MKTG 330 Study Guide For Exam III PDF

Chapter 12 – Traditional Advertising Media e. Ability to present detailed information: 1. Criteria for media choice: consumer preferences, good source on providing information on advertiser’s objectives, creative needs, competitive...

Chapter 12 – Traditional Advertising Media e. Ability to present detailed information: 1. Criteria for media choice: consumer preferences, good source on providing information on advertiser’s objectives, creative needs, competitive products through stories challenge budget f. Ability to convey information 2. Strengths of newspapers as an advertising medium authoritatively: editorial content often a. Audience in a mental state to process includes articles that provide a sense of messages: people who read the newspaper insight, expertise, & credibility are in the right mental state to process g. High involvement potential: attracts readers advertisements that presents news of store interest to engage them to think about openings, new products, sales, & so forth advertised brands due to self-selection & b. Mass audience coverage: broad reach to reader-controlled nature of magazines audience 6. Weaknesses of magazines as an advertising c. Flexibility to reach specific areas: National medium advertisers can adjust copy to match the a. Not intrusive: doesn’t infringe on audience’s specific buying preferences & peculiarities of attention, readers control their exposure local markets; can vary copy targeted towards b. Long lead times: not a highly selective specific zip codes medium d. Ability to use a detailed copy: detailed c. Clutter: as readers become to engrossed in products information is used in newspaper articles & skip over ads entirely advertising to an extent unparalleled by any d. Somewhat limited geographical options other medium e. Variability of circulation patterns by e. Timeliness: Advertisers can develop copy or market: audience ads target may not read the make copy changes quickly & thereby take advertised magazine advantage of dynamic marketplace 7. Magazine audience measurement developments a. Collected through intermediaries: 3. Weaknesses of newspapers as an advertising magazine subscriptions are collected through medium variety of intermediaries, making it difficult to a. Clutter as newspaper ads confronted with obtain accurate lists of who subscribes to other ads: reader is confronted by many ads which magazine b. Not a highly selective medium: are unable b. Purchased through other than subscriptions: often purchased through news to reach specific groups of consumers sites, supermarkets, or other retail outlets, effectively rather than subscriptions, eliminating c. Mediocre reproduction quality: newspapers knowledge of who purchases which magazines are not known to enhance the product’s perceived quality, elegance or snob appeal c. Available in public locations: available to the public such as doctor’s offices, beauty d. Complicated buying for nationals: high salons rates charged to national advertisers, & each newspaper must be contacted individually d. Sharing with others: individual subscribers often share with other people who are not e. Changing composition of readers: major subscribed problem plaguing newspapers, but the combination of electronic readership & print 8. Radio day parts: the act of dividing the broadcast day readership has helped with rates into sections f. Declining readership: has declined 9. Strengths of radio as an advertising medium progressively in the past generation a. Ability to reach segmented markets: allows advertisers to pick specific formats & stations 4. Media kit/Rate cards: can acquire a wealth of to be compatible with both compositions & demographic information about the composition of creative message strategies magazines readership which is provided; provide potential cost information b. Intimacy: local store merchants & radio announcers can be extremely convincing & 5. Strengths of magazines as an advertising medium personable a. Some reach large audiences: popular magazines have total audience that reaches c. Economy: considerably cheaper than other over 29 million readers media b. Selectivity: enables advertisers to achieve d. Short lead times: cost are low & scheduling effective exposure deadlines are short, they can take advantage of important developments & change to c. Long life: used for reference & kept for marketplace weeks around homes, offices, waiting rooms, etc. e. Transfer of imagery from TV: memorable TV ads campaigns are aired frequently d. High reproduction quality: elegance quality consumers make mental associations b/t is exceptional for magazines sound of radio ad & imagery of TV ad  f. Use of local personalities: radio personalities b. Interactivity: allows user to select the info are highly respected & admired, & enhance they perceive as relevant to build relationships establishing br& image on radio with customers 10. Weaknesses of radio as an advertising medium c. Immediate publishing: not limited to a. Clutter created by ads from the same geography or time station & others: noise, chatter, & d. Cost efficiency interference & listeners often change station 15. Costs of online advertising to avoid commercials a. User distraction: banner ads, pop ups, and b. No visuals: relies on sound effects & use of unsolicited e-mail messages concrete words to evoke visuals b. Too many choices: not homogeneous c. Audience fractionalization: advertiser is (emails, display ads which involve little