Develops a media plan to reach the target market and effectively communicate the message Reviews information on demographics, magazine and newspaper readership, radio listenership, etc. to develop an effective media plan Media buyer implements the media plan by purchasing the actual time and space An agency's ability to negotiate prices and effectively use the vast array of media vehicles, as well as other sources of customer contact, is becoming as important as its ability to create ads Some major agencies and/or their holding companies have formed independent media service companies to better serve their clients The research and media departments perform most of the functions that full-service agencies need to plan and execute their clients' advertising programs

Advertising

Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor Paid refers to being bought (excluding PSAs which are typically donated) Nonpersonal refers for how it involves mass media and there's generally no opportunity for immediate feedback from the message recipient Best-known and most widely discussed form of promotion Media-advertising is still the most cost-effective way to reach a large # of people Valuable tool for building company or brand equity

Noise

Anything that hinders the proper decoding of messages Any extraneous factors in the system that can interfere with the process and work against effective communication I.e. language barrier, multitasking, Internet connection, fields of experience of the sender and receiver don't overlap (using a sign, symbol, or words that are unfamiliar or have different meanings to the receiver) External: can't control Internal: caused by receiver Semantic: caused by sender

Market opportunities (and opportunity analysis)

Areas where a company believes there are favorable demand trends, needs and/or wants that are not being satisfied, and where it can compete effectively Identified by carefully examining the marketplace and noting demand trends and competition in various market segments

Internal analysis

Assesses relevant areas including the product/service offering and the firm itself Assesses the strengths and weaknesses of the firm or brand from an image perspective, as well as the relative strengths/weaknesses of the product or service The phase of the promotional planning process that focuses on the product/service offering and the firm itself, including the capabilities of the firm and its ability to develop and implement a successful IMC program

Alternative evaluation (class)

Attitude forms The consumer compares the various brands or products and services he or she has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process As a coping mechanism, people mentally narrow down the choices to a smaller group The "evoked set" Marketers try to affect brand attitudes which create a halo effect leading to more sales Attitude and multi-attitude models; there are strategies to influence brand attitudes I hate Walmart, I only drink Diet Coke, the Publix brand is just as good, I am an Apple person

Salient attributes

Attributes considered important to consumers in the purchase decision process; serve as the basis for making a purchase decision I.e. Apple's ease of use and innovation Can help position

AIDA model (basics)

Awareness -> interest -> desire -> action Cognitive (awareness) -> affective (interest/desire) -> behavioral (action)

Innovation adoption model (basics)

Awareness -> interest -> evaluation -> trial -> adoption Cognitive (awareness) -> affective (interest, evaluation) -> action (trial, adoption)

Hierarchy of effects model (basics)

Awareness -> knowledge -> liking -> preference -> conviction -> purchase Cognitive (awareness, knowledge) -> affect (liking, preference, conviction) -> action (purchase)

Tools for marketing strategy

BCG matrix, Porter's 5 forces, price/performance matrix, DuPont,SWOT, industry lifecycle, value chain

Mnemonics

Basic cues such as symbols, rhymes, and associations that facilitate the learning and memory process (i.e. 1-800-GOFEDEX)

Gateway takeaways

Be clear whether in-house or out is better option for your business - hire accordingly Management changes do not imply agency changes - you need to check the fit New positioning may require new thinking - but not always Positioning should always reflect corporate strategy however... constantly changing campaigns and taglines detract from solid brand building Stick with one core identity (Gateway: to improve a user's life) Agencies must consider the strategic implications of working with certain clients in addition to the financial implications - not as clear cut as it seems The advertising industry continues to integrate globally and across functions - Marketers: "Am I going to leverage the global scale of the network of firms, or will I manage it myself?" It is a tough business; margins keep shrinking because of the economic waves and relentless competition There is continuous tension within agencies between the "creatives" to win more business and the "suits" to ensure that the business is profitable

Salient beliefs

Beliefs concerning specific attributes or consequences that are activated and form the basis of an attitude Marketers should identify and understand salient beliefs and recognize that the saliency of beliefs varies among different market segments, over time, and across different consumption situations

Evoked set

Brands that are top of mind and can be considered: subset of brands that come to mind Reduces number of choices to manageable level 2/3 of supermarket purchased are unplanned, so it is important to become part of the consideration set The various brands identified as purchase options to be considering during the alternative evaluation process Generally only a subset of all the brands of which the consumer is aware The goal of most advertising and promotional strategies is to increase the likelihood that a brand will be included in the consumer's evoked set and considered during alternative evaluation Marketers use advertising to create top-of-mind awareness among consumers so that their brands are part of the evoked set of their target audiences Popular brands with large budgets use reminder advertising to maintain high awareness levels and increase the likelihood they will be considered by consumers in the market for the product Marketers of new brands or those with a low market share need to gain awareness among consumers and break into their evoked sets Two important subprocesses: the process by which consumer attitudes are created, reinforced, and changed; and the decision rules or integration strategies consumers use to compare brands and make purchase decisions Marketers of products characterized by a routine response purchase process need to get and/or keep their brands in the consumer's evoked set and avoid anything that may result in their removal from consideration Marketers of new brands or those with a low market share must find ways to disrupt consumers' routine choice processes and get them to consider different alternatives One factor in the level of problem solving to be employed is the consumer's involvement with the product or brand

The goal of branding

Build and maintain brand awareness and interest; develop and enhance attitudes toward the company, product, or service; and build and foster relationships between the consumer and the brand

3 types of advertising to business and professional markets

Business-to-business advertising: targeted at individuals who buy or influence the purchase of industrial goods (raw materials, machinery, etc.) or services (i.e. insurance) for their companies Professional advertising: targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company's product in their business operations Trader advertising: targeted to marketing channel members such as wholesalers, distributors, and retailers

Ways to position

By product attributes/benefits (i.e. salient) price/quality, use or application (i.e. baking soda for baking, relieving heartburn, etc.), by product class (avocado as fruit not veggie), product user (shoes with skateboarders), competitor, or cultural symbols (Pillsbury Doughboy, Tony the Tiger)

Fear appeals

Can be persuasive Too much fear can backfire An advertising message that creates anxiety in a receiver by showing negative consequences that can result from engaging in (or not engaging in) a particular behavior; arouses individuals to take steps to remove the threat I.e. discourage texting and driving The relationship between the level of fear in a message and persuasion may be curvilinear (low fear levels have facilitating effects that attract attention/interest; high levels have inhibiting effects making the receiver block the message) Protection motivation model: four cognitive appraisal processes mediate the individual's response to the threat - appraising the information available regarding the severity of the perceived threat, the perceived probability that the threat will occur, the perceived ability of a coping behavior to remove the threat and the individual's perceived ability to carry out the coping behavior Cognitive appraisal of the information in a fear appeal message and the emotional response mediate persuasion Ads should give the target audience information about the severity of the threat the probability of its occurrence, the effectiveness of a coping response, and the ease with which the response can be implemented More effective when the message recipient is self-confident and prefers to cope with dangers rather than avoid them; effective among non-users of a product

Non-personal channels

Carry a message without direct, interpersonal conflict between the sender and the receiver The message they contain is directed to more than one person and is often sent to many individuals at one time Consist of two major types: print (newspapers, magazines, billboards) and broadcast (radio, TV) Mass media: non-personal channels of communication that allow a message to be sent to many individuals at one time Internet is in part nonpersonal (mass media vehicle with paid search and banner ads and there is no personal contact)

Paid media

Channels of communication a marketer pays to leverage and includes traditional advertising media Traditional ads (i.e. TV, radio, print, outdoor, direct mail, newspapers, magazines, in-store media, banner ads, product placement, pay per click, display ads, retargeting, videos, paid search, social media ads, etc.) Efficient way to generate awareness and interest

Owned media

Channels of marketing communication that a company controls, such as its direct marketing, personal selling, event marketing, sales promotion, website, digital videos, apps, social media, blogs, mobile apps, brochures, in-store displays, and microsites Corporate content

Building brands without mass media (class notes)

Clarify brand's identity -> strong positioning - Organization buy-in -> values, culture - Continuously demonstrated through 4 Ps - I.e. Zappos; Volvo Visibility helps build brand equity - Creative sponsorship: art shows, skiing - Danger of sending wrong messages - I.e. Starbucks, Benettonn Involve customer in brand-building - Samples, events, factory tours, clubs, amusement parks, virtual malls - I.e. Amazon.com Let your brand strategy drive your business strategy (Starbucks); what kind of companies does this work for best? Clarify your brand's identity; stand for something (Ben and Jerry's and global warming) Brand visibility signals leadership, success, quality, substance and excitement - top of mind often = liking (M&Ms) Often, your limitations in some area enable you to find alternative brand building means - lack of $; lack of credibility; lack of access; etc. (Body Shop; Haagen Dazs) Compare outside your company and industry and retain leadership and in-house capabilities in main media or communications area (Cadbury; Nestle)

3 actors in the IMC process

Client: corporations, non-profit organizations, government Agency: full-service agency, creative boutique, marketing communication specialists Media: media buying, market research, marketing services

Participants in the IMC process

Clients Advertising agency Media organizations Specialized marketing communication services Collateral services

Traditional models and marcom objectives

Cognitive stage: provide info, create awareness, inform - Represents what the receiver knows or perceives about the particular product or brand Affective stage: remind, differentiate, change attitudes - The receiver's feelings or affect level (like or dislike) for the particular brand Behavioral stage: trial, conversion, repurchase, loyalty - The consumer's action toward the brand: trial, purchase, adoption, or rejection

One-sided message

Communications in which only positive attributes or benefits of a product or service are presented Most effective when the target audience already holds a favorable opinion about the topic; work better with a less educated audience Used by most advertisers

Building brands without mass media (reading)

Companies do not "make brand building happen" and must build strong brands to be competitive In the United States, mass-media advertising has long been the cornerstone of most brand-building efforts, but that norm is threatening to become obsolete, as fragmentation and costs increase and new communication channels are already in use Managers of brands in Europe have found that communication through traditional mass media has been ineffective, inefficient, and costly, and have therefore long relied on alternative communication channels Let brand strategy drive your business strategy: senior managers should drive the brand building - Many US companies rely on agencies, but this creates distance between senior managers and their key asset, the brand-the driver of future growth opportunities; plus, agency talents lead them to rely on mass media Clarify your brand's identity; the foundation of any good brand-building program so that those designing and implementing the communications programs do not inadvertently send conflicting or confusing messages to customers - I.e. The Body Shop's core brand identity is in essence its profits-with-a-principle philosophy, fighting for social, political, and environmental causes - I.e. The HäagenDazs brand means premium ice cream: thicker, creamier, and pricier than any other ice cream on the market Identity-building brand exposure creates visibility Simple recognition can affect perceptions: people tend to like known brands even if they have never used them Brand visibility can signal leadership, success, quality, substance, and even excitement and energy-all before the product comes into play Keep in mind that sheer visibility should not be the ultimate goal in a serious brand-building effort: any campaign to increase visibility must have as its beacon the brand's identity - I.e. Hugo Boss, a fine clothier, created its image of exclusivity and high quality in large part through effective use of sponsorship (like Miami Vice and Porsche) - I.e. SMH took Swatch from rooftops to concert halls to ski slopes in a targeted campaign to boost visibility and forge a clear brand image Involve the customer in brand-building experiences - Providing extensive information, especially using media advertising, cannot duplicate the impact of customers' personal experience with a brand - I.e. Cadbury has created a theme-park journey through the history of chocolate and the history of Cadbury - complete with a museum, a restaurant, a partial tour of the packaging plant, and a "chocolate event" store - I.e. Casa Buitoni Club (recipe booklets, cooking advice, sweepstakes, etc.) - I.e. Adidas has developed what it calls urban culture programs, which include participatory events across Europe such as a streetball challenge, a streetball festival, and a track-and-field clinic - I.e. Virgin's approach involved participating in CompuServe's U.K. Shopping Centre, a virtual mall One person or team inside the organization should have the responsibility for the brand The charge is to create a strong, clear, rich identity and to make sure that the implementation groups, whether inside or outside the company, understand that identity

