MKTG 330 CSULB Moisio Exam 1

Objectives of MARCOM Programs

Informing, Persuading, Inducing Action

Informing

Telling customers about their products, services, and terms of sale

Persuading

convincing customers to choose certain products and brands, shop in particular stores, go to certain websites, attend certain events, and other specific behaviors

Inducing Action

getting customers to make a purchase or action that is far more immediate than delayed in nature

Marketing Communications

represents the collection of all elements in an organization's marketing mix that facilitate exchange by establishing shared meaning with its customers

-Intentional and unintentional

Promotional Mix

the combination of promotional tools—including advertising, public relations, personal selling, sales promotion, direct marketing, and social media—used to reach the target market and fulfill the organization's overall goals

Integrated Marketing Communications (IMC)

the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer, speaking with one single voice.

earned media

a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services. (Social media, word-of-mouth, buzz)

paid media

a category of promotional tactic based on the traditional advertising model, whereby a brand pays for media space(paid search promotion, display ads)

owned media

a new category of promotional tactic based on brands becoming publishers of their own content in order to maximize the brands' value to customers(website, app)

Reasons for integration

Using multiple communication tools in conjunction with one another can lead to greater results than when used individually and uncoordinated.

Synergistic effect in IMC

TV and Online advertisements used together produce more attention, positive thoughts, and higher credibility than the sum of each used individually.

5 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

1) Start with a Customer or Prospect

-Consumers crave control. Evidenced by consumer generated content. Personalization is important.

-Reduced dependence on mass media, Contact customers using touch points that reach them when, where, and how they wish to be contacted.

2. Use any form of relevant contact

-Touch points: ANY message medium capable of reaching target customers and presenting the brand favorably.

-360 degree branding: touch points need to surround your target audience.

3) Speak with a Single Voice

Coordination of messages and media is absolutely critical to achieving a strong, unified image and moving customers to action. Use positioning statement.

positioning statement

a statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)

4. Build relationships rather than engage in flings

Creating a relationship is an enduring link between the brand and customer that leads to repeat business and brand loyalty

Leaky bucket

in effect, firms are putting customers into a leaky bucket, and instead of preventing them from leaking away through the bottom of the bucket, the firm keeps topping up the bucket with new customers.

-Much cheaper to retain customers than earn new ones.

experiential marketing programs

-special events or exciting branded venues

-can create brand experiences that make positive, relevant, and lasting impressions on customers

5. Affect Behavior

Marketing communications ultimately must do more than just influence brand awareness or attitudes.

-Must encourage some form of behavioral response.

Brand

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

trade dress

the appearance and image of the product, including its packaging, labeling, shape, color, sounds, design, lettering, and style (think MGM Lion's roar or red/white coca cola lettering)

brand equity

the added value a brand name gives to a product beyond the functional benefits provided based on the good will it has established over its existence

Firm Based Brand Equity

focuses on outcomes extending from the efforts made by a company to enhance a brand's value to its stakeholders

Positive consequences of brand equity

-achieving a higher market share

-increasing brand loyalty

-being able to charge premium prices

-earning a revenue premium

Elasticity vs brand equity

elasticity of demand becomes less as brand equity increases. Meaning consumers will pay prices even as they escalate to obtain certain brand

Revenue Premium

the revenue differential between a branded item and a corresponding private-labeled store brand item

Brand Asset Valuator (BAV)

4 pillars of brand equity that measure:

-differentiation

-relevance

-esteem

-knowledge

BAV Differentiation

degree to which the brand is seen as different from others

BAV Relevance

degree to which customer identifies or associates with brand

BAV Esteem

degree to which brand us held in high regard and respected

BAV Knowledge

degree to which consumers are familiar with or aware of brand

BAV power grid

graph showing strength, stature, and brand development.

customer-based brand equity

the differential effect that brand knowledge has on consumer response to the marketing of that brand

Dimensions of brand knowledge

Brand awareness and Brand Image

brand awareness

how quickly or easily a given brand name comes to mind when a product category is mentioned

Brand recognition vs recall

recognition- superficial, could recognize if shown parts of product.

recall- deeper level, can retrieve brand fully from memory upon mention of product category

brand image

the associations that are activated in memory when people think about a particular brand

brand image is conceptualized how?

favorability, strength of association, uniqueness of association

Types of Brand Associations

-Attributes: products or services provided

-Benefits: perks of being with a certain brand

-Overall evaluation: attitude associated with brand

Brand Awareness Pyramid

-Unaware of Brand

-Brand Recognition

-Brand Recall

-Top of Mind Awareness

TOMA

top of mind awareness, pinnacle of brand awareness, when your brand is first to come to mind upon mention of a certain category

Brand-Related Personality Dimensions

1. Sincerity

2. Excitement

3. Competence

4. Sophistication

5. Ruggedness

Sincerity

down to earth, honest, wholesome, cheerful(disney)

Excitement

daring, spirited, imaginative, up to date(iPhone releases)

competence

reliable, intelligent, successful (toyota)

sophistication

upscale, charming, luxury (rolex, cartier)

ruggedness

tough, outdoorsy (REI, Range Rover)

Strategies to enhance brand equity

-Speak for itself approach

-message driven approach

-leveraging approach

Speak-for-itself Approach

let the product sell itself

message driven approach

repeated claims about the benefits and features a brand possesses.

