Principles of Advertising Final exam

Integrated Marketing Communications (IMC)

is the coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program which maximizes the impact on consumers and other end-users at a minimal cost

The IMC includes:

All business-to-business, channel, customer, external communications and internal communications

Brand Parity

Occurs when consumers believe that most brands provide the same set of attributes (or when there is the perception that most goods and services are essentially the same)

Brand Extension

The use of an established brand name on goods and services not related to the core brand

Examples of Brand extension

Nike creating a line of clothing to go along with their main products (shoes)

Black & Decker has been successful in extending its brand name to new types of power tools. The company was not successful in extending the line to small kitchen appliances.

Corporate (brand) Image

Overall consumer perceptions or end users feelings toward a company along with its goods and services

Brand Equity

Is when consumers see a brand as being superior or unique

Private Brands

Are proprietary brands marketed by an organization and normally distribute exclusively within the organization's outlets

Involvement

The extent to which a stimulus or task is relevant to a consumer's existing needs, wants or value

Attitude

Mental position taken toward a topic, a person, or an event that influences the holder's feelings,perceptions, learning processes, and subsequent behaviors.

Cognitive Maps

Are simulations of the knowledge structures embedded in an individual's brain. These structures contain a person's Assumptions; Beliefs; Interpretations of facts; and Feelings

Evoked Set

The brands a person considers in a purchase situation

Evoked set Example:

While selecting a restaurant, Donna thought about all her favorite places and finally chose red lobster because she loves the food and it has been a while since she ate there

Dual Channel Marketing

Selling virtually the same goods or services to both consumers and businesses

Market Segmentation

Is the process of dividing a market into a meaningful, relatively similar, identifiable segments or groups

Geodemographics

Combines census data with psychographic information. (PRIZM)

ex: A company sends direct mail to only the zip codes of communities that match the firm's best customer profiles

Psychographics

Emerge from patterns of responses, which reveal a person's attitudes, interests, and opinions (AIO)

Psychographic segmentation example:

Marketing to individuals who are successful, sophisticated, receptive to new technologies, enjoy sports, and are liberal in their political views

Product Positioning

The perception created in the consumer's mind regarding the nature of a company and its products relative to the competition (quality, prices, distribution, image, and marketing communications)

Leverage Point

The Key element in an advertisement that taps into, or activates, a consumer's personal value.

Executional Framework

Method used to deliver the advertisement message

Visual Esperanto

Is a universal language that makes global advertising possible for any good or service by recognizing that visual images are more powerful than verbal descriptions

-It transcends cultures and languages conveying the same meaning

Whole-Egg-Theory

Advertising agency should provide full marketing services for a company and assist in integrating every aspect of the company's marketing effort

Account executives

The key go-between for the advertising agency and a client company

-actively seeks new accounts

-serves as a liaison between the client and the agency

-helps define the theme of the overall IMC campaign

Traffic Managers

Schedule the various aspects of the agency's work to ensure the work is completed by the target deadline

Top-of-mind brand

Brands a consumer mentions first when asked about brands in a particular product category

ex: When A customer reports Lexus is the first car he thinks of in the "luxury automobile" category

Tagline

A catchy, easy-to-remember phrase in an ad used to make the key point and reinforce the company's image to the consumer.

Creative Breif

Last step in adv management is the writing of this. Most contain 5 elements: The Objective, Target Audience, Message Theme, The Support, The Constraints

Message Theme

An outline of key idea(s) the advertising campaign conveys. Should be the ONE Unique Selling Point the client wants its target audience to get.

Unique Selling Proposition (USP)

Message strategy focuses on a testable claim of uniqueness or superiority.

Hyperbole

Is an untestable claim based on some attribute or benefit. e.g. NBC "America's favorite comedies

Comparative cognitive message strategy

Focuses on a direct or indirect comparison to a competing brand (Real or fictitious) (captures attention, negative attitude, less believable)

Spontaneous trait transference-placing the negative trait on the advertised brand instead of competitor

affective message strategies

Advertisements that invoke feelings or emotions, attempt to enhance like ability of a product

Emotional messages: attempt to elicit emotions that will lead to product recall and choice.

Ad appeal

Is the approach used to design the advertisement that attracts consumers, through the use of humor, fear, sex, logic, or emotion

Reach

Represents the number of people, households, or businesses in a target audience that are exposed to a media vehicle or message schedule at least once during a specified time period, which is usually 4 weeks.

Frequency

The average number of times an individual, household, or business is exposed to a particular advertisement within a specified time period, again usually within 4 weeks.

Intrusion Value

Viewers will pay attention to an ad even if they don't want to.

Media Multiplier Effect

Suggests that combining two or more media increases the impact of an advertising campaign more than any one medium by itself.

