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Exams > Advertising Final Exam Chapter 10-16 > Flashcards

Advertising Final Exam Chapter 10-16 Flashcards

1
Q

Media Planning

A

Series of decisions involved in delivering promotional message to prospective consumers

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2
Q

media Objectives

A

Objectives formulated to organize a media plan.

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3
Q

Media Strategies

A

Plans of action designed to attain the media objectives

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4
Q

Medium

A

General category of available delivery systems.

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5
Q

Media Vehicle

A

Specific carrier within a medium category.

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6
Q

Reach

A

Measure of the number of different audience members exposed at least once to media vehicle in a specified period.

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7
Q

Coverage

A

Potential audience that might receive message through a vehicle

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8
Q

Frequency

A

Number of times receiver is exposed to media vehicle in a specified period.

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9
Q

The media plan

A

-Guides media selection
-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

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10
Q

Problems with media planning

A

-Insufficient information (sweeps)
-Inconsistent terminologies
-Time pressures
-Difficulty measuring effectiveness

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11
Q

Developing a media plan

A
  1. Market analysis
  2. Establishment of media objectives
  3. Media strategy development and implementation
  4. Evaluation and follow-up
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12
Q
  1. Market Analysis (Primary questions)
A
  1. To who shall we advertise?
    • clarification of target market
    • access secondary sources of data
      +Experian Simmons National Consumer Study
      +GfK Mediamark Research Inc. (GfK MRI)
  2. Where to promote?
    Survey of Buying Power Index, BDI, CDI.
  3. What internal and external factors are operating?
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13
Q

Internal and External Factors Influencing Media Strategies

A

Internal factors
-Size of the media budget
-Managerial and administrative capabilities
-Organization of the agency
External factors
-Rising costs of media
-Changes in technology
-Competitive factors

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14
Q

2.Establishing media objectives

A

Media Objectives:
-Goals to be attained by the media program
-Media plan is written to fulfill the prescribed objectives
-Media Objectives answer the question What?

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15
Q
  1. Media strategy development
A

Target market coverage
Geographic coverage
Scheduling
Reach versus frequency (and recency)
Creative aspects and mood
Flexibility
Budget considerations
The media mix

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16
Q

Target audience coverage

A

See pie charts for:
Target market proportion
Full market coverage
partial market coverage
coverage exceeding market

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17
Q

Geographic coverage

A

Strategy of geographic weighting in which geographic areas receive differential amounts if media emphasis

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18
Q

Identification of market support defined by

A

Regions: Northwest
States: Minneapolis
City Size: 100M+
Market: minneapolis

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19
Q

Three scheduling methods

A

Continuity- constant, high costs, overexposure, limited allocation
Flighting- cost efficient, more than one medium, wear out, lack of awareness, vulnerability to competition
Pulsing- all of the same as previous two methods

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20
Q

Reach versus Frequency

A

Reach
-the number of potential audience members exposed once to a media vehicle in a given period of time (unduplicated audience)
-High level for new brands/products and at later stages of hierarchy

Frequency
-the number of times the receiver is exposed to the media vehicle in a given time period

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21
Q

Factors Important in Determining Frequency Levels

A

Marketing Factors
Message factors
Media Factors

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22
Q

Marketing factors

A

Brand history
Brand share
Brand loyalty
Purchase cycles
Usage cycle
Competitive share of voice
Target group

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23
Q

Message factors

A

Message complexity
Message uniqueness
New versus continuing campaigns
Image versus product sell
Message variation
Wearout
Advertising units

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24
Q

Media Factors

A

Clutter
Editorial environment
Attentiveness
Scheduling
Number of media used
Repeat exposures

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25
Q

Creative aspects and mood

A

Creative Aspects
-need to employ a medium which will support the strategy
-EX: creation of emotional appeal - TV
-EX: communication technical product information - magazines/nsp
Mood
-environment of the media chosen or the specific vehicle selected

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26
Q

Flexibility

A

An effective media strategy requires a degree of flexibility to address the following
Market opportunities
Market threats
Availability of media
Changes in media or media vehicles

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27
Q

Budget considerations

A

Absolute cost: Actual total cost required to place the message
Relative cost: Relationship between price paid for advertising time or space and the size of audience delivered
Used to compare media vehicles

