Please enable JavaScript.
Coggle requires JavaScript to display documents.
MG MET 435: Advertising (exam I) (Integrated Marketing Communications -…
MG MET 435: Advertising (exam I)
Marketing
- activities, institutions, processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society
value
- customer's perception of the benefits vs. the costs of acquiring/consuming
The Marketing Mix
- use of 4 P's to create effective marketing program
4 P's: product, price, place (distribution), promotion
central concept of exchange
SMART objectives: specific, measurable, achievable, realistic, timed
Integrated Marketing Communications
- implementation of variety of com tools into marketing programs (coordination of promotional elements and marketing activities)
contemporary perspective
OBJECTIVE: generate short term financial returns+ long term brand/shareholder value
ongoing strategic business process, adaptive to changing environment
CRITICISMS: inside-out-marketing approach, simplifies/molds promotional mix tools together
builds brand identity and sustainability (eg. Montblanc watch ad w/Jackman)
IMPORTANCE: effective+efficient programs, strategic, avoids duplication, adaptive, avoids RAM (random acts of marketing)
The Promotional Mix
=> tools for IMC, used to accomplish org's com objectives
advertising
- paid form of nonpersonal com about org/product/service/idea by identified sponser
most effective way of com to masses, builds brand equity (added value resulting from favorable image, impressions of differentiation, customer attachment to brand, etc.) by informing and influencing consumers
advertising to consumer markets
retail/local
primary-demand advertising generates demand for general product/industry
selective-demand advertising - creates demand for specific company's brands
national
advertising to business/professional markets
professional - targets professionals, get them to use tools being advertised
trade - targets marketing channel members => stock, promote, resell manufacturer's branded products
business-to-business - targets those who influence company purchases of industrial goods/services
direct marketing
- communicating directly w/consumers to generate response/transaction
direct response advertising - consumer encouraged to purchase directly from manufacturer
omnichannel retailing - companies sell products thru multiple distribution channels
digital/internet marketing
interactive media, social media, mobile (often tailored to consumer's location or consumption situation) marketing
sales promotion
- marketing activities that provide extra value/incentive to sales force, distributor, consumers
trade oriented targets marketing intermediaries (price deals, trade shows, sales contests, etc.)
consumer oriented (coupons, sweepstakes, rebates, sampling, etc.) can stimulate short term sales
publicity/PR
publicity
- nonpersonal com not directly paid for or run under identified sponsor
PR - strategic com process that builds mutually beneficial relationships between orgs and their publics
personal selling
- seller tries to convince consumers to purchase, direct contact
Audience Contact / Touch Points
- every experience customer has to see/hear/experience company or brand => perspective that recognizes the impact of customer interactions+experiences w/company on opinions and consumer behavior
amt of control increases, relative impact decreases
intrinsic
- interactions w/company/brand when buying/using (discussions w/sales personnel, customer service reps, etc.)
unexpected
- unintended references/info customer receives about company/brand, out of control of company/brand (word of mouth, reviews, etc.)
customer-initiated
- customer/prospect contacts company
company-created
(ads, social media, press/news releases, websites, etc.)
