ADV3008 Spring 13 Marketing Concept Comprised of the marketing mix 4 elements 4 P s Product 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 Mix Media Personal Paid ADV SALES Free PR 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 Analysis o Objectives and Positioning o Strategies How we go about achieving what A combination of actions o Budget Setting o Implementation Put the strategies into action o Evaluation Assess the success of the campaign Brand vs Product Brand 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 Effects High 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 Destination Advertisers 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 Organization Account 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 Traffic Types of Agencies Full Service Creative Boutique Situation Analysis organization Media Buying Service Buys ad space in bulk In 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 Research based analysis of all the internal and external factors that affect the 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 category and treating all consumers the same Partially and Wholly Differentiated Company makes a variety of products geared towards certain segments of the market In a partially differentiated company the sum of all products does
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