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MKTING 6 (5 Functions of Advertising* (Informing
build awareness
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MKTING 6
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Adv management process
strategy - set obj, formulate budget, create msg, select media & vehicles > strategy implementation > access ad effectiveness
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Agency compensation
- commissions from media 15% (most traditional way)
- reduced commission system less than 15%
- labor-based fee system (most common tdy)
- outcome-based
Elasticity
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price = % change in qty demanded / % change in price
advertising = % change in qty demanded / % change in adv
how to increase profit
- maintain status quo (p&a inelastic)
- build image via adv (a elastic & > p)
- grow vol via price discounting (p elastic & > a)
- increase ad and/or discount prices (both elastic)
Share of voice*
- how much firm spends on ad relative to other brands in the category
Share of market (Advertising strength)
- predicted mkt share based on their ad spending vs total ad by all firms
Competitors share of voice: your share of market (4 grid)
- attack w large SOV premium (lowlow)
- maintain modest spending premium (LH)
- decrease find a defensible niche (HL)
- increase to defend (HH)