COMM 320 fall 2013 Dr Ahern Exam 2 Study Guide 1 Consumer behavior a Ernest Dichter father of motivational research i Viennese American psychologist and acolyte of Freud ii Between the 1930s and 1960s Dichter revolutionized marketing with the use of qualitative research methods focus groups word association in depth interviews etc iii Ways to conduct motivational research probing the minds of consumers b Maslow s hierarchy i Self actualization needs self development realization ii Esteem needs self esteem recognition iii Social needs sense of belonging love iv Safety needs security protection v Physiological needs hunger thirst c Maslow s product benefit ladder i Product attribute ii Product feature iii Product benefit iv Consumer benefit v Value d Prospect theory as example of how people are not rational decision makers e Subliminal i Sensory stimulation below level of perception ii Subliminal stimuli may be used to generate a subconscious awareness of some object but iii Not all subconscious mental activity is due to subliminal stimuli 1 Short flashes of images 2 High low sounds dog whistles 3 Certain smells 4 Minute touches and tastes iv Can be consciously perceived by the senses but ARE NOT 1 Because our attention is elsewhere 2 Does not seem important Not worth thinking about 3 Blocked by non conscious filter or learned bias i Many meanings but generally denoted in the mind without awareness f Subconscious g Objective Evaluative Criteria i Price ii Warranty h Subjective Evaluation Criteria iii Service i Style ii Appearance Image iii i Basic operation of classical conditioning i Unconditioned stimulus leads to unconditioned response ii Conditioned stimulus leads to conditioned response j Basic operation of instrumental operant conditioning i Behavior leads to positive or negative consequences which leads to an increase decrease in that behavior k Concept of modeling learning through observation i Based on emulation copying of respected examples i People often make decisions without thinking through all the facts and figures ii These mental shortcuts are called heuristics l Levels of selective perception i Selective exposure ii Selective attention iii Selective comprehension iv Selective retention m Heuristics 2 Objectives and budgeting a Characteristics of objectives SMAC i Specific ii Measurable iii Attainable achievable iv Compatible b Factors affecting sales i Advertising and promotion 1 Distribution ii Competition 1 Technology 2 Price iii Product Quality 1 The economy c Basic principles of marginal analysis approach to budgeting i Increase spending if the increased cost is less than the incremental marginal return ii Hold spending if the increased cost is equal to the incremental marginal iii Decrease spending if the increased cost is more than the incremental return marginal return d Basic principles of percent of sales approach to budgeting Ad Sales x 100 Ad Margin x 100 Ad Sales Growth x 100 i ii iii iv Allows direct comparison to industries product categories v Industries that rely more heavily on other parts of the promotional mix have lower percentage of sales figures Life insurance 2 personal selling 1 2 Distilled liquor 15 6 advertising 3 Creative planning strategy and development a Creative strategy b Creative tactics i Determines what the advertising message will say or communicate i Determines how the message strategy will be executed c Inherent tension exists within advertising between suits who favor safe advertising that sells the product and artists who believe artistic and aesthetic value is what matters i Suits it s not creative unless it sells ii Artists Only artistic value and originality count d Creative process i Immersion Getting raw material data immersing one s self in the problem to get the background ii Digestion Ruminating on the data acquired turning it this way and that in the iii iv mind Incubation Ceasing analysis and putting the problem out of conscious mind for a time Illumination A sudden inspiration or intuitive revelation about a potential solution v Verification Studying the idea evaluating it and developing it for practical i Agency function that focuses on consumer insight and brings consumers into ii the creative development process Jay Chiat hired Jane Newman in 1982 to create first US account planning department in New York office of Chiat Day usefulness e Account planning f Levels of messaging i Theme ii Campaign iii Execution g Important philosophic approaches in advertising history development i Unique selling proposition 1 Rosser Reeves ii Creating brand image 1 David Ogilvy iii Finding inherent drama 1 Leo Burnett revolution Ad Man of the Century 1 Bill Bernbach 4 Creative strategy implementation and evaluation a Advertising appeals iv Effective surprise and breaking down the fourth wall father of the creative i The overall approach to get attention change attitudes and influence consumer feelings toward a product service or cause 1 Informational Rational appeals a Feature Focus on dominant traits of the product b Competitive Makes comparisons to other brands c Price Makes price offer the dominant point d News News announcement about the product e Popularity Stresses the brand s popularity 2 Social based feeling appeals a Approval b Affiliation c Embarrassment d Belonging e Involvement f Recognition g Rejection h Respect Status i j Acceptance Transformational ads 3 1 Straight sell 2 Scientific 3 Demonstration 4 Comparison 5 Testimonial 6 Slice of life 7 Animation a Create feelings meanings beliefs and images b It must make the producer use experience richer warmer more exciting or enjoyable b Execution style i The way an appeal is turned into an advertisement ii The way the message is presented to the consumer 8 Personality Symbol 9 Imagery 10 Dramatization 11 Humor 5 Media Terminology a Media Planning A series of decisions involving the delivery of messages to audiences i The business side of the advertising business b Media The various categories of delivery systems including broadcast and print media c Medium The specific category of delivery system TV print etc d Vehicle The specific carrier within a medium category Time Magazine House e Reach Number of people with opportunity to see an ad at least once in a given time f period Frequency The average number of times someone has the opportunity to see an ad in the course of a campaign i Determining Frequency 1 Message complexity 2 Message uniqueness 3 New vs Continuing