MKT 3421 Exam 2: Gleiberman, LSU, Fall 2022

advertising plan

how the firms spend money on promotions

describe a few steps of the advertising plan

Strategy: clear and concise articulation of how the plan will achieve its objectives

execution: copy strategy, media plan, integrated brand promotion

evaluation: criteria, methods, consequences

executive summary

the one-page document that a company uses to summarize the full advertising plan

situation analysis

defines the market and the consumer situation

PESTLE definition

allows a company to form an impression of the factors that might impact a new business or industry

PESTLE components

political, environmental, social, technology, legal, economics

Ethnocentrism

the idea that the way we do business in our territory is the best way

Self- Reference Criterion (SRC) + example

subconscious ethnocentrism, you go into a country and do something the way you used to because it's the only way you know how to do it

Vicks Vapo-Rub having to change it's name in German because Vicks sounds like a bad word and no one was buying their products

Historical context

includes corporate culture, past successes for the firm's marketing, previous ad campaigns and results

example: Balenciaga put out an ad campaign that was bad, everyone disagreed with it and they're losing customers

supply-demand equation

not a real equation in our context

market share focus of supply-demand equation

of all the products that are sold in that industry, how many of them come from your company

If you drive demand up too high, more than you can supply, consumers will get upset

supply side issue (gluten free foods)

huge increase of GF foods, companies got in trouble for being "gluten free" but not

YoY

year over year

SWOT

strengths, weaknesses, opportunities, threats

when/why do we use SWOT

See how much your competitors are spending and compare, do your research on your competition

Name one of the 7 objectives possible in an Advertising Plan AND SOMETHING ELSE ABOUT THAT OBJECTIVE

change beliefs and attitudes: get a customer to do something they otherwise wouldn't have done without an ad

lots of medical drug commercials do this and tell you to ask your doctor if it is "right for you"

brand awareness

top of mind: when people are surveyed, if your company is the first one people say

proxy on social media?: engagement metrics

native ads

particular ad that is in your feed, but it looks just like normal content to make it look not like an ad

increasing sales

should we use this as marketers?: controversial because we don't like this effort

what should we use instead?: communication efforts (engagement and awareness) ex) superbowl ads

Measuring Ad Plan Effectiveness Example

household penetration: the percentage of households in a market buying a particular brand in a given year

engagement metrics (branded # retweets)

market share (simple calculation): dividing its total sales or revenues by the industry's total sales over a fiscal period

budgeting

Advertising is an investment, not an expense

starts at the bottom with brand manager --> categories captian/CMO --> asks CEO if we can do this --> CEO decides how to disperse the $$

budgeting methods: percentage of sales

definition: looks at how much you sold last year and a % of that will be what your ad budget is

common %: 2-15%

problems: bad sales = less ad budget, overspending on ads can happen too, sales don't cause advertising so there really isn't a relation, but most companies still do this

share of voice/market

how much money is spent on advertisement in an industry and how much of that is yours

how it is calculated: divide your brand's measures by the total market measures

advertising response function

What is the main point of this?: Associates dollars spent on advertising and sales generated

What is marginal analysis?: how much more sales we get for every additional $ of advertising

objective and task

what is special about this?: Most direct way of budgeting, ties directly into what objective you want to achieve

what is build-up analysis?: All of the costs associated with doing a thing

media spend

social media compared to traditional: While companies are putting more money in social media, it's still a good split so they are both still very important

measured media

definition: Media that is closely measured to determine advertising costs and effectiveness: television, radio, newspapers, magazines, and outdoor media (mass media we are aware of)

example: the amount of billboards or commercials we physically see

heuristic spend rule: a rule-of-thumb problem-solving strategy (the larger the company, the more they spend on media)

ATL

Above the line

used for measured media

BTL

Below the line

CPG placement, PoP display coupons

Media investment

The company works with media vendors to invest in their current and future inventory, taking on the risk, ahead of market demand.

