Enumarate the content of marketing plan and the processes the company should use of moving its customer from awareness of it’s product up to purchase to satisfaction
Chapter 1: An Introduction to Integrated Marketing Communications
This that change the way companies develop their marketing programs: O Rapid growth of the internet
O Global markets
O Economic uncertainties O Changing lifestyles
O Media consumption habits
The Role of Marketing
Exchange- a central concept in marketing and the use of the basic marketing activities to create and sutain relationships with customers.
OTherethemcustomer’sbetwoperceptofmore parities with something of value to anot
Value- ion of all the benefits of a product or service weighed against all the costs of acquiring and consuming it
Benefits can be function (the performance of the product), experimental (what it feels like to use the product) and/or psychological (feelings such as self-esteem)
IntegratedmarketingMargactivitiesCommunicationsthatcommunicate with a firm’s customers
IMC- involves coordinating the various promotional elements and other
Ongoing strategic business process rather than just a tactical integration of various commutation activates
Recognized that customers, prospects, suppliers, investors, interests groups and the general public are important parts
Internal audiences such as employees
The Promotional Mix: The Tools for IMC
Includes four elements:
advertising, sales, promotion, publicity/public relations, and personal selling
advertising, sales, promotion, publicity/public relations, and personal selling
Advertising: defined as any paid form of nonpersonal communication about an organization, product, service or idea by an identified sponsor.
O The paid aspect of this definition reflects the fact that space or time for an advertising message generally must be bought
O PSA advertising space or time is donated by the media
O Nonpersonal component means that advertising involves mass media (radio, magazines, newspapers) that can transmit a message to a large groups of individuals at the same time- no time for immediate feedback therefore the advertiser must consider how the audience will interpret and respond to it
O Advertisement is best-known and most widely discuses form of promotion
O Advertisement is an important part of many marketers IMC programs:
Cost-effective way to reach large numbers of consumers with an advertising message
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8pm-11pm reaches nearly 5 million households
a valuable tool for building company or brand equity-informing consumers with information as ell as to influence
businesstheirtobusinessperceptionsmarketing’s use advertising to perform can be used to create favorable and un que images
O
important functions such as building awareness of the company and its products, generating leads for the sales force, reassuring customers about the purchase they have made, or helping create a favorable image of the company
Advertising to Consumer markets
National advertising: advertising done by large companies on a nation wide basis or in most regions of the country.
Well-known companies and brands that are seen on prime-time TV or in other major national or regional media
Goal is to inform or remind consumers of the company or brand and its features, benefits, advantages or uses and to create or reinforce its image so that consumers will be predisposed to purchase it
Retail/Local Advertising: advertising done by retailer or local merchants to encourage consumers to shop at a specific store, use a local service or patronize a particular establishment
Motives- price, hours, service, atmosphere, image or merchandise assortment
Retailers are concerned with building store traffic, so their promotions often take the form of direct-action advertising designed to produce immediate store traffic and sales
Primary vs. Selective Demand Advertising:
Primary advertising is designed to stimulate demand for the general product class or entire industry (milk)
Advertiser might use this when its brand dominates a market and will benefit the most from overall market
a specificgrowthcompany’s. Brands.
Selective dem d adverti ing focuses on creating demand for
Is often used as part of a promotional strategy to help a new product gain market acceptance, since the challenge is to sell customers on the product concept
Advertising to Business and Professional Markets
Business-to-Business Advertising: advertising targeted at individuals who buy or influence the purchase of individual goods or services for their companies
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Industrial goods are products that either become physical part of another product, are used in manufacturing other goods or are used to help a company conduct its business
Insurance, travel services, health care
themProfessionaltousea company’sAdvertisingproduct:avertisingintheirtargetedbusinessto operationsprofessional such as doctor , l wyers, dentists, engineers or professors to encourage
orMightspecificalso thebeusedoftoaencouragecompany’sprofessionalsproductbyendtorecommend -users
Trade Advertising: advertising targeted to marketing channel
membersthesuchmanufacturer’saswholsales,brandeddistributorsproductsandtoretatheirlerscustomers..
Goal is encourage chan el embers to s ck, p omote and resell
Direct Marketing- organizations communicate directly with target customers to generate a response and/or a transaction
O Direct mail, database management, direct selling, telemarketing, direct response ads,
O Direct-response advertisement- a product is promoted through an ad that encourages the consumer to purchase directly from a manufacturer
Digital/Internet Marketing
Interactive media- allow for a two-way flow of communication whereby users can participate in and modify the form and content of the information they receive in real time.
Social Media- refers to online means of communication and interactions among people
Sales Promotion
Consumer-oriented sales promotion- is targeted to the ultimate user of a product or service and incudes couponing, sampling, premium, rebates, contests, sweepstates, and various point- of- purchase materials
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Chapter 2: The Role of IMC in the Marketing Process
Marketing Strategy and Analysis
Any organization should have a strategic marketing plan- usually ecoles from an organizations overall corporate strategy and serves as a guide for specific programs and policies
Marketing strategy is based on a situation analysis- a detailed assessment of the current marketing conditions facing the company, its product lines or its individual brands
Promotion plays an important role in convincing channel members to carry a product; the marketing planning program development includes promotion decisions
Marketing segments- target markets the company wishes to pursue
Opportunity Analysis
Market opportunities: areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied and where it can compete effectively
Leads to alternative market opportunities for product lines in current or new markets, new products for current markets or new products for new markets
Competitive Analysis
Competitive advantage: something special a firm does or has that gives it an edge of competitors
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Target Market Selection
OThisAfterbecomesevaluatingthethefocusopporoftheunities,firm’sthemarketingcompanyeffortmay andselectgoalsoneandor
more target market
O
objectives are set according to where the company wants to be and what it hopes to accomplish
They pursue a number of different strategies, breaking the marketing into segments and targeting one or more of these segments for marketing and promotional efforts
The Target Marketing Process
Identifying Markets
The marketer identifies the specific needs of groups of people, selcts one or more of these segments as a target and develops marketing programs directed to each
Market Segmentation
Dividing a marketing into distinct groups that have common needs and will respond similarly to a marketing action
The more segment the market, the more precise the understanding of it
Bases for Segmentation
Geographic segmentation: markets are divided into different geographic units
Demographic segmentation: diving the market on the basis of demographic variables such as age, sex, family size, education, income and social class
Psychographic Segmentation: dividing market on the basis of personality, lifecycles and/or lifestyles
Behavioristic Segmentation: dividing consumers into groups according to their usage, loyalties or buying responses to a product (brand/product usage, degree of use, brand loyalty)
Degree of use relates to the fact that a few customers may buy a disproportionate amount of many products or brands
80-20 rule: 20% of buyers account for 80% of their sales volume
Benefit Segmentation: grouping of consumers on the basis of attributes south in a product
Process of Segmenting a Market
Develops over time and is an integral of the situation analysis
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What needs are not being fulfilled? What benefits are being sought? What characteristics distinguish among the various groups seeing these products and services?
Selecting a Target Market
Determining how many segments to enter
Undifferentiated Marketing: ignoring segment different and offering just one product or service to the entire market
Differentiated Marketing: marketing in a number of segments, developing separate marketing strategies for each
Concentrated Marketing: used when the firms selects one segment and attempts to capture a large of this market
Determining Which Segments Offer Potential
Firm examine the sales potential of the segment, the opportunities for growth, the competition and its own ability
to compete:theart and science of fitting the product or service to
Market Positioning
meaningfullyPositoning apart from competition
one or more segments of the broad market in such a way as to set it
Positioning is the image that comes to mind and the attributes consumers perceive as related to it
Developing A Positioning Strategy
Positioning by Product Attributes and Benefits
Salient attributes: important to consumers and are the basis for making a purchase decision
Setting the brand apart from competitors on the basis of the specific characteristics or benefits offered
Positioning by Price/Quality
Use ads to reflect the image of high-quality brand where cost, while not irrelevant is considered secondary to the quality benefits derived from using the brand
Focus on the quality or value offered by the brand at a very competitive price
Positioning by Use of Application
Associate it with specific use or application
Effective way to expand the usage of a product
Positioning by Product Class
Comes from outside the product class.
Ex: Amtrak has positioning itself as an alternative to airplanes
Positioning by Product User
Ex: DC shoes associating with skateboarders
Positioning by Competitor
Competitors within the same product category
Ex: Avis vs. Hertz
Positioning by Cultural Symbols
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Ex: Ronald McDonald, Keebler elves
Repositioning
Repositioning a product usually occurs because of a declining or stagnant sales or because for anticipated opportunities in other market positions
Developing The Marketing Planning Program
Product Decisions
OProduct symbolism: what a product or brand means to consumers and what they experience in purchasing and using it
Branding
OBuild and maintain brand awareness and interest
ODevelop and enhance attributes towards the company, product or service
O Build and foster relationships between the consumer and the brand O Brand identity: consist of the combination of the name, logo,
symbols, design, packaging and image of associations held by consumers
OBrand equity: an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation and/or the strength of consumer attachment to a company name,
brand name or tradema k
PackagingConsumer’s first exposure
O
A way to communicate with consumes and create an impression of the brand in their minds
It should satisfy any legal requirements regarding disclosure
It should divulge its content and composition
Price Decisions
Price variable refers to what consumer must give up to purchase a product or service
Relating Price to Advertising and Promotion
High ads= premium prices
Low ads= low prices
Exposure to TV ads reduces consumers tendencies to react to price changes
Distribution Channel Decisions
Direct channels: direct-selling programs, such as Avon, Mary Kay or firms that use direct-response advertising, telemarketing, internet to sell their products
Indirect channel: use network of wholesalers and/or retailers
Marketing channels: sets of interdependent organizations involved in the process of making a product or service available for use of consumption
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Developing Promotional Strategies: Push or Pull?
