Advertising and Promotion
An ad for Aricept, a prescription only drug for patients in the early stage of Alzheimer's disease, was published in a Better Homes and Gardens magazine. Since the ad encourage consumer to ask their doctors about this drug and whether it would help them or someone they knew, the drug company that placed the ad is using
a promotional pull strategy
According to the low-involvement hierarchy, the consumer passes through which response sequence during the purchase decision making process?
learn, do , feel
Mobil Marketing
marketing through wireless handheld devices, cell phone, smartphones, tablets, including apps, messaging, commerce and customer relationship management.
Sustainability
meeting the needs of the present without compromising the ability of future generations to meet their own needs
direct marketing
organizations communicate directly with target customers to generate a response and/or a transaction
company created touch points
planned marketing communication messages created by the company such as advertising, website, social media, news/press releases, packaging brochures and collateral material, sale promotions and point of purchase displays along with other types of in-store decor. Company created touch points account for a large part of an IMC program and have the advantage of being under the control of the marketer.
Ilon heard a strange popping noise under the hood, he knew the car needed the services of a mechanic. The noise triggered _______ stage of the consumer decision-marketing process.
problem recognition
Momentum, a car manufacturer, positions one of its convertible as the best tanning tool known to man. This scenario would reflect a positioning strategy based on
product attributes and benefits.
promotional strategy
programs designed to to persuade the trade to stock, merchandise, and promote a manufacturer's products are part of a promotional push strategy.
Advertising Agency
reasons for Using and Ad Agency- Highly skilled specialist, specialization in a particular industry, objective viewpoint of the market, and broad range of experience. Definition of Ad agency- is a service organizations that specialized in planning and executing advertising programs for its clients. agency Organization and Structure- *Departmental system- all agency functions are set up as a separate department. *Group Systems- Individuals from each department work together in groups to service particular
Competitive Analysis
refers to analyzing the competition in the marketplace and searching for a competitive advantage.
exchange
the act of obtaining a desired object from someone by offering something in return
Target marketing process steps
* Identifying markets with unfulfilled needs- In this step consumers with similar lifestyles, needs, and wants are isolated and increases the marketers knowledge of their specific requirements. * Determining market segmentation- In this step a market is divided into distinct groups that have common needs and will respond similarly to a marketing action. *Selecting a market to target- This step determines how many segments to enter, and which segments offer the most potential. Position through marketing strategies- This step determines the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it apart from the competition.
Traditional Response Hierarchy Models
*AIDA model- depicts the stages in the personal selling process. *Hierarchy of effects model- shows the process by which advertising works. *Innovation adoption model- shows the stages a consumer passes through in the process of adopting a new product. *Information processing model- a model of the process through which a consumer must pass to be inflienced by advertising
Alternative response hierarchies
*Standard learning=Lean-feel-do. The consumer is viewed as an active participant. *Dissonance/Attribution=do-feel-learn. Occurs when consumers must choose between two alternatives that are similar in quality but are complex. *Dissonance- where consumers first behave, they develop attitudes or feelings as a result of that behavior, and then learn or process information that supports the behavior. *Low Involvement=learn-do-fell. Occurs when involvement in the purchasing decision is low, there are minimal differences among brand alternatives.
agency compensation
*commissions from media *fee-cost and incentive based systems *incentive based compensation *cost plus agreement *the future of Agency compensation
Selecting a target market
-Determine how many segments to enter -Determine which segments offer the most potential Select the most attractive segment, marketers must examine various situations aspects of the market such as sales potential, growth opportunities, competition currently in that market, a company's own ability to compete, and its own ability to market to the segment.
Which type of ad agency is most likely to offer its clients an extensive range of marketing, communications and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media?
Full Service Agency
Collateral Services
-marketing research -package design -consultants -photographers -printers -video production -event marketing
Buying situations segmentation criteria
1- Benefits sought- grouping consumers on the basis of the benefits sought in a product. 2- Behavioristic segmentation- dividing consumers based on various buying behaviors, usage levels, light medium, heavy usage account for 80% of products sold, user types (techies vs. avg. consumers) loyalties (brand switchers vs. loyal customers). 3. Other outlets- Outlet type, Awareness and intentions
Type of Advertising Agencies & Services
1. Account Services- Link between the ad agency and its clients. *Account Executive: Under the advertiser's marketing and promotion needs and interprets them to agency personnel. -Presents agency recommendations and obtains client approval. 2. Marketing Services * research department: Gathers, analyses, and interprets useful information. *Account planners: Gather information that is relevant to the client's product or service. *Media Department: Analyzes, selects, and contracts for space or time in the media. 3. Creative Services *Responsible for the creation and execution of advertisements *Copywriters-Conceive ideas for the ads and write the headlines, subheads, and body copy. *Art department- Responsible for how the ad looks *Traffic department- Coordinate all phases of production.
