MARK 3000 Grantham Exam 3

AIDA Model

A common model of the series of mental stages through which consumers move as a result of marketing communications: Awareness leads to Interests, which lead to Desire, which leads to Action.

brand awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

aided recall

An awareness metric that occurs when consumers recognize a name (e.g., of a brand) that has been presented to them.

top-of-mind awareness

a prominent place in people's memories that triggers a response without them having to put any thought into it

lagged effect

a delayed response to a marketing communication campaign

advertising

a paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver to take some action now or in the future

Public Relations (PR)

the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media

sales promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.

personal selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision.

direct marketing

sales and promotional techniques that communicate directly with target customers to generate a response or transaction

mobile marketing

marketing through wireless handheld devices such as smartphones or tablets

blog (weblog)

An online diary with periodic posts; corporate blogs are a new form of marketing communications.

social media

the online and mobile technologies that distribute content to facilitate interpersonal interactions, with the assistance of various firms that offer platforms, services, and tools to help consumers and firms build their connections

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

Rule-of-Thumb methods

budgeting methods that base the IMC budget on either the firm's share of the market in relation to competition, a fixed percentage of forecasted sales, or what is left after other operating costs and forecasted sales have been budgeted

frequency

measure of how often the audience is exposed to a communication within a specified period of time

reach

Measure of consumers' exposure to marketing communications; the percentage of the target population exposed to a specific marketing communication, such as an advertisement, at least once.

gross rating points (GRP)

measure used for various media advertising - print, radio, or television; GRP = reach x frequency

web tracking software

Software used to assess how much time viewers spend on particular web pages and the number of pages they view.

social shopping

using the internet to communicate about product preferences with other shoppers

search engine marketing (SEM)

an activity used in online searches to increase the visibility of a firm by using paid searches to appear higher up in search results

impressions

the number of times an advertisement appears in front of the user

click-through rate (CTR)

the number of times a user clicks on an online ad divided by the number of impressions

Relevance

in the context of search engine marketing (SEM), it is a metric used to determine how useful an advertisement is to the consumer

return on marketing investment (ROMI)

The amount of profit divided by the value of the investment. In the case of an advertisement, the ROI is (the sales revenue generated by the ad - the ad's cost) / the ad's cost

Steps in Planning and Executing an Ad Campaign

1. Identify target audience

2. Set advertising objectives

3. Determine the advertising budget

4. Convey the message

5. Evaluate and select media

6. Create advertisements

7. Assess impact

advertising plan

a subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful

pull strategy

a strategy in which the goal is to get consumers to pull the product through the marketing channel by demanding it

push strategy

A strategy designed to increase demand by motivating sellers—wholesalers, distributors, or salespeople—to highlight the product, rather than the products of competitors, and thereby push the product onto consumers.

informative advertising

communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase

persuasive advertising

communication used to motivate consumers to take action

reminder advertising

communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle

product-focused advertisements

Advertisements used to inform, persuade, or remind consumers about a specific product or service.

institutional advertisement

A type of advertising that promotes a company, corporation, business, institution, or organization. Unlike product-focused advertisements, it is not intended to sell a particular product or service.

public service advertising (PSA)

Advertising that focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing.

social marketing

the content distributed through online and mobile technologies to facilitate interpersonal interactions

unique selling proposition (USP)

a strategy of differentiating a product by communicating its unique attributes; often becomes the common theme or slogan in the entire advertising campaign

informational appeal

used in a promotion to help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage them to evaluate the brand favorably on the basis of the key benefits it provides

emotional appeal

an appeal that aims to satisfy consumers' emotional desires rather than their utilitarian needs

media planning

the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience

media mix

the combination of the media used and the frequency of advertising in each medium

media buy

the actual purchase of airtime or print pages

mass media

channels that are ideal for reaching large numbers of anonymous audience members; include national newspapers, magazines, radio, and television

niche media

channels that are focused and generally used to reach narrow segments, often with unique demographic characteristics or interests

advertising schedule

the specification of the timing and duration of advertising

continuous advertising schedule

An advertising schedule that runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive or reminder advertising.

flighting advertising schedule

an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising

pulsing advertising schedule

An advertising schedule that combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods.

