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Mkt 423_ Test 2 study guide

by: Allie S

Mkt 423_ Test 2 study guide MKT 4230

Marketplace > Clemson University > Marketing > MKT 4230 > Mkt 423_ Test 2 study guide
Allie S
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Test 2 notes
Promotional Strategy
Dr. Knowles
Study Guide
MKT 423, Clemson, Marketing
50 ?




Popular in Promotional Strategy

Popular in Marketing

This 24 page Study Guide was uploaded by Allie S on Friday March 4, 2016. The Study Guide belongs to MKT 4230 at Clemson University taught by Dr. Knowles in Spring 2016. Since its upload, it has received 59 views. For similar materials see Promotional Strategy in Marketing at Clemson University.


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Date Created: 03/04/16
▯ Ch. 6 ▯ Source, Message and Channel Factors ▯ ▯ Persuasion matrix   Purpose  HOW Controllable elements interact with consumer’s responses o Controllable elements:  Source  Message  Channel o We can’t control our consumers, can’t control the message they take  away,  o But we can expose them ▯ ▯ THE PERSUASION MIX: ▯ ▯ Independent variables ▯ Dependent variables – Steps they go through to be persuaded  how were they effected; behaviors? ▯ NONE of these variables can be ignored ▯ ▯ 1. Source  Person involved in communicating a marketing message o Direct source ­ Delivers a message and/or endorses a product or  service o Indirect source ­ Draws attention to and enhances the appearance of an ad o Organization – no direct/indirect source, but organization does have a  message and usually the product delivers message o EX:  Tom Brady for Smartwater – DIRECT = we “know” him  Beautiful model for Dolce and Gabbana = Indirect  Swatch model – Indirect – decorative model  Heinz – organization = use tomatoes  Credibility works through the process of internalization o If this is a credible person, we may internalize this because WE want  to be similar to this person o Do we accept them as credible?  What is their: level of Expertize, or trustworthiness?  Marketers want them to trust the source’s expertise and  character o Limitations:  High and low credibility sources   Arguing for a position opposing their own best interest? We see equal effects   Sleeper effect – persuasiveness of a message increases with the passage of time regardless of the source credibility  Overtime the message becomes more believable  ▯ ▯ ▯ ▯ ▯ 2. Attractiveness – how much do we want to be like the spokesperson  similarity  familiarity  likability ▯ ▯ Q­Score = star power  Q­score formula = the % of those who say “one of my favorites”/ by the %  who have heard of him/her ▯ ▯ Problem with celebrities: ▯ ▯ ▯ The meaning movement and endorsement process: ▯ ▯ ▯ Celebrity bundles emotions or cultural pieces – consumer buys idea attached ▯ ▯ ▯ 3. Power = customer compliance  Power depends on the amount of control over the consumer, the customer’s  perceived level of concern for self, and the level of “watching” the consumer  feels Message Factors  Message structure o Order presentation o Conclusion drawing o Message sidedness o Refutation o Verbal versus visual  Message appeals: o Comparative advertising o Fear appeal o Humor appeals 1. Order of presentation ­  o Primary effect  Stronger   Recall the beginning of the message o Recency effect   Recall the end of the message, most recent 2. Message structure o Conclusion drawing  Depends on:  Target Audience  Type of issue of topic  Nature of the situation 3. Message Appeals o Comparative advertising – compare directly to competitor   May be especially useful for new brands  Often used for brands with small market share  Frequently use in political advertising o Fear appeals – fear of not using or using competitor product  May stress physical danger or threats to health  May identify social threats: disapproval or rejection  May backfire if the level of threat is too high  o Humor appeals – attracts attention best  They can attract and hold attention  They are often the best remembered  They put the consumer in a positive mood  Advantages + Create a positive mood that enhances persuasion + Aids retention and awareness  Disadvantages ­ Harms recall/comprehension ­ viewers can block out ad ­ doesn’t persuade general 3. Channel Factors  Personal versus nonpersonal channels ­ Information received from personal  channels is more persuasive than that received from the mass media  Effects of alternative mass media o Differences in information processing  Self­paced ­ Readers process the ad at their own rate and study  it as long as they desire  Externally paced ­ Transmission rate is controlled by the  medium ▯ Ch. 7 ▯ Value of Objectives  Communications o facilitate coordination of the various groups  Planning and decision making o guide decision making and  development of the integrated marketing  communications plan  Measurement and evaluation of results o provide a benchmark to measure success or failure Within a Company… o create a set of general ideas called CORPORATE Objectives  Marketing gets these and has to market based on these  Marketing objectives are set in specific and measurable  – quantifiable, realistic, and attainable  Part of the Marketing Plan created o 4 P’s   Promotional people get the Marketing plan and are passed  