adpr exam 2

advertiser

business, not-for-profit, and government organizations that use advertising and other promotional techniques to communicate with target markets and stimulate awareness and demand for their brand

advertiser categories

manufacturers and service firms

trade resellers

government

social/not-for-profit organizations

advertising agency

an organization of professionals who provide creative and business services to clients, services include planning, preparing, and placing advertisements

full-service (ad agency)

includes an array of advertising professionals to meet all the promotional needs of clients

creative boutique (ad agency)

emphasizes creative concept development, copywriting, and artistic services to clients

digital/ interactive (ad agency)

focus on using online, mobile, and social media for direct marketing and target market communications for clients

in-house (ad agency)

the advertising department within a firm

media specialists (ad agency)

buy media time and space and offer media strategy consulting to advertising agencies and advertisers

promotion agencies

specialized agencies that handle promotional efforts, handle everything from sampling to event promotions to retail promotional tie ins

promotion agency types

direct marketing and database agencies

sales promotion agencies

event-planning agencies

design firms

public relations firms

direct marketing and database agencies (prom. agencies)

maintain and manage large databases of mailing list as one of their services

sales promotion agencies (prom. agencies)

design and then operate contests, sweepstakes, special displays, or coupon campaigns for advertisers

event planning agencies (prom. agencies)

experts in finding locations, securing dates, and putting together a team of people to pull off a promotional event

design firms (prom. agencies)

designers create graphics and logos

public relations firms (prom. agencies)

managing relationships

agency services

account services

marketing research services

creative and production services

media planning and buying services

administrative services

account services

identifying the benefits a brand offers and the best competitive positioning, developing a complete plan

marketing research services

locating studies that have bearing on a client’s market or advertising and IBP objectives

Account Planner

assigned to clients to ensure that research input is included at each stage of development of campaign markets

creative services

a group that develops concepts that express the value of a company’s brand in interesting and memorable ways

production services

include producers who turn concepts into advertisements, direct mail pieces, and other IBP materials

media planning and buying services

contracted for media buying and planning, determine how a client’s message can most effectively and efficiently reach the target audience

administrative services

agencies have personnel departments, accounting and billing teams, and sales staffs that go out and sell the agency to clients

agency compensation

commissions

markupcharges

fee systems

pay-for-results

commissions

based on the amount of money the advertiser spends on media, 15% of the total amount billed by a media organization is retained by the advertising or promotion agency as compensation

markup charge (cost-plus)

a variety of services agency purchases from outside suppliers. production cost + fixed%

fee systems

hourly rates, or by projects

pay for results

fee based on the achievement of agreed on results, tightly specified objectives, becoming more prevalent

external facilitators

organizations or individuals that provide specialized services to advertisers and agencies

marketing and advertising research firms

perform research for advertisers to understand, e.g. MRI- Simmons

consultants

individuals who specialize in areas related to the promotional process e.g. database consultant, website development

production facilitators

offer essential services both during and after the production process

software firms

help gather and analyze date related to web surfing behavior, broadband streaming audio and video

content marketing

creating and posting relevant informational messages for target audiences online and on social media, accessible whenever targeting decision makers are considering a purchase

sales promotion

seeks short-term sales with the use of incentives

consumer-market sales promotion

designed to induce household consumers to purchase a firm’s brand

trade-market sales promotion

designed to motivate distributors, wholesalers, and retailers to stock and feature a firm’s brand in their merchandising programs

business-market sales promotion

designed to cultivate buyers from large corporations who are making purchase decisions

consumer-market sales promotion objectives

stimulate trial purchase

stimulate repeat purchase

stimulate larger purchases

introduce new brand

combat or disrupt competitors’ strategies

contribute to IBP

coupons

offer a designated reduction in price for a production or service

price-off deals

offer cents off merchandise at the point of purchase through specially marked packages

premiums and advertising specialties

are items offered free, or at a reduced price, with the purchase of another item (free granola bar in cereal package

free premium

provides consumers with an item at no cost

self-liquidating premium

requires a consumer to pay most of the cost of the item received as a premium

advertising specialties

include a message, placed on a useful item, given to consumers with no obligation

contests

consumers compete for prizes based on skill or ability; determined by a panel of judges

sweepstakes

winners are determined by chance

sampling

allows customers to use a brand on a trial basis with little to no risk

trial offers

have the same goal as sampling, but with more expensive products

gift cards

free or for-purchase debit cards that provide the holder with a present spending limit

