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EXAM 2 REVIEW

Terms in this set (121)

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CHP 7 Traditional Media Channels
Media strategy
involves analyzing and choosing media for an advertising and promotions campaign.
1Analysis of target market
2Focus on consumer behavior
3Understanding purchase process
4Study media choices
5Listening and viewing habit
Steps in media planning
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Advertising Terminology
Reach
represents the number of people, households, or businesses in a target audience that are exposed to a media vehicle or message schedule at least once during a specified time period, which is usually four weeks.
Frequency
is the average number of times an individual, household, or business is exposed to a particular advertisement within a specified time period, again usually within four weeks.
Opportunities to see (OTS)
refer to the cumulative exposures achieved in a given time period. A brand that places three ads on a television show that is televised weekly will produce 12 OTS (3 shows x 4 weeks).
Gross rating points (GRPs)
measure the impact or intensity of a media plan. _____ are calculated by multiplying a vehicle's rating by the OTS
Cost
for media is often per one thousand (CPM), which allows for easy comparisons across vehicles and even media.
Ratings .
measure the percent of a target market that is exposed to a medium
Cost per rating point
allows for comparisons across media. It is calculated by dividing the cost of the media buy by the vehicle's rating.
weighted (or demographic) CPM,
An alternative is to use the _______ which is calculated by multiplying the cost of the media buy by 1,000, then dividing by the actual audience reached.
Continuity
refers to the exposure pattern or schedule used in the campaign. A continuous campaign uses media in a steady stream throughout the entire campaign. Pulsating has expenditures throughout the entire campaign, but will also have bursts when extra spending occurs. Flighting (or discontinuous) spends money on media at different times during the campaign and none at other times.
Gross impressions
represent the total exposures of an audience to an advertisement. If an ad was shown four times on a television show with an audience of 2 million people, then the total gross impressions would be 8 million.
TV advertising adv
uHigh reach
High frequency potential
Low cost per contact
High intrusion value
Quality creative opportunities
Segmentation through cable
TV ads disadv
High level of clutter
Low recall due to clutter
Channel surfing during ads
DVRs skipping ads
Short amount of copy
High cost per add
radio advertising adv
Recall promoted
Narrower target markets
Ad music can match audience
High segmentation potential
Flexibility in making ads
Modify ad to local conditions
Intimacy with DJs
Mobile - listen anywhere
Creative opportunities with sound and music
radio advertising disadv
Short exposure time
Low attention
Difficult to reach national audiences
Target duplication with several stations using the same format
Information overload
Out-of-Home Advertising adv
Select key geographic areas
Accessible for local ads
Low cost per impression
Broad reach
High frequency on major commuter routes
Large visuals possible
Digital capabilities
Out-of-Home Advertising disadv
Short exposure time
Brief messages
Little segmentation possible
Clutter
Magazine Advertising adv
High market segmentation
Targeted audience by magazine
Direct-response techniques
High color quality
Long life span
Read during leisure
Longer attention to ads
Availability of special features
Magazine Advertising disadv
Declining readership
Clutter
Long lead time
Little flexibility
High cost
Newspaper Advertising adv
Geographic selectivity
High flexibility
High credibility
Strong audience interest
Longer copy
Cumulative volume discounts
Coupon and special-response features
newspaper advertising disadvantage
Poor buying procedures
Short life span
Clutter
Poor quality reproduction
Internet competition
Aging readership
Media Mix
Selecting the proper blend of media outlets for advertisements is crucial. (ex: MCDs advertises EVERYWHERE!) The work of media planners is especially important. It is their task to match target markets with media audiences, to know what media a specific target market uses
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Chapter 8 - Digital Marketing
organic search results
retailer sites or apps
email marketing
paid search
social media
Online Retail Sales by Digital Channel
_______ generate the highest percent of online sale
_______ is second
_______ is third
_______ if fourth
________ is last
e-commerce.
Selling goods and services on the Internet is known as_______ E-commerce consists of click-only operations that sell exclusively online and bricks-and-clicks that operate both retail and online stores. E-commerce is being conducted in both the consumer sector and the B-to-B sector. Online sales now account for nearly 7.5% of total retail activity. Many consumers conduct research online prior to making a purchase.
1 Search-optimized design
2 Customer-centric design
3 Mobile-optimized design
4 Consistent customer experience
5 Channel integration
6 Brand engagement
7 Shopping cart abandonment strategies
8 E-commerce incentives
9 Offline marketing
Characteristics of Successful E-Commerce Sites
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Successful E-Commerce Search-Optimized Design
search engines.
Successful e-commerce are optimized for _____ The design of the website impacts where a company or brand will appear on the SERP. In addition to content, web search crawlers look at page titles and title tags.
-80% of americans online research
1 Easily locate merchandise
2 Indexed using customer terms
3 Drill-down search function
4 Unique product descriptions
5 Avoid thin and duplicate copy
6 Pictures over words
7 Optimal is 4-6 products per page
Successful E-Commerce Customer-Centric Design
uPersonal
uGeo-location
uTwo-way communication
uCamera/video technology
uVoice recognition
uPhone sensors
Ways Mobile Differs from Other Media
Location-based advertising, often called geo-targeting,
utilizes the GPS on mobile devices to send targeted messages to individuals based on their geographic location.
uTargeting by DMAs (Designated marketing areas), 30%
uGeo-fencing, 27%
uAudience-data targeting, 24%
uGeo-aware advertising, 14%
uCity or zip code, 5%
Location Based Advertising Types
Targeting by DMAs
is a broad approach reaching a high number of consumers with a specified DMA.
Geo-fencing
targets individuals within a short distance of a retail location.
Audience-data
targeting adds information about consumers to the geographical location information.
Geo-aware
uses real-time location information to target individuals close to the retail outlet.
search - 49.2%
banners - 22.6%
media/video - 13.6%
Other - 8.9%
Classified - 5.7%
US Online ad spending by format
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CHP 9 - Social Media
Social media
is any digital tool or venue that allows individuals to socialize on the web.
social network
is a social structure of individuals or organizations that are tied together in some manner.
Social media marketing
is the utilization of social media and social networks to market a product, company, or brand.
General Social Networking sites
Niche Social networking sites
-Business
-Family and lifestyle
-Dating
-Special interests and hobbies
-Shopping
Bookmarking Sites
Types of Social Networking Sites
General social networking sites
are broadly based and are designed to appeal to all demographics. Facebook is an example.
Niche social networking sites
focus on a specific topic, hobby, interest or demographic group. LinkedIn is an example of a business niche site. Subcategories of niche sites include business, family and lifestyle, dating, special interests, hobbies, and shopping.
Social bookmarking sites
allow individuals to share bookmarks of their favorite websites.
uEngage fans
uIncrease brand exposure
uAvenue for customer interaction
uIncrease traffic
uGenerate leads
uEnhance brand image
uImprove search rankings
uGather customer intelligence
uDevelop loyal fans
uIncrease sales
Build Brand loyalty
Reasons for Social Media Marketing
1.Determine social media goals
2.Determine online personality
3.Decide on social media platforms
4.Develop social media strategies
5.Develop an analytical feedback loop
Steps in Building a Social Media Presence
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Video Marketing
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u58% US population watch videos
u75% Internet users watch videos
uSpending now $4.6 billion
uGrowing 20% to 40% annually
uMore receptive to online videos
uAdvertising on videos
uPosting of television ads
uInformational videos
uCause-related videos
uProduct reviews
uVloggers
Video Marketing Tactics
Pre-roll
uHigher impressions
uEnhance recall

