MKTG 477 1st Edition Exam 1 Study Guide Lectures 1 15 Know promotional lingo and buzzwords e g upfront market scatter market make goods etc and be able to apply them For example do you know what spot TV is Can you explain why a spot buy would be less expensive than a network buy Creative review putting an account up for review New pitch pitching an account Upfront market a buying period that occurs before the TV season begins buying TV advertising inventory time slots on programs Scatter market a buying period after the upfront market for remaining advertising inventory Make good a pay back of additional advertising to an advertiser if a condition wasn t met Tagline a sentence or phrase that often comes near the end of a TV commercial or at the bottom of a print ad for purposes of creating and or reinforcing a brand image Madison Avenue the advertising industry Hollywood of advertising Spot TV advertisements shown in specific DMAs 210 nationwide Network TV tries to reach a national audience more expensive because it is reaching a broader audience What are the elements of IMC i e the separate Promotional mix and Marketing mix elements Integrated Marketing Communications involves coordinating the various promotional elements and other marketing activities that communicate with the firm s customers o Promotional mix elements Advertising Public Relations Sales Promotions Personal selling direct marketing o Marketing mix elements Product Place distribution Pricing Promotion What are the major targets of sales promotion Consumers 20 cent off cereal rebates contests etc Businesses product placement end displays slotting exit fee etc The company s own sales reps What would an IMC strategy consist of What is the advantage of an IMC strategy over traditional promotional strategies A way to coordinate and manage the marketing communication programs to ensure that they are sending customers a consistent message about the company and or its brand Advantage makes it easier for consumers to recognize and consistently remember the brand What is the guiding principle of promotion Why is it important for us to know it All promotions should be aimed to a specific target group with a specific objective in mind and within a certain budgetary constraint Important to know because it helps successfully target the demographic that will most likely support your brand and purchase your products Know and be able to apply Segmentation criteria homogeneous within heterogeneous between etc segmentation bases demographic psychographic etc and segmentation approaches empirical and a priori Segmentation criteria o Homogeneous within members in each individual group share relevant traits and needs o Heterogeneous between traits and needs of one group are different than those of another group o Substantial large enough to be potentially profitable o Meaningfully defined descriptions of the groups are appropriate for the product service being segmented Segment bases o Demographic age income marital status gender education family size race occupation etc o Geographic country region state city neighborhood etc o Psychographic lifestyles AIOs activities interests opinions o Behavioristic specifically relate to the product usage rate 80 20 rule heavy vs light users brand loyalty store type benefits sought Segmentation approaches o A Priori before any data are gathered and examined assumes that differences must exist among consumers segment accordingly o Empirical begins with research of the market data analysis reveals segments Why do marketers develop segment profiles How do they use these profiles to reach consumers creatively and literally Marketers develop segment profiles to ensure their money is being spent in the most effective and accurate way to increase sales and awareness of their product or service Creativity an advertising campaign that consumers can identify with speaks to them Literally via media placing the ad in a medium that consumers are exposed to Know and be able to apply Target Marketing Strategies concentrated differentiated etc Undifferentiated one strategy targeting the entire market ignoring segment differences bad idea Differentiated unique strategies targeting each segment separately idea strategy but very expensive o Segment 1 Strategy A o Segment 2 Strategy B o Segment 3 Strategy C o Segment 4 Strategy D Concentrated targeting a single segment with a unique strategy while ignoring all other segments best strategy o Target segment 1 Strategy A What is the purpose of positioning How is it done what are specific positioning strategies Developing and executing a creative strategy that creates of reinforces a certain brand image in the minds of consumers from the target market o This is the primary focus and responsibility of advertising Brand positioning by o Product attributes benefits o Price quality relationship o Product user o Competitor o Cultural symbol icon Understand and be able to apply the Communications Process Model and its components e g encoding decoding fields of experience etc Involves at least two parties Individuals interpret communications differently Knowing understanding the receiver s background and needs aids communication Feedback aids communication Communication is aided when the parties have similar fields of expertise Some noise in the process in inevitable within each stage encoding message channel decoding and feedback Suggests communication is shared meaning Understand how noise may affect each stage of the communication process differently Source other consumers may have posted comments as to whether they like the product or not influencing you to have a positive or negative mindset Encoding marketers may not communicate the message in a way for the consumers to easily understand Message others may influence how you feel before seeing the advertisement creating a preconceived notion Decode consumer may not understand the message being sent Receiver consumer may have opinions about the brand beforehand leading to already like or dislike the product What are rules for overcoming noise What are the managerial implications of each 1 Know understand your audience customer a Cannot assume they are the same as you b Advertisers should not insult the intelligence of their audience but don t assume their audience is intelligent 2 Make the ad attention getting but simple a Keep it simple stupid KISS 3 Monitor the effectiveness of the ad a Seek consumers true responses to