Advertising Exam 1 Main Points 1 Advertising World 2 Consumer Segmentation 3 Situation Analysis Advertising World The Marketing Concept A business philosophy where the organization determines the needs of the target market and satisfies those needs at a profit Marketing Mix The 4 P s Product Price and Place precede Promotion 1 Product The bundle of attributes a consumer receives in a transaction 2 Price What the consumer must give up in order to receive the product 3 Place All issues related to the system of distribution 4 Promotion All methods used to inform and persuade the target market about products that are available at some price and in some place There needs to be a balance between product development and promotion Promotions Mix A model of communication alternatives Media vs Personal Communication Paid communication provides control Free communication is provides credibility o Companies use both to maximize potential outreach Paid media Advertising Paid personal Sales Free Media Public Relations Free Personal Word of Mouth Advertising Any PAID non personal communication from an identified sponsor that informs Advantages of PAID mass media The control of the message delivery of the message and timing of the delivery of the message Also paid advertising is at a lower cost to reach each person when it is produced to a mass audience Disadvantages of PAID mass media High absolute cost low credibility and an absence of rapid feedback Public Relations Publicity Media time and space that the organization doesn t pay for Personal Selling Employees in a company s sales department who represent the organization and are in direct communication with potential customers Word of Mouth Opinions and reviews about products from people you know and respect Very efficient Decision Sequence Model A process used is advertising as a way to guide the creative process toward effective strategy and execution Components include Situational Analysis Objectives and Positioning Strategies Budget Setting Implementation and Evaluation 1 Situational Analysis fact finding stage Research based analysis of all the internal and external factors that affect the organization Research on Consumer Competition Product Category Company Macro environment 2 Develop Objectives and Positioning Objectives Setting goal the company plans on achieving Positioning The way in which a consumer perceives the brand being promoted Product ex Ice Cream Brand ex Blue Bell Bundle of attributes a consumer purchases All of the intangibles attached to the product Brand Equity The difference in perceived value between the product and the brand 3 Strategies A combination of actions that achieve the objectives Types of strategies Creative Media Sales Promotion 4 Budget Setting Allocations of funds needed to implement the strategies 5 6 Evaluation Assesses the success of the campaign Did the campaign achieve the stated Implementation Putting the strategies into action objectives 3 Levels of Involvement purchase Ex Automobiles 1 No Involvement no interest in the product category no purchase behavior noticed 2 Ex Cigarettes Low Involvement product is used careful brand evaluations and not made Ex Milk 3 High Involvement the product is used consumer engages in careful brand evaluations prior to Hierarchy of Effects the series of stages a consumer goes through from unawareness to brand loyalty High Involvement Awareness Attitude positive or negative Opinions and Feelings Behavior Low Involvement Awareness Trial Behavior Attitude Repeat Behavior Schramm s Model of ONE WAY Communication A Source advertiser Encodes puts together a Signal ad then Decodes understood by to a Destination target market 1 Advertiser 2 Ad 3 Viewer listener reader Problems with ONE WAY communication Encoding a source perceives the problem incorrectly then encodes the wrong concept Signal The source understands the problem but sends a signal that does not communicate the intended message Decoding The receiver potential consumer misunderstands or misinterprets the message Destination the receiver understands the message but Forgets or Ignores the product Advertising Agency Organization Finance goes into Research Media Account Services Creative work Research Analysis and Account Planner 1st people to be involved in an ad project Situation Analysis Concept testing and Evaluation Media Planning and Buying Delivery of the message and striving for the most efficient use of money Account Services Supervisor and Executive Liaison between the agency and the concept often involved in new business development and strategy development Creative Copy and Artist Develops verbal message copy and develops visual message layout art design Production Translates the copy and layout into finished form Traffic Controls the entire process to insure that each department meets deadlines Types of Agencies Full Service o Complete services Research creative and media o Other Potential Services Public relations sales promotions internet development Media Buying Service Creative Boutique o Media buying only specialist and they often purchase in bulk o Small specialty agency o Deals with print broadcast or internet o Sometimes just concept development In House Consumer Segmentation o Agency operated within the corporation and some functions are outsourced Situation Analysis A researched based analysis of all the internal and external factors that affect the organization Consumer Segmentation Overall Purpose Achieve the greatest amount of sales with the least amount of expenses Reasons for consumer segmentation o Wasteful and inefficient to market to everyone with the same product o The company cannot develop separate products for each consumer Factors leading to Segmentation o Introduction of the marketing concept o Higher standard of living o Increased population Aspects of Segmentation o Classifying consumers into potentially profitable groups o Developing strategies that will appeal to those groups Consumer Classification 1 Enduring Variables o Variables that stick with the consumer at any point in time regardless of the product being purchased o Useful for describing purchase behavior for a variety of product categories Demographics statistical study of population size Descriptions of WHAT we are Age Gender Race Household income Education level Geographics Regional differences in consumption patterns and brand preference Ex Grits snowmobiles and sun care products Psychographics Based on WHO
View Full Document
Unlocking...