Advertising Final Exam Chapter 10-16 Flashcards

(140 cards)

1
Q

Media Planning

A

Series of decisions involved in delivering promotional message to prospective consumers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

media Objectives

A

Objectives formulated to organize a media plan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Media Strategies

A

Plans of action designed to attain the media objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Medium

A

General category of available delivery systems.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Media Vehicle

A

Specific carrier within a medium category.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Reach

A

Measure of the number of different audience members exposed at least once to media vehicle in a specified period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Coverage

A

Potential audience that might receive message through a vehicle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Frequency

A

Number of times receiver is exposed to media vehicle in a specified period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The media plan

A

-Guides media selection
-Aims to find a combination of media to communicate a message:
-In the most effective manner
-To the largest number of potential customers
-At the lowest cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Problems with media planning

A

-Insufficient information (sweeps)
-Inconsistent terminologies
-Time pressures
-Difficulty measuring effectiveness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Developing a media plan

A
  1. Market analysis
  2. Establishment of media objectives
  3. Media strategy development and implementation
  4. Evaluation and follow-up
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q
  1. Market Analysis (Primary questions)
A
  1. To who shall we advertise?
    • clarification of target market
    • access secondary sources of data
      +Experian Simmons National Consumer Study
      +GfK Mediamark Research Inc. (GfK MRI)
  2. Where to promote?
    Survey of Buying Power Index, BDI, CDI.
  3. What internal and external factors are operating?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Internal and External Factors Influencing Media Strategies

A

Internal factors
-Size of the media budget
-Managerial and administrative capabilities
-Organization of the agency
External factors
-Rising costs of media
-Changes in technology
-Competitive factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

2.Establishing media objectives

A

Media Objectives:
-Goals to be attained by the media program
-Media plan is written to fulfill the prescribed objectives
-Media Objectives answer the question What?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q
  1. Media strategy development
A

Target market coverage
Geographic coverage
Scheduling
Reach versus frequency (and recency)
Creative aspects and mood
Flexibility
Budget considerations
The media mix

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Target audience coverage

A

See pie charts for:
Target market proportion
Full market coverage
partial market coverage
coverage exceeding market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Geographic coverage

A

Strategy of geographic weighting in which geographic areas receive differential amounts if media emphasis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Identification of market support defined by

A

Regions: Northwest
States: Minneapolis
City Size: 100M+
Market: minneapolis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Three scheduling methods

A

Continuity- constant, high costs, overexposure, limited allocation
Flighting- cost efficient, more than one medium, wear out, lack of awareness, vulnerability to competition
Pulsing- all of the same as previous two methods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Reach versus Frequency

A

Reach
-the number of potential audience members exposed once to a media vehicle in a given period of time (unduplicated audience)
-High level for new brands/products and at later stages of hierarchy

Frequency
-the number of times the receiver is exposed to the media vehicle in a given time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Factors Important in Determining Frequency Levels

A

Marketing Factors
Message factors
Media Factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Marketing factors

A

Brand history
Brand share
Brand loyalty
Purchase cycles
Usage cycle
Competitive share of voice
Target group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Message factors

A

Message complexity
Message uniqueness
New versus continuing campaigns
Image versus product sell
Message variation
Wearout
Advertising units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Media Factors

