All Discussion Questions for MKTG4560 UCCS Dr.C
All Discussion Questions for MKTG4560 UCCS Dr.C MKTG 465 001
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MKTG 465 001
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YOUR NAME: _____Barbara Root_____ MKTG4650 Module #2 Discussion Questions Important Notes: Please clearly label your Answers. Be sure to address all parts of each question (a, b and c if applicable). Put your name in the Header of this document so that it appears on every page. To facilitate scanning, you MUST print Single Sided, and DO NOT use staples. Print hardcopy to submit in class on the due date/time listed in the Schedule. 1. What are the primary factors that have caused a growing importance for IMC? (pp. 11 – 13) Primary factors driving importance for IMC is that marketers need to grasp the value of strategically integrating the various communication functions instead of just letting them operate autonomously. An effort to coordinate communications can help avoid duplication, while taking advantage of synergy and promotion tools resulting in a more efficient and effective marketing communications program. Additionally IMC depicts and adaptation by marketers for a quickly changing environment, especially in regards to media, consumers, and technology. An evolution of micromarketing also contributes to the growth of IMC as the mass assembled by network TV and other mass media fragmenting continue to increase rapidly. The internet especially is a very useful marketing tool with every major TV network now using online platforms. To respond to media fragmentation, marketers are increasing spending on media that will more accurately target and reach specific market segments. Success of marketing communications programs will hinge upon the transition from age of mass marketing to the new era of micromarketing. Proliferation of media and fragmentation of audiences, marketers are dealing with consumers being less responsive to traditional advertising. Consumers aren’t responding the same to advertising and to being bombarded with sales messages. IMC movement is motivated by changes in the way companies market their products and services. 2. (a) What are the primary methods used for consumeroriented sales promotions? (p. 23) Methods and tools used are going to be designed for the ideal user of a product of service, which are couponing, sampling, premiums, rebates, contests, sweepstakes, and various pointofpurchase materials. These tools will encourage consumers to make fast buying and can then in turn stimulate shortterm sales. (b) Describe an example of a consumeroriented sales promotion that you found highly innovative / creative, or one that has been very effective on you or someone you know (of course, you need to come up with an example not in the textbook). An instance where I used a customeroriented sales promotion was when I was in sales at Dillard’s in the children’s wear. We had a seasonal contest in the winter hat was for every child who tried on a particular brand coat would be entered into a contest to win the coat they tried on. This was effective for return customers as they would come back if they didn’t win to get the same coat they tried on or another of their liking. It also allowed a window to introduce future events to the customer to create return shoppers. Additionally it helped to sell featured brand items. 3. Review the concept of Personal Selling (p. 27). (a) Give an example of an effective personal selling effort that persuaded you (or someone you know) to purchase a product you might not have purchased otherwise. I actually have a lot of experience with this situation as I have personally sold at Dillard’s for two years prior to a sale internship with Aflac. The best example I can recall was when Jason our suit tailor helped a customer to get the most perfect interview outfit and coordinating shirt and ties for the customer. This customer looked like he came in for maybe just a tie or a button up for an interview. 1 YOUR NAME: _____Barbara Root_____ (b) Specifically what was it about the selling effort that persuaded you most – was there a certain technique used that you can identify (e.g., the words used, the body language used, the demeanor of the seller, persistence of the seller, etc.). The way Jason cautiously analyzed the situation the customer was in he could easily identify the customer’s needs. Jason wasn’t push he just really listened, and carried himself in a relaxed and understanding fashion. So rather than just buying a shirt the customer left with very well matched shirt and tie coordinated with grey slacks, in addition to simple addons like undershirts, socks, etc. Additionally what surprised me the most was just in the checkout process Jason was able to also gain knowledge of the customer’s hobbies and refer him to the outdoor wear area where the customer bought a new outfit for the gym. I learned so much from mentoring Jason that day about personal selling and truly just listening to the customer’s needs before selling them anything. The following are simple / definitional type questions, or “baseline knowledge” questions. These require a very succinct answer that you can quickly find and repeat from the text pages listed. The purpose of these is to create a “baseline” of knowledge / frame of reference prior class. 4. (a) Briefly list describe each of the seven (7) positioni approaches? (pp. 5657 – note that repositioning is a change strategy, so skip this one). 1. Attributes and Benefits: identify salient attributes which factors that are important to the consumer and are used for making a purchasing decision. 2. Price and Quality: focus on the quality to value offered by the brand at a very competitive price. 3. Use or Application: association with a specific use or application, effective way to expand the usage of the product. 4. Product Class: rather than positioning against another brands, but to position against an entirely different product category. 