MARK 3323 Exam 1 Review
MARK 3323 Exam 1 Review MARK 3323-001
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This 9 page Study Guide was uploaded by Gladys Serrano on Monday October 19, 2015. The Study Guide belongs to MARK 3323-001 at University of Texas at Arlington taught by Dr. Traci Freling in Fall 2015. Since its upload, it has received 296 views. For similar materials see Integrated Marketing Communications in Marketing at University of Texas at Arlington.
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Date Created: 10/19/15
Integrated Marketing Communications MARK 3323 Dr Traci Freling Exam 1 Review CH1 Advertising and Integrated Brand Promotion The Fundamentals of Advertising 0 MARKETING is the process of planning and executing the conception pricing promotion and distribution of ideas goods and services to create exchanges that satisfy individual and organizational objectives so both parties seller amp quotbuyerquot are happy so basically making different promo ways to get a buyer to get your product The 4 P s of Marketing I Conception which would be the idea of something we sell in the marketplace o Conception product doesn t necessarily need to be a physical product ie tires on a truck it can also just be an ideaservice o A Product is a good service or idea that someone offers for sale I much is something we charge consumers in monetary value I how we share information about the product amp promote it so consumers want to then buy it 0 Distribution is just another word for this can be anywhere local nat l internat l A big part of Marketing is coming up with the right MARKETING MIX a recipe which is a blend of the conception pricing promotion and distribution that s used for a particular idea good or service The key focus of the class is going to be more focused on PROMOTION which is the coordination of all seller initiated at first to set up channels of information and persuasion in order to sell goods services or promote an idea PROMOTION MIX also has 4 elements traditionally Advertising Publicity PR Promotions Personal selling sales BUT NOW that has changed there are more elements now to the Promotion Mix ie direct marketing marketing phone calls but you can now be put on do not call list snail mail mail if not asked for you can just unsubscribe and internet has to do with distribution more but so much promotion happens that way now too Advertising will be the central focus of the promotion aspect I ADVERTISING is paid for time amp space mass mediated and attempt to persuade If an agency is missing one of these elements than its not advertising o I ie Proctor amp Gamble BMW CocaCola Company need to pay for their advertising I even in the Super Bowl ads are not ads its some nonprofit organization that doesn t have to pay for that space 0 I There is no minimum for consideration buti think it s somewhere in the millions for it to be considered mass mediated I The only thing different between Publicity amp Promotion is the time and space you pay for the ad to be shown An AD or ADVERTISEMENT is a specific message that someone or some organization has created to persuade an audience And an ADVERTISING CAMPAIGN is a series of coordinated advertisements and other promotional efforts that communicate a reasonably cohesive and integrated theme about a brand 0 ie the Got Milk Ads There are different types of Advertising 0 Primary vs selective demand stimulation 0 Direct vs delayed response advertising 0 Corporate vs brand advertising When looking at di ferent types of advertising ask yourself Is it primary or selective demand stimulation PRIMARY Type of demand stimulation marketers use to stimulate demand for the entire product category It is not brand specific like the Got Milk ads SELECTIVE AKA secondary this is brand specific and is advertising to point out a brand s unique benefits compared to the competition It s the proper role for advertising ie Pepsi vs Coke or Toyota vs Chevy Is it direct or delayed response advertising DIRECT RESPONSE ADVERTISING 0 Is where consumers act immediately 0 Ads that tell you call this toll free quot or click here to order nowquot DELAYED RESPONSE ADVERTISING Relies on imagery and message themes that emphasize the benefits and satisfying characteristics of a brand 0 Attempts to develop awareness and preference for a brand over time 0 This is to create brand loyalty Is it corporate or brand advertising CORPORATE ADVERTISING 0 This is to create a favorable attitude and toward a company as a whole 0 ie Apple BP General Electric BRAND ADVERTISING 0 This gives specific features values and benefits of a particular brand offered for sale by a particular organization 0 A BRAND is a name term sign symbol or any other feature that identifies one seller s good or service as distinct from those of other sellers ADVERTISING AS A COMMUNICATION PROCESS 0 Sometimes the communication process breaks down ACCOMODATION AND NEGOTIATION MESSAGE PRODUCTION 9999999 RECEPTION eeeeeee INTENT Advertising Audiences An AUDIENCE is a group of individuals who receive and interpret messages