Push strategy: push the product through the channels of distribution by aggressively selling and promotion the item to resellers or trade
The company may use trade advertising to interest wholesalers and retailers and motivate them to purchase its products for resale to their customers
Pull strategy: spending money on advertising and sales promotion efforts directed towards the ultimate consumer. Goal is create a demand among consumers and encourage them to request the product from the retailer.
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Chapter 4: Perspectives on Consumer Behavior
Consumer Behavior: the process and activities people engage in when searching for, selecting, purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires
The Consumer Decision Making Process
ProblemCausedRecognitionbyadifference:occurs betweenwhenthetheconsumer’sperceivesidealstatenedandandactual becomes motivated to solve problem
O
state.
A discrepancy exists between what the consumer wants the situation to be like and what the situation is really like.
Sources of Problem Recognition:
Out of stock: problem recognition occurs when consumers use their existing supply of a product and must replenish their stock. The purchase decision is usually simple and routine and
Dissatisfaction:oftenresolvedconsumer’sbychoosingdissatisfactionfmiliarbrandwithortheonecurrenttowhich the consumer feels loyal.
state of affairs and/or the product or service being used. Ex: consumer may think her snow boots are no longer comfortable or stylish enough
New Needs/Wants: change in lifestyle/financial situation
triggersproductsnewneeds/wantssatisfyconsumer’s. Wants
Want: a desire for something one does not have-most
Related Products/Purchases: a new iPod may lead to the
recognitionInducedofaneedProblemforaccessRecognition:ries,suchmarketers’dock orencouragear attachment
Marketer-
consumers not to be content with their current state of situation
New Products: innovative products are introduced and brought to the attention of consumers
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Examining Consumer Motivations
Hierarchy of Needs:
5 basic needs: physiological, safety, social/love and belonging, esteem and self-actualization
Psychoanalytic Theory:
Pioneer d by Sigmund Freud
Consumers’Underlyingmotivationsforhumanpurchasingbehaviorareoften very
complex and unclear to the casual observer and to the consumers themselves
Driven by deep motives
Motivation research: the work of these researchers and others who continue to use this approach assumed the title
Motivation Research in Marketing
In-depth interviews
Projective techniques
Association tests
Focus groups
Problems and Contributions of Psychoanalytic Theory and Motivation Research
Too vague, unresponsive to the external environment and too reliant on the early development of the individual
Information Search
Internal search: scan information regarding various purchase alternatives
External search: internet sources, personal sources, commercial sources, public sources, personal experiences
Determining how much and which sources of external information to use involves several factors- effort needed, past experiences and time available
Perception
Marketers are interested in how consumers sense external
information, how they select and attend to various sources of Theinformcharacteristicstionandhowof thisastimulus,informationaperson’sisinterprbeliefstedandand given
experiences,meanng a person’s needs and expectations
Perception: the process by which an individual receives, selects, organized and interprets information to create a meaningful picture of the world
Sensation: the immediate, direct response of the senses to a stimulus
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consumer’sSelectinginfopersonality,mation: needs,howtheymotives,willbeexpectationsintrpreted include internal psychological factors such as the
and experiences
Interpreting the information: organizing and categorizing information in influenced by
O Internal psychological factors O The nature of the stimulus
Selective perception: results form the high number and complexity of the marketing stimuli a person is exposed to
Selective exposure: occurs as consumes choose whether or not to make themselves available to information
Selective attention: occurs when the consumer choose to focus attention on certain stimuli while excluding others
Selective comprehension: interpreting information on the basis of their own attitude, beliefs, motives and experiences
Selective retention: consumers do not remember all the information they see, hear or read even after attending to and comprehending it
Mnemonics: symbols, rhymes, associations and images that assist in the learning that spell out the company name and are easy to remember
Subliminal perception: refers to the ability to perceive a stimulus that is below the level of conscious awareness
Alternative Evaluation
The consumer compares the various brands or products and services he or she has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process
Evoked set: subset of all the brands of which the consumer is aware
Top-of-mind awareness: among consumers so that their brands are part of the evoked set of their target audiences
Reminder advertising: maintain high awareness levels and increase the likelihood they will be considered by consumers in the market for the product
Size depends on the importance of the purchase and time and energy spend comparing alternatives
Evaluative Criteria and Consequences
Evaluative criteria: the dimensions or attributes of a product or service that are used to compare different alternatives (objective or subjective)
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Functional consequences: concrete (ines of product or service usage that are tangible and directly experienced by consumers ex: taste of chips, speed of cars
Psychosocial consequences: abstract outcomes that are more intangible, subjective and personal, such as how a product makes you feel or how you think others will view for purchasing or using it
Two subprocesses are very important during the alternative evaluation stage: the process by which consumer attitudes are created, reinforced and changed and the decision rules or integration strategies consumers use to compare brands and make purchase decisions
Attitudes
Multiattribute attitude models: views an attitude object, such as a product or brand as possessing a number of attributes that provide the basis on which consumers from their attitudes
Represent positive or negative feelings and behavioral tendencies
Salient beliefs: beliefs concerning specific attributes or consequences that are activated and form the basis of an attitude are referred
Attitude Change Strategies
Changing consumers’thetrengthperceptionsorbliefratingoftheof importancebrandonanor value of
important attribute
an attribute
Adding a new attribute to the attitude formation process
Changing perceptions of belief rating for a competing brand
Purchase Decision
Pre-evaluation:
Integration process: are the way product knowledge, meanings and beliefs are combined to evaluate two or more alternatives
Heuristics: price based (buy least expensive) or promotion based )choose the brand for which I can get a price reduction through coupon, rebate or special deal)
Decision
Purchase intention: predisposition to buy a certain brand.
Brand loyalty: preference for a particular brand that results in its repeated purchase; of course, brand loyalty is not limited to nondurables
Post Evaluation
Satisfaction
Dissatisfaction
Cognitive dissonance: feeling of psychological tension or postpuchase doubt that a consumer experiences after making a difficult purchase choice
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The Consumer Learning Process
The Behavioral Learning Theory
Classical Conditioning: assumes that learning is an associative process with an already existing relationship between a stimulus and a response
Operant conditioning: (instrumental) individual must actively operate or act on some aspect of the environment for learning to occur
Reinforcement: reward or favorable consequence associated with a particular response
Scheduled of reinforcement: result in varying patterns of learning and behavior (continuous or partial)
Cognitive Learning Theory
Environmental Influences on Consumer Behavior
Culture: complexity of learned meaning, values, norms and customs shared by members of a society
Subcultures: smaller segments within a culture, whose beliefs, values, norms and patterns of behavior set them apart from the larger cultural mainstream (geography, religion, age)
Social class: homogenous divisions in a society into which people sharing similar lifestyles, vales, norms, interests and behaviors can be grouped
Reference Group: group whose presumed perspectives or value are being used by an individual as the basis for his or her judgments, opinions and actions
Situational determinants: specific situation in which consumers plant to use the product or brand directly affects their perceptions, preferences and purchase behaviors
O Types- usage (product will be used), purchase (environment operant at the time of the purchase) and communications situation (condition in which an advertising exposure occurs)
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Chapter 5: The Communication Process
The Nature of Communication
Communication: the passing of information, the exchange of ideas or the process of establishing a commonness or oneness of thought between a
sender and a receiver
The Basic Model of Communication
Source Encoding
Source: the sender of a communicating is the person or organization that has information to share with another person or group of people
Encoding: putting thoughts, ideas or information into a symbolic form. The senders goal is encode the message in such a way that it will be understood by the receiver
Message
Message: contains the information or meaning the source hopes to convey. (verbal/nonverbal)
Marketers must make decisions regarding the content of the messages they send to consumers as well as the structure and design of these messages
Channel
Channel: the method by which the communication travels from the source or sender to the receiver.
Nonpersonal channels: those that carry a message without direct, interpersonal contact between the sender and receiver
Mass media: message they contain is directed to more than one person and is often send to many individuals at one time
Nonpersonal channels communications consist of two major types: print and broadcast
Personal Channels: involve direct communication between two or more persons and can occur through interpersonal contact or other methods such as email or social media
Word-of-mouth (WOM): influence that involves informal communication among consumers about products and services and is a very powerful source of information
Viral Marketing
Viral marketing: the act of propagating marketing relevant messages through the help and cooperation of individual consumers
Factors that affect the success of viral marketing: message characteristics, individual sender or receiver characteristics and social network characteristics
Demographics, personality traits and motivation for sharing content and messages as well as receiving them impact the effectiveness or viral campaigns
Seeding: identifying and choosing initial group of consumers who will be used to start the diffusion or spreading of a message
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Receiver/Decoding
Receiver: thepersonsprocess withoftransformingwhomthesenderthesender’sshaesmessagethoughtsbackor information
Decoding: into thought
Field of experience: refers to the experiences, perceptions, attitude and values he or she brings to the communication situation
Must have common ground between the sender and receiver
Important that marketers and their agencies understand the frame of reference and perspectives of the consumer sin the target markets that are receiving heir messages
Noise
Noise: unplanned distortion or interference; error or problems that
occur in thereceiver’sncoding setoftheof reactionsmessage after seeing, hearing or reading
Response/Feedback
Response: the part of the receiver’s response that is communicated the message
Feedback:
back to the sender
Analyzing the Receiver
Identifying the Target Audience
Target audience includes individual, groups, niche markets, market
segments or general public or mass audiences The Response Process
Traditional Response Hierarchy Models
AIDA model: developed to represent the stages a salesperson must take a customer through in the personal-selling process
Depicts the buyer as passing successively through attention, interest, desire and action
Getting the customer to make a purchase commitment and closing the sale
Hierarchy of effects model: the process by which advertising works; it assumes a consumer passes through a series of steps in sequential order from initial awareness of a product or service to actual purchase
Innovation adoption model: evolved from work on the diffusion of innovations. This model represents the stages a consumer passes through in adopting a new product or service
Information processing model: this model assumes the receiver in a persuasive communication situation like advertising is an information processor or problem solver.