Mid-roll
uHigher completion rate
uEnhance brand recognition, brand image

Post-roll
uHigher click-through rate
uDirect response, call to action ads
Location of Video Ads
•Focus on the product or business
•Determine why individuals would want to share the message
•Offer an incentive
•Make it personal
•Track the results and analyze the data
Keys to Successful Viral Marketing
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CHP 10 - Alternative Marketing
•Buzz marketing
•Guerrilla marketing
•Lifestyle marketing
•Experiential marketing
•Product placement
•Branded entertainment
Forms of Alternative Marketing
Buzz marketing
emphasizes consumers passing along information about a product. Since buzz marketing is word-of-mouth from an individual, it has a higher level of credibility.
sponsored consumers
house parties
company employees
stealth marketing
Buzz marketing involves
guerilla marketing
It is designed to bring instant results with low-cost, unique marketing methods. Guerilla marketing focuses on a region or area and involves interacting with consumers in a unique and different way. The goal is to create excitement and to generate buzz. It is often connected with grassroots efforts to launch a brand or to market a product. Often alternative media are used.
lifestyle marketing
involves identifying marketing methods associated with the hobbies, entertainment, and lives of the target audience
product placement
is a planned insertion in a movie, television show, book, or other form of entertainment. It has been used since the 1890s, but only recently has grown in popularity.
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The biggest surge in product placement came in 1982 with E. T. and Reese's Pieces. The placement of the Reese's Pieces in the movie spurred a 65% increase in sales following the movie's release.
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Research has found that product placement increases awareness of the brand and creates a more positive attitude towards the brand, but does not have any immediate impact on sales. From a cost standpoint, product placement has a low cost per viewer of impressions. A primary advantage is that the impressions do not stop with the movie. After the movie has played in theaters, it goes to DVD movie rentals, to pay-per-view television, then to the movie channels on television.
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In 2011, Coca-Cola and AT&T were the top brands in terms of product placement. The top show for product placement was American Idol with 208 per month. A distant second was Celebrity Apprentice with 127.
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A.C. Nielsen research has further reinforced the positive impact of brand placements. Brands that were placed in "emotionally engaging" programs were recognized by 43% more viewers. Brand recognition increased 29% in programs deemed to be "highly enjoyable." For other popular programs, positive feelings toward the brand increased by 85%.
•Video games
•Cinemas
•Subways
•Street and mall kiosks
•Escalators
•Parking lots
•Airlines
•Shopping bags
•Clothes
Examples of Alternative Media
inside retail stores.
Approximately 60% of all purchase decisions are made _____ In a survey of consumers, 52% said that in-store signage, displays, or point-of-purchase displays influenced their clothing purchase decision. Yet, the funds allocated to in-store marketing efforts are a very small part of marketing budgets.
In-store "make or break" time

