What is Advertising What does the product do and whom is it for 8 24 Main Trends in Marketing Advertising Ad migrating from traditional to newer media Computers Accelerate speed of business Quantification of business Demographic changes Plethora of products competing for attention Global spread of business and brands Name brands vs generic house brands 8 29 4 Categories of Consumers Household consumers Businesses Governments Specialties Professions 6 Major Trends in Ad Industry Media fragmentation Clutter New retail channels Increase in budgets Computer usage velocitizing quantifying Advertising information designed to inform or persuade about a product product goods and services Advertising campaign a series if co ordinated tactics that communicates a message about a product Marketing research pricing packaging distribution advertising promotion Biggest trend migration of advertising dollars away from traditional media tv radio newspaper toward alternative advertising media Manufacturers national sellers of goods and services Re sellers middlemen McDonalds buy potatoes from a company then re sell them to the public Drugstores Wholesaler sells to other businesses B2B Rolls Royce makes engines then sells to aircraft company Government and service organizations US Army American Red Cross not for profit Agent a person who Is authorized to act in place of another Agere to act to do to drive Advertising agency an independent organization that provides creative and business services to clients planning preparing placing of advertisements In House Advantages Tensions between creatives and business types Properly managed tension creates great advertising We all under utilize our creative potential John Stuart Mill The great creative individual is capable of more wisdom and virtue than collective man ever can be Creativity Across Domains can be creative in anything field job etc More co ordination of message More control over campaign Undivided attention of agency Cheaper In House Disadvantages 1 client too subjective 1 client too isolated cautious 9 5 Creativity Common Traits of Creative Individuals Self confidence Alertness Unconventionality Hardworking Obsessively committed to life s work Awkward social life Thomas Edison Great businessman Wealthy Most patents What is genius 99 perspiration 1 inspiration Where is creativity located in the brain we do not know Ralph Waldo Emerson What lies behind us and what lies before us are tiny matters compared to what lies within us How Can We Measure Creativity Public acceptance consensus genius Napolean Critical acclaim what one s peers think of them Phillip Johnson Business effectiveness highly creative a genius in business Bill Gates Adaptive working within existing boundaries to solve problems Innovative creating new elements to solve the problem 8 31 Agency Services Account services Marketing services Creative and production services Media planning and media buying services Administrative services Traffic department Agency compensation commission vs fee system The Evolution of Advertising Capitalism 15th 18th centuries an economic system in which goods and services are freely exchanged in a money economy and the resulting wealth is privately owned see notes for timeline 9 7 Consumer Behavior Those activities directly involved in buying consumers disposing of products ie Goods and services including the decision processes that precede and follow these actions The brain releases dopamine and serotonin when buying shopping So much advertising Is devoted to explaining to potential customers the benefits they will get from buying the product Benefits Functional objective measureable quantifiable durability price convenience reliability nutrition Emotional subjective hard to measure pride status avoid negative emotions 4 Levels of Consumer Involvement Extended low experience high involvement Limited low experience low involvement Habit Variety high experience low involvement Brand Loyalty high experience high involvement 9 12 Research is a tool not a crutch Criteria to Evaluate Research Reliability consistency Validity Trustworthiness qualitativeness Meaningfullness intelligent conclusion Focus group up close personal with customers projection techniques 9 14 STP Marketing Segmenting Targeting Positioning Segmenting s 7 Steps occupation Segmenting dividing the market s universe into smaller more identifiable units 1 Demographic Segmentation marital status race sex age education income 2 Geographic Segmentation country state zip code region county 3 Usage Patterns sliding scale from non users to heavy users Important points about usage segmentation Advertisers tailor their messages based on usage levels of customers Heavy habitual users account for majority of sales of most consumer products That s why so much advertising focuses on brand identification 4 Commitment Levels Non users Emerging users Brand loyal Switchers variety seekers 5 Psychographic Segmentation Consumers overall lifestyle behaviors activities interests 6 Benefit Segmentation functionality style price durability ego boosting protection 7 B2B Segmentation business to business Targeting narrowing the segment into the most specific grouping with similar characteristics Niche marketing Positioning the differentiation of a product from its competition