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162 Cards in this Set
- Front
- Back
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VW campaign
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“Punch Dub;” reharnesses the punch bug game to gain awareness of all models in an entertaining, informative way; used integrated marketing strategy (traditional, mass media, social media, point of sale kits, product placement)
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rapidly changing media environment
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o Mass media losing viewers, readers, listeners
o Digital media targets narrow audience o Consumers not content to be passive message recipients o Information now obtained from a myriad of sources |
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marketing
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the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives; focuses on exchange as a central concept (to create and sustain relationships with customers)
There must be two or more parties with something of value to one another, a desire and ability to give up that something to the other party, and a way to communicate with each other. |
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role of marketing
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• Advertising and promotion-informs customers, convinces them of its ability to satisfy wants and needs.
• Nonprofits-solicit donations, offer intangible social and psychological satisfaction. |
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adapted (2007) marketing definition**
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the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large
More reflective of the role of nonmarketers to the marketing process. |
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value
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the customer’s perception of all the benefits of a product or service weighed against all the costs of acquiring and consuming it; companies strive to deliver value to customers; benefits can be functional, experiential, psychological.
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marketing mix
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o Product
o Price o Place o Promotion |
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integrated marketing communications (IMC)
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a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines—for example, general advertising, direct response, sales promotion, and public relations—and combines these disciplines to provide clarity, consistency, and maximum communications impact; involves coordinating the various promotional elements and other marketing activities that communicate with a firm's customers
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contemporary definition of IMC
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a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates and other targeted relevant external and internal audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value
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value of IMC
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- avoids duplication of marketing efforts.
- Synergy among promotional tools. - More efficient and effective marketing. |
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rapidly changing environment
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- Consumer behavior
- Technology - Media consumption behavior -Proliferation of media |
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IMC plays a major role in developing
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brand identity and equity
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brand identity
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a combination of many factors, including the name, logo, symbols, design, packaging, and performance of a product or service as well as the image or type of associations that comes to mind when consumers think about a brand.
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building brands in a recession, customers
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spend less money, carefully scrutinize purchases, rethink brand loyalties, willing to trade off or down, more price sensitive, more value conscious
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building brands in a recession, companies
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reduce ad budgets, balance discounts/promos with brand image, must overcome consumer distrust, change product marketing focus, increase online social presence, look for new ways to remain relevant.
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the promotional mix
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tools for IMC
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promotion
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the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.
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6 elements of the promotional mix
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advertising, direct marketing, interactive/internet marketing, sales promotion, publicity, personal selling
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advertising
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any paid form of nonpersonal (mass media, one way) communication about an organization, product, service, or idea by an identified sponsor; no immediate feedback from audience
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classifications of advertising
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-national advertising, retail/local advertising, primary vs. selective demand advertising, business to business advertising, professional advertising, trade advertising.
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direct marketing
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organizations communicate directly with target customers to generate a response and/or a transaction; much more than direct mail and mail-order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing, and direct-response ads through direct mail, the Internet, and various broadcast and print media.
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direct response advertising
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product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer
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interactive/internet marketing
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allow for a back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time; internet, kiosks, interactive tv, cell phones.
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sales promotion
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those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales; broken into two major categories:
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2 major categories of sales promotion
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consumer oriented approaches, trade oriented approaches
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consumer oriented approaches
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targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials; encourage an immediate purchase.
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trade oriented activities
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targeted toward marketing intermediaries such as wholesalers, distributors, and retailers. Promotional and merchandising allowances, price deals, sales contests, and trade shows are some of the promotional tools used to encourage the trade to stock and promote a company's products
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publicity
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nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services.
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public relations
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the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance
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personal selling
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a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company's product or service or to act on an idea.
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audience contact tools
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broadcast media, print media, public relations, internet, direct marketing, sales promotion, product placement, events and sponsorships, word of mouth, point of purchase, personal selling, out of home media.
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contact (or touch) point
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each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it; 4 basic categories:
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4 categories of contact/touch points
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company created, intrinsic, unexpected, consumer initiated
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company created touch points
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are planned marketing communication messages created by the company such as advertisements, websites, news/press releases, packaging, brochures and collateral material, sale promotions, and point-of-purchase displays along with other types of in-store décor.
