adv final

Smart Ad Examples

Billboards in video games, Phone alerts, TV on shopping carts

*Advertising is a

business, art form, institution, cultural phenomenon

*3 requirements of Advertising

*1. paid 2. mass media 3. persuade

*Model of mass-mediated comm?

advertisers send a message but each audience member attaches a specific meaning to it

target audience

clearly defined group of people that IBP efforts are directed to

Global advertising

same ad displayed world-wide

international advertising

ads catered to different countries. TIDE (unilever) example.

5 broad target audiences

households, government, professionals, businesses, trade channels

Coop advertising example

TUMI - bag, Shapiro - retailer

top 5 valued brands 2007

coke 65 bil, microsoft, ibm, ge, nokia

brand

name, term, symbol etc that identifies a seller's good

brand loyalty

consumer repeatedly buying the same brand

market segmentation

breaking down large, diverse markets into smaller, manageable ones

3 strategies to cultivate customers

market segmentation (different wants), differentiation (set apart from other brands), positioning (distinct place in consumer's mind)

market segmentation example

bayer aspirin caters to different segments

fundamental purpose of marketing

to generate revenue

primary demand example

japanese culture: 80% of women now wear engagement rings

% of sales spent on adv

walmart - .4%, target 1.9%, gap 3.8%

symbolic value

symbolic meaning & social meaning of brands. ex: ray ban

IMC

integrated marketing communications. ibp \= emphasis on brand not just communication

5 trends affecting ADV & PROMO industry

1. agency consolidation & undoing
2. media proliferation
3. media clutter & frag
4. consumer control
5. web 2.0

What do News Corp & Disney illustrate?

media conglomerates! not good for democracy!

Whats the goal of striving towards a one-to-one future in ADV

reason to stratbecome customers, build and maintain relationships with customers and larger sums of $

largest adv in US?

P&G

Structure of Industry

advertisers --\> advertising agencies --\> external facilitators --\> media orgs --\> audience

3 major advertising categories

business, not-for-profit, government

5 types of ad agencies

full service, creative boutqiues, interactive, in-house, media

Agency Services

account services, account planner, creative services, media

Agency Compensations

fee system, pay for results, commission, markup charge

what's wrong with pay for results?

results are narrowly defined as sales. adv isn't only contributor to sales

External facilitators

consultants, marketing research, production, software firms, experts, etc

5 Broad Categories of Advertising

Print, Support Media, Media Conglomerates, Interactive, Broadcast

Advertising is a paid attempt to...

PERSUADE. this will never change.

__% very annoyed at pop-up ads & spam email vs __% very annoyed at print or tv ads

80% vs 10-15%

Database marketing defense

"good marketing \= effective products"

ADV educates consumers PROS vs CONS

pro: advertising informs
con: advertising is superficial & intrusive

ADV improves standard of living PROS vs CONS

pro: ADV lowers cost of products
con: ADV wastes resources & raises standard only for some

ADV affects happiness PROS vs CONS

pro: adv addresses needs
con: adv creates needs

Maslow's Heirarchy of Needs

Physiological (water), Safety (shelter), Love (affection), Esteem (status, acceptance), Self-Actualization (maximum fulfillment)

Stephen Fox

"advertising reflects what society values"

Versace vs The Body Shop

healthy v unhealthy cultural takeaway. glamorous vs real woman

Andy Warhol

"advertising is the most accessible art"

Warhol's Democracy of Goods

"the rich and poor buy the same things. everyone drinks the same Coke"

ADV has powerful effect on mass media PROS vs CONS

pro: adv fosters diverse & affordable media
con: adv affects & interrupts programming

3 Ethics in Advertising

advertising to children, advertising controversial products, truth in advertising

4 major concerns about child adv

1. promotes superficiality 2. creates child/parent conflict 3. contributes to obesity 4. tv programs turning into commercials

Children's Food & Beverage ADV Initiative

VOLUNTARY commitment by firms to address issue of obesity in children

4 Controversial Products

tobacco, alcohol, gambling, firearms

6 government agencies that regulate advertising

FTC, FCC, FDA, SEC, USPS, ATF

Self-Regulation

NARB review board, BBB and NAD pass complaints on to NARB

What do people in the US say advertising is?

