Marketing Mix: The 4 P’sPromotions Mix:Advertising:Public Relations:Personal SellingSocial MediaDecision Sequence ModelLevels of InvolvementHierarchy of EffectsSchramm’s Model of ONE WAY CommunicationPotential Problems with One Way CommunicationAdvertising Agency OrganizationTypes of AgenciesChapter TwoConsumer Segmentation-Situation AnalysisConsumer Segmentation:Reasons for Consumer Segmentation:Factors leading to SegmentationAspects of SegmentationConsumer ClassificationMedia and Message StrategiesChapter ThreeProduct Life CycleStages and Strategic ImplicationsThe CompanyMacro IssuesConducting ResearchChapter FourPurpose of ObjectivesPositioningChapter FiveComponents of Message StrategyCreative Brief-page long written documentLegal Constraints on AdvertisingChapter SixCreativity- Creative AppealsThe Big IdeaCreative AppealsChapter SevenCreative ExecutionsProduct ExecutionsConsumer ExecutionsAdvertising Exam #1Chapter OneMarketing Mix: The 4 P’s - Product: The bundle of attributes the consumer receives in a transaction. It doesn’t haveto be tangible. Ex. Auto insurance/haircut- Price: What the consumer must give up in order to receive the product. Ex. Money, method of purchasing, and financing.- Place: All issues related to the system of distribution. Ex. Where you buy product, store/online, distribution. - Promotion: All methods used to inform and persuade the target market about products that are available at some price and in some place. - Product, Price, and Place all precede decisions with promotion.- Resource allocation across the elements must achieve a balance between product development and promotion. Ex. Best buy mom beating SantaPromotions Mix:- A model of communication alternatives- Media vs. personal communication- Paid vs. Free communication Paid provides control. Free provides credibilityPaid FreeMedia ADV PUBLICITYPersonal SALES SOCIAL MEDIAAdvertising:-Any PAID, NONPERSONAL communication from an identified sponsor that INFORMS, PERSUADES, and/or REMINDS. - Tells the truth but holds information. Ex. Corvette- Advantages Control of message, delivery of the message, and timing of delivery of the message. Low cost to reach each person, most cost effective way to communicate with consumers.- Disadvantages: High absolute cost Low credibility In many instances, absence of rapid feedbackPublic Relations:- Develops understanding and goodwill- Media time and space that the organization does not pay forPersonal Selling- Sales personnel representing the organization who are in direct communication with potential customersSocial Media- Various online technology tools that allow people to connect via the Internet to share information and resources. Facebook: MnM’s pretzel samples. Twitter Yelp: Can be bad for company, Risk but credibility for consumer.Decision Sequence Model- A process used in advertising as a way to guide the creative process toward effective strategy and execution. - Components: Situation Analysis: A research bases analysis of all of the internal and external factors that could affect the organization.- Consumer-how to identify target market- Competition- Product category- grouping of competitors - Company - Macro-environment- things that affect our company that we can’t control. Ex. Trends Objectives and Positioning- Objectives-Goals the company plans to achieve- Positioning- The way the consumer perceives the brand- Brand- All of the intangible attributes attached to the producto Product= Orange Juiceo Brand= Minute Maid- Brand Equity - The difference in perceived value between the product and the brand. Ex. Gap polo vs. Abercrombie polo Strategies- A combination of actions that achieve the objectives.- Creative, Media, Sales Promotion Budget Setting- - Allocation of funds needed to implement the strategies Implementation- - Putting the strategies into action Evaluation-- Assesses the success of the campaign: Did it work?- Did the campaign achieve the stated objective?Levels of Involvement- The relative importance of the product to the consumer.- Three levels: No involvement - No interest in the product category- No purchase behavior Low involvement- Product is used- Careful brand evaluations are not made- Ex. Milk High Involvement- The product is used Ex. Car purchases- Consumer engages in careful brand evaluation prior to purchase- Not always high price- Ex. Breakfast cerealHierarchy of Effects- High Involvement Hierarchy Awareness- Knowledge that the product exists Attitude- Opinions about the product- Could be positive (favorable attitude but no money, it isn’t practical), negative (don’t like the way the product is produced), or neutral. Behavior- Any action related to the product- Low Involvement Hierarchy Awareness Trial behavior- taking popcorn home to try- Action related to the product without the formation of attitude Attitude- after trial behavior Repeat behavior- Subsequent action based on positive attitudeSchramm’s Model of ONE WAY Communication - Source Encode Signal Decodes Destination- Advertiser puts together ad which is understood by the target marketPotential Problems with One Way Communication- Encoding: The source perceives the problem incorrectly, then encodes the wrong concept Ex. Taco Bell weight loss- Signal: The source understands the problem, but sends a signal that does not communicate the intended message. knows what they want to say, comes out wrong-punchline- Decoding: The receiver understands the message but forgets and ignores Inadequate budget not missed strategyAdvertising Agency Organization - Account Servicing Liaison between the agency and the client, quarterback doesn’t do everything but knows what everyone is doing Often involved in new business development Strategy development- Research Involved in a project throughout the entire process First people to be involved in a project - Situation analysis- Concept testing- Evaluation- Strategic planning Develops creative direction of campaign Based on consumer research findings Overall strategy for creative team- Creative Develops verbal message (copy) Develops visual message (layout, art direction) Often paired ^- Media Delivery of the message Striving for the most efficient use of money- Production Translates the copy and layout into finished form-
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