Advertising Exam

8/3/2019 Advertising Exam

1/10

Advertising Exam # 1

Chapter 1:

y Marketing definitiono The activity set of institutions and processes for creating, communicating, delivering,

and exchanging offerings that have value for customers, clients, partners, and society at

large.

o Value is the customers perception of all of the benefits of a product or service weighedagainst all costs of acquiring and consuming it.

y IntegratedMarketing Channel (IMC) definition (in my words)o IMC is the coordination and integration of all marketing communication tools, avenues,

functions and sources within a company into a seamless program that maximizes the

impact on consumers and other end users at a minimal cost

o Value ofIMC:

Avoids duplication of marketing efforts Synergy among promotional tools More efficient and effective marketing

Why are marketers decreasing the use of mass media advertising and increasingthe use of integrated marketing communications?

A) The mass market has become fragmented

B) New technologies gave consumers greater

control over the communication process

C) Use of the Internet and electronic commerce is growing

D) Explosive growth in social networking

y With the aid of promotional mix, IMC positions the brand in a very homogeneous wayy Promotional mix

o Promotion: the coordination of all seller initiated efforts to set up channels ofinformation and persuasion in order to sell goods and services or promote an idea.

o PromotionalMix: the basic tool used to accomplish an organizations communicationobjectives

o Advertising


2/10

Anypaid form of non-personal communication(T.V, Radio, Newspaper,magazines) about an organization, product, service or idea by an identified

sponsor.

No immediate feedback from audience Benefits: advertising is the most Cost-effective form to reach Large audiences

o Direct marketing In which organizations communicate directly with target customers to generate

a response and/or transaction.

Direct mails, catalogs, direct response ads, telemarketing, direct selling,database management, shopping channels, and internet sales.

Direct response advertising encourages consumers to purchase directly fromthe manufacturer (ex: Dell)

o Interactive media Allow for a back-and-forth flow of information whereby users can participate in

and modify the form and content of the information they receive in real time.

Internet, Kiosks, Interactive television, Cell phones, Other mobile devices Activities:Advertise products and services, Link ads and websites to search

engines, Offer coupons, contests, sweepstakes, Conduct direct marketing, Do

personal selling, Conduct public relations activities, Measure advertising and

promotions

o Sales promotion Marketing activities that provide extra value or incentives to the sales force, the

distributors, or the ultimate consumer and can stimulate immediate sales.

Consumer-oriented sales promotion: is targeted to the ultimate user of aproduct or service and includes couponing, sampling, rebates, contests, and

various point of purchase materials

Trade-oriented sales promotion: is targeted toward marketing intermediariessuch as wholesalers, distributors and retailers. Promotional an merchandise

allowance, price deals, sales contests, and trade shows are some of the tools.

o Publicity Nonpersonal communications regarding an organization, product, service, or

idea not directly paidfor or run under identified sponsorship.

Not always under company control therefore not always positive (sometimesunfavorable)

A news story, editorial, or announcement to a mass audience which is highcredible and has a low cost

o Public Relations Occurs when an organization systematically plans and distributes information in

an attempt to control and manage its image and the nature of the publicity it

receives


3/10

The management function which evaluates public attitudes, identifies thepolicies and procedures of an individual or organization with the public interest,

and executes a program of action to ear public understanding and acceptance.

Establish and maintain a positive image of the company among various publics Uses publicity and other tools such as Special publications, Community

activities, Fund-raising events, Sponsorships, Public affairs activities

o Personal selling Person-to-person communication in which a seller attempts to assist and/or

persuade prospective buyers to make a purchase or act on an idea.

Involves direct contact between buyer and seller, either face-to-face or throughsome form of communication.

y Touch pointso A touch point is any type of relationship that a company has with its customers.

Therefore, the touch points can be either positive or negative.

Chapter 2

y Competitive advantageo Something special a firm does or has that gives it an edge (advantage) over competitors.o Having quality products that command a premium price, providing superior customer

service, having the lowest production costs and lower prices or dominating channels of

distribution.

o Also it can be created through advertising that creates and maintains productdifferentiation and brand equity (Ex:Michelin stresses security and performance)

o Nike, McDonalds, BMW, etc have competitive advantage in their markets.y Target markets

o The focus of the firms marketing effort, and goals and objectives are set according tosuch market.

o Isolate Consumers With Similar: lifestyle, social class, geographic location, economicstatus, needs, age, marital status, etc. (segmentation)

o Dividing a market into distinct groups with common needs who respond similarly to amarketing situation

o Selecting a target market: 1) Determine how many segments to enter2) Determine which segments have the greatest potential for

my product

o Companies often develop different marketing strategies to satisfy different needspresented by the ultimate consumers.

y Market segmentationo Broad classes of buyers who have the same needs and will respond similarly to

marketing actions.

o Five steps: Groups consumers according to their needs


4/10

Group the marketing actions usually the products offered- available to theorganization

Develop a market-product grid to relate the market segments to the firmsproducts or actions

Selecting the target segments toward which the firms directs its marketingactions

Taking actions to reach the target segmentso Basic ways to segment a market (figure 2-4)

PAGE 50y Analyze adds who and how the add is targeting and segmenting

o Prezi folder for examples (http://prezi.com/uohbnw6mdqgz/4650-chapter-2/?auth_key=ebb6c718c30f7bfac77433b35d446cfb7921c092)

y Market Coverage Alternativeso Undifferentiated

Involves ignoring segments differences and offering just one product or serviceto the entire market. (EX: Fords black Ford. One Coca-Cola for all the world)

o Differentiated Involves marketing in a number of segments, developing separate marketing

strategies for each.

o Concentrated Is used when the firm selects one segment and attempts to capture a large

share of this market. (Ex: LOreal)

y Positioning understand and justify how a products positionso Fitting the product or service to one or more segments of the broad market in such a

way as to set it apart from competition

o The position of the product, service, or even store is the image that comes to mind andthe attributes consumers perceive as related to it.

o Types of positioning strategies: Attributes and Benefits, Price/Quality, Use/Application,Product Class, Product Users, Competitors, Cultural Symbols

y Repositioningo Occurs because of declining or stagnant sales or because of anticipated opportunities in

other market positions.