Branded messages on TV channels and on magazines, email inbox offers, products that you see on game shows, billboards and sponsored sports team

2 perspectives of consumer behavior

1. reasonable decision makers 2. active interpreters affected by culture

4 decision making stages

need recognition, information search & evaluation, purchase, postpurchase

internal search

brands consumers are familiar with

external search

brands consumer searches for in stores

evoked set

what comes to consumer's mind when thinking of a product categ

consideration set

what consumers will consider for purchase

evaluative criteria

price, color, warranty, etc.

satisfied vs dissatisfied customers

65% of business comes from present, satisfied customers. 91% of dissatisfied customers will never buy that brand again

cognitive dissonance

"buyer's remorse". companies step in with mail to assure customer they made right choice

4 modes of consumer decision making

extended problem solving, limited problem solving, habit & variety seeking, brand loyalty

Variety Seeking ad example

Thomas bread things

salient beliefs

small number of beliefs that underlie brand attitudes

perceptual defenses

2 obstacles are cognitive consistency (don't want to change habits) & ad clutter

peripheral cues

features in ad other than arguments about brand performance

social being perspective

to understand advertising & consumer behavior one examine the cultural context

advertising

the communications process of using paid media to reach a selected audience with a persuasive message

culture

what people do, total ways of life of a people, social legacy.

Kraft ad identifies with

family values.

intergenerational effect

brands your parents use you are more likely to use

1996-2050 Race Trends

by 2050, whites will only make up 50% of population. hispanics will make up 24%

Discoveries by advertisers

1970s - women. 1980s - black & hispanic. later - asian. now - gays.

McCracken view

adv is a machanism of cultural meaning transfer. J&M shoes examples

Point of Entry marketing

Folger's "Happy Mornings" designed to drive website traffic. $) on media, film hit youtube & resonated with target.

STP

segmenting, targeting, positioning

positioning

process of designing one's product so that it will occupy a distinct and valued place in consumer's mind

positioning strategy

involves selection of key themes or concepts featured when communicating

2 Seventeen ads

reaching out to two different segments of adolescent females (age & gender are same)

5 broad segmentation criteria

usage/commitment, demographics, geographic, psychographics, benefit

VALS

3 orientations, self-expression, achievement, ideals

B2B

major but unknown employment area

Effective Positioning

do what you promise, magic in consistency, make it different (simply)

3 positioning theme options

customer benefit, user (who should use the brand), competitive (reference another brand)

repositinoing

revive an ailing brand or fix lackluster performance

value proposition

functional, emotional, self-expressive benefits delivered by the brand (NIKE DOES ALL 3)

strategic planning triangle

identify and profile target segments, consolidate the value proposition for the brand, select a mix of persuasion tools

crest extreme

tough category to create buzz in. pr used to generate buzz. posters in favorite night spots. crestiq.

New Era for PR

driven by internet savvy consumers in a brand obsessed world. consumers spread the word about brands!

6 primary objectives of PR

promoting goodwill, promoting a product, preparing internal comm, counteracting negative publicity, lobbying, giving advice

6 tools of PR

press release, feature story, company newsletters, interviews, sponsored events, publicity

what advertising isnt

PR, publicity, ediorial or program content, sales promotion, packaging, , direct/database marketing inte

2 Steps to a Reactive PR Strat

PR audit, ID of vulnerabilities

Influencer Marketing

series of eprsonalized marketing techniques to people who can get the word out

P2P Influencer Programs & Example

give influencers something fun to talk about. Pontiac gave away cars to Oprah audience

Buzz & Viral Marketing

Goal: get people to talk about the product. Vespa models example.

P.T. Barnum did what?

Married 3-foot circus actors to generate buzz for his circus in 1863

5 T's in Favorable Word of Mouth Buzz

talkers, topics, tools, taking part, tracking

Corporate ADV

not designed to promote benefits but est. favorable attitude toward company as a whole. ex: Apple

3 Types of Corporate Advertising

corporate image, advocacy (firm's position on issues), cause-related (firm's relation with charity)

Green Marketing example

GE's ecomagination - high profile GM technique.