Exam 3 Study Guide - Kimberly Grantham PDF

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MARK 3000: Exam 3 Study Guide Integrated Communication: promotion dimension of the 4Ps; encompasses a variety of communication disciplines (general advertising, personal selling…) in combination to provide clarity, consistency and maximum communication impact; 3 elements (1) consumer, (2) channel through which message is communication, (3) evaluation of the results AIDA Model: common model of the series of mental stages through which consumers move as a result of marketing communication 1. Awareness: not educate us yet; “we’ll recognize the brand” (Ex: The Dark Knight 2007, Bing and Jay Z 2017, Evian’s Baby-Me, Subaru-Dog) a. Brand awareness: Ability to recall/recognize a particular brand b. Aided recall: occurs when customers recognize a name of a brand that has been presented to them c. Top-of-mind awareness: a prominent place in people’s memories that triggers a response without having to put any thought into it; high  evoked set, by (1) memorable names, (2) repeatedly exposure through advertisement, (3) locations/sponsorships, (4) memorable symbols d. Senders first must gain the attention; a multichannel approach increases the likelihood the message will be received 2. Interest: “want to know more”; “peak our curiosity” a. After awareness comes persuasion; The customer must want to further investigate the product/service 3. Desire: “when I am looking in the market, this is what I want” (Ex: Kyle Jenner and Rihanna different approach to cosmetic market) 4. Action: purchase/coupon/ “join”… The Lagged Effect: a delayed response to a marketing communication campaign -Advertising does not always have an immediate impact; multiple disclosures are often necessary; It is difficult to determine which exposure led to purchase Elements of an Integrated Marketing Communication Strategy:

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-Advertising: Most visible element of IMC; paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some actions, now or in the future; *extremely effective at creating awareness and generating interest -Traditional vs Technology (using real-time data to tailor as on consumer): high trend of using facial recognition technology (Ex: The Minority Report) -Public Relation (PR): generally from 3rd party; 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 relationship with the media -“Free media attention”; Importance of PR has grown as cost of other media has increased; Consumers becoming more skeptical about marketing; PR become important -“Five fall drinks that are no Pumpkin Spice Latte”-we as consumers weight more at third party compare to Starbucks -Sales Promotions: special incentives excitement “extra reasons to buy” (Coupon speeds up purchases) -Can be aimed at both end user consumers or channel members -Used in conjunction with other forms of IMC -Can be used for both short- and long-term objects -Sales Promotion Trap: erode quality “I’m going because of having discount” as opposed to “I love the brand” -Personal Selling: The most expensive -Some products require the help of a salesperson; More expensive than other forms of promotion; Salesperson can add significant value, which makes the expense worth it (Hiring/training  huge investment  high expected return) -Direct Marketing: sales/promotional techniques that deliver promotional materials individually; attempt to personalize/tailor target market; Today’s trend toward ethnic minority due to their growing buying power -Growing element of IMC -Includes e-mail and m-commerce; Good for multicultural groups -Database technology improves -Online Marketing: Websites, Blogs, Social Media -Ex: Volvo’s Interception during Super Bow Ads

Planning for and Measuring IMC Success: -Understand the outcome they hope; Short-term or long-term; Should be explicitly defined and measured -Setting and Allocating the IMC Budget: -Objective-and-Task Method: “bottom up”; 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; (a) establish objectives-create awareness of new product among target market  (b) determine 2

specific tasks-advertise on chosen IMC  (c) estimate costs associated with tasks (determine costs advertising…) -Rule-of-thumb Methods: 1. Competitive Parity: The communication budget is set so that the firm’s share of communication expresses equals its share of the market a. Limitations: Doesn’t allow firms to exploit the unique opportunities or problems they confront in a market. If all marketers use same method  their market shares stay the same overtime b. “If am small shop and not able to spend a lot of $ on advertising how much communication on per market share?” 2. Percentage-of-sale: Communication budget is a fixed percentage of forecasted sales a. Limitations: assumes the same % used in the past or by competitors, is still appropriate for the firm. Does not take into account new plans b. “Inverse logic”: increase communication when revenue increases 3. Available Budget: marketers forecast sales/expenses, excluding communication, during budgeting period. Difference between the forecast sales and expenses plus desired profit is reserved for communication budget  the money available after operating costs/profits have been budgeted “LEFT OVER” -Measuring Success using Marketing Metrics: (a) Traditional Media: measuring how often customers have been exposed to various marketing communication -Frequency of exposure: how often consumers are exposed to a communication within a specified period of time -Reach: measure of consumer’s exposure to marketing communications; % of the target population exposed to a specific marketing communication, such as advertisement -Gross rating points = Reach x Frequency (b) Web-based Media: -Web tracking software: access how much time viewers spend on particular webpages and the number of pages they view -Planning, Implementing, and Evaluating IMC Programs: -Social shopping: using the Internet to communicate about product preferences with other shoppers -Search engine marketing (EMC): type of web advertising whereby companies pay for keywords that are used to catch consumers’ attention while browsing a search engine -Impressions: number of times an advertisement appears in front of the user -Click-through-rate (CTR): number of times a user clicks on an online ad divided by the number of impressions -Relevance: context of search engine (SEM), a metric used to determine how useful an advertisement is to the consumer -Return on Investment (ROI) = [(Gross Margin -Marketing Expenditure) / (Marketing Expenditure) ] x 100 3

