Marketing 302 Final Umich

reading 1 - A Practical Guide to combinign products and service

to drive revenue, companies combine product and service in 4 combo types:flexible, peace of mind, multibenefit, and one-stop. To know which type to use, look at points of difference and analze your company

reading 1 - what's the flexible product service combo like?

allows buyers to customize their purchase

reading 1 - what's the peace of mind product service combo like?

offers the best of breed in both product and service

reading 1 - what's the multibenefit product service combo like?

offers customers an increasing number of add-on features or benefits

reading 1 - what's the one-stop product service combo like?

focuses on convinience shopping

Goods and services are typicallu conceptually along a contonuum? What are the two ends of the continuum?

pure goods (tangible) and pure service (what someone does for you)

4 features of service

intangibility, heterogeneity, inseparability, perishability

intangibility

lacking the ability to be touched, felt, held, and controlled

what do tangible reminders of service remind customers?

reminds them of what's provided

examples of intangible reminders of service?

room service leaving a note in your room, folded up ends of toilet paper, spokespeople

heterogeneity

service quality or output varies from one customer to another because of consistency - doctors from lower raking colleges overprescribe

;What things are essential to mitigate heterogeneity?

training and clear guideline,

Do customers like the service more with employees wearing uniforms or without?

with service, customers LOVE it when uniformed and only LIKE it if ununiformed

Inseparability

service provider and customer both affect the quality of service being provided; we can't separate the recipient from the service

examples of inseparability with service

therapy sessions with clients, haircuts for various customers, standup comedians with crowds

perishability

service can't be inventoried, stored for later, saved, returned, or resold once rendered to a customer

Aka inability to inventory

Does does perishability become a problem?

when demand fluctuates; service providers generally want smooth demand

As service providers, how do we make waiting less aversive?

manage expectations - disney wait times are longer than the wait actually is. Thus, customers are delighted when they get to the front of the line and realize the wait wasn't that long.

Display the labor behind online search with a transparent search engine

What services are highly standardized?

ATM machines and airlines

Differences in the production/marketing of goods and services are...

shrinking

Common argument with customer satisfaction

no company can last long without customer satisfaction, satisfaction can help your brand become customers' first choice within the category

Different view on how far we should go to delight customers?

going to extremes for customers (zappos 10 hour long service call), do what you need to do, but caring about the customer can be too costly

Instances where companies are successful despite low satisfaction

deliberate bad service (wiener's circle) or when it's the only option

Satisfaction =

performance - expectation

Prescription for customer satisfaction =

(almost) never make a promis you can't keep

Blod premises might favorably bias perceived quality when...

the consumption/service experience is ambiguous ("This class will change your life!")

Bold premises are dangerous when...

the consumption/service experience is easy to evaluate (we will deliver this pizza in under 30 minutes)

Why are memories important to manage?

they are malleable and can be influenced by advertising viewed post experience (amusement parks showing the ride and not the lines)

availability heuristic

we tend to treat the ease that we can recall examples of an event as an indicator of the frequency of the event

example of availability heuristic

plane crashes can make people afraid of flying. There's more likely to be media coverage because of the gravity. However, the likelihood of dying in a car accident is far higher than dying as a passenger on an airplane.

How can be improve evaluations of an experience by soliciting negative feedback?

Ask for more of it.

"Tell me 10 things you would change about this course." It's hard to come up with 10 things....so maybe the class isn't that bad! The student then goes and rates the course higher.

certain moments of service/experience are especially likely to influence memories...

Retrospective evaluations of experiences tend to follow a "peak/end" rule

Evaluations tend to reflect an average of first pleasure/pain and final level of pleasure/pain

Peak/end formula

(peak time + final time)/2

service recovery paradox

There are situations in which post recovery satisfaction is greater than satisfaction prior to the service failure.

