part three Flashcards
what does a high BDI/high CDI indicate?
- high market share
- good market potential
- market usually represents good sales potential for product + brand
what does a low BDI/high CDI indicate?
- low market share
- good market potential
- product category shows high potential but brand isn’t doing well; determine reason
what does a high BDI/low CDI indicate?
- high market share
- monitor for sales decline
- category isn’t selling well but brand is; may be good market to advertise in
what does a low BDI/low CDI indicate?
- low market share
- poor marketing potential
- product category + brand aren’t doing well; not likely good place to advertise
differentiate between the 3 methods of duration and scheduling
continuous: advertising every day, week or month; flighting: periods of on and off advertising; pulsing: combo of continuous and flighting, continuity is maintained but at certain periods advertising is increased
what is the index number a good indicator of?
the potential of the market
how do you calculate the index number?
(percentage of users in a demographic segment) divided by (percentage of population in the same segment), multiplied times 100
what does the BDI help marketers factor?
the rate of product usage by geographic area into the decision process (or where to promote)
how do you calculate the BDI?
(percentage of brand to total US sales in market) divided by (percentage of total US population in market), multiplied times 100
how do you calculate the CDI?
(percentage of total product category sales in market) divided by (percentage of population in the same segment), multiplied times 100
how do the calculations of CDI differ from BDI?
CDI uses product category information instead of brand information
penelope is the marketer for sassybrands, a company that sells high-end toilet paper and power towels. she wants a tv ad that will cover the entire buying cycle and build awareness around their new product: high-end tissues. which scheduling method should she use? why? (4) what are the disadvantages? (3)
- continuity
- constant reminder for regularly consumed products, covers entire buying cycle, effectiveness, awareness-building
- high costs, potential for overexposure, media availability
kita is the marketer for oh.ho.flo, a company that specializes in minimalistic authentic christmas trees and valentine bouquets. since it’s such a niche company, kita is working with a pretty small budget. which scheduling method should she use? why? (3) what are the disadvantages? (2)
- flighting
- season product used only a couple times per year, highly cost effective
- increased likelihood of wear out, lack of awareness/interest/retention during off-times, vulnerability to competing messages during off times
ishtar is the marketer for T-4-2, a specialty tea company that sells loose-leaf teas, tea brewers, iced and hot teas to-go, tea kettles, tea infusers, tea candies, tiny teas, tea shirts—the list goes on. ishtar has noticed a spike in to-go iced tea sales during the summer and wants to capitalize on this trend. what scheduling method should she use? why? what are the disadvantages? (3)
- pulsing
- good for products that have little sales variation from period to period, but might see some increase during certain times
- moderately expensive, some overexposure, not appropriate for highly seasonal products
how many frequency exposures should penelope, kita, or ishtar aim for?
3 (min) to 12
what marketing factors increase frequency? (3)
- high usage cycle (item purchased often)
- high competition
- new brand
what message factors increase frequency? (3)
- new campaign
- image advertising
- complex + varied messages
what media factors increase frequency?
amount of clutter
what marketing factors decrease frequency? (3)
- high brand loyalty and market share
- high ability to process and recall messages
- low usage cycle
what message factors decrease frequency? (2)
- continuing campaign
- simple and single messages
what media factors decrease frequency? (5)
- alignment with media content
- continuous scheduling
- fewer media
- level of attention achieved by media
- repeat exposures
why is clutter problematic?
no one message is able to stand out; the messages’ effectiveness cancel out each other
how often do continuity-scheduled advertisements appear?
every day, week, or month
what products are continuity-scheduled advertisements best for?
non-season products like food, household products, and other everyday products
how does pulsing differ from continuity?
pulsing includes continuity strategies with a heavy concentration of promotional efforts at certain times
what processes are best for the pulsing scheduled method? why?
consumer response processes that begin with model (e.g. affinity model) and those target valued consumers
bursts come around sales promotions or other major events
how does TRP differ from GRP?
-TRP does not include waste coverage (duplicated reach)
what does a rating point represent?
-1% of all households in a particular area tuned into a specific program
when is it more beneficial to select a medium with a higher CPM?
if it’s reaching more potential receivers
what are the promotional advantages of tv?
