Comm 2331 Exam 3
What is corporate advertising and how does it differ from other types of advertising?
- An extension of the PR Function - Does not promote a specific product or service - Promotes the organization (image enhancement, assuming a position on an issue or cause, seeks involvement)
What is the definition of direct marketing? What are some factors contributing to its growth? Direct marketing advantages?
- An interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location - Examples: Interactive TV, internet, telemarketing, print, direct mail, other media Growth of Direct Marketing - - Growth of consumer credit cards - Changing structure of society (money rich & time poor) - Technological advances = internet and databases Direct Marketing Advantages - - Selective reach - Segmentation - Frequency potential - Testing - Timing - Personalization - Costs - Measures of effectiveness
What is the definition viral marketing? What are the promotional objectives of viral marketing? What are some common characteristics of viral marketing campaigns - what makes an effective viral message?
- Attempts to tap into our existing social networks and feeds off of one's social capital (social ties) to promote an object - Promotional Objectives: People passing along the promotional message to more people, putting their own spin on it in a way that can be quite persuasive Strategy: - Identify mavens and social hubs - Key: get them vested in promoting your message/brand - Members of the network become the "strategic communicator" = persuading other members of the network Message Strategies: - Trigger an emotional response (surprise mixed with either positive or negative emotions) - Aversive = Individuals getting hurt and/or embarrassed - Uncertainty = Polarized views lead to discussion - Affirmation/validation/belonging - Appetitive = Funny, cool content Four Groups of Social Media Viral Marketing Campaigns: 1. Strokes of Luck: Diet Coke & Mentos (positive outcome + customer initiated) 2. Triumphs: Burger King's Whopper Sacrifice (positive outcome + company initiated) 3. Nightmares: JetBlue (negative outcome + customer initiated) 4. Homemade Issues: Charlie's and Jeremy's SONY PSP blog (negative outcome + company initiated)
Functions of MPR?
- Building market excitement before media ads break - Creating news where there is no news - Introducing a new product with little or no advertising - Building brand-to-customer bonds - Influencing influentials, giving info to opinion leaders - Defending products at risk, giving consumer reasons to buy
Benefits of MPR?
- Cost-effective way to reach the market - Breaks through the clutter - Highly targeted way to conduct public relations - Circumvents resistance to sales efforts - Endorsements by independent third parties - Improved media involvement with customers - Achievement of credibility - Creates influence among opinion leaders - Makes advertising messages more credible - Improved ROI
What are the primary goals/objectives of corporate advertising?
- Establish diversified company identity - Smooth labor relations - Create a positive image for the firm - Communicate the organization's viewpoint - Boost employee morale
What is branded entertainment?
- Form of entertainment that blends marketing and entertainment through TV, film, music talent, and technology - Examples: Advertainment, Advergames, & Ad-supported Video on Demand (VoD)
How does guerrilla marketing differ from viral marketing?
- Goal is not necessarily persuasive nor to leverage social networks - more mass communication than interpersonal
Why is it called viral marketing and what is its relationship with word of mouth?
- Has become synonymous with word-of-mouth but is more strategic - Need to think about it as more complex activity than just getting more and more people to talk about whatever you are promoting
What are the main types of corporate advertising and examples (i.e. advocacy, sponsorship, cause-related, image, etc)?
- Image Advertising (general image ads, positioning ads, sponsorship, recruitment, financial support) * Example: General Electric - Event sponsorship (sporting events, causes, cultural events, music/entertainment, festivals, arts) * Example: Krispy Creme Challenge - Advocacy Advertising (Propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor) * Example: Energy Tomorrow - American Petroleum Institute - Cause-related advertising (Form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors) * Examples include: financial contribution, donating a percentage of the sales of a product, company employees volunteer for the cause, donating materials or supplies, running public service announcements, providing event refreshments * Example: Product (Red) Campaign
Disadvantages of MPR?
- Lack of control over media coverage - Difficult to tie in slogans or other advertising devices/ lack of coordination with marketing department - Media time and space aren't guaranteed - Receiver not making connection to the source - No standards for effective measurement
What are the advantages of word of mouth as a promotional channel?