Participants in the Integrated Marketing Communications Process
1. Advertisers or Clients: The company or organization that has the product, service, or cause to be marketed. Pays for advertising and promotions. 2. Advertising agency: The company or organization that - Specializes in the creation, production, and/or placement of the communications message. May provide other services to facilitate the IMC process. 3. Media Organizations: Channels -provide information, entertainment (to audience), and an environment for firm's marketing communications message 4. Specialized Marketing Communication Services Organizations: Direct Marketing agencies- develops and implements direct marketing programs. Sales promotion agencies- develop promotional programs such as contest and sweepstakes, premium offers or sampling programs. Digital/Interactive agencies- develop websites for the internet and helps marketers as they move deeper into the realm of interactive media. 5. Collateral Services Organizations: Collateral services- Support functions used by advertisers, agencies, media organizations, and specialized marketing communication firms.
Positioning strategies and Brand examples
1. Attributes/benefits- A common approach is setting the brand apart from competitors on the basis of specific characteristics or benefits, which are important to customers when making purchases decisions. 2. Price/quality- price is used as a characteristic of the brand. If a product is positioned as high quality, price may be a secondary consideration. another option is to focus on product quality or value offered at a competitive price. 3. Use/ application- This strategy associates the brand with a specific use. This approach can be an effective way to expand usage of a product. 4. Product class- This strategy positions the product against a Product in another category, rather than against a competitor. 5. Product user- This strategy associates a brand with a type of person or group that uses a product or service. 6. Competitor- This strategy positions a company or brand against a competitor. 7. Cultural symbols- This strategy uses a cultural symbol to differentiate a product from competitors (e.g. the jolly green giant, tony the Tiger.
An ad for Aricept, a prescription-only drug for patients in the early stages of Alzheimer's disease, was published in a Better Homes & Gardens magazine. Since the ad encouraged consumers to ask their doctors about this drug and whether it would help them or someone they knew, the drug company that placed the ad is using:
A promotional push strategy.
Target Market Process
The Process by which marketers develop different marketing strategies to satisfy different customer needs is called target marketing.
Agency Compensation Methods
1. Commissions from Media- *Commission system- Receiving specified commission from the media on any advertising time or space purchased for the client, usually 15% 2. Negotiated commission system- *Based on a sliding scale that becomes lower as the clients media expenditure increase. (*8%) 3. Fee, Costs, and Incentive Systems *Fee Arrangement (2 types) *Fixed-fee method- Basic monthly fee is charged for services provided and media commissions earned are given to the client. *Fee-Commission combination- Media commissions received are credited against the fee *Cost-Plus Agreement- agency is paid a fee based on the costs of its work plus some agreed-on profit margin. *Incentive-Based Compensation- Agencies are compensated above their basic costs, if they achieve or exceed results as measured by agree-upon metrics. *Percentage charges- Adding a mark-up of percentage charges to various services purchased form outside providers *Market research *Artwork *Printing *Photography *Other services or material
Appendix: How agencies add value to a clients business
1. Developing and producing creative ideas that are fresh and appropriate. 2. Ensuring that agency diciplines and functions are integrated and that agency teams and divisions collaborate well on behalf of the client. 3. Working in a collaborative way with the client by creating an environment of low egos and high mutual respect. 4.Developing ideas and programs that can be integrated into multiple communication channels. 5. Assigning its best people to the clients business and making its top executives available when needed. 6. Evaluating brand drives like awareness, consideration, and purchase intent. 7. Providing quidance and solutions in a new media and technologies.
Specialized Services
1. Direct_Marketing Agencies- Provide a variety of services: Database analytics and management, Direct mail, research and media services, creative and production capabilities. @. Sales Promotion Agencies- Involved with the developing and managing of sales promotions programs. 3. Public Relations firms- Develops and implements programs to manage organizations: Publicity, image, affair with consumers and other relevant publics. 4. Digital/interactive agencies- Specialize in the development and strategic use of various digital marketing tools, websites, banner ads, SEO, mobile, social media campaigns
Marketing and Promotions Process Model
1. Marketing Strategy and Analysis 2. Target Marketing Process 3. Marketing Planning Program Development 4. Target Market
The most common types of advertising
1. National adv.: Done by large company, nationwide and most regions of the country, well known brands. 2. Retail/local adv.: Done by local adv. to encourage to shop at a specific store. Use local services promotions often uses direct action adv. designed to produce traffic. 3. Primary versus selective demand adv.: Primary is designed to stimulate demand for general brand or entire industry. selective demand is used to create demand for a specific company brands. 4.Advertising to businesses and professional markets: * Business to business adv.- target individuals who buy or influence purchase of industrial goods or serves for their company. *Professional adv.: targets doctors, lawyers, dentists, engineers, or professors to encourage them to use their products in their business. 5. Trade Adv.: targets marketing channel members such as wholesalers, distributors, and retailers. Goal is to encourage channel members stock, promote and resell the manufacturers branded products to their customers.
