EXAM 3 STUDY GUIDE
What is an index number? What is a category development index (CDI) and brand development index (BDI) and how are they used to make decisions about advertising? What does comparing them to each other tell you as an advertiser?
∙ During market analysis and target market identification, media planners must look at consumer information and media usage characteristics in population
∙ To whom will we advertise?
o The Index number is a good indicator of potential of the market and can show us segments to target
o If index number > 100 it means use of the product is proportionately greater in that segment than in one that is average (100) or less than 100
o Marketers may wish to use this information to determine which groups are using a product and target them or
identify a group that is using the product less and attempt to develop that segment
∙ In terms of geographic considerations, these indexes can help us decide where to promote.
∙ The brand development index (BDI) helps marketers factor the rate of product usage by geographic area into the decision process
o Brand development index (BDI): determines sales potential for a specific brand in a particular market area… higher BDI=great potential (example: Starbucks) Don't forget about the age old question of What is maslow's hierarchy of needs in order?
o Category development index (CDI): determines sales potential for product category in particular market area… higher CDI=great potential (example: coffee)
Don't forget about the age old question of It is a disorder that enjoys dressing as opposite sex, what is it?
Using CDI and BDI to determine market potential:
∙ When the CDI information is combined with the BDI, a much more insightful promotional strategy may be developed. The marketer analyzes the BDI to find how the brand is doing relative to other brands in this area…This information can then be used in determining how well a particular product category and particular brand are performing and figuring what media weight (or quantity of advertising) would be required to gain additional market share. If you want to learn more check out What are the four stages of getting a stimulus to the brain?
What are the 3 main types of advertising scheduling methods? What are their relative advantages and disadvantages? For which types of products is each one used?
Three Main Types of Advertising Scheduling Methods
∙ Primary objective of scheduling: Time promotional efforts so that they will coincide with the highest potential buying times ∙ Continuity: continuous pattern of advertising; every day, every week, or every month), no gaps or nonadvertising periods; may be used for food products, laundry detergents, and other products consumed on ongoing basis with no regard for seasonality If you want to learn more check out What is the sapir whorf hypothesis?
o (+) Constant reminder, covers entire buying cycle, more effective than flighting & pulsing, important if goal=build awareness of new products/issues
o (-) High costs, potential for overexposure (inefficiency), media availability
∙ Flighting: intermittent periods of advertising and no advertising o (+) Cost effective, suited to seasonal products or products consumed mostly during certain time periods If you want to learn more check out What is the preparation of phenols?
o (-) Increased likelihood of wearout, lack of
awareness/interest/retention during off-times, vulnerability to competing messages during off-times
∙ Pulsing: combination of both; continuity maintained but at certain periods advertising is increased/stepped up; ex: beer companies may increase advertising during holiday periods
o (+) Consumer response processes that begin with attitudes (affinity model) and target valued customers often only require pulsing, may be used for products w/ little sales variation from period to period, but may seem some Don't forget about the age old question of What are the major organs in the cardiovascular system?
increase in certain times (cold beverages in hot summer months)
o (-) Moderately expensive; some overexposure, not appropriate for highly seasonal products
What are reach and frequency? How do marketing, media, and message factors determine the relative frequency of your advertising?
Reach vs. Frequency
∙ Due to budget constraints, advertisers often have to make trade offs between reach and frequency
∙ Have to decide if they want message to be seen/heard by more people (reach) or by fewer people more often (frequency of exposure)
∙ Reach: exposing potential buyers to the message
∙ Frequency: number of times one is exposed to the media vehicle or ad
∙ Most advertisers believe minimum frequency of 3 exposures is needed-maybe as high as 12
∙ Unduplicated research: number of people exposed once when ad is placed on multiple shows
∙ Duplicated research: number of people reached by multiple shows
∙ Program Rating: measure of potential reach in the broadcast industry
∙ Gross ratings points (GRPs): total audience the media schedule may reach; the frequency of exposure; GRP=Reach X Frequency
∙ Target ratings points (TRPs): number of people in primary target audience the media buy will reach; the frequency of exposure; TRP=Targeted Reach X Frequency
∙ Effective Reach: represents percentage of vehicle’s audience reached at each effective frequency increment (3-10 exposures) ∙ Average frequency: average number of times the target audience reached by a media schedule is exposed to the vehicle over a specified tiem
∙ Recency planning: focusing on short interval reach at minimum frequency levels as close to purchase decision as possible ∙ Marketing Factors
o Brand history. Is the brand new or established? New brands generally require higher frequency levels.
o Brand share. The higher the brand share, the lower the frequency level required.
o Brand loyalty. The higher the loyalty, the lower the frequency level required.
o Purchase cycles. Shorter purchasing cycles require higher frequency levels of maintain top-of-mind awareness.
o Usage Cycle. Products used daily or more often need to be replaced quickly, so a higher level of frequency is desired. o Competitive share of voice. Higher frequency levels are required when a lot of competitive noise exists.
o Target group. The ability of the target group to learn and to retain messages has a direct effect on frequency.
