J4200 Exam 3 - ... PDF

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J4200 Exam 3 Study Guide * 12,13,18 most questions from (34 out of 50) * Chapter 12 : Media Planning Essentials ● CPM (Cost Per Thousand) - Common measure of media efficiency, the dollar cost of reaching 1000 members of an audience using a particular medium - Calculation can be used to compare relative efficiency of two media choices within media class/classes

● Above-the-line-promotion - Traditional measured media (media that are closely measured to determine advertising costs and effectiveness) advertising, any message broadcast to the public through conventional means such as tv, radio, internet, magazines ● Below-the-line-promotion (unmeasured media=media less formally measured for advertising costs and effectiveness compared to measured media : direct mail, catalogs, special events) - Promotional effort that includes in-store promotions, coupons, dealer discounts, and product placement ● Media plan - Specifies the media in which advertising messages will be placed to reach the desired target audience

Last Name 2 + includes strategy, objectives, media choices, and a media schedule for placing a message ● Media vehicle - Particular option for placement within a media class (ex: newsweek) ● Media Mix - Blend for different media that will be used to effectively reach the target audience ● Media class - Broad category of media, such as television, radio or newspapers ● Micro-target - Refers to the practice of delivering customized messages down to individual level ● Geo-targeting - Placement of ads in geographic regions where higher purchase tendencies for a brand are evident ● Gross impressions - Represents the sum of exposures to the entire media placement in a media + two types of exposure : potential ad impressions (opportunities to be exposed to ads), message impressions (exposures to the ads themselves) ● Message weight - Total mass of advertising delivered - The gross # of advertising messages or exposure opportunities delivered by the vehicles in a schedule + provide a simple indication of the size of the advertising effort being placed against a specific market + typically expressed in terms of gross impressions

Last Name 3 ● Between-vehicle duplication - Seeing the same ad in different mediums ● Within-vehicle duplication - Seeing the same ad more than once ● Frequency - Average # of times an individual or household within a target audience is exposed to a media vehicle in a given period of time ● Reach - Refers to the number of people or households in a target audience that will be exposed to a media vehicle or schedule at least one time during a given period of time - Expressed as a percentage ● 3 Strategic scheduling alternatives: - 1. Continuous scheduling: a pattern of placing ads at a steady rate over a period of time (running one ad each day for four weeks during a show) - 2. Flighting: achieved by scheduling heavy advertising for a period of time, then stopping advertising altogether for a period, only to come back with another heavy schedule + often used to support special seasonal merchandising efforts or a new product introductions or as a response to competitors’ activities. - 3. Pulsing: combines elements from continuous/flighting techniques, ads scheduled continuously in media over period of time but with periods of heavier scheduling + most appropriate for products that are sold fairly regularly all year long but have seasonal requirements, ex: clothing ● Continuity and the forgetting

Last Name 4 - People’s forgetting is fairly predictable; we know at about what interval things fade from people’s memory ● Paid media - Print advertising, partnerships, television, banners, radio, sponsorships ● Owned media - Websites, SEO, email, social network pages, digital properties ● Earned media - reviews, responses, advocacy, content, partnerships, charities, celebrities ● Good Media - Connecting the right person, with the right message at the right time to produce a result ● Traditional Funnel Model - Awareness -> familiarity -> consideration -> purchase -> loyalty ● McKinsey Loyalty Model - consumer considers an initial set of brands -> consumers add or subtract brands as they evaluate -> selects brand at moment of purchase -> after purchasing product or service, consumer builds expectations based on experience to inform the next decision journey ● Modern Complex Consumer Journey - extends over time, moves across devices, can be social, evolves as needs change

* Chapter 13 : Media Planning: Newspapers, Magazines, TV, and Radio ● Advantages and Disadvantages of Newspapers, Magazines, Television and Radio 1. Newspapers