The Social Consumer Decision Journey
1. Social media- consumers can connect with one another, discuss products/services, and interact with marketers. 2.Consumer decision journey framework *marketers should target stages in decision journey. *Marketers should consider role of owned media
Selecting a Target Market
1. determine how many segments to enter 2. determine which segments have greatest potential
Developing a positioning platform
1. identify the competitors, there are many brands in the market. 2. assess perceptions of them, know consumers, who they are, do your research on how they perceive the competitors. 3. determine their positions, determine their choice (price it is) certain quality or performance, resale value, and style. 4. analyze consumer preferences, what is there ideal brand/or preference. 5. make the positioning decision, what kind of store will the product be in, what position will you use. 6. monitor the position- monitor the decision you make and the position you desire.
Other types of agencies
1.Creative Boutiques- *Small ad agencies that provide only creative services Advantages- Turn out inventive creative work quickly provide more attention and better access to creative talent. 2. Media specialist Companies *Specialize in the buying of media. *Agencies and clients develop media strategy *Media buying organizations implement strategies, and buy time and space. *Rapid growth of programmatic buying- the wide range of technologies that are automating the buying, placement, and optimization of advertising media.
positioning through marketing strategies
A common approach to positioning is setting the brand apart from competition on the basis of the specific characteristics or benefits offered.
value
A customer's subjective assessment of benefits relative to costs in determining the worth of a product. Weighed against cost of acquiring and consuming it. Benefits can be functional, experimental, and psychological. 1. Functional: the performance of the product. 2. Experimental: what it feels like to use the product. 3. Psychological: Feelings such as self-esteem or status that result from owning a particular brand.
Direct Market Response Advertising
A product is promoted through and ad that encourages the consumer to purchase directly fro the manufacturer. This is a major tool of direct marketing. these have become very popular over the last 2 decades.
instrinsic touch points
Are interactions that occur with a company or brand during the process of buying or using the product or service such as discussions with retail sales, personal or customer service rep. Instrinsic TP are not often under the direct control of the marketing dept. or IMC program.
Which of the following techniques can marketers use to ensure their brand is included in the consumer evoked set?
A. Create top-minded awareness. B. Use comparative advertising to encourage consumers to consider their brand along with market leaders. C. Use point-of-purchase displays to draw attention to a brand in the store. D. All of the above (answers)
Momentum, a car manufacturer, positions one of its convertible as "the best natural tanning tool known to man." This scenario would reflect a positioning strategy based on: A. product attributes and benefits. B. cultural symbols. C. product user. D. price/quality. E. product class.
A. product attributes and benefits
Successful communication depends on
A. the nature of the message B. the interpretation of the message by the audience C. the environment in which a message is received D. the receivers perception of the source of the message E. All of the above (answer)
participants in the Integrated Marketing Communication Process
Advertisers or Clients Advertising Agency media organizations Specialized marketing communication services organizations *direct marketing agencies *sales promotion agencies *digital/interactive agencies *Public relations firms Collateral Services organizations * collateral services
Consumer Decision Process
Advertising and promotion aim at influencing consumers toward purchase decision. Understanding consumer behavior is critical.
Strategic Marketing Plan
Allow for an understanding of market opportunities, competition, and market segments.
Internet Marketing
Allows for a two way flow of communication whereby users can participate in and modify the form and content of the information they receive in real time. They can alter, and share info and images., makes inquiries, respond to questions, and make purchase online.
Repositioning
Altering or changing the position of a product or brand. It occurs because of stagnant or declining sales or because of anticipated opportunities in other market positions. This strategy is difficult to accomplish because of entrenched perceptions and attitudes toward the product or brand.
personal selling
Any form of direct contact between a salesperson and a customer.
Customer oriented touch points
Are interactions that occur whenever a customer or prospect contacts a company. These are inquiries or complaints regarding the use of a product or service directly to the company.
components of attitude
Beliefs about an object/brand on an (important) criteria/attribute: How likely is it that Nike running shoes provide good cushioning? Very likely---- Very unlikely Importance of the attribute: Good cushioning in a running shoes is: Very important ---not at all important Attitude toward the object: How do you feel about purchasing Nike running shoes? Very good------ Very bad.
Which of the following refers to the amount of client money that agencies spend on media purchases and other equivalent activities?
Billings
Which of the following refers to the amount of client money that agencies spends on media purchases and other equivalent activities?
Billings
comparison of Advertising Organization Systems
Centralized Advantages- Facilitated communications, fewer personnel required, continuity in staff, allows for more top-management involvement. Centralized Disadvantages- Less involvement with and understanding of overall marketing goals, longer response time, inability to handle multiple product lines. Decentralized Advantages- Concentrated managerial attention, rapid response to problems and opportunities, increased flexibility. Decentralized Disadvantages- Ineffective decision making, internal conflicts, miss-allocation of funds, lack of authority. and internal rather than external focus. In-House agencies Advantages- cost savings, more control, increased coordination, stability, access to top management.In-House agencies Disadvantages- Less experience, less objectivity, less flexibility, less access to top talent. definition to In-house agencies- is an advertising agency that is set up, owned by the advertiser.