downwards – promotional, product, distribution people   Have to translate the Marketing plan into the IMC Promotional Objectives: 1. Inform about product – new product/group 2. Persuade to purchase – now or when needed 3. Remind – keep relevant and known ▯ Marketing Objectives Versus Integrated Marketing Communications Objectives  ▯ Sales­oriented Objects versus Communication Objectives  Sales Objectives = main goal is to increase sales  o Require economic justification – ROI  o Successful implementation requires all marketing elements to work  together o Required to produce quantifiable results; % or $ Problems with Sales Objectives o Advertising has carryover effect  Carryover effect: Money spent on advertising does not have  immediate impact on sales  Can’t always tie ad to sales today^^^ o It is difficult to determine precise relationship between advertising and sales o Do not offer much guidance for planning and developing promotional  program  Communications Objectives = increase brand knowledge, interest in brand,  favorable attitude o Based on hierarchy effect models   Cognitive, affective, and behavioral goals o Quantifiable and observable results  Not always immediate effects  Criticisms of DAGMAR  Based on communications effect o Awareness, comprehension, conviction and action  Objectives and strategies in the social consumer decision journey Source: Expert interviews; McKinsey analysis Factors affecting/influencing advertising budgets Note: 1 relationship means the factor leads to a positive effect of advertising on sales; 2 relationship indicates little or no effect of advertising on sales. Budgeting approaches:  Top­down o Affordable method   What’s left o Arbitrary allocation  Management decision about what is necessary o Percentage of sales method  Advertising and promotions budget is based on sales of the  product  Bottom­up o Objective and task method  Best method  Define communications objectives  Determine specific strategies  Estimates costs o Payout Plan o Quantitative Models  GIGO – Garbage in, garbage out – need to consider all  variables   Hard to program all consumer profiles and situations/reasoning ▯ ▯ ▯ Steps to Implement the budget  Employ comprehensive strategy  Develop strategic planning framework o Must employ integrated marketing  communications philosophy  Develop contingency plans  Focus on LONG­TERM Objectives o Budget should be long­term; think ahead   Evaluate effectiveness of programs  Factors to consider when budgeting o Allocating to IMC Elements o Client/agency policies o Market size o Market potential o Market share goals  ▯ Ch 8 ▯ ▯ Different Perspectives on creativity  Managers – “suits” = more bottom line, interested in sales and numbers  Creative – “artists” = more for the pursuit of art/creativity; trying something  new o Ultimately, need a combination of the two ▯ ▯ Advertising Creativity – ability to generate fresh, unique, and appropriate ideas  that can be used as solutions to communication problems  Solutions – reach audience in a new way   2 factors : o Ad Divergence – extent that ad is novel/unusual = attention grabbing:  Originality  Flexibility  Elaboration – unexpected details, more complex ideas  Synthesis – ideas are connected/blended  Artistic value  o Ad Relevance – degree to which the ad is meaningful, useful, or  valuable to consumer  Ad to the consumer – is there a connection for the consumer?  Brand to consumer – brand needs to be of personal interest for  a consumer ▯ ▯ D’Arcy Masius Benton & Bowles’s Universal Advertising Standards  Does the advertising position the product simply, with unmistakable clarity? o Is your point understood? What are they taking away?  Does the advertising bolt the brand to a clinching benefit?  Does the advertising contain a Power Idea?  Does the advertising design in brand personality?  Is the advertising unexpected? o Enough differentiation to grab attention?  Is the advertising single­minded? o Want a single focus   Does the advertising reward the prospect? o Does the consumer get the idea?  Is the advertising visually arresting?  Does the advertising exhibit painstaking craftsmanship? o Shows details – hard work  ▯ ▯ Creative Challenge  Different situations = different approaches needed o There is no one formula, No Rules ▯ ▯ Creative Risks  Have to get through the clutter o Back to differentiation, unexpected ▯ ▯ ▯ Changing your focus can change your perspective   Preconceived notions lead our train of thought – or focus o Changing perception allows you to expand focus  Findings for being creative: o Try to relax o Lie on your back and think o Successful creativity involves ensuring ideas are practical and  convincing ▯ ▯ Creative Versus Hard­sell Advertising  Rationalists o Advertising must sell the product or service  Poets o Advertising must build an emotional bond between consumers and  brands or companies ▯ ▯ Young’s Model Creative Process 1. Immersion o Gathering raw material and data 2. Digestion o Analyzing info; Understanding it  3. Incubation o Subconscious  4. Illumination o Birth of an idea 5. Reality or verification o Reshaping idea for practicality ▯ ▯ Wallas’ Model 1. Preparation o Gathering info needed to solve the problem 2. Incubation o Letting ideas to develop 3. Illumination o Finding the solution 