A

Clutter
Editorial environment
Attentiveness
Scheduling
Number of media used
Repeat exposures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Creative aspects and mood
Creative Aspects -need to employ a medium which will support the strategy -EX: creation of emotional appeal - TV -EX: communication technical product information - magazines/nsp Mood -environment of the media chosen or the specific vehicle selected
26
Flexibility
An effective media strategy requires a degree of flexibility to address the following Market opportunities Market threats Availability of media Changes in media or media vehicles
27
Budget considerations
Absolute cost: Actual total cost required to place the message Relative cost: Relationship between price paid for advertising time or space and the size of audience delivered Used to compare media vehicles
28
Media Mix
-Adds more versatility to the media strategies -Increases coverage, reach, and frequency levels -Improves the likelihood of achieving overall communications and marketing goals
29
Television pros and cons
+ Mass coverage and high reach Impact of sight, sound, and motion High prestige Low cost per exposure Attention getting Favorable image - Low selectivity Short message life High absolute cost High production costs Clutter distrust
30
Radio pros and cons
+ Local coverage Low cost High frequency Flexible Low production costs Well-segmented audiences - Audio only Clutter Low attention getting Fleeting message
31
Magazines pros and cons
+ Segmentation potential Quality reproduction High information content Longevity Multiple readers - Long lead time for ad placement Visual only Lack of flexibility
32
Newspapers pros and cons
+ High coverage and low cost Short lead time for placing ads Ads can be placed in interest sections Timely (current ads) Reader controls exposure Can be used for coupons - Short life and poor reproduction quality Clutter Low attention-getting capabilities Selective exposure
33
Outdoor media pros and cons
+ Location specific High repetition Easily noticed - Short ads Poor image Local restrictions
34
Direct mail pros and cons
+ High selectivity Reader controls exposure High information content Enables repeat exposures - High cost/contact Poor image (junk mail) Clutter
35
Direct/interactive media pros and cons
+ User selects information User attention Interactive relationship Direct selling potential Flexible message platform - Privacy concerns Potential for deception Clutter Lack of measurement techniques
36
zipping
Occurs when viewers fast-forward through commercials as they play back a previously recorded program
37
zapping
Changing channels to avoid commercials
38
Network versus spot
Network -affiliated stations that are linked -purchase transactions are simplified Spot and local -commercials shown on local stations -may be local or "national spot" commercials
39
Network advertising
Advantage -Simplifies the purchase process Disadvantages -Cost of advertising on prime time is very high -Availability of time slots -Up-front market: Buying period that occurs before the TV season begins -Scatter market: Buying period that occurs throughout the season
40
Spot and local advertising
Spot advertising: Commercials shown on local TV stations -Time is negotiated and purchased directly from the individual stations -National spot advertising: Non-network advertising done by a national advertiser -Local advertising: Airtime sold to local firms
41
Spot and local pros and cons
+ Offers flexibility to national advertisers Growth in syndication - >Difficult to acquire >Greater variations in the pricing policies and discount structure of individual stations >Station reps: Individuals who act as sales representatives for a number of local stations in dealings with national advertisers >Subject to more commercial clutter
42
Syndicated programs
look at slides
43
Pros and cons of Syndication
+ Saves money Broadens reach for national advertisers Targets specific audiences - Audiences are often rural and older Syndicators do not supply much research information Requires media buyers to come up with a syndication schedule to ensure maximum reach
44
sponsorships
-Advertiser assumes responsibility for the production and content of the program, and the advertising that appears within it -Allows a firm to: +Capitalize on the prestige of a high-quality program +Have more control over the shows carrying their commercials
45
Participation
Several advertisers buying commercial time on a particular program -No long term commitment yet little control over ad placement
46
Spot announcements
Purchased from the local stations, appear during adjacencies -Adjacencies: Time periods adjacent to network programs
47
Cable television
-Rapid growth during last 20 years +91% of households have cable TV via wired cable or satellite +Generate their revenue via ads and subscriber fees -Development of superstations +Independent local stations that send their signals nationally via satellite +Sports, movies, and reruns of network shows +Carries national advertising