Media specialist companies

Companies that specialize in the buying of advertising media time and space, particularly for television and digital advertising The task of purchasing advertising media has grown more complex, especially with the fragmentation of media audiences and the growth of digital media Help execute media strategies Alternative to full-service agency The rise of the independent media buying services, operating outside the structure of the traditional ad agency media department, and the divestment of these departments from the agency system are two of the most significant developments that have recently occurred in the agency system

Reasons for the growing presence of IMC

Companies understand the value of strategically integrating the various communications functioning rather than having them operate autonomously Reflects adaptation by marketers to a changing environment: mass media -> micromarketing as the mass audience assembled by network TV and augmented by other mass media is fragmenting at an accelerating rate Plays a major role in the process of developing and sustaining brand identity and equity

5 Cs Analysis

Company competences, customer insights, competitive fores, collaborators, context-environmental analysis

Competitive analysis

Competitive analysis: Direct brand competition (which can also include its own brands) to more indirect forms, such as product substitutes Competitive advantage Competitors' marketing programs have a major impact on a firm's marketing strategy, so they must be analyzed and monitored Competitors may cut price, increase promotional spending, develop new brands, or attack one another through comparative advertising A growing number of foreign companies are entering the US market and taking business from domestic firms

Functional consequences

Concrete outcomes of product or service usage that are tangible and can be directly experienced by a customer I.e. the taste of a soft drink, the acceleration of a car, or the speed of the Internet service provider

Classical conditioning

Conditioned responses (Pavlov's dog) Positive associations with product (i.e. Lancome association with rose) IMC tools: consistent imaging and resonant message

Consumer decision journey

Consider, evaluate, buy, and enjoy-advocate-bond Views the consumer decision-making process as a winding journey with multiple feedback loops rather than a linear, uniform path to purchase based on active shopping and influenced by marketer dominated and controlled touch points Recognizes that consumers connect with brands through digital and social media channels that are often beyond the marketers' or retailers' control Social media is the only component that can touch consumers at every stage Marketers should allocate their budget to paid, owned (i.e. website), and earned (i.e. customer-created content) media Marketers of low-involvement products such as consumer-packaged goods are shifting more of their marketing budgets from traditional to digital media due to advanced analytics, lower costs, reach, engagement, etc.

Chapter 4 takeaways

Consumers are overwhelmed by information and choices - They have selective attention, comprehension, and retention - Marketers too often rely on repetition and reinforcement Marketers are in the business of influencing others - Use decision-making frameworks to understand where consumers are "stuck" and being indecisive - Make it easy for customers to buy Promotional tools are both useful and dangerous - B2B decision making involves buyers, users, payers - When used well, they can nudge consumers to take action-When used poorly, they turn off consumers even more

Strategies to influence brand attitudes

Convince consumers of importance of existing attribute (Atkins friendly) Emphasize existing strength (Volvo safety) Minimize negative (KFC; abbreviated after fried foods became less poplar) Add new attribute (Honda pedestrian safety)

Traffic department

Coordinates all phases of production to see that the ads are completed on time and that all deadlines for submitting the ads to the media are met (Creative)

3 source attributes to maximize influence

Credibility: expertise, trustworthiness - Who do you trust/believe (internalization) Attractiveness: similarity, likability - Who do you like? (identification) Power: perceived control, complicance - Who can control you? (compliance)

Purchase decisions are affected by (environmental influences)

Culture/situation/marcom Broadest to narrowest Culture: differences in consumption behavior Subculture: demographic, psychographic segmentation Social class: socio-economic segmentation Reference group: peer group Situational factors: use/purchase/communication - A laptop, for instance, can be intended for use at home or work, purchased with friends or family, and/or communicated by seeing an ad before school or listening to a radio ad with friends Marketing communications

When to use emotional appeals

Desires, aspirations If brand differentiation is low With mature products

Sustainability

Development that meets the needs of the current generation without compromising the needs of future generations to meet their needs

Digital promotional elements

Digital advertising (advertising): banner ads, social media ads, influencers, paid content, traditional, remarketing retargeting Email marketing (direct marketing): newsletter, automation, abandoned cart, series, custom order, notifications, recommendations, loyalty emails E-commerce website (Internet): analytics, heat maps, list building, social sharing, screen Search (sales promotion): paid search (SEM), search engine optimization (SEO), pay per click, landing pages Reputation management (PR): reputation, monitoring, positive review, white papers, influencer marketing Social media (personal selling): FB, IG, Twitter, etc.

Product/message thoughts

Directed at the product or service and/or the claims being made in the communication; should minimize counter-arguing and encourage support arguments Counterargument: a type of thought or cognitive response a receiver has that is counter or opposed to the position advocated in a message (i.e. "I don't believe any detergent could get that stain out") - The likelihood of counterarguing is greater when the message makes claims that oppose the receiver's beliefs - Relate negatively to message acceptance; the more the receiver counterargues, the less likely he or she is to accept the position advocated in the message Support argument: consumers' thoughts that support or affirm the claims being made by a message (i.e. "Ultra Tide looks like a good product; I think I'll try it") - Relate positively to the message acceptance

Source-oriented thoughts

Directed at the source of the communication Source derogations: negative thoughts generated about the source (spokesperson or organization making claims) of a message - Generally lead to a reduction in message acceptance Source bolsters: favorable cognitive thoughts generated toward the source of a message - Many advertisers attempt to hire spokespeople their target audience likes

Psychographic segmentation

Dividing the market on the basis of personality and/or lifestyles Segmentation variables include personality, values (VALS), and lifestyle (Claritas)

Segmentation

Dividing up a market into distinct groups that have a common need and will respond similarly to a marketing action Can segment geographically, demographically, psycho-graphically, behaviorally, product related Marketers attempt to determine as much as they can about the market

Touch point

Each and every opportunity the customer has to see or hear about the company and/or its brands or have an experience or encounter with it Company-created touch points: planned marketing communication messages created by the company such as advertisements, websites and social media sites, news and press releases, packaging, brochures, sales promotions, point-of-purchase displays, and in-store decor; under the control of the marketer; lowest impact Intrinsic touch points: interactions that occur with a company or brand during the process of buying or using the product or service such as discussions with retail sales personnel or customer service representatives; not always controlled, but can be (i.e. design or functioning of the company or sites and packaging) Unexpected touch points: unanticipated references or information about a company that a customer or prospect receives that is beyond the control of the organization (i.e. word-of-mouth; reviews); most impactful but most difficult to control Customer-initiated touch points: interactions that occur whenever a customer or prospect contacts a company (inquiries/complaints)

Besides psychology, alternative approaches to consumer behavior include

Economics, sociology, anthropology, philosophy, semiotics, and history

Chapter 2 takeaways

Everything communicates the brand Marketing starts with strategy and analysis Marketing communications is a down-stream process, but the earlier you consider it, the stronger your positioning will be Clear branding can serve as a north star to guide decisions and draw linkages between all the different marketing elements You cannot be all things to all people (don't try) -> focus by STP Marketing mix and promotion - JM study results: all elements of the marketing mix must be strategically consistent in a plan that results in an IMC program - can't just consider the promotion element Product and promotion - JCR study results - advertising helps to create product symbolism for the brand beyond functional utility; and therefore, it adds to brand equity Price and promotion - HBR study results: companies with high quality products and high advertising levels obtained the highest prices and ROI; relationship was strongest for mature products, market leaders and for low cost products Distribution and promotion - JMR study results: consistent with the product and pricing decisions, where and how the brand is distributed sends a communications message

The core phenomenon or domain for marketing

Exchange

Earned media

Exposure for a company or brand that it did not have to pay for and is generally by outside entities such as media coverage or the general public (i.e. others sharing information via social media) Online communities, PR, publicity, word of mouth, buzz or viral, likes, comments, shares, mentions, reviews Organic

Dove (class notes)

First stage (2002): Surveys revealed that only 2% of respondents worldwide chose to describe themselves as beautiful -> Tick-Box campaign (billboards were erected and viewers were asked to phone in to vote on whether a woman on the billboard was "outsized" or "outstanding;" a counter on the billboard showed the votes in real time; attracted keen public interest, as "outsized" first raced ahead and then fell back Second stage (2005): Firming campaign promoted a cream that firmed the skin and featured six "real" women cheerfully posing in plain white underwear Third stage (2006): Freckles ("hates her freckles") and the Super Bowl (filmed daughters discussing own issues and aired) Fourth stage (2006): Evolution and YouTube (face of a young woman as cosmetics, hair styling, and Photoshop editing transformed from plainness to billboard glamour) Mission statement: Dove's mission is to make more women feel beautiful every day by broadening the narrow definition of beauty and inspiring them to take great care of themselves Fifth stage (2006): Dove Cream Oil Body Wash (new product) was to be promoted during the Oscars and ads were to be created by consumers

"Good" advertising

Funny, memorable, likable, effective, simple, useful, relatable, unique

Gateway case

Gateway changed its agencies 5 times over 6 years and over 16 times until 2012; then, it filed for bankruptcy A technology and direct-marketing pioneer: the first company in the industry to sell computers online, the first to bundle its own branded internet service with a PC, and among the first direct retailers to sell its own branded consumer electronic products In 1996 the company became one of the first "brick and click" retailers when it introduced a nationwide network of Gateway Country stores The company's first outside agency was hired to handle its television advertising, but the company moved on to a global agency that could help the company with its growing international business - The global agency used scripts and actors, which Gateway didn't want Small creative boutique and then one of the largest agencies in the world Gateway's revenue hit a record high in 2000, but they became increasingly dissatisfied with the level of service it was receiving from McCann (large agency) since the agency had won the Microsoft account in 1999 and its creative work was "more corny than folksy" (did not understand the company's intensely Midwestern culture) Eventually, Gateway decided to move away from the folksy, rural image and brand itself as a more modern and hip company (and modernize its products) with the help of a new group: as part of its new strategy Gateway began offering 150+ digital electronics products such as a complete selection of digital cameras, TVs, and MP3 players In September 2003, Gateway launched its first fully integrated business-to-business campaign since 2000 with print and TV ads

