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AdvertisingAny paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
Advertising ObjectiveSpecific Communication task to be accomplished with a specific target audience during a specific time
Objectives are classified by primary purpose:
-inform
-persuade
-remind
Informative AdvertisingIntroducing a new product category; objective is to build primary demand
Comparative AdvertisingDirectly or Indirectly compares the brand with one or more other brands
Persuasive AdvertisingImportant with increases competition to build selective demand
Reminder AdvertisingImportant with mature products to help maintain customer relationships and keep customers thinking about the product
Advertising StrategyCompany accomplishes its advertising objectives and consists of:
-creating advertising messages
-selecting advertising media
Madison & VineRepresents the merging of advertising and entertainment
Creating Advertising MessageMessage Strategy to Creative Concept to Message Execution
Creative ConceptIdea that will bring the message strategy to life and guide specific appeals to be used in advertising campaign
-meaningful
-believable
-Distinctive
Message ExecutionAdvertiser turns the big idea into and actual ad execution that will capture the target market’s attention and interest
-tone (+ or -)
-attention getting words
-format: Illustration, Headline, Copy
Creative Team (msg execution)Must find the best approach, style, tone, words, and format for executing the message
Benefits towards Media Advertising-Low Expense
-New creative ideas
-Fresh perspective on brand
-Boost consumer involvement
ex: Youtube Videos or Brand Web site contests
Reach (selecting advertising media)Measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time
Frequency (selecting advertising media)Measure of how many times the average person in the target market is exposed to the message
Impact (selecting advertising media)Qualitative value of a message exposure through the given medium
Selecting Media VehiclesDecisions presenting the media effectively and efficiently to the target customer and must consider the message’s:
-impact
-effectiveness
-cost
Narrowcasting (selecting advertising media)Focuses the message on selected market segments
-lower cost
-targets more effectively
-engages customers better
Selecting Advertising Media TimingConsider:
-Seasonality
-Pattern of Advertising:
Continuity and Pulsing
Continuity (Pattern of Ad.)Scheduling within a given period
Pulsing (Pattern of Ad.)Scheduling unevenly within a given period
Communication effectswhether the ad and media are communication the ad message well and should be tested before or after the ad runs
Sales and Profit EffectsCompare past sales and profits with past expenditures or through experiments
Public RelationsBuilding good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
Promotes product, people, ideas, and activities
Press Relations or Press AgencyCreation and Placing of Newsworthy information to attract attention to a person, product, or service
(public relation department functions)
Product PublicityPublicizing specific products
(public relation department functions
Public AffairsBuilding Maintaining National or Local Community Relations
(public relation department functions
LobbyingBuilding and Maintaining Relations with legislators and government officials to influence legislation and regulation
(public relation department functions
Investor RelationsMaintaining relationships with shareholders and others in the financial community
(public relation department functions
DevelopmentPublic Relations with donors or members of nonprofit organizations to gain financial or volunteer support
Differences of Public Relations and AdvertisingLower cost than advertising
Stronger impact on public awareness than advertising
Allstate created Mayhem campaign in response tocompetitors boosting budgets and creative splash
Advertisingany paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
How much do US Advertisers spend per year on ads v. worldwide?144 in the US, 489 in the world
World’s largest advertiserP&G
US Government is the _____ largest advertiser28th
4 important decisions marketing managers must make when developing an advertising program:setting advertising objectives, setting the advertising budget, developing advertising strategy, and evaluating advertising campaigns
way to remember 4 important decisions marketing managers must make:OBSE
The first step in developing an advertising programSetting Advertising Objectives
Advertising Objective:A specific communication TASK to be accomplished with a specific TARGET audience during a specific TIME
The 3 Ts of an Advertising ObjectiveTask-Target-Time
The primary purpose of adsto inform, persuade, or remind
Informative AdvertisingUsing heavily when introducing a new product. Objective of informative advertising is to build primary demand
Persuasive AdvertisingObjective is to build selective demand; becomes more important as competition increases.
