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Marketing Principles > Week 8 > Flashcards

Week 8 Flashcards

1
Q

Companies must do more than just create customer value.

A

Companies must do more than just create customer value.
They must also use promotional tools to communicate
value clearly and persuasively through an integrated
marketing communication approach

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2
Q

Integrated Marketing communications

A

The new marketing
communications
landscape

The shifting marketing
communications model

The need for integrated
marketing
communications

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3
Q

The new marketing
communications
landscape

A
  • Changing consumer attitudes
  • Marketing strategies
  • Communications technology
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4
Q

The shifting marketing

communications model

A
  • Decline of mass/traditional media
  • Narrowcasting
  • Personalisation & engagement
  • Interactive digital media
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5
Q

The need for integrated
marketing
communications

A

• Cross media touch points / brand contact
• Delivering a clear and consistent message and image
across channels

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6
Q

Consumers are changing

A

Changing consumer attitudes and behaviour better informed and more communication empowerment due to the
internet.

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7
Q

Marketing strategies are changing

A

• Mass markets have fragmented
• Build closer relationships with customers
in more narrowly defined micro markets.

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8
Q

Digital technology is causing changes

A

• Communications technology changing the

way communication occurs between companies and their customers

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9
Q

The shifting marketing communications model

A

Decline of mass/traditional media in favour for a broad
selection of more specialised and highly targeted media
to reach smaller customer segments with personalised,
interactive messages.
– Personalisation & engagement
– Interactive digital media
– Broadcasting to Narrowcasting

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10
Q

The need for integrated

marketing communications

A 
In the consumer’s mind:
• Messages from different
media and promotional
approaches all become
part of single message.
• Cross media touch points /
brand contact
• Delivering a clear and
consistent message and
image across channels
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11
Q

The promotion mix

A

A company’s total promotion mix also called its marketing communications mix

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12
Q

The promotion mix is a blend of

A
  • Advertising
  • Public Relations
  • Sales Promotion
  • Personal Selling
  • Direct & Digital Marketing
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13
Q

Advertising

A

Any paid form of presentation and promotion of

ideas, goods or services by an identified sponsor.

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14
Q

Advertising includes

A
  • Television
  • Outdoor
  • Print
  • Radio
  • Internet
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15
Q

Advertising advantages

A 
• Broad geographic reach
• Relatively low cost per
exposure
• Creative & expressive formats
• Useful for creating awareness
and long term image
• Can trigger quick sales
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16
Q

Advertising disadvantages

A 
• Lacks persuasive power /
impersonal
• One-way communication
• High cost of main advertising
media (eg TV)
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17
Q

Advertising Process

A

Setting advertising objectives

Setting the advertising
budget

Developing the advertising
strategy

Evaluating advertising
campaigns

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18
Q

Setting advertising objectives

A

• A specific task to be accomplished with a specific target
audience during a specific period of time.
• Advertising objectives should be based on past
decisions about:
– The target market
– Positioning
– The marketing program

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19
Q

Advertising

Classifications & Objectives

A

Informative advertising

Persuasive advertising

Reminder advertising

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20
Q

Informative advertising

A

• Extensively used to introduce a new brand or new
category
• Aim is to create primary demand

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21
Q

Persuasive advertising

A

• Important as competition increases
• Aim is to persuade consumers of a product or brand’s
merits
• Often executed as comparative advertising, also known
as ‘attack advertising’
• Objective is to build selective demand

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22
Q

Reminder advertising

A
  • Important for mature products
  • Aim is often to move consumers into action
  • Also used to strengthen brand relationships
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23
Q

Advertising:
Setting the advertising budget

Common methods for setting the budget:

A

affordable method

Percentage of sales method

Competitive parity method

Objective & task method

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24
Q

affordable method

A

Set the budget at the level
they think they can afford
(Revenue – Expenses)

25
Q

Percentage of sales method

A

% of current or forecasted
sales, or budget % of the unit
sales price

26
Q

Competitive parity method

A

Setting budgets to match

competitor outlays

27
Q

Objective & task method

A

Sets promotional budget
based on what the company
wants to accomplish with the
promotion

28
Q

PC affordable method

A

 Small businesses often use this
method

 Ignores the effect of promotion on sales;
and places promotion last as a priority
 Leads to uncertain annual promotional
budgets
 Can result in underspending
29
Q

PC Percentage of sales method

A

 Simple to use
 Helps management think about the
relationships between promotion spending,
selling price and profit

 Views sales as a cause of promotion,
rather than a result.
 Brands with stronger sales can afford
bigger budgets
 Based on availability of funds rather
than opportunities
30
Q

PC Competitive parity method

A 
Two thoughts:
 Competitive budgets can represent
collective wisdom of the industry
 Spending what competitors spend help
prevent promotional wars.