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28
Q

Media Mix

A

-Adds more versatility to the media strategies
-Increases coverage, reach, and frequency levels
-Improves the likelihood of achieving overall communications and marketing goals

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29
Q

Television pros and cons

A

+
Mass coverage and high reach
Impact of sight, sound, and motion
High prestige
Low cost per exposure
Attention getting
Favorable image

-
Low selectivity
Short message life
High absolute cost
High production costs
Clutter
distrust

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30
Q

Radio pros and cons

A

+
Local coverage
Low cost
High frequency
Flexible
Low production costs
Well-segmented audiences

-
Audio only
Clutter
Low attention getting
Fleeting message

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31
Q

Magazines pros and cons

A

+
Segmentation potential
Quality reproduction
High information content
Longevity
Multiple readers

-
Long lead time for ad placement
Visual only
Lack of flexibility

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32
Q

Newspapers pros and cons

A

+
High coverage and low cost
Short lead time for placing ads
Ads can be placed in interest sections
Timely (current ads)
Reader controls exposure
Can be used for coupons

-
Short life and poor reproduction quality
Clutter
Low attention-getting capabilities
Selective exposure

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33
Q

Outdoor media pros and cons

A

+
Location specific
High repetition
Easily noticed

-
Short ads
Poor image
Local restrictions

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34
Q

Direct mail pros and cons

A

+
High selectivity
Reader controls exposure
High information content
Enables repeat exposures

-
High cost/contact
Poor image (junk mail)
Clutter

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35
Q

Direct/interactive media pros and cons

A

+
User selects information
User attention
Interactive relationship
Direct selling potential
Flexible message platform

-
Privacy concerns
Potential for deception
Clutter
Lack of measurement techniques

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36
Q

zipping

A

Occurs when viewers fast-forward through commercials as they play back a previously recorded program

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37
Q

zapping

A

Changing channels to avoid commercials

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38
Q

Network versus spot

A

Network
-affiliated stations that are linked
-purchase transactions are simplified
Spot and local
-commercials shown on local stations
-may be local or “national spot” commercials

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39
Q

Network advertising

A

Advantage
-Simplifies the purchase process
Disadvantages
-Cost of advertising on prime time is very high
-Availability of time slots
-Up-front market: Buying period that occurs before the TV season begins
-Scatter market: Buying period that occurs throughout the season

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40
Q

Spot and local advertising

A

Spot advertising: Commercials shown on local TV stations
-Time is negotiated and purchased directly from the individual stations
-National spot advertising: Non-network advertising done by a national advertiser
-Local advertising: Airtime sold to local firms

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41
Q

Spot and local pros and cons

A

+
Offers flexibility to national advertisers
Growth in syndication

-
>Difficult to acquire
>Greater variations in the pricing policies and discount structure of individual stations
>Station reps: Individuals who act as sales representatives for a number of local stations in dealings with national advertisers
>Subject to more commercial clutter

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42
Q

Syndicated programs

A

look at slides

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43
Q

Pros and cons of Syndication

A

+
Saves money
Broadens reach for national advertisers
Targets specific audiences

-
Audiences are often rural and older
Syndicators do not supply much research information
Requires media buyers to come up with a syndication schedule to ensure maximum reach

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44
Q

sponsorships

A

-Advertiser assumes responsibility for the production and content of the program, and the advertising that appears within it
-Allows a firm to:
+Capitalize on the prestige of a high-quality program
+Have more control over the shows carrying their commercials

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45
Q

Participation

A

Several advertisers buying commercial time on a particular program
-No long term commitment yet little control over ad placement

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46
Q

Spot announcements

A

Purchased from the local stations, appear during adjacencies
-Adjacencies: Time periods adjacent to network programs

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47
Q

Cable television

A

-Rapid growth during last 20 years
+91% of households have cable TV via wired cable or satellite
+Generate their revenue via ads and subscriber fees
-Development of superstations
+Independent local stations that send their signals nationally via satellite
+Sports, movies, and reruns of network shows
+Carries national advertising

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48
Q

Advertising on Cable TV pros and cons

A

+
Offers selectivity
Offers a chance for narrowcasting
Narrowcasting: Reaching very specialized markets
Low cost
Flexibility

-
Overshadowed by major networks
Audience fragmentation
Lacks penetration in major markets

