Advertising Test 3
goals of contests and sweepstakes
-encourage traffic to a website or retail location -create awareness and exposure--it's doubtful that it will boost sales *it is the INTRINSIC rewards that usually draw people back, not extrinsic*
Manufacturers argue against slotting fees
-form of extortion -diverts money they could spend on advertising and marketing -detrimental to small manufacturers who can't afford the fee
brand-preference customers
-have small set of preferred brands -buy deals for one of preferred brands
Buying product on-deal in one part of the country and shipping it to another part of the country where it is off-deal.
Diversion...this does not happen nearly as often as forward buying because of the cost of shipping
_____ _____ measures the proportion of ad impressions that result in users clicking on or mousing over an ad
Dwell rate
_____ ____ measures the amount of time individuals spend engaged with an online ad
Dwell time
The biggest surge in product placement came in 1982 with.....
ET and Reese's Pieces....65% increase in sales
_______ mktg involves a company's support of a specific event
Event -a local rodeo or special olympics -closely related to lifestyle mktg -involves setting up a booth or display at event -bring name recognition to a company -boost employee morale
Cause-related Mktg
Ex. A dentist provides free services to women living in a shelter -make a difference to consumers and create a bond with customers
Greenwashing
Faking green can be very damaging to a company's image and create backlash
Retailers purchasing additional merchandise when it is on-deal to sell later when it is off-deal. This allows them to earn extra money. The disadvantage is the carrying costs of the extra-inventory
Forward Buying
______ involve using logic to reduce the negative impact of the incident
Justifications
PURLs
Personalized URLs that are preloaded with personal and customized information for that customer
A planned insertion in a movie, television show, book, or other forms of entertainment.
Product Placement
The mktg function that evaluates public attitudes, identifies areas within the org that the public might be interested in, and executes a program of action to earn public understanding and acceptance
Public Relations
Damage Control
Reacting to a negative event, regardless of the cause... Proactive prevent strategies, reactive damage control strategies
Creation and execution of an instantaneous marketing message in response to or during a live event
Real-Time Mktg
Digital tool or venue that allows for social interaction
Social media
Utilization of social media or social networks to market a product, company, or brand
Social media marketing
Social structure of individuals or organizations
Social network
Green Mktg
The development and promotion of products that are environmentally safe -people are concerned about the environment and support green marketing -most consumers still see green products as being inferior
Message passed from one consumer to another: email, blogs. Form of advocacy or word of mouth endorsement
Viral Marketing -ads -hyperlinked promos -online newsletters -streaming videos -games
Tie-ins
When 2 or more companies or products are promoted within a single campaign
Mini applications embedded in banners. Provide personalized access to info that resides outside of the banner as and even outside of the website
Widgets
advertising gives you...
a reason to buy
contests require some type of ____ __ _____. sweepstakes rely on _____ _____
activity or skill random chance
An alternative marketing method designed to make an impression on people without it looking like _____
advertising
Wholesalers and retailers prefer _____ over ______
allowance over incentives
Developing alternative marketing programs require ______ and _______
creativity and imagination
Brand communities cannot be created by brands or companies...It has to be ____ _____
customer driven
Rebates are for _____ goods
hard...automobile, appliance
A ____ is them mention of the company's name/brands in a news story or in any media
hit
Capturing _____ is a goal of PR
hits
Using color, light, sound, taste, motion, and smell increases _____________ engagement
in-store marketing
sales promotion gives you...
