ch.15 Flashcards
What is the AIDA model
A common model of the series of mental stages through which consumers move as a result of marketing communications: Attention leads to Interest, which leads to Desire, which leads to Action.
What re the 4 stages of the IDA model?
Attention
Interest
Desire
Action
Explain the attention stage.
the attention of the consumers
A multichannel approach increases the likelihood the message will be received
Awareness metrics: aided recall, top-of-mind awareness.
Aided recall
: consumer recognized the brand and what it stand for in a list
Unaided recall/top-of-mind
A prominent place in people’s memories that triggers a response without them having to put any thought into it.
Explain the intterest stage
After the customer is aware, they must be persuaded
The customer must want to further investigate the product/service
Consumers are somewhat interested. So we want to persuade the customer to further investigate the product
Explain the desire stage
Want to get to the point to get them to buy it
The goal of subsequent messages should move the consumer from ‘‘I like it’’ to ‘‘I want it’’
Explain the action stage
The ultimate goal of any marketing communication is to drive the receiver to action
What is the lagged effect
A delayed response to a marketing communication campaign.
Through repeat exposure, we have a chance of having an impact on consumer
What is the definition of advertising
It is a paid form of communication from an identical source, delivered through a communication channel, and designed to persuade the receiver to take some action now or in the future.
1) should be paid
2) must be carried by some medium
3) source of the message must be known
4) designed for consumer to take action
What is informative advertising
Communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase.
Persuasive advertising
Communication used to motivate consumers to take action.
Reminder advertising
Communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle.
What are the 3 advertising objectives
Inform
persuade remind
What are the two focus of advertising
product focused: Used to inform, persuade, or remind consumers about a specific product or service.
institutional: Used to inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation.
Product placement
Product is included in non-traditional situations
Example: a scene in a movie, music videos
Public service annnouncement (PSA)
Advertising that focuses on public welfare and generally is sponsored by non-profit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social maketing
ex: -wildfire prevention
- drug use
- internet safety
- Breast cancer screening
Deceptive advertising
A representation, omission, act, or practice in an advertisement that is likely to mislead consumers acting reasonably under the circumstances.
Puffery
The legal exaggeration of praise, stopping just short of deception, lavished on a produc
What are four companies that regulate advertising?
- Competition Bureau Canada/ The Competition Act (1986)
- Canadian Radio-television and Telecommunications Commission (CRTC; 1968)
- Health Canada/Food and Drugs Act (1954)
- Advertising Standards Canada (ASC; 1957)
What are sales promotions
special incentives or excitement-building programs that encourage consumers to purchase a particular product
What are the 9 kinds of consumer sales promotions?
- coupons
- deals
- premiums
- contests
- sweepstakes
- samples
- loyalty programs
- POP displays (point of purchase)
- Rebates
What is a coupon? Advantages and disadvantages
Coupons offer a discount on the price of specific items when they’re purchased.
Advantages: encourage retailer support, allow for direct tracking sales
Disadvantages: low redemption rates, high cost.
Deals, advantages and disadvantages
A type of short-term price reduction that can take several forms, such as a “featured price” (a price lower than the regular price); a “buy one, get one free” offer
Advantages: Reduce consumer risk. Retaliate against competitive action.
Disadvantages: May reduce perception of value
Premiums, advantages and disadvantages
An item offered for free or at a bargain price to reward some type of behaviour, such as buying, sampling, or testing.
Advantages: Increase perception of value
Disadvantages: Result in consumers who buy for the premium, not the product.
Have to be carefully managed.
Contests, objectives
A brand-sponsored competition that requires some form of skill or effort
objective: Increase consumer involvement.
Advantages: generate excitement
Disadvantages: Require creativity. Must be monitored.
sweepskates
A form of sales promotion that offers prizes based on a chance drawing of entrants’ names.
objective: Encourage higher consumption.
Advantages: Minimize brand switching among existing consumers.
Disadvantages: Sales often decline afterward.
sweepskates
A form of sales promotion that offers prizes based on a chance drawing of entrants’ names.
objective: Encourage higher consumption.
Samples
Offers potential customers the opportunity to try a product or service before they make a buying decision.
objective: Encourage trial.
disadvantage: one of the most expensive
Loyalty programs
Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.
Objective: encourage repurchase
Disadvantages: high cost to firms
POP displays (point of purchase)
A merchandise display is located at the point of purchase, such as at the checkout counter in a grocery store. ( right before paying) High visibility, in-store support
Objective: increase brand trial
Advantages: Provide high visibility.
Provide in-store support.
Disadvantages: It is difficult to get a good location in the store.Can be costly to the firm.
rebates
Rebates are a particular type of price reduction type in which a portion of the purchase price is returned by the seller to the buyer.
Objective: Stimulate demand
Disadvantages: may just advance future sales, easily copied by competitors.
