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MKT 423_Test study guide

by: Allie S

MKT 423_Test study guide MKT 4230

Marketplace > Clemson University > Marketing > MKT 4230 > MKT 423_Test study guide
Allie S
GPA 3.46

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About this Document

Test over ch. 10, 18, 20, 21
Promotional Strategy
Dr. Knowles
Study Guide
MKT, Marketing, Clemson University, Clemson, MarketingClemson
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This 24 page Study Guide was uploaded by Allie S on Monday April 18, 2016. The Study Guide belongs to MKT 4230 at Clemson University taught by Dr. Knowles in Spring 2016. Since its upload, it has received 45 views. For similar materials see Promotional Strategy in Marketing at Clemson University.


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Date Created: 04/18/16
▯ Ch. 10 ▯ ▯ Media Plan  Guides media selection o Aims to find a combination of media to communicate a message:  In the most effective manner  To the largest number of potential customers  At the lowest cost  Media planning = series of decisions; delivering message to prospective customers  Media objective = goals to be attained by media strategy o Is the WHAT, not the How to do it… ▯ Media objective = goals to be attained by media strategy ▯ Is the WHAT, not the How to do it… ▯  Tactical Social media objectives o Connect with existing customers/new prospective o Listen and engage  Strategic social media objectives o Grow network  Strategic business goals ▯ ▯ Media Terms and Concepts  Plans of action ▯ ▯ Reach = number of people, individuals, that are exposed to your message ▯ Frequency = the number of times each receiver sees your ad Reach vs. Frequency o Do you want a batch of mail to reach a small number of people, but multiple times – increasing the impact of your message o Or do you want a single message to reach mass audiences? ▯ ▯ Coverage = potential audience that might receive the message through a vehicle  Full Coverage – every person in target segment is reached and NO OTHER outside people (best case scenario)  Partial Coverage – not all of the target is reached, but there is no waste  Coverage exceeding market – Target market AND outsiders reached… waste ▯ ▯ ▯ ▯ ▯ Media Plan  Guides media selection ▯ ▯ Problems with media Strategy  Insufficient information  Sweeps periods: Used for measuring TV audiences and setting advertising rates o Inconsistent terminologies o Time pressures o Difficulty measuring effectiveness ▯ ▯ ▯ Criteria considered in the development of Media Plans ▯ ▯ ▯ Developing a media plan ▯ ▯ Target Market Identification  Primary research and/or secondary sources help determine which specific groups to target  Index number: good indicator of the potential of a market (Percentage of users in a demographic) X100 (Percentage of population in the same segment) x>100 – use of the product is “higher” than normal consumption x<100 – use of the product is “less” in one segment over another than normal consumption  Using indexes to determine Where to promote o Surveying of buying power index  Charts potential of a particular metro area/county/city relative to the US as a whole  Gives insight into relative value of a market o Brand Development Index  BDI  Factors the rate of product usage by geo area into the decision process o Category Development Index  CDI  Provides info on the potential for development of the total product category (not specific) Using BDI and CDI indexes ▯ Eyes ▯ ▯ We are visual creatures ▯ ▯ E.H. Hess – Physiologist – gathered info about HOW to test good/bad advertisements  First to research eye tracking o Because he was the first to make a connection between stimulation and visceral response ▯  Pupils dilated when looking at a book of beautiful animal pictures o Visceral response to a visual stimulation o When we look at something that sparks our interest, our eyes dilate  In a study, it was found that men were attracted to large pupils o Women respond more to children, handsome men o Men respond to women, landscapes o Given 2 of the same pictures of a woman, but one had dilated pupils  Men liked big pupils  Women did not respond as well  Liked medium, also blue eyes – see pupils in a blue eye better  Encyclopedia Study o Two images on the cover of the same encyclopedia:  Boys in a pool  People’s pupils dilated more  Cooler picture  Family around a telescope  But preferred this ▯  There is software to track eye movement o Tobii o Movement maps o Heat maps ▯ Ch. 18 Measuring effectiveness Reasons to measure effectiveR neassons to not measure Lack of time Determine if objectives are achieved Objections of creative department Increased advertising efficiency Disagreement on what to test Evaluate alternative strategies Research problems Avoid costly mistakes Costs involved What to Test:  Source factors  Message variables  Media strategies  Vehicle option source effect: Differential impact of an advertising exposure on the same audience depending on the media option used  Budgeting decisions ▯ ▯ Where to Test:  Laboratory tests: People are brought to a particular location where they are shown ads and/or commercials o Location  Testing bias: People may scrutinize the ads much more closely than they would at home o Know that is their objective – try harder to pay attention because the location/pressure  Field tests: Tests under natural viewing situations o Carried out with the realism of noise, distractions, and the comforts of home o More indicative of natural habits How to Test: • Positioning Advertising Copy Testing (PACT): Improves the research used in preparing and testing ads by: • Providing a better creative product for clients • Controlling the cost of TV commercial Testing Process  Concept