O1 10 13 Profit is key Product Place Promotion Principals of Advertising First Exam Notes Marketing 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 4 elements of a marketing mix 4 Ps 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 product all the issues related to the system of distribution Includes all places of creation transport and final sale all of the methods used to inform and persuade the target market about products available at some price and place Relationship 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 Free Media advertising PR Personal sales Social media Each 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 truth No 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 credibility 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 spill you pay the salesperson You have control but little credibility 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 business Any paid non personal communications from an identifiable sponsor that informers persuades and or reminds about a product of service Publicity Sales person Social media Advertising consists of Decision sequence model Situational analysis Research 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 all of the intangible attributes attached to the product Like just do it for Nike products along with the athlete endorsers 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 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 A High involvement hierarchy product would be cars Brand Brand equity Level of involvement Hierarchy of effects Awareness Attitude Behavior Awareness Trial behavior Attitude Low involvement hierarchy would be pop corn Repeat 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 places List of Advertising agency organizations Account servicing establishing good relationships with clients Research fact finding Strategic 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 product Media spending the media dollars and delivering it Production translates the given copy into a finished format Traffic makes sure everything runs smoothly and doesn t crash A full service agency provides complete advertising services A media buying service buys media time and space in bulk A creative boutique does nothing but creative work In house agencies operates within their business and only represents one client cheaper but not as creative Consumer segmentation of the market that affect an organization Situation analysis A research based analysis if all of the internal and external factors Purpose to achieve the greatest amount of sales with the least expense It is wasteful and inefficient to market to everyone with the same product Can t develop separate products for each consumer Marketing concepts Diversity of consumer needs Higher standards of living Increasing competition 1 18 13 Acts of segmentation of consumers Classifying variables Develop strategies Enduring variables They use demographics Variables that stick with a consumer at any point in time regardless of the product being describes purchase behavior for a variety of product categories Demographics Geographics and Psychographics Geographic information regional difference in consumption patterns and Psychographics who you are attitudes interests way we think Dynamic 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 customers Early adopters have to be the first to have it End use why did you buy the product Like Cheerios for children and heart health Brand loyal most sought consumer by advertisers Benefit segmentation attributes and benefits Benefit is a part of the attributes Message strategies overall ideas for the ad Media strategies delivery system for the message Undifferentiated non segmented adverting target you are targeting everybody Partially differentiated not targeting the entire market Wholly differentiated entire user of the product s population Concentrated 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 magazines Shotgun message broad general statements Shotgun media TV general interests magazines out of home media like billboards Product life cycle the change a product goes through from its introduction in the market place until it is pulled off the market
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