48
Advertising on Cable TV pros and cons
+ Offers selectivity Offers a chance for narrowcasting Narrowcasting: Reaching very specialized markets Low cost Flexibility - Overshadowed by major networks Audience fragmentation Lacks penetration in major markets
49
TV audience measures
-size and composition measured by ratings services -TV household +Home with at least one operable TV -Program rating +% of TV houses in an area tuned in at a specific time + Ratings point: Represents 1% of all TV households in an area watching a specific program -Households using TV (HUT) +% of homes in given area where TV watched during specific time period - Share of audience + % of houses using TV in a specified time period that are tuned in to specific program - Total audience + Total number of houses viewing any five- minute part of a telecast
50
National audience information
Nielsen TV index -Provides daily and weekly estimates of the size and composition of the national viewing audiences -For programs aired on the broadcast and major cable networks People meter -Records what is being watched and by whom in 10,000 households
51
Local Audience information
-Designated market areas (DMAs): Non overlapping areas used for planning, buying, and evaluating TV audiences +Include group of counties in which stations are located in a metropolitan or central area -NSI reports +Viewing times +Programs watched +Audience size estimates +Demographics -Local people meter (LPM) - Used to measure the largest local markets -Sweeps: Viewing audiences in every local television market are measured at least four times a year
52
Developments in audience measurement
-Commercial ratings: Measures of the average viewership of the commercials both live and up to three days after the ads are played back on a DVR -Anytime anywhere media measurement (A2/M2) +Introduction of electronic measurement in all local markets +Addition of Internet and out-of-home measurement in Nielsen’s People Meter sample +Measurement of streaming +Development of passive measurement devices -Cross-platform campaign ratings: Measures the number of people who: +Watch an ad only on television +Who view an ad online +Overlap between the two
53
Buying radio Advertising Time
-Network radio - Purchased on a network basis using one of the national networks -Spot radio - +Greater flexibility in selecting markets +Individual stations +Airtime and a chance to adjust the message for local market conditions -Local radio - Purchased from individual stations by local companies
54
Audience information
Nielsen Audio provides: +Person estimates - Estimated number of people listening +Rating - Percentage of listeners in the survey area population +Share - Percentage of the total estimated listening audience
55
Audience information
Average quarter-hour (AQH) Figure -Average number of people estimated to have listened to a station for a minimum of five minutes during any quarter-hour in a time period Cume -Total number of different people who listened to a station for at least five minutes in a quarter-hour period within a reported daypart Average quarter-hour rating (AQH RTG) -Estimated number of listeners as a percentage of the survey area population Average quarter-hour share (AQH SHR) -Percentage of the total listening audience tuned to each station Portable People meter (PPM) -Wearable device that electronically tracks what consumers listen to on the radio RADAR (Radio's all dimension audience research) -Measurements are based on information collected throughout the year
56
Magazines and newspaper value
-Present detailed information that can be processed at the reader’s own pace -High-involvement media -Magazines are the most specialized of all advertising media
57
Magazines
Classification of Magazines -Consumer +General and targeted consumers -Farm +directed to farmers and their families -Business +specific to businesses/ industries/ occupations
58
Consumer receptivity and engagement
Greater in magazines than in any other medium -With the exception of newspapers Magazines are: -Primary source of information for consumers for a variety of products -Capable of engaging the readers and retaining their attention
59
Creative flexibility
-bleed pages -inserts -pop-ups -cover positions -gatefolds -creative space
60
Magazine circulation
Primary circulation -Number of copies distributed to the original subscribers or purchasers -Determines magazine’s rate structure Guaranteed (Paid) circulation -Publishers give advertisers a rebate if the number of delivered magazines falls below the guarantee -Figures are set safely below the average actual delivered circulation
61
Circulation Verification
Alliance for Audited Media (AAM) -Audits consumer magazines and farm publications -Provides data and information critical to evaluating and purchasing media -Audits digital replica editions of magazines Controlled-circulation basis: Sending copies individuals the publisher believes can influence a company’s purchases
