MKTG 477 1st EditionExam # 1 Study Guide Lectures: 1 - 15Know 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 abroader 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 customerso Promotional mix elements  Advertising Public Relations Sales Promotions Personal selling/direct marketing o Marketing mix elements Product  Place/distribution Pricing PromotionWhat 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 repsWhat 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 thatthey 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 productsKnow 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 needso Heterogeneous between – traits and needs of one group are different than thoseof another groupo 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 approacheso “A Priori” – before any data are gathered and examined; assumes that differencesmust exist among consumers (segment accordingly)o “Empirical” – begins with research of the market; data analysis reveals segmentsWhy 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 Ao Segment 2 = Strategy Bo Segment 3 = Strategy Co 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 AWhat 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/benefitso Price/quality relationshipo Product usero Competitoro Cultural symbol/iconUnderstand 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 productWhat are