AD MGMT FInal
Brochures
Sales materials printed on heavier paper and featuring color photographs, illustrations, and typography.
Pulsating
Sales throughout the entire year with sales peaks at certain seasons
Polybagging
Samples are delivered in plastic bags with the daily newspaper or a monthly magazine.
Color strip
Samples of eye shadow, blush, lipstick, and other makeup inserted into magazines.
Special events
Scheduled meetings, parties, and demonstrations aimed at creating awareness and understanding for a product or company.
Subhead
Secondary headline in advertisements that may appear above or below the headline or in the text of an ad. * are usually set in a type size smaller than the headline but larger than the body copy or text type size. They may also appear in boldface type or in a different ink color.
Target Marketing
Segmented campaigning, small mass marketing, focus on products -Technologies: individual databases, application for projects, proprietary solutions, limited analysis
Diversification Strategies
Seize on opportunities to serve new markets with new products.
Telemarketing
Selling products and services by using the telephone to contact prospective customers.
What is the goal of brand development?
Set a product apart from its competitors
Role Perceptions
Set of activities or behaviors to be performed by the salesperson. -job description is very clear, know what you're supposed to do
Cultural Factors (external)
Shared values, morals, beliefs, customs -Language -Subculture -Values
Location
Shooting away from the studio. * shooting adds realism but can also be a technical and logistical nightmare, often adding cost and many other potential problems.
Identification derived from a spokesperson in an ad?
Similarity and attractiveness
The marketing research process
Situation anal--> Informal explanitory research-Construction of research objectives-->Formal research-->Interpretation and reporting of findings S.I.C.F.I
User status
Six categories into which consumers can be placed, which reflect varying degrees of loyalties to certain brands and products. The categories are sole users, semisole users, discount users, aware nontriers, trial/rejectors, and repertoire users.
Audiovisual materials
Slides, films, CDs, and DVDs that may be used for training, sales, or public relations activities.
Media subclasses
Smaller divisions of media classes, such as radio, TV, magazines, newspapers, and so on.
societal influences
Societal divisions/classes; Reference groups; Opinion leaders
Feature article
Soft news about companies, products, or services that may be written by a PR person, the publication's staff, or a third party.
Logotype
Special design of the advertiser's name (or product name) that appears in all advertisements. Also called a signature cut, it is like a trademark because it gives the advertiser individuality and provides quick recognition at the point of purchase.
Combination rate
Special newspaper advertising rate offered for placing a given ad in (1) morning and evening editions of the same newspaper; (2) two or more newspapers owned by the same publisher; or (3) two or more newspapers affiliated in a syndicate or newspaper group.
media vehicles
Specific print or electronic medium employed in an advertising campaign.
Media units
Specific units of advertising in each type of medium, such as half-page magazine ads, 30-second spots, and so on.
For a company to benefit from the PR aspect of cause-related marketing, the company should:
Spend some $ to publicize causes, but the amount should not be significant
concept testing
Stage in product development process where a detailed description of a product (and of its attributes and benefits) is presented to prospective customers or users, to assess their attitudes and intentions toward the product. See also concept optimization.
Market segmentation
Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product's utility.
Selective distribution
Strategy of limiting the distribution of a product to select outlets in order to reduce distribution and promotion costs.
Selective distribution
Strategy of limiting the distribution of a product to select outlets in order to reduce distribution and promotion costs. Levi's sells through better department and chain stores. Burden of selling is on retailer.
Direct sales strategy
Strategy where representatives sell to customers directly at home or work rather than though a retail establishment or other intermediary.
public relations
"the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance"
Advertising response curve
Studies of this indicate that incremental response to advertising actually diminishes—rather than builds—with repeated exposure
Independent production house
Supplier company that specializes in film or video production or both.
Philanthropy
Support for a cause without any commercial incentive.
Environments
Surroundings that can affect the purchase decision
Merchandise
Synonymous with product concept when used in reference to the 5Ms of advertising testing.
Group system
System in which an as agency is divided into a number of little agencies or groups, each composed of an account supervisor, account executives, copywriters, art directors, a media director, and any other specialists required to meet the needs of the particular clients being served by the group.
Public Relations
Systematic approach to influencing attitudes, opinions, and behaviors of customers and others. -influence opinions, interests, and behaviors -through publicity (unpaid, non-personal) -news conferences, articles, PSA's -gaining product publicity and buzz (Viral mkt: tastemaker, target online communities, unexpected) -securing event sponsorships -crisis mgmt (apologize as early as you can, nothing will save you if you are abusing kids and animals, racial issues)
in the early stages of a product's life cycle, promotions should match advertising efforts designed to achieve brand awareness, create opportunities for trial purchases, and stimulate additional purchases
TRUE
What's an example of an observation method of research?
TV viewing count Reactions to product display
"Like a good neighbor, state farm is there" is an example of a:
Tagline
Interactive marketing
Targeting individuals with personalized info to engage them with the company and product
Web Analytics
Technique that is becoming invaluable to determine which consumers access a website, where they went in the site and what they did.
Effective reach
Term used to describe the quality of exposure. It measures the number or percentage of the audience who receive enough exposures for the message to truly be received.
What is "ad pretesting?"
Testing an add to determine likability and comprehension by using qualitative and quantitive techniques. Ex: What does the ad say to you? Do you like it?
Posttesting
Testing the effectiveness of an advertisement after it has been run.
Pretesting
Testing the effectiveness of an advertisement for gaps or flaws in message content before recommending it to clients, often conducted through focus groups.
Interior paragraph
Text within the body copy of an ad where the credibility and desire steps of the message are presented.
Close
That part of an advertisement or commercial that asks customers to do something and tells them how to do it—the action step in the ad's copy.
Maturity stage
That point in the product life cycle when the market has become saturated with products, the number of new customers has dwindled, and competition is most intense.
Director
The * supervises preproduction, production, and postproduction of radio and television commercials.
Internal factors affection consumer behavior
(LAMPP) Learning, Attitude, Motivation, Personality, Perception
Return on Customer Investment
(ROCI) A calculation that estimates the projected financial returns from a customer. -Useful strategic tool for deciding which customers deserve what levels of investment of various resources
when marketing professionals say a selling idea has "legs" it means it can be used in different...
(all of the above...) audiences, media, versions, over an extended period of time
Concentrated Target Marketing
(focus/niche) The target marketing approach that involves targeting a large portion of a small market.
Undifferentiated Target Marketing
(mass market) The broadcast approach to target marketing that involves offering a product or service that can be perceived as valuable to a very generalized group of consumer.
Customized Target Marketing
(one-to-one) A marketing strategy that involves directing energy and resources into establishing a learning relationship with each customer to increase the firm's customer knowledge.
Place (Distribution)
-"Invisible P" of 4P's -Customers generally don't care about this -high on competitive advantages
End-user Consumer Channels
-1 direct -Others indirect 1. Manuf. > End-user Consumer 2. Manuf. > Retailer > EUC 3. Manuf. > Wholesaler > Retailer > EUC 4. Manuf. > Agent > Retailer > EUC 5. Manuf > Agent > Wholesaler > Retailer > EUC
Focus and Production and Products
-1909 - 1923 -Ford assembly line -Production orientation: The maximization of production capacity through improvement in products and production activities without much regard for what is going on the marketplace.
Store Positioning
-1st thing for a retailer -all other decisions revolve around the positioning
In-store Experience
-3 levels of service must be considered: 1) shopping experience, 2) sales experience, 3) retailer experience
"New" Product
-6 months as new, or when compared with other products.
Appropriateness of Promotion Mix Elements
-Adv: att>int>des>act -SP: att<int<des<act -PR: att>int>des>act -PS: att<int<des<act -D&I: att<int<des>act
Parts of the promotional mix
-Advertising -Direct marketing -Personal selling -Sales promotion -Publicity/PR -Interactive media
Promotion Mix
-Advertising -Sales Promotion -Public Relations -Personal Selling -Direct and Interactive Marketing -first 3 non-personal, last 2 personal
Demographic Segmentation
-Age -Income -Generational group -Occupation -Gender -Education -Family/household -Social Class -Race and ethnicity -Geodemographic
Target Marketing
-Analyze market segments: segment size and growth potential, segment competitive forces, strategic fit of segment -Selecting a target market
Psychological Attributes (internal)
-Attitude -Perception -Learning -Personality -Motivation
Behavior Segmentation
-Benefits Sought -Usage Patterns
Physical Distribution Fuctions
-Breaking bulk -Accumulating bulk and sorting -Creating assortments -Reducing transactions -Transportation and storage
Non-store Retailing
-Catalog retailers -Direct selling -Television home shopping -Vending machines
Sources of Power
-Coercive -Reward -Expert (information, google) -Referent (nice guys, well known and respected) -Legitimate (legal, contracts)
Salesperson's Job
-Communicate (comm. the value proposition) -Sell -Build customer relationships -Information management -40 hrs = 28 hrs selling, 12 hrs non-selling
Communication
-Communication with org., chat, e-mail, phone number
Reasons for new product success/failure
-Company -Customers -Competitors (competition for shelf space) -Environment (regulations, lobbying, timing)
Organizing the Sales Force
-Company sales force v. independent agents -Economic -Control -Transaction Costs -Strategic Flexibility -Geographic Orientation -Product Orientation -Customer type or mkt org
Sources
-Company website -Government sources -Business publications -Search engines -Salespeople -Customers
Competition oriented
-Competitor based pricing (price wars, stability pricing (middle), must consider costs bc competitor costs may not be the same) -Value Pricing (focus on what you're getting, not bringing attention to price)
New MKTG Realities (Fred Wiersema)
-Competitors proliferate (hypercompetition) -All secrets are open secrets -Innovations is universal -Info overwhelms and depreciates -Easy growth makes hard times -Customers have less time than ever -customer orientation is necessary for survival
Defining Alternatives
-Complete set -Awareness set -Consideration/evokes set
Consumer Goods
-Convenience Goods -Shopping Goods -Specialty Goods -Unsought Goods
Competitive Strategy Options
-Cost Leadership -Cost Focus -Differentiation -Focus Differentitation
Set Exact Price
-Cost-plus pricing/markup on cost (manufacturers) -Markup on sales price (retailers) -Average-cost pricing (total cost/ # of units) -Target return pricing ((FC + target / # of units) + VC = selling price)
Internal Sources
-Customers sources -Customer payments -Marketing plans -Salesperson information systems -Customer inquiries
Customization
-Customization according to your needs, recommendations, personalizing
Direct Marketing Channels
-Direct Mail -Telemarketing -Catalogs
Post-purchase Assessment
-Dissonance -Use/Non-use -Disposal -Satisfaction/Dissatisfaction
Online-Electronic Commerce
-Electronic Commerce: buy, communicate with suppliers, send messages, intra and extra net -Electronic Retailing: just buying, B2B and B2C
Evaluation of Alternatives
-Emotional Choice -Attitude-based Choice -Attribute-based Choice
Service Classification
-Equipment based -People based
Legal Issues (Place)
-Exclusive Dealing -Exclusive Territories -Tying Contracts
Social Factors (external)
-Family -Social Class -Opinion Leaders -Reference Groups
Facilitating Functions
-Financing -Market research -Risk-taking -Other services
Internal Environmental Factors
-Firm structure and systems -Firm culture -Firm leadership -Firm resources
Why CRM Fails
-Flavor of the month club -Poor training -No allowances for organization change -Low level of employee buy-in -Business units silos (depts)
Store Retailers
-Food Retailers -General Merchandise Retailers
Differentition
-Form -Durability -Features -Reliability -Performance Quality -Repairability -Conformance Quality -Style
Ways to Segment
-Geographic -Demographic -Psychographic -Behavior
Commerce
-Gotta sell
Generic Business Strategies
-Growth -Concentration -Diversification -Stability -Retrenchment
Making the Sales Presentation
-Identify customer needs -Apply knowledge to customer needs -Satisfy customer needs -FAB: Features, Advantage, Benefits
Advantages of Personal Selling
-Immediate feedback to the customer -Ability to tailor the message to the customer -Enhance personal relationship between company and customer
Goals for Promotion
-Inform -Persuade -Remind
Content
-Information, should relate to the needs of customer
Types of Advertising
-Institutional advertising -Product Advertising
Characteristics of Services (4 I's)
-Intangibility (experience) -Inseperability (receive service at same time you consume the service) -Inconsistency (variability from one provider to another) -Inventory (perishability, can't store)
Distribution Intensity
-Intensive Distribution (channel is deep and wide) -Selective Distribution (few outlets w/in geographic area) -Exclusive Distribution (extreme form of selective, image products)
Information Sources
-Internal search: memory, accessed by individual -External search: independent groups, personal associations (friends, family), marketer created info (brochure, ads), experiences
Promotion Mix across PLC
-Intro: inform, PR and Adv. -Growth: persuade, some adv., sales promotion, and personal selling -Maturity: remind, direct and indirect and some promotions -Decline: direct and indirect
Personal Characteristics (internal)
-Life Cycle -Occupation -Lifestyle -Gender Roles
Connection
-Links to outside your page
Key Success Factors of Personal Selling
-Listening -Follow up -Ability to adapt sales style form situation to situation (adaptive selling) -Persistence -Good verbal comm. skills (and written) -Effective personal planning and time mgmt -Ability to interact with individuals at every level of org.
Product Market Combinations
-Market penetration -Product development -Market development -Diversification -not serving in mkt = new market -brand extension = new product
Advent of Marketing Concept
-Marketing Concept: Business philosophy that emphasizes an organization-wide customer orientation with the obj of achieving long run profits. -Find what customer wants and try to provide that -WWII - 90's -asking customers needs (basic, not features) for existing products, not necessary for entirely new products -Customer-centric
Company Perspective
-New to the world (disruptive innovation, sustaining innovations -Reposition existing products -Modifications to existing products -Additions to existing product lines -Cost reduction
Company
-Not identifying value proposition, designing a product that fails to meet customer expectations, poor mktg comm, inadequate distribution, incorrectly pricing the product -Failing to adequately capitalize the project -Competitive pressure, changes in target market, environmental conditions
Budget
-Objective Task Budgeting (set amt for obj) -Percentage of Sales -Comparative Advertising Budgeting (benchmark against competitors) -All you can afford
Logistics
-Outbound (finished goods) -Inbound (raw materials) -Reverse Logistics (returns, recycle, from consumers)
External Sources
-PEST -Demographic: population of interest, ethnic groups, geographic changes -Natural world -Competition
Demand oriented
-Penetration Pricing (go low even if temporary, gain mkt share through demand -Price Skimming (high price then low, image/prestige pricing, capitalize on high price)
Aptitude
-Personal -Verbal -Personality (empathy)
Personal Communication with the Customer
-Personal Selling -Direct Marketing -Interactive Marketing
Advantages of Store Retailers
-Personal contact with product -Personal service -Payment options -Social experience -Immediate need fullfilment -Reduce risk to the consumer
Functions of Intermediaries
-Physical Distribution Functions -Transaction and Comm Functions -Facilitating Functions
Situational Factors (external)
-Physical Surroundings -Personal Circumstances -Time
Macro-level External Environment
-Political, legal, ethical -Socio-cultural/demographic -Technological -Economic -Natural
History of Marketing
-Pre-Industrial Revolution -Focus and Production and Products -Focus on Selling -Advent of the Marketing Concept -Post Marketing Concept
Legal Considerations (Pricing)
-Price Fixing -Price Discrimination -Deceptive Pricing -Predatory Pricing -Fair Trade and Minimum Markup Laws
Focus on Selling
-Producing more and more -Door to door selling -Sales Orientation: to increase sales and production capacity utilization, salespeople need to push products into the hands of customers.
Consumer Sales Promotions Options
-Product Sampling -Coupons -Rebates -Contests and Sweepstakes -Premiums -Multiple-purhcase offers -Point-of-purchase Materials -Product Placement -Loyalty Programs
Pricing Tactics
-Product line pricing (price points) -Captive pricing (complementary pricing, printer and ink) -Price bundling (value pricing, hotel + flight) -Reference Pricing (pshyc, 499.99 strike through to 399.99) -Prestige pricing (pshyc) -Odd/Even Pricing (350 v. 349.99) -One price strategy/variable pricing (fixed price, 0.99 store/haggle pricing, car dealers) -Everyday Low Pricing (EDLP)/High-low pricing (starts high, but is much lower when drops, walmart v. walgreens, cvs) -Auction pricing
Handling Customer Obj's
-Product need -Company trust -More time -Price
Profit oriented
-Profit maximization (decide what consumer will pay and then work features into price point while gaining profit) -ROI is rate, p max is dollar amt -assumes you know what demand is (price elasticity of demand)
Packaging Obj's
-Protect -Promote usage -Communicate
Push v. Pull Strategies (Promotion)
-Provider>push offering through personal selling and sales promotion>channel members>cm do own adv and selling to users>end user -End user>provider creates demand by end users through promoting directly to them>channel members>demand by end users trickles up through the channel, pulling product from provider>provider
Develop the Message
-Rational appeals (cog, aff, beh) -Emotional appeals (aff, cog, beh) -Moral appeals
Problem Recognition
-Real State: perceived reality of present time. -Preferred State: desires that reflect how he/she would like to feel or live in the present time.
Compensation and Rewards
-Salary -Incentive Pay (commissions, bonuses for top performers) -Non-financial Incentives (awards) -Best is combo of salary and incentive pay
Transaction and Communications Functions
-Selling -Buying -Marketing communications
Creating Direct Mktg Campaign
-Set strategy for campaign (identifying tgt mkt) -Specify direct mktg channels -Identify qualified target customers -Develop and test offer for campaign -Analyze results of offer
Brand Extenstions??
-Stand alone branding -Family branding -National/Store brands -Licensing -Co-branding
BCG Matrix
-Stars: high share, high growth -Cash Cows: high share, low growth -Dogs: low share, low growth -Problem Children: low share, high growth -done at corporate level -invest in stars, divest in dogs, milk cows
Fixes?
-Strong internal partnerships -Org members collect info -Employee and customer friendly -High tech as necessary -Reporting useful data
Segmentation Criteria
-Sufficient size -Readily identifiable and measurable -Clearly differentiated on one or more dimensions -Can be reached in order to deliver value -Should improve bottom line and meet needs
Product Classifications
-Tangibilty -Durability -Consumer Goods
Skill Level
-Technical Skills -Interpersonal Skills -Communications Skills
Characteristics of Retailing (Differentiation)
-Type of merchandise (general, category killers) -Assortment (breadth and depth) -Services imparted to consumers (self service, limited service, full service) -Differences in value equation
Community
-User to user info, forums, blogs, ratings, reviews
5 W Model
-Who are the customers and future customers -What do customers do with the product -Where do they purchase the product -When do they purchase the product -Why or why not do customers buy the product
GE Business Screen
-Your business position -invest/grow -selective investment -harvest/divest
roles in advertising agency
-account executive -management (account) supervisors -account planning -media planning -copywriters -art directors -creative director -production department -traffic department -sales promotion department
IMC Strategy Influences
-balanced # and dispersion of buyers (L-ASP, S-PS) -Buyers' info needs (Low-ASP, High-PS) -Size and importance of purchase (S-ASP, L-PS) -Postpurchase contact required (Little-ASP, Much-PS) -Product complexity (Low-ASP, High-PS) -Distribution (Channel-ASP, Direct-PS) -Pricing (Preset-ASP, Negotiated-PS)
Geographic Segmentation
-by region -by density of population -by size of population -by growth in population -by climate
Internal Marketing must include:
-competing for talent -stressing teamwork -modeling desired behaviors by managers -enabling employees to make their own decisions (empowerment) -measuring and regarding great service performance -knowing and reacting to employee's needs -offering an overall vision -training and developing people
Customer Brand Roles
-conveys info -educates the customer -helps reassure the customer
how agencies are structured?
-departmental system -group system
Persuade
-differentiation -trial, want you to try it -connect with the need -get more info -move info you have to the more persuasion you can achieve
Inform
-features -functionality -message (clear, concise, consistent) -uses, advantages -needs of target mkt
Elements of Value Network
-focus is on value co-creation -shared vision exists within the network -value co-creation is viewed as emanating from expertise and competency of parties of the network. -relationships are key elements in the co-creation of value -the value is viewed as network value -relationship conflicts are viewed as potential barriers to value co-creation and a process for conflict co-mgmt is essential
Contractual Systems
-franchises, wholesaler and retailer are under contracts
Marketing Communications
-generate customer traffic -drive customer purchases
Loyalty Sparks:
-high customer retention -customer advocacy
Pricing
-high/low pricing (high positioning) -EDLP (low positioning) -Low price guarantee (low positioning)
Innovation Diffusion Process
-how customers adopt product 1. Awareness 2. Interest 3. Evaluation 4. Trial (0.4 probability of buying after trial) 5. Adoption
Context
-layout of web page, colors (ex. blue very good), style
types of agencies
-local agencies -regional/national agencies -international agencies -full-service advertising agency -general consumer agency -business-to-business agency -creative boutiques -media buying service -interactive agency
how are agencies compensated?
-media commission -markups -fees (fee-commission combination, straight-fee, retainer method) -incentive system -in-house agency
Product Mix Assortment
-merchandise categories (assortment of items considered subs for each other) -national v. private label brands
Intermediaries
-middlemen -merchant middlemen -agent -manufacturer's agent -retailer -distributor -wholesaler -jobber -facilitating agent
Customer Perspective
-much more narrow and self-directed -is the product new to me?
Select Promotion Mix
-nature of the offering (new?, tangible?, etc) -stage of offering in PLC -stages of consumer purchase decision process
Role of Retailing
-offer variety to consumers -seperate large product volume into consumer purchase quantities -maintain inventory levels -make additional services available to consumers
Advertising
-one-way, non-personal, pay for it, sponsor -repetitive to be successful -run risk of wearout: beyond certain ad spending level, diminishing returns tend to set in -advertising response function: mkt share stops growing, or begins to decline, despite continued spending
Benefits of Brand Equity
-perceived quality customers -brand connections customers -brand loyalty
Corporate Systems
-producers can do intermediary functions by acquiring them -forward integration: acquire intermediaries -backward integration: acquire suppliers
Pre-Industrial Revolution
-products came from England -wait time was too long, so began to make ourselves
Remind
-repeat purchases, relationships -provide impetus
Customers
-shorter product life cycles -products designed to meet specific needs = smaller, more focused target markets
Administered Systems
-someone in channel is very powerful, becomes channel captain (ex. walmart)
functions of advertising
-to identify products and differentiate them from others -to communicate information about the products, its features, and its place of sale -to induce consumers to try new products and to suggest reuse -to stimulate the distribution of a product -to increase product use -to build value, brand preference, and loyalty -to lower the overall cost of sales.