Gateway (class)

Gateway changed its agencies 9 times from 1997-2005; 3 times from 2002-2003 and then 4 times since 2003; Acquired by Acer in 2007 Founded in 1985 in Iowa by Ted Waitt; became a Fortune 500 company with $3B in sales by 1993 Until 1993; Gateway relied on print advertising which was developed in house As the company grew, Ted Waitt wanted to include TV and first hired Carmichael Lynch from Minneapolis; also hired director and filmmaker, Henry Corra, to bring the creative and unscripted folksy feel to the ads As Gateway grew, Waitt began to look for an agency that could expand business to other parts of the country and the world - Hired DMB&B in 1997 - Had a rocky start because the agency and Gateway couldn't agree on who controlled what and how to collaborate; Waitt didn't like traditional advertising 1998: took advertising back in house and fired DMB&B, rehired Corra; Jeff Weitzen was brought in to run Gateway, who hired McCann Erickson one week later 2000: Sales hit an all time high of $9.6B; Gateway is #3 2001 - Weitzen resigns and Waitt is brought back in; fires McCann because he thought their work was more corny than folksy; hired Corra again for in-house work but sales still fell 2002: hired Siltanen/Keehl as agency of record because Waitt wanted to rebrand from being folksy and rural to being hip and modern; hired the Arnell group in late 2002 2003: Fired Arnell in early 2003 and hired Leo Burnett; later hired Grey to help with B2B but kept Leo to do B2C 2004: Fired Leo Burnett In late 2004, Hired Crispin Porter Bogusky for just 10 months, but the agency retired the brand! Gateway then moved to the Woo Agency in 2005 Sales hit a low of $3.8B Left Woo to go to Obrien Industries in 2006 Was acquired in 2007 by Acer Used many different taglines, including Yourware, people rule, and humanology (B2B)

Cognitive learning process

Goal -> purposive behavior -> insight -> goal achievement

Communication objectives

Goals that an organization seeks to achieve through its promotional program in terms of communications effects, such as creating awareness or knowledge about a product and its attributes or benefits; creating an image; or developing favorable attitudes, preferences, or purchase intentions

Targeting

Going after or delivering value to the best segments selected Largest, fastest-growing, highest revenues May consider location, where competitors are, and strategic opportunity After evaluating the opportunities presented by various market segments, including a detailed competitive analysis, the company may select one, or more, as a target market (becoming the focus of marketing efforts) The selection of the target market (or markets) in which the firm will compete is an important part of its marketing strategy and has direct implications for its advertising and promotional efforts Companies often develop different marketing strategies to satisfy different consumer needs (through target marketing) Determine how many segments to enter (undifferentiated, differentiated, concentrated marketing) and which segments offer the most potential (sales, growth competition)

Competitive frame

Has a direct impact on the size of the opportunity, the diversity of the customers and competition, and the benefits needed to compete effectively Direct substitutes (same product form) Current category New or broader category Competition for dollars

Central route

High involvement High motivation to process the message (only affected by ability and/or intellectual capacity) Persuasion (positive attitude change) Boomerang (negative attitude change) One of two routes of persuasion recognized by the elaboration likelihood model; views a message recipient as very active and involved in the communications process and as having the ability and motivation to attend to and process a message Consumer pays close attention and scrutinizes the message A high level of cognitive response activity; persuasion depends on the quality of the arguments presented Favorable cognitive responses (support arguments and source bolsters) lead to favorable changes in cognitive structure, leading to positive attitude change, or persuasion Unfavorable cognitive responses (counter arguments and source derogation) leads to unfavorable and boomerang changes in cognitive structure (or negative attitude change) Attitude changes are more enduring and predictive of behavior than those formed via the peripheral route Motivated to process (issue involvement, relevance commitment, dissonance arousal, need for cognition) -> ability to process (distaction, message comprehensibility, issue familiarity, appropriate schema, fear arousal) -> nature of cognitive processing (favorable, unfavorable, or neutral thoughts) -> cognitive structure and attitude change

Standard learning model

High involvement, high perceived product/brand differentiation Learn, feel, do I.e. MBA, washing machine, personal computers, printers, cameras Savvy marketers can help customer evaluate brands before buying (i.e. MarCom has detailed information) Information and knowledge acquired or learned about the various brands are the basis for developing affect, or feelings, that guide what the customer will do (i.e. actual trial or purchase) The consumer is viewed as an active participant in the communication process who gathers information through active learning Ads for products and services are often detailed and provide customers with information that can be used to evaluate brands and help them make a purchase decision; might focus on a specific product attribute or feature

Dissonance/attribution model

High involvement, low perceived product/brand differentiation A type of response hierarchy where consumers first behave, then develop attitudes or feelings as a result of that behavior, and then learn or process information that supports the attitude and behavior Do, feel, learn I.e. dentist, mechanic, tires Savvy marketers justify purchase after-the-fact to reduce dissonance or buyers' remorse Occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes The consumer may purchase the product on the basis of a recommendation by some nonmedia source and then attempt to support the decision by developing a positive attitude toward the brand and then perhaps even develop negative feelings toward the rejective alternative(s) Reduces any post-purchase dissonance or anxiety Dissonance reduction involves selective learning, whereby the consumer seeks information that supports the choice made and avoids information that would raise doubts about the decision Marketers need to recognize that in some situations, attitudes develop after purchase, as does learning from the mass media The main effect of the mass media is the reduction of dissonance by reinforcing the wisdom of the purchase or providing supportive information Likely to occur when the consumer is involved in the purchase

IMC: From Communication Tactic to Profit Building Strategy (reading)

IMC is a process through which companies accelerate returns by aligning communication objectives with corporate goals Four P's (product, price, place, promotion) popularized in the late 1950s and ignored customers; profit optimization, rather than customer retention, was key Three shifts occurred in the mid-1980s to thrust IMC to the fore: technology, branding, and globalization IMC uniquely integrates all the pieces of an organization around a single factor: the wants and needs of customers

Market segments

Identifiable groups of customers sharing similar needs, wants, or other characteristics that make them likely to respond in a similar fashion to a marketing program; target markets the company wishes to pursue

What is marketing?

Identifying customer needs - getting into their heads Designing goods and services to meet needs Communicating information about those items Making goods available at times and places that meet customers' needs Pricing goods and service to reflect costs, competition, and customers' ability to buy Ensuring customer satisfaction A long-term exchange and relationship development (rather than transactional) It's not fluff, or just solely selling, or solely advertising, or making people buy things they don't need Creating value (5 Cs, STP) -> capturing value (4 Ps aka the marketing mix) -> sustaining value (acquisition, retention, and customer retention management)

Dove takeaways

In today's media-rich world, traditional advertising models have changed; the customer now runs the show Successful ad campaigns today are self parodying or spark discussions rather than blatantly sell products or services As digital interactivity increases the contexts in which people use new media, its becomes less productive to think of people as consumers alone Managing a brand and an advertising campaign is no longer a one sided game; when a brand seeks resonance by espousing a point of view, it invites response and must be prepared to respond Above all else, brands have to be genuine and truthful "In this world, marketers no longer rule the market. They are invited guests"- Unilever CMO, Simon Clift

Copywriter

Individual who helps conceive the ideas for ads and commercials and writes the words (headlines, subheads) or body copy (words constituting the message) Part of the creative services department Responsible for what the message says May also be involved in determining the basic appeal or theme of the ad campaign and prepare a rough initial visual layout of the print or TV ad

Situational determinants

Influences originating from the specific situation in which consumers are to use the product or brand; purchase and usage situation; may enhance or detract from the potential success of a message Usage: the circumstance in which the product will be used Purchase situation: involves the environment operating at the time of purchase (time constraints, store environments, etc.) Communications situation: the condition in which an advertising exposure occurs (i.e. in a car listening to the radio, with friends); arguably most relevant If advertisers can isolate a particular time when the listener is likely to be attentive, they will probably earn his or her undivided attention

Personal vs. nonpersonal channels

Information received from a personal channel is generally more persuasive than information received via mass media Information from ads in print media, such as newspapers, magazines, or direct mail, as well as online through websites and other form forms of owned media is self-paced: readers process the ad or information at their own rate and can study it as long as they decide Information from the broadcast media of radio and television is externally paced: transmission rate is controlled by the medium

Scot Safon guest lecture

Initially, marketing acted as a megaphone with mass reach and mass message (TV, radio, LIFE magazine, billboards, newspapers) Data analytics took form circa 1978: attribution marketing, ARPU (average revenue per user) Mass reach eventually becomes more strategic; with cable technology, new brands invade the home Consumers take control as technology disrupts TV, radio, travel A new age of discovery, celebrity, exploration, new platforms, new ways we connect with the world (Google, Facebook) Always on, always connected, always consuming mobile transforms the way we live, work, play, shop, watch Linear marketing world of advertising agencies, network TV/magazines/radio, commercials, impressions, ratings, sponsorships, promotions Integrated marketing world: creators, storytellers, data scientists, CPA/LTV, conversions, activations, events, experiences, optimizer Marketing challenge: making a big impact in a chaotic, TMI culture, distrust of institutions and messages, avoiding ads at all cost, wanting the experience of discovery, want to be the recommender and connector, sorting data for insights, inspiration and impact

IMC

Integrated Marketing Communications A strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive, marketing communications programs over time with consumers, customers, prospects, employees and other targeted, relevant, external and internal audiences The goal is to generate both short-term financial returns and long-term brand and shareholder value Coordinating the various promotional elements and other marketing activities that communicate with a firm's customers A vast array of IMC elements comprise touchpoints on the customer/brand journey Enhances brand engagement through more appropriate effective messaging Realigns communications to look at it the way the consumer sees it... as a flow of information from indistinguishable sources Seeks to have all of a company's marketing and promotional activities project a consistent, unified message to the marketplace; calls for centralized messaging More than just a "one look, one voice" approach; now recognized as a business process that helps companies identify the most appropriate and effective methods for communicating and building relationships with customers and other stakeholders Strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs over time with consumers, customers, prospects, employees, associates, and other relevant external and internal audiences Ongoing strategic business process rather than just tactical integration

Purchase decision

Integration The decision process varies significantly between non-durable and durable purchases I get what's on sale, maybe I'll try something new, it's the best deal Deciding on a purchase is not the same as actually purchasing - When, where, quantity, price, change of mind, delay are all mitigating factors - IMC tools include reminder advertising, packaging, shelf displays, point-of-purchase, on-package coupons At some point in the buying process, the consumer must stop searching for and evaluating information about alternative brands in the evoked set and make a purchase decision A purchase decision are not the same as an actual purchase Purchase decisions for nondurable, convenience items sometimes take place in the store, almost simultaneous with the purchase

