Exam 1 Study Guide
Exam 1 Study Guide MKTG 477
Popular in Promotion Management
verified elite notetaker
Popular in Marketing
This 11 page Study Guide was uploaded by Clara Kerrone on Monday February 16, 2015. The Study Guide belongs to MKTG 477 at Washington State University taught by Dr. Darrel Muehling in Fall. Since its upload, it has received 400 views. For similar materials see Promotion Management in Marketing at Washington State University.
Reviews for Exam 1 Study Guide
No all-nighter needed with these notes...Thank you!!!
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 02/16/15
Mktg 477 Exam 1 Major Topics Note the list below is not intended to be exhaustive i e it does not cover every single topic that we have discussed in class to date Instead it is designed to give you a starting point from which to study If you can t find answers to the questions posed below ask a classmate for hisher notes Then come and see me if you still have questions Know promotional lingo and buzzwords eg upfront market scatter market makegoods etc and be able to apply them For example do you know what quotspot TV is Can you explain why a quotspot buy would be less expensive than a quotnetwork buy Pitching an account account is the business and it is being sales pitched Upfront market a buying period that occurs before the TV season ends Scatter market a buying period after the upfront market for remaining ad inventory Make goods a payback to an advertiser if for some reason a condition wasn t met Tagline a sentence or phrase that often comes near the end of a tv commercial or at the bottom of a print ad for the purposes of creating and reinforcing a brand image quotspot tvquot ad in a local area vs national network tv covering the whole country Use spot when only wanting to reach a specific regional audience or several spots Spot buy could be less expensive than a network buy when the company is only advertising to a specific demographic or area For example a local news station only sharing the weather for the PNW instead of the national weather forecast What are the elements of IMC ie the separate Promotional mix and Marketing mix elements IMC Integrated Marketing Communities Involves coordinating the various promotional elements and marketing activities that communicate with the firms customers Promotional mix elements 0 Advertising 0 Public relations 0 Sales promotion 0 Personal selling direct marketing Marketing Activities 0 Product 0 Place Selling at Nordstrom vs Walmart 0 Martha stewart started at K mart and moved up K mart isnt exactly consistent with her IMC However it is important that your product is available you have to start by finding a distribution channel and then move up in the market place 0 Price 0 Does it really cost that much more to sell perfume at walmart than Nordstrom Is the quality really all that different 0 No but it again is part of the IMC The price is part of the image that they want to be created for their product 0 Promotion What are the major targets of sales promotion Developing a Promotional Strategy 0 Research 0 Understand their consumers competitors 0 Target Marketing 0 Who are we trying to reach 0 IMC strategies with budgetary constraints 0 Monitoring results 0 Are we doing what we want to do Is it working What would an IMC strategy consist of What is the advantage of an IMC strategy over traditional promotional strategies Participants in the IMC Process 0 Advertiser 0 Ex Walmart sponsor company 0 Advertising agency 0 The company that is trying to put the vision of the advertiser into reality 0 Media organizations 0 Where the ads are placed Tv networks blimp etc Walmart could also be a media org because they have their own TV channel the tv39s that are playing in Walmart and playing advertisements as you walk through the aisles for their different products Proctor and Gamble might buy time on those TV39s so that their products are being advertised as their consumers are standing in the very aisle making a final decision 0 Other IMC specialists 0 Sales promotion agencies PR firms etc 0 Seattle technology store accepting bananas as payment and then donated them all to thezoo o Collateral Services 0 Marketing research firms 0 Lego having a focus group with their target market boys 812 What is the quotguiding principle of promotion Why is it important for us to know it A Guiding Principle of Promotion All promotion should be aimed at a specific target group with a specific objective in mind and within a certain budgetary constraint Remember out of everything Everything in this class boils down to this statement Know and be able to apply Segmentation criteria homogeneous within heterogeneous between etc segmentation bases demographic psychographic etc and segmentation approaches empirical and a priori 2 Approaches to Segmenting 1 A priori before any data are gathered and examined Assumes that differences must exist among consumers Segment accordingly No research or data you just kind of know 2 Empirical begins with research of the marketplace Data analysis reveals segments What must be established to say that you have defined segments 1 Homogeneous within members in each individual group share relevant traits and needs 1 Do same things buy same things similar ages married single etc 2 Heterogeneous between traits and needs of one group are different than those of another group 1 There are differences across groups Grandma and grandpa playing Wii have different needsthanteens 3 Substantial large enough to be potentially profitable There has to be enough people for it to be worth the time and effort 4 Meaningfully