Marketing Communications Exam Notes PDF

Marketing Communications DECK 1 Brand: is a promise of an experience; perceived identity; sets companies apart. How do we effectively communicate brands? 1. Connection: select the best way to reach the audience; find the best channels to be in memory for a longer period of time. Higher at...

Marketing Communications DECK 1 Brand: is a promise of an experience; perceived identity; sets companies apart. How do we effectively communicate brands? 1. Connection: select the best way to reach the audience; find the best channels to be in memory for a longer period of time. Higher attention levels promote longer campaign memory (increase the number of days in memory). 2. Context: when? how? Additional elements provide the context as our brain navigates; Right environment; different types of messages for different contexts. 3. Content: what do we have to say that is relevant about the brand? Inspiring, entertaining, educational, etc. Delivers better experiences. Should have a purpose Integrated Marketing Communications (IMC): is the coordination of the promotional mix elements with each other and with other elements of the brand’s marketing mix such that all elements speak with one voice. Promotional Mix: is the blend of advertising, public relations, sales promotion, personal selling, direct marketing, and digital marketing/social media elements usually aimed at a specific target market. ➔ Advertising: is a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future. This includes mass media outlets such as television, magazines, newspapers, and out-of-home. ➔ Public Relations: is an organizational activity involved with fostering goodwill between a company and its various publics (e.g. employees, suppliers, consumers, government agencies, stockholders). ➔ Sales Promotions: refers to all promotion activities (excluding advertising, public relations, personal selling, direct marketing, and digital marketing/social media/) that stimulate short-term behavioral responses from: ◆ consumers; ◆ the trade - distributors, wholesalers, retailers. ◆ the company’s sales force.  ➔ Digital Marketing: is the promotion of products and services over the internet. ➔ Social Media: refers to forms of electronic communication through which user-generated content can be shared within the user’s social network. ➔ Personal Selling: is a paid, person-to-person communication in which a seller determines the needs and wants of prospective buyers and attempts to persuade these buyers to purchase the company’s products or services. ➔ Direct Marketing: represents an interactive system of marketing that uses one or more advertising media to produce a measurable response and/or transaction at any location. ◆ Direct response: advertising involves the use of any of several media to transmit messages that encourage buyers to purchase directly from the advertiser. Why integrate IMC? It is worth practicing because it can create synergy. In other words, multiple communication tools in conjunction with one another can produce greater results than tools used individually and in an uncoordinated fashion. Not all brand managers or their firms are equally likely to adopt IMC. ○ Experienced managers: are more likely than novice managers to practice IMC. ○ Firms involved in marketing services (rather than products) and B2C (vs B2B) companies are more likely to practice IMC. ○ More sophisticated companies are likely adherents to IMC. Types of Media Owned: what we have; created by us: social media channels, website. Paid: something that we think we need and then create. Earned: our brand is mentioned but we do not influence the dialogue. 5 Key Factors of IMC 1. Begin with the customer: personalization and authenticity of marcom messages are important in gaining customer trust and engagement. Mass media is not always the solution. ○ Explore other ways. 2. Use any form of relevant contact: IMC practitioners need to be receptive to using all forms of touchpoints, or contacts, as potential message delivery channels. Overall, the IMC objective is to reach the target audience efficiently and effectively using touchpoints that fit the audience. Consumer decision journey: 1. awareness 2. familiarity 3. consideration 4. purchase  5. loyalty 3. Speak with a single voice 4. Build relationships: a relationship is an enduring link between a brand and its customers. Successful relationships between customers and brands lead to repeat purchasing and, ideally, loyalty toward a brand. 5. Focus: affect behavior: IMC must do more than just influence brand awareness or enhance consumer attitudes - the objective is to move people to action. Fundamental Marcom Decisions: influence decisions (targeting, positioning, setting objectives, and budgeting) influence implementation decisions regarding the mixture of communications elements and the determination of messages, media, and momentum. 1. Targeting: allows precision on message delivery and avoids wasting effort on wasted reach outside the intended audience. 