Attention and comprehension are similar or awareness and knowledge, yielding is synonymous with liking
Retention: ability to retain that portion or information
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Implications of the Traditional Hierarchy Models
OUseful to promotional planners from several perspectives
OThey delineate the series of steps potential purchasers must be taken through to move them from unawareness of a product or service to readiness to purchase it
OPotential buyers may be at a different stages in the hierarchy, so the advertiser will face different sets of communication problems
Evaluating Traditional Response Hierarchy Models
OCognitive stage represents what the receiver knows or perceived
OAffective stage refers to the receiver’s feelings or affect level for a
about the p rticular pr duct or brand (awareness, knowledge,
in ormation or comprehension)
OConative/behavioral stage: the consumer’s action towards the brain:
particular brand. (desire, pref rence or conviction)
trial, purchase, adoption or rejection
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Alternative Response Hierarchies
The Standing Learning Model: consist of learn feel do sequence. Information and knowledge acquired or learned about the various brands are the basis for developing affect or feelings that guide what the consumer will do
Dissonance/attribution model: do feel learn. Occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes- selective learning
Reduces post purchase dissonance- consumers purchase the product on the basis of a recommendation
Low involvement hierarchy: the receiver is viewed as passing from cognition to behavior to attitude change learn do feel
The Social Decision Journey
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Cognitive Processing of Communication
The Cognitive Response Approach
Cognitive responses: the thoughts that occur to them while reading, viewing and/or hearing a communication
Product Message Thoughts
Counterarguments: thoughts that recipient has that are apposed to the position taken in the message
Support arguments: thoughts that affirm the claims made in the message
Source-Oriented Thoughts
Source derogations: negative thoughts about the spokesperson or organization making the claims
Source bolsters: receivers who react favorable to the source generate favorable thoughts
Ad Execution Thoughts
Ad execution-related thoughts: either be favorable or unfavorable towards the advertisement as well as the brand
Attitude towards the ad: represents the receivers feelings towards the ad
The Elaboration Likelihood Model
ELM: differences in the ways consumers process and respond to persuasive messages
Petty and Cacioppo devised this model to explain the process by which persuasive communications lead to persuasion by influencing attitudes
According to this model the attitude formation or change process depends on the amount and nature of elaboration or processing, of relevant information that occurs in response to a persuasive message.
ELM shows that elaboration likelihood is a function of two elements,
involvement,motiationandpersonalability torelevanceprocess andthemessageindividual’s needs and arousal O Motivation- to ocess the message epends on uch factors
OAbilitylevels depends on the individual’s knowledge, intellectual capacity
and opportunity to process the message
OCentral route to persuasion: the receiver is viewed as a very active, involved participant in the communication process whose ability and motivation to attend, comprehend and evaluate messages are high
When central processing of an advertising message occurs, the consumer pays close attention to message content and scrutinizes the message arguments
OPeripheral route to persuasion: receiver is viewed as lacking the motivation or ability to process information and is not likely to engage in detailed cognitive processing- ability and motivation to process is low
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Chapter 6: Source, Message and Channel Factors
interactsPlanningwiththeThrconsumer’sughThePerresponseuasionprocessMatrix Persua ion Matrix: helps ma keters see how each controllable elementPromotional
Receiver/ Comprehension: can the receiver comprehend the ad?
Marketers must know their target market to make their messages clear and understandable
Channel/Presentation: Which media will increase presentation?
Message/Yielding: :Whohatwilltypebeofeffectivemessageinwillgettingcreateconsumers’favorableattention?Titudesor feelings?
Source/attention
Source Factors
Source: the person involved in communicating a marketing message
Direct source: a spokesperson who delivers a message and/or endorses a product or service
Indirect source: draws attention to and enhances the appearance of an ad
Source Credibility
Credibility: the extend to which the recipient see the source as having relevant knowledge, skill or experience and trusts the source to give unbiased, objective information
Internalization: occurs when the receiver adopts the opinion of the credible communicator since he or she believes information from this source is accurate
Applyingcustomers’Exptise
Sales personnel are trained in the product line, which increases perceptions of their expertise
Spokespeople are often chosen because of their knowledge, experience and expertise
Endorsements from individuals or groups recognized as experts (doctors, dentists)
Applying Trustworthiness
many trustworthiness people hesitate to endorse a product because of how it could impact their reputation
hidden customers, disguised brands are compared
overheard-conversation: involves creating a station in a commercial where a person is shown overhearing a conversation in which favorable claims are made about a product or service
Using spokespersonCorporateLeadersinthe firm’sasSpokespeopleadvertising
use the company president or chief executive officer as a
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Limitations of Credible Source
Sleeper effect: the persuasiveness of a message increases with the passage of time
Source Attractiveness
O Attractiveness: encompasses similarity, familiarity and likeability
O Identification: the receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences or behavior
O Applying Similarity
Resemblance between the source and the recipient of the message
Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial
thinkInaslice.Ican-of- lifesee commercial,myselfinthatthesituationadvertisers. Usually starts by presenting a predicame t with the h pe of getting the consumer to
This can help establish a bond of similasingrity betweenthesource’sthe level of communicator and the receiver, incre
persuasiveness
Applying Likeability
Affection for the source resulting from physical appearance, behavior or other personal traits
Using Celebrities
Stopping power- draw attention to advertising messages in
consumers’’averyclutterfeelings,dmediaattitudesenvironmentandpurchase behavior
Marketers thing a popular c lebrity will f vorable influence
Match with audience, match with product, trust, familiarity, likability, cost/ROI, image
Risk of Using Celebrities
The celebrity may overshadow the product being endorsed
The celebrity may be overexposed, reducing his or her credibility
•
The celebrity’stargetaudiencebehaviormaymaynot beposerceptivearisktototheclebritycompany endors rs
•
OSource Power: a source power has power when he or she can actually administer rewards and punishments to the receiver
Perceived Control: The source must be perceived as being able to
administers positive or negative sanctions to the receiver
Perceived Scrutiny: thereceiver’ssource’sability
concern: t r i r mu think thecares
about whether or not theconforms
to observes conformity
Compliance: when a receiver perceives a source as having power
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Message Factors
Message Structure
OOrder of Presentation
Items placed first and last are remembered better than presented in the middle
Primacy effect: presenting the strongest arguments at the beginning of the message
Recency effect: putting the strong points at the end
Strong arguments work best at the beginning of the message if the audience is not interested in the topic, so they can arouse
communicator’sinterestinthemessageposition or is highly interested in the issue When the target aud ence is predisposed towards
of
product, strong arguments can be saved for the end- retention
of the information
The order of the presentation can be critical when a long, detailed message with many arguments is being presented
Effective sales presentations open and close with strong selling
points and bury weaker arguments in the middle
Conclusion Drawing
Whether to draw a conclusion for the audience also depends on the complexity of the topic
Highly educated audience may need assistance if its knowledge level in a particular area is low
If immediate action is the objective, the message should draw a definite conclusion
When immediate action is not the objective and repeated exposure will give the audience members opportunities to draw their own conclusions, an open-ended message may be used
Message Sidedness
One-sided message: only positive attributes or benefits
Works best when the target audience already holds a favorable opinion about the topic
Less educated crowd
Two-sided message: presents both good and bad points
Works better when the target audience holds an opposing opinion or is highly educated
Enhance credibility of the source
Refutation
Refutational appeal: the communicator presents both sides of an issue and then refutes the opposing viewpoint
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Comparative Advertising
Comparative Advertising: the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes
May be especially useful for new brands
Often use for brands with small market share
Frequently use in political advertising
Fear Appeals
Fear appeals: evoke this emotional response and arouse individuals to take steps to remove the threat
May stress physical danger of threats to health
May identify social threats: disapproval or rejection (ex: deodorant)
May backfire is the level of threat is too high
Relationship between Fear Levels and Message Acceptance
Appraising the confirmation available regarding the severity of
the perceived threat
The individual’sperceivedprobabperceivedlity thatabilitythetothreatcarrywilloutoccurthecopingperceived ability of coping behavior to remove he threat
behavior
This model suggests that ads using fear appeals should give the target audience information about the severity of the threat the probability of its occurrence an the effectiveness of a coping response and the easer with which the response can be implemented
Humor Appeals
They can attract and hold attention
They are often the best remembered
They put the consumer in a positive mood
Wearout: the tendency of a TV or radio commercial to lose its effectiveness when it is seen and/or heard repeatedly
Advantages:
Aid with awareness and attention
Aid name and simple copy registration
Aid retention
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Aid persuasion to switch brands
Create a positive mood that enhances persuasion
Disadvantages:
Harm recall and comprehension
Harm complex copy registration
Do not air persuasion in general
Do not aid source credibility
Not very effective in brining about sales
Channel Factors
Personal vs. Nonpersonal Channels
Information received from personal channels is more persuasiveness than that received from the mass media
Effects of Alternative Mass Media
Information from ads in print media (newspapers) are self paced- readers process the ad at their own rate and can study it as long as they desire
Broadcast media of radio and TB is externally paced- the transmission rate is controlled by the medium
Effects of Context and Environment
Qualitative media effect: the reactions to the message
Clutter
The amount of advertising in a medium
Major problem for TV as a result of increases in non-program time and the trend toward shorter commercials
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Chapter 7: Establishing Objectives and Budgeting for the Promotional Program
The Value of Objectives
Communications
Specific objectives for the IMC program facilitate coordination of the various groups working on the campaign.
Many people are involved in the planning and development of the integrated marketing communications programs on the client side as well as in the various promotional agencies.
