Geiger - Intro to Marketing Exam 2

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The element of the marketing mix that communicates value to consumers

Encompasses all of the company's marketing communications activities

Promotion

Includes all the messages, media, and activities used by an organization to communicate with the market and help persuade target audiences to accept its messages and take action accordingly

Marketing Communication

Effective marketing communication is __________-_______________, and it is aligned with an organization's marketing strategy

goal directed

Encourages marketers to think about communication in a coordinated way
They ask: How can we orchestrate all the different means of reaching a target segment in order to maximize our impact?

IMC (Integrated Market Communication)

Integrated Market Communication (IMC) is now referred to as...

Omnimarketing

Integrated marketing brings creative ideas to life across relevant consumer touchprints driving __________________ by delivering compelling, seamless, and rich experiences at the __________________-_____-__________________

conversion
moment of purchase

What are the 4 Objectives of Integrated Marketing?

Solves a Business Challenge
Builds the Brand
Drives Retailer Engagement
Engages Shoppers

What was an Integrated Marketing example we talked about in class?

Haleon (game over for headaches)

What are the 3 funnels of the marketing funnel?
From top to bottom

Awareness
Evaluation (Consideration)
Purchase

What funnels does integrated marketing work in regards to the marketing funnel?

Evaluation
Purchase

What is at the top of the Marketing Funnel?

Awareness

What is the first step of Developing Promotion / Marketing Campaign Plans?

Identify relevant target audience

Marketing Campaign Elements:
In a successfully operated campaign, all activities will be well-coordinated to build on one another and increase the overall impact
- For example, a single campaign might include:
(Johnson & Johnson with Jennifer Aniston)

Advertising
Sales Promotion
Digital Marketing

Known by advertisers and agencies globally as the pre-eminent award in the industry and recognized any and all forms of marketing that contribute to a brand's success

Effie Awards

Tactics that are designed to achieve short-run sales objectives
Ex: Unit sales, Boost trial, Stimulate brand switching

Push Marketing

Retailer receives an incentive ($) from the manufacturer to order and merchandise more of the brand
Ex: volume discount, displays, promotional cash allowances, in-store demonstrations and sampling, retailer advertising

Trade Promotion (Push Marketing)

Advertising is not...

Push Marketing

Strategies and tactics are targeted directly at end consumers and often have longer-run objectives related to:
Advertising, Increasing brand awareness, Building brand preference, Creating brand image, In-store demonstrations and sampling, Retailer advertising

Pull Marketing

Advertising is...

Pull marketing

Promotion costs...

Money

Which P does not cost money?

Price

People who buy your product most or all of the time

Loyal Customers

People who buy a competitor's product more or all of the time

Competitor's Customers

People who buy a variety of products in the category

Brand Switchers

People who consistently buy the least expensive brand

Price Buyers

A marketing strategy that relies on unconventional, often low-cost tactics to create awareness of and goodwill toward a brand, product, service, or even a company
An edgy marketing approach
Ex. Volkswagen slide

Guerrilla Marketing

What are 2 goals of Guerrilla Marketing?

Get media attention
Make a positive and memorable connection with the target audience

What are the 3 Objectives of Advertising?

Inform
Persuade
Remind

A communication to create and build brand awareness with the ultimate goal of moving consumers through the buying cycle to a purchase

Informative Advertising

A communication used to motivate consumers to take action. Generally occurs in the growth and early maturity stages of the product life cycle (when competition is intense)
May also be used to reposition an established brand by changing existing perceptions

Persuasive Advertising

A communication used to remind or prompt repurchases especially for products that have gained market acceptance and are in the maturity stage of their life cycles

Reminder Advertising

What type of advertising do you use at each stage of the product life cycle?
Early Stage -
Growth Stage -
Mature Stage -

Informative
Persuasive
Reminder

Steps in Planning and Executing an Ad Campaign:
Conduct research to identify target audience then use the insights to:
- Set the tone of advertising
- Select the media to deliver the message

Identify Target Audience (Step 1)

Steps in Planning and Executing an Ad Campaign:
From the overall marketing plan objectives
Clarify the goals the ad is supposed to accomplish
Generally the objective is a pull strategy - to get consumers to pull the product by demanding it