5. Product User: associating with a particular group of users( DC shoes & Skateboarders) 6. Competitor: to position against another competitor; positioning against a competing brand 7. Cultural Symbols: when associated with a meaningful symbol, the brand is easier to identify and differentiate from others. (b) Describe one innovative / creative example for one of the positioning strategies outlined (as always, come up with an example that isn’t in the textbook). Specifically identify which of the seven positioning strategies was used. One good example of this is a Price and Quality example similar to the Jessica Simson example but instead it was Gianni Binni and how it is exclusively at Dillard’s only. It perceived high fashion, international Italian quality, for the right discounted Dillard’s Price. 5. What are the primary bases for market segmentation? (pp. 4853) Geographic, markets are divided into geographic units (nations, states, countries, etc.) Demographic, markets are divided in to demographic variables (age, sex, education, etc.) Psychographic, divided markets on the basis of personality, lifecycles and/or life styles. Behavioristic, divided into groups based on their usage, loyalties, or buying response to a product. Benefit, dividing into groups based on attributes desired in a product (who benefits on product). 2 YOUR NAME: _____Barbara Root_____ 6. (a) What is meant by the “commission system” of agency compensation? (p. 88) Traditional method of compensating agencies where the agency receives a specified commission (typically 15%) from the media on any advertising time or space it purchases for its client. Many advisors have gone to negotiated commission system where the commissions average from 8 to 10%. (c) What is the fixed fee method? (p. 89) The agency charges a basic monthly fee for all of its services and credits to the client any media commissions earned. Agency and client agree on the specific work to be done for the amount the agency will pay for it. (d) What is meant by the incentivebased system? (p. 90) Clients want more accountability from their agencies and tying agency compensation to performing through an incentive based system. Newest variation is in the form of Valuebased Compensation, where agencies are compensated above their basic costs, if they achieve or exceed results as measured by agreed upon metrics. 3 YOUR NAME: Barbara Root MKTG4650 Module #3 Discussion Questions Important Notes: Please clearly label your Answers. Be sure to address all parts of each question (a, b and c if applicable). Put your name in the Header of this document so that it appears on every page. To facilitate scanning, you MUST print Single Sided, and DO NOT use staples. Print hardcopy to submit in class on the due date/time listed in the Schedule. 1. Review the concept of “Psychoanalytical Research” (aka “Motivation Research” (pp. 114 116). (a) List a couple of surprising or controversial conclusions from this type of research. I though the example stating women like to bake cakes as they feel like they are giving birth to a baby and is a very valid idea however is easily defendable as men can be great bakers as well. Another example that surprised me was that a man buys a high priced item to demonstrate his ‘potency’ to his wife. This instance sounds awful but can be qualitatively proven right in a focus group. Although a focus group is designed for a small group of similar people/ target market, thus it does demonstrate a similar group will have similarities. Go figure. So perhaps what about the women who buy pricy things for their men and men who too like to bake cakes? I feel although this is a useful form of research, but could be elongated to find the dissimilar individuals too and gain in that market as well. (b) Do you think this type of research is valuable? Why or why not? Psychoanalytical theory is a very valuable tool as its insights are used to send messages to consumers and hinges on one’s emotions, known as the rhetorical idea of pathos, making this theory most convincing. Qualitative research like psychoanalytic theory is vital in understanding why a consumer buys, and ultimately the best bypass to stereotypical or socially desirable responses. Still I feel as though this theory neglects the few that are not the majority and result in loss. For instance, men bake cakes, women can spend a lot on men, men where perfume to glorify their existence too (sometimes too much), some people shower for hygienic purposes not for they have sinned etc. These markets could be lost if one were to solely use psychographic theory. Nevertheless it is a great tool, but not a concrete answer. 2. (a) What are the four attitude change strategies? (p. 123). I. Increasing/ changing the strength or belief rating of a brand on an important attribute. II. Changing a consumers’ perceptions of the importance of value of an attribute. III. Adding a new attribute to the attitude formation process IV. Changing perceptions of belief ratings for a competing brand (b) Describe a creative / innovative advertisement that effectively uses one of these strategies. Be sure to specifically name the product / brand and list which of the four strategies was being used. A great example is at Aflac they have marketing tool for consumers (employers in this case), called One Day Pay (an applications used to pay claims), where an employer’s employees can file claims faster than competitors, within one day. This strategy exemplifies (II) changing a consumers’ perceptions of the importance of value of an attribute. 3. Consumer Involvement is a core element in the Elaboration Likelihood Model (ELM) (see pages 172 – 175). 