MKTG 409 Principles of Marketing Exam 4 Flashcards Texas A&M University

MKTG 409 Exam 4 Integrated Marketing Communications refer to the coordination of promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers A sharing of meaning through th ...

MKTG 409 Exam 4 Integrated Marketing Communications refer to the coordination of promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers A sharing of meaning through the transmission of information A person, group, or organization with a meaning it tries to share with a receiver or an audience The individual, group, or organization that decodes a coded message Coding Process or Encoding A source converts the meaning into a series of signs or symbols representing ideas or concepts The medium of transmission that carries the coded message from the source to the receiver Signs or symbols are converted into concepts and ideas. Anything that reduces the clarity and accuracy of the communication receiver's response to a decoded message The limit on the volume of information a communication channel can handle effectively • Determined by the least efficient component of the communication process Communication that builds and maintains favorable relationships by informing and persuading on or more audiences to view an organization positively and accept its products Possible objectives of promotion When an organization is the first to introduce an innovative product, it tries to stimulate Primary Demand. Primary Demand Demand for a product category rather than for a specific brand of product • Done through Pioneer Promotion Pioneer Promotion Selective Demand Promotion Mix 4 possible elements of a promotion mix: A paid non-personal communication about an organization and its products transmitted to a target audience through mass media a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Kinesic Communication Proxemic Communication Touching or Tactile Communication A broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders Non-personal communication in news-story form about an organization or its products, or both, transmitted through a mass medium at no charge an activity or material that acts as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or consumers. The producer promotes the product only to the next institution down the marketing channel Promotes directly to consumers to develop strong consumer demand for its products. Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel Word-of-mouth Communication Personal, informal exchanges of communication that customers share with one another about products, brands, and companies Buzz Marketing An attempt to incite publicity and public excitement surrounding a product through a creative event Viral Marketing A strategy to share a marketer's message, often through E-mail or online video, in a way that spreads dramatically and quickly Product Placement A form of advertising that strategically locates products or product promotions with entertainment media to reach the product's target markets Advertising can be classified as • Institutional • Advocacy Institutional Advertising Promotes organizational images, ideas, and political issues Advocacy Advertising Promotes a company's position on a public issue Product Advertising Promotes the uses, features, and benefits of products 2 types of product advertising • Pioneer • Competitive Pioneer Advertising Focuses on stimulating demand for a product category (rather than a specific brand) by informing potential customers about the product's features, uses, and benefits Competitive Advertising Attempts to stimulate demand for a specific brand by promoting the brand's features, uses, and advantages, sometimes through direct or indirect comparisons with competing brands Comparative Advertising Form of competitive advertising, to make direct product comparisons which compares the sponsored brand with one or more identified competing brands on the basis of one or more product characteristics. Reminder Advertising Tells customers that an established brand is still around and still offers certain characteristics, uses, and advantages Reinforcement Advertising Assures current users that they have made the right brand choice and tells them how to get the most satisfaction from that brand. Advertising Campaign Involves designing a series of advertisements and placing them in various advertising media to reach a particular target audience Advertising Platform Consists of the basic issues or selling points that an advertiser wishes to include in the advertising campaign Advertising Appropriation The total amount of money a marketer allocates for advertising for a specific time period Objective-and-task Approach Most logical technique used to determine the advertising appropriation. Budgeting for an advertising campaign by first determining its objectives and then calculating the costs of all the tasks needed to attain them • Marketers sometimes have trouble accurately estimating the level of effort needed to attain certain objectives Percent-of-sales Approach More widely used, marketer simply multiply the firm's past sales, plus a factor for planned sales growth or decline, by a standard percentage based on both what the firm traditionally spends on advertising and the industry average. • It is based on the incorrect assumption that sales create advertising rather than the reverse Competition-matching Approach