Personal channels

Involve direct communication between two or more persons and can occur through interpersonal contact (face-to-face) or via other methods such as email or through social media A major advantage is that the message or presentation can be tailored to the individual or audience and the sender receivers direct feedback from them I.e. salespeople, members of one's social networks Internet is increasingly becoming personal since consumers can interact with marketers online as well as communicate and share information with one another through the use of various forms of social media Word-of-mouth (WOM) communications: social channels of communication such as friends, neighbors, associates, co-workers, or family members; involves informal communication among consumers about products and services and is a very powerful source of information; WOM marketing mainly by face to face Can be done through product samples or buzz (user-generated or viral) marketing Includes systematic and organized efforts to encourage people to speak favorably about a company, brand, organization, or issue and often to recommend to others in their social network Marketers often use techniques such as contest that encourage consumers to create user-generated content and then use social media as a way to disseminate it to spread the word about the brand Marketers must take a strategic approach in the development and implementation of campaigns that are designed to have strong WOM and viral components

Traditional response hierarchies (hierarchy models)

Involve learning (cognitive stage), feeling (affective stage), and doing (behavioral stage) First attempts to explain Depict the stages a consumer might go through from first becoming aware of a company, product, or service to actually buying a product Delineate (describe) the series of steps potential purchasers must be taken through to move them from unawareness of a product or service to readiness to purchase it Potential buyers may be at different stages in the hierarchy, so the advertiser will face different sets of communication problems Useful as intermediate measures of communication effectiveness

Integrated marketing communications management

Involves the process of planning, executing, evaluating, and controlling the use of the various promotional-mix elements to effectively communicate with target audiences

Criticisms of Super Bowl spending

Is the $5 million worth the investment? Freshness is an advantage, but "advertising does not sell stuff anymore" Clearly, almost no brand targets all of the 160 million people watching, but it better be a substantial amount of that 160 million Most people cannot recall the Superbowl advertisers It's more of a water cooler discussion than an investment choice

Does advertising have a direct impact on sales?

It depends... You might be able to measure what happens to store traffic shortly after an ad runs

Superagencies

Large external agencies that offer integrated marketing communications on a worldwide basis (late 1980s into the 90s) Many advertising organizations and major agencies have been acquiring companies specializing in areas such as digital, PR, CRM, etc. to offer clients a broader range of IMC services

Attitude

Learned predispositions to respond to an object; a summary construct that represents an individual's overall feelings toward or evaluation of an object Represent positive or negative feelings and behavioral tendencies Theoretically summarizes a consumer's evaluation of an object (company, product, brand, spokesperson, ad)

Postpurchase evaluation (class)

Learning Comparison of expectations to the level of performance Satisfaction occurs when the consumer's expectations are either met or exceeded; dissatisfaction results when performance is below expectations Feedback acquired from actual use of a product will influence the likelihood of future purchases Postpurchase communication is important: follow-up letters, toll-free numbers for answering questions, refund policies or guarantees Repeat purchase and brand loyalty start the moment the first sale is finished My parents always said margarine was better, that place has the worst service, they are always overpriced The beginning of the next cycle: lifetime customer value

Marketers look for "unguarded moments" to better understand consumers' attitudes

Limitations of focus groups and surveys: consumers are already anchored by advertising, does not offer subliminal/unconscious insights I.e. Got Milk had people journal about not using milk for 1 week I.e. Kellog's 7:30am house calls I.e. McDonalds using Playdoh for childhood flashbacks I.e. Sprint's hypnosis for 1st long-distance call

Rational appeals

Logic, function/utility With new and complex products With high diffrentiation

Low involvement hierarchy

Low involvement, low perceived product/brand differentiation Learn, do, feel I.e. bread, toilet paper Customers' behavior is shaped by advertising; form opinions after trial Savvy marketers can effectively use jingles or slogans to aid brand awareness and recall (TV is a low-involvement medium; poor for changing attitudes) Message exposure under low involvement -> shift in cognitive structure -> purchase -> positive or negative experience -> attitude formation The consumer engages in passive learning and random information catching rather than active information seeking A passive, uninterested consumer may focus more on nonmessage elements such as music, characters, symbols, and slogans, than actual message content Advertisers may develop a catchy jingle and repeat simple product claims that is salient and stored in the consumer's mind without any active cognitive processing; repetition is key (i.e. quicker picker-upper) VIP or visual image personality: symbols like Tony the Tiger to develop visual images that will lead consumers to identify and retain ads

Peripheral route

Low involvement: the receiver lacks the motivation or ability to process the information Temporary shift In the elaboration likelihood model, one of two routes to persuasion in which the receiver is viewed as lacking the ability or motivation to process information and is not likely to be engaging in detailed cognitive processing Rather than evaluating the information presented in the message, the receiver relies on peripheral cues or cognitive shortcuts (i.e. self-presentation motives, demand characteristics, evaluation apprehension, source characteristics, etc.) Favorable attitudes may be formed if the endorser in the ad is viewed as an expert or is attractive and/or likable or if the consumer likes certain executional aspects of the ad such as the way it is made, the music, or the imagery Can lead to rejection of a message (i.e. ads that advocate extreme positions, use unliked endorsers, or are not executed well) Attitude changes are temporary

Turner matrix

Low/high margin Low/high expertise From bottom left to upper right (low margin/expertise to high margin/expertise): hands-on tactics (stationary, trade show booth, logo) -> central hub (manage weekly status meetings) -> ideas and innovation (center; big idea/campaign) -> wisdom and experience (strategic thinking) -> black box (irreplaceable technology or group of people) Agencies that focus their efforts on the bottom left quadrant will turn into commodity providers of low-margin tactics Agencies that navigate to the upper-right quadrant will position themselves for future growth

Brand knowledge results from

Many awareness (recognition, recall) and image (associations, favorability) inputs and helps with choice

Refuation

Many companies issue refutation ads to quiet controversy

Operant conditioning (shaping)

Marketers must be careful with shaping learning incentives: not too much/too little Reinforcement: reward for action taken or avoiding negative consequences (i.e. Energizer ad showing low battery) Continuous reinforcement (rapid learning) vs. intermittent reinforcement (longer effect) (I.e. Dominos coupon, Bed Bath and Beyond) IMC tools: coupons, samples, loyalty cards

Sales promotion

Marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate sales Increased emphasis due to declining brand loyalty, increased customer sensitivity to promotional deals, and retailers becoming larger and more powerful thus demanding more trade support from their vendors Not to be confused with promotion, which includes all the promotional-mix elements and not just those to consumers or the trade (retailers/wholesalers) 2 types: consumer and trade

Direct channel

Marketing channel where a producer and ultimate consumer interacts directly with one another

Conclusion drawing

Marketing communicators must decide whether the messages should explicitly draw a firm conclusion or allow receivers to draw their own Messages with explicit conclusions are more easily understand and effective in influencing attitudes, but conclusion drawing may depend on the target audience, type of issue, and the nature of the situation More highly educated people prefer to draw their own conclusions Open-ended ads may be more effective when audiences are involved and the message is highly personal Depends in part on the complexity of the topic When immediate impact is not the objective and repeated exposure will give opportunities to draw own, open-ended messages can be used I.e. open-ended messages are effective in getting consumers to use health services

Advantages of Super Bowl spending

Massive reach: 111+ million people watching Because time is so expensive, there is no repetition; Super Bowl ads are the cornerstone of advertising Easy link to digital media Nothing delivers better excitement People watch the game to watch the ads

Reaching Millennials (reading)

Millennials: 80 million persons with a $172 billion spending power; born between 1982 and 2000; one of the most difficult segments to reach Expected to spend over $10 trillion in their lifetimes -> companies are trying to better understand them Bad economy, salaries are not increasing, expensive housing, college loan debts, frequent multitaskers, tech-savvy, travel spending has increased as new car purchases have been less than expected, more complex media habits "Sharing economy" in which clothes, homes, and cars are shared rather than purchased (i.e. Uber, Airbnb) Many companies are increasing their use of online offerings, social media, and digital apps -- but not all millennials are the same, and there are segments within the segment

Problem recognition (class)

Motivation Is the difference between ideal (I need) and actual (I have) state IMC tools such as coupons, point of purchase materials, billboards, and loyalty programs might be used with the problems identified - An IMC approach would include many different elements working together Marketers should listen for the customer's problem, which can be a need or a want Out of stock, dissatisfaction, new products, new needs/wants, related products, marketer-induced I deserve a new 3 wood, I wish I had one, I think that iPhone is neat, I ran out of bread

Elaboration is a process of ______ and _______

Motivation and ability to process the message Motivation to process the message depends on factors such as involvement, personal relevance, and individuals' needs and arousal levels Ability depends on the individual's knowledge, intellectual capacity, and opportunity to process the message - I.e. an individual viewing a humorous ad or one containing an attractive model may be distracted from processing the information about the product

3 types of advertising to consumer markets

National advertising Retail/local advertising Primary vs. selective-demand advertising

Publicity

Nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship News story, editorial, or announcement about an organization/product Not directly paid for by the company; nonpersonal communication to the masses (like advertising) Press releases, press conferences, feature articles, photographs, films, and video news releases Credibility and low costs are advantages, but publicity is not always under the control of an organization Goal of garnering attention (vs. PR's reputation)

Two-sided messages

Not common, but can be effective Better when audience holds an opposing view and is more educated

Evaluating Super Bowl ads

Not the 5Ms since it's very different than regular advertising spending Who did that? - Can you remember who paid for that advertisement? Do you know the why? Do you know what the benefits of the product are? Who is the hero? Do you feel good about the brand? Was it on target? Does the creative appeal to the audience they are trying to reach? Was it a wow? Did you smile and say "wow" at the end of the commercial? Was it break through?

Using a CEO as a source

Often used as credible and authentic sources Benefits: adds credibility, gives personal touch, saves money Risks: often motivated by ego, not logic; overshadows the company; CEO could leave company Consumers themselves can serve as credible sources

Media organizations

One of the major participants in the IMC process whose function is to provide information or entertainment to subscribers, viewers, or readers while offering marketers an environment for reaching audiences with print and broadcast (the firm's marketing communications) messages The media must have editorial or program content that attracts consumers so that advertisers and their agencies will want to buy time or space with them A medium's primary objective is to sell itself as a way for companies to reach their target markets with their messages effectively

Humor appeals

One of the most common approaches Relatively inexpensive, consumables, low involvement products Humor aids awareness, attention, and name recall, but may hurt complex copy registration and persuasion in general Generally not effective in motivating action/sales Are often the best known and best remembered of all ad messages Attract and hold consumers' attention, enhance effectiveness by putting consumers in a good mood, and distract the receiver from counterarguing May distract people from the brand and can be difficult to produce Wearout: the tendency for a television or radio commercial to lose its effectiveness when it is seen and/or heard repeatedly; humorous ads tend to wear out faster than serious appeals Humor is more effective when involvement is relatively low

Social media

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

Direct marketing

Organizations communicate directly with target customers to generate a response and/or a transaction Involves data management, direct selling, telemarketing, and direct-response advertising through direct mail, online, and various broadcast print media

Specialized marketing organizations

Organizations that provide marketing communication services in their areas of expertise including direct marketing, public relations, and sales promotion firms Direct-marketing agencies (implements direct-marketing programs) Sales promotion agencies (sweepstakes, contests, premium offers, samples) Digital/interactive agencies (websites) Public relations firms (publicity, relationships, etc.)