sent from advertisers through mass media 0 General body of people the advertising is directed toward And a TARGET AUDIENCE is a particular group of consumers singled out by an organization for an advertisement or advertising campaign 0 Specific body of people the advertising is geared toward What types of advertising are used to reach each of these target audience groups 0 most mass media advertising 0 McDonalds Nissan Miller Brewing Verizon and State Farm insurance have products and services designed for the consumer market 0 business members are the focus of advertising for firms that produce business and industrial goods and services 0 Office e ui ment production machinery supplies and software 0 includes retailers wholesalers and distributors Retailers like Best Buy for electronics Wholesalers like Castle Wholesalers for construction tools Distributors like Sysco Food Services for restaurant supplies It s for both household and business goods and services 0 form a special target audience like doctors lawyers accountants teachersetc 0 Their advertising highlights goods and services uniquely designed to serve their more narrowly defined needs 0 Carried out through trade publications or Trade Journals 0 constitute an audience in themselves due to large dollar volume of buying the federal state and local governments do O O O 0 How may advertising audiences differ geographically 0 Global advertising used worldwide with only minor changes in the visual and message content 0 Typically brands that are considered citizens of the worldquot and whose manner of use doesn t vary tremendously by culture 0 International advertising occurs when firms prepare and place different ads in different national markets for the same brand outside their home market 0 National advertising reaches all geographic areas of a single nation 0 Regional advertising carried out by producers wholesalers distributors and retailers that concentrate their efforts in a relatively large but not national geographic region within close states 0 Local advertising directed toward audience in a single trading area either a city or state within close cities 0 Cooperative advertising where national companies can share advertising expenses in a market with local dealers to achieve specific advertising objectives AKA Coop Advertising 0 ie Intel Sony ADVERTISING AS A BUSINESS PROCESS How does advertising relate to and affect major areas of strategic decisionmaking and key outcomes in business ie the marketing mix brand management STP marketing revenues and profits Advertising plays a critical role in Advertising is important but it s only one of the major areas of marketing responsibility and it s only one of many different IBP tools relied on in the marketing mix a brand in many ways is the most precious business asset owned by a firm It allows a firm to communicate consistently and efficiently with the market Brands are worth much more than their dollar worth They have value So advertising creates value and proves to play a critical role in brand management process of breaking down a large widely varied market into submarkets or segments that are more similar in terms of consumer characteristics 0 Advertising role in the market segmentation process is to develop messages that appeal to the needs and desires of different segments and then to transmit those messages via appropriate media process of creating a perceived difference 0 In the mind of the consumer between a brand and its competition 0 Differences can also be tangible or be based on image or style factors 0 Being able to differentiate your product from competitors to make a consumer buy it is the goal of advertising and their branding strategies in other words I The essential task for advertising is to develop a message that s different and unmistakably linked to a company s brand the process of designing a brand so that it can occupy a distinct and valued place in the target consumer s mind relative to other brands o The distinctiveness can be communicated through advertising 0 Consumers create a perceptual space in their mind of what brands they want to buy 0 Marketing is the only part of an organization that has revenue generation as its primary purpose 0 Advertising plays the part of helping create sales as part of the revenue generating IFOCESS 0 Advertising effects on profits comes about when advertising gives an organization greater exibility in the price it charges for a product or service I Advertising can help create exibility by 1 Contributing to economies of scale and 2 Helping create inelasticity of demand to price changes When a business creates largescale demand for a brand the quantity of product produced is increased and EDS lead to lower unit production costs and shipping costs How advertising plays a role for a brand like Colgate is that with lower fixed costs per unit they realize greater profits on each tube sold The more you make of a product the cheaper production and shipping is and the more profit you get from the sale at the end THE ECONOMIC AFFECTS OF ADVERTISING GDP GROSS