integrated marketing concepts (week 11 + 12)

Question 1

Promotion mix

Answer 1

Advertising
Sales promotion
Personal selling
Public relations (PR)
Mail
Direct and digital marketing

Question 2

Advertising

Answer 2

Non-personal communication paid for an identified sponsor, using third party media, to persuade or inform

Question 3

AIDA Model

Answer 3

“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”

Question 4

AIDA steps

Answer 4

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

Question 5

Promotion Communications/Objectives (inform/stimulate/incentivize a sale)

Answer 5

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)

Question 6

Types of Ads

Answer 6

Online ads
Newspapers
Billboards
TV
Direct mail
Phone

Question 7

Traditional Media (not digital)

Answer 7

Billboards (out of home)
Radio/TV (broadcast)
Magazines
Newspapers
Mail (direct/physical)

Question 8

Product advertising:

Answer 8

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

Question 9

Institutional advertising (aka corporate advertising)

Answer 9

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

Question 10

Retail & Local ads

Answer 10

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

Question 11

Advertising Campaign

Answer 11

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

Question 12

Advertising Agencies

Answer 12

“A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs.”

Question 13

A. Agency Key Roles

Answer 13

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.

Question 14

Six Executional Styles of Advertising

Answer 14

1. Unique Selling Proposition (USP)
   One clear reason/attribute why our product is the best
   Repetition makes it effective
   Charmin → softest toilet paper
2. 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”
3. Demonstration
4. 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.
5. Slice of life: make relatable to customer’s lives
   This style shows one or more “typical” people using the product in a normal setting.
6. Lifestyle: making it seem like an integral lifestyle choice, “selling” a lifestyle
   This style shows how a product fits in with a particular lifestyle.

Question 15

Six Types of Advertising Appeals

Answer 15

Fear
Humor
Sex
Music / rationality (slogans/jingles)
Emotions
Scarcity

Question 16

Advertising budget

Answer 16

“The dollars and other resources allocated to a product or a company advertising program.”

Question 17

Four Budgeting Methods for Media

Answer 17

1. Affordable Method
2. Percentage-of-sales method
3. Competitive parity
4. Objective and task

Question 18

Affordable Method (budgeting)

Answer 18

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

Question 19

Percentage of Sales Methods

Answer 19

“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

Question 20

Competitive Parity

Answer 20

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

Question 21

Objective and Task

Answer 21

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

Question 22

Advertising mediums

Answer 22

• 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)

Question 23

CPM (cost per thousand)

Answer 23

The average cost a company pays for 1,000 advertisement impressions.

Question 24

Reach

Answer 24

% 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”

Question 25

Frequency

Answer 25

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”

Question 26

Gross Rating Points

Answer 26

Reach x frequency, measure if advertising is effective

Question 27

Impressions

Answer 27

Total number of times an ad is seen by all viewers

Question 28

Public Relations (PR)

Answer 28

“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”

Question 29

PR Tools

Answer 29

• 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”

Question 30

Uses of PR

Answer 30

• 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

Question 31

Creative concept

Answer 31

The compelling “big idea” that will bring an advertising message strategy to life in a distinctive and memorable way

Question 32

Execution style

Answer 32

The approach, style, tone, words and format used for presenting an advertising message