Advertising & Marketing: Quiz 3

marketing plan
a document that serves as a guide for the present and future market-ing activities of an organization; generally do a number of important things, such as to (1) state or restate the organization’s mission; (2) assess a brand’s current marketing situation and identify factors, both within the company and in the environment, that may help or hinder achieving marketing objectives; (3) present clear, measurable, time-delineated marketing objectives; (4) describe strategies that will be used to achieve marketing objectives with specific target markets; (5) describe tactics or action programs for implementing the marketing strategy; (6) explain how the effectiveness of the marketing efforts will be evaluated; and (7) propose a budget for marketing activities
mission statement
a short description of the organization’s purpose and philosophy
situation analysis
a detailed description of the brand’s current marketing situation
SWOT analysis
uses the facts contained in the situation analysis to point out strengths, weaknesses, opportunities, and threats for the brand; strengths and weaknesses represent company capabilities, while opportunities and threats represent environmental factors
marketing objectives
third part of the marketing plan, are clear, quantifiable, realistic marketing goals that are to be accomplished within a defined time period; generally fall into one of two broad categories: sales-target objectives and communication objectives
sales-target objectives
include goals related to increasing or maintaining sales volume and market share
communication objectives
outcomes that can reasonably be associated with promotional activities, such as increases in brand recognition or awareness, increased comprehension of a brand’s attributes or benefits, more positive attitudes about a brand or a more favorable image of the brand or its typical user, and stronger intentions to try or buy a brand
DAGMAR system
emphasizes communication objectives because Colley believed that the proper way to evaluate a campaign is to determine how well it communicates information, within a given budget, to the target audience; formulate objectives related to one of four outcomes: awareness (knowing the brand exists), comprehension (knowing about the brand’s benefits or attributes), conviction (a favorable attitude toward the brand), and action (purchasing and using the brand)
marketing strategy
describes how the company plans to meet its marketing objectives; involves three steps: (1) defining the particular target markets; (2) determining the strategic position; and (3) developing an appropriate marketing mix for each target market.
product attribute
setting the brand apart by stressing a particular product feature important to consumers
positioning on the basis of price or quality
positioning on the basis of how a product is used (e.g., Arm & Hammer)
product class
positioning the brand against other products that, while not the same, offer the same class of benefits
product user
positioning against the particular group that uses the product
product competitor
positioning against competitors (e.g., Avis/Hertz), using the strength of the competitor’s position to help define the subject brand
cultural symbol
positioning apart from competitors through the creation or use of some recognized symbol or icon
marketing mix
blends the various marketing elements the company controls: product, price, distribution, and communications
bottom-up marketing
the opposite of standard, top-down marketing planning, bottom-up marketing focuses on one specific tactic and develops it into an overall strategy; , Marketing Tactics –> Marketing Strategies –> Marketing Results
specific action for helping to accomplish a strategy
top-down marketing
traditional planning process with four main elements: situation analysis, marketing objectives, marketing strategy, and tactics or action programs
IMC plan
provides the framework for developing, implementing and controlling the organization’s IMC program; first section of the plan should summarize briefly the situation analysis and SWOT analysis, review the target market segments, itemize the long- and short- term marketing objectives, and restate decisions regarding market positioning and the marketing mix; “Marketing sells, IMC tells”
IMC strategy
blends the elements of the creative mix: target audience, product concept, communications media, and advertising message
creative mix
includes target audience, product concept, communications media, and advertising message
target audience
the specific people the IMC will reach; typically larger than the target market
product concept
“bundle of values” the marketer presents to the consumer
IMC approach
uses the outside-in process, and starts with the customer; marketers learn about what media customers use, the relevance of their message to the customers, and when customers and prospects are most receptive to the message; IMC activities begin with the customer and work back to the brand; dedicated to building and maintaining brand equity through a united focus on stakeholder loyalty
seven-step IMC planning model
developed by Wang and Schultz; the marketer sets objectives based on the needs of the customer or prospect; all forms of marketing are thus turned into communication, and all forms of communication into marketing
IMC pyramid
shows some of the tasks IMC can perform; represents the learn- feel- do model of effects; that is, it assumes that people rationally consider a prospective purchase, and once they feel good about it, they act; the theory is that IMC affects attitude, and attitude leads to behavior; reflects the traditional mass marketing monologue: the marketer talks and the customer listens
IMC pyramid; to acquaint people with the company, product, service, and brand