Engage customers
Most engaging
-End-aisle displays
-Merchandise displays

Lease engaging
-Ceiling banners
-Overhead mobiles

Use color, light, sound, taste, and smell

Motion
-Video screens
-Television monitors
-Digital signage
In-Store Marketing Tactics
•Location is key
•Last chance to reach buyer
•Effective for increasing sales because
-60% of decisions are in a store
-50% of money spent at mass merchandisers and supermarkets is unplanned
-50% of Coca-Cola products from displays
•Average increase in sales is 9%
•Half of POP displays not effective
-Half that are effective - 20% increase in sales
Point-of-Purchase Tactics
•Integrate the brand's image into the display
•Integrate the display with current advertising and promotions
•Make the display dramatic to get attention
•Keep the color of the display down so the product and signage stand out
•Make the display versatile so it can be easily adapted by retailers
•Make the display re-usable and easy to assemble
•Make the display easy to stock
•Customize the display to fit the retailer's store
Effective Point-of-Purchase Displays
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CHP 11 - Database Direct Response Marketing and Personal Selling
identifying customers
building relationships
Two primary purposes behind DB marketing
uBuilding a data warehouse
uDatabase coding and analysis
uData mining
uData-driven marketing communications
uData-driven marketing programs
Tasks in Database Marketing
Geocoding
is the process of adding geographic codes to customer records so that customers can be plotted on a map.
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Geocoding also allows for adding demographic and psychographic information to the customer's record. With this information, customer clusters can be identified using software such as CACI Coder/Plus. The concept behind the geographic clusters is that people who share common values and interests tend to live in the same neighborhoods.
Data mining
involves using computer data analysis software to mine data for meaningful information and relationships.
customer groups and of a firm's best customers. Then a search can be made for customers who fit this profile, but who are not spending at the level of the best customers. These individuals can then be targeted with special marketing programs or even personal selling.
Data mining is used to build profiles of
models that will aid in predicting future purchase behavior.
Data mining can also be used to prepare
uFirst Horizon - profiles best prospects
uAmerican Eagle - price markdowns
uStaples - profiles of best customers
Data mining helps Retailers learn what other products a person buys when a particular product is purchased. Barnes and Noble uses this process when a customer selects a book to purchase; they tell the customer what other books were bought by purchasers of that particular book.