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49
Q

TV audience measures

A

-size and composition measured by ratings services
-TV household
+Home with at least one operable TV
-Program rating
+% of TV houses in an area tuned in at a specific time
+ Ratings point: Represents 1% of all TV households in an area watching a specific program
-Households using TV (HUT)
+% of homes in given area where TV watched during specific time period
- Share of audience
+ % of houses using TV in a specified time period that are tuned in to specific program
- Total audience
+ Total number of houses viewing any five- minute part of a telecast

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50
Q

National audience information

A

Nielsen TV index
-Provides 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
-Records what is being watched and by whom in 10,000 households

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51
Q

Local Audience information

A

-Designated market areas (DMAs): Non overlapping areas used for planning, buying, and evaluating TV audiences
+Include group of counties in which stations are located in a metropolitan or central area
-NSI reports
+Viewing times
+Programs watched
+Audience size estimates
+Demographics
-Local people meter (LPM) - Used to measure the largest local markets
-Sweeps: Viewing audiences in every local television market are measured at least four times a year

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52
Q

Developments in audience measurement

A

-Commercial ratings: Measures of the average viewership of the commercials both live and up to three days after the ads are played back on a DVR
-Anytime anywhere media measurement (A2/M2)
+Introduction of electronic measurement in all local markets
+Addition of Internet and out-of-home measurement in Nielsen’s People Meter sample
+Measurement of streaming
+Development of passive measurement devices
-Cross-platform campaign ratings: Measures the number of people who:
+Watch an ad only on television
+Who view an ad online
+Overlap between the two

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53
Q

Buying radio Advertising Time

A

-Network radio - Purchased on a network basis using one of the national networks
-Spot radio -
+Greater flexibility in selecting markets
+Individual stations
+Airtime and a chance to adjust the message for local market conditions
-Local radio - Purchased from individual stations by local companies

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54
Q

Audience information

A

Nielsen Audio provides:
+Person estimates - Estimated number of people listening
+Rating - Percentage of listeners in the survey area population
+Share - Percentage of the total estimated listening audience

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55
Q

Audience information

A

Average quarter-hour (AQH) Figure
-Average number of people estimated to have listened to a station for a minimum of five minutes during any quarter-hour in a time period

Cume
-Total number of different 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)
-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 device that electronically tracks what consumers listen to on the radio

RADAR (Radio’s all dimension audience research)
-Measurements are based on information collected throughout the year

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56
Q

Magazines and newspaper value

A

-Present detailed information that can be processed at the reader’s own pace
-High-involvement media
-Magazines are the most specialized of all advertising media

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57
Q

Magazines

A

Classification of Magazines
-Consumer
+General and targeted consumers
-Farm
+directed to farmers and their families
-Business
+specific to businesses/ industries/ occupations

58
Q

Consumer receptivity and engagement

A

Greater in magazines than in any other medium
-With the exception of newspapers

Magazines are:
-Primary source of information for consumers for a variety of products
-Capable of engaging the readers and retaining their attention

59
Q

Creative flexibility

A

-bleed pages
-inserts
-pop-ups
-cover positions
-gatefolds
-creative space

60
Q

Magazine circulation

A

Primary circulation
-Number of copies distributed to the original subscribers or purchasers
-Determines magazine’s rate structure
Guaranteed (Paid) circulation
-Publishers give advertisers a rebate if the number of delivered magazines falls below the guarantee
-Figures are set safely below the average actual delivered circulation

61
Q

Circulation Verification

A

Alliance for Audited Media (AAM)
-Audits consumer magazines and farm publications
-Provides data and information critical to evaluating and purchasing media
-Audits digital replica editions of magazines

Controlled-circulation basis: Sending copies individuals the publisher believes can influence a company’s purchases

62
Q

Readership and total audience

A

Pass-along readership: Occurs when:
-Primary subscriber gives a magazine to another person
-Publication is read in doctors’ waiting rooms, on airplanes, and so forth

Total audience or readership: Calculated by multiplying the readers per copy by the circulation of an average issue

63
Q

Audience Information and Research for Magazines

A

-SRDS - Provides complete planning information on domestic and international consumer, business, and health care publications
-Publication’s own research studies
-Syndicated research studies
-Business Publication Audits - Provide the titles of people who receive a publication and the industry they work in

64
Q

Cost Elements Involved in Purchasing Magazine Advertising Space variables

A

Magazine’s circulation
Size of the ad
Position in the publication
Particular editions chosen
Special mechanical or production requirements
Number and frequency of insertions

