Principles of Advertising Exam 1 1 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 May be tangible food or intangible movie Price what the consumer must give up in order to receive the product Method of payment matters Place all issues related to the system of distribution Wherever you buy it Can be a cyber location Production to final purchase Promotion all methods used to inform and persuade the target market potential consumers about products that are available at some price and in some place 3 types all make the marketing plan better Advertising Public Relations Sales Promotion 4 Ps Product price place promotion Decisions about product price and place precede those pertaining to promotion Resource allocation across the elements must achieve a balance between product development and promotion Supply must match demand ex Best Buy advertising kindle but they were out of stock in stores the consumer then goes and purchases it somewhere else Advertising any PAID NONPERSONAL communication from an identified sponsor that INFORMS PERSUADES and or REMINDS Introduces shows off reminds of sales promos There is no such thing as free advertising because then you d have no control over the message Advantages and disadvantages of paid mass media Advantages Gives the advertiser control of Message as long as it meets Gov regulations you re free to advertise as you please Delivery of message billboard print online Timing of delivery of the message can choose specific dates Lost cost to reach each person Disadvantages Not very credible because some people are suspicious of ads since they know they are being persuaded Delayed feedback Social media however is changing that Costly for a big audience Decision Sequence Model A process used in advertising as a way to guide the creative process toward effective strategy and execution Components Situation Analysis known as the fact finding stage helps understand the environment A research based analysis of all of the internal and external factors Objectives and positioning that affect the organization o Consumer o Competition which other ads need to be recognized o Product o Company goals philosophy budget help develop the right ad o Macro environment how the economy for example affects the company how to deal with factors they have no control over Objectives what the company plans to achieve Positioning the way the consumer perceives the brand in their mind Brand all of the intangible attributes attached to the product Helps you build the positioning because it brings up things the consumer mentally associates with the product o Product orange juice sneakers o Brand minute maid Nike logo slogan athletes who endorse the product reputation all intangibles Brand equity the difference in perceived value between the product and the brand how much more less you are willing to pay for one brand over the other for essentially the same product People buy brands not products Strategies objectives are what we want to do strategies are how we are going to do it A combination of actions that would achieve the objectives Types of strategies o Creative o Media o Sales promotion Budget Setting allocation of funds needed to implement strategies Implementation putting the strategies into action Evaluation assesses the success of the campaign answers the question Did the campaign achieve the stated objectives Levels of Involvement Three levels No involvement not important to the consumer No interest in the product category doesn t participate in activity this applies a lot to environment based products No purchase behavior Low involvement Product is used Careful brand evaluations are not made prior to purchase milk paper towels High involvement highest involvement in approaching the product purchase The product is used Consumer engages in careful brand evaluation prior to purchase Not always expensive most are though or require extra time Hierarchy of Effects the series of stages a consumer passes from unawareness to brand loyalty High involvement awareness attitude behavior GOES UP High involvement hierarchy Awareness knowledge that the product exists Attitude Opinions about the product Can be positive leads to purchase or at least interest negative or neutral Behavior any action related to the product Low involvement awareness trial behavior attitude repeat behavior GOES UP Low involvement hierarchy Awareness Trial behavior you can risk buying it because of low involvement and not much to lose Attitude Repeat behavior subsequent action based on POSITIVE attitude Schramm s Model of ONE WAY Communication 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 Signal the source understands the problem but sends a signal that does not communicate the intended message failed punch line usually a creative problem Decoding the receiver misunderstands or misinterprets the message because the advertiser and target audience are on not on the same page the delivery was too weird or confusing Destination the receiver understands the message but forgets ignores or cannot afford it The message may not be memorable This is usually a media problem Advertising Agency Organization Account servicing every agency will have this Liaison between the agency and the client Often involved in new business development Strategy development the key strategists have a broad knowledge skill set quarterback Research Involved in a project throughout the entire process First people to be involved in a project Situation analysis first stage of the decision sequence model Concept testing Evaluation Strategic planning account planning liaison between research and creative people interpret research Develops creative direction of campaign Based on consumer research findings Creative Develops verbal message copy Develops visual message layout art direction most agencies place verbal visual people together because they help each other Media Delivery of message Strives for most efficient use of money Production web design social media Translates the copy and layout into finished form Project management Make
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