Marketing Test 6

What are the parts of the communication process?
Sender
Encoding: putting thought into symbolic form.
Message: Set of symbols sender transmits.
Media: Channels thought moves through from
sender to receiver.
Decoding: Receiver assigns meaning to
symbols encoded.
Receiver
Response: Receiver reactions to the message.
Feedback: Receiver’s response communicated
back to the sender.
Noise: Unplanned distortion that makes the receiver get a different message than the sender intended.
How do the parts of the communication process translate into marketing promotions?
The sender and receiver are the major parts of communication. The message and the media are the major communication tools. Encoding, decoding, response and feedback are the major communication functions.
What must marketers understand to communicate with customers?
The customer’s field of experience.
Explain why the KFC ad on Walking dead was troubling.
The ad came directly after a shot of zombies guzzling a dead body, the decoding of the message was skewed due to the relations between chicken and the dead body.
Five main categories of promotion?
Advertising
Sales promotion
Personal selling
Public relations
Direct and digital marketing
Approximate amount of spending in each category of promotion?
Advertising: $160 Billion
Promotions: $40 billion
Sponsorships: $20 billion
Social media: $5 billion
Cause: $2 billion
What are the positives and negatives of promotion?
Advertising: reach/cost
Promotions: Purchase incentive/ Bad for branding
PR: Credibility / Lack of control
Selling: Customizable / Cost
Direct: Customizable / Low response
“Nature of Each Promotional Tool”
Got it.
What is breakage in regards to sales promotions?
What is an argument for and against breakage?
What are the methods of promotion budgeting?
Affordable method: Set the promotion budget at a level they think they can afford.

Percentage-of-sales method: Setting promotion budget at a certain percentage of current or forecasted sales.

Competitive-parity method: Setting promotion budget to match competitors’ outlays.

Objective-and-task method: MOST LOGICAL. Company sets promotion budget based on what it wants to accomplish with promotions.

Which method of promotion budgeting is most representative of the marketing concept?
Objective and task method: develops the promotion budget by: 1)defining promotion objectives, 2) determining what to do to meet these objectives, 3) estimating the costs of performing these tasks.
What are the deficiencies of each promotion method?
Advertising: completely ignores the effects of promotion on sales, places promotions last on spending priorities, often results in underspending.

P-o-S method: Incorrectly views sales as the cause of promotion, not the result, based on the availability of funds.

C-P method: Companies differ, there is no way to tell which budget would work for a particular company.

O-a-T method: Most difficult, hard to figure out what which specific tasks need to be done to accomplish promotion goals.

What is a “pull” and “push” strategy?
Pull: spending a lot on advertising and promotion to get the customer to buy, creating a demand vacuum that pulls the product through the channel. EX: Axe body spray commercials aimed at teen population, teens demand it from Walmart, CVS, they demand it from Unilever.

Push: using the sales force and trade promotion to push the product through the channel to reach customers. EX: John Deere and Lowe’s.

What is integrated marketing communications?
The concept of designing market communications programs that coordinate all promotional activities.
What two things does IMC help a firm obtain?
What is IMC not?
The same repeated brand on every promotional platform. This can lead to an overused brand and a boring look and feel, causing a lack of connection with customers.
EX: Kraft has smaller design teams to come up with separate ideas.
How is the overall use of promotion changing? What are three factors pushing this change?
CUSTOMERS are changing: they are better informed through the internet to find info on their own and can connect easily with other customers to exchange brand info.

MARKETING STRATEGIES are changing: Moving away from mass marketing and instead focusing on building closer relationships with customers.

DIGITAL TECHNOLOGY is advancing: digital and social media have given birth to a more targeted, social and engaging marketing communications model.

What are touch points?
Any point where there is an interface between an organization and a stakeholder. An interface can be through a product, front line employee, marketing communication, etc.
What is silo mentality?
A mindset present when certain departments or sectors do not wish to share information with others in the same company.
Why is IMC hard?
Companies have to find a balance between integrating the brand enough, but not making it too similar – “matching luggage”- to where it gets boring across all platforms.
How well did Nike’s campaign do as compared to other companies affiliated with the World Cup?
Excellent, and it was not even a sponsor of the World Cup.
What does advertising spending fluctuate with?
The economy
What does this tell us about firm’s advertising spending? How do firms see advertising?
Most likely as the last thing on their list to spend on.
Given the marketing concept, how should firms see advertising?
What is AIDA?
Attention
Interest
Desire
Action
Do advertisements have to have all the AIDA parts to be good?
No, but the AIDA model suggests the desirable qualities of a good message.
What are the different types of advertising appeals?
Rational: Facts
Emotional: Feelings (Fear, humor)
Moral: Do something good
Sex: Self explanatory
Bandwagon: Everyone’s doing it
What happens if fear, humor, and sex appeals do not have a link with why someone buys a product?
The message is distorted, customers do not develop a desire for the product, AIDA doesn’t work.
Can you combine appeals?
Yes, especially with humor.
Can an appeal such as fear or humor go too far?
Some people say yes, Mr. Wolter does not agree.
What is reach and frequency?
Reach: Number of different people exposed to an ad

Frequency: Average number of times a person is exposed to an ad

What is CPM and how do you calculate it?
CPM: Cost per thousand impressions

CPM=
Cost of ad/Audience size X 1,000

Is the Super Bowl considered to be a good buy?
Yes, because your ad reaches way more people than the money it takes to buy it.
Why may the Super Bowl be considered a bad buy?
It doesn’t get played as much due to the popularity of commercials.
What is content marketing?
Creating, inspiring and sharing brand messages and conversations with and among customers across a fluid mix of paid, owned, earned and shared channels.
What is the difference between paid, owned and earned media?
Paid: Promotional channels paid by the marketer. (Tv, radio, print, online, digital media…)

Owned: promotional channels owned and controlled by the company. (Company websites, corporate blogs, owned social media pages…)

Earned: PR channels and other media not directly paid for or controlled by the marketer but that include the content because of viewer, reader or user interest.

What is permission marketing?
The solicitation of a consumer’s consent (called “opt-in”) to receive e-mail and advertising based on personal data supplied by the consumer.
What are the conceptual differences between inbound and outbound marketing?
Inbound marketing focuses on earning a customer’s attention.

Outbound marketing tries to find customers and grab their attention in a specific moment.

What is viral marketing?
A promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites and blogs.
What is STEPPS?
Social currency: People want to look good to others, so find what makes people feel like insiders.

Triggers: Grow your content so that people are frequently triggered to think about your product or idea.

Emotion: Emotional content goes viral, focus on feelings rather than function.

Public: More public something is, the more likely people will imitate it.

Practical value: Useful things get shared, highlight value and package knowledge so that people can pass it on.

Stories: A narrative or story that people want to tell carries your idea in a long way.