week 5 Flashcards
examples of marketing communication objectives
o Build brand awareness o Create good publicity o Stimulate point of purchase sales enhance brand image generate sale leads increase trials increase frequency of use promote additional benefits
benefits of advertising
Increase revenue through: o Increased trials o Number of customers o Increased repeat purchases o Increase brand equity
arguments against advertising
o Costly
o Uncertainty of effectiveness
profit = rev - expenses
explain how managers perceive advertising
Advertising•Investment to ensure the organisation’s long-term success.
Managers tend to regard advertising as an expense that can be reduced or even eliminated when financial pressures call for cost-cutting measures.
Advertising is like exercise –when you stop -the benefits stop.
Even for established brands it’s important for brand recall (e.g. top-of-mind)
what are the 5 ADVERTISING objectives
- Informing
- Persuading
- Reminding
- Adding value
- Assisting other company efforts
explain the advertising objective of ‘infoming’
Increases awareness of new brands
•Educates about brand features and benefits
•Facilitates the movement to the top-of-mind awrarenes
explain the advertising objective of persuading
Attempts to persuade a customer to try the product
•Persuades the consumer to think that their product can achieve the focal benefit(s)
•Influences the idea that it is better than other brands
explain the advertising objective of reminding
Keep the company/brand in the consumers minds.
•Some products may only be needed/wanted/used occasionally and consumers may forget that about the brand when it comes time to buy
.•Often, many products provide similar benefits (e.g. food/drink), and reminding keeps those products top-of-mind (e.g. Coke)
•Reminding may increase use and subsequent repurch
explain the advertising objective of adding value
Advertising can change perceptions of value of a brand
- Effective advertising can make a brand be seen as more stylish or prestigious
- More advertising often signals that the brand is more popular and subsequently of higher quality
explain the advertising objective of ‘assisting other company efforts’
Advertising is only one element and so should be used in conjunction with other efforts.
For example:•It can communicate price-reductions (sales-promotion)•Help provide base-level information for salespeople (personal selling)
•Assists in identifying brands at a store (point-of purchase)•Direct consumers to website (digital marketing)
draw the hierarchy of effect diagram
aggies tits
explain the difference between vaguely right and precisely wrong
Vaguely Right: You may not be able to predict sales accurately and you may not be able to say with certainty that your marketing led to sales. Nevertheless, sales/profit is what you should care about
Precisely Wrong: You may be able to measure awareness, attitudes, even trials, accurately, but since they may or may not result in sales/profit, you shouldn’t care about i
may be a measurement issue
or wrong choice of objective
explain measuring the hierarchy chain
By measuring each stage of the hierarchy chain, marketers can see whether their campaigns had the intended effect - and if not, they can see where in the chain the ‘problem’ is.
define media planning
Process of devising a marketing communication strategy that quantifies how Investments in money and time will contribute to achieving an organisations Marketing objectives
Quantifies – Relate to reach, frequency, recency planning, and the weight of message delivered
define reach
% of an advertiser’s target audience that is exposed to at least one ad over an established time frame
define frequency
Number of times, on average, within a media planning period that members of the target audience are exposed to the advertiser’s message
explain the trade off between reach and frequency
Assuming a consistent number of exposures across consumers, there is a trade-off
between frequency and reach
E.g. Show a commercial once on 3 different television programs or show it 3 times on the same television program
3 Exposure hypothesis – Minimum number of exposures needed for advertising to teach consumers about the product and its benefits
Recency planning principle - A consumers’ first exposure to a marketing message for a brand is the most powerful, thus achieving a high level of reach for a brand should be a goal
Ultimately, depends on objectives of organisation
how to increase reach
Varying media (e.g. television, magazines, newspaper) Varying vehicles (e.g. different television shows) Varying time of day (e.g. day vs. night time slots) More opportunity = More reach (but more expensive
explain continuous scheduling
relatively equal amount of ad spending is invested during each period
Good for products/services that are consumer at an equal rate throughout the year
draw diagram
explain pulsing schedule
Some spending is invested during each time period bu the amount varies period to period
God for products/services that are purchases throughout the year but more at specific times (e.g skiing)
draw diagram
EXPLAIN flight schedule
Allocates virtually zero spending during come months and then invests the rest in a few select months
Good for services/products that purchased as specific times
budget constraints
o The objective
o Competitors’ activity
o Funds available
define media planning
Media PlanningMedia planning –process of devising a marketing communications strategy that quantifieshow investments in money and time will contribute to achieving an organization’s marketing objective
define media objectives
The objectives relate to reach, frequency, recencyplanning, and the weight of the message delivered. They are designed to meet the marketing objectives
1) Proportion / number of the target market the message should reach
2) How frequently they need to be exposed
3) How much exposure is necessary to meet reach and frequency objectives
4) How should the budget be allocated over time
5) How close to the time of purchase should audience be exposed to the message
6) What is the most cost-effective way to accomplish the marketing and media obje
cost considerations in a marketing budget include
CPM-Cost of 1000impressions/contacts
Impression/contact-Typically an impression/contact is a single exposure (but can choose to focus on unique viewers or on other attributes)
CPM= Cost of ad ÷Number of total contacts (expressed in thousands so 100,000 = 100)If easier = (Cost of ad ÷Number of total contacts) x 1000
look at example
and case study