Set Advertising Objectives (Step 2)

Steps in Planning and Executing an Ad Campaign:
Traditional
ZBB
Percentage-of-Sales

Determine the Advertising Budget (Step 3)

Budgeting Examples: Based on prior year budget

Traditional

Budgeting Examples: An approach in which brand-new budgets are always calculated from a zero base, rather than estimating it based on past budgets

ZBB (Zero Based Budgeting)

Budgeting Examples: Advertising budget is a fixed percentage of forecasted sales

Percentage-of-Sales

Steps in Planning and Executing an Ad Campaign:
Decide key message you want to convey
Decide what appeal would most effectively convey the message

Convey the message (Step 4)

Advertising tends to combine the types of appeals into what two categories?

Informational appeals
Emotional appeals

Step 5: Evaluation and Select Media:
More focused (specialty TV channels, specialty magazines, direct marketing)

Niche Media

Step 5: Evaluation and Select Media:
Reaching large audience (TV, outdoor, radio, magazines, social, etc.)

Mass Media

Steps in Planning and Executing an Ad Campaign:
Message and appeal are translated creatively
Considerations: Ad objectives, Target customers, Value proposition

Create Advertisements

Steps in Planning and Executing an Ad Campaign:
Ad testing, Tracking, Persuasion, Sales lift

Assess the Impact

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

PR (Public Relations)

What are 2 other names for Public Relations?

Corporate Communications
Media Relations

Marketing teams work with the ______ team to support the promotional efforts by generating free media attention and general goodwill

PR

Organizations and charities form a partnership to market an image, product, or service for their mutual benefit

Cause Marketing

Corporations support various activities in the cultural or sports and entertainment sectors

Event Sponsorship

Moral principles and values that guide and govern the conduct of individuals and organizations

Ethics

Ethics are paramount to marketing - why?

Trust

Long-term _________________ to customers will drive success, not short-term transactions

connections

Customer relationships depend on...

trust

Brands can lose equity immediately (and significant) if they breach consumer...

trust

American Marketing Association (AMA) Statement of Ethics:
ETHICAL VALUES

Honesty
Responsibility
Equity
Transparency
Citizenship

What are the top 3 ethical issues in marketing?

Selling the product vs. selling a solution
Telling the truth, but not the whole truth (half-truths)
Blatant lying to the marketer's own organization

Study of consumers, can include market research (broader)
Demographics, psychographics, beliefs, attitudes, behaviors, etc.

Marketing Research

What is the real value of Marketing Research?

Intelligence gathering

Marketing Research: The _________ that are mined from the raw data
The 'aha' moment

insights

Marketing Research results are used to _________________ problems and opportunities, ________________ marketing plans, validate the _____________ ________, monitor ____________________, and ___________ management decisions

pinpoint
formulate
marketing mix
performance
guide

The process of collecting information about consumers

Marketing Research

Marketing Research
_____________ --> ________________ --> _______________ _______________ --> _________________ ________________

Research
Insights
Strategic Direction
Superior Marketing

Insights aren't the ultimate goal..

Strategic direction and superior marketing are

Who did superior marketing research that lead to Take the Wheel?

Mercedes-Benz

Market Research:
Original and collected directly by the marketer
2 Main types - Qualitative and Quantitative

Primary

Primary Research:
Typically used for preliminary, exploratory purposes
Usually a small number of respondents
Designed to provide information depth rather than breadth
Findings have no statistical significants - can't be generalized to the whole population
Participants selected via nonprobability sampling

Qualitative

Primary Research:

These are examples of what?