Advertising, Public Relations and Sales Promotion 1. Identify Target Audience: Based on intended target market, very crucial in understanding the market; Ex: targeting Bicultural Hispanics by Coca Cola a. Conduct research b. Use the information to set the tone c. Select the media 2. Set Advertising Objectives  “who is target audience?” -Advertising plan: outline the objective of the advertising campaign, how the company might accomplish those objectives, and how the firm can determine whether the campaign was successful; “yard stick” -Pull strategy: goal is to get consumers to “pull” the product through marketing channel by demanding it (primarily advertising and consumer sales) (1) Manufacturer promotes to consumer  (2) Consumer demands product from retailer  (3) Retailer demands product from wholesaler  (4) Wholesaler demands product form manufacturer -Push strategy: increase demand by motivating sellers to highlight the product and “push” product onto consumers; this strategy requires professional sales representation; * channel members (primarily personal selling and trade sales promotion) (1) Manufacturer promotes to wholesaler “up to speed”  (2) Wholesaler promotes to retailer  (3) retailer promotes to consumer  (4) consumer buys from retailer -Public relations is used for consumers and trade -Informative Advertising: create/build brand awareness with the ultimate goal of moving the consumer through the buying cycle to a purchase; Inform customers about upcoming sales events or arrival of new merchandise; early life cycle of product -Persuasive Advertising: motivate consumers to take action; generally occurs in the growth and early maturity stages of the PLC when competition is most intense; accelerating market acceptance; may be used to reposition an established brand in the later stage of the PLC -Reminder Advertising: remind customers of a product or to prompt repurchases (esp. products have gained market acceptance) Ex: Kroger -Focus of Advertisement: -Institutional Advertisements: issues related to places, politics, or an industry -Public service advertising (PSA): focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups; form of social marketing – Under Federal Communication Commission rules, broadcasters must devote a specific amount of free airtime to PSAs -Social marketing: application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or specific population insights -Product-focused: product specific 3. Determining the Advertising Budget: with the following considerations

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a. Rule that advertising plays in their attempt to meet their overall promotional objectives b. Expenditures vary over the course of the Product Life Cycle c. Nature of the market and the product influence the size of the budget 4. Convey the Message: The Message and The Appeal a. The Message: provides target audience with reasons to respond in the desired way i. Unique Selling Proposition (USP): differentiating a product by communicating its unique attributes, often business becomes the common theme or slogan in the entire campaign b. The Appeal: i. Informational appeals: help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage them to evaluate to brand favorably on the basis of key benefits it provides (Ex: Domino Pizza) ii. Emotional appeals: aims to satisfy consumers’ emotional desires rather than their utilitarianism needs; most campaign we contact are appealing to emotion iii. Ex: fear/safety, humor, happiness, love/sex, comfort, nostalgia 5. Evaluate and Select Media a. Media planning: process of evaluating, selecting the media mix that will deliver a consistent, compelling message to the intended audience b. Media mix: combination of media used and frequency of advertising in each media c. Media buy: actual purchase of airtime or print pages -Selecting media depends on (1) nature of product and (2) target market company identified -Mass media: channels that are ideal for reaching large numbers of anonymous audience members; include national newspaper, magazines, radio and television -Niche media: channels that are focused and generally used to reach narrow segments, often with unique demographic characteristics or interests Ex: AT&T’s “Between 2 Words” utilizing niche marketing based on language, cultural elements to target bicultural Hispanics -Choosing the right medium: television, radio, magazines, newspapers, internet, outdoors, direct marketing Ex: Viral Marketing Campaign letting consumers do the lifting -Determining the Advertising Schedule: specification of the time and duration for advertising -Continuous Schedule: runs steadily throughout the year and therefore is suited t products and services that are consumed continually at a relatively steady rates and that requires a steady level of persuasive or reminder advertising (ex: basic household commodities…) -Fighting: implemented in spurts, with heavy periods of heavy advertising followed by periods of no advertising (ex: movie trailers) 5