DOMESTIC PRODUCT is the measure of the total value of goods and services produced within an economic system 0 Advertising is related to GDP in that it can contribute to levels of overall consumer demand when it helps introduce new products like DVR s and cellphones which increase in sales on a regular basis with each new innovation in their respective product categories Value is the password for successful marketing 0 It s a perception by consumers that a brand provides satisfaction beyond the cost to buy product CH1 ADVERTISING AND IMC INTEGRATED MARKETING COMMUNICATIONS is the broader picture of Advertising It includes a lot of promotional tools that show and get consumers to buy a brand continue to buy a brand and be loyal to it 0 Process of using many promotional tools in a unified way so that a synergistic communication effect is createdquot PROMOTION is the coordination of all sellerinitiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea PROMOTIONAL MIX 1 ADVERTISING promotional tool to get others to buy a product one to many 2 DIRECT MARKETING organizations communicate directly with target consumers to generate a response and or a transaction 3 INTERACTIVE INTERNET MARKETING the interactive nature of this IMC tool is one of its major advantages 4 SALES PROMOTION involves marketing activities that provide extra value or incentives to the sales force the distributors or the ultimate consumer and can stimulate immediate sales sweepstakes or coupons 5 PUBLICITY PR media exposure cheaper than advertising mass mediated but not paid for time and space like advertising 6 PERSONAL SELLING most expensive IMC tool provides immediate feedback one to one What important factors have contributed to the IMC MOVEMENT INTEGRATED BRAND PROMOTION is the use of many promotional tools in a coordinated manner to build and maintain brand awareness identity and preference CH3 History of Advertising amp Promotion Advertising History Four basic in uences that gave rise to advertising 0 society must rely on capital for markets stimulating demand for firms offerings instead of competitors began 1750 s to late 1800 s production important and has expanded 0 manufacturers gained power Ivory soap Oreo Levi s brand names first very popular at the start rise with telegraph in 1884 growing connection across states first print media What did the Industrial Revolution involve What societal developments occurred during this time and how did they affect advertising Industrialization Era 18001875 0 Identifiable industries rapidly growing 0 Circulation of dailies grew fostered newspaper circulation 0 Advertising at an honorable practice PT Barnum Era 18751918 I 0 Consumer culturequot and modern ads were born 0 Ads used to stimulate demand for mass produced products 0 Sales of atent medicines boomed 0 The copy 0 Historical figures 0 RT Barnum Father of Advertisingquot Microsoft Calvin Klein knew how to make a message stand out 0 Claude Hopkins Scientific advertising believed advertising existed only to sell something and should be measured and justified by the results it produced The 1920 s 19181929 Advertising was Re ected prosperous times hedonism and modernity 0 Women were main target audience 0 Ads were more visual and social 0 Historical figures 0 Helen Resor introduced sexual contact in ads skin you love to touchquot Soap Co 0 Bruce Barton author The Man Nobody Knowsquot Jesus Christ Depression Era 19291941 0 Advertisin bi business reed amp lust Ads were h 0 The WheelerLea Amendments to the FTC Federal Trade Commission act reformed advertising 0 Radio emerged as advertising medium 0 The ad industry suffered dark days World War II amp the 50 s 194260 0 War advertisin 0 After WW2 0 Consumer 90 of US households owned televisions 0 Advertising was contradictory and scienceobsessed 0 Historical figures of this time 0 James Vicary motivational research worked in advertising held press conference said he figured out how to advertise subliminal messages for PopcornampCoke he collected retainers 45mil o Rosser Reeves handle promotions for Presidential Candidate Pain Relief ads Hard Sellquot Ad Strategy repetitive wording 0 Ernest Dichter motivational research focus groups Barbie doll Peace Love amp Creative Revolution 196072 in ad agencies 0 Advertising was clean and minimalist and featured simple copy and humor 0 Historical figures of this time 0 Bill Bernbach created new type of advertising most in uential turned car ads up making the small more attractive like the Volkswagen ads 0 Mary Wells art director and owned her own agency advertising agency realized its role in consumer society 1St woman to found an advertising agency 1970 s Era 19731980 0 Advertisin used triedandtrue st les and Hale industry consolidated 0 Additional regulation and protection of special audiences emer ed 0 Some social advancements seen in advertising 0 Historical figures of this time 0 Thomas I Burrell known for developing ads that relied upon the principle of positive realismquot 0 Byron Lewis ad agency owner African American both groundbreaking people with advertising