ADV 205 EXAM 2 Review Exam 2 Study Guide Chapter 5 Brand loyalty is the consumer s conscious or unconscious decision to repurchase a brand continually It occurs because the consumer perceives that the brand offers the right product features Cognitive dissonance change attitudes values and beliefs Elaboration Likelihood Model Under conditions of high involvement the consumer will be more likely to process the content of the message form an attitude about it and make a purchase decision Under low involvement the consumer will respond to the style of the message an attractive package a popular spokesperson rather than its substance Learning theories Behavioral Assume that learning takes place as the result of responses to external events Cognitive This perspective views people as problem solvers who actively use information from the world around them to master their environments Supporters of this view also stress the role of creativity and insight during the learning process Maslow hierarchy of needs Maslow suggested all people are motivated by a desire to fulfill basic human needs in an ascending hierarchy He also suggested that unless the lower order needs are fulfilled the higher order needs are not motivators of behavior 1 Physiological 2 Safety 3 Love and belonging 4 Esteem Need 5 Self Actualization Needs and wants Nonpersonal and Interpersonal influences on consumer decision making process Interpersonal influences include our family society and culture Nonpersonal influences are factors often outside the consumer s control e g time place and environment Perception process by which physical sensations are selected organized and interpreted Perceptual screens the subconscious filters that shield us from unwanted messages Before any stimuli can be perceived it must penetrate a set of perceptual screens Physiological screens our 5 senses Stimulus 5 senses Chapter 6 Account planner Primary role is to represent the consumer Objectives A concise written statement of the research problem and objectives should be formulated at the beginning of any research problem Primary and secondary data Primary Researched information gained directly from the marketplace surveys Secondary Information previously collected or gathered Qualitative research and techniques Enables researchers to gain insight into both the population and the subject matter itself Quantitative research and techniques To gain numerical and statistical data with numbers Sometimes taken with a survey Recall post testing methods used to determine the extent to which an advertisement and its message have been noticed read or watched Research process steps 1 Analyzing the situation and defining the problem 2 Conducting informal exploratory research 3 Establishing research objectives 4 Conducting formal research 5 Interpreting and Reporting the findings Sampling A smaller group meant to mimic the population Validity reliability For research to be valid it must correctly reflect the status of the market Reliability is important for the research test results for it to be reliable it must be repeatable and get the same results Chapter 7 4 sources of brand messages i e planned 1 Planned message least impact advertising sales promotions personal selling etc 2 Product messages The use of packaging and messages Product price and distribution methods 3 Service messages Employers interactions with costumers 4 Unplanned messages this comes fro employee gossip unsought news stories comments by competitors word of mouth rumors or major disasters Advertising pyramid 1 Awareness most important 2 Comprehension 3 Conviction 4 Desire 5 Action least important Budgeting methods for advertising 1 Percentage of sales methods based on percentage of last years sales anticipated sales or a combination This is the simplest 2 Share of market share of voice method basing funds on the companies goals for the market 3 Objective task method defines objectives and how advertising is to be used to accomplish them 3 steps defining the objectives determining strategy and estimating the cost Exchanges and satisfaction First step in Advertising planning organize information from the marketing plans situation analysis into a swat analysis IMC and levels of relationships i e transactional 1 Basic transactional relationship Company sells product but does not follow up 2 Reactive relationship Company sells products and encourages you to call with problems 3 Accountable relationship Company contacts customer shortly after purchase and asks for suggestions and satisfaction levels 4 Proactive relationship Company contacts consumers to tell them about new and upgraded products 5 Partnership company works with customers to discover ways to deliver better value Marketing mix product price place and promotion Situation Analysis factual statement of the organizations current situation and how it got there Objective Goals of the marketing effort that may be expressed in terms of the needs or specific target markets and specific sales Marketing Strategy Describes how the company plans to meet its marketing objectives Tactics the specific short term actions that will be used to achieve marketing objectives SWOT after assessing a companies situation the writer of a marketing plan prepares an analysis that identifies the brand s or product s strengths weaknesses opportunities and threats Top down and bottom up planning TD traditional planning procuess with four main elements situation analysis marketing objectives marketing strategy and tactics or action programs BU opposite of td marketing Focuses on one specific tactic and develops into an overall strategy Chapter 8 5 presentation components of selling power 1 Strategic precision selling idea based on strategy 2 Savvy psychology presentation and advertising should be receiver driven 3 Polished presentation presentation must be prepared and rehearsed it should use compelling visuals and emotional appeals 4 Structural persuasion the presentation should be well structured since clients value organized thinking The opening is crucial because it sets the tone 5 Solve the problem solve clients problem and you will self the big idea Art direction along with graphic designers and production artists determines how the ad s verbal and visual symbols fit together Brainstorming process where 2 or more people team up to generate new ideas Characteristics of great ads i e resonance you do not forget them easily they echo in your mind it has