IMC pyramid; to communicate enough information about the product so that some percentage of the aware group recognizes the product’s purpose, image, or position, and perhaps some of its features
IMC pyramid; to persuade a certain number of people to actually believe in the product’s value; once convinced
IMC pyramid; some people may be moved by their conviction to want the product
IMC pyramid; some percentage of those who desire the product will do something; they may request additional information, send in a coupon, visit a store, or actually buy the product
integrated marketing communications; building relationships to ensure a constructive encounter with the company, brand, consumer, stakeholder through a variety of media/other contacts; IMC approach treats the sale as part of the broader relationship between the customer and the brand; IMC affects sales, but it is just one of many influences on consumers, it’s not a result of sales and it doesn’t create sales
impulse purchases
may involve a do-feel-learn model, in which behavior leads to attitude ( picking up a pack of gum or a magazine after every visit to the supermarket)
Kim-Lord grid
academics Kim and Lord recognized that people can be both cognitively and affectively involved at the same time; depicts the degree and the kind of involvement a consumer brings to the purchase decision for different products; some purchases, like cars, require a high degree of personal involvement on both the cognitive and affective levels; others, like detergent, involvement is low on both axes; a product’s location on the grid also indicates how the product is purchased (learn- feel-do or feel-learn-do) and how campaign copy should be written (more emotional or more rational)
communications media
all the vehicles that might transmit the marketer’s message; include traditional media such as radio, TV, newspapers, magazines, and billboards, plus the Internet, direct marketing, public relations, special events, sales promotion, and personal selling
IMC message
what the company plans to say and how it plans to say it, both verbally and nonverbally; the combination of copy, art, and production elements forms the message
IMC budget
companies use a number of methods to determine how much to spend on IMC, including the percentage of sales, percentage of profit, unit of sale, competitive parity, share of market, and objective/task methods
percentage of sales method
one of the most popular techniques for setting promotional budgets; it may be based on a percentage of last year’s sales, anticipated sales for next year, or a combination of the two; businesspeople like this method because it is simple, it doesn’t cost them anything, it is related to revenue, and it is considered safe; violates a basic marketing principle; marketing activities are supposed to stimulate demand and thus sales, not occur as a result of sales; if IMC automatically increases when sales increase and declines when sales decline, it ignores all other factors that might encourage an opposite move; also ignores the strategic nature of marketing; tather than encouraging planners to think carefully about the proper budget for accomplishing objectives, it forces them to develop objectives that fit the budget.
share of market/share of voice method
an attempt to link promotional dollars with sales objectives; it holds that a company’s best chance of maintaining its share of a market is to keep a share of IMC (voice) somewhat ahead of its market share; for example, a company with a 30 percent share of the market should spend 35 percent of the industry’s promotional dollars; according to this formula, when a new brand is introduced, the budget for the first two years should be about one and a half times the brand’s targeted share of the market in two years; this means that if the company’s two-year sales goal is 10 percent of the market, it should spend about 15 percent of promotional spending during the first two years
objective/task method
also known as the budget buildup method, is used by many large national marketers in the United States; it treats IMC as a marketing tool for generating sales; the task method has three steps: defining objectives, determining strategy, and estimating cost; after setting specific, quantitative communication objectives, the company develops programs to attain them
empirical research method
another method to allocate funds; a company runs a series of tests in different markets with different budgets to determine the best level of advertising expenditure; computers can generate quantitative mathematical models for budgeting and allocating promotional dollars
media planning
to conceive, analyze, and creatively select channels of communication that will direct advertising messages to the right people in the right place at the right time; work attests to an agency’s strategic ability to understand the target market and the most optimal time and place to communicate with them; some agencies have gone so far as to integrate the strategic planning and media planning groups into one department, effectively giving media planners a seat at the creative strategy table
cost per thousand
the cost of exposing 1,000 people to each of the major media
creative mix
the product concept, target audience, advertising message, and communications media
media objectives
translate the advertising strategy into goals that media can accomplish; they explain who the target audience is and why, where messages will be delivered and when, and how much advertising weight needs to be delivered over what period of time; two major components: audience objectives and message- distribution objectives
audience objectives
define the specific types of people the advertiser wants to reach; media planners typically use geodemographic classifications to define their target audiences.
