Principals of Advertising First Exam NotesO1/10/13Marketing concept a business philosophy where the organization determines the needs if a target market and satisfies those needs at a profit -- those who don't wont be around too long Profit is key4 elements of a marketing mix (4 Ps)Product bundle of attributes that a consumer receives in a transaction Doesn't have to be tangible, like a ticket and how it allows you to go to a game Price - what the consumer must give up in order to receive the productPlace all the issues related to the system of distribution Includes all places of creation, transport and final salePromotion – all of the methods used to inform and persuade the target market about products available at some price, and placeRelationship between the elements:Need of balance between product development and promotion Ala it doesn't help to generate so much demand for a product that you cannot satisfy A model of communication alternatives Paid FreeMedia | advertising PRPersonal| sales Social mediaEach has an advantage and pitfall... Like paid media advertising is very controlled but generally isn't believable In court it is the truth whole truth and nothing but the truth Advertising: truth and nothing but the truth - not the whole truthNo method that is more cost effective than advertising to reach a lot of people in a short period of time... But absolute cost is very high... and low level of credibilityPublicity – more credible but less control Example is actors for a movie going out on talk shows Some bad PR can be good but, sometimes PR is awful, like with the BP oil spillSales person you pay the salesperson... You have control but little credibilitySocial media - can put promotions on Facebook for free... Only problem is that it can be so painfully credible that if people hate your product, it can sink your businessAdvertising consists of Any paid non-personal communications from an identifiable sponsor that informers, persuades and or reminds about a product of serviceDecision sequence model - Situational analysisResearch based analysis of internal and external things that affect the company Objectives and positioning – perceptual... How do you want the customer to perceive the brand Brand all of the intangible attributes attached to the product Like just do it for Nike products along with the athlete endorsers Brand equity the difference in perceived value between the product and the brand Like how a gap shirt will cost $35 and a LaCoste shirt will cost $89 Level of involvement No involvement - people who do not smoke, and will not smoke Low involvement - product used, but careful brand evaluation isn't used, like milk High involvement products - used by consumer but engages in a lot of research Hierarchy of effectsA High involvement hierarchy product would be: cars Awareness Attitude Behavior Low involvement hierarchy would be: pop corn Awareness Trial behavior AttitudeRepeat behavior Schramm's one way communication Source encodes signal decodes at destination - advertiser puts together ad which is understood by target market Problem with one way model Perceived the problem incorrectly, and encoded the message incorrectly Sends a signal that does not send the intended message Message is sent out and is not decoded correctly Destination Sometimes the message is sent out and is encoded correctly, but is forgotten - due to not spending enough money or in the right placesList of Advertising agency organizationsAccount servicing (establishing good relationships with clients)Research - fact findingStrategic planning - involves working collaboratively with creative teams on media selection, because in so much of what we do the message is deeply connected to and informed by the medium. And finally it involves filtering back the work through the brief to make sure it is still on-message and on-target, and helping present and rationalise the work to the client.Creative - creates the productMedia - spending the media dollars and delivering itProduction - translates the given copy into a finished formatTraffic - makes sure everything runs smoothly and doesn't crashA full service agency - provides complete advertising servicesA media buying service - buys media time and space in bulkA creative boutique - does nothing but creative workIn house agencies - operates within their business and only represents one client - cheaper but not as creativeConsumer segmentation of the marketSituation analysis - A research based analysis if all of the internal and external factors that affect an organization Purpose - to achieve the greatest amount of sales with the least expenseIt is wasteful and inefficient to market to everyone with the same productCan't develop separate products for each consumerMarketing conceptsDiversity of consumer needsHigher standards of livingIncreasing competition1/18/13Acts of segmentation of consumersClassifying variables Develop strategiesEnduring variables Variables that stick with a consumer at any point in time regardless of the product being describes purchase behavior for a variety of product categoriesDemographics, Geographics, and PsychographicsThey use... demographics,Geographic information - regional difference in consumption patterns and Psychographics - who you are, attitudes interests, way we thinkDynamic variables - specific to an individual relationship with a product, useful for developing message and positioning strategies, heavy vs light user 80,20 rule - 80% of sales comes from only 20% of customersEarly adopters- have to be the first to have itEnd use - why did you buy the product?? Like Cheerios for children, and heart healthBrand loyal .... most sought consumer by advertisers Benefit segmentation - attributes and benefits... Benefit is a part of the attributes Message strategies - overall ideas for the adMedia strategies - delivery system for the message Undifferentiated - non segmented adverting target… you are targeting everybodyPartially differentiated - not targeting the entire marketWholly differentiated – entire user of the product’s populationConcentrated - one product to one segment, specific media and message strategy Specific strategies for targeting the advertising base – rifle strategies, for a specific target Rifle media - cable TV, direct mail, special interest magazinesShotgun message - broad general statements Shotgun media -
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