lOMoARcPSD|3896859

MKW2460 Integrated Marketing Communication Final Exam

Complete Guide
Marketing Communication (Monash University)

StuDocu is not sponsored or endorsed by any college or university

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)
 lOMoARcPSD|3896859

WHAT HAVE WE STUDIED

Where are we now?
1. Consumer Analysis/ Type of Decision Making; Segmentation, Targeting, Positioning

Segmentation
a) Consumer Groups
Demographics
 Age  Gender  Income  Ethnicity

Psychographics
 Innovators  Experiencers  Makers
 Thinkers  Believers  Survivor
 Achievers  Strivers

Generations
 Millenials  Younger Boomers  Seniors
 Generation X  Older Boomers

Geographic
Geodemographic
Benefits

 Ex: fitness market (Winners; Dieters; Self-Improvers)

Usage

 Average, heavy, causal/ light users, and non users

b) Business- to- Business

 Industry
 Size (large >=100,000 employees)
 Geographic Location
 Product usage
 Customer Value (more precise value can be assigned to every individual business through sales
records and other sources of data and information, placing them in to low, medium, high value
groups)

Positioning
Product positioning is the perception in consumers’ minds of the nature of a company and its products relative to
competitors. Positioning is created by factors such as product quality, price, distribution, image, and marketing
communication.

Positioning strategy refers to when a company chooses one or two important key areas to concentrate on and
excels in those areas. It focuses on how it will compete in the market, allowing a company to spotlight specific
areas where they can outshine and beat their competition.

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

a.) Type of Positioning Strategy (ask if it’s the same as approaches(

Product Attributes Product Class

- Sets a brand apart from other brands
Ex: Soft drinks compete with energy drinks and breakfast drinks,
- Marketers identify salient benefits which are important
Diners> Fam. resto; best brand within category, etc
to customers in their purchase decisions
- Competition can come from outside the product class whereby
Ex: Dove Men+Care -> deodorant line wth moisturizers
a product is positioned against another product category
Cultural Symbol Price-Quality Relationship
Using symbols that have acquired cultural meaning &
associate a brand with theses symbols to differentiate it - Using price as characteristic of the brand
from competitors - High quality/ image pricing can be used as well as value
pricing, which reflects a very competitive price
Ex: Chevrolet -> American
Product User Competition
Associate a brand with a type of person/ group that uses
Contrast companies’ product against other
a product / service
Ex: Diet brand  healthy lifestyle brand Ex: Avis ran ads comparing itself to Hertz
Use or Application Repositioning
- Associating the brand with a specific use
- can be used to expand usage of a product
Ex: Vaseline’s new use

Where do we want to be / go?

1. Objectives
 Cognitive, Affective, Conative
SMART (Specific, Measurable, Attainable, Relevant, Timely)

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

How do we get there? (Strategy + Tools)

1. Advertising
What is it?
 Advertising is a paid form of persuasive communication that uses mass and interactive media to reach broad
audiences to connect an identified sponsor with buyers & provide information about products.
 Advertising is a complex form of communication that operates with objectives and strategies leading to various types of
impact on consumer thoughts, feelings and actions.

Key functions
 Inform
 Persuade
 Remind

Decisions

A. MESSAGE DESIGN
Strategy
Learn (Cognitive) —
 Presents rational arguments / pieces of information to consumers
 The advertising message describes the product’s attributes / benefits customers can obtain by purchasing the
product
 Influences the person’s beliefs and/ or knowledge structure by suggesting on e of a variety of potential product
benefits
 Ex: Foods may be described as healthy, pleasant tasting, or low calorie

a. Generic
 An advertisement that directly promotes the category, and not the brand
 Works best for a brand leader / one that dominates an industry
 Help stimulate brand awareness (try to develop a cognitive linkage between a specific brand name and a product
category)
 Might contain little information about the product’s attributes
 Ex: Got Milk, Campbell Campbell’s “Soup is good food”, Nintendo, Intel, Skechers

b. Preemptive
 A claim of superiority based on a product’s specific attribute / benefit with the invent of preventing the competition
from making the same / a similar statement.
 First to state advantage
 Ex: Crest toothpaste -> “the cavity fighter”

c. Unique Selling Proposition

 An explicit, testable claim of uniqueness or superiority that can be supported or substantiated in some manner,
making a unique proposition based on a functional product attribute.
 Ex: PP&S Surgical hospital, CareChex

d. Hyperbole
 Untestable claim based on some attribute / benefit
 Does not require substantiation which makes this cognitive strategy quite popular
 Exaggerated statements

e. Comparative
 Allows an advertiser to directly / indirectly compare a product to the competition based on some attribute /
benefit.
 May mention the competitor by name or present a make-believe one with a name such as “Brand X”

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

 Advantage : Tend to capture consumers attention Both brand and message awareness increase
 Downside: Less believable and can create negative consumer attitudes  Most likely to occur when a
negative comparison approach is used in the ad, downgrading the competing brand.
 Downside: If consumer x believe ad spontaneous trait transference can occur, which is placing the
negative trait on the advertised brand instead of the competitor
 Choose comparisons carefully

Feel (Affective)
Invoke feelings or emotions with the goal of enhancing likeability, recall, and comprehension
a. Resonance
 Connects a brand with a consumer’s experience in order to develop stronger ties between the product and the
consumer (Ex: using old music)
 A new form of resonance marketing is comfort advertising (encourage consumers to purchase a brand rather
than a generic product because brands have stood the test of time, and consumers can take comfort in them) 
branded > generic products

b. Emotional
 Attempts to elicit powerful emotions and feelings that lead to recall and choice such as trust, reliability, friendship,
happiness, security, glamour, passion, etc
 Used in both consumers and b-b market
 Can lead to more positive feelings about a brand.
Do (Conative)
Designed to lead directly to some type of action / response. The strategy encourages consumers or businesses to act in
some way, to do something like make an inquiry or access a website for more information. It can be tied with some type of
promotion like a coupon, contest, or sweepstake

 Encourage customer action

 Support promotional efforts
 Impulse buying

Appeals

Fear
 A common advertising appeal which uses real or perceived risks of using or not
using the product being marketed.
 Increases interest and is memorable
 Severity: level of consequence that will occur
 Vulnerability: Probability of the event happening
 Ex: Insurance, home security systems, deodorants
 Response efficacy : likelihood that a change in behaviour or actions will r esult
in desirable positive consequence
o Intrinsic reward: internal satisfaction
o Extrinsic reward: Value of the event or reward received
o Response cost: cost/ sacrifice the person will need to make to obtain the reward
o Self-efficacy: The confidence a person has in his/ her own ability 2 engage in da action / 2 stop an undesirable behaviour.