- Leveraging internet to create "buzz" - Richest form of communication and the most influential - Generating buzz through a campaign increases recall, engagement, motivation, persuasion - Generally seen as credible (unbiased filter) Electronic Word of Mouth (EWoM) - WoM dies out quickly - EWoM reaches a much larger number of people and can be monitored/measured
What are some cons of using the Internet for promotion and marketing?
- Measurement problems - Clutter - Potential for deception - Privacy - Irritation/annoyance
What is media relations and why important?
- Media relations = maintaining a positive professional relationship with the media in general or with media that specialize in covering a specific industry - Challenge = Getting past media gatekeepers - Press isn't interested in products, but in ideas and trends
Examples of PR tools?
- Press releases - Press conferences - Exclusives - Community involvement - The Internet - Interviews
Definition of public relations and marketing public relations (MPR)?
- Public relations is a management function which evaluates public attitudes, identifies the policies and procedures for an organization with public interest, and executes a program of action to earn public understanding and acceptance - Marketing Public Relations: Public relations activities designed to support marketing objectives and programs
Common ways to measure PR effectiveness?
- Ratio of positive to negative articles - Number of impressions (over time, on the target audience, on specific target audiences) - Percentage of positive/negative articles over time - Percentage of positive and negative articles by subject, publication, reporter, target audience
What are some pros of using the Internet for promotion and marketing?
- Target marketing - Message tailoring - Interactive capabilities - Information Access - Sales potential - Creativity - Exposure/speed - Complement to IMC
What is publicity, how does it differ from public relations?
- The generation of news about a person, product, or service that appears in the media - A short-term strategy - A subset of public relations - Not always positive - Often originates outside the firm
What is guerilla marketing and its promotional objectives?
- Unconventional and low-budget brand experiences designed to grab attention and create "buzz" and/or publicity/attention - Employ creative methods to reach people where they work, live, walk with "high" impact messages
What is social capital and why is it important?
- Utility derived from social connections to achieve goals - Using social capital in order to promote a given object/objective - Spread your message within network of associations and the audience will be doing the promotion for you
Weaknesses of viral marketing?
- What traits, motivations, attitudes, and behaviors are more likely to work? - Inability of audience to tie message back to source? - Lose control over message? Distorted through network? - Boomerang: create negative word-of-mouth? - Strong enough to stand on its own? - Quantification of success - viewership, increased sales, unsolicited mentions, etc.
According to the reading and lecture, what are the seven types of social media functionality and their corresponding implications for organizations?
1. Identity (extent to which users reveal themselves) - Data privacy controls and tools for user self-promotion 2. Presence (extent to which users know if others are available) - Creating and managing the reality, intimacy, and immediacy of the content 3. Relationships (extent to which users relate to each other) - Managing the structural and flow properties in a network of relationships 4. Reputation (extent to which users know the social standing of others and content) - Monitoring the strength, passion, sentiment, and reach of users and brands 5. Groups (extent to which users are ordered or form communities) - Membership rules and protocols 6. Conversations (extent to which users communicate with each other) - Conversation velocity and the risks of starting and joining 7. Sharing (extent to which users exchange, distribute, and receive content) - Content management system and social graph
What are the two primary theoretical perspectives most often employed to understand the effects of brand websites on consumers?
1.) Cognitive Response Model - Ad execution thoughts - Source oriented thoughts - Attitude toward "Ad" (i.e. website) influences attitudes about brand 2.) ELM (Peripheral vs. central route) - Individual involvement - Motivation - Ability (need for cognition)
What are the relative advantages and disadvantages of the 3 main types of advertising scheduling methods?
