Term
| integrated marketing communication |
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Definition
-a management concept designed to make all aspects of marketing communication work together
-advertising, sales promotion, public relations, direct marketing |
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Term
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Definition
-direct inducement
-extra value or incentive
-consumer, sales force, distributors
-objective to create IMMEDIATE SALES
-incentive to behave in a certain way
-basically a bribe... |
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Term
| advertising vs. sales promotion |
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Definition
-opposites!
-creates an image over time
-relies on emotional appeals
-contributes somewhat to profitability
-adds intangible value - more of a long-term investment
-advertising appeals to the heart, sales promotion appeals to the wallet |
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Term
| sales promotion vs. advertising |
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Definition
-creates immediate action
-rational appeals
-contributes significantly to short term profitability
-adds tangible value
-you hear about sale through ad, but sales promotion is "50% off" |
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Term
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Definition
-awareness before promotion
-speak with one voice
-uniform tone |
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Term
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Definition
-future behavior is determined by positive reinforcement accompanying past behavior
-promotional tools act as positive reinforcers along with product performance (the primary reinforcement) to increase the probability of repeat purchase |
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Term
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Definition
-the process of learning a complex behavior
-successive approximations of the final behavior
-errors in implementation
-improper fading of incentives
-overuse - too many coupons!
-conditional buyer to wait for the coupon |
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Term
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Definition
-cheapen the product to consumers
-after promotion is over the don't buy |
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Term
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Definition
-eliminate financial risk
-eliminate inconvenience
-samples effective when: brand is definitely better, doesn't come in a variety, purchase cycle is short, new attitudes or behavior must be created
-sample delivery methods: mail, door to door, in store, on package, Internet, passouts
-mail most effective - easy to segment, but postage expensive |
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Term
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Definition
-certificate presented to a dealer
-provides user specific savings on a specified product
-likely users of the brand |
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Term
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Definition
-retains current users
-encourages brand switching
-increases in-home inventory
-lengthens purchase cycle |
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Term
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Definition
-direct mail
-print media (newspaper, magazine)
-in/on package
-non-traditional |
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Term
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Definition
-consumer purchases product
-mail in proof of purchase
-refund sent at a later time
-redemption problems: delay of reinforcement, effort required
-most people don't follow through |
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Term
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Definition
-product is sold at full price
-consumers get more for their money
-doesn't reduce price/value ratio
-adding more ounces to the regular size of your shampoo, dish soap, meds, etc. |
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Term
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Definition
| an extra item offered at a low price of free as an extra incentive to purchase |
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Term
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Definition
-encourage brand switching
-trade up to larger size
-increase repeat purchase
-put a long term message in front of the customer - branding |
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Term
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Definition
-in package (breakfast cereal)
-in store (buy the product and get the premium)
-package itself (souvenir cup/glass)
-mail |
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Term
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Definition
-a game
-random chance of winning
-no purchase necessary - no payment to enter
-increases involvement
-increases awareness |
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Term
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Definition
-sweepstakes with payment to enter
-illegal in most situations because organized crimes used to get them |
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Term
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Definition
-winners selected based on skill
-can charge to enter - no longer a game of chance, now based on skill |
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Term
| promotions to retailers - objectives |
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Definition
-retail incentive to push product
-maintain or increase distribution
-maintain or expand shelf space
-preempt competition
-change consumer purchase patterns |
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Term
| types of retail promotions |
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Definition
-buying allowances
**temporary price reductions
**from manufacturer
-advertising allowances
**payments by the manufacturer to the retailer
**funding of the retailer's advertising of the product
-contests
-sweepstakes
-point of purchase (POP): promotional materials placed at the point of purchase |
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Term
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Definition
-outside signs
-window displays
-counter displays
-display racks
-banners
-posters
-table tents |
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Term
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Definition
-increase consumer learning
-increase purchase behavior
-relatively low cost
-easy evaluation |
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Term
| good P.O.P. for retailers |
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Definition
-these benefit the manufacturer
-monetary incentive
-tied to other items - bundle: PB & J
-easy to set up |