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

Humor
 The appal uses comedic, laughter, playful factors and is an excellent appeal for getting and keeping someone’s attention.
 Causes consumers to watch, laugh, and remember the ad
 Advantages:  Disadvantages
- Piques interest - Offensive
- Increases recall and comprehension - Overpowers message
- Elevates mood (positive feeling) (should focus on product!)
 Good humor difficult to achieve
 Why Use Humor?
- Captures & hold attention - Consumers enjoy funny ads
- Often wins creative awards - Evaluated as likeable ads
- High recall scores

Sex
 Sexual appeal utilize the suggestion of romance, sexual attraction, or sex to sell products.
 Used to break advertising clutter
 Problem: sex appeals may not carry the impact they used to because children are growing up exposed to sexual themes all
around them  shift to more subtle sexual cues
 Approach
- Subliminal  Goal: to affect the subconscious (sex cues / icons placed in ads); should x be easily noticeable, x
effective
- Sensuality 
- Sexual suggestiveness
- Nudity / partial nudity  used for many products, attract attention, x always to elicit sexual response; ex:undies)
- Overt sexuality acceptable for sexually-oriented products, used to break through ad clutter, often used for shock
value to get one’s attention, danger of being offensive  negative image and attitude towards brand

Advantages Disadvantages
 Increase attention  Creates dissatisfaction with one’s body
- Brand recall lower - Females
 Psychological arousal - Males
 Societal trends  Stereotyping of females
 Cognitive Impressions
- Like versus dislike

Music
 Ads that employ the use of music or jingles which connect with emotions and memories
 Has intrusive value and gets attention
 Increases the retention of visual information
 Better recall
 Can increase persuasiveness
 Stored in long term memory
 Consumers often tie particular music to a specific brand of product
 Role : Incidental (hardly noticeable / central theme(
 Select music: Familiar tune/ jingle/ background

Advantages Disadvantages
 Consumers have affinity with existing songs (have  Popular songs are expensive
developed emotions with it)
 Brand awareness, equity, and loyalty become easier
 Emotional affinity transference to brand

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

Rationality
 An advertising technique set to appeal to the audience by appealing to their logical side, using rational arguments. It is based
on the hierarchy of effects model which implies the active processing of information.
 Best media outlet: Print media and Internet
 Common in B2B: Print media, trade publication.
 Products: Complex n high involvement products If hooman process excellent @ changing attitudes

Emotions
 Advertising technique which strive to stimulate one’s emotion
 Reasons for using:
- Consumers tend to ignore ads
- Rational ads go unnoticed (unless the person is in the market for that particular product)
- Emotion captures attention
 Marketers believe its key to developing brand loyalty  create bonds with a brand]
 B2B use as well (25%  business buyers are ppl too  emotions are important in business decisions)
 Media outlets:
- Television best medium (see, hear, etc emotion)
- Internet
- Work well when tied with other appeals like humor

Scarcity
 Urge consumers to make a purchase now because of some type of limitation (supply/ time)
 Often tied with promotion tools such as contests, sweepstakes, coupons)
 Encourage customers to take action immediately, or it will be too late.

Execution Framework or Techniques

 An executional framework signifies the manner in which an advertising appeal will be presented.
 It should be chosen in conjunction with an advertising appeal and message strategy
 Common combination: emotional appeal, affective message strategy, slice of life execution
a.) Animation
o
b.) Slice of Life
c.) Storytelling
o Resembles a 30-second movie, with a plot
o The brand is at the periphery of the ad, not the central focus
o X tell a brand’s benefits/ attributes
o Audience left to draw their own conclusion

d.) Testimonial
o Business to Business Sector
o Service Sector
o Enhance credibility
o Source
- Customers
- Paid actors

e.) Authoritative
o Expert authority
o Scientific or survey evidence
o Business to bubusiness ads

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

o Cognitive processing
o Specialty print media

f.) Demonstration
o Shows product being used
o B2B sector
o TV and nternet

g.) Fantasy
o Beyond reality
o Common themes
- Sex
- Love
- Romance
o Perfume / cologne

h.) Informative
o Used extensively in radio
o B2B usage
o Key is buying situation
o Level of involvement

B. MEDIA (DIGITAL MEDIA, SOCIAL MEDIA, TRADITIONAL) -> ADVANTAGE DISADVANTAGE

o Reach o Cost o Attention get
o Sense (sight, sound, etc) o Life length
o Segmentation o Clutter

RADIO
Advantages Disadvantages
Local coverage Audio only
Low absolute cost High clutter
High frequency Low attention getting ability
Flexible Fleeting message / short exposure time
Low production cost (Only script needed / a copy of a pre
recorded message) Difficult to reach national audience
Well segmented audience Station surfing
Recall promoted Target duplication
Creative opportunities Information overload
Intimacy with DJs

NEWSPAPER
Advantages Disadvantages
High coverage Short reading life
Low cost / volume discounts High levels of advertising clutter
Short lead time / High flexibility Low attention getting
Strong audience interest Poor reproduction quality
Timely (current ads) Internet competition
Reader involvement / acceptance Aging readership
Offers geographic selectivity (local market access)
Coupons response features

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

TELEVISION
Advantages Disadvantages
Mass medium with high reach Low selectivity
Provides a combination of sight, sound, motion Short message life
Segmenting through cable High absolute cost
Low cost per contact High production cost
High intrusion value High level of clutter
Favourable image / high prestige Short amount of copy
Channel surfing & ad skipping

MAGAZINE
Advantages Disadvantages
Selectivity (Good potential for segmentation) Costs
Provide quality reproduction Limited reach
Have longetivity (Permanence) Long Lead Time
Creative flexibility Limited Frequency
Receptivity & Involvement Provide only visual messages
Service Often Lack flexibility

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

Sales Promotion
1. Definition
Sales promotion is a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or
the ultimate consumer with the primary objective of creating an immediate sale.
 An EXTRA INCENTIVE to buy : coupons, rebates, premium provide extra reason to buy
 A tool to SPEED UP SALES : Acceleration tool designed to shorten the purchase cycle
 TARGETED to DIFFERENT parties : Can be targeted to consumers / to the trade
i. Consumer – Oriented
 The use of incentive 2 motivate end users 2 purchase a brand & thus pressure retailers to stock that brand
 Incentive to buy – coupons, rebate, premiums provide extra reason to buy
 Used extensively with pull distribution strategies (The retailer is being pulled into stocking item by consumer
demand)
Pull Strategy : Promotion  Attract consumer  Purchase  Pressures Retailer to stock item
 Begin downstream with the consumer.
 Manufacturer directs marketing activities to end-user
 They want a store to stock a certain product and so the pressure is exerted up through the distribution
channel and the brand is pulled along.
 Spends a lot on advertising and consumer promotion to build up demand
 Sales promotions that attract consumers 2 want to buy an item are used as art of this type of strategy.
Ex: Damp-Rid product (new product whereby u hang it in ur wardrobe)

ii. Trade – Oriented

 The use of incentives to motivate the buying and reselling of products
 Essentially as an acceleration device, designed to speed up the selling process and maximise sales volume
 Used as part of a push strategy
 Ex: A trade allowance/ discount givs retailers financial incentive 2 stock & promote a manufacturers products