Both thoughts are invalid:
 Companies vary and each has their own
promotional needs
 No evidence that it prevents competitor wars

31
Q

PC Objective & task method

A

 Forces management to spell out its
assumptions about the relationship
between dollars spent and promotional
results.

 Most difficult of all methods to use
 Difficult to determine which task will deliver
which objective

32
Q

Advertising strategy consists of two interdependent elements:

A

Message strategy

Media strategy

33
Q

Message strategy

A

• What is to be communicated?

34
Q

Media strategy

A
  • How will you reach consumers?
  • Which media platforms?
  • When will you communicate?
  • How frequently will you repeat the message?
35
Q

Creating the advertising message

A 
1. Break through the
clutter
2. Merging advertising
and entertainment
3. Message strategy
36
Q

Breaking through the clutter

A 
• Breaking through the clutter
• Today’s advertising
messages must be better
planned, more imaginative,
more entertaining, more
emotionally engaging.
37
Q

Advertising: Creating the advertising message

Merging Advertising & Entertainment

A
  • “Advertainment”: videos, shows, infomercials

* Branded entertainment: product placement

38
Q

Creating the advertising message

Message Strategy

A

Message Strategy
• Creative Concept - “The BIG Idea”
• Customer benefits, brand positioning and value
proposition
• Meaningful, believable & distinctive

39
Q

Advertising:

Main execution styles

A

Photo in favourites 17/9

40
Q

Main Advertising Appeals:

Consumer-generated content

A 
• Incorporate the voice of
the customer into brand
messages and generate
greater customer
engagement.
• Make customers an
everyday part of the
brand conversation.
• Produce new creative
ideas and fresh
perspectives on the brand
from consumers.
41
Q

Key decision in media strategy are:

A

• Reach, frequency and impact
• Selection of main media types and specific media
vehicles
• Media timing decisions.

42
Q

Reach

A 
The percentage of
people in the target
market who are exposed
to the ad campaign during
a given period of time
43
Q

Frequency

A 
A measure of how
many times the
average person in the
target market is
exposed to the
message
44
Q

Impact

A

The qualitative
value of a message
exposure through a
given medium

45
Q

When considering specific media vehicles, consider

the following:

A
  • Media exposure
  • Media cost per thousand (CPM) people reached
  • Media Target audience
  • Media quality (environment)
46
Q

Media selection (types and vehicles)

A

Photo in favourites 17/9

47
Q

Timing – 3 types of patterns

A

Seasonal

Continuity

Pulsing

48
Q

Seasonal

A

Advertising to follow the seasonal pattern, to oppose the seasonal pattern or to be the same all year

49
Q

Continuity

A

Scheduling ads evenly within a given period.

50
Q

Pulsing

A

Scheduling ads unevenly over a given time period

51
Q

Measuring advertising effectiveness

• Return of advertising investment

A

Return of advertising investment is the net return

divided by the costs of the advertising investment.

52
Q

Advertisers should measure two advertising effects:

A

Communications effects

Sales & profits effects

53
Q

Communications effects

A

How well is the advertising
communicating the desired
message?

54
Q

Sales & profits effects

A

Is the message translating into

the desired sales response?

55
Q

Measuring advertising effectiveness calculation

A

Photo in favourites 17/9

56
Q

Promotion mix strategies

Marketers can choose from two basic promotion mix strategies:

A

Push

Pull

companies use some combination of both push and pull.

57
Q

Push

A 
Directs marketing activities
(primarily personal selling and trade
promotion) towards channel members
to induce them to carry the product
and to promote it to final consumers.
58
Q

Pull

A

Directs marketing activities (primarily
advertising and consumer promotion)
towards final consumers to induce them
to buy the product

Marketing Principles (12 decks)

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