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intrinsic touch points
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interactions that occur with a company or brand during the process of buying or using the product or service such as discussions with retail sales personnel or customer service representatives.
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unexpected touch points
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unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization.
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consumer oriented touch points
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Interactions that occur whenever a customer or prospect contacts a company.
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under armour case study
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targeting athletes in training (“Protect this house”) achieved initial success by focusing on niche markets that the big boys overlooked. The initial product—a line of tight-fitting T-shirts made of a synthetic compression fabric—targeted professional athletes and fitness buffs, offering them a way to stay cool and dry during workouts and games. The product line has been expanded to serve a variety of sports and activities markets including running, football, baseball, soccer, lacrosse, hunting, and snow sports.
o All marketing is in-house (differ from other athletic brands) |
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under armour's 4 keys to success
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- Make a great product
- Tell a great story - Provide great service -Build a great team. |
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marketing and promotions process model; 4 components
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marketing strategy and analysis, target marketing process, marketing planning program development, target market
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strategic marketing plan
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the planning framework for specific marketing activities; based on a situation analysis (a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands-helps to determine the market segments to pursue.
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market segments
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identifiable groups of customers sharing similar needs, wants, or other characteristics that make them likely to respond in a similar fashion to a marketing program.
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target market selection
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after evaluating the opportunities identified during the opportunity and competitive analysis, a company must select one or more target markets. This target market becomes the focus of the firm’s marketing effort, and has direct implications for advertising and promotional efforts.
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marketing opportunities
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areas where a company believes there are favorable demand trends, needs, and/or wants that are not being satisfied, and where it can compete effectively.
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opportunity analysis
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careful analysis of the marketplace can lead to alternative market opportunities for existing product lines, new products for current markets, or new products for new markets.
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competitive advantage
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something unique or special that a firm does or possess that provides an advantage over its competitors; include having a premium price, providing superior customer service, having lowest production costs and lower prices, or dominating channels of distribution.
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competitive analysis
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can range from direct brand competition to more indirect forms of competition, such as product substitutes. The goal is to find a competitive advantage.
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target marketing process
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identifying markets with unfulfilled needs--determining market segmentation--selecting a market to target--positioning through marketing strategies.
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target marketing
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the process of identifying the specific needs of segments, selecting one or more of these segments as a target, and developing marketing programs directed to each.
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market segmentation
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the process of dividing a market into distinct groups that have common needs and will respond similarly to a marketing action.
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bases for segmentation
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geographic, demographic, psychographic, behavioristic, benefit
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geographic segmentation
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method of segmenting a market on the basis of different geographic units or areas (nations, states, countries, or neighborhoods).
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demographic segmentation
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method of segmenting a market based on the demographic characteristics of customers (age, sex, family size, education, income, class)
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psychographic segmentation
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dividing the product on the basis of personality and/or lifestyles.
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behavioristic segmentation
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method of segmenting a market by dividing customers into groups based on their usage, loyalties, or buying responses to a product or service.
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80/20 rule
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principle that 80 percent of sales volume for a product or service is generated by 20 percent of the customers
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benefit segmentation
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a method of segmenting markets on the basis of the major benefits consumers seek in a product or service.
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after segmentation analysis, you need to determine 2 things
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how many segments to enter and which segments offer the most potential
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determining how many segments to enter; 3 market coverage alternatives
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undifferentiated marketing, differentiated marketing, concentrated marketing.
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undifferentiated marketing
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market segment differences are ignored and one product or service is offered to the entire market.
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differentiated marketing
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firm offers products or services to a number of market segments and develops separate marketing strategies for each.
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concentrated marketing
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firm chooses to focus its marketing efforts on one particular market segment.
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determining what segments offer the most potential
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examine the sales potential of the segment, the opportunities for growth, the competition, and its own ability to compete. Then it must decide whether it can market to this group.
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positioning
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the art and science of fitting the product or service to one or more segments of the marketing in such a way as to set it meaningfully apart from competition; different strategies.