Compelling messages should be

Organized and easy to understand Order of presentation: important message at top and bottom; if strong counterarguments, or weak interest, put first Drawing a conclusion: more explicit are more effective in influencing attitudes and action; depends on audience education, involvement, and topic complexity

Often the consumer's first exposure to the product, so it must make a favorable first impression

Packaging

Types of media

Paid, owned, and earned Should leverage all three for comprehensive strategy

Feedback

Part of the message recipient's response that is communicated back to the sender; can take a variety of forms and provides a sender with a way of monitoring how an intended message is decoded Closes the loop in the communications flow and lets the sender monitor how the intended message is being decoded and received I.e. through customer inquiries, store visits, coupon redemptions, and reply cards

Information search

Perception Once consumers perceive a problem or need that can be satisfied by the purchase of a product or service, they begin to search for information needed to make a purchase decision There are many different ways to get information to help with purchase decisions Customers naturally filter out 95% of the messages they receive One study shows that people are exposed to 2,500 messages a day, but perceive 76 Inputs -> filter (selective perception: exposure, attention, comprehension, retention) -> output (engagement/perceived) Exposure: product placements (Idol), eclectic media (Carter's) Attention: risque content, ad as art Comprehension: credible source Retention: mnemonics, jingles Customers decide how much information and time they need to make decisions How much information is enough depends on importance of decision, effort required, past experience, risk involved, and time available I saw an ad in Vogue, my top 3 choices are, I heard it was a great movie, I love eating samples, I have always done it that way

User

Performance value Consumer

Why agencies lose clients

Poor performance or service, poor communication, unrealistic demands by the client, personality conflicts, personnel changes, changes in the size of the client or agency, conflicts of interest, changes in the client's corporate and/or marketing strategy, declining sales, conflicting compensation policies, changes in policies, disagreements over marketing and/or creative strategy, lack of integrated marketing capabilities

Brand loyalty

Preference by a customer for a particular brand that results in continual purchase of it Gaining and maintaining is not easy

Information processing model (basics)

Presentation -> attention -> comprehension -> yielding -> retention -> behavior Cognitive (presentation, attention, comprehension) -> affective (yielding, retention) -> behavioral (behavior)

Payer

Price value

Refers to what the consumer must give up to purchase a product or service

Price variable

Primary- versus selective demand advertising

Primary demand is designed to stimulate demand for the general product class or entire industry and is used when a brand dominates the market and will benefit from overall growth; can help a new product gain market acceptance Selective demand focuses on creating demand for a specific company's brands

Keeping in-house

Pro: lower costs, more control Cons: less creative (working with same company gets boring), slow to react

Consumer-decision making process

Problem recognition (motivation) Information search (perception) Alternative evaluation (attitude forms) Purchase decision (integration) Post evaluation (learning) ... Lets you know to influence purchase Interpersonal determinants: cultural, social, and family influences Personal determinants: needs and motives, perceptions, attitudes, learning, self-concept Consumers do not always engage in all 5 steps or proceed in this sequence Cognitive orientation viewing the consumer as a problem solver and information processor who engages in a variety of mental processes to evaluate various alternatives and determines the degree to which they might satisfy needs or purchase motives

B2B decision making

Process driven and focused on TCO (total cost of ownership; includes maintenance) A lot of people are involved in the process Scheduled requirements: equipment maintenance, new product launch, financial reporting, more customer orders Unscheduled requirements, corporate initiative, supplier bankruptcy, issue with product quality Compatibility with installed base Legal requirements: long-term contracts, quality certifications (i.e. FDA-certified) Proposal process: RFP (request for proposal), diverse suppliers (i.e. small business, woman-owned) Legal requirements: service levels (i.e. on-time delivery), insurance/indemnification

Always "Like A Girl" Campaign

Procter & Gamble's (P&G) Always has been one of the world's leading brands of feminine hygiene and protection products for nearly three decades The marketing communications for Always focused on performance attributes whereas many of its competitors had moved on and were communicating with women and young girls in particular, in a more emotional way The Always brand team asked its agency, Leo Burnett, to create a campaign that leveraged the brand's legacy of supporting girls as they make the transition from puberty to young women Research conducted for the campaign showed that more than half of women surveyed indicated that they experienced a decline in confidence at puberty, which is the time when young girls first come into contact with Always, as well as competing brands Empowering girls during this critical time of their lives when confidence was low was seen as an opportunity to reinforce the relevance of Always and help position it as a brand that understands the social issues and challenges girls face at puberty The cornerstone of the campaign was a three-minute video showing how people of all ages interpret the phrase "like a girl" and the negative impact it has on society and young girls in particular The goal was to empower women by showing that "like a girl" should be a meaningful and powerful statement all women should embrace The airing of the Always commercial was the first time a feminine care product was advertised during the Super Bowl, and proved to be another astute decision

Brand attitudes are composed of

Product and message thoughts; source-related thoughts

Marketing mix

Product, price, place (distribution), promotion Basic task of marketing is to combine these four elements into a marketing program to facilitate the potential for exchange with consumers in the marketplace The controllable elements of a marketing program

3 basic cognitive response categories

Product/message thoughts Source-oriented thoughts Ad execution thoughts

Mobile marketing

Promotional activity designed for delivery to cell phones, smartphones, tablets, and other handheld devices including apps, messaging, commerce, and customer relationship management

Fee based method of compensation

Pros: easy to budget Cons: difficult to determine most appropriate fee Fee arrangements make up 2/3 of agency compensation Agency must carefully assess its costs of serving the client for the specific period, or for the project, plus its desired profit margin Should specify exactly what services the agency is expected to perform for the client

Un-bundle services (outsource to agency)

Pros: hire the best Cons: admin costs, mixed messages

Holding company

Pros: integration, ocean of resources, specialists, stability, clout Cons: slower, could get lost in an ocean, instability, too big to manage

Performance based method of compensation

Pros: more agency accountability Cons: often difficult to measure

Consolidate services (outsource to agency)

Pros: one-stop shop, quick response, global reach Cons: expensive, conflict interest

Commission based (% of media spend) method of compensation

Pros: paying for transaction, not creativity Cons: potential conflict of interest

Independent firm

Pros: specialized, agile, good fit, importance, best in class Cons: conflict of interest, instability, lack of depth, experience (focus on one area), talent (goes to best)

Psychosocial consequences

Purchase decision consequences that are intangible, subjective, and personal I.e. how a product makes you feel or how you think others will view you for purchasing or using it

Motivation research

Qualitative research designed to probe the consumer's subconscious and discover deeply rooted motives for purchasing a product Researchers use in-depth interviews, projective techniques, association tests, and focus groups to probe the mind of the consumer The qualitative nature of the research is considered important in assessing how and why consumers buy Focus groups and in-depth interviews are valuable methods for gaining insights into consumers' feelings, and projective techniques are often the only way to get around stereotypical or socially desirable responses

Marketing objectives

Refer to what is to be accomplished by the overall marketing program; stated in terms of sales, market share, or profitability

How agencies gain clients

Referrals, solicitations, presentations, public relations, and image and reputation Ad agency review consultants specialize in helping clients choose ad agencies

Reinforcement (and schedules)

Reinforcement: the rewards or favorable consequences associated with a particular response; strengthens the bond between a stimulus and a response Schedules of reinforcement: schedules by which a behavioral response is rewarded - Different schedules result in varying patterns of learning and behavior - Learning occurs most rapidly under a continuous reinforcement schedule, in which every response is rewarded -- but the behavior is likely to cease when the reinforcement stops - Learning occurs more slowly but lasts longer when a partial or intermittent reinforcement schedule is used and only some of the individual's responses are rewarded I.e. promotional programs

Social class

Relatively homogeneous divisions of society into which people are grouped based on similar lifestyles, values, norms, interests, and behaviors May be based on occupational status, educational attainment, and income Consumers within each social stratum often have similar values, lifestyles, and buying behavior; provide basis for market segmentation

The ______ process the receiver goes through may be the most important aspect of developing effective integrated marketing communications programs

Response

Creative services department (agency)

Responsible for the creation and execution of advertisements Copywriter Art department: responsible for how ads look - For print ads, layouts are prepared, which are drawings that show what the ad will look like and from which the final artwork will be produced - For TV commercials, the layout is known as a storyboard, a sequence of frames or panels that depict the commercial in still form Develop ads that will communicate the key points determined to be the basis of the creative strategy Writers and artists generally work under the direction of the agency's creative director, who oversees all the advertising produced The director sets the creative philosophy of the department and may even become directly involved in creating ads for the agency's largest clients Once the copy, layout, illustrations, and mechanical specifications have been completed and approved, the ad is turned over to the production department Most agencies do not actually produce finished ads; they hire printers, photographers, directors, etc. to complete the finished product Creating an advertisement often involves many people and takes several months A traffic department coordinates all phases of production to see that the ads are completed on time and that all deadlines for submitting the ads to the media are met - May be located in the creative services area of the agency, or be part of the media or account management, or be separate

IMC flowchart

Review of marketing plan Promotional program situation analysis Analysis of the communication process Budget determination Develop integrated marketing communication programs, objectives, and strategies (advertising, personal selling, sales promotion, direct marketing, PR/publicity, internet/interactive) Integrate and implement marketing communications strategies Monitor, evaluate, and control IMC program

The starting point of IMC

Segmentation Targeting Positioning: Product, Place, Promotion, and Price

Socioeconomic segmentation

Segmentation variables include income, education, and occupation

Buyer

Service value Convenience, customer service

Celebrities as sources

Similarity: consumer feels empathy with the source Familiarity: consumer easily recognize (stopping power) Likability: celebrities show up in 15% of US ads; higher in India (24%) and Taiwan (45%) We want to internalize what they're saying and be like them Attractive Challenges: overshadowing product, overexposure, audience receptivity (believable?), risk to advertiser (do I like this celeb?)

Heuristics

Simplified or basic decision rules that can be used by a consumer to make a purchase choice I.e. for familiar products that are purchased frequently, consumers may use price-based heuristics (such as buy the cheapest brand) or promotion-based heuristics (choose the brand for which I can get a price reduction through a coupon, rebate, or special deal) I.e. affect referral decision rule

Ways the agency world has evolved

Small independent shops Consolidation to large agencies Emergence of specialized agencies (solely media, solely creative) Consolidation to holding companies Proliferation of more specialized companies More independent shops

Subcultures

Smaller groups within a culture that possess similar beliefs, values, norms, and patterns of behavior that differentiate them from the larger cultural mainstream May be based on age, geographic, religious, racial, and/or ethnic differences I.e. African Americans, Hispanics, Asians, older adults, teens, etc.

