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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
Percentage of sales method
% of current or forecasted sales, or budget % of the unit sales price
26
Competitive parity method
Setting budgets to match | competitor outlays
27
Objective & task method
Sets promotional budget based on what the company wants to accomplish with the promotion
28
PC affordable method
 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
PC Percentage of sales method
 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
PC Competitive parity method
``` 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
PC Objective & task method
 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
Advertising strategy consists of two interdependent elements:
Message strategy Media strategy
33
Message strategy
• What is to be communicated?
34
Media strategy
* How will you reach consumers? * Which media platforms? * When will you communicate? * How frequently will you repeat the message?
35
Creating the advertising message
``` 1. Break through the clutter 2. Merging advertising and entertainment 3. Message strategy ```
36
Breaking through the clutter
``` • Breaking through the clutter • Today’s advertising messages must be better planned, more imaginative, more entertaining, more emotionally engaging. ```
37
Advertising: Creating the advertising message | Merging Advertising & Entertainment
* “Advertainment”: videos, shows, infomercials | * Branded entertainment: product placement
38
Creating the advertising message | Message Strategy
Message Strategy • Creative Concept - “The BIG Idea” • Customer benefits, brand positioning and value proposition • Meaningful, believable & distinctive
39
Advertising: | Main execution styles
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40
Main Advertising Appeals: | Consumer-generated content
``` • 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
Key decision in media strategy are:
• Reach, frequency and impact • Selection of main media types and specific media vehicles • Media timing decisions.
42
Reach
``` The percentage of people in the target market who are exposed to the ad campaign during a given period of time ```
43
Frequency
``` A measure of how many times the average person in the target market is exposed to the message ```
44
Impact
The qualitative value of a message exposure through a given medium
45
When considering specific media vehicles, consider | the following:
* Media exposure * Media cost per thousand (CPM) people reached * Media Target audience * Media quality (environment)
46
Media selection (types and vehicles)
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47
Timing – 3 types of patterns
Seasonal Continuity Pulsing
48
Seasonal
Advertising to follow the seasonal pattern, to oppose the seasonal pattern or to be the same all year
49
Continuity
Scheduling ads evenly within a given period.
50
Pulsing
Scheduling ads unevenly over a given time period
51
Measuring advertising effectiveness | • Return of advertising investment
Return of advertising investment is the net return | divided by the costs of the advertising investment.
52
Advertisers should measure two advertising effects:
Communications effects Sales & profits effects
53
Communications effects
How well is the advertising communicating the desired message?
54
Sales & profits effects
Is the message translating into | the desired sales response?
55
Measuring advertising effectiveness calculation
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56
Promotion mix strategies | Marketers can choose from two basic promotion mix strategies:
Push Pull companies use some combination of both push and pull.
57
Push
``` 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
Pull
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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