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7 different strategies for positioning
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positioning by product attributes and benefits, by price/quality, by use or application, by product class, by competitor, by cultural symbols
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positioning by product attributes and benefits
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a common approach is setting the brand apart from competitors on the basis of specific characteristics or benefits. Marketers attempt to identify salient benefits, which are those that are important to customers when making purchase decisions
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salient attributes
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those considered important to consumers in the purchase decision process.
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positioning by price/quality
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using price as characteristic of the brand. If a product is positioned as high quality, price may be a secondary consideration. Another option is to focus on product quality or value offered at a competitive price.
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positioning by use or application
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associate the brand with a specific use. This approach can be an effective way to expand usage of a product.
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positioning by product class
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positioning your product against a product in another category, rather than against a competitor. For example, positioning frozen orange juice against fresh oranges.
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positioning by product user
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associating a brand with a type of person or group that uses a product or service.
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positioning by competitor
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positioning a company or brand against a competitor. Often another form of positioning is used as well to differentiate the brand.
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positioning by cultural symbols
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using a cultural symbol to differentiate a product from competitors (e.g. Keebler elves, the Jolly Green Giant, Tony the Tiger).
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repositioning
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the changing of a product or brand’s positioning; occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions.
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marketing program development (includes promotional mix)
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involves combining the various elements of the marketing mix into a cohesive, effective marketing program.
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product decisions
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product, branding, packaging
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product
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not just a physical object; it is a bundle of benefits or values that satisfies the needs of consumers.
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product symbolism
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the meaning that a product or brand has to consumers
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branding
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about building and maintaining a favorable identity and image of the company and/or its products or services in the mind of the consumer. The goal is to (1) build and maintain brand awareness and interest, (2) develop and enhance attitudes toward the company, product, or service and (3) build and foster relationships between the consumer and the brand.
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brand identity
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consists of the combination of the name, logo, symbols, design, packaging, and image of associations held by consumers.
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brand equity
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the intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of a consumer attachment of a company name, brand name, or trademark.
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packaging
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traditionally provided functional benefits such as economy, protection, and storage. However, the role and function of the package have changed because of the self-service emphasis of many stores and the fact that more and more buying decisions are made at the point of purchase.
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price variable
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refers to what the consumer must give up to purchase a product or service.
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distribution channel decisions
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: the way it makes its products and services available for purchase.
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marketing channels
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the place element of the marketing mix, are “sets of interdependent organizations involved in the process of making a product or service available for use or consumption 2 types
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2 types of marketing channels
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direct and indirect
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direct channels
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a marketing channel where a producer and ultimate consumer interact directly with one another.
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indirect channels
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a marketing channel where intermediaries such as wholesalers and retailers are utilized to make a product available to the consumer.
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2 types of promotional strategies
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push and pull
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push strategy
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strategy in which advertising and promotional efforts are targeted to the trade to attempt to get them to promote and sell the product to the ultimate consumer.
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trade advertising
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ads targeted to wholesalers and retailers.
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pull strategy
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strategy in which advertising and promotion efforts are targeted at the ultimate consumers to encourage them to purchase the manufacturer’s brand.
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participants in the IMC communications process
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advertiser (client), ad agency, media organizations, specialists organizations, collateral services
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advertiser (client)
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the organizations with the products, services, or causes to be marketed and for which advertising agencies and other marketing promotional firms provide services.
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the way a company organizes depends on
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size, number of products, role of advertising and promotion in the marketing mix, budget, marketing organization structure.
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centralized system
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organizational system whereby advertising along with other marketing activities such as sales, marketing research, and planning are divided along functional lines and are run from one central marketing department.
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advertising manager
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the individual who is responsible for planning, coordinating, budgeting and implementing the advertising program.
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pros of a centralized system
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o Better communications, fewer personnel, staff continuity, more top management
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cons of a centralized system
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o Hard to understand overall marketing strategy, longer response time, impractical for multiple brands/divisions.