paid media
- channels marketer pays to leverage
owned media
- channels of marketing com that company controls
earned media
- exposure that company/brand didn't pay for, generated by outside entities
Marketing and Promotions Marketing Model
- role of promotions in company's marketing program
marketing strategy/analysis
target marketing process
marketing planning and program development
promotional decisions
promotional push strategy - persuade trade to stock, merchandise, and promote manufacturer's products -> push thru distribution channels
resellers, promotion to final buyer
target market
- ultimate consumer
#
(which then purchase resellers)
digital/interactive, promotion to trade
promotional pull strategy - spend $ on advertising and sales promotion efforts to reach ultimate consumer
goal: create demand, get customers to buy from retailers
customers -> retailers -> wholesalers -> manufacturer (product/service pulled thru distribution channels)
pricing decisions
price variable (what customer has to exchange for product
product decisions
product symbolism
branding, packaging
channel-of-distribution decisions
marketing channels - interdependent orgs that make product/service available for use
direct vs. indirect channels
market segmentation
geographic, demographic, psychographic (lifestyle/cycle, personality), behavioristic (usage, loyalties, buying responses), benefit
behavioristic segmentation: 80-20 rule - 20% of buyers account for 80% of sales, recognizes that customers may buy disproportionate amts of many brands/products
benefit segmentation - grouping consumers based on attributes sought in product
identify markets
select target market
--> determine how many segments to enter and which have most potential
entering segments: market coverage alternatives
undifferentiated marketing
- ignores segments and markets one product/service to all
differentiated marketing
- marketing in different segments
concentrated marketing
- company focuses on one segment and attempts to capture large share of market
position
thru marketing strategies (considered by advertisers to be most important factor in est. brand in market) - image of brand/product compared to competition (consumer or competition approach)
via product attributes/qualities
salient attributes - important to consumers, basis for purchase decisions
via price/quality
via use/application
via product class
via product user
via competitor
via cultural symbols
competitive analysis
#
(your spike)
opportunity analysis
#
target marketing
#
Communication
- passing of INFO, exchange of IDEAS, establishing a UNITY of thought between sender and receiver
success depends on msg, audience interpretation, and environment msg is being received in
Model of Communication
Source
Encoding
- putting thought/info/ideas into symbolic form
Channel Msg
- method by which msg travels
Decoding
- process of transforming sender's msg back into thought
Receiver
audience aggregation
mass markets and audiences
market segments
niche markets
indiv and group audiences
nonpersonal - no direct/interpresonal contact between sender and receiver (aka mass media/communications)
print
broadcast media
personal - direct com thru interpersonal (face-to-face) or other methods
WOM
buzz marketing (more organized than WOM)
viral marketing - propagating marketing-relevant msgs thru help of consumers
success affected by...
indiv sender/receiver characteristics - demographics, personality traits, motivations
social network characteristics
msg characteristics - content/creative design of msg
seeding - identifying/choosing initial consumer group to diffuse msg
Social Consumer Decision Journey
consumer considers purchase
consumer evals brand
consumer buys product
consumer interacts w brand after buying product
consumer advocates for brand
consumer bonds
3 critical intermediate effects between advertising and purchase: cognition, affect, experience (effects of ads should be evaluated using these dimensions)
Cognitive Response Approach
cognitive responses - thoughts that occur to individual while reading/hearing/viewing com
counterarguments - recipient thoughts that oppose msg
support arguments - contains info/meaning source hopes to convey
Persuasion Matrix
- tool for marketers to see how source, msg, and channel factors interact w/consumer's response process
msg factors
order of presentation: strongest argument should never be placed in middle of msg
primacy (placed at beginning) vs. recency (placed at end) effect
depends on audience receptivity to msg, msg length, medium used to com msg
conclusion drawing -> how much should be left to the customer's own conclusion?
explicit conclusions more effective
depends on audience, type of issue/topic, nature of situation
one-sided vs. two-sided msgs (more educated)
two-sided: refutational appeal - communicator reveals both sides and refutes one of them
msg appeals
comparative advertising - directly or indirectly naming competitors in ad and comparing attributes
fear appeals
Protection Motivation Model - ads should give target audience info about severity of threat, prob of occurrence, effectiveness of coping response, and ease with which response can be implemented
effective when recipient is self-confident/prefers to cope w dangers, nonuser of product
humor appeals (effective but may
wearout
faster than serious appeals)
channel factors
info processing via mass media
externally paced - transmission rate controlled by medium
self-paced - consumer processes info at their own pace
context/environment
qualitative media effect - influence media has on msg
clutter - amt. of advertising in medium (includes nonprogram material appearing in broadcast environment)
personal v. nonpersonal channels (personal more effective)
Creative Strategy
- determines what ad communicates
Creative Strategy: Implementation and Eval
Implementation
advertising appeal - approach used to attract customer's attention + influence attitude toward product/service
turned into ad msg via
creative execution style
creative tactics - how msg will be executed
for print ads: visual elements, layout
for tv
video
audio: voiceover, needledrop (prefabricated, conventional music), jingles
challenge: every marketing situation is different, campaigns/ads require different creative approaches
straight-sell/factual msg
scientific/technical evidence
demonstration
comparison
testimonial
slice of life (problem/conflict of person's daily life shown -> product/service resolves conflict
animation
personality symbol
imagery
usage imagery (shows consumer using product)
user imagery (association of good looking model with product)
dramatization (short story w product/service as star)
humor
informational/rational appeals - focuses on consumer's practical need for service/product
feature appeal
favorable price appeal
product/service popularity appeals
competitive advantage appeal
news appeal
emotional appeals (soc and psych needs)
transformational ads
image ads -> gets consumer to feel certain way when using product/service
Planning the Creative Strategy
ad creativity
- ability to fresh/unique/appropriate ideas that can be used as solutions to com problems
perspectives
management types: ads = promotional tools, ways to make good impressions in market, more interested in conservative commercials
creative types: com vehicle for promoting personal aesthetic viewpoints and career objectives, look to maximize msg
determinants
relevance - degree to which ad elements are valuable to customer
ad-to-consumer - ad contains execution elements meaningful to consumer
brand-to-consumer - advertised brand is of personal interest to consumers
divergence - extent to which ad contains elements that are novel/different/unusual
flexibility - different ideas/perspectives in ad
elaboration
synthesis - combination of normally unrelated objects/ideas
artistic value
originality
D’Arcy Masius Benton & Bowles Ad Guidelines
does the ad position the product simply/clearly?
