Chapter 8_IMC & Advertising Flashcards
What are the four ways to set the budget?
- Affordable method
- Percentage of sales
- Competitive parity (match competitor’s spending)
- Objective and task
what the problem of affordable method?
don’t know whether it is useful
what the problem of percentage of sales
not suit for new products
What is the best approach of budget setting?
Objective and task
What are the values for IMC?
- Advances in Information Technology
- Changes in Channel Power
- Increases in Global Competition
- Increase in Brand Parity
- Emphasis on Customer Engagement
- Increase in Micro Marketing (customize the product)
Sendor and receiver
marketer is sendor, target market is receiver
Social media is the all media for marketer sending the message
False, social media is only a tool for those people who use social media.
What is the challenge for a marketer to send the message?
Encode the message, select appropriated media, and transfer the message through the media to expose to the receivers （the communication process)
What is meaning of noise during communication process?
• Talking on the phone during a commercial on television
• Driving while listening to the radio
• Looking at a model in a magazine ad and ignoring
the message and brand
• Scanning a newspaper for articles to read
• Talking to a passenger as the car passes billboards
• Scrolling past Internet ads without looking at them
• Annoyed by ads appearing on a social media site
• Ignoring tweets on Twitter because they are not relevant
The steps for developing effective communication
- Identify the Target Audience
- Determine Communication Objectives
- Design the Message
- Choose the Media
- Select the Message Source (i.e spokesperson who has credibility on target market)
- Collect Feedback (monitor the awareness of the target market before and after)
- Set the total Promotional Budget
AIDA model
After identify the target audience, conduct AIDA model: attention interest desire action
Example of moving people from awareness to desire and trial
Give them samples
Types of appeal to design a message
Fear, emotional, rational, sex appeals, humor
three types of personal communication when you choose media
- Company sales people
- Independent experts
- Word of mouth
What are the types of non-personal channel?
- Mass media
- Atmospherics
- Press conferences
- Grand openings
- Exhibits, public tours
Lagged effect when collecting feedback
Lagged effect - impact of advertising can be over time
How to avoid lagged effect?
Monitor before, during and after
What is push strategy?
Using salesperson to push product
What is pull strategy?
going directly to customer (low price)
What are promotion strategy on introduction stage?
Heavy use of advertising and Public relations to build Brand Awareness and educate customers on the product’s benefits.
Personal Selling ensures distribution coverage & supply chain cooperation
Sales Promotion stimulates product trial and trade cooperation
What are promotion strategy on growth stage?
Advertising and Public relations to build and maintain brand loyalty
Personal selling maintains distribution & supply chain cooperation
Decline in use of Sales Promotion
What are promotion strategy on maturity stage?
Advertising is used to remind consumers (keep brand top of mind of awareness)
Sales Promotion encourages brand switching
Personal selling maintains distribution & supply chain cooperation
What is limit of coupon running time?
maximum 3 weeks
Benjamin Franklin
Father of American Advertising
Uses of Advertising
- Institutional (billboard, UTD JSOM school)
- Brand (Michellin)
- Competitive
- Help Salespeople
- Increase Usage (McDonald all-day breakfast)
- Remind & Reinforce (Henzi Ketchup)
- Reduce Fluctuations (coke can drink all year)
What is most major decision for advertising?
Determine target audience
How to get target audiences by decision?
Inform (pizza hut) • Persuade (tide) • Remind • Addvalue (iPhone add new features) • Assist other efforts
Messages for advertising
Generation
Evaluation and selection (including desirability, exclusiveness, believability)
How to deliver the ads (execution)
– Slice of Life (showing people in real life setting using product) – Life Style – Fantasy (using for perfume ads) – Mood or Image – Musical – Personality Symbol (Mr clean) – Technical Expertise (doctor promotes product) – Scientific Evidence – Testimonial Evidence (证明过程 证据）
Elements of a Typical Advertisement
- illustration
- headline
- body copy
- signature
The purpose of headline
give people stop and read ads. Can be delivered by News, Question, Narrative, Command, 1-2-3 Ways. How-What-Why
How media changing over the year?
TV move to digital(mobile)
When chose a media, what kinds of metric are needed?