∙ Marketing Factors for Frequency:
o Need higher frequency: high usage cycle, high competition, new brands
o Need lower frequency: high brand loyalty and market share, high ability to process/recall messages, low usage cycle
∙ Message/Creative Factors for Frequency:
o Need higher frequency: new campaign, image advertising, complex/varied messages
o Need lower frequency: continuing campaign, simple/single messages, uniqueness, potential for wearout, larger
∙ Media Factors for Frequency:
o Need higher frequency: lots of clutter
o Need lower frequency: alignment with media content, continuous scheduling, fewer media, high attention levels, repeat exposures
Frequency of Exposure vs. Reach
How do you determine the relative cost of advertising in broadcast and print media?
∙ Relative cost of advertising in print media
o Cost per thousand (CPM)
∙ Relative cost of advertising in broadcast media
o Cost per rating point (CPRP)
Know the key definitions of terms used to measure TV audiences and how to calculate TV audience ratings and shares as shown in class.
∙ Television households: estimate of the number of households in a market that own a television or computer that can be used to watch TV shows
∙ Program rating: percentage of TV households in an area that are tuned to a specific program during as specific time period o Calculated by dividing number of households tuned to a particular show by total number of households in area o Rating point represents 1% of all TV households in a particular area tuned to a specific program (1 rating
point=1,147,000 household nationally)
∙ Households using TV (HUT): percentage of homes in a given area where TV is being watched during a specific time period ∙ Share of audience: percentage of households using TV in a specified time period that are tuned to a specific program
What are the promotional advantages and disadvantages of TV, radio, newspapers, and magazines?
Mass coverage, high
reach, impact of
sight/sound/motion, high prestige, low cost per exposure, attention
getting, favorable image
Low selectivity, short
message life, high
absolute cost, high
production costs, clutter
Local coverage, low cost, high frequency, flexible, low production costs, well segmented audiences
Audio only, clutter, low attention getting, fleeting message
Segmentation potential, quality reproduction, high information content,
longevity, multiple readers
Long lead time for ad
placement, visual only, lack of flexibility
High coverage, low cost, short lead time for placing ads, ads can be placed in interest sections, timely (current ads), reader
controls exposure, can be used for
Short life, clutter, low attention-getting
selective reader exposure
What are some pros and cons of using the Internet for promotion and marketing?
∙ Target Marketing: ability to target specific groups of individuals with minimum of waste coverage
∙ Message Tailoring: messages can be designed to appeal to specific needs/wants of target audience, social media makes it possible to carry on one-to-one marketing
∙ Creativity: creatively designed sites can enhance company’s image, lead to repeat visits, and positively position
company/organization in consumer’s mind
∙ Interactive Capabilities: interactive media provides strong potential for increasing customer involvement, engagement, and satisfaction and almost immediate feedback for buyers/sellers
∙ Information Access: users can get a wealth of information from visiting particular sites
∙ Sales Potential: online shopping (Amazon, eBay)
∙ Exposure: companies can gain national and even international exposure in a timely manner
∙ Speed: Internet is quickest means of acquiring/providing information about company, products, and/or its service offerings ∙ Complement to IMC: these media support and are supported by traditional media
∙ Measurement problems: lack of reliability of research numbers generated
∙ Privacy: personal data that is provided to markets, sometimes without users’ knowledge, creates controversy
∙ Clutter: many ads may not get noticed, and some consumers are irritated by clutter
∙ Irritation/Annoyance: consumers’ discontent with clutter, e mail spam, and pop-ups and pop-under
∙ Potential for deception
What is Web 2.0 - how does it differ from the older Internet marketing? What are some examples of how it is used for promotional purposes?
∙ “The term Web 2.0 is commonly associated with Web applications that facilitate interactive information,
interoperability, user-centered design, and collaboration on the World Wide Web. A Web 2.0 site allows its users to interact with each other as contributors to the website’s content, in contrast
to websites where users are limited to the passive viewing of information that is provided to them. “
∙ “Rich” Media: broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation (online commercials, video on demand, webisodes, games)
∙ Shifted power of media from publishers to consumers ∙ Enhanced creativity, information sharing, collaboration among users
∙ Blurred boundary b/t interpersonal and mass communication ∙ Increased use of social media
∙ Examples: YouTube, Facebook, Myspace, Interactive brand websites, etc.