incentive to buy
The number of int'l trade shows has ______ as global competition has increased
increased -smaller regional niche shows make it easier for companies to locate good prospects and the costs are much lower
the greatest emphasis on promotions would come in the ______ stage
maturity because there are so many competitors
Trade shows are more of an opportunity to ______, _____, and ______
meet look and learn
Location is the key for _____ __ ______
point of purchase....the last chance to reach a potential buyer
prizes, gifts, or other special offers consumers recieve when purchasing a product. the key is that customers pay full price for the product
premiums
Cinema advertising occurs ____ to the movie. It is a captive audience. Most will watch the ad
prior
brand loyal customers
purchase only preferred brand
Refunds are for ____ goods
soft....food, clothing
True customer-generated buzz occurs after the awareness is generated through _____ media
traditional
People do not like refunds and rebates because they have to ____wait for the check
wair
Reinforcement seekers
want reassurance they made the right decision in past purchases
Education seekers
want to browse, look, and learn but are not interested in buying anything
Overlays
-At times companies combine 2 or more consumer promotions into a single campaign ex.a sweepstake or contest with a coupon attached; coupon + sample
Expressions of Innocence
"We didn't cause this negative event to happen, it was some other company"
Redemption rates are low for refund and rebates, but if the rebate is more the ______ then the rate jumps up to 65%
$50 automobiles and computer printers are two major users
______ per year spent on in-game ads
$7 bil product placement in video games
Cooperative Advertising *most used and well-known trade incentive*
*Manuf* -pays part of retailer's ad costs -gains exposure in local markets *Retailer* -must follow guidelines: no competing brands -accrue monies: amount is based on sales -can expand advertising
Trade allowance problems
*retailers do not always pass along the savings to customers*
Guerrilla Mktg
-Developed by Jay Conrad Levinson -designed to bring instant results with low-cost, unique marketing methods -Focuses on a region or area and involved interacting with consumers in a unique and different way -Goal is to create excitement and to generate buzz...often alternative media are used -Build relationships with customers
Lifestyle Mktg
-Identifying marketing methods associated with the hobbies, entertainment, and lives of the target audience -making contact with consumers where they go for relaxations, excitement, socialization, and enjoyment. -Intersect with consumers during daily lives
Experiential Mktg
-Intersection of direct mktg, field mktg, and sales promotions -increasing the experience of direct marketing through an interactive connection -rather than just pass out samples, make it an experience the consumer will remember
Cooperative Merchandising Agreement
-a formal agreement between a manuf and a channel member(normally a retailer) -specifies the marketing functions the channel member will perform in exchange for the financial incentive retailers must perform some marketing functions and manufs have control...long term commitment
Brand Advocate characteristics
-behavioral commitment -emotional connection -quality communication skills
Sponsorship Mktg
-build brand equity and positive feelings toward a company -positive feelings toward the sport, athlete, team, concert, or whatever is being sponsored will be transferred to the brand
Types of trade incentives
-cooperative merchandising agreement -premium or bonus pack -coop advertising programs
Retailer justification for slotting fees
-costs money to add new product to inventory -requires shelf space -simplifies the decision process -adds to the bottom line
Trade allowances: Off-invoice Allowances
-discount on the product to encourage channel members to place an order -35% of all trade dollars -retailers are reluctant to purchase products off-deal -pressure from competitors who offer deals keep the cycle going
benefits of sampling
-introduce new products -generate interest -generate leads -collect info -internet sampling -boost sales
Keys to successful premiums
-match premium to target market -avoid fads and try for exclusivity -don't expect premiums to increase short-term profits -integrate premiums with other IMC tools: especially advertising and POP displays
Trade allowances: Slotting fees
-most controversial form -a fee charged by retailers to stock new products
Problems of Trade Sales Promos
-often corporate reward structures push sales -easy way to stimulate sales often is not part of the IMC plan -while it can boost sales, it can also result in higher costs and lower profits -encourages over reliance on promotions to push merchandise with channel members and with customers -becomes difficult to reduce because competitors are using promotions to keep up with each other -end result is potential erosion of brand image
price-sensitive customers
-price is primary factor in purchases -brand name is not important -take advantage of deals that reduce price
Promotion-prone customers
-respond to deals (coupons, sweepstake, etc) -like to purchase products that are on-deal
Trade Contests
-used to achieve sales targets -funds known as "spiff money" -rewards can be prizes or cash
Buzz Marketing Stages
1. Inoculation: product introduction. difficult to generate buzz 2. Incubation: product trial. still difficult 3. Infection: widespread use. the best time
5 parts of PR
1. identify internal and external stakeholders 2. assess the corporate reputation 3. audit CSR 4. create positive image-building activities 5. prevent or reduce image damage
Alternative Media Venues
1.Video Games 2. Cinemas 3.Subways, street mall kiosks, escalators, parking lots, airlines, shopping bags, clothes
Manufacturers issue about ______ of all coupons
80%
Crisis Management
A company can either accept the blame for an event and offer an apology or they can refute the charges against them. It can be an opportunity or a problem
Impression Mgmt
An attempt to project a certain type of image to others and to consciously or unconsciously attempt to control the images that are projected in real or imagined social interactions
______ methods have emerged as advertisers look for new ways to reach consumers
Alternative
The goal is to reach consumers in *unexpected* ways or in everyday life situations that resonate with consumers and where there is less competition for attention
Alternative Marketing Program
______ is the leader of consumer generated reviews
Amazon
Many companies sponsor individuals as agents or advocates to introduce new products.. The idea is to talk to their friends and other people. They should be genuine and do believe in the product being pitched.