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Term
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Definition
-pr is not free advertising
-management function
-action oriented
-understanding and goodwill
-target specific publics |
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Term
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Definition
| inform and persuade target to buy specific brands of products |
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Term
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Definition
-develop understanding and goodwill
-favorable attitudes |
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Term
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Definition
| -pr seen as more credible |
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Term
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Definition
-major advertising cost = media time and space - much more expensive
-major PR costs = non-media |
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Term
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Definition
-advertising - more control over message
-PR - less control over message |
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Term
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Definition
-advertising - editorial interest not very important
-PR - critical to success |
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Term
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Definition
-advertising - more likely to have a business background
-PR - more likely to have a journalism background |
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Term
| similarities between advertising and public relations |
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Definition
-stimulate interest in a target group
-research based situation analysis
-specific objectives
-detailed knowledge of media |
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Term
| reasons to use public relations |
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Definition
-relatively inexpensive
-cuts through advertising noise - not competing as much for message to sink in
-highly credible
-develop new sales leads
-difficult to reach some publics - can reach people who aren't reached by traditional advertising |
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Term
| corporate image advertising |
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Definition
-blend between advertising and pr
-benefits company image
-not specific to one product
-ex. Toyota ads |
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Term
| corporate image advertising relationships to public relations |
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Definition
-share the same objective as public relations
-understand and goodwill
-paid time provides greater control over message and media
-control allows it to be so powerful |
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Term
| corporate image and product advertising differences |
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Definition
-direction - overall image, not specific products
-tangibility - corporate image is less tangible than product attributes
-upper management involvement |
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Term
| corporate image and product advertising similarities |
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Definition
-gain attention
-involve the audience
-build credibility
-involve the audience
-build credibility
-get action |
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Term
| types of corporate advertising messages |
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Definition
-general image
-financial
-advocacy
-recruiting
-special situation |
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Term
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Definition
| designed to enhance the basic image of the company |
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Term
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Definition
| creates a favorable image in the financial community |
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Term
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Definition
-attitude or behavior with the public on a specific issue
-often controversial |
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Term
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Definition
-presents the company favorably to prospective employees
-they want the top workers available |
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Term
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Definition
-corporate giving
-short term campaigns |
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Term
| corporate advertising messages win-win-win |
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Definition
-company improves image
-customer feels good about helping someone
-charity gets the donation |
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Term
| corporate advertising problems |
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Definition
-specific purpose often lacking
-limited results measurement
-what works and doesn't work is not always known
-lack of results measurement
-basic lack of research |
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Term
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Definition
| allocation is determined in advance of advertising task analysis |
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Term
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Definition
| -all non-advertising expenses and the desired profit are deducted from projected revenues, and part of what's left is the budget |
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Term
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Definition
-no situation analysis
-leads to under spending |
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Term
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Definition
-similar to affordable budget, but taking fixed percentage
-budget is some percent of past or projected sales |
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Term
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Definition
-no situation analysis
-difficult to use with new products
-may lead to under spending
-if overall budget changes, keep the fixed percentage, dollars fluctuate |
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Term
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Definition
-company's share of industry expenditures on advertising should equal its market share
-is company has 5% market share, they should also be spending 5% of ad dollars |
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Term
| objective and task budgeting |
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Definition
1) set objectives - out of situation analysis
2) identify strategies needed to achieve objectives
3) estimate costs to implement those strategies that will achieve the objectives |