- mass coverage + high reach = cost effective
- captivating and attention getting
- targets selectivity
- flexibility
what are the promotional disadvantages of tv?
- Fleeting messages
- High costs
- Audience distrust
- Message avoidance
- Increased clutter
- Not for niche markets
what are the promotional advantages of radio?
- Low cost to produce and purchase
- Good for smaller niche markets
- High receptivity
- Selectivity
- Flexibility; can be used in conjunction with other media (synergy). Stations and personalities enhance local involvement
what are the promotional disadvantages of radio?
- Limited comm and creative options
- Less status and prestige
what are the promotional advantages of newspapers?
- High penetration and flexibility
- Geographic selectivity
- Low cost
- Match ads w/ editorial content
- Timely (Published daily)
what are the promotional disadvantages of newspapers?
- Low production quality
- Short lifespan
- Low attention-getting
- Clutter
- Declining circulation
what are the promotional advantages of magazines?
- Segmentation and selectivity
- High receptivity
- High info content
- Permanence
- High quality reproduction
what are the promotional disadvantages of magazines?
- Visual only
- Limited frequency and reach
- High competition
- High clutter
- Declining circulation
what are the promotional advantages of using the internet?
- Target marketing
- Sales potential
- Message tailoring
- Creativity, interactive capabilities
- Exposure speed
- Info access
- Complementary IMC
what are the promotional advantages of using the internet?
- Measurement problems
- Clutter
- Potential for deception
- Privacy
- Irritation
- Annoyance
what does social media struggle with?
issues of privacy and surveillance.
index number definition
potential of the market
brand development index definition
determines sales potential for a certain brand
category development index definition
determines sales potential for a certain category
advantages of continuity
constant reminder, effective, builds awareness, covers entire buying cycle
disadvantages of continuity
costly, potential for overexposure, lack of media availability
advantages of flighting
good for seasonal products, cost effective
disadvantages of flighting
wearout, competing messages, lack of awareness during off season
advantages of pulsing
combination, use of affinity model
disadvantages of pulsing
expensive, overexposure
products for continuity
products consumed regularly, e.g. household items or food products
products for flighting
seasonal items or products consumed mostly during certain time periods
products for pulsing
products with little sales variation from period to period but might see some increase in certain months, e.g. beverages (hot/cold)
reach
amount of people who see the message
frequency
how often the message is sent
GRP
gross rating point = reach * frequency
TRP
target rating point = target reach * frequency
marketing factors that increase frequency
new product, new brand, high usage cycle, high competition
marketing factors that decrease frequency
brand loyalty, ability to recall messages, low usage cycle
message factors that increase frequency
new campaign, image advertising, complex/varied messages
message factors that decrease frequency
uniqueness, continuing a campaign, simple message, potential for wear-out
media factors that increase frequency
clutter
media factors that decrease frequency
alignment with media content, continuous scheduling, fewer media, level of attention, repeat exposure
print media
Cost per thousand (CPM) = (cost of space/circulation) * 1000
broadcast media
cost per rating point (CPRP) = (cost of duration/program rating)
television households
number of households that have a tv
program rating
(households watching show/total of households that own a tv)
share of audience
(households watching show/total households using tv at a specified time)
households using tv
number of tvs being used during a specific time period
promotional tv advantages
mass coverage, attention getting, flexibility, targets selectivity
promotional tv disadvantages
high cost, fleeting message, audience distrust, clutter, not for niche markets
promotional radio advantages
low cost, good for niche, higher receptivity, selectivity, and flexibility
promotional radio disadvantages
limited communication, lack of creativity, less status/prestige
promotional magazine advantages
high quality, high receptivity, segmentation/selectivity, high information, permanence
promotional magazine disadavantages
long lead time, visual only, high competition, high clutter, declining circulation
promotional newspaper advantages
geographic selectivity, high involvement, low cost, placed by editorials/ads/promotions, high penetration and flexibility, short lead time
promotional newspaper disadvantages
low quality, short lifespan, not attention getting, selective reading exposure, declining circulation, clutter
The Internet advantages
target marketing, message tailoring, interactive capabilities, information access, sales potential, creativity, exposure/speed, complement to IMC
The Internet disadvantages
clutter, deception, privacy/surveillance, irritation/annoyance
features of Web 2.0
shift of power from publishers to consumers, “pull” environment, interactivity, “rich” media, gamification, brand equity
theoretical perspectives: cognitive response model. what two thoughts are related? what’s the impact of attitude?