Expectations following service failure tend to be pretty low

John Shea's method to break out of the category

RED - relevance, ease, disctinctiveness

reading 2 - Creativity in Advertising: When it works and when it doesn't

Numerous experiments found that creative messages get more attention and lead to positive attitudes about the products being marketed, but there's no firm evidence that shows how those messages influence purchase behavior.

reading 2 - Torrence's Tests of Creative Thinking (TTCT)

Fluency refers to the number of relevant ideas proposed in response to a given question (such as "list as many uses as you can for a paper clip"), and originality measures how uncommon or unique the responses are. Elaboration refers to the amount of detail given in a response, and abstractness measures the degree to which a slogan or a word moves beyond being a label for something concrete. Resistance to premature closure measures the ability to consider a variety of factors when processing information

reading 2 - the longer a creative ad is aired...

the more impact the creativity has on sales

reading 2 - hierarchical sales models are used because they...

get around the problem by nesting one regression model within another. This allows us to see both the direct impact of creativity on sales and the amplifying effect of the budget, and thus arrive at a more accurate overall estimate of the effect of creativity on sales

reading 2 - which one of torrence's tests of creative thinking is the most powerful?

elaboration

promotion

means by which firms attempt to inform, persuade, and remind consumers about the products/brands they sell

"Aka marketing communication"

Represent the "voice" of the company and its brands

It is here that we convert consumer propositions into taglines, slogans, ads, etc

common misconception with commercials...

commercials = advertising = MKT communication

Parts of the marketing mix

Interacting marketing

PR and publicity

Direct marketing

Personal selling

Events and experience

sale s promotion

Adverting (commercials)

advertising

paid media promotions to boost sales like print, web, and broadcast ads, product placement, billboards, points of purchase

price/consumer promotion

price discounts and product giveaways

Ex =

Coupons

Rebates

Giveaways

Gifts

Free samples

public relations

building relationships with the public to create a psoitive image for the brand

"Doing good for the community"

Ex =

Domino's disaster relief and donations

direct and interactive marketing

when businesses interact with potential customers directly without using a middleman like newspapers or retailers; examples are catalogs

Sales presentations and trade shows are meant for...

business to business communication (B2B)

Common Marketing Communications Objectives

-achieve basic awareness

-achieve top-of-mind awareness

-achieve an information goal

-achieve an image goal

-achieve a behavior goal

achieve basic awareness

increase recognition

achieve top of mind awareness

increase recall, ability to remember something without being prompted

Achieve an information goal

increase awareness of a piece of info, Jennie-O Turkey Burger example

Achieve an image goal

increase % agreement with "brand X is contemporary"

To incease specific agreed upon brand associations

Ex =

Commercials that don't have dialogue, like Chanel commercials that are more about the ibe

achieve a behavior goal

Increase "retail inquiries"

Increases retail inquiries and motivates immediate action

Ex =

A big number at the bottom of the commercial to call

How entertaining should out ads be?

In general, entertainment that preceded information about the brand is risky

People may forget who entertained them

People may turn the channel before the brand is revealed

Better to integrate the brand throughout, even if some entertainment must be sacrificed

The truth effect

With repetition, consumers can come to believe the claim that is being made

Ex =

Shark cartilage is good for your arthritis

FALSE

At the end of the experiment, which claims are true or false?

Ps with 4 exposures had better recall than Ps with 1 exposure

3 days later, Ps are asked the same questions

Results = Ps with 3 exposures said everything they read was true

sleeper effect

memory for content > memory for context

Spread of disinformation can occur even when the initial message is from a low-credibility source. Better way to debunk claims: don't repeat the false statements

Just focus on the truth

The mere exposure effect

short exposure can increase likability

what explains the ubiquity of product placements?

the mere exposure effect; Subconsciously putting brands' products in front of you may increase likability

What example shows why it's important to control the context in which your product is shown

In Sex in the City reboot, Mr. Big is on the Peloton and has a heart attack.

Results = Peloton shares went tumbling.

Native advertising

ads that are meant to blend into its context. It's meant to look like regular content in that context

what's an example of native advertising?

the Atlantic has a paid ad that's actually sponsored content, but looks exactly like a normal article

What's a risk with native advertising?

high possibility of being misleading, ethical legal issues with FTC

Coupons with consumer price promotions

have large distribution with lower redemption, mere presence of the coupon acts as a reminder to purchase the brand

Benefits of unused coupons

Increase brand awareness/attention; have value

reading 3 - Advertising Analytics 2.0

Analytics 2.0 = a set of capabilities that can chew through terabytes of data and hundreds of variables in real time. It allows these companies to create an ultra-high-definition picture of their marketing performance, run scenarios, and change ad strategies on the fly

Reveals what really works

The move to advertising analytics 2.0 involves three broad activities:

1. Attribution = quantifies the contribution of each element of advertising.

Focus on the signal rather than the noise

2. Optimization = uses predictive analytics tools to run scenarios forbusiness planning.

3. Allocation redistributes resources across marketing activities in real time.

reading 3 - swim lane measurement

marketers commonly measure the performance of each of their marketing activities as if they work independently of one another; this measurement underestimates the revenues attributable to social media marketing and overestimates PR and paid research revenue

reading 4 - Ads That Don't Overstep

Research has shown that digital targeting meaningfully improves the response to advertisements and that ad performance declines when marketers' access to consumer data is reduced.