world Designer Era 19801992 quotGordon Greckoadvertisin was ood 0 Advertising was 0 Ads conservatively 0 New communication 0 MTV and rapidcut editing style 0 Infomercials still actively promoted today 0 Some hip cynical punk in uences were seen set stage for ERevolution ERevolution Era 19932000 0 The 90 s featured phase 1 of the 0 Many predicted doom for traditional advertising 0 Advertising didn t use the internet as much before this time 0 The industry o Moved west from New York still a major advertising place but has increased growth in Chicago Minnesota Washington California and Dallas 0 90 s ads were 0 Selfparody became more common use of lighter content makes advertisements more involvedrelatable with the common consumer 2000 The dotcom bubble burst in 2000 0 Web 20 advertising has been more successful consumer generated Content 0 ex Frito Lay brand Doritos CGC The Great Recession has changed advertising 0 Ebusiness continues to grow much faster than before 0 Firms seek to connect with consumers in new alternative ways 0 Includes product placement during shows movies amp commercials Advertainment creates new opportunities in a cluttered advertising environment 0 Ex logos and contact info on working vans other nontraditional outlets to capture consumer attention to where they can t ignore ad 0 NOTE The fundamental purpose has not changed people still advertise to reach consumers and inform and persuade them to purchase products CH2 The Structure of the Advertising Industry Industry Trends 0 Basic chan es in the advertising industry stem from o involving more people in advertisements o o need to be smarter and creative by inventing new ways to reach consumers and filtering out old ways I ie Ads on paper towels in new movies places to where consumers can t avoid them 0 get consumers involved in marketing of product whether its testing or campaigning for product service 0 having advertisements reaching consumers by cell phones laptops tablets etc Industry Scope amp Structure are business not for profit and govt orgs that use advertising and other promotional techniques to communicate with target markets and to stimulate awareness and demand for their brands marketing research organizations function of media hasn t changed but physical qty has Disney Viacom etc 0 Last part of the structure TYPES OF ADVERTISERS o can be international regional local any org supplying service to other business and helps promotions O O ADVERTISERS aka clients as referred to by advertising agency 0 The advertising function may be performed 0 In house doesn t work out very well do this to reduce cost 0 Ala carte purchase adv service upfront ie Target has adv Agency 0 By a full service agency pay for specialty services handles all service ADVERTISING AND PROMO AGENCIES 0 An ADVERTISING AGENCY is an org of professionals who provide creative and business services to clients in planning preparing and placing ads 0 Full service agencies Creative boutiques Digital interactive agencies Inhouse agencies Media specialists OOOO I A FULL SERVICE AGENCY provides a wide range of services Account services Link between ad agency and the client Marketing research services Creative and production services Media planning and buying services Administrative services 00000 I A PROMOTION AGENCY is a specialized agency that handles promotional efforts 0 Direct marketing and database agencies Sales promotion agencies Eventplanning agencies Design firms Public relations firms 0000 0 Clients compensate advertising and promotion agencies for their services in different ways 0 Evaluation of Commission System 39ust on the basis of how much media costs 0 Media Bills Agency its Keeps emphasis on nonprice factors Encourages agencies to recommend highpriced media to clients Ties agency compensation to media costs Discourages the use of other IMC tools 0000 0 Evaluation of Markup Charges Method 0 Allows agencies to be compensated for services purchased from outside suppliers 0 Evaluation of Fee System 0 Requires the agency to carefully assess its costs and monitor their time o Involves upfront price negotiations and specifications of exact services to be rendered Evaluation of CostPlus System 0 Client receives a detailed breakdown of advertising expenditures I Requires careful cost accounting for the agency I Bids for a clients business can be difficult to estimate I Some agencies are reluctant to open their books 0 Evaluation of PayforResults system 0 Reduces reliance on traditional media advertising 0 Unites the interests of clients and agencies EXTERNAL FACILITATORS are organizations or individuals that provide specialized services to advertisers and agencies 0 Marketing and advertising research firms 0 Consultants 0 Production facilitators 0 Software firms MEDIA ORGANIZATIONS provide options for placing advertisements including everything from network television ads and national magazines to premiums ie keychains and local clothing I Broadcast Printed 0 Interactive Media 0 Media Conglomerates I Support Media
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