defined descriptions of the groups are appropriate for the productservice being segmented 1 Does it make sense to define by income for TV purchasing age tech orientation hair color 1 Hair color is not an important segment to TV manufacturers although it is a segment It should not be taken into account It would be important to hair color or makeup companies 2 Segmentations bases how are groups meaningfully defined 1 Demographic Age income marital status gender education fam size 2 Geographic Country region state city neighborhood 3 Psychographic lifestyles AIO39s activities interests opinions 4 Behavioristic behaviors that are specifically related to the purchase and use of a specific product 1 Usage rate 8020 rule 80 of a companies sales may come from 20 of their users Heavy users vs light users 2 Brand loyalty consistent purchasing within a company 3 Store type where do you buy the specific product What kind of store TV at Walmart versus Best Buy 4 Benefits sought why do you buy this product what do you get out of it Why do marketers develop segment profiles How do they use these profiles to reach consumers creatively and literally Whats the purpose of the profile 0 To direct and guide advertisers in their attempt to reach consumer segments o Reaching consumers o Creatively an ad campaign that consumers can identify with shacking gum ad that college aged understand Need to know age when want to use the product 0 Literally via media in your class room WHERE EXACTLY IS OUR CONSUMER Where do you buy the product What tv shows do you watch Example Recruitment ad for the Army Directed at parent appears in TIME magazine If you were developing profiles for purposes of designing advertising creative strategies which segmentation base would provide you with the type of info that would be the most helpful 0 Behavioristic specifically benefits sought info 0 Would want to know why are you chewing gum What do you get out of it 0 Then enrich the profile by adding details about consumers psychographics demographics and geographic Know and be able to apply target marketing strategies concentrated differentiated etc Target Marketing Strategies 1 Undifferentiated one strategy targeting the entire market ignoring segment differences quotOne size fits allquot 2 Differentiated unique strategies targeting each segment separately and differently 3 Concentrated targeting a single segment with a unique strategy while ignoring the others Putting all efforts in just one What is the purpose of positioning How is it done what are specific positioning strategies Positioning gtDeveloping and executing a creative strategy that creates or reinforces a certain brand image in the minds of consumers from the target market 0 This is the primary focus and responsibility of advertising Ways of positioning 1 Product attributes benefits 1 Volvo being the safest car 2 Pricequality relationship 1 Promote brand as being a good value low price ie Walmart 3 Product user 4 Competitor 1 Talk about our product by positioning next to and competing with another company Hertz vs Avis Pepsi vs Coke 5 Cultural symbolicon 1 The Keebler elf RCA with the little dog US Postal Service eagle US Forestry Group with Smoky Bear 2 Associating your brand with an icon Understand and be able to apply the Communications Process Model and its components eg encoding decoding fields of experience etc MODEL 1 The Communications Process Model 0 A basic model of communication in general 0 Suggests communication is quotshared meaningquot 0 see model in book involving sendergtencodinggtmessagegtdecodinggtreceiver in chapter 5 Fields of experience 1 Channel of 4 I 39I i I SourceI 44Enoode Message 4 Decode IReceiver l f i ll Communication Feedback Response V Feedback loop Some basic notions about communication 0 Involves at least 2 parties the sender and the receiver 0 Individuals interpret communications differently o Knowingunderstanding the receivers background and needs aids communication 0 this is why we do tons of research and make very specific target markets 0 Feedback aids communication 0 Communication is aided when the parties have similar feeds of experience 0 Some noise in the process is inevitable 0 Problems with feedback encoding or decoding etc Understand how noise may affect each stage of the communication process differently To effectively communicate marketers must overcome quotnoisequot 0 Noise any obstruction in the communication process 0 Can occur at any stage encoding message channel decoding feedback etc What are rules for overcoming noise What are the managerial implications of each 4 rules to follow to overcome noise a Know and understand your customer 0 Advertisers should not insult the intelligence of their audience 0 But they should not assume that their audience is intelligent b Make the ad attentiongetting but simple 0 KISS keep it simple stupid c Monitor the effectiveness of the ad 0 Seek consumers true responses to the communication 0 Sales of a product are often not a good measure of advertising effectiveness 0 Consumers may love your ads but not buy your product 0 Or they may hate your ad but buy your product anyways d Take control over the production process 0 Make sure the ad says what you intend for it to say Why are sales andor quotadvertising recall not good measures of advertising effectiveness What are 2 oftenused measures of advertising effectiveness 1 Product sales 2 Advertising recall however NEITHER are good measures No indication of how the consumer reacted to the ad Understand My each of the modelsexplanations of quothow advertising works What does each model