- exposure + thoughts + attitudes = purchase intent
- ad execution thoughts, source oriented thoughts
- attitude towards ad influences attitudes about brands
theoretical perspectives: ELM
involvement, motivation, ability; central vs peripheral
factors that determine effectiveness: personal (3)
perceived interactivity, involvement, flow
factors that determine effectiveness: website/brand (6)
actual interactivity, usability, modality, number of functions, fit with brand image, type of product
bought media
traditional ads; company paying for media exposure (e.g. magazine ad)
owned media
website, blog, facebook, twitter; something the company owns and controls
earned media
publicity, social media, “buzz,” viral; promotion through other people
7 types of social media functionality
identity, presence, relationships, reputation, groups, conversations, sharing
identity
users reveal themselves
presence
users know that others are there
relationships
users relate to each other
reputation
users know where they and the brand stand
groups
users belong to something
conversations
users communicate
sharing
users exchange content
word of mouth advantages
credible, rich, influential, increases recall, engagement, motivation and persuasion
EWoM
larger reach, short lifespan, measurable
what is social capital? why is it important?
- utility derived from social connections to achieve goals
- used for promotion, to spread message within network of associations and the audience will promote for you
market mavens
opinion leaders; center of networks, access to a large amount of market info and proactively engage in conversations with others
social hubs
network bridges
social ties
strong: close friends/family
viral marketing; what does it try to tap into?
users create exponential growth and “buzz,” synonymous with word of mouth; attempts to tap into existing social networks and capitalize on social capital for promotion
promotional objectives of viral marketing
to create buzz
characteristics of viral marketing campaigns
messages that elicit an emotional response
U: uncertainty
A: adversive: people get hurt/embarrassed
A: affirmation
A: appetitive: funny/cool content
Dunbar’s number
people can only have relationships with 150 people
significance of Dunbar’s number
more open to message = more credible = less likely to counter-argue
weaknesses of viral marketing
- boomerang; in an attempt to connect or capitalize on trends (e.g. be funny), company drives away consumers by being offensive (audience tracks message back to brand –> lost control of message –> negative word of mouth)
- must rely on other strategies as well
- success not measurable
guerrilla marketing
unconventional and low budget brand experiences designed to grab attention and create buzz and/or publicity and attention; high-impact
guerrilla marketing vs. viral marketing
guerrilla is not necessarily persuasive or used to leverage social networks, greater focus on mass communication than interpersonal
three roles of public relations
management function which:
- evaluates public attitude
- identifies the policies and procedures for an organization with public interest
- executes a program of action to earn public understanding and acceptance
marketing public relations
integration of PR into the promotional mix
relationship between marketing and public relations
separate functions (traditional coordinated and equal integrated
six functions of MPR
- building market excitement before media ads break
- creating news where there is no news
- introducing a product with little or no advertising
- building brand-to-customer bonds
- influencing influentials, giving info to opinion leaders
- defending products at risk, giving consumers reasons to buy
advantages of MPR
cost effective, highly targeted way to conduct PR, 3rd party endorsement, achievement of credibility, break through clutter, circumvent resistance to sales efforts, improved customer media involvement, influence opinion leaders, improved ROI
disadvantages of MPR
lack of control over media coverage, difficult to tie in slogans, media time and space aren’t guaranteed, receiver not making connection to source, no standards for measurement
internal/associated audiences of MPR
stockholders & investors, customers & clients, employees, community members, vendors & suppliers
ways to reach MPR internal/associated audiences
newsletters, bulletin boards, direct mail/email, annual reports
external/independent audiences of MPR
educators, governments, financial groups, civic & business organizations, the media
ways to reach MPR external/independent audiences
public relations ads, press releases, conferences, research reports
tools of PR
interviews, press releases, press conferences, exclusives, community involvement, the internet
ways to measure PR effectiveness (4)
ratio of positive to negative articles –> percent of pos/neg articles overtime –> percent of pos/neg articles by subject/publication/reporter/target audience,
publicity definiton
the generation of news about a person, product, or service that appears in the media
publicity vs PR
publicity is: short-term, subset of PR, not always positive, often originates outside the firm
media relations
maintaining a positive, professional relationship with the media in general or with media that specialize in covering a specific industry (not interested in products, but ideas and trends)
advantages of publicity
credible, news value, word-of-mouth, endorsed by media
disadvantages of publicity
timing, inaccuracy/omission
corporate advertising definiton
extension of the PR function that does not promote a product or service, but the entire organization
objectives of corporate advertising
smooth labor relations, establish diversified company identity, create a positive image for the firm, communicate the organizations viewpoint, boost employee morale
types of corporate advertising
image, event, advocacy, cause-related
what’s the purpose of image advertising? list the types.