Comparative AdvertisingAttack advertising; a company directly or indirectly compares its product to another brand
Where can competitors file complaints because of attack/comparative advertising?National Advertising Division of the Council of Better Business Bureau
Reminder Advertisingimportant for mature products to maintain relationships and keep customers thinking about the product
Advertising BudgetThe dollars and other resources allocated to a product or a company advertising program
4 commonly used methods for setting promotion budgets:The affordable method, the percentage of sales method, the competitive-parity method, and objective-and task method
Affordable method for setting budgetsetting the promotion budget at the level management thinks the company can afford
The % of sales method for budget settingsetting the promotion budget at a certain percentage of current or forecasted sales or as a % of unit sales price
Competitive Parity MethodSetting the promotion budget to match competitors’ outlays
Objective and task methoddeveloping the promotion budget by 1-defining specific promotion objectives and 2-determining the tasks needed to achieve these objectives, and 3-estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
Way to remember the 4 methods for setting an affordable budgetAPCO
What does APCO stand for?Affordable – Percentage of Sales – Competitive – Task and Objective (these are the four methods for setting a budget for an advertising campaign)
A brand’s advertising budget can depend on its _____stage in the product life cycle
Newer products typically need ____ advertising budgetslarger
_____ affects the amount of advertising neededmarket share
Building market share requires ____ advertising compared to maintaining market sharemore
Undifferentiated brandsbrands that closely resemble other brands of their product class (soda, laundry detergent)
Undifferentiated brands need ____ advertising compared to other productsmore
Companies that can maintain or increase their advertiser spending while competitors may be cutting theirs ______can gain a competitive advantage
2 major elements of advertising strategyadvertising message & media
Advertising strategystrategy by which the company accomplishes its objectives. 2 major elements of advertising strategy: creating messages and selecting media
How many ads is the average consumer exposed to on a normal day?3,000 to 5,000 ads
thanks to the growth of DVRs, people are choosing _______not to watch ads
Madison & VineA term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching customers with more engaging messages
What does Madison & Vine represent?The combining of Madison Avenue in New york with Hollywood & Vine in california to represent the merging of advertising and entertainment in an effort to create new avenues for reaching consumers with more engaging messages
MADISON AND VINEmerging of advertising and entertainment
2 forms of the combination of madison and vine:advertainment or branded entertainment
aim of advertainmentmake ads themselves so entertaining, or so useful that people want to watch them
Prime example of advertainmentSuper Bowl ads
branded entertainmentmaking the brand an inseparable part of some other form of entertainment.
main example of branded entertainmentproduct placement
Ads have to be _ _ or _ for viewers to willingly watchinteresting, useful, entertaining
Advertising agency JWT:“We believe advertising needs to stop interrupting what people are interested and be what people are interested in”
First step in creating an effective marketing messageplan a message strategy
message strategygeneral message that will be communicated to consumers
Purpose of advertisingto get consumers to think about or react to the product or company in a certain way
Creative Conceptthe “big idea” that will bring an advertising message strategy to life in a distinctive and memorable way
Advertising appeals should have 3 characteristics:meaningful, believable, distinctive
Meaningful aspect of advertising:pointing out benefits that make the product more desirable or interesting
Believable aspect of advertisingconsumers must believe that the product or service will deliver the promised benefits
Distinctive aspect of advertising:should tell how the product is better than competing brands
Execution Style of Message:The approach, style, tone, words, and format used for executing an advertising message
Various execution styles through which a message can be presented:slice of life, lifestyle, fantasy, mood or image, musical, personality symbol, technical expertise, scientific evidence, testimonial evidence or endorsement
Slice of life advertisingshows one or more typical people using the product in a normal way
Flo from Progressive would be an example of the following execution style:Personality Symbol
Consumer Generated Messages:companies are tapping consumers for message ideas or ads
Ad-Creation Contests would be an example of aconsumer generated message
Advertising Media:The vehicles through which advertising messages are delivered to their intended audiences
4 major steps to advertising media:1- determining reach, frequency, and impact. 2-choosing among major media types 3-selecting specific media vehicles 4-choosing media timing
Way to remember steps to advertising mediaITVT- impact,type, vehicle, timing