This is true in both the consumer market and the B-to-B market.

E-Commerce

Selling goods and services on the internet.

Click-only operations: sell exclusively online

Bricks-and-clicks: operate both a retail store and are online.

Interactive Marketing

The development of marketing programs that create two-way communications and enhance engagement of consumers with the brand.

Seller opportunism

Fear that the business is not legitimate and is out to cheat them

Social Media Marketing

Utilization of social media or social networks to market a product, company, or brand. Engaging consumers with the brand should be the primary reason.

Brand Advocates

4.7% or fans generate most social buzz

-Behavioral commitment

-Emotional connection

-Quality communication skills

Content Seeding

Provide incentives to encourage sharing

Financial incentives: Coupons, Rebates, Contests

Value-added incentives:Exclusive information, Cause-related marketing

Real-Time Marketing

Creation and execution of an instantaneous marketing message in response to or during a live event

Ex: During a recent blizzard, Starbuck's sent messages on Facebook and Twitter that focused on a warm cup of coffee.

Viral Marketing

Message passed from one consumer to another: E-mail; Blogs

Form of advocacy or word-of-mouth endorsement

(Advertisements, Hyperlinked promotions, Online newsletters, Streaming videos, Games)

Buzz Marketing

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.

Lifestyle Marketing

Identifying marketing methods associated with the hobbies, entertainment, and lives of the target audience.

It involves making contact with consumers where they go for relaxations, excitement, socialization, and enjoyment.

Lifestyle Marketing Example:

A/X Armani Exchange reaches young consumers through sponsoring and setting up booths at music festivals and fashion shows.

Experiential Marketing

The intersection of direct marketing, field marketing, and sales promotions.

Its basic premise is increasing the experience of direct marketing through an interactive connection.

Experiential Marketing: Example

Nickelodeon used _______ with their Slime Across American Tour.

30,000 kids were exposed to the exhibit and 20 million television impressions resulted.

Experiential Marketing: Example 2

Jack Morton Worldwide used a traveling mall exhibit to expose consumers to the benefits of cotton and cotton clothing.

Consumers could sing and record their own version of the song "Fabrics of Our Lives."

Product Placement

A planned insertion in a movie, television show, book or other forms of entertainment.

E. T. and Reese's Pieces

Lifetime Value

The present value of future profits a customer will generate over his or her lifetime relationship with a company.

The value of that customer (or customer segment) and provides an idea on how much effort should be expended to keep the customer and to upgrade them to a more loyal customer.

Lifetime Value Example:

When CLV of a customer segment is $1,375, the figure represents the amount, on average, that each customer will generate over his or her lifetime

Data mining

Involves using computer data analysis software to mine data for meaningful information and relationships.

Includes two activities:

(1) Building profiles of customer segments and/or (2) preparing models that predict future purchase behaviors based on past purchase

Data mining Example:

Barnes and Noble uses this process when you pick out a book to purchase, they tell you what other books were bought by purchasers of that particular book.

Trawling

The process of searching a database for specific information for marketing purposes.

Home Depot can use it to locate individuals who have recently moved to offer them discounts on home furnishings and building materials.

Trawling Examples:

Companies can send a card or email on the anniversary of a past purchase, such as a new car.

Individuals who have not made a purchase recently, say within the last 90 days, can be sent a special offer to come back.

Permission Marketing

A form of database marketing in which the company sends promotional materials to customers who give the company permission to do so

Frequency Program

A marketing program to promote loyalty or frequent purchases of the same brand (or company)

Premium

Prizes, gifts, or other special offers consumers receive when purchasing a product. The key to ______ is that consumers pay full price for the product

Premium Example:

When Larry Stevens subscribed to Men's Health magazine, he received a free copy of Men's Health Total Fitness Guide.

Contest

Require some type of activity or skill

Sweepstakes

Rely on random chance

Sweepstakes Example:

By visiting the priceless.com site, Mastercard users can register for the Mastercard Roots of Rock program and have a chance at winning one of five trips to see a rock legend, such as Jon Bon Jovi or Eric Clapton, perform at their original venue.

Contest Example:

The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products. Finalists are brought to Pillsbury kitchens to bake their recipes so the winner of a cash prize can be chosen.

Sampling

The actual delivery of a product to consumers for their use or consumption

-Encourage prospects to try the brand and compare it to the brand they are currently using.

Sampling Example:

A 7-day free membership at a fitness center or free initial consultation with a lawyer or dentist.

Slotting Fees

The most controversial form of trade allowances

A fee charged by retailers to stock new products.

Cooperative Merchandising Agreement

A formal agreement between a manufacturer and a channel member (normally a retailer)

-Specifies the marketing functions the channel member will perform in exchange for the financial incentive.