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Term
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Definition
**the marketplace doesn't follow simple rules...
-use of several media, vehicles, messages
-interaction with other marketing variables
-interaction with marketplace variables
-time to achieve objectives |
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Term
| budgeting for new products |
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Definition
-starting with ZERO awareness and NO brand identity
-larger budgets needed
-awareness
-trial
-double the budget as existing product for the same amount of sales
-very difficult for new product to make it in the marketplace |
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Term
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Definition
-commission - percentage
-fee - pay as you go
-combination
-bonus - incentives to reach certain predetermined goals
-retainer - fixed monthly fee charged, regardless of the work peformed |
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Term
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Definition
-the activities involved in selling goods or services directly to final consumers for their personal, non-business use
-selling products directly to final customers
-personal use |
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Term
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Definition
-create awareness
-create a unique position
-reduce excess inventory
-immediacy, short term, wants you to get in the store and buy the current inventory |
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Term
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Definition
| generate sales to reduce inventory |
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Term
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Definition
| -retail advertising stresses location |
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Term
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Definition
-balance advertising across thousands of products
-only constant is the store |
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Term
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Definition
-often focuses on a specific geographic area
-shop locally |
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Term
| regular price line advertising |
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Definition
-focus on product line and regular prices
-positioning advertising
-long term - how consumers perceive the store |
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Term
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Definition
-most popular
-reduced prices for a limited time
-short-term response
-creates a sense of urgency
-ex. one day sale |
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Term
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Definition
-very immediate
-least image oriented |
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Term
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Definition
-local media
-short-term results |
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Term
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Definition
-newspaper - largest source of retail advertising
-magazines - awareness building, regular price line advertising |
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Term
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Definition
-television - effective for both sale and regular price line
-radio - effective with narrow target markets |
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Term
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Definition
-current customers
-geographic trading area |
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Term
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Definition
-limited use
-image building
-geographic segmentation |
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Term
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Definition
-popular but expensive
-companies you don't think of until you need them |
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Term
| cooperative advertising (co-op) |
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Definition
| manufacturer funds all or part of the retailer's advertising of that product |
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Term
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Definition
-stretches the budget
-leverage with media
-tie-in to national quality products - already have a strong reputation/established brand
-advertisements are supplies - don't have to produce ad - manufacturer does it |
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Term
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Definition
-contrasting goals - different advertising goals
-message and media restrictions - wants to use print instead of TV, etc. |
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Term
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Definition
-high involvement - focus on information
-low involvement - focus on image
-relationship to national advertisers |
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Term
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Definition
-let national company create image
-focus retail ads on information |
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Term
| creativity on a limited budget |
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Definition
-create consistent messages
-avoid ads that don't stand out - differ from competition
-focus on short and long term ads |
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Term
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Definition
-short life so rapid impact is needed - short term impact
-grab the reader/viewer/listener...NOW |
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Term
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Definition
-significant component of retailing - getting the word out about discounted prices
-both focus on short-term behavior |
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Term
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Definition
-percentage of sales the most common
-cooperative advertising increases the budget
-image vs. sales - a combination of the two is desirable
-charity vs. advertising
**charity is not advertising - does not result in direct sales
**set up a separate budget |
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Term
| budget should be larger if the store: |
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Definition
-is in a less favorable location
-is new, expanding or changing its positioning
-faces strong competition
-stresses price - too easy to match by competition |
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Term
| business market diversity |
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Definition
-industrial
-government
-professional |
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Term
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Definition
-making consumer goods
-making other business and industrial goods and services
-facilitates the operation of a business |
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Term
| differences between industrial and consumer markets |
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Definition
-final users include middlemen and industry
-complex buying situations
-key decision makers may be outside the company - outside consultants
-sales reps are often needed |
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Term
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Definition
-increase awareness of product, company and credibility
-create a favorable image
-lower the cost of selling |
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Term
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Definition
-markets are small and concentrated
-each customer is large
-consumers demand often drives markets
-minimal secondary data compared to consumer market
-segmentation - geography, size of company |
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Term
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Definition
-technical and complex
-built to specifications |
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Term
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Definition
-professional buyers
-work for companies to purchase
-ads are more straightforward and copy heavy |
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Term
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Definition
-negotiation or bid
-short, often direct |
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Term
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Definition
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Term
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Definition
-small target
-minimal wasted coverage