rebates

money received back from the manufacturer instead of the retailer

loyalty programs

offer discounts or free product rewards for repeat purchase or patronage of the same brand, company, or retailer

trade-market sales promotion

marketers offer incentives for the trade market through a push strategyp

push strategy

a sales promotion strategy to encourage purchases by members of the trade to help push a product into the distribution channel

objectives of trade and business market sales promotion

gain initial distribution (competition for shelf space

increase order size

encourage cooperation with consumer-market sales promotion

increase store traffic

trade market sales promotion techniques

incentives

allowances

sales-training programs

cooperative (co-op) advertising

incentives

awards given to retailers for reaching targeted sales levels

push money

monetary reward offered to salespeople for featuring a marketer’s brand with shoppers

merchandise allowances

free products offered as payments to the trade for setting up and maintaining displays

slotting fees

direct cash payments made to induce food chains to stock their items

bill-back allowances

provide retailers a monetary incentive for featuring a brand in advertising or in-store displays

off-invoice allowance

advertisers allow wholesalers and retailers to deduct a set amount from the invoice they receive for merchandise

sales-training programs

provide training for retail store personnel

cooperative (co-op) advertising

provides money directly for retailers for featuring company’s brand in local advertising

business-market sales promotion techniques

trade shows

business gifts

premiums and advertising specialties

trial offers

loyalty programs

trade shows

manufacturers selling related products are displayed at trade show events

business gifts

help build and maintain a close working relationship with suppliers

premiums and advertising specialties

create awareness and add to the satisfaction of a transaction

trial offers

lower buyer’s risk of making a commitment to a brand and help attract new customers

loyalty programs

offer discounts or free product rewards for repeat purchase or patronage of the same brand, company, or retailer

point of purchase advertising

refers to materials in retail settings that attract shoppers attention

objectives of point-of-purchase advertising

draw attention to a brand in the retail setting

maintain purchase loyalty among loyal users

stimulate increased usage of the brand

stimulate trial use by other brands’ users

support media

is used to reinforce or supplement a message being delivered via some other media or vehicle

transit advertising

ads can appear in many venues, including buildings, subways, and stadiums

Ariel advertising

can involve airplanes, skywriting, or blimps/ultralight aircrafts

cinema advertising

includes ads that run before the movies at the theater and other advertising that appears off-screen within a theater

event sponsorship

providing financial support to help fund an event, in return for the right to display a brand name, logo, or advertising message on-site at the event

event social responsibility

provides important opportunities for (sport) sponsors to demonstrate good corporate citizenship, generate positive word of mouth, and boost both attendance and patronage intent

sponsor spillover

an earlier sponsor still may get “credit” for being the sponsor in the consumer’s memory, even when a new brand is the sponsor

sponsorship patronage

preference toward buying from the sponsoring brand

consumer-event congruity

when an event fits a consumer’s image and sense of self

sponsor-event congruity

the sponsor and sponsee are perceived as fit in both image and function

leveraging (or activitating a sponsorship)

collateral communication or activating reinforcing the links between a brand and an event

product placement

the sales promotion technique of getting a marketer’s production featured in movies and television shows

authenticity

the quality of being genuine and natural, a powerful influence on brand loyalty

branded entertainment

advertisers or marketers create their own shows, etc.

native advertising

an ad seemingly in its natural environment and part of the content such as a news feed

create synergy

promote experimental events using social media and other options

direct marketing

an interactive system of marketing that uses one or more advertising media to affect a measurable response and/or transaction at any location

direct marketing includes…

interacting with consumers at sponsored events or corporate conferences

direct interaction with consumers via social media or online

mail or email sent directly to consumer

online shopping experiences (e-commerce)

face-to-face personal selling coversation

Cost Per Inquiry (CPI) or Cost Per Order (CPO)

the number of orders generated by a direct marketing program divides that program’s cost

cost per order

advertising cost / orders placed

database marketing

a type of direct marketing that relies on customer databases

databases

can take many forms and can contain many different layers of information about customers

mailing list / email list

file of names and addresses that an organization might use for contacting prospective or prior customers

marketing database

a mailing list that also includes information collected directly from individual customers

RFM Analysis

Recency

Frequency

Monetary

RFM analysis definition

asks how recently and how often a specific customer is buying from a company and how much money s/he spends per order and over time

frequency marketing programs

provide concrete rewards to frequent customers

cross-selling

marketing programs aimed at customers that already purchase other products from the company; customers buy shirts, sell them pants or scarf too