Brand Ambassadors -companies have no control of what they say or who they talk to
The integration of the entertainment and advertising by embedding the brand into the storyline of the movie, TV show or other entertainment medium
Brand Entertainment
_____ ______ emphasizes consumers passing along information about a product and since it is word-of-mouth from an individual it has a higher level of credibility
Buzz marketing: Consumers who like a brand
types of consumer sales promotions
coupons premiums contest & sweepstakes refunds & rebates sampling bonus packs
Financial incentives
coupons rebates contests
An obligation to act ethically and to consider the needs of society
CSR
A program whereby a firm ties a marketing program to a charity in order to generate goodwill
Cause-related mktg
Internet Intervention
Consumers can spread bad news quickly -Assign employees to monitor online communications -Provides information on what people are thinking
Security issues
fear that their credit card number will get stolen or worse, identity theft
Brand Community
The ultimate in brand loyalty and brand devotion -offers symbolic meaning -provides interaction between the brand, consumers, and companies -offers shared values and experiences ex. Harley Davidson, Jeeep, Apple
The channel member must perform some type of marketing function to receive the funds.
Trade incentives most are done with retailers
________ media faces many challenges with clutter and declining attention
Traditional
consumers must make a conscious effort to clip the coupon --> creates brand ______ and encourages purchase
awareness
Trade shows are used extensively in _____ marketing programs
b-2-b
when an additional or extra number of items are placed in a special package
bonus pack...typical bonuses range from 20-100%...paper towels, tooth paste increase usage of product stockpile the product match or preempt competition develop customer loyalty attract new customers encourage brand switching
Least engaging form of in-store mktg:
ceiling banners and overhead mobiles
Interactive Mktg
development of mktg programs that create 2-way communications and enhance engagement of consumers with the brand -Can track activity, personalize messages -emphasize 2 primary activities: targeting individuals, engaging consumers
Most engaging form of in-store mktg:
end-aisle displays and merchandise displays
Sales promotions _____ brand equity and focuses more on _______
erode price
Value-added incentives
exclusive information cause-related marketing
Damage control and greenwashing are essentially the same public relations practices.
false
The Internet is the ideal medium for interactive marketing because of the low cost per contact
false because it can track consumers' activities and personalize messages.
Cooperative merchandising agreements can be formed between two manufacturers seeking to jointly advertise products
false a manufacturer and a retailer
Guerilla marketing involves using traditional marketing tools to reach consumers with a controversial message.
false alternative marketing tools
. During the infection stage of buzz marketing, it is virtually impossible to generate word-of-mouth communications from actual customers.
false best time
Sponsorships and event marketing are used by companies to create a short-term burst in sales
false build brand awareness and customer loyalty
Brand advocates need to display a commitment to the brand either by their purchases of the brand or their emotional connection to the brand. Both are not necessary.
false by both
If brand communities are to thrive, it is important that it be driven by brand owners and for the company not to get involved.