Planning and Decision Making
Objectives guide decision making and development of the IMC plan
Measurement and Evaluation of Results
Objectives provide a benchmark to measure success or failure
Good objectives are measurable
Determining Integrated Marketing Communications:generallystatedObjectivesinthefirm’s marketing plan Marketing vs. Communications Obj ctives
OMarketing Objectives
and are statements of what is to be accomplished by the overall marketing program within a given time period
Defined in terms of specific, measureable outcomes such as sales volume, market share, profits or return on investment
Good marketing objectives are quantifiable; they delineate the target market and note the time frame for accomplishing the goal (often one year)
Identify what is to be accomplished by the overall marketing program
Defined in terms of specific measurable outcomesMust be quantifiable, realistic and attainable
Integrated Marketing Communications Objectives: statements of what various aspects of the IMC program will accomplish
Based on the particular communications tasks required to deliver the appropriate messages to the target audience
Sales Versus Communications Objectives
Sales-Oriented Objectives
The only meaningful objective for their promotional program is sales
Take the position that the basic reason a firm spends money on advertising and promotion is to sell its product or service
Factors Influencing Sales
Competition
Technology
The economy
Product quality
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Price
Distribution
Advertising and promotion
Problems with Sales Objectives
Successful implementation requires all marketing elements to work together
Advertising has carryover effect: monies spent on advertising do not have immediate impact on sales
Where Sales Objectives Are Appropriate
Objectives can induce immediate behavioral response from the prospective customer
A major objective of most sales promotion programs is to generate short-term increases in sales
Communications Objectives
Primary role of an IMC program is to communicate and that planning should be bases on communications objectives
Communications Effects Pyramid:
First accomplish the lower-level objectives such as awareness and knowledge or comprehension
Initial stages are easier to accomplish than those towards the top
The percentage of customers will decline as they move up the pyramid
Problems with Communications Objectives
It is too difficult to translate a sales goal into a specific communications objectives
Possible objectives include:
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Increasing the percentage of consumers in the target market who associate specific features, benefits or advantages with
whoourbrandprefer our product over the competition’s
Increasing the number of consumers in he target audience
Encouraging current users of the product to use it more frequently or in more situations
Encouraging consumers who have never used our brand to try it
DAGMAR: An Approach to Setting Objectives
DAGMAR: communications effects are the logical basis for advertising goals and objectives against which success of failure should be measured
Under this model approach, an advertising goal involves a communications task that is specific and measurable
Communications task can be based on a hierarchical model of the communication process with four stages:
O Awareness: making the consumer aware of the existence of the brand or company
O Comprehension: developing an understanding of what the product is and what it will do for the consumer
O Conviction: developing a mental disposition in the consumer to buy the product
O Action: getting the consumer to purchase the product
Characteristics of Objectives
OConcrete, Measureable Tasks
The communications task specified in the objective should be a
precise statement of what appeal or message the advertiser wants to communicate to the target audience
OTarget Audience
Another import nt characteristic of good objectives is well-
defined
Primarytargetaudiencefor a company’s product or service is
described in the situation analysis
may be based on geography, demographics andent
pre nt positiondetermining the target market’s
psychographics as well as b havioral variables
O Benchmark and Degree of Change Sought
To set objectives, one must know the target audience’s pres
Benchmark measures:
regarding the various esponse stages
status concerning response hierarchy variables such as awareness, knowledge, image, attitudes and intentions than they determine the degree to which consumers must be changed by the campaign
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Specified Time Period
Final consideration in setting advertising objectives is specifying the time period in which they must accomplished
Criticisms of DAGMAR
Problems with the response hierarchy
Sales objectives
Practicality and costs- practical only for large companies
Inhibition of creativity- imposes too much structure on the people responsible for developing the advertising
Problems in Setting Objectives
Traditional Advertising-Based View of Marketing Communications
Zero-based communications planning: involves determining what tasks need to be done and which marketing communications functions should be used and to what extent
Social Consumer Decision Journey
Source: Expert interviews;
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Monitor: know what is being said online about the product or brand to gain insights as to how it is being perceived in the marketplace and them respond accordingly
Respond: marketers must respond to specific issues at a personal level
Amplification: deals with designing the communications program-particularly as it relates to social media- to foster engagement and sharing
Lead: designed to take the consumer to long-term behavioral changes
Establishing And Allocating The Promotional Budget
Contribution Margin: the difference between the total revenue generated by a brand and its total variable costs
Marginal analysis: as advertising/promotional expenditures increase, sales and gross margins also increase to a point, but then they level off. Profits are show to be a result of the gross margin minus advertising expenditures
Sales Response Models
Concave-downward function: effects of advertising quickly begin to diminish
S-Shapes response curve: initial outlays of the advertising budget have little impact. After a certain budget level has been reached, advertising and promotional efforts begin to have an effect, as additional increments of expenditures result in increased sales
Factors Influencing Advertising Budgets
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Note: 1 relationship means the factor leads to a positive effect of advertising on sales;
2 relationship indicates little or no effect of advertising on sales.
Budgeting Approaches
Top-Down Approaches: budgetary amount is established and then the monies are passed down to the various departments
Affordable Method: the firm determined the amount to be spent in various areas such as production and operations
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Arbitrary Allocation: virtually no theoretical basis is considered and thebudgetary amount is often set by management solely on the basis of what is felt to be necessary
Percentage of Sales: the advertising and promotions budget is based on thesales of the product. Management determined the amount by either taking a percentage of the sales dollars or assigning a fixed amount of the unit
product cost to promotionsclipscompetitor’sandmultiplyingadsfromthislocalamouprint bymedia,thenumberallowingofthe units sold.
Clipping Service:
company to work backward to determine the cumulative cots of the ads matchingplcedthe competition’s percentage
Competitive parity method: ma agers establish budge amounts by -of-sales expenditures
Competitor’s Advertising Outlays Do Not Always Hurt
Return on Investment (ROI): percentage of sales method, sales dictate the level of advertising appropriations
ROI budgeting method: advertising and promotions are considered
investments, like plan and equipment
Objective and task method: uses a buildup approach consisting of three steps:
O Defining the communications objectives to be accomplished
O Determining the specific strategies and task needed to attain them O Estimating the costs associated with performance of these strategies
and tasks
Isolate objectives
Determine tasks required
Estimate required expenditures
Monitor
Reevaluate objectives
Payout planning: determines the investment value of the advertising and promotion appropriation. The basic idea is to project the revenues the product will generate, as well as the cost is will incur over two to three years
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Quantitative models: attempts to apply quantitative models to budgeting have met with limited success
Computer simulation models: involving statistical techniques such as multiple regression analysis to determine the relative contribution of the advertising budget to sales
Steps to Develop and Implement the Budget
Employ comprehensive strategy
Develop strategic planning framework that employs an IMC philosophy
Develop contingency plans
Focus on long-term objectives
Evaluate effectiveness of programs have to be consistently
Allocating the Budget
Once the budget has be appropriated, the next step is to allocate it
Involves determining which markets, and/or promotional elements will receiver which amounts of the funds appropriated
The size of the market will affect the decision
In smaller markets, it if often easier and less expensive to reach the target market
In larger markets the target group may ne more dispersed and thus more expensive to reach
Economies of Scale in Advertising
Larger advertisers can maintain advertising shares that are smaller than their market shares because they get better advertising rates, have declining average cots of production and accrue the advantages of advertising several products jointing.
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Chapter 8: Creative Strategy: Planning and Development
Advertising Creativity
What is Creativity?
Creativity is probably one of the most commonly used terms in advertising
The people who develop ads and commercials are known as the creative types
Different Perspectives of Advertising Creativity
People argue that advertising is creative only if it sells a product
Some argue that the creative of an ad in terms of its artistic and aesthetic value and originality
Determinants of Creativity
Advertising creativity: the ability to generate fresh, unique and appropriate or relevant ideas that can be used as solutions to communicate problems
Divergence: refers to the extent to which an ad contains elements that are novel, different or unusual
Originality: ads that contain elements that are rare, spurring or move away from the obvious and commonplace
Flexibility: ads that contain different ideas or switch from one perspective to anther
Elaboration: ads that contain unexpected details or finish and extend basic ideas so they become more intricate, complicated or sophisticated
Synthesis: ads that combine, connect or blend normally unrelated objects or ideas
Artistic value: ads that contain artistic verbal impressions or attractive shapes and colors
In some cases, the focus of the creative strategy may be to achieve fluency which refers to the ability to generate a large number of ideas around a creative idea
Relevance: reflects the degree to which the various elements of the ad are meaningful, useful or valuable to the consumer
Ad-to-consumer relevance: refers to situations where the ad contains execution elements that are meaningful to consumers (ex: advertisers may use celebrities with whom consumers identify, music that they like, or visual images and other executions techniques that capture their interest and attention)
Brand-to-consumer relevance: refers to situations where the advertised brand of a product or service is of personal interest to consumers
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Studies have shown that advertising creativity impacts consumers’ responses to advertising messages across various stages of the response hierarchy
Studies also have show that creative ads draw more attention to the advertised brand, higher levels of recall, greater motivation or process the information and deeper levels of processing
Clients often favor relevance over divergence as they want their agencies to create ads that communicate pertinent information such as specific product features and benefits
Planning Creative Strategy
The Creative Challenge
Must take all research, creative briefs, strategy statements, communications objectives and other input and transform them into an advertising message
Taking Creative Risks
Important for clients to take risks if they want breakthrough advertising that gets noticed
Creative vs. Hard-Sell Advertising
Rationalists
Argue that advertising must sell the products or service, and that the more selling points or information in an ad, the better its chance of moving the consumer to purchase
Poets
Argue that advertising has to build an emotional bond between consumers and brands or companies that goes beyond product advertising
Argue that the most important thing good advertising does is make an emotional connection with consumers
Creative Personnel
The educational background is often nonbusiness
Creative people tend to be more abstract and less structured, organized or conventional
The CreativeYoung’sProcessModel of the Creative Process:
Immersion: Gathering raw material and data, and immersing oneself in the problem
Digestion: taking the information, working it over and wrestling with it in the mind
Incubation: putting he problems out of your conscious mind and turning the information over to the subconscious to do the work
Illumination: the birth of an idea
Reality or verification: studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness
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Wallas’ Model of the Creative Process:
Preparation: gathering background information needed to solve the problem through research and study
Incubation: getting away and letting ideas develop
Illumination: seeing the light or solution
Verification: refining and polishing the idea and seeing if it is an appropriate solution
Account Planning
gatheringTofacilitatealltherelevantcreaiveinformationpocess,manyaboutagenciesaclient’snowproductuseaccountorservice, planni , which is process that inv lves onducting resea ch and
drivingbandandtheconsumersprocessfromin tthe targetcustomers’audiencespoint of view
OPlays an im ortant role during creative strategy dev lopment by
OAccount planners are usually responsible for all the research (quan/qual) conducted during the creative strategy development process.