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decentralized system
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organizational system whereby planning and decision-making responsibility for marketing, advertising, and promotion lies with a product/brand manager or management team rather than a centralized department. Generally, for larger corporations with multiple division and many products
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brand manager
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person responsible for the planning, implementation, and control of the marketing program for an individual brand.
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pros of a decentralized system
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o Concentrated managerial attention, rapid problem and opportunity response, increased flexibility
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cons of a decentralized system
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o Ineffective decision making, internal conflicts, misallocation of funds, lack of authority.
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category management system
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organizational system whereby managers have responsibility for the marketing programs for a particular category or line of products.
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in house agency
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advertising agency set up, owned, and operated by an advertiser that is responsible for planning and executing the company’s advertising program.
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pros of an in house system
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o Cost saving, increased control, increased coordination, stability, access to top management.
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cons of an in house system
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o Decreased experience, decreased objectivity, decreased flexibility, decreased access to top creative talent.
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advertising agency
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an outside firm that specializes in the creation, production, and placement of advertising messages and may provide other services that facilitate the marketing communications process.
-Nearly two-thirds of the domestic billings are handled by the top 500 agencies. |
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billings
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The amount of client money agencies spend on media purchases and other equivalent activities. Billings are often used as a way of measuring the size of advertising agencies.
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superagencies
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large external agencies that offer integrated marketing communications on a worldwide basis.
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reasons for using an agency
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they provide the client with the services of highly skilled individuals who are specialists in their chosen fields. An advertising agency staff may include artists, writers, media analysts, researchers, and others with specific skills, knowledge, and experience who can help market the client's products or services.
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types of ad agencies
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full service, account services, marketing services, creative services, management and finance, creative boutiques, media specialist companies
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full service agencies
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ad agency that offers clients a full range of marketing and communications services including the planning, creating, producing, and placing of advertising messages and other forms of promotion.
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account services
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or account management, is the link between the ad agency and its clients. Depending on the size of the client and its advertising budget, one or more account executives serve as liaison.
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account executive
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individual who serves as the liaison between the advertising agency and the client; responsible for managing all of the services the agency provides to the client and representing the agency’s point of view to the client.
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marketing services
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includes research gathering about the target marketing
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account planners
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-ad agency personnel who gather information that is relevant to a client’s product or service and can be used in the development of the creative strategy, as well as other aspects of the IMC campaign.
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creative services
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responsible for the creation and execution of advertisements.
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copywriters
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individual who helps conceive the ideas for ads and commercials and writes the words or copy for them.
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management and finance
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Like any other business, an advertising agency must be managed and perform basic operating and administrative functions such as accounting, finance, and human resources.
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creative boutiques
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small agencies that specialize in and provides only services related to the creative aspects of advertising.
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media specialist companies
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companies that specialize in the buying of advertising media time and space, particularly for radio and television.
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agency organization and structure, 2 types
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departmental system and group system
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departmental system
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organization into departments based on functions such as account services, creative, media, marketing services, and administration.
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group system
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organization of an ad agency by dividing it into groups consisting of specialist from various departments such as creative, media, marketing services, and other areas; the groups work together to service particular accounts.
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ways agencies are compensated
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commission, fee arrangement, cost plus, incentive based, percentage charges
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commission system
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method of compensating ad agencies whereby the agency receives a specified commission (traditionally 15 percent) from the media on any advertising time or space it purchases.
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negotiated commission
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method of compensating ad agencies whereby the client and agency negotiate the commission structure rather than relying on the traditional 15 percent media commission.
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straight/fixed fee method
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the agency charges a basic monthly fee for all of its services and credits to the client any media commissions earned. Agency and client agree on the specific work to be done and the amount the agency will be paid for it.
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cost plus agreement
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agency receives a fee based on the cost of the work it performs plus an agreed on amount for profit.
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incentive based system
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ad agency’s compensation level depends on how well it meets predetermined performance goasl such as sales or market share.
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percentage charges
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another way to compensate an agency; the markups charged by advertising agencies for services provided to all clients.
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evaluating agencies with two types of assessments
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financial audit, qualitative audit
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financial audit
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an aspect of the advertising agency evaluation process that focuses on how the agency conducts financial affairs related to serving a client.