2. Positioning: a brand’s position represents the key feature, benefit, or image that it stands for in the consumer’s or target audience’s collective mind. The brand must define a central idea that represents its distinctiveness vs competitors. 3. Setting SMART Objectives: the choice of appropriate marketing communications tools and media naturally flows from the answer to the following key question: What are the communications supposed to do or accomplish? 4. Budgeting: is calculating the resources needed to accomplish the objectives we’ve previously defined. Budget setting can be performed using different methods: ★ Affordable: invest what is possible; subtract fixed and variable costs from revenue. ★ % of sales: based on a percentage of estimated sales. ★ Competitive parity: based on the competition investments. ★ Objective and task: sum of the individual budgets needed for each task. Marcom Outcomes Enhancing Brand Equity ↔ Affecting Behaviour All Marketing Communications should be: Directed to a specific target market; Clearly positioned; Created to achieve a specific objective; Undertaker to accomplish the objectives within the budget. Brand: represents a name, term, sign, symbol, design, or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competition. Brand Equity is the goodwill that an established brand has built up over its existence. Equity = Value to the various stakeholders. Results: market share, brand loyalty, premium price elasticity, revenue, etc. BRAND KNOWLEDGE MODEL 1. Brand Awareness: is an issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked. 2. Brand Image: represents the associations that are activated in memory when people think about a particular brand. These associations can be conceptualized in terms of type, favorability, strength, and uniqueness. Brand Awareness Pyramid: Balance Between Branding and Sales Activation ➔ Sales Activation - short term: target people primed to buy; trigger immediate action. ◆ behavioral prompts: action now; ◆ facts, reminders, signposts, nudges; ◆ minimal impact on feelings and mental availability; ◆ reliers on in-market interest for impact; ◆ product information, specs, and details; ◆ creates a sense of urgency and FOMO ➔ Brand Building - long term: reach people before they buy; change how they think and feel. ◆ emotional priming: brand associations that accumulate to influence future behavior; ◆ emotional response: warmth, humour, empathy, enjoyment, drama; ◆ clear impact on feelings and mental availability; ◆ generates interest outside of purchasing;  ◆ memorable in various life situations. DECK 2 Environmental Marketing Communications: people are concerned with the depletion of natural resources, the degradation of the physical environment, and sustainability. Companies are responding to environmental concerns through green marketing, which means introducing environmentally oriented and undertaking aggressive marketing communications programs. Green Marketing: ➔ Green Advertising: ➔ Packaging: is becoming more and more important ➔ Seal-Off approval programs: organizations around the world have designed programs to assist consumers in identifying environmentally friendly products and brands. ➔ Cause-oriented programs: sponsorship marketing is when companies sponsor or support worthy environmental or social programs in order to generate goodwill about the company or its brands. ➔ Point of Purchase: a better understanding of retailers’ point-of-purchase needs would lead to fewer unused and discarded displays and increased use of permanent displays. Ethical Issues: detect greenwashing signs: is the company transparent? are its goals direct and quantified? do they understand the company’s role in battling climate change and are they willing to choose the planet pver profits? STP - Marketing Segmentation Triangle 1. Segmentation: identify bases to segment in the market; develop profiles of resulting segments. ★ Behavioral: segmenting people based on how they behave. ★ Psychographic: consumers’ attitudes, values, motivations, and lifestyles as they relate to buying behavior in a particular product category. ★ Geodemographic: people who reside in similar areas, such as neighborhoods or postal zip code zones, also share demographic and lifestyle similarities and general marketplace behaviors. ★ Demographic: age, social class, ethnicity. CONCERNS: age structure of the population; change in household composition - new family organization; ethnic population developments - how do they respond?  2. Targeting: 2 ways of growing: ★ Increase sales in the existing market; ★ Recruiting new people - growth targets. 3. Positioning: is the key feature, benefit, or image that the brand stands for in the target audience’s mind. Positioning must be part of both creative and media briefs. 5 Functions of Advertising: 1. Informing: advertising makes consumers aware of new brands, educates them about a brand’s distinct features and benefits, and facilitates the creation of positive brand images. It achieves this largely by increasing consumers’ top-of-mind awareness. 