Ways to change attitudes
Change beliefs about your brand on an important attribute- Increasing or changing the strngth or belief rating of a brand on a particular attribute. For instance AT&T has the fewest dropped calls. change perceptions of the value of an attribute: important vs. not- Changing consumers perceptions of the importance or value of an attribute. For instance, demonstrating the safety of a Mercedes. Benz. Add a new attribute to the attitude formation mix- Adding a new attribute to the attitude formation process. For instance, Ragu's organically grown tomato sauce. change a perception or beliefs about a competing brand- changing perceptions of beliefs ratings for a competing brand. For instance, Hyundai's ads show that their cars are reliable.
Market Segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
post purchase evaluation
Cognitive dissonance- psychological tension/discomfort. close call among choice Big vs. small in risk/cost, financial or psychological. different levels of involvement (high vs low importance) Resolve tension/dissonance consumers seek advise, opinions to reduce it Advertisers should prevent this or help reduce it by providing the reassurance reinforcement campaign directed
________are thoughts that occur to a consumer when reading, viewing,, and/or hearing a communication.
Cognitive responses
Rosa Martinez sees an ad for DKNY jeans in the copy of Vanity Fair Magazine she is reading. The ad would be considered a ______ while Vanity Fair would be considered a _______.
D. message: channel
Consumer decision-making
Decision Stage- This introduces the consumer decision making process and the influence of internal psychological process on the consumer behavior. Problem recognition- consumer perceives a problem, need, or want and becomes motivated to to solve or satisfy it Information search- looking for information needed to make a decision. Alternative evaluation- considering other brands or alternatives Purchase decision- actual purchase of the product or service Post-purchase evaluation- compares level of performance with expectations, it results in consumer becoming satisfied or dissatisfies. Psychological Process-are the internal psychological processes that occur at each stage of the decision process. Motivation- factors that compel a consumer to take a particular action. Perception- the process by which consumer receive,select, organize, and interpret information to create a meaningful picture. Attitude formation- overall feeling toward, or evaluation of, an object Integration- the way product knowledge, meanings, and beliefs are combined to evaluate two or more alternatives. Learning- process by which individuals acquire the purchase and consumption knowledge they apply to future related behavior.
socioeconomic segmentation
Dividing the market on the basis of income, education, or occupation
contact/touch point
Each and every opportunity a consumer has to see or hear about a company and/or its brands or have an encounter or experience with it.
Persuasion/consumer response process and methods for obtaining target feedback
Effective tests/methods / Persuasion Process Circulation reach / exposure/presentation listener, reader, viewer recognition/ Attention recall, checklists / comprehension brand attitudes, purchase intents/ Message acceptance recall over time / Retention Inventory, POP, scanner date / Purchase behavior
forms of evaluating criteria
Evaluative criteria are the dimensions or attributes or service that are used to compare different alternative. Types of criteria are: *Objective- concrete attributes that are tangible and can be directly judged or experienced by the consumer, such as price or warranty Subjective- based on abstract attributes that are intangible and more subjective in nature as style, appearance, or product image.
Retail giant Target has an internal creative department that handles the design of its weekly circulars, direct mail pieces, in-store displays, promotions, and other marketing materials. This is an example of an in-house agency
False
Types of Advertising Agencies & Services
Full-Service Agencies *Marketing, communications, and promotions services, planning, crating, and producing the advertising, performing research, selecting media. *Non-advertising services-Strategic market planning, sales promotions, direct marketing, and digital/interactive capabilities, package design, and PR and publicity.
Browns food determined that Southerners preferred milder mustard that in the Northeast. This lead the company to develop a new "Southern Style Mustard." This strategy best exemplifies
Geographic segmentation
Brown's Foods determined that Southerners preferred milder mustard than those in the Northeast. This led the company to develop a new "Southern Style Mustard." This strategy best exemplifies:
Geographic segmentation (was on quiz #2)
J & J is am advertising agency that handles each of its clients by assigning individuals from various departments to work together as a team on their accounts. With respects to the organizational structures employed by a full-function advertising agency, j & J is using a _____ organizational system
Group
Sources of external info search
Here are some possible sources of external search Personal sources-friends, relatives, co-workers, does this include face-book fans Market sources- information from advertisers, salespeople, in-store displays and the internet. Public sources- articles in magazines or newspapers Personal experience- handling, examining, or using the product. Determining how much and which sources of external information to use depends on : the info search would be extensive if- The importance of the purchase decision The effort needed to acquire information past experience the degree of perceived risk associate with the purchase the time available
The response process
How consumers would respond to ad/comm. *Delineates the steps involved in taking potential purchasers from unawareness of a product to readiness to purchase it. *Identifies which stage in the hierarchy a potential buyer is in. *Used as intermediate measures of comm. effectiveness. *Provides insight into promotional foals and strategies marketers might pursue in different situations.
Some of the marketing research methods used to probe the mind of the consumer.