62
Readership and total audience
Pass-along readership: Occurs when: -Primary subscriber gives a magazine to another person -Publication is read in doctors’ waiting rooms, on airplanes, and so forth Total audience or readership: Calculated by multiplying the readers per copy by the circulation of an average issue
63
Audience Information and Research for Magazines
-SRDS - Provides complete planning information on domestic and international consumer, business, and health care publications -Publication’s own research studies -Syndicated research studies -Business Publication Audits - Provide the titles of people who receive a publication and the industry they work in
64
Cost Elements Involved in Purchasing Magazine Advertising Space variables
Magazine’s circulation Size of the ad Position in the publication Particular editions chosen Special mechanical or production requirements Number and frequency of insertions
65
Cost Elements Involved in Purchasing Magazine Advertising Space
Positions available for ads First cover: Outside front of a magazine (not sold) Second cover: Inside front of a magazine Third cover: Inside back of a magazine Fourth cover: Outside back of a magazine, sold at a higher rate than any other position -Advertising space is sold on the basis of space units +Full page, half page, and quarter page -Volume discounts
66
Daily newspapers
-Found in cities and larger towns -Provide detailed coverage of events, issues concerning the local area -Classifications - Morning, evening, or Sunday publications
67
Types of newspapers advertising
Display advertising Uses visual devices in addition to the copy text Classified advertising Ads are arranged under subheads according to the product, service, or offering being advertised Special ads and inserts Government and financial reports Notices and public notices of changes in business and personal relationships Preprinted inserts: Printed by advertiser and taken to the newspaper to be inserted
67
Weekly newspapers
-Originate in small towns or suburbs -Focus on news, sports, and events relevant to the local area -Appeal primarily to local advertisers
67
Newspapers
Types of Newspapers continued National Newspapers Have national circulation and editorial content with a nationwide appeal Appeal to: Large national advertisers Regional advertisers that use specific geographic editions of these publications Special-Audience Newspapers Offer specialized editorial content and are published for particular groups Newspaper Supplements Included by papers in their Sunday editions
67
Purchasing Newspaper space
General rates Advertisers are outside the newspaper’s designated market area Includes national advertisers Are up to 75% higher than local rates Retail or local rates Advertisers conduct business within the designated market
68
Rate structures
See slides
69
The future for magazines
Publishers are focused on building: Stronger editorial platforms Better circulation management Cross-magazine and media deals Database marketing Technological advances Electronic delivery methods Native advertising: Integrates the advertising in online publications with the environment and editorial content
70
Future for newspapers
Challenges Competition from other media Circulation Attracting and retaining readers Increased use of online delivery and multiple platforms
71
Support Media
Uses a variety of non traditional channels to deliver communications and to promote products and services Role Reach target audience that primary media may not have effectively reached Reinforce or support primary media messages
72
Out of home media
Billboards Street furniture Transit Place-based media
73
Out of home media details
Factors contributing to its success: Increase in number of Women in workforce Vehicles on the road Ability to remain innovative through technology Controversy over billboards.
74
Digital out of home media
Video advertising networks Digital billboards Place-based advertising (aerial ads, mobile billboards)
75
In store media
Reach shoppers at the place where they buy Include: In-store ads Aisle displays Store leaflets Shopping cart signage In-store TV
76
Transit advertising
Targets people who are exposed to commercial transportation facilities Gained popularity due to: Increased number of women in the work force Audience segmentation People spending more time outdoors
77
types of transit advertising
Targets people who are exposed to commercial transportation facilities Gained popularity due to: Increased number of women in the work force Audience segmentation People spending more time outdoors
78
Transit advertising pros and cons
+exposure, frequency, cost -reach, mood of the audience
79
Promotional Products Marketing
Promotional medium or method is one that uses the following promotional products Ad specialties Premiums Business gifts Awards Prizes Commemoratives
