ADV 483 1st EditionExam # 1 Study Guide Lectures: 1 - 9I. MIDTERM REVIEW 1. What is audience analysis? 2. Why should you study it?3. What is situation analysis? 4. What is SWOT analysis?1. Strengths, weaknesses, opportunities, threatsb. What is positioning?A marketing strategy that aims to make a brand occupy a distinct position, relative tocompeting brands, in the mind of the customer. Companies apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising. Once a brand is positioned, it is very difficult to reposition it without destroying its credibility. Also called product positioning.a. What is BDI? (Brand Development Index)compares sales of brand in a certain market with average sales of same BRAND in total US when you look at bdi you keep cdi in mind too. once you have these two sets of data you should compare your bdi to your cdi. you will be able to find those markets where your brand is doing better than the category overall and conversely where your brand appears to be underperforming the category. a. What is CDI? (Category Development Index)compares sales of category in a certain market with average sales of same CATEGORY in total US - a norm, or average is calculated at 100, and then each area is assigned a value relative to that, expressed as a percent. BDI/CDI higher/lower than 100 (reference point)means that the brand/category sales in that market are better/worse than its average USsalesExercise: determining strategyHigh BDI Low BDIHigh CDIHigh market shareGood market potential for brand and category; usually spending is heavier hereLow market share and good market potential (brand doing poorly compared to category; room for brand to grow)Low CDIHigh market share but category is lowMonitor for sales declineLow marketPoor market potential; usually little spending here. Advertise if category is growing or market is large and therefore accounts for much of the sales8. What is HUT? a. HUT = Households Using TV8. What is Share? Proportion of the people watching the shows at the specific timeShare = percentage if a TV’s in a market actually turned on (HUT) watching a given programa. Example:Market size = 100,000 HHHUT = 40,000 (people who watch Drew Carey Show) + (20,000 people who watchDateline) = 60,000Or, HUT% = 60Share for Drew Carey = 40,000/60,000 = 67Rating for Drew Carey = 40,000/100,000=4010. What is Rating?a. How many people watch specific program, specific media, at what timeb. Rating points do not inform you about the actual size of a program’s actual audience10. What is a target audience? defining the target audience is a key step you must take in the objective setting process, because you can’t make a schedule to reach people you haven’t identified yet. ideally, the target audience for your media plan should be identical to the audience for the overall marketing plan. most brand sales are typically generated by its current users so it normally works out that way. Life stages can be a crucial factor as well media target maybe both more and less precise than the marketing target. this is because the media themselves have traditionally been bought and sold on the basis of fairly basic demographics such as sex age and income, education and race. As technology improves we are more likely to see development of more precise and lifestyle/ product usagebased targeting. Hopefully in the future we will be able to better select who sees what. ex, only people who own dogs would see the dog food ad on tv. Media target should be identical to the creative target once you know your target audience you should try to find out as much info as possible about the individuals who make up that audiences- age sex education level income profession, but also the kind of products they use and the media they tend to hear or see.10. What is segmentation analysis?a. always consider if the media target should be broad or narrow. there are risks to both sides. b. today’s brands are becoming more and more segmented. Brands are separated into different sub brands. ex- tide, tide cold wash, tide colors, tide sented. each ofthese groups is likely to have different media habits and preferences and trying tocreate a media plan that would reach everyone would ignore the needs of different population groups in terms of both product benefits and media usage. c. you run the risk of making your target audience so small that it would be almost impossible to reach them i. the problems here are 1. most traditional media will not only present your message to your target but also to many others for whom the product is probably irrelevant. 2. you also have to consider what the cost will be of all the planned media 10. What is an advertising objective? i. frequently the advertising objective is tied in to the stage at which the target audience is in the decision making process. ( 3 broad sections - think, feel, and do ) ii. setting advertising objective for the subsequent stage in the decision process is somewhat less common, because it is believed that advertising has a less direct role to play here. b. Ex: Philadelphia cream cheese will increase brand awareness by 10% in 200910. What is a marketing objective? i. the marketing objective may relate to any of the four major areas of the marketing mix ( product, promo, distribution, and price) ii. it is often expressed in terms of specific volume and shared goals, such as within in calendar year 2010, bring brand z’s total volume sold to 25 percent to 38 percent. iii. if it isn’t well defined by using words like increasing awareness or improving distribution- then there will be great debate when the time period is up. iv. Ex: Velveeta will increase sales by 4% during key sales periods in 200910. What are the differences between advertising and marketing objectives?i. Marketing Objectives: relates to any of the four major areas of the marketing mix. Marketing goals are to SELL more product. Marketing objectives are more quantifiable. ii. Advertising objectives tie into the 8 main stages of the consumer decision-making process introduced in Chapter 2 (Need, Awareness, Preference, Search, Selection, Purchase, Use, and Satisfaction). (i.e. an advertising objective would be to boost Awareness or Preference for a certain brand by