MKTG 301 EXAM 3 FINAL EXAM STUDY GUIDE PROMOTION ADVERTISING What are promotions and promotion mix Marketing mix promotion promotion mix Promotion mix tools e g advertising PR goals of promo mix Promotion Mix Advertising To persuasively communicate customer value and build customer relationships To deliver a clear consistent and compelling message Integrated Marketing Communications Objective a specific communication task to be accomplished with a specific target audience during a specific period of time The overall advertising goal is to help build customer relationships by communicating customer value Key Characteristics Paid Non personal communication Identified sponsor Broadcasting narrowcasting Major advertising decisions Objective setting Budget decisions Media and or Media decisions Advertising evaluation Setting objectives o Informative Advertising builds primary demand knowledge Good for introducing a new product category o Persuasive Advertising build secondary demand preference Good for direct or indirect brand comparisons o Reminder ads increase frequency of purchase Good for mature products Budget decisions Affordable method setting the promotion budget at the level management thinks the company can afford Percentage of sales method setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price Competitive parity method setting the promotion budget to match competitor s outlays Objective and task method developing the promotion budget by Defining specific objectives Determining the tasks that must be performed to achieve these objectives Estimating the costs of performing these tasks Difficult to do without data Ad message decisions The Big Idea a compelling creative concept Transforming a positioning statement What do we stand for as a company and what do we want to convey to the consumer Page 1 of 12 Ad execution styles Execution Styles the approach style tone words and format used for executing an advertising message Slice of life showing typical people using a product in a normal setting Average situations typically a problem followed by a solution that usually comes from the product Ex McDonalds guy doesn t talk till he gets coffee Lifestyle Showing how a product fits a certain lifestyle Targeting a certain type of lifestyle that you want to be a part of if you se that product Ex MicUltra with Lance Armstrong Not slice of life since there is no problem Fantasy creates a fantasy around the product or its use Ex Old Spice Commercials Mood image build mood image around the product love serenity beauty etc Uses music feeling and emotions but not a lot of words Ex GE commercial where two people fall in love Musical shows someone winging about something Different from mood image because the song is about the product Ex Subway 5 foot long Personality symbol Character that represents a product Doesn t have to be a living or real thing Pillsbury Dough Boy Technical expertise Show a company expertise at making the product Emphasize their technical expertise Ex Honda commercial with rube Goldberg machine Scientific evidence present survey scientific data showing that the brand is better than another Ex Trident commercials where 4 5 of dentists endorse Trident Testimonial highly likeable believable source endorsing the product Ex Jenny Craig ad with Queen Lateefah Moderate incongruity a lot of these commercials are not very obvious in what they re trying to convey Maslow s hierarchy they all can be plotted on the hierarchy by means of what need they try to fulfill within the customer Media decisions Media vehicles Specific media within each general media type Magazines billboards commercials TV shows and their target audiences etc Scheduling How to schedule advertising Continuity advertising all the tie in the same place Where there is not a shift in demand toothpaste food etc Fighting more seasonal cyclical Only need to advertise them at certain points in the year weather dependent products like skis bikinis suntan lotion or holiday decorations and presents Pulsing always advertising the same amount but in different intervals Advertise all year long but certain factors cause them to increase decrease their advertising at certain points Ex Coke during Superbowl and holidays Reach Percentage of target market exposed to an ad during a given period of time Page 2 of 12 Ex Show it once during Sunday Night Football once during The Walking Dead and once during the Goodwife Media impact qualitative value of exposure through a given medium Frequency number of times a person in the target market is exposed to an ad Ex Playing an ad 3 times during Sunday Night Football PUBLIC RELATIONS Public Relations Building good relations with the company s various publics to obtain favorable publicity and maintain corporate image Maintain corporate image Handle unfavorable rumors stories and events Ex Penn State Lives here image Slightly moderately incongruent I 3 NYC Campaign Shows that we are human and trying to abolish our current bad Publicity comes from a third party and is free created by public relations Linking the firm customer and media Marketing is a reputation Public relations tools News using major news outlets to spread the word Speeches Steve Jobs gives speeches on behalf of Apple personal selling Most may not consider the CEOs role in generating PR but it may be the most important one to get people excited Special Events THON has special events like family carnival and THON 5k to spread would and peak interest to help the cause Written Materials Toyota s manual on its recall information after issues with certain parts Audiovisual materials using DVDs CDs or other sources of media Public Service showing that a company cares about the world NFL Using pink gloves in October Sometimes a profit generation but mainly increase in influence corporate responsibility corporate sustainability will ultimately generate a buzz Buzz Marketing creating hype about a product or idea through minimal marketing efforts EX Apple did no marketing or advertising for its newest iPhones but their buss was created by PR Corporate Websites putting info on websites for customers to read themselves Undercover Marketing The public doesn t realize that it is being marketed to via Stealth tactics Sony phone was marketed on the streets in NYC when a couple would ask people if they could take their picture using the phone Can help with personal