80
Pros and cons of promotional products marketing
+ Selectivity Flexibility Frequency Cost Goodwill High recall Supplementing other media - Image Saturation Lead time Reach
81
Measurement in promotional products marketing
Specialty advertising does not have an established ongoing audience measurement system Studies show that: Promotional products have a positive impact on brand image Brand impressions and purchase intent improves by adding promotional products to integrated media mix
82
pros and cons of movie theater advertising
+ Exposure Emotional attachment Cost Attention Clutter Proximity Segmentation Quality Integration - Irritation Cost
83
Branded entertainment
Blends marketing and entertainment through television, film, music talent, and technology Methods Product placements: Refers to advertising within another program (link) Product integration: Placement is integrated throughout the program content and/or script
84
Methods of branded entertainment
Advertainment: Creation of audio-visual content to entertain users while advertising products Advergames: Online games that are designed to promote products Content sponsorship Ad-supported video on demand (VOD) Others
85
pros and cons of branded entertainment
+ Exposure Frequency Support for other media Source association Cost Recall Bypassing regulations Acceptance and targeting - High absolute cost Time of exposure Limited appeal Lack of control Public reaction Competition Negative placements Clutter
86
Guerilla marketing
Nontraditional method of marketing Known as: Stealth Street Buzz Ambush Viral marketing
87
Nontraditional support media
Parking lot ads. Gas station pump ads. Place-based media. Others
88
pros and cons of nontraditional support media
+ Awareness and attention Cost efficiencies Targeting - Irritation Wearout
89
Direct Marketing
Direct marketing: Organizations communicate directly with target customers to generate a response or transaction. Aspect of total marketing—involves marketing research, segmentation, evaluation, and more. Uses a set of direct-response media Direct-response media: Tools by which direct marketers implement the communication process
90
Direct marketing cont.
The Growth of Direct Marketing Factors that led to increased attractiveness of medium Development and expansion of the Postal Service Consumer credit cards Changing structure of American society and the market Technological advances Changing values and lifestyles More sophisticated marketing techniques The industry’s improved image
91
Role of direct marketing in the IMC program
Combing direct marketing with… Advertising and public relations Personal selling and sales promotions Support media Companies decide: Program objectives Which markets to target and the strategies to use How to evaluate the program’s effectiveness
92
Direct marketing objectives
To seek a behavioral response To build an image To maintain customer satisfaction To inform and/or educate customers in an attempt to lead to future actions
93
Direct marketing strategies and media
Each medium is used to perform specific functions, although they all generally take a one or two-step approach. One-step approach: Medium is used directly to obtain an order Two-step approach: Uses more than one medium First effort—Screens potential buyers Second effort—Generates the response
94
Direct marketing media
Direct mail Catalogs E-mail Broadcast media TV spots Infomercials Home shopping Print media Telemarketing
95
Direct mail
Unsolicited mail Advertisers spend substantially on it Keys to success: Mailing lists: Database from which names are generated Ability to segment markets The offer Threat—The Internet.
96
Catalogs
Numbers of catalogs mailed and shoppers decreasing Higher emotional appeal than online catalogs Available online and hard copy
97
Email
Electronic version of regular mail; direct mail on the Internet. Reach consumers with specific needs through targeted messages. Lower cost and higher effectiveness than traditional direct mail. Spam: Electronic equivalent of junk mail.
98
Broadcast media
Categories—Television and radio. Direct-response advertising: Sales response for offered product is solicited, through one- or two-step approach. Support advertising: Supports other forms of advertising. TV spots: Short-form programs, including direct-response commercials seen on TV Infomercials
99
Direct selling
Direct, personal presentation, and sales in consumers’ homes. Three forms: Repetitive person-to-person selling—Salesperson visits buyer’s location to sell frequently purchased products. Nonrepetitive person-to-person selling—Salesperson visits buyer’s location to sell infrequently purchased products. Party plans—Salesperson offers products to groups of people through parties and demonstrations.
100
Evaluating the Effectiveness of Direct Marketing