Advocacy advertising
...
Bulletin board
...
...
7 C's
1. Context 2. Content 3. Community 4. Customization 5. Communication 6. Connection 7. Commerce
Define Product Opportunities
1. Define and test product concept 2. Create mktg strategy (value proposition) 3. Conduct business case analaysis -what's the probability of success? how profitable will it be?
Marketing Research Process
1. Define the research problem 2. Establish research design 3. Search secondary sources 4. Collect the data 5. Analyze the data 6. Report the findings
What are the three steps of the Objective & Task (budget build-up) method of budgeting
1. Defining objectives 2. Determining strategy 3. Estimating cost
Pricing Objectives
1. Demand oriented 2. Profit oriented 3. Competition oriented 4. Cost oriented
Develop Product Opportunities
1. Develop the product (prototype) -product testing: limited basis, beta customer, alpha employees -Test market: consumer and business product market tests -Product launch -Begin production between test mkt and product launch (small window)
Post Marketing Concepts
1. Differentiation Orientation 2. Market Orientation 3. Relationship Orientation 4. One to one Marketing
Identify Product Opportunities
1. Generate new ideas -internal: R&D, Mktg, manufacturers, salespeople -external: customers, competitors, small co's acquired, universities -customers -distributors (don't work for us, interface for other org's) 2. Screen and Evaluate Ideas (always looking for reasons to reject, rather than accept) -go-to-market mistake -stop-to-market mistake
functions of advertising
1. Identify a product 2. Communicate information 3. Induce customers to try/reuse a product 4. Stimulate distribution 5. Lower overall cost of sales 6. Build brand loyalty
Product Development
1. Identify product opportunities 2. Define the product opportunity 3. Develop product opportunity
• What are the two basic steps in the market segmentation process?
1. Identifying groups of people (or organizations) with certain shared needs and characteristics. 2. Aggregating (combining) these groups into larger market segments according to their interest in the products usefulness.
Global Experience Learning Curve
1. Indirect Foreign Marketing 2. Direct Foreign Marketing 3. International Marketing 4. Global Marketing
CRM Process
1. Knowledge Discovery 2. MKTG Planning 3. Customer Interaction (implementation) 4. Analysis and Refinement
What are the three basic methods of collecting quantitative data?
1. Observation-monitoring peoples actions (traffic counting) 2. Experiment- scientific investigation 3. Survey- researcher gains info on attitudes, opinions, or motivations by questioning.
Consumer Decision Making Process
1. Problem Recognition 2. Search for Information 3. Evaluation of Alternatives 4. Product Choice Decision 5. Post-purchase Evaluation
consumer behavior process
1. Problem recognition 2. Info search 3. Alternatives evaluation 4. Purchase (Intent) 5. Post purchase evaluation
• What are the two forms of Marketing Objectives?
1. Sales target objectives-sales goals 2. Communication objectives- assosciated with promotional activities
What is the advantage Google, Yahoo and Bing have over other websites?
80% of web traffic begins at a search engine
Personal Selling
A 2-way comm. process between salesperson and buyer with the goal of securing, building, and maintaining long-term relationships with profitable customers. -most expensive form of promotions -most effective with complex products, where price can be negotiated, when message needs to be tailored
Corporate blog
A Web-based source of information about a company, its policies, products, or activities. Corporate blogs are one way companies can facilitate relationships with their consumers or other publics.
Survey
A basic method of quantitative research. To get people's opinions, surveys may be conducted in person, by mail, on the telephone, or via the Internet.
Service
A bundle of benefits that may or may not be physical, that are temporary in nature, and that come from the completion of a task.
A benchmark measure
A campaign starting point that may be studied in relation to the degree of change following a promotional campaign
What does a media plan begin with?
A careful analysis of the target market
Private audience venue
A category of digital media based on audience size; where meetings, conferences, and seminars use computer-driven multimedia presentations to inform, persuade, remind, and entertain people.
Personal audience venue
A category of digital media based on audience size; where one person in front of a personal computer can receive multimedia information.
Vertical marketing system (VMS)
A centrally programmed and managed system that supplies or otherwise serves a group of stores or other businesses.
Coupon
A certificate with a stated value that is presented to a retail store for a price reduction on a specified item.
Preferred-position rate
A choice position for a newspaper or magazine ad for which a higher rate is charged.
Customized MarketMail (CMM)
A class of mail, introduced by the United States Postal Service in 2003, that allows direct-mail advertisers to send pieces in unusual shapes without envelopes.
Presenter commercial
A commercial format in which one person or character presents the product and sales message.
Income segmentation
A commercial showing the luxury
Cost per thousand (CPM)
A common term describing the cost of reaching 1,000 people in a medium's audience. It is used by media planners to compare the cost of various media vehicles.
Direct Foreign Marketing
A company develops local distribution and service representation in a foreign market
International Marketing
A company makes the commitment to produce products outside its domestic market.
House lists
A company's most important and valuable direct-mail list, which may contain current, recent, and long-past customers or future prospects.
Iconoclastic names
A company's name that doesn't reflect the company's good or services, but instead something that is unique, different, or memorable.
Crisis management
A company's plan for handling news and public relations during crises.
CRM
A comprehensive business model for increasing revenues and profits by focusing on customers. -Obj's: acquisition, retention, and profitability -provide value and satisfaction -key is emotional attachment -assists with mktg plan
Attention value
A consideration in selecting media based on the degree of attention paid to ads in particular media by those exposed to them. Attention value relates to the advertising message and copy just as much as to the medium.
Motivation value
A consideration in selecting media based on the medium's ability to motivate people to act. Positive factors include prestige, good quality reproduction, timeliness, and editorial relevance.
Market Information System (MIS)
A continuing process of identifying, collecting, analyzing, accumulating and dispensing critical information to marketing decision makers. -used to answer broad questions -research process to identify, collect, analyze, and disseminate information
SWOT Analysis
A convenient way to summarize key findings into a matrix of strengths, weaknesses, opportunities, and threats. -internal analysis reveals strengths and weaknesses -external analysis points to potential opportunities and threats
Proof copy
A copy of the completed advertisement that is used to check for final errors and corrections.
Customer Switching
A customer changes from purchasing one product to purchasing another competing product.
Customer Loyalty
A customer's commitment to a company and its products and brands for the long run.
Casting brief
A detailed, written description of the characters' personalities to serve as guides in casting sessions when actors audition for the roles.
Viral video
A digital video with a subtle promotional message designed to tempt viewers to share it with their friends.
Sales promotion
A direct inducement offering extra incentives all along the marketing route—from manufacturers through distribution channels to customers—to accelerate the movement of the product from the producer to the consumer.
Earned rate
A discount applied retroactively as the volume of advertising increases through the year.
Radio personality
A disk jockey or talk show host.
Intensive distribution
A distribution strategy based on making the product available to consumers at every possible location so that consumers can buy with a minimum effort.
Comprehensive layout (comp)
A facsimile of a finished ad with copy set in type and pasted into position along with proposed illustrations. The "comp" is prepared so the advertiser can gauge the effect of the final act.
Situation analysis
A factual statement of the organization's current situation and how it get there. It includes relevant facts about the company's history, growth, products, and services, sales volume, share of market, competitive status, market served, distribution system, past advertising programs, results of market research studies, company capabilities, and strengths and weaknesses.
Split run
A feature of many newspapers (and magazines) that allows advertisers to test the comparative effectiveness of two different advertising approaches by running two different ads of identical size, but different content, in the same or different press runs on the same day.
Platform licensing
A fee paid to original software developers for the special key codes that access multimedia programs on certain computer networks.
Advertising allowance
A fee paid to the retailer for advertising the manufacturer's product.
Dissonance
A feeling of doubt or anxiety following a recent purchase, generally attributed with high-involvement, large purchases.
Camera-ready art
A finished ad that is ready for the printer's camera to shoot—to make negatives or plates—according to the publication's specifications.
Relationship-based Enterprise
A firm that strives to facilitate long term, win win relationships between buyers and sellers. -Central goal of CRM -Customers -Relationships -Managerial Decision Making
Letter shop
A firm that stuffs envelopes, affixes labels, calculates postage, sorts pieces into stacks or bundles, and otherwise prepares items for mailing.
Global Marketing
A firm treats all world markets as a single market with many different segments. -Includes company's own domestic market
Distinctive Competencies
A firm's core competencies that are superior to those of their competitors.
Incentive system
A form of compensation in which the agency shares in the client's success when a campaign attains specific, agreed-upon goals.
Broadsides
A form of direct-mail advertisement, larger than a folder and sometimes used as a window display or wall poster in stores. It can be folded to a compact size and fitted into a mailer.
Opinion sampling
A form of public relations research in which consumers provide feedback via interviews, toll-free phone lines, focus groups, and similar methods.
Venue marketing
A form of sponsorship that links a sponsor to a physical site such as a stadium, arena, auditorium, or racetrack.
Inquiry test
A form of test in which consumer responses to an ad for information or free samples are tabulated.
Insertion order
A form submitted to a newspaper or magazine when ad advertiser wants to run an advertisement. This form states the date(s) on which the ad is to run, its size, the requested position, and the rate.
Tying Contracts
A formal requirement by the seller of an intermediary to purchase a supplementary products to qualify to purchase the primary product the intermediary wishes to buy.
Controlled circulation
A free publication mailed to a select list of individuals the publisher feels are in a unique position to influence the purchase of advertised products.
Mnemonic device
A gimmick used to dramatize the product benefit and make it memorable, such as the Imperial Margarine crown or the Avon doorbell.
Halftone screen
A glass or plastic screen, crisscrossed with fine black lines at right angles like a window screen, which breaks continuous-tone artwork into dots so that it can be reproduced.
Reference Group
A group of individuals whose beliefs, attitudes, and behavior influence the beliefs, attitudes, and behavior of an individual.
Markets
A group of potential customers who share a common interest, need, or desire; who can use the offered good or service to some advantage; and who can afford or are willing to pay the purchase price. Also, an element of the media mix referring to the various targets of a media plan.
Product Line
A group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction. -Windows Vista, Windows XP, Windows 7....
Subculture
A group within a culture that shares similar cultural artifacts created by differences in ethnicity, religion, race, or geography.
Island half
A half-page of magazine space that is surrounded on two or more sides by editorial matter. This type of ad is designed to dominate a page and is therefore sold at a premium price.
Orthographic film
A high-contrast photographic film yielding only black-and-white images, no gray tones.
Account planning
A hybrid discipline that bridges the gap between traditional research, account management, and creative direction. Planners represent the view of the consumer in order to better define and plan the client's advertising program.
Musical logo
A jingle that becomes associated with a product or company through consistent use.
Junior unit
A large magazine advertisement (60 percent of the page) placed in the middle of a page and surrounded by editorial matter.
Community involvement
A local public relations activity in which companies sponsor or participate in a local activity or supply a location for an event.
Gatefold
A magazine cover or page extended and folded over to fit into the magazine. The gatefold may be a fraction of a page or two or more pages, and it is always sold at a premium.
Buyback allowance
A manufacturer's offer to pay for an old product so that it will be taken off the shelf to make room for a new product.
Exhibit
A marketing or public relations approach that involves preparing displays that tell about an organization or its products; exhibits may be used at fairs, colleges and universities, or trade shows.
RFM formula
A mathematical model that provides marketers with a method to determine the most reliable customers in a company's database, according to Recency, Frequency, and Monetary variables.
In a Customer Relationship Management, what does "share" of customer indicate to a company?
A measure of a customer's potential purchasing value
Bursting
A media scheduling method for promoting high-ticket items that require careful consideration, such as running the same commercial every half-hour on the same network in prime time.
Attitude
A mental position a person takes about a topic, person, or event
Percentage of sales method
A method of advertising budget allocation based on a percentage of the previous year's sales, the anticipated sales for the next year, or a combination of the two.
Share of market/share of voice method
A method of allocating advertising funds based on determining the firm's goals for a certain share of the market and then applying a slightly higher percentage of industry advertising dollars to the firm's budget.
Empirical research method
A method of allocating funds for advertising that uses experimentation to determine the best level of advertising expenditure. By running a series of tests in different markets with different budgets, companies determine the most efficient level of expenditure.
Straight-fee (retainer) method
A method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula. Under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies by some factor.
Word-count method
A method of copy casting in which all the words in the copy are counted and then divided by the number of words per square inch that can be set in a particular type style and size, as given in a standard table.
Character-count method
A method of copy casting in which an actual count is made of the number of characters in the copy.
Objective/task method
A method of determining advertising allocations, also referred to as the budget-buildup method, that defines objectives and how advertising is to be used to accomplish them. It has three steps: defining the objectives, determining strategy, and establishing the cost.
Network marketing
A method of direct distribution in which individuals act as independent distributors for a manufacturer or private-label marketer.
Direct questioning
A method of pretesting designed to elicit a full range of responses to the advertising. It is especially effective for testing alternative advertisements in the early stages of development.
Observation method
A method of research used when researchers actually monitor people's actions.
Continuous schedule
A method of scheduling media in which advertising runs steadily with little variation.
Experimental method
A method of scientific investigation in which a researcher alters the stimulus received by a test group or groups and compares the results with those of a control group that did not receive the altered stimulus.
Geographic segmentation
A method of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within the region.
Purchase occasion
A method of segmenting markets on the basis of when consumers buy and use a good or service.
Push money (PM)
A monetary inducement for retail salespeople to push the sale of particular products (also called spiffs).
Today's method of ad campaign development is based on the idea that:
A more integrated advertising approach is essential, based on an in-depth understanding of the target market
Cinematographer
A motion picture photographer.
Jingle
A musical commercial, usually sung with the sales message in the verse.
Brand
A name, term, sign, symbol, or design, or a combination of these elements, intended to identify the goods or services of one seller or groups of sellers and to differentiate them form those competitors. -identity: a summary of unique qualities attributed to a brand. -differentiates
Video news release (VNR)
A news or feature story prepared in video form and offered free to TV stations.
National rate
A newspaper advertising rate that is higher, attributed to the added costs of serving national advertisers.
Tabloid newspaper
A newspaper sized generally about half as deep as a standard-sized newspaper; it is usually about 14 inches deep and 11 inches wide.
Sunday supplement
A newspaper-distributed Sunday magazine. Sunday supplements are distinct from other sections of the newspaper since they are printed by rotogravure on smoother paper stock.
Press (media) kit
A package of publicity materials used to give information to the press at staged events such as press conferences or open houses. Also, a package of sales material promoting a specific media vehicle.
Copywriter
A person who creates the words and concepts for ads and commercials.
Interactive TV
A personal audience venue where people can personally guide TV programming through a remote control box while watching TV.
Product Sampling
A physical sample of the product is given to consumers
Icon
A pictorial image represents an idea or thing.
Media
A plural form of medium, referring to communications vehicles paid to present an advertisement to its target audience. Most often used to refer to radio and television networks, stations that have news reporters, and publications that carry news and advertising.
Sample
A portion of the population selected by market researchers to represent the appropriate targeted population. Also, a free trial of a product.
Opportunity to see (OTS)
A possible exposure of an advertising message to one audience member. Also called an advertising impression. Effective frequency is considered to be three or more opportunities-to-see over a four-week period; but no magic number works for every commercial and every product.
Advertising impression
A possible exposure of the advertising message to one audience member.
Digital proof (Iris)
A prepress proof that uses inkjet technology and offers accuracy, lower cost, and speed.
Rebates
A price reduction for purchase of a specific product during a specific time period
Fee-commission combination
A pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned.
Rate card
A printed information form listing a publication's advertising rates, mechanical and copy requirements, advertising deadlines, and other information the advertising needs to know before placing an order.
Line plate
A printing plate used to produce black-and-white artwork from line film.
Brainstorming
A process in which two or more people get together to generate new ideas; often a source of sudden inspiration.
A shootout
A process when choosing an ad agency, clients asking different agencies to develop a direct mail campaign to boost awareness of the company's range of products
Emotional Choice
A product choice based more on emotional attitudes about a product rather than rational thought.
Attribute-based Choice
A product choice based on the premise that product choices are made by comparing brands across a defined set of attributes.
Attitude-based Choice
A product choice that relies on an individual's beliefs and values to direct his/her assessment.
Services
A product that represents a bundle of benefits that can satisfy customer wants and needs without having physical form. -differentiator: intangibility -use to differentiate your product, differentiate tangible with intangible (customer service)
Utility
A product's ability to provide both symbolic or psychological want satisfaction and functional satisfaction. A product's problem-solving potential may include form, time, place, or possession utility.
Ambush marketing
A promotional strategy used by nonsponsors to capitalize on the popularity or prestige of an event or property by giving the false impression that they are sponsors, such as by buying up all the billboard space around an athletic stadium. Often employed by the competitors of the property's official sponsor.
Closing date
A publication's final deadline for supplying printing material for an advertisement.
Combination offer
A sales promotion device in which two related products are packaged together at a special price, such as a razor and a package of blades. Sometimes a * may be used to introduce a new product by tying its purchase to an established product at a special price.
Random probability samples
A sampling method in which very unit in the population universe is given an equal chance of being selected for the research.
Blinking
A scheduling technique in which the advertiser floods the airwaves for one day on both cable and network channels to make it virtually impossible to miss the ad.
Subculture
A segment within a culture that shares a set of meanings, values, or activities that differ in certain respects from those of the overall culture
Equipment-based service
A service business that relies mainly on the use of specialized equipment.
People-based service
A service that relies on the talents and skills of individuals rather than on highly technical or specialized equipment.
Brand Equity
A set of assets and liabilities linked to a brand's name and symbol that adds to or subtracts from the value provided by a product or services to a firm or that firm's customers. -Brand Awareness -Brand Loyalty -Perceived Quality -Brand Association -Brand Assets (trademarks)
Marketing information system (MIS)
A set of procedures for generating an orderly flow of pertinent information for use in making market decisions.
Storyboard
A sheet preprinted with a series of 8 to 20 blank frames in the shape of TV screens, which includes text of the commercial, sound effects, and camera views.
Mission statement
A short description of the organization's purpose and philosophy.
Trade deal
A short-term dealer discount on the cost of a product or other dollar inducement to sell a product.
Cents-off promotion
A short-term reduction in price of a product designed to induce trail and usage. Cents-off promotions take various forms, including basic cents-off packages, one-cent sales, free offers, and box-top refunds.
Involvement
A significant outcome of an individual's motivation that mediated the product choice decision. -high: extended decision making process -low: habitual -factors: time, learning, interest, cost, risk, background and psychological profile, aspirational focus, environment at time of purchase
Cost per point (CPP)
A simple computation used by media buyers to determine which broadcast programs are the most efficient in relation to the target audience. The CPP is determined by dividing the cost of the show by the show's expected rating against the target audience.
Markup
A source of agency income gained by adding some amount to a supplier's bill, usually 17.65 percent.
Contract rate
A special rate for newspaper advertising usually offered to local advertisers who sign an annual contract for frequent or bulk-space purchases.
Recruitment advertising
A special type of advertising, most frequently found in the classified sections of daily newspapers and typically the responsibility of a personnel department aimed at attracting employment applications.
Centralized advertising department
A staff of employees, usually located at corporate headquarters, responsible for all the organization's advertising. The department is often structured by product, advertising subfunction, end user, media, or geography.
Slogan
A standard company statement (also called a tagline or a themeline) for advertisements, salespeople, and company employees. * have two basic purposes: to provide continuity for a campaign and to reduce a key theme or idea to a brief, memorable positioning statement.
Flat rate
A standard newspaper advertising rate with no discount allowance for large or repeated space buys.
Circulation
A statistical measure of a print medium's audience; includes subscription and vendor sales and primary and secondary readership.
Integrated commercial
A straight radio announcement, usually delivered by one person, woven into a show or tailored to a given program to avoid any perceptible interruption.
Integrated Marketing Communications (IMC)
A strategic approach to communicating the brand and co. message to targeted customers in ways that are clear, concise, and consistent and yet are customizable as needed to maximize the impact on a particular audience. -all promotion mix dept's integrated -strategic and communicates value to the target market and message is concise, consistent, and clear
Italic
A style of printing type with letters that generally slant to the right.
Fact-based thinking
A style of thinking that tends to fragment concepts into components and to analyze situations to discover the one best solution.
Value-based thinking
A style of thinking where decisions are based on intuition, values, and ethical judgments.
Display type
A style of typeface used in advertising that is larger and heavier than normal text type. * is often used in headlines, subheads, logos, and addresses, and for emphasis.
Kicker
A subhead that appears above the headline. (Also known as overline)
Channel of Distribution
A system of interdependent relationships among a set of organizations that facilitate the exchange process. -marketing channel -producer to consumer and all inbetween
Direct marketing
A system of marketing in which companies build their own database of customers and use a variety of media to communicate with them directly such as through ads and catalogs.
Standard advertising unit (SAU)
A system of standardized newspaper advertisement sizes that can be accepted by all standard-sized newspapers without consideration of their precise format or page size. This system allows advertisers to prepare one advertisement in a particular size or SAU and place it in various newspapers regardless of the format.
Perception
A system to select, organize, and interpret info to create a useful, informative picture of the world. -selective retention, selective distortion, selective awareness
Run-of-paper (ROP) advertising rate
A term referring to a newspaper's normal discretionary right to place a given ad on any page or in any position it desires—in other words, where space permits. Most newspapers make an effort to place an as in the position requested by the advertiser.
Pop-up ad
A three-dimensional magazine ad.
Teleprompter
A two-way mirror mounted on the front of a studio video camera that reflects moving text to be read by the speaker being taped.
Sans serif
A type group that is characterized by a lack of serifs.
Demonstration
A type of TV commercial in which the product is shown in use.
Institutional advertising
A type of advertising that attempts to obtain favorable attention for the business as a whole, not for a specific product or service the store of business sells. The effects of * are intended to be long term rather than short range.
