Advertising Exam 1Main Points: 1. Advertising World2. Consumer Segmentation3. Situation AnalysisAdvertising WorldThe 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 transaction2. Price: What the consumer must give up in order to receive the product3. Place: All issues related to the system of distribution4. Promotion: All methods used to inform and persuade the target market about products that areavailable 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 outreachPaid media=Advertising Paid personal=Sales Free Media=Public Relations Free Personal=Word of MouthAdvertising: 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 customersWord of Mouth: Opinions and reviews about products from people you know and respect. Very efficientDecision Sequence ModelA 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 Evaluation1. 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-environment2. Develop Objectives and Positioning:- Objectives: Setting goal the company plans on achieving- Positioning: The way in which a consumer perceives the brand being promotedProduct: 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 brand3. Strategies: A combination of actions that achieve the objectivesTypes of strategies: Creative, Media, Sales Promotion4. Budget Setting: Allocations of funds needed to implement the strategies 5. Implementation: Putting the strategies into action6. Evaluation: Assesses the success of the campaign. Did the campaign achieve the stated objectives?3 Levels of Involvement: 1. No Involvement: no interest in the product category, no purchase behavior noticed. Ex. Cigarettes2. Low Involvement: product is used, careful brand evaluations and not madeEx. Milk3. High Involvement: the product is used, consumer engages in careful brand evaluations prior to purchaseEx. AutomobilesHierarchy 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), BehaviorLow Involvement: Awareness, Trial Behavior, Attitude, Repeat BehaviorSchramm’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/readerProblems 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 productAdvertising Agency Organization:Finance goes into Research, Media, Account Services, Creative work- Research: Analysis and Account Planner 1st people to be involved in an ad projectSituation Analysis, Concept testing, and Evaluation- Media: Planning and BuyingDelivery of the message and striving for the most efficient use of money- Account Services: Supervisor and ExecutiveLiaison between the agency and the concept, often involved in new business development, and strategy development- Creative: Copy and ArtistDevelops 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 deadlinesTypes of Agencies:- Full Service: o Complete services: Research, creative, and mediao Other Potential Services:Public relations, sales promotions, internet development- Media Buying Service:o Media buying only, specialist, and they often purchase in bulk-Creative Boutique:o Small specialty agencyo Deals with print, broadcast, or interneto Sometimes just concept development- In-House:o Agency operated within the corporation and some functions are outsourced.Consumer SegmentationSituation Analysis: A researched based analysis of all the internal and external factors that affect the organizationConsumer Segmentation: Overall Purpose= Achieve the greatest amount of sales with the least amount of expensesReasons for consumer segmentation: o Wasteful and inefficient to market to everyone with the same producto The company cannot develop separate products for each consumerFactors leading to Segmentation:o Introduction of the marketing concepto Higher standard of livingo Increased populationAspects of Segmentation:o Classifying consumers into potentially profitable groupso Developing strategies that will appeal to those groupsConsumer Classification1. 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 categoriesDemographics: statistical study of population size – Descriptions of WHAT we areAge,
View Full Document
Unlocking...