5/10

y Brandingo Goals: 1)Build & maintain brand awareness and interest

2) Develop & enhance attitudes toward the company, product, or service

3) Build & foster relationships between the consumer and the brand

o Brand name communicates attributes and meaningo Advertising creates and maintains brand equitywhich can be thought of as an intangible

asset of added and/or the strength of consumer attachment to a company name, brand

name, or trademark.

o Brand equity creates competitive advantage for a company as well as creating highermargins and greater sales.

Chapter 3

y Advertising agencyo An outside firm that specializes in the creation, production, and/or placement of the

communication message and that may provide other services to facilitate the marketingand promotions process.

o Reasons for using an ad agency: Highly skilled specialists, Specialization in a particularindustry, Objective viewpoint of the market, Broad range of experience

y Agency structure systemso Centralized

The advertising manager controls the entire promotions operation, including

budgeting, coordinating creation and production of ads, planning mediaschedules, and monitoring and administering the sales promotions programs for

all the companys products or services.

Pros: better communication, fewer personnel, staff continuity, more topmanagement involvement.

Cons: Hard to understand the overall marketing strategy, longer response time,Impractical for multiple brands, products, divisions


6/10

o Decentralized

Large corporations with multiple divisions and many different products, it is very

difficult to manage all the advertising, promotional, and other functions through

a centralized department. (ex: P&G, Nestle)

Pros: Concentrated managerial attention, Rapid problem and opportunityresponse, increased flexibility.

Cons: Ineffective decision making, internal conflicts,misallocation of funds, lackof authority,internal focus.

y Brand managero Is responsible for the total management of the brand, including planning, budgeting,

sales, profit performance.

y In-house agencyo To reduce costs and maintain control over the agency, some companies have set up

their own agencies internally. An in-house agency is an advertising agency that is set up,

owned, and operated by the advertiser

o More closely tie the marketing function to top managemento Reduce advertising and promotions costso In-house agencies are more stableo Tighter control over agency processeso Pros: cost savings, more control, increased coordination, stability, access to top

management

o Cons: less experience, less objectivity, less access to top creative talent, less flexibilityy Full service Agency

o Full range of marketing communication and promotion services including planning,creating, and producing the advertising; performing research, and selecting media. May

offer non-advertising services such as strategic market planning, sales promotion, direct

marketing, and interactive capabilities, package design, and public relations and

publicity.

y Account executive


7/10

o Is responsible for understanding the advertisers marketing and promotions needs andinterpreting them to agency personnel.

o Coordinates agency efforts in planning, creating, and producing ads.o The link between agency and client

y Creative boutiqueso Are small ads agencies that provide only creative services and have long been an

important part of the advertising industry

o Provide only creative serviceso May subcontract from full-service agencieso Strength is turning out creative work quickly

y Direct marketing agencyo Provide a variety of services including: Database management, Direct Mail, Research,

Media services, Creative and Production capabilities.

y Sales promotion agencyo Develop and administer programs such as: Promotional planning, Creative Research,

Tie-in coordination, Fulfillment, Premium design and manufacturing, Catalogue

production, refunds and rebates, sampling programs, Contest/sweepstakes

management.

y Public relations firmso Develops and establishes programs to manage the organizations: Publicity, image and

affairs with shareholders.

o Analyze the companies relationships and establishes and Strategy development to:Generating publicity, Lobbying, Public affairs, News releases, communication, Research,

Special events, Managing crisis, Coordination with promotional areas

y Interactive agencyo Specialize in the development and strategic use of various interactive marketing tools

such as:Websites, Banner ads, Search engine optimization, Mobile marketing, Social

media campaigns, Digital media

y Media specialisto Are companies that specialize in buying media, especially broadcast (radio and

television)time

o Agencies and clients develop media strategyo Media buying organizations implement strategies, and buy time and space

Chapter 4

y Consumer behavioro The process and activities people engage in when searching for, selecting, purchasing,

using, evaluating, and disposing of products and services

y Decision process (figure 4-1)


8/10

oo Sources ofProblem Recognition: out of stock, dissatisfaction, new needs or wants,

related product purchases, market-induced recognition, new products

y Maslows hierarchy of needs how adds appeal to their markets

oy Culture how it affects consumer behaviory Subculture how it affects consumer behaviory Post-purchase evaluationy Satisfactiony Consumer Learning

o Learning is the process by which consumers acquire consumption-related knowledgeand experience that they apply to future behaviory Shaping

o Is the reinforcement of successive acts that lead to a desired behavior patternChapter 5

y Communication process


9/10

o Source (sender)o Decodingo Receivero Encoding

Verbal Musical Graphic Animation

o Channelo Noise

Anything that can distort or interfere with the reception of a message.o Field of experienceo Feedback

y Personal channelso Word of mouth, personal selling

y Non-personal channelso Print media, broadcast media

y AIDA model (attention, interest, desire, action)y Test to see how an add is doing (figure 5-4)

oy Alternative response (figure 5-5)


10/10

oy FCBPlanning model (figure 5-6)

o

Advertising Exam

Documents

Transcript of Advertising Exam