Reach% of people in the target market exposed to the ad campaign
Media planners want to choose media that willeffectively and efficiently present the advertising message to target customers
good mass marketing coverage, low cost per exposure, appealing to the sensesTV as a medium
high absolute costs, high clutter, fleeting exposure, less audience selectivityTV as a medium
high selectivity, low cost, immediacy, interactive capabilitiesInternet as a medium
potentially low impact, audience controls exposureInternet as a medium
Flexibility, timeliness, good local market coverage, broad acceptability, high believabilityNewspaper as a medium
Short life, poor reproduction quality, small pass-along audienceNewspaper as a medium
High audience selectivity, flexibility, no ad competition within the same medium, allows personalizationDirect mail as a medium
relatively high cost per exposure, “junk mail” imagedirect mail as a medium
High geographic and demographic selectivity, credibility and prestige, high quality reproduction, long life and good pass-along readershipMagazines as a medium
Long ad purchase lead time, high cost, no guarantee of positionmagazines as a medium
good local acceptance, high geographic and demographic selectivity, low costradio
audio only, fleeting exposure, low attentionradio
flexibility, high repeat exposure, low cost, message competition, good positional selectivityoutdoor as a medium for advertising
little audience selectivity, creative limitationsoutdoor as a medium for advertising
Continuityscheduling ads evenly within a given period
When deciding what magazine to place an ad in a marketing manager will look atthe cost per 1,000 readers
Return on Advertising Investment(net return on advertising investment) / (Costs of advertising investment)
Advertisers should regularly evaluate 2 types of advertising results:communication effects and the sales and profit effects
Communication effects of evaluating advertisement effects:whether the ads and media are communicating the ad message well
Advertising Agencya marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs
largest advertising agency in the USBBDO Worldwide
Most basic concern to international advertisingthe degree to which global advertising should be adapted to the unique characteristics of various country markets
Benefits of standardization of advertisinglower advertising costs (economies of scale), greater global advertising coordination, and a more consistent worldwide image
Most international advertisers“think globally but act locally”
Alcohol products can’t be advertised inIndia or Muslim countries
Public relationsbuilding good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
Various functions performed by PR departmentspress relations or press agency, product publicity, public affairs, lobbying, investor relations, development
_______ can have a strong impact on public awareness at a much lower cost than advertising doesPublic Relations
What does a company pay for regarding public relations?the staff
Main tool of PRnews
Frito-Lay was looking for new flavors for potato chips and ran a? multi-stage contest among consumers who submitted ideas for new chips. Those entries eventually were narrowed to three flavors which were then manufactured and tested in the market. What tactic was? Frito-Lay employing?consumer-generated content
companies can improve public goodwill by contributing $ and time topublic service activities
the 50th largest advertising spender is what agency?The US Government
What are the two major elements that make up advertising strategy?creating advertising messages and selecting advertising media (MESSAGES AND MEDIA)
What does the term Madison & Vine mean?the merging of advertising and entertainment
brands in a market with high competition and high advertising clutter mustbe advertised more heavily to be noticed in the marketplace
What is a disadvantage of using direct mail as an advertising medium?relatively high cost per exposure
Product placement is an example ofbranded entertainment
Which message execution style depicts people using the product in a normal scenario?slice of life
Which of the following is a media? measure?click-through rate
Which of the following is a major step in selecting advertising? media?determining reach, frequency, and impact
Promotion mixA companies total promotion (communication mix) used to communicate customer value
5 major promotion mix toolsAdvertising, sales promotion, personal selling, public relations, Direct Marketing
the new marketing communications modelChanging consumers- better informed
Companies these days are doing less broadcasting and more narrowcasting by segmenting audiences.
Integrated marketing communicationsCoordinating all of the companies communication channels. Companies often fail to integrate their communications because they come from different parts of the company.
Markets are loosing confidence in TV advertising because ofIncreasing ad clutter, using streaming on computers, audience size on decline for TV, DVR’s
The nature of Advertisingbuyers at a low cost per exposure, Can build up long-term image for a product, consumers tend to view advertised products as more legitimate
The nature of personal sellingis the most effective promotional tool in building up buyers’ preferences and actions.
