Chapter_01 Flashcards
What is Marketing?
- An organizational function
- Processes for creating, communicating, and delivering value to customers
- Managing customer relationships in ways that benefit the organization and its stakeholders
Name the four P’s of Marketing Mix
- Product
- Price
- Place
- Promotion
Explain what is meant by “rapidly changing media Environment”
Increasingly difficult to target audiences & communicate effectively
- Consumers no longer passive recipients
- They demand more than information
- From a myriad of sources
What is integrated marketing?
Integrated marketing is the process of unifying all aspects of marketing communication — such as advertising, PR, and social media — and using their respective mix of media, channels, and tactics to deliver a seamless and customer-centric experience. In practice, that means having a consistent look, feel and tone to your message across all the channels you use.
Value of IMC
- Avoids duplication of marketing efforts
- Synergy among promotional tools
- More efficient and effective marketing
Traditional mass media
- Television, radio, magazines, newspapers, billboards
- Now drive consumers to Web sites
Online strategies
- Provide detailed information
- Be experiential, entertaining, interactive
- MySpace, YouTube, Facebook, wireless mobile media devices, e-mail
IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences.
The goal of IMC is to generate short-term financial returns and build long-term brand value
What is traditional Marketing?
Traditional marketing refers to any type of marketing that isn’t online. This means print, broadcast, direct mail, phone, and outdoor advertising like billboards. From newspapers to radio, this method of marketing helps reach targeted audiences
compare traditional marketing to the integrated marketing approach
What does Brand Identity consist of?
- Name
- Logo
- Symbols
- Design
- Packaging
- Performance
- Image or associations
What are some popular trends among consumers?
- They view brands as a form of self-expression
- They know more about brands and the companies that make them
- Cynicism about corporations is at an all-time high
- They seek and share information with other consumers via the Internet
What does the promotional mix consist of?
- Advertising
- Direct Marketing
- Interactive / Internet Marketing
- Sales Promotion
- Publicity / Public Relations
- Personal Selling
What is direct Marketing and what are some expamples for it?
Direct marketing consists of any marketing that relies on direct communication or distribution to individual consumers, rather than through a third party such as mass media. Mail, email, social media, and texting campaigns are among the delivery systems used. It is called direct marketing because it generally eliminates the middleman, such as advertising media.
- Direct marketing consists of any marketing that relies on direct communication or distribution to individual consumers, rather than through a third party such as mass media.
- The call to action is a common factor in much of direct marketing.
- The effectiveness of direct marketing is easier to measure than media advertising.
Examples:
- direct Mail
- direct Response Advertising
- Telemarketing
- Catalogs
- Shopping Channles
- Internet Sales
What is interactive / internet marketing?
Interactive marketing is a one-to-one marketing practice that centers on individual customer and prospects’ actions. Interactive marketing involves marketing initiatives that are triggered by customers’ behaviors and preferences; for this reason, it is a major shift from traditional campaign-based marketing efforts.
Back-and-forth communication
- Users participate in and modify the form and content of information
- Happens in real time
Interactive media
- Internet
- CD-ROMs
- Kiosks
- Interactive television – Digital cell phones
In what ways is the Internet a tool for IMC?
What is Sales Promotion and what are some examples for it?
Sales promotion is a marketing strategy where the product is promoted using short-term attractive initiatives to stimulate its demand and increase its sales.
Consumer-oriented (For end-users)
- Coupons
- Samples
- Premiums
- Contest/Sweepstake
- Refunds
- Bonus Packs
- Events
Trade-oriented (For resellers
- Trade Allowances
- POP Displays
- Training Programms
- Trade Shows
- Coop Advertising
What are some common publicity vehicles?
- Feature Articles
- Interviews
- Special Events
- Press Conferences
- News Releses
What is the definition of Public Relations and what are some of its tools?
Systematically planning and distributing information in an attempt to control and manage image and the
nature of the publicity received.
- Cause-related Marketing
- Publicity Vehilces
- Special Publications
- Community Activities
- Corporate Advertising
- Public Affairs Activities
- Special Event Sponsorship
What is Personal Selling?
