Marketing 4550 Mizzou IMC Exam 1

communications

the process where individuals share meaning and establish a commonness of thought

marketing communications

the collection of all elements of a firm's marketing mix that facilitate exchange by establishing shared meaning with the firms customers

marketing mix

specific collection of certain levels of elements of a brand's 4Ps - product, price, place and promotion

Elements of the Promotional Mix

advertising, public relations, sales promotion, personal selling, social media

earned media

word-of-mouth or buzz using social media where the advertiser has no control

paid media

internet media, such as display ads, sponsorships, and paid key word searches, that are paid for by an advertiser

owned media

Internet sites, such as websites, blogs, Facebook, and Twitter accounts, that are owned by an advertiser.

promotion management

coordination of promotional mix elements in setting objectives, establishing budgets, designing programs, evaluating performance, and taking corrective action

General Objectives of Promotion

1. inform

2. persuade

3. induce action

brand

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

brand equity

the goodwill that an established brand has built up over its existence

Integrated Marketing Communications

the coordination of promotional mix elements with each other and with other elements of the brand's marketing mix such that all elements speak with one voice.

Five Key Features of IMC

1. Start with the customer or prospect

2. Use any form of relevant contact or touch point

3. Speak with a single voice

4. Build relationships

5. Affect behavior

Synergy

the integration of multiple communication tools and media yield more positive communication results than the tools used individually

Marcom Program

-fundamental decisions

-implementation decisions

A Concluding Mantra: All Marketing Communications Should be...

directed to a particular target market, undertaken to accomplish the objective within the budget constraint, clearly positioned, created to achieve a specific objective

trade dress

the appearance and image of the product, including its packaging, labeling, shape, color, sounds, design, lettering, and style

example of trade dress

the Coca Cola bottle shape/red color

As Brand Equity Increases

A higher market share is achieved

Brand loyalty increases

Premium prices can be charged

The brand earns a revenue premium

brand awareness pyramid

Top of mind, brand recall, brand recognition, unaware of brand.

functional needs

products that attempt to fulfill the consumer's consumption-related problems

symbolic needs

directed at customers' desire for self-enhancement, role position, group membership, and belongingness

experiential needs

(sensory pleasures, personal experience) products that provide sensory pleasure, variety, and/or cognitive stimulation

Brand-Related Personality Dimensions

sincerity, excitement, competence, sophistication, ruggedness

Three General Ways Brand Equity is Enhanced

Allow brand to speak for itself

Create message-driven associations

Leveraging current meanings or associations

co-branding

a partnership between two brands

return on marketing investment (ROMI)

the effect of marcom, or of its specific elements such as advertising, can be gauged in terms of whether it generates a reasonable revenue return on the marcom investment

product adoption

the introduction and acceptance of new ideas, including new brands

adoption process

- awareness class

- trier class

- repeater class

relative advantage

the degree to which a consumer perceives that a new product provides superior benefits

complexity

An innovation's degree of perceived difficulty

Observability

the degree to which the results of an innovation are visible to others

Trialability

the extent to which an innovation can be tried on a limited basis before it is adopted

logo

a graphic design related to a brand name

Brand Naming Process

1. Specify objectives for the brand name

2. Create candidate brand names

3. Evaluate candidate names

4. Choose a brand name

5. Register a trademark

Good Logo Designs

Are natural—neither too simple nor too complex

Are readily recognized

Convey same meaning to all target market members

Evoke positive feelings

Are suited for periodic updating

Patents

exclusive rights to make or sell inventions

copyrights

the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit

trademarks

Designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products

green marketing

responding to environmental and sustainability concerns by introducing environmentally-oriented products and undertaking marcom programs to promote them

green washing

bogus environmental marketing claims

Industry Responses to Environmental Problems

Green Advertising

Packaging Responses

Seal-of-Approval Programs

Cause-Oriented Programs

Point-of-Purchase

corrective advertising

a firm that misleads consumers should have to use future advertisements to rectify any deceptive impressions it has created in consumers' minds