Push Strategy :
 Uses sales force and trade promotion to push the product through the channels – producer promote to
retailers who then promote to consumers.
 It is used to encourage retail buyers to purchase stock and then resell the stock to consumers.
 Strategy begins upstream and works its way down to the consumer

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

2. Why do companies invest in sales promotion?

a.) Primary Objective :

 Motivate consumer behaviour
 To intensify a brand contact for a customer / prospect, especially when these
people are in a buying / using situation

HOW .
o Providing incentives to act at one or more points along the consumer
decision-making process
o Advertising creates awareness + interest (AIDA)
o Sales Promotions influence desire + action (AIDA)
Sales promotions can also heighten awareness and reinforce a brand’s image

b.) Use of Sales Promotions in Major Purchase Product Categories

 Brand decision process may stretch over weeks / months
 Used to help move prospects and customers through the decision process

c.) Consumer promotional offers provide:

 Tangible added value
 Generally available for – a “limited time only” to creates a sense of immediacy
 Mostly one-way, non-personal messages
 BUT when used in direct response marketing, they can be personalized

d.) Loyalty Programs

 A special form of sales promotion
 Help in retaining customers
 Can attract a greater share of customers’ category spending
To achieve objective, cross selling, etc
3. Types of Consumer Promotion
(Primary goal for consumer promotion: Entice a consumer to take the final step and make a purchase)
(Advertising often creates the interest and excitement that brings consumers to the store)
a.) Coupons
 A certificate with a stated price reduction on a specified item
 Used by virtually all packaged goods manufacturers
 Manufacturers issue about 80%
 Most coupons r sent through print media wth free-standing inserts (FSI) accounting 4 about 90% of all coupons distributed
 Free standing and print most popular
 Digital coupons growing in popularity
o Easy to find and print
o Users more affluent, better educated than users of printed coupons
o Now sent to cell phones and used on smartphones

Advantages
Consumer makes conscious effort to clip the coupon
Create brand awareness
Encourage a purchase on the next trip to the store
Disadvantages
Reduced revenues (reduction in price)
80% of coupon are used by brand preference consumers, which means they likely
would have purchased that brand anyway and only offer something cheaper
Manufacturers say its one of those necessary evils to stay in business (Customers
expect coupons, and to keep competitors from taking sales away.

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

b.) Premiums
 An offer of an item of merchandise / service either free / at a low cost that is an extra incentive for customers. Types=
i. Free premiums: Small gifts / merchandise included in the product package; Only require purchase of the product
ii. Self-Liquidating Premiums : Require customer to pay for some or all of the cost of the premium plus handling and
mailing costs
 Popular in the fast food restaurant industry
 Have high impulse value and can provide extra incentive to buy the product
 Designed to not necessarily make money, but rather to cover costs and offer value to the consumer
 Ex: McDonalds and Burger King use premiums in their kids’ meals to attract children

c.) Contests and sweepstakes

(Have appeal and glamour that other sales promotion tools such as cents-off coupons lack.
Marketers like these type of promotions because they are perceived to be exciting and attract large numbers of consumers)
 Contests :
i. A promotion where consumer compete for prizes or money on the basis of skills/ ability.
ii. Winners are determined by judging entries or ascertaining which entry coms closest to some predetermined criteria
iii. Consumers compete for prizes / money on the basis of skill / ability proof purchase is generally required to enter / an
entry form must be used

 Sweepstakes/ games:
i. Winners are determined purely by chance
ii. No proof of purchase is required to enter
iii. Usually permits are required to conduct contests and sweepstakes
iv. Winners are chosen by random selection from a pool of entries or generation of a number to match those held by
game entrants.
v. Increase extrinsic value : attractiveness of prize
vi. Small, incremental rewards given sporadically will encourage people to keep participating
vii. Scratch-and-win tickets are popular becuz people know instantly if they are winners or losers

 Venues
i. Internet and Social Media
o Popular venue
o Allow interactive games  increase intrinsic value of playing
o Companies can capture data from individuals who play  analysed and used to plan marketing programs
o Internet is also cheaper

ii. Goals
o Encourage traffic to a website / to a retail location
o Boost sales – questionable
o Create awareness and exposure
o Intrinsic rewards usually draw people back, not the extrinsic rewards

 Problems
i. Do not contribute to brand building
ii. Focus not on brand
iii. Effectiveness
iv. Legal considerations
v. May generate negative publicity
vi. Used by professionals or hobbyists

(Most firms now use consultants who specialise in the design and administration of contents and sweepstakes to avoid any
legal problems)

d.) Refunds and rebates

A type of price reduction in that they offer customers a cash refund, usually after a proof of purchase
Sometimes the government offers rebates to increase consumer uptake of certain products or services (ex: rebates for
rainwater tanks or solar panels)
 Small rebates are typically handled by the manufacturer and can be claimed by showing proof of purchase (receipt/
barcode label)
 Large rebates are usually handled by the seller (ex: car rebates)

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

Slippage : Involves the customer not claiming the rebate (forgetting / perceived as being too difficult)

e.) Sampling
 Involves delivering a free good / service wth the hope the person / business will like the brand & purchase it in the future
 Businesses use sampling extensively to encourage prospects to try the brand and compare it to the brand theyre
currently using
 Services can also provide samples (ex: 7 day free membership at a fitness center / free initial consultation with a lawyer
or dentist
 Works best when:
i. The products are relatively low unit value, so samples do not cost much
ii. The products are divisible and can be broken into small sizes that can reflect the product’s features and benefits
iii. The purchase cycle is relatively short so the consumer can purchase in a relatively short time period
Ex: Manufacturers of packaged goods products such as food, health care items, cosmetics and toiletries (esp new
product or brand to the market)

 Benefits of Sampling
i. Introduce new products
ii. Generate interest (esp for B-to-B operations)
iii. Generate leads (esp for B-to-B operations)
iv. Collect information, esp for response sampling
v. Boost sales (ppl buying brand immediately or on their next trip)
vi. Many consumers search the Internet for information, and companies can provide an opportunity for them to request a
sample at that time.

