MARK 3000 3rd EditionExam # 3 Study Guide Lectures: 1 – 6*Make sure you read chapters 8,14,17,18, and 19!*Lecture 1 (October 16) Integrated Market CommunicationsList and describe the methods of promotion. What is another name for this?1. Advertising/paid promotion: mass media; the sponsor is usually identified2. Public relations/publicity: anything done to maintain a positive relationship with the public and media. Not directly paid, “free” media attention.3. Personal selling: one to one, two way flow of information4. Sales promotions: special incentives, usually short-term i.e. BOGO, contests5. Direct marketing: delivering promotional materials individually6. Online/social media: can include a combination of the above-another name for the methods of promotion is “the elements of the promotional mix”Explain the AIDA model for the objective of promotions.- Awareness: recognizing that the product is available- Interest: wanting to find out more- Desire: “I want the product”- Action: buying the productList the steps of planning and executing ad campaigns.1. Identify your target audience2. Set advertising objectives3. Determine your budget4. Convey a message5. Evaluate and select media6. Assess the impact of your adWhat do you need to think about when identifying your target audience?Who is your audience? is it your current target market? Or is it a new target market?What are the advertising goals and objectives?To inform, persuade, or remind. They depend on where you are in the PLC:- informative: create awareness, focus on education and buzz. Introduction/early growth stages- persuasive: comparing your brand to other brands, focus on features and advantages. Growth/early maturity- reminder: to remind or prompt a response. Usually not very detailed. Maturity stageExplain push vs pull advertising.Push: aimed at channel members; mostly personal selling i.e. trade sales promotions-manufacturer promotes to wholesaler > wholesaler promotes to retailer > retailer promotes to consumer > people buy from the retailerPull: aimed at final consumers; create demand and the consumer will “pull” the product through the channel-manufacturer promotes to people > people demand product from retailer > retailer demands product from wholesaler > wholesaler demands product from manufacturerWhat do you have to consider when setting an ad budget?- How important advertising is to your company- How expenditures vary throughout the PLC (usually spend $$$ in the introduction, and $in the maturity)- The nature of the market and how the product influences the size of the budgetWhat are the two focuses of ads? - Product-focused: inform, persuade, or remind people about a specific product/service- Institutional ads: corporate image, advocacy (for social issues: cancer research, fight hunger), PSAs (FCC requires broadcasters to devote time to them)Lecture 2 (October 23) Integrated Market Communications continuedWhat is a unique selling proposition? Give examples. The common theme or slogan in an ad campaign; the value proposition“Red Bull gives you wings” “Oreo: Milk’s Favorite Cookie” “TNT: We Know Drama” What is puffery?Exaggerated claims generated for promotional reasons; statements that express subjective rather than objective claims that no reasonable person would take literally.Explain media planning, the media mix, and the media buy.- Media planning: deciding what you’ll use- Media mix: which channels will you use? (magazines, TV, radio, billboards, etc)- Media buy: actually buying the ad spaceIn regards to selecting media, what are frequency, reach, and CPM?- Frequency: how many times people will see the same ad- Reach: how many people in your target market will see it- CPM (cost per thousand): how much $ it takes to reach 1000 people (M not T because ofthe Roman numeral for thousand)What aspects of each medium should you consider when choosing one for your ad?- TV: wide reach, sound and video. BUT expensive- Radio: cheap, can be selectively targeted, wide reach. BUT no video, less focused attention than TV, short exposure period- Magazines: very targeted, subscribers pass it along. BUT kinda inflexible, takes a while tobe available- Newspaper: flexible, timely, localizable. BUT expensive in some markets and short lifespan- Internet: can be linked to detailed content, very flexible/interactive, specific targeting BUT becoming cluttered, and people have AdBlocker - Outside: pretty cheap, opportunities for repeat exposure, BUT not easily targeted, some markets have placement problems, short exposureWhat are the three kinds of ad schedules?- Continuous: every week at the same level throughout the year- Flighting/seasonal: only at certain times of the year e.g. sunscreen- Pulsing: some ads all the time, others at specific timesHow do you assess impact using marketing metrics?- Pretesting- Tracking sales, awareness- Post-testingWhat do the FTC, FCC, and FDA regulate and enforce?- FTC: Federal Trade Commission; enforces truth in advertising laws, defines deceptive ads- FCC: Federal Communications Commission; regulates tobacco ads, forbids obscene/indecent language - FDA: Food and Drug Administration; regulates packaging labeling/inserts, define “organic” and “light”, requires disclosure or warning statementsWhat are the forms of public relations?- Press releases- Company tours (like at the World of Coke)- Speakers- Sponsorships- Annual reportsLecture 3 (10/28) Sales Promotions and Integrated MarketingDefine sales promotions.Short term special incentives aimed at either consumers or channel members What are some kinds of sales promotions aimed at consumers?- Coupons- Contests- Samples- Premiums like BOGO- Product placement in movies and TV showsHow are contests and sweepstakes different?Contests require some kind of skill like writing a jingle or guessing an answer. Sweepstakes are pure chance and aren’t allowed to require that you buy something to enter (because paying money to earn money is considered gambling)What are some trade sales promotions?- Point of purchase/point of sale displays- Contests for store managers- Push money: manufacturer rewards salespeople with cash every time they sell one of their products. Very common in electronics and travel- Issues: can create conflict in the channel; must be offered fairlyWhat is direct marketing?Delivering individual promotional materials; i.e. through customer databases, emails, catalogs mailed to houses. They can be