1.) Continuity Advantages: - Covers entire buying cycle - More effective than flighting/pulsing - Important if goal is to raise awareness of new product Disadvantages: - High costs - Potential for overexposure - Media availability 2.) Flighting Advantages: - Highly cost effective Disadvantages: - Increased likelihood of wear out - Lack of awareness/interest/retention during off-times - Vulnerability to competing messages during off-times 3.) Pulsing Advantages: - Combines advantages of continuity and flighting - Consumer response processes that begin with attitudes and target valued customers often require only pulsing Disadvantages: - Moderately expensive - Some overexposure - Not appropriate for highly seasonal products
For which types of products is each type of advertising scheduling method used?
1.) Continuity - Food products, household products, and products consumed on an ongoing basis 2.) Flighting - Seasonal or other products that are consumed mostly during certain time periods 3.) Pulsing - Products that have little sales variation from period to period, but might see some increase in certain times, such as cold beverages in the hot summer months
What are the 3 main types of advertising scheduling methods?
1.) Continuity: continuous pattern of advertising; everyday, every week, or every month 2.) Flighting: intermittent periods of advertising and no advertising 3.) Pulsing: combination - continuity is maintained but at certain periods advertising is increased
What at are two metrics that can be used to assess the effectiveness of direct marketing?
1.) Cost per order (CPO): Evaluates the relative effectiveness of an ad based on the number of calls generated 2.) Customer lifetime value (CLTV): Determines the dollar value associated with a long-term relationship with a customer - Helps determine if a customer should be acquired - Optimizes existing customers' service levels
What are some factors that have contributed to billboard advertising success?
1.) Increase in the number of women in the work force and vehicles on the road 2.) Ability to remain innovative through technology
What are the key definitions of terms used to measure TV audiences?
1.) Television households = number of households that own a TV 2.) Program rating = percentage of TV households in an area that are tuned to a specific program during a specific time period 3.) Households using TV (HUT) = percentage of homes in a given area where TV is being watched during a specific time period 4.) Share of audience = percentage of households using TV in a specified time period that are tuned to a specified program
What are some advantages and disadvantages of support media?
Advantages of Outdoor Advertising: - Wide local coverage - High frequency - Geographic flexibility - Creativity - Timeliness - Mood of the audience - Creation of awareness - Efficiency - Sales effectiveness - Production capability Disadvantages of Outdoor Advertising: - Waste coverage - Limited message availability - Wear out - High cost - Measurement problems - Image problems Advantages of Advertising in Movie Theaters: - High exposure - Emotional attachment - Cost - Attention - Lack of clutter - Proximity - Segmentation Disadvantages of Advertising in Movie Theaters: - Irritation - Cost Advantages of Branded Entertainment: - Exposure - Frequency - Support for other media - Source association - Cost - Recall - Bypassing regulations - Acceptance and targeting Disadvantages of Branded Entertainment: - High absolute cost - Time of exposure - Limited appeal - Lack of control - Public reaction - Competition - Negative placements - Clutter
What are the promotional advantages and disadvantages of newspapers?
Advantages: - High penetration and flexibility - Geographic selectivity - High involvement/credibility/acceptance - Lower cost - Matching ads with editorial - Short lead times and timely - May be closely tied to sales promotion/coupons Disadvantages: - Low production quality - Short lifespan - Low attention getting - Selective reader exposure - Clutter - Declining circulation
What are the promotional advantages and disadvantages of radio?
Advantages: - Lower costs to produce and purchase - Good for smaller and niche markets - Higher receptivity, selectivity, and flexibility Disadvantages: - More limited communication and creative options - Has less status and prestige
What are the promotional advantages and disadvantages of TV?
Advantages: - Mass coverage and high reach = cost effective - Captivity and attention getting - Target selectivity and flexibility - High creativity and impact Disadvantages: - Fleeting messages - High absolute costs - Audience distrust/negative evaluations - Message avoidance: zipping and zapping - Increasing clutter - Not useful for very small to niche markets
What are the promotional advantages and disadvantages of magazines?
Advantages: - Segmentation and selectivity - High receptivity - High information content - Permanence/Multiple readers - High quality reproduction Disadvantages: - Visual only - Long lead time for ad placement - Limited frequency and reach - High competition - High clutter - Declining circulation
How are CDIs and BDIs used to make decisions about advertising? What does comparing them to each other tell you as an advertiser?