65
Q

Cost Elements Involved in Purchasing Magazine Advertising Space

A

Positions available for ads
First cover: Outside front of a magazine (not sold)
Second cover: Inside front of a magazine
Third cover: Inside back of a magazine
Fourth cover: Outside back of a magazine, sold at a higher rate than any other position
-Advertising space is sold on the basis of space units
+Full page, half page, and quarter page
-Volume discounts

66
Q

Daily newspapers

A

-Found in cities and larger towns
-Provide detailed coverage of events, issues concerning the local area
-Classifications - Morning, evening, or Sunday publications

67
Q

Types of newspapers advertising

A

Display advertising
Uses visual devices in addition to the copy text

Classified advertising
Ads are arranged under subheads according to the product, service, or offering being advertised

Special ads and inserts
Government and financial reports
Notices and public notices of changes in business and personal relationships
Preprinted inserts: Printed by advertiser and taken to the newspaper to be inserted

67
Q

Weekly newspapers

A

-Originate in small towns or suburbs
-Focus on news, sports, and events relevant to the local area
-Appeal primarily to local advertisers

67
Q

Newspapers

A

Types of Newspapers continued
National Newspapers
Have national circulation and editorial content with a nationwide appeal
Appeal to:
Large national advertisers
Regional advertisers that use specific geographic editions of these publications
Special-Audience Newspapers
Offer specialized editorial content and are published for particular groups
Newspaper Supplements
Included by papers in their Sunday editions

67
Q

Purchasing Newspaper space

A

General rates
Advertisers are outside the newspaper’s designated market area
Includes national advertisers
Are up to 75% higher than local rates

Retail or local rates
Advertisers conduct business within the designated market

68
Q

Rate structures

A

See slides

69
Q

The future for magazines

A

Publishers are focused on building:
Stronger editorial platforms
Better circulation management
Cross-magazine and media deals
Database marketing
Technological advances
Electronic delivery methods
Native advertising: Integrates the advertising in online publications with the environment and editorial content

70
Q

Future for newspapers

A

Challenges
Competition from other media
Circulation
Attracting and retaining readers
Increased use of online delivery and multiple platforms

71
Q

Support Media

A

Uses a variety of non traditional channels to deliver communications and to promote products and services
Role
Reach target audience that primary media may not have effectively reached
Reinforce or support primary media messages

72
Q

Out of home media

A

Billboards
Street furniture
Transit
Place-based media

73
Q

Out of home media details

A

Factors contributing to its success:
Increase in number of
Women in workforce
Vehicles on the road
Ability to remain innovative through technology

Controversy over billboards.

74
Q

Digital out of home media

A

Video advertising networks
Digital billboards
Place-based advertising (aerial ads, mobile billboards)

75
Q

In store media

A

Reach shoppers at the place where they buy
Include:
In-store ads
Aisle displays
Store leaflets
Shopping cart signage
In-store TV

76
Q

Transit advertising

A

Targets people who are exposed to commercial transportation facilities
Gained popularity due to:
Increased number of women in the work force
Audience segmentation
People spending more time outdoors

77
Q

types of transit advertising

A

Targets people who are exposed to commercial transportation facilities
Gained popularity due to:
Increased number of women in the work force
Audience segmentation
People spending more time outdoors

78
Q

Transit advertising pros and cons

A

+exposure, frequency, cost
-reach, mood of the audience

79
Q

Promotional Products Marketing

A

Promotional medium or method is one that uses the following promotional products
Ad specialties
Premiums
Business gifts
Awards
Prizes
Commemoratives

80
Q

Pros and cons of promotional products marketing

A

+
Selectivity
Flexibility
Frequency
Cost
Goodwill
High recall
Supplementing other media

-
Image
Saturation
Lead time
Reach

81
Q

Measurement in promotional products marketing

A

Specialty advertising does not have an established ongoing audience measurement system
Studies show that:
Promotional products have a positive impact on brand image
Brand impressions and purchase intent improves by adding promotional products to integrated media mix

82
Q

pros and cons of movie theater advertising

A

+
Exposure
Emotional attachment
Cost
Attention
Clutter
Proximity
Segmentation
Quality
Integration

