Marketing Final Exam Review Chapter 12 Advertising and Public Relations 1 The Marketing Mix a The Promotional Mix i Aspect of the Marketing Mix b Promotional Mix Goal i To persuasively communicate customer value and build customer relationships ii To deliver a clear consistent and compelling message 1 These two goals make up the Integrated Marketing Communications a Idea that all 5 parts of promotional mix work together not independently 2 Example KitKat Unique Have a Break ADVERTISING 2 Key Characteristics a Paid Usually pay someone else to make ad b Non personal communication Usually one way street produce can t gage feedback c Identified Sponsor i Company identifying themselves as something to a consumer 3 New Trends in Advertising a Narrowcasting i Due to technology allowing marketers to better understand where people get their entertainment how they behave they re now able to target advertising more effectively ii Goes hand in hand with Niche Marketing 1 Examples a Netflix Suggesting movies you may like based off of movies b you ve watching already iTunes Suggesting songs you may like based off of artists you ve previously bought music from c Facebook Directly markets to you based off something you ve b Madison and Vine liked before i Merging advertising with entertainment CHPT 12 TERMS IN BOOK ii Embedding product and brand in show to remind viewer of product 1 Example a American Idol Sponsored by Coca Cola Coca Cola cups at each of the judges seats judges chairs shaped to remind you of a coke cup iii More beneficial to embed product in plot as opposed to just embed in 4 Major Decisions in Advertising screenshot a Objective Setting Communication and Sales Objective i 1 Informative Advertising 1 Build primary demand 2 Good for introducing new product category a Ex iPhone s first commercial Clear simple imagery works best ii 2 Persuasive Advertising 1 Build secondary demand 2 Good for direct or indirect brand comparisons 3 Tends to be not as attractive viewers tune out when too much info is thrown at them a Ex When Verizon compares their company to AT T iii 3 Reminder Advertising Increase frequency of purchase 1 2 Good for mature products or brands a Ex Energizer Bunny b Ex Walmart Their commercials aren t necessarily to persuade but to remind consumers of their products b Budget Decisions Setting Advertising Budget Methods i Affordable Method 1 Looking at last years numbers seeing how much left over stuff do you want to save for advertising 2 Most companies don t use this method because it s too vague ii Percentage Of Sales 1 Ex If you have 3 of sales left over then based off your knowledge of that percentage decide what percent do you want to use on advertising iii Competitive Party Method 1 Copy what competitors are doing 2 Not best option better to be proactive iv Objective and Task Method 1 3 Step Process c Message Decisions a 1 Define Objective b 2 Determine which tasks will help you achieve objective c 3 Estimate costs of each objective Determined off how much things cost you 2 3 Hard to do without good data 4 Most proactive i Message Strategy The BIG Idea Compelling Creative Concept ii Different Perspectives on The Big Idea 1 Unique Selling Position Rosser Reeves a Belief that the purpose of ads was to sell things not to look creative or funny 2 Inherent Drama Leo Burnett created Pillsbury Dough Boy and Tony Tiger a Believed you can build brand equity by positive ads b More Subtle 3 Brand Image David Ogilvy iii Message Execution Styles 1 Slice of Life a Showing typical users of a product in normal situations trying to shed humor on product i Ex McDonalds Haven t Had Coffee Yet commercial https www youtube com watch v x5h2 eIzoYU 2 Lifestyle 3 Fantasy a Showing how products fit with a particular lifestyle i Ex RedBull For Those Who Want To Explore commercial https www youtube com watch v LZaQqouGMdc a Creates a fantasy around a product of use i Ex Jimmy Dean Solar System commercial https www youtube com watch v pvHj0vovQHI a Build moor or image around a product beauty love serenity 4 Mood Image etc 5 Musical b Combining an emotion with a brand c Usually gains more loyalty with consumers i Ex Android AND commercial https www youtube com watch v AD oCSoI9OQ a Shows someone singing b If trying to inform this helps consumers pay attention i Ex Carlton Draught Beer commercial https www youtube com watch v YqmLuevOPQk 6 Personality Symbol a Character that represents the product i Ex Reebok and Terry Tate ii Ex Progressive and Flo iii Ex Allstate and Mayhem 7 Technical Expertise https www youtube com watch v k8QziCDf3WA Illustrating company expertise a b Subtly showing their knowledge on what they do i Ex Honda Accord The Cog commercial https www youtube com watch v ve4M4UsJQo 8 Scientific Evidence a Presenting survey or scientific data showing their brand is better than others b Should be quick and precise i Ex Dyson 20 Second commercial a Highly believable or likeable source endorsing a product b Using an identity group aspirational group 9 Testimonial c Best with endorsers i Angie s List commercial trying to relate to moms https www youtube com watch v B6q2AawA2w i Endorsers must have trustworthiness and credibility ii Ex Kelly Ripa Electrolux Mom commercial https www youtube com watch v ACrwJ4tWaZc 10 Consumer Generated Message a Using consumer made videos embedded in ads i Ex Target College Acceptance Letters commercial https www youtube com watch v vUkO6Gh3w6g ii Ex McDonald s McNugget Rap commercial https www youtube com watch v lOyZKmRRuI iv Advertising Builds on Consumer Behavior 1 Moderate Incongruity Too Normal Too Different a Ad is a little different but not too different that consumers disregard message all together it s just different enough i Gorilla Marketing Tactics 1 Unconventional Marketing Tactics 2 Maslow s Hierarchy of Needs d Media Decisions i Major Media Decisions 1 Reach a Percent of target market the company feels is exposed to ad during period of time 2 Frequency 3 Media Impact a How much ad will be repeated to consumer how many times a Qualitative value of an exposure through a given medium i Big Bang Theory has highest reach so advertising during this show would be most expensive ii Media Types 1 TV Radio Print Digital iii Media Vehicle Specific Programming 1 Deciding between network vs cable channel 2 Show during a specific show 3 Print in a specific magazine Sports Illustrated vs Guns Ammo iv Media Scheduling timing 1 Continuity 2 Flighting a