MKT 3010 1st EditionExam # 4 Study Guide Lectures: 17-22Know all vocab from the following chapters as well as the information belowChapter 17- How does IMC relate to the 4Ps?o It represents the promotion dimension of the 4P’s and encompasses general advertising,personal selling, sales, promotion, public relations, direct marketing, and electronic media- What are the new communications realities? What does this mean in terms of shifting the communications model?o Fragmentation- more effective for communicationo Information Technology- assisting micro marketing Less broadcasting More narrowcasting- strategy of connecting with a lot of people but in small groups according to how they are being targeted- What is the purpose of Integrated Marketing Communications?o Firms integrate and coordinate communication channelso Deliver clear, consistent, and compelling messages- IMC encompasses what channels/components? What are the advantages of direct marketing and online marketing? What are examples of each (i.e. tools)? o Advertising, Sales Promotion, Public Relations, Personal selling, Direct marketing and Online marketing o Direct marketing Easily personalized Growth of data New technologies Tools: telephone, mail, catalogs, email, mobile marketing- Advantages: immediate, customized, not to the masses- What and who is involved in the communications process? What does each entity entail? o Sender- must be identifiedo Transmitter encodes message- within firm or through ad agency, takes message and makes it interesting and intriguing to the customer.o Communications channel (media)- decides what channels are appropriateo Receiver (consumer) decodes message-*** The firm cannot control how the receiver decodes the message, consumers have their own perception Noise from environment- competitors, or outside factors that prevent the consumer from getting the message- What is important for marketers to understand when it comes to how consumers perceive communications?o Each consumer will decode messages differentlyo Senders adjust messages according to the medium and receivers’ traits- What is the AIDA model and what does it suggest? What is entailed in each step of the mental stages?- The AIDAo Awareness Top-of-mind- asking about with no aid ( essay style) Aided Recall- asking about with choices or reminder (multiple choice) Is your product top of mind and needs no assistance to think of or does it require aided recall for the consumer to buy?o Interesto Desireo Action***not everything in order (impulse purchases)- What is the lagged effect? Why is it important to understand?o The lagged effect- not being affected by an ad right away. Consumers may not always actright when they see the ad- When measuring success, what is important when setting strategic goals? o Outcome hoping to achieveo Short-term or long-termo Defined and measured- What are types of methods used to plan a marketing communications budget? What do they entail?o Rule of thumb methods Affordable (available) method- easiest but worst; ignores relationship between promotional efforts and sales Percentage-of-sales method- set as forecasted or current sales; this method doesn’t support the growth of the firm in the future Competitive parity method- what is competition spendingo Objective-and-task method- best but most complicated; set objectives, and what tasks help you meet them, then look at how much it costs to complete tasks- How do marketing communications managers state their media objectives? What does this entail?o GRP: Gross Rating Points= reach x frequency- How do marketers measure the success of search engine marketing? What does each entail?o Impressions- how many times does an ad appear in front of a usero Click-through rates- online measure of reach; # times a customer clicks on ad divided by impressionso Relevance- to the consumero ROI: (Sales Rev- Ad cost)/Ad costChapter 18- What is advertising? Is word-of-mouth advertising?o Paid and from and identifiable source, Persuasive, Most visible element of IMC, Generates awareness and interest, Impersonal, Tools: broadcast, print, internet, outdooro Word-of-mouth is not advertising- What are the steps when planning an ad campaign?o 1. Identify target audience, 2. Set advertising objectives, 3. Determine advertising budget, 4. Convey the message, 5. Evaluate and select media, 6. Create advertisements, 7. Assess impact- What is entailed in identifying the target audience? What question is a marketer trying to answer in this step? Why is identifying the target audience important?o Market researcho How can the customer receive the most value?o This is who you are trying to sell to- Advertising objectives are based on what? What are the overall objectives of advertisements and what is entailed in each? How does the product life cycle influence these purposes?o Overall objective Inform- if product is new or there have been improvements Persuade- if product has been on market but still hasn’t gained much market share Remind- if product has a lot of market share- What are the various focuses of advertisements and what is entailed in each?o Focus Product-focused Institutional: issues, politics, industries, - Public service advertisingo Social marketing- What must firms consider when setting an advertising budget?o Role, Product life cycle, Nature of market and product- What is the purpose of the message in advertising? What is the unique selling proposition (USP)? What is the purpose of the USP?o Key message Problem-solving ability Unique selling proposition- differentiate product, display core benefits, want to last a long time- What types of appeals do marketers use to portray their products/services? What do they entail? How do marketers assess which type of appeal to use?o Informational- more functional, rationalo Emotional- going after emotional desires- What is entailed in selecting and evaluating media? Which element is generally the largest expense in advertising budget? What is the difference between the mass media and niche media?o Media planningo Media mixo Media Buy- biggest expense (air time) Mass media- to everybody Niche media- to a specific group- What is the advertising schedule and what is entailed in each type? o Continuous- like coke, very steadyo Flighting- high periods of advertising followed by no advertisingo Pulsing- peaks and valleys but all year round- What is
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