mark CH15 & 16

mark

communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response

promotion

a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media

promotional strategy

The promotion plan becomes an integral part of the marketing strategy for reaching the target market

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one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors

competitive advantage

The main function of a marketer’s promotional strategy is to convince target customers that the goods and services offer provide a competitive advantage over the competition

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Promotional strategy is closely related to the process of communication

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the process by which we exchange or share meaning through a common set of symbols

communication

Communication can be divided into two major categories:

interpersonal communication and mass communication

direct, face-to-face communication between two or more people

interpersonal communication

Marketers are both senders and receivers of messages. In this way, most marketing communication is a two-way, rather than one-way, process. The two-way nature of the communication process

true

marketers attempt to inform, persuade, and remind the target market to take actions compatible with the need to promote the purchase of goods and services

senders

marketers listen to the target market in order to develop the appropriate messages, adapt existing messages, and spot new communication opportunities

receivers

read: People communicate with one another for many reasons. They seek amusement, ask for help, give assistance or instructions, provide information, and express ideas and thoughts. Promotion, on the other hand, seeks to modify behavior and thoughts in some way

true

Promotion can perform one or more of four tasks:

inform, persuade, remind, connect

seeks to convert an existing need into a want, or to stimulate interest in a new product. It is generally more prevalent during the early stages of the product life cycle. especially important for complex products

informative promotion

Persuasion typically becomes the main promotion goal when the product enters the growth stage of its life cycle. By the growth stage, the target market should have general product awareness and some knowledge of how the product can fulfill its wants. Therefore, the promotional task switches from informing consumers about the product category to persuading them to buy the company’s brand rather than that of the competitor

true

is used to keep the product and brand name in the public’s mind. This type of promotion prevails during the maturity stage of the life cycle

Reminder promotion

Most promotional strategies use several ingredients—which may include advertising, public relations, sales promotion, personal selling, and social media—to reach a target market. That combination is called the

promotional mix

read: The proper promotional mix is the one that management believes will meet the needs of the target market and fulfill the organization’s overall goals. Data and data analytics play a very important role in how marketers distribute funding among their promotional mix tactics

true

impersonal, one-way mass communication about a product or organization that is paid for by a marketer

advertising

the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance

public relations

read: Marketers use public relations not only to maintain a positive image, but also to educate the public about the company’s goals and objectives, introduce new products, support the sales effort, and increasingly to respond to customer-generated communications

true

public information about a company, product, service, or issue appearing in the mass media as a news item. SHOULD NOT BE VIEWED AS FREE

publicity

marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness. include free samples, contests, premiums, trade shows, vacation giveaways, and coupons

sales promotion

In many instances, more marketing money is spent on sales promotion than on advertising

true

a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other. usually persuades buyer of a win-lose situation

personal selling

creates a win win outcome. more common nowadays

relationship selling

read: The Internet and digital communications have changed how businesses promote their brands. Traditionally, marketing managers have been in charge of defining the essence of the brand. This included complete brand control and mostly one-way communication between the brand and customers. All of the content and messages were focused on defining and communicating the brand value. The focus for many campaigns was pure entertainment, and the brand created all of the content for promotional campaigns—from the website to television spots to print ads. That approach has now changed. The consumer has much more control (which makes some brands quite nervous!), as the communication space and the brand message are increasingly controlled by the consumer. Perception is reality, as consumers have more control to adapt the brand message to fit their ideas. Instead of repetition, social media rely on the idea of customization and adaption of the message. Information is positioned as more valuable rather than being strictly entertaining

true

a category of promotional tactic based on the traditional advertising model, whereby a brand pays for media space

paid media

digital media types:

owned, paid, earned media

a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services

earned 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

owned media

read: The elements of the promotional mix differ in their ability to affect the target audience. For instance, promotional mix elements may communicate with the consumer directly or indirectly. The message flow may be one-way or two-way. Feedback may be fast or slow, a little or a lot. Likewise, the communicator may have varying degrees of control over message delivery, content, and flexibility

true

a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. stages the consumer goes through when involved with a promotional message

AIDA

what does AIDA stand for?

attention, interest, desire, action

AIDA model makes consumers think in what kind of sequence?

thinking, feeling, doing

read: although advertising does have an impact in the later stages, it is most useful in gaining attention for goods or services while personal selling is more effective for desire and action

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Ideally, marketing communications from each promotional mix element (personal selling, advertising, sales promotion, social media, and public relations) should be integrated

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read: From the consumer’s standpoint, a company’s communications are already integrated. Consumers do not think in terms of the five elements of promotion: personal selling, advertising, sales promotion, public relations, and social media. Instead, everything is an “ad.” The only people who recognize the distinctions among these communications elements are the marketers themselves. Unfortunately, too many marketers overlook this when planning promotional messages, and they fail to integrate their communication efforts across all elements of the promotional mix. The most common lack of integration is between personal selling and the other elements of the promotional mix

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the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every point at which a company has contact with the consumer

integrated market communications (IMC)

read: Marketers have also slashed their advertising spending to focus on promotional techniques that generate immediate sales responses and are more easily measured, such as direct marketing

true

which stage has heavy advertising?