f.) Bonus Packs

 When an additional / exta number of items are placed in a special package
 Typical bonus (20% - 100%)
 Most common (30% bonus)
 Objectives
i. Increase usage of a product
ii. Match or preempt competition
iii. Consumers can stockpile the item so an offer by a competitor is no longer attractive
iv. Can enhance brand loyalty,, esp if consumers feel that they are getting good deal with the bonus pack.
v. Can attract new users, but most likely these are individual who have tried the brand in the past and have a favourable
attitude towards the brand.
vi. Can encourage brand switching, but under the same scenario as a new user

g.) Price-offs
 Price reduction offered on the package
 Ex:
i. Price that is lower than the regular pice
ii. On-pack coupons
iii. Free goods “buy one get one free”
iv. Enlarged packages “more for same price”

 Caution
i. Don’t repeat too frequently / may interferer with customer perceptions of the brands reference / regular price
ii. Word carefully so as not to undermine brand image
iii. Be careful not to create misleading impressions’=

Advantages Disadvantages
Best n quickest method to stimulate sales Negative impacts on profits

Entices triial purchases as financial risk is reduced Encourages greater price sensitivtiy (consumers more
reluctant to pay full price for the item in the future)
Encourages brand switching
Encourages stockpiling Potential negative impact on brand image (long term)

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

h.) Overlay and Tie-Ins

 Overlay
i. Combination of 2 or more consumer promotions into a single campaign
ii. May involve a promotion for a sweepstake or contest with a coupon attached to encourage purchasing the product
iii. Common overlay: passing out coupons at the same time consumers are given a sample of the product
 Tie-ins : when 2 or more companies or products are promoted within a single campaign
 Intra company tie- in : involves products within one company
 Inter- company tie-in : involve 2 / more companies working together (partnering)

4. Summary of consumer oriented promotions and market objectives

Below are sales promotion tools that can be used to accomplish various objectives of marketers and identifies whether the
extra incentive or reward is immediate or delayed.

5. Trade- oriented sales promotion objectives

Targeted to marketing intermediaries such as wholesalers & retailers
There are several reason promotions are targeted to the trade, including:
 Obtain distribution of new products
 Maintain trade support for existing products
 Build retail inventories
 Encourage retailers to display existing brands
Objectives: encourage channel members to push the product through the channel to market the product

Increase distribution: This can be achieved by decreasing distributors / retailers risk of being left with unsold stock. (e.g. offer
discounts and allowances to help them promote the brand).
Encouraging trade inventory building – manufacturers may offer special margins or extra merchandise at no cost to increase
retailers inventory. Also provide special-returns allowances – encourage retailers to risk higher inventories.
Balance demand + Control Inventory Levels: This process requires careful monitoring.
(a) Ensure retailers / distributors can get stock quickly to meet increases in demand.
(b) Ensure that consumer demand can be increased when not enough stock is moving to keep company staff busy.
Very common in the service industry. You will often see that in peak times the cost of hotel rooms increases (premium prices) but
in low demand time sales or special promotions are used to increase demand. The last thing that the company wants is empty
rooms and staff with nothing to do.
Respond to Competitive Offerings: Manufacturers can use a range of strategies (e.g. provide incentives for the retailer /
distributor to load up on their brand so that they have less space and demand for a new brand).
Can also offer special pricing or product extras to prevent current customers from switching to a newer competitive offering.
Obtaining distributor promotional assistance – cooperative advertising, promotional support, contests or merchandise allowance to
provide special display space to provide additional selling efforts.
Trade-oriented sales promotion should also be based on well-defined objectives and measurable goals and a consideration of what
the marketer wants to accomplish.

6. Types of Trade Promotions

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

a.) Trade Allowances : provide financial incentives (Discount / deal to stock) to promote, or display manufacturer’s product,
motivating them to make purchases
 Off- invoice : Financial discounts given for each item, case, etc ordered; encourage channel members to place order
 Slotting Fees: Money paid to retailers to stock a new product (Retailers charge fees for a slot / position on shelf)
 Exit Fees : Money paid to retailers to remove an item from their inventory

b.) Trade Contests

 Used to achieve sales targets
 Funds used in trade contests are known as “spiff money”
 Rewards for winning can be cash, but prizes seem to work better
 Trade contests can be designed for various channels, or for various companies within one channel.
 Some organizations do not allow, seeing it as a conflict of interest in which sales people may not do what is best for
customers, or for the company.

c.) Trade Shows

 Allows sellers to display merchandise and to seek prospects
 Allows buyers to compare merchandise of various manufacturers and to see vendors for their stores.
 Few deals finalized at trade shows
 Its more of an opportunity to meet, look, and learn.
 International attendees want to make deals
 The number of international trade shows has increased as global competition has increased
 Movement to smaller regional and niche shows (make it easier for companies to locate good prospects, and the costs
are lower)

d.) Trade Incentives

 Cooperative Merchandising Agreements
o A formal agreement between a manufacturer and a channel member (normally a retailer) that specifies the
marketing functions the channel member will perform in exchange for the financial incentive.
o Popular with manufacturers as retailers must perform some marketing functions, manufacturers have control,
and it’s a long term commitment
o Retailers like them cuz they can schedule calendar promotions to ensure one brand is always on sale
o Problem: retailers want the price allowance, (just give us the discount, we don’t wanna perform any marketing
functions)
o Another trade incentive: premium / bonus pack – which is free additional merchandise with an order (Ex: every
100 cases ordered another 5 are given free)

 Cooperative Advertising
o The most used and well-known trade incentive is cooperative advertising
o Manufacturers pay a part of the cost of retail advertisements in exchange for promoting the manufacturer’s brand
o To earn the co-op dollars, the retailer must meet the manufacturer’s guidelines
o Also, no competing brands can be in the ad
o Retailers accrue co-op dollars based on sales
o Co-op advertising allows retailers to expand their advertising budget since the manufacturer will pick up 5-=80%
of the costs
o Manufacturers like co-op ads cuz their brand is being promoted in local markets by retail stores.

 Premiums & Bonus Packs

What are the key factors to consider?

 Product lifecycle
 Type of decision making
 Luxury product

Background . Traditional media faces many challenges with clutter and declining attention and thus advertises look for
new ways to reach consumers, using alternative methods. It requires creativity and imagination

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

How do we ensure arrival?