Marketers try to match their major competitor's appropriations in absolute dollars or to allocate the same percentage of sales for advertising that their competitors do. Arbitrary Approach Usually means a high level executive in the firm states how much to spend on advertising for a certain period Media Plan Sets forth the exact media vehicles to be used (specific magazines, television stations, social media, newspapers, and so forth) and the dates and time the advertisements will appear Reach Refers to the percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period Frequency Number of time these targeted consumers are exposed to the advertisement Cost Comparison Indicator Lets and advertiser compare the cost of several vehicles with a specific medium (such as two magazines) in relation to the number of people each vehicle reaches. Cost per Thousand Impressions (CPM) The cost comparison indicator for magazines; it shows the cost of exposing 1,000 people to one advertisement 3 types of media schedules • Continuous • Flighting • Pulsing Continuous Advertising runs at a constant level with little variation throughout the campaign period Flighting Schedule Advertisements run for set periods of time, alternating with periods in which no ads run. Pulsing Schedule Combines continuous and flighting schedules: during the entire campaign, a certain portion of advertising runs continuously, and during specific time periods of the campaign, additional advertising is used to intensify the level of communication with the target audience Regional Issues Advertisements and editorial content of copies appearing in one geographic area differ from those appearing in other areas. Copy The verbal portion of an advertisement and may include headline, sub-headlines, body copy, and a signature AIDA Model Advertising should create Awareness, produce Interest, create Desire, and ultimately result in a Purchase (Action) Story Board Depicts a series of miniature television screens showing the sequence of major scenes in the commercial • When parallel script is approved, the copy writer and artist combine copy with visual material using this • Def.- A blueprint that combines copy and visual material to show the sequence of major scenes in a commercial Artwork Consists of an advertisement's illustrations and layout Illustrations often photographs, but can also be drawings, graphs, charts, and tables Layout the physical arrangement of the illustration and the copy Pretest An evaluation performed before the campaign Consumer Jury A panel of a product's existing or potential buyers who pretest ads. Post Test Evaluation of advertising effectiveness after the campaign Recognition Test A posttest in which respondents are shown the actual ad and are asked if they recognize it Recall can be measured through either: • Unaided recall test • Aided recall test Unaided Recall Test A posttest in which respondents are asked to identify advertisements they have seen recently but are not given any clues Aided Recall Test A posttest that asks respondents to identify recent ads and provides clues to jog their memories Single Source Data Individuals behaviors are tracked from television sets to check out counters Public Relations Communication efforts used to create and maintain favorable relations between an organization and its stakeholders Publicity A news story type of communication about an organization and/or its products transmitted through a mass medium at no charge. The most common publicity based relations tool is The news release News Release Sometimes called a press release, which is usually a single page of type written copy containing few than 300 words and describing a company event or product Feature Article A manuscript up to 3,000 words prepared for a specific publication Captioned Photograph A photograph with a brief description of its contents Press Conference A meeting used to announce major news events Environmental Monitoring Identifies changes in public opinion affecting an organization Public Relations Audit Used to asses an organization's image among the public or to evaluate the effect of a specific public relation program Communications audit A complete analysis of an organization’s communications processes, both internal and external. The audit is designed to reveal how an organization wants to be perceived by designated publics, what it is doing to foster that perception and how it is actually perceived. Social Audit Measures the extent to which stakeholders view it as being socially responsible Personal Selling Paid personal communication that attempts to inform customers and persuade them to purchase products in an exchange situation Prospecting Developing a database of potential customers Preapproach Involves identifying key decision makers, reviewing account histories and problems, contacting other clients for information, assessing credit histories and problems, preparing sales presentations, identifying product needs, and obtaining relevant literature. Approach manner in which a salesperson contacts a potential customer Closing stage in the personal selling process when the salesperson asks the prospect to buy the product Follow-up stage salesperson determines whether the order was delivered on time and installed properly, if installation was required Order Getters salespeople who sell to new customers and increase sales to current customers • Creative