What are the 3 types of trade channel sales promotions
Trade channel promotions help convince retailers and wholesalers to stock a new brand, give it eye-level shelf space and promote it in their flyers and other advertisements.
- discounts and allowances
- cooperative advertising
- sales force training
Discounts and allowances
Discounts: If a retailer buys a certain amount, they will get a discount
Allowances: In exchange for doing different things. Ex: retailers featuring the product in some way.
cooperative advertising
helps to compensate trade channel members for money they spend promoting products and encourages them to feature projects more often.
Ex: manufacturers will pay 50%of the cost of advertising up to an agreed-upon limit.
Using sales promotion tools
Marketers need to be careful in their use of promotions
Future sales are shifted to now
Short-run benefits at the expense of long-term sales stability
Money today is more valuable than money in the future.
What are the two types of promotion tools
pop-up stores: Temporary storefronts that exist for only a limited time and generally focus on a new product or a limited group of products offered by a retailer, manufacturer, or service provider; give consumers a chance to interact with the brand and build brand awareness.
cross-promoting: Efforts of two or more firms joining together to reach a specific target market.
To evaluate a trade promotion, retailers consider (6)
- the realized margin from the promotion: how much money will we make per item sold
- the cost of additional inventory
- potential increase in sales
- long-term impact
- potential loss from switches from more profitable items (If people wanted to buy the product anyway, but just bought it now at a lower price, bad deal. )
- additional sales by customers
Explain the scope and nature of personal selling
Personal selling is the two-way flow of communication between a buyer and a seller that is designed to influence the buyer’s purchase decision. Can happen face to face, via video conferencing, telephone and the internet.
What is the personal selling process
- Generate and qualify needs
- Preapproach (Extends the qualification procedure. Sets goals for what is to be accomplished. Make research to make good impression)
- sales presentations and overcoming objections (presentaiton and handling objections)
- Closing the sale
- Follow-up
Explain step 1: Generate and qualify leads
Generate a list of potential costumers (Leads) and assess their potential (qualify)
to do this salespeople can:
- attend trade shows (Major events attended by buyers who choose to be exposed to products and services offered)
- do cold calls (h salespeople telephone or go to see potential customers without appointments)
-telemarketing ( salespeople telephone potential customers)
Explain step 2: Preapproach
Occurs prior to meeting the customer for the first time and extends the qualification of leads procedure;
in this step, the salesperson conducts additional research and develops plans for meeting with the customer.
Explain step 3: Sales presentation &Overcoming objections
The Presentation: person-to-person, ask questions, listen carefully
Handling Objections: Usually occurs during the presentation, anticipate in advance
Similar to personal selling process, what is B2B Buying process.
- Need recognition
- product specification
- RFP Process
- Proposal Analysis and supplier selection
- order specification
- performance assessment
Explain step 4: Closing the sale
Obtaining a commitment from the customer to make a purchase.
A ‘‘no’’ may mean a yes in the future
Explain step 5: follow-up
the attitudes customers develop after the sale become the basis of how they will purchase in the future. You need to make sure that your client is satisfied, and build the relationship. Use the 5 quality dimensions: - Reliability - responsiveness - assurance - empathy - tangibles
Explain the 5 quality dimensions during the follow-up of costumers.
- Reliability: must deliver the right product or service on time
- responsiveness: response must be ready to deal with any problem that may arise.
- assurance: customers must be assured through adequate guarantees that their purchase will perform as expected.
- empathy: understanding of problems that customers are facing
- tangibles: tangibles offer a signal that the product is of high quality (packaging)
What are the 4E framework for social media
- Engage
- excite
- educate
- experience
What are the 4E framework for social media
- Engage (Engaged customers spent more on your brand than non-engaged customers. action, loyalty, potential relationship, commitment)
- excite (excite the customer)
- educate (educate the customer, clear call to action, draw customers to online store)
- experience ( experience the product or service)
What are the 3 categories of social media
Social network sites (facebook, linkedin)
media sharing sites (youtube, instagram)
thought-sharing methods (twitter)
paid media
Use of paid advertising channels to deliver a brand’s message and/or drive traffic to owned or controlled properties
Owned media
Media, content, assets and community platforms partially or wholly owned and controlled by the brand.
Earned media
Unique brand presence on established channels gained through editorial influence other than advertising.
What are the 4 app pricing models
- ad-supported apps: Make money through ads
- freemium apps: Free to download, free to play, for special features, it costs more money
- paid apps: Apps need to be paid to be downloaded.
- paid apps with in-app purchases: Pay to download the app and pay for additional features
How is individual social media effectiveness measured? Metrics such as:
social reach
influence
extended network
What Does Personal Branding Really Mean?
Leverage your personal brand to induce action
It takes time & consistent effort!
Being influential means you excite, educate, give experience & engage
What Types of Jobs are Available in Social Media?
strategist community manager blogger social marketing specialist online customer service representative search engine marketing associate