unable to reach diverse audience b/c audience interaction) already has its own unique demographic c. International coordination: mobile users d. Buying difficulties: buying time is b/c you must deal with multiple providers, complicated & unstandardized in rates carriers & devices 11. TV Dayparts/dayparting (Daytime, Fringe time, d. Rapid change: some areas are slowing and Prime time): Daytime: 9AM-4PM – appeal to adults other continue to grow for news & children & those who stay home, Fringe e. Short lead times: a result for short-term Time: Early Fringe: 4PM-7PM Late Fringe: 11PM-2PM – consumer desires Early fringe appeal to children & get adult oriented as 16. Search engine advertising prime time approaches Late Fringe appeal to young a. Keyword matching advertising: inorganic adults, Prime Time 8PM-11PM – most expensive b/c it (sponsored ads) & organic (no ad listing), has the most audience. types of words that are typed to get that 12. Strengths of TV as an advertising medium search result from keywords a. Demonstration ability: able to show how a b. Content-targeted advertising: pictures that product advertised is being used pop up once you search something b. Intrusion value: TV advertisements engage 17. Display advertising one’s senses & attract attention even when a. Static banner ads one would prefer not to be exposed to an b. Click through rates: internet use clicks on advertisement banner ad and is directed to advertiser’s c. Ability to generate excitement: products website can be brought to life or bigger than life c. Click through rates & familiarity: familiar d. One-on-one reach brands receive higher CTR than brands that e. Ability to use humor are less known d. Banner advertising & brand awareness: f. Effective with sales force & trade: TOMA-top of mind awareness salesperson find it easier to sell new or established brands to trade when major ad e. Rich media (Pop ups, interstitials, campaign is planned superstitials, & online video ads): Popups – appear in separate window that materialized g. Ability to achieve impact: activate on the screen while a selected web page is consumers’ awareness of ads & enhance their loading, Interstitials – ads that appear between receptiveness to sales messages 2 content web pages, users have to wait until 13. Weaknesses of TV as an advertising medium entire ad runs, Superstitials – short, animated a. Rapidly expanding cost: high costs ads that play over or on top of a web page, Online video ads – audiovisuals ads that range in b. Erosion of viewing audiences: too many length from 15-several minutes other options of entertainment f. Mobile ads & apps c. Audience fractionalization: advertiser cannot expect to attract large audiences when g. App advertising advertising during any program due to the 18. Websites & sponsored sites: online space where great number of programs available businesses and customers interact and are valuable for sharing information abt a brand. People visit websites d. Zipping & zapping: switch from station to with specific goals in mind station during ads & fast forwarding 19. Blogs & podcasts: can communicate directly to e. Clutter customer and target messages who share similar lifestyle Chapter 13 – Online & Mobile Advertising 20. Email advertising 14. Benefits of online advertising a. Opt-in emailing vs. spam: marketers asking a. Individualization: online user has control for and receiving consumers’ permission to over the flow of into send them messages on topics (singing up for a newsletter)  b. E-zines: electronic magazines g. Cost effectiveness: comparing to place a 21. Behavioral targeting: directing online ads to those $200,000 for a 30 sec ad or $3.5 million for who most likely are interested the 2012 superbowl 22. Metrics for measuring internet ad performance 25. Disadvantages of social media a. Types of objectives a. Privacy & censorship: allows social media to i. Exposure value – popularity of an censor certain posts or tweets ad, how many people have seen it, b. Lost productivity, addiction, & fatigue: visited, & clicked social media peaks, then slowly burns out & j. Ability attract & hold users’ loses productivity attention & quality of customer c. Meaningless comments, babble, spam, & relationships – average time per like backs: comments that are off topic or site visit, average interval b/t user have nothing to do with the post visits d. Hackers & frauds: easy to hack and fraud k. Usefulness of websites – e. Dealing with Negative (viral) comments: proportion of repeat visitors social media gives followers the freedom to l. The ability to target users – speak their minds profile of website visitors & their previous search behavior 26. Common objectives & themes of successful social media campaigns b. Click through rates (CTR): % of people who are exposed to an internet delivered ad & a. Enhance public relations: easy to connect click their mouse on it with audineces b. Sharing humor & creativity with c. Cost per thousand impressions (CPM): consumers: humor to draw in consumers assesses how much it costs to place an online c. Deals & contests: some successful social ad media campaigns use deals & contents for their fans d. Cost per action (CPA): determining the # of d. Dialogue & two-way communication: users who visit a brand’s website, register their engage with customers to uncover brand names on the brand’s site or purchase the ads insights & ideas brand e. Launching causes, sponsorships, & events Chapter 14 – Social Media f. Launching new