-
Irritation
Cost

83
Q

Branded entertainment

A

Blends marketing and entertainment through television, film, music talent, and technology
Methods
Product placements: Refers to advertising within another program (link)
Product integration: Placement is integrated throughout the program content and/or script

84
Q

Methods of branded entertainment

A

Advertainment: Creation of audio-visual content to entertain users while advertising products
Advergames: Online games that are designed to promote products
Content sponsorship
Ad-supported video on demand (VOD)
Others

85
Q

pros and cons of branded entertainment

A

+
Exposure
Frequency
Support for other media
Source association
Cost
Recall
Bypassing regulations
Acceptance and targeting

-
High absolute cost
Time of exposure
Limited appeal
Lack of control
Public reaction
Competition
Negative placements
Clutter

86
Q

Guerilla marketing

A

Nontraditional method of marketing
Known as:
Stealth
Street
Buzz
Ambush
Viral marketing

87
Q

Nontraditional support media

A

Parking lot ads.
Gas station pump ads.
Place-based media.
Others

88
Q

pros and cons of nontraditional support media

A

+
Awareness and attention
Cost efficiencies
Targeting

-
Irritation
Wearout

89
Q

Direct Marketing

A

Direct marketing:
Organizations communicate directly with target customers to generate a response or transaction.
Aspect of total marketing—involves marketing research, segmentation, evaluation, and more.

Uses a set of direct-response media
Direct-response media: Tools by which direct marketers implement the communication process

90
Q

Direct marketing cont.

A

The Growth of Direct Marketing
Factors that led to increased attractiveness of medium
Development and expansion of the Postal Service
Consumer credit cards
Changing structure of American society and the market
Technological advances
Changing values and lifestyles
More sophisticated marketing techniques
The industry’s improved image

91
Q

Role of direct marketing in the IMC program

A

Combing direct marketing with…
Advertising and public relations
Personal selling and sales promotions
Support media
Companies decide:
Program objectives
Which markets to target and the strategies to use
How to evaluate the program’s effectiveness

92
Q

Direct marketing objectives

A

To seek a behavioral response
To build an image
To maintain customer satisfaction
To inform and/or educate customers in an attempt to lead to future actions

93
Q

Direct marketing strategies and media

A

Each medium is used to perform specific functions, although they all generally take a one or two-step approach.
One-step approach: Medium is used directly to obtain an order
Two-step approach: Uses more than one medium
First effort—Screens potential buyers
Second effort—Generates the response

94
Q

Direct marketing media

A

Direct mail
Catalogs
E-mail
Broadcast media
TV spots
Infomercials
Home shopping
Print media
Telemarketing

95
Q

Direct mail

A

Unsolicited mail
Advertisers spend substantially on it
Keys to success:
Mailing lists: Database from which names are generated
Ability to segment markets
The offer
Threat—The Internet.

96
Q

Catalogs

A

Numbers of catalogs mailed and shoppers decreasing
Higher emotional appeal than online catalogs
Available online and hard copy

97
Q

Email

A

Electronic version of regular mail; direct mail on the Internet.
Reach consumers with specific needs through targeted messages.
Lower cost and higher effectiveness than traditional direct mail.
Spam: Electronic equivalent of junk mail.

98
Q

Broadcast media

A

Categories—Television and radio.
Direct-response advertising: Sales response for offered product is solicited, through one- or two-step approach.
Support advertising: Supports other forms of advertising.
TV spots:
Short-form programs, including direct-response commercials seen on TV
Infomercials

99
Q

Direct selling

A

Direct, personal presentation, and sales in consumers’ homes.
Three forms:
Repetitive person-to-person selling—Salesperson visits buyer’s location to sell frequently purchased products.
Nonrepetitive person-to-person selling—Salesperson visits buyer’s location to sell infrequently purchased products.
Party plans—Salesperson offers products to groups of people through parties and demonstrations.