1 YOUR NAME: Barbara Root (a) What is meant by central and peripheral routes to persuasion? Central route is when the receiver is viewed as a very active, involved participant in the communication process whose ability and motivation to attend, comprehend and evaluate messages are high. A high level of cognitive response and processing, the consumer pays close attention to message content and scrutinizes the message arguments. Peripheral routes are when the receiver is viewed as lacking the motivation or ability to process information and isn’t likely to engage in detailed cognitive processing. Receiver relies on peripheral cues that may be incidental to main arguments. (b) Consumers are especially vulnerable to being influenced in Low Involvement situations where consumers don’t pay much attention to message content. “Truth Effects” are defined as repeated statements that are judged truthful because of the frequency of the message. Describe one interesting and effective example of a “truth effect” (something that isn’t proven true (and may be proven false), but is still judged truthful by many people because a marketer says it again and again). This can be a current message, or one from the past, it can be for marketing a good, service or idea (e.g. a political message or a public service announcement (PSA), etc.). One classic example of a “truth effect” message in marketing is the marketing of tobacco products. These types of products were marketed for too long as safe, with doctor testimonials, and in recent years (since the 90’s) is finally reaching public awareness through very effective and honest advertising like he Truth champagnes. Baseline Knowledge Questions: 4. What is meant by subliminal perception? (p. 119, and read IMC Perspective 41 on p. 120). Is it effective? Is it legal? Is it ethical? Why or why not? 2 YOUR NAME: Barbara Root Subliminal perception is the ability to perceive a stimulus that is lower than the level of conscious awareness. It is legal and could be argued as unethical but highly effective in today’s markets. A great example the book used it messages hidden in movies, as I have seen some movies that heavily use this subliminal messaging technique. Unethically people feel as though it is mind tricks or manipulation, but realistically I feel as though it shouldn’t be unethical, they are just another minimental reminder; however the argument can go either way. 5. (a) What is a “heuristic”? (p. 124) When consumers make their purchase decisions using more simplified decision rules known as heuristics. (b) What is the Affect Referral Rule? (p. 124) A type of heuristic in which consumers make a selection on the basis if an overall impression or summary evaluation on various alternative under consideration. 6. The Hierarchy of Effects is the best known and most used of all the response hierarchies. What are the five steps of the hierarchy of effects model (p. 158 and see Figure 53 column 2). Awareness Knowledge Liking Preference Conviction Purchase 3 YOUR NAME: Barbara Root MKTG4650 Module #4 Discussion Questions Important Notes: Please clearly label your Answers. Be sure to address all parts of each question (a, b and c if applicable). Put your name in the Header of this document so that it appears on every page. To facilitate scanning, you MUST print Single Sided, and DO NOT use staples. Print hardcopy to submit in class on the due date/time listed in the Schedule. 1. Attractiveness is a multidimensional concept. Review the three dimensions of attractiveness (pp. 189190). The three dimensions of attractiveness is similarity, familiarity, and likability. Similarity is a resemblance between the source and the receiver of the message whereas familiarity refers to knowledge of the source based on exposure. Likability is an affection for the source as a result of physical appearance, behavior, or other personal traits. (a) Describe an example of a “source” that is highly attractive for a specific target market because of one of the dimensions other than physical appearance. Specifically identify the marketer/product, the dimension of attractiveness and the target market. A great example is which breakfast cereal, specifically Lucky Charms, they target children with television commercials with characters that are children trying to catch a leprechaun. Children feel as though they have familiarity with other children as they themselves are children with wild imaginations. (b) What are “QScores”? How are they calculated? (p. 198). Qscores are research that measures familiarity and appeal among their target audience as well as other factors. The company will survey representative national panel of consumers several times a year. The survey will then be used to calculate the qscore by taking the percentage of respondents who indicate that a person/celebrity is a ‘favorite’ and then divide that number by the percentage of respondents who indicate they have only heard of that person. 2. (a) What is meant by “Source Power” and its subsets of perceived control, perceived concern and perceived scrutiny? (p. 199200). Source power is a power in which a person can administer awards and punishments to the receiver. The source must be perceived as being able to administer positive or negative sanctions to the receiver which is known as perceived control. Additionally perceived concern is known as the receiver thinking the source cares about whether or not the receiver conforms. Finally Perceived scrutiny is the receiver’s estimate of the source’s ability to observe conformity is also important. (b) Describe one example of how source power was used in a promotions mix that you have seen (or by someone you know). Note that personal selling, internet/interactive, and direct marketing are where source power is commonly used (i.e., it’s very rare to see “source power” used in an advertisement). Be specific in your example. A really great instance of Source Power is when I watch other benefit consultants at my internship at Aflac create life insurance plans for a client. They go over the situations they are protected against or excluded from in their policy. This demonstrates positive or negative 1 YOUR NAME: Barbara Root sanctions to the receiver based on coverage and exclusions. At Aflac we don’t provide just plans we provide solutions for our policy owners, so the receiver’s definitely know the source cares. When making a policy we obtain all federal and legal identification information from the client and if a client misrepresents themselves, we will know, meaning the receiver can estimate the source’s ability to observe their conformity to the insurance contract in every policy is guaranteed. 