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Chapter 1 Overview ● Advertising and marketing face a shifting landscape ● Traditional media viewership has declined ● Internet and social media usage has risen sharply ● Effective promotions are multifaceted ● Connectivity and interaction with consumers is key ● Advertisers are turning to more innovative approaches Integrated Marketing Communications ● IMC: all the tools we have for media ● Communication Process ○ Source/sender - encoding - channel message - decoding - receiver - feedback - sender ○ Noise gets in the way ○ Needs some common ground ● Basic Model of Communication ○ Source Encoding ■ Source : Person or organization that has information to share with another person or group of people. ■ Encoding : Putting thoughts, ideas, or information into symbolic form. ■ Message : Contains information or meaning the source hopes to convey. ● Includes content, structure, and design ■ Channel : Facilitates communication between sender and receiver ● Non Personal channel or mass media ○ Lacks direct, interpersonal contact between sender and receiver ○ Includes print and broadcast ● Personal channel or direct communication between 2 or more persons ■ Viral marketing : Propagating marketing-relevant messages with the help of individual consumers. ● Factors affecting success: ○ Message characteristics ○ Individual sender or receiver characteristics ○ Social network characteristics ■ Seeding : Identifying and choosing the initial group of consumers who will start spreading the message. ● Motivations for social sharing
8/23/ ● Integrating word of mouth with IMC ○ Consumers think information from others is more credible ○ Successful Word of Mouth must be: ■ Credible ■ Respectful ■ Social ■ Measurable ■ Repeatable
● Receiver/Decoding ○ Receiver: Person with whom sender shares thoughts or information ○ Decoding: Transforming sender’s message into thought ■ Heavily influenced by receiver’s field of experience ■ Must establish common ground ● People differ in location, education level, age, etc. ● Noise ○ Unplanned distortion in the communication process ■ Occurs because the fields of experience of sender and receiver don’t overlap ○ List of noise on Powerpoint ● Response/Feedback ○ Response : Receiver’s set of reactions after seeing, hearing, or reading the message ○ Feedback : Receiver’s response that is communicated back to the sender. ● Integrated Marketing Communications is the coordination and integration of all marketing communications tools, avenues, and sources in a company into a seamless program designed to maximize the impact on customers and other stakeholders ○ IMC covers all business-to-business, market channel, customer-focused, and internally-directed communications ● Touch Point ○ Every opportunity a customer has to see or hear about a company and/or its brands or have an encounter or experience with it. ○ Categories: ■ Company-created: chatbot, booths ■ Intrinsic: comes with your experience ■ Unexpected: Kelly Clarkson says she loves Fitbit unexpectedly ■ Customer-initiated: customer reaches out to company
● Paid, Owned, and Earned Media ○ Paid Media : ■ Channels marketers pay to leverage
○ Emphasis on customer engagement ■ Two-way communication is key ■ Firms strive to develop emotional commitment ○ Focus on convenience ■ Cash rich, time poor ■ Emphasis on making purchases quick and simple ○ Cause-related marketing, advertising ■ Socially responsible efforts and causes ● 5 Reasons why integrated marketing works ○ Unifies strategy and message across channels ○ Streamlines timing ○ Connects with multiple audiences ○ Creates meaningful insights ○ Maximizes impact
8/26/ Chapter 2: Brand Management ● Michelin has strong brand image ○ Consistent with their messages for products throughout the brand ● Elements of Brand Image ○ Tangible Elements : ■ Goods or services sold ■ Retail outlets where the product is sold ■ Advertising ■ Marketing communications ■ Name and logo ■ Packaging and labels ■ Employees ○ Intangible Elements : ■ Corporate personnel ● Ideals ● Beliefs ● Conduct ■ Environmental policies ■ Corporate culture ■ Country location ■ Media reports ● Brand Image Benefits to Consumers ○ Provides confidence regarding purchase decisions ○ Gives assurance about the purchase when the buyer has little or no previous experience ○ Reduces search time in a purchase decision ○ Provides psychological reinforcement and social acceptance of the purchase
● Brand Image Benefits to Companies ○ Extension of positive customer feelings to new products ○ Ability to charge a higher price or fee ○ Consumer loyalty leading to more frequent purchases ○ Positive word-of-mouth endorsements ○ Higher level of channel power ○ Ability to attract quality employees ○ More favorable ratings by financial observers and analysts ● Categories of Brand Names ○ Overt names: tell us what the company does (United Airlines) ○ Implied names: tells us in a more artistic way ○ Conceptual names: give a concept of what the company does (Google) ○ Iconoclastic names: made up words or have deeper meanings ● Brand Name Selection ○ Desirable qualities for a brand name should be ■ Based on the products benefits and qualities ■ Easy to pronounce, recognize, and remember ■ Distinctive and extendable ■ Easily translated into foreign languages ■ Capable of registration and legal protection