100
Q

Evaluating the Effectiveness of Direct Marketing

A

Cost per order (CPO): Evaluates the relative effectiveness of an ad based on the number of calls generated
Customer Lifetime Value (CLTV): Determines the dollar value associated with a long-term relationship with a customer
Helps determine if a customer should be acquired
Optimizes existing customers’ service levels
RFM analysis: a marketing technique used to determine quantitatively which customers are the most profitable
Recency, Frequency, Monetary

101
Q

Direct marketing pros and cons

A

+
Selective reach
Segmentation capabilities
Frequency
Testing
Timing
Personalization
Costs
Measures of effectiveness

-
Image factors
Accuracy
Content support
Rising costs
Do Not Call lists

102
Q

Reasons for Rapid Adoption of the Internet

A

Consumers:
Increased desire for information
Speed and convenience
Ability to control the flow of information being received
Ability to conduct e-commerce
E-commerce: Direct selling of goods and services on the internet
Advertisers:
Ability to target customers effectively
Increased accountability of businesses

103
Q

The growth of the internet

A

-Web Objectives
Hybrid media
Create awareness
Generate interest
Disseminate information
Create an image
Create a strong brand
Stimulate trial
Create buzz
Gain consideration

104
Q

Banner ads

A

Create awareness or recognition
Used to seek entry into contests and sweepstakes
Fulfill direct-marketing objectives

105
Q

Sponsorships

A

Regular sponsorship: Company pays to sponsor a section of a site
Content sponsorship: Sponsor not only provides money in return for name association but also participates in providing the content itself

106
Q

pop-ups

A

Ads that appear when certain sites are accessed

107
Q

Pop-unders

A

Ads that appear underneath the web page and become visible only when the user leaves the site

108
Q

interstitials

A

Ads that appear on screen while waiting for a site’s content to download

109
Q

Paid searches

A

The higher a site appears on a search page, the more visitors it will receive.
Organic search results
Appear due to their relevance to the search terms
Pay-per-click
Placing ads on web pages that display results from search engine queries
Search engine optimization (SEO)
Improving the volume of traffic to a site by a search engine through unpaid results

110
Q

Behavioral targeting

A

Based on advertisers’ targeting consumers by tracking their website surfing behaviors

111
Q

retargeting

A

Ads follow a website user and are displayed on every participating subsequent websites the user visits

112
Q

Contextual ads

A

Ads are determined by the content on the web page
Native advertising
Advertiser gains attention by providing valuable content in the context of the user’s experience
Controversial
May be deceptive

113
Q

Rich media

A

Interactive digital media that exhibit dynamic motion
Online commercials
Advertisements that appear on the net
Pre-rolls: Commercials that appear before the content that the user is seeking
Video on demand
Video clips of various entertainment activities that can be accessed on demand from the Internet
Webisodes
Short featured films created by the advertiser

114
Q

IMC using social and other media

A

Allow the creation and exchange of user-generated content
Social networking sites: Platforms for networks or social relations
Allow sharing interests, activities, backgrounds, or real-life connections

115
Q

Motivations for using social media

A

To share ideas, activities, and events
Community involvement
To gain information
Entertainment
Remuneration

116
Q

Marketers’ Reasons for Using Social Media

A

Driving traffic to one’s site
Communicating with customers
Gaining brand exposure

117
Q

Social and other media

A

Facebook used to:
Create and push content / Help manage reputation
TikTok used to:
Lower cost ad platfom / attractiveness to influence marketing
X (Twitter) used to:
Respond to customer complaints and/or inquiries
Re-tweet important information
Monitor the market for opportunities or threats
Instagram used to:
Post and edit pictures / Share them on a variety of social networks
Snapchat used for:
a mix of private messaging and public content, including:
Brand networks, Publications, Live events
Pinterest used to:
create and manage theme-based image collections
LinkedIn used to:
Social network for business professionals
YouTube used:
As an advertising medium or search platform by marketers
Additional Social Media:
Periscope
Podcasting
Really Simple Syndication (RSS)
Blog
Other 2.0 Media Forms
Virtual and augmented reality
QR Codes

118
Q

Sales promotion on the internet

A

Websites
Print online coupons
Trivia games, contests

119
Q

Personal Selling on the Internet

A

Disadvantage
Companies are reducing staff to build a strong online presence
Advantages
Websites enhance and support the selling effort
Stimulates trial
Improves one-on-one relationships between customers and sellers

120
Q

Public Relations and Direct Marketing on the Internet

A

Websites
Provide information about a company, its philanthropic activities, and annual reports
Internet based direct-marketing tools
E-mails and infomercials
E-commerce
Used in direct marketing

121
Q

Mobile

A

Rapid adoption of smartphones and tablets.
Has significant impact on companies’ IMC programs.
Tablets led to increases in search behavior, online purchasing, and TV viewing.
Reach potential consumers at almost any time and any place

122
Q

Mobile integrated with other media

A

Automobile industry.
Mobile search.
Mobile coupons, sponsorship of data costs, messages, native ads.

