Advertising & Promotion

Integrated Marketing Communications (IMC)
Coordinating various promotional elements and other marketing activities that communicate with a firm’s customers – tries to show the need for companies to connect with customers based on trust, transparency, engagement, authenticity
Micromarketing
Viewing audiences are moving from the traditional broadcast networks to more narrowly targeted programs on cable networks (MTV, ESPN, VH1)
Brand Identity
Combination of many factors: name, logo, symbols, design, packaging, performance of a product or service as well as the image or type of associations that come to mind when consumers think of a brand (Intangible asset of added value/goodwill)
Promotion
Coordination of all seller-iniated efforts to set up channels of information and persuasion in order to sell goods/services or promote an idea
Promotional Mix includes…
1. Advertising
2. Direct Marketing
3. Digital/Internet marketing
4. Sales Promotion
5. Publicity
6. Personal Selling
Advertising
Any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor
National Advertising
Advertising done on a nationwide basis or in most regions of the country
Retail/Local Advertising
Retail/Local merchants to encourage consumer to shop at a specific store, use a local service, or patronize a particular establishment
Primary Demand
Designed to stimulate demand for the general product class or entire industry
Selective Demand
Advertising focus on creating demand for a specific company’s brand
Business to Business Advertising
Targeted at individuals who buy or influence the purchase of industrial goods/services for their companies
Professional Advertising
Targeted to professionals – doctors, lawyers, dentists, engineers, professors
Trade Advertising
Targeted to marketing channel members such as wholesalers, distributers, and resell the manufacturer’s branded products to they customers
Direct Marketing
Organizations communicate directly with target customers to generate a response and/or a transaction
Direct-Response Advertising
Product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer
Interactive Media
Allows for a 2-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 that are used to create, share, and exchange content
Sales Promotions
Provide incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales
Consumer-Oriented Sales Promotion
Targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes
Trade-Oriented Sales Promotion
Targeted toward marketing intermediaries such as wholesalers, distributors, and retailers
Publicity
Refers to non-personal communications regarding an organization, product, service, or idea not directly paid for or under identified sponsorship – press releases, press conferences, feature articles, photographs, films, videos
Public Relations
Management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest and executes a program of action to earn public understanding/acceptance
Personal Selling
Form of person to person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product
A Contact (Touch Point)
Refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it
Company Created Touch Points
Planned communications created by company such as advertisements
Intrinsic Touch Points
Interactions that occur with a company/brand during the process of buying/using the product/service such as discussions with retail sales personnel or customer service reps
Unexpected Touch Points
Unanticipated references or information about a company or brand that a customer/prospect receives that is beyond the control of the organization (Word of Mouth)
Customer Initiated Touch Points
Interactions that occur whenever a customers/prospect contacts a company
Marketing Plan
Written document that describes the overall marketing strategy/programs developed for an organization
Internal Analysis
Assesses relevant areas involving the product/service offering and the firm itself
External Analysis
Focuses on factors such as characteristics of the firms customers, market segments, positioning strategies, competitors
Marketing Objectives
Refers to what is to be accomplished by the overall marketing program
Communication Objectives
Refers to what the firm seeks to accomplish with its promotional program
Strategic Marketing Plan
Helps an organization guide the allocation of its resources
Market Segments
Target markets and opportunities a company wishes to pursue
Market Opportunities
Areas where there is favorable demand trends, where the company believes customer need and opportunities are not being satisfied and where it can compete effectively
Competitive Advantage
Something special a firm does or has that gives it an edge over competitors
Target Marketing
Involves four basic steps
1. Identify markets with unfulfilled needs
2. Segmenting the market
3. Targeting specific segments
4. Positioning one’s product through marketing strategies
Marketing Segmentation
Dividing the market into distinct groups that…
1. Have common needs
2. Will respond similarly to a marketing action
80-20 Rule
20% of their buyers account for 80% of their sales volume
Benefit Segmentation
Consumers purchase products – they are generally trying to satisfy specific needs and/or wants
Positioning
Relates to the image of the product and/or brand relative to competing product/brands
Salient Attributes
Those that are important to consumers and are the basis for making a purchase decision
Repositioning
Strategy involves altering or changing a product or brand position – generally done when sales decline or other opportunities in different markets
Product Symbolism
Refers to what a product or brand means to consumers and what they experience in purchasing or using the product
Marketing Channels – P. 62
The place element of marketing mix are “sets of interdependent organizations involved in the process of making a product or service available for use or consumption”
Direct Channels
Selling to consumers directly and not using channel intermediaries
Indirect Channels
Usually using a network of wholesalers (institution that sell to other resellers) and/or retailers (which sell primarily to final consumer)
Promotional Push Strategy
Goal of this strategy – push the product through the channels of distribution by aggressively selling and promoting the item to the resellers or trade
Promotional Pull Strategy
Spending money on advertising and sales promotion efforts directed toward the ultimate consumer
Clients
Key participants in advertising – they have products, services, cause to be marketed
Advertising Agency
Outside firm that specializes in the creation, production, and/or placement of the communications message and that may provide other series to facilitate the marketing and promotions process
Media Organizations
Major participant in the advertising and promotions process
Special Marketing Communications Services
They include direct-marketing agencies, sales promotion agencies, digital/interactive agencies, and the public relations firms
Collateral Services
Wide range of support functions used by advertiser, agencies, media organizations, specialized marketing communication firm
Advertising Manager
Person in an organization who is responsible for all promotions EXCEPT sales
Centralized System