Inputs to the Creative Process: Preparation, Incubation, Illumination
OCreative specialists should be knowledgeable about genera trends, condition and developments in the marketplace, as well as research on specific advertising approaches or techniques that might be effective
OGeneral Preplanning Input
Include books, periodicals, trade publications, websites,
scholarly journals, picturesompetition,andclppingincludingservices,thewhichlatter’sgatherads and organizes magazine, newspaper and onl e articles on the
product, market and the c
Analyze trends, developments and happenings in the marketplace
Product or Service-Specific Preplanning Input
This information generally comes in the form of specific studies conducted on the product or service, the target audience, or a combination of the two
Gathering information through studies conducted by the client
Quantitative and qualitative consumer research such as attitude studies, market structure and positioning studies such as perceptual mapping and lifestyle research, focus group interviews and demographic and psychographic profiles of users of a particular product, service or brand are examples or product-specific preplanning input
Problem detection: involves asking consumers familiar with a product or service to generate an exhaustive list of things that bother them or problems they encounter
Some agencies conduct psychographic studies and construct detailed psychographic or lifestyle profiles
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Companiesients’customersusebrandingandhowresearchtheyconnecttohelptobetttheir identifybrand cl
OQualitative Research Input
Focus groups: research method whereby consumers from the target market are led through a discussion regarding a particular topic
particularFocusgroupsbrand,givewhatinsighttheyasliketowhyandanddon’thowlikeconsaboutmersvarioususe a roduct or service, what is important to them in choosing
thatproductsaren’torbeingservicessatisfiedandany special needs they might have
Ethnographic research: involves observing consumers in their natural environment
Inputs to the Creative Process: Verification and Revision
The verification and revision stage of the creative process evaluates idea generated during the illumination stage, reflects inappropriate ones, refines and polishes those that remain, and gives them final expression
Techniques used at this stage include:
Directs focus groups to evaluate creative concepts, ideas or themes
Message communication studies
Portfolio tests
Evaluation measures such as viewer reaction profiles
Storyboard: series of drawings used to present the visual plan or layout of a proposed commercial. It contains a series of sketches of key frames or scene along with the copy or audio portion for each scene
Animatic: a videotape of the storyboard along with an audio soundtrack
Storyboards and animatic are useful for research purposes as well as for presenting the creative idea to other agency personnel or to the client for discussion and approval
At this stage of the process, the creative team is attempting to find the best creative approach or execution style before moving ahead with the campaign themes and going into actual product of the ad
Creative Strategy Development
Advertising Campaigns: a set of interrelated and coordinated marketing communications activities that center on a single theme or idea that appears in different media across a specific time period
O Campaign theme: strong idea, as it is the central message that will be communicated in all the advertising and other promotional activities
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Slogan/tagline: theme of the campaign is expressed through this.
Reduces ytheexpresseskeyideatheintocompanyfewwordsorbrand’sorbriefpositioning,atementas well as O The advertising logan sh uld serve as summation l e that
succinctl
the message it is trying to deliver to the target audience
Creative Brief: specifies the basic elements of the creative strategy O basic problem or issue the advertising must address
O advertising and communications objectives O target audience
O major selling idea or key benefits to communicate
O creative strategy statement (campaign theme, appeal and execution technique to be used)
O supporting information and requirements
Model of Marketing Information Flow from the Marketing Manager to the Creative Staff
Communication Failure Points:
The client or client gatekeeper lacking knowledge of some or all the information needed for effective advertising
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The client deciding not to share with the agency all of the available information that is relevant to creating effective advertising
The agent gatekeeper deciding not to share with creative staffers all of the client information received
Internal agency communication failures that may result in the creative staff not receiving all of the relevant information received from the client
The Search for the Major Selling Idea
The major selling idea should emerge as the strongest singular thing you can say about your product or service
Developing the Major Selling Idea
Unique selling propositionbuythisproduct/service and you get this benefit
Each advertisement m st make a proposition to the consumer. Benefit-
cantThe propordon’tsiioffernmustit be one that the competition either cannot or does not ffer. Unique- must be unique to this brand claim; rivals
The proposition must be strong enough to move the mass millions, that is, pullover new customer to your brand. Potent- promise must be strong enough to move mass millions
OCreating Brand Image
Image advertising: the creative strategy used to sell these products is based on the development of a strong, memorable identity fir the brand
Image advertising has become increasingly popular and is used as the main selling idea for a variety of products and services, including soft drinks, liquor, cigarettes, cars, airlines, financial services, perfume/colognes and clothing
OFinding the Inherent Drama
Inherent drama: another approach to determining the major selling idea- the characteristic of the product that makes the consumer purchase it
OPositioniconsumer’sg mind
Establishes the product or service in a particular place in the
BasisDoneofnathefirm’sbaiscreativeofdistinctivestrategyattribuwheniteshas multiple brands
competing in the same market
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Chapter 9: Creative Strategy: Implementation and Evaluation
Appeals and Execution Styles
Advertising appeal: refers to the approach used to attract the attention of consumers and/or influence their feelings toward the product, service or cause
Creative execution style: is the way:focusaparticularontheconsumer’sappealistupractical,nedinto an advertising message presented to the consum r
Informational/rational appeals
function or utilitarian need for the product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand
O Competitive advantage appeal: compares to another brand and claims superiority on one or more attributes
O Feature appeal: focuses on the dominant traits of the product or service
O Favorable price appeal: makes price the dominant point of the message
O News appeal: involves a type of news about the product, service or company
O Product/service popularity appeal: Stresses the popularity of a product or service by positioning out the-
Number of consumers who use the brand or those who have
switched to it
Emotional Appeals: relate to the customer’s social and/or psychological
Number of experts who recommend the brand
Leade ship p sition in the market
needs for purchasing a product or service
OAdvantages of Emotional Only Campaigns
More effective in relation to campaigns using emotional and
OInfluence consumers’ interpretation of product usage
rational content
Work w ll during conomic downturns
: defined as one which associates the
experience of suing
experience
Transformational ad
(consumer) the advertised brand with a unique
Must make thetisement
set of psychological charact ristic which would not typically be
associated with the brand experience to the same degree without
exposure to the adver
experience of using the product richer, warmer
and more exciting
Must connect the experience of the advertisement so tightly with the experience of using the brand that consumers cannot remember the brand without recalling the experience generate by the advertisement
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Combining Rational and Emotional Appeals
Consumer purchase decisions are often mad eon the basis of both emotional and rational motives and attention must be given to both elements in developing effective advertising
Emotional Branding: evaluates how consumers feels about brands and the nature of any emotional rapport they have with a brand compares to the ideal emotional state associate with the product category
how consumers think about brands in respect to product benefits
consumers assigns a personality to a brand
consumers then develop emotional bonds with certain brands, which result in positive psychical movement towards them
Additional Types of Appeals
Reminder adverting: builds brand awareness and/or helps keep the brand name in front of consumers
Teaser advertising: builds curiosity, interest and/or excitement about a product or brand by talking about it but not actually showing it
User-generated content (UGC): create by consumers rather than by the company and/or its agency
Advertising Execution
Creative execution is the way an advertising appeal is presented
Straight-sell or factual message: used with informational/rational appeals, where the focus of the message is the product or service and its specific attributes and/or benefits
Commonly used in print ads with a picture
On TV with announcers delivering the sales message while a picture is shown
Scientific/Technical Evidence: advertisers cite technical information, results of scientific or laboratory studies or endorsements by scientific bodies of agencies to support their advertising claims
Demonstration: designed to illustrate the key advantages of the product/service by showing it in actual use or in some stages
communicatingsituation a brand’s particular advantage over its competitors or O C parison: increasingly popular since it off rs a d re way of
positioning a new or lesser-known brand with industry leaders
Testimonial: a person praised the product o service on the basis of his or her personal experience with it (endorsement)
Slice of life: based on problem/solution approach. Portrays a problem or conflict that consumers might face in their daily lives.