generation and testing  Rough art, copy, and commercial testing o Types:  Comprehension and reaction tests: Assess the reaction an ad generates to ensure that it is not offensive  Test on a group  Consumer juries: Use consumers representative of the target market to evaluate the probable success of an ad  Pretesting of finished ads  Market testing of ads ▯ ▯ Weaknesses/Limitations  of Focus Group Research  Consumer may become a self-appointed expert  Number of ads that can be evaluated is limited  Halo effect: Overall rating is influenced by the judgment on one or few characteristics of the ad  Preferences for types of advertising may overshadow objectivity  ▯ ▯ Gallup & Robinson Impact System ▯ ▯ ▯ Portfolio Test  Expose a group of respondents to a portfolio consisting of control and test ads  Limitations  Factors other than advertising creativity and/or presentation may affect recall  Ability to recognize the ad when shown may be a better measure than recall  ▯ Readability Tests  Communications efficiency of the copy in a print ad is tested without reader interviews  Flesch formula: Assesses readability of a copy by determining the average number of syllables per 100 words  Limitations  Copy may become too mechanical  Direct input from receiver is not available ▯ ▯ New Print Pretesting Measures  PreTesting Groups’ People Reader methodology o Provides mocked-up magazines to consumers and measures their responsiveness to each ad o Uses hidden cameras to record behavior  Link o Uses a comprehensive set of diagnostic questions to evoke viewer reactions to the ads Pretesting Finished Broadcast Ads Theatre testing-Participants On-air test-Commercials are are invited to view pilots of inserted into actual TV proposed TV programs programs in certain markets. • Advantages • Recall: Number of persons • Establish norms indicate able to recall the ad and/or how an add will fare its message against competition • Brand preference measure is supported by actual sales results • Disadvantages • Artificial environment • Contrived measure of brand preference, change is recognizable • Group effect may influence a viewer’s reaction Physiological Measures • Indicate receiver’s involuntary response to the ad • Pupil dilation • Pupillometrics: Measures dilation and constriction of the pupils in response to stimuli • Galvanic skin response (GSR) • Electrodermal response (EDR): Measures the skin’s resistance or conductance to a small amount of current • Brain Waves • Electroencephalographic (EEG): Determine electrical frequencies in brain • Alpha activity: Degree of brain activation • Hemispheric lateralization: Distinguishes between alpha activity in the left and right sides of the brain • Brain scan imaging - Examine physiological reactions to ads and brands Posttests of Print Ads Posttests of Broadcast Commercials Issues with Current Research methods • Accomplishing some factors important to good copy testing require more effort • Most current methods do little more than provide recall scores • Lab measures - Artificial and vulnerable to testing effects • Field measures - Result in a loss of control Essentials of effective Testing • Establish communications objectives • Use a consumer response model • Use both pretests and posttests • Use multiple measures • Understand and implement proper research • Solid research should meet these criteria. Research methodologies that meet these criteria will be the most effective for providing insight into the performance of advertising. Ch. 20 ▯ Regulation in Advertising ▯ ▯ ▯ ▯ What are people worried about?  Subliminal advertising  Advertising to children  Stereotypes in advertising  Advertising in controversial products – alcohol and tobacco  Drug ad  Political ad  Deceptive advertising ▯ ▯ Subliminal Advertising  Putting thoughts into consumer’s heads o Manipulation Advertising to kids  Have a difficult time truly deciphering ads – don’t know the difference between reality and fantasy o Targeting susceptible minds ▯ ▯ Stereotypes  Fueling stereotypes o Sets back certain groups – offensive ▯ ▯ Regulation and control of ad  Regulatory concerns o Nature and content of the ad o Potential of the ad to offend/exploit/mislead consumers ▯ ▯ Ad Controls  Self regulation – legal department, network censors  State Regulation – State Attorneys general  Federal Regulation – FTC, FCC, FDA, US Postal ▯ ▯ Self-regulation  Voluntary internal regulation  Protective measures o Guidelines, standards, policies o Attorneys – corporate o True ad claims o Contracts o Review board o Specialized lawyers ▯  Self-Regulation by Trade Associations o Affected products and services  Similar products ban together to represent each other  Liquor and alcohol  Tobacco  NRA  Self-Regulation by Businesses o Better Business Bureau - BBB  Promotes fair advertising and selling practices across industries at the local level o Council of Better Business Bureaus  Provide effective control over advertising practices at the national level ▯  National Advertising Review Council o Mission - To sustain high standards of truth and accuracy in national advertising o Advertising Accountability Program - Regulates online behavioral advertising (OBA) across the Internet ▯  National Advertising Review Board o Appealed for additional review by advertisers who disagree with NAD’s findings o Composed of advertising professionals and prominent public interest members ▯ ▯ ▯ Self Regulation by Media  Newspapers and Magazines o Have requirements and restrictions depending on the size and nature of the publication o Some test the products advertised and offer refunds if they are later found to be defective  Television and Radio o Major TV networks have incorporated the NAB codes into their standards o All commercials intended for airing on a network or an affiliate has to be reviewed o Network standards change constantly ▯ ▯ ▯ Major Divisions of the FTC  Bureau of Competition o Seeks to prevent business practices that restrain competition o Enforces antitrust laws  Bureau of Economics o Provides economic analysis and support to antitrust and consumer protection investigations o Analyzes the impact of government regulation on competition and consumers  Bureau of Consumer Protection o Protects consumers against unfair, deceptive, or fraudulent practices o Investigates and litigates practices alleged to be unfair to consumers ▯ ▯ Deceptive Advertising  Deceptive Advertising – “drawing conclusions” trickery o Misleading consumer to buy product that will not meet their needs  Omissions of importance???  