Person-to-person communication
–A seller attempts to assist and/or persuade prospective buyers to make a purchase or act on an idea
What is IMC Planning Process model?
Describe the Marketing and Promotions Process Model
What is an competitive analysis?
A competitive analysis is a strategy where you identify major competitors and research their products, sales, and marketing strategies. A competitive analysis can help you learn the ins and outs of how your competition works, and identify potential opportunities where you can out-perform them.
What is an opportunity analysis?
Market opportunity analysis is a process to assess the attractiveness of a business opportunity.
What does the targeting market process look like?
- Identify markets with unfulfilled needs
- Determine market segmentation
- Select a market to target
- Position through marketing strategies
What is Target market identification?
Target market identification involves selecting one or more market segments or groups of customers to target in your marketing mix. The idea is that tailoring that mix to address the unique needs and desires of your target market can ultimately be more profitable for the firm than mass marketing toward every would-be buyer in the overall market.
A company can target customers according to the follwing aspects:
- Lifestyles
- Social class
- Economic status
- Geographic location
- Age
- Marital status
- Needs
What is market segmentation?
- Dividing a market into distinct groups
- With common needs
- Who respond similarly to a marketing situation
In what categories can you segment the market?
Demographic
- Gender
- Age
- Race
- Life stage
- Birth era
- Household size
- residence tenure
- marital status
Geographic
- Region
- City size
- Metropolitan area
- Density
Psychographic
- Personality
- Values/Lifestyle
Socioeconomic
- Income
- Education
- Occupation
What is undiferentiated marketing / segmentation?
The undifferentiated marketing strategy focuses on an entire target market rather than a segment of it. This strategy employs a single marketing mix – one product, one price, one placement and a single promotional effort – to reach the maximum number of consumers in that target market. “Marketing,” by William M. Pride and O. C. Ferrell, gives commodities says sugar and salt are examples of products that might be marketed effectively through an undifferentiated strategy, as many consumers in the overall market have similar needs for the products.
What is Differentiated Marketing / segmentation
A differentiated marketing strategy targets different market segments with specific marketing mixes designed especially to meet those segments’ needs. Each mix includes a product, price, placement and promotional program customized specifically for a particular segment. For example, a company that manufactures vitamin supplements might identify gender-based market segments. It could produce one multivitamin formula for women and another for men.
What is concentrated Marketing / segmentation?
The concentrated strategy provides a third-way solution that allows marketers to target a single market segment with a single marketing mix. The ability to specialize to this degree has the advantage of allowing a company to focus its resources on meeting the needs of a single, well-defined and well-understood market, which makes it more competitive against larger companies. On the downside, a concentrated marketing strategy can pigeonhole a company into a single product and market and leave it vulnerable to the effects of changing conditions within that market.
What types of positioning strategies are there?
Product attributes and benefits:
Associating your brand/product with certain characteristics or with certain beneficial value
Product price:
Associating your brand/product with competitive pricing
Product quality:
Associating your brand/product with high quality
Product use and application:
Associating your brand/product with a specific use
Competitors:
Making consumers think that your brand/product is better than that of your competitors
What does the Marketing planning programm conist of?
- Product Decisions
- Distribution Channels
- Promotional Strategy
- Price Decisions
What are the 3 branding goals?
- Build and maintain brand awareness and interest
- Develop and enhace attitudes toward the company, product or service
- Build and foster relationships between the consumer and the brand
What is the difference between brand equity and brand identity?
Brand equity refers to the importance of a brand in the customer’s eyes, while brand value is the financial significance the brand carries. Both brand equity and brand value are educated estimates of how much a brand is worth.
Explain the importance of branding and packaging
Branding
- Brand name communicates attributes and meaning
- Advertising creates and maintains brand equity
Packaging
- Has become increasingly important
- Often the customers first exposure to product
What are the factors a company must consider when it comes to pricing desicions
- costs
- demand
- Competition
- perceived value
Whats the importance of price in terms of Ads and Promotions?
