JOMC 137 1st Edition Exam 1 Study Guide Chapter 1 Key Content What is advertising Functionality symbolism and the social power of brands The changing global advertising environment Challenges for ad agencies Advertising as Marketing Tools What are the 4 Ps of Marketing Product Price Place Promotion Additional fields that feed into marketing PR Personal selling Corporate communications Direct marketing communications Advertising Latin root advertere To turn towards Essentials of advertising paid mass mediated attempt to persuade Paid o Communication is not paid for it s not advertising o Client or sponsor company or sponsor that pays for ad Mass mediated o Delivering through a medium designed to reach a large number of people Attempting to persuade o Communications designed to get someone to do something advertising is a means to turn consumers towards a product or service by providing information or creating a positive feeling positive brand attitude positive brand attitude can help place the consumer on the path towards seeking out the product or service advertised advertising can increase consumer s engagement IMC IMC is a strategic business process used to plan develop execute and evaluate coordinated measurable persuasive brand communication programs over time with consumers prospects employees associates and other targeted relevant external and internal audience The goal is to generate both short term financial returns and build long term brand and shareholder value Schultz Tools used for IMC Advertising in mass media Sales promo Point of purchase materials Direct marketing Personal selling Internet advertising all of these feed into the target audience What should IMC strategy do Should focus on target audience Should be conducted through a consistent main theme Big Idea Big Idea should be created based on the relationship between the brand and consumers What is critical for the success of IMC The relationship between the consumers and the brands Ex of successful IMC Coca Cola Open happiness The role of Ad in brand marketing Brand functionality information and persuasion o Informs target audience about the values a brand has to offer o Introduces new brands or brand extensions Symbolism building and maintaining brand loyalty o Brand loyalty consumers repeatedly purchase the same brand to the exclusion of competitor s brand o Brand equity set of brand assets linked to a brand its name logo symbol consumers often use a certain brand to express themselves they purchase not only the brand but the symbolic meaning Brand positioning designing a brand to occupy a distinct and valued place in target consumer s mind o External position niche the brand will pursue relative to all the competitive brands ex Apple v others o Internal position position achieved in regard to other similar brands marketed by the firm ex avis v hertz o Repositioning Firm believes that a brand needs to be updated to address changing market condition Ex new old Spice ad tan man on a white horse made in comments reviews that Old Spice was more for older men New Environment 1 Interactive communication o Traditional Brand consumer o interactive Brand consumer 2 direct and fast communication quick responding to consumer feedback is important 3 passive receiver active reactor People can distribute information o People tend to distribute info they like through internet such as blogs and social media o Cost effective Free for the distribution ex retweets content is key o attract consumer s attention interesting funny sympathy etc o relevant to brand o target oriented ex Red Bull sponsor of the Stratos Jump Boost Viral marketing is closely related to IMC o Dove o Old Spice o Etc Challenges for Ad agencies Channels for brand advertising o Mobile PC laptop are top two Mobile is 1 Important of non traditional advertising o New organization SNS team digital planners o New measurement New thinking o Interactivity Chapter 2 Theorizing Advertising Key Content Why theorize advertising and promotion Practice based advertising theory Information processing theory in advertising Socio cultural theory in advertising Why theorize Ad and Promo Advertising business o a good advertising is created by accumulated realistic experience theory esoteric unrealistic fantasy etc usually select most important 1 2 core benefits about product for ad Classic Model of Communication Feedback loop Sender encoding message medium decoding receiver sender monologue not dialogue sender oriented model no empathy included in receiver Magic Bullet or Hypodermic Needle Theory The media Magic gun fires the message directly into the audiences head without their own Knowledge The message causes an instant reaction from the audience without any hesitation The media needle injects the message into audience mind and it causes changes in audience behavior and psyche towards the message Audiences is passive and they can t resist the media message Ex War of the World fake radio news Practice Based Ad Models Unique Selling Position USP o One of reason why approaches o Single thing that gives the consumer a reason to buy Ex Audi Quattro ski jump commercial Info Processing Theory AIDA model Attention interest desire action o Model of how individuals process the information they are exposed to in order o Linear or transportation model which is based on a logical and rational process ELM o ELM is a dual route o Multi process theory o Dual route Central relatively extensive and effortful information processing aimed at scrutinizing and uncovering the central merits of the issue Peripheral route less effortful information processing influenced by internal or external factors not associated with the core of the issues such as visual cues or celebrity use ELM and advertising high vs low involvement Scrutinizing the product relevant information presented in an advertisement Favorable attitude to ward cogent and persuasive message Unfavorable attitude to ward weak and specious information central route ELM and advertising low involvement consumer ex not considering purchasing etc not expanding the effort required to think about the product relevant arguments focusing on attractiveness or prestige or products endorser peripheral route ELM and advertising different types of messages Ex Apple homepage setup v Apple Facebook setup Ad and the cultural context advertising is a part of culture o advertising is not only created based on culture but also interpreted by culture