Institutional advertising
A type of advertising that attempts to obtain favorable attention for the business as a whole, not for a specific product or service the store of business sells. The effects of institutional advertising are intended to be long term rather than short range.
Institutional copy
A type of body copy in which the advertiser tries to sell an idea or the merits of the organization or service rather than the sales features of a particular product.
Dialogue/monologue copy
A type of body copy in which the characters illustrated in the advertisement do the selling in their own words either through a quasi-testimonial technique or through a comic strip panel.
Picture-caption copy
A type of body copy in which the story is told through a series of illustrations and captions rather than through the use of a copy block alone.
Straight-sell copy
A type of body copy in which the text immediately explains or develops the headline and visual in a straightforward attempt to sell the product.
Narrative copy
A type of body copy that tells a story. It sets up a problem and then creates a solution using the particular sales features of the product or service as the key to the solution.
Seal
A type of certification mark offered by such organizations as the Good Housekeeping Institute and Underwriters' Laboratories when a product meets standards established by these institutions. * provide an independent, valued endorsement for the advertised product.
Slice of life
A type of commercial consisting of a dramatization of a real-life situation in which the product is tried and becomes the solution to a problem.
paid search
A type of contextual advertising where Web site owners pay an advertising fee, usually based on click-throughs or ad views to have their Web site search results shown in top placement on search engine result pages
Compiled lists
A type of direct-mail list that has been complied by another source, such as lists of automobile owners, new home purchasers, business owners, union members, and so forth. It is the most readily available type of list but offers the lowest response expectation.
Mail-response lists
A type of direct-mail lists, composed of people who have responded t the direct-mail solicitations of other companies, especially those whose efforts are complementary to the advertisers
Question headline
A type of headline that asks the reader of question.
News/information headline
A type of headline that includes many of the "how-to" headlines as well as headlines that seek to gain identification for their sponsors by announcing some news or providing some promise of information.
Command headline
A type of headline that orders the reader to do something.
Provocative headline
A type of headline written to provoke the reader's curiosity so that, to learn more, the reader will read the body copy.
Clearance advertising
A type of local advertising designed to make room for new product lines or new models or to get ride of slow-moving product lines, floor samples, broken or distressed merchandise, or items that are no longer in season.
Business reply mail
A type of mail that enables the recipient of direct-mail advertising to respond without paying postage.
Attitude test
A type of posttest that usually seeks to measure the effectiveness of an advertising campaign in creating a favorable attitude or evaluation for a company, its brand, or its products.
Central location test
A type of pretest in which videotapes of test commercials are shown to respondents on a one-to-one basis, usually in shopping center locations.
Regular price-line advertising
A type of retail advertising designed to inform consumers about the services available or the wide selection and quality of merchandise offered at regular prices.
Sale advertising
A type of retail advertising designed to stimulate the movement of particular merchandise or generally increase store traffic by placing the emphasis on special reduced prices.
Franchising
A type of vertical marketing system in which dealers pay a fee to operate under the guidelines and direction of the parent company or manufacturer.
News (press) release
A typewritten sheet of information (usually 8 ½ by 11 inches) issued to print and broadcast outlets to generate publicity or shed light on a subject of interest.
Font
A uniquely designed set of capital, small capital, and lowercase letters, usually including numerals and punctuation marks.
Sales test
A useful measure of advertising effectiveness when advertising is the dominant element, or the only variable, in the company's marketing plan. Sales tests are more suited for gauging the effectiveness of campaigns than of individual ads or components of ads.
Reading notice
A variation of a display ad designed to look like editorial matter. It is sometimes charged at a higher space rate than normal display advertising, and the law requires that the word advertisement appear at the top.
Communications mix
A variety of marketing communications tools, grouped into personal and nonpersonal selling activities.
promotional plan
A written description of the activities you plan on using to promote your products or services
Creative brief
A written statement that serves as the creative team's guide for writing and producing an ad. It describes the most important issues that should be considered in the development of the ad (the who, why, what, where, and when), including a definition and description of the target audience; the rational and emotional appeals to be used; the product features that will satisfy the customer's needs; the style, approach, or tone that will be used in the copy; and, generally, what the copy will say.
Product advertising
Advertising intended to promote goods and services; also a functional classification of advertising.
Cover position
Advertising space on the front inside, back inside, and back cover pages of a publication which is usually sold at a premium price.
online advertising
Advertising that appears while consumers are surfing the Web, including banner and ticker ads, interstitials, skyscrapers, and other forms
Public relations advertising
Advertising that attempts to improve a company's relationship with its publics (labor, government, customers, suppliers, etc.)
Attitude Development Sequence
Affective--conative--cognitive
In-house agency
Agency wholly owned by an advertiser and set up and staffed to do all the work of an independent full-service agency.
Manufacturer's Agent
Agent that usually operates on an extended contract, often sells within an exclusive territory, handles noncompeting but related lines of goods, and has limited authority to price and create terms of sale. -agent that works for the manufacturer
Public affairs
All activities related to the community citizenship of an organization, including dealing with community officials and working with regulatory bodies and legislative groups.
Direct mail advertising
All forms of advertising sent directly to prospective customers without using one of the commercial media forms.
Direct-mail advertising
All forms of advertising sent directly to prospective customers without using one of the commercial media forms.
Visuals
All of the picture elements that are placed into an advertisement.
Collateral materials
All the accessory nonmedia advertising materials prepared by manufacturers to help dealers sell a product—booklets, catalogs, brochures, films, trade-show exhibits, sales kits, and so on.
Market Development Strategies
Allow for expansion of the firm's product line into heretofore untapped markets, often internationally.
Art director
Along with graphic designers and production artists, determines how the ad's verbal and visual symbols will fit together.
Flighting
Alternating periods of advertising and nonadvertising.
Web site
An Internet destination designed to be read in a Web browser.
SWOT analysis
An acronym for internal strengths and weaknesses and external opportunities and threats, which represent the four categories used by advertising managers when reviewing a marketing plan. The SWOT analysis briefly restates the company's current situation, reviews the target market segments, itemizes the long- and short-term marketing objectives, and cites decisions regarding marketing positioning and the marketing mix.
Advertorials
An ad aimed at swaying public opinion rather than selling product.
Insert
An ad or brochure which the advertiser prints and ships to the publisher for insertion into a magazine or newspaper.
International agency
An advertising agency that has offices or affiliates in major communication centers around the world and can help its clients market internationally or globally.
Interactive agency
An advertising agency that specializes in the creation of ads for a digital interactive medium such as Web pages, CD-ROMs, or electronic kiosks.
Direct-response (action) advertising
An advertising message that asks the reader, listener, or viewer to respond to the sender. Direct-response advertising can take the form of direct mail, or ut can use a wide range of other media, from matchbook covers or magazines to radio, TV, or billboards.
Full-service advertising agency
An agency equipped to serve its clients in all areas of communication and promotion. Its advertising services include planning, creating, and producing advertisements as well as performing research and media selection services. Nonadvertising functions include producing sales promotion materials, publicity articles, annual reports, trade show exhibits, and sales training materials.
General consumer agency
An agency that represents the widest variety of accounts, but it concentrates on companies that made goods purchased chiefly by consumers.
Speculative presentation
An agency's presentation of the advertisement it proposes using in the event it is hired. It is usually made at the request of a prospective client and is often not paid for by the client.
Situation Analysis
An analysis of the macro and micro level environment within which a firm's marketing plan is being developed.
"Whole egg theory"
An approach designed to help the client achieve total success
Synergy
An effect achieved when the sum of the parts is greater than that expected from simply adding together the individual components.
Production phase
An element of creative strategy. The whole physical process of producing ads and commercials; also the particular phase in the process when the recording and shooting of commercials is done.
Advertising message
An element of the creative mix comprising what the company plans to say in its advertisements and how it plans to say it—verbally or nonverbally
Advertising message
An element of the creative mix comprising what the company plans to say in its advertisements and how it plans to say it—verbally or nonverbally.
Communications media
An element of the creative mix, comprising the various methods or vehicles that will be used to transmit the advertiser's message.
Universe
An entire target population.
Puffery
An exaggerated claim with no overt attempt to mislead or deceive
Universal Product Code (UPC)
An identifying series of vertical bars with a 12-digit number that adorns every consumer packaged good.
Validity
An important characteristic of a research test. For a test to be valid, it must reflect the true status of the market.
Reliability
An important characteristic of research test results. For a test to be reliable, it must be repeatable, producing the same result each time it is administered.
Advertising agency
An independent organization of creative people and businesspeople who specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers. The agency also arranges for or contracts for purchase of space and time in various media.
Sales Promotions
An inducement for an end user consumer to buy a product or for a sales person or someone else in the channel to sell it. -short term inducements for interest, desire, and action -consumer and channel members (trade shows, co-op advertising and promotion)
Coupons
An instant price reduction at point of sale, available in print media, online, or in-store
In-depth interview
An intensive interview technique that uses carefully planned but loosely structured questions to probe respondents' deeper feelings.
Direct Marketing
An interactive marketing system that uses one or more advertising media to affect a measurable response and/or transaction at any location.
List broker
An intermediary who handles rental of mailing lists for list owners on a commission basis.
Interactive Marketing
An internet-driven relationship between companies, their brands, and customers. Interactive marketing enables customers to control info flow and encourages customer-comany interaction as well as higher level of customer service.
What is a "test market"
An isolated geographic area used to introduce and test the effectiveness of a product, ad campaign, or promo campaign, prior to a national rollout.
Test market
An isolated geographic area used to introduce and test the effectiveness of a product, ad campaign, or promotional campaign, prior to a national rollout.
Premium
An item offered free or at a bargain price to encourage the consumer to buy ad advertised product.
Layout
An orderly formation of all the parts of an advertisement. In print, it refers to the arrangement of the headline, subheads, visuals, copy, picture captions, trademarks, slogans, and signature. In television, it refers to the placement of characters, props, scenery, and product elements, the location and angle of the camera, and the use of lighting.
Association of National Advertisers (ANA)
An organization composed of 400 major manufacturing and service companies that are clients of member agencies of the AAAA. These companies, which are pledged to uphold the ANA code of advertising ethics, work with the ANA through a joint Committee of Improvement of Advertising Content.
Creative boutique
An organization of creative specialists (such as art directors, designers, and copywriters) who work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages, and specialized art. A boutique performs only the creative work.
Audit Bureau of Circulations (ABC)
An organization supported by advertising agencies, advertisers, and publishers that verifies circulation and other marketing data on newspapers and magazines for the benefit of its members.
Media-buying service
An organization that specializes in purchasing and packaging radio and television time.
Competitive Strategy
An organization-wide strategy designed to increase a firm's performance within the marketplace in terms of its competitors.
marketing
An organizational function and a set of processes for creating, communicating, and delivering value to customers and managing customer relationships
Outdoor advertising
An out-of-home medium in the form of billboards.
Transit advertising
An out-of-home medium that actually includes three separate media forms: inside cards: outside posters: and station, platform, and terminal posters.
Message theme
An outline of the key ideas in the ad
Generic Strategy
An overall directional strategy at the business level.
Value Network
An overarching system of formal and informal relationships within which the firm participates to procure, transform, and enhance, and ultimately supply its offerings in final form within a market space. -Network Organization/Virtual Organization
Corporate-level Strategic Planning
An umbrella plan for the overall direction of the corporation developed above the SBU level.
What has the greatest level of credibility?
An unpaid celebrity speaking on behalf of a charity or other nonprofit
Competitive Scenario Analysis
Analyzing competitors using various scenarios to predict competitor behavior. -Strategies -Resources -Culture -Corporate obj's and goals -Strengths and weaknesses -Benchmarking
Premiums
Another product offered free for purchasing the brand targeted in the promotion
Print media
Any commercially published, printed medium, such as newspapers and magazines, that sells advertising space to a variety of advertisers.
Marketing Stakeholders
Any person or entity inside or outside a firm with whom marketing interacts, impacts, and is impacted by. -internal: employees, other business units -external: customers, vendors, gov, labor unions
Self-mailers
Any type of direct-mail piece that can travel by mail without an envelope. Usually folded and secured by a staple or a seal, self-mailers have a special blank space for the prospect's name and address.
Product
Anything that delivers value to satisfy a need or want and includes physical goods, services, events, people, places, organizations, information, and ideas.
Contests and Sweepstakes
Appeal to consumers' sense of fun and luck, may suggest a purchase but legally must be offered w/out purchase requirement
Reverse knockout
Area within a field of printed color in a page that is free of ink and allows the paper's surface to show.
Web design house
Art/computer studios that employ specialists who understand the intricacies of HTML and Java programming languages and can design ads and Internet Web pages that are both effective and cost efficient.
Individual brand
Assigning a unique name to each product a manufacturer produces.
AIDA Model
Attention (cognitive, learn, inform) > Interest > Desire (affective, feel, persuade) > Action (behavioral, do, persuade)
What type of executional framework is illustrated by an endorsement in Consumer Reports?
Authoritative
What is "effective frequency?"
Average number of times a person must see or hear a message before it becomes effective.
According to the hierarchy of effects model, what is the 1st step in a purchase decision?
Awareness
Where do you place a complain about a health club being unsafe or unclean?
BBB
Demographic segmentation
Based on a population's statistical characteristics such as sex, age, ethnicity, education, occupation, income, or other quantifiable factors.
For financially-based incentives to be successful to encourage online purchases, the incentives should:
Be meaningful to those visiting the website and be changed periodically
non government regulation
Better business bureau, national advertising review council, media regulation, consumer group regulation, self regulation
Postcards
Cards sent by advertisers to announce sales, offer discounts, or otherwise generate consumer traffic.
Why is it better for industry-based agencies to resolve ad complaints rather than government agencies, such as FTC?
Cases are normally heard sooner and at a lower cost.
Rebate
Cash refunds on items from cars to household appliances.
Digital media
Channels of communication that join the logic of multimedia formats with the electronic system capabilities and controls of modern telephone, television, and computer technologies.
Data access
Characteristic of a database that enables marketers to manipulate, analyze, and rank all the information they possess in order to make better marketing decisions.
preemptive message strategy
Claim of superiority based on a product's specific attribute or benefit, which can't be claimed by a competitor.
Vertical cooperative advertising
Co-op advertising in which the manufacturer provides the ad and pays a percentage of the cost of placement.
A person who reasons a Kenmore fridge is the best quality uses what component of attitude?
Cognitive
Formal research
Collecting primary data directly from the marketplace using qualitative or quantitative methods.
Marketing Intelligence
Collecting, analyzing, and storing data from the macro environment on a continuous basis.
Bleeds
Colors, type, or visuals that run all the way to the edge of the page.
Geodemographic segmentation
Combining demographics with geographic segmentation to select target markets in advertising.
Spots
Commercials on the radio.
Nonverbal
Communication other than through the use of words, normally visual.
Regional advertisers
Companies that operate in one part of the country and market exclusively to that region.
National advertiser
Company that advertises in several geographic regions or throughout the country.
Art studio
Company that designs and produces artwork and illustrations for advertisements, brochures, and other communication devices.
Media commission
Compensation paid by a medium to recognized advertising agencies, usually 15 percent (16 2/3 percent for outdoor), for advertising placed with it.
Attitude Sequence for Conative Message Strategies
Conative--cognitive--affective
Primary demand
Consumer demand for a whole product category.
Selective demand
Consumer demand for the particular advantages of one brand over another.
Transnational (global) markets
Consumer, business, and government markets located in foreign countries
Early adopters
Consumers willing to try new things
Stability
Continue current activities with little significant change in direction. -can be useful in short term but potentially dangerous in the long term
Dupes
Copies of a finished television commercial that are delivered to the networks or TV stations for airing.
Copy points
Copywriting themes in a product's advertising.
Market prep corporate advertising
Corporate advertising that is used to set the company up for future sales; it simultaneously communicates messages about the products and the company.
Multinational corporation
Corporation operating and investing throughout many countries and making decisions based on availabilities worldwide.
Costs
Cost per thousand (CPM) CPM allows for cost comparisons
Freestanding insert (FSI)
Coupons distributed through inserts in newspapers.
Product positioning
Creating a perception in the consumer's mind regarding the nature of a company and its products relative to its competitors
Customer Satisfaction =
Customer loyalty, customer retention, and low customer switching
Customer Marketing
Customer share, lifetime value, model distribution, ongoing refinement, multiple treatments, focust on customer, breadth of relationships, even driven -Technologies: data warehouse, integrated data and applications, customer knowledge, modeling, analysis, and refinement process
Volume segmentation
Defining consumers as light, medium, or heavy users of products.
What is "Volume Segmentation?"
Defining consumers as light, medium, or heavy users of products. (How much they use products) (Usage rates)
Audience objectives
Definitions of the specific types of people the advertiser wants to reach.
Causal Research
Descriptive research designed to identify associations between variables. -experiments
Marketing Metrics
Designed to identify, track, evaluate, and provide key benchmarks for improvement. Why focus? -fuzzy field -can't be measured -CEO's and stockholders expect mktg accountability -expense or investment?
Wants
Desires learned during a person's lifetime
Perceptible differences
Differences between products that are visibly apparent to the consumer.
What is one problem associated with refund and rebate programs?
Diminished effectiveness
60% of a typical direct marketing budget is used for:
Direct Response Advertising
Volume discount
Discount given to advertisers for purchasing print space or broadcast time in bulk quantities.
Process of developing strong brand begins with:
Discovering why consumers buy a brand and why they rebuy a brand
Point-of-purchase Materials
Displays set up in a retail store to support adv. and remind customers to purchase
Induced differences
Distinguishing characteristics of products effected through unique branding, packaging, distribution, merchandising, and advertising.
Market Segmentation
Dividing a market into meaningful smaller markets or submarkets based on common characteristics.
Psychographic Segmentation
Dividing consumer groups based on variables such as personality and AIO's (activities, interests, and opinions).
Indirect Foreign Marketing
Doing business with international customers through intermediaries or limited direct contact. -no formal channel relationships or global marketing strategy
Dubs
Duplications of radio commercials made from the master tapes and sent to stations for broadcast.
Digital interactive media
Electronic channels of communication—including online databases, the Internet, CD-ROMs, and stand-alone kiosks—with which the audience can participate actively and immediately.
branded entertainment
Embedding one's brand or brand icons as part of any entertainment property (e.g., a sporting event) in an effort to impress and connect with consumers in a unique and compelling way.
What type of appeal did the "Priceless" campaign use?
Emotional
Motives
Emotions, desires, physiological needs, or similar impulses that may incite consumers to action.
Current Marcom Trend
Emphasis on accountability and measurable results
Primary benefit for the scarcity appeal is it:
Encourages consumer action
Viral Marketing
Entertaining and informative messaging created by a firm intended to be passed among individuals and delivered through online and other media channels. -Measuring success -Connect people to the experience (tastemaker, part of online community, unexpectedness) -Target younger demographic -Social Media
Wholesaler
Entity primarily engaged in buying, taking title to, sorting, and physically handling goods in large quantities. -resells goods (in smaller quantities) to retailers or to organizational buyers.
Retailer
Entity primarily engaged in selling to en-user consumers. -where end consumers buy products, online and brick&mortar
Facilitating Agent
Entity that assists in the performance of distribution tasks other than buying, selling, and transferring title. -anyone that facilitates distribution -trucking companies, warehouses, importers
Recency planning
Erwin Ephron's theory that most advertising works by influencing the brand choice of consumers who are ready to buy, suggesting that continuity of advertising is most important.
Target Segmentation
Evaluating market segments and making a decision about which among them shows the most promise for development.
Company conventions and dealer meetings
Events help by manufacturers to introduce new products, sales promotion programs, or advertising campaigns.
Direct selling
Face-to-face selling away from a fixed retail location. Usually refers to a method of marketing consumer goods—everything from encyclopedias and insurance to cosmetics and nutritional products.
Which agency has the authority to order corrective ads?
Federal Trade Commission (FTC)
Display allowance
Fees paid to retailers to make room for and set up manufacturers' displays.
Slotting allowance
Fees that manufacturers pay to retailers for the privilege of obtaining shelf or floor space for a new product.
One-to-one Marketing
Firms should direct energy and resources into establishing a learning relationship with each customer and them connect that knowledge with the firm;s production and service capabilities to fulfill that customer's needs in as custom a manner as possible. -Mass customization
Creative director
Heads a creative team of agency copywriters and artists that is assigned to a client's business; is ultimately responsible for the creative product—the form the final ad takes.
Boldface
Heavier type.
what sorts of products would likely lead the purchaser to take the "Central Route" to persuasion?
Higher level of involvement with the product. Learn more about the ad etc. Marheters can persuade consumers. Functionally or psychologically. People are likely to take this route when they have little distracting them and they are truly interested in what the persuasive communication has to say. Athletic shoes for athletes- golf clubs for golfers etc.
Television households (TVHH)
Households with TV sets.
Distribution element
How and where customers will buy a company's product; either direct or indirect distribution.
Maslow's Hierarchy of Needs Theory
Humans have wants and needs that influence their behavior. People advance only to the next level if the lower needs are meet. 1. Physiological 2. Safety 3. Love/Social 4. Self-Esteem 5. Self-Actualization
message
Idea that has been encoded
Hidden differences
Imperceptible but existing differences that may greatly affect the desirability of a product.
Publics
In PR terminology, employees, customers, stockholders, competitors, suppliers, or general population of customers are all considered one of the organization's publics.
Control room
In a recording studio, the place where the producer, director, and sound engineer sit, monitoring and controlling all the sounds generated in the sound studio.
Audio console (board)
In a sound studio control room, the board that channels sound to the appropriate recording devices and that blends both live and prerecorded sounds for immediate or delayed broadcast.
Trial close
In ad copy, requests for the order that are made before the close in the ad.
Halo effect
In ad pretesting, the fact that consumers are likely to rate the one or two ads that make the best first impression as the highest in all categories.
Money
In media planning, one of the five elements in the media mix.
Full position
In newspaper advertising, the preferred position near the top of a page or on the top of a column next to reader matter. It is usually surrounded by editorial text and may cost the advertiser 25 to 50 percent more than ROP rates.
Frequency discount
In newspapers, advertisers earn this discount by running an ad repeatedly in a specific time period.
Message
In oral communication, the idea formulated and encoded by the source and sent to the receiver.