How is Web 2.0 different from older Internet marketing? ∙ Creating “pull” environment instead of “push”
o Web sites are vehicle by which to establish brand equity o Provide you with features to keep you there longer; The longer you stay at the site, the greater the brand
o The greater the brand impression, the greater the likelihood you will begin to gain knowledge, establish an attitude, and engage in the intended behaviors (KAB) ∙ New types of Media
∙ Creating Feature Entertainment
o Online advertainment: people persuade themselves by engaging and immersing in persuasive narratives
∙ Website as “Lifestyle”
o Create an environment in which a brand or product is presented within the context of a multifaceted lifestyle ∙ Gamification
o Use of game thinking and game mechanics in a non-game context in order to engage users
o Leverage people’s natural desires for competition, achievement, status, self-expression, altruism, and closure o Fueled by growth of mobile devices
Sales Promotion on the Internet
∙ Numerous companies tie in sales promotions to their websites and through other forms of digital/social media
∙ Online coupons are now the second most highly redeemed form of coupon
∙ Other examples: use of trivia games, contests, sweepstakes, instant win promotions, etc.
What are the two primary theoretical perspectives most often employed to understand the effects of brand websites on consumers? What are the main personal and website factors that determine the effectiveness of a brand website?
∙ Cognitive Response Model:
o Ad Execution Thoughts
o Source Oriented Thoughts
o Attitude towards website influences attitudes about brand
∙ ELM (Central vs. Peripheral Route)
o Individual involvement
o Ability (need for cognition)
According to reading and lecture, what is the difference between “bought” media, “owned” media, and “earned” media?
∙ “Bought” media: brand pays to leverage a channel o The role: shift from foundation to a catalyst that feeds owned and creates earned media
o Examples: display ads, paid search, sponsorships
∙ “Owned” media: channel a brand controls
o The role: build for longer-term relationships with existing potential customers
o Examples: Website, Blogs from the company
∙ “Earned” media: when customers become the channel o The role: Listen and respond- earned media is often the result of well-executed and well-coordinated owned and bought media
o Examples: Social Media, Blogs from customers
∙ Chart: http://blogs.forrester.com/interactive_marketing/2009/12/definingearned ownedandpaidmedia.html
According to the reading and lecture, what are the seven types of social media functionality and their corresponding implications for organizations? According to these categories, what are the primary differences between YouTube and Facebook?
Seven Types of Social Media Functionality:
∙ Represents extent to which users reveal their identities in a social media setting
∙ Can include disclosing information such as name, gender, age, profession
∙ The extent to which users communicate with other users in a social media setting
∙ The extent to which users exchange, distribute, and receive content
∙ The extent to which users can know if other users are accessible
∙ Knowing where others are in the virtual world and/or the real world
∙ The extent to which users can be related to other users ∙ ‘Relate’ refers to 2 or more users having some form of association that leads them to converse, share objects of sociality, etc
∙ Extent to which users can identify the standing of others, including themselves, in a social media setting
∙ Extent to which users can form communities and sub communities
Primary differences between Youtube/Facebook: ∙ YouTube is primarily about sharing
∙ Facebook is primarily about relationships
∙ Next important for YouTube: conversations, groups, reputation
∙ Next important for Facebook: presence, identity,
conversations, and reputation
∙ Youtube: concerned with presence, relationships, and identity
∙ Facebook: concerned with sharing and groups
What are the advantages of word of mouth as a promotional channel? What is social capital and why is it important? What are market mavens and social hubs and why are they important? Difference between strong and weak ties?
∙ The growth of Web 2.0 / Social Media = leveraging the Internet to create “buzz” – people talking about your brand to others ∙ WoM is the richest form of communication and is the most influential - 7x more effective than tradition print advertising ∙ Generating “buzz” through a campaign increases recall, engagement, motivation, persuasion
∙ Social capital: utility derived from social connections to achieve goals
o Use it to promote given object/objective
o Spread your message within network of associations, and the audience will be doing the promotion for you (plant the seed!)
o We are often willing to promote a given brand, even when we receive no immediate benefit from the act!
∙ Market Mavens = Opinion Leaders
o Center of networks, access to a large amount of market information and proactively engage in conversations with others – first to receive the message and transmit it to others
∙ Social Hubs – Network Bridges
o These are the people who know everyone “well connected” - “6 degrees of separation” – connect different subgroups and networks
∙ Social Ties
o Strong ties: your strongest and most immediate social connections (e.g., close friends, nuclear family
o Weak ties: your more distant connections, perhaps even indirect (e.g., acquaintances, distant relatives)
Social media facilitates weak ties that may not exist otherwise
o Both serve specific purposes for you (i.e. weak ties help people find jobs)
What is the definition viral marketing and what are its promotional objectives? Why is it called viral marketing and what is its relationship with word of mouth?