Sales promotionnot very effective in building long-run brand preference and customer relationships. Advertising says buy my product. sales promotion says buy it now (coupons, contests, promotions) ex. monopoly game
PR- crisis managementwhen something goes wrong PR has to figure out what to do
Direct Marketing1. Less public
2. immediate
3. customized
4. quick
5. interactive
Push promotion strategyDirects marketing efforts towards market channel members
Pull promotion strategyspend money on consumer (pull off shelves)
4 important decisions in developing advertising1. set objectives
2. set AD budjet
3. developing strategy
4. AD evaluation
reach (advertising)how many people you reach
frequency (advertising)how often. repetition is key to memory
Advertising OBJ can be classified by their primary purposeto inform, to persuade, to remind
informative Advertisingused when introducing a new-product category, objective is to build demand. ex: swifter
Reminder AdvertisingImportant for mature products. ex: coke, M&Ms
Share of voiceHow much they spend vs other companies? Larger the share of market the less you have to advertise.
Comparative AdvertisingLarger shares will not use comparitive
Percentage-of-sales methodsetting promotion budget at a certain percentage. Very simple to use but it wrongly views sales as cause of promotion rather than result.
Competitive-parity methodparity means equal
Objective-and task methodmost logical methon. spending enough to accomplish specific goals
Advertising Strategycreating messages, selecting media
Madison & Vinethe merging of advertising and entertainment.
Brand entertainment or brand integrations
To succeed and AD must1. Gain attention
2. Be engaging
3 Types of Ads messages (commercials)1. Rational
2.emotion
3.moral
Message strategyAdvertising appeals should be meaningful, believable, and distinctive
execution stylethe approach, style. ex. humor, high tech, mood
Consumer-generated messagesAmateur video with mentor in Diet coke is an example of growing trend in consumer generates messages
Selecting Advertising MediaToday a more important element is selecting the right advertising media.
Soaring media costs focus target marketing strategies and growing array of new media have increased importance of media playing.
choosing among media typesconsider each’s impact, effectiveness, and cost
continuityscheduling ADs evenly all year
PulsingScheduling ADs unevenly. ex. tax companies
Public RelationsUsed to promote products, people, places, ideas, activities, nations, and organizations
lobbyingbuilding and maintaining relations with legislatures and government officials to influence legislation and regulation. (environmental groups, pro-gun)
The primary focus of the marketing concept isThe needs of the customer
Anything that can be offered to a market for attention, aquistition, use, or consumption that might satisfy a want or need is called aProduct
Taco Bell has found that the lifetime value of a Taco Bell customer is about $12,000. Studies have shown that the key to customer retention isOffer superior customer value and satisfaction
The idea of efficiently meeting the needs of customers, better than the competition, for a profit is calledBusiness
The twofold goal of marketing is to attract new customers by promising superior value andTo keep and grow current customers by delivering satisfaction
If a company understands the marketing concept its first step will be toDevelop a product
Examples of pure tangible goods include all of the following EXCEPTlandscaping
All of the following examples are services EXCEPTComputer software
Which of the following best describes the first stage of the new product development processIdea screening
What can be characterized by these four distinct stages : introduction, growth, maturity and declineProduct life cycle
With respect to the product life cycle, what stage is a period of slow sales growth as the product is introduced in the marketIntroduction stage
With respect to the product life, what can be defined as a period of rapid market acceptance and increasing profitsGrowth stage
With respect to the product life cycle, what can defined as a period of slowdown in sales growth because the product has achieved acceptance by most potential buyerMaturity stage
An example of demographic characteristics isGender
Your interests and value are indemnified byAll of the above
A company must always guard against dissatisfying customers. On average a satisfied customer tells 3 people about a good purchase experience. A dissatisfied customer however o average tells how many people about their experience11
What can be defined as a form of product that consists of activities benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anythingService
Products purchased frequently immediately and with a minimum of comparison and buying efforts are calledConvenience products
products or services that are purchased as a result of an urgent need areEmergency goods
The best example of a specialty product listed below is that of aLuxury good, such as a Rolex watch
Consumer goods that the consumer does not know about or does not normally think about buying are calledUnsought products
a licensing agreementProtects corporations and individuals from unauthorized copying
If Honda uses its company name to create such products as a lawn mower and motorcycle, it is practicing which of the following strategiesBrand extension strategy