does ad benefit the brand?
does the ad contain a power idea?
does the ad design in brand personality?
is ad unexpected?
is ad single-minded?
does ad reward prospect?
is ad visually arresting?
does ad exhibit craftsmanship?
creative vs. hard-sell advertising
suits/rationalists - ad must sell product/service, more info/selling points better
poets - go beyond product advertising -> build bond between consumer and brand
Creative Process
Young's Model of the Creative Process
digestion
- analyze info
incubation
- let subconscious do the work
illumination
- birth of an idea
reality/verification
- study and shape idea to be practically useful
immersion
- gather raw material/info thru background research, immerse yourself in the problem
Wallas's Model of the Creative Process (much earlier than Young)
prep
- gather background info
incubation
- let ideas develop
illumination
- find solution
verification
- refine and analyze idea
Creative Strategy Development
ad campaigns
campaign theme - central msg
slogan - expresses company/brand's positioning and msg
creative brief
- basic elements of creative strategy, prepared by account rep or manager
basic problem/issue
ad/com objectives
target audience
selling idea/key benefits to com
creative strategy statement (campaign theme, appeal, execution technique)
supporting info and reqs
schedule (deadlines)
Marketing Info Flow from Marketing Manager to Creative Staff
knowledge of vital marketing info
client gatekeepers (brand manager)
#
client decides how much info they should share w/company
agency gatekeepers (acct manager)
#
agency gatekeeper's decides how much client info to share w/creative staff
creative staff creates art
potential failures: client or client gatekeeper lacks info, client decides not to share all relevant info, agency gatekeepers don't share all relevant info w/creative staff, internal agency com failures
major selling idea: broad, most meaningful appeal
position: est product/service in consumer's mind
find inherent drama: the product characteristic that makes the consumer want it
create brand image: image advertising
use unique selling proposition: buy and get the benefits, has to be unique to the company, STRONG/PERSUASIVE
big ideas need to be
adaptable
and
connectable
Media Planning
- decisions involved in delivering promotional msg to consumer
media objectives
media strategies
medium = general category of available delivery systems
media vehicle = specific carrier
reach - # of ppl exposed to mv at least once in given time period
coverage - potential audience that might receive msg
frequency - # of times receiver is exposed to mv in given time period
market analysis
est media objectives
market strategy development+implementation
eval and follow-up
target market: balance between extending media coverage and minimizing waste coverage
scheduling - time promotional efforts so that they coincide w highest potential buying times
continuity - continuous pattern of advertising (eg. every day/week/month)
flighting - intermittent periods of advertising and nonadvertising
pulsing - continuity maintained, promotional efforts increased at times
reach vs. frequency
reach (exposure to ad once) vs. unduplicated reach (exposure to ad once thru one out of two channels) vs. duplicated reach (exposure to ad via both channels)
IMC Key Players
advertisers and clients: have need for marketing, provide ad and promotion funds, develop marketing program
advertising agency: create/produce/place com msg, may facilitate IMC process
marketing services
account planners - gather info relevant to client's product or service
media dept - analyzes, selects, contracts for space/time in media
research dept - fathers, analyzes, and interprets useful info
creative services
- responsible for creation and execution of ads
copywriters - conceive ideas for ads and write headlines/subheads/body copy
art dept - visual
traffic dept - coordinates all production phases
creative boutiques - small ad agencies that only provide creative services
Consumer Behavior
Consumer Decision-Making Process
problem recognition consumer perceives need, wants to solve problem
info search
alt eval
purchase decision
postpurchase eval
satisfaction - consumer's expectations are met/exceeded
dissatisfaction - product performance below expectations
cognitive dissonance - psychological tension after difficult purchase choice
purchase intention - predisposition to buy brand by matching purchase motives w attributes of brands considered
brand loyalty
eg. out of stock, dissatisfaction, new interests
Maslow's Hierarchy of Needs: physiological, safety, social, esteem, self-actualization