3. (a) Do you think fear appeals are effective? Why or why not? (p. 206 – 210). I believe fear appeals are effective if predicted well so that over emphasized fear doesn’t occur and detour from the actual objective to remove the threat. This can be proven based on the graph of relations ships between fear levels and message acceptance. The graph shows that a low level of fear can have facilitating effects, meaning it attracts attention an interest in the message and may motivate the receiver to act to resolve the threat. Therefore increasing the level of fear in a messaging from low to moderate can result in increased persuasion. (b) Describe a specific example of either an effective or an ineffective fear appeal that you have seen (from T.V., Radio, Print, etc.). One instance I recall is the antismoking commercial on t.v. where the lady goes through her whole way of how to get ready for the day with all these health aliments. This commercial is very effective on the youth as it shows real physical damages in a relative time span, especially for females as there has been a rise of tobacco marketing to women. It truly persuaded me to never want to smoke. Baseline Knowledge Questions: 4. (a) What is meant by Primacy Effects and Recency Effects? (p. 201). Presenting the strongest arguments at the beginning of that message assumes a Primacy Effect, as information presented first is most effective. Putting the strong points at the end assumes a Recency effect as the last arguments presented are most persuasive. (b) Give an example of how you can use primacy or recency in your job search (either in an interview or your resume). By using recency in an ‘elevator’ pitch at an interview, it would be highly effective presenting the most important attributes of yourself last in your speech to make a lasting impression on the hiring personnel. 5. (a) What is meant by conclusion drawing and refutation appeal? (p. 202 203). Specific type of twosided message which the communicator present both side of an issue and then refutes the opposing viewpoint. Reputational appeals tend to ‘protect’ the target audience against a competitor’s counterclaims, as they are more effective than onesided messages making consumers resistant to an opposing message. (b) When is conclusion drawing an appropriate strategy? Highly educated people tend prefer to draw their own conclusions and may be annoyed at an attempt to explain common knowledge or to draw inference for them, however stating the 2 YOUR NAME: Barbara Root conclusion may be necessary for a less educated person who not be capable for inferring on their own. When to draw a conclusion as a marketer also requires understanding the audience’s level on involvement. Additionally when to draw a conclusion for the audience also depends on the complexity of the topic. Even highly educated audiences may need assistance if its knowledge level in a particular area is low. The marketer is going to want to trigger immediate action, so the message should draw a definite conclusion. (c) When is a refutation appeal a good strategy? Reputational messages may be useful when marketers want to build attitudes that resist change and must defend against attacks or criticism of their products or the company. Market leaders, who are often the target of comparative messages, may find that acknowledge competitors’ claims and then refuting them can help build resistant attitudes and customer loyalty. 6. The Communications Effects Pyramid (aka the Hierarchy of Effects Model) is presented again in this Module (p. 228, Figure 72). Which IMC element(s) (i.e., advertising, sales promotions, internet/interactive, direct marketing, public relations, and personal selling) is most appropriate for each Hierarchy Effects stage (i.e., awareness, knowledge, liking, preference, conviction, purchase)? Simply link them, such as Awareness > Advertising, etc. Repurchase/ Regular Use: Direct Marketing Trial: Direct Marketing, Internet/Interactive Preference: Personal Selling, Direct Marketing Liking: Public Relations, Internet/Interactive Knowledge/Comprehension: Direct Marketing, Personal Selling Awareness: Advertising, Sales Promotions 3 YOUR NAME: Barbara Root MKTG4650 Module #5 Discussion Questions Important Notes: Please clearly label your Answers. Be sure to address all parts of each question (a, b and c if applicable). Put your name in the Header of this document so that it appears on every page. To facilitate scanning, you MUST print Single Sided, and DO NOT use staples. Print hardcopy to submit in class on the due date/time listed in the Schedule. 1. (a) Review the concept of a “Major Selling Idea” (p. 288 – 293) and the four bestknown approaches for achieving a major selling idea. The Major Selling Idea is a valuable part of the creative strategy in determining the central theme that will be used in an ad campaign. It should be a claim with the broadest and most meaningful message that appeals to your target market. The four bestknow approaches for achieving the major selling idea are as follows: 1. Using a unique selling proposition: a proposition to the customer that competition can’t offer or doesn’t not offer; has to be strong enough to pull a new customer to your brand. 2. Creating brand image: creation of a unique attribute or benefit to use as a major selling idea done through image advertising that uses a creative strategy to sell products based on the development of a strong, memorable idea identity for the brand. 3. Finding the Inherent drama: find the specific characteristic of the product that makes the consumer purchase it; the foundation of the consumer benefit with an emphasis on the dramatic elements in expressing those benefits. 4. Positioning : the idea that advertising is used to establish or “position” the product or service in a particular place in the consumer’s mind; done for companies and bands (b) Describe one example of a major selling idea of an ad campaign that you thought was very effective. Specifically identify the brand / campaign and which of the four approaches was being used in the campaign. An example that comes to mind is the commercial of the Aflac duck covering all the holes in a sinking boat. This major selling idea demonstrates finding the inherent drama, associated with health insurance as the ad depicts that the duck has you covered when you boat (business) I trying to sink on you. I also feel that Aflac uses this duck as creating brand image and resulted in early 2000’s with going from 13% brand awareness to 96% brand awareness today. 