- create a favorable mental image (GE commercial)
- general image, positioning ads, sponsorship, recruitment, financial support
event sponsorship
activity to promote a product, cause, organization (krispy kreme run)
advocacy advertising
supports cause, view, or interest (energy tomorrow)
cause-related advertising
sales linked to a cause or nonprofit (RED campaign)
advantages of corporate advertising
excellent vehicle for positioning the firm, takes advantage of benefits derived from PR, reaches a selected target market
disadvantages of corporate advertising
questionable effectiveness, questions constitutionality/ethics, lack of consumer interest
support media
uses a variety of nontraditional channels to deliver communications and to promote products and services
examples of support media
billboards, transit, out of house, street furniture
branded entertainment
blends marketing and entertainment
advantages of support media
wide local coverage, high frequency, geographic flexibility, creativity, timeliness, creation of awareness, efficiency, sales effectiveness, production capability, source association, cost, targeting, acceptance
disadvantages of support media
waste coverage, limited message ability, wearout, high cost, measurement problems, image problems, lack of control, limited appeal, competition,
direct marketing definition
interactive system of marketing that uses one or more advertising media to effect a measurable response and or transaction at any location
growth of direct marketing because…
more credit cards, changing structure of society, and technological advances
one step approach
goal is to generate an immediate sale when ad is shown
two-step approach; differentiate the two efforts
may involve one or more medium; 1st effort to screen or qualify potential buyer, 2nd to generate a response
CPO
cost per order: evaluates effectiveness of a direct ad based on number of calls generated
CLTV
customer lifetime value: determines dollar value associated with a long term relationship with a customer from direct marketing
media vehicle
the specific program, publication, or promotional piece used to carry an advertising message
reach
the number of different audience members exposed at least once to a media vehicle(s) in a given period (actual audience)reach of one program, two programs, duplicated reach of both, unduplicated reach of both
coverage
a measure of the potential audience that might receive an advertising message through a media vehicle
frequency
the number of times a target audience is exposed to a media vehicle(s) in a specific time period
index number
a ratio used to describe the potential of a market. derived by: dividing the percentage of users in a market segment by the percentage of population in the same segment and multiplying by 100
brand development index (BDI)
an index that is calculated by taking the percentage of a brand’s total sales that occur in a given market as compared to the percentage of the total population in the market; the higher the BDI number, the greater the potential that exists
category development index (CDI)
an index that is calculated by taking the percentage of a product’s category’s total sales that occur in given market area as compared to the percentage of the total population in the market; the higher the CDI number, the greater the potential that exists for that category products
continuity
a media scheduling strategy where a continuous pattern of advertising is used over the time span of the advertising campaign
flighting
a media scheduling pattern in which periods of advertising are alternated with period of no advertising
pulsing
a media scheduling method that combines flighting and continuous scheduling
unduplicated reach
the number of persons reached once with a media exposure
duplicated reach
individuals exposed to the same commercial on two or more media vehicles
program rating
the percentage of TV households in an area that are tuned to a program during a specific time period
gross ratings points (GRPs)
a measure that represents the total delivery or weight of a media schedule during a specified time period. GRPs are calculated by multiplying the reach of the media schedule by the average frequency
target ratings points (TRPs)
the number of persons in the primary target audience that the media buy will—and the number of times
cost per thousand (CPM)
a computation used in evaluating the relative cost of various media vehicles that represents the cost of exposing 1,000 members of a target audience to an advertising message (relative cost of print media)
cost per ratings point (CPRP)
a computation used by media buyers to compare the cost-efficiency of broadcast programs that divides the cost of commercial time on a program by the audience rating (relative cost of broadcast media)
television households
number of households that own a TV
households using TV (HUT)
percentage of homes in a given area where TV is being watched during a specific time period
share of audience
percentage of households using TV in a specific time period that are tuned to a specific program
which type of social media functionality uses data privacy controls and tools for user self promotion? what is its function?
