MGT 4308 (Quiz 1) – Flashcards

The optimal combination and coordination of the promotional mix elements designed to provide clarity, consistency, and maximum communications impact

Define a target market Marketing mix -Product -Price -Place -Promotion

-The structured and composed non-personal communication of information -Usually paid for -Usually persuasive in nature Can be persuasive, informative, or reminder-oriented -about products, services, or ideas -by identified sponsors -through various media

-to identify brands and differentiate them -to communicate information about the brand, its feature (benefits), and its location of sale -to induce consumers to try the brand and to suggest re-use (PULL) -to stimulate the distribution of a brand (PUSH) -to build brand value, preference, and loyalty -to increase product use -to lower the overall cost of sales -to slow demand (demarketing)

-very targeted media (narrowcasting) -digital -ads in new medium -product placements in movies, TV -native advertising -"nontraditional" media methods of advertising -concern with effectiveness of traditional media -shifting $$$

Source--party who formulates an idea -Company or organization -Spokesperson Encoding--translates the idea into a message -words, symbols, both Message--idea to be sent Channel--medium or set of media carrying message -Personal--personal selling -Nonpersonal--television, newspapers, magazines, radio, and billboards Receiver--consumer Decoding--consumer's interpretation of an advertisement -Depends on aspects of consumer behavior -Attitudes, perceptions, personality, etc. Noise--hundreds of other advertisements consumers encounter Feedback--acknowledgement of received message; importance of direct response mechanisms or tracking mechanisms -redeemed coupons -increase in store traffic -banner ad clicks, etc.

-clear, consistent messages are important -need to understand consumers' held beliefs about product, brand, category -early positioning is important -limited processing capacity means less opportunity for products and services to be differentiated -importance of two-way communication and relationship marketing -accumulation, not replacement

new concept-->memory-->old or existing concept

New concept-->existing concept

-they are not recognizable -they are not related to each other -conflict with what has already been stored -unrelated or unimportant to the person

-advertisers -ad agencies -media -miscellaneous suppliers

-planning -research -budgeting -coordination -ad creation

-an independent organization -of creative and business people -who specialize in developing and preparing advertising plans, advertisements, and other promotional tools -who purchase advertising space and time in various media on behalf of their clients -in support of specific marketing and advertising objectives

Account Management --liaison between the agency and the client; manages the client/agency relationship Account Planning --integrated marketing communications planning --Research to develop to evaluate --Creative Development --Ad Production --Media Planning

Full-Service Agencies -general consumer agency -business-to-business agency Specialized Service Agencies -creative boutiques -media-buying services -interactive agencies

(15%) $100 billed to advertiser by agency - 85 paid to media by ad agency $15 commission to ad agency $100 => published commissionable price

(17.65%) $85 billed to agency by supplier x1.1765 mark-up $100 billed to advertiser by agency $85 => non-commissionable expense

-Fee-commission -straight-fee -incentive plans -risk-reward

the trend in advertising agency compensation is away from the traditional approach using media commissions and mark-ups, and towards more fee-based and incentive-based plans

Pros: -simple to administer -no negotiation needed Cons: -ignores performance -agency incentive to spend -need to operate within 15% may result in substandard work

Pros: -removes agency incentive to spend -increases advertiser control Cons: -ignores performance -difficult to negotiate -agency incentive to reduct resourses

Pros: -compensation is performance-based -best in principle Cons: -how to measure performance? -lag effects -limited to situations where advertising is the dominant promotion mix element

-equity stakes -ads as intellectual property

Departmental Systems: -organized by function/expertise Group Systems: -organized by customer/client In-House Agency: -advertiser builds and staffs their own ad agency to perform agency functions

Pros: -save commissions and mark-ups -align brand message -faster response -already understand the business -no other clients -consistency from lack of turn over Cons: -loss of objectivity -loss of creativity -difficult to attract the best creative talent -staffing $$$ Most readily overcome the disadvantages of using an in-house ad agency? -Business to business -Creative organizations

-general -marketing -creative -production -media -personality -references

-identify consumer needs -identify market segments -develop new products -design marketing strategies -assess effectiveness of marketing programs -provides information necessary to make marketing decisions

-systematic gathering and analysis of information to help develop and evaluate advertising strategies, individual ads, and entire campaigns -provides information necessary to make advertising decisions 1. Strategy Determination 2. Creative Concept Development 3. Pre-testing 4. Post-testing

-consumers' perception of a product or service as a bundle of values that satisfy wants and needs -leads to effective positioning strategy

-Who are the heavy users? -Untapped groups?

-What television shows/magazines.websites are our customers watching/reading/visiting? -when are they watching/reading/listening/surfing?

how do we create a clear message that will influence/persuade/etc. our customers?