2. (a) What is “Transformational Advertising” (p. 305306). Formally defined as a as which associate the experience of using (consuming) the advertised brand with a unique set of psychological characteristics which wouldn’t typically be associated with the brand experience to the same degree without exposure to the advertisement. This type of advertising is used to create feelings, images, meanings, and beliefs about the products or service that are activated when consuming it, thus transforming their interpretation of the usage experience. They help differentiate a product/service by making the consumption experience more enjoyable by suggesting the type of experience consumers might have when they consume the product or service. Puto and Wells, indicate that there are two main characteristics of transformational 1. Make the experience of using the product richer, warmer, more exciting, and/or more enjoyable than that obtained solely from an objective description of the advertised brand. 1 YOUR NAME: Barbara Root 2. Connect the experience of the advertisement so tightly with the experience of using the brand that customers cannot remember the brand without recalling the experience generated from the advertisement. (b) Describe one example (other than what is in the textbook) of an ad that you (or someone you know) have seen that appears to be using transformational advertising. Specifically describe how the ad enhanced the use of the product. The 5gum commercials are great examples of this form of advertising. They use in one ad a person simulating the sensation of all these little beads bouncing from sound vibrations, and for me as a consumer I felt the sensation, as they say, right with the transformation in the ad. 3. (a) What is an “Emotional Bonding” technique developed by McCann Erickson? (p. 307). Technique that evaluated how consumers feel about brands and the nature of any emotional rapport they have with a brand compared to the idea emotional state they associate with the product category. The basic type of relationship indicates how consumers think about brands in respect to product benefits. Then consumers assign personality to a brand typically on the basis of an assessment of overt and covert cues found in advertising. Finally the consumers develop emotional bonds with certain brands, resulting in positive psychological movement toward them. The marketer’s goal is to develop the greatest emotional linkage between the brand and the customer. (b) Describe one example (other than what is in the textbook) of an ad campaign that you have seen that appears to have strived for and been successful in attaining an emotional attachment between a brand and customers. Be specific. The 2014 Chevy Commercial with “Maddie” the golden retriever that follows this young girl through her life from current time to childhood, and at the end it shows when she first gets the puppy, how the pup is a , best friend for life’s journey, similarly to the Chevy they brought the puppy home in. Further there is another Chevy ad with a young boy and his lost dog that shared so many precious memories with him and his father in their Silverado pickup. Baseline Knowledge Questions: 4. What are the steps in Wallas’s creativity process and how is it different than Young’s steps on the creative process? (p. 276) Walla’s model is simplified essentially in that it has four steps instead of five, which are: 1. Preparation: Gathering backgrounds information needed to solve the problem through research and study. 2. Incubation: Getting away and letting ideas develop. 3. Illumination: Seeing the solution 4. Verification: Refining and polishing the idea and seeing if it’s an appropriate solution Whereas Young’s Model is five steps and actually shares the incubation and illumination steps, with the added following steps in order: 1. Immersion: Gather raw material and information through background research and immersing yourself in the problem. 2. Digestion: Taking the information and working it over, and wrapping your mind around it. 3. Incubation: Putting the problems out of your conscious mind and turning the information over to the subconscious to do the work, 2 YOUR NAME: Barbara Root 4. Illumination: Birth of an idea 5. Reality/Verification: Study the idea to see if it still looks good or solves the problem, this will shape the idea to a practical usefulness, 5. (a) What is the focus of informational/rational appeals? (p. 301). The customer’s practical, functional, or utilitarian need for the product or service and emphasize features of a product or service and/or benefits or reasons for owning or using a particular brand. These types of messages emphasize facts, learning and the logic of persuasion. (b) According to Weilbacher, what are the five most common types of informational/rational appeals? (301303). 1. Featured Appeal: focus on the dominant traits of the product or service; informative and present the customer with favorable attitudes that will be used in a rational purchasing decision. 2. Competitive Advantage Appeal: make a direct or indirect comparison to another brand(s) and usually claims superiority on one or more attributes. 3. Favorable Price Appeal: makes price offer the dominant point of the message, often done by retailers to announce sales, special offers or everyday low prices 4. News Appeals: some type of news or announcement about the product, service, or company dominates the ad. Note this is not favorable and strictly about price. 5. Product/Service Popularity Appeal: stress popularity of product or service by pointing out the number consumers who use the brand, switched, or experts who recommend it. 6. What are the seven basic guidelines for evaluating creative output? (p. 332333) 1. Is the creative approach consistent with the brand’s marketing and advertising objectives? 