Sears created the crafts man brand name for tools. This would be an example of which of the following branding optionsPrivate brand
If mattel pays Walt Disney corporation for the right to use its Disney princess name on its line of games dolls and accessories then Mattel is using which type of policyLicensing
If ford motor company and Eddie bait work together to design and sponsor a new sport utility vehicle then the companies are using which of the following brand sponsorship optionsCo branding
I hat can be defined as a strategy of using a successful brand name to launch a new or modified product in a new categoryBrand extension
The activities of designing and producing the container or wrapper for a product isPackaging
The first federal act to control labels on packages was theFederal trade commission act of 1914
The number of items within the product line is identified as being theProduct line length
The goods producing industry isBecoming more automated
The set of all product lines and items that a particular offers for sale isProduct mix
The last step in product development isProduct testing
The characteristic of service meaning that it cannot been seen tasted felt heard or smelled before being bought is calledIntangibility
Capitol equipment includesFurniture
What is the process of dividing a market into smaller groups of buyers with donating needs characteristics or behaviors who might require separate products or marketing mixesMarket segmentation
When Campbell soup makes Cajun gumbo soup for Louisiana and Mississippi and nacho cheese soup for Texas and California it is practicing what type of segmentationGeographic
What can be defined as the process of dividing a market into different groups based on social class lifestyle or personality characteristicsPsychographic segmentation
A set of buyers sharing common needs or characteristics that the company decides to serve isTarget market
Organized actions of groups of consumers seeking to increase their influence in business practice isSocial responsibility
Which took of the promotional mix is defined as any paid form of non personal and promotion of ideas goods and servicesAdvertising
Which took of the promotional mix consists of short term incentives to encourage the purchase or ska rod a product or serviceSales promotion
The personal presentation by the firms sales force for the purpose of making sales and building customer relationships is calledPersonal selling
Which of the following promotional forms is often described as being too impersonal and only a one way communication formAdvertising
Which of the following promotional tools is thought to be the most expensive to usePersonal selling
The promotion tool that may include coupons contests premiums and other means of attracting consumer attention is best described as being which of the followingSales promotion
The first step in developing an adversing program should be toSet the advertising budget
Which of the following WOULD NOT be one of the primary advertising objectives as classified by primary purposeTo persuade
What is used heavily when introducing a new product categoryInformative advertising
If Nike tries to convince consumers that it’s brand of sneakers is the best quality for the money it is using which of the following forms of advertisingPersuasive advertising
Keeping consumers thinking about the product is the objective for which type of advertisingReminder advertising
After determining its advertising objectives a company next set itsAdvertising budget
No matter how big the advertising budget advertising can succeed only if commercialsGain attention and communicate well
In terms of execution styles which type of advertising makes no clam about the product except to suggest that the product is part of such feelings as love or beautyMoood or imagery
In terms of executions styles a couple enjoying a picnic with the advertised product would be an example of which of the following types of advertisingLifestyle
The measure of the percentage of people in the target market who were exposed to the ad campaign during a given period of time is calledFrequency
what combines sight sound and motion appeals to the senses and had a low cost per exposureTelevision
A marketing services firm that sits companies in planning preparing implementing and evaluation all proportions of their advertising programs is callAdvertising agency
All of the following are considered to be consumer-promotion tools EXCEPTpush money
Which of the following consumer promotion tools is the most effective but most expensive way to introduce a new productFree samples
If a retailer were to offer the consumer a two for one deal in purchasing merchandise which of the following sales promotional techniques would have been usedCoupons
Selling is most accurately described as being _____________ communication with respect to the relationship with consumersNon personal
All of the following have been cited in the text as being characteristics of the successful salesperson exceptLoners
The steps that the salesperson follows when selling is called theSelling process
___________ is the step in the selling process in which the salesperson meets and greets the buyer to get the relationship off to a good startApproach
One of the hundred for the salesperson to handle well is the _________ stageClosing
The last stage in the selling process in the ________ stageFollow-up