Exam #1 Flashcards
What are the 4 Fundamental Decisions of Marcom
- Targeting
- Positioning
- Setting objectives
- Budgeting
What are the Implementation Decisions in Marcom
- Mixing Elements
- Creating Messages
- Selecting Media
- Establishing Momentum
What is Integrated Marketing Communications or IMC
The coordination of the promotional mix elements with each other and with other elements of the brand’s marketing mix so that all elements speak with one voice.
Why Integrated Marketing Communications or IMC
Integrating multiple communication tools/media produce more positive communication results than the tools used individually.
What is Promotion Management
Coordination of promotional mix elements such in setting objectives, establishing budgets, designing programs, evaluating performance, and taking corrective action.
Marcom Decisions should be what?
- directed to a specific target market.
- clearly positioned
- created to achieve a specific objective.
- be accomplished within the set budget.
What are the six concepts of Promotional Management?
- Advertising
- Public Relations
- Sales Promotion
- Digital Marketing/ Social Media
- Personal Selling
- Direct Marketing
What is Targeting and why is it important?
Precise delivery of marketing communications to targeted markets
Prevents wasted coverage
4 Targeting Variables
- Demographics
- Psychographics
- Geodemographics
- Behaviorgraphics
Demographics
Statistics that measure observable aspects of a population.
Age
Gender
Family Structure
Social Class/ Income
Race/ Ethnicity
Geography
Psychographics
Are the differences in consumers’ personalities, attitudes, values, lifestyles.
Use of psychological, sociological, anthropological factors to determine how the market is segmented.
VALS & Yankelovich MindBase
Psychographic Targeting
Is a combination of consumers’ activities, interests and opinions (AIO items)
Useful but more difficult to identify and measure compared to demographic variables.
Geodemographic Targeting
Is the assumption that people living near each other will likely have similar demographic, socio-economic, and lifestyle characteristics.
Behaviorgraphic Targeting
Based on how people behave toward a particular product category or class of related products.
The best predictor of one’s future behavior is their past behavior.
Online Behavioral Targeting
Audience Management Systems to track internet users online behavior to target them with specific ads.
Easiest to hardest to measure Targeting Variable
Easiest to hardest
1.Demographics
2.Geodemographics
3. Psychographics
4.Behaviorgraphics
The best predictor of consumer behavior Targeting Variables
Best to Worst
1.Behaviorgraphics
2. Psychographics
3. Geodemographics
4. Demographics
What are the 3 Major Demographic Aspects?
Age Structure of the population
Change in household composition
Ethnic Population Developments
Middle-Aged
35-54 years old
Target category for luxury goods and youth
Mature Consumers
55 years or older
Are 27% of the total U.S. population and
Have the highest discretionary income and the most assets
Baby Boomers
Born from 1946-1964
Gen X
1965-1981, cynical and unmotivated.
Baby Busters
Not unified
Gen Y or Millennials
1982-1994/1996, familiar with internet, mobile devices and social media.
Change in U.S. Population and Implications for Marketers
Change: More diversity in the population because of the growth in all ethnic groups
Implication for Marketers: Need to create marcom strategies to meet ethnic groups’ unique wants/needs
Preschoolers are what age?
Preschoolers (5 years or younger)
Elementary school children age?
6 -11 years old
Tweens age?
8 - 12 years old
Teenagers age?
13 - 19 years old
Hispanics
Are the largest U.S. minority population segment
Are not a single unified market
Are underserved by current marketing efforts
Are responsive to advertising in their dominant language
African Americans
Geographically-concentrated, with 3/4s of all African- Americans living in 16 states.
Interested in prestige and name-brand products in greater proportion than do Caucasians.
Have spending power that totals nearly $1.1 trillion annually.
Asian-Americans
Represent many nationalities
Are better educated and have higher incomes than average
Occupy more prestigious jobs
Speak a variety of languages
Are heavy users of the Internet/technology
Fastest growing minority
Brand Positioning
The key feature, benefit, or image that the brand stands for in the minds of the target audience.
Position in Consumers mind and Positioned against competing brands.
Positioning Statement
Is how a brand wants customers and prospects to think and feel about their brand.
A description of the brands product and target audience and explains how it fills a market need.
2 Positioning Approaches?
Positioning via Attributes
or
Positioning via Brand Benefits
Attribute Positioning
Product- Related (Price, Color, Design, Safety)
Non-Product Related: Usage and User imagery
Example of Positioned via Usage imagery
The Coca-Cola “Share a Coke” ad is a campaign that features Coca-Cola cans and bottles with personalized labels, such as popular names or nicknames. By focusing on the act of sharing and the emotional connection it creates Coca-Cola positions itself as a brand that is meant to be enjoyed and shared with loved ones.
The usage imagery highlights the experience of consuming and sharing the product, rather than directly emphasizing its taste or ingredients.