identity; extent to which users reveal themselves
which type of social media functionality manages the structural and flow properties in a network? what is its function?
relationships; extent to which users relate to each other
which type of social media functionality is based on membership rules and protocols? what is its function?
groups; extent to which users are ordered or form communities
which type of social media functionality uses a content management system and social graph? what is its function?
sharing; extent to which users exchange, distribute, and receive content
which type of social media functionality focuses on creating and managing the reality, intimacy, and immediacy of the content? what is its function?
presence; extent to which users know if others are available
which type of social media functionality monitors the strength, passion, sentiment and reach of users and brands? what is its function?
reputation; extent to which users know the social standing of others and content
which type of social media functionality involves the velocity and risk of starting and joining it? what is its function?
conversations; extent to which users communicate with each other
according to the seven types of social media functionality, what are the primary differences between youtube and facebook?
YouTube:
- primarily about sharing
- followed by conversations, Groups, Reputation
- and finally identity, Presence, Relationships
Facebook:
- ) Relationships
- ) Presence, Identity, Conversation, Reputation
- ) Sharing, Groups
what is the difference between strong ties and weak times?
strong: strongest and most immediate social connections (e.g. close friends, nuclear family); weak: more distant connections, indirect (e.g. acquaintances)
penelope, the sassybrands manager, is working with a pretty extensive budget to promote her new line of high-end tissues. she wants to create a really chic, sleek, attention-grabbing advertisement that gets the word out to a lot of people. which promotional medium is the best solution for her? why? what are some disadvantages?
- TV
- mass coverage with high reach makes it cost effective, captive and attention getting
- increased clutter, high costs, audience distrust, message avoidance
ishtar is trying to promote the T-4-2 specialty summer promo. she wants to use multiple media to advertise the promotion and wants to capitalize on local celebrities. she’s also working with a smaller budget. which promotional medium is the best solution for her? why? what are some disadvantages?
- radio
- low cost, niche market, high receptivity, flexibility to use with other media, enhance local involvement
- limited communication and creative options, less status and prestige
kita wants to market oh.ho.flo specifically to central ohio and southeastern iowa because those two areas are just obsessed with minimalistic christmas trees. she’s unsurprisingly working with a smaller budget and as the holiday season nears there’s been a lot of buzz around decorations. she wants to be able to reach her audience daily. which promotional medium is the best solution for her? why? what are some disadvantages?
- newspapers
- high penetration and flexibility, geographic selectivity, low cost, match ads with editorial content, timely
- low production quality, short lifespan, low attention-getting, clutter, declining circulation
penelope of sassybrands wants to incorporate another medium into her high-end tissue campaign. she still wants to stay in theme of her chick, sleek, attention-grabbing campaign, targeting an upper class and fashionable demographic. she also wants to elaborate on the benefits of the product. which promotjional medium is the best solution for her? why? what are some advantages?
- magazines
- segmentation and selectivity, high info content and receptivity, high quality reproduction
- visual only, limited reach, high competition and clutter, declining circulation
word of mouth disadvantages
facts can be distorted by many people
which two metrics are used to assess the effectiveness of direct marketing?
cost per order (CPO) and customer lifetime value (CLTV)
what are some factors that have contributed to billboard advertising success?
- increase in number of women in workforce
- vehicles on road
- innovation through technology
what is corporate advertising an extension of? how does it differ from other forms of advertising? what is it designed to do and how?
- the pr function
- doesn’t promote specific product or service
- promote the overall firm by: enhancing its image, assuming a position on a social issue/cause, or seek direct involvement in something
what are examples of PR tools? (6)
press releases, press conferences, exclusives, community involvement, the internet, interviews