Hidden Brain (podcast)

Soft spot for products we enjoyed in our childhood; nostalgic allowance Ester's parents let her have Lucky Charms for breakfast (even though she couldn't have other sugary cereals) because they had them growing up Children are vulnerable to fun, musical commercials because they are not skeptical Vulnerability ends around 13 (now understand a commercial is an advertisement) People who grew up with Cocoa Puffs rated it as much more nutritious as an adult Adults don't correct their childhood memories; even when made aware, adults ignore Explains why parents love taking kids to Disney and giving them their old toys In 2016, Chile banned mascots from all product packaging and launched a media campaign to educate people on healthier foods Schools strapped for cash may get it in the form of ads (one district agreed letting ads be plastered around) Companies have found ways to get our attention (i.e. athlete promoting on IG) In 1835, New York Sun captured market share by selling only for a penny (compared to 6 cents) and ran on human attention (i.e. moon bats hoax) Human attention can get people to buy people things they don't even need; engineer demand that might not even exist (i.e. mouthwash popularized by ads showing disease) "Torches of freedom" and linking cigarettes to weight loss helped females adopt smoking in 1920s Radio brought people together and gathered attention Peak attention with Elvis on the Ed Sullivan Show (TV - everyone watching same thing) Home becomes opportunity to capture enormous mindspace with radio/TV By the late 1950s, people recoiling on amount of ads they see and remote control introduced as an "ad killer" Live sports still similar in that people don't change channel; MTV in the 90s Attention merchants draw you in and then sell your attention to advertisers You no longer have to be a Fortune 500 company to be an attention merchant Attention online translates to money

Motive

Something that compels or drives a consumer to take a particular action

Competitive advantage

Something unique or special that a firm does or possesses that provides an advantage over its competitors

Verbal vs. visual (nonverbal) messages

Sometimes the visual portion reduces an ad's persuasiveness because the processing stimulated by the picture may be less controlled Advertisers design ads where the visual image supports the verbal appeal; sometimes ads are designed in which the visual portion contradicts the verbal information to grab consumers' attention and get them to engage in more effortful processing

Attitude to advertisement is composed of

Source-related thoughts and ad execution thoughts

Model of communication process

Source/sender -> encoding -> channel message -> decoding -> receiver Begins when the source selects words, symbols, pictures, and the like to represent the message that will be delivered to the receiver(s)

Comparative appeals

Strong recall, but attitudes and purchase intentions no better than other appeals Good approach for newer brands and challenger brands

From TV to Web: Content Strategies for Ads that Drive Online Sales (reading)

TV advertising remains a powerful force for generating attention and sales, even with media multitasking If done right, TV commercials can create a sense of immediacy that actually compels consumers to go online and buy products and services they saw on television first Companies should take advantage of lean advertising principles and adopt a sequential approach to capture customer attention, also known as the "ladder of engagement" - Strategy for harnessing the potential of multitasking by creating threads of communication, aka "ladder of engagement," and thereby delivering the story of your product or service in small chapters - 15-second TV spot -> online ads (users engage 30 secs) -> website (60-90 secs) Action-focused: specifically ask you to do something (i.e. go online or try now); online contact information provided; goal is to take action; most effective ad type for immediately generating both website traffic and sales; generally not so effective for brand-building Information-focused: enters on the characteristics, features and benefits of the product or service, not the consumer; usually mentions price and channel; "rational argument" approach; requires undivided attention Emotion-focused: seek to trigger an emotional reaction, rather than a rational reason to buy the product or service; techniques may try to be clever and funny; don't correspond with increased web traffic and sales (like imagery-focused) and experience reduced direct website traffic after air; among those who do go online, they are now much more likely to make a purchase because they feel an emotional connection to the brand values Imagery-focused: strong visuals/sound; feature various people, colors and music; vibrant and fast-paced; try to grab attention through intense sensory stimulation; can be effective for brand-building; doesn't seem to provide any clear cross-media advantages either for boosting website traffic or online sales Attention-Contingent Advertising Strategy (ACAS): key principle is that brand managers should adapt their marketing messages (i.e. ad type) to the intensity and duration of the attention that is contingently available to them, from their target customers Lean advertising: getting 80 percent of the benefits of traditional advertising through new media, at only 20 percent of the cost

Consumer-oriented sales promotion

Targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials Encourage consumers to make an immediate purchase and thus can stimulate short-term sales

Trade-oriented sales promotion

Targeted toward marketing intermediaries such as wholesalers, distributors, and retailers Promotional and merchandising allowances, price deals, sales contests, and trade shows; used to encourage the trade to stock and promote a company's products

IMC emerged and momentum continue due to what 3 factors?

Technology, customer needs, and economics Customers: empowered by information (Internet); changes in media consumption behavior (SocialMobileLocal) Technology: fragmentation of media markets, growth of database marketing, streamlined distribution systems Agency: industry consolidation (economies of scale); productivity crisis in marketing Client: shift in power from manufacturers to retailers; shift of money away from media advertising; customers are demanding better results

New, Newer, Newest: Evolving Stages of IMC (reading)

The IMC concept grew from the new data capabilities made possible by the digital revolution; agencies and marketing professionals began to realize how a customer-centric approach could effectively reach target audiences, and it soon became apparent that the old model no longer worked in this new world Shift of traditional mass media advertising funds to what has been called "below-the-line," that is, to the more short-term, directly measurable forms (i.e. discounts, contests) IMC is a concept of marketing communications that recognizes the added value in a program that integrates a variety of strategic disciplines, i.e., general advertising, direct response, sales promotion, and public relations - and combines these disciplines to provide clarity, consistency, and maximum communication impact What made IMC "new" during these first half dozen years was that it was a holistic view of marketing communication Historically, marketing communications had been viewed/taught as a set of functional specialties (marketing, advertising, PR, direct marketing, events, etc.) If the communication activities of a marketing organization are aligned and integrated, the single/consistent message to consumers enhances the value to all Expresses the total view of how consumers must be integrated into the overall communication system employed by the marketer and . his or her associates 5-step IMC process: customer identification from behavioral data -> valuation of customers/prospects -> creating and delivering messages and incentives -> estimating return-on-customer-investment -> budgeting, allocation, evaluation, and recycling Three shifts occurred in the mid-1980s to thrust IMC to the fore:

Subliminal perception

The ability of an individual to perceive a stimulus below the level of conscious awareness; controversial method

Viral marketing and the 3 factors it's affected by

The act of propagating marketing-relevant messages through the help and cooperation of individual consumers (i.e. "Like A Girl" and "Crash the Super Bowl") Message characteristics: relate to the content and creative design of a viral message and include factors such as whether the information is entertaining, engaging, novel, humorous, and/or informative (i.e. commercials featuring animals are often popular) Receiver characteristics: demographics, personality traits, and motivation for sharing content and messages as well as receiving them impact the effectiveness of viral campaigns (i.e. young female consumers tend to be more susceptible to viral influences); psychological response (how the content makes you feel) and social motivation (why you want to share it) - Motivations for social sharing include opinion seeking, shared passion, conversation starting, social utility, self-expression, social in real life, social good, zeitgeist, authority, and cool hunting Social network characteristics: structure through which a message spreads can influence diffusion; marketers often target influencers

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging, offers that have value for customers, clients, partners, and society at large Today, most marketers focus on developing and sustaining relationships with customers (not just a one-time exchange or transaction)

Chapter 3 takeaways

The advertising industry continues to integrate globally and across functions - Marketers: "Am I going to leverage the global scale of the network of firms, or will I manage it myself?" It is a tough business; margins keep shrinking because of the economic downturn and relentless competition - Continuous tension within agencies between the "creatives" to win more business, and the "suits" to ensure that business is profitable-- - What opportunity does that create for people coming out of business school?

Billings

The amount of client money agencies spend on media purchases and other equivalent activities; often used as a way of measuring the size of advertising agencies Nearly ⅔ are handled by the top 500 agencies

Positioning

The art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition The process by which marketers try to create an image or identity in the minds of their target market for their products, brands, or organizations Developing a brand's positioning is a strategic exercise and often the holy grail of marketing Brand positioning defines what you want customers to think of when they think of you - it's an impression that associates specific attributes with your brand that distinguishes you in the marketplace What people say about you when you're not around The goal is to identify competitive "white spaces" and determine whether they could be occupied Perceptual maps are a tool to view competitive landscape to find white spaces of opportunity Provides all the marketing elements, but a slogan could be useful Slogan approaches include: attribute/benefit (Eat Fresh), price/quality, use or application, product class (can't believe it's not butter), product user, competitor, cultural symbol, repositioning Reverse positioning: doing the opposite of what competitors are doing (IKEA is fun, hip, and smart; JetBlue withholds select cities/meals in exchange for leather chairs, high end entertainment; Target withholds service, merchandising, high prices to add unexpected aesthetics, exclusive designers, strong product assortment) Focuses on either the consumer or the competition The image of the product and/or brand relative to competing products or brands Communication occurs through the message itself as well as the media strategy employed to reach the target group Does it differentiate you from competition? Can you own it? Is it focused on your main target market? Does it enable growth? Does it present a unique value to your customer? Is your brand promise credible and realistic? Is it consistent in all areas of your business? Can it withstand counterattacks from your competitors?

Promotional mix

The basic tools used to accomplish an organization's communication objectives Advertising and support media: print/TV ads, radio ads, packaging, magazines, brochures, product placements, directories, billboards, pop displays, logos, posters Direct marketing: infomercials, mail-in cards, brochures, 1-800, print ads, direct mail, catalogs, videos Internet/interactive/online: websites, blogs, banner ads, search, social media, location-based ads, referral sales. social gaming Sales promotion: contests, sweepstakes, lotteries, premiums, gifts, demonstrations, coupons, samples, rebates, loyalty programs. tie-ins, events, allowances, trade shows PR/publicity: press kits, speeches, seminars, conferences, annual reports, charitable donations, blogs, films, videos, community activities, sponsorships, word of mouth Personal selling: sales presentations/meetings, telemarketing, samples, trade shows. exhibits, incentive programs

Brand essence results from

The building up of functional attributives and emotional benefits Brand essence encapsulates the soul of the brand, its DNA, in one phrase or sentence Product attributes, functional benefits, consumer need, emotional benefits

Repoositioning

The changing of a product or brand's positioning Usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions

Culture

The complexity of learned meanings, values, norms, and customs shared by members of a society The broadest and most abstract external factor that influences consumer behavior; becoming increasingly important as marketers expand internationally Cultural norms and values offer direction and guidance Marketers must be aware of changes that may be occurring in a particular culture and the implications of these changes; must understand the cultural context in which consumer purchase decisions are made

Promotion

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

Value

The customer's perception of all the benefits of a product or service weighed against all the costs of acquiring and consuming it Benefits can be functional (performance of product), experiential (what it feels like to use the product), and/or psychological (feelings such as self-esteem or status that result from owning the product) Costs include the money paid as well as other factors such as acquiring information about the product/service, learning how to use it, maintaining the product, and disposing of it Successful companies recognize that creating, communicating, and delivering value to their customers is extremely important