Advertising manager controls the entire promotions operations, including: budgeting, coordinating creations, and production of ad planning media schedules, and monitoring and administering the sales promotion programs for all the company’s products/services
Decentralized System
Organization that has separate manufacturing, research/development, sales, and marketing departments for various division, product lines, or businesses
Brand Manager
Position in an organization who is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance
Category Management System
Position includes category mangers as well as brand and advertising managers
Billings
Amount of client money agencies spend on media purchase and other equivalent activities
Superagencies
Ad agencies that provide clients with integrated marketing communication services worldwide
Full-Service Agency
Ad agency that offers it clients a full range of marketing, communication, promotional services including planning, creating, and producing the advertising
Account Executive
Responsible for understanding the advertiser’s marketing and promotional needs and interpreting them to agency personnel
Account Planners
Individuals that gather information that is relevant to the client’s product or serve and can be used in the development of the creative strategy’s as well as other aspects of the IMC campaign
Copywriters
Individuals who conceive the ideas for the ads and write the headlines, subheads, and body copy
Department System
Each of the agency functions shown on page 82 – set up as a separated department and is called on as needed to perform its specialty and serve all of the agency’s clients
Group System
Individuals from each department work together in groups to service particular accounts
Creative Boutique
Small ad agencies that provide only creative services and have long been an important part of the advertising industry
Media Specialist Companies
Companies that specialize in the buying of media, (radio & TV)
Commission System
Ad agency receives a specified commission (15%) from the media on any advertising time or space it purchases for its client
Negotiated Commission
System whereby the commissions average from 8-10% or are based on a sliding scale that becomes lower as the clients media expenditures increase
Fixed Fee Method
Agency charges a basic monthly fee for all of its services and credits to the client any media commissions earned
Fee-Commission Combination
Media commissions received by the agency are credited against the fee
Cost-Plus System
Client agrees to pay the agency a fee based on the costs of its work plus some agreed on profit margin (% of total cost)
Incentive-Based System
New variation has emerged in the form of value-based compensation whereby agencies are compensated above their basic cost
Percentage Charges
Another way to compensate an ad agency based on various services the agency purchase from outside providers
Financial Audit
Focuses on how the agency conducts its business to an account
Qualitative Audit
Focuses on the agency’s efforts in planning, developing, and implementing the clients advertising programs and considers the results achieved
Direct-Marketing Agencies
Provide a variety of services including database analytics and management, direct mail, research, media services, and creative production capabilities
Sales Promotion Agency
Does nothing other than sales/promotion programs such as contests, refund/rebates, incentives, sampling
Public Relations Firm
Develops and implements programs to manage the organization’s publicity, image, and affairs with consumers and other relevant publics
Digital/Interactive Agencies
Specialize in the development and strategic use of various digital marketing tools (websites, banner ads, mobile marketing)
Source
Has information to share – Communication
Encoding
Putting thoughts, ideas, information into a symbolic form
Channel
Method by which the communication travels from the source to the receiver
Mass Media
Non-personal channels of advertising
Buzz Marketing
New name for World of Mouth
Viral Marketing
Act of propagating marketing relevant messages through the help and cooperation of individual consumers
Seeding
Identifying and choosing the initial group of consumers who will be used to start the diffusion/spreading of the message
Decoding
Process of transforming the sender’s message back into thought
Field of Experience
Experiences, perceptions, attitudes, and values someone brings to the communication situation
AIDA Model
Stages a salesperson must take a customer through in the persona-selling process
Innovation Adoption Model
Stages a consumer passes through in adopting a new product/service
Hierarchy of Effects Model
Shows the process by which advertising works; assumes a consumer passes through a series of stems in sequential order from initial awareness to actual purchase
Information Processing Model
Represents stages a consumer passes through in adopting a new product/service
Standard Learning Model
Consists of learn – feel – do sequence
Dissonance/Attribution Model
Consists of do – feel – learn (where consumers must choose between 2 alternatives that are similar in quality but are complex and may have hidden or unknown attributes
Low-Involvement Hierarchy
Consist of learn – do – feel (sequence characterizes situation of lower consumer involvement in the process)
Cognitive Response
Thoughts that occur to them (consumer) while reading, viewing, hearing a communication
Support Derogations
Thoughts that affirm the claims made in a message
Source Bolsters
Negative thoughts about the spokesperson/organization
Ad Execution – Related Thoughts
Favorable/Unfavorable
Importance: their effect on attitudes toward the advertisement/brand
Elaborations Likelihood Model
Persuasive communications (an ad) that lead to persuasion by influencing attitudes
Central Route to Persuasion
Receiver is viewed as a very active/involved participant in the communication process whose ability/motivation to attend, comprehend, and evaluate messages are high
Peripheral Route to Persuasion
Receiver is viewed as lacking the motivation/ability to process information and is not likely to engage in detailed cognitive processing
Persuasion Matrix
Helps marketers see how each controllable element interacts with the consumer’s response process
Sleeper Effect
Persuasiveness of a message increases with the passage of time
Attractiveness
Similarity, familiarity, like-ability
Source Power
A source has power when they can actually administer rewards/punishments to the reciever (able to induce a response)
Compliance
When receiver perceives a source as having power
Primacy Effect
Whereby information presented FIRST is most effective
Recency Effect
LAST arguments in an ad presented are most effective
One-Sided Messages
Mentions only positive attributes/benefits
2 Sided – mentions BOTH + and –
Refutational Appeal
Communicator present both sides of an issues and then refutes the opposing viewpoint
Comparative Advertising
Practice of either directly/indirectly naming competitors in an ad and comparing one or more specific attributes
Fear Appeals
Evoke this emotional response and arouse individual to take steps to remove the threat
Wear Out
Refers to humorous ads – may wear out faster than serious appeals
Qualitative Media Effect
Influence the medium has on a message
Clutter
Amount of advertising in a medium