ADV3008 Spring 13Marketing Concept- Comprised of the marketing mix… - 4 elements: 4 P’sProduct: Tangible items, bundle of attributes. Not only concrete items… i.e a service or license or insurance/mortgage.Price: What the consumer gives up in order to receive the product. Funds, method of payment, online accounts, financing, credit.Place: Where do you buy your product? Via what method? Online? All issues related to the system of distribution. Shipping, freight, postal services, taxes. Promotion: All the methods used to inform and persuade the target market about products available at some price and some place. - Relationship Between the 4P’s Product, price, and place precede promotion. How can you advertise an undeveloped product or distribute PR efforts without knowing where you distribution is?Need of balance between product development and promotion… How do you utilize your resources? Ex: Most of BestBuy.com viewers we’re seeking brands that were out of stock. Promotion drew resources away from the product.- Promotion MixPaid FreeMedia ADV PRPersonal SALES SOCIAL MEDIA Advertising is the paid communication through the media.- Advertisers don’t show you the truth, they show you part of the truth.Ex: Corvette TV Ad vs Archipelago- Control’s the time, space and delivery of the message. - Any other form of communication fails at value for the dollar in comparison to advertising. However, the absolute cost of advertising still remains very expensive.- Not very rapid feedback. Time from receiving to action of consumer is very delayed. - Publicity is media time and space that your client is featured in. o i.e BP oil spill’s received so much negative publicity; it triumphed its advertising efforts. - Personal selling allows you a little more control through employee training and incentives, however the consumer remains fully aware. - Social media is becoming increasingly popular allowing large networks of people to share information regarding a product or company.o Rapid measured feedback. (Comments, likes, ratings, follows, tags etc.…)o Wide market.o Pre launch, contest, coupons, polls etc.…o Reviews and critics can prove to be negative unpaid and uncontrolled publicity, but provides more credibility.All forms of communication are not fully effective, companies use a variety of each and distribute their resources across all.(Ad-ver-tis-ing)Any paid, non-personal communication from an identified sponsor that informs, persuades, and/or reminds.Decision Sequence Model- A road map towards effective strategy and execution. o Situation Analysiso Objectives and Positioningo Strategies – How we go about achieving what? A combination of actions. o Budget Settingo Implementation – Put the strategies into action.o Evaluation – Assess the success of the campaign. Brand vs ProductBrand: All the other, intangible attributes attached to the product. Intangibles add value to the brand. Brand Equity: The difference in perceived value between the product and the brand. Similar products have different values to the consumers based on the brand they are represented by. Allows brands to open profit margins. Levels of Involvement- How important is a product to a consumer?1. No Involvement: Advertisers uninterested due to no purchase behaviour.2. Low Involvement: Product is consumed but no brand evaluations are made. Ex. Milk is averagely consumed based on expiration date, versus brand. Paper towels are consumed based on price versus brand. No careful brand evaluation.3. High Involvement: Careful brand evaluation. Often involves expensive goods, services or luxuries. Comparisons made between other brands. Ex. Food and medicine is unique. Price works hand in hand with brands, along with ingredients.Hierarchy of EffectsHigh Involvement Products- Awareness- Attitude: Opinions about the product i.e. positive, negative, or neutral.- Behaviour: Reliant on a positive attitude towards the product. Low Involvement Products- Awareness: Unaware of brands, more aware of prices. - Trial Behaviour: Finding a favourable brand, flavour, or efficiency. - Attitude- Repeat Behaviour: Did you remember the brand? Trial behaviour.*Schramm’s One Way Communication*Most advertising goes through media. A form of one way communication in which a:Source Encodes Signal Decodes DestinationAdvertisers put together ads that are understood by the target market.Failures:- At the encoding stage the advertiser incorrectly perceives how to address a problem or target market. Also must consider your own reputation or public perception.- At the signal stage, the source understands the problem but sends a signal that doesn’t effectively communicate the message. The receiver misunderstands or misinterprets the message. Publics have a difficult time deciphering the message.If the message is not reinforced or re-emphasized over and over again, your communication strategy may have little to no effect.Advertising Agency OrganizationAccount Servicing: Distributes the funds towards certain campaigns.Research: Determine who, how, where, and when to develop a campaign. Then compares with competitors, measures feedback and identify areas of improvement.Strategic Planning: Develops the creative direction for the campaign. Based on consumer research findings. Creative: Translating the campaign into the target markets language through a creative strategy.Media: Outlet sources that distributes your message. Input source in terms of research. This is where 90% of all advertising dollars are spent. TrafficTypes of AgenciesFull ServiceMedia Buying Service – Buys ad space in bulk.Creative BoutiqueIn-House – The advertiser sets up their own advertising agency. More control over the finished product and quicker turn around at a cheaper cost. However, the work produced may not be creative or expansive as from an agency with more sources of input.Situation Analysis- Research based analysis of all the internal and external factors that affect the organization.Consumer Segmentation: Achieve the greatest amount of sales with the least amount of expenses. - Inefficient to market to everyone with the same product.- Can’t develop separate products for each consumer.Emergences of Segmentation- Introduction of the marketing concept in the 50’s… Mass production.- A diversity of consumer needs.- Higher standard of living brought about new consumer demands. - Increasing competition. Undifferentiated - An entire market place or
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