In-depth interviews- Face-to-face situations in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions. Project techniques- efforts designed to gain insights into consumers values, motives, attitudes, or needs that are difficult to express or identify by having them project these internal states upon some external object. Associated tests- a technique in which an individual is asked to respond with the first thing that comes to mind when he or she is presented with a stimulus, the stimulus may be a word, picture, ad. focus group- a small number of people with similar backgrounds and or interests who are brought together to discuss a particular product, idea, or issue. *Psychoanalytic Theory- deep motive can only be determined by probing the subconscious.
Information integration process
Integration of information- the way product knowledge, meaning and beliefs are combined to evaluate two or more alternatives. Different ways to integrate information- complex decisions rules (e.g. Fishbeins multi-attribute attitude models- based on 'always rational consumer. Less complex heuristics (e.g. the one on sale the one my mom use, ect.) Price, promotion, feelings Need to know the attirbutes that form the basis for a purchase decision- determinant attributes (e.g., choosing among schools.)
Information Search
Internal Search- retrieval of information stored in memory, past experiences, and prior knowledge/info External search- internal, personal, public sources, market-controlled sources, and personal experience. Extent of external source to be used depend on the: Importance of the purchase decision Effort needed to acquire information Amount of past experience relevant degree of perceived risk associated with the purchase time available.
Target Marketing
Involves four basic steps: identifying markets with unfulfilled needs, segmenting the market, targeting specific segments, and positioning one's product or service through marketing strategies.
sales promotion
Is generally defines as those marketing activities that provide extra value or incentives to the sales force, distributors, or the ultimate consumer and can stimulate immediate sales. Sales promotion is broken up into 2 major categories. *Consumer oriented: targeted to the ultimate user of a product or service and includes coupon, sampling, premium, rebates, contests, sweepstakes, and various point of purchase materials. These tools encourage immediate purchase. *Trade oriented: Targets intermediaries such as whole- salers, distributors, and retailers *trade oriented
brand identity
Is thought of as the intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and or the strength of consumer attachment to a company name, brand name, or trademark.
What is brand selling?
It is a well constructed, fashionable purse or product. Or the symbolic meaning or emotional value of owning or using the product. a brand should make sure it builds a favorable or meaningful identity for its product among consumer. That is what branding is all about.
Promotional decisions
Marketing element referring to selection of the various types of communications that marketers use to inform, persuade, or remind customers of their products.P advertising direct marketing interactive marketing sales promotion publicity and public relations personal selling.
Benefits of Advertising
Most cost-effective way to reach large numbers of consumers Builds brand equity by influencing consumers' perceptions
publicity
Non-personal communication regarding an organization, product, service or idea directly paid for or run-under identified sponsorship, in the form of a news story, editorial, or announcement about an organizations or its products and services. Like advertising, publicity involves non-verbal communication to a mass audience and unlike advertising publicity is not directly paid for by the company.
Bases for Segmentation
Numerous criteria have served as the bases for the segmentation process, geography, demographics, psychographics, benefits sought, socioeconomic, behavior, buying situation, benefits
opportunity analysis
Opportunity analysis is the careful analysis of the marketplace that can lead to alternative market opportunities.
packaging
Packaging is the customers first exposure to the product, it must make a favorable impression.
Paid, Owned, and Earned Media
Paid- pay for all advertising, television, radio, management, newspaper, outdoor, direct mail,in-store media, online banner ads., videos, paid search, and social media. Owned- shareholders control media, Websites, microsites, mobile apps, facebook, twitter, instagram, snapchat, blogs, brochures, and in-store displays Earned- Adapted from owned, consumer generated, uncontrollable. Word of mouth, social media mentions comments, shred videos, pictures, posts, reposts, online reviews, online communications and media coverage.
Communication Channels
Personal Channels- involve direct, face to face contact with target individuals or groups *Many companies work to generate positive word-of-mouth discussions for their companies or brands-- Buzz marketing, consumer-generated marketing, and viral marketing. In viral marketing, seeding: choosing the initial group of consumers who will start spreading the message is critical. *Non-personal channels or mass media with no direct, personal contact between sender and receiver.
Marketing planning program
Product Decisions Promotional Strategy Distribution Channels Price Decisions These are four types of decision that will influence and interact with the promotional program.
The Marketing Mix
Product, Price, Place, Promotion The basic task of marketing is combining these four elements into a marketing program to facilitate the potential for exchange with consumers in the marketplace. *Many Companies recognized that they need to integrate various marketing communications efforts, such as media advertising, direct marketing,, sales promotions and public relations to achieve more effective marketing communication.
Cognitive response categories
Product/message thought- directed at the product or service-related claims that include *Counterarguments-thoughts that are apposed to the position taken in the message. *support arguments- thoughts that affirm or support the claims in the message. Source-oriented thoughts- directed at the source of the communication *source making the claims-negative thought about the spokesperson or organization *source making the claims- favorable thought about the spokesperson/organization making the claims. Ad execution thoughts- thoughts about the ad itself, including execution factors such as creativity, quality, colors, or voice tones.
