Comstrat380 1nd EditionExam # 1 Study Guide Lectures: 1 - 7Lecture 1 (January 22nd)I. Defining modern advertising included six basic attributed of advertising a. Paid communicationb. Sponsor is identifiedc. Can be one-way, two-way, multiple-way d. Reaches a broad audiencee. Conveyed through mass media, interactive media, word of mouthf. Seeks to inform or persuade II. Publicity, public relations, direct-response, specialties- together, these tools are known as marketing communication, or marcom III. Advertising:a. Economic and societal rolesi. It works to create demand for brands and lower prices for consumersii. It shapes our self-image and sense of style through things we wear and useb. Advertising generates costs efficiencies by increasing demand among large groups of people, resulting in higher levels of sales and ultimately, lower prices c. Demands creative, original messagesd. Must be strategically sound, well executede. Is delivered through some form of mediaf. Is developed as singe ads or campaigns IV. Types of Advertisinga. Brand advertisingb. Focused on long-term brand identity and imagec. Retail or local advertising d. Focused on selling merchandise in a geographical areae. Direct-response advertisingf. Tries to simulate an immediate consumer response g. Business-to-business advertisingh. Sent from one business to anotheri. Institutional advertisingj. Establishes a corporate identity, attempts to win the public over to the organization’s point of view k. Nonprofit advertisingl. Used by not-for-profit organizations to reach customers, members, volunteers, and donorsm. Public service advertisingn. Usually produced and run for free on behalf of a good cause Lecture 2 (January 24th) Marketing: The way a product is designed, tested, produced, branded, priced and distributedI. Marketing also focuses on managing customer relationships to benefit all of a brand’s stakeholdersII. The objective of most marketing programs has been to sell product, goods, services, or ideas. This is done by matching a products availability to the consumer’s needs desires or demandsProduct category: The classification to which the product is assignedI. Marketing managers manipulate the marketing mix, also called the four P’sa. Product - consumerb. Price - costc. Place - convenienced. Promotion – communicationII. Marketing Mix:a. The product (consumer)i. Design, performance, and quality and key elementsii. Communication works to build awareness of a brand b. Pricing (cost)i. It is based on:1. What the market will bear2. The competition3. What the consumer can afford4. The relative value of the product5. The consumer’s ability to gauge that value c. Place (convenience)i. It included the channels used to make the product easily accessible to customersii. The distribution channel also sends a messageiii. The internet raised new distribution questions related to “clicks or bricks”iv. Marketers may use a “push” or “pull” strategy d. Promotion (marketing communication)i. This includes1. Advertising2. Public relations3. Sales promotions4. Direct response5. Events and sponsorships 6. Point of salea. Digital media Lecture 3 (January 27th) Debates about Marcom’s social role:a. Over communicationi. Does advertising lead people to be too materialistic?ii. Critics say advertising heightens expectationsiii. The lines between advertising, news, and entertainment have become blurredb. Demand creationi. Critics say advertising creates demand, driving consumers to buy productsunnecessarily ii. Proponents say companies invest in research to find out what consumers want iii. Audiences can refuse to buy products that they don’t needc. Shaping versus mirroringi. Does advertising create or reflect social values?1. Critics say:a. Advertising abuses its influence on children and teenagersb. Advertising creates social trends, dictating how people think, actProponents say advertising bot mirrors and shapes valuesI. Demand creationDiversity and stereotypes are present in advertising II. Gender stereotypesIII. Racial and ethnic stereotypesIV. Cultural differences in global advertisingV. Age-related stereotypesVI. Advertising to childrenLecture 4 (January 31st)Federal Trade Commission (FTC) regulates deceptive and misleading advertising, focusing on, unfairness, deception, and violation of public policy. Food and Drug Administration (FDA)- regulatory division of the U.S. Department of Health and Human Services that oversees package labeling, ingredient listings, and advertising for food and drugs, determines the safety and purity of foods, cosmetics and is also a watchdog or drug advertising.Federal Communications Commission (FCC) regulates radio and television broadcast communications (media , not advertisers), can issue and revoke licenses, ban deceptive messages or those in poor taste, it responds to complaints but doesn’t initiate actions, and works closely with FTC to eliminate false and deceptive advertising. Impact of regulation:I. The FTC and children’s advertinga. Children Advertising Review Unit (CARU) evaluates ads directed at children under12II. Regulating deceptiona. Deceptive advertising misleads consumers by making false claim, failing to fully disclose important facts or bothIII. Current FTC policy contains three elements:a. Misleading: representation, omission, practiceb. Reasonableness: “reasonable consumerc. Injuries: must cause material injury IV. Remedies for deception and unfair advertisinga. Cease and desist ordersb. A process similar to court trial preceded the orderV. Corrective advertisinga. Advertiser runs messages correcting the false impressionsb. Consumer redressc. Cancel or reform contracts, refund money, return property, pay for damages, or public notification Lecture 5 (February 3rd)Successful Brands are distinctive, create and association, offer a benefit, carry a heritage, are simple, and are often based on a distinctive graphic: logo, trademark, character, or other visual cueKey components of a brand- Brand image and brand personalityI. Brand image is a mental picture or idea about a company that its brand leaves you with.II. Brand personality symbolizes the personal qualities of people you know. (Personal qualities of those that use the brand and the brand itself).Brand value comes in two forms- Value to a consumer and value to the corporation (brand equity)Brand extension/family: The use of an established brand name with a related line of