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Then the ad shows how the advertisers product of service can solve in the problem
Animation: animates scene are draw by artists or created on the computer and cartoons, puppets or other types of fictional characters may be used (good for commercials targeted at children)
Personality symbol: developing a character of personality symbol that can deliver the advertising message and with which the product or service can be identified (Geico)
Imagery: ads consist primarily of visual elements such as pictures, illustrations and/or associate the brand with the symbols, characters and/or situation shown in the ad- basis for emotional appeals that are used to advertise products or services where differentiation based on physical characteristics is difficult, such as soft drinks, liquor, designer clothing and cosmetics
Dramatization: focus is on telling a short story with the product or service as the star- relies on problem solution approach but it uses more excitement and suspense in telling the story
Humor: well suited to TV or radio
Combinations: animation is often use to create personality symbols or present a fantasy. Slice of life ads are often use to demonstrate a product or service
Creative Tactics
Creative Tactics for Print Advertising
Headlines: the words in the leading position of the ad- the words that will be read first or are positioned to raw the most attention. Large type
Direct headlines: straightforward and informative in terms of the message they are presenting and the target audience they are directed towards
Indirect headlines: not straightforward about identifying the product or service or getting to the point. More effective at attracting readers attention and interest because it provokes curiosity
Subheads: smaller than the main headline but larger than the body copy. Subheads are often used to enhance the readability of the message by breaking up large amounts of body copy and highlights key sales points
Body copy: main text portion. Hard to get audience to read
Visual elements: illustrations such as drawings or photos
Layout: the physical arrangement of the various parts of the ad, including the headline, subheads, body copy, illustrations and any
identifying:visualmarkselemtns.Howthatelementsattract areviewers’blendeda into finished ad
Creative Tactics for TVOVideottention and
communicate an idea, message and/or image
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Audio: includes voices, music and sound effects
Voice over: message is delivered by an announcer who is not visible
Needle drop: music that is prefabricated, multipurpose and highly conventional
Jungles: catchy songs about a product or service that carry the advertising theme and a simple message
Planning and Production of TV Commercials
Preproduction: all the work and activities that occur before the actual shooting/recording of the commercial
Production: the period during which the commercial is filmed or videotaped and recorded
Postproduction: activities and work that occur after the commercial has been filmed and recorded (editing, processing, approvals)
GuidelinesIstheforcreativeEvaluatingapproachCreativeconsistentOutput with the brand’s marketing and advertising
objectives?
Is the creative approach consistent with the creative strategy and objectives? Does it communicate what is supposed to?
Is the creative appropriate for the target audience?
Does the creative approach communicate clear and convincing message to the customer?
Does the creative execution keep from overwhelming the message?
Is the creative approach appropriate for the media environment in which it is likely to be seen?
Is the ad truthful and tasteful?
Ultimate responsibility for determining whether an ad deceives or offends the target audience lies with the client
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Chapter 10: Media Planning and Strategy
Basic Terms and Concepts
Media planning: the series of decisions involved in delivering the promotional message to the prospective purchasers and/or users of the product or brand
The media plan:
Guide for media selection
It requires development of specific media objectives and specific media strategies designed to attain these objectives
Aims to find a combination of media to communicate a message
In the most effective manner
To the largest number of potential customers
At the lowest cost
Once the decisions a have been made and the objectives and strategies formulated, this information is organized into the media plan.
Medium: the general category of available delivery systems, which includes broadcast media (TV/radio), print media (newspapers), direct marketing, outdoor advertising and other support media
Media vehicle: the specific carrier within a medium category
Reach: a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time (actual audience)
Coverage: refers to the potential audience that might receive the message through a vehicle. (Potential audience)
Frequency: refers to the number of times the receiver is exposed to the media vehicle in a specified period
Problems in Media Planning
Insufficient Information
Some data are not measurable- too expensive
Sweeps periods: used for measuring TV audiences and setting advertising rates (Feb, May, July and Nov)
Future planning decisions must be made on past data that may not reflect current behaviors
Inconsistent Terminologies
Problems arise because the cost bases vary depending of the medium (CPM, CPRP)
Times Pressures
Advertisers are always in a hurry
Media selection decisions may be made without proper planning and analysis of the markets and/or media
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Difficulty measuring effectiveness
Developing The Media Plan
Index Number: considered a good indicator of the potential of the market. % Of users in a demographic segment/% of population in the same segment
O An index over 100 means use of the product is proportionately greater in that segment than in one that is average or less than 100
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What Internal and External Factors Are Operating?
Internal factors: size of the media budget, managerial/administrative capabilities or the organization of the agency
External factors: economy, changes in technology, competitive factors
Using Indexed to Determine Where to Promote
Survey of Buying Power Index:
Conducted for every major metropolitan market in the US and is based on a number of factors, including population, effective buying income and total retail sales in the area.
Gives media planners insight into the relative value of a market
Brand Development Index (BDI):
Factors the rate of the product usage by geographic area into decision process
% of brand to total U.S. Sales in the market/% of total U.S. Population in the market
the higher the index number, the more market potential exists
Category Development Index (CDI):
% of product category total sales in market/% of total U.S. Population in market
provides information on the potential for development of the total product category and not specific brands
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Establishing Media Objectives
Create awareness in the target market through the following:
Use broadcast media to provide coverage of 80% of the target market over a six-month period
Reach 60% of the target audience at least three times over the same six month period
Create a positive brand image through mood and creativity
Developing and Implementing Media Strategies
The Media Mix
Facts that determine what combination of media
Characteristics of product
Size of budget
Individual preferences
Target Market Coverage
Criteria Considered in the Development of Media Plans
The media mix
Target market coverage
Geographic coverage
Scheduling
Reach and frequency
Recency
Creative aspects and mood
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Flexibility
Budget considerations
Waste coverage: overexposure, in which media coverage exceeds the targeted audience
The goal of the media planner is to extend media coverage to as many of the members of the target audience as possible while minimizing the amount of waste coverage
Geographic Coverage
Promote skis in areas where skiing is popular
Scheduling
Continuity: refers to a continuous pattern of advertising, which may mean every day, every week or every month
the key is that a regular pattern is developed without gaps
ex: food, detergent or things without regard to seasons
Advantages
Serves as a constant reminder to the consumer
Covers the enire buying cycle
Allows for emdia priorities
Disadvantages
High costs
Potential for overexposure
Limited media allocation possible
Fighting: employs a less regular schedule, with a intermittent periods of advertising and nonadvertising
some time periods are heavier
ex: snow skis (October/November)
advantages:
cost effciency of advertising only during purchase cycles
may allow for inclusion or more than one medium or vehicle with limited budgets
disadvantages:
weighting may offer more exposures and advantage over competitors
increased likelihood of wearout
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lack of awareness, interest, retention or promotional message during nonscheduled times
vulnerability to competitive efforts during nonscheduled periods
pulsing: a combination of the first two methods.
Continuity is maintained but at certain times promotional efforts are stepped up
Ex: beer may increase during holidays
Advantages: all of the name as the previous two
Disadvantages: not required for seasonal products
Reach vs. Frequency
Advertisers must decide whether to have the message be seen or heard by more people (reach) or by fewer people more often (frequency)
Unduplicated reach: if the ad is placed on two shows
Duplicated reach: the number of people who were reached by both shows
Program rating: a measure of potential reach in the broadcast industry
Gross points( (GRPs): reach times frequency
Target ratings points (TRPs): number of people in the primary target audience therepresentsmdiabuythewillpercentageeachandofthevehicle’snumberaudienceoftims (does not include waste coverage)
Effective Reach:
reached at each effective frequency increment
Average frequency: the average number of times the target audience reached by a media schedule is exposed to the vehicle over a specified period
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Factors Important in Determining Frequency LevelsO Marketing Factors
Brand history
Brand share: an inverse relationship exists between brand share and frequency. The higher the brand share, the lower the frequency level required
Brand loyalty: the higher the loyalty, the lower the frequency required
Purchase cycles: shorter purchasing cycles require higher frequency levels to maintain top-of-mind awareness
CompetitiveUsagecycle: productsshareofvoice:used frequently,highfrequencyeedtotobeatreplacedcompetitor’ssoa high l vel of frequency is dec ders
voice
Target group: the ability of the target group to learn and to retain messages has a direct effect on frequency
Message of Creative Factors
Message complexity: the simpler the message, the less frequency required
Message uniqueness: the more unique the message, the lower the frequent level required
New vs. Continuous campaigns: new campaigns require higher levels of frequency than does a specific product sell
Message variation: a single message requires less frequency; a variety of messages requires more
Wear out: higher frequency may lead to wear out
Advertising units: larger units require less frequency than smaller
Media Factors
Clutter: the more advertising that appears in the media uses, the more frequency is needed the break through the clutter
Editorial environment: the more consistent the ad is with the editorial environment, the less frequency is needed
Attentiveness: the higher the level of attention achieved by the media vehicle, the less frequency is required
Scheduling
Number of media used: fewer media, lower level of frequency
Repeat exposure: media that allow for more repeat exposures
Determining Relative Costs of Media
Cost per thousand (CPM)= cost of ad space/circulation
Cost per ratings point (CPRP)= cost of commercial time/programming rating
Daily inch rate= cost of adspacex1000/circulation (newspapers)
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Media Characteristics
•Short message life
•High prestige
•Masso erage ad high rea h•
•Loost per exposure•High absolute cost
•Ipa t of sight, soud, a d otio•
•High production costs
•Attetiogettig
Clutter
•Fa orale iage
Radio•Audio ol
•Low cost
••Loattetiogettig
•High frequency•Fleetigessage
•Flexible•Clutte
•
•Low-production costs
•Well segmented audiences
•
Magazies•Segetatiopote tialLo g lead tie foad
Qualitep odu tiopla eet
•High ifoatiootet•Visual ol
•Logeit•La k of fle iilit
•Multipleeade s
Ne spape s•Higho e age ad loost•Sho t life ad poo
•Sho t lead tie fopla ig adsep odu tioualit
•Adsae pla ed ii te est se tio s•Clutte
•Tieluet ads•Loattetio-gettig
•Readeot ols e posu eapailities
•Cae used fooupo s•Sele ti e e posu e
Outdoo•Lo atiospe ifi•Sho t ads
•Highepetitio•Pooiage
•Easiloti ed•Lo alest itio s
Di e tail•High sele ti it•Highost/ ota t
•Readeot ols e posu e•Pooiageju kail
•High ifoatiootet•Clutte
•Ealesepeat e posu es
Digital/•Usesele ts ifoatio•P i aoes
I te a ti e•Useatte tio•Potetial fode eptio
•I te a tieelatioship•Clutte
•Di e t sellig potetial•La k ofeasu eet
•Fle ileessage platfote hi ues
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Chapter 11: Evaluation of Media- Television and Radio
Advantages of Television
Creativity and Impact
Sight and sound offer tremendous creative flexibility and makes possible dramatic, lifelike representation of products and services
Creates an emotional attachment
Coverage and Cost-Effectiveness
Reach large audiences
Prime time TV- 4.6 million homes
Popular medium among companies selling mass-consumption products
Captivity and Attention
Intrusive- commercials impose themselves on viewers
Heavy repetition and exposure to catchy slogans and jingles
Selectivity and Flexibility
Selectivity through program content, broad cast time
Limitations of Television
Costs
Expensive to buy airtime and producing a quality commercial
Lack of Selectivity
TV extends beyond their market, reducing its cost effectiveness
Fleeting Message
Last only 30 seconds and leave nothing tangible for the viewer to examine or consider
Clutter
A lot of commercials back to back-competing messages
Limited Viewer Attention
Zipping- viewers fast forward through commercials as they play back a previously recorded program
Distrust and Negative Evaluation
O
OCriticsZappingdon’t-changinglikeTV channadsbecauselstoavoidthey believecomm rcialstheyare offensive, too
persuasive, uninformative
Network vs. Spot
Network Advertising
A common way advertisers spread their messages is by purchasing airtime from a television network
A network assembles a series of affiliated local TV stations or affiliates to which it supplies programming and services
NBC, ABC. CBS
Up-front marketing: a buying period that occurs before the TV season begins
Scatter market: runs through the TV season
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Spot and Local Advertising
Spot advertising: commercials shown on local TV stations, with time negotiated and purchased directly from the individual stations
Increases the problem of advertising clutter
It has more variations in the discount structure than network advertising
It offers national advertisers the flexibility to an adjust to local market conditions
National spot advertising: all nonnetwork advertising done by a national advertiser
Local advertising: airtime sold to local firms such as retailers, restaurants, banks and auto dealers
Station reps: individuals who act as sales representatives for a number of local stations in dealings with national advertisers
Syndication
Syndicated programs: shows that are sold or distributed on a station-by-station, market-by-market basis.
