Marketing Quiz 16, 18, and 19
Chapter 16
Advertising, Public Relations, and Sales Promotion
Advertising is a popular form of promotion, especially for consumer-
packaged goods and services via either measured or unmeasured media
spendings.
− The United States ($422B), China ($231B), Japan, the United Kingdom ($58B), and
Japan ($56B) spend the most on advertising in 2024 estimates.
Advertising and marketing services, agencies, and other firms that provide
marketing and communications services employ millions of people across
America.
− In 2024, $389 billion US dollars is projected to spend on advertising in the US alone,
77% of that going to digital channels.
− For this election cycle, about $619 million was spent on political ads, at least $248
million focused on the presidential race.
The Effects of Advertising
Advertising and Market Share
• Advertising budgets for most successful consumer brands in the United States are
spent on maintaining brand awareness and market share.
• New brands with a small market share tend to spend proportionately more of their
promotion budget for advertising and sales promotion than those with a large market
share, generally for two reasons:
− Advertising response function - a phenomenon in which spending for advertising and sales promotion increases sales promotion increases sales or market share up to a certain level but then produces diminishing returns
− Sense of familiarity - a certain minimum level of exposure is needed to measurably affect purchase habits.
The Effects of Advertising on Consumer
• Advertising may:
− Affect peoples’ daily lives, informing them about products and services and
influencing their attitudes, beliefs, and ultimately their purchases
− Succeed in transforming a person’s negative attitude toward a product into a
positive one
− Reinforce positive attitudes toward brands, which leads to loyal customers and
higher market share
− Affect the way consumers rank a brand’s attributes
Creative Decisions in Advertising
- Advertising campaign - A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
- Before creative work can begin on an advertising campaign, it is important to determine what goals or objectives the advertising should achieve.
- Advertising objective - a specific communication task that a campaign accomplish for a specified target audience during a specified period
- Once objective are defined, creative work can begin on the advertising campaign
Major Types of Advertising: Institutional Ads
- Institutional advertising - A form of advertising designed to enhance a company's image as a whole rather than promote a particular product
a. Institutional advertising is also important for hiring and recruitment
b. It usually does not ask the audience to do anything but maintain a favorable attitude toward the advertiser and its goods or services
A form of institutional advertising is:
- Advocacy advertising - a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks
11/20/2024
Continuation of 16
Major Types of Advertising: Product Ads
- Product advertising - A form of advertising that touts the benefits of a specific good or service
a. The product's stage in its life cycle often determines which type of product advertising is used, pioneering, competitive, or comparative advertising.
- Pioneering advertising - A form of advertising designed to stimulate primary demand for a new product or product category.
a. Heavily used during the introductory stage of the product life cycle to inform and create interest among consumers
b. Offers consumers in-depth information about the benefits of the product class.
- Competitive advertising - a form of advertising designed to influence demand for a specific brand
a. In the growth phase, promotion often focuses on less on being informative and appeals more to emotions
b. Advertisers focus on:
Showing subtle differences between competitive brands
Building recall of brand name
Creating favorable attitudes toward the brand
- Comparative advertising - a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes
a. Some advertisers use comparative advertising with their own brands
b. Products experiencing slow growth or those entering the marketplace against strong competitors are more likely to employ comparative claims in their advertising.
How Ads transmit meaning
• Advertising transfers a desired meaning to the brand by placing the brand within a carefully constructed social world represented in an ad, or “slice of life.”
− Advertisers take meaning that exists in the culture and massage it, shape it, and try to transfer it onto their brands.
• Anthropologist Grant McCracken refers to this as the movement of meaning.
− Marketers paint a picture of the ideal social world with all the meanings they want to impart to their brand.
− The brand is carefully placed in that picture, and the two (the constructed social world and the brand) rub off on each other, becoming a part of each other.
− Meaning is thus transferred from the ad’s constructed social world to the brand.
Public Relations
• Public relations –
• A vital link in a forward-thinking company’s marketing communication mix
− Marketing managers plan solid public relations campaigns that fit into overall
marketing plans and focus on target audiences.
− Strives to maintain a positive image of the company in the eyes of the public
• The concept of earned media is based on public relations and publicity.
• Publicity
Chapter 18
11/22/2024
What Are Social Media?
• Social media
− Web 2.0: Distinguishes the progression of the Internet to interactive online communication, participation, and engagement
• The increasing use of social media has changed the way marketers can communicate messages with their brands—from mass messages to intimate conversations.
• As marketing moves into social media, marketers must remember that for most people, social media are meant to be a social experience, not a marketing experience.
Social Media Usage
• 239 million Americans used social media (70.1% of the total US population).
−90% of 18-29 age group uses social media.
−Females (71%) use social media more than males (62%).
• Facebook is the most used platform in the US, followed by YouTube and Instagram.
• Significant numbers of people use social media to consume news.
− 78% of people ages 18-29
− 64% of people ages 30-49
− 45% of people ages 50-64
− 28% of people ages 65+
What Are Social Media?
• Social media offer a form of relationship building that brings customers and brands closer.
Indeed, the culture of participation that social media fosters may well prove to be a fifth “P” for marketing.