Example of Positioned via User imagery
Just Do It ad is a prime example of positioning via user imagery. These ads are designed to inspire and motivate consumers by associating the brand with a sense of personal growth and triumph over challenges. The user imagery focuses on the athletes and their stories, positioning Nike as a brand that empowers individuals to push their limits, be active, and achieve greatness.
The ad does not primarily focus on the specific product attributes or features; rather, it constructs a strong brand image through the user imagery.
Usage Imagery
Describes the context in which to use the brands product or service.
User Imagery
Describes the user of the brand with personality traits.
What are the 3 Brand Benefits?
Functional Needs
Symbolic Needs
Experiential Needs
Functional Needs
Products that attempt to fulfill the consumer’s consumption-related problems/needs.
Examples:
Convenience
High quality
Fast delivery time
Cleanliness
Safety
Good health
Symbolic Needs
Examples:
Need for status
Need for power
Need for belonging/membership
Need for uniqueness
Need for altruism
Experiential Needs
Examples:
Looking elegant
Tasting/smelling great
Sounding divine
Being exhilarating
Exciting
Challenging
Mentally entertaining
Vals Framework
The VALS framework divides consumers into eight categories based on their demographics, lifestyles, behaviors, ideals, achievements, and self-expression orientation.
It provide marketers with insights into the motivations and preferences of different consumer segments.
VALS 3 motivational orientations
- Ideals-oriented
- Achievement-oriented
- Self-expression-oriented
VALS Motivational orientations: Ideals Oriented
Guided by their views of how the world should be.
Thinkers and Believers
VALS Motivational orientations: Achievement-oriented
Guided by the actions and opinions of others.
Achievers and Strivers
VALS Motivational orientations: Self-expression-oriented
Guided by a desire for social or physical activity, variety, and risk taking.
Experiencers and Makers
Vals Framework: Innovators
These individuals are high-income, highly educated, and possess a variety of resources and high innovation.
They are motivated by achievement, enjoy premium brands, and are early adopters of new products and technologies.
Vals Framework: Thinkers
Thinkers are well-educated, prefer intellectually stimulating activities, value knowledge/expertise.
They are rational decision-makers and do research before making a purchase.
They tend to be cautious and favor quality over price.
Vals Framework: Achievers
Achievers are career-oriented individuals who are motivated by success and products that convey this success.
They have high incomes, seek out established brands, and value reliability and durability.
Vals Framework: Experiencers
This group comprises young, enthusiastic, and impulsive individuals who are motivated by self-expression and variety.
They seek out novel experiences and are willing to take risks.
Experiencers are trendsetters and enjoy trying new products and brands.
Vals Framework: Believers
Believers are conservative individuals who are motivated by tradition, stability, and security.
They have strong religious or moral values and prefer familiar and established brands.
They are loyal customers and tend to make purchases based on the recommendations of others.
VALS Framework: Strivers
Strivers are individuals with modest incomes who are motivated by material possessions and social status.
They aspire to be achievers but often lack the resources to do so.
They are eager to prove themselves and are receptive to marketing messages that promise an improved lifestyle.
VALS Framework: Makers
Makers are independent and practical individuals who enjoy hands-on activities and creating things.
They prefer functional/practical products and are motivated by sustainability and self-reliance.
Maker’s value personal achievement and tend to be loyal customers.
VALS Framework: Survivors
Survivors are individuals with lower incomes who are motivated by meeting their basic needs and maintaining security.
They tend to be elderly, retired, or living on a fixed income.
Survivors are price-conscious and value practicality and reliability in products.
Claritas’s PRIZM
Potential rating index by zip markets
Delineated the U.S. neighborhoods into 60+ clusters with descriptive names that characterize these regions.
Built to help marketers find prospects faster and sell smarter, provides rich insights into every household in the U.S. including demographics, lifestyle and media preferences, shopping behaviors and technology usage.
Product Adoption
Introduction and acceptance of new ideas, including new brands.
Essential to long-term market success
Marketing Communications
Facilitates successful new product introductions
Reduce the product failure rate
Adoption Process and Marcom Tools: 3 classes
- Awareness Class: Free samples and coupons, trade shows/personal selling, advertising, distribution
- Trier Class: Coupons, Widespread distribution, and introductory low pricing.
- Repeater Class: Personal selling, advertising, price, distribution, and product salinification.
What are the 5 Innovation Related Characteristics
Relative Advantage
Compatibility
Complexity
Observability
Trialability
Innovation Related Characteristic: Relative Advantage
Facilitates new product adoption
A product innovation is perceived as better than
existing alternatives
Positively correlated with an innovation’s adoption rate
Relative disadvantage (e.g., high price, difficulty of learning how to use)
Consumer Perception of a New Brand versus Alternatives
Better Performance, Time and Effort Saving, and Immediacy of Reward
Innovation Related Characteristic: Compatibility
Facilitates new product adoption
An innovation is perceived to fit into a person’s way of doing things.