media vehicles
particular magazines or shows selected by planners according to how well they “deliver” or expose the message to the media audience that most closely resembles the desired target consumer
distribution objectives
define where, when, and how often advertising should appear; to answer these questions, a media planner must understand a number of terms, including message weight, reach, frequency, and continuity
the number of subscribers; for print media, firms like the Audit Bureau of Circulations actually count and verify this number and then multiply by the estimated number of readers per copy (RPC) to determine the total audience
message weight
total size of the audience for a set of ads or an entire campaign, because it gives some indication of the scope of the campaign in a given market; there are two ways to express message weight: gross impressions and gross rating points
advertising impression
a possible exposure of the advertising message to one audience member. It is sometimes referred to as an opportunity to see (OTS)
gross impression
multiplying a medium’s total audience size by the number of times an advertising message is used during the period
simply the percentage of homes (or individuals) exposed to an advertising medium; percentages are not only simpler numbers to deal with, they are also more useful in making comparisons; thus, one rating point is equal to 1 percent of a given population group; when we hear that a particular TV show garnered a 20 rating, it means 20 percent of the house-holds with TV sets (expressed as television households or TVHH) were tuned in to that show. The higher a program’s rating, the more people are watching
gross rating points (GRPs)
by adding the ratings of several media vehicles (as we did for gross impressions) we can determine the message weight of a given advertising schedule
refers to the total number of unique (or different) people or households exposed, at least once, to a medium during a given period of time, usually four weeks; for example, if 40 percent of 100,000 people in a target market tune in to radio station WKKO at least once during a four-week period, the reach is 40,000 people; may be expressed as a percentage of the total market (40 percent) or as a raw number (40,000); should not be confused with the number of people who will actually be exposed to and consume the advertising, though; it is just the number of people who are exposed to the medium and therefore have an opportunity to see the ad or commercial
measures the intensity of a media schedule, based on repeated exposures to the medium or the program; important because repetition is the key to memory; is calculated as the average number of times individuals or homes are exposed to the medium
the duration of an advertising message or campaign over a given period of time; few companies spread their marketing efforts evenly throughout the year; they typically heavy up before prime selling seasons and slow down during the off-season; to save money, a media planner for a new product might decide that after a heavy introduction period of, say, four weeks, a radio campaign needs to maintain continuity for an additional 16 weeks but on fewer stations; while frequency is important to create memory, continuity is important to sustain it
effective reach
describes the quality of exposure; it measures the number or percentage of the audience who receive enough exposures to truly receive the message; some researchers maintain that three OTSs over a four-week period are usually enough to reach an audience
effective frequency
defined as the average number of times a person must see or hear a message before it becomes effective; in theory, effective frequency falls somewhere between a minimum level that achieves message awareness and a maximum level that becomes overexposure, which leads to “wearout” (starts to irritate consumers)
media vehicle exposure
the number of people in a medium’s audience
advertising message exposure
related to effectiveness of the exposure; for example, only 20 percent of viewers may pay attention when a commercial runs. It may take 10 opportunities-to-see to reach an average frequency of one!
optimal frequency
Cannon and Riordan would replace effective frequency with this; moves the focus of media planning from exposure effectiveness to effective exposures per dollar
advertising response curve
studies indicate that incremental response to advertising actually diminishes, rather than builds, with repeated exposure; the optimal frequency concept moves the focus of media planning from exposure effectiveness to effective exposures per dollar
recency planning
researcher Erwin Ephron suggests this concept, based on “the sensible idea that most advertising works by influencing the brand choice of consumers who are ready to buy”; therefore, the important thing for advertising is to be there when the consumer is ready to buy, and that suggests continuity.