Last Name 5 ● Advantages - Geographic selectivity : reach a geographically well-defined target audience - Timeliness : takes short time to produce newspaper ad, newspaper allows advertisers to reach audiences in a timely way, ads can take advantage of events or a unique occurrence in a community - Creative opportunities : Newspapers have large/inexpensive format → advertisers can provide a lot of information to the target audience at a relatively low cost. - Credibility : ”if it’s in the paper it must be the truth” - Audience interest and demographics : Newspapers reach a higher percentage of highly educated and affluent consumers. Many readers buy a newspaper specifically to see what’s on sale at stores in the local area. - Cost : offer a low-cost alternative to advertisers ● Disadvantages - Limited segmentation : don’t allow for the isolation of specific targets - Creative constraints : unidimensional- don’t allow for sound/action, have poor reproduction quality - Cluttered environment - Short life : read quickly then discarded ● Categories of newspaper advertising: - Display advertising : advertisers of goods/service rely on this most, includes standard components of a print ad to set it off from the news content of paper + Co-op advertising : manufacturer pays part of the media bill when a local merchant features the manufacturer’s brand in advertising. Can be done at a national scale as well.

Last Name 6 - Inserts : Folded into newspaper + Preprinted : ad delivered to newspaper, ready for insertion + Free-standing : cents-off coupons for variety of products, typically delivered with Sunday newspapers. On a separate large-format page, often printed on higher quality paper. - Classified : newspaper advertising that appears as all-copy messages under categories such as sporting goods, employment, and automobiles ● Future of newspaper advertising: - Hyper-localism : people will get their global/national news from the web but turn to local newspapers for sale on paint at local hardware store. 2. Magazines ● Advantages - Audience selectivity : ability to target highly selective audience - Audience interest - Creative opportunities : ability to vary the size of an ad, use of color, use of white space, and play off the special interests of the audience - Long Life : magazines are saved issue to issue by subscriber + Pass-along readership : as people visit the subscribers home and look at magazines ● Disadvantages - Limited reach and frequency : More narrowly defined the interest group, the less overall reach a magazine will have - Clutter : Same ad in multiple magazines - Long lead times : Advertisers need to submit ads 90 days in advance of the date for publication - Cost

Last Name 7 3. Television ● Types - Network, Cable, Local television, Satellite, Web/tablet/smartphone tv - Syndicated + Either original programming or programming that first appeared on network TV that is then rebroadcast on either network or cable stations with pending distribution on the Internet + Provide advertisers with proven programming that typically attracted a well-defined audience + Off-network : tv programs that were previously run in network prime time + First-run : refers to programs developed specifically for sale to individual stations + Barter syndication : takes both off-network and first-run syndication shows / offers them free or at a reduced rate to local TV stations ● Advantages - Creative opportunities : sight/sound message - Coverage, reach, and repetition : coverage reaches more than 98% of all households - Cost per contact : offers cost-effective way to reach millions of members of a target audience - Audience selectivity + Narrowcasting : development and delivery of specialized programming to well-defined audiences ● Disadvantages - Fleeting message : gone in an instant - High absolute cost : average cost is high - Poor geographic selectivity : program transmission cannot target small geographic areas as well - Poor audience attitude/attentiveness

Last Name 8 - Clutter : “consistently bombarded with too much advertising” 4. Radio ● Categories - radio networks, radio syndication, AM vs FM, satellite radio, internet/mobile radio ● Advantages - Cost : most cost-effective medium - Reach/frequency : Widest exposure of any medium, opportunity to repeat messages at low cost/cost per contact - Target audience selectivity : narrow transmission of local radio stations gives advertisers the best opportunity to reach well-defined geographic audiences - Flexibility/timeliness : most flexible medium because of short closing periods for submitting an ad - Creative opportunities : “theater of the mind” ● Disadvantages - Poor audience attentiveness - Creative limitations : audio-only nature of radio comm is a creative compromise - Fragmented audiences : large number of stations that try to attract the same audience in a market has created fragmentation. Means the percentage of listeners tuned to any one station is likely very small - Chaotic buying procedures : advertiser had to buy time in individual markets on a station-bystation basis

