advertising procedures test 2

marketing plan
document that serves as a guide for the present and future marketing activities of an organization
mission statement
short description of organization’s purpose and philosophy
reminds planners & mktg partners what the organization is and what it stands for
situation analysis
detailed description of brand’s current marketing situation
part of marketing plan
SWOT analysis
uses facts contained in situation analysis to point out strengths, weaknesses, opportunities, and threats for the brand
marketing objectives
part of marketing plan
clear, quantifiable, realistic marketing goals that are to be accomplished within a defined time period
sales-target objective or communication objective
sales-target objective
goals related to increasing or maintaining sales volume and market share
communication objective
outcomes that can reasonably be associated with promotional activities:
increases in brand recognition/awareness
increased comprehension of brand’s attributes/benefits
more positive attitudes about a brand/favorable image
stronger intentions to try or buy a brand
DAGMAR
system for defining advertising goals for measured advertising results
emphasizes communication objectives
awareness, comprehension, conviction, and action
marketing strategy
how company plans to meet its marketing objectives
1. define particular target markets
2. determine strategic position
3. develop appropriate marketing mix for each target market
approaches for developing position strategy
1. product attribute
2. price/quality
3. use/application
4. product class
5. product user
6. product competitor
7. cultural symbol
tactics
determine specific short-term actions to be taken
internally, externally, by whom, when
bottom-up marketing
tactics > strategy > results
subliminal advertising
advertisements with messages supposedly embedded in illustrations just below threshold of perception
IMC plan
natural outgrowth of the marketing plan
prepared in similar way
directs companies advertising effors
IMC objective
declares what the marketer wants to achieve with respect to consumer awareness, attitude, preference
IMC strategy
blends elements of creative mix
describes how to reach objective
creative mix
target audience
product concept
communications media
advertising message
target audience
specific people IMC will reach
product concept
bundle of values marketer presents to consumer
consumer’s perception of a product as a bundle of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants/needs
communications media
all vehicles that might transmit the marketer’s message
IMC message
what company plans to say, how it plans to say it
verbally and nonverbally
percentage of sales method
IMC budget
based on % of last year’s sales, anticipated sales for next year, or combo of both
simple, cost-free, related to rev, considered safe
share of market method
share of voice method
attempt to link promotional dollars with sales objectives
best chance of maintaining company share of a market is to keep a share of IMC somewhat ahead of market share
objective/task method
budget buildup method
treats IMC as marketing tool for generating sales
1. define objectives
2. determine strategy
3. estimate cost
empirical research method
runs series of tests in different markets with different budgets to determine best level of advertising expenditure
market segmentation
identifying groups of people with certain shared needs and aggregating these groups into larger market segments according to their interest in the brand’s utility
large enough to target
reachable
behavioristic segmentation
grouped by buying behavior
determined mostly by user status, usage rate, purchase occasion, benefits sought
first step to identify likely prospects for mktg efforts
user status
segmentation
sole users, semi-sole users, discount users, trial/rejectors, aware non-triers, repertoire users
repertoire users
perceive two or more brands to have superior attributes and will buy at full price
volume segmentation
measure people’s usage rates to define consumers as light, medium, or heavy users
20% of all users consume 80% of the product
usage rates
extent to which consumers use a product
light, medium, heavy
purchase occasion
distinguished by when they buy or use a product/service
affected by frequency of need, fad, or season
benefits
segmented
gratifications or relief from problems offered by a particular brand, product, or service
benefit segmentation
prime objective of many consumer attitude studies
basis for many successful ad campaigns
symbolism
motivation for customers
what the brand means to them, to associates, or to some social reference group
geographic segmentation
one region has needs, wants, and purchasing habits that differ from other regions
demographic segmentation
define population groups by statistical characteristics
age, sex, ethnicity, education, occupation, income, etc.