- Price must be consistent with perceptions of the product
- Higher prices communicate higher product quality
- Lower prices reflect bargain or “value” perceptions
- Price, advertising, and distribution mus be unified in identifying product position
What are market channels and how are they divided?
Market channels are sets of interdependent organizations involved in the process of making a product or service available for use
Direct
- Driven by direct-response ads, telemarketing, the Internet
- Often used when selling expensive and complex products
Indirect
- Network of wholesalers and/or retailers
Push vs Pull strategies
In simple terms push marketing involves pushing your brand in front of audiences (usually with paid advertising or promotions). Pull marketing on the other hand means implementing a strategy that naturally draws consumer interest in your brand or products (usually with relevant and interesting content).
What does the communication process in marketing look like?
What form of message encoding are there?
Verbal
- spoken word
- written word
- song lyric
Graphic
- pictures
- drawing
- Charts
Musical
- Arrangement
- Instrumentation
- Voices
Animation
- Action/Motion
- Pace/Speed
- Shape/Form
In what two categories can Communication Channels be divided?
Personal Channels
- Word of mouth
- Personal Selling
Nonpersonal Channels
- Print Media
- Broadcast Media
What are the measures to guarantee a successful Communication?
- Select an appropriate source
- Develop a properly encoded message
- Select appropriate channel for target audience
- Receive feedback
What are the different models about the Response Process
What is Cognitive Response?
Cognitive response refers to the response in individuals generated on seeing an ad which is evaluated in the light of past experiences, knowledge and attitudes. The consumers are asked to either write down or verbally express their cognitive responses to an ad message through exposure.
What is the difference between high- and low-involvement products?
Low-involvement products are usually inexpensive and pose a low risk to the buyer if he or she makes a mistake by purchasing them. High-involvement products carry a high risk to the buyer if they fail, are complex, or have high price tags. Limited-involvement products fall somewhere in between.
How can cognitive responses be categorized?
Who are the participants in the IMC Process?
The way a company (the client) organizes its Advertising and Promotions depends on…
- Its size
- The number of products it markets
- The role of advertising and promotion in the marketing mix
- The budget
- •Its marketing organization structure
What does a centralized Advertising Department look like?
What are the pros and cons of a centralized Marketing Department?
Pros:
- Better communications
- Fewer personnel
- Staff continuity
- More top management involvement
Cons:
- Hard to understand the overall marketing strategy
- longer response time
- impactical for multiple brands, products, divisions
What does a decentralized Marketing Department look like?
What are the Pros and Cons of a decentralized Marketing Department?
Pros:
- Concentrated managerial attention
- Rapid problem and opportunity response
- increased flexibility
Cons:
- Ineffective decision making
- Internal conflicts
- Misallocation of funds
- Lack of authority
- Internal focus
What are the pros and cons of In-House Marketing Agencies?
Pros:
- Cost savings
- more control
- Increased coordination
- Stability
- Access to top management
Cons:
- Less experience
- Less objectivity
- less flexibility
- Less access to top creative talent
What are some possible reasons for using an Ad Agency?
- Highly skilled specialists
- Specialization in a particular industry
- Objective viewpoint of the market
- Broad range of experience
What do Full-Service Marketing Agencies offerß
What are creative Boutiques?
- provide only creative services
- May subcontract from full-service agencies
- Strength is turning out creative work quickly
What is Media Buying?
Media Specialist Companies that:
- specialize in buying media, especially broadcast time
- Agencies and clients develop media strategy
- Media buying organizations implement strategies, and buy time and space
What are the tasks of Evaluating Agencies?
What are some common reasons why Advertising Agencies loose clients?
- Poor performance
- poor communication
- Unrealistic client demands
- Personality conflict
- Personnel changes
- Client/ agency size change
- Conflict of interest
- Strategy change
- Declining sales
- Compensation conflict
- Policy changes
- Marketing/ strategy conflict
- Lack of integrated marketing capabilities
What services do Direct-Marketing Agencies provide?
- Database management
- Media services
- Direct mail
- Creative capabilities
- Research
- Production
What are the tasks of Sales Promotion Agencies?