Cost per order (CPO): Evaluates the relative effectiveness of an ad based on the number of calls generated Customer Lifetime Value (CLTV): Determines the dollar value associated with a long-term relationship with a customer Helps determine if a customer should be acquired Optimizes existing customers’ service levels RFM analysis: a marketing technique used to determine quantitatively which customers are the most profitable Recency, Frequency, Monetary
101
Direct marketing pros and cons
+ Selective reach Segmentation capabilities Frequency Testing Timing Personalization Costs Measures of effectiveness - Image factors Accuracy Content support Rising costs Do Not Call lists
102
Reasons for Rapid Adoption of the Internet
Consumers: Increased desire for information Speed and convenience Ability to control the flow of information being received Ability to conduct e-commerce E-commerce: Direct selling of goods and services on the internet Advertisers: Ability to target customers effectively Increased accountability of businesses
103
The growth of the internet
-Web Objectives Hybrid media Create awareness Generate interest Disseminate information Create an image Create a strong brand Stimulate trial Create buzz Gain consideration
104
Banner ads
Create awareness or recognition Used to seek entry into contests and sweepstakes Fulfill direct-marketing objectives
105
Sponsorships
Regular sponsorship: Company pays to sponsor a section of a site Content sponsorship: Sponsor not only provides money in return for name association but also participates in providing the content itself
106
pop-ups
Ads that appear when certain sites are accessed
107
Pop-unders
Ads that appear underneath the web page and become visible only when the user leaves the site
108
interstitials
Ads that appear on screen while waiting for a site’s content to download
109
Paid searches
The higher a site appears on a search page, the more visitors it will receive. Organic search results Appear due to their relevance to the search terms Pay-per-click Placing ads on web pages that display results from search engine queries Search engine optimization (SEO) Improving the volume of traffic to a site by a search engine through unpaid results
110
Behavioral targeting
Based on advertisers’ targeting consumers by tracking their website surfing behaviors
111
retargeting
Ads follow a website user and are displayed on every participating subsequent websites the user visits
112
Contextual ads
Ads are determined by the content on the web page Native advertising Advertiser gains attention by providing valuable content in the context of the user’s experience Controversial May be deceptive
113
Rich media
Interactive digital media that exhibit dynamic motion Online commercials Advertisements that appear on the net Pre-rolls: Commercials that appear before the content that the user is seeking Video on demand Video clips of various entertainment activities that can be accessed on demand from the Internet Webisodes Short featured films created by the advertiser
114
IMC using social and other media
Allow the creation and exchange of user-generated content Social networking sites: Platforms for networks or social relations Allow sharing interests, activities, backgrounds, or real-life connections
115
Motivations for using social media
To share ideas, activities, and events Community involvement To gain information Entertainment Remuneration
116
Marketers’ Reasons for Using Social Media
Driving traffic to one’s site Communicating with customers Gaining brand exposure
117
Social and other media
Facebook used to: Create and push content / Help manage reputation TikTok used to: Lower cost ad platfom / attractiveness to influence marketing X (Twitter) used to: Respond to customer complaints and/or inquiries Re-tweet important information Monitor the market for opportunities or threats Instagram used to: Post and edit pictures / Share them on a variety of social networks Snapchat used for: a mix of private messaging and public content, including: Brand networks, Publications, Live events Pinterest used to: create and manage theme-based image collections LinkedIn used to: Social network for business professionals YouTube used: As an advertising medium or search platform by marketers Additional Social Media: Periscope Podcasting Really Simple Syndication (RSS) Blog Other 2.0 Media Forms Virtual and augmented reality QR Codes
118
Sales promotion on the internet
Websites Print online coupons Trivia games, contests
119
Personal Selling on the Internet
Disadvantage Companies are reducing staff to build a strong online presence Advantages Websites enhance and support the selling effort Stimulates trial Improves one-on-one relationships between customers and sellers
120
Public Relations and Direct Marketing on the Internet
Websites Provide information about a company, its philanthropic activities, and annual reports Internet based direct-marketing tools E-mails and infomercials E-commerce Used in direct marketing
121
Mobile