-detailed presentation |
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Term
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Definition
-extensive list of standard products
-independent distributors
-list of products and prices |
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Term
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Definition
| used with broad target markets |
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Term
| message strategy - what to say |
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Definition
-product attributes - focus on product
-company attributes - what the company stands for - its capabilities
-price not as important - customization of a lot of products and negotiation/bidding in price
-priorities differ in different departments of the company |
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Term
| rational vs. emotional messages |
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Definition
-more rational than consumer advertising - not as emotional
-emotion still important - still has to break through clutter and trigger response |
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Term
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Definition
-testimonials from experts and peers
-case history - third person version of a testimonial
-demonstration - show what the product does
-news - new product information
-generic - positions the company as expert in the field |
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Term
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Definition
-very common in B2B
-exhibition of product category vendors' products
-sales leads
-vendors showcase their products |
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Term
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Definition
-keeps the company name in front of the customer
-pens, Post-Its, stress balls, etc. |
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Term
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Definition
-short purchase cycle
-lower priced items |
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Term
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Definition
| an object of a transaction, which does not involve the transfer of ownership of a tangible product |
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Term
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Definition
-task or work
-use or facility
-use of a product |
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Term
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Definition
-intangible
-not able to be stored
-not able to be transported |
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Term
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Definition
-intangibles are more difficult to assess
-difficult to portray in advertising
-may need more advertising |
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Term
| inability to store the service |
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Definition
-highly perishable services use strong price advertising and promotions
-ex. can't sell unsold seats in a movie theatre viewing or a flight |
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Term
| inability to transport the service |
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Definition
-service provider may serve limited geographic area
-can't add more kitchen space/seats to restaurant during busy time |
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Term
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Definition
-multiple production centers may mean variable quality control
-your jeans should be the same no matter where you bought them...
-advertising may create expectations that can't br met
-the less production centers, the higher the quality control/consistency |
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Term
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Definition
-convenience - time and place savings
-shopping - difficult to evaluate prior to usage |
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Term
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Definition
-healthcare
-legal
-financial
-insurance |
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Term
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Definition
-issues
-ideas
-non-profit organizations
-government - ex. Census |
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Term
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Definition
-weak benefits - ask for change in behavior that is not enjoyable - ex. texting while driving
-limited personal satisfaction - must have connection to what you're giving to
-questionable demand
-psychic costs - emotional costs associated with compliance - ex. giving blood
-insufficient budgets - biggest reason why there campaigns fail |
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Term
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Definition
-advertising is a tool
-companies use for their own purposes to achieve an end |
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Term
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Definition
-creates brand preference
-consumers buy brands above products |
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Term
| showcases competitive advantages |
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Definition
-discussion of unique benefits
-maintain strong competitive position
-forces price adjustments and better products |
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Term
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Definition
| clear benefit when improved products meet needs |
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Term
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Definition
| ads are the most cost efficient way to communicate with a mass market |
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Term
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Definition
-advertising results in higher prices
-no clear evidence |
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Term
| affects price less than other expenses |
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Definition
-labor increases
-materials increase |
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Term
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Definition
-product is truly different
-little or no competition |
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Term
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Definition
-perceived differences are small
-image advertising |
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Term
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Definition
-competition is intense
-product category is growing - increases demand
-advertising creates demand
-economies of scale kick in |
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Term
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Definition
TO ENTRY
-high cost of product introduction |
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Term
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Definition
-shrinks
-limited competitors in a product category could result in higher prices |
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Term
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Definition
-too many brands
-only as many as the market will bear |
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Term
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Definition
-never in best interest of the company
-won't occur if marketing concept followed
-needs must exist for product to be a success
-advertising reflects high value on material wealth
-more likely to occur with low involvement products |
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Term
| advertising doesn't provide complete information |
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Definition
-advertising is advocacy
-don't expect full information
-more information doesn't always lead to better decision-making
-advertisers find MOST important information to put in ads |
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Term
| advertising misleads, deceives and is full of lies |
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Definition
| -occurs, but less than it appears |
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Term
| advertising is offensive and tasteless |
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Definition
-if people were really offended, they wouldn't buy the product
-who gets to judge? consumers, market
-1st amendment - business speech protected - its all subjective |
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Term
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Definition
-advertising agency
-advertising department
-media vehicle
-production company
-research company |
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