products 23. Comparisons with traditional media g. Interactive games, virtual worlds, & a. Reach: both offer scale, traditional media is avatars more centralized, while social media is h. Elicit consumer-generated stories, decentralized dialogue, & content: if successful, b. Accessibility: depending on the country, consumers will respond by posting abt their traditional media production is experience with brand & share with friends government/privately owned, social media is 27. Factors that “work” generally available to everyone a. Encourage storytelling about the brand: c. Usability: traditional media requires humans love stories, recognize the pattern & specialized skills & training, anyone with respond well to a story format online access can generate content for social b. “Step into the real world”: tries to connect media and engage consumer through empathy, d. Immediacy: traditional media often has long understanding, & openness time lags, social media can generate quickly c. Evolve with your customers in being 24. Advantages of social media social & human: admitting mistakes at times a. Flexibility: ability to quickly modify posting & accepting criticism in response to competitive & industry changes 28. Measuring social media campaigns b. Reach options: allows advertisers to reach a. Sentiments: the polarity of a text large and small audiences b. Share of voice: brand mentions vs. c. Consumer engagement: helps ensure in sites competitors as well as brands & companies featured on c. Share of conversations: brand vs. industry these sites d. Two-way dialogue: consumer feedback Chapter 15 – Direct Marketing & Other Media e. Integration & ability to drive traffic: ad that 29. Direct marketing vs. Direct response advertising: is placed on social media can turn viral & interactive system of marketing of which one or more drive traffic to other sites & to retail stores & advertising media to affect a measurable response other brand promotions and/or transaction to any location. Direct response advertising – direct mail (catalogues), Telemarketing, & f. Improved metrics Direct Selling 30. Customer relationship management (CRM): 36. Types of mailing lists (internal vs. External, House carefully managing detailed info abt individual vs. Compiled lists): Internal House – based on customers & all customer “touchpoints” to ensure company’s own internal list of present or prospective loyalty customers, External Lists – either house lists from other 31. Database marketing (DBM): companies collect companies or complied listed created by specialists information on consumers, analyze it to predict who 37. Outbound vs inbound telemarketing: Outbound – will buy & develop tailored marketing messages to using telephone to support/replace their conventional those consumers sales force; Inbound – toll-free numbers that the 32. Direct mail & its distinctive features consumer can call to receive product information, a. Targetability: targeting a precisely defined customer service, or buy a product from group of people 38. Brand placement: an advertiser promotes a brand by b. Measurability: determine exactly how placing it within the context of a selected medium – effective the ad efforts was b/c marketer TV, film, online, gaming program knows how many mailings were sent and 39. Advantages of brand placement responded a. Generally, less intrusive than advertisements c. Accountability: results can be readily b. Less likely to be avoided by the consumer demonstrated, and brand managers can justify c. Strong potential for the placement to augment budget allocations to direct mail a brand’s image and build an emotional d. Flexibility: can be produced relatively quickly connection e. Efficiency: makes it possible to direct d. Can create a memorable association serving to communications efforts just to a highly enhance consumers memories of a brand targeted group 40. Disadvantages of brand placement f. Expense relative to CPM & CPO: CPM a. Marcom practitioners lose some control of basis direct mail is more expensive; CPO basis how their brands are positioned when move direct mail is much less wasteful & will and TV directions make decisions produce the highest % of responses b. Difficulty of measuring their effectiveness and 33. Direct mail campaign functions: ROI a. Increase sales and usage from current c. Prices spiraling upward customers 41. Yellow pages advertising: consumers turn to when b. Sell products and services to new customers they are seeking a product or service supplier & are c. Build traffic prepared to make a purchase d. Stimulate product trial 42. Video game advertising/advergaming e. Generate leads 43. Cinema advertising: ad in movie theatre, sometimes f. Deliver product relevant information & news before the movie g. Gather customer information h. Communicate with customers in a relatively private manner 34. CRM & the use of databases a. Direct advertising efforts to best prospects b. Offer varied messages c. Create long term relationships d. Enhance advertising productivity e. Calculate the lifetime value of a customer/prospect 35. Lifetime value analysis a. Customer lifetime value elements (Revenue, Costs, Profits): net present value (NPV) of profit that a company stands to realize on the average new customer during a given number of years b. Ways to augment lifetime value i. Increase retention rate ii. Increase referral rate iii. Enhance average purchase volume per customer iv. Cut direct costs v. Reduce marketing communications costs