other examples
Permission marketing
Consumers today are fed up with spam and junk mail. _______ sends materials only to individuals who give permission. Companies need to make sure consumers have given permission. Sometimes when placing an online order, companies will automatically check the box that grants permission to send e-mail offers. If the customer doesn't want to participate, they must uncheck the box. In addition to online, permission can be given through the telephone and in the mail.
higher response rate since the individual has agreed to receive marketing materials.
The advantage of permission marketing is that it generates a
uEnsure recipients have granted permission
uMake e-mails relevant
uCustomize program by tracking member activity
empowerment reciprocity
Keys to Successful Permission Marketing
sweepstakes or chance to win
already a customer
email required to access content
found site randomly
friend recommended
Reasons Consumers Opt into an E-mail Permission Program
Interesting content
account status updates
contests and sweepstakes
price bargains
entertaining
Reasons Customers Remain Loyal to a Permissions Relationship
- potential income and probability of acquiring the prospect as a customer.
Not all sales leads are good prospects. Many companies will hire other individuals to qualify prospects so salespeople can concentrate on making sales calls. Two dimensions are important when evaluating sales leads
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Often leads are categorized into three or four groups based on these two dimensions. Those in the best group (high potential income and high probability of acquiring) receive a personal sales call. Leads in the other groups can be handled through telemarketing, mailing out marketing materials, or other strategies that are less expensive.
sales call
A leads receive a
telemarketing /email
B leads receive
marketing materials
C Leads receive
monitored for future
D leads are
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CHP 12 - Sales Promotions
uCoupons
uPremiums
uContests and sweepstakes
uRefunds and rebates
uSampling
uBonus packs
uPrice-offs
Types of Consumer Promotions
price-off
are the best and quickest method to stimulate sales. A price reduction can also entice consumers to try a product because the financial risk has been reduced.
Most consumers, 51%, were not aware the item was on sale when they purchased it. Another 40% would have purchased the product anyway. That means only 9% of consumers purchased the item because of the price-off.
Impact of Price-Offs on Consumer Purchase
trade incentive
The most used and well-known _____ is cooperative advertising.
cooperative advertising
Manufacturers pay a part of the cost of retail advertisements in exchange for promoting the manufacturer's brand. To earn the co-op dollars, the retailer must meet the manufacturer's guidelines. Also, no competing brands can be in the ad. Retailers accrue co-op dollars based on sales. Co-op advertising allows retailers to expand their advertising budget since the manufacturer will pick up 50% to 80% of the costs. Manufacturers like co-op ads because their brand is being promoted in local markets by retail stores.
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CHP 13 - PR and Sponsorship Programs
uIdentify internal and external stakeholders
uAssess the corporate reputation
uAudit corporate social responsibility
uCreate positive image-building activities
uPrevent or reduce image damage
Public Relations Functions
uDiscrimination
uHarassment
uPollution
uMisleading communications
uDeceptive communications
uOffensive communications
Image Destroying Activities
uEmpowerment of employees
uCharitable contributions
uSponsoring local events
uSelling environmentally safe products
uOutplacement programs
uSupporting community events
Image Building Activities
proactive strategies and reactive strategies.
Damage-control strategies can be divided into two categories based on the overall approach used -
Proactive approaches
try to prevent or reduce the chances of negative events through building a positive image through entitling and enhancements.
Reactive strategies
try to react to a negative situation through Internet interventions, crisis management programs, or impression management techniques.
Sports account for 68.8% of sponsorships and event marketing in the United States. The next largest category is for entertainment, tours, and attractions, at 9.8%. Charities and causes are third with 8.9%.

smallest is the arts at 5.4%
Expenditures on Sponsorships & Events
uFood & Drug Administration (FDA)
uFederal Communications Commission (FCC)
uU.S. Postal Service (USPS)
uBureau of Alcohol, Tobacco, and Firearms (ATF)
uFederal Trade Commission (FTC)
Governmental Regulatory Agencies
The Food & Drug Administration (FDA)
regulates and oversees the packaging and labeling of products. It also oversees advertising on food packages and the advertising of drugs.
The Federal Communications Commission (FCC)
regulates the television, radio, and telephone industries and grants operating licenses for radio and television stations. The FCC does not have jurisdiction over the content of advertising, but does oversee the amount of advertising directed towards children. Currently, TV stations are limited to 12 minutes per hour during weekdays and 10 minutes per hour on weekends.
The U.S. Postal Service (USPS)
has jurisdiction over all mailed marketing materials and investigates cases of mail fraud.
The Bureau of Alcohol, Tobacco, and Firearms (ATF)
oversees the sale, distribution, and advertising of alcohol, tobacco, and firearms.
The Federal Trade Commission (FTC)
is the primary agency that oversees marketing and advertising.
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Unfair and Deceptive Marketing Practices
1) to investigate cases of unfair and deceptive advertising, 2) to stop unfair and deceptive marketing practices, and 3) to levy fines.
The 1938 Wheeler-Lea Amendment gave the FTC three powers:
a substantial number of people or a typical person is left with a false impression or misrepresentation of the product, and that false impression induces people or the typical person to make a purchase.
An advertisement is deemed to be deceptive or misleading when it meets these two tests:
factor in the decision.
Companies can be charged with unfair and deceptive advertising even if they did not intend to mislead. In other words, intent is not a
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Deception versus Puffery
Puffery
is an exaggerated claim about your product and is not intended to be a factual statement.
best, greatest, and finest. These are okay.
The FTC understands companies brag about the greatness of their products and have the right to do so. A claim is a factual statement about a product and must be substantiated. Puffery includes the words
better
In the past, the word ______ was considered puffery. The word has recently come under court and FTC investigations because it implies a comparison and that one brand performs better than another. As such, the FTC says you have to be able to prove that it does, which then makes better a claim rather than puffery.
uCases involving children 12 and under
uOnline privacy practices of websites
uOperates similar to the NAD
uPrescreens ads directed to children
uExamines 300 ads per year
uChildren under 12 do not have reasoning power
Children's Advertising Review Unit (CARU)
•Ads for toys should not create unreasonable expectation. Toys should look and act as they would if a child was playing with it.
•Ads should not blur between fantasy and reality.
•Ads should have clear and visible disclosures about what items come with a toy and what items do not.
•Items that require adult supervision must be shown with adults supervising the child.
•Products and ad content should be appropriate for children.
CARU Guidelines for Advertising to Children
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