The greater compatibility, the more rapid a product’s rate of adoption.
Overcome perception of incompatibility through: Heavy advertising.
Compatibility Factors Affecting the Rate of New Brand Adoption
Consumer Needs, Personal Values/Beliefs, and Past Consumption Practices
Innovation Related Characteristic: Complexity
Hinders new product adoption
The innovation’s level of perceived difficulty
The more difficult, the slower the rate of adoption
Innovation Related Characteristic: Trialability
Facilitates new product adoption
An innovation can be used on a limited basis prior to making a full-blown commitment
The trial experience serves to reduce the risk of a consumer’s being dissatisfied with a
product after having permanently committed to it through outright purchase.
Innovation Related Characteristic: Observability
Facilitates new product adoption
Consumers can observe the positive effects of using the new product.
Higher the visibility, more rapid the adoption rate.
Word of Mouth
Impersonal sources: information received from the Internet, television, magazines, and other mass-media sources.
Personal sources: word-of-mouth influence from friends, acquaintances, and from business associates.
Opinion Leader
A person who frequently influences the attitudes or overt behavior of other individuals’
An informer, persuader, and confirmer
Influence is typically limited to one or several consumption topics
Influence moves horizontally through a social class (not across)
Opinion Leader Characteristics
More sophisticated
More Social
Slightly higher socioeconomics status (but exist at each SES level)
Generally more innovative
Willing to act differently/need to be unique
Market Mavens
Individuals who have a lot information about many kinds of products, places to shop, and other facets of markets.
They initiate discussions with consumers and respond to requests from customers for market information.
Seeding the Market
Supplying advance samples in key markets to people who are likely to be influential.
Finding cheerleaders who will get the talk started.
3 Steps of the Advertising Management.
- Advertising Strategy
- Strategy Implementation
- Assessing Ad Effectiveness
Advertising Strategy
Setting Objectives
Formulating Budgets
Creating Ad messages
Selecting Ad Media and Vehicles
What are the 5 advertising Functions
Informing
Influencing
Reminding
Adding Value
Assisting Other Company Efforts
Advertising Function: Informing
Makes consumers aware/educates them about the features and benefits, and facilitates the creation of positive brand images
Facilitates the introduction of new brands and increases demand for existing brands
Performs another information role by teaching new uses for existing brands (Usage expansion advertising)
Advertising Function: Influencing
Influences customers to try advertised products and services.
Primary Demand
Primary demand is creating demand for an entire product category.
Secondary Demand
Secondary demand is the demand for a specific company’s brand.
Usage Expansion Advertising
Informs consumers about how to use a product or service more.
Advertising Function: Reminding
Keeps a company’s brand fresh in the consumer’s memory.
Influences brand switching by reminding consumers who have not recently purchased a brand that the brand is available and that it possesses favorable attributes.
Advertising Function: Adding Value
Three basic ways by which companies can add value
1. innovating
2. improving quality
3. altering consumer perceptions
Advertising adds value to brands by influencing consumers’ perceptions.
Advertising Function: Assisting Other Company Efforts
Advertising is just one member of the marketing communications team
Sometimes, an assister that facilitates other company efforts in the marketing communications process.
Setting Advertising Objectives
Guides the budgeting, message, and media aspects of advertising strategy.
Are the decisions involving setting communication objectives, target audiences, and budgets related?
Yes, they are primary factors that determine the combination of media used in the Media Mix.
What are the 5 Advertising Objectives
Who
What
Where
When
How Often
Advertising Objective: Who
Specify target market.
Advertising Objective: What
Emphasis: the products features, benefits to be emphasized and the emotions to be evoked.
Goals: objectives that need to be accomplished at the present stage in a brand’s life cycle.
*What emphasis?
*What goals?
Advertising Objective: Where
Which geographic markets need to be emphasized?
Advertising Objective: When
What months or seasons are best?
Advertising Objective: How Often
How often should the brand be advertised?
What are the 4 Budgeting Methods?
Percent-of-Sales Budgeting
Objective-and-Task Method
Competitive Parity Method (match competitors method)
Affordability Method
Budgeting Method: Percentage-of-Sales Budgeting
A company sets a brand’s advertising budget by simply establishing the budget as a fixed percentage of past or anticipated sales volume.
Criticized as being illogical
Sales=f(Advertising) (o)
Advertising=f(Sales) (x)
Budgeting Method: Objective-and-Task Method
The most sensible and defendable advertising budgeting method
Specify what role they expect advertising to play for a brand and then set the budget accordingly.
Budgeting Method: The Competitive Parity
Method
Follow what competitors are doing
Remember what a good brand positioning is?
Budgeting Method: Affordability Method
Only the funds that remain after budgeting for everything else are spent on advertising.
Only the most unsophisticated and impoverished firms.
However, affordability and competitive considerations influence the budgeting decisions of all companies.