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qualitative audit
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an audit of the advertising agency’s efforts in planning, developing, and implementing the client’s communications programs.
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why agencies lose clients
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• Poor performance or service.
• Poor communication. • Unrealistic demands by the client. • Personality conflicts. • Personnel changes. • Changes in size of the client or agency. • Conflicts of interest. • Changes in the client's corporate and/or marketing strategy. • Declining sales. • Conflicting compensation philosophies. • Changes in policies. • Disagreements over marketing and/or creative strategy. • Lack of integrated marketing capabilities. |
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how agencies gain clients
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referrals, solicitations, presentations, public relations, image and reputation
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referrals
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agencies maintain good working relationships with their clients, the media, and outside parties that might provide business to them.
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solicitations
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seeking out and establishing contact with new clients; through letters, cold calls, and following up on leads.
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presentations
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invitation from a company; gives the agency the opportunity to describe its experience, personnel, capabilities, and operating procedures, as well as to demonstrate previous work.
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public relations
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seek business through publicity efforts; often participate in civic and social groups and work with charitable organizations pro bono.
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image and reputation
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perhaps the most effective way an agency can gain new business is through its reputation for doing excellent work for the clients it serves.
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media organizations
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function is to provide information or entertainment to subscribers, viewers, or readers while offering marketers an environment for reaching audiences with print and broadcast messages.
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marketing communication specialist organizations
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(direct marketing agencies, sales promotion agencies, interactive agencies, public relations firms)-organizations that provide marketing communication services in their areas of expertise including direct marketing, public relations, and sales marketing
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collateral services
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companies that provide companies with specialized services such as package design, advertising production, and marketing research
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common criticisms of advertising
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creates materialism, gets people to buy things they don’t need, is untruthful.
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proponents of advertising
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advertising is the lifeblood of business; provides consumers with information and encourages them to improve their standard of living; protects jobs and helps new firms enter marketplace.
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critics of advertising
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most ads are more propaganda than information; creates false needs; they are everywhere
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advertising as untruthful or deceptive
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many ads are misleading or untruthful and deceive consumers.
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advertising as offensive or in bad taste
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ads are offensive, tasteless, irritating, boring, obnoxious, and so on.
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sources of distaste
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sex, feminine hygiene products, undergarments, hemriod products.
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sexual appeals
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have received the most criticism for being in poor taste; demean women by depicting them as sex objects (i.e. alcohol, cosmetics, lingerie ads)
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shock advertising
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advertising in which marketers use nudity, sexual suggestiveness, or other startling images to get consumers’ attention.
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advertising adn children
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children, particularly young ones, are especially vulnerable to advertising because they lack the experience and knowledge to understand and critically evaluate the purpose of persuasive advertising appeals.
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consumer socialization process
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the process by which an individual acquires the skills needed to function in the marketplace as a consumer; comes from those who argue that advertising is a part of life that children must get used to.
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CARU
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has strict self regulatory guidelines regarding the type of appeals, product presentations and claims, disclosures and disclaimers, the use of premiums, safety, and techniques.
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materialism
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a preoccupation with material things rather than intellectual or spiritual concerns.
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ad stereotyping and women
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Critics have argued that advertising often depicts women as preoccupied with beauty, household duties, and motherhood or shows them as decorative objects or sexually provocative figures.
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ad stereotyping and minorities
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For many years, advertisers virtually ignored all nonwhite ethnic groups as identifiable subcultures and viable markets. Ads were rarely targeted to these ethnic groups, and the use of blacks and Hispanics as spokespeople, communicators, models, or actors in ads was very limited.
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ad stereotyping and other groups
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mentally and physically disabled, gay/lesbian, among other groups have typically been under or poorly represented in advertisements.
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ethics
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moral principles and values that govern the actions and decisions of an individual or group.
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some ethical considerations
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o Not all issues can be regulated
o A marketing or promotion action may be legal but not ethical o Companies are scrutinized for their ethics o A lapse in ethical standards or judgment can actions that are highly visible and often damaging to a company |