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* Chapter 14 : Media Planning: Advertising and IBP in Digital, Social, and Mobile Media ● Digital Advertising - There is no such thing as digital marketing. There is marketing – most of which happens to be digital ● Breaking it down - Paid Group (banner ads), audience (prospects, strangers), measure (impressions, clicks, share of voice), strength (reach, awareness), weakness (disruptive, expensive) - Owned Group (sites, content), audience (customers), measure (bounce rate, time on site, KPI), strength (controlled, valued), weakness (long timeline, consistent, investment) - Earned Group (comments, posts), audience (advocates, sceptics), measure (shares, likes, sentiment), strength (trusted, free), weakness (uncontrollable, down funnel) ● Breaking it Together - Paid + Earned + Owned = Multi-Channel Marketing (MCM) ● The Buying Reality - sees an ad, does a search, goes to the site, explores content, reads reviews, makes purchase, shares experience - measurement, optimization, customization and prediction ● The Future - continued decline of untargeted disruptive push advertising, heavy data pull-in to predict consumer needs, more government and societal scrutiny ● Virtual identity - How the consumer or brand uses images and text online to construct or showcase identity

Last Name 10 ● Bounce rate - Visualizers tells Optima that there is always a risk that just because consumers click on the ad and come to the Optima site, many of them could quickly leave within seconds - percentage of people who come from or go to another site after clicking on your site ● Site stickiness - How long someone spends on a site ● Pay-per-click - Advertising revenue model where the advertiser is charged by the number of people who click on, or tap, the ad to pull it up for more information or to see the ad in entirety ● Pop-under ads - Internet advertisement that appears as a website page is loading or after a page has loaded ● Pop-up ads - Advertising that appears at the point of purchase ● Paid search - Process by which advertisers pay websites/portals to place ads in or near relevant search results based on keywords. Valued by firms as they try to improve the efficiency of the internet as an IBP tool ● Search engine optimization - Process whereby the volume and quality of traffic to a website from search engines are improved based on surfers’ profiles + the higher a site is presented in search results, the more likely surfers are to visit that site

Last Name 11 ● Digital footprint (advantage) - Trail of social media posts, videos, photos, status updates, and online information on a person, organization or brand ● Click-through (advantage) - Measure of the number of page elements that have actually been requested

* Chapter 15 : Sales Promotion, Point-of-Purchase Advertising, and Support Media ● Objectives for Consumer-Market Sales Promotion - stimulate trial purchase, stimulate repeat purchase, stimulate larger purchases, introduce a new brand, combat or disrupt competitors, contribute to IBP ● Coupons : Most widely used form of consumer sales promotion - Advantages: Discount to price sensitive consumer/full price to others, induce brand switching, timing and distribution can be controlled, stimulates repeat purchases, gets regular users to trade up within a brand array - Disadvantages: Can’t control time of redemption, current customers redeem coupons, costly, fraud ● Price-off Deals - A sale - Advantages: Controllable by manufacturer, creates positive price comparison - Disadvantage: Retailers believe it creates inventory/price problems ● Rebates - Money back offer requiring buyer to mail a request for money back from the manufacturer

Last Name 12 - Offer tied to multiple purchases ● Premiums - Items offered for free or at a reduced price with another purchase + Free premiums provide item at no cost + Self-liquidating premiums require consumers to pay most of the cost of the item - Advertising specialties: free, useful item containing a brand message ● Contests/Sweepstakes - Contests: consumers compete based on skill or ability - Sweepstakes: winners picked by chance - Both create excitement and interest ● Samples and Trial offers - Types of sampling: + in-store, newspaper, door-to-door, on-package, mail, mobile (on site) - Trial offers: + used for more expensive items, consumer tries product for a fixed time ● Frequency Programs - Also known as continuity or loyalty programs - Offers customers discounts or free products for repeat patronage - Common in airline, hotel and restaurant businesses ● Risks of Sales Promotion - create a price orientation, borrow from future sales, alienate loyal customers, time and expense, legal considerations

