ADV3008 Exam 1 Studyguide Tips for studying o Study Lecture Notes o Communicate Concepts o Be able to explain product lifestyle o Be able to do our own examples o Main chapters to focus on o Be able to answer questions with a scenario o Chapter 1 3 o Examples You re producing an Ad what kind of execution What is DAGMAR about Josh works in an ad agency and sales drop what happens to the budget Chapter One Marketing Concept Marketing concept a business philosophy where the organization determines the needs of the target market and satisfies those needs at a profit o PRICE MARKET IS IMPORTANT IN MARKETING PROFIT Comprised of the marketing mix o 4 elements 4 P s 1 Product Tangible items bundle of attributes the consumer receives in transaction Not only concrete items a Tangible or intangible i Tangible ii Intangible movie clothes food etc cable wireless cell service pay to see a 2 Price What the consumer gives up in order to receive the a Funds method of payment online accounts financing product credit b Not just what you pay for the product c Includes method of payment 1 i How is the consumer going to pay and receive attributes 3 Place All issues related to the system of distribution a Shipping freight postal services taxes b Where we buy the product and the chain of distribution i Production of FINAL PURCHASE 4 Promotion All the methods used to inform and persuade the target market about products available at some price and some place a Types Advertising Public Relations and Sales promotion i If you take away any of these it wont be as good as it should be Relationship Between the 4P s 1 Decisions about product price and place preceded those pertaining to promotion a Promotion comes after 2 Product price and place precede promotion How can you advertise an undeveloped product or distribute PR efforts without knowing where you distribution is a Resource allocation across the elements must achieve a balance between product development and promotion b Need of balance between product development and promotion How do you utilize your resources i Ex Most of BestBuy com viewers we re seeking brands that were out of stock Promotion drew resources away from the product 3 Resource allocation across the elements must achieve a balance between product development and promotion a Creating interest for the consumer but producers is sold out i Creating the company excess demand doesn t do the company any good THE 4 P s 1 Advertising Any PAID NONPERSONAL communication from an identified sponsor that INFORMS PERSUADES and or REMINDS a There is no such thing as a FREE advertisement 2 i Must be through media no face to face ii ADVERTISING IS PAID COMMUNICATION THROUGH MEDIA 1 Advertisers don t show you the truth they show you part of the truth 2 Advantages and Disadvantages of paid mass media gives advertiser control Advantages Control of i Message ii Delivery message to be heard what is it of the message where they want the 1 Where is it going iii Timing of the delivery of the message 1 When will it be advertised a Controls the time space and delivery of b Low cost to reach each person the message i Not always credible ii Varies in price cheaper per person iii Can be expensive depends on number of audience iv Show to generate result slow feedback Disadvantages Expensive Very low credibility Not very rapid feedback Public Relations Publicity o Not always going to generate immediate sales o Publicity is media time and space that your client is featured in o Develops understanding and goodwill Personal Selling allows you a little more control through employee training and incentives however the consumer remains fully aware o Drawback with credibility but you get control 3 Social media various online technology tools that allow people to connect via the internet to share information and resources o 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 Advertising Any paid non personal communication from an identified sponsor that informs persuades and or reminds o No such thing as free advertising because than you lose control All forms of communication are not fully effective companies use a variety of each and distribute their resources across all Decision Sequence Model A process used in advertising as a way to guide the creative process toward effective strategy and execution A road map towards effective strategy and execution Components o Situation Analysis understand what s going on externally A research based analysis of all of the internal and Fact finding helps advertise and external factors that affect the organization o Consumer Identifying target market o Competition who needs to be addressed o Product category o Company Type of financial o Macro environment Large scale issues that companies have little control over Ex economy o Objectives and Positioning 4 Objectives goals the company plans to achieve Increases awareness Positioning the way the consumer perceives the brand What does the customer think of Brand all of the intangible attributes attached to the product Ex Product orange juice Brand Minute Maid o Brand Nike o Product Sport attire swoosh just do it reputation Brand equity the difference in perceived value between the product and the brand How much will one pay between products all because of perception Perceived value is more than the cost to make it People will pay more for the status they get for wearing the brand We buy BRANDS not PRODUCTS o Strategies o Higher brand equity higher price products HOW we go about achieving objectives A combination of actions hat achieve the objectives WHAT Types of strategies Creative Media Sales Promotion couponing sampling allocation of funds needed to implement o Budget Setting the strategies How much is too much o Implementation o Evaluation Put the strategies into action Assess the success of the campaign Did the campaign achieve the stated objectives Levels of Involvement THREE LEVELS The relative importance of the product to the consumer 5 1 No Involvement a NO interest in the product category b No purchase behaviour c Just because you have no interest doesn t mean you don t know about it i Ex Snow Mobiles in South Fl No Market 2 Low Involvement a
View Full Document
Unlocking...