Shared Flashcard Set

Details

Direct & Interactive Marketing
2nd Exam
66
Marketing
Undergraduate 4
11/19/2010

Additional Marketing Flashcards

 


 

Cards

Term
Marketing Objectives
Definition

Defined in terms of expectation of product performance

  • generate sales
  • increase in profit
  • expand market share

evaluates final outcome in concrete terms

  • distribution, sales, profit, shelf facing
Term
Communication Objective
Definition

-set in terms of expectation for communication's ability to influence consumer's behavior and attitudes; awareness

  • to persuade
  • to inform

-outcomes are intangible

  • attitude change, evoked set, positive consumer perceptions
Term
Types of IMC Objectives
Definition
  1. Communications effects: soft measures, awareness, preference, knowledge
  2. Behavioral effects: uses consumer's actions as a measure of advertising effects
  3. Sales-driven: IMC goals set in terms of sales
Term
Objectives should be (4 factors)
Definition
  1. Out-put focused (actionable)
  2. Measurable (previous experience, market data, survey research)
  3. time bounded
  4. Realistic
Term

ABCD Method

Definition

A-Audience (Who)

B-Behavior (What)

C-Condition (How)- explain new uses for product

D-Degree (How often)

Term
Media Planners
Definition

Formulates media prgram stating where/when to place advertisements

  • research info about media & to match product w/right media and target market
Term

Media Buyer

 

Definition

Buys the space and negotiates rates, times and schedules for ad

Term
3 Types of Time Continuity
Definition
  1. Continuity: steady, consistent message delivery; use on product with no seasonal sales
  2. Flighting: start-stop patterns; fluctuating sales
  3. Pulsing: vary, but consistent
Term
Opportunities to See (OTS)
Definition

cumulative exposures achieved in a given time period.

  • used instead of frequency in media planning
Term
Gross Rating Points (GRP)
Definition

Measure of impact/intensity of media plan

 

=vehicle rating X OTS

Term
Cost per Thousand (CPM)
Definition

compares how cost effective one medium is compared to another; dollar cost of reaching 1,000 members of audience

 

=(Cost of media buy/ total audience) x 1000

Term
Cost per Rating Point (CPRP)
Definition

measure of efficiency of media vehicle relative to firm's target market

 

= Cost of media buy/ Vehicle's rating

Term
Gross impressions
Definition

total exposures of audience to an advertisement

Term
Recency Theory
Definition

A consumer's attention is selective and focused on their own individual needs and wants

  • impact dissipates over time
  • maximum exposure--> run ads over longer period of time, place in multiple outlets
  • one ad exposure is enough to affect an audience
Term
Percentage of Sales Budget Method
Definition

Take current/projected sales, then allocate a %

  • Pro's: simplicity
  • Con's: changes in opposite direction of what is typically needed, doesn't allocate money for special needs or competitive pressures
Term
Meet-the-Competition Budgeting Method
Definition

Meet competition's spending dollar for dollar; used to prevent market loss

 

Term
Affordability Budgeting Method
Definition

sets marketing budget after all of company's other budgets are determined

Term
Competitive Parity (Pay Out Planning) Budgeting Method
Definition

competitive expenditures are basis for company's budget

  • company frontloads budget at launch
    • Status quo: same amount
    • Gain market share: spend more
    • PLC decline: spend less
  • Con's: Based on shaky assumptions, doesn't account for mkt trends and not necessarily operating at max profits
Term
Objective & Task Budget Method
Definition

Mgmt lists all comm objectives to pursue during year then calculates cost of accomplishing the objectives

  • zero-based budgeting; best budgeting method to use because it relates dollar costs to achieving specific objectives
Term
Break-Even Analysis
Definition

Break Even= FC/( Unit selling price - VC)

Unitary Contribution Margin= Price - Total VC

Total Contribution Margin= (Price - Total VC) x Volume

Term
Creative Brief
Definition

Meant to inspire and orient art directors; point of agreement between directors and client

 

Must know: objective, target audience, message theme, suppor of claim, aware of constraints