1. Evaluation
A. Not everything is tested (Why not all MC messages will be evaluated / measured?
 Cost- benefit analyses may show that the cost of measuring and evaluating the brand message is not viable/

B. Effectiveness Measurement Pro and Cons

Benefit Limitation

Avoid costly mistakes Objections from creative personnel

(Ex: wrong audence target, inappropriate source appeal) Evaluations seen as decreasing creativity

Evaluate alternative strategies Problems with research methods

Decide which MC function (tools) --> ex: traditional Difficult to separate out the effects of each MC function
mass media vs sponsorship vs events vs interactive from the overall marketing mix
Increase the efficiency of IMC
Cost of measurement
Ensure that the message being communicated achieves
When time is tight, want to leverage an apparent
what marketers want it to (Ex: Is it too reliant on jargon that
opportunity, inclined to x waste money on evaluation
one may not understand / too sophisticated that the
Focus: getting job done and using money saved to make
consumer focuses on the visuals but has little recall of the
better visual / buy extra media time -> risky
brand name?)
Disagreement as to what to test
Determine if objectives are achieved
Different ppl in the company may want to test different
Include selecting the correct methods to assess the
aspects of the MC campaign
objectives set
--> Lack of consensus -> nothing get tested

Time
x want to wait around until evaluation results come
Might limit perceived window of opportunity- leverage brand

C. What to test
 Source Factors
 Message Variables
 Media Strategies
 Budget Decisions

D. When to test
I. PRETESTING: MEASURES TAKEN BEFORE THE CAMPAIGN IS IMPLEMENTED
a.) Advertising Tracking Research
An in-market research method which examines ads that have launched, monitoring a brand’s performance and
advertising its effectiveness.
b.) Copytesting
Assesses a finished marketing piece or one in the final stages f development and elicits responses to the main
advertising message as well as the presentation format. Evaluates the main message and format, assessing
whether the MC conveys the intended meaning to the message recipients. It can be tested either as a finished
document / material / in final stages of development.

COPYTESTING
Advantages Disadvantages
Cost effectiveness Consumer may become a self- appointed expert
- Results can be used to perfect future ads and - Know asked to critique ads
campaigns by understanding what will be more likely -> try to become more expert in their evaluations
to succeed in a given marketplace - Pay more attention n being more critical than usual

Control Number of ads that can be evaluated is limited

- Order in merit or paired comparison, ranking

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

Endorsements by A halo effect is possible

independent third parties - Rate an ad as good based on a few aspects and overlook specific weakness

Preference for a types may overshadow objectivity

Achievement of credibility
- High ratings ofr ads wth emotions/ pictures than those employing copy, facts / rational criteria
-> Ads judged favorable by jurists who prefer emotional appeals

II. POSTESTING: MEASURES TAKEN AFTER THE AD / COMMERCIAL HAS GONE TO AIR
a.) Advertising Tracking Research
 Tracking Studies : Examines ads that have launched; Nielsen IAG & Milward Brown
b.) Measures
 Brand & ad recognition
 Unaided brand awareness
 Memorability, Likeability & Message Recall

E. Where
 Laboratory Tests : Tests in which participants are brought to a specific location for testing
 Field Tests : Tests conducted in more natural viewing situations
 Online/ Internet : Online observation is facilitated by recording and analysing usage patterns (view/ hits/ clicks)
: Online panels perform same testing functions as lab / field settings, but quicker & lower cost

F. How? (Testing Guidelines and Appropriate Tests)

a.) Portfolio Test:
 Displays a set of print ads containing the one being evaluated
o (participants do not know which piece is under scrutiny)
o (mimic reality in the senses that consumers normally are exposed to multiple messages)
o (researchers can compare target piece with other marketing messages)
b.) Theatre Test :
 Displays a set of television ads, including the one being studied
c.) Online Test :
 (Replace portfolio and theatre tests)
 (Costs less and provides immediate results)

Pretesting Finished PRINT Ads

Purpose: Determine how the finished product will perform, make corrections if needed, and fine tune the message.
The determination as to which method will be used will be based on the needs and objectives of the advertiser.

a.) Portfolio Tests

o Lab method designed to expose a group of respondents to a portfolio consisting of both control and test ads.
Participants are then asked what info they recall from the ads  Highest recall are most effective.
Problems
o Other factors affect recall: interest in the product/ category; knowing participating a test
o Recall may not be the best test for low involvement product, ability to recognize may be a better measure

b.) Readability Tests

o Flesh formula – assess readability of the copy by determining the average number of syllables per 1—words. It
is designed to indicate how difficult a reading passage in English is to understand. Other factors include human
interest appeal of the material, length of sentences, and familiarity with certain words and their correlation with
the educational background of target audience. Only effective if used in conjunction with other pretesting
methods

c.) Dummy Advertising Vehicles :

o Improvement on the portfolio test in which ads are placed in ‘dummy’ magazines developed by a research.
o Test recall, readership and interest generating capability of ads in a more natural setting than portfolio test

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

o Same problems with portfolio test

Pretesting Finished BROADCAST Ads : Theatre Tests

Method : Viewing ads in a theatre setting

 Participants are invited to view pilots of new TV programs

 Embedded in the programs (or following after) are the test commercials
 3-4 tested commercials in 6-8 ads
Objectives: Assess changes in product preferences; interest & reaction; recall

Pretesting Finished BROADCAST Ads : On-Air Tests

 Testing of finished / rough commercials through actual TV programs in specified test markets
 Offer some of the same pros and cons of theatre test but in a more realistic setting
 Not used that often; Limitation: “day-after recall”

Cognitive Neuroscience
 Measure brainwave activity
 Reveals physiological reactions
 Provides information on where’re the information is being processed in the brain and what consumers do with the
information they receive
 Latest advancement in advertising research
 Better indicator of a person’s true reaction since it does not rely on self-reporting

Online Evaluation Metrics

 Primary measure of online ads is click-throughs (number of ppl who click on the ad and go to the website)
 Newer metric: Length of engagement (Measures how long a person stays at a website)
o Dwell rate : measures the proportion of ad impressions that result in users engaging with an ad
o Dwell time: : measures the amount of time users spend engaged with a particular ad

Ask if we need to study the Web Metric, Figure Sales Funnel Eficiiency, Web clatter, Social Media Metrics,
Ask iff behavioural evaluations are needed

DATABASE/ DIRECT RESPONSE MARKETING

ii. What is it?
 DATABASE MARKETING : An interactive approach which uses individually addressable marketing media and channels to
provide information to a target audience, stimulate demand, stay close to customers by recording and storing an electronic
database memory of customers, prospects and all communication and transactional data.
o Form of direct marketing using databases of customers or prospects to generate personalized communications in
order to promote a product / service for marketing purposes
o Involves collecting and utilizing customer data for the purpose of enhancing interactions with customers and developing
customer loyalty.
o Emphasize: identify customers & build relationships with them

 DIRECT MARKETING : A system where organisations communicate directly with target customers to generate a
response or transactions (without the use of other channel members)

iii. Why do companies have database or direct marketing?