- Promotional planning
- creative research
- Tie-in coordination
- Fulfillment
- Premium design and manufacturing
- Catalog production
- Contest/ sweepstakes management
What are the tasks performed by Public Relations Firms
- Strategy development
- Generating publicity
- Lobbying
- Public affairs
- News releases, communication
- Research
- Special events
- Managing crisis
- Coordination w/promotional areas
What are the task performed by Interactive Agencies?
- Websites
- Banner ads
- Search engine optimization
- Mobile marketing
- Social media campaigns
- Digital media
Why can it sometimes be hard to set objectives for Promotional Programms?
- Complex marketing situations
- Conflicting perspectives
- Uncertainty over resources
What are the characteristics of objectives?
- specific
- measurable
- quantifiable
- realistic
- attainable
Sales vs. Communications Objectives
Sales Objectives
• Primary goal is increased sales
• Requires economic justification
• Should produce quantifiable results
Communications Objectives
• Increased brand knowledge, interest, favorable attitudes and image
• Immediate response not expected
• Goal is creating favorable predispositions
What are some of the problems with Sales Objectives?
- Won’t work in isolation
- Ad effects take time
- Hard to determine precise relationship between advertising and sales
- Offers little guidance to those planning and developing the promotional program
What factors can influence sales?
- Competition
- Technology
- The economy
- Product quality
- Price
- Distribution
- Advertising & Promotion
How can communications objectives be categorized?
How should the Budget for Promotional Programms be adjusted in different situations?
What are the two Sales Response Models?
What factors are influencing the advertising budget?
- product life cycle
- product durability
- Differentiation
- Hidden product qualities
- Product Price
- Purchase frequency
Top-Down vs. Bottom-Up Budgeting
What are Top-Down Budgeting Methods?
- Affordable Method
- Arbitrary Allocation
- Percentage of Sales
- Competitive Parity
- Return in Investment
Implementing the Objective and Task Approach
What organizational characteristics can influence advertising and promotion budgets?
- The organization’s structure
- Power and politics
- The use of expert opinions
- Characteristics of the decision maker
- Approval and negotiation channels
- Pressure on senior managers to arrive at the optimal budget
What is the difference between Creative Strategy and Creative Tactics?
Creative Strategy:
Determining what the advertising message will say or communicate
Creative Tactics:
Determining how the message strategy will be executed
What are the two different perspectives about creativity in marketing?
What are the Determinants of Creativity?
What are some common characteristics for creative personnel?
- Unconventional
- Abstract
- Less structured
- Less organized
- Intuitive
How can one get creative input?
- Read anything related to the product or market
- Conduct studies of product, service, audience
- Use the product to become familiar with it
- Listen to what people are talking about
- Work in and learn about the client’s business
- Ask everyone involved for information
Input Verification and Revision
Objective
- Evaluate ideas
- Reject the inappropriate •Refine the remaining •Give ideas final expression
Techniques
- Directed focus groups
- Message communication studies •Portfolio tests
- Viewer reaction profiles
What does a Creative Brief consist of?
- Basic problem or issue the advertising must address
- Advertising and communications objectives
- Target audience
- Major selling idea or key benefits to communicate
- Creative strategy statement
- Supporting information and requirements
Search for a Major Selling Idea
- Finding the inherent drama
- Use a Unique Selling Position
- Positioning
- Create a Brand Image
What are Unique Selling Propositions (USP)?
A Unique Selling Proposition (USP) is a unique selling point or slogan that differentiates a product or service from its competitors. A USP may include words such as the “lowest cost,” “the highest quality,” or “the first-ever,” which indicates to customers what your product or service has that your competitors do not.
Benefit:
Buy this product/service and you will get this benefit
Uniqe:
Must be unique to this brand or claim, rivals can not or do not offer it
Potent:
Promise must be strong enough to move mass millions
What does Inherent Drama mean?
Messages generally presented in a warm, emotional way
Focuses on consumer benefits with an emphasis on the dramatic element
What is positioning?
Establish a particular place in the customer’s mind for the product or service
Based on product attributes/benefits, price/quality, use or application, type of user, or problem solved