Lead-in paragraph
In print ads, a bridge between the headlines, the subheads, and the sales ideas presented in the text. It transfers reader interest to product interest.
Reputation management
In public relations, the name of the long-term strategic process to manage the standing of the firm with various publics.
Point
In retailing, the place of business. In typography, the measurement of the size and height of a text character. There are 72 points to an inch.
Points
In retailing, the places of business. In typography, the measurement of the size and height of a text character. There are 72 * to an inch.
Electronic coupon
In supermarkets, the use of frequent-shopping cards that automatically credit cardholders with coupon discounts when they check out. Also using touchscreen videos at the point of purchase, instant-print discounts, rebates, and offers to try new brands.
Voice-over
In television advertising, the spoken copy or dialogue delivered by an announcer who is not seen but whose voice is heard.
Developmental stage
In the agency-client relationship, the honeymoon period when both agency and client are at the peak of their optimism and are most eager to quickly develop a mutually profitable mechanism for working together.
Maintenance stage
In the client-agency relationship, the day-to-day interaction that, when successful, may go on for hours.
Price element
In the marketing mix, the amount charged for the good or service—including deals, discounts, terms, warranties, and so on. The factors affecting price are market demand, cost of production and distribution, competition, and corporate objectives.
Job jacket
In the preproduction phase, a place to store the various pieces of artwork and ideas that will be generated throughout the process.
Digital video effects (DVE) units
In video, special-effects equipment for manipulating graphics on the screen to produce fades, wipes, zooms, rotations, and so on.
Multiple-purchase Offers
Incentive to buy more of the brand at a special price
Communication element
Includes all marketing-related communications between the seller and the buyer.
Customer Profitability
Increase individual customer margins while offering the right products at the right time.
What is NOT an objective of sponsorships?
Increase sales
Middlemen
Independent business entity that links producers and end-user consumers or organizational buyers. -buys rights to product, take title of goods
Market Maven
Individuals who have info about many kinds of products, places to shop, and other facets of marketers, and initiate discussions with consumers and respond to requests from consumers for market info.
Opinion Leader
Individuals with expertise in certain products or technologies who classify, explain, and then bestow info to a broader audience.
Consumer goes through 5 step process =
Influence: -4P's -External Influence -Internal Influence -Environmental Influences
Secondary data
Information that has previously been collected or published.
Consumer magazines
Information- or entertainment-oriented periodicals directed toward people who buy products for their own consumption.
Lobbying
Informing government officials and persuading them to support or thwart administrative action or legislation in the interests of some client.
Kiosk
Interactive computer in a stand-alone cabinet that makes information available 24 hours a day even in remote areas.
One-to-one Marketing
Interactive segmentation, real time matching, interactive tv, active web pages, customer interaction, one-to-one relationships, real time marketing, prediction driven Technologies: integrated data warehouse, internet enabled, many touchpoints integrated, cross organization process, mgmt by interaction
House organs
Internal and external publications produced by business organizations, including stockholder reports, newsletters, consumer magazines, and dealer publications. Most are produced by a company's advertising or public relations department or by its agency.
decoding
Interpreting message determined by the worldview of interpreter
In what stage will a marketer most likely need to establish primary demand?
Introductory stage(Pioneering phase) -Stage has high advertising costs due to the need for awareness.
Market Penetration Strategies
Investing in existing customers to gain additional usage of existing products
Relationship Orientation
Investing in keeping and cultivating profitable current customers instead of constantly having to invest in gaining new ones. -Related to CRM
Creativity
Involves combining two or more previously unconnected objects or ideas into something new.
What is "effective reach?"
It measures the number or percentage of the audience who receive enough exposure to understand the message
Co-branding
Joins two or more brands in a common product or takes two brands and markets them in partnership. -Microsoft and Intel
Horizontal cooperative advertising
Joint advertising effort of related businesses (car dealers, realtors, etc.) to create traffic for their type of business.
Folders
Large, heavy-stock fliers, often folded and sent out as self-mailers.
Picture-window layout
Layout that employs a single, dominant visual that occupies between 60 and 70 percent of an advertisement's total area.
Ayer No. 1
Layout that employs a single, dominant visual that occupies between 60 and 70 percent of an advertisement's total area. Also known as poster-style format.
Prospecting for Customers
Leads>Prospects>Qualifying prospects (should be profitable) -Outbound telemarketing (cold calling, from co.) -Inbound telemarketing (1-800's you call for more info)
Attitude
Learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. -learned, can be changed over time -influenced by value system, beliefs
Logistics Mgmt and Supply Chain Mgmt(handout)
Logistics Mgmt (mgmt of the flow of goods, moving things from A to B) > inbound logistics and outbound logistics (suppliers>producer>consumers) > supplier network and marketing channel > supply chain mgmt (managing the processes in the supply chain)
Customer Retention
Low propensity among a firm's customer base to consider switching to other providers.
Customer Retention
Low propensity among a firm's customer base to consider switching to other providers. -retain satisfied loyal customers that are profitable in the long run
3-D ad
Magazine ads requiring the use of 3-D glasses.
Custom magazines
Magazine-length ads that look like regular magazines but are created by advertisers. They are sold at newsstands and produced by the same companies that publish traditional magazines.
Which type of ad has the longest life?
Magazines
Farm publications
Magazines directed to farmers and their families or to companies that manufacture or sell agricultural equipment, supplies, and services.
Regional publications
Magazines targeted to a specific area of the country, such as the West of the South.
National magazines
Magazines that are distributed throughout a country.
Demographic editions
Magazines that reach readers who share a demographic trait, such as age, income level, or professional status.
Geographic editions
Magazines that target geographic markets and have different rates for ads.
Curing the consumer's internal search process, what is a likely objective for creatives and brand managers?
Make sure the company's brand is part of the consumer's set of potential alternatives
The goal of generic message strategy is to:
Make the brand synonymous with the product category
Function of the decision business buying process?
Makes the final decisions and secures budget authorization
Print production manager
Manager who oversees the entire production process, including reproduction of visuals in full color, shooting and editing of scenes, precise specification and placement of type, and the checking, approving, duplicating, and shipping final art, negatives, tape, or film to the communication media.
Management (account) supervisors
Managers who supervise account executives and who report to the agency's director of account services.
Customer-centric
Market orientation -internal service quality 1. org-wide focus on understanding customer's requirements 2. generate and disseminate an understanding of the market place 3. align system capabilities internally
Mass Marketing
Market share, individual sales, limited segmentation, huge campaigns, not cost-effective, single treatments, focus on transactions, number of relationships -Technologies: in-house, outsourced mailings, flat files/mailing lists, some packaged applications
Personal communication
Marketing activities that include all person-to-person contact with customers.
Nonpersonal communication
Marketing activities that use some medium as an intermediary for communication, including advertising, direct marketing, public relations, collateral materials, and sales promotion.
Rational appeal
Marketing appeals that are directed at the consumer's practical, functional need for the product or service.
Sales-target objective
Marketing objectives that relate to a company's sales. They should be specific as to product and market, quantified as to time and amount, and realistic. They may be expressed in terms of total sales volume; sales by product, market segment, or customer type; market share; growth rate of sales volume, or gross profit.
Push strategies
Marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers, retailers, and salespeople. Inducements might include introductory price allowances, distribution allowances, and advertising dollar allowances to stock the product and set up displays.
Push strategy
Marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers, retailers, and salespeople. Inducements might include introductory price allowances, distribution allowances, and advertising dollar allowances to stock the product and set up displays.
Pull strategies
Marketing, advertising, and sales promotion activities aimed at inducing trial purchase and repurchase by consumers.
Pull strategy
Marketing, advertising, and sales promotion activities aimed at inducing trial purchase and repurchase by consumers.
Consumer sales promotion
Marketing, advertising, and sales promotion activities aimed at inducing trial, purchase, and repurchase by the consumer. (also called pull strategy)
Hierarchy of needs
Maslow's theory that the lower biological or survival needs are dominant in human behavior and must be satisfied before higher, socially acquired needs become meaningful
Point-of-purchase (P-O-P) materials
Materials set up at a retail location to build traffic, advertise the product, and promote impulse buying. Materials may include window displays, counter displays, floor and wall displays, streamers, and posters.
In what stage of the product life cycle does the marketplace becomes saturated with competing products?
Maturity stage
Growth
May be in the form of sales, market share, assets, profits, or some combo of these and other factors. -Concentration: vertical or horizontal integration -Diversification: concentric or conglomerate means
channel
Means by which message travels
GRP
Measure of impact or intensity of a media plan
International media
Media serving several countries, usually without change, available to an international audience.
Psychographic segmentation
Method of defining consumer markets based on psychological makeup—values, attitudes, personality, and lifestyle.
Behavioristic segmentation
Method of determining market segments by grouping consumers into groups based on their purchase behavior.
Geo-demographics
Method of market segmentation used by applied microbiology when combining geographic area data for dairy farmers with demographic and psychographic info
Clutter test
Method of pretesting in which commercials are grouped with noncompetitive control commercials and shown to prospective customers to measure their effectiveness in gaining attention, increasing brand awareness and comprehension, and causing attitude shifts.
Benefit segmentation
Method of segmentation consumers based on the benefits being sought.
North American Industry Classification System (NAICS) codes
Method used by the U.S. Department of Commerce to classify all businesses. The NAICS codes are based on broad industry groups, subgroups, and detailed groups of firms in similar lines of business.
Jobber
Middleman that buys from manufacturers and sells to retailers. -truck jobber (truck driver, moves products) and rack jobber (stock shelves, some work fro distributors, manufacturers)
Merchant Middlemen
Middlemen that buys goods outright, taking title to them -take title of the merchant (producer)
Pulsing
Mixing continuity and fighting strategies in media scheduling.
Trade concentration
More products being sold by fewer retailers.
Local city magazine
Most major U.S. cities have one of these publications. Typical readership is upscale, professional people interested in local arts, fashion, and business.
Global marketers
Multinationals that use a standardized approach to marketing and advertising in all countries.
In the buying process, what takes the most time to complete and involves the highest # of people?
New task purchase
Disruptive Innovation
New to the world products that are so innovative they create a fundamental change in the marketplace. -something that will cause a change in your behavior (electric cars)
Sustaining Innovation
Newer, better, faster versions of existing products that target existing customers. -can be modifications to existing products -micro changes, very little changes in behavior (2011 model to 2012 model)
Preprinted insert
Newspaper advertisement printed in advance by the advertiser and then delivered to the newspaper plant to be inserted into a specific edition. Preprints are inserted into the fold of the newspaper and look like a separate, smaller section of the paper.
Weekly newspaper
Newspaper that is published once a week and characteristically serves readers in small urban or suburban areas or farm communities with exclusive emphasis on local news and advertising.
Classified ad
Newspaper, magazine, and now Internet advertisements usually arranged under subheads that describe the class of goods or the need the ad seeks to satisfy. Rates are based on the number of lines the ad occupies. Most employment, housing, and automotive advertising is in the form of *.
Classified advertising
Newspaper, magazine, and now Internet advertisements usually arranged under subheads that describe the class of goods or the need the ads seek to satisfy. Rates are based on the number of lines the ad occupies. Most employment, housing, and automotive advertising is in the form of classified advertising.
Bulk discount
Newspapers offer advertisers decreasing rates (calculated by multiplying the number of inches by the cost per inch) as they use more inches.
Continuous tones
Normal photographic paper produces images in black and white with shades of gray in between.
Product Depth
Number of different product items within a product category. -Assortment
Product Breadth
Number of product categories offered by a retailer. -Variety
Salesforce Size: Workload Method
Number of sales people = number of accounts X call frequency X call length / avg selling time (1400) (all in hours)
Sampling
Offering consumers a free trial of the product, hoping to convert them to habitual use.
Daily newspaper
Often called dailies, these newspapers are published at least five times a week, in either morning of evening editions.
Mass audience venue
One category of digital media based on audience size, where hundreds of people are in the live audience and millions more are watching at home.
Mechanics
One of the five Ms of the media mix; dealing creatively with the available advertising media options.
Technical
One of the three components of the message strategy, it refers to the preferred execution approach and mechanical outcome including budget and scheduling limitations.
Differentiation
Organization competes on the basis of providing unique goods or services with features that customers value, perceive as different, and for which they are willing to pay a premium.
International structure
Organization of companies with foreign marketing divisions, typically decentralized and responsible for their own product lines, marketing operations, and profits
Focus (niche)
Organization pursues either a cost of differentiation advantage, but in a limited or narrow customer group. -concentrates on serving a specific market niche
Cost Leadership
Organization strives to have the lowest costs in its industry and produces goods and services for a broad customer base. -emphasis on COST, not prices
Business markets
Organizations that buy natural resources, component products, and services that they resell, use to conduct their business, or use to manufacture another product.
Network Organization/Virtual Organization
Organizations that eliminate many in-house business functions and activities in favor of focusing only on those aspects for which they are best equipped to add value.
Brand Assets
Other assets brands possess such as trademarks and patents that represent a significant competitive advantage.
Communication objectives
Outcomes that can reasonably be associated with promotional activities, such as increases in brand recognition or awareness, increased comprehension of a brand's attributes or benefits, more positive attitudes about a brand or a more favorable image of the brand or its typical user, and stronger intentions to try or buy a brand.
generally speaking, sales promotion is intended to intervene in which parts of the consumer buying process?
PURCHASE
Media vehicles
Particular media programs or publications.
Residual fee
Payment to the talent if the commercial is extended beyond its initially contracted run.
Supplier
People and organization that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production.
Prospective customers
People who are about to make a purchase or are considering it
Copywriter
People who create the words and concepts for ads and commercials.
Advertising manager
Performs the administrative, planning, budgeting, and coordinating functions.
Fragrance strip
Perfume samples included in sealed inserts in magazines.
recipient
Person receiving message
Media buyer
Person responsible for negotiating and contracting the purchase of advertisement space and time in various media.
In branding, what is a "private label?"
Personalized brands applied by distributors or dealers to products supplied by manufacturers. Private brands are sold at lower prices in large retail chain stores. (Wal-mart=craftsman)--They now account for almost 20% of grocery purchases. (Greatvalue etc)
Private labels
Personalized brands applied by distributors or dealers to products supplied by manufacturers. Private brands are typically sold at lower prices in large retail chain stores.
Customer-centric Culture
Placing the customer at the core of the enterprise and focusing on investments in customers over the long term. -Adopting relationship or partnership business model -Redefine selling role to focus on customer business consultation and solutions -Increase formalization of customer analysis processes -Proactive leadership role in educating customers by forming relationship -Continuous improvement principles, stressing customer satisfaction and loyalty
SBU-level Strategic Planning
Planning that occurs within each of the firm's SBU's designed to meet individual performance requirements and contribute satisfactorily to the overall corporate plan.
Functional-level Plans
Plans for each business function that makes up one of the firm's SBU's.
Halftone plate
Plate that prints dots, the combination of which, when printed, produces an optical illusion of shading as in a photograph.
Competitive Analysis
Porter's 5 forces -Potential Entrants: threat of mobility -Supplier: supplier power -Buyers: buyer power -Substitutes: threat of substitutes -Industry Competitors: segment rivalry
Transformational
Positively originated motives that promise to "transform" the consumer through sensory gratification, intellectual stimulation, and social approval (also called reward methods).
Recall test
Posttesting methods used to determine the extent to which an advertisement and its message have been noticed, read, or watched.
Multimedia presentation
Presenting information or entertainment using several communications media simultaneously.
_____ is a core component of value
Price -value: benefits exceed costs -price is a key determinant of perceived value
Four Ps (4Ps)
Price, Promotion, Product, Place
Free Standing Inserts (FSI)
Primary vehicle for distributing print coupons and coupons in general
Porter's Value Chain
Primary: inbound logistics, operations, outbound logistics, marketing and sales, service Support: firm infrastructure, human resource mgmt, tech development, procurement -primary activities generate revenues
Giveaways
Prizes or gifts that customers receive when purchasing products
National brand
Product brands that are marketed in several regions of the country.
marketing mix
Product, Place, Promotion, Price; factors that increase potential of exchange with customers
National Brand
Products created, manufactured, and marketed by a company and sold to retailers around the country and the world.
Unsought Goods
Products that consumers do not seek out and often would rather not purchase at all.
Shopping Goods
Products that require consumers to do research and compare across product dimensions like color, size, features, and price.
Product life cycle
Progressive stages in the life of a product—including introduction, growth, maturity, and decline—that affect the way a product is marketed and advertised.
Where does Marcom belong in the marketing mix?
Promotion
Trade Promotions
Promotions that help a manufacturer push a product through the channel
TV pros and cons
Pros -combines multimedia, appeals to multiple senses, works for mass coverage or selected mkts, infomercial option Cons -impressions are fleeting, short shelf life, clutter of competing ads, TiVo effect (cutting ads), high cost
Newspapers pros and cons
Pros -flexible, timely, highly credible medium Cons -short shelf life, big city/national papers are costly, poor reproduction quality, low pass-along rate
Radio pros and cons
Pros -quick placement, high message immediacy, easy selectivity by market and station, low cost, geographic flexibility Cons -audio only, short shelf life, clutter of competing ads
According to Direct Marketing Assoc. about 60% of a typical direct marketing budget is used for:
Prospecting new customers
Retrenchment
Pulling assets out of underperforming parts of the business and reinvesting in aspects of the business with greater future performance potential.
Diverting
Purchasing large quantities of an item at a regional promotional discount and shipping portions to areas of the country where the discount isn't being offered.
Spiffs
Push money.
Trade promotion
Push strategy.
Push v. Pull Strategies
Push: incentives from producers to retailers Pull: incentives given to consumers from producers
Intensive techniques
Qualitative research aimed at probing the deepest feelings, attitudes, and beliefs of respondents through direct questioning. Typical methods include in-depth interviews and focus groups.
Electronic media
Radio and television, which may be transmitted electronically through wires or broadcast through the air.
Nielsen Ratings
Rating= number of household turned to a program / total number of households in a market
DAGMAR
The acronym stands for Defining Advertising Goals for Measured Advertising Results. DAGMAR is a planning tool for setting communications objectives for a campaign.
Art direction
The act or process of managing the visual presentation of an ad or commercial.
Core Competencies
The activities a firm can do exceedingly well.
Talent
The actors in commercials.
Sample unit
The actual individuals chosen to be surveyed or studied.
Instrumental Performance
The actual performance features of the product in terms of what it was promised to do.
Mandatories
The address, phone number, Web address, etc., that the advertiser usually insists be included within an ad to give the consumer adequate information.
Benefit
The advantageous outcome from the advantage found in a product feature.
Trade advertising
The advertising of goods and services to middlemen to stimulate wholesalers and retailers to buy goods for resale to their customers or for use in their own businesses.
Just Noticeable Difference (JND)
The amount of price increase that cam be taken without impacting customer demand.
Organizational Learning
The analysis and refinement phase of the CRM process that is based on customer response to the firm's implementation strategies and programs.
Typography
The art of selecting, setting, and arranging type.
Illustrator
The artist who paints, sketches, or draws the pictures we see in advertising.
Photographer
The artist who uses cameras to create visuals for advertisements.
What has shifted channel power from manufacturers to consumers?
The availability of information about goods and services via the internet
Effective frequency
The average number of times a person must see or hear a message before it becomes effective.
Live action
The basic production technique in television that portrays real people and settings, as opposed to animation.
Column inch
The basic unit by which publishers bill for advertising. It is one vertical inch of a column. Until 1984, the column width in newspapers varied greatly. In 1984, the column width in newspapers varied greatly. In 1984, the industry introduced the standard advertising unit (SAU) system, which standardized newspaper column width, page sizes, and ad sizes. Today, most newspapers—and virtually all dailies—have converted to the SAU system. A SAU column inch is 2 1/16 inches wide by 1 inch deep.
Corporate advertising
The broad area of nonproduct advertising aimed specifically at enhancing a company's image and increasing lagging awareness.
Product Mix
The combination of all the products offered by a firm. -Windows, Office, Search Engine...
Brand
The combination of name, words, symbols, or design that identifies the product and its source and distinguishes it from competing products—the fundamental differentiating device for all products.
Value Co-creation
The combining of capabilities among member of a value network to create value. -whole is greater than the sum
Positioning
The communication of sources of value to customers so they can easily make the connection between their needs and wants and what the product has to offer.
Apology strategies most often used by companies
The company violation was minor or the company can't escape being found guilty.
Societal Marketing
The concept that members of society at large can be viewed as marketing stakeholders. -green marketing -taking care of community -Corporate social responsibility
Product concept
The consumer's perception of a product as a "bundle" of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs. Also, as an element of the creative mix used by advertisers to develop advertising strategy, it is the bundle of product values the advertiser presents to the consumer.
Perceived Quality
The conveys perception of quality of a brand that is either positive or negative.
Database
The corporate memory of all important customer information: name and address, telephone number, NAIC code (if a business firm), source of inquiry, cost of inquiry, history of purchases, and so on. It should record every transaction across all points of contact with both channel members and customers.
Cost efficiency
The cost of reaching the target audience through a particular medium as opposed to the cost of reaching the medium's total circulation.
Family Branding
The creation of brands that have synergy between them in terms of the overall company brand. -Toyota Camry, Toyota Carolla, Toyota Highlander....
Conceptualization
The creative point in advertising where the search for the "big idea" takes place. It includes the task of analyzing the problem, assembling any and all pertinent information, and developing some verbal or visual concept of how to communicate what needs to be said.
Visualization
The creative point in advertising where the search for the "big idea" takes place. It includes the task of analyzing the problem, assembling any and all pertinent information, and developing some verbal or visual concept of how to communicate what needs to be said.
All internal organizational processes and systems must be aligned around __________.
The customer
On-sale date
The date a magazine is actually issued.
Cover date
The date printed on the cover of a publication.
Creative Brief
The document that ad types may "overemphasize" but nevertheless is an important element in the IMC plan to execute the creative
In kind
The donation of goods and services as payment for some service such as a sponsorship.
Continuity
The duration of an advertising message or campaign over a given period of time.
Mixed interlock
The edited version of a filmed television commercial mixed with the finished sound track. Used for initial review and approval prior to being duplicated for airing.
Five Ms
The elements of the media mix that includes markets, money, media, mechanics, and methodology.