Selling Order getting is frequently divided into 2 categories • Current Customer Sales • New-Business Sales Current Customer Sales These salespeople seek more sales from existing customers by following up on previous sales. New-Business Sales Personnel locate prospects and turn them into buyers Order Takers Primarily seek repeat sales, generating the bulk of many firms' total sales 2 groups of order takers • Inside order takers • Field order takers Inside Order Takers Order Clerks/Salesclerks... typically answer simple questions, take orders, and complete transactions with customers. Field Order Takers salespeople who travel to customers where they develop interdependent relationships. Improvements: small computers and inventory and order-tracking capabilities Support Personnel Sales staff members who facilitate selling but usually are not involved solely with making sales. 3 common type of Support Personnel • Missionary • Trade • Technical Missionary Sales People Usually employed by a manufacturer, who assist the producer's customers in selling to their own customers • Detail Reps Trade Sales People Sales people mainly in helping a producer's customers promote a product Technical Salespeople Give technical assistance to organization's current customers, advising them on product characteristics and applications, system designs, and installation procedures Team Selling The use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process Relationship Selling The building of mutually beneficial long-term associations with a customer through regular communication over prolonged periods of time Sales force is directly responsible for generating sales revenue Recruiting Developing a list of qualified applicants for sales positions 3 basic compensation methods • Straight Salary • Straight Commission • Combination of the two Straight Salary Paying salespeople a specific amount per time period, regardless of selling effort Straight Commission Salespeople's compensation is determined solely by sales for a given period Combination Compensation plan Salespeople receive a fixed salary plus a commission based on sales volume. Sales Promotion an activity or material, or both, that acts as a direct inducement, offering add value or incentive for the product, to resellers, salespeople, or consumers Consumer Sales Promotion Methods Sales promotion techniques that encourage consumers to patronize specific stores or try particular products. Coupons Written price reductions aimed to prompt customers to try new or establish head products, increase sale volume quickly, attract repeat purchasers, or introduce new package sizes or features. Cents-off-offers buyers pay a certain amount less than the regular price shown on the label or package Money Refunds Consumers submit proof of purchase and are mailed a specific amount of money Rebates Consumer is sent a specified amount of money for making a single product purchase Point-of-purchase (POP) materials Include outdoor signs, window displays, counter pieces, display racks, and self service cartons to attract customers Demonstrations Sales promotion methods a manufacturer uses temporarily to encourage trial use and purchase of a product or show how a product works. Free Samples increase sales volume in early stages of a products life-cycle, and obtain desirable distribution Premiums Items offered free or at a minimal cost as a bonus for purchasing a product Consumer Contests Consumers compete for prizes based on their analytical or creative skills. Consumer Games Individuals compete for prizes based primarily on chance Consumer sweepstakes Entrants submit their names for inclusion in a drawing for prizes Trade sales promotion methods Methods intended to persuade wholesalers and retailers to carry a producers products and market them aggressively -Buy back allowance, buying allowances, scan back allowance, merchandise allowances, cooperative advertising, dealer listing, dealer loader, premium or push money, sales contests Buying Allowance A temporary price reduction to resellers for purchasing specific quantities of a product. Buy-back Allowance Sum of money that a producer gives to a reseller for each unit the reseller buys after an initial promotional deal is over Scan-back Allowance Manufacturer's reward to retailers based on the number of pieces moved through the retailers' scanners during a specific time period Merchandise Allowance Manufacturer's agreement to pay resellers certain amounts of money for providing promotional efforts like advertising or point-of-purchase displays Cooperative Advertising Arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media cost for advertising the manufacturer's products Dealer Listings Advertisements promoting a product and identifying participating retailers that sell the product Free Merchandise Reward given to resellers that purchase a stated quantity of products Dealer Loader A gift to a retailer that purchases a specified quantity of merchandise Premium Money (push money) Additional compensation offered by the manufacturer to salespeople as an incentive to push a line of goods Sales Contest Sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievement Digital Media Electronic media that function using digital codes: When we refer to digital media, we are referring to media available via computer, cellular phones, smartphones, and other digital devices that have been released