Seeks to sell its program to one station in every market
Off-network syndication: refers to reruns of network shows that are bought by individual stations (Big Bang Theory)
First-run syndication: refers to shows produced specifically for the syndication market (talk shows)
Advertiser-supported or barter syndication: practice of selling shows to stations in return for a portion of the commercial time in the show, rather than cash (Wheel of Fortune or Jeopardy)
Methods of Buying Time
Sponsorship
Under a sponsorship arrangement, an advertiser assumes responsibility for the production and usually the content of the program as well as the advertising that appears within it
Sponsorship allows the firm to capitalize on the prestige of a high-quality program, enhancing the image of the company and its products
Participations
Most advertisers either cannot afford the costs of sponsorship or want greater flexibility than sole sponsorship permits
Participations: advertisers buying a commercial time or spots on a particular program
Participation advertisers have no financial responsibility for production of the program
Advertiser has no long-term commitment to a program and expenditures can be adjusted to buy whatever number of participation spots fits within the budget
TV budget can be spread over a number of programs, thereby providing for greater reach in the media schedule
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Disadvantage of participations is that the advertiser has little control over the placement of ads and there may also e problems with availability
Spot Announcements
Adjacencies: spot announcements are bought from the local stations and generally appear during time periods adjacent to network programs
Spot announcements are most often used by purely local advertisers but are also bought by companies with not network schedule
Selecting Timer Periods and Programs
Dayparts: specific segments of a broadcast day
8:30-9pm is prime time TV
The Growth of Cable
Superstations: independent local stations that send their signals nationally via satellite to cable operators to make their programs available to subscribers
Advertising on Cable
Interconnects: a number of cable systems and networks in a geographic area are joined for advertising purposes
Advantages of Cable
Selective
Narrowcasting: reaching very specialized markets
Low cost and flexibility
Limitations of Cable
Overshadows by the major networks
Audience fragmentation
Lacks total penetration
The Future of Cable
Challenges:
increases in the number of channels, leading to fragmentation of the audiences
changes in government regulations
Competition in the programming distribution
Multiplexing: transmitting multiple channels from one network
Measuring the TV Audience
Audience Measures
These measures are important to media planners as they weigh the value of buying commercial time on a program
Television households: a home with at least one operable TV or monitor with the ability to deliver video via traditional means of antenna, cable et-top-box or satellite receiver and/or with a broadband connection
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Program Rating: the percentage of TV households in an area that are tuned to a specific program during a specific time period (number of households tuned to a particular show/total number of households)
Ratings points: represents 1% of all television households in a particular are tuned to a specific program
Households using television (HUT): percentage of homes in a given area where TV is being watched during a specific time period
Share of Audience: the percentage of households using TV in a specified time period that are tuned to a specific program
Total Audience: the total number of homes viewing any five-minute part of a telecast
National Audience Information
National Television Index: provide daily and weekly estimates of the size and composition of the national viewing audiences for programs aired on the broadcast and major cable networks
People meter: an electronic measuring device that incorporates the technology of the old-style audiometer in a system that records not only what is being watched but also by whom in 10,000 households
Local Audience Information
Designated Market Areas (DMAs): measures viewing audiences
Sweeps: measures viwing audiences in every local TV market at least four times a year during rating periods
Radio
Advantages of Radio
Cost and Efficiency
Receptivity
Radio listeners are more emotionally connected to the radio stations to which they listen
Consumers perceive radio advertising as being more personally relevant to them
Selectivity
Flexibility
Mental Imagery
Image transfer: images of a TV commercial are implanted into a radio spot
Integrated Marketing Opportunities
Limitations of Radio
Creative limitations
Absence of visual image
Fragmentation
Chaotic Buying Procedures
Limited Research Data
Limited Listener Attention
Competition from Digital Media (satellite radio)
Clutter
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Buying Radio Time
Network Radio
Can be purchased on a network basis using one of he national networks
Using networks minimized the amount of negotiation an administrative work needed to get national or regional coverage and the costs are lower than those for individual stations
Spot Radio
Provides greater flexibility in selecting markets, individual stations and airtime and adjusting the message for local market conditions
Local Radio
Heaviest users of radio are local advertisers
Audience Information
Arbitron
Covers over 300 local radio markets with one to four ratings reports per year
Average Quarter-Hour (AQH) figure: expresses the average number
of people:cumulativeestimated audiencetohavelistened,theestimatedostationtotalfornumberaminimumofdifferentof fiver min tes during any quarter-hour in a time period
Cume
people who listened to a station for at least five minutes in a quarter-hour period within a reported daypart
Average quarter-hour rating (AQH RTG): expressed the estimated number of listeners as a percentage of the survey area population
Average quarter-hour share (AQH SHR): percentage of the total listening audience tuned to each station
Portable People Meter (PPM): wearable, page-sized device that electronically tracks what consumers listen to on the
Radar
Measurements based on information collected throughout the year by means of diary interviews from a probability sample of 200,000 respondents age 12 and older who live in telephone households
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Chapter 13: Support Media
The Scope of the Support of Media Industry
Support media is referred to as alternative media, below the line media, no measures media and nontraditional media.
Traditional Support Media
Out-of-home advertising media encompass many advertising forms (above)
Outdoor Advertising:
Successful because it has the ability to remain innovative through technology
Billboards can come in 3-D forms and extensions are now used to attract attention
Digital messages on billboards, transit signs and in stores have allowed more advertisement to participate as messages can be changed quickly and often
Allows advertising to appear in places previously unavailable and in a timely fashion
Digital-out-of-home media:
Video advertising networks-digital video screen that appear in offices, stores, theaters, inside transit networks and entertainment venues such as health clubs, sporting areas, bars and restaurants
Digital billboards or screens that transmit in LED or LCD
One of the fastest-growing outdoor industries
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Alternative Out-of-Home Media
OAerial Advertising: airplanes pulling banners, skywriting and blimps Not expensive and can be useful for reaching specific target
markets
OMobilecostBillboardsdepend :oncompanitheareas andpaintthetheirmobilecars/trucks/boardcompany’strailerswithfees ads
In-Store Media
In-store ads, aisle displays, store leaflets, shopping cart signage and in-store TV to reach shoppers at the place where they buy
2/3 of consumers purchase decisions are made in the store; some impulse categories demonstrate n 80% rate
Transit Advertising
Targeted to people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes and subways
Inside Cards: placed above the seats and luggage area advertising restaurants, TV or radio stations or a myriad of other products and services.
Outside Posters: appear on the sides, backs, and/or roofs of buses, taxis and subway and trolley cars.