DATABASE MARKETING
 Provide information to a target audience
 Stimulate demand

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

 Stay close to customers by recording and storing an electronicdatabase memory of customers, prospects and all
communication and transactional data

iv. Objectives of direct marketing/ Direct Response Marketing (usually behaviours or conative outcomes)
 Produce Leads
 Encourage repeat purchase
 Cross-selling products
 Maintain customer satisfaction
 To educate/ inform customers
 Strengthen relationships
 Promote social action

v. How? (Strategies, tools, media)

DATABASE MARKETING
a. Permission marketing
 Sends materials only to individuals who give permission
 Backlash to spam, junk mail
 Advantage : Higher response rate

b. Customer Relationship Management

c. Frequency / Loyalty Programs

 Offer consumers free merchandise / discounts for a series of purchases
 Goal :
o Maintain / Increase sales, margins, profits
o Increase brand loyalty
o Preempt / Match competitors offer
o Encourage cross selling
o Differentiate brand
o Discourage entry of a new brand
 Ex: Airlines and grocery stores
 Types:

Reward Program Recognition Program

- Each purchase accumulates points which can be
exchanged for goods / services
- Motivated by consumer's desire to acquire material
possessions
- Utilises a clubc concept
- Membership cards provide customers with access to
special privileges
- Motivated by the consumer's need for esteem / status
- Build relationship -> special promos to delight customers
who are already satisfied

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

vi. Forms of Direct Marketing

Media Disadvantages and Advantages + Key Tools and Strategies

a.) Direct Mail

 Most common form of direct marketing
 Brokers selling these lists provide info about the composition of the lists and how much was spent by buyers on the lists.
 Ex: Caterpillar marketing team “Eat My Dust” campaign
 Quality depends on list ->
Response list : Have made purchases/ have responded to direct mail offers in the past (sell for $100 / 1k
names)
Hot List : Have responded to a direct mail offer within the last 30 days (Most likely to purchase; more expensive-
> $250 / 1k names)
Compiled List : Meet specific demographic characteristics (Typical response rate= <1%) (Disadv: Most
American purchasers x respond to mail offers)

b.) Catalogs
 Long term impact (lay around for a long time; picked up months after coming out)
 Low-pressure sales tactic -> 1st stage in the buying cycle
 Large catalogs sent to masses -> companies use database to send catalogs to individuals most likely to use them, either
through ordering through the catalog, by phone/ online.
 Norm: Specialty catalogs (based on each person’s interests)
 Important for business-to-business

c.) Catalogs
 Direct response to ads
 Cost effective and can be used to build relationships with customers
 Communications can be personalized
 Offers can be customized to meet individual needs
 Search engine ads can be purchased that will make direct offers to individuals seeking specific products

d.) Telemarketing (use phones to solicit sales)

 Outbound : Telephone calling by the marketer/ marketer’s agent to individual
prospects, seeking purchase, subscription, membership, or
participation by the call recipient.

 Inbound : Marketers facilitate and invite prospects to call a central location via
a long-distance number, by a toll-free 800 number, or a fixed-cost 900 number (Customers call the
company to place an order-> call centre)
(Advantage: presents an opportunity to cross-sell other products)
(Cold calling is difficult-> But if database is used-> customers more likely to respond-> effective if it is a
list of prospects)

Advantages Disadvantages
Selective reach Image factors
Segmentation capability Accuracy
Frequency potential
Flexibility
Timing
Personalisation
Costs
Measurement of effectiveness
Testing

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

PUBLIC RELATIONS
What is it?

 A management function which evaluates Public (stake holders) attitudes and identifies the policies and procedures of an
individual / organization with the public interest and plans and executes a program of action to earn public understanding and
acceptance (Belch & Belch, 2015)

 A tool to build good relations with the company’s various publics by obtaining favourable publicity, building up a good
‘corporate image’ and handling / heading off unfavourable rumours, stories and events (Armstrong & Kotler, 2009)

 The deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization (or
individual) and its publics.
Functions, roles, values – Why does a company have Public Relations? Why company keeps HR?
i. FUNCTIONS
 Building marketplace excitement
 Assess the corporate reputation
 Audit corporate social responsibility
 Identify internal and external stakeholders
 Influencing influential ???
 Create positive image – building activities
 Introducing new products with little advertising
 Prevent or reduce image damage

ii. ROLES

iii. VALUES
Advantage
a.) Credibility
 It benefits from the endorsement of independent and objective 3rd parties who have no association with the product
 Not seen as being sponsored by the organisation  Enhances perceptions of credibility

b.) Cost Efficiency

 It is a cost-effective way to reach the market
 Do not have to pay for media time or space

c.) Clutter Avoidance

 It breaks through the clutter
 Generally, news items without being cluttered by other ads (new technology)

d.) Lead Generation

 There can be improved media involvement among consumers
 Certain announcements can lead to inquiries

e.) Selectivity
 It is a highly targeted way to conduct public relations
 It can create influence among opinion leaders and trendsetters
 Can reach specific groups

f.) Image building

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

 Can develop a positive image for the company

Disadvantage
a.) Lack of control over media

b.) Media time and space not guaranteed


c.) Difficulty in coordinating messages

 It is difficult to tie in slogans and other advertising devices

d.) Measurement problems

 There are no standard effectiveness measures

Activities that Affect a Company’s Image

a.) Empowerment of employees
b.) Charitable contributions
c.) Sponsoring local events
d.) Selling environmentally safe products
e.) Outplacement programs
f.) Supporting community events

Creating a Positive Image

Strategies of PR to enhance cognitive image?
1. Cause Related Marketing
 Definition: a program whereby a firm ties a marketing program to a charity in order to generate goodwill.
 This type of partnership agreement between a non-profit cause and for-profit business assumes that consumers prefer to
purchase from companies that support causes
 Idea : maximise the benefits for each partner
 Why? to develop stronger ties and to move consumers, as we ll as businesses towards brand loyalty.
 The ‘for-profit’ company benefits from its association with the good cause
 In brand parity situations, the causes a company supports can make a difference to consumers. It can create a bond with
them, depending on how strongly they feel about the cause.
 Works best if the cause is related in some way to the business.
 Balancing game= causes one person likes another may dislike

Benefit

a.) To company
 Additional customers
 Increased profits
 Consumer goodwill for the future
 Better relations with government agencies
 Reduced negative public opinion

b.) To non- profit organizations

 Positive publicity
 Boost contributions (funds, etc) to a non-profit organizations

