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MKTG 301 – EXAM 3 (FINAL EXAM)STUDY GUIDEPROMOTION/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• To persuasively communicate customer value and build customer relationships• To deliver a clear, consistent, and compelling message• “Integrated Marketing Communications”- Advertising– 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 comparisonso 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 consumerPage 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 ifyou 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 timePage 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 FootballPUBLIC 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• Shows that we are human and trying to abolish our current bad image• Slightly moderately incongruent• I <3 NYC Campaign– 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 generatea buzz• Buzz Marketing- creating hype about a


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PSU MKTG 301 - EXAM 3

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