in recent years Digital Marketing Uses all digital media, including the internet and mobile and interactive channels, to develop communication and exchanges with customers E-Marketing The strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing. Characteristics that distinguish online media from traditional marketing • Addressability • Interactivity • Accessibility • Connectivity • Control Adressability The ability of the marketer to identify customers before they make a purchase Interactivity The ability of customers to express their needs and wants directly to the firm in response to its marketing communications Accessibility The ability for marketers to obtain digital information Accessibility Allows customers to find information about competing products, prices, and reviews and become more informed about a firm and the relative value of its products Connectivity The ability for consumers to be connected with marketers along with other consumers Control The customer's ability to regulate the information they view as well as the rate and exposure to that information Main distinguishing characteristic of digital media • Interactivity 2 major trends have caused consumer-generated information to gain importance 1. The increased tendency of consumers to publish their own thought, opinions, reviews, and product discussions though blogs or digital media. 2. Consumer's tendencies to trust other consumers over corporations. Consumers often rely on recommendations of friends, family, and fellow consumers when making purchasing decisions Social Network Web-based meeting place for friends, family, co-workers, and peers that allow users to create a profile and connect with other users for purposes that range from getting acquainted, keeping in touch, and building a work-related network Enterprise 2.0 Term coined to describe firm's efforts to use cutting edge technology associated with social networks and blogs to assist in workplace connections. Blogs Web-based journal in which writers can editorialize and interact with other Internet users Wiki A type of software that creates an interface that enable users to add or edit the content of some types of websites Podcast Audio or video files that can be downloaded from the internet with a subscription that automatically delivers new content to listening devices or personal computers Common Mobile marketing tools • SMS messages • Multimedia messages • Mobile advertisements • Mobile websites • Location-based networks • Mobile Applications SMS Messages Test messages of 160 words or less. Have been an effective way to send coupons to prospective customers Multimedia Messages Allows companies to send video, audio, photos, and other types of media over mobile devices Creators Are those consumers who create their own media outlets, such as blogs, pod-casts, consumer-generated videos, and wikis Social Technographics Profile 7 Segmants • Creators • Conversationalist • Critics • Collectors • Joiners • Spectators • Inactives Conversationalist • Update status on social networking sites • Post updates on twitter Critics • Post rating/reviews of products or services • Comment on someone else's blog • Contribute to online forums • Contribute to/edit articles in a wiki Joiners • Maintain profile on a social networking site • Visit social networking sites Spectators • Read blogs • Watch video from other users • Listen to podcasts • Read online forums • Read customer rating/reviews Collectors • Use RSS feeds • Add tags to webpages or photos • "vote" for websites online Push-pull Dynamic The firm that provides a product will push to get that product in front of the consumer, while at the same time connectivity aids those channel members that desire to find each other- the pull side of the dynamic Online Fraud Any attempt to conduct fraudulent activities online, Including deceiving consumers into releasing personal information 4 Ps Product- what the good service/ idea is Price- what is exchanged for the product Promotion- means of communication between seller and buyer about the product Place- means of getting the product to teh consumer Role and Objectives of Promotion 1. create awareness 2. stimulate demand 3. encourage product trial 4. identify prospects 5. retain loyal customers 6. facilitate reseller support 7. combat competitive promotionl efforts 8. reduce sales fluctuations Creating Awareness • awareness is crucial to initiating product adoption process • Especially important when product is unfamiliar Promotion Goal: Encouraging Product Trial • Product trial: designed to move customers through product adoption process • Trial techniques: free samples, coupons, test drives, limited free-use offers, contests and games techniques Identifying Prospects • Direct Response forms, customer information banks • contest and activities • recomendations Facilitating Reseller Support • Maintain sound working relationships • Resellers view promotion as form of support • Share promotional expense • Special offers/buying powers Comabatting competitive promotional efforts • Typically defensive • designed to hold market share or positioning 4 possible elements of promotion mix - advertising - personal selling - public relations - sales promotion (plus Word of mouth) Guerrilla Tactics and Buzz Marketing Attempts to incite publicity and public excitement surrounding a product through a creative event and get people talking about it