BDI = Determines the sales potential for a specific brand in a particular market area. The higher the BDI number, the greater the potential that exists. CDI = Determines the sales potential for a product category in a particular market area. The higher the CDI number, the greater the potential that exists for that category products. High BDI + CDI = High market share, good market, potential (market represents good sales potential for both the product and the brand) Low BDI + High CDI = Low market share, good market, potential (Product category shows high potential but the brand isn't doing well) High BDI + Low CDI = High market share, monitor for sales, decline (Category isn't selling well but the brand is - may be a good market in which to advertise but should be monitored for sales decline) Low BDI + CDI = Low market share, poor market, potential (Both the product category and the brand are doing poorly - not a good place to advertise)
What is a brand development index (BDI)?
BDI = [Percentage of brand to total U.S. sales in market/Percentage of total U.S. population in market] x 100
According to reading and lecture, what is the difference between "bought" media, "owned" media, and "earned" media?
Bought media - Company pays for - Brand pays to leverage a channel (paid searches, sponsorships) Owned media - Company owns or has direct control over (the channel a brand controls) - Websites and blogs Earned media = When customers become the channel - Social media, publicity, different types of media - No control
What is a category development index (CDI)?
CDI = [Percentage of total product category sales in market/Percentage of total U.S. population in market] x 100
How do you determine the relative cost of advertising in broadcast and print media?
Determining Relative Cost of Print Media - CPM = [Cost of ad space (absolute cost)/Circulation] x 1,000 Determining Relative Cost of Broadcast Media - CPRP = [Cost of commercial time/Program rating]
What are characteristics of Direct-Response Advertising and Support Advertising?
Direct-Response Advertising - - Product/service offered - Sales response solicited - Toll-free numbers included - TV spots, infomercials, home shopping shows Support Advertising - - Reader's Digest asks you to watch mailbox for sweepstakes entry - Supports other advertising
What is "Dunbar's Number" and why is it important to viral marketing?
Dunbar's Number = cognitive limit to the number of people with whom we can maintain stable social relationships - Messengers will only pass on message when they think its not already something everyone knows about (don't seed too widely, focus on message strategy, seed among disconnected online subcultures or groups) Result - Heightened vested interest of influencers/hubs lead to a reduction of negative reactance among the rest of the members of the network - More open to message, view it as more credible, less likely to counter-argue the message
What is an index number?
Index = [Percentage of users in a demographic segment/Percentage of population in the same segment] x 100 *Good indicator of the potential of the market
What channels may you use to communicate with internal/associated vs. external/independent audiences?
Internal/Associated - Newsletters - Bulletin Boards - Direct Mail/email - Annual reports External/Independent - Public relations ads - Press releases - Conferences - Research Reports
What are internal/associated vs. external/independent audiences for MPR?
Internal/Associated - Stockholders and investors - Customers and clients - Employees - Community members - Vendors and suppliers External/Independent - Educators - Governments - Financial Groups - Civic and Business organizations - The Media
What are market mavens and social hubs and why are they important?
Market Mavens (opinion leaders) - Center of networks, access to a large amount of market information and proactively engage in conversations with others (first to receive the message and transmit it to others) Social Hubs (network bridges) - These are the people who know everyone (well connected) --> connect different subgroups & networks
How do marketing, media, and message factors determine the relative frequency of your advertising?
Marketing Factors Determining Frequency - Increase Frequency: - High usage cycle - High competition - New brand Decrease Frequency: - High brand loyalty and market share - High ability to process and recall messages - Low usage cycle Message Factors Determining Frequency - Increase Frequency: - New campaign - Image advertising - Complex and varied messages Decrease Frequency: - Continuing campaign - Simple and single messages - Uniqueness - Potential for wear out - Advertising units (size/space/time) Media Factors Determining Frequency - Increase Frequency: - Amount of clutter Decrease Frequency: - Alignment with media content - Continuous scheduling - Fewer media (lower frequency) - Level of attention achieved by media - Repeat exposures
What do we mean by one and two-step approaches to direct marketing?
