Exam 1 Study Guide by Darcy Hock Everything You Need to Know to Get Started The 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 Product the bundle of attributes the consumer receives in a transaction Price what the customer must give up in order to receive the product Place all the issues related to the system of distribution Promotion all methods used to inform and persuade the target market about products that are available at some price and in some place 4 P s promotion Decisions about product price and place precede those pertaining to Resource allocation across the elements must achieve a balance between product development and promotion Promotions Mix A model of communication alternatives Media vs personal communication Paid vs free communication o Paid provides control o Free provides credibility Different companies use differing levels of each part of the mix diagram in book o Adv media communication and paid communication o Publicity media and free o Sales personal and paid o Social media personal and free Advertising advantages and disadvantages of paid mass media Advantages o Control of message delivery of message timing of delivery of message o pay control o Low cost to reach each person Disadvantages o High absolute cost total cost very expensive o Low credibility o In many instances absence of rapid feedback Public Relations develops understanding and goodwill Publicity o Media time and space that the organization does not pay for o Usually very positive for the product o Can be very detrimental because company has no control o Article written about company o Interviews Sales personnel representing the organization who are in direct communication with potential customers Personal Selling Social Media Advertising Various online technology tools that allow people to connect via the Internet to share information and resources Facebook twitter Any PAID NONPERSONAL communication form of an identified sponsor that INFORMS PERSUADES and or REMINDS Decision Sequence Model A process used in advertising as a way to guide the creative process toward effective strategy and execution Components o Situation analysis a research based analysis of all of the internal and external factors that affect the organization Consumer how to identify the target market Competition Product category grouping competitors Company factors effecting company Macro environment things out of the company s control o Objectives and Positioning Objectives goals the company plans to achieve Positioning the way the consumer perceives the brand Brand all of the intangible attributes attached to the product Product orange juice running shoes Brand minute maid Nike Brand equity the difference in perceived value between the product and the brand Different products have different values based on the brand they represent A combination of actions that achieve the objectives How we go about achieving it Types of strategies creative media sales promotion o Strategies Budget setting allocation of funds needed to implement the strategies Implementation putting the strategies into action Evaluation assesses the success of the campaign Did the campaign achieve the stated objectives Levels of Involvement The relative importance of the product to the consumer Three Levels No involvement o No interest in the product category o No purchase behavior Low involvement o Product is used o Careful brand evaluations are not made High involvement o The product is used o Consumer engages in careful brand evaluation prior to purchase Hierarchy of Effects The series of stages a consumer passes from unawareness to brand loyalty High Involvement Hierarchy Awareness knowledge that the product exists Attitude opinions about the product could be positive negative neutral Behavior any action related to the product Low Involvement Hierarchy Awareness Trial behavior action related to the product without the formation of attitude Attitude don t develop an attitude until you try it Repeat behavior subsequent action based on positive attitude More inclined after testing the product and enjoying it SCHRAMM S Model of One Way Communication know SHRAMM Advertiser puts together ad which is understood by the target market Source encodes signal decodes destination advertiser ad viewer listener reader Potential Problems with One Way Communication Encoding the source perceives the problem incorrectly then encodes the wrong concept Ex Taco Bell drive thru diet Signal the source understands the problem but sends a signal that does not communicate the intended message Ex Burger King Decoding the receiver misunderstands or misinterprets the message Ex JC Penny year round low prices Destination the receiver understands the message but forgets ignores Lack of budget if you don t reinforce the message it wont be remembered Advertising Agency Organization Account servicing QB of the team has thorough understanding of everything o Liaison between the agency and the client o Often involved in new business development o Strategy development Research involved in a project throughout the entire process First people to be involved in a project o Situation analysis o Concept testing o Evaluation Strategic planning o Develops creative direction of campaing o Based on consumer research finding Creative o Develops verbal message copy o Develops visual message layout art direction Media where the money is spent o Delivery of the message o Striving for the most efficient use of money o Translates the copy and layout into finished form Production Traffic deadlines o Controls the entire process to insure that each department meets Types of Agencies Full service complete services o Research o Creative o Media o Potentially PR sales promotion social media Media buying Service o Media buying only o Specialists o Often purchase in bulk Creative Boutique o Small specialty agency o Print broadcast internet o Sometimes just concept development In House o Agency operated within the corporation o Some functions outsourced Consumer Segmentation Getting to Know You Situation analysis a research analysis of all of the internal and external factors that affect the organization Consumer segmentation overall purpose is to achieve the greatest amount of sales with the least amount of expense The goal is to find market potential Reasons for Consumer
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