2. Is the creative approach consistent with the creative strategy ad objectives? Does it communicate what is its intended too? 3. Is the creative approach appropriate for the target audience? 4. Does the creative approach communicate a clean and convincing message to the customer? 5. Does the creative execution keep from overwhelming the message? 6. Is the creative approach appropriate for the media environment in which it is likely to be seen? 7. Is the ad truthful and tasteful? 3 YOUR NAME: Barbara Root MKTG4650 Module #7 Discussion Questions Important Notes: Please clearly label your Answers. Be sure to address all parts of each question (a, b and c if applicable). Put your name in the Header of this document so that it appears on every page. To facilitate scanning, you MUST print Single Sided, and DO NOT use staples. Print hardcopy to submit in class on the due date/time listed in the Schedule. 1. What main factors have contributed to the growth of direct marketing in recent years? (p. 482 483). Consumer Credit Cards: More than a billion different credit cards from banks, retailers and oil companies in circulation and makes it feasible for consumers to purchase both lowand high ticketed items through directresponse channels and assures sellers that they will be paid. Changing Structure of American Society and Market: American’s have the “moneyrich” and “time poor” mentality and leads marketers to believe based on dual income there is more income. Although, the increase in popularity of physical fitness, doit yourself crafts and repairs, and home entertainment has reduced the time available for shopping and has increased the attractiveness of direct purchases. Technological Advances: swift technological advancements of electronic media and the Internet has made is easier for consumers to shop and for marketers to be successful in reaching the desired target markets. Misc. Factors: contribution of various factors that contribute to the effectiveness of direct marketing including changing values and lifestyles, more sophisticated marketing techniques, and the industry’s improved image. 2. Direct marketing usually involves some type of Customer Relationship Management (CRM). CRM strives to take traditional database marketing to the next level by developing a “onetoone” relationship with customers (aka “onetoone marketing”). Describe an example of how a marketer has used a database (with your personal information) to develop a relationship with you (or someone you know) to create repeat purchases, positive wordofmouth, and/or general loyalty to the marketer’s goods, services, or ideas. Alternatively, if you have experience in being trained to develop “onetoone” relationships with customers at your current or previous employment, please describe that example instead. Be specific in your example. Every day I check my Aflac email as I am an intern there. We have a CRM program to manage our leads on accounts. What I have done in the past is I will either do a bunch of cold calls or inperson business card collection to reach the customer, which are typically business owners. I then take all their information and data enter it into the CRM program where is asks questions about their business like employee count and account notes describing exactly when I initially reached them to the very end where I can use the program to mark them as dead leads. I can also put follow up with customer reminders in the program that will actually email me and tell me you have a list of follow ups in order to maintain the customer relationships on a oneonone basis. It is a fascinating program and wouldn’t mind showing it to the class for educational purposes. 3. Direct Marketing, Database Marketing and CRM can be used to identify the most profitable customer or those most likely to buy and less profitable customers or those less likely to buy. Consequently, databases 1 YOUR NAME: Barbara Root can and are used for “discrimination.” That is, some businesses give certain customers higher levels of service and/or better deals and even lower prices on certain products. (a) Describe an example of how a marketer has used a database with personal information (CRM or otherwise) to provide better service, more perks, a better deal or a lower price for some customers while other customers did not get this preferential treatment. Best example think of is the Safeway coupon/account. If you sign up for their reward account with your personal information it will track what you buy and apply coupons to the items they regularly purchase. This CRM method results in less money spent by loyal customers, by giving perks to loyal return customers whereas those who do not have a Safeway card does not get club prices or the coupons tied to their account applied to their purchases. (b) Were the other customer who were not getting the better service/deals/prices aware that others were getting preferential treatment? If yes, what do you think they thought of this practice? If no, how do you think they would feel or respond if they knew? Some customers may be aware of their program but aren’t living or working close enough to Safeway to make reasonable use of the account. Meaning the savings with club prices are too minimal and they do not shop there frequent enough to track regular purchases. However the customers who aren’t aware and are not getting the preferential treatment may care and feel disadvantaged, thus why all cashiers will hound you about getting and using your rewards card to rid the store of liability. Baseline Knowledge Questions: 4. Direct Mail (p. 485) and Telemarketing (p. 491) often give Direct Marketing a bad image. (a) Describe an example of either a Direct Mail or Telemarketing effort that reflected poorly on the marketer (gave a bad image). An example I come across cold calling, which the book also brought up is that telemarketing has room for potential annoyance, fraud and deception. So I feel as though the listener on the phone, whether a consumer (B2C) or a business