say about how advertising affects consumers If promotion managers understand a particular model how could they put it to use ie how would they develop strategies that would be consistent with model expectations MODEL 2 Low Involvement Learning Mere Exposure Model Exposure to and familiarity with a brand via advertising yield topofthemind awareness and positive feelings toward the brand quotAdvertising is like grass You never see it grow but every one in a while you may have to get out the lawn mowerquot gt Most people don39t even realize that advertising is having an effect on us but it does The grass is growing even if you cant see it If we can make people familiar with our brand they are going to have a more favorable viewattitude of our brand Make sure people are repeatedly exposed to your brand Ex Target being the continuous and only advertiser in the magazine quotThe New Yorkerquot made the reader so aware oftheir brand that it would have a favorable influence in that specific magazine Undercover stealth Marketing Having a seemineg innocent consumer out in the real world using a product and semi drawing attention to it in a believable way asking someone to take a picture of you to ad for the camera playing a video game in Starbucks etc Many stores give discounts to their employees to buy their clothes for free advertising MODEL 3 Affect Transfer Attitude toward the ad Model Feelings about the ad are transferred to feelings about the brand via Classical Conditioning processes affect means feelings feelings transfer from one thing to the brand Classical conditioning Positive association occurs over time from repeated exposures Unconditioned stimulusad for brand X gt unconditioned response positive feeling I Conditioned stimulus Brand X product gt conditioned response positive feeling 1 Try to have an ad that creates a positive feeling 2 Have to have repetition over time MODEL 4 Information Processing Model gt Consumers process info in a series of stages each stage more quotmentally demandingquot than the previous one Cant move on a step until you ve done the one prior to it Stages of Information Processing Model 1 Exposure being in physical proximity to the ad stimulus Point of purchase display ad in newspaper etc 2 Attention allocating mental capacity in order to focus on the ad stimulus 3 Comprehension trying to take meaning from understand what the ad stimulus is attempting to communicate a Noise can occur here 4 Yieldingacceptance accepting or rejecting the ad stimulus message a Aka persuasion b In comprehension you understand what is happening or being said Then in acceptance you decide whether or not you agree with the statement 5 StorageRetention placing pieces of our interpretation of the ad message into long term memory 6 Retrieval bring pieces of stored memory regarding the ad message back to consciousness Information Processing quotSelectivityquot insert triangular visual of above steps Promotional Strategies 0 Exposure the poster in the class room the FB ad etc 0 Attention pop up ads Camel ad with pop up in magazine that plays music personalized ads schweitzer having slopes map saying quotJeff39s o Comprehension KISS is a way to overcome selective comprehension 0 Don t overwhelm your audience with info that might be hard to understand 0 YieldAcceptance next lecture o StorageRetention repetition Giving a phone number a jingle play it over and over 0 Retrieval to get you to remember something they bring you back to the given situation and jog your memory until you can recall MODEL 5 ACTIVE CONSUMER COGNITIVE RESPONSE MODEL Consumers thoughts at the time of ad exposure termed quotcognitive responsesquot influence their feelings toward the ad and the ad brand What are 2 oftenused measures of advertising effectiveness 1 Product sales 2 Advertising recall however NEITHER are good measures No indication of how the consumer reacted to the ad Competing Explanations Inactive Consumer wrong Ad exposure gt gt outcomes sales ad recall Active Consumer correct Ad exposuregt consumer reactionscognitive resonses gt outcomes brand attitudes purchase intentions etc The diff between this and the affect transfer model is that it is not about general feelings it is much more specific and it is immediate response as compared to change over time via classical conditioning Cognitive responses include 1 Messagerelated a Support arguments positive i Supporting ad that you saw Yeah Nissan is a great car b Counter arguments negative i I don t agree with this I have friends who have Nissan39s and they have a lot of problems with them Disagreeing with the message of the ad as they are interpreting it c Essentially do you like or dislike the ad 2 Source spokesperson related a Source bolsters positive i the guy in the ad looks like my bro and I love my bro b Source derogations negative i tiger woods in an ad is very controversial 3 Ad Executionrelated a Favorable positive b Unfavorable negative If any aspects of the ad create a negative response according to this model the ad needs to be redone This model is the answer to the Yield and Response aspect from the last model Have you noticed that many of the models we have discussed seem to have the same intended outcome What is it what are advertisers hoping to influence It39s not sales The answer is brand attitudes Why brand attitudes Brand attitudes gtPurchase Intentions gt Behavior MODEL 6 MULTlATTRIBUTE ATTITUDE MODEL Consumers brand attitudes are influenced by their beliefs about the brand and the evaluative criteria they use to assess product attributes Attitude Change Strategies an attitude is a