Promotional Budget
formulated when new product is introduced OR factors necessitate a change to maintain competitiveness
est using economic theory, marginal analysis, and contribution margin
contribution margin - difference between total revenue by brand and total variable costs
marginal analysis - increase ad and promotional expenditures --> sales and gross margin increases (which then lvl off)
weaknesses: assumes sales are direct measure of ad and promotion efforts and are determined solely by advertising and promotion
top-down vs. bottom-up budgeting
top-down budgeting - top management sets spending limit: affordable, arbitrary allocation, %-of-sales method (promotions budget based on product sales, often compared/matched to competition aka competitive parity), ROI budgeting
competitive parity -> clipping service - company clips competitor's ads from local print media, allowing company to work backwards to determine costs of ads placed
bottom-up budgeting - total promotion budget approved by top management
allocating the budget
economies of scale in advertising - set of advantages that allows firms to spend less on advertising and realize better return
better ad rates
declining avg costs of production
ability to advertise multiple products jointly
more favorable time/space positions
cooperation of middle people
favorable publicity
market share
organizational characteristics - factors that influence advertising and promotion budgets
organizational structure
power and politics
use of expert opinions
decision maker's characteristics
approval and negotiation channels
pressure on senior managers to arrive at optimal budget
Support Media
- use of nontraditional channels to deliver com, promote products/services; reinforces primary msgs and reaches target audiences that primary msgs may no effectively reach
traditional support media
environmental advertising - ad formats found outside of home
place-based environ ad
aerial ads
not expensive and reaches specific target markets, eg.
banners, skywriting, blimps
mobile billboards
devices carry ads, costs depend on area and mobile board company's fees
digital environ ad
: video ad networks, digital billboards, ambient advertising
in-store media
- reach shoppers at place where they buy
in-store ads, aisle displays, store leaflets, shopping cart signage, in-store TV
transit advertising
- targets people who are exposed to commercial transportation facilities
pros: exposure, frequency, cost
cons: reach, audience mood
outside posters (plastered on vehicles), inside cards (placed above seats/luggage areas), station/platform/terminal posters
pros: wide coverage of local markets, frequency, geographic flexibility, creative, awareness, efficient/effective, timeliness
cons: waste coverage, limited msg capabilities, wearout, cost
ads in movie theaters
pros: exposure, emotional attachment, cost, attention, clutter, proximity, segmentation, quality, integration
cons: irritation, cost
promotional products marketing - promotional medium/method that uses promotional products
eg. ad specialties, premiums, business gifts, awards, prizes, commemoratives
specialty advertising - employs imprinted/useful/decorative products for advertising, sales promotion, and motivational com (free distribution, no ongoing measurement sys)
pros: selective, flexible, frequency, cost, goodwill, high recall, supplements other media
cons: image, saturation, lead time, reach
directional medium - ads don't create awareness/demand for products/services but provide the location (eg. Yellow Pages)
nontraditional support media
branded entertainment - blends marketing and entertainment thru TV/film/music/tech
goal: use entertainment media to gain consumers' attention and exposure to products/brands
product placements - advertising within another program
product integration - placement integrated throughout program content/script
advertainment - creation of audio-visual content to entertain users while advertising products (eg. advergames)
content sponsorship
pros: exposure, frequency, support for other media, source association, cost, recall, bypassing regulations, acceptance+targeting
cons: high absolute cost, time of exposure, limited appeal, lack of control, public reaction, competition, negative placements, clutter
sender's field of experience>>>>>>>>>>
<<<<<<<<<<<<<receiver's field of experience
<<<<<<<<<<<<<<< noise - unplanned distortion/influence (multiple factors including lack of overlap between sender/receiver's fields of experience >>>>>>>>>>>>>>>>
client-agency com
#
internal agency com
#