owner (B2B), cannot distinguish between the fraud and deception who is legit and who is fake. Also there is no room for situation awareness, as in a solicitor can call and interrupt another activity and result in an annoyance, as the call does not know the current status of the person they are calling. (b) Conversely, describe an example of a either a Direct Mail or Telemarketing effort that was done well, was effective, and/or reflected positively on the marketer. Like I mentioned I do a lot of work with cold calling and commonly in our target market at Aflac of supplementing protection to those who are frequently hurt, I come across many construction, flooring, and many other industrial businesses that do not have a store front which I couldn’t approach, and if I could they wouldn’t be there, they would be on the job sit. So my point is cold calls and telemarketing is advantageous in that if that is the specifically effective channel of communication it will work, especially on a two step qualification process where follow ups are frequent and the whole idea of annoyance will not occur as they will be expecting your call. 5. What are the advantages of direct marketing? (pp. 492 – 493) Selective research: advertiser can reach a large number of people and reduces or eliminates waste coverage. Segment capabilities: marketers can rent lists, and these lists may allow very specific segmentation on the 2 YOUR NAME: Barbara Root basis of geographic area, occupation, demographics and job title. Frequency: depends on the medium used, it may be possible to build frequency levels. The program vehicles used for directresponse TV advertising are usually the most inexpensive as the marketer gets more repeats for their buck. Testing: test the effectiveness of the overall program as well as specific elements. Timing: very timely; can put together quickly and distributed to target market Personalization: no other advertising medium can personalize the message as well as direct media Costs: overall cost maybe very high on an absolute ad relative basis, its ability to specifically target the audience and eliminate waste coverage reduces the actual overall cost; low cost of media, each sale generated is very inexpensive. Measures of Effectiveness: can measure the effectiveness of its efforts as well as direct response. 6. What are the disadvantages of direct marketing? (pp. 493 494) Image Factors: telemarketing is found to be irritating to many consumer, as is “spam” or internet junk mail. Other factors have also created image problems for the industry, consumers cannot distinguish. Accuracy: effectiveness of direct marketing is dependent on the accuracy of the lists provided. People move, change occupations, etc. If lists aren’t current, selectivity will decrease. Content Support: Directmail and online services, are less likely to create a desirable ‘mood’. Rising Costs: postal rates increase, directmail profits are immediately and directly impacted Do Not Contact lists: list that indicates consumers cannot be contacted; under consideration by the FTC 3 YOUR NAME: Barbara Root CFB Consumer oriented MKTG4650 Module #9 Discussion Questions Important Notes: Please clearly label your Answers. Be sure to address all parts of each question (a, b and c if applicable). Put your name in the Header of this document so that it appears on every page. To facilitate scanning, you MUST print Single Sided, and DO NOT use staples. Print hardcopy to submit in class on the due date/time listed in the Schedule. 1. Review the concept of CFB versus nonCFB Promotions (p. 537538). Describe one effective / innovative / creative example of how you (or someone you know) have been influenced by a CFB promotion. Be specific in your answer (i.e., name the company/brand and specific offer that was made, why you think it was innovative / creative, and how it specifically built the brand rather than simply generated an immediate increase in sales). Consumer Franchisebuilding (CFB) promotions are sales promotions that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity. The best example I can think of is the King Soopers rewards card. If you swipe the rewards card at the checkout you get a certain number of point based on how much you buy in addition to reduced prices that the nonreward card shoppers do not get.. The points collect and once you reach a certain amount to receive additional $0.10 of each gallon of gas, or you choose to save the grocery points till you reach a max of $1 off each gallon of gas. What made this unique is the timing of the promotion. They started really pushing it when gas was real expensive. This CFB promotions specifically build the brand in the fact that King Soopers is all about saving money on groceries and the reward card allows discounts on groceries while gaining points or gas. So patrons are likely to choose the reward card and then in turn be loyal to the Kingsoopers/ City Market/ Kroger brand, rather than just generating a quick buck. 2. Sampling is a popular and growing ConsumerOriented Sales Promotions tool (pp. 541 542). Describe an effective and/or innovative / unexpected / creative example of sampling that has influenced you or someone you know. Be specific in your answer (i.e., name the company/brand and specific offer that was made and why you think it was innovative / creative). I love the way some consumable beauty products are sampled. For instance on my garnier fructis shampoo that is the volume formula, once there was an attached hair product for blow drying that give more added volume if you out the product in your wet hair. First of all it was actually a big tube, not a trial size which surprised me as one of the criteria for effective sampling is low unit value to reduce costs. This can be explained by the fact they only had it on that formula and was only on maybe 6 of the 12 bottles on the shelf. Definitely made me want to buy more of their hair care products as I receive more value for the same price I am use to paying. 