-measures the target audience's acceptance of different creative ideas at the concept stage -done before agency production begins -may include: concept testing, name testing, slogan testing

-testing the effectiveness of an advertisement for gaps or flaws in message content before recommending it to clients -done before finished artwork and photography -is it believable? interesting? likable? memorable? persuasive? Challenges: -artificial setting -interviewer -demand responses

-testing the effectiveness of an advertisement after it has been run -tests finished ads under actual market conditions -is it memorable? changing attitudes? affecting sales?

Unaided recall -what advertisements can you recall? Aided recall -do you remember seeing this ad? Attitude tests -measuring changes after a campaign -better than recall tests for measuring sales effectiveness Inquiry tests -readers respond to get something Sales tests -past sales versus current sales

Recall tests -measure what they notice, not what they buy Inquiry tests -do they reflect sincere interest? Sales tests -only useful when advertising is the dominant marketing communication -other factors can affect -lag effects

Marketing plan -marketing goals and objectives -marketing strategy and tactics Advertising plan -advertising goals and objectives -advertising strategy and tactics

-specifies the overall goals, objectives, strategies, and tactics for the brand Effect on advertising -helps managers analyze and improve communications -defines the role of advertising in the marketing mix -enables better implementation, control, and continuity of campaigns -ensures most efficient allocations of IMC dollars

Most traditional and most commonly used format of marketing planning that includes 4 stages: Situation Analysis: -factual statement of the company's current situation and how it got there -should also place these facts into context -from it, companies usually develop SWOT analysis Marketing Objectives: -need-satisfying (focus on customer) -sales-targeting (focus on company) -different from corporate objectives, which are expressed in terms of profit, ROI, net worth, earnings ratios, etc. Marketing Strategy: -describes how the company plans to meet its marketing objectives--includes defining target market, determining strategic positioning, and developing appropriate marketing mix Marketing Tactics: -specific short-term actions to be taken to put into effect marketing strategy

Marketing Tactics--> Marketing Strategy--> Marketing Results

Keys to Building Brand Equity: -Customers, not products, are focus -Market relationships, not transactions -Know the customer has choices

-Customer (instead of product) -Cost (instead of price) -Convenience (instead of place) -Conversation (instead of promotion)

-Planned -Product -Service -Unplanned

Traditional marketing communications messages -Advertising -Sales promotions -Personal selling -Public relations -Event sponsorships

Messages from other elements in marketing mix -Price -Packaging -Distribution elements

Employee interactions with customers -General employees -Customer service

Uncontrollable sources -Employee gossip -Unsought news stories -Competitors -Word-of-mouth rumors -Major disasters

Customer--> Communications Objectives--> Communications Strategy--> Communications Tactics

-The plan that directs the company's advertising effort -It analyzes the situation, sets advertising objectives, and lay out a specific strategy from which ads and campaigns are created -Stems from the marketing plan ---what strengths and opportunities need to be leveraged? ---what weaknesses and threats need to be addressed?

Objectives are KEY! -They guide the planning and decision making -They affect creative media decisions -They provide a benchmark Must be specific, about the customer, clearly written, measurable, realistic, achievable, and time specific (SMART--Specific, Measurable, Achievable, Realistic, and Time specific)

Marketing sells, Advertising tells: -Marketing objectives can be related to sales, advertising objectives should be related to communication outcomes -Before advertising can persuade consumers to buy, it must inform, persuade, or remind its audience about the product or service -Some communications are more directly tied to sales: ---direct-response advertising ---sales promotions ---point-of-purchase displays

Any individual advertising objective must be: 1) result-specific (i.e., measurable) 2) time-specific 3) quantified 4) reasonable/challenging -not related to sales in communication

Action (Top) Desire Conviction Comprehension Awareness (Bottom) (as you go up, fewer people, more time, more money)

Awareness -to acquaint people with the company, product, service, and/or brand -"within 3 months, communicate the existence of CAR to half of the more than 500,000 people who annually buy imported economy cars" Comprehension -communicate enough information about the product's purpose, image, or position, and perhaps some of its features -"within 5 months, get two-thirds of the "aware" group to comprehend that CAR is a superior economy car with many design, safety, and environmentally friendly features, etc. etc." Conviction -persuade people to actually believe in the product's value -"within 6 months, convince two-thirds of the "comprehending" group that CAR is a high-quality car, reliable, economical, and fun to drive" Desire -motivate consumers to desire the product -"within 8 months, stimulate desire within two-thirds of the "convinced" group for a test drive" Action -motivate people to request additional information, send in a coupon, or visit a store -"within a year, motivate two-thirds of the "desire" group to take action and visit retailer for a test drive"

Creative Strategy: -guide for developing advertising -defines the target audience -restates the objective of advertising -specifies the key benefits to be communicated Media Strategy: -provides direction to the media planners -defines communication objectives that must be achieved and describes how these will be accomplished through the use of media vehicles