-Pulsing: combination of continuous and fighting by maintaining a base level of advertising but increasing advertising intensity during certain periods (ex: college town business) 6. Create Advertisements: “fun aspect of advertising” -Headline: large type designed to draw attention -Subhead: additional smaller headline in an ad that provides a great deal of info through the use of short and simple words -Body copy: main text portion of ad -Brand elements: characteristics that identify the sponsor of a specific ad -The type of medium determines the execution style -Creativity plays a major role in the execution state -Creativity should no overshadow the message -The execution style must match the medium and objectives 7. Assess Impact Using Marketing Metrics: measure the effectiveness -Protesting: assessment 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: monitoring key indicators (weekly/monthly sales volume) while the advertisement is running to shed light on any problems with the message or the medium -Post-testing: the evaluation of an IMC campaign’s impact after it has been implemented -Lift: additional sales caused by advertising Regulatory and Ethical Issues in Advertising: -Federal Trade Commission (FTC) 1914: enforces federal consumer protection laws; jurisdiction: enforces truth in advertising laws defines deceptive and unfair advertising practices -Federal Trade Commission (FCC) 1934: regulates interstate and international communications by radio, television, wire satellite, and cable; jurisdiction: enforces restrictions on broadcasting material that promotes lotteries (with some exceptions); cigarettes, little cigars, tobacco products or that perpetuates a fraud. Also enforces laws that prohibit or limit obscene, indecent, or profane language -Food and Drug Administration (FDA) 1930: regulates food, dietary supplements, drugs, cosmetics, medical devices (including radiation emitting devices such as cell phones), biologic (biological issues), and blood products; jurisdiction: regulates package labeling and issuances, definitions such as “light,” “organic” and required disclosure statements (warning labels, dosage requirements) Puffery: legal exaggeration of praise, stopping just short of deception, lavished on a product; legal way of promoting a product/service through hyperbole or oversized statements “legitimate exaggerations” -False statement occurs when factually false statements are used to promote a product/service

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Public Relation: 3rd party give a “stamp of approval” or endorsement on that company’s products or services -Publications: brochures, special-purpose single issue publications such as books  informs various constituencies about the activities of the organization and highlight specific areas of expertise -Video and audio: programs, public service announcements  highlight the organization or support cause-related marketing efforts -Annual reports  give required financial performance data and inform investors and others about the unique activities of the organization -Media relations, press kits, news releases, speeches, event sponsorships  generate news coverage of the organization’s activities or products/services -Electronic media: websites, e-mail campaigns  websites can contain all the previously mentioned toolbox elements, while e-mail directs PR efforts to specific target groups -“Kate Effect:” princess wearing certain attires -“Oprah Effect:” can turn businesses into lucrative businesses -Cause-related marketing: commercial activity in which businesses and charities form a partnership to market an image/product/service for their mutual benefits -Event sponsorship: corporations support various activities Sales Promotion: “special incentives” ; can be targeted at either the end user consumer or channel members; can be used in either push or pull strategies  to speed up the purchase process -Types of promotion: coupons, deals, premiums, contests, sweep takes (offer price based on drawing), samples, loyalty programs, POP displays, rebates, product placement Product placement: inclusions of a product in non-traditional situations such as in a movie or TV program -Cross-promoting: efforts of 2 or more firms joining together to reach a specific target market -Evaluated sales promotions using marketing metrics: Realized Margin Cost of Additional Inventory Potential increase in sales Long-term impact Potential loss from switches from more profitable items Additional sales by customers -Loss leaders: strategically place the item at the ack of the store so the consumers will intend to get that loss leader but walk past other merchandise  intention to purchase another item as well

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The Scope and Nature of Personal Selling -The most expensive form of communication is personal selling -Personal selling: two-way flow of communication between a buyer and a seller that is designed to influence the buyer’s purchase decision through: internet, telephone, face-to-face, teleconference platforms -Professional selling as a career: people love the lifestyle; there is a lot of flexibility; there is a lot of variety in the job; can be very lucrative; very visible to management and good for promotions -Values added: (1) educating customers and providing advices; (2) saving customer time; (3) making things easier; (3) building long-term strategic relationships with customers [relationship selling: 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 The Personal Selling Process: 1. Generate and Qualify Leads: making sure that the company is making a concerted efforts to talk to the right person with in potential clients and always following up on potential leads to assert that they are communicating and moving forward in the process and directing their efforts to the right individual -Leads: a list of potential customers -Qualify: process of assessing the potential of sales leads -Sources of leads: -Inbound marketing: marketing activities that draw attention of customers through blogs, Twitter and other online sources, rather than using more traditional activities that require having to go out to get customer’s 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 (Consumer Electronics Show in Las Vegas) -Cold calls: method of prospecting in which salespeople telephone or go to see potential customers without appointments -Telemarketing: method of prospecting in which salespeople telephone potential customers 2. Pre-approach and the Use of CRM Systems: making sure we know as much as possible, being able to answer basic questions about previous suppliers and price points a. Pre-approach: occurs prior to meeting the customer for the first time and extends the qualification of leads procedures; in this step, the salesperson conducts additional research and develops plans for meeting with the customers b. Role playing: good technique for practicing the sales presentation prior to meeting with a customer; the salesperson acts out a simulated buying simulation while a colleague or managers acts as the buyers 3. Sales Presentation and Overcoming Reservations a. Presentation b. Handling reservations and objections

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4. Closing the Sale: obtain a commitment from the customer to make a purchase -KEY: salesperson must be good at picking signals from customers regarding the sales -Getting order; often most stressful part of sales process -A “no” one day may be the foundation a “yes” another 5. Follow-up: Prime opportunity for a salesperson to solidify customer relationship through great service quality a. Reliability b. Responsiveness c. Assurance d. Empathy e. Tangibles Managing the Sales Force: -Sales management: involves the planning, direction, and control of personal selling activities, including recruiting...