Termination stage
The ending of a client-agency relationship.
Decentralized system
The establishment of advertising departments by products or brands or in various divisions, subsidiaries, countries, regions, or other categories that suit the firm's needs, which operate with a major degree of independence.
In an ad, which part is the plot or scenario that is used to convey a message?
The executional framework
Usage rates
The extent to which consumers use a product: light, medium, or heavy.
Answer print
The final print of a filmed commercial, along with all the required optical effects and titles, used for review and approval before duplicating.
Master tape
The final recording of a radio commercial, with all the music, sound, and vocals mixed, from which dubs (duplicates) are recorded and sent to radio stations for broadcast.
Postproduction phase
The finishing phase in commercial production—the period after recording and shooting when a radio or TV commercial is edited and sweetened with music and sound effects.
Base art
The first image on an art board on which as overlay may be placed.
Work print
The first visual portion of a filmed commercial assembled without the extra effects or dissolves, titles, or supers. At this time, scenes may be substituted, music and sound effects added, or other changes made.
Big idea
The flash of creative insight—the bold advertising initiative—that captures the essence of the strategy in an imaginative, involving way and brings the subject to life to make the reader stop, look, and listen.
Essential Benefit
The fundamental need met by a product.
Publicity
The generation of news about a person, product, or service that appears in broadcast or print media.
Federal Trade Commission
The governmental agency given authority to stop unfair and deceptive ad practices, levy fines, and enforce their decision in court
Benefits
The gratifications or relief from problems offered by a particular brand, product, or service.
Audience
The group of people exposed to a particular medium.
Psychographics
The grouping of consumers into market segments on the basis of psychological makeup—values, attitudes, personality, and lifestyle.
In-store sampling
The handing out of free product samples to passing shoppers.
Open rate
The highest rate for a one-time insertion in a newspaper.
Symbolic Performance
The image-building aspects of the product in terms of how it makes the consumer feel after purchase.
Market Orientation
The implementation of the marketing concept, based on an understanding of customers and competitors. -The implementation of the marketing concept -Customer orientation-placing the customer at the core of all aspects of the enterprise
Brand manager
The individual within the advertiser's company who is assigned the authority and responsibility for the successful marketing of a particular brand.
Introductory phase
The initial phase of the product life cycle (also called the pioneering phase) when a new product is introduced, costs are highest, and profits are lowest.
Prerelationship stage
The initial stage in the client-agency relationship before they officially do business.
Touchpoint
The intersection of a selling firm with a customer via a media channel.
Business magazines
The largest category of magazines, they target business readers and include: trade publications for retailers, wholesalers, and other distributors; industrial magazines for businesspeople involved in manufacturing and services; and professional journals for lawyers, physicians, architects, and other professionals.
Marketing Management
The leading and managing of the facets of marketing to improve individual, unit, and organizational performance.
Customer Satisfaction
The level of liking an individual harbors for an offering.
Account executives (AEs)
The liaison between the agency and the client. The account executive is responsible both for managing all the agency's services for the benefit of the client and for representing the agency's point of view to the client.
Product Life Cyle
The life of a product as identified in 4 stages: introduction, growth, maturity, and decline.
Foreign media
The local media of each country used by advertisers for campaigns targeted to consumers or businesses within a single country.
Public relations (PR)
The management function that focuses on the relationships and communications that individuals and organizations have with other groups (called publics) for the purpose of creating mutual goodwill. The primary role of public relations is to manage a company's reputation and help build public consent for its enterprises.
Target market
The market segment or group within the market segment toward which all marketing activities will be directed.
Family brand
The marketing of various products under the same umbrella name.
Lifetime Value
The measurement of the important business success factors related to long term relationships with customers.
Kerning
The measurement of the space between individual letters of text.
Leading
The measurement of the space between separate lines of text.
Direct distribution
The method of marketing in which the manufacturer sells directly to customers without the use of retailing (Use of sales reps)
Direct distribution
The method of marketing in which the manufacturer sells directly to customers without using one of the commercial media forms.
Market Research
The methodical identification, collection, analysis, and distribution of data related to discovering then solving marketing problems or opportunities and enhancing good decision making.
Advertising strategy
The methodology advertisers use to achieve their advertising objectives. The strategy is determined by the particular creative mix of advertising elements the advertise selects, namely: target audience; product concept; communications media; and advertising message. Also called the creative mix.
Brand Awareness
The most basic form of brand equity is simply being aware of the brand. Awareness is the foundation of all other brand relationships.
Sales letters
The most common form of direct mail. Sales letters may be typewritten, typeset and printed, printed with a computer insert (such as your name), or fully computer typed.
Product element
The most important element of the marketing mix: the good or service being offered and the values associated with it—including the way the product is designed and classified, positioned, branded, and packaged.
Serif
The most popular type group that is distinguished by smaller lines or tails called serifs that finish the ends of the main character strokes and by variations in the thickness of the strokes.
Informational
The negatively originated motives, such as problem removal or problem avoidance, that are the most common energizers of consumer behavior.
Distribution channel
The network of all the firms and individuals that take title, or assist in taking title, to the product as it moves from the producer to consumer.
Guaranteed circulation
The number of copies of a magazine that the publisher expects to sell. If this figure is not reached, the publisher must give a refund to advertisers.
Secondary (pass-along) readership
The number of people who read a publication in addition to the primary purchasers.
Primary circulation
The number of people who receive a publication, whether through direct purchase or subscription.
Frequency
The number of times the same person or household is exposed to a vehicle in a specified time span. Across a total audience, frequency is calculated as the average number of times individuals or homes are exposed to the vehicles.
Straight announcement
The oldest type of radio or television commercial, in which an announcer delivers a sales message directly into the microphone or on-camera or does so off-screen while a slide or film is shown on-screen.
Marketing Planning
The ongoing process of developing and implementing market-driven strategies for an organization.
Aperture
The opening in a camera that determines the amount of light that reaches the film or videotape. To a media planner it refers to the place and time that a target audience is ready to attend to an ad message.
Departmental system
The organization of an ad agency into departments based on function: account services, creative services, marketing services, and administration.
Methodology
The overall strategy of selecting and scheduling media vehicles to achieve the desired reach, frequency, and continuity objectives.
Hook
The part of a jingle that sticks in your memory.
Primary motivation
The pattern of attitudes and activities that help people reinforce, sustain, or modify their social and self-image. An understanding of the primary motivation of individuals helps advertisers promote and sell goods and services.
Brand development index (BDI)
The percentage of a brand's total sales in an area divided by the total population in the area; it indicates the sales potential of a particular brand in a specific market area.
Category development index (CDI)
The percentage of a product category's total U.S. sales in an area divided by the percentage of total U.S. population in the area.
Rating
The percentage of homes or individuals exposed to an advertising medium.
Growth stage
The period in a product life cycle that is marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases.
Preproduction phase
The period of time before the actual recording or shooting of a commercial—the planning phase in commercial production.
Core Product
The physical, tangible elements that make up a product's essential benefit.
Marketing plan
The plan that directs the company's marketing effort. First, it assembles all the pertinent facts about the organization, the markets it serves, and its products, services, customers, and competition. Second, it forces the functional managers within the company to work together—product development, production, selling, advertising, credit, transportation—to focus efficiently on the customer. Third, it sets goals and objectives to be attained within specified periods of time and lays out the precise strategies that will be used to achieve them.
Press agentry
The planning of activities and the staging of events to attract attention to new products or services and to generate publicity about the company or organization that will be of interest to the media.
Tactics
The precise details of a company's marketing strategy that determine the specific short-term actions that will be used to achieve its marketing objectives.
Sponsorship
The presentation of a radio or TV program, or an event, or even a Web site by a sole advertiser. The advertiser is often responsible for the program content and the cost of production as well as the advertising. This is generally so costly that single sponsorships are usually limited to TV specials.
Tearsheet
The printed ad cut out and sent by the publisher to the advertiser as a proof of the ad's print quality and that it was published.
Market-driven Strategic Planning
The process at the corporate or SBU level of a firm that acts to marshal the various resource and functional areas toward a central purpose around the customer.
search marketing
The process of building and marketing a site with the goal of improving its position in search engine results. SEM includes both search engine optimization (SEO) and search advertising, or paid search
Integrated marketing communications (IMC)
The process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to make constructive contact with the company/brand through a variety of media.
Electronic production
The process of converting a script or storyboard into a finished commercial for use on radio, TV, or digital media.
Prepress phase
The process of converting page art and visuals into materials (generally film negatives and color separation) needed for printing.
Data management
The process of gathering, consolidating, updating, and enhancing the information about customers and prospects that resides in a company's database.
Customer Expectation Management
The process of making sure the firm does not set customer expectations so high that they cannot be effectively met on a consistent basis. -internal service quality, employee satisfaction, productivity, retention result in stronger value to extend customers of a service
Media planning
The process that directs advertising messages to the right people in the right place at the right time.
Line film
The product of a photograph shot with orthographic film which yields a high-contrast black-and-white image with no grey tones.
user generated content
The production of content by the general public rather than by paid professionals and experts in the field
Primary demand trend
The projection of future consumer demand for a whole product category based on past demand and other market influences.
Newspaper Association of America (NAA)
The promotional arm of the American Newspaper Publishers Association and the nation's newspaper industry.
Exclusive Territories
The protection of an intermediary from having to compete with others selling a producer's goods.
Short rate
The rate charged to advertisers who, during the year, fail to fulfill the amount of space for which they have contracted. This is computed by determining the difference between the standard rate for the lines run and the discount rate contracted.
Scale
The regular charge for talent and music agreed to in the union contract.
Sustainable Competitive Advantage
The resulting advantage a firm has when it invests in distinctive competencies.
Marketing Plan
The resulting document that records the marketing planning process in a useful framework. -start at the corporate/CMO level
Entertainment
The second largest area of sponsorship, which includes things like concert tours, attractions, and theme parks.
Informal research
The second step in the research process, designed to explore a problem by reviewing secondary data and interviewing a few key people with the most information to share. Also called exploratory research.
Target marketing process
The sequence of activities aimed at assessing various market segments, designing marketing mixes to communicate with and make sales to these targets.
Mechanical
The set type and illustrations or photographs pasted into the exact position in which they will appear in the final ad. Also called a pasteup, this is then used as the basis for the next step in the reproduction process.
Cooperative (co-op) advertising
The sharing of advertising costs by the manufacturer and the distributor or retailer. The manufacturer may repay 50 or 100 percent of the dealer's advertising costs or some other amount based on sales.
Cooperative advertising
The sharing of advertising costs by the manufacturer and the distributor or retailer. The manufacturer may repay 50 or 100 percent of the dealer's advertising costs or some other amount based on sales.
Disintermediation
The shortening or collapsing of marketing channels due to the elimination of one or more intermediaries. -Intermediaries will combine to avoid disintermediation
Text type
The smaller type used in the body copy of an advertisement.
Audio
The sound portion of a commercial. Also, the right side of a script for a television commercials, indicating spoken copy, sound effects, and music.
Target audience
The specific group of individuals to whom the advertising message is directed.
Decline stage
The stage in a product's life cycle when sales begin to decline due to obsolescence, new technology, or changing consumer tastes.
Standard-size newspaper
The standard newspaper size, measuring approximately 22 inches deep and 13 inches wide and divided into six columns.
Marketing strategy
The statement of how the company is going to accomplish its marketing objectives. The strategy is the total directional thrust of the company, that is, the how-to of the marketing plan, and is determined by the particular blend of the marketing mix elements (the 4 Ps), which the company can control.
Motivation
The stimulating power that induces and then directs an individual's behavior.
Exclusive distribution
The strategy of limiting number of wholsalers and distributors in order to gain a prestigious image, high price, or prodtect other dealers in geographic region.(high fashion)
Exclusive distribution
The strategy of limiting the number of wholesalers or retailers who can sell a product in order to gain a prestige image, maintain premium prices, or protect other dealers in a geographic region.
Brand Loyalty
The strongest form of a brand equity and reflects a commitment to repeat purchases.
Media research
The systematic gathering and analysis of information on the reach and effectiveness of media vehicles.
Advertising research
The systematic gathering and analysis of information specifically to facilitate the development or evaluation of advertising strategies, ads and commercials, and media campaigns.
Marketing research
The systematic gathering, recording, and analysis of information to help managers make marketing decisions.
Print production process
The systematic process a layout for an ad or a brochure goes through from concept to final printing. The four major phases are preproduction, production, prepress, and printing and distribution.
Differentiated Target Marketing
The target marketing approach that involves developing different value offerings for different targeted segments.
Body copy
The text of an advertisement. It is a logical continuation of the headline and subheads and is usually set in a smaller type size than headlines or subheads.
Session
The time when the recording and mixing of a radio commercial takes place.
Gross rating points (GRPs)
The total audience delivery or weight of a specific media schedule. It is computed by dividing the total number of impressions by the size of the target population and multiplying by 100, or by multiplying the reach, expressed as a percentage of the population, by the average frequency. In television, gross rating points are the total rating points achieved by a particular media schedule over a specific period. For example, a weekly schedule of five commercials with an average household rating of 20 would yield 100 GRPs. In outdoor advertising, a 100 gross rating point showing (also called a number 100 showing) covers a market fully by reaching 9 out of 10 adults daily over a 30-day period.
Paid circulation
The total number of copies of an average issue of a newspaper or magazine that is distributed through subscriptions and newsstand sales.
Reach
The total number of different people or households exposed to an advertising schedule during a given time, usually four weeks. Reach measures the unduplicated extent of audience exposure to a media vehicle and may be expressed either as a percentage of the total market or as a raw number.
Gross impressions
The total of all the audiences delivered by a media plan.
Customer lifetime value (LTV)
The total sales or profit value of a customer to a marketer over the course of that customer's lifetime.
Message weight
The total size of the audience for a set of ads or an entire campaign.
Brand equity
The totality of what consumers, distributors, dealers, and competitors feel and think about a brand over an extended period of time; in shorts, it is the value of the brand's capital.
Internal Marketing
The treating of employees as customers and developing systems and benefits that satisfy their needs to promote internal service quality.
Animation
The use of cartoons, digital actions, or demonstrations of inanimate characters come to life in television commercials; often used for communicating difficult messages or for reaching specialized markets, such as children.
Marketing public relations (MPR)
The use of public relations activities as a marketing tool.
Testimonial
The use of satisfied customers and celebrities to endorse a product in advertising.
Exposure value
The value of a medium determined by how well it exposes an ad to the target audience. In other words, how many people an ad "sees" rather than the other way around.
Complete Set
The very large set of possible alternatives a consumer considers during the initial search for information.
Utility
The want-satisfying power of a good or service. -form utility(making of product) -time utitlity(get when you want it) -place utility(where you get product) -ownership utility(how long it will take to get/own product) -psychological utility(experience)
Position
The way in which a product is ranked in the consumer's mind by the benefits it offers, by the way it is classified or differentiated from the competition, or by its relationship to certain target markets.
Positioning
The way in which a product is ranked in the consumer's mind by the benefits it offers, by the way it is classified or differentiated from the competition, or by its relationship to certain target markets.
Value Proposition
The whole bundle of benefits a company promises to deliver to the customer, not just the benefits of the product itself.
Art
The whole visual presentation of a commercial or advertisement—the body language of an ad. Art also refers to the style of photography or illustration employed, the way color is used, and the arrangement of elements in an ad so that they relate to one another in size and proportion.
Headline
The words in the leading position of an advertisement—the words that will be read first or that are positioned to draw the most attention.
Copy
The words that make up the headline and message of an advertisement or commercial.
Advertising plan
The written document that directs the company's advertising effort. A natural outgrowth of the marketing plan, it analyzes the situation, sets advertising objectives, and lays out a specific strategy from which ads and campaigns are created.
McClelland's Achievement Motivation Theory
There are 3 categories of needs and people differ in the degree in which the various needs influence their behavior. 1. Need for Achievement 2. Need for Power 3. Need for Affiliation -all needs can be fulfilled with products, consumption
How do reference groups affect us?
They determine which brands are cool and which aren't! And they influence our behavior
Major reason retailers use newspapers for ads
They offer better geographic selectivity
Most common reason retailers don't use POS displays furnished by manufacturers:
They're inappropriate for the channel
Brand Equity
This factor increases the probability that a brand will be considered during a consumer's search for purchase information
Circulation audit
Thorough analysis of circulation procedures, distribution outlets, and other distribution factors by a company such as the Audit Bureau of Circulations (ABC).
Creative mix
Those advertising elements the company controls to achieve its advertising objectives, including the target audience, the product concept, the communications media, and the advertising message.
Extrinsic Rewards
Those controlled and given by people other than the salesperson such as managers and customers. -From the company, customer
Intrinsic Rewards
Those salespeople primarily attain for themselves and include feelings of accomplishment, personal growth, and self-worth. -you doing for yourself (sense of accomplishment)
Copy cast
To forecast the total block of space the type in an ad will occupy in relation to the typeface's letter size and proportions.
Database marketing
Tracking and analyzing the purchasing patterns of specific customers in a computer database and then targeting advertising to their needs.
Lifestyle technique
Type of commercial in which the user is presented rather than the product. Typically used by clothing and soft drink advertisers to affiliate their brands with the trendy lifestyles of their consumers.
Benefit headline
Type of headline that makes a direct promise to the reader.
Display advertising
Type of newspaper advertising that includes copy, illustrations or photographs, headlines, coupons, and other visual components.
Location
Types of locations Site location criteria -characteristics of site -characteristics of trading area surrounding site -estimated sales from a store at a specific location
Specialty Goods
Unique products in which consumers' purchase decision is based on a defining characteristic.
Special effects
Unusual visual effects created for commercials.
What type of segmentation is performed by a company when it uses a consumer purchasing history database to create market segments?
Usage
Advertising strategy research
Used to help define the product concept or to assist in the selection of target markets, advertising messages, or media vehicles.
Mixed-media approach
Using a combination of advertising media vehicles in a single advertising campaign.
Indirect distribution
Using a distribution channel such as a retail store or "middleman". Make products available conveniently and economically.
__________ should be the outcome of a good strategy.
Value
Brand Equity =
Value + Assets Value - Liabilities (store/generic brand)
Readers per copy (RPC)
Variable used to determine the total reach of a given print medium. RPC is multiplied by the number of vendor and subscription sales to determine the total audience size.
Promotion
Various forms of communication to inform, persuade, or remind. -communicates a message of value -inform, persuade, remind
Vertical Marketing System (VMS)
Vertically aligned networks behaving and performing as a unified system. -a channel member a) owns the others, b) has contracts with them, or c) simply forces cooperation through sheer clout within the channel -Corporate systems -Contractual systems -Administered systems
Portfolio Analysis
Views SBU'S and even product lines as a series of investments from which it expects maximization
What turns short-term memory of an ad to long-term?
Visual consistency
Design
Visual pattern or composition of artistic elements chosen and structured by the graphic artist.
Independent shopping guide
Weekly local ad vehicles that may or may not contain editorial matter. They can be segmented into highly select market areas.
Differentiation Orientation
What clearly distinguishes your products from those of competitors in the minds of customers. -Communicating and delivering value in different ways to different customer groups
Licensing
When a firm offers other manufacturers the right to use its brand in exchange for a set fee or percentage of sales.
Exclusive Dealing
When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products.
Brand Associations
When customers develop a number of emotional, psychological, and performance associations with a brand. -primary purchase driver, particularly with brand loyal users
Cooperative (co-op) program
When manufacturers and retailers share the cost of advertising.
When do rational appeals work best?
When there is high involvement and the viewer is willing to pay attention to the ad
Donut
When writing a jingle, a hole left for spoken copy.
Media Schedule
Where and when ads appear
Trap
Where, in printing process, one color overlays the edge of another to keep the paper from showing through.
Distribution objectives
Where, when, and how advertising should appear.
Distributor
Wholesale middleman, found especially when selective or exclusive distribution is common and strong promotional support is needed. Sometimes used synonymously for wholesaler. -facilitates sale, selles to consumer (dealership)
Rate base
With magazines, the circulation figure on which the publisher bases its rates.
Supers
Words superimposed on the picture in a television commercial.
Verbal
Words, written or spoken.
what is a campaign starting point of that may be studies in relation to the free of change following a promotional campaign
a benchmark measure
what is a brand
a brand is a perception resulting from experiences with and information about a companyy or line of products
store brands (private label)
a brand used exclusively by one chain of stores for a line of products made to a store's specification
services
a bundle of benefits that may or may not be physical, that are temporary in nature, and that come from the completion of a task
tagline
a catchy, easy-to-remember phrase in an ad used to make the key point and reinforce the company's image to the consumer Nike "Just Do It"
imprinting
a consumer's first experience with a given price
franchise
a contractual vertical marketing system in which a channel member links several stages in the production-distribution process
of the actions below, which is an example of feedback in a marketing channel
a customer complaint
product concept
a detailed version of the idea stated in meaningful consumer terms
sequential new-product development
a development approach where company departments work closely together in cross-functional teams, overlapping in the product-development process to save time and increase effectiveness
sales promotion
a direct inducement offering extra incentives all along the marketing route -- from manufacturers through distribution channels to customers -- to accelerate the movement of the product from the producer to the customer
consent decree
a document advertisers sign, without admitting and wrongdoing, in which they agree to stop objectionable advertising
Creative pyramid
a five-step model to help the creative team convert advertising strategy and the big idea into the actual physical ad or commercial. The five elements are: attention, interest, credibility, desire, and action.
incentive system
a form of compensation in which the agency shares in the client's success when a campaign attains specific, agreed-upon goals
Market
a group of potential customers who share a common interest, need, or desire; who can use the offered good or service to some advantage; and who can afford or are willing to pay the purchase price. Also, an element of the media mix referring to the various targets of a media plan.
product line
a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or gall within given price ranges
Culture
a homogeneous group's whole set of beliefs, attitudes, and ways of doing things, typically handed down from generation to generation
account planning
a hybrid discipline that bridges the gap between traditional research, account management, and creative direction whereby agency people represent the view of the consumer in order to better define and plan the client's advertising program
what is a distinctive graphic design that communicates a product, company, or organization identity
a logo
the set of businesses or groups of individual consumers with distinct characteristics is known as
a market segment
Hierarchy of effects model
a marketing approach suggesting that a consumer moves through a series of six steps when becoming convinced to make a purchase 1. awareness---Cognitive 2. knowledge---Cognitive 3. liking---Affective 4. preference---Affective 5. conviction--Affective 6. the actual purchase--Cognitive
direct marketing channel
a marketing channel that has no intermediary levels
branding
a marketing function that identifies products and their source and differentiates them from all other products
straight-fee
a method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula. under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel and multiplies by some factor.
retainer method
a method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula. under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies by some factor.
geographic segmentation
a method of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within a region
a teenager is taking forever to buy a pair of jeans because he or she s considering all the factors involves, such a price, color, and style. which method is being used to evaluate the various brands?
a multi-attribute approach
flanker brand
a new brand in the same category as an existing brand, ex p&g, unilever with new detergents
from the list below, which best describes a company stakeholder?
a person or group with a vested interest in a firm's well-being
Media
a plural form of medium, referring to communications vehicles paid to present an advertisement to its target audience. Most often used to refer to radio and television networks, stations that have news reporters, and publications that carry news and advertising.
media
a plural form of medium, referring to communications vehicles paid to present an advertisement to their target audience. most often used to refer to radio and television networks, stations that have new reporters and publications that carry news and advertising.
impression
a possible exposure of the advertising message to one audience member
fee-commission combination
a pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned
product utility
a product's ability to satisfy both functional needs and symbolic or psychological wants. a product's problem-solving potential may include form, task, possession, time or place utility.