-should be creative, attention getting, and believable, appealing to a customers needs

leveraging associations with other brands

-cobranding

-ingredient branding

-brand extensions

Cobranding

when established brands from different companies join forces to market the same product

ingredient branding

a type of branding in which branded materials become "component parts" of other branded products

brand extension

the use of the same brand name for new products being introduced to the same or new markets

leveraging associations from people

aligning with celebrity endorsers

leveraging associations with other things

associating with events (world cup) or causes (sponsoring refugees)

leveraging associations from places

The channel through which a brand is distributed or a country's image. (exclusive nordstrom line, german auto)

Awareness Class

new, unfamiliar consumers, reached through:

Free samples and coupons

Trade shows and personal selling

Advertising

Social Media

Distribution

Trier Class

The group of consumers who actually try a new product; the second step in which an individual becomes a new brand consumer

-reached through coupons, distribution, introductory low prices

Repeater Class

A function of five primary forces:

-personal selling

-advertising and social media

-price

-distribution

-product satisfaction

Characteristics that facilitate adoption of a new product or brand

1. Relative advantage

2. Compatibility

3. Complexity

4. Trialability

5. Observability

relative advantage

the degree to which a product is perceived as superior to existing substitutes

compatibility

the degree to which the innovation fits the values and experiences of potential consumers

complexity

the degree to which consumers find a new product or its use difficult to understand

-high complexity means slower adoption rate

Trialability

the degree to which a product can be tried on a limited basis before full commitment

Observability

the degree to which the benefits or other results of using the product can be observed by user or others and communicated to target customers

Effects of a Brand Name

1. affects the speed of brand awareness

2. influences overall brand image

3. plays major role in brand equity formation

Requirements for a good brand name

1. Distinguish from competitive offerings

2. Facilitate consumer learning of brand associations

3. Achieve compatibility with desired brand image and its product design or packaging

4. Memorable and easy to pronounce

Facilitate consumer learning of brand associations

1. Brand name suggestiveness: implies particular product attributes

2. Made up brand names(made from morphemes) convey key attributes through sounded words.

3. Sound symbolism(phonemes): front vowels convey lightness, thinness, back vowels=heaviness, ruggedness

Empty Vessel Philosophy

A new brand name is made up, so there are no prior associations, allowing the brand to create its own identity.

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 qualities

1. recognized readily

2. convey essentially the same meaning to all target members.

3. evoke positive feelings

(need to be updated periodically to be attuned to the times)

intellectual property

a work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc.

Patents

licenses that give an inventor the exclusive right to make, use, or sell an invention for a set period of time(20 years)

Utility Patent

a property right awarded for a new and non-obvious process, machine, or composition of matter that has a useful function

Design Patent

a patent that may be obtained for the ornamental nonfunctional design of an item

Plant Patent

A unique patent right granted to inventors of new forms of plants.

Copyright

An exclusive right granted by the federal government allowing the owner to reproduce and sell an artistic or published work.

trademarks

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

green marketing

refers to marketing efforts to produce more environmentally responsible products and services

Greenwashing

A practice in which companies promote their products as environmentally friendly when in truth the brand provides little ecological benefit.

green marketing initiatives

-green advertising

-reduced packaging responses

-seal of approval programs

-cause related and event marketing

-point of purchase programs(less displays)

-direct marketing efforts(less flyers)

-outdoor advertising responses(green billboards)

Green Advertising

-ads addressing a relationship between a product and the biophysical environment

-those promoting a green lifestyle w/o promoting a product or service

-ads preventing a corporate image of environmental resposibility

FTC guidelines for green marketing

1. qualifications and disclosures should be sufficiently clear and prominent to prevent deception

2. claims should make clear whether they refer to the product, package, or parts of both

3. claims should not overstate an environmental attribute or benefit, expressly or implied

4. comparative claims should be presented in a manner that makes the basis for comparison clear

Benefits of regulations of marketing communication

-consumer choice among alternatives is improved when customers are informed.

-product quality tends to improve

-reduced prices from reduction in sellers "informational market power"

Costs of regulations of marketing communication

-companies incur "cost of complying"

-taxpayers and government incur "cost of enforcing"

-unintended side effects cost both buyers and sellers

definition of deceptive advertising

1. misleading- express or implied statement contrary to fact, or omission.

2. reasonable consumer- if it misleads the reasonable, well person

3. material- meaning the claim is likely to influence a customers decision regarding a product

covert marketing

consists of marketing messages and promotional materials that appear to come from independent parties when, in fact, they are sent by marketers. Masked marketing, buzz building, infomercials

unfair advertising

acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoidable by consumers themselves, and not outweighed by the countervailing benefits to consumers or competition

FTC fairness doctrine

1. advertising substantiation

2. unfairness involving children and other vulnerable populations(who cannot protect themselves reasonably)

3. trade regulation rules

Advertising Substantiation

A Federal Trade Commission regulatory program that requires advertisers to have documentation to support the claims made in their advertisements.

trade regulation rules

administrative rulings by the Federal Trade Commission or other agencies that hold certain entire practices to be illegal or create standards that must be met by sellers of certain products or services

corrective advertising

A firm that misleads consumers should

have to use future advertisements to

rectify any deceptive impressions it has

created in consumers' minds

Advertising Clearance Process

the internal process of clearing ads for publication and broadcast, conducted primarily by ad agencies and clients. Self regulated

Ethics of targeting

issue is whether or not consumer vulnerabilities are exploited

Criticisms of Advertising

-Advertising is untruthful and deceptive

-Advertising is manipulative

-Advertising is offensive and in bad taste

-Advertising creates and perpetuates stereotypes

-Advertising persuades people to buy things they do not really need

-Advertising plays on people's fears and insecurities