The modern world of Marketing
Rapidly changing media environments: *Mass media losing viewers, readers, listeners to digital media. *Consumers actively co- producing of messages and branded content. * Information now obtained from a myriad of sources/media- paid, owned, earned media. Advertising spending has shifted from traditional media to online digital advertising formats and social media. *Largest category of Internet advertising is paid search on search engines. *Growth in mobile marketing. * the two largest advertising media are television and internet/digital media.
IMC plan Model
Review of marketing plan 1. Analysis of promotional program situation, external and internal. 2. analysis of the communications process- objective setting and budget determination. 3. Develop integrated marketing communications program. 4. Integrate and implement marketing communication IMC program.
Heuristics
Sometimes consumers make their purchases decisions using more simplifies decision rules. Such as familiar products, or priced based, cheapest one, and promotional based, get a price reduction through a coupon, rebate, or special deal.
Public Relations
Strategic communication process that builds mutually beneficial relationships between organizations and their public. It usually has a broader objective than publicity, its purpose is to establish and maintain a positive image among its various publics.
What is Marketing?
The Activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. This is a revised definition of Marketing developed by the american Marketing Association in 2207.
Organizing for Advertising and Promotion in the Firm: The clients Role
The Centralized vs. Decentralized system or In-House Agency: Factors Affecting How Companies Organized for IMC- 1. Size of the organization 2. Number of products it markets 3. Role of advertising and promotion in the marketing mix 4. Allocated budget 5. Marketing organization structure
Advertising Department under a Centralized System
The advertising or marcom manager controls the entire promotions operation, including budgeting, coordinating creation and production ads, planning media schedules, monitoring and administering the sales promotion programs for all the company product or services. Advertising manager- is responsible for all promotions,activities, except sales (in some companies) this individual has the title of Marketing Communications Manager.
The ELM model(the elaboration likelihood model)
The attitude formation or change process depends on the amount and nature of elaboration, or processing, of relevant information that occurs in response to a persuasive message. This model recognized two basin routes to persuasion or attitude change. Elaboration likelihood is a function of motivation and ability. *central route to persuasion- the receiver is an active participant in the comm. process. The ability and motivation to attend, comprehend, and evaluate the message is high. *peripheral route to persuasion- the receiver lacks the motivation or ability to process information and is not likely to engage in detailed cognitive processing. Rather than evaluating the information in the message, the receiver relies on peripheral cues or cognitive shortcuts. *when central processing of an ad occurs, the ad's ability to persuade depends on the receiver's *Under the peripheral route to persuasion, ads should use effective peripheral cues such attractive and highly relevant celebrity endorser might lead consumers to a positive attitude toward the ad and then toward the brand.
marketing planning development
The development of the marketing strategy and selection of a target markets tell the marketing department which customers to focus on and what needs to attempt to satisfy.
Branding
The goal of branding is to (1) build and maintain brand awareness and interest. (2) develop and enhance attitudes toward the company, product, or service, and (3) build and foster relationships between the consumer and the brand.
Consumer Behavior
The process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services. A marketers success in influencing purchase behavior depends on how well he/she understands consumer bahavior. One must know the specific needs consumers are trying to satisfy and how those needs translate in to purchase criteria. For many products and services, purchase decisions are the result of a long, detailed process that may include an extensive information search, brand comparisons and evaluations, and so on. Other purchase are more incidental.
target marketing process
The sequence of activities aimed at assessing various market segments, designating certain ones as the focus of marketing activities, and designing marketing mixes to communicate with and make sales to these targets.
Evaluation of Alternative
This is the 3rd stage, alternative evaluation process and the concept of the evoked set. Its merely a small number of brands identified as purchase options- satisfying their needs and or solving their problems. The size depends on the - importance of the purchase Time and energy spent comparing alternatives. *the goal of most advertising and promotional strategies is to increase the likelihood that a brand will be included in the consumers evoked set and considered during alternative evaluation.
The selective information processing/ perception process
This present the selective perception process, which depends on internal factors, beliefs, experiences, needs, moods, expectations, and the characteristics, size, color, intensity, context, or a stimulus. Selective exposure- consumers choose whether or not to make themselves available to information. For instance, when changing television channels. Selective attention- the consumer chooses to focus on certain stimuli while excluding others. Selective comprehension- interpreting information on the basis of attitudes, beliefs, motives, and experiences. Selective retention- consumers do not remember all the information they see,hear, or read, even after paying attention to and comprehending it.
Problem Recognition and Sources
This slide shows what happens in the fist stage of the decision making process, problems recognition. This occurs when the consumer perceives a need and becomes motivated to solve the problem. Recognition that there is a problem can be triggered by both inter and external factors. Out of stock- an existing supply must be replenished. Dissatisfaction- consumer become dissatisfied with the current state of affairs and or product being used. New needs/wants, changes in consumers lives often result in new needs/wants. Related product/purchase, needs stimulated by the purchase of another product. Market induced recognition, marketers encourage consumers to be dissatisfied with their current situation, and they try to create new needs and wants. New products, innovative products are introduced.