VALS
a psychographic instrument that divides adults into groups based on their primary motivation and resources. -Primary motivators: ideals (thinkers, believers), achievement (achievers, strivers), self expression (experiencers, makers) -Innovators, survivors based on resources and innovation level
product placement
a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events
modified rebuy
a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers
new task
a purchase decision that requires thorough research such as a new product
C3
a rating at the time of the commercial plus 3 days later which takes in any viewing of the ad three days after the original air
Judge
a role in the creative process that evaluates the results of experimentation and decides which approach is more practical.
Explorer
a role in the creative process that searches for new information, paying attention to unusual patterns.
Animatic
a rough television commercial produced by photographing storyboard sketches on a film strip or video with the audio portion synchronized on tape. It is used primarily for testing purposes.
straight rebuy
a routine purchase decision such as reorder without any modification
personal selling
a sales method based on person-to-person contact, such as by a salesperson at a retail establishment or by a telephone solicitor
what is advertising
a set of non personal, paid announcements by an identified sponsor
markup
a source of agency income gained by adding some amount to a supplier's bill, usually 17.65%
market-skimming pricing
a strategy with high initial prices to skim revenue layers from the market
an adertisement or communication is deemed to be deceptive or misleading when
a substantial number of people or the typical person is left with a false impression or misrepresentation that relates the the product
direct marketing
a system of marketing in which companies build their own database of customers and use a variety of media to communicate with them directly such as through ads and catalogs
slice of life
a type of commercial consisting of a dramatization of a real-life situation in which the product is tried and becomes the solution to a product
visual esperanto
a universal language that makes global advertising possible for any good or service by recognizing that visual images are more powerful than verbal descriptions Asics ad
marketing plan
a written document that describes the overall marketing strategy and programs developed for an organization, a particular product line, or a brand
unfair advertising
according to the FTC, advertising that causes a consumer to be "unjustifiably injured" or that violates public policy
deceptive advertising
according to the FTC, any ad in which there is a misinterpretation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment
social responsibility
acting in accordance to what society views as best for the welfare of people in general or for a specific community of people
affirmative disclosure
advertisers must make known their product's limitations or deficiencies
Brand Recognition
advertisers want to focus on visual presentation of the product. The goal is for viewers to recognize the ad, the product, and the brand when they are shown the ad.
of the following imc components, which is the most difficult to measure in terms of effect on actual sales
advertising
local advertising
advertising by businesses within a city or county directed toward customers within the same geographical area
which of the following best describes a flighting schedule of advertising?
advertising during certain times of the year with no advertising at other times
local advertising
advertising focused on the same geographic area
how does IMC differ from advertising
advertising is just one tool of imc
continuous
advertising run regularly with little variation
comparative advertising
advertising that claims superiority to competitors in some aspect
demarketing
advertising used to slow demand for a product (ex: Truth "No Smoking" campaign)
marketing communications functions
advertising, direct marketing, PR, consumer promotions, channel promotions, digital marketing, events & sponsorships, alternative marketing
Carrie buys a Honda Accord without considering other brands because she really likes the Accord and feels it is the best automobile on the market. Carrie's evaluation of alternatives is best explained by which model?
affect referral
comprehension
affects interpretation of a message
in-house agency
agency wholly owned by an advertiser and set up and staffed to do all the work of an independent full-service agency
tying agreements
agreements where the dealer must take most or all of the line
interactive media
allows for a back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time
art directors
along with graphic designers and production artists, individuals who determine how the ad's verbal and visual symbols will fit together
Habit
an acquired or developed behavior pattern that has become nearly or completely involuntary
habit
an acquired or developed behavior pattern that has become nearly or completely involuntary
competitive advantage
an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices
interactive agencies
an advertising agency that specializes in the creation of ads for a digital interactive medium
interactive agency
an advertising agency that specializes in the creation of ads for a digital interactive medium
means-end chain
an advertising approach in which the message contains a means (a reasoning or mental process) to lead the consumer to a desired end state, such as a key personal value
means-end conceptualization of components for advertising strategy (MECCAS)
an advertising approach that suggests using five elements in creating ads: 1. the product's attributes 2. consumer benefits 3. leverage points 4. personal values 5. the executional framework
direct response advertising
an advertising message that asks the reader, listener, or viewer to provide feedback straight to the sender; it can take the form of direct mail, or it can use a wide range of other media, from matchbook covers or magazines to radio, tv or billboards
full-service advertising agency
an agency equipped to serve its clients in all areas of communication and promotion. its advertising services include planning, creating, and producing advertisements as well as performing research and media selection services. Non-advertising functions include producing sales promotion materials, publicity articles, annual reports, trade show exhibits, and sales training materials.
full service agency
an agency equipped to serve its clients in all areas of communication and promotion; advertising services include: planning, creating, and producing advertisements as well as performing research and media selection services; non advertising functions include: producing sales promotion materials, publicity articles, annual reports, trade show exhibits, and sales training materials
general consumer (B2C)
an agency that represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly by consumers
general consumer agency
an agency that represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly by consumers
what does CRM (Customer relationship management) provide sales people with?
an automated system for organizing information
one of the current trans in market communications is
an emphasis on accountability and measurable results
what is puffery
an exaggerated claim with no overt attempt to mislead or deceive
copyright
an exclusive right granted by the copyright act to authors and artists to protect their work from being plagiarized, sold or used by another without their express consent
unique selling proposition (USP)
an explicit, testable claim of uniqueness or superiority that can be supported or substantiated in some manner. Bonne Bell flipstick--claim is testable and as a result bonne bell must be able to support this claim
product idea
an idea for a possible product that the company can see itself offering to the market
consumer advocate
an individual or group that actively works to protect consumer rights, often by investigating advertising complaints received from the public and those that grow out of their own research
Brand interest
an individual's openness or curiosity about a brand
brand interest
an individual's openness or curiosity about a brand
systematic new-product development
an innovative developing approach that collects, reviews, evaluates, and manages new-product ideas
medium
an instrument or communication vehicle that carries or helps transfer a message from the sender to the receiver.
medium
an instrument or communications vehicle that carries or helps transfer a message from the sender to the receiver
in brand publicity, what is an endorsement given by a spokesperson or an independent third-party?
an objective perspective given by a reputable source who has no personal interest in the success or failure of the brand being endorsed
media buying
an organization that specializes in purchasing and packaging radio and television time
media-buying service
an organization that specializes in purchasing and packaging radio and television time
marketing
an organizational function and a set of processes for creating communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
what is a message theme?
an outline of the key idea(s) that an advertising program is supposed to convey
message theme
an outline of the key idea(s) the advertising campaign conveys
choosing external ad agencies
an outside agency reduces costs when compared to less efficient in house facilities. this occurs when in-house employees spend more time on campaigns and ad designs than an agency would. the agency offers greater expertise and may have access to top talent in the industry. ad agencies offer an outside perspective not influenced by internal corporate politics and personal biases. agency professionals often have a better understanding of consumers and trends, because they work with a number of clients over an array of products
of the following types of celebrity endorsements, which one would have the greatest level of credibility
an unpaid celebrity speaking on behalf of a charity or other nonprofit organization
Types of Executional Frameworks
animation, slice-of-life, dramatization, testimonial, authoritative, demonstration, fantasy, informative
advertising
any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor
Marketers
any person or organization that has products, services, or ideas to sell
trademark
any word, symbol, name, device or and combination thereof adopted and used by manufacturers or merchants to identify their goods and distinguish them from those manufactured or sold by others
product
anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want
in the communications process, what is noise
anything that distort the sender's message
advertising appeals
approaches to reaching consumers with ads. The seven major appeals are 1. fear 2. humor 3. sex 4. music 5. rationality 6. emotions 7. scarcity
Choosing in-house
approximately 40% of companies use some type of in-house facility, due to its potential advantages. managers believe this approach lowers costs and gives the company better control of the message, which can be aligned with the brand and other company communications. Also has a lower turnover rate in the creative team
Conative message strategies
are designed to lead directly to some type of action or response ads typically encourage quick action by stating that the item cannot be purchased in stores and will be available for only a limited time.
market opportunities
areas favorable demand, trends or consumer needs exist
Discounts v. Allowances
at time of purchase v. after purchase -Cash discounts -Trade discounts -Quantity discounts -Seasonal discounts -Promotional discounts
value-added pricing
attaches value-added features and services to differentiate offers, support higher prices, and build pricing power
Emotional Advertising
attempts to elicit powerful emotions that eventually lead to product recall and choice. emotions include: trust, reliability, friendship, happiness, security, glamour, luxury, serenity, pleasure, romance and passion
what is the mental position a person takes about a topic, person, or event called
attitude
native advertising
attracts attention by providing valuable content in the context of the user's experience
which type of executional framework is illustrated by an endorsement in consumer reports
authoritative
frequency
average number of exposures
according to the hierarchy of effects model, the first step in a purchase decision is
awareness
demographic segmentation
based on a population's statistical characteristics such as sex, age, ethnicity, education, occupation, income or other quantifiable factors
demographic segmentation
based on a population's statistical characteristics such as sex, age, ethnicity, education, occupation, income, or other quantifiable factors
geographic segmentation
based on markets by geographic regions based on the shared characteristics, needs, or wants of people within a region
promotional mix
basic tools used to accomplish an organization's communication objectives (advertising, direct marketing, interactive/internet marketing, sales promotion, publicity/public relations, personal selling)
needs
basic, often instinctive human forces that motivate us to do something
what is the value to a company of a strong brand
be able to change a higher price for products
• Why does an advertiser need to know how well the audience of a particular medium matches up well with the advertiser's target market?
because advertising is expensive and there shouldn't be wasted time, effort, and funding.
crest toothpaste provides the ultimate in cavity protection is an example of which type of brand positioning?
benefit
quaker oats has place a 1.00 coupon inside the box of quaker oats. this is an example of a(n):
bounce-back coupon
although almost any type of appeal can be used to create an advertisement, it is a key responsibility of the market to make sure that the appeal is the right choice for the
brand and the target audience
category (product class) positioning
brand belongs to, defines, or owns a category (ex bandaid, kleenex, coca-cola)
during the search for purchase information, what factor increases the probability that a brand will be considered/
brand equity
what is the term used when a company creates a band name that closely resembles a popular or successful brand
brand infringement
image positioning
brand is associated with a symbol image or lifestyle (ex chevrolet, marlboro, bacardi)
the idviduals in charge of tide, bold, and cheer laundry products and procter and gamble is known as the
brand manager
paid media
brand pays to leverage a channel, banner ad, sponsorship, paid search
attribute/unique feature positioning
brand provides a unique product/service attribute (ex southwest airlines, pharmecudecals)
benefit (use, application) positioning
brand satisfies consumers needs, wants or desires (ex crest=cavity protection; arm & hammer= deodorizer)
what is branding
branding is the process of creating a brand image that engages the hearts and minds of customers
what is data mining?
building customer groups and models that predict their future purchase behavior
owned media
channel a brand owns, such as a website, blog, twitter account, etc.
indirect marketing channel
channel containing one or more intermediary levels
preemptive messages
claims of superiority based on a specific attribute or benefit of a product that preempts the competition from making the same claim. an effective strategy can occur when a company is the first to state an advantage or benefit.
positioning
clearly differentiating a product from one another by aligning it with a particular set of customer needs
what is the primary method used to measure the impact of online advertising
click throughs
when citibank promotes a master card credit card with the american airlines logo, this is an example of
co-branding
what is a simulation of the knowledge structures embedded in an individual's brain known as
cognitive map
In terms of attitude formation, the most common sequence is:
cognitive → affective → conative
product bundle pricing
combines several products at a reduced price
geodemographic segmentation
combining demographics with geographic segmentation to select target markets in advertising.
from what are advertising goals derived?
communication objectives
media
communication vehicles; people who carry the advertiser's messages
national advertisers
companies that advertise in several geographic regions or throughout the country
regional advertisers
companies that operate in one part of the country and market exclusively to that region
advertisers (or clients)
companies that sponsor advertising for themselves and their products
advertisers/clients
companies that sponsor advertising for themselves or their products
media commission
compensation paid by a medium to recognized advertising agencies, traditionally 15% for advertising placed with it.
what does the substantiation test for false and misleading advertising require
competent and reliable evidence
functional consequences
concrete outcomes of product/service usage
effective campaign consists of five steps
conduct and review the advertising research establish advertising objectives consistent with the overall IMC program review the advertising budget select the appropriate media based on the view habits of the target market prepare a creative brief
Resonance Advertising
connects a product with a consumer's experiences from the past in order to develop a bond with the brand. The use of music from the 1980s takes Echo Boomers back to that time. Any strongly held memory or emotional attachment becomes a candidate for this type of advertising Cheerios ad
the federal trade commission (ftc) insists that a company stop making a false claim in an advertisement and that company agrees to stop, it is an example of a
consent order
person marketing
consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people
place marketing
consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places
product mix
consists of all the products and items that a particular seller offers for sale
primary demand
consumer demand for a whole product category
selective demand
consumer demand for the particular advantages of one brand over another
shopping products
consumer products and services that the customer compares carefully on suitability, quality, price, and style
convenience products
consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort
specialty products
consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
unsought products
consumer products that the consumer does not know about or knows about but does not normally think of buying
What is an "inquiry test?"
consumer responds to ad for information or free samples that are then arraged in tabulated data- small space ads
Positively originated motives
consumer's motivation to purchase and use a product based on a positive bonus that the product promises, such as sensory gratification, intellectual stimulation, or social approval
members of a typical marketing channel include producers, wholesalers, retailers and
consumers
primary demand
consumers demand for a whole product category
Continuity
continuous campaign pulsating campaign flighting (or discontinuous) campaign
product symbolism
conveying a certain brand/product experience to consumers
a retailer agrees to display a particular brand of shoes in the front of the store and on a special end-of-aisle display. in return, the retailer receives a price discount by the shoe manufacturer. what term below is used to describe this arrangement?
cooperative merchandising agreement
traffic department
coordinates all phases of production and on schedule
selective demand
creating demand for a specific brand within a category
primary demand
creating demand for an entire category
"Relationship Marketing
creating,maintaining and enhancing long term realationships with customers and stakeholders that result in exchanges of value.
pepsico reacted to negative claims about hypodermic needles being in their products with photographs and videos of the production processing. these photographs showed that such an event could not happen at their factories. which approach to managing negative publicity is this an example of
crisis management
when a company advertisers, develops consumer promotions and develops other marketing communications as a tie-in with an event marketing program, it is called a
cross promotion
Harley Davidson has positioned its brand using the cultural values of freedom. This is an example of product positioning by:
cultural symbol
opportunities to see OTS
cumulative exposures placements times frequency
In examining customers during the IMC planning context analysis, the easiest group to study is:
current customers
from the company's perspective, a quality corporate image enhances the introduction of a new product because
customers generally transfer their trust and beliefs about th corporation to a new product
Centers of influence
customers, prospective customers, or opinion leaders whose opinions and actions are respected by others
message distribution objectives
defines where, when, and how advertising should appear
volume segmentation
defining consumers as light, medium, or heavy users of products
audience objectives
definitions of the specific types of people the advertiser wants to reach
narrowcasting
delivering programming to a specific group defined by demographics and/or program content rather than mass appeal
narrowcasting
delivering programming to a specific group defined by demographics, and/or program content, rather than mass appeal. usually used to describe cable networks. the opposite of broadcasting
in business to business marketing, what is derived demand
demand linked to the production and sale of some other item
broadcast standards dept
dept at a tv network that reviews all programs and commercials to be broadcast to see that they meet all applicable standards
post-purchase evaluation
determining whether a purchase has been a satisfactory or unsatisfactory one
sales promotion agency
develop contests, sweepstakes, rebates and incentive offers
interactive agencies
develop online and other advertisements customers can interact with
whole-egg theory
developed by the young & rubicam advertising agency. the program moves from only selling a client's products to instead helping the client attain total success in the marketplace. it requires a more fully integrated marketing approach that includes a wider array of services
what is green marketing
developing and promoting environmentally friendly products
generic messages
direct promotions of product attributes or benefits without any claim of superiority. stimulates brand awareness. it can also strive to make the brand synonymous with the brand category.
the process of developing a strong brand begins with
discovering why consumer buy and brand and why the rebut the brand
when describing a companies name, iconoclastic names
do not reflect the company's good or services but instead something that is unique ,different, and memorable
ethical advertising
doing what the advertiser and the advertisers' peers believe is morally right in a given situation
contact (or touch) point
each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it
ideas
economic, political, religious, or social viewpoints that advertising may attempt to sell
which type of advertising appeal is used in the priceless campaign of master card?
emotional
which type of appeal is used in the priceless campaign of mastercard
emotional
common combination of EF
emotional appeal, affective message strategy, and slice of life execution
Action-inducing conative advertisements
encourage consumers (or businesses) to act in some way, to do something. It can be to make an inquiry or access a web site for more information point-of-purchase displays are designed to cause people to make impulse buys
what are the two primary goals of contests and sweepstakes?
encourage customer traffic and boost sales
the primary benefit of a scarcity appeal is that it
encourages consumer action
When a television advertisement makes a special offer on a piece of luggage, encouraging viewers to call a toll-free number to take advantage of the special, the ad is designed to meet the goal of:
encouraging action
one of the primary goals of a consumer promotion is to
entice the customer to take the final step and make a purchase
decentralized
establishment of advertising departments by products or brands or in various divisions, subsidiaries, countries, regions or other categories that suit the firm's needs, which operate with a major degree of independence
in the consumer purchasing decision making process, which step precedes the purchase decision?
evaluation of alternatives
substantiation
evidence that backs up cited survey finding or scientific studied that the FTC may request from a suspected advertising violator
the brands a person considers in a purchasing situation is called the buyer's
evoked set
co-branding
ex aa advanantage, citibank
transient/intangible brands
ex celebrities, politicians
ingredient branding
ex intel on a pc
brand licensing
ex unt logo clothing to mfcs
family brands
ex, coke, diet coke, cherry coke, coke zero
executional framework
explains how the message will be delivered. methods include the slice-of-life approach, fantasies, dramatizations, and ads featuring animation
comparison advertising is more common in countries other than the united states
false
during the initial internal search, a consumer considers all of the brands that he or she has used in the past
false
primary research involves searching the library for literature about the competition
false
From an advertising perspective, what is the most important consumer buying group?
families
the difference between price and value is that price is a ______ and value is a ______
feature, perception
where should public complaints about the amount of violence on television be sent
federal communications commission
which agency has the greatest degree of jurisdiction over marketing and advertising
federal trad commission
which agency has the authority to order corrective advertising
federal trade commission
positioning
fitting the product/service to a specific market segment
what type of communications schedule would diet services use, such as jenny craigh and weigh watchers?
flighting
Comparative Cognitive Message Strategy
focuses on a direct or indirect comparison to a competing brand--can be fictitious or real. advantage-tend to capture attention. negative--they can be less believable and can create a negative attitude.
customer-centered new product development
focuses on finding new ways to solve customer problems and create more customer satisfying experiences; begins and ends with solving customer problems
personal selling
form of person-to-person 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
media planner
formulates the media program stating when and where ads will be placed. work closely with the creative staff, the account executive, account planners, and media buyers.
marketing mix (4 P's)
four elements (4 P's) that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy
marketing mix
four elements, called the 4ps (product, price, place and promotion), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy.