On one hand, awareness could increase ad performance if it makes customers feel that the products they see are personally relevant

On the other hand, awareness could decrease ad performance if it activates concerns about privacy and provokes consumer opposition.

Reading 4 - three factors can increase the upside of targeted ads for both marketers and consumers

trust (voluntary ad transparency), control (central to many privacy concerns is the loss of control), justification (revealing why personal data has been used to generate ads can help consumers realize the upside of targeted ads)

reading 4 - suggestions to digital marketers looking to maximize the potential of ad targeting

stay away from sensitive info, commit to minimum amount of transparency, use data judiciously, justify your data collection, try additional data collection first

media planning

involves selecting desired reach, frequency- Choosing among media types (TV, online, radio, etc)- Choosing a specific vehicle within a media type (e.g., a primetime show vs. the Superbowl)

reach (R)

The total number or percent of relevant people or households exposed to your media campaign during a specified time

when is reach generally most important?

launching a new product, an extension of a well-known brand, going after a poorly defined target

does exposed = actually watching the ad?

No, exposed just means having an "opportunity to see" the ad- Usually, anywhere between 50% and 95% of people watching a program will actually see ads run during that program

frequency (F)

the number of times the people on your list are exposed to your marketing message or brand

when is frequency most important?

when there are strong competitors, a complex story to tell, or high consumer resistance

Gross Rating Points (GRPs)

total number of exposures = R × F• Commonly used to gauge the strength of an ad campaign

What is considered to be the common "currency" of media planning?

GRPs

What platform(s) can GRPs be used across?

Tv, radio, newspapers, magazines

Is there one way to get the same GRP?

No, there are lots of different ways

Reach vs frequency

low reach, high frequency would be multiple ads across the same show. high reach, low frequency would be one ad across multiple shows

Superbowl commercial prices

7 million in '24; most ad placements sold before season. 7 mill doesn't include production costs or other placements

Are super bowl ads effective?

liked to an increase in sales when your close competitors are not advertising.

Upfronts in May

-broadcasters sell 75-90% of their advertising inventory for the upcoming year

-about $9 billion committed by advertisers at most recent upfront

-some is held back for the scatter market (just-in-time purchases)

-networks guarantee ads will reach a certain audience size

-provide audience deficiency units ("make-goods") if they fail to meet that target

How is viewership measured?

~40,000 Us homes are members of a Nielsen panel, with a peoplemeter attached to their TVs. Each member of the house has their own remotes which indicates they're watching and data helps form 'ratings' which help ad placement

What presents a challenge for measuring viewership? Solution?

out of home viewing; the nielson portable people meter

How did Nielsen measure streaming viewership?

they released "The Gauge" is 2021 which monitored internet router traffic in some households

Different measurements Nielsen used

zapping, multitasking, physical zapping, zipping

zapping

change channel

multitasking

diverting attention to people, other media

physical zapping

leave room

zipping

fast forward through recorded programs

What time slot is the most valuable for commercial breaks?

the first slot

Does price vary based on what commercial slot you get?

no, price ignores the likelihood that viewers change channel based on previous ad

factors that increase zapping

- actors older than 40

- convey negative messages

- depict scenes of frustration

- annoying stimuli

How are commercials immediately following political ads viewed?

negatively

What's a non-obvious benefit of ads?

they can sometimes improve viewing experience, when disrupted viewers enjoyed show more

Traditional advertising (TV, print, radio) was surpassed by what in 2019?

digital advertising especially during the pandemic

What firms dominate digital advertising?

google, facebook, amazon, microsoft, verizon

What are the 2 options for buying media online?

Cost per mille (CPM) and Cost per click (CPC)