Term
9 Common Categories of Information included in a Creative Brief
Definition
  1. Assignment
  2. Background
  3. Advertising Objectives
  4. Target Market
  5. Consumer Insight
  6. Brand Personality
  7. Message
  8. Practicalities
  9. Measurement of Results
Term
Target Market vs Consumer Insight
Definition

Target market: comes from psychographic data

Consumer Insight: comes from qualitatitive research

Term
Consumer Insight vs Main Message
Definition

Consumer insight: comes from qualitative data

Main Message: comes from IMC objectives

Term
3 Main Elements of Ad
Definition

Big Idea + Strategic Focal Point + Positioning

Term
Benefits of Internet over traditional media forms
Definition
  1. Ease of Access
  2. Wide accessibility
  3. Convenience
  4. Small relative cost
  5. Interactivity, involvement
  6. social connection, community
  7. consumer can initiate dialog
Term
E-active Marketing (2 components)
Definition
  1. e-commerce: selling goods and services via internet
  2. interactive marketing: development of marketing programs that create interplay between consumers and businesses rather than simply sending messages to potential costumers
Term
E-commerce Components
Definition
  • catalog
  • shopping cart
  • payment system
  • customer service information
  • public relations information
  • optional components
Term
E-commerce Incentives
Definition
  • Financial incentives
  • convenience incentives
  • value-based incentives
Term
E-commerce Concerns
Definition
  • Seller opportunism: is it legitimate?
  • Security concerns
  • privacy issues
  • purchasing habits
Term
Interactive Marketing- Forms of Online Advertising
Definition
  1. Display/banner ads
  2. classified ads
  3. SEO
  4. media/video ads
Term
Interactive Marketing- Forms of non-advertising
Definition
  • Corporate website
  • Blogs
  • emails, newsletters
  • social network pages
  • viral
  • podcasts
Term
3 Ways to measure Ad Performance
Definition
  1. Impressions
  2. Click-through
  3. ROS (Run of site) vs Unique visitors
Term
Types of Coupons
Definition
  • freestanding inserts
  • instant redemption coupon
  • bounce-back coupon: placed inside package
  • Cross-ruffing: placement of two promotional materials together
  • response offer coupons: follow request by consumer

 

Term
Types of Premiums
Definition
  • free-in-the-mail: gifts individuals receive for purchasing product
  • in or on-package: small gifts in or on package
  • store/manufacturer: gifts given to retailer
  • self-liquidating: require consumer to pay an amount for gift
Term
Contest vs Sweepstakes
Definition

Contest: contestant must earn prize

Sweepstakes: no purchase required, enter as many times as with; probability of winning must be stated

Term
Refund vs Rebate
Definition

Refund: cash return on "soft goods"

Rebate: cash return on "hard goods"

Term
Types of Sampling
Definition
  1. Response samples: made available to those responding to a media offer
  2. Cross-ruff: provide samples of one product on another
  3. media sampling: sample included in media outlet
  4. professional sample: deilvered to professionals
  5. selective samples: distributed at a site/store
Term
Types of Consumers (3)
Definition
  1. Promotion-prone consumers: regularly respond to coupons, price-off plans and aren't brand loyal
  2. brand-loyal: purchase only one particular brand and doesn't substitute
  3. Price-sensitive: price remains the primary criterion in a purchase decision
Term
Objectives of Consumer Promotions
Definition
  • increase store traffic
  • increase store sales
  • attract new customers
  • increase market share
  • increase loyalty
  • increase trial of new products
Term
Trade Promotions- Trade Allowances (3)
Definition
  • off-invoice allowance: per-case rebate paid to retailers for order
  • slotting fees: moeny paid to retailers to stock new product
  • exit fees: money paid to retailers to remove an item from their SKU inventory

*Only used in distribution channel

Term
3 Characteristics of Creative Concepts
Definition

Meaningful

Distinctive

Believable

Term
Hierarchy of Effects Model (6 Steps)
Definition
  1. Awareness- Cognitive
  2. Knowledge- Cognitive
  3. Liking- Affective
  4. Preference- affective
  5. Conviction-affective
  6. actual purchase- conative

Cognitive-->Affective-->Conative

most common sequence when attitude is formed

Term
Means-End Theory
Definition

An advertisement should contain a message or means that leads consumer to a desired end or state