∙ Viral marketing: act of propagating marketing-relevant messages through the help and cooperation of individual consumers
∙ Has become synonymous with word-of-mouth, but is more strategic
∙ Need to think about it as more complex activity than just getting more and more people to talk about whatever you are promoting
∙ Viral marketing attempts to tap into our existing social networks and to feed off of one’s social capital (social ties) to promote an object
∙ The key is not just to get people to talk about the object of the promotion, but them to continue to spread the “virus” in specific ways and exponentially (i.e. 2,4,8,16,32…)
What are some common characteristics of viral marketing campaigns – what makes an effective viral message? What is “Dunbar’s Number” and why is it important to viral marketing?
∙ Common message strategies for viral marketing campaigns: o Aversive: individuals getting hurt and/or embarrassed o Uncertainty: Polarized views leading to discussion o Affirmation: Validation/Belonging
o Appetitive: Funny, cool content
∙ Dunbar’s Number – the cognitive limit to the number of people with whom we can maintain stable social relationships (@150) ∙ Messengers will only pass on message when they think its not already something everyone knows about
o Don’t seed too widely
o Focus on message strategy
o Seed among disconnected online subcultures or groups o Heightened vested interest of influencers/hubs leads to a reduction of negative reactance among the rest of the members of the network
o They are more open to the message, view it as more credible, and less likely to counter-argue the message
Weaknesses of viral marketing?
∙ What traits, motivations, attitudes, and behaviors are more likely to work?
∙ Inability of audience to tie message back to source? ∙ Lose control over message? Distorted through network? ∙ Boomerang: create negative-word-of-mouth?
∙ Strong enough to stand on its own?
∙ Quantification of success- viewership, increased sales, unsolicited mentions, etc.
What is guerilla marketing and its promotional objectives...how does it differ from viral marketing?
∙ Unconventional and low-budget brand experiences designed to grab attention and create “buzz” and/or publicity/attention
∙ Employ creative methods to reach people where they work, live, walk with “high” impact messages
∙ Different from viral: goal is not necessarily persuasive nor to leverage social networks – more “mass” comm than
interpersonal: more of “hey, would you look at that” and tends to not go much further
Definition of public relations and marketing public relations (MPR)? Functions of MPR? Benefits and disadvantages of MPR?
∙ Public Relations: management function which…
o Evaluates public attitudes
o Identifies the policies and procedures for an organization with public interest
o Executes a program of action to earn public understanding and acceptance
∙ Integration of PR into the Promotional Mix
∙ Marketing Public Relations Functions
o Building market excitement before media ads break o Creating news where there is no news
o Introducing a product with little or no advertising
o Building brand-to-customer bonds
o Influencing influential, giving info to opinion leaders o Defending products at risk, giving consumers reasons to buy
∙ Benefits of MPR
o A cost-effective way to reach the market
o Breaks through the clutter
o Highly targeted way to conduct public relations
o Endorsements by independent third parties
o Achievement of credibility
o Makes advertising messages more credible
o Circumvents resistance to sales efforts
o Improved media involvement with customers
o Creates influence among opinion leaders
o Improved ROI
∙ Disadvantages of MPR
o Lack of control over media coverage
o Difficult to tie in slogans or other advertising devices/lack of coordination with marketing department
o Media time and space aren’t guaranteed
o Receiver not making connection to the source
o No standards for effective measurement
What are internal/associated vs. external/independent audiences for MPR and what channels may you use to communicate with each type?
∙ Channels used to communicate with each type:
o Internal/Associated: Newsletters, Bulletin Boards, Direct mail/Email, Annual Reports
o External/Independent: Public relations ads, Press releases, Conferences, Research Reports
∙ Examples of PR tools
o Press releases
o Press conferences
o Community Involvement
o The Internet
∙ Common ways to measure PR effectiveness
∙ Ratio of positive to negative articles
∙ Number of impressions
o Over time
o On the target audience
o On specific target audiences
∙ Percentage of…
o Positive articles over time
o Negative articles over time
∙ Percentage of positive and negative articles by…
o Target audience
What is publicity, how does it differ from public relations? What is media relations and why important? Pros and cons of publicity?