2. Influencing/Persuading: advertising influences prospective customers to try advertised products by stimulating primary demand. 3. Reminding and Increasing salience: advertising keeps a company’s brand fresh in the consumer’s memory. It makes a brand more salient by enriching the memory trace for the brand. brand salience: the exuberance of a brand comes from its relevance in consumer’s mind. More than a memory, it incorporates that consumers recognizes it or remembers it in the purchase decision moment. For that to happen, this mental structure needs to be addressed uphand, promoting a kind of structure that is easily recognized and remembered. 4. Adding value: there are 3 basic ways by which companies add value to their offerings: innovative, improving quality, and altering consumer perceptions, advertising adds value by influencing perceptions. 5. Assisting other company’s efforts: advertising’s primary role is at times to facilitate other marcom efforts. Advertising Management: advertising function alternatives: in house advertising operation; purchase services as needed; use an advertising agency. In house or Agency? size of the account; media budget; objectivity; product complexity; creative competence. Agency Types of Services: ➔ Creative Services: agencies have staffs of copywriters, graphic artists, and creative directors who create advertising copy and visualizations. ➔ Media Services: includes developing the best media plan for reach, frequency, and budget objectives. Media buyers the procure specific vehicles within particular media that have been selected by media planners and approved by clients. ➔ Research services: in full-service agencies, research specialists study customer buying habits, purchase preferences, and responsiveness to ads. They use a variety of research methods. ➔ Account Management: account managers provide the mechanism to link the agency with the client. Selecting an Agency: ★ establish objectives; ★ make a list of agencies to invite; ★ ask preferences; ★ reduce the list to 2 or 3 agencies; ★ launch selection process (pitch); ★ select. Common Mistakes: ★ unclear objectives; ★ inviting too many agencies - time and effort; ★ avoiding references and ending up to agencies out of scope; ★ unclear parameters - unable to compare proposals; ★ pitch for various exercises - unfair practices. Why criteria should used to evaluate an agency? ★ dimension; ★ relevant experience; ★ conflicts of interest; ★ market awareness, reputation and skills; ★ production competence; ★ media buying competence (if it is a media agency); ★ additional services available; ★ client retention; ★ empathy. Agency Compensation Models: Fee-based on media investment; Labour based fee (hours); outcome fee (base fee + variable); others: project, mixed models, etc. Effective Advertising: is being creative with a purpose. ➔ it must extend from a sound marketing strategy; ➔ effective advertising must take the consumer’s view; ➔ it finds a unique way to break through the clutter; ➔ never promises more than it can deliver; ➔ it prevents the creative idea from overwhelming the strategy 3 Elements of Creativity: 1. Connectedness: whether an advertisement reflects empathy, creates a bond, and is relevant to the target audience’s basic needs; 2. Appropriateness: an advertisement must provide information that is pertinent to the advertised brand relative to the other brands in the product category. 3. Novelty: novel ads are unique, fresh, and unexpected. The Creative Brief: ★ Context; ★ Objectives; ★ Target Audience; ★ Message; ★ Support Elements; ★ Insight; ★ Timing; ★ The “must haves”. STIMULI: ➔ Humor: excellent for attention-grabbing; scores high in ad recall tests. ➔ Sex: subliminary techniques; nudity; suggestion; sexuality; sensuality. ➔ Music: intrusive value; sparks attention and increases visual retention; might add persuasiveness. ➔ Rationality: highly used in press and digital; based in hierarchy effect model; very relevant for complex products and high involvement purchases. ➔ Scarcity: limited availability; shot time for acquisition; association with promotions; call for action from consumers. ➔ Emotions: attention is fragmented; any rational messages are not effective; emotions are linked to attention; emotions might be used to develop loyalty. DECK 3 Free to Air TV Advantages: ★ reach generator; ★ awareness producer; ★ low cost per contact; ★ brings prestige; ★ linear or non linear consumption.  