Exam 2 2024 (KIM)

Offer

value proposition stating what you will give the customer in return for taking the action your marketing communication asks them to take

Continuity Selling

offers that are continued on a regular basis

Positive Option

customer must specifically request shipment for each offer in a series

Negative Option

shipment is sent automatically unless the customer specifically requests otherwise

Cross selling

new, related or unrelated products are offered to the customer

Up-Selling

promotion of more expensive products/services over product/service originally discussed

Create Urgency

time-limited
quantity-limited

5 Risks of Sales Promotions

Financial Loss
Damaging Brand Prestige
Making Customers deal-prone
Managerial Time & Expenses
Legal/Regulation Issues

Lotteries

require prior purchase, which is illegal in many states

Sweepstakes

only require an entry form submition

4 Basic Human Motivations

Gain
Save
Avoid
Become

Features

what product has

Advantages

what features do

Benefits

why customers buy

Framing Effect

cognitive bias where people react differently to a particular choice depending on whether it is presented as a loss/gain

Loss Aversion

people's tendency to strongly prefer avoiding losses to acquire gains

Anchoring Effect

when people consider a particular value for an unknown quantity before estimating the quantity

SUCCES Model

Simple
Unexpected
Concrete
Credible
Emotional
Stories

Simple

Highlight only most important key points

Unexpected

reframe information to highlight unknown

Concrete

use sensory information to help target audience remember message

Credible

offer a way to help people test ideas for themselves

Emotional

make lasting impression/ spur action with elicit emotions

Stories

instill inspiring/ memorable chain of events in target audience minds

Advantages of Direct Mail

Selectivity/ Personalization
Flexibility
Most suitable for test

Disadvantages of Direct Mail

most expensive medium per prospect reaches

Self Mailer

Any direct piece mailed without an envelop

Classic Format

TEASER COPY on the outside of mailing envelop in order to lead recipient inside to entice but not reveal

R>C/M

Response rate> cost per contact/ profit margin per response

Variable-data Printing (VDP)

form of digital printing in which elements such as text, graphics and images may be changed from one printed piece to the next using information from database

Email Automation

Marketers can set up email once and then as more people continue to meet the trigger, the email will continue to be sent to them

Open Rate

How many people open (or view) a particular email campaign

Click Rate

how many people click on a specific link in an email

Bounce Rate

% of email addresses in subscriber list that didn't receive message because it was returned by a recipient mail server

US TV ad spending in 2023

$61.31

Connected TV ad spending in 2023

$25.09

Average Price for 30-second Super Bowl commercial in 2023

$7 million

Average Price for 30-second commercial on national television

$105,000

Average Price for commercial during NBC's Sunday Night Football

$828,500

5 Purposes of TV Commercials

reach MASS audiences
build brand AWARENESS
develop a unique brand PERSONALITY
gain TRUST & CREDIBILITY
draw DIRECT responses

Product Placement (PPL)

references to specific product/brand are incorporated into another work, like tv show or movie, with specific promotional intent

Product Integration

actual integration of product/brand into the script of the tv show or movie

Linear TV

classic system when a viewer watches a scheduled TV program when it airs on its original channel

OTT: Over the Top

Video content streamed via the internet (no cable or satellite)

CTV: Connected TV

device that connects to or is embedded in a tv to support video content streaming via the internet (smart tv)

SVOD: Subscription Video On-Demand

Streaming video service that provides content on-demand with subscription fees (netflix disney +)

TVOD: Transactional Video On-Demand

users get a select number of days to watch the title before they have to pay to rent it again (iTunes, Google Play)

AVOD: Ad-Supported Video on Demand

Streaming video service that provide users on-demand content but with ads (Roku Samsung TV Plus)

Automatic Content Recognition (ACR)

Uses technology to identify content played on a media device/ file

Traditional Media Buying

Manual
Time consuming/expensive
Predetermined price
Scattered data collected from report
Optimization after campaign
Slow/leaves room for error

Programmatic Media Buying

Automated
Algorithm decides what ads will be shown
Real-time bidding determined price
Transparent real-time reporting to make changes during campaign
Real-time optimization
Automated with low costs and high ROI

3 Paradigms

Paradigm #1: Mobile-FRIENDLY web design
Paradigm #2: Mobile-FIRST web design
Paradigm #3: Mobile-ONLY strategy

Paradigm #1: Mobile-FRIENDLY web design

allows desktop webpages to be viewed in response to the size of the screen or web browser one is viewing with

Paradigm #2: Mobile-FIRST web design

starts sketching and prototyping the smallest screen first and work the way up to larger screens

Paradigm #3: Mobile-ONLY strategy

Mobile Display Ads
SMS Text
Mobile Apps
In-App Messaging
Push Notifications
Geo-fencing
Augmented Reality (AR)
Near Frequency Communication (NFC)

Mobile App Customer Journey Touchpoints

Pre-install
Onboarding
Exploration
Monetization
Retention
Advocacy

App Store Optimization (ASO)

improving app visibility within the app stores & increasing app conversion rates

Geo-Fencing

feature in a software program that uses the global positioning system (GPS) or radio frequency identification (RFID) to define geographical boundaries

Augmented Reality (AR)

Integration of digital information with user's environment in real time

AR vs. VR

AR surrounding environment is "real" with added virtual objects, but VR surrounding environment is completely virtual and computer generated

Quick Response (QR) Code

Two-dimensional barcodes that can be read by scanners on smartphones

Near frequency communication (NFC)

set of communication protocols that enable devices to establish communication by bringing them within a few centimeters of each other

Mobile Analytics

Popularity
Commitment
Frequency
Time Spent

Use of font types and color

can change human perception of objects

Unique strength of Direct Mailing

Creative offers and messages

CAN SPAM Act

consent before receiving test messages

-Identification

-Opt Out

-Return Address