MKT 300 1nd Edition Lecture 22 Outline of Last Lecture XXXIX. Kohl’s SpeakerOutline of Current Lecture XL. Chapter 15 Terms XLI. Chapter 15 Concepts to Apply Current LectureXL. Chapter 15 Terms - Product Advertising: tries to sell a product. 3 categories: pioneering, competitive, and reminder.- Institutional Advertising: promotes an organization’s image, reputation, or ideas rather than a specific product. May seek to inform, persuade, or remind. Basic objective to develop goodwill or improve an organization’s relations with various groups –not only customers, but also current and prospective channel members, suppliers, shareholders, employees, and general public.- Pioneering Advertising: tries to develop primary demand for a product category rather than demand for a specific brand. Usually done in early stages of the product life cycle; ; it informs potential customers about the new product and helps turn them into adopters. I.e.: advertise digital cameras in general.- Competitive Advertising: tries to develop selective demand for a specific brand. A firm isforced into this as product life cycle moves along - to hold its own against competitors. I.e.: advertise Sony digital cameras. Can be done directly or indirectly. - Direct Type Advertising: aims for immediate buying action. I.e.: Delta prices, timetables, and phone numbers to call for reservations- Puffery V. Deception: “Puffery” protects marketers whose claims are either so excessive they are clearly not expected to be believed, or so generic they have no substantive meaning. It is advertising that reasonable consumers would not take literally. “Deception”, on the other hand, is (1) a representation, omission, or practice that is likely to cause a substantial segment of potential customers to have a false belief about the advertiser’s or a competitor’s product, (2) is material – likely to influence the These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.purchasing decisions. Consumers are likely to have chosen differently if there had not been the deception, and (3) someone has been or is likely to be injured as a result of thedeception. The party harmed is usually a business that has lost sales to the advertiser or by a lessening of goodwill associated w/ its products.- Indirect Type Advertising: points out product advantages to affect future buying decisions. I.e.: Delta advertising quality of service and suggest check website.- Comparative Advertising: making specific brands comparisons – using actual product names. i.e.: Apple ads w/ PC guy. - Reminder Advertising: tries to keep the product’s name before the public. Useful when the product has achieved brand preference or insistence (maturity or sales decline stages). To reinforce previous promotion. - Corrective Advertising: ads to correct deceptive advertising. I.e.: a health warning on cigarette ads.- Innovators: young, willing to take risks, high social status, financial liquidity - Early Adopters: opinion leadership. High social status, financial liquidity, socially forward.More discreet in adoption choices than innovators.- Early Majority: adopt an innovation after a varying degree of time that is significantly longer than innovators and early adopters. - Late Majority: adopt an innovation after the average participant. Approach an innovation with a high degree of skepticism and after the majority of society has adopted the innovation. - Laggards: Old, only speak to other laggards, don’t like new technology or change. Lower incomes. Stick w/ what currently using until no longer available. Only change hwen they have to. Don’t spend money on them!- Nonadopters: never adopt it. - Primary Demand: demand for the product in general- Selective Demand: demand for a specific brand of a productXLI. Chapter 15 Concepts to Apply 1. What are the characteristics of a well-defined advertising objective? Why is it important to be specific?a. They should grow out of the firm’s overall marketing strategy and the promotion jobs assigned to advertising. Should say what the advertising is going to do. Specific results: quantify: i.e.: to increase shelf space in our cooperating retail outlets by 25 percent during the next three months.2. Comparative Advertising: when should you use it and when should you stay away from it?a. Comparative risk:i. Annoy your consumerii. Tarnish your imageiii. Illegal in some countriesiv. Could bring attention to ads viewer hadn’t previously known about –book.b. Comparative Benefit:i. When you are the “little guy” 1. With the big competitive advantage2. It does not help the “big guy” to respond.3. What criteria should be considered when deciding which advertising medium(s) to use?a. Effectiveness depends on (1) your promotion objectives, (2) what target markets you want to reach, (3) the funds available for advertising, and (4) the nature of the media, including whom they reach, with what frequency, with what impact, and at what cost.b. *advertisers pay for the whole audience! Target market might just be a small partof who you are paying to see your ads. 4. What is the relationship between PR and Social Media?a. Because of social media’s popularity, many companies are now trying to use these sites to promote their products. While social media users, in general, have resisted advertising efforts, they have supported company-sponsored pages.  “like”b. In the past, PR was very much about controlling the messagec. You can’t do that [on social media], you have to embrace the dialogue and your customers as they are, then influence and guide the conversation.d. Because of this shift, it is important that PR and social teams work together to establish an environment in which businesses can build relationships w/ brand advocates, which can be found with tools like SocialRank, Klout, etc. 5. Why don’t traditional advertising techniques work for Millennials, what is the solution?a. Digital natives, preferred mode of communication is text, watch entertainment online. 6. What are trends and advantages of new media?a. Different media have different costs and advantagesb. Nature of the media: who it reaches, with what frequency, at what impact, at what costc. The optimal mixd. How can I reach more of my target for less money?7. How does the adoption curve relate to the PLC? How does the adoption curve