Fostering Ethical Marketing Communications

The Golden Rule

The Professional Ethics

The TV Test

Market Segmentation

identify bases to segment the market

Market Targeting

develop measures of segment attractiveness, select the target segments

market positioning

develop positioning for target segments, develop a marketing mix for each segment

Behavior Segmentation

describes how people behave with respect to a particular product category or class of related products

Psychographics

describes aspects of consumers' psychological make-ups and lifestyles as they relate to buying behavior in a particular product category

Attitudes, Values, Motivations

VALS Psychographic Segmentation

innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors

Geodemographics

consumers who reside within geographic clusters such as zip codes or neighborhoods and also share demographic and lifestyle similarities

five criteria for effective segmentation

Measurable

Substantial

Accessible

Differentiable

Actionable

target market selection strategies

1. undifferentiated marketing

2. differentiated marketing

3. concentrated marketing

Encoding

the process of putting thought into symbolic form

Decoding

the process of transforming message symbols back into thought

Semiotics

the study of meaning and meaning producing events

meaning

our internal responses (thoughts, feelings) when presented with a sign, stimulus or object

sign

represents something to someone in a given context

Socialization

process by which people learn cultural values, form beliefs, and become familiar with "physical cues" representing these values and beliefs

signal

the product is a cause or effect of something else

Symbol

the product and object have no prior relationship, yet are now associated with one another

Allegory

equates objects in a narrative with meanings lying outside narrative

Consumer Processing Model (CPM)

behavior is seen as rational, highly cognitive, systematic, and reasoned

Hedonic, Experiential Model (HEM)

Consumer behavior is driven by

emotions in pursuit of "fun,

fantasies, and feelings"

Attention types

Involuntary attention

Non-voluntary attention

Voluntary attention

No attention

concretization

by providing concrete (vs. abstract) examples, new information is better learned and accessed

dual coding theory

pictures are represented in memory in verbal as well as visual form, whereas words are less likely to have visual representations

attitude

a general positive or negative feeling toward some person, object, or issue

3 components of an attitude

Cognitive and learned

Affective and enduring

Conative

Hierarchy of Effects Model

awareness, knowledge, liking, preference, conviction, purchase

Persuasion

the essence of marketing communications

Schemer-schema

the idea that people form rather strong and stable intuitive theories about marketers' efforts to influence their actions

6 tools of persuasion

reciprocation, commitment and consistency, social proof, liking, authority, scarcity

3 strategies marketers can use to attempt to change consumer beliefs

Change beliefs

Alter outcome evaluations

Introduce a new outcome into the evaluation process

All marketing communications should be:

1. directed to a particular TARGET MARKET

2. clearly POSITIONED

3. created to achieve a SPECIFIC OBJECTIVE

4. undertaken to accomplish the objective within BUDGET CONSTRAINT

Marcom Objectives

general outcomes that the various marcom elements try to achieve individually or collectively

Hierarchy of effects metaphor

implies that for marketing communications to be successful it must move consumers from one goal to the next goal

Setting Good Marcom (Advertising) Objectives

Include a precise statement of who, what, and when

Be quantitative and measurable

Specify the amount of change

Be realistic

Be internally consistent

Be clear and put it in writing

Marcom Budgeting

establishing a budget is one of the most important marcom decisions

Practical Budgeting Methods

Percent-of-Sales Budgeting

Objective-and-Task Method

Competitive Parity Method (match competitors' method)

Affordability Method

percent of sales method

Company sets a brand's advertising budget by simply establishing the budget as a fixed percentage of past or anticipated sales volume

objective and task method

an IMC budgeting method that determines the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives, choosing media, and determining costs

competitive parity method

setting the promotion budget to match competitors' outlays

affordability method

a firm spends on advertising only those funds that remain after budgeting for everything else