∙ Publicity: the generation of news about a person, product, or service that appears in the media
o A short-term strategy
o A subset of public relations
o Not always positive
o Often originates outside the firm
∙ Media relations: maintaining a positive professional relationship with the media in general or with media that specialize in covering specific industry
o The challenge: getting past media gatekeepers…editors and reporters who select (or reject) stories for their
publications or stations based on what they think will interest their audiences
o “Press isn’t interested in products, but in ideas and trade” ∙ Pros of Publicity:
o Substantial credibility
o News value
o Significant word-of-mouth
o Perception of endorsement by media
∙ Cons of Publicity
o Timing difficult or impossible to control
o Inaccuracy, omission, or distortion may result
What is corporate advertising and how does it differ from other types of advertising? What are its primary goals/objectives? What are the main types of corporate advertising and examples (i.e. advocacy, sponsorship, cause-related, image, etc)? What are pros and cons of corporate advertising?
∙ Objectives of Corporate Advertising:
o Smooth labor relations
o Establish diversified company identity
o Create a positive image for the firm
o Communicate the organization’s viewpoint
o Boost employee morale
∙ Types of Corporate Advertising:
o Image Advertising (General Image Ads, Positioning Ads, Sponsorship, Recruitment, Financial Support)
o Event Sponsorship
o Advocacy Advertising
o Cause-related Advertising
∙ Advantages of Corporate Advertising
o Excellent vehicle for positioning the firm
o Takes advantage of benefits derived from public relations o Reaches a selected target market
∙ Disadvantages of Corporate Advertising
o May have questionable effectiveness
o Raises questions of constitutionality and ethnics
o Lack of consumer interest
How is “support media” defined? What are examples of “support media?” What is branded entertainment?
∙ “Support media”: used to reach people in the target market the primary media may not have effectively reached and to reinforce, or support, their messages
o Some of these media are not used only for support, but for some companies may be the primary or sole medium used o Uses variety of non traditional channels to deliver
communications and to promote products/services
o To reach people in target audience that primary media (TV, print, etc.) may not have effectively reached and to
reinforce, or support, their messages
o Sometimes called “out-of-home advertising”
∙ Traditional Support Media
o Outdoor advertising
o Alternative Out-of-Home Media (aerial advertising, mobile billboards)
o In-store Media (in-store ads, aisle displays, store leaflets, shopping cart signage, in-store TV)
o Miscellaneous Outdoor Media
o Transit Advertising (inside cards, outside posters,
o Advertising in Movie Theaters
∙ Nontraditional Support Media
o Branded entertainment: form of entertainment that blends marketing and entertainment through TV, film, music talent, and technology
Advertainment (creation of audio-visual content to entertain users while advertising products)
Ad-supported video on demand (VOD)
o Advantages of branded entertainment
o Support for other media
o Source association
o Bypassing regulations
o Acceptance and targeting
o Disadvantages of branded entertainment
o High absolute cost
o Time of exposure
o Limited appeal
o Lack of control
o Public reaction
o Negative placements
o Guerrilla Marketing
What are some factors that have contributed to billboard advertising success?
∙ Increase in number of:
o Women in the workforce
o Vehicles on the road
∙ Ability to remain innovative through technology
∙ Pros of Outdoor Advertising:
o Wide local coverage
o High frequency
o Geographic flexibility
o Creation of awareness
o Sales effectiveness
o Production capability
o Mood of the audience
What are some advantages and disadvantages of support media?
∙ Advantages of Outdoor Advertising (above)
∙ Disadvantages of Outdoor Advertising
o Waste coverage
o Limited message capabilities
o Measurement problems
o Image problems
∙ Advantages of Transit Advertising
o Long length of Exposure
o High frequency
o Low relative Cost
∙ Disadvantages of Transit Advertising
o Mood of the audience
What is the definition of direct marketing? What are some factors contributing to its growth?
∙ Direct marketing: an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location
∙ Ex: interactive TV, The Internet, Telemarketing, Print, Direct Mail ∙ Direct-response media: tools by which direct marketers implement the communication process
∙ Factors contributing to Direct Marketing Growth:
o Growth of consumer credit cards
o Changing structure of society – “money rich” and “time poor”
o Technological advances – Internet and Databases
What do we mean by one and two-step approaches to direct marketing? What at are two metrics that can be used to assess the effectiveness of direct marketing?
∙ Direct Marketing Approaches
o One-step approach: medium is used directly to obtain an order
o Two-step approach: uses more than one medium
First effort: screens potential buyers
Second effort: generates the response
∙ Evaluating the Effectiveness of Direct Marketing: o Cost per order (CPO): evaluates the relative
effectiveness of an ad based on the number of calls
o Customer Lifetime Value (CLTV): determines the dollar value associated with a long-term relationship with a customer
Helps determine if a customer should be acquired
Optimizes existing customers’ service