One-step Approach: Medium is used directly to obtain an order - Often uses toll-free phone orders and credit card payments Two-step Approach: Uses more than one medium - First effort = screens potential buyers - Second effort = generates the response (May use one medium to obtain inquiry and qualify prospect and then follow-up with a second medium to complete the sale)
What are the main personal and website factors that determine the effectiveness of a brand website?
Personal Factors - Involvement - Perceived interactivity - Flow (immersion & control) Website/Brand Factors - Actual interactivity (number & types of features) - Usability - Modality - Number of functions - Degree of fit with brand image - Type of product (functional vs. value)
How do you calculate TV audience ratings and shares?
Program Rating: Rating = [HH tuned to show/Total U.S. HH] x 100 Share of audience: Share = [HH tuned to show/U.S. HH using TV] x 100
What are pros and cons of corporate advertising?
Pros - Excellent Vehicle for positioning the firm - Takes advantage of benefits derived from public relations - Reaches a selected target market Cons - May have questionable effectiveness - Raises questions of constitutionality and ethics - Lack of consumer interest
Pros and cons of publicity?
Pros - Substantial credibility - News value - Significant word-of-mouth - Perception of endorsement by media Cons - Timing difficult or impossible to control - Inaccuracy, omission, or distortion may result
What are reach and frequency?
Reach: Number of different/unique audience members exposed at least once in a time period (actual audience) Frequency: Number of times the receiver is exposed to the media vehicle (not the ad itself) in a time period (opportunities to "see" the ad) Reach vs. Frequency - Advertisers must decide if they want the message seen and heard by more people (reach) or by fewer people more often (frequency of exposure) Ratings Points - Gross Ratings Points (GRPs) = reach x frequency * Reach = total number of people the audience buy will reach * Frequency = frequency of exposure - Target Ratings Points (TRPs) = targeted reach x frequency * Reach = the number of people in the primary target audience the media buy will reach * Frequency = frequency of exposure
Difference between strong and weak ties?
Strong Ties - Strongest and most immediate social connections (close friends, nuclear family) Weak Ties - More distant connections, perhaps even indirect (acquaintances, distant relatives, social media)
How is "support media" defined?
Support media uses a variety of non traditional channels to deliver communications and to promote products and services (out-of-home advertising)
What are examples of "support media?"
Types of Support Media: - Billboards/outdoor (bulletins, wall murals, posters) - Transit (buses, airports, subway, taxi, trucks) - Alternative Media (stadiums, resorts, cinema, digital) - Street Furniture (bus shelters, kiosks, shopping malls) - Radio (drive time, in-office, in-store)
What is Web 2.0 - how does it differ from the older Internet marketing?
Web 2.0 (pulling customers in, power shifts to consumers, two-way communication) - New interactive technology shifted power of media from publishers to consumers - Enhanced creativity, information sharing, collaboration among users - Blurred boundary between interpersonal and mass communication - Examples: YouTube, Facebook, Myspace, Interactive brand websites, etc. Web 1.0 (traditional mass media, customer transaction, pushing info to customers) - Banner ads - Sponsorships: form of advertising - Content itself - Pop-ups - Pop-unders - Interstitials
What are some examples of how Web 2.0 is used for promotional purposes?
Web 2.0 - - Creating a "pull" environment instead of "push" - Websites are vehicle by which to establish brand equity - Provide you with features to keep you there longer - Creating Feature Entertainment (online advertainment) - Website as "lifestyle" - Gamification Types of New Media - Forums and chat rooms, e-mail, social networking sites, content aggregators, virtual reality, online gaming, blogs, portals, social news sites
According to the seven types of social media functionality, what are the primary differences between YouTube and Facebook?
YouTube: 1.) Sharing 2.) Conversations, Groups, Reputation 3.) Identity, Presence, Relationships Facebook: 1.) Relationships 2.) Presence, Identity, Conversation, Reputation 3.) Sharing, Groups