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* Chapter 16 : Event Sponsorship, Product Placements, and Branded Entertainment ● Product placement - The practice of placing any branded product into the content and execution of an established entertainment vehicle. - Can add greatest value when they are integrated with other elements of an advertising plan - One should avoid isolated product placement opportunities but rather create connections to other elements of the advertising plan ● Branded entertainment - Entails the development and support of any entertainment property where a primary objective is to feature a firm’s brand/brands to impress/connect with consumers in unique way

* Chapter 18 : Public Relations ● Advertising is PR - Advertising = Paid media - PR = Earned media ● Defining PR - PR : is about managing a company’s reputation by managing relationships between a company and its constituents - Constitutions include : people the company has a vested interest in, people with a vested interest in the company - Key to successfully managing relationships is Good Communication

Last Name 14 + clearly, often, honestly (most powerful element of communication is truth) ● Relationships PR manages - 1. Customers : Why manage this relationship? + to retain them as customers, to make them ambassadors of your company - 2. Shareholders/Taxpayers : Why manage this relationship? + to retain them as shareholders/financial supporters, build their confidence in your company - 3. Employees : Why manage this relationship? + to make them good ambassador of your company, to avoid them being poor ambassadors - 4. Media : Why manage this relationship? + to make them your friend and not your foe, to harness their power to communicate with the masses - 5. Public : Why manage this relationship? + to keep door open for future relationship with them, to influence the opinions they may share with others about your company - 6. Government officials : Why manage this relationship? + to convey your viewpoint on issues they can influence ● Recognizing PR limits - The role of PR is to communicate - Good PR cannot solve or eliminate problems on its own - It is part of a company’s larger efforts to serve its various constituents ● Types of PR approaches - Proactive (offensive) + Do PR audit to learn positive and newsworthy things about the company

Last Name 15 + put together PR plan with objectives and activities to meet those goals including situation analysis (summarizes audit), program objectives (set short-term/long-term goals), program rationale (role PR will play), communication vehicles (tools to use in meeting goals), message content (what you will say and not say), evaluation (how results will be measure) - Reactive (defensive) + Negative situations created by company or someone else require reactive PR efforts + Key to success is preparing ahead of time by use information gathered in PR audit, assess vulnerabilities, craft crisis management plans (gets basics in place to quickly adapt for different situations) ● Objectives of PR - promoting good will, promoting a product or service, preparing internal communications, counteracting negative publicity, lobbying, giving advice and counsel ● Communication Vehicles Used in PR - Press releases : brief article sent to media to pitch news story - Feature stories : pitch idea to media and invite them to do news story - Company newsletters : highlights positive news to various audiences - Press conferences and media interviews : used for major announcements (less frequent) - Social media - Publicity : good and bad, sometimes controlled but sometimes not - Sponsored events ● Media Relations - Advertising of media telling your story + it’s free… unlike advertising you have to pay for

Last Name 16 + public often views it as more credible than ads - How to get media to tell your story + feed them newsworthy stories, know what interests your reporters and editors, cultivate strong relationships with the reporters you work with the most ● Case Study : Tylenol (Good) - The situation : evil person put cyanide into Tylenol capsules, seven died, reacted quickly, took it about themselves and were proactive - The response : public warned immediately, nationwide recall of ALL Tylenol - End result : Tylenol survives and thrives – 37% to 7% to 35% market shares ● Case Study : Toyota (Bad) - The situation : following recall for gas pedal problems in several vehicle models, brake problems in Prius model surface, was known for quality and reliability - The response : Toyota issued recall of Prius vehicles… but took 6 days to do it, also ran ‘commitment ad’ - End result : short-term black eye during crisis period, in 2012 Toyota sales numb sales numbers made it world’s best-selling car company ● Case Study : BP (Ugly) - The situation : oil rig explosion leads to major oil spill in Gulf of Mexico, impacting environment, fishing industry and tourism - The response : finger pointing and blame, an apology ad, sounds bite from CEO that make a PR person bang head against wall - End result : two years later BP was still struggling to recover financially, brand image remains less than favorable...