five Ms (5Ms)
markets, money, media, mechanics, and methodology
Markets refers to the various targets of a media plan: trade and consumer audiences; global, national, or regional audiences; ethnic and socioeconomic groups; or other stakeholders
Using intuition, marketing savvy, and analytical skill, the media planner determines this second element; how much to budget and where to allocate it. How much for print media, how much in TV, how much to nontraditional or supplemental media, how much to each geographic area?
include all communications vehicles available to a marketer; this includes radio, TV, newspapers, magazines, outdoor, online and direct mail, plus sales promotion, direct marketing, public relations activities and publicity, special events, brochures, and even shopping bags
Radio and TV commercials come in a variety of time units, and print ads are created in a variety of sizes and styles; IMC planners may also deal with the mechanics of nontraditional media, everything from shopping bags to multimedia kiosks to the Internet; the myriad media options now available offer exciting, creative ways to enhance consumer acceptance of the advertiser’s message and offer the consumer a relevant purchase incentive
element refers to the overall strategy of selecting and scheduling media vehicles to achieve the desired message weight, reach, frequency, and continuity objectives; it offers the opportunity for creativity in planning, negotiating, and buying
local plan
domestic plan; a store serves only one town, or if a city has been chosen to test market a new product, then the advertiser will use this plan
regional plan
domestic plan; may cover several adjoining metropolitan areas, an entire state or province, or several neighboring states. Regional plans typically employ a combination of local media, regional editions of national magazines, TV spots and radio, and the Internet
national plan
domestic plan; advertisers who want to reach several regions or an entire country; this may call for network TV and radio, full-circulation national magazines and newspapers, nationally syndicated Sunday newspaper supplements, and the Internet
brand development index (BDI)
indicates the sales potential of a particular brand in a specific market area; it compares the percentage of the brand’s total U.S. sales in an area to the percentage of the total U.S. population in that area; the larger the brand’s sales relative to the area’s percentage of U.S. population, the higher the BDI and the greater the brand’s sales potential
category development index (CDI)
works on the same concept as the BDI and is calculated in much the same way; used to determine the potential of the whole product category
spillover media
local media that many consumers in a neighboring country inadvertently receive
exposure value
think of how many people an ad “sees” rather than the other way around
attention value
concerns the advertising message and copy, as well as the medium
motivation value
Familiarity with the advertiser’s campaign may affect attention significantly but motivation very little. The attention factors of quality reproduction and timeliness can motivate some-one, however.
cost per point (CPP)
done the same way as cost per thousand, except you divide the cost by the rating points instead of the gross impressions
mixed-media approach
combination of media
continuous schedule
advertising runs steadily and varies little over the campaign period; it’s the best way to build continuity
alternates periods of advertising with periods of no advertising; this intermit-tent schedule makes sense for products and services that experience large fluctuations in de-mand throughout the year (tax services, lawn-care products, cold remedies)
mixes continuous and flighting strategies; as the con-sumer’s pu r chasing cycle gets longer, pulsing becomes more appropriate; the advertiser maintains a low level of advertising all year but uses periodic pulses to heavy up during peak selling periods; this strategy is appropriate for products like soft drinks, which are consumed all year but more heavily in the summer
running the same commercial every half hour on the same network during prime time
buying air time on all three networks simultaneously; Chrysler used this technique to give viewers the impression that the advertiser was everywhere, even if the ad showed for only a few nights
reach business executives, it flooded the airwaves on Sundays (on both cable and network TV channels) to make it virtually impossible to miss the ads
marketing research
To help managers make marketing decisions, companies develop systematic procedures for gathering, recording, and analyzing new information; should not be confused with market research, which is information gathered about a particular market or market segment; does a number of things: it helps identify consumer needs and market segments; it provides the information for developing new products and marketing strategies; and it enables managers to assess the effectiveness of promotional activities; also useful in financial planning, economic forecasting, and quality control
three R’s
recruiting new customers, retaining current customers, and regaining lost customers
IMC research
uncovers the information needed for making IMC decisions; by definition, it is the systematic gathering and analysis of information to help develop or evaluate message strategies, individual promotions, and whole campaigns
IMC strategy research
Companies develop a message strategy by blending elements of the creative mix. These in-clude the product concept, the target audience, the communication media, and the creative mes-sage. To seek information about any or all of these various elements, companies use IMC strategy research.