headline

in an advertisement, large type designed to draw attention

subhead

an additional smaller headline in an ad that provides a great deal of information through the use of short and simple words

body copy

the main text portion of an ad

brand elements

characteristics that identify the sponsor of a specific ad

pretesting

assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do

tracking

assessments that monitor key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium

posttesting

the evaluation of an IMC campaign's impact after it has been implemented

lift

additional sales caused by advertising

puffery

the legal exaggeration of praise, stopping just short of deception, lavished on a product

cause-related marketing

commercial activity in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit; a type of promotional campaign

event sponsorship

Popular PR tool; occurs when corporations support various activities (financially or otherwise), usually in the cultural or sports and entertainment sectors.

coupon

Provides a stated discount to consumers on the final selling price of a specific item; the retailer handles the discount.

deal

A type of short-term price reduction that can take several forms, such as a "featured price," a price lower than the regular price; a "buy one, get one free" offer; or a certain percentage "more free" offer contained in larger packaging; can involve a special financing arrangement, such as reduced percentage interest rates or extended repayment terms.

premium

an item offered for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing

contest

a brand-sponsored competition that requires some form of skill or effort

sweepstakes

A form of sales promotion that offers prizes based on a chance drawing of entrants' names.

sampling

offers potential customers the opportunity to try a product or service before they make a buying decision

loyalty program

specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time

point-of-purchase (POP) display

a merchandise display located at the point of purchase, such as at the checkout counter in a grocery store

rebate

A consumer discount in which a portion of the purchase price is returned to the buyer in cash; the manufacturer, not the retailer, issues the refund.

product placement

inclusion of a product in nontraditional situations, such as in a scene in a movie or television program

Personal selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision.

relationship selling

a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties

leads

a list of potential customers

qualify

the process of assessing the potential of sales leads

Personal Selling Process

1. Generate and qualify leads

2. Preapproach

3. Sales presentation and overcoming reservations

4. Closing the sale

5. Follow-up

Inbound Marketing

Marketing activities that draw the attention of customers through blogs, Twitter, LinkedIn, and other online sources, rather than using more traditional activities that require having to go out to get customers' attention, such as making a sales call.

trade shows

major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry

cold calls

a method of prospecting in which salespeople telephone or go to see potential customers without appointments

telemarketing

a method of prospecting in which salespeople telephone potential customers

preapproach

in the personal selling process, occurs prior to meeting the customer for the first time and extends the qualification of leads procedure; in this step, the salesperson conducts additional research and develops plans for meeting with the customer

role playing

a good technique for practicing the sales presentation prior to meeting with a customer; the salesperson acts out a simulated buying situation while a colleague or manager acts as the buyer

closing the sale

obtaining a commitment from the customer to make a purchase

service

any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer

customer service

specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants

core differences between services and goods

inseparable, heterogeneous, perishable, intangible

Intangible

a characteristic of a service; it cannot be touched, tasted, or seen like a pure product can

Inseparable

A characteristic of a service: it is produced and consumed at the same time; that is, service and consumption are inseparable.

heterogeneity

as it refers to the differences between the marketing of products and services, the delivery of services is more variable

perishable

a characteristic of a service: it cannot be stored for use in the future

The Seven P's for Developing a Service Strategy

1. Product

2. Price

3. Place

4. Promotion

5. Presentation

6. Personnel

7. Processes

Service Gap

results when a service fails to meet the expectations that customers have about how it should be delivered

Service Gaps Model

A managerial tool designed to encourage the systematic examination of all aspects of the service delivery process and prescribes the steps needed to develop an optimal service strategy.

4 Service Gaps

1. knowledge gap

2. standards gap

3. delivery gap

4. communication gap

knowledge gap

a type of service gap; reflects the difference between customers' expectations and the firm's perception of those expectations

standards gap

a type of service gap; pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets

Delivery gap

a type of service gap; the difference between the firm's service standards and the actual service it provides to customers

communication gap

a type of service gap; refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises

Service Quality

customers' perceptions of how well a service meets or exceeds their expectations

Dimensions of Service Quality

reliability, tangibles, responsiveness, assurance, empathy

Voice-of-Customer (VOC) Program

an ongoing marketing research system that collects customer inputs and integrates them into managerial decisions

Zone of Tolerance

The area between customers' expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what he or she will accept before going elsewhere.