Evaluating Alternative Media
Ads can now appear virtually anywhere consumers have a few minutes or even seconds
to notice them.
The main advantage of non-traditional media is a very precise and captive audience in a
cost-effective manner.
A) Unique ad placements designed to break through clutter may also be perceived as
invasive and obtrusive, however.
expenditures for non-traditional media.
Marketing Insight: Playing games with brands
Many advertisers have adopted an “if you can’t beat them, join them” attitude and are
advertising in online games. Marketers are also playing starring roles in popular video games
by having their product featured in the games. The growing popularity of Second Life and
other virtual communities is creating new placement opportunities for marketers.
Selecting Specific Vehicles
The media planner must search for the most cost-effective vehicles within each chosen
media type.
A) In making choices, the planner has to rely on measurement services that provide
estimates of audience size, composition, and media cost.
B) Audience size has several possible measures:
1) Circulation
C) Media planner calculates the cost per thousand persons reached by a vehicle.
D) Several adjustments have to be applied to the cost-per-thousand measure:
1) The measure should be adjusted for audience quality.
Deciding On Media Timing and Allocation
In choosing media, the advertiser faces both a macro scheduling and a micro-scheduling
problem.
A) The macro–scheduling problem involves scheduling the advertising in relation to
seasons and the business cycle.
C) The most effective pattern depends on the communication objectives in relation to the:
1) Product
2) Target customers
D) The timing pattern should also consider three factors:
1) Buyer turnover: the higher this rate, the more continuous the advertising should
be.
E) In launching a new product, the advertiser has to choose among:
1) Continuity
F) A company has to decide how to allocate its advertising budget over space as well as
over time:
1) Areas of dominant influence (ADIs)
Evaluating Advertising Effectiveness
Most advertisers try to measure the communication effect of an ad—that is, the potential
effect on awareness, knowledge, or preference. They would also like to measure the ad’s
sales effect.
Communication-Effect Research
Communication-effect research seeks to determine whether an ad is communicating
effectively. Called copy testing, it can be done before an ad is put into media and after it
is printed or broadcast.
There are three major methods of pre-testing:
A) The consumer feedback method asks consumers for their reactions to a proposed ad.
Sales-Effect Research
The fewer or more controllable other factors such as features and price are, the easier it is
to measure advertising’s effect on sales. The sales impact is easiest to measure in direct
marketing situations and hardest in brand or corporate image-building advertising.
A) Sales are influenced by many factors:
1) Features
B) The sales impact is easiest to measure in direct-marketing situations.
C) It’s harder to measure in brand or corporate image-building campaigns.
E) A company’s share of advertising expenditures produces:
1) A share of voice
G) The historical approach involves correlating past sales to past advertising
SALES PROMOTION
Sales promotion, a key ingredient in marketing campaigns, consists of a collection of
incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of
particular products or services by consumers or the trade.
A) Where advertising offers a reason to buy, sales promotion offers an incentive to buy.
B) Sales promotions include tools for:
Objectives
Sales promotions tools vary in their specific objectives:
A) Sellers use incentive-type promotions to:
1) Attract new users.
2) Reward loyal customers.
3) Increase the repurchase rates of occasional users.
Advertising versus Promotion
Sales promotion expenditures increased as a percentage of budget expenditure for a
number of years, although its growth has recently slowed.
A) Several factors contributed to this growth, particularly in consumer markets.
B) Promotion became more accepted by top management as an effective sales tool;
J) Price promotions may not build permanent total-category volume.
Major Decisions
In using sales promotions, a company must establish its objectives, select the tools, develop
the program, pretest the program, implement and control it, and evaluate the results.
Establishing Objectives
Sales promotion objectives are derived from broader promotion objectives that are derived
from more basic marketing objectives developed for the product.
A) For consumers, objectives may include:
1) Encouraging purchase of larger-sized units
C) For retailers, objectives include persuading retailers to:
1) Carry new items
2) Higher levels of inventory
3) Encourage off-season buying
D) For the sales force, objectives include:
1) Encourage support of a new product or model
2) Encourage more prospecting
3) Stimulate off-season sales
Selecting Consumer-Promotion Tools
The promotion planner should take into account the type of market, sales-promotion
objectives, competitive conditions, and each tool’s cost effectiveness.
A) We can distinguish between manufacturer’s promotions and retailer promotions.
B) We can also distinguish between sales-promotion tools that are consumer-franchise
building and reinforce the consumer’s brand preference and those that do not.
Selecting Trade-Promotion Tools
Manufacturers use a number of trade-promotion tools; a higher proportion of the
promotion pie is devoted to trade-promotion tools than to consumer promotion.
