MARK TEST 3

Test

Integrated Marketing Communications (IMC)

represents the promotion dimension of the four Ps. It combines different communication disciplines like advertising, personal selling, sales promotion, PR, direct marketing, and online marketing to provide clarity, consistency, and impact to consumers

Transmitter

the sender will work with the transmitter (an agent or intermediary) to develop marketing communications. Example: an ad agency or creative department

Sender

where the IMC message originates from. This should be clearly identified to the intended audience

Encoding

the process of converting the sender's ideas into a message

Communication channel

the medium through which the message is delivered. Example: print, broadcast, internet

Receiver

the person who gets and processes the information contained in the message or the advertisement

Decoding

the process that the receiver uses to interpret the sender's message

Noise

any interference that stems from either competing messages, lack of clarity in the message, or a flaw in the medium

Feedback loop

allows the receiver to communicate with the sender and give them feedback about the message

The AIDA model

suggests that awareness leads to interest, which leads to desire, which leads to action (also known as the think, feel, do model)

Brand awareness

measures how many consumers in a market are familiar with the brand and what it stands for.

Aided recall

when consumers can say they know the brand after someone tells them the name

Top-of-mind awareness

when a consumer mentions a specific brand name first when asked about a product or service

Interest

customers must be convinced that a product is worth learning more about

Desire

at this point, IMC messages need to help the customer want the product

Action

anything that will make the consumer actually buy the product

Laggard effect

delayed response to a marketing communications campaign

Advertising

paid, from identified source, mass media

Public Relations

actions to maintain positive relationship with community and media. Not directly paid

Personal Selling

two way flow of information between a buyer and seller that is designed to influence the buyer's purchase decision

Sales promotion

special incentives that encourage the purchase of a product, such as coupons, rebates, free samples, etc.

Direct Marketing

delivery of promotional materials individually

Online/social media

delivered electronically

Goals

-Understand the outcome they hope to achieve before they begin

-Can be either short-term or long-term goals but should be explicitly defined and measured

Objective and task method

determines the budget required for certain tasks that will help accomplish communication objectives

Rule of thumb methods

IMC budgets that use prior sales and communication activities to determine the present communication budget

Competitive parity

firm's share of communication expenses = its share of the market

Percentage of sales

fixed percentage of forecasted sales

Available budget

budget is the money available after operating costs and profits have been budgeted

Frequency

how often the audience is exposed to a communication within a specified period of time

Reach

percentage of the target population exposed to a specific marketing communication at least once

Gross rating points (GRP)

reach x frequency

Search Engine Marketing

when companies pay for keywords that are used catch consumers' attention while browsing a search engine

Advertising

Most visible element of IMC and is extremely effective at creating awareness and generating interest

Planning and Executing an Ad Campaign

Step 1: Identify target audience

Step 2: Set advertising objectives

Step 3: Determine the advertising budget

Step 4: Convey the message

Step 5: Evaluate and select media

Step 6: Create advertisements

Step 7: Assess impact

Informative advertising

communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase

Persuading advertising

communication used to motivate consumers to take action

Reminder advertising

used to remind consumers of a product or to prompt repurchasing

Pull strategy

-aimed at final consumers

-Advertising, consumer sales promotions, online

-(consumers demand for product so sellers go up supply chain to get it)

Push strategy

-aimed at channel members

-Primarily personal selling

trade sales promotion

(push product down the supply chain where then the retailer pushes it to consumers)

Institution

reminds customers about issues related to places, politics, or an industry

Advocacy advertisements

company takes a position on social issue, such as stop smoking, fight hunger, or cancer research

Public Service Announcements

represents a form of social marketing - the application of marketing issues to a social issue to bring about change

unique selling proposition (USP)

differentiating a product by communicating its unique attributes; this often becomes the common theme/slogan in the entire ad campaign

Puffery

exaggerated commendation for promotional purposes.

Informational appeal

offers factual info and strong arguments built around relevant issues that encourage them to evaluate the brand favorably on the basis of the key benefits it provides

Emotional appeal

aims to satisfy consumers emotional desires rather than utilitarian needs

Media planning

evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience

Mass media

ideal for reaching large numbers of anonymous members like national magazines and tv

Niche media

more focused and used to reach narrow segments, often with unique demographic characteristics/interests

Media mix

the combination of the media used and the frequency of advertising in each medium

Advertising schedule

specifies the timing and duration of advertising

Continuous

runs steadily through the year

Flighting

advertising is implemented in spurts, with periods of heavy advertising followed by periods of no advertising (for seasonal items, like sunscreen)

Pulsing

maintains a base level of advertising but increases intensity during certain periods

Media buy

the actual purchase of airtime or print pages

Headline

the large type designed to draw attention

Subhead

additional smaller headline that provides more info. Uses short and simple words

Body copy

main text portion of an ad

Brand elements

characteristics that identify the sponsor of an ad

Pre-testing

making sure that various elements of an ad are working in an integrated fashion and doing what they are intended to do before launching it

Tracking

includes monitoring key indicators, such as sales volume, while the ad is running so that any issues with the message/medium can be spotted (like the racial issue with the dove ad)

Post-testing

evaluating the campaign's impact after it has been implemented

Forms of PR

publicity (press releases), company tours, speakers, sponsorships, annual reports

Cause-related marketing

businesses and charities partner to market an image, product, or a service for their mutual benefit

Event sponsorship

when corporations support various activities, usually in cultural or sports/entertainment sectors

Cross promoting

when two or more firms join to reach a specific target market

Personal Selling

the two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision

Relationship selling

philosophy that emphasizes a commitment to maintaining a relationship over the long term and investing in opportunities that are mutually beneficial to all parties

Preapproach

salesperson does additional research and develops plans for actually meeting with the customer

Goal

determine customer's specific need and the range of options that would be most likely acceptable

Five Service Quality Dimensions

reliability, responsiveness, assurance, empathy, tangibles

Sales Manager and the Sales Force

managers should treat people fairly. Hiring practices, compensation, firing, etc. should all be legal and ethical

Sales Force and Corporate Policy

the firm may have a policy to sell goods or services to people who cannot afford them or to people who should not have them

Salesperson and the Customer

salespeople have a duty to be ethically and legally correct in all their dealings with their customers and if they don't do this, long-term relationships can deteriorate quickly

Globalization

the process by which goods, services, capital people information and ideas flow across national borders

Evaluating the general economic environment

a firm should look at many metrics when determining market potential for its product such as:

Trade deficit

when a country imports more goods than it exports

Trade surplus

higher level of exports than imports

Gross national income (GNI)

GDP + net income earned from investments abroad minus payments made to non-residents who contribute to the domestic economy

Purchasing power parity (PPP)

theory that says that if exchange rates for 2 countries are in equilibrium, a product purchased in one will be the same price in the other, if expressed in the SAME currency

Infrastructure

basic facilities, services, and installations needed for a community to function like transportation + communication systems, water + power lines, and public institutions like schools, post offices and prisons.

Transportation

there should be a system to transport goods to the various markets/consumers in geographically dispersed marketplaces

Distribution channels

products should be delivered on time at a reasonable cost

Communications

should be developed so that consumers should be able to find info on products/services available in the marketplace

Commerce

legal, banking + regulatory systems that allow markets to function

Analyzing Governmental Actions

these can influence firms' ability to sell goods/services because they can create laws/regulations that can either promote growth OR close off the country and inhibit growth

Tariff/duty

a tax that is levied on a good that's imported into a country