- Reach
- Frequency
- Advertising expenditures
- Timing
Newspapers advertising features
dominate local markets
typical daily newspaper generates 40 percent of its
revenue from classified advertising
flexibility and community prestige
Newspapers facilitate coordination between local and national advertising
offer powerful merchandising services like promotional and research support
TV features
Rival newspapers as the dominant advertising medium
Greatest share of TV ad revenues come from companies that advertise nationallyNewest trend: Virtual Ads that are superimposed onto sporting events – they seem to be part of the arena’s signage, but can’t be seen by those attending the event
Another trend: abbreviated spots – 15 and 30 second spots
Cable TV’s share of ad revenues has grown by more than 30%, while the network’s share is falling
Radio features
Popular choice for up-to-the-minute newscasts
Also popular for targeting advertising messages to
local audiences
Recently, has become the fastest-growing media alternative
Playing an increasingly important role as a national, an even the global, favorite
Magazines features
Divided into two broad categories of consumer magazines and business magazines
These categories are also subdivided into monthly publications and weekly publications
Top four in the U.S. – TV Guide
– People
– Sports Illustrated – Time
Automotive, retail, and movies and media advertisers are the biggest spenders
Direct mail features
Over 4.5 million tons of direct-mail offers fill U.S. mailboxes annually
Almost half is immediately discarded
Americans spend about $200billion annually on direct- mail promotions
Interactive Media features
Contains characteristics of both print and broadcast media
Enhances two-way communication and encourages audience participation
Although E-mail is considered a form of direct-mail, it has recently taken on the characteristics of interactive media
E-mail campaigns boast high responses of 14 to 22 percent compared to a low 1 percent rate with banner ads
Companies use interactive media to supplement other media
How to evaluate ads?
Communication effect research:
Direct rating
portfolio test (show your ads and competitor’s ads and let them rating)
laboratory test
What is ad post testing?
Evaluating recall (aided and unaided recall) rate and recognition (have you see this ads and where you see it) rate
Issues for advertising
- False Advertising (making false claims)
- Deceptive Advertising (欺骗广告）
- Bait-&-Switch Advertising (ridiculous low price)
- Promotional Allowances & Services (can’t discriminate distributors)
Publicity definition
Communication in news story form, regarding an organization and/or its products, that is transmitted through a mass medium at no charge.
Publicity Relations
Nonmarketing public relations - refer to a company’s messages about general management issues
Marketing public relations (MPR) - are narrowly focused public relations activities that directly support marketing goals
Different kinds of PR
Press Relations Product Publicity Corporate Communications Lobbying Counseling
PR is not entirely free of costs
True
Coupon is good for all places
False. Some places think using coupon means poor
Distribution of sales promotions
Coupons in retail ads 90 In-store coupons 88 Refunds 85 In-store displays 83 Samples of established products 78 Premiums 75 Sweepstakes 70
Coupon features
Coupons offer discounts on the purchase price of a service
• most widely used form of sales promotion
• Nearly$3.5billionredeemedannually
• Free-standing inserts (FSIs) in Sunday newspapers account for about 75 percent of all coupons
• Average household receives around 3,000 coupons annually
Rebate features
Rebates offer cash back to consumers who send in proof of purchasing one or more products
• Rebates offer a way to reduce the effective price, without affecting the price-quality relationship
• Rebates help packaged-goods companies to increase purchase rates, promote multiple purchases, and reward product users.
Samples features
- Sampling - free distribution of a product in an attempt to obtain future sales
- An effective means of implementing “try it, you’ll like it” approach
- produces a higher response rate than most other promotions
- 3/4 of the consumers to receive samples try them
Premiums features
- Premiums are items given free or at a reduced cost with the purchases of other products (dell gives printer)
- Premiums have proven effective in motivating consumers to try new products or different brands
Contests and Sweepstakes
Contestsrequireentrantsto solve problems or write essays – they may also require proofs of purchase
• Sweepstakes select winners by chance – no product purchase is necessary
Specialty advertising features
sales promotion technique that places the advertiser’s name, address, and advertising message on useful articles that are then distributed to target markets
More than $8 billion worth of specialty advertising items are given out annually
What is trade oriented promotion?
Tradepromotion
Tradeallowances
Point-of-purchase(POP) advertising
The process of promotion
- Establish objectives
- select sales promotion tool
- Developing sales promotion program
pre testing and post testing for promotion are good
True. using the recall test and recognition test, split runs and inquiry test to conduct post testing
Measure the promotion effectiveness by using four steps
- advertising
- Sale promotion
- Public relations
- interactive media
What are promotion fix to marketing communication?
- advertising
- Direct marketing
- digital/internet marketing
- sales promotion
- public relation
- professional selling
What are the process of communication through sender to receiver?
Encode — Message (Medium) — Decode — Receiver — Response—Feedback