123
Q

Audience Measures and Measures of Effectiveness

A

-Internet-specific measures
Allows measures to be taken in real time
Includes audience measures specific to the Internet and interactive industry (Facebook and Google Analytics)
-Traditional measures
Recall and retention
Surveys
Sales
Tracking
ROI

124
Q

Advantages and Disadvantages of the Internet, Digital and Social Media

A

+
Target marketing
Message tailoring
Interactive capabilities
Information access
Sales potential
Creativity
Exposure
Speed
Complement to IMC
Timeliness

-
Measurement problems
Clutter
Potential for deception
Lack of privacy
Irritation

125
Q

sales promotion

A

A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.”

-an EXTRA incentive to buy
-a tool to SPEED UP sales
-targeted to DIFFERENT parties

(consumer oriented vs trade oriented)

126
Q

Reasons for sales promotion increases (9)

A

Growing power of retailers. Manufacturers used to have most of the power, now retailers through technology, consolidation, and private labeling have more.
Declining brand loyalty. Consumers are purchasing more on the basis of price and value.
Increased promotional sensitivity. Consumers want to save money and respond well to promotions that provide them the opportunity to do so.
Brand proliferation. Many new brands offer little differentiation.
Fragmentation of consumer markets. Traditional mass media advertising has become less effective and promotions are a way to reach market segments.
Short-term focus. Sales promotion is seen as a way of generating an immediate increase in sales.
Increased accountability. Managers are under pressure to produce sales results.
Competition. Promotions are seen as way to gain a competitive advantage.
Clutter. Promotional offers can break through the clutter and attract attention.

127
Q

Consumer Franchise-Building Promotions

A

Consumer franchise-building (CFB) promotions are sales promotion activities that:
Communicate distinctive brand attributes
Contribute to the development and reinforcement of brand identity
Build long-term brand preferences
Some of the CFB techniques and practices include:
Frequency programs that encourage repeat purchases
Contests and sweepstakes and increase involvement with the brand and help build equity
Premium offers that are consistent with the brand image help reinforce and/or build equity

128
Q

Nonfranchise building promotions

A

Nonfranchise-building promotions are designed to:
Accelerate the purchase decision process and
Generate an immediate increase in sales.
These activities generally do not communicate information about a brand’s unique features or the benefits of using it, so they do not contribute to the building of brand identity and image.

129
Q

Objectives of Consumer-Oriented Promotions

A

Obtain trial and purchase
Increase consumption of an established brand
Defend (maintain) current customers
Target a specific segment
Enhance IMC efforts and build brand equity

129
Q

Pros and cons of coupons

A

advantages, including:
Their appeal to price-sensitive consumers
Being able to offer a price break without involving the retailers co-op
Inducing trial of new or existing products
Defense of market share and encourage repurchase
Disadvantages of coupons include:
The difficulty of determining how many consumers will use coupons and when
They are often used by loyal consumers who may purchase anyway
Declining redemption rates
High costs
Misredemption and fraud

130
Q

types of coupons

A

In/on-pack
in store
free standing insert
direct mail

131
Q

Premiums

A

An offer of an item, merchandise, or service, free or at a low cost, that is an extra incentive for customers

types:
free-Only requires purchase of the product

self-liquidating-consumer required to pay some or all of the cost of the premium

132
Q

contests and sweepstakes

A

sweepstakes- winners determined by chance, can’t require proof of purchase for entry

contest-consumers compete for prizes, winners determined by judging entries

133
Q

more consumer oriented promotions

A

price-off deals
bonus packs
event marketing
refunds and rebates
loyalty programs

134
Q

Trade-oriented Sales Promotions

A

T-O Sales promotions – a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale

Trade-oriented sales promotions
Targets intermediaries (wholesalers and retailers)

135
Q

Objectives of Trade-Oriented Sales Promotion

A

Obtain distribution for new products
Maintain trade support for established brands
Encourage retailers to display established brands
Build retail inventories

136
Q

types of trade oriented promotions

A

contests and incentives
co-op advertising
trade allowances-buying, promotional, slotting, failure fees
POP displays
sales training
trade shows

Exams (14 decks)

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