3. Premiums are a popular and growing ConsumerOriented Sales Promotions tool (pp. 551 554). Describe an effective and/or innovative / creative example of a premium offer (either type) that influenced you (or someone you know) to purchase a product. Be specific in your answer (i.e., name the company/brand and specific offer that was made and why you think it was innovative / creative). Who doesn’t love something free when they buy something to fill a need they has prior to know 1 YOUR NAME: Barbara Root there was a ‘gift’? My favorite premium is when you buy up to $27(usually 1 cosmetic at) Dillard’s/Macy’s you get a free gift. These premiums are awesome as I may just get one facial moisturizer and I will get for free, 57 extra cosmetics, like 1 lipstick ($20), and various other trial size samples, which is also a more specific way to sample since I was able to try a product and then go back and invest the $27 on it after I know I like it. Baseline Knowledge Questions: 4. What are the three “important aspects” of Sales Promotions? (p. 529) I. Inducement that provides an extra incentive to buy. II. An acceleration tool, designed to speed up the selling process and maximize sales volume. III. Sales promotions activities can be targeted to different parties in the marketing channel. 5. (a) What are "slotting allowances or fees"? Special allowance for agreeing to handle a new product. These fee retailers charge for providing a slot or position to accommodate the new product. (b) Why might they be unjust? (p. 566) Slotting fees can range from a few hundred dollars per store to 50k or more for an entire retail chain. Manufacturers that want to get their products on the shelves nationally can face several Million dollars in slotting fees. Many marketers believe slotting allowances are a form of black mail, or bribery and say some 70% of these fees go directly to retailer’s bottom lines. 6. What is meant by the “sales promotions trap” (p. 573) Can occur when several competitors use promotions extensively. Often affirm begins using sales promotions to differentiate its products or service from the competition. When all the competitors are using sales promotions, this not only lowers profit margins for each firm but also makes it difficult for any one firm to hop off the promotional bandwagon. 2 YOUR NAME: Barbara Root Module #10 Discussion Questions 1. Compare and contrast the “Traditional Role” of Public Relations with the “New Role” of PR (pp. 579 580). Viewing these perspectives as a continuum, what is your opinion of how the PR function should operate within a firm? (Give a detailed response AND provide rationale for your opinion) Traditional PR is the management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance. This role of PR has three stages, which are determination and evaluation of public attitudes, identification of policies and procedures of an organization with public interest, and the development and execution of a communications program designed to bring about public understanding and acceptance. In the New Role of PR it take a much broader and marketing oriented perspective, designed to promote the organization as well as its products or services. Viewed on one end of the continuum is the use of PR from a traditional stance, where PR is viewed as a nonmarketing function whose primary responsibility is to maintain mutually beneficial relationships between the organization and its publics. On the other side of the continuum PR is considered primarily a marketing communications function. All noncustomer relationships are perceived as necessary on in marketing context. My opinion is to use both, as losing sight of the objectives and functions of PR in an attempt to achieve marketing goals may be detrimental in the long run. Contributing in its own way but also in a way consistent with marketing goals. 2. Review the concept of “Marketing Public Relations” and the eight objectives of marketing may be aided by MPR (p. 580 581). Describe one example of an effective, innovative and/or creative PR effort that clearly accomplished at least one of these eight objectives. Specifically identify the objective(s) being achieved by your example. MPR is marketing public relations which are marketing objectives that may be aided by public relations activities like raising awareness, informing/educating, gaining understanding etc. A great example is the Tide Pod ads where they inform parents to keep the detergent pods up out of children’s reach. This I believe is defending at risk and giving a reason to buy as they care about your children’s safety. Also could be influencing the influentials as the Pods have been heavily scrutinized after a court case was filed after a number of children became ill after thinking the soap pod was a colorful piece of candy. 3. Review the advantages and disadvantages of publicity (p. 593 594). One perspective is that all publicity is good publicity. : +: credibility, news value, significant wordormouth communications, and perception for being endorsed by the media. : lack of control, timing, and accuracy. (a) Describe one example of very positive publicity that helped a company is some substantial way (e.g., more loyal customers, higher sales, etc). 1 YOUR NAME: Barbara Root On local news Fox21 they do PR ads for new restaurants ever Tuesday in a segment tasty Tuesday and I have gone to so many great restaurants and eateries from this. This is a great example of demonstrating credibility, as the news recommended it. This made me and many viewers very loyal to certain restaurants. (b) Describe one example of very negative publicity that hurt a company in some substantial way (e.g., less loyal customers, customer defections, lower sales, etc.). Be specific in how the publicity helped and hurt. When Chipotle had an E.coli outbreak and the news covered it extensively as Chipotle is allegedly a successful, healthier, and sustainable company, and controversy over these topics makes for great news. Successful, healthier, and sustainable company, and controversy over these topics makes for great news. This hurt Chipotle as it went super viral online and very malicious announcements and allegations wer
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