growth stage

read: A target market characterized by widely scattered potential customers, highly informed buyers, and brand-loyal repeat purchasers generally requires a promotional mix with more advertising and sales promotion and less personal selling. Sometimes, however, personal selling is required even when buyers are well informed and geographically dispersed. Although industrial installations may be sold to well-educated people with extensive work experience, salespeople must be present to explain the product and work out the details of the purchase agreement

true

a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise

push strategy

a marketing strategy that stimulates consumer demand to obtain product distribution

pull strategy

Rarely does a company use a pull or a push strategy exclusively. Instead, the promotional mix will emphasize a combination of these strategies

true

promotional spending is divided into:

measured and unmeasured media

read: Measured is based on those kinds of measurement services we all know and love (counting ads in a newspaper, tracking radio spots, etc.) For the most part, it is traditional media. Unmeasured media are all those things that are trickier to gauge (targeted online ads, mobile ads, contextual ads inside podcasts, etc.)

true

a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns. older companies don’t spend as much in advertising compared to newer companies

advertising response function

read: Though advertising cannot change consumers’ deeply rooted values and attitudes, advertising may succeed in transforming a person’s negative attitude toward a product into a positive one. For instance, serious or dramatic advertisements are more effective at changing consumers’ negative attitudes. Humorous ads, on the other hand, have been shown to be more effective at shaping attitudes when consumers already have a positive image of an advertised brand

true

a form of advertising designed to enhance a company’s image rather than promote a particular product

institutional advertising

a form of advertising that touts the benefits of a specific good or service

product advertising

a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks

advocacy advertising

product advertising is used:

pioneering advertising, competitive advertising, or comparative advertising

a form of advertising designed to stimulate primary demand for a new product or product category. usually in introductory stage and informs

pioneering advertising

a form of advertising designed to influence demand for a specific brand. usually in growth stage. focuses on branding

competitive advertising

a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes. usually in decline stage

comparative advertising

a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

advertising campaigning

a specific communication task that a campaign should accomplish for a specified target audience during a specified period

advertising objective

_ is one method of setting objectives

DAGMAR approach

what does DAGMAR stand for?

defining advertising goals for measured advertising results

A well-known rule of thumb in the advertising industry is “Sell the sizzle, not the steak”—that is, in advertising, the goal is to sell the benefits of the product, not its attributes

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a reason for a person to buy a product. have to choose the best appeal for a product through research

advertising appeal

a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign

unique selling proposition

Marketers spend considerable time studying advertising effectiveness and its probable impact on sales, market share, or awareness. Testing ad effectiveness can be done before and/or after the campaign. Before a campaign is released, marketing managers use pretests to determine the best advertising appeal, layout, and media vehicle. After advertisers implement a campaign, they use several monitoring techniques to determine whether the campaign has met its original goals. Even if a campaign has been highly successful, advertisers still typically do a postcampaign analysis to identify how the campaign might have been more efficient and what factors contributed to its success

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the channel used to convey a message to a target market

medium

the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience

media planning

Promotional objectives and the appeal and executional style of the advertising strongly affect the selection of media

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an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand

cooperative advertising

a 30-minute or longer advertisement that looks more like a television talk show than a sales pitch

infomercial

placing advertising messages in web-based, mobile, console, or handheld video games to advertise or promote a product, service, organization, or issue

advergaming

the process of using game mechanics and a gaming mind-set to engage an audience, is increasingly important for marketers to know about and utilize. Challenges, rewards, incentives, and competition are all important aspects in social media games like Fortnite, Angry Birds, Exploding Kittens, Candy Crush Saga, and Clash of Clans

gamification

advertising experienced outside of the home

out of home advertising OOH

mini movies that promote a product and are shown online

advertainment

the combination of media to be used for a promotional campaign

media mix

Media mix decisions are typically based on several factors:

cost per contact, cost per click, reach, frequency, target audience considerations, flexibility of the medium, noise level, and the life span of the medium

the cost of reaching one member of the target market. Naturally, as the size of the audience increases, so does the total cost

cost per contact also called cost per thousand (CPM)

the cost associated with a consumer clicking on a display or banner ad

cost per click

the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks

reach also known as gross rating points (GRP)

as GRP increases..

cost per contact increases

the ability of an advertising medium to reach a precisely defined market

audience selectivity

designation of the media, the specific publications or programs, and the insertion dates of advertising

media schedule

Four basic types of media schedules:

scheduled, flighted, pulsing, and seasoned

a media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle

continuous media schedule

a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times

flighted media schedule

a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods

pulsing media scheduled

a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used

seasonal media schedule

read: continuous schedules are more effective than are flighted ones at driving sales through television advertisements. Research also suggests that it is likely more important to reach a potential customer as close as possible to the time at which a purchase is being considered. Therefore, the advertiser should maintain a continuous schedule over as long a period of time as possible. Often called recency planning, this theory of scheduling is now commonly used for scheduling television advertising for frequently purchased products

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the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance. forward thinking

public relations

an effort to capture media attention, often initiated through press releases that further a corporation’s public relations plans

publicity

a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product, on the Internet, or at special events

product placement

Some major firms believe that educated consumers are more loyal customers

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a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image

sponsorship

ex: hugging a coke machine for coke

experiential marketing

a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event

crisis management

Sales promotion is usually less expensive than advertising and easier to measure

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sales promotion targets 2 markets:

trade and consumer sales promotions

Sales promotion usually has more effect on behavior than on attitudes

true

promotion activities directed to members of the marketing channel, such as wholesalers and retailers

trade sales promotion

promotion activities targeted to the ultimate consumer market

consumer sales promotion