general feeling of favorable or unfavorableness 1 Alter existing beliefs beliefs link a brand to attributes and characteristics of the product a Attitude I like Coca Cola Belief coke is good b Ex ad about the health benefits about potatoes and how they are 99 fat free because many consumers associate them with fries butter etc c Ex WSU ad about alcoholic facts of students on campus to show how little the vast majority actually drinks 2 Alter existing evaluative criteria evaluative criteria are the standards individuals use to judge and rate a product a Belief Scope tastes good Listerine tastes bad Listerine needs to convince consumers that the bad taste means its working better b Evaluative criteria never uses the brand name in the statement belief does 3 Add new evaluative criteria to consumers current list of evaluative criteria a Pain reliever how quickly does it relieve your pain How well does it work Is it a gel or a pill Excedrin added this question to make their product stand out does it have caffeine Ours does and that s a good thing MODEL 7 ELABORATION LIKELIHOOD MODEL ELM Consumers are persuaded by different components of an ad depending upon their level of involvement at the time of ad exposure 0 Elaboration is the extent to which cognitive responses of different types are generated by consumers at the time of ad exposure How many thoughts about a product are they having at the time of exposure 0 Involvement is a key situational factor shaping brand attitudes o Routes to Persuasion include 0 Central route high involvement messagebased 0 Peripheral route low involvement source and adexecution based see handout of elaboration likelihood model High involvement is focusing and elaborating on the message intended Low involvement is still attention it is just on the peripheral info the things in the background of the ad Counterarguments Im having a negative thought about it Central and peripheral routes may be discussed in the context of 1 Advertising strategies the focus of the advertisers creative executions 2 Consumer information processing what consumers focus on when they are viewing an ad f consumers are high in involvement advertisers should pursue CENTRAL ROUTE 0 Positive message based cognitive responses may be evokes yielding morefavorable brand attitudes 0 Brand attitudes will be more enduring o If negative messagebased cognitive responses are evoked they will yield less favorable brand attitudes 0 Many consumers may be low in involvement and so the message of the ad doesn t register with them PERIPHERAL ROUTE 0 Positive sourcead execution based cog responses may be evoked making ore favorable brand attitude 0 Many consumers are low involvement so they are more likely to tune into peripheral cues o If negative ad execution based cognitive responses to peripheral cues are evoked they will yield less favorable brand attitudes 0 Michael phelps is going to give a bad brand attitude 0 Brand attitudes will be fleeting requiring frequent ad repetition o If consumers are in a high involvement state they may become frustrated due to lack of info How do they know if they should do peripheral versus central advertising It depends on the placement ofthe ad Example for a camera in a photography magazine would probably have a lot of info and stats But in people magazine probably a lot more peripheral focus We don t know with certainty but advertisers can guess depending on their environment Make sure you know how each model is similar to andor different from the other models Some may seem like subtle differences but they re not when you try to apply the models to various scenarios Make sure you are aware of and understand the terminology associated with each model For example what s the difference between a belief and an attitude What is an attribute or an quotevaluative criterion What are the types of quotcognitive responses that advertisements may elicit from consumers eg counterarguments source derogations etc fyou were a marketer how might you measure and categorize cognitive responses What is a central or peripheral route to persuasion all these answers are in above models Be able to put into your own words and interpret promotionrelevant sayingsquotations presented in class For example why is quotadvertising like grass Why is quotgood advertising the fastest way to kill a bad product What does KISS refer to quotAdvertising is like grass You never see it grow but every one in a while you may have to get out the lawn mowerquot gt Most people don39t even realize that advertising is having an effect on us but it does The grass is growing even if you cant see it 0 KISS keep it simple stupid quotThe fastest way to kill a bad product is with good advertisingquot gt effective advertising will bring people to the product but its effectiveness will be revealed even more quickly Bad products die faster Satisfied customers will tell 5 people how much they like it while dissatisfied people will tell 15 Make sure you have reviewed the chapters Although the exam will be written from the class lecturesnotes at least one multiplechoice question may come directly from chapter readings so it is important that you familiarize yourself with the textbook material Read the handouts Understand what they are discussing and how they are relevant to class discussions Think about the ads and videos that were shown in class to help reinforce a concept Note I will not be asking specific questions about any of the ads or videos but I may make general reference to them in the context of an exam question
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'