product concept
a detailed version of the new-product idea stated in meaningful consumer terms
media research
used to develop media strategies, select media vehicles, and evaluate their results
used to increase the likelihood of preparing the most effective messages
also called tracking; provides the marketer with useful guidelines for future advertising
five Ms
merchandise, markets, motives, messages, and media
another word for product concept; Companies may pretest many things: the package design, how a message positions the brand, or how well it communicates the product’s features. Some researchers use a process called benefit testing. They present 10 to 12 product benefits to a market segment in a focus group.
Companies may pretest a strategy or particular commercials with different markets. The information they gain may cause them to alter their strategy and target the campaign to new segments. In posttesting, advertisers want to know if the campaign succeeded in reaching its target markets. Changes in awareness and increases in market share are two indicators of success.
Consumers’ motives are outside a company’s control, but the messages they create to appeal to those motives are not. Pretesting helps marketers identify and appeal to the most compelling needs and motives, and to evaluate whether consumers consider brand claims about meeting such needs as compelling and credible. Posttesting can indicate how effective they were.
Pretesting helps identify outstanding, as well as underperforming, messages. It helps determine what (from the customer’s point of view) a message says and how well it says it. If the message is an ad, an agency might test the headline, the text, the illustration, the typography—or the message concept. Most important, pretesting guides the improvement of commercials. However, pretesting is not foolproof. The only way to know for sure if a message is effective is through posttesting. Here the marketer determines to what extent the message was seen, remembered, and believed. Virtually all testing assesses both cognitive change (e.g., increased awareness of a brand or the memorability of a slogan or benefit) and evaluative change (e.g., brand interest or more positive brand attitudes).
media classes
broad media categories of print, electronic, digital interactive, direct mail, and out-of-home
media subclasses
refer to newspapers or magazines, radio or TV, and so on
media vehicle
the particular publication or program
media units
are the size or length of an ad: half- page or full- page ads, 15- or 30- second spots, 60- second commercials, and so forth
marketing information system (MIS)
a sophisticated set of procedures designed to generate a continuous, orderly flow of information for use in making marketing decisions; these systems ensure that managers get the information they need when they need it
informal research
aka exploratory research; second step used to learn more about the market, the competition, and the business environment, and to better define the problem
primary data
Information collected by the company or agency about a specific problem is called primary data; acquiring it is typically expensive and time-consuming.
secondary data
So during the exploratory stage, researchers frequently use secondary data — information previously collected or published, usually for some other purpose. This information is readily available, either internally or externally, and can be gathered more quickly and inexpensively than primary data.
primary research
When a company wants to collect its own data about a specific problem or issue, it uses primary research. There are two types of primary research: qualitative and quantitative.
qualitative research
To get a general impression of the market, the consumer, or the product, marketers typically start with qualitative research. This enables researchers to gain insight into both the population whose opinion will be sampled and the subject matter itself. To get people to share their motives, beliefs, and perceptions, researchers use qualitative research that encourages consumers to openly discuss their thoughts and feelings in response to questions from an interviewer. Some marketers refer to this as motivation research.
quantitative research
To get hard numbers about specific marketing situations, they may perform a survey or use some other form of quantitative research . Sophisticated agencies use a balance of both qualitative and quantitative methods, understanding the limits of each and how they work together. Companies use quantitative research to gain reliable, hard statistics about specific market conditions or situations. Three basic research methods can be used to collect quantitative data: observation, experiment, and survey.
projective techniques
Advertisers use projective techniques to unearth people’s underlying or subconscious feelings, attitudes, interests, opinions, needs, and motives. By asking indirect questions (such as “What kind of people do you think shop here?”), the researcher tries to involve consumers in a situation where they can express feelings about the problem or product.