A) Manufacturers award money to the trade:
1) To persuade the retailer or wholesaler to carry the brand
B) The growing power of large retailers has increased their ability to demand trade
promotions at the expense of consumer promotion and advertising.
C) Manufacturers face several challenges in managing trade promotions:
1) They often find it difficult to police retailers
a. Manufacturers are increasingly insisting on proof of performance before
paying allowance
Selecting Business-and Sales-Force-Promotion Tools
Companies spend billions of dollars on business– and sales-force–promotion tools. These tools
are used to gather business leads, impress, and reward customers, and motivate the sales force
to greater effort.
Developing the Program
In planning sales-promotion programs, marketers are increasingly blending several media into
a total campaign concept.
2) The conditions for participation
3) The duration of the promotion
Implementing and Evaluating the Program
Marketing managers must prepare implementation and control plans for each individual
promotion that cover lead-time and sell-in time.
A) Lead-time is the time necessary to prepare the program prior to launching it.
D) Additional costs beyond the cost of specific promotions include the risk that
promotions might decrease long-run brand loyalty.
a. Promotions can be more expensive than they appear. Some are inevitably
distributed to the wrong consumers.
EVENTS AND EXPERIENCES
The IEG Sponsorship report, projected that $17.1 billion will be spent on sponsorships in
North America during 2010.
68% going to sports; another 10% to entertainment tours and attractions;
More firms are creating on-site or off-site product and brand experiences.
Many firms are creating their own events and experiences to create consumer and media
interest and involvement.
Events Objectives
Marketers report a number of reasons why they sponsor events:
A) To identify with a particular target market or lifestyle
B) To increase awareness of company or product name
I) Despite these potential advantages, there are a number of potential disadvantages to
sponsorships:
1) The success of the event can be unpredictable and out of the control of the
sponsor.
2) Some consumers may still resent the commercialization of events.
Major Sponsorship Decisions
Making sponsorships successful requires choosing the appropriate events, designing the
optimal sponsorship program for the event, and measuring the effects of sponsorship.
Choosing Events
Because of the huge amount of money involved and the number of events, many marketers
are becoming more selective about choosing sponsorship events.
A) The event must meet the marketing objectives and communication strategy defined for
the brand.
1) The audience delivered by the event must match the target market.
B) An “ideal” event is also unique but not encumbered with many sponsors, lending itself
to:
1) ancillary marketing activities,
Designing Sponsorship Programs
Many marketers believe that it is the marketing program accompanying an event sponsorship
that ultimately determines its success.
A) At least 2 to 3 times the amount of the sponsorship expenditure should be spent on
related marketing activities.
Measuring Sponsorship Activities
It is a challenge to measure the success of events.
1) The supply-side method focuses on potential exposure to the brand by assessing
the extent of media coverage.
2) Demand-side method focuses on reported exposure from consumers.
Creating Experiences
A large part of local, grassroots marketing is experiential marketing, which not only
communicates features and benefits, but also connects a product or service with unique
and interesting experiences.
PUBLIC RELATIONS
Not only must the company relate constructively to customers, suppliers, and dealers, it
must also relate to a large number of interested publics.
A) A public is any group that has an actual or potential interest in or impact on a
company’s ability to achieve its objectives.
E) PR departments perform the following functions:
1) Press relations
Marketing Public Relations
Many companies are turning to marketing public relations (MPR) to support corporate or
product promotion and image making.
A) The old name for MPR was publicity that was seen as the task of securing editorial
space to promote or “hype” a product, service, idea, etc.
B) MPR goes beyond simple publicity and plays an important role in the following tasks:
1) Launching new products
2) Repositioning a mature product
C) As the power of mass advertising weakens, marketing managers are turning to MPR
to build awareness and brand knowledge for both new and established products.
D) MPR is also effective in blanketing local communities and reaching specific groups.
editorial copy than by advertising.
Major Decisions in Marketing PR
In considering when and how to use MPR, management must establish the marketing
objectives, choose the PR messages and vehicles, implement the plan carefully, and
evaluate the results.
Establishing Objectives
MPR can:
A) Build awareness by placing stories in the media to bring attention to a product, service,
person, organization, or idea.
Choosing Message and Vehicles
The MPR manager must identify or develop interesting stories about the product.
A) Each event is an opportunity to develop a multitude of stories directed at different
audiences.
Implementing the Plan and Evaluating Results
MPR’s contribution to the bottom line is difficult to measure, because it is used along with
other promotional tools.
A) The three most commonly used measures of MPR effectiveness are:
1) Number of exposures
B) The easiest measure of MPR effectiveness is the number of exposures carried by the
media.
1) This measure is not very satisfying because it contains no indication of:
a. How many people actually read, heard, or recalled the message
(i) It would be better to know the number of unduplicated exposures
C) A better measure is the change in:
1) Product awareness