Creative Strategy Study Guide Domains of Advertising Advertising is a convergence of Art Business and Communication Why study advertising WE ARE We are swamped by commercial messages We need to be smart consumers of commercial information We need to be responsible communicators Why study advertising Because Advertising shows the world of tomorrow Advertising reflects cultures Advertising is essential to the American model of the economy Advertising is essential to the American media system What is advertising Advertising is The structured and composed Non personal communication of information Usually paid for and Usually persuasive in nature About products goods services and ideas By identified sponsors Through various media Advertising is one type of marketing communications Advertising is a paid mediated form of communication from an identifiable source designed to persuade the receiver to take action now or in the future What makes an ad great For advertisers great ads can 1 Get attention and be talked about 2 Entertain 3 Increase sales 4 Endure Dimensions of advertising Communications Marketing Economic and Social Ethical Advertising exists as a function of a product s existence With nothing to sell promote there is no need for advertising Advertising s Duality Advertising represents the intersection of communication and marketing The Human Communication Process Source Encoding Message Channel noise Decoding Receiver Sterns Model of Communication The author can either be a persona literary autobiography narrative or drama or implied consumers sponsored or actual Autobiography I tell story about myself to you Narrative Third person persona tells a story about others to an imagined audience Drama The character act out events directly in front of an imagined empathetic audience Implied consumers who are addressed by the ad s persona Sponsored consumers a group of decision makers at the sponsor s organization Actual consumers people in the real world who make up the target audience Feedback from Communication process Redeemed coupons Website visits Phone Email inquiries Visit to a store Requests for more information Increased sales Responses to a survey Marketing What is Marketing The process of planning and executing product conception pricing distribution and promotion to create exchanges that satisfy the perceived needs wants and objectives of individuals and organizations Marketing is a process aimed at satisfying customer needs profitably Process Developing products Pricing them strategically Making them available to customers via distribution network Promoting them through sales and advertising activities Industrial Business Markets To reach people who buy specific goods and services for businesses Goal To earn a profit for them firm Consumer Markets Ads are typically directed at consumers Product advertising Retail advertising Public Service Announcements Business to Business advertising B2B Trade advertising Professional advertising Agricultural advertising Product Consumer Packaged goods advertising Service advertising High Tech advertising Price Price advertising Image advertising Sale advertising Place Global advertising International advertising National advertising Regional advertising Local advertising Promotion Personal selling Advertising Sales promotion PR Brand Advocacy Engagement Loyalty Purchase Attitude Knowledge Brand Awareness Leads to Brand Equity Challenges Faces Advertising Today Ad Avoidance with New Tech DVR On demand media Alternative media Market Diversification Different lifestyle Different needs wants Different brand choice Different media usage Intensive competition Ad Skepticism Two thirds of consumers disbelieve the informational claims of advertising Consumers are socialized to be skeptical toward advertising Account Planner Ad agency staff who specializes in gathering consumer insights and using them to develop message strategies and who can speak on the consumer s behalf in the development of message strategy Person department and process that represents the consumer during the development of a campaign Account planning uses research and brand insights to bring a strong consumer focus to the planning of marketing communication Communication between Brands and Consumers What to say Positioning How to say Creative Where When to say Media To whom Targeting Why they have to buy ADVERTISING MARKETING AND CORPORATE STRATEGY Basics of Corporate Strategy 1 Corporate management structure 2 Business portfolio management 3 Corporate mission vision 4 Core competency 5 Growth strategy Business Portfolio Management BCG Matrix Shows relations between high low market share and high low market growth rate Corporate Mission Vision Organizations develop mission and vision to share their business purpose and direction with employees customers and other stakeholders Organization mission vision statement What the organization is concerned with The purpose of its existence Why the business was started Core Competency An area of specialized expertise that is the result of harmonizing complex streams of technology and work activity Growth Strategy How they can grow via new products and present products within the present market and the new market Marketing is the process of planning and executing the conception pricing promotion and distribution of ideas goods services to create exchanges that satisfy individual and organizational goals COMPANY AND COMPETITOR ANALYSIS What is the Problem or Opportunity What caused the Problem What created the Opportunity What can we do to solve the problem IMC Campaign Company Analysis Sales and profits Company s mission History Market standing category share Key personnel Product Service offerings Capital resources Product Analysis Product attributes Positioning Sales Margins Price Distribution Media spent Promotions used PLC Product Life Cycle Introduction Growth Maturity Decline Marketing Objectives for Different Stages of PLC Introduction wean product into the market Growth maximize market share early Maturity fight for share Decline Minimize effort and time to maintain market Push Pull Strategy Either sellers push information onto consumers or consumers pull information form the sellers Market Expansion Stage During the growth phase More consumers make their first second and third purchases but competitors jump into the market Market Becomes Saturated During the maturity stage New customers arrive and innovation is needed Fail