intensive techniques
Intensive techniques, such as in-depth interviews, also require great care to administer properly. In the in- depth interview, carefully planned but loosely structured questions help the interviewer probe respondents’ deeper feelings.
focus group
One of the most common intensive research techniques is the focus group, in which the company invites six or more people typical of the target market to a group session to discuss the product, the service, or the marketing situation.
observation method
In the observation method, researchers monitor consumer activities, typically in their native environments, such as a store, a park, or the workplace. They may count the traffic that passes by a billboard, count a TV audience through instruments hooked to TV sets, or study consumer reactions to products displayed in the supermarket. Most observation method research is performed by large, independent marketing research companies, such as ACNielsen and Information Resources, Inc.
Universal Product Code (UPC) label
by reading the codes with optical scanners, researchers can tell which products are selling and how well. The UPC label not only increases speed and accuracy at the checkout counter; it also enables timely inventory control and gives stores and manufacturers accurate point- of- purchase data sensitive to the impact of price, in- store pro-motion, couponing, and advertising.
experimental method
To measure cause- and- effect relationships, researchers use the experimental method . An experiment is a scientific investigation in which a researcher randomly assigns different consumers to two or more messages or stimuli.
test market
introduce the product in that area alone or test a new ad campaign or promotion before a national rollout
A common method of gathering primary research data is the survey, in which the researcher gains information on attitudes, opinions, or motivations by questioning current or prospective customers (political polls are a common type of survey). Surveys can be conducted by personal interview, telephone, mail, or on the Internet.
direct questioning
researchers can elicit a full range of responses from people and thereby infer how well advertising messages convey key copy points
central location tests
respondents are shown test commercials, usually in shopping centers, and questions are asked before and after exposure.
clutter tests
test commercials are shown with noncompeting control commercials to determine their effectiveness, measure comprehension and attitude shifts, and detect weaknesses
the halo effect
respondents often rate the ones that make the best first impression as the highest in all categories
attitude tests
measure a campaign’s effectiveness in creating a favorable image for a company, its brand, or its products; presumably, favorable changes in attitude predispose consumers to buy the company’s product.
recall tests
reveal the effectiveness of message components, such as size, color, or themes. But they measure what respondents noticed, not whether they actually buy the product.
inquiry tests
consumers respond to an offer for information or free samples—researchers can test a message’s attention- getting value, readability, and understandability. These tests also permit fairly good control of the variables that motivate reader action, particularly if a split-run test is used; the inquiry test is also effective for testing small-space ads.
sales tests
Sales response may not be immediate, and sales tests, particularly field studies, are often costly and time- consuming.
results must be free of bias and reflect the true status of the market
Moreover, if you repeated the test with five more people, you might get an entirely different response. So your test also lacks reliability . For a test to be reliable, it must be repeatable — it must produce approximately the same result each time it is administered
When a company wants to know what consumers think, it can’t ask everybody. But its research must reflect the universe (the entire target population) of prospective customers.
Researchers select from that population a sample that they expect will represent the population’s characteristics. To accomplish this, they must decide whom to survey, how many to survey, and how to choose the respondents.
sample units
the individuals, families, or companies being surveyed
random probability samples
The greatest accuracy is gained from random probability samples because everyone in the universe has an equal chance of being selected. For example, a researcher who wants to know a community’s opinion on an issue starts with a complete list of all people in the community and selects members at random. But this method has difficulties. Every unit (person) must be known, listed, and numbered so each has an equal chance of being selected— an often prohibitively expensive and sometimes impossible task, especially with customers of nationally distributed products.
nonprobability samples
Instead, researchers use nonprobability samples extensively because they’re easier than probability samples, as well as less expensive and time- consuming. Nonprobability samples don’t give every unit in the universe an equal chance of being included, so there’s no guarantee the sample is representative. As a result, researchers can’t be confident in the accuracy of the responses.
product use by age group or education; Many cross- tabulations are possible, but researchers must use skill and imagination to select only those that answer the right questions.

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