integrated marketing concepts (week 11 + 12) Flashcards
Promotion mix
Advertising
Sales promotion
Personal selling
Public relations (PR)
Mail
Direct and digital marketing
Advertising
Non-personal communication paid for an identified sponsor, using third party media, to persuade or inform
AIDA Model
“The AIDA marketing model is a model within the class known as hierarchy of effects models or hierarchical models, all of which imply that consumers move through a series of steps or stages when they make purchase decisions”
AIDA steps
Attention
- Customer becomes aware of a category, product, or brand (usually through advertiisng)
Interest
- Customer becomes interested by learning about brand benefits and how brand fits within lifestyle
Desire
- Customer develops a favorable disposition towards the brand
Action
- Customer forms a purchase intention, shops around, engages in trial or makes a purchase
Promotion Communications/Objectives (inform/stimulate/incentivize a sale)
Awareness - inform
Knowledge - educate the market
Desire - generate favorable feelings
Purchase - stimulate trial (not an official customer yet)
Loyalty - repurchase (second, third time they buy)
Types of Ads
Online ads
Newspapers
Billboards
TV
Direct mail
Phone
Traditional Media (not digital)
Billboards (out of home)
Radio/TV (broadcast)
Magazines
Newspapers
Mail (direct/physical)
Product advertising:
focus on promoting specific good/service
Introduce/educate
Emphasize features/benefits: convince the audience to buy (people buy benefits!!)
Remind & reinforce
Overall objective: convince customers our product has the best features
Institutional advertising (aka corporate advertising)
promoting the activities, personality, or point of view of an organization
Advocacy to influence
Build awareness, promote ideas (usually positive ideas/image)
Influence opinions of stakeholders
Public Service Advertising (PSA): run for the public good, i.e. smoking ads
Retail & Local ads
Drive traffic to a specific store or location
Supermarkets, local stores, department stores
Highest $$$ category of spending
Local cable, radio, media
Promotes sales, discounts, or special events to encourage customers to visit the store and make purchases
Advertising Campaign
series of ads around a central theme or idea
Multiple channels
Multiple executions
No time parameters (possible, not necessarily)
Can run multiple campaigns simultaneously, short term, seasonal (i.e. holiday stuff) etc.
Can have open-ended terminologies
Advertising Agencies
“A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs.”
A. Agency Key Roles
Account management: interact directly with clients, make reports, production calls, daily functions and planning (run the business side)
Creative services: writers, art directors (“heart”) – create the ads themselves, work as a team, visuals, find best ways to communicate
Research (“brains”): create protocols, fund/run the research that companies use to substantiate the claims. Can uncover new ideas for products, or run focus groups
Media planning/buying (“legs”) : negotiable, not a fixed cost. Need to buy the medium you want to use to advertise (i.e. space in a newspaper, screen time on a TV) → how much it costs to buy, what the most effective mediums are is decided by this department.
Six Executional Styles of Advertising
- Unique Selling Proposition (USP)
One clear reason/attribute why our product is the best
Repetition makes it effective
Charmin → softest toilet paper - Comparative advertising
Compare your brand to another to prove it’s better supported by research
“in which a company directly or indirectly compares its brand with one or more other brands” - Demonstration
- Testimonial: user testifies for the product
“This style features a highly believable or likable source endorsing the product. It could be ordinary people saying how much they like a given product. Or it might be a celebrity presenting the product. - Slice of life: make relatable to customer’s lives
This style shows one or more “typical” people using the product in a normal setting. - Lifestyle: making it seem like an integral lifestyle choice, “selling” a lifestyle
This style shows how a product fits in with a particular lifestyle.
Six Types of Advertising Appeals
Fear
Humor
Sex
Music / rationality (slogans/jingles)
Emotions
Scarcity
Advertising budget
“The dollars and other resources allocated to a product or a company advertising program.”
Four Budgeting Methods for Media
- Affordable Method
- Percentage-of-sales method
- Competitive parity
- Objective and task
Affordable Method (budgeting)
Set the promotion budget at the level that is affordable for the company
- Usually used by small companies
- Start with total revenues, deduct total expenses, left with a small portion of funds for advertising
- Often results in underspending
Percentage of Sales Methods
“Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.”
Associates promotion with increases in revenue instead of other way around
Difficult for long-range planning
Competitive Parity
Setting the promotion budget to match competitors’ outlays.
- SHARE OF MARKET = SHARE OF VOICE
- You spend in proportion to your market share. If you’re 20% of the market, 20% of your budget goes to ads.
- May cause promotion wars
- Competitors may not be a good indicator of spending
Objective and Task
Developing the promotion budget by
(1) defining specific promotion objectives
(2) determining the tasks needed to achieve these objectives, and
(3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
- Most difficult to use
Advertising mediums
- Reach medium: to reach a broad audience and or expose as many people as possible to your message
- Frequency medium: to repeatedly expose a smaller, targeted audience to your message multiple times
- Out of home: advertising that reaches customers when they are outside of their homes in public spaces (i.e. billboards, ads on public transport)
- Place-based advertising: advertising that targets customers in specific locations repeatedly (i.e. doctors offices, gyms, grocery stores)
CPM (cost per thousand)
The average cost a company pays for 1,000 advertisement impressions.
Reach
% of market exposed to the ad at least once
“Reach is a measure of the percentage of people in the target market who are exposed to an ad campaign during a given period of time”
Frequency
Average # of times an ad is seen by customers
“a measure of how many times the average person in the target market is exposed to a message”
Gross Rating Points
Reach x frequency, measure if advertising is effective
Impressions
Total number of times an ad is seen by all viewers
Public Relations (PR)
“Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events”
PR Tools
- News – PR professionals find or create favorable news about the company about the company and its products or people
- Special events – range from news conferences, to speeches, to brand tours
- Sponsorships –
- Guerilla marketing – doing things “under the radar”
Uses of PR
- Product publicity – Support new product introductions
- Lobbying – Influence government legislation
Enhance image of city, region, country - Public affairs – Call attention to good deeds (philanthropic)
- Press relations – Positive spin on a negative event
Creative concept
The compelling “big idea” that will bring an advertising message strategy to life in a distinctive and memorable way
Execution style
The approach, style, tone, words and format used for presenting an advertising message
