APR Arens Chapter 1

What are marketing communications

The various efforts and tools companies use to communicate with customers and prospects, including newspaper ads, event sponsorship, publicity, telemarketing, digital ads, and coupons, to mention just a few.

What is advertising?

A paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future.

6 components of advertising:

Type of communication

Directed to target audiences

Paid for by sponsors

Mediated

Persuasive

Identifies its sponsor

What is marketing?

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.

Who is Albert Lasker?

One of the founders of modern advertising, defined advertising as "salesmanship in print, driven by a reason why"

What is the difference between advertising and marketing?

Marketing is about creating value and building exchanges, while advertising is about spreading the message that drives customer interest

What are consumers?

People who buy products and services for their own, or someone else's, personal use.

What are PSA's?

Charitable sponsors that do not have to pay for ads. Eg Red Cross, American Cancer Society, United Way

Referring to communications vehicles paid to present an advertisement to their target audience. Most often used to refer to radio and television networks, stations that have new reporters, and publications that carry news and advertising.

Mediums

What is an example of a medium?

Radio and television ads, social media ads, google ads

Word of mouth advertising

The passing of information, especially product recommendations, in an informal, unpaid, person-to-person manner, rather than by advertising or other forms of traditional marketing.

What is mass media

Print or broadcast media that reach very large audiences.

Difference between good and service

A good is a Tangible product such as suits, soap, and soft drinks. A service is a bundle of benefits that may or may not be physical, that are temporary in nature, and that come from the completion of a task.

Example of mass media?

Radio, television, newspapers, magazines, and billboards.

What are the 4 P's of marketing

Products, pricing, places, promoting

What is the ultimate goal of the marketing process?

Profitably exchange products with customers who need or want them.

What is the ultimate goal of advertising?

To promote, inform, persuade, and remind groups of customers or markets about the need-satisfying value of a firm's products

What is marketing strategy?

The statement of how the company is going to accomplish its marketing objectives.

What is advertising strategy?

States what the advertiser wants to achieve with respect to consumer awareness, attitude, and preference. Advertising strategy describes how to get there.

What is the difference between marketing and advertising strategy?

Marketing strategy is the big-picture roadmap for achieving marketing goals, while advertising strategy is the communication plan that helps move customers toward those goals.

A ___ economy is when goods and services are created and sold by private organizations

Capitalist

Principles of free market economies

Self interest, Complete information, many buyers and sellers, absence of externalities

What is self interest (free market)

People and organizations pursue their own self interests. People want more for less. Companies form to create products that help people get what they value

What is complete information (free market)

The more information buyers and sellers have about what products are available for what price, the more efficient the competition. The outcome is usually lower prices and better products

What are many buyers and sellers? (free market)

Having a wide range of sellers ensures that if one company doesn't meet the needs, another will.

What is the absence of externalities (free market)

The government may use taxation and regulation to compensate for externalities

Benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction and didn't pay for the product.

Externality

7 functions and facts of advertising:

To identify products and differentiate them from others

To communicate information about the product, its features, and its place of sale

To induce consumers to try new products and to suggest reuse

To stimulate the distribution of a product

To increase product use

To build value, brand preference, and loyalty

To lower the overall cost of sales

A marketing function that identifies products and their source and differentiates them from all other products.

Branding

What ads were featured in the Preindustrial age?

Most couldn't read so signs featured symbols to show what was being offered.

Who invented paper and what era

China, preindustrial

Where/ who/ when was the first paper mill invented?

Europe 1275 (preindustrial)

Where and who invented the printing press?

1440s (preindustrial) Johannes Gutenberg in Germany

When did the first ad appear and what was it?

1472, announcing a prayer book for sale. Tacked on the door of a London church

When was the industrial age?

Late 1700s-1945

When did advertising become a career and who created it?

Volney B Palmer in 1841

What was the first ad agency?

NW Ayer and Sons. Created by Frabcis Ayer in 1869 Philadelphia

When was photography introduced?

1839

What era was the radio created?

Industrial

What is unique selling proposition?

Idea by Rosser Reeves. The distinctive benefits that make a product different from any other. The reason marketers believe consumers will buy a product even though it may seem no different from many others just like it.

Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product's utility.

Marketing segmentation

The association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer.

Positioning

What are some famous ads from the positioning era?

Volkswagen- Think Small, Avis- We're No. 2, 7Up- The uncola

What was the post industrial age?

Period of cataclysmic change, starting in about 1980, when people first became truly aware of the sensitivity of the environment in which we live.

Came about during the post industrial age, advertising was used to slow the demand for products. Overtime, became an aggressive way to target competitors and political opponents

Demarketing

A direct inducement offering extra incentives all along the marketing route—from manufacturers through distribution channels to customers—to accelerate the movement of the product from the producer to the consumer. Became popular in the 80s and 90s due to many recessions

Sales promotion