Evaluative critetria

The dimensions or attributes of a product or service that are used to compare different alternatives Can be objective (price, warranty, fuel economy) or subjective (image, styling) Usually viewed as product or service attributes Many marketers view their products or services as bundles of attributes, but consumers tend to think about products or services in terms of their consequences or outcomes instead

Field of experience

The experiences, perceptions, attitudes, and values that senders and receivers of a message bring to a communication situation

Credibility

The extent to which a source is perceived as having knowledge, skill, or experience relevant to a communication topic and can be trusted to give an unbiased opinion or present objective information on the issue 2 dimensions: expertise and trustworthiness (honest, ethical, believable) Expertise is conveyed through sales personnel (who are trained and come from specialized background), knowledgeable spokespeople, endorsements, etc. The target audience must also find the source believable, which often creates difficulties when choosing a celebrity; may use hidden cameras and overheard-conversation techniques to enhance trustworthiness - Some American celebrities protect their image by endorsing products in Japan and other countries rather than in the US (though this is changing)

Problem recognition

The first stage in the consumer decision-making process in which the consumer perceives a need and becomes motivated to satisfy it (solve the problem) Caused by a difference between the consumer's ideal state and actual state - A discrepancy exists between what the consumer wants the situation to look like and what the situation is really like Out of stock: simple and routine purchase decision that is often resolved by choosing a familiar brand or one to which the customer feels loyal Dissatisfaction: consumer may be unhappy with the current state of affairs and/or the product or service being used (i.e. think boots are out of style or no longer comfortable) New needs/wants: changes in consumers' lives often result in new needs and wants (i.e. graduate and get a job -> need to change wardrobe) - Want: a felt need shaped by a person's knowledge, culture, and personality; a desire for something one does not have Related products/purchases: i.e. the purchase of a new iPhone -> recognition of a need for accessories (apps, charger, etc.) Marketer-induced problem recognition: marketers' actions that encourage consumers not to be content with their current state or situation; i.e. ads for hygiene products such as mouthwash create insecurities that consumers can resolve through usage - Marketers take advantage of consumers' tendency toward novelty-seeking behavior, which leads them to try different brands New products: innovative products may be introduced and brought to the attention of consumers

Sensation

The immediate and direct response of the senses (taste, smell, sight, touch, and hearing) to a stimulus such as an advertisement, package, brand name, or point-of-purchase display Perception uses senses to create a representation of the stimulus

Account planner

The individual who gathers information that is relevant to a client's product or service and can be used in the development of the creative strategy as well as other aspects of an IMC campaign Collect information that can be helpful in gaining a better understanding of the client's target audience and the best ways to communicate with them Gather information about consumers as well as developments in the marketplace that can be used to prepare the creative brief, which is a document that the agency's creative department uses to guide the development of advertising ideas and concepts May help assess consumers' reactions to the advertising Provides more consumer insight and how to use advertising to communicate with consumers Has become more demanding as the number of marketing communication channels and ways of contacting consumers increases

Account executive

The individual who serves as the liaison between the advertising agency and the client Responsible for managing all of the services the agency provides to the client and representing the agency's point of view to the client Must understand the advertiser's marketing and promotions needs and interpret them to agency personnel Coordinates agency efforts in planning, creating, and producing ads Presents agency recommendations and obtains client approval Must know a great deal about the client's business and be able to communicate this to specialists in the agency working on the account

Brand equity (and what it results from)

The intangible asset of added value or goodwill that results from the favorable image, impressions or differentiation, and/or the strength of consumer attachment of a company name, brand name, or trademark Allows a brand to earn greater sales volume and/or higher margins than it could without the name, providing the company with a competitive advantage Results from differentiation Commodity + differentiators = brand Differentiators include features, performance, style, support, service, distribution, financing, quality, size, customization, delivery, warranty

Advantages of advertising agency

The main reason outside agencies are used is that they provide the client with the services of highly skilled individuals who are specialists in their chosen fields (i.e. artists, writers, media analysts, researchers, etc.) An outside agency can also provide an objective viewpoint of the market and its business that is not subject to internal company policies, biases, or other limitations Can draw on experience

Percentage charges

The markups charged by advertising agencies for services provided to clients Markups usually range from 17.65-20% and are added to the client's overall bill

Product symbolism

The meaning that a product or brand has to consumers (and what they experience in purchasing and using it) I.e. Versace, Gucci, and Prada may be purchased for their symbolic meaning and image A product is more than just a physical object; it is a bundle of benefits or values that satisfies the needs of consumers

Channel

The method or medium by which communication travels from a source to a receiver

Clutter

The nonprogram material that appears in a broadcast environment, including commercials, promotional messages for shows, public service announcements, and the like; the amount of advertising in a medium Levels are increasing as lower ratings encourage more time alloted to commercials

Chapter 5 takeaways

The number of media have exploded, but communication basics are the same - Consumers use their head, hands, and heart to buy - Think through what you want your customers to learn, feel, do Learning response hierarchies helps describe customer's persuasion process when putting together a marketing message and pitching for a marketing campaign People are persuaded differently; tailor the source, message, and channel to match how the consumer will best receive the message: level of involvement, cognitive responses, attitudes to brand/ad

Chapter 6 takeaways

The number of media have exploded, but communication basics are the same Be deliberate with source, message, and channel - Poorly thought-out plans are expensive and inauthentic Adapt the message and appeal to match the channel - A source might look/feel different in print, radio, online - Understand where consumers are spending their times and why they are there

Group system

The organization of an agency by dividing it into groups consisting of specialists from various departments such as creative, media, marketing services, and other areas; individuals from these groups work together to service particular accounts Each group is headed by an account executive or superior and has one or more media people including media planners and buyers; a creative team (including art directors, production personnel, etc.); and one or more account executives The size and composition of the group may vary depending on the client's billings and the importance of the account to the agency Employees become very knowledgeable about the client's business and there is continuity in servicing the account

Departmental system

The organization of and advertising agency into departments based on functions such as account services, creative, media, marketing services, and administration Each function is set up as a separate department and is called on as needed to perform its specialty and serve all of the agency's clients Gives employees the opportunity to develop expertise in servicing a variety of accounts I.e. ad layout, writing and production are done by the creative department; accounting services handles client contact

Advertisers (clients)

The organizations with the products, services, or clients to be marketed and for which advertising agencies and other marketing promotional firms provide services They provide the funds that pay for the IMC program Assume major responsibility for developing the marketing plan and making the final decisions regarding the advertising and promotional program that will support it

Communication

The passing of information, exchange of ideas, or process of establishing shared meaning between a sender a receiver There must be some common thinking between two parties and information must be passed from one person to another Success depends on such factors as the nature of the message, the audience's interpretation of it, and the environment in which it is received; the receiver's perception of the source and the medium used to transmit the message also affect the ability to communicate Is getting tougher all the time as we become faced with more choices (paradox of choice) Words, pictures, sounds, and colors may have different meanings to different audiences, and people's perceptions and interpretations of them vary

Communications

The passing of information, the exchange of ideas or the process of establishing a commonness or oneness of thought between the sender and receiver A source gives the message through a channel to a receiver Having your meaning understood Message, source, packaging, channel, price all communicate I.e. Harley Owners Group (Hogs), Jay Leno, baby clothes, product, tattoo communicate the Harley Davidson brand

Selective perception

The perceptual process involving the filtering or screening of exposure, attention, comprehension, and retention

Selective comprehension

The perceptual process whereby consumers interpret information based on their own attitudes, beliefs, motives, and experiences Individuals often interpret information in a manner that supports their own position

Selective retention

The perceptual process whereby consumers remember some information but not all Advertisers attempt to make sure information will be retained in the consumer's memory so that it will be available when it is time to make a purchase

Receiver

The person or persons with whom the sender of a message shares thoughts or information The consumers in the target market or audience who read, hear, and/or see the marketer's message and decode it Individual, group, segment, mass audience

External analysis

The phase of the promotional process that focuses on factors such as characteristics of the firm's customers, market segments, positioning strategies, and competitors

Strategic marketing plan

The planning framework for specific marketing activities Needed for any organization that wants to successfully exchange its products or services in the marketplace Usually evolves from an organization's overall corporate strategy and services as a guide for specific marketing programs and policies Marketing strategy is based on a situation analysis: a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands From this, a firm develops an understanding of the market, the competition, and the market segments it wishes to pursue

Qualitative media effect

The positive or negative influence the media may contribute to the message (i.e. a high-quality men's clothing line might have more of an impact in GQ than in Sports Afield)

Source power

The power of a source as a result of his or her ability to administer rewards and/or punishments to the receiver The source must be perceived as being able to administer positive or negative sanctions to the receiver (perceived control) and the receiver must think the source cares about whether or not the receiver conforms (perceived concern); the receiver's estimate of the source's ability to observe conformity is also important (perceived scrutiny) Power as a source characteristic is difficult to apply in a nonpersonal influence situation such as advertising; likely need to use an authoritative person

Comparative advertising

The practice of either directly or indirectly naming one or more competitors in an advertising message and usually making a comparison on one or more specific attributes or characteristics Useful for new brands (or brands with a small market share) to position themselves directly against more established ones; initially resulted in greater attention (due to novelty); work better with a younger audience Negative political ads are becoming more common than positive as they are more memorable, attract more attention from the media, and are more successful (as voters tend to weight negative information more heavily than positive when forming impressions of political candidates)

Purchase intention

The predisposition to buy a certain brand or product Generally based on a matching of purchase motives with attributes or characteristics of brands under consideration

Consumer behavior

The process and activities that people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires Marketers' success in influencing purchase behavior depends in large part on how well they understand consumer behavior Marketers need to know the specific needs customers are attempting to satisfy and how they translate into purchase criteria; how consumers gather information and use it to select among competing brands; and how the consumer decision process and reasons for purchase vary among different types of customers

Internal search

The process by which a consumer acquires information by accessing past experiences or knowledge stored in memory (regarding various purchase alternatives); an initial search effort Personal experience For many routine, repetitive purchases, previously acquired information that is stored in memory is sufficient for comparing alternatives and making a choice

Internalization

The process by which a credible source influences a message recipient; occurs when the receiver is motivated to have an objectively correct position on an issue and the receiver will adopt the opinion or attitude of the credible communicator if he or she believes the information from this source represents an accurate position on the issue Once the receiver internalizes an opinion or attitude, it becomes integrated into his or her belief system and may be maintained even after the source of the message is forgotten

Decoding

The process by which a message recipient transforms and interprets a message Heavily influenced by the receiver's frame of reference or field of experience For effective communication to occur, the message decoding process of the receiver must match the encoding of the sender Effective communication is more likely when there is some common ground between the sender and receiver The more knowledge the sender has about the receivers, the better the sender can understand their needs, empathize with them, and communicate effectively Marketing and advertising people often have very different fields of experience from the consumers who constitute the mass markets with whom they must communicate, and potential age differences between the two make things complicated

