Study guide for Final Exam, Color Coded by Mod.
Study guide for Final Exam, Color Coded by Mod. MKTG 465 001
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This 9 page Study Guide was uploaded by berbaroot on Thursday May 19, 2016. The Study Guide belongs to MKTG 465 001 at University of Colorado Colorado Springs taught by Andrew Czaplewski in Spring 2016. Since its upload, it has received 10 views.
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Date Created: 05/19/16
MODULE 6: MEDIA PLANNING / EVALUATION OF MEDIA - Review the general problems of media planning. · Insufficient Information · Inconsistent Terminologies · Time Pressures · Difficulty Measuring Effectiveness - What are the steps in developing the media plan? · Market Analysis · Establishment of media objectives · Media Strategy development and implementation · Evaluation and follow-up - What are "sweeps"? Why might they be a problem for advertisers? Sweeps periods are when audience measures are taken only at specific times of the year, and used to set advertising rates, and often generalized to succeeding months, so future planning decisions must be made on past data that may not reflect current behaviors. Marketers argue that special programming and promotion efforts are often used by networks and their local affiliates to bolster their rating during the sweeps specifically and that the numbers gathered during these periods are not indicative of audience size for the remaining week of the year. Meaning the data is being skewed and not actually representing current numbers. - Review the three main types of scheduling (see Figure 10-15) and the advantages and disadvantages of each (see Figure 10-16). 1) Continuity which refers to a continuous pattern of adverting that may mean every day, weekly or monthly. The key is that a regular pattern is developed without gaps or non- advertising periods. 2) Flighting which employs a less regular schedule, with intermittent periods of advertising and non-advertising. 3) Combination of the first two. In Pulsing, continuity is maintained, but at certain times promotional efforts are stepped up. - Understand the tradeoff between partial coverage and wasted coverage. Waste coverage is justified because the media employed are likely to be the most effective means of delivery available and the cost of the waste coverage is exceeded by the value gained from their use. - What are GRP's? How are they calculated? How are they different from TRP's? Marketer rely on ratings (average number of people reached), and frequency (average number of times exposed. A summary measure that combines the program rating and the average number of times the home is reached during this period (frequency of exposure) is commonly used reference point known as Gross Rating Points (GRPs). GRP = Reach * Frequency Target Rating Points refer to the number of people in the primary target audience the media buy will reach, and the number of times, and TRP does not include waste coverage whereas GRP does. - What factors determine the appropriate level of frequency (360)? Which factors have an inverse relationship with frequency? (see Figure 10-22) Inverse Relations Ships (a) Marketing factors: -brand share: higher brand share, lower frequency level required. -brand loyalty: higher the loyalty, the lower the frequency level required. (b) Message/creative factors: -message complexity: simpler the message, the less frequency required. -message variation: the more unique the message, the lower the frequency required. -advertising units: larger units of advertising require less frequency than small ones to get the message across (c) Media factors: -editorial environment: more constant the ad id with the editorial environment, the less frequency needed. -attentiveness: the higher the level of attention achieved by the medial environment, the less the frequency is required. -scheduling: continuous scheduling requires less frequency than does flighting or pulsing. -number of media used: fewer media used, the lower the level of frequency needed. -repeat exposures: media that allow for more repeat exposures (magazines), requires less frequency - Understand the difference between absolute and relative advertising costs and between CPM and TCPM. o Absolute advertising costs is the actual total cost required to place the message o Relative advertising costs refers to the relationship between the price paid for advertising time or space and the size of the audience delivered o CPM is the cost per thousand and breaks down the cost by the basis of cost per thousand people reached o TCPM is the target CPM which calculates CPMs based on the target audience, not the overall audience - Review the advantages and disadvantages of T.V., Print, Radio, and Outdoor media. Television o Advantages: Mass coverage, high reach, impact of sight, sound, and motion, high prestige, low cost per exposure, attention getting, and favorable image. o Disadvantages: Low selectivity, short message life, high absolute cost, high production costs, and clutter. Print o Advantages: High coverage, low cost, reader controls exposure, high information content, Ads can be places in interest sections o Disadvantages: Short life, lack of flexibility, selective reader exposure, low attention getting capabilities Radio o Advantages: Local coverage, low cost, high frequency, flexible, low production costs, and well-segmented audiences. o Disadvantages: Audio only, clutter, low attention getting, fleeting message Outdoor o Advantages: location specific, high repetition, and easily noticed o Disadvantages: short exposure time requires short ad, poor image, local restrictions. ***************** - Be able to differentiate and define coverage, reach and frequency. Understand the reach / frequency tradeoff. (a) Coverage: refers to the potential audience that might receive the message through a vehicle. (b) Reach: is a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. Refers to the actual audience delivered. (c) Frequency (p. 339): refers to the number of times the receiver is exposed to the media vehicle in a specified period - Know how the Survey of Buying Power, Brand Development, and Category Development Indexes are calculated. Review how CDI and BDI can be used in promotion decisions (see Figures 10-9, 10-10, & 10-11). (BPI) Performed annually by Sale and Marketing Management (BDI) Brand Development Index: helps marketers to factor the rate of product usage by geographic area into the decision process. (% of Brand Sales) / (% of Total Population in Market) * 100 = BDI (CDI) Category Development Index: provides information on the potential for development of the total product category rather than specific brands. Upon combining with BDI, a much more insightful promotion strategy may be developed (% of Category Sales) / (% of Total Population in Market) * 100 = CDI MODULE 7: DIRECT MARKETING - What factors have contributed to the growth of direct marketing in recent years? 