If advertisers can substantiate their claims?? – need evidence before they run their ad ▯  Puffery – the ultimate, the very best… o Allowed in advertising o Hyperbole ▯ ▯ ▯ ▯ ▯ ▯ ▯ Ch. 21 ▯ ▯ Advertising and Promotion Ethics ▯  Ethics: Moral principles and values that govern the actions and decisions of an individual or group  Marketing or promotion action may be legal but not ethical  Marketers must base their decisions on ethical considerations ▯ ▯ Untruthful or deceptive advertising  Consumers rely on word of mouth  Difficult to prove deception  Projects only positive points  Exists more at the local level  Sources of distaste o Ads of personal products or services o Ads of products and brands that consumers do not use or would not buy  Type of appeal or the manner of presentation o Sexual appeal in ads  Offensive and tends to demean women or men  Promotes a decline of moral and social values o Shock advertising: Using nudity, sexual suggestiveness, or other startling images to get consumers’ attention ▯ ▯ Advertising and children  Popular medium - TV and the Internet  Critics argue that children: o Lack the knowledge and skills to evaluate advertising claims o Cannot differentiate between programs and commercials  Marketers’ arguments o Children must deal with advertising  Consumer socialization process: Acquiring skills needed to function in the marketplace  Existing restrictions are adequate  Greater knowledge of the marketplace required for teens  Areas of potential concern o Cable television programming o Internet ads o Increase in ads encouraging children to call 900 numbers o Increase in toy-based programs o Marketing of violent entertainment ▯ ▯ Guidelines for advertising (directed toward children)  Level of knowledge, sophistication, and maturity of the audience should be taken into account  Should refrain from unfair exploitation of the imaginative quality of children  Should not advertise products and content inappropriate for children directly to them  Information should be communicated in an accurate manner and in a language understandable to children  Advertisements should portray positive and beneficial social behavior  Minority groups should be incorporated in advertisements ▯ ▯ Social and cultural consequences  Advertising influences and transmits social values  Advertising agencies should consider the impact of the advertising messages they create Advertising encourages Materialism o Materialism: Preoccupation with material things rather than intellectual or spiritual concerns o Advertisements that contribute to materialism:  Seek to create needs  Surround consumers with images of the good life  Suggest it leads to contentment and happiness Arguments favoring Materialism o Protestant ethic: Stresses on hard work, individual effort, and initiative  Views the accumulation of material possessions as evidence of success o Does not rule out interest in intellectual, spiritual, or cultural values o Advertisements only reflect the values of society Advertising makes people buy things the don't need o Critics’ argument - Advertising should only provide information useful in making purchase decisions o Defenders’ argument  Advertising is informational in nature  Advertising should not be limited to dealing with basic functional needs  Consumers are free to choose Advertising and Stereotyping o Gender stereotyping  Portrayal of women  Preoccupied with beauty, household duties, and motherhood  Decorative objects or sexually provocative figures o Portrayal of men  Constructive, powerful, autonomous, and achieving o Advertisers are striving to:  Increase the incidence of minority groups  Avoid ethnic stereotyping  Develop advertising that has specific appeals to various ethnic groups  Be sensitive to the portrayal of specific groups of people in their ads for ethical and commercial reasons ▯ ▯ Advertising and the Media  Ads are the primary source of revenue for newspapers, magazines, television, and radio o Advertisers have an influence over media  Economic censorship - Media present biased news coverage in compliance with the advertiser  Reasons for media not being influenced by advertisers o Public confidence should be retained by being fair, accurate, and truthful o Advertisers need the media more than the media need any one advertiser o The Wall ▯ ▯ Economic Effects of Advertising  Effects on consumer choice - Helps achieve: o Differentiation: Products or services of large advertisers are perceived as unique or better than competitors’ o Brand loyalty  Effects on competition - Large firms with huge budgets: o Act as a barrier to entry, resulting in less competition and higher prices o Can achieve economies of scale  Effects on product costs and prices o Increases the cost of products and services o Increases product differentiation that adds to the perceived value of the product in consumers’ minds o Lowers prices by making a market more competitive ▯


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