Identification

The process by which an attractive source influences a message recipient; occurs when the receiver is motivated to seek some type of relationship with the source and adopt a similar position in terms of beliefs, attitudes, preferences, or behavior Dependent upon the source's continued support for the position as well as the receiver's continued identification with the source Does not usually integrate information from an attractive source into the receiver's belief system

Perception

The process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world Processes include how consumers sense external information, select and attend to various sources of information, and how this information is interpreted and given meaning An individual process depending on individual factors such as beliefs, experiences, moods, needs, and expectations Influenced by the characteristics of a stimulus (i.e. size, color, intensity) and the context in which it is seen or heard Involves three distinct processes: sensation, selecting information (internal psychological factors influence), and interpreting the information (internalized)

Consumer learning

The process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior

Seeding

The process of identifying and choosing the initial group of consumers who will be used to start the diffusion or spreading of a message Companies that utilize viral marketing must develop a seeding strategy which involves determining how many initial consumers or "seeds" are needed and selecting the right consumers to start the viral process

Target marketing

The process of identifying the specific needs of segments, selecting one or more of these segments as a target, and developing marketing programs directed to each

Encoding

The process of putting thoughts, ideas, or information into a symbolic form The sender's goal is to encode the message in such a way that it will be understood by the receiver (by using familiar words, signs, or symbols)

Shaping

The reinforcement of successive acts that lead to a desired behavior pattern or response; used as part of the introductory program for new products

External search

The search process whereby consumers seek and acquire information from outside sources such as advertising, other people, or public sources; can also be by you testing product Used if an internal search does not yield enough information Marketer controlled (advertising, point-of-purchase, website, commercial, packaging, displays, salespeople) Personal contacts (word of mouth, referrals, friends, family) Public sources (magazines, newspapers, Internet. TV reports)

Source

The sender (person, group, or organization) of the message Has information to share with another person or group of people Might be a spokesperson or celebrity Marketers must be careful to select a communicator the receiver believes is knowledgeable and trustworthy or with whom the receiver can identify or relate in some manner

Source

The sender (person, group, or organization) of the message; the person involved in communicating a marketing message, either directly or indirectly (some ads use neither a direct nor indirect source but rather the organization itself) Personal sources may be the most influential factor in a purchase decision Direct source: spokesperson who delivers a message and/or endorses a product or service Indirect source: doesn't actually deliver a message but draws attention to and/or enhances the appearance of the ad (i.e. an unknown person, model) Marketers try to select individuals whose traits will maximize message influence Basic attributes include credibility, attractiveness, and power

Marketing channel

The set of interdependent organizations involved in the process of making a product or service available to customers

Response

The set of reactions the receiver has after seeing, hearing, or reading a message Can range from nonobservable actions such as storing information in memory to immediate action such as clicking through an online ad to go to a marketer's landing page or website or dialing a toll-free number to order a product

Recency effect

The theory that arguments presented at the end of the message are considered to be stronger and therefore are more likely to be remembered When the target audience is predisposed toward the communicator's position or is highly interested in the issue or product, strong arguments can be saved for the end of the message

Buzz (user-generated or viral) marketing

The use of various activities that generate conversations and word-of-mouth communication about a particular topic such as a company, brand, or marketing activity Creates personal communication

Integration process

The way information such as product knowledge, meanings, and beliefs is combined to evaluate two or more alternatives Analysis of the integration process focus on different types of decision rules or strategies consumers use to decide among purchase alternatives

Behavioral learning

Theories emphasize the role of external, environmental stimuli in causing behavior; they minimize the significance of internal psychological processes Based on the stimulus-response orientation (S-R), the premise that learning occurs at the result of responses to external stimuli in the environment Learning occurs through the connection between a stimulus and a response

Chapter 1 takeaways

There are more marketing tools than ever, but it takes more work to match the message with customer at the right time The majority of ad spending is traditional (TV, print, radio, direct mail, catalogs), so you better understand it Online advertising is less than 30%, but it is growing incredibly fast; you better understand it too Online has strong measurement; it raises the bar for other advertising media and marketers Every marketer (no matter how specific the job description) needs to think more strategically: what does the consumer really want/need, how to communicate efficiently to the consumer, how to use promotion elements to reinforce the message Brand development in the future will rely on increased integration across media platforms and channels In the past, brand images that were built through reach and frequency; tomorrow's successful brands will have to find ways to get the customer to invite the brand into his or her life The impact of social media and the variety of online communications tools will change the face of IMC; there will be less of a need to "bucketize" the various elements but more of a need to ensure integration along key brand meaning elements across vehicles

When involvement is high, what effect do celebrity endorsers have on brand attitudes?

They are usually extraneous and don't make an impact

Marketers don't want ad agency "partners" / clients have higher expectations

They want ideas, results, and creative solutions to business challenges Clients have the freedom to shop for services High expectations due to separation of creative from planning, increase of client in-house capability, improved database marketing (client knows customers better than agency), popularity of creative boutiques

Cognitive responses

Thoughts that occur to a message recipient while reading, viewing, and/or hearing a communication Measured by having consumers write down or verbally report their reactions to a message Thought to determine the types of responses evoked by an advertising message and how these responses relate to attitudes toward the ad, brand attitudes, and purchase intentions Exposure to ad -> cognitive responses (product/message, source-oriented, and ad execution thoughts) -> attitudes (brand attitudes and attitude toward the ad) -> purchase intention

Exchange

Trade something of value between two parties such as product or service for money; the core phenomenon or domain for marketing For exchange to occur there must be two or more parties with something of value to one another, a desire ability to give up that something to the other party, and a way to communicate with each other Advertising and promotion play an important role in the exchange process by informing customers of an organization's product or service and convincing them of its ability to satisfy their needs or wants Former marketing definitions was to create satisfying exchanges

The chosen channel can impact the meaning and effectiveness of the message

Trade-off between efficiency and effectiveness (cost per thousand or CPM vs. conversion rate or yield) Tempo of message: self-paced vs. external - I can read at my own pace (magazine, Internet) - TV is now a self-paced medium (TiVo) Context of the message: medium - Co-branding: medium and message Clutter: too many ads (TV: 15/60 mins; radio: 10-12/60)

Criticisms of traditional response hierarchies

Traditional response hierarchies assume that you learn -> feel -> do in that specific order But if you hate spiders and you see one sitting on your car, are you really going through that methodical process? If you love chocolate and you see a bowl full of them, are you really going to learn/feel/do?

Touch points by high-low impact order

Unexpected, customer-initiated, intrinsic, planned or company-created Also in order of least to most ability to control

Dove (case)

Unilever: leading global manufacturer of consumer goods In February 2000 Unilever embarked on a five-year strategic initiative called "Path to Growth," which would winnow its more than 1,600 brands down to 400; among the surviving brands, a small number would be selected as "Masterbrands," and mandated to serve as umbrella identities over a range of product forms Dove has its origins in the US, and its first product, called a beauty bar, launched in 1957; until 2000, the brand depended on claims of functional superiority backed by the product's moisturizing benefit Dove was tapped to become a Masterbrand in February 2000 A process of exploratory market research, consultation with experts, talks with women, and message testing led to "The Campaign for Real Beauty" Tick-Box campaign: billboards were erected and viewers were asked to phone in to vote on whether a woman on the billboard was "outsized" or "outstanding" Firming campaign: promoted a cream that firmed the skin and featured six "real" women cheerfully posing in plain white underwear The "Campaign for Real Beauty" filmed daughters discussing self-esteem challenges "Evolution" film showed the face of a young woman as cosmetics, hair styling, and Photoshop editing transformed it from plainness to billboard glamour In late 2006 the Dove brand builders in North America announced a contest, titled Real Ads by Real Women, to invite consumers to create their own ads for Dove Cream Oil Body Wash, a new product scheduled to be launched in early 2007 Unilever's public relations strategy was an element, together with advertising, media planning, consumer promotions, and customer marketing, in an integrated approach to marketing planning Embedded in a set of aggressive media relations benchmarks was an overarching goal: to spark a dialogue and debate about beauty that would ultimately penetrate popular culture

Top country in advertising spending

United States While traditional media and sales promotion (broadcast/print) still account for the majority of companies' marketing communications expenditures, nontraditional media is growing and is expected to continue to increase (especially true for digital-oriented advertising)

One-sided messages

Used by most advertisers

Behavioral economics and how we make decisions

We are a lot less "rational" than we think (i.e. lottery) Choices can be architected (i.e. default option on 401k) There is no logic behind store layout (i.e. end caps) Marketers don't pay attention (i.e. small font on pill bottles) Too many choices reduces purchases (i.e. indecision)

The brand promise lives between

What customers want and what the company can deliver

Evaluating advertising/communications (5 M's)

What is the objective? (Mission - source) - Is it based on brand strategy? - What is the expected outcome? - Is it likely to work? Who are you trying to reach? (Market - receiver) What is the end benefit? (Measurement - i.e. ROI) Is the message meaningful and relevant? (Message) Did you use the right communications channel? (Media - channel)

Based on the persuasion matrix, we include

What we can "control" as marketers in the communication message (independent variables): sender/source, channel, receiver Dependent variables: steps receiver goes in being persuaded (attention, comprehension, yielding, retention, behavior) Can't control response

STP analysis

Will likely be a core part of any marketing strategy and plan Segmentation: Who are consumers? How do they act? What do they want? Targeting: Largest market? Fastest growing? Most profitable? Positioning: How differentiate? Feature, benefits? Brand promise?

Message

Written, oral, or symbolic

Many agencies belong to

a few conglomerates Receive economies of scale I.e. OmniCom worth 15.3 billion; FCB Global is one of the largest global advertising agency networks

The best way to kill a ______ product is with _________ advertising

bad; good

Purchase intention

brand attitudes + attitude to advertisement

Marketers call post-purchase doubt

cognitive dissonance

The function of all elements of the IMC program is to

communicate An organization's IMC strategy is implemented through the various communications it sends to current or prospective customers as well as other relevant publics

With positive product performance, the product is more likely to be retained in the

evoked set

Satisfaction occurs when ____________ are met or exceeded

expectations

The marketing communication process really begins with

identifying the target audience Market niches: very small, well-defined groups of customers; reachable through direct mail or personal-selling efforts Market segments: broader classes of buyers who have similar needs; reachable through newspapers, magazines, TV, etc. as they get larger Mass markets: large numbers of present or potential customers; feedback is often indirect and hard to measure; mass communications do not offer the marketer an opportunity to explain or clarify the message to make it more effective

Market research is critically important, but

not always done for the right reasons Research can help you make the work better (and target better) and have an understanding of the marketplace... that said, most is basically spent on CYA (cover your a**) research to justify failure

Many companies rely on Q-scores

to choose a celebrity endorser The familiarity score indicates what percentage of people has heard of the person while the one of my favorites score is an absolute measure of the appeal or popularity of the celebrity Answer the question "How appealing is the person among those who do know him or her? Broken down on the basis of various demographic criteria such as a respondent's age, income, occupation, education, and race

Companies can reinforce purchase decisions with

toll-free numbers, follow-up letters, and advertising