geodemographic segmentation
demographic and geographic
psychographic segmentation
group people by values, attitudes, personality, lifestyle
view people as individuals with feelings/inclinations
VALS
psychographic segmentation
values, attitudes, and lifestyle
assigns consumers to one of 8 groups based on primary motivation and resources
primary motivation
achievement, ideals, or self-expression
pattern of attitudes and activities that help people reinforce, sustain, or modify their social and self-image
business marketers
industrial marketers
manufacturers, government agencies, wholesalers, retailers, banks, institutions that buy goods and services to help them operate
resellers
middlemen
businesses that buy products from manufacturers or wholesalers and then resell the merchandise to consumers or other buyers
NAICS codes
North American Industry Classification System codes
U.S. Census Bureau classifies all US bus
primary demand trend
projection of future consumer demand for a whole product category based on past demand and other mkt influences
target marketing process
determines look, content, feel of advertising
assessing various market segments, designating certain ones as the focus of mkt activities, designating mkt mixes to communicate with and make sale to targets
target market
group of segments the company wishes to appeal to, design products for, and tailor its marketing activities toward
four Ps
product
price
place
promotion
product element
start of marketing mix
good or service being offered and values associated with it
product life cycle
position in plc influences target market selected and type of advertising used
early adopters
willing to try new things
primary demand
consumer demand for the whole product category, not just company’s own brand
introductory phase
pioneering phase
company incurs considerable costs for education customers, building widespread dealer distribution, encouraging demand
costs are highest
profits are lowest
pull strategy
promotion activities aimed at inducing trial purchase and repurchase by consumers
sales promotion
direct inducement offering extra incentives all along the marketing route to accelerate the movement of the product from the producer to consumer
push strategy
promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers, retailers, and salespeople
growth stage
sales vol begins to rise rapidly
rapid market expansion
more competitors, first companies to enter market show best reward
maturity stage
market saturated with competing products and number of new customers dwindles
competition intensifies
profits diminish
increase promotional efforts, emphasize selective demand
selective demand
consumer demand for particular advantages of one brand over another
decline stage
may cease all promotion and phase products out quickly
fade slowly with minimal advertising
service
bundle of intangible benefits that satisfy some need or want
temporary in nature
usually derive from completion of a task
equipment-based service
relies mainly on use of specialized equipment
people-based services
relies on creative talents and marketing skills of individuals
position
own a word that ranks the product in prospect’s mind
way in which product is ranked in consumer’s mind by benefits it offers, way its classified/differentiated, or by relation to certain target markets
perceptible differences
readily apparent to consumer
hidden differences
not readily apparent
need IMC to inform consumers
induced differences
distinguishing characteristics of products effect through unique branding, packaging, distribution, merchandising, and advertising
brand
combination of name, words, symbols, or design that identifies the product and its source and distinguished it from competing products
media planning
conceive, analyze, and creatively select channels of communication that will direct advertising messages to the right people in the right place at the right time
audience objectives
specific types of people the advertiser wants to reach
media planners usually use geodemographic
media vehicles
particular magazines or shows
selected on how well it delivers or exposes the message to the media audience most closely resembling target consumer
distribution objectives
where, when, and how often advertising should appear
circulation
statistical measure of a print medium’s audience
RPC
readers per copy
variable used to determine the total reach of a given print medium
multiplied by number of vendor and subscriptions sales to determine total audience size
message weight
total size of audience for a set of ads or an entire campaign
gives idea of the scope of the campaign in a given market
expressed by gross impressions and gross rating points
advertising impression
possible exposure of advertising message to one audience member
OTS
OTS
opportunity to see
advertising impression
possible exposure of an ad message to one audience member
gross impressions
total of all audiences delivered by a media plan
rating
percentage of homes/individuals exposed to an advertising medium
TVHH
TV households
GRPs
gross rating points
adding ratings of several media vehicles
message weight of a given advertising schedule
reach
total number of unique/different people or households exposed, at least once, to a medium during a given period of time
frequency
intensity of a media schedule, based on repeated exposures to the medium or the program
continuity
duration of an ad message/campaign over a given period of time
effective reach
quality of exposure
measures number/percentage of audience who receive enough exposures for message to be truly received
effectived frequency
average number of times a person must see or hear a message before it becomes effective
advertising response curve
studies indicate that incremental response to advertising actually diminishes, rather than builds, with repeated exposure
recency planning
most advertising works by influencing the brand choice of consumers who are ready to buy
suggesting continuity of advertising is most important
five Ms
markets
money
media
mechanics
methodology
markets
various targets of a media plan
trade/consumer audiences
global, national, regional audiences
ethnic, socioeconomic groups
other stakeholders
media
all communications vehicles available to a marketer
mechanics
dealing creatively with available advertising media options
methodology