 

Use 5 elements in creating ads:

  • product's attributes
  • consumer benefits
  • leverage points
  • perosnal values
  • executional framework
Term
Gestalt Theory
Definition

The whole is greater than the sum of its parts

  • Consumer struck by whole
  • they'll dig deeper to consume parts
Term
Types of Advertising Appeals
Definition
  • Fear
  • Humor
  • Sex
  • Musical
  • Rational
  • Emotional
  • Scarcity
Term
Structure of an Advertisement
Definition
  • promise of a benefit (headline)
  • spelling out of promise (subheadline)
  • amplification (USP)
  • proof of claim
  • action to take
Term
Research Stages during Ad Development
Definition
  1. Advertising Strategy Research: before creative begins; product concept definition
  2. Concept Research: focus on rough development of ideas/testing; before agency production begins
  3. Pretesting: before finished artwork/photography
  4. Posttesting: conducted after ad is rolled out
Term
Pretesting wants to understand (4)
Definition
  1. Reaction
  2. Comprehension
  3. likeability
  4. takeaway
Term
Animatic
Definition
Preliminary version of a commercial with animated cutouts are used instead of live participants
Term
Recall Testing
Definition

asking individual to recall what ads they viewed in given setting or time

 

important factors: prominence of brand, general attitude towards ad, age, frequency of use

  • unaided: subjects asked to name ads they saw or heard previous evening
  • aided: consumers are prompted by being told product category or brand
  • Linkage: ability to match brand with ad
Term
Attitude Testing
Definition

Effectiveness in creating a favorable image;

 

deal with both cognitive and affective reactions to ad;

 

connected to short-term behaviors and longer-term assessments of company

Term
Inquiry Test
Definition
include consumer response mechanism to contrast performance
Term
Items Tested for Recall
Definition

Product name/brand

Company location

Firm name

Theme Music

Spokesperson

Tagline

Incentive being offered

Product attributes

Primary selling point

Term
Difficulties in Evaluating Ads
Definition
  • influence of other factors on behaviors
  • delayed impact of advertisment
  • consumer changes mind in store
  • goal of ad may be to build brand equity not sales
Term
Return on Investment (ROI)
Definition
Most common ROI measurement is in incremental sales from marketing, changes in brand awareness
Term
Measures of Overall health of a company
Definition

market share

level of innovation

productivity

physical & financial resources

profitability

manager performance and development

employee performance & attitudes

social responsibility

Term
Factors affecting conversion rates (4)
Definition

quality of peice

inclusion of premium

promotional offer

quality of prospecting list

Term
Concept Testing (5 components that can be tested)
Definition

copy

message

translation of copy in int'l ad

effectiveness of peripheral cues

value associated with offer

Term
Executional Framework (8 types)
Definition

manner in which an ad appeal is presented

  1. animation
  2. slice of life
  3. dramatization
  4. testimonials
  5. authoritative
  6. demonstration
  7. fantasy
  8. informative
Term
4 Components of Slice of Life Appeal
Definition
  1. Encounter
  2. Problem
  3. Interaction
  4. Solution
Term
Recognition Testing
Definition

-given copy of ad and asked if they recognize it or have seen it before

-measure person's interest in particular ad

-scores don't decline over time

Term
Trawling
Definition
searching the database for a specific piece of information for marketing purposes
Term
Frequency (loyalty) Program Objectives
Definition
  1. maintain sales, margins, profits
  2. increase loyalty of existing customers
  3. preempt or match competitor's frequency program
  4. induce cross-selling to existing customers
  5. differentiate a parity brand
  6. preempt the entry of a new brand
Term
Copytesting principles of PACT (Positioning Advertising Copytesting)
Definition

-relevant to advertising objective being tested

-researcher should agree on how results will be used

-decide cutoff score

-use multiple measures

-base on some theory of human response to comm

-multiple exposure

-alt ads should be in same stage of process development

-prevent biases and external factors from affecting results

-sample representative

-reliability & validity

Term
Advertisements are most difficult component of IMC to evaluate
Definition
Supporting users have an ad free experience!