Station, Platform and Terminal Posters: terminal posters can be very attractive and attention-getting
Advantages of Outdoor Advertising
Wide coverage of local markets
Frequency
Geographic flexibility
Creativity
Ability to create awareness
Efficiency
Effectiveness
Production capabilities- modern technologies have reduced production times for outdoor advertising to allow for rapid turnaround time and digital messages can be changed in minutes
Timeliness
Disadvantages of Outdoor Advertising
Waste coverage- not everyone looking at it is the target audience
Limited message capabilities
Wearout
Cost
Measurement problems
Image problems
Advantages of Transit Advertising
Exposure
Frequency
Cost
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Disadvantage of Transit Advertising
Reach- hit outside the target audience
Mood of the audience
Measurement of Out-of-Home Media
Competitive Media Reports
Experian Simmons Market Research Bureau
Point of Purchase Advertising International
The Outdoor Advertising Association of America
The Traffic Audit Bureau
The American Public Transportation Association
Promotional Products Marketing: “the advertising or promotional medium or method that uses promotional products, such as ad specialties, premiums, business gifts, awards, prizes or commemorative
Advantages of Promotional Products MarketingPromotionalProductsMarketing
OSelectivity
OFlexibility
OFrequency
OCost
OGoodwill
OHigh recall
OSupplementing other media
Disadvantages of Promotional Products Marketing
OImage
OSaturation
O Lead time- takes a while to make the things O Reach- TV leads to greater reach
Measurement in Promotional Products Marketing
O71% of people surveyed had received a promo product within the last
year%… Recalled advertiser’s name
O33.7%… Sti had the item
O
52%… Improved impression of company
73%… Used item at least once a week
55%… Kept it more than a year
GSU study showed that PP has a positive impact on brand image
Yellow Pages Advertising
Mostly baby boomers use yellow pages
Directional medium because the ads do not create awareness or demand for products or services; rather, once consumers have decided to buy, the Yellow Pages point them in the direction where their purchases can be made
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Other Traditional Support Media
Advertising in Movie Theaters
mixed reviews of ads in movie theaters
Advantages
Exposure
Emotional attachment
Cost- lost absolute and relative costs per exposure
Attention-pay more attention than to TV
Clutter-no clutter
Proximity
Segmentation
Integration
Disadvantages
Irritation
Cost
Nontraditional Support Media
Branded Entertainment
Form of advertising that blends marketing and entertainment through television, film, music talent and technology
Product Placements
Product integration: product is woven throughout the program or becomes the program itself
Advertainment: the creation of video and/or music content by advertisers in an attempt to entertain viewers while advertising they products
Advergames- online games designed to promote their products
Content sponsorship: some advertisers agree to sponsor specific programs, receiving product placements, integration and promotions in return
Ad-Supported Video on Demand (VOD): VODs are specialized content programs offered through cable TV networks that are developed by advertisers and provided to the cable operators for free
Advantages of Branded Entertainment
Exposure
Frequency
Support for other media
Source association
Cost
Recall
Bypassing regulations
Acceptance
Targeting
Disadvantages of Branded Entertainment
High absolute cost
Time of exposure
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Limited appeal
Lack of control
Public reaction
Competition
Negative placements
Clutter
Measurement in Branded Entertainment
Nielsen Media Research
Nielsen-IAG research
Deutsch/iTVX
Brand advisors
Guerrilla Marketing
Miscellaneous and Other Media
Videogames ads
Parking lot ads
Gas station pump ads
Place-based media
Others
Advantages of Miscellaneous Alternative Media
Awareness and attention
Cost efficiencies
Targeting
Disadvantages of Miscellaneous Alternative Media
Irritation
wearout
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Chapter 14: Direct Marketing
Direct Marketing: a system of marketing by which organizations communicate directly with target customers to generate a response or transaction
Direct Marketing Association’s definition: an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location
Direct-Response Media: direct mail, telemarketing, interactive TV, print and the internet
The Growth of Direct Marketing
OConsumer credit cards
O Changing structure of American society and the market- dual income O Technological advances- electronic media/internet
OMiscellaneous factors- changing values and lifestyles, more sophisticated marketing techniques
The Role of Direct Marketing in the IMC Program
ODirect Marketing with Advertising
Direct marketing is itself a form of advertisingO Direct Marketing with PR
Private companies use telemarketing activities to solicit funds for charities or co-sponsor charities that use these and other direct-response techniques to solicit funds
Corporations and organizations engaging in PR activities may include toll-free numbers or website URLs in their ads or promotional materials
ODirect Marketing with Personal Selling
Telemarketing and direct selling are two methods of personal selling used to generate sales
ODirect Marketing with Sales Promotions
Sweepstakes, promotions, discountsO Direct Marketing with Support Media
WhatAddingthepromotionalprogram’s objectives,productto whichadrectmarketsmailer hastotarget,provenwhatto increase response rates
direct marketing strategies will be employed and how to evaluate the effectiveness of the program
Direct-Marketing Objectives O Seeks direct response
O Use direct marketing to build an image, maintain customer satisfaction and inform and/or educate customers in an attempt to lead to future actions
Direct-Marketing Strategies and Media
One-step approach: the medium used directly to obtain an order (ex: TV commercials with toll-free number to place an order immediately)
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OTwo-step approach: the use of more than one medium. The first effort is designed to screen or qualify potential buyers. The second effort generates the response (ex: use telemarketing to screen on the basis of the interest and then follow up to interested parties with more information designed to achieve an order or use personal selling
to close the sale)
ODirect Mailjunk mail
advertisers had shed away from direct mail, fearful of the image it might create or harboring the belief that direct mail was useful only for low-cost products- no the case anymore (ex: Porsche uses direct mail to target the highest level of income)
mailing list: constitutes the database from which names are generated and the ability to segment markets and of course the offer.
The key to success of direct mail.
Lists have become more current and more selective
Segmentations on the basis of demographics and lifestyles
Commonly used list is of the individuals who have
already purchased direct-mail products
Catalogs
Many companies use catalogs in conjunctions with their more traditional sales and promotional strategies
Email
Direct mail on the internet is essentially an electronic version of regular mail
Highly targeted, relies heavily on lists and attempts to reach consumers with specific needs through targeted messages
Broadcast Media
TV and radio
Direct-response advertising: the product or service is offered and a sales response is solicited through one or two step
Support advertising: designed to do exactly that- support others forms of advertising
TV Spots
Direct-response commercials for products such as drugs and toiletries, audio and video supplies, household products and more
Infomercials
A long commercial that is designed to fit into a 30-minute or 1-hour time slot
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Home Shopping
Toll-free numbers and credit cards led to the increase in number of people who shop via their TV sets through home shopping channels
Print Media
Magazines and newspapers are difficult media to use for direct marketing
Relatively expensive
Telemarketing
Potential to fraud and deception
Annoying
Big industry but decreasing sales
Used by for-profit and charitable organizations
Direct Selling: the direct, personal presentation, demonstration and sales of
products and services to consumers in th ir homes
Three forms of direct selling:person selling: salesperson visits the buyer’s home,
ORepetitive person-
job site or other location persontosellfrselling:quentlysalespersonpurchasedvisitsproductsthebuyer’sor services
ONonrepetitive person-to-
home, job site or other location to sell infrequently purchased products or services
OParty plans: salesperson offers products or services to groups of people through home or office parities ad demonstrations
Evaluating the Effectiveness of Direct Marketing
Cost per order (CPO): advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated
Customer Lifetime Value (CLTV): simple formula that is used to assist marketers in determining the dollar value associated with long-term relationship with a customer, thus evaluating his or her worth
Advantages of Direct Marketing
Selective reach
Segmentation capabilities
Frequency Potential
Testing
Timing
Personalization
Costs
Measures effectiveness
Disadvantages of Direct Marketing
Image factors (junk mail)
Accuracy (people move, change occupation)
Content support
Rising costs
Do not contact lists
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Objectives of Database Marketing
Improve selection of market segments
Stimulate repeat purchases
Cross-selling other products
Customers relationship management
Developing a Database
Sources
List brokers
Experion Simmons Market Research Bureau
U.S. Census Bureau
Standard Rate & Data Service
U.S. Postal Service
Direct Marketing Association
Effective Databases
RFM Scoring- used for analyzing customers value
Recency- how recently did the customer purchase
Frequency- how often do they purchase
Monetary Transaction- how much to they spend
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Chapter 15:
Know how the objectives (purposes) of websites have changed over the years, e.G., what was the primary purpose of websites when businesses first began to use the Internet?
Businesses put up websites primarily for information and a one-way flow of
information
Know and be able to give examples of the various communications objectives for marketers who employ the Internet as a communications vehicle, e.G., to create awareness, to generate interest, to disseminate information, to create a strong brand, etc.
Create awareness, generate awareness, disseminate information, create an
image, create a strong bong, stimulate trial, create buzz, gain consideration
Be able to define “e-commerce”: direct selling of goods and services using the internet
Be able to explain characteristics of Web 1.0 and Web 2.0 as well as the difference between them.
Web 1.0
Banner ads: used to create awareness
Regular Sponsorships: occur when a company pays to sponsor a section of a site
Content sponsorship: sponsor not only provides dollars in return for name association but also participates in providing the content itself
Pop-up ads
Interstitials: ads that appear while you wait
Paid searches
Behavioral targeting: based on advertisers targeting consumers by tracking their website surfing behaviors
Contextual ads: advertisers who target their ads based on the content of the web page
Rich media:
online commercials: appearing more often on the Net. Some appear before the content that the user is seeking called pre-rolls
video on demand
webisdoes
Web 2.0
Social media, social networking sites
Native advertising: a web advertising in which the advertiser attempts to gain
attention by providing valuable content in the content of the user’s experience-consumers can be misled because the information comes across as content not an ad
China is the most socially engaged (FB is not allowed)
primary motivations markets use social media is to gain information , entertainment and remuneration
primary motivations in a brand is consumer, contribute and create brand-related content
Really Simple Syndication (RSS): specification that uses XML to organize and format web-based content in a standard way. The difference between web content and an RSS feed is that the latter can send out notifications whenever new material is available
Companies tie in sales promotions to their websites
Websites have been used effectively to enhance and support the selling effort
Companies include provision for information about the company, its philanthropic activities, annual reports and more
Traditional measures: recall and retention, surveys, sales, tacking and ROI
Advantages and Disadvantages of the Internet
Target marketing
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Message tailoring
Interaction capabilities
Information access
Sales potential
Creativity
Exposure
Speed
Complement to IMC
Disadvantages
Measurement problems
Clutter
Potential for deception
Privacy
irritation