4. Verification o Refining the idea and analyze General Preplanning Input  Gather and organize information on the product, market, and competition o  Analyze the trends, developments, and happenings in the marketplace  Product/service­specific preplanning input o Gathering info through CLIENT STUDIES o Problem detection o Psychographic studies o Branding research Objective  o Evaluate ideas o Reject the inappropriate o Refine the remaining o Give ideas final expression Techniques o Directed Focus groups o Message communication studies o Portfolio tests o Viewer reaction profiles ▯ ▯ Marketing Communication Activities  Interrelated  Integrated  Coordinated ▯ ▯ Centered on a theme or idea  In different media  Over a time period  The Unique Selling Proposition (USP)  Benefit o Buy this product/service – get benefit  Unique o Must be unique to the brand o Rivals can’t offer it  Potent o Promise must be strong enough to move mass millions ▯ ▯ ▯ ▯ Positioning  Establishes the product or service in a particular place in the consumer’s mind  Done on the basis of a distinctive attributes  Basis of a firm’s creative strategy when it has multiple brands competing in  the same market ▯ Ch. 9 ▯ Appeals and Execution style ▯  Advertising appeal: Approach used to attract consumers’ attention and/or to  influence their feelings toward the product, service, or cause  Creative execution style: Manner in which a particular appeal is turned into  an advertising message presented to the consumer ▯ ▯ Appeals  Informational/Rational Appeals o Focuses on consumer’s practical, functional, or utilitarian need for the  product  Emphasize the features, benefits, reasons why to consider/own  this brand/product  Tends to be informative Types: o Competitive Advantage appeal   Compares to another brand and claims superiority on one or  more attributes  Directly mention or indirectly notion to other o Feature Appeal  Focuses on the dominant traits of the product or service  Benefits from products,  o Favorable Price Appeal  Makes product price the dominant point of the message  Have to still show product is good, but cheaper price  Not sacrificing quality  o News Appeal  Involves a type of news about the product, service, or company  New product, improved o Product/Service Popularity Appeal  Stresses the popularity of a product or service by pointing out  the:   Number of consumers who use the brand or those who have  switched to it   Number of experts who recommend the brand  Leadership position in the market  Emotional Appeals o Social and psychological needs o Can create favorable effect on evaluation o May generate large Profit gains o Can use any of these as the basis of your emotional ad: ▯  Transformational Ads o Associates experience of product/brand with a unique experience o Exciting, active  Additional Types of appeals: o Reminder Advertising  o Teaser Advertising  Builds curiosity or excitement for a product without giving too  much information  Simply supposed to generate interest and people thinking about the product o User­generated content  Ads that were made by the user ▯ ▯ Ad Execution Techniques  Straight Sell/Factual o  Scientific Technical o Cite evidence/scientific info that supports claims  Demonstration o Showing the uses of the products  Comparison o Use comparative advertising o Shows brand’s advantages over rival o Helps in positioning of new/lesser­known brands  Testimonial o Person elaborates on his personal experience on product o Endorsement  Slice of Life o Based on a problem/solution approach o Presents relatable situation – real life scenario  Slice of Death o Shows the negative consequences of a scenario o Often used B2B marketing – you’ve made a mistake in not using our  product  Animation o Animated scenes o Target children, have a lighthearted feel o But can be aimed at adults Inspires a creativity, fun, catchy  Personality Symbol o Aflack duck, Keebler elves, charmin bear  Imagery o Consists of visual elements, not info o Encourages buyers to associate brand with symbols, characters, or  situation in the ad  Dramatization o Tells short story o Product is the star  Humor o Used  Combination ▯ ▯ ▯ Basic Components of Print Advertising  Headline o Words in leading position of ad o Always the biggest   Subheads o Smaller than headline, but larger than copy o  Body Copy o The Main text portion of a print ad  Visual Elements o Illustration, drawings, photos  Layout o How elements are blended into a finished ad ▯ ▯ ▯ ▯ Basic Components of Television Advertising  Video o Visual elements that:  Attract viewer’s attention  Communicate an idea, message, or image  Audio  o Includes voices, music and sounds  Voiceover: message is delivered by announcer  Needledrop: music is prefabricated, multipurpose, highly  conventional  Jingles: Catchy songs about a product or service  Carry the advertising theme and simple message  Three Phases of production for 1. Preproduction o All the work BEFORE the actual shooting/recording  Preproduction meetings to:  Select a director  Production company  Estimating costs  timetables 2. Production o Filming/taping/recording  Location  Timing  Talent 3. Postproduction o Work after filmed o Tasks:  Processing  Editing   Sound effects/audio  Approvals 


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