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

2. Green Marketing and Pro-Environmental Activities

 Definition : Green marketing is the development and promotion of products that are environmentally safe
 Survey indicate people are concerned about the environment and support green marketing; ex:
People try to save electricity, recycle newspaper, return bottles and cans, buy products – recycled materials
 Consumers support, but only buy them if the price and quality is equal to competing brands that are not green
 Most consumers still see green products as being inferior

Promoting Green Activities

a.) Low-key approach

 Post information on their websites
 (ex: Coca-Cola and Starbucks)

b.) Promote product first, pro-environment second

 Gas mileage is important
 (ex: Toyota Prius)

c.) Green products within brand line

 (ex: Nike’s “FlyKnit” shoes)

d.) Promote pro-environment

 Central thrust of their message
 (ex: Body Shop—foundations in green marketing Patagonia, Honest Tea)
P.S: Faking Green/ Greenwashing can be very damaging g to a company’s image and create a backlash

Preventing or Reducing Image Damage

a.) Damage Control: reacting to negative events, regardless of the cause. Negative publicity travels fast, especially with the
Internet and 24/7 news programs.
b.) Causes of bad news
 Firm making an error / did something wrong
 Unjustified / Exaggerated negative press

c.) Strategies
 Proactive prevention strategies
i. Entitling
o Attempts to claim responsibility for positive outcomes of events
o Ex: When New Orleans Saints won the Super Bowl, New Orleans used the entitlings approach to associate
the city with the saints and encourage people of visit.

ii. Enhancements
o Attempts to increase the impact / desirability of an outcome of an event in the eyes of the public.
o Ex: When the medical association said that an aspirin could help reduce the chances of a heart attack, Bayer
immediately seized on the information and promoted the idea that Bayer aspirin could save lives.

 Reactive damage- control strategies

i. Internet Interventions
b. Use internet to react (post a reply that the employee identify himself and provide the
company’s viewpoint)

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

c. Consumers can spread bad news quickly

d. Assign employees to monitor online communications
(Involves hundreds of post per day)
(Watch for trends increased chatter)
(Must choose which warrant a reaction)
e. Provides information on what people are thinking

ii. Crisis Management

f. A company can either accept the blame for an event and offer an apology / refute the
charges
g. The event can be an opportunity / problem
h. Ex: Pepsi quickly reacted to a claim that someone had put a hypodermic needle in one of
its products, saying it was impossible and showed videos of how the bottles and cans
were upside down until the moment they were filled
i. Ex: When Toyota was hit with allegations of faulty products and lack of quality control
1. Denied problems
2. Launched full-scale PR campaign
3. Social Media PR
4. Asked liyal fans to use positive comments on their social media sites
.
iii. Apology Strategies
j. Good approach when the firm is at fault
 Must immediately offer an apology and not try to blame other companies
k. Reactive form of crisis management
l. Good strategy when a firm is at fault with minor violations or can’t deny responsibility
m. Effective for creating emotional bond if the apology is sincere
n.
iv. Impression Management
o. An attempt to project a certain type of image to others
p. To consciously / unconsciously control the images that are projected in real or imagined
social interactions
q. A company wants to control the images people have of it
r. To do this, companies attempt to reduce the negative impact of any event that can modify
/ negatively effect its image :
1. Expressions of innocence : Try to convince the public that the company
and its leaders were not associated with the event in any way
2. Excuses : Explanations designed to convince the public that the firm
and its leaders are not responsible for the situation or that the situation
could not have possibly been foreseen.
3. Justifications : Involve using logic to reduce the negative impact of the
incident
4. Other explanations

3. Sponsorships
To build brand equity and positive feelings toward a company, companies often engage in sponsorships and event marketing.
The premise behind sponsorships is that positive feelings toward the sport, athlete, team, concert, or whatever is being
sponsored will be transferred to the brand.

a.) Event Sponsorship

A type of promotion whereby a company develops sponsorship relations with a particular event such as a concert,
sporting event or other activity

b.) Sponsorship Objectives

 Enhance the company image
 Increase firm visibility
 Differentiate the company / brand from competitors

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

 Showcase specific goods / services, or a particular brand

 To develop a closer relationship with current / prospective customers
 Unload excess inventory  if the company is allowed to have a booth at the event and either sell items / give them
away as samples

c.) Social Media and Blogs

 Social media is now part of sponsorships
 One approach is to sponsor bloggers such as classymommy to endorse a brand.
 For some bloggers it is a lucrative business
 Retailer K-Mart used blogs to generate buzz

4. Event Marketing
 Similar to sponsorships except event marketing involves a company’ support of a specific event
 It might be a local rodeo or special Olympics
 Closely related to lifestyle marketing and almost always involve setting up a booth or display at the event
 Sponsoring an event can bring name recognition to a company
 Can provide an opportunity to build closer ties with customers and vendors
 Can boost employee morale

5. Cross Promotions
 Once the event is over, its time to track the results so the success of the event can be evaluated
 Most event marketing sponsorships result in increase ini intentions to purchase and about half of them result in sales
 Cross promote with event’s advertising program and publicity releases
 Cross promote with other event sponsors
 Camp eBay
 Potential to reach consumers one-on-one

ALTERNATIVE MARKETING
Background . Traditional media faces many challenges with clutter and declining attention and thus advertises look for
new ways to reach consumers, using alternative methods. It requires creativity and imagination
What is it?
1. In – store Marketing Tactics
 In-store “make or break” time
 Seek to Engage customers
a.) Most engaging
o End-asisle displays
o Merchandise displays
b.) Least engaging
o Ceiling banners
o Overhead mobiles
 Use color, light, sound, taste, smell  Increase engagement
 Motion  Increase engagement
a.) Video screens
b.) Television monitors
c.) Digital signage

2. Point-of-Purchase Displays

i. Effective
 Tie the display into current advertising, promotions, and brand image so consumers recognize the display quickly

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

 Make display dramatic to get attention (digital> static)

 Keep the color of the display down  Product and signage stand out
 Make display versatile -? Easily adapted by retailers
 Make display re-usable and easy to assemble
 Make display easy to stock
 Customize the display to fit the retailer’s store
 From a retailer’s standpoint, a POP needs to be easy to construct, easy to use, and boost retail sales.

ii. Measuring POP Effectiveness

 Retailers and manufacturers want effective display as they benefit both parties
 Advantage that POP display offers : POS (Point of Sales) data generated by the retail stores
c.) For retailers
o Indicate time to withdraw / change display
o Identify POP displays with largest impact
o Test market different displays
d.) For manufacturers
o Know which displays work well and how to improve displays to improve performance
o Strengthen relationships with retailers as the 2 work together to boost sales