Brand Recall
frequency is more important than reach the more they hear the brand name, repetition, the more likely it will be remembered
Quantitative research is
getting hard numbers about specific marketing situations
Government markets
governmental bodies that buy products for the successful coordination of municipal, state, federal, or other government activities
patents
grant made by the govt that confers upon the creator of an invention the sole right to make, use, and sell that invention for a set period of time
Impressions
gross impressions minus total audience exposed to ad
global interactive age/21st century
growth of media delivery systems; More ways for people to connect like never before; Decline of old media; Relationship marketing and Integrated Marketing Communications; Interactive revolution
direct-marketing agencies
handle every aspect of a direct marketing campaign either through telephone orders, internet programs, or by direct mail
creative director
head of a creative team of agency copywriters and artists who is assigned to a client's business and who is ultimately responsible for the creative product and the form the final product takes
creative director
head of creative team of agency copywriters and artists who is assigned to a clint's business and who is ultimately responsible for the creative product- the form the final ad takes
Creative director
heads a creative team of agency copywriters and artists that is assigned to a client's business; us ultimately responsible for the creative product—the form the final ad takes.
a characteristic of cop orate logos is that they are
help with the recall of advertisements and brands
when sean shops for an automobile, the companies most likely to be communications senders are
honda and toyota
perception
how we receive, select, organize and interpret external info
Why products fail:
huge changes in behavior required, does not meet needs.
of which type of cognitive message is we are chicago's friendliest car dealer! an example
hyperbole
in a business to business buying process, what is the first step
identification of a need
from the list below, which is not a communications objective
identify a company's competitors
levi-strauss & company's database marketing program was designed to
identify target customer groups and interact with members of those groups
Spontaneous Trait Transference
if the consumer does not believe the ad placing the negative trait on the advertised brand instead of the competitor. It is important to choose competitors wisely in making comparisons.
sales promotion department
in larger agencies, a staff to produce dealer ads, window posters, point-of-purchase displays, and dealer sales material.
upstream partners
include raw material suppliers, components, parts, information, finances, and expertise to create a product or service
downstream partners
include the marketing channels or distribution channels that look toward the customer
supply chain "make and sell" view
includes the firm's raw materials, productive inputs, and factory capacity
a commercial showing the luxury and quality of a lexus car is based on
income segmentation
added value
increase in worth of a product or service as a result of a particular activity; provided by the communication of benefits over and above those offered by the product itself
While music is very good at gaining a viewer's attention, it also:
increases the retention of info in the ad
while music is very good at gaining a viewer's attention, it also
increases the retention of information in the advertisement
what is the measure or definition of marketing return on investment that is the most commonly accepted
incremental sales from marketing activities
ad agencies
independent organizations of creative people and businesspeople that specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers
advertising agencies
independent organizations of creative people and businesspeople that specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers. the agencies also arrange for or contract for purchases of space and time in various media
Reseller markets
individuals or companies that buy products for the purpose of reselling them
Industrial markets
individuals or companies that buy products needed for the production of other goods or services such as plant equipment and telephone systems
art directors
individuals who determine how the ad's verbal and visual symbols will fit together
The two components of the consumer decision-making process that are most critical to developing an integrated marketing communications program are:
information search and evaluation of alternatives
what are the two components of consumer decision-making process that are most critical to developing an integrated marketing communications program
information search and evaluation of alternatives
what are the two components of the consumer devision marking process that are most critical to developing an integrated marketing communications program
information search and evaluation of alternatives
on a modern laptop computer, there will likely be labels with the Intel and Microsoft logos. What are these examples of?
ingredient branding
roles in family decision making
initiation, info gathering, influence, decider, purchaser
In terms of the VALS2 typology, members of which group are successful, sophisticated receptive to new technologies?
innovators
What is IMC (industry Definition)
integrated Marketing Communications (IMC) is the coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program which maximizes the impact on consumers and other end-users at a minimal cost. The IMC includes all business-to-business, channel, customer, external communications and internal Commnications
the coordination and integration of all marketing communications tools, avenues, and sources within a company into a seamless program that maximizes the impact on consumers and other end users is known as
integrated marketing communications
flighting
intermittent media scheduling pattern in which periods of advertising are alternated with periods of no advertising at all
selective comprehension
interpreting info based on own attitudes
Three-exposure hypothesis
introduced by herbert krugman. states that it takes at least three exposures to an ad for it to have an effect. It also is base don the idea that advertising has intrusion value, that is viewers will pay attention to an ad even if they dont want to
Affective Message Strategies
invoke feelings or emotions. attempt to enhance the likeability of a product, recall of the message, and comprehension of the message. two types: resonance and emotional help develop brand equity through creating an emotional bond with the brand
media strategy
involves analyzing and choosing media for an advertising and promotions campaign. choosing the best media to speak to potential customers is a challenge. It involves matching a target audience to the media audience for specific programs
two-part pricing
involves breaking the price into a fixed fee and variable usage fee
everyday low pricing
involves charging a constant everyday low price with few or no temporary price discounts
high-low pricing
involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
Affective
involves feelings or emotions and matches these with the good, service or company being advertised.
product-specific research
involves identifying key product characteristics that become selling points
captive-product pricing
involves products that must be used along with the main product
Effectiveness of media buyers
is determined by the quality of the media choice, the creativity of the media buyer in negotiating and placing ads, financial stewardship of the buyer, the agency's culture and track record in buying media, and in the relationships the media buyer develops with the media reps
How is the Percent of Sales method of budgeting done?
is done by choosing a percentage of sales (based on last year's sales or future sales) to spend on advertising. It is considered safe and is simple.
advertising
is the structued and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products (goods, services, and ideas) by identified sponsors through various media.
who said half the money i spend on advertising is wasted; the trouble is i don't know which half?
john wanamaker
who said half the money i spend on advertising is wasted; the trouble is, i don't know which half
john wanamaker
components of a slice of life ad
made famous by procter and gamble during the early days of television advertising Encounter Problem Interaction Solution
during the consumer internal search process, what is a key objective for creatives and brand managers?
make sure the companies brand is part of the consumrs set of potential alternatives
live-action rough
make the ad without the effects or union actors. Only used in high stake scenarios
management (account) supervisors
managers who supervise account executives and who report to the agency's director account services
management supervisor
managers who supervise account executives and who report to the agency's director of account services
from the list below, what is important for a company to do when choosing a sponsorship?
march the audience profile with the company's target market
market testing of ads
market research
to what measure are consumer awareness and brand loyalty most closely linked?
market share
Emotional appeal
marketing appeal that is directed at the consumer's psychological, social, or symbolic needs.
copy
material suitable for a journalistic account
cease and desist order
may be issed by the FTC if an advertiser won't sign a consent decree; prohibits further use of the ad
corrective advertising
may be required by the FTC for a period of time to explain and correct ads
media
means by which the various types of marketing communications messages are sent and received, umbrella term includes all types of print and electronic communication, often represents most significant cost
Gross rating points GRPs
measures impact of intensity of media plan vehicle rating times OTS (number of insertions)
regional advertising
media advertised to one part of the country
national advertising
media advertised to the whole country
consumer behavior
mental and emotional processes about physical purchasing; "Activities, actions, and influences of people who purchase and use goods and services to satisfy their personal or household needs and wants"
when describing goals for public relations, a hit is
mention of the company;s name in a news story
what are the three broad categories of market communications evaluation tools?
message evaluations, respondent behavior evaluations and online evaluations
The key idea or ideas contained in an advertisement are referred to as a(n):
message theme
psychographic segmentation
method of defining consumer markets based on psychological variables including values, attitudes, personality and lifestyle.
behaviorist segmentation
method of segmenting consumers based on the benefits being sought
purchase occasion
method of segmenting markets on the basis of when consumers buy and use a good or service
pulsing
mixing continuity and flighting strategies in media scheduling
decorative models
models in an advertisement whose primary purpose is to adorn the product as a sexual or attractive stimulus without serving a functional purpose.
the most likely individuals to be enticed to join a frequency or loyalty program are
moderate users
Negatively originated motives
most common energizer of consumer behavior, such as problem removal or problem avoidance
satisfaction
must occur to perceive fair exchange
Wants
needs that we learn during our lifetime
wants
needs that we learn in our lifetime
media service companies
negotiate and purchase media packages (called media buys) for companies
if the national advertising division (NAD) finds an advertisement has not been properly substantiated, the NAD normally will
negotiate with the advertiser to modify the ad or discontinue using the ad
publicity
non-personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship
media schedule
notes when ads will appear in individual media vehicles
when evaluating risqué advertisements, such as a maiden form advertisement with a roman at an airport dressed only in her underwear, respondents may give what they consider to be a socially acceptable response instead of their true feelings. in such situations, what is the best evaluation method?
number 12, quiz six, find answer; its either persuasion analysis, cognitive neuroscience, or attitude and opinion tests
mccormicks marketing teams wants to test three different advertisements for its new chicken dijon gravy before it launches the product nationwide. what would be the best approach to measure and compare actual market reaction to each advertisement
number 15, quiz 6
for what reason is the measurement of changes in sales following marketing campaign easier now than in the past
number 16, quiz 6
what is the best behavioral method to measure the impact of a coupon program
number 19, quiz 6
Reach
number in target audience exposed typically four week period
what is the best method for determining the effectiveness of a direct marketing campaign?
number of responses received as a percentage of the total offers mailed
frequency
number of times the same person or household is exposed to a vehicle in a specified time span; across a total audience frequency is calculated as the average number of times individuals or homes are exposed to the vehicle
which approach to developing a marketing communications budget is often viewed as being the most effective?
objective and task
deceptive pricing
occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers
intermediaries
offer producers greater efficiency in making goods available to target markets.
good-value pricing
offers the right combination of quality and good service to fair price
Recency Theory
one ad exposure may be enough if the person has an interest in that product or or some other reason pays attention to the ad. Suggest advertising needs to be continuous since most of the time ads are ignored. increasing exposure through adding reach is more important than adding frequency.
agency departmental system
organization of an ad agency into departments based on function: account services, creative services, marketing services and administration
creative boutiques
organizations of creative specialists (such as art directors, designers and copywriters) that work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages, and specialized art. a boutique performs only the creative work.
creative boutiques
organizations of creative specialists (such as art directors, designers, and copywriters) that work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages, and specialized art; performs only the creative work
Business markets
organizations that buy natural resources, component products, and services that they resell, use to conduct their business, or use to manufacture another product
attitude
our evaluation of an idea; acquired mental position, positive or negative, regarding an idea or subject
advertising agency
outside company that specializes in the creation , production and placement of communication messages
advertising
paid, non-personal promotion of a product/service
of the following statements, which best describes event marketing?
participation in a promotional occasion designed to attract and involve a brand's target audience
rough art
pencil sketch of a proposed design or layout
suppliers
people and organizations that assist both advertisers and agencies in the preparation of advertising materials (ex: printers; film video houses; photographers; graphic designers)
suppliers
people and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing and production.
Postpurchase dissonance
people try to justify their behavior by reducing the degree to which their impressions or beliefs are consistent with reality
reference groups
people we relate to
Reference groups
people we try to emulate or whose approval concerns us
Consumer markets
people who buy products and services for their own, or someone else's, personal use
copywriters
people who create the words and concepts for ads and commercials
Current customers
people who have already bought something from a business and who may buy it regularly
Organizational buyers
people who purchase products and services for use in business and government
What are reference groups?
people who we try to emulate or whose approval concerns us
opinion leaders
people/organizations whose beliefs are respected
when promotional materials are only sent to customers who have given their approval, the program is called
permission marketing
media buyer
person responsible for negotiating and contracting the purchase of advertisement space and time in various media
source
person who sponsors advertising
media planning/buyers
plan the best ways and times to communicate with customers
marketing strategy
plans to meet marketing objectives through decisions based on the 4 P's
pleasure cruises and exotic vacations take advantage of which consumer behavior trend
pleasure pursuits
attitude
positive or negative evaluation of experiences
Transformational motives
positively originated motives that promise to "transform" the consumer through sensory gratification, intellectual stimulation, and social approval. Also called reward motives.
most marketers agree that a negative news story may
potentially damage a corporation's image in a very short time
Robinson-Patman Act
prevents unfair price discrimination by ensuring that the seller offer the same price terms to customers at a given level of trade
vulnerability
probability of event occurring
steps of the consumer purchase decision process
problem recognition information search search for alternatives evaluation and selection store choice and purchase post-purchase behavior
media planning
process that directs advertising messages to the right people in the right place at the right time
consumer behavior
process/activities people engage in when looking to satisfy needs
evaluative criteria
product characteristics used to compare alternatives that are different for each consumer
Intensive distribution
product is ready and available to consumers at every possible location. (Minimum effort) Think gas station products. Chocolate bars, pop etc.
Geodemographic segmentation combines all of the following, except:
product usage information
product utility
product's ability to satisfy functional needs and psychological wants
promotion is one of the 4ps of the marketing mix. which are the other three?
product, place, and price
promotion is one of the 4ps of the marketing mix. which are the three others?
product, place, and price
four Ps (4Ps)
product, price, place and promotion used by every company
(4 P's)
product, price, place, promotion
from a consumer's perspective, what word below best describes a brand?
promise
where does marketing communications belong in the marketing mix
promotion
sales promotion
promotional activities that provide additional incentives to buy
according to the direct marketing association, about 60 percent of a typical direct marketing budget is used for
prospecting for new customers
specialized marketing communication service
provide direct-marketing, interactive and promotional services
marketing analysis
provides a comprehensive review of the marketing program and where advertising fits into the plan
media organization
provides info/entertainment to subscribers
integrated marketing communications plan
provides the framework for developing, implementing, and controlling the organization's IMC program
marketing to individuals who are successful, sophisticated, receptive to new technologies, enjoy sports and are liberal in they political views in an example of which type of segmentation
psychographic
of the factors that influence consumer behavior, attitudes, opinions and beliefs are examples of which factor?
psychological
earned media
publicity gained through non-advertising promotional efforts
media buyers
purchases space, negotiates rates placement important consideration little connection between agency size and price spot ad-one time placement
which of the following is not a method of segmenting business to business markets
pyschographics
to try to learn people's motivations for their behavior—these are research goals that call for the use of _____________ research
qualitative- (general impression of market)
when choosing an advertising agency, a client may ask different agencies to develop a direct mail campaign to boost awareness of a company's range of products. within the advertising industry, what is this process called?
question 15, quiz 3
who in an advertising agency is responsible for preparing the creative brief
question 8, quiz 3
advertisements using an informative executional framework are best suited for
question 9, quiz 3
New Trends in Ratings
ratings for actual commercial times slots, not the TV show. The rationale for this rating is that viewers may be surfing other channels or gone to the kitchen during the commercial break.
Ratings and Cost per Rating Point (CPRP)
ratings measure percent of target market exposed by medium CPRP allows for comparison across media cost of media buy/vehicle's rating Weighted CPM
combination that would be difficult to pull off
rational appeal, affective message strategy, and demonstration execution
rating
reach as a percentage of total market
what does RFM segmenting focus upon?
recency, frequency, and monetary value of customers
salient beliefs
recognized consequences paired with attitudes
in the mind of the consumer, a strong corporate image is linked to
reduction of search time in making purchase decisions
channel conflict
refers to disagreement over goals, roles, and rewards by channel members
by-product pricing
refers to product with little or no value produced as a result of the main product
business buyer behavior
refers to the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others
shaping
reinforcement of certain acts that lead to desired behavior
experiences
represent what buying the product or service will do for the customer
B2B agency
represents clients that market products to other business
business-to-business agency
represents clients that market products to other businesses
in marketing communications, what does a lack of feedback suggest?
research is needed to determine the reason
75-15-10
rule of thumb used by ad agencies where 75 percent of the money spent on advertising should be used to purchase media time or space, 15 percent to the agency for the creative work, and 10 percent for the actual production of the ad. In contrast, for smaller accounts the breakdown may be 25-40-35
when determining communications schedules, a pulsating schedule is best for products that have
sales throughout the entire year with sales peaks at certain seasons
What is a "random probability sample?"
sampling method in which every unit in the population universe is given an equal chance of being selected for research.
subculture
segment of people
what is demographic segmentation
segmenting a market based on age, life stage, income, education, gender, etc
what is psychographic segmentation?
segmenting the market based on customer's values, attitudes, lifestyles, interests, and opinions
price fixing
sellers must set prices without talking to competitors
predatory pricing
selling below cost with the intention of punishing a competitor or gaining higher long-term profits by putting competitors out of business
Before executing any direct-mail program, a company should
send the offer to a small sample of customers or prospects to determine if the mailing meets or exceeds the planned response rate
The first step in selecting an advertising agency is to:
set goals
steps in selecting an ad agency
set goals, select process and criteria, screen initial list of applicants, request client references, reduce list to two or three viable agencies, request creative pitch
culture
set of meanings, beliefs, etc. handed down from generation to generation that influence the customer
what is the goal of brand development
set th eprouc apart from its competitors
market-penetration pricing
sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
promotion
setting up information channels in order to persuade consumers to buy product/services
storyboard
sheet preprinted with a series of 8 to 20 blank frames in the shape of tv screens, which includes text of the commercial, sound effects, and camera views
Demonstration
shows how a product works an effective way to communicate the benefits of a product to viewers used in business to business advertising to show how a product can meet the needs of a business
Executional Framework
signifies the manner in which an advertising appeal will be presented. it should be chose in conjunction with an advertising appeal and a message strategy.
Dramatization
similar to slice-of-life uses same four stages difference is in the intensity of the situation or problem difficult to do in 30 seconds
identification is the ability of the audience to identify with the spokesperson in an advertisement. from where is the identification derived?
similarity and attractiveness
what are funds paid to retailers to stock new products known as?
slotting fees
consumerism
social action designed to dramatize the rights of buying public
Opinion leader
someone whose beliefs or attitudes are respected by people who share an interest in some specific activity
intellectual property
something produced by the mind, such as original works of authorship including literary, dramatic, musical, artistic and certain other "intellectual" works, which may be legally protected by copyright, patent or trademark
human communication process
source-> encoding-> message -> channel -> decoding -> receiver (receiver then goes back to source)
benefit segmentation
specific benefits being sought
situational determinants
specific situations where consumers plan to use a product and how it affects perception/behaviors
media strategy
spells out the media to be used and the creative considerations
for a company to benefit from public relations aspect of cause-related marketing, the company should
spend some money to publicize causes, but the amount show not be significant
what activity receives the largest share of company sponsorship expenditures
sports
centralized
staff of employees, typically located at corporate headquarters, responsible for all the organization's advertising; the department is often structured by product, advertising subfunction, end user, media, or geography
sales promotion
staff to produce dealer ads, window posters, point-of-purchase displays, and dealer sales materials
advertising analysis
states the primary advertising strategy and budget to be used, as well as the advertising objectives
formats for radio and tv commercials
straight announcement, presenter, testimonial, demonstration, musical, slice of life, lifestyle and animation
integrated marketing communications (IMC)
strategic business process (Don Schultz); GOAL: to generate short term financial returns and build long term brand and shareholder value
Be sure to study "Ad Lab 8-A" on page 266
strategic square defensive warfare offensive warfare flanking warfare guerrilla warfare bottom up
demand chain "sense and respond" view
suggests that planning starts with the needs of the target customer, and the firm responds to these needs by organizing a chain of resources and activities with the goal of creating customer value
collateral services
support functions provided by companies
a campbell's soup advertisement is designed to supper the launch of a new type of soup and to tell consumers about a special sweepstakes that is tied into the launch. what is the most likely promotional goal of this advertisement
support other marketing efforts
group system
system in which an ad agency is divided into a number of little agencies or groups, each composed of an account supervisor, account executives, copywriters, art directors, a media director, and any other specialists required to meet the needs of the particular clients being served by the group
like a good neighbor, state farm is there is an example of a
tagline
optional-product pricing
takes into account optional or accessory products along with the main product
product line pricing
takes into account the cost differences between products in the line, customer evaluation of their features, and competitors' prices
goods
tangible products such as suits, soap, and soft drinks
marketing communications media
television, radio, newspapers, magazines, mail, telephone, digital (online) alternative
de-marketing
term coined during the energy shortage of the 1970s and 1980s when advertising was used to slow the demand for products
A unique selling point proposition message strategy differs from a preemptive or generic approach in that the USP i:
testable
a unique seeling proposition message strategy differs prom a pre-emptive or generic approac in that the unique selling proposition is
testable
Marketing
the ACTIVITY, SET OF INSTITUTIONS, and PROCESSES for creating (products/services), communicating (promotions), delivering (place), and exchanging (price) offerings that have value for customers, clients, partners, and society at large.
what role does the advertising account executive (AE) play in developing campaigns?
the AE is the key go-between for the agency and the client company
Consumer behavior
the activities, actions, and influences of people who purchase and use goods and services to satisfy their personal or household needs and wants
marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Mandatories
the address, phone number, Web address, etc., that the advertiser usually insists be included within an ad to give the consumer adequate information.
Authoritative
the advertiser seeks to convince viewers that a give product is superior expert authority include some type of scientific or survey evidence assumes that consumers and business decision makers rely on cognitive processes when making purchase decisions and that they will pay attention to an ad and carefully think about the information conveyed in it
when developing marketing communications, what is the message strategy?
the approach used to deliver a message theme
appeal
the approach used to design the advertisement that attracts attention or presents information to consumers through the use of humor, fear, sex, logic, or emotions.
positioning
the association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer
what has shifted channel power from manufacturers to consumers
the availability of information about goods and services via the internet
Needs
the basic, often instinctive, human forces that motivate us to do something
Coupon Redemption Rate
the best behavioral method to measure the impact of a coupon program
from the list below, in which situations are apology strategies most often used by companies
the company violation was minor or the company cannot escape being found guilty
Everyone in an organization must understand and support _______________.
the concept of customer orientation
sell efficacy
the confidence a person has in his/her own ability to engage in the action, or to stop an undesirable behavior
The inert set is the set of brands:
the consumer has awareness of, but has neither negative or positive feelings toward
brand loyalty
the consumer's conscious or unconscious decision-- expressed through intention or behavior—to repurchase a brand continually; occurs because the consumer perceives that the brand has the right product features, image, quality or relationship at the right price
Brand loyalty
the consumer's conscious or unconscious decision—expressed through intention or behavior—to repurchase a brand continually. This occurs because the consumer perceives that the brand has the right product features, image, quality, or relationship at the right price.