Focus group (8-12 people) led by a moderator

Social Listening

One-on-one interviews - unstructured/loosely structured

Designed to elicit underlying motivations and attitudes

Qualitative

Qualitative Example:
A systematic process for tracking what is being said about a given topic in forums such as Facebook, Snapchat, Twitter, TikTok, LinkedIn, blogs, and even mainstream media

Social Listening

Superior site for marketers to find data related to social listening

Brandwatch

Primary Research:
Used to draw statistically significant conclusions
Can be generalized from the sample to the general population of interest
Involve large numbers of participants (200+)
Participants selected via probability sampling

Quantitative

Primary Research:
These are examples of what?
Surveys or questionnaires administered by mail, phone, email, web, or in-person (intercepts)
Experiments (impact of a change in one factor on another)
Several analytical techniques are available

Quantitative

The ______ is revolutionizing information gathering

IoT (Internet of Things)

Market Research:
Exists in the market
Collected from internal and external sources

Secondary

Market research ethical responsibilities related to the respondents - 3 things

Preserving anonymity
Avoiding mental stress
Ensuring safety

Market research ethical responsibilities related to the clients - 3 things

Confidentiality
Technical integrity
Administrative integrity

What are the 3 types of Marketing Information that marketers use to gain insights that will contribute to wise marketing choices?

Internal data
Competitive intelligence
Marketing research

What is the first step in the Marketing Research Process?

Define objectives and research needs

Secondary Research Advantages

Less Expensive
Less time consuming

Secondary Research Disadvantages

May be outdated
May not address exact problem or question

The percentage of respondents who are aware of your product, brand, or advertising when the brand is named

Aided Awareness

The percentage of respondents who are aware of your product, brand, or advertising top-of-mind without being assisted

Unaided Awareness

What are 2 key questions a marketer needs to answer related to Buyer Behavior?

How do potential buyers go about making purchase decisions?
What factors influence their decision process and in what way?

The elements of and influences on the search for, selection, purchase, use, evaluation, and disposition of the things consumers buy

Consumer Behavior

Helps companies imagine, design, and develop products/services that meet consumer needs and wants

Consumer Behavior

Consumer Behavior =

The psychology of marketing

What does the consumer decision making process begin with?

Need Recognition

What are the 5 Steps in the Consumer Decision Making Process?

Need Recognition
Information Search
Identification and Evaluation of Alternatives
Purchase Decision
Post-purchase Evaluation and Behavior

Marketers get involved in the Need Recognition State at 3 points:
1. Knowing what ______________ consumers are facing, so they can develop marketing mix to address these problems
2. Activating problem recognition, in order to trigger the start of the ____________________ process
3. Shaping how consumers define the need or problem, in order to _______________ their wants as they look for a solution

problems
purchasing
influence

Consumer Decision Making Process:
WIFM, Consumer Benefits

Need Recognition

Consumer Decision Making Process:
Involves many decisions: product type, brand, model, dealer selection, method of payment
Consumers reduce their risk by reducing: negative consequences, uncertainty

Purchase Decision

What 4 factors influence consumer decisions in the Purchasing Decision Stage?

Situational
Personal
Psychological
Social

Explains how shoppers actually BUY over time and what are the most relevant drivers of their purchasing behavior (Uses market data)
Actual behavior, sub-conscious drivers, consistency in behavior, household-level, robust sample, utilizes purchase data

Market Structure

Captures what consumers THINK is important and say what influences their purchase choice on a shopping occasion (What a consumer's claimed behavior is at a point in time)

Consumer Decision Tree

Decisions are more straightforward, require little risk, are repetitive, and often lead to a habit. In effect, these purchases are not very important to the consumer

Low-involvement Decisions

Decisions are those that are important to the buyer. They involve some risks to the consumer.

High-involvement Decisions

Two Systems of Thinking:
Fast Processing
Intuitive
Emotional
Non-logical
Automatic
Present-focused
Seeks efficiency (low effort)

System 1

Two Systems of Thinking:
Slow Processing
Deliberate
Logical
Controlled
Future-focused
Seeks accuracy (high effort)

System 2

Behavioral Science:
Influencing quantity of purchases
Changing the value perception of a display

Application to Retail

Small, seemingly irrelevant details that make a task more challenging or effortful can make the difference between doing something and putting it off - sometimes indefinitely (aka: easiness, hassle factors, effort)
Ex: Daisy Sour Cream - squeeze tube to eliminate use of utensils and move to side door to avoid being pushed to the back
Ex: Amazon's 'Buy Now'

Friction Cost (Behavioral Science)

The process of communicating marketing messages that encourage desired-behavior by appealing to the psychology of the individual
The process of designing choices in ways that will appeal to the decision-maker, so the whole process of making the decision is easier

Nudge Marketing