Summarizing the response process and the effects of advertising.
Three critical intermediate effects between advertising and purchase *cognitive-thinking dimension *post purchase experience, feedback dimension based on purchasing and usage outcomes Effects of advertising should be evaluated using these three dimensions Important to learn as much as possible about target audience and how it may respond to advertising and others forms of marketing communication.
promotional push strategy
To push the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade Also the information flow goes as follows, producer, wholesaler, retailer, consumer.
Maslow's Hierarchy of Needs
To understand the reasons underlying consumer purchase behavior. Marketers devote considerable attention to examining motives,which are factor that compel a consumer to take a particular action. Maslow's Hierarchy of needs theory suggests five basic level of human needs, arranged in a hierarchy based on their importance. Lower-level needs are an ongoing source of motivation for consumer purchase behavior. People are unlikely to move through the needs hierarchy in a stair-step manner. Because basic, lower-level needs are met in most developed countries, marketers often target consumers higher-level needs in order to sell products Advertising can be used to show how a brand can fulfill these needs.
A cost-plus system requires that the agency keep detailed records of the costs it incurs in working on a clients account.
True
A cost-plus system, requires that the agency keeps detailed records of the costs it incurs in working on a clients account.
True
According to marketing executives, the biggest obstacle to implementing integrated marketing communications (IMC) is the lack of people with the broad perspective and skills to make it work
True
According to marketing executives, the biggest obstacle to implementing integrated marketing communications (IMC) is the lack of people with the broad perspective and skills to make it work.
True
One way advertisers attempt to influence consumers perceptual process is through the use of songs popular with the target audience.
True
Retail giant Target has an internal creative department that handles the design of its weekly circulars direct-mail pieces, instore displays, promotions, and other marketing material. This is an example of an in-house agency.
True
Decentralized Brand Management system
With separate manufacturing research and development sales, and marketing departments for various divisions, product lines or businesses.
product symbolism
what a product or brand means to consumers and what they experience in purchasing and using it
direct channel
a distribution process that links the producer and the customer with no intermediaries
evoked set
a group of brands resulting from an information search from which a buyer can choose The Concept of evoked set is important to marketers. The goal of mist advertising and promotional strategies is to increase the likelihood that a brand will be included in the consumers evoked set and considered during alternative evaluation. *Choose for a product category (e.g. deodorant, fragrances, beer, ground coffee, blue jeans, phone.Discuss the evoked set (brand identified as purchase options) for the category among adults 18-34 *How a marketer (not currently in the set) might attempt to influence consumers to gain consideration- be included in the evoked set?
Elements of the Promotional Mix
advertising, public relations, sales promotion, personal selling, social media
touch points
an ______refers to 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.
Advertising
any paid form of non-personal, mediated communication. *about an organization, product, service, or idea. *with an identified sponsor *No immediate feedback from audience, with digital you get immediate feedback. *Before the message is sent, the advertiser must consider how the audience will interpret and respond. * Advertising is the best known and most widely discussed form of promotion, probably because of its pervasiveness. * The paid aspect of this definitions reflects the fact that the space of tie for an ad message must be bought. Exceptions to this is the Public Service Announcement, whose time or space may be donated. *Non-personal means that the message is delivered to a large group of individuals, often at the same time. It also means that there is no opportunity for immediate feedback from the recipient.
Market Oppertunities
are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfies, and where it can compete effectively. They can also be identified by examining the marketplace and observing the demand trends and competition in various market segments.
Purchase decision
based on the preceding process of evaluating a purchase intention is made-but not always Intention is not purchase Actual purchase may be immediate or delayed Product trial differs from repeat purchase
Contemporary Market Approach
began in the 1980's, this approach to marketing communications is coordinated, consistent, and presents a unified image in the marketplace. Various tools are coordinated with traditional media advertising to create a unified, effective communications program. Prior to the 1980's most marketing and promotional functions were planned and managed separately. they had different budgets, views of the market, goals and objectives which resulted in a lack of coordination, consistency, and synergy. these are the tools controlled under an umbrella 1. packaging 2.sales promotion 3.direct response 4. point of purchase 5. mass media advertising 6.public relations 7. interactive marketing 8. Direct marketing 9. Special events
Product Decisions
branding (favorable identity/meaning, equity) and packaging (first impression matters)
which of the following is and example of a marketing exchange?
c. In return for painting her fence, Mrs. Maloney gave Larry a box of homemade fudge.
Simplified decision rules such as "Always buy the largest size of the cheapest priced detergent" or "Only buy motor oil if the manufacturer is offering a rebate" are:
called heuristics
advertising agencies
companies that specialize in the creation of ads for placement in media that accept payment for exhibiting those ads *full service agencies account services *marketing services *creative services *creative boutiques *media specialist
marketing channel
consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
phychographic segmentation
dividing the market using groups' values, attitudes, and interests, basis of personality, lifecycles, and lifestyles.