• At the most basic level, consumers of social media want to exchange information, collaborate with others, and have conversations.
• Companies are beginning to understand the implications of their employees’ activities on social media. Having a social media policy can certainly help mitigate risk, but there is no guarantee that employees will not occasionally slip up.
• Marketers are interested in online communication because it is wildly popular: brands, companies, individuals, and celebrities all promote their messages online.
11/25/2024 - Continuation of Chapter 18
Creating and Leveraging a Social Media Campaign
• Marketers can categorize media types:
− Owned Media delivered through content marketing— such as videos, webinars, recommendations, ratings, and blog posts—help organizations develop deeper relationships with customers.
− Earned Media include viral videos, retweets, comments on blogs, and other forms of customer feedback or online buzz resulting from a social media presence.
− Paid Media include display advertising, paid search words, and other types of direct online advertising.
Creating and Leveraging a Social Media Campaign
• To leverage all three types of media, marketers must follow key guidelines:
− Maximize owned media by reaching out beyond their existing websites to create portfolios of digital touch points.
− Recognize that public and media relations no longer translate into earned media. Instead, marketers must learn how to listen and respond to stakeholders and stimulate word of mouth.
− Understand that paid media must serve as a catalyst to drive customer engagement and expand into emerging channels.
What Are Social Media?
• Social media imply several things for marketers and the ways they interact with their customers:
− Marketers must realize they often do not control the content on social media sites.
− The ability to share experiences quickly and with such large numbers of people amplifies the impact of word of mouth in ways that can affect a company’s bottom line.
− Social media have enabled marketers to listen more effectively.
− Social media provide more sophisticated methods of measuring how marketers meet and interact with consumers than traditional advertising.
− Social media enables marketers to have much more direct and meaningful conversations with customers.
How Consumers Use Social Media
• An area of growth in social media is social commerce.
− Social commerce
• Social commerce relies on user-generated content on a website to assist consumers with purchases.
• By 2026, global social commerce is expected to reach $2.9 trillion.
Social Media and Integrated Marketing Communications
• Many marketing budgets are pendulums that are swinging toward social media.
− Globally, digital marketing spending is forecasted to grow from $523 billion in 2022 to almost $836 billion in 2026.
− Paid search and online video advertising will account for over 50 percent of digital advertising by 2026.
• With social media, the audience is often in control of the message, the medium, the response, or all three.
• Crowdsourcing
• Companies get feedback on marketing campaigns, new product ideas, and other marketing decisions by asking customers to share their thoughts
Social Media as The Listening System
• Developing an effective listening system is necessary to both understanding and engaging an online audience.
• Marketers must not only hear what is being said, they must also pay attention to who is saying what and act on that information.
• Social media monitoring
• Failure to respond to criticism typically leads to a larger crisis.
Chapter 18
Social Media as the Listening System
Developing an effective listening system is necessary to both understanding and engaging an online audience.
Marketers must not only hear what is being said, they must also pay attention to who is saying what and act on that information.
Social Media monitoring- the process of identifying and assessing what is being said about a company, individual, product, or brand.
Failure to respond to criticism typically leads to larger crisis.
How Consumers Use Social Media
An area of growth in social media is social commerce
- Social commerce - a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services.
Social commerce relies on user-generated content on a website to assist consumers with purchases.
By 2026, global social commerce is expected to reach $2.9 trillion.
Social Media and Integrated marketing Communications
Many marketing budgets are pendulums that are swinging toward social media.
- Globally, digital marketing spending is forecasted to grow from 523 billion in 2022 to almost 836 billion in 2026
- Paid search and online video advertising will account for over 50% of digital advertising revenue by 2026
With social media, the audience is often in control of the message, the medium, the response, or all three.
Crowdsourcing - using consumers to develop and market products.
Companies get feedback on marketing campaigns, new products ideas, and other marketing decisions by asking customers to share their thoughts
12/06/2024
Chapter 9
The Importance of Price
Marketers are frequently challenged by the task of price setting because they know that setting the right price can have a significant impact on the firm's bottom line
- Price - that which is given up in exchange to acquire a good or service
a. In the US, that usually means money
b. That may also be time lost while waiting to acquire the good or service
c. It can cause psychological pain
Consumers do not always choose the lowest-priced product category
- Consumers are interested in obtaining a "perceived reasonable value" for the price at the time of the purchase
- We infer quality information from price - higher quality = higher price
Revenue = the price charged to customers x the number of units sold
- It is what pays for every activity of the company: production, finance, sales, distribution, and so on
Profit = revenue - expenses Expenses = Variable cost + Fixed cost
- To earn a profit managers must choose a price that is not too high or too low that equals the perceived value to target consumers
The Demand Determinant of the Price
The famous graph look at the book
Demand - How badly people want something
Supply - The quantity of a product
Pricing Objectives
Profit Orientation
- Return on investment (ROI)- Net profit - taxes divided by total assets
It measures management's overall effectiveness in generating profits with the available assets
Sales Orientation
- Market share - A company's product sales as a percentage of total sales for that industry
Larger market shares = higher profits thanks to greater economies of scale, market power, and ability to compensate employees
States Quo (SQ) - Orientation