false customers
Experiential marketing combines direct marketing, buzz marketing, and sales promotions into a single consumer experience.
false field marketing
Intra-company tie-ins are the promotion of two different products from different companies using one consumer promotion.
false inter
Employees are external stakeholders of an organization.
false internal
Rebate programs tend to be more effective than other promotions because consumers get excited about them and this leads them to wait patiently until one is offered before making a purchase.
false less effective, more tired, and not patient
In terms of e-commerce, a value-added incentive is used to cause consumers to change purchasing habits in the short term
false long term
Cooperative advertising takes place when the consumer pays part of the advertising cost.
false manufacturer
Retailers tend to use forward buying less than diversion due to the carrying costs associated with forward buying.
false more than, shipping costs, and diversion
Three types of incentives can be used to encourage customers to make online purchases: financially-based incentives, convenience-based incentives, and pricebased
false not price based... value based
The most controversial form of trade allowance is the off-invoice allowance.
false slotting fees
Brand spiraling is the practice of using interactive media to promote and attract consumers to an on-line Web site.
false traditional
Seller opportunities
fear that the business is not legitimate and is out to cheat them
E-Commerce Benefits:
financial incentives convenience incentives value-added incentives
coupons are sent through print media with ____ ____ ____
free standing inserts
Trade allowance: Exit fees
payment of monies to remove an item if it does not sell and has to be removed from inventory
Privacy issues
information about them will be sold to other businesses
Inter-company tie-in
involve two or more companies working together
Intra-company tie-in
involves products with one company
Approx 60% of all purchase decisions are made in the ____ _____
retail store
the actual delivery of a product to consumers for their use or consumption
sampling encourage prospects to try the brand and compare it to the brand they are currently using
Solution seekers
seek solutions to specific problems and are in the buying mode if they find the right solution
Buying teams
seek vendors for their businesses, and are usually ready to talk sales
Sales promotion is marketing communication activities, other than advertising, personal selling, and PR, in which a ______ ______ ______ motivates a purchase
short-term incentive
Purchasing habits
they prefer shopping in a store where they can see the merchandise
types of trade sales promotions
trade allowances trade incentives trade show trade contests
Consumers today expect corporate ________, so the company and its employees should act in a socially-responsible manner
transparency
. A brand or product recommendation from one person to another carries a higher level of credibility than does an advertisement or a paid spokesperson.
true
A brand's appeal may be stronger when it is shown in a nonadvertising context, such as in product placements and branded entertainment.
true
A contest requires the use of a skill while a sweepstakes relies on random chance.
true
Brand-loyal consumers purchase only one particular brand and do not respond to consumer promotions unless it is for their particular brand.
true
Buzz marketing emphasizes consumers passing along information about a product to other consumers.
true
Content seeding by brands can be any type of incentive that offers information, uniqueness, novelty, or financial benefits.
true
Corporate social responsibility is the obligation an organization has to be ethical, accountable, and reactive to the needs of society.
true
Crisis management involves accepting the blame for an event and offering an apology or vigorously defending the company when negative charges have been made.
true
In choosing a cause-related program, the marketing team should focus on causes that relate to the company's business.
true
Interactive marketing is the development of marketing programs that create interaction between consumers and businesses rather than simply sending messages to potential customers
true
One of the functions of a public relations department is to assess the company's reputation.
true
Reasons consumers are wary of shopping on the Internet include seller opportunism, security concerns, information privacy issues, and purchasing habits.
true
Social media marketing is the utilization of social media and/or social networks to market a product, company, or brand.
true
The Internet has changed the ways individuals communicate and how the world conducts business.
true
Viral marketing is preparing a marketing message that in some way is passed from one consumer to another through digital means.
true
Interactive blogs allow ____ ___ communication
two-way ...higher level of risk
Buzz mktg works the best when the brand is ______, new, or performs better than the competition. If a company can get customers involved it works best.
unique
Power buyers
upper management or key purchasing agents with the authority