Advertising and Promotion Management Exam 1 Review CHAPTER 1 Value Functional benefit taste you get buy popcorn at movies Experiential benefit benefit of doing good skydiving Psychological benefit happiness received from having this product self esteem social status Advertising Promotion can only solve message related problems advertising cant change an inferior product cant change product availability Integrated marketing communications a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines Promotional Mix basic tools or elements used to accomplish the organization communication objectives Advertising Classifications pg 20 Consumer o National done by national manufacturers Goals are to inform remind consumers of the brand brand advertising brand identity ex Neutrogena o Retail Local build store traffic tan spa o Primary Selective Demand behold the power of cheese selling whole product ex milk o Business to business selective Sams club sells to business before public smith dail in cheese cotton Organization country o Professional doctor lawyer o Trade stock product sell it Direct Marketing a system of marketing by which organizations communicate directly w target customers to generate a response and or a transaction Ex direct mail catalogs direct responses telemarketing direct selling database management shopping channels Internet sales Sales Promotion a marketing activity that provides an extra value or incentive to BUY NOW Marketing activities that provide extra value or incentives to the sales force retailers ultimate consumer Publicity non personal communication not directly paid for or run under identified sponsor A news story editorial or announcement to a mass audience Is sometimes unfavorable High credibility and low cost Not always under company control CHAPTER 2 Market opportunities are areas where the company believes customer needs and opportunities are not being satisfied and where it can compete effectively Competitive Advantage something special a firm does or possesses that gives it an edge over competitors ad is not easily copied How low production cost superior promotion superior product quality superior customer service Market Segmentation dividing a market into distinct groups with common needs who respond similarly to marketing situation Bases for Market Segmentation Demographic gender age race life stage birth era Geographic region city size metropolitan area density Psychographic personality values lifestyle Socioeconomic Income education occupation Market Positioning products image in the mind of the consumer relative to competition Positioning Strategies Attributes and Benefits Apple Price Quality Wal Mart Use application Arm Hamor baking soda Product Class avacado grower Product Users Pork the other white meat Competitors Avis vs Heitz Cultural Symbols Nike Swoosh Tony the tiger Jolly green giant Brand Identity name logo symbols design Brand Equity intangible asset of added value or goodwill that results from favorable image of co name brand name or trademark Google Kleenex Q tips Jell O Kool Aid all mean nothing was brand name now generic What makes a good brand easy to pronounce conveys attributes of product translates into other languages and is distinctive Pricing Decisions Factors the firm must consider o Costs demand competition perceived value media adv plays important part in price What consumers give up to buy a product or service o Time mental activity behavioral effect Push Strategy goal is to persuade the trade to stock merchandise and promote a company s products by aggressively selling and promoting to resellers Promotional Pull Strategy goal is to create demand among end users which will turn encourage retailers to care a brand Consumer advertising and sales promotion important part of strategy CHAPTER 3 In house agency set up owned and operated by the advertiser Pros Cons Underarmor o Cost savings more control increased coordination stability access to top management Ex o Less experience less objectivity less objectivity less access to top creative talent only working on one company work Creative Boutiques provide only creative service may subcontract from full service agencies strength is turning out creative work quickly Media Specialist Companies specialize in buying media especially broadcast time agencies and clients develop media strategy media buying organizations implement strategies and buy time and space Commissions from media agency is compensated based on the time or space it purchases for its clients traditionally 15 cost of time of time or space bought ex 100 000 bought agency gets 15 000 Direct Marketing no reseller Indirect Marketing resell using a retailer Collateral Services services an agency might outsource Marketing research Package design Consultants Photographers Printers Video production Event marketing CHAPTER 4 Consumer Behavior The process and activities people engage in when searching for selecting purchasing using evaluating and disposing of products and services Maslow s Hierarchy of Needs one of the most basic and popular approaches to understanding consumer motivation Top Bottom Self actualization needs self development and realization ex Porsche pity you have nothing left to wish for Esteem needs self actualization recognition status ex BMW luxury cars Social needs sense of belonging status ex Volkswagen social groups Safety needs security protection ex Volvo focused on safety Psychological needs hunger thirst Perception the process by which an individual receives selects organizes and interprets information to create a meaningful picture of the world Subliminal Perception perceiving stimuli below the conscious threshold of perception Two forms of evaluation criteria 1 Objective price warranty service 2 Subjective style appearance image Functional Consequences VS Psychosocial Consequences Functional Consequences trailer I saw at the store Psychosocial Consequences summer Will I have more time to golf will it cut the taller grass How close can I get to shrubs Will it pull that will the neighbors be impressed Will it be as fun to use later this Attitudes learned predispositions to respond to an object Easier to create a favorable attitude than to change a bad attitude Multi Attribute Attitude Model model views a consumer s attitude toward a brand as possessing a number of attributes