COMM 2331 Midterm 1

Integrated Marketing Communications

management of promotional tools to create desired communication

Promotional tools

advertising, sales promotions, direct response, publicity and PR, video games, outdoor, corporate/event sponsorship, personal selling, trade shows, point-of-purchase displays, cinema, product placement

Promotional mix

blend of comm tools used by firm to carry out promo process

marketing

process of planning + executing conception, pricing, distirbution, promotion of ideas; creating products/services to satisfy needs of consumers in various ways (price, place, availability)

advertising

creates competition, cuts prices, improves products, gives better value

sales promotion

use of incentives to generate short-term responses (coupons)

direct marketing

organization communicates directly w customers to generate response and/or transaction

BMW The Ticker Short Film

Don Cheadle and Clive Owen delivered a heart to save a world leader

Brand name

written or spoken part of a company

Brand loyalty

customer’s loyalty to a brand

Inelasticity of demand

consumers=less senstive to price bc of brand loyalty

economies of scale

high volume of sales= high volume of production= lower production cost = lower item cost

4 Ps (marketing mix)

product, price,place, promotion; main components of marketing

“Secret Behind Coca-Cola Mktg Strategy”

Coca Cola takes advantage of impulse buying, inpsires emotions, modernized the santa look, secret recipe

“Samsung Strategy for Marketing..”

embraces comparison to Apple, sheds light on disadvantages of Apple products, focuses on user-device relationship, shows everyday people in ads

brand extension

involves using an existing brand to enter a new product category

line extension

introducing new products within the same category under the existing brand

Swoosh: Inside Nike

became #1 athletic brand and overtook Adidas when Michael Jordan was signed, Nike swoosh cost $35 to get designed, founded by Bill Bowerman and Phil Knight, abusive labor practices

Positioning

fitting product or service to one or more segments of a broad market to set it meaningfully apart from the competition

Market segmentation

dividing larger heterogenous populations into smaller homogenous ones

Product differentiation

creating difference between org’s brand and audience’s mind

direct marketing

organization communicates directly w customers to generate response and/or transaction

Stuffing vs. Dressing

dressing is a term mainly used by AAs + people from the south

80-20 rule

80% of revenue coming from 20%

post purchase evaluation

depends on low-involvement vs high-involvement purchase

Cognitive dissonance

a feeling of psychological tension or post-purchase doubt that a consumer experiences after making a difficult purchase choice

expertise

recipient sees source as having relevant knowledge, skill, or expertise

trustworthiness

recipient trusts source to give unbiased, objective information

sleeper effect

some opinion changes in the direction of the communicator’s positons are larger after a lapse in time than immediately after the communication

attractiveness

characteristic that encompasses similarity, familiarity, and likability

primacy effect

info presented first is most effective

recency effect

arguments presented last are most persuasive

purchase intention

predisposition to buy a certain brand by matching purchase motives w/ attributes of brands considered

public relations

evaluates public attitudes, identifies the policies and procedures of an individual or organization with the publc interest, and executes a program to earn public understanding and acceptance

publicity

nonpersonal comms regarding an organization, product, service, or idea that are not directly paid for or run under identified sponsorship

sales promotion

marketing activites that provide extra value or incentives to the sales force, distirbutors, or the ultimate consumer and can stimulate immediate sales

Personal selling

Person-to-person communication in which the seller attempts to assist and/or pursuade prospective buyers to purchase the company’s product or service or to act on an idea

brand identity

combo of the name, logo, symbols, design, packaging, image, and associations held by consumers toward a brand

brand equity

added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment of a company name, brand name, or trademark

experiential needs

the benefits that customers seek while interacting with your service, product or brand

consumer behavior

process and activites that people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs

Stages in the Consumer Decision-Making Process

problem recognition → information search → alternative evaluation → purchase decision → postpurchase evaluation

Maslow Hierarchy of Needs

physiological needs → safety needs → social needs → esteem needs → self-actualization needs

selective perception

involves the filtering or screening of exposure, attention, comprehension, and retention

geographic segmentation

region, city size, statistical area, media—television, density

demographic segmentation

gender, age, race/ethnicity, life stage, birth era, household size, marital status, income, education, occupation

psychographic segmentation

personality, values (VALS2), lifestyle (Nielsen PRIZM), needs

behavior segmentation

retail store type, direct marketing, product features, usage rate, user status, awareness/intentions

PRIZM

provides improved household-level segmentation data combined w tradition geodemographics to companies to asst them in their marketing planning and media strategy decisions

benefit segmentation

a method of segmenting markets on the basis of the major benefits consumers seek in a product or service

target marketing

identifying the specific needs of segments, selecting one or more of these segments as a target, and developing marketing programs directed to each

positioning

the art and science of fitting the product or service to one or more segments of the market in such a way as to set it meaningfully apart from competition

7 positioning strategies

product attributes and benefits, price/quality, use or application, product class, product user, competitor, cultural symbols

evoked set

a subset of all the brands of which the consumer is aware; varies from one consumer to another and depends on importance of purchase + amount of time and energy the consumer wants to spend comparing alternatives

source credibility

extent to which the recipient sees the source as having relevant knowledge, skill, or experience and trusts the source to give unbiased, objective information

Q-scores

calculated by taking the percentage of respondents who indicate that a person is “one of my favorites: and then dividing that number by the percentage of respondents who indicate they have heard of that person; measures how appealing celebrity is to people that know them

personal channel

involve direct interaction between individuals or small groups

nonpersonal channel

involve delivering a message to a larger, more generalized audience

Forms of marketing communication

advertising, sales promotion, traditional media advertising, digital media