What is the "total product concept?"
the consumer's perception of a product as a bundle of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs.
marketing mix
the controllable elements of a marketing program including product, price, promotion, and place
integrated marketing communications (IMC)
the controllable elements of a marketing program including product, price, promotion, and place a strategic business process used to develop, execute, and evaluate coordinated, measureable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates, and other targeted relevant external and internal audiences; the goal is to generate both short-term financial returns and build long-term brand and shareholder value
promotion
the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea
response cost
the cost or sacrifice the person will need to make to obtain the reward
value
the customer's perception of all of the benefits of a products or service weighed against the costs of acquiring and consuming it
traffic department
the department in an advertising agency that coordinates all phases of production and makes sure everything is completed before the deadline
production department
the department in an advertising agency that is responsible for managing the steps that transform creative concepts into finished advertisements and collateral materials
brand equity
the differential effect that the brand name has on customer response to the product and its marketing
unique selling proposition (USP)
the distinctive benefits that make a product different than any other. the reason marketers believe consumers will buy a product even though it may seem no different from many others just like it.
unique selling proposition
the distinctive benefits that make a product different than any other; the reason marketers believe consumers will buy a product even though it may seem no different from many others just like it
continuity
the duration of an advertising message or campaign over a given period of ime
a current trend in market communications is
the emergence of alternative media
Culture
the enduring behaviors, ideas, attitudes, and traditions shared by a large group of people and transmitted from one generation to the next
Attitude
the evaluation response—positive or negative—regarding some idea or object
in an external search for information in a purchasing decision, which is involvement
the extend to which a stimulus or task is revenant to a consumer's existing needs, wants, or values
In terms of an external search for information in a purchasing decision, involvement is:
the extent to which a stimulus or task is relevant to a consumer's existing needs, wants, or values
value proposition
the full mix of benefits upon which a brand is positioned
Consistency
the guiding principle of the four activities of the advertising management program
media planner
the individual who formulates the program stating where and when to place advertisements
intrinsic reward
the internal satisfaction
leverage point
the key element in the advertisement that taps into, or activates, a consumer's persona value system (a value, idea, or concept)
account executive (AEs)
the liaison between the agency and the client. the account executive is responsible for both managing all the agency's services for the benefit of the client and for representing the agency's point of view to the client
Response Efficacy
the likelihood that a change in behavior or actions will result in a desirable positive consequence
public relations
the management function that focuses on the relationships and communication that individuals and organizations have with other groups (called publics) for the purpose of creating mutual goodwill
complementary branding
the marketing of two brands together for co-consumption, ex mcdonalds in awl-mart
in customer relationship management (CRM) what does "share" of customer indicate to a company?
the measure of a customer's potential purchasing value
brand
the name, term, sign, or design--or a combination of these--that identifies the maker or seller of a product or service
Informational motives
the negatively originated motives, such as problem removal or problem avoidance, that are the most common energizers of consumer behavior
product line length
the number of items in the product line
effective frequency
the number of times an audience exposed to an advertisement to achieve a specific objective.
what is social responsibility
the obligation an organization has to be ethical, accountable, and reactive to the needs of society
departmental system
the organization of an ad agency into departments based on function: account services, creative services, marketing services and administration
message theme
the outline of the key idea(s) that the advertising program is supposed to convey the central part of the creative brief
product (good/service/idea)
the particular good or service a company sells
Evoked set
the particular group of alternative goods or services a consumer considers when making a buying decision
Creatives
the people who work in the creative department, regardless of their specialty.
effective reach
the percent of the audience that must be exposed to an advertisement to achieve a specific objective
cognitive message strategy
the presentation of rational arguments or pieces of information to consumers; designed to influence the cognitive component of attitude, which deals with beliefs and knowledge. divided into five types--generic, preemptive, unique selling proposition, hyperbole, and comparative.
message strategy
the primary tactic used to deliver the message theme; can be divided into three main categories that correspond with the three components of attitude--cognitive, affective, and conative.
Rotoscoping
the process of digitally painting or sketching figures into live sequences which makes it possible to present both live actors and animated characters in the same frame.
crowdsourcing
the process of outsourcing the creative aspect of an advertisement to the public. Unilever used this approach for its meat snack brand Peperami.
Marketing
the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy the perceived needs, wants, and objectives of individuals and organizations
integrated marketing communications management
the process of planning, executing, evaluating, and controlling the use of the various promotional-mix elements to effectively communicate with target audiences
advertising management program
the process of preparing and integrating a company's advertising efforts with the overall imc message
advertising campaign management
the process of preparing and integrating a specific advertising program
media planning
the process that directs advertising messages to the right people in the right place and the right time
business buying process
the process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose among alternative brands
anchor
the reference point a consumer uses to compare current and future offerings
Consumer decision process
the series of steps a consumer goes through in deciding to make a purchase
Message strategy (rationale)
the specific determination of what a company wants to say and how it wants to say it The elements of the message strategy include verbal, nonverbal, and technical components.
test marketing
the stage at which the product and marketing program are introduced into more realistic marketing settings
Evaluation criteria
the standards a consumer uses for judging the features and benefits of alternative products
Evaluation Criteria
the standards a consumer uses to judge the features and benefits of alternative products.
the brand position is?
the standing of a brand in comparison with its competitors, in the minds of customers, prospects, and other stakeholders
Creative process
the step-by-step procedure used to discover original ideas and reorganize existing concepts in new ways.
advertising
the structured and composed non-personal communication of information, usually paid for and usually persuasive in nature, about products (goods, services, and ideas) by identified sponsors through various media
Theory of cognitive dissonance
the theory that people try to justify their behavior by reducing the degree to which their impressions or beliefs are inconsistent with reality
reach
the total number of different people or households exposed to an advertising schedule during a given time, usually four weeks; it measures the unduplicated extent of audience exposure to a media vehicle and may be expressed either as a percentage of the total market or as a raw number
What is "reach?"
the total number of unique(or different) people of households exposed, at least once, to an ad at a given time.
what is the best means from the choices below to assess the value of a trade show?
the total time spend with qualified purchasing prospects
what is the best means from the choices below to assess the value of a trade show?
the total time spent with qualified purchasing prospects
Exchange
the trading of one thing of value for another thing of value
exchange
the trading of one thing of value for another thing of value
which individual from the list below works closely with the account executive to schedule the various aspects of the agency's work to ensure the work is completed by the target deadline?
the traffic manager
Motivation
the underlying drives that stem from the conscious or unconscious needs of the consumer and contribute to the individual consumer's purchasing actions
what is "Motivation?"
the underlying forces (or motives) that contribute to our purchasing actions. These motives stem from the conscious or unconscious goal or satisfying our needs and wants.
brand extension
the use of an establish brand name on products or services not related to the core brand, ex nike clothing
social marketing
the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society
when measuring consumer emotions, researchers can use questions to inquire about emotional reactions to an advertisement. what is an alternative method?
the use of warmth monitors
extrinsic reward
the value of the event or reward received
product image
the way consumers perceive an actual or potential product
product position
the way the product is defined by consumers on important attributes--the place the product occupies in consumers' minds relative to competing products
Resources
things that consumers possess varying levels of (money, education, self-confidence, etc.)
psychographic segmentation
thinking and inclination
sales promotion
those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales; usually consumer oriented and trade-oriented activities
gatekeepers
those that control the flow of information
buyers
those that have formal authority to select the supplier and arrange terms of purchase
deciders
those that have formal or information power to select and approve final suppliers
influencers
those that help define specifications and provide information for evaluating alternatives
users
those that will use the product or service
Promotional Support Conative Advertisements
tied in with other promotional efforts, including coupons, phone-in promotions, or a sweepstakes that a consumer enters by filling out the form on the advertisement or by going to a particular retail store.
What is a "Flighting Schedule?"
timeline of periods of advertising and periods of no advertising.
steps of the Advertising Pyramid
tip-action desire conviction comprehension awareness
the main responsibility of a creative within an advertising agency is
to develop advertisements and promotional materials
typically, what is the objective for a company to perform an evaluation of their existing advertising agency?
to help the client and agency work together more efficiently and effectively
what is the purpose of the wheeler-lea amendment to the ftc act
to prohibit deveptive and misleading advertising
advertising role
to promote, to inform, to persuade and to remind
advertising mission
to reach prospective customers and influence behavior, attitudes and awareness
what is the purpose of examining customers in the IMC planning stage?
to understand what customers thing, why they buy, when they buy, where they buy, and how they evaluate a product after a purchase
promotional mix
tools to reach communication objectives (advertising, promotion, PR, personal selling, etc.)
exchange
trade of something of value between two parties such as a product or service for money; the core phenomenon or domain for study in marketing
promotions that help a manufacturer push a product through the channel are called
trade promotions
Social classes
traditional divisions in societies by sociologists—upper, upper-middle, lower-middle, and so on—who believed that people in the same social class tended toward similar attitudes, status symbols, and spending patterns
Which individual works closely with the account executive to schedule the various aspects of the agency's work to ensure the work is completed by the target deadline?
traffic manager
encoding
translating the idea into a message
a cooperative merchandising agreement is a formal agreement between the retailer and the manufacturer to undertake a two-way marketing effort
true
a message is more likely to be effective when it has both visual and verbal elements, since these components will be dual coded into the persons memory
true
a unique selling proposition is an explicit, testable claim of uniqueness of superiority
true
brand positioning is not constand
true
from a manufacturer's perspective, a co-op advertising is beneficial the payments are almost always based on a certain percentage of sales
true
managers make unrealistic assumptions about communications budget when they assume there is a direct relationship bw expenditures on advertising and subsequent sales revenues
true
more than half of the time the final purchase decision is made by a consumer while in the retail store
true
more than half of the time, the final purchase decision is made by a consumer while in the retail store
true
one goal of branding is to set a product apart from its competitors
true
one reason business advertisers are using television is that is has become more difficult to reach members of the business buying center through traditional business outlets, such as trade journals
true
part of building brand image and brand equity is developing brand awareness
true
recency theory suggests that is is a waste of money when ads reach either individuals or a business that does not need a particular product or do not have an interest in the product
true
the surgeon general's warning on a pack of cigarettes is an example of an advertising constraint component of the creative brief
true
exchange
two parties with something of value for one another; desire & ability to give up something; way to communicate
situational analysis
understanding the market place through target markets, competition, micro/macro environments
from the list below, which is required for successful ethnic marketing
understanding the various ethnic groups an dwiritng marketing communiations that speak to their specific values and cultures
on southwest airlines, bags fly free is an example of which type of brand positioning
unique feature
endorsements
use of satisfied customers and celebrities to endorse a product in advertising
testimonials
use of satisfied customers and celebrities to endorse a product in advertising
when arm and hammer advertises that baking soda can be used as a deodorizer in refrigerators, which product positioning strategy is being used
use or application
Testimonials
used in the business to business sector service sector enhance credibility
consumer-oriented research
used to understand the context of a product's use
value-based pricing
uses the buyers' perceptions of value, not the sellers cost, as the key to pricing; customer driven
when a business agrees to consider ibm, dell, and hp when purchasing new computers because they are the firms that expressed interest, which stage of the b2b buying process is taking place
vendor evaluation
feedback
verifying message was received and understood (ex: redeeming of coupon)
animatic rough
very common, gives the agency something to look at without having to pay lots of money to produce the ad
of the following principles used in developing effective advertisements, which helps views move the message from short-term memory to long-term memory
visual consistency
communication objective
what firms want to accomplish through promotion
marketing objectives
what is to be accomplished by the overall marketing program; often stated in terms of sales, market share, or profitability
communication objectives
what the firm seeks to accomplish with its promotional program in terms of communication effects such as creating awareness, knowledge, image, attitudes, preferences, or purchase intentions
mass customization
when a company can make a custom product to meet client needs/wants for a low price
retail (resale) price maintenance
when a manufacturer requires a dealer to charge a specific retail price for its products
in market communications, what is product placement
when branded products or brand names are visibly featured in a movie or tv program
exclusive distribution
when the seller allows only certain outlets to carry its products
exclusive dealing
when the seller requires that the sellers not handle competitor's products
behavioristic segmentation
when, why and how people buy products
direct marketing
where organizations communicate directly with target customers to generate a response and/or a transaction
exclusive territorial agreements
where producer or seller limit territory
direct-response advertising
whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer
media compensation types
15% of the media buy; % on photography markup; Straight fees based on project; Incentives/bonuses based on performance
Product Placements
Having product images appear in movies, on tv, or in photographs in print media
Comparative Advertising
Adv. in which two or more brands are directly compared against each other on certain attributes.
Competitive Advertising
Adv. intended to build sales of a specific brand through shifting emotional appeal, persuasion, and providing info.
Pioneering Advertising
Adv. intended to stimulate primary demand, typically during the introductory or early growth stages of an offering.
Institutional Advertising
Adv. that promotes industry, company, family of brands, or some other issues broader than a specific product. -about company, not product -done for good will, targeted at investors
Statement stuffers
Advertisements enclosed in the monthly customer statements mailed by department stores, banks, utilities, or oil companies.
Corporate identity advertising
Advertising a corporation creates to familiarize the public with its name, logos, trademarks, or corporate signatures, especially after any of these elements are changed.
National agency
Advertising agencies that produce and place the quality of advertising suitable for national campaigns.
Regional agency
Advertising agency that focuses on the production and placement of advertising suitable for regional campaigns.
Local agency
Advertising agency that specializes in creating advertising for local businesses.
Product Advertising
Advertising designed to increase purchase of a specific offering. -Pioneering -Competitive -Comparative
Local advertising
Advertising by businesses within a city or county directed toward customers within the same geographical area. Also called retail advertising.
Device copy
Advertising copy that relies on wordplay, humor, poetry, rhymes, great exaggeration, gags, and other tricks or gimmicks.
Game
A sales promotion activity in which prizes are offered based on chance. The big marketing advantage of games is that customers must make repeat visits to the dealer to continue playing.
Contest
A sales promotion device in which prizes are offered based on the skill of the entrants.
Primary issues in the advertising design process
1. deciding on the leverage point to use 2. the major appeal in the advertising campaign 3. the type of executional framework to use
Three ingredients that create effective advertisements
1. development of a logical advertising management scheme for the company 2. thoughtful design of advertisements 3. careful selection of media
steps of segmentation
1. identify group with unfulfilled needs/wants 2. segment group by age, location, lifestyle, etc. 3. select 1 or more segments 4. create unique marketing strategy for that segment
seven distinct approaches to developing a positioning strategy
1. product attribute 2. price/quality 3. Use/application- 4. product class 5. Product user 6. product competitor 7. Cultural symbol
advertising management program consists of
1. review the role of advertising in the imc effort 2. select an in-house or external advertising agency 3. develop an advertising campaign management strategy 4. complete a creative brief
consumer decision process
1.Problem recognition, 2.Information search, 3.Evaluation & selection (evoked set), 4.Purchase, 5.Post purchase (cognitive dissonance)
Focus group
A qualitative method of research in which four or more people, typical of the target market, are invited to a group session to discuss the product, the service, or the marketing situation for an hour or more.
Social Class
A ranking of individuals into harmonized groups based on demographic characteristics such as age, education, income, and occupation.
Value (Core MKTG Concept)
A ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits. -benefits must exceed costs -exchange value for value
Benefit of word of mouth
A recommendation by another person carries more credibility
Awareness Set
A reduced set of possible alternatives a consumer considers after eliminating available options based on gathered information and personal preference.
Consideration/Evoked Set
A refined list that encompasses he strongest options an individual considers in a purchase decision once he/she has obtained additional information and carried out an evaluation.
Forward buying
A retailer's stocking up on a product when it is discounted and buying smaller amounts when it is at list price.
Artist
A role in the creative process that experiments and plays with a variety of approaches, looking for an original idea.
Warrior
A role in the creative process that overcomes excuses, idea killers, setbacks, and obstacles to bring a creative concept to realization.
Storyboard rough
A rough layout of a television commercial in storyboard form.
Thumbnail
A rough, rapidly produced pencil sketch that is used for trying out ideas.
Personal selling
A sales method based on person-to-person contact, such as by a salesperson at a retail establishment or by a telephone solicitor.
Sweepstakes
A sales promotion activity in which prizes are offered based on a chance drawing of entrants' names. The purpose is to encourage consumption of the product by creating consumer involvement.
Classified display ad
Ad that runs in the classified section of the newspaper but have larger-size type, photos, art borders, abundant white space, and sometimes color.
Ratings Providers
AC Nielsen, Local ratings (DMAs), obtain demographic information audiences, psychographic information can be added
Loyalty Programs
Accumulate points for doing business with a company, designed to strengthen long-term customer relationships and reduce switching
In VALSZ typology, which group is most committed to careers and family?
Achievers
Customer Acquisition
Acquire the right customers based on known or learned characteristics that will drive growth and increase margins.
Lot
Acreage outside a studio that is shielded from stray, off-site sounds.
On camera
Actually seen by the camera, as an announcer, a spokesperson, or actor playing out a scene.
Enhancd Product
Additional features, designs, or innovations that extend beyond the core product to exceed customer expectations.
Licensed brands
Brand names that other companies can buy the right to use.
Store Brand
Brands created by retailers for sale only in their store locations.
Stand Alone Branding
Brands created to be separate from a company brand that can insulate the company if there is a problem with the brand. -Lexus
4 Positioning Strategies
Breadth of product line on vertical (narrow to broad), value added on horizontal (low to high) -Broad and Low (Walmart) -Broad and High (Bloomingdale's) -Narrow and Low (Payless) -Narrow and High (Tiffany and Co.)
Media classes
Broad media categories of electronic, print, outdoor, and direct mail.
Data mining
Building customer groups and models that predict their future purchase behavior
Agent
Business entity that negotiates purchases, sales, or both but does not take title to the goods involved. -only facilitates transactions
Sustainability
Business practices that meet humanity's needs without harming future generations. -maximize today, but also worry about future -helps incorporate social responsibility into business models
Horizontal publication
Business publication targeted at people with particular job functions that cut across industry lines, such as Purchasing magazine.
Vertical publication
Business publications aimed at people within a specific industry; for example, Restaurants & Institutions.
Reseller
Business that buys products from manufacturers or wholesalers and then resell the merchandise to consumers or other buyers; also called middlemen. These businesses do not change or modify the goods before they resell them. Resellers make their produts by selling the gods they buy for more than they paid. The most common examples of resellers are retail stores and catalog retailers. Internet retailers comprise a growing portion of the resellers business segment.
Printer
Business that employs or contacts with highly trained specialists who prepare artwork for reproduction, operate digital scanning machines to make color separations and plates, operate presses and collating machines, and run binderies.
Hierarchy of Effects Model
Buyers often pass through purchase decision processes in 3 steps: -Cognitive (learn) -Affective (feel) -Behavioral (do) -works in extended decision making process -in nominal, affective comes first
Roadblocking
Buying simultaneous airtime on all four television networks.
What type of schedule would diet services use?
Flighting
Big M Marketing
Focuses on external forces that affect the org and services as the driver of business strategy. -Strategic marketing: The long-term, firm-level commitment to investment in marketing for the process of enhancing organizational performance. -supported at the highest organization level -the full process -big picture
Little m marketing
Focuses on functional or operational level of the org. -Tactical marketing: Marketing activities that take place at the functional or operational level of a firm. -nuts and bolts
Public notice
For a nominal fee, newspapers carry this legal change in business, personal relationships, public governmental reports, notices by private citizens and organizations, and financial reports.
Producer
For electronic media, the personal responsible for keeping the project moving smoothly and under budget, while maintaining the required level of quality through every step of the production process.
Poster
For public relations purposes, a sign that imparts product information or other news of interest to consumers, or that is aimed at employee behavior, such as safety, courtesy, or waste reduction.
Spillover media
Foreign media aimed at a national population that are inadvertently received by a substantial number of the consumers in a neighboring country.
Script
Format for radio and television copywriting resembling a two-column list showing dialog and/or visuals.
Marketing mix
Four elements, called the 4Ps (product, price, place, and promotion), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy.
Convenienve Goods
Frequently purchased, relatively low-cost products for which customers have little interest in seeking new info about or considering other product options.
Speechwriting
Function of a public relations practitioner to write speeches for stockholder meetings, conferences, conventions, etc.
Slotting fees
Funds paid to retailers to stock new products
Exchange (Core MKTG Concept)
Giving up something of value for something else they desire to have. 1. there must be at least 2 parties 2. each person has something of value 3. each party is capable of communication and delivery 4. each party is free to accept or reject the exchange 5. each party believes is is appropriate or desirable to deal with other party
Introduction
Goal: Awareness -innovators, early adopters -promote info w/ PR and advertising -start with fewer places
Growth
Goal: Differentiation -early majority -prices are still high -promoting differences with ads -more outlets (places)
Maturity
Goal: Stability -late majority -price still high -promotions are short term reductions (sales, coupons) -peak places, max number
Decline
Goal: What do we do with the product? -laggards -price low -hardly, if any, promotion -reducing outlets, esp ones not doing well
Marketing objectives
Goals of the marketing effort that may be expressed in terms of the needs of specific target markets and specific sales objectives.
Linkage media
In direct marketing, media that help prospects and customers link up with a company.
Sales promotion department
In larger agencies, a staff to produce dealer ads, window posters, point-of-purchase displays, and dealer sales material.
Projective techniques
In marketing research, asking indirect questions or otherwise involving consumers in a situation where they can express feelings about the problem or product. The purpose is to get an understanding of people's underlying or subconscious feelings, attitudes, opinions, needs, and motives.
Corporate Logos help with:
Recall of ads and brands
Product Development Strategies
Recognize the opportunity to invest in new products that will increase usage from the current customer base.
Catalog
Reference books mailed to prospective customers that list, describe, and often picture the products sold by a manufacturer, wholesaler, jobber, or retailer.
Type family
Related typefaces in which the basic design remains the same but in which variations occur in the proportion, weight, and slant of the characters. Variations commonly include light, medium, bold, extra bold, condensed, extended, and italic.
Business-to-business agency
Represents clients that market products to other businesses; also called high-tech agency
Descriptive Research
Research designed to explain or illustrate some phenomenon. -numbers: means, medians, std dev's -surveys, behavioral data- observations
Independent research company
Research firm that works outside of an agency. They may come in all sizes and specialties, and they employ staff statisticians, field interviewers, and computer programmers, as well as analysts with degrees in psychology, sociology, and marketing.
Exploratory Research
Research geared toward discovery that can either answer the research question or identify another research variable for further study. -focus groups, in depth interviews
Primary data
Research information gained directly from the marketplace.
Nonprobability samples
Research samples that do not provide every unit in the population with an equal chance of being included. As a result, there is no guarantee that the sample will be representative.
Quantitative research
Research that tries to determine market variables according to reliable, hard statistics about specific market conditions or situations.
Qualitative research
Research that tries to determine market variables according to unquantifiable criteria such as attitudes, beliefs, and lifestyle.
Retailing Strategy (handout)
Retailing strategy > Retail store positioning > Retailing mix > Merchandise mgmt and Store mgmt > Retail pricing, Store location, Store experience, Retail communication, and Merchandise
What is a test market used for?
Running an add in fargo, but not nebraska. Then comparing sale. Helps determine if the ad was beneficial.
photomatic rough
less common. Succession of photographs. Zoom from one part to the other
severity
level of consequence
account executives
liaison between agency and client; responsible for managing agency services as well as communicating client's point of view
fantasy
lift the audience beyond reality to a world of make believe. irrational and would never really happen common themes are sex, love, and romance works well for perfume and cologne