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 low-and high- ticketed items through direct-response channels and assures sellers that they will be paid. Changing Structure of American Society and Market: American’s have the “money-rich” 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, do-it 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 - What are the main objectives of database marketing? o Improve segmentation o Stimulate repeat purchases o Cross-selling other products o CRM - How can database marketing be used to manage customer relationships and build so-called "one- to-one" marketing? CRM will take traditional marketing to the next level with customers. It allows you to establish and learn a relationship with each customer making them feel unique. - What is meant by "RFM Analysis"? What is it used for? Recency, Frequency, monetary Used to determine which customers are the best ones by determining the recency of a purchase, the frequency they purchase and how much the customer spends. - What is meant by "Cross-selling"? How can database marketing can be used to cross-sell? Can be used to determine behaviors and preference to aid in complementary products. - What are the advantages and disadvantages of direct marketing? (+) 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 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 direct-response 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 (--) 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: Direct-mail and online services, are less likely to create a desirable ‘mood’. Rising Costs: postal rates increase, direct-mail profits are immediately and directly impacted Do Not Contact lists: list that indicates consumers cannot be contacted; under consideration by the FTC ***************** - Review how direct marketing is used in combination with other elements of the promotions mix. - Be able to identify a "two-step" approach to direct marketing? Advertising with a follow up presentation to seal the deal. - Specifically, how does advertising assist with direct marketing efforts? Direct marketing gives you the opportunity to promote your products and services directly to the customers who most need them. MODULE 8: INTERNET & INTERACTIVE - Review the primary internet communications objectives. Create Buzz Gain consideration Create a strong brand Create an image Generate interest Create Awareness - Understand the methods for advertising on the internet. Banners Sponsorships Pop-ups Push technology links - How does the internet enhance sales promotions? By offering consumers specials incentives via the internet to encourage trial, repeat purchases and customer loyalty - What are the main advantages and disadvantages of the internet as an IMC option? +: Enhances Target marketing Message tailoring Interactive capabilities Information access Sales potential Creativity Exposure Speed Complement to IMC --: Hinders Measuring problems Clutter Potential for deceptions Privacy Irritation - How do companies measure the effectiveness of the internet in their IMC efforts? They use various internet metrics to measure effectiveness. Two primary being internet – specific and traditions. Internet- specific is based audience measures specific to the Internet and interactive industry. Some examples are clicks, post-clicks conversions, cost per click, unique visitors, visits, webpage eye tracking, average frequency any many more. Second is traditional marketing and communication measures like recall and retention, surveys, sales, tracking, ROI ***************** - In what ways can the internet enhance Personal Selling? +: Enhances Target marketing Message tailoring Interactive capabilities Information access Sales potential Creativity Exposure Speed Complement to IMC MODULE 9: SALES PROMOTION - What are the three key aspects of Sales Promotions? 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 - Differentiate between consumer oriented and trade oriented sales promotions. Which is a push and which is a pull strategy? Consumer: Pull Strategy Sales Coupons Samples Rebates Loyalty programs Event marketing Trade oriented: Push Strategy Contests Trade allowances Trade shows Cooperative Advertising - What are the main reasons why sales promotions have increased in recent years? Growing power of retailers Declining brand loyalty Clutter Competition - What is meant by consumer franchise and non-franchise building promotions? Consumer Franchise-building (CFB) promotions are sales promotions that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity - Review the various methods of consumer-oriented and trade-oriented sales promotions. Contrast the objectives of consumer versus trade oriented sales promotions. Consumer: Obtain trial Increase consumption Target specific segment - Why is sampling and coupons powerful promotional tools? When is sampling most appropriate? Because it provides the customer with a product at no cost to induce trial. - What are the advantages and limitations of coupons? Advantages Appeal to price sensitive customer Can offer price break Effective way to gain new customers Disadvantages Hard to know how many customers will use the coupon Could be used by loyal customer who would of purchased any way Fraud - What are the two types of premiums? Free premiums Self-liquidating premiums - 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. ***************** - What are the problems associated with Trade Allowances? What is meant by "forward buying" and "diverting?" - Many marketing and advertising executives are concerned about the detrimental effects of too many sales promotions. Understand what these negative effects might be. “sales promotions trap”: 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 MODULE 10: PUBLIC RELATIONS - What is the "traditional" perspective on PR? How does this differ from the "New Role" of PR within the firm? 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. 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 non- marketing 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. - What is meant by Marketing Public Relations (MPR)? What marketing objectives can be aided by MPR? 