overall strategy of selecting and scheduling media vehicles to achieve the desired message weight, reach, frequency, and continuity
BDI
brand development index
sales potential of a particular brand in a specific market area
CDI
category development index
determines potential of the whole product category
spillover media
local media that many consumers in a neighboring country inadvertently receive
programmatic advertising
computers make decisions about what ads are inserted in what content providers
advertisers bid for audiences
willingness to pay and demographic match
audience
total number of people or households exposed to a medium
exposure value
only relates to the medium
value of a medium determined by how well it exposes an ad to the target audience
attention value
relates to advertising message and copy and medium
consideration in selecting media based on degree of attention paid to ads in particular media
motivation value
consideration in selecting media based on medium’s ability to motivate people to act
positive factors: prestige, good quality reproduction, timeliness, editorial relevance
CPM
cost per thousand
cost efficiency
cost of exposing the message to the target audience rather than to the total circulation
CPP
cost per point
mixed-media approach
combination of media
synergy
effect achieved when sum of the parts is great than expected from simply adding together individual components
continuous schedule
advertising runs steadily and varies little over the campaign period
flighting
alternates periods of advertising with periods of non
pulsing
mixes continuous and flighting
bursting
running same commercial every half hour on the same network during prime time
roadblocking
buying air time on all 3 networks simultaneously
blinking
scheduling technique
advertiser floods airways for one day on both cable and network to make it virtually impossible to miss the ads
individual brand
brand for each product
family brand
marketing diff products under same umbrella name
licensed brands
companies pay a substantial fee for the right to use another company’s brand name
brand equity
totality of what consumers, distributors, dealers feel and think about the brand over an extended period of time
copy points
copywriting themes
direct distribution
companies sell directly to end consumers or users
network marketing
multilevel marketing
individuals act as independent distributors for a manufacturer or private-label marketer
distribution channel
all firms and individuals that take title, or assist in it, to the product as it moves from the producer to consumer
intensive distribution
goods available at every possible location
minimal buying effort
profit on each unit is low, volume of sales is high
selective distribution
limit number of outlets
manufacturers cut distribution and promotion costs
exclusive distribution
selected wholesalers or retailers are granted exclusive rights to distribute a particular product
VMS
vertical marketing system
centrally managed distribution system that serves a group of stores or other bus
franchising
retail dealers pay a fee to operate under the guidelines and direction of the parent company or manufacturer
communication element
all marketing-related communications between seller and buyer
direct marketing
like taking the store to the customer
control, cost efficiency, accountability
collateral materials
many accessory items companies produce to integrate and supplement their advertising or PR activities
booklets, catalogs, brochures, films, etc.
marketing research
systematic procedures for gathering, recording, and analyzing new information
IMC research
uncovers info needed for making IMC decisions
systematic gathering and analysis of info to help develop or evaluate message strategies, individual promotions, and whole campaigns
IMC strategy research
seek info about creative mix: product concept, target audience, communication media, creative message
media research
IMC research
subscribe to syndicated research services that monitor and publish info on reach and effectiveness of media vehicles
pre-testing
increase likelihood of preparing most effective messages
post-testing
tracking
provides marketer with useful guidelines for future advertising
media classes
broad media categories – print, electronic, digital interactive, direct mail, out-of-home
media subclasses
newspapers/magazines, radio/tv
media vehicle
particular publication or program
media units
size or length of an ad
MIS
marketing information system
sophisticated set of procedures designed to generate a continuous, orderly flow of of info for use in making marketing decisions
informal research
exploratory
learn more about market, competition, and business enviornment
primary data
info collected by agency/company about a specific problem
expensive and time-consuming
secondary data
information previously collected or published, usually for another purpose
readily available
qualitative research
get general impression of market, consumer, product
insight into population and subject matter
quantitative research
i.e. survey
hard numbers about specific marketing solutions
projective techniques
unearth people’s underlying or subconscious feelings, attitudes, interest, opinions, needs, and motives
intensive techniques
in-depth interview
focus group
UX
user experience testing
UPC
universal product code
increases speed and accuracy and checkout
read codes with optical scanners
tell which products are selling and how well
clutter tests
test commercials shown with noncompeting control commercials to determine effectiveness, measure comprehension and attitude shifts, and detect weaknesses
attitude test
measure campaigns effectiveness in creating favorable image for company, brand, or products
recall test
reveal effectiveness of message components
measure what respondents noticed, not whether they actually buy the product
inquiry test
consumers respond to an offer for information or free sames
validity
results of a test have to be free of bias and reflect true status of the market
reliability
must be repeatable
produce approx the same result each time its administered
sample units
individuals, families, companies being surveyed
random probability samples
greatest accuracy
everyone has equal chance of being selected
nonprobability samples
easier, less expensive, less time consuming
no guarantee sample is representative, not everyone in universe given a fair chance