Disadvantages: ★ high entry cost; ★ broad content, low segmentation; ★ usually high production costs; ★ longer messages are more expensive; ★ high advertising saturation. Time Shift: information and sports seen live; series and entertainment in time shift; world premieres try to minimize it. Pay TV Advantages: ★ lower acces cost; ★ segmentation; ★ high penetration; ★ easy brand integration with content. Disadvantages: ★ highly fragmented audiences; ★ low individual reach; ★ streaming as a threat; ★ high production costs. Audio Advantages: ★ sustains frequency, promotes memorization; ★ accessible entry costs; ★ low cost per contact; ★ efficient to impact commuters; ★ digital and social link. Disadvantages: ★ average reach results; ★ declarative audience study; ★ needs new formats, beyond study; ★ needs new formats, beyond spots; ★ message needs repetition to effective. Print Advantages: ★ segmentation; ★ thematic affinities; ★ message detailing;  ★ longer exposure time. Disadvantages: ★ highly fragmented; ★ limited offer in some segments; ★ some titles are highly saturated; ★ low progression on reach building; ★ exposure time is controlled by the reader. Out of Home Advantages: ★ recent audience study; ★ mix of paper and digital formats; ★ effective in short simple messages; ★ impact over commuters; ★ original formats generate buzz. Disadvantages: ★ sales houses growing dispersion; ★ exposure to weather, quality issues; ★ production costs are high for big formats, still limited offers on digital big formats. Cinema Advantages ★ new audience study - contact based; ★ low saturation, low noise; ★ no zapping; ★ high attention levels. Disadvantages: ★ expensive cost per contact compared to other media; ★ low geosegmentation capabilities; ★ low reach capability; ★ not a structured media, always a complement. Digital Advantages: ★ interactive, lead forward; ★ multidevice, easy to carry on with you; ★ role of DATA; ★ ecosystem with many tools. Disadvantages: ★ high fragmentation: sites, social, forums, blogs, podcasts. ★ sophistication and automation generate low control. ★ Google and Meta are a threat for other players. The Media Brief: ➔ Context; ➔ Jobs to be done; ➔ brand assets; ➔ big brand idea; ➔ target (or media audiences); ➔ deliverables; ➔ budget; ➔ mandatories; ➔ main KPIs. Celebrity Endorsers: advertisers are willing to pau large salaries to celebrities who are liked and respected by target audiences and who will favorably influence consumers’ attitudes and behavior toward the endorsed products. Role: ➔ Credibility: refers to the tendency to believe or trust someone. When an information source, such as an endorser, is believed as credible, audiences are changed through a psychological process called internalization. ◆ Internalization occurs when the receiver accepts the endorser’s position on an issue as his or her own. ◆ 2 Dimensions: Expertise: knowledge, experience, or skills possessed by a source; Trustworthiness: perceived honesty, integrity, and believability of a source. ➔ Attractiveness - the process of identification: is an attribute that includes any number of virtuous characteristics that receivers may perceive in an endorser. It consists of 3 related dimensions: similarity, familiarity, and liking. Persuasion occurs through identification. ➔ Power - the process of compliance: occurs when an individual is persuaded by an advertised source because they hope to achieve a favorable reaction or approval from this source. The receiver complies with the source because the source has the power to administer rewards and punishments. Endorser Selection Criteria ★ Celebrity and Audience Matchup: and endorser must match well with the endorsed brand’s target. ★ Celebrity and Brand Matchup: the celebrity’s values and appearance must be compatible with the desired brand image. ★ Celebrity Credibility: people who are trustworthy and perceived as knowledgeable about a product category are best able to convince others. ★ Celebrity Attractiveness: advertising executives generally regard attractiveness as subordinate in importance to credibility and endorser matchup with audience and brand.  ★ Cost Considerations: perform a cost-benefit analysis to determine whether a more expensive celebrity can be justified in terms of proportionately greater return. ★ Working ease or difficulty factor: some celebrities are easier to work with than others. ★ Saturation Factor: if a celebrity is overexposed his or her perceived credibility may suffer. ★ The trouble factor: evaluate the likelihood that a celebrity will get into trouble after an endorsement relationship is established. Platforms for Influencer selection: What info is available: dimension of each community in each network; engagement rate comment; rankings organized by dimension, engagement rate; selection by areas: lifestyle, sports, beauty; influences must be enrolled with the platform in order to have data available. Allows: campaign creation; budget attribution per influencer; follow results; create campaign reports; manage large campaigns. DECK 4 Measurement ↔ Monitoring Both have a fundamental role in the marketing process It is not possible to optimize resources without monitoring They are a “state of mind” that must be rooted in the process Why is Measurement so important? ➔ Establish the departure point; ➔ Quantifying helps objectivity; ➔ Monitoring and correction; ➔ Evaluation and learnings. Media Concepts: translating communication into effective campaigns ★ TV Audience: one of the key concepts with diferent approaches according to the medium. Is the probability of contact that a part of target individuals has with a medium or vehicle. ○ Total: group of individuals that has contact with the media pr vehicle, regardless of the frequency or time of exposure -> reach; ○ Average: group of individuals that has contact with the media or vehicle, weighted by the frequency or time of exposure.  ★ Print Audience: percentage of the target thar read or went through the latest edition of a title. In this case, the time bracket may vary according to how often the titles are printed. ★ Print Radio: percentage of the target that had contact with the vehicle. ○ Accumulated audience eve: percentage of the target htat contacted/listened to a station, within one day, regardless of the time spent. ○ Average audience: percentage of target that contacted/listened to a station, within one day, weighted by duration of contact. ★ Share: percentage of time spent by each individual in the target watching a channel/event - in relation to the total time spent watching television, for the same period. ★ Internet: in digital, the concept of audience differs from other media. The audience of a site is the result of several other concepts. The audience in digital refers to the segmentation of a campaign. ○ Unique user: number os users (IPs) that visited a website for a specific period. ○ Sessions: group of interactions of a user with the website that occur in a given period of time. From time the user enters the website up to 30 minutos of inactivity or leaves the website, it is considered a session. ○ Page views: number of paes of a website that are open by the users. ★ Affinity: the affinity index measure the target’s affinity for an event by comparing the average audience of the support in the target and the average audience of the support in the base target. 3 Key Concepts for Campaign Evaluation ➔ GRP - Gross Rating Point: indicator of advertising pressure that reflecgs the quantitative strength of a campaign, in a given target audience. It is the gross sum of the audiences of all insertions of a campaign. ➔ RCH - Reach: % of individuals likely to contact the campaign at least once. ➔ OTS - Opportunity to See: average number of times each individual, who has contact with the campaign, is likely to see it -> calculation on those who saw the campaign at least once) Audiences in TV: ➔ Live: viewing the broadcast of a television channel live, or with a delay of less than 60 seconds in relation to the broadcast. ➔ View On Same Day As Live (VOSDAL): consumption of the broadcast of the day, with a delay equal to or greater than 60 seconds in relation to the broadcast, viewed on the same day. ➔ Time Shift View (TSV): viewing the broadcast of a television channel the day after the broadcast. ➔ TSV 7: viewing the broadcast of a ca television channel in the 7 days following the day of broadcast. Online Advertising Benefits: Costs: individualization; user distraction; Interactive; fragmentation - too many choices; immediate publishing; rapid change; cost effective. short lead times. Placing Ads Onlines: ★ Display; ★ Sponsorships; ★ Rich Media Formats; ★ Affiliate programs; ★ Content; ★ SEA - Search Engenie Advertising; ★ Email Marketing; ★ Mobile Advertising; ★ Social Media. Buying Advertising Space in Digital ➔ Impressions: views on an ad on a website, usually grouped into thousands. ➔ Clicks: number of times an ad is clicked. ➔ Capping: maximum frequency established in the campaign schedule, which results in the maximum number of times a user can be exposed. ➔ Click Through Rate (CTR): percentage of impressions resulting in a click. Viewability: is the measurement of a viewable impression within a user’s browser. ➔ Interactive Advertising Bureau: says an ad is considered viewable when 50% of the pixels are visible in the browser window for one continuous second.  ➔ Viewable ads have a higher likelihood to be clicked on. ➔ To improve ad viewability: ◆ Ad Position: the most viewable position in not at the top of the page, but rather right above the fold ◆ Ad Sizes: the most viewable ad sizes are vertical units, since they stay on screen longer as users move across the page. ◆ Site Performance: optimizing for speed and increasing responsiveness. Search Engine Advertising: ➔ Text Ads: generic searches show that brands are bidding for this expression; ➔ Google Shopping: generic search shows range; specific search shows price options. ➔ This involves a mix approach: ◆ guarantee you appear when your brand and brand terms are searched; ◆ expand your horizon and bid more generic words that can bring you searchers browsing in the category; ◆ go beyond and use affinity works for mixed browsing, in different categories. General Data Protetion Regulation (GDPR): is the toughest privacy and security law in the world. It imposes obligations onto organizations anywhere, so long as they target or collect data related to people in the EU. The GDPR will levy harsh fines against those who violate its privacy and security standards, with penalties reaching into the tens of millions of euros.