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 - Be able to identify the various public relations tools. Press release Press conferences Exclusives ( offering new stations exclusive rights to a story) Interviews Community involvement The Internet Social networks and blogs - How should firms measure the effectiveness of PR? Number of impressions over time Number of impressions on the target audiences Number of impressions for a specific target audience Percent of positive articles over time Percent of negative articles over time Ratio of positive to negative articles Use media content analysis, survey research, and market mixed modeling to measure. - What are the advantages and disadvantages of publicity? +: credibility, news value, significant word-or-mouth communications, and perception for being endorsed by the media. --: lack of control, timing, and accuracy. - Review the objectives of corporate advertising. Why is this form of advertising controversial? Corporate advertising objectives Creating a positive image for the firm Communicating the organization's views on social, business, and environmental issues. Boost employee morale Helps newly deregulated industries ease consumer uncertainty and answer investor questions. Helping diversified companies establish an identity for the parent firm (Think ads for Toyota as opposed to one particular dealership) Why is this controversial? (pg 594 is worth reading) Consumers are not interested in this form of advertising Is a costly form of self- indulgence. They aren’t easy to write. They don’t promote a product. Advertisements are often written by upper management. The firm must be in trouble. Some only use it to combat negative public image issues. It’s a waste of money. - How is the effectiveness of corporate advertising measured? Attitude surveys: gains insights into both public’s and investors’ reactions to ads. Studies relating corporate advertising and stock prices: examines the effect of various elements of corporate advertising on stock prices. Focus group research: use to find out what investors want to see in ads and how they react after the ads are developed ***************** - Be able to differentiate between PR, MPR, Publicity and Corporate Advertising. (a) Marketing Public Relations (MPR): 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. (b) Publicity: refers to the generation of news about a person, product, or service that appears in a broadcast or print media. (c) Corporate Advertising: form of advertising designed to promote the firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something - Be able to identify and distinguish among the 4 main types of Corporate Advertising? I. Image Advertising II. Event Sponsorships III. Advocacy Advertising: concerned with propagating ideas and illuminating controversial social issues of public importance in a manner that supports the interest of the sponsor IV. Cause-Related Advertising: companies link with charities specifically or nonprofit organizations as contributing sponsors, despite controversial interest. MODULE 11: PERSONAL SELLING - What are the stages in the evolution of selling? (see Figure 22-2) Specifically, what are the problem-solver and procreator stages? - According to Hoffberg & Corcoran, what are the new roles of personal selling? Surveying revolves around enlightening themselves about customers’ businesses and being able to evaluate the businesses, as well as their customers to obtain a position of well- informed authority. Mapmaking is a framework for the client, of equally an account and solutions strategy. Guiding is conveying incremental value to the client by recognizing problems and opportunities, contributing alternative options and solutions and, enabling solutions with physical value. Fire starting is winning clients thus motivating them to obligate to a result. - According to Sales & Marketing Management, what are the three categories of sales jobs? (see Figure 22-4) - Review the traits that are considered most helpful and those most objectionable in salespeople (Figure 22-6). + Belief in the product where the seller must believe in their product, inspiring the customer to believe in you, hesitation and disbelief does not. +Educate and inform the potential buyer everything you can about the products/service. The more informed salespeople make their buyers the more buyers will rely on them. + Trustworthiness and honesty, even when it may mean losing the sale, is the best policy. Telling a potential buyer when the product is not right for them will go far in building trust in the long term, as well as lead to positive word of mouth. -- High cost as the cost per sales call continues to climb, the marketer may find mass communications a more cost-effective alternative. -- Poor reach, person selling cannot reach as many members of the target audience as other elements. -- Potential ethical problems as the manager has no complete control over the messages the salespeople communicate and because income and advancements are often directly tied to sales, sometimes sales reps bend the rules. - Review how the other elements of IMC can support the personal selling effort. 1) Allowing for two-way interaction 2) Tailoring of the message 3) Lack of distraction 4) Involvement in the decision process 5) Source of research information - Referring to the marketing mix, when does use of personal selling most appropriate? - What criteria are appropriate to evaluate personal selling? Distinguish between qualitative and quantitative criteria. I. Orders- QT II. Sales Volume- QT III. Margins- QT IV. Customer Accounts-QL V. Sales Calls-QL VI. Selling Expenses- QT VII. Customer Service- QL **************** - Know the main advantages and disadvantages of personal selling. +: Allowing for two-way interaction allows the sender to determine the impact of the message. Tailoring the message as a result of direct interaction, guides the message content. Lack of distraction is common in personal-selling situations in which one-on-one presentations are conducted. Involvement in the decision process like in consultative personal selling and relationship marketing, the seller become more of a partner in the buy decision process, acting in conjunction with the buyer to solve problems. Source of research information can be collected by sales reps such as information on competitor’s products and services, promotions, pricing, etc. --: Inconsistent messages, lack of unstandardized messages Sales force/ management conflicts result and act so competitively as if they don’t work for the same company and objectives High cost of sales calls is increasing that a more effective mass communicator may be a cost effective alternative. Poor reach in personal selling cannot reach as many members of the target audience as other elements. Potential ethical problems such as sales rep bending the rules or bribery in order to get a sale. - What are the six main personal selling responsibilities? Prospecting and Evaluating Preparing Approaching the customer Making the presentation Closing Follow up
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