Rapid adoption of smartphones and tablets. Has significant impact on companies’ IMC programs. Tablets led to increases in search behavior, online purchasing, and TV viewing. Reach potential consumers at almost any time and any place
122
Mobile integrated with other media
Automobile industry. Mobile search. Mobile coupons, sponsorship of data costs, messages, native ads.
123
Audience Measures and Measures of Effectiveness
-Internet-specific measures Allows measures to be taken in real time Includes audience measures specific to the Internet and interactive industry (Facebook and Google Analytics) -Traditional measures Recall and retention Surveys Sales Tracking ROI
124
Advantages and Disadvantages of the Internet, Digital and Social Media
+ Target marketing Message tailoring Interactive capabilities Information access Sales potential Creativity Exposure Speed Complement to IMC Timeliness - Measurement problems Clutter Potential for deception Lack of privacy Irritation
125
sales promotion
A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.” -an EXTRA incentive to buy -a tool to SPEED UP sales -targeted to DIFFERENT parties (consumer oriented vs trade oriented)
126
Reasons for sales promotion increases (9)
Growing power of retailers. Manufacturers used to have most of the power, now retailers through technology, consolidation, and private labeling have more. Declining brand loyalty. Consumers are purchasing more on the basis of price and value. Increased promotional sensitivity. Consumers want to save money and respond well to promotions that provide them the opportunity to do so. Brand proliferation. Many new brands offer little differentiation. Fragmentation of consumer markets. Traditional mass media advertising has become less effective and promotions are a way to reach market segments. Short-term focus. Sales promotion is seen as a way of generating an immediate increase in sales. Increased accountability. Managers are under pressure to produce sales results. Competition. Promotions are seen as way to gain a competitive advantage. Clutter. Promotional offers can break through the clutter and attract attention.
127
Consumer Franchise-Building Promotions
Consumer franchise-building (CFB) promotions are sales promotion activities that: Communicate distinctive brand attributes Contribute to the development and reinforcement of brand identity Build long-term brand preferences Some of the CFB techniques and practices include: Frequency programs that encourage repeat purchases Contests and sweepstakes and increase involvement with the brand and help build equity Premium offers that are consistent with the brand image help reinforce and/or build equity
128
Nonfranchise building promotions
Nonfranchise-building promotions are designed to: Accelerate the purchase decision process and Generate an immediate increase in sales. These activities generally do not communicate information about a brand’s unique features or the benefits of using it, so they do not contribute to the building of brand identity and image.
129
Objectives of Consumer-Oriented Promotions
Obtain trial and purchase Increase consumption of an established brand Defend (maintain) current customers Target a specific segment Enhance IMC efforts and build brand equity
129
Pros and cons of coupons
advantages, including: Their appeal to price-sensitive consumers Being able to offer a price break without involving the retailers co-op Inducing trial of new or existing products Defense of market share and encourage repurchase Disadvantages of coupons include: The difficulty of determining how many consumers will use coupons and when They are often used by loyal consumers who may purchase anyway Declining redemption rates High costs Misredemption and fraud
130
types of coupons
In/on-pack in store free standing insert direct mail
131
Premiums
An offer of an item, merchandise, or service, free or at a low cost, that is an extra incentive for customers types: free-Only requires purchase of the product self-liquidating-consumer required to pay some or all of the cost of the premium
132
contests and sweepstakes
sweepstakes- winners determined by chance, can't require proof of purchase for entry contest-consumers compete for prizes, winners determined by judging entries
133
more consumer oriented promotions
price-off deals bonus packs event marketing refunds and rebates loyalty programs
134
Trade-oriented Sales Promotions
T-O Sales promotions – a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale Trade-oriented sales promotions Targets intermediaries (wholesalers and retailers)
135
Objectives of Trade-Oriented Sales Promotion
Obtain distribution for new products Maintain trade support for established brands Encourage retailers to display established brands Build retail inventories
136
types of trade oriented promotions
contests and incentives co-op advertising trade allowances-buying, promotional, slotting, failure fees POP displays sales training trade shows