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Principles of Marketing Notes Week 13

by: Kelsey Bixler

Principles of Marketing Notes Week 13 MKTG 3310 - 001

Marketplace > Auburn University > Marketing > MKTG 3310 - 001 > Principles of Marketing Notes Week 13
Kelsey Bixler
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About this Document

These notes are for Principles of Marketing for week 13 (April 18th and 21st)
Principles of Marketing
Jeremy Scott Wolter
Class Notes
Principles, Of, Marketing, Wolter
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This 4 page Class Notes was uploaded by Kelsey Bixler on Monday April 4, 2016. The Class Notes belongs to MKTG 3310 - 001 at Auburn University taught by Jeremy Scott Wolter in Fall 2015. Since its upload, it has received 36 views. For similar materials see Principles of Marketing in Marketing at Auburn University.


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Date Created: 04/04/16
Principles of marketing week 13  The Communication process-  Noise- something that interferes with the message  With interpersonal communication you have to encode a message in a way that the receiver can decode it in the right way.  Fields of experience- your past is used to decode messages. If the sender and receiver have different fields of experience then miscommunication can occur.  Feedback- sender tries to asses weather the receiver understood the message  What does this have to do with marketing? Companies are trying to get their message across in a way that is relevant to the audience in order for them to decode the message they are trying to send. But advertising is usually miserable- it could be that the target market is different than you. If you don’t have the field of experience they are targeting then you won’t understand/enjoy it.  So what kind of noise can occur with advertising- people can just be completely tuned out to the advertising. The people you are watching a commercial with can influence your feelings on it- they may interpret it differently. The show that your watching can be noise- ex- Watching a sad Grey’s Anatomy episode and then a happy commercial comes on.  KFC Fresh is better commercial- seems like a good tagline- but it was played after a Walking Dead scene where a someone is being eaten by zombies- this is an example of noise- it actually kind of worked for them because it got them attention.  It can be detrimental to a brand for a commercial to play after a show scene ends on a very sad note. Promotion mix- • Advertising, Sales promotion, Public relations, Direct marketing • Advertising­ Any paid form of non­personal communication about an organization or product.   Sales promotion Short­term incentives to encourage the purchase or sale of a product. Encourages trail of the product. There is an idea that the lower the amount  that gets reimbursed through rebates (through the sales promotion) actually saves the  company money­ so sometimes companies try to maximize the amount of people who  won’t use the rebate. Is this a good tactic? By doing this you are decreasing the customer  experience­ shows lack of customer/marketing orientation­ you aren’t making it customer friendly  Personal selling- Personal customer interactions by the firm’s sales force for  the purpose of engaging customers, making sales, and building customer  relationships. Ex­ Books A Million­ as you are checking out the clerk will try to  sell you things. This happens with a lot of retail when the customer service’s  pension is based on how many things they sell­ priority is selling not customer  service.  Public relations­ Building good relations with the company’s various publics  by obtaining favorable publicity, building up a good corporate image, and  handling or heading off unfavorable rumors, stories, and events. Often trying to get  unpaid advertising. Ex­ Donald Trump gets millions worth of free advertising through the things he says/ does. Was can unpaid source work better­ unbiased sponsors seem more  credible. More impact. What could be a problem? You lose control – the news gets to  decide how they will spin something. You don’t know what sponsors are going to say.  Direct and digital marketing­ Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build  lasting customer relationships. In sometimes they try to maintain a value proposition to   the customers.   Postives and negatives of each­  Advertising: Reach / Cost Promotions: Purchase incentive / Bad for branding? Discounting a product in the minds  of a customers if you constantly discount the brand­ people won’t buy it unless its on sale PR: Credibility / Lack of control?­  Personal Selling: Customizable / Cost­ Personal interaction can be affective. But this can  be expensive Direct: Customizable / Low response?  Collecting data on people can show who you can  sell to. But a lot of these things that are sent out have very low responses.   Approximate spending in marketing in the US­  Advertising­ 49% $160b Promotion­ 12% $40b Digital­ 15% $50b Direct­ 13% $44b Sponsorship­ 6% $20b PR­ 2% Social Media­ 2% Cause­ 1% • Methods of Promotion budgeting­   Affordable method Percentage­of­sales method Competitive­parity method­ based on what your competitor parity  Objective­and­task method­ you’re going to determine your objective and how much  money you need to spend to get the outcome you want  Carefully blended mix of promotion tools­ we want to make sure all 5 things are  representing what the company stands for April 14   th  New York Times­ IPAD air ad shows someone scuba diving­ the Malaysia jet  falling into the ocean article right under it­ example of noise  Why do companies spend the most money on advertising? Reaches a lot of  people­( but the upfront cost is large)  GDP goes up­ spending on advertising goes up­ companies will have more money so they will have more to spend on advertising.   Designing the advertisement­ AIDA­ a good ad has­ Attention, interest, desire,  action.  There is a theory that if you do not have a strong enough action component­  meaning it pushes people to buy within the first 24 hours then your ad is useless.  Is this true­ not necessarily­ not all ads have a call to action­ some ads are meant  to build brand recognition.   Message content­ Rational appeals­( informational, persuasive, comparative)  Moral appeals, emotional appeal (fear, humor) sex appeals, bandwagon appeals.   Heinz ketchup ad­ informational­ they are just trying to say that they have the best ketchup  Bandwagon­ we have a need to be included­ bandwagon appeals tries to say you  should do this/buy this because everyone else is.   Coke Zero ad­ no appeal­ just a reminder ad­ getting the brand logo out there  Medial Mutual ad­ informational­ telling us that they are the health insurers for  the Indians  Dunkin donuts­ comparative  Mini Cooper and Porsche­ comparative­ trying to say that the mini cooper has  similar speeds etc­ as a Porsche­ Why should Porsche not do that? Don’t hit  down­don’t give credit to other brands?  The Porsche ad­ does it really help Porsche to compare itself to Mitsubishi and  Nissan? Some argue that it useless to do this. Questionable at best  McDonalds­ 4 bucks is dumb­ saying that spending that much money for coffee is dumb­ comparative.  Coke and Coke Zero­ A clear case of taste infringement­ rational appeal saying  that the Coke Zero tastes just like Coke and people like the taste of Coke  T­Mobile video chat­ informational  UNICEF commercial­ strong moral appeal. Also emotional appeal­ getting the  message across about girls getting married before they are 18 around the world.  Oreo­ Moral ad for gay pride   Ad to wear a helmet­ strong emotional appeal  Fear appeals­ companies will try to figure out peoples’ anxiety and build your  brand based on what your fears are­ Ex­ Insurance companies  Some people say that you should not have too strong of a fear appeal because  people may just tune it out. Ex­ some youth smoking commercials are so Ludacris that youths find it funny  But a lot of fear ads do work­ ex­ Don’t speed ad­ for a Dad it is especially  terrifying for and ad to imply a kid dying.   Humor Appeals­Humor appeals are similar to sex in that they must connect to the  product in a meaningful way…i.e. in a way that connects to reasons people  purchase.  Some people say you can go too far with humor. (I do not agree with these  people)  Muffin­ funny and loosely ties into the product  Mountain Dew kick start­ it ties in because it shows how it can give you energy  Carl’s Jr. –sex appeal commercial­ did it work for them­ It went viral­ so they got  attention but their ad did not drive sales at all.   First kiss ad­ sex aspect­ but it didn’t tie into the brand really  PETA­ used sex appeal­ got attention but did it work? Not really  Old Spice­ random and funny with sex appeal but it had a strong appeal 


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