Types of Brands ● Family brands : A strategy in which a company offers a series or group of products under one brand name ○ Campbell’s ● Brand extension : The use of an established brand name on goods or services not related to the core brand ● Flanker brand : The development of a new brand by a company in a good or service category in which it currently has a brand offering ● Co-branding/alliance branding : The marketing or alliance of two or more brands in a single marketing effort ○ Co-branding is successful if it increases the brand equity of both brands ○ Ingredient branding : The marketing or alliance of two or more brands in a single marketing effort (Ex: hershey chocolate in swiss miss hot chocolate) ○ Cooperative branding : A form of co-branding in which two firms create a joint venture of two or more brands into a new good or service (Ex: doritos locos taco at taco bell) ○ Complementary branding : A form of co-branding in which the marketing of two brands together encourages co-consumption or co-purchases (pair products) ● Private brands: Brand Logo : The symbol used to identify a brand, helping to convey the overall brand image ● Aid in recall of specific brands ● Aid in recall of advertisements
● Utilize social media ● Utilize mobile ● Act responsible Brand Equity ● Brand parity can be a problem ● Brand equity ○ A set of characteristics making the brand unique ○ Helps fight the brand parity problem ○ Brand name is perceived as better Private Brands ● Popularity has fluctuated ● Connotation of low price, inferior quality ● Historically catered to price-sensitive consumers ● Retailers invest in private brands ● Many consumers see few differences Changes in Private Brands ● Improved quality ● Perceived as a value purchase ● Higher loyalty toward retail outlets and lower loyalty toward specific brands ● Used to differentiate retail outlets Advantages of Retailers ● Private Labels ○ Higher gross argos ○ Lower prices ○ Greater loyalty to stores and brands within a store ○ Differentiate stores from national brands ○ Many consumers are unaware of the difference Manufacturers ● Focus on core brands ● Increase advertising ● Introduce new products ● Focus on in-store selling, packaging Packaging ● Final opportunity to make impression ● Two-thirds of purchase decisions made in-store ● Have three seconds to catch attention ● Package must stand out ● Must tell customers what is inside Primary Purposes of Packaging ● Protect product ● Provide for ease of shipping and handling ● Provide for easy placement on shelves ● Prevent or reduce theft ● Prevent tampering (drugs and food)
● Meet consumer needs for speed, convenience, and portability ● Communicate marketing message Labels ● Must meet legal requirements ● Provide another marketing opportunity ● Typically contain logo and brand name ● QR codes can link to social media sites Ethical Issues in Brand Management ● Brand infringement ● Brand name can become a generic term ● Cybersquatting International Implications ● Adaptation vs Standardization ● Standardization reduces costs ● Shrinking world leads to standardization ● Think globally, but act locally
Chapter 3: Buyer Behaviors ● Consumer Behavio r: Process and activities people engage in with relation to products and services to satisfy their needs and desires ○ Searching for. Selecting. Purchasing. Using. Evaluating. Disposing of. ● The consumer decision-making process ○ Problem Recognition ■ Consumer perceives a need and gets motivated to solve the problem ■ Caused by difference between consumer’s ideal state and actual state ■ 6 triggers : out of stock, dissatisfaction, new needs/wants, related products/purchases, market-induced recognition, new products ○ Examining Consumer Motivations ■ Helps understand the reasons underlying consumer purchases ● Motives : Factors that compel a consumer… ■ Maslow’s Hierarchy of Needs ● Physiological ● Safety ● Belongingness ● Ego needs ● Self-Actualization ○ Post Purchase Evaluation ■ Satisfaction occurs when sonsumer’s expectations are met or exceeded ■ Dissatisfaction occurs when product performance is below expectations ■ Cognitive dissonance : psychological tension experienced after a difficult purchase choice ■ Postpurchase communication is important ● Information searches and the consumer purchasing process
○ Shows cognitive linkages ○ Process new information ○ Retaining information ○ New concepts ○ Marketing messages
Principles of Cognitive Mapping ● Cognitive mapping enhances movement of messages from short-term to long-term memory ● Most persuasive messages reinforce current linkages ● Repetition necessary to establish new linkages ● Modifying or creating new linkages is difficult Evaluation of Alternatives ● The Evoked Set Method ○ … ● The Multiattribute Approach ○ Used for high-involvement purchases ○ Consumer attitude is determined by: ■ Brand’s performance for each attribute ■ Importance of each attribute to consumer ○ The higher a brand rates on important attributes, the more likely it will be purchased ● Affect Referral ○ Saves mental energy ○ Multiattribute approach might have been used for previous purchases ○ Consumers often develop emotional bonds with brands Trends Affecting Consumer Buyer Behaviors ● Age complexity ● Gender complexity ● Active, busy lifestyles ○ Money rich, time poor : spend more money to get stuff done faster ● Diverse lifestyles ● Communication revolution ● Experience pursuits ● Health emphasis Business-to-Business Buyer Behaviors and Influences ● Buying center: a group of individuals making a purchase decision on behalf of a business ● Purchasing roles: ○ Users ○ Buyers ○ Influencers ○ Deciders ○ Gatekeepers
Organizational Influences ● Company goals and operating environment ● Finances, capital assets, market position ● Quality of human resources ● Country in which the firm operates Individual Factors Affecting Buying Centers ● Personality ○ Decisive person ● Roles ○ Individual's age, heredity, ethnicity, gender ○ Socially constructed ● Motivation ● Level of power ● Risk ● Levels of cognitive involvement ● Personal objectives Types of B2B Sales ● Straight rebuy : firm previously chose a vendor and places a reorder ● Modified rebuy : buying team considers and evaluates alternatives ● New task buy : ○ Considering purchase for first time ○ Time passed since previous purchase ○ Buyers have little or no experience B2B Buying Process ● Identification of needs ● Establishment of specifications ● Identification of vendors ● Vendor evaluation ● Vendor selection ● Negotiation of terms ● Post Purchase evaluation