3. Brand Communities
a.) Ultimate demonstration of
 Brand loyalty
 Brand devotion
b.) Reasons for joining
 Affirmation of their buying decisions
 Provides social identity and form bond with fellow brand owners
 Can exchange stories, swap advice, provide help to each other and new members
 Provides a venue for feedback and new ideas
 Offer symbolic meaning
 Provide for interaction between the brand, consumers, and companies that participate
 Shared values and experiences
c.) Customer driven
d.) Provide a richer brand community experience
e.) Ways to Enhance a Brand Community
 Create benefits for individuals to encourage them to participate and join in the brand community
 Materials items not available to the public can be provided to members
 Involve firm representatives in the groups  sponsor events and meetings
 Promote communications among members  Brand communities can encourage and provide an avenue for
members to communicate with each other

 Build strong brand reputation  Companies must continue its strong brand name and maintain its reputation
Why consider doing that? (reaching out to target market)

Traditional Marketing

Alternative marketing forms

1. Guerrilla Marketing
Characteristics
Developed by Jay Conrad Levinson
Designed to bring Instant results with unique, low-cost approaches

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

Focus on region / area

Involves interacting with customers in a unique and different way
Goa: Create excitement and generate buzz
Often connected with grassroots efforts to launch a brand / market a product
Often alternative media are used
Reasons for Using
Find new ways to communicate & interact with customers that bypass the traditional methods
Make advertising more accessible to consumer
Can impact a spot market
Create buzz that can quickly spread beyond where it is occurring
Can be used to build relationship with consumers

2. Buzz Marketing
Characterisics
Word – of – mouth marketing
Emphasizes consumers passing along product information
Higher credibility
Can be:
i. Consumers / Individuals who truly like a brand (locate em!)
 Ideal ambassador
 Can spread buzz through personal conversations wth people & also online through chat rooms, blogs, & emails
 Hv no control of what they say/ who they talk to

ii. Individuals sponsored by a brand (to promote and sell) / Sponsored Consumers
 Agent / advocate for a new brand; Brand ambassadors, customer evangelists
 Typically individuals who already like brand
 Offer incentives in exchange for advocacy (cash, merchandise, etc)
 Selection based on: Devotion to brand and size of social circle (influence)
 Expected to design their own grassroots effort on how to promote the brand (ex: low cost marketing events &
social networks)
 Key to success: Honest about relationship (genuine and believe in the product being pitched)

iii. Company or agency employees (brand advocates)

 Employees posing as customers
 High-risk strategy, esp if people don’t identify themselves as employees and the public finds out
 Word of Mouth Marketing Association suggests 3 principles for buzz marketing
o Honesty about relationship (wth company and what you get as a sponsor)
o Honesty of opinion (don’t just say what sponsor wants)
o Honesty of Identity

Stages (must use brand ambassadors / customer evangelists)

i. Inoculation : When product is being introduced; difficult to generate buzz marketing during this stage
ii. Incubation : When product is being tried by a few innovators and trendsetters
Buzz marketing is easier, but still difficult
iii. Infection : When widespread use of the product begins.
Best time for a buzz marketing program
True customer-generated buzz occurs after awareness, and often the awareness is generated through
traditional media

Preconditions
i. Brand : unique, new, or perform better than the competition
ii. Brand : Stand out
iii. Advertising should be

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

 Memorable
 Intriguing
 Different
 Unique
iv. Works best it a company can get customers involved
v. Works becuz people trust another’s opinion and people like to give their opion
vi. Get people to talk

3. Experiential Marketing
i. Intersection of direct marketing + field marketing + sales promotion
ii. Basic premise: increase experience of direct marketing through an interactive connection (experience marketing
iii. Engage consumers
iv. Step to create positive experiences
 Clear, concise target segment
 Identify right time, right place
Engage emotionally
 Engage logically
v. Clearly reveal brand’s promise

4. Lifestyle Marketing
i. Involves identifying marketing methods which are associated with hobbies and entertainment
ii. Making contact with consumers where they go for relaxation, excitement, socialization, and enjoyment
iii. Ex: A/X Armani Exchange reaches young consumers by sponsoring & setting up booths at music festivals and
fashion shows

5. Product placement and Branded entertainment

i. Alternative marketing methods designed to make an impression on people without looking like advertising
ii. Product Placement
 Planned insertion in a movie, TV, book, ec
 Product placement
o Increase brand awareness
o Create amore positive attitude towards the bramd
o No immediate impact on sales
 Advantage
o Low cost per viewer
o Impressions do not stop with them movie
o After theatre> DVD movie rentals
o Pay-per-view television
o Movie channels on TV

iii. Branded Entertainment

 Integrates entertainment and advertising by embedding the brand into the storyline of the movie, TV show, or
other entertainment medium.
 Usage increased sharply with TV reality shows
 Also found in novels, plays, songs, and movies.

iv. Key Factors in Product Placement and Branded Entertainment (for successful PP etc)
 Media selection
 It helps when other promotional materials are produced that reinforce or remind individuals of the brandend even
the placement (Supporting promotional activities)
 PP and BE work because  No call to action  Consumers tend to have a positive attitude to wards the brand
 Ppl in the 15-34age group are more likely to notice product placements and be more receptive to them.

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)

 lOMoARcPSD|3896859

 Sometimes product placement allow companies to bypass regulations and get their products in front of their
intended audience.

v. Reasons for increased Spending

 The appeal is stronger for a brand in a non-advertising context
 Perceptions of what others think is important, so if a favourite actor or actress is seen using the brand, then it
supports the consumer using it
 Provides post-purchase reassurance that a good decision was made
 Reach individuals who place little value on brands. If someone they admire uses a particular brand, then
maybe he/she should consider purchasing it.

Examples of Alternative Media

4. Video games
a. Benefits
o Game just as enjoyable with ads b. New video game technology
o Increase brand recall o Change ads in real time
o Positive brand associations o Rotate ads with new ones not seen before
o Can deliver time sensitive ads with special
offers that expire
o Use interactive ads
5. Cinemas

Advantages Disadvantages
Segmentation - Match to movie audience High production cost
Mood- If like movie = mood can carry over to brand Slow to build reach
Impact of sight sound, motion
Geographic coverage
Captive audience

6. Subways
7. Street and mall kiosks
8. Escalators
9. Parking lots
10. Airlines
11. Shopping bags
12. Clothes

Downloaded by Aayush Sinha (aayushsinha50@gmail.com)