Integrated Marketing Communications
coordinate various promotional elements and other marketing activities that communicate with a firm's customers. Recognizes the added value of a comprehensive plan that: *Evaluates the strategic roles of a variety of communication disciplines *Combines the disciplines to provide clarity, consistency, and maximum communications impact. Ensures all marketing and promotional activities project a consistent, unified image. * A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines to provided clarity, consistency, and a maximum communications impact. * Many agencies acquire PR sales, sales promotion, and direct marketing companies that touted themselves as IMC agencies, a one stop shop for their clients. *The integrated marketing communication approach is to seek to have the company's marketing and promotional activities project a consistent unified image to the market place.
Omni-channel retailing
creating a seamless cross-channel buying experience that integrates in-store, online catalogs, and mobile apps shopping
Gatorade sports deink has defined its target market as 18-34 year old males who are actively in sports. Which two bases of segmentation is Gatorade employing?
demographic & psychographic
Gatorade sports drink has defined its target market as 18-34 year old males who are active in sports. Which two bases of segmentation is Gatorade employing?
demographic and psychographic (was on quiz 2)
For which of the following products is the consumer most likely to experience cognitive dissonance?
diamond engagement ring
distribution channel
direct or indirect
Market segments
distinct consumer groups within a market who have common needs
the market segmentation process
divides a market into distinct group that will respond similarly to marketing actions
The Market segmentation process
divides a market into distinct groups that will respond similarly to marketing actions ( was on quiz #2)
geographic segmentation
dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods
The ____ is a model that addresses the differences in the ways consumers respond to persuasive messages and discusses two routes to persuasion- central vs peripheral
elaborated likelihood model
Evaluating Agencies
financial audit and qualitative audit
J & J is an advertising agency that handles each of its clients by assigning individuals from various departments to work together as a team on their accounts. With respect to the organizational structures, J&J is using a organizational system
group
Spalding ran an advertising promotion its Top Flight golf balls as the brand that is the most durable and goes the farthest. This ad Campaign attempted to influence consumers attitudes by
increasing or changing the strength or belief rating of the brand on an important attribute
brand equity
intangible asset of added value
undifferentiated marketing
involves ignoring segment differences and offering just one product or service to the entire market.
differentiated marketing
involves marketing in a number of segments, developing separate marketing strategies for each
Communication
is defined as passing of information, the exchange of ideas, or the process of establishing a commonness or oneness of thought between a sender and a receiver. *Success depends on the 1. Nature of the message 2. audiences's interpretations
competitive advantage
is something special a firm does or has that gives it an edge over competitors.
target marketing strategy
it involves four basin steps 1. identifying markets with unfulfilled needs, 2. segmenting the market, 3. targeting specific segments 4. Positioning one's product or service through marketing strategies
Price Decisions include:
what can and should be charged (cost, demand, competition, value, quality, advertising.
demographic segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle
Florence is watching television and sees a commercial in which Sarah Jessica Parker is endorsing a hair care product. Florence thinks to herself, "that girl was in that scandalous show , Sex in the City. I wouldn't buy anything she promotes. This is an example of a
source derogation
Model of Communication Process
source/ sender- the person or organization with information to share. *Message- the information the source hopes to convey and encoding- putting thoughts, ideas, or information into symbolic form. *Channel-method by which the communication travels from source to receiver. *Receiver- persons with whom the sender is sharing information or thoughts and decoding- transforming the senders message back into thought. *Response- receiver's reactions after seeing, hearing, or reading the message and feedback-part of the receivers response that is communicated back to the sender. *Noise- unplanned distortion or interference in the comm. process. Occurs because of the difference in the field of experience between the sender and receiver.
promotional pull strategy
spending money on advertising and sales promotion efforts directed toward the ultimate consumer
Positioning
the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competitionThe
Integrated Marketing Communications
the central theme of the concept of ________________is that all of an organizations marketing and promotional elements and activities communicate consistently and in a unified manner with its customers.
channel of distribution
the network of organizations and processes that links producers to consumers
pricing decision
the product is anything that can be marketed and that when used or supported, gives satisfaction to the indivisual.
cognitive response
the thoughts that occur to them while reading, viewing, and/or hearing a communication *The assumption is that cognitive response reflect the recipients reactions and help shape ultimate acceptance or rejection of a message.
unexpected touch points
unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization
concentrated marketing
used when the firm selects one segment and attempts to capture a large share of this market
Forms of Encoding
verbal- any spoken message graphic- thoughts transmitted via some symbolic form, as with the "no smoking" symbol used here. Musical- typing brands and products to jingles or sounds. * Animation- often used to grab the attention of viewers ** the goal is to encode the message in such a way that it will be understood by the receiver.
identifying markets
when employing a target marketing strategy, the marketer identifies the specific needs of groups of people (segments, selects one or more of these segments as a target, and develops marketing programs directed to each.