Co-Marketing and IMC Planning ● Joining to sell separate but related products ● Examples ○ T-Mobile and Netflix ○ Capital One and Hotels.com ● All planners must address every step in the process Communications Research ● Product-specific research ○ Desirable features ○ Key selling points
● Measure growth and migration
The VALS Typology ● Innovators ● Thinkers ● Achievers ● Experiencers ● … Geodemographic Segmentation ● Combines ○ Demographic census data ○ Geographic information ○ Psychographic information ● PRIZM ○ 66 market segments in United States ○ ZIP codes identify relatively uniform neighborhoods ○ Consumers like neighborhoods of similar people B2B Market Segmentation ● Group similar organizations into meaningful clusters ● Create marketing messages specifically for them ● Provide businesses with better service Methods of Segmenting B2B Markets ● Industry (NAICS code) ● Size of business ● Geographic location ● Product usage ● Customer value
Types of Budgets ● Percentage of Sales ○ Sales of current year, or next year ○ Simple ○ Tends to work in the opposite direction ○ Does not meet special needs ● Meet the competition (Competitive Parity) ○ Seeks to prevent market share loss ○ Highly competitive markets ○ Dollars may not be spent efficiently ● What we can afford ○ Set after all other items budgeted ○ Do not view marketing as important
● Objective and task ○ Budgets determined by objectives ○ Best method of budgeting ○ Used by 50% of firms ● Payout planning ○ Ratio – advertising to sales or market share ○ Larger percent at product launch ○ Lower percent when brand established ○ Based on threshold effect ● Quantitative models ○ Computer simulations ○ Develop models based on historical data Communications Schedules ● Continuity ● Flighting ● Pulsing
Political Advertising ● Lying in political advertisements is perfectly legal ● Because political ads are considered political speech, and First Amendment law protects political speech above all other types of speech ● Federal Trade Commision (FTC) ● “Fraud perpetrated on consumers”
Study Guide ● Changes in communications over time: ○ Old version: telling and selling ○ Now: more of a conversation; more of a two way street ● Sans serif means without the fancy lines and is sleeker ● Standardized Global Marketing: same message everywhere ● Adaptive Global Marketing: change message or product throughout ● Market viability- what makes it viable? ○ When we are segmenting our markets, what makes one worth going after? ○ Enough money? Enough people? ● Evoked set, Inept set (don’t even think about it because you know it was bad), Inert set (ones we think about and are considering to purchase)
- A simulation of the knowledge structures within an individual's brain is called a(n): cognitive map
- When consumers consistently connect a product's name with a specific meaning, concept, or idea. Brand association
- Which is not a tangible component of a brand's image? The beliefs and ideals of the corporate personnel.
- Which of the following is not something that impacts the amount of external research done before making a purchase? the ability to search, the motivation, the costs versus benefits, all of these can have an impact on the amount of external research done.
- ________ is the stage of the consumer decision-making process when the individual scans their memory to recall information from past experiences or prior knowledge about purchase options. Internal information search
- Before purchasing a car, Sebastian asked his friends for advice and looked at online resources for information. He also visited car dealers and went for a test drive. In which of the following stages of the consumer decision-making process is Sebastian engaged in? External information search Chapter 3-4 :
- ________ is the stage of the consumer decision-making process when the individual scans their memory to recall information from past experiences or prior knowledge about purchase options. Internal information search
- _____ are strongly held beliefs about various topics/concepts that guide personal behaviors and are often established beginning at birth. Values
- American consumers are money ______ and time _____, as indicated by an increase in the use of convenience services and products such as meal prep services. Rich, poor
- In business buying situations, generally ______ individuals are involved in a purchase decision compared to business to consumer buying situations. More
- When discussing B2B sales, a ________ purchasing situation gives marketers the most opportunity. New task
- In your own words, briefly explain how the business-to-business buying process is different from the business-to-consumer buying process? more decision makers, more formal guidelines, based more on facts than feeling, larger dollar amounts.
- The process of ______ consists of identifying specific consumer and business markets that are most likely to purchase a brand or respond to a message in the same way, and it is based on their needs, attitudes, and interests. Market segmentation
- When discussing psychographics, ______ are considered educated, conservative, and practical consumers who value knowledge and look for durable, functional products at a good value. Thinkers
- In the ____ budgeting method, marketers identify the communications objectives they wish to pursue and calculate the cost of achieving the objective and use that to set the budget. Objective-and-task