class/medium

vehicle

targeting

select the segment or segments to enter

geotargeting

advertising to someone based on their location

microtargeting

targeting a specific individual based on info gathered

reach and frequency

reach: how many people see your ad in a specific time period (impressions)

frequency: how many times people see your ad in a time period

effective frequency

how many times does a person needs to see the message for it to have an impact

effective reach

how many people are reached with the effective frequency (how many people saw the ad to get the change to happen)

usual number of effective reach and frequency

3-9 (3 most common)

message weight

the total size of the audience for a set of ads or an entire campaign

calculate weight (GRP)

definition: gross rating points -- how much a message is shown effectively

equation: reach x frequency (how many times its shown x how many times people see it)

media schedule: continuous

you advertise a steady pace throughout the year

media schedule: flighting

an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising

media schedule: pulsing

combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods

the forgetting function

Predicting the intervals in which things fade from people's memory

what are the implications on the graph?: when you show something repetitively you will have higher unaided recall than if you show it for a little bit then less/not at all

CPM (cost per thousand)

different in social media ad buys: The average cost for CPM is generally higher because you're paying per 1000 impressions, versus a single click

(Cost of Ad/Total Audience)*1000

digital

Push Marketing: sends out messages

Pull Marketing: gets consumers to the brand

Social listening: keeping track on what people are saying on social media

Dyadic and Triadic relationships: graphical representation of Web 1.0 and Web 2.0 -- dyadic is between the consumer and the brand, triadic is between 2 consumers back and forth and the brand

media buying: programmatic

Relies on 3rd party data

Zenith's Programmatic Marketing Forecasts

72% of all digital ad buying

media buying: in house vs agency of record

in house: making the media yourselves

agency of record: having someone else make your media

media buying: upfronts

Period in the spring where the television networks reveal their fall line-ups and presell advertising on them

75% of prime-time adverts bought this way

social media platform

definition: the places you can put your ads

example: Facebook, Instagram, Twitter

web 3.0

definition: machine learning and AI

examples: Alexa, Google Home

socially embedded media

two way interaction between customers

consumers create information, post comments, UGC, network effects, orgs interact with customers

buzz

general people are talking about this more than they did before

integrative approach in advertising

the idea that you can overlap your integrations

Combine digital, social, or mobile with outdoor, print, public relations, or events

synergy

2 things working together produce more than if the 2 things are working separately; in social media, having display ads, having commercials

measurable metrics

engagement metrics, you can track likes, shares, and comments

PESO

components: paid, earned, shared, owned

paid: social media ads, boosted content, fan acquisition, lead generation, sponsored content, paid publishing

earned: media relations, influencer relations, investor relations, blogger relations

shared: any time you might pay for an ad, but someone sends it to someone else

owned: commercials

pseudo-image

an image made by computer-graphics or otherwise which appears to be a photograph

avatar

computer representation of users

phishing

pretending to be something that you are not, major example is spam emails

self-transformative vs. aspirational brands

Self transformative: self concept, this brand helps me showcase who I am

Aspirational brand: i hope this one day shows who I am, ex) buying luxury items

site stickiness

how long you're stuck on a website, how many pages on the website you go on (how long you stick on the topic)

bounce rate

how many people leave your website after coming to it, expressed as a %

digital overengagement

society, sociological, ex) if you're too engaged on social media it's unhealthy for you, a combination of physical and online shopping

digital advertising

auction style: you tell FB you're willing to spend $5 every time someone clicks on your ad, FB will give priority to the people offering to pay more but still show yours

payment models: CPC (cost per click), PPC (pay per click), CPM (cost per thousand)

ad types: app ads, display ads, interstitial (ads before youtube videos)

organic search

EAT: expertise, authority, trust -- a way that google determines this is a good page to show

pillar pages: a webpage that has organized content about a topic, has links to other pages

organic search definition

the process of listing web page results based on the relevancy of key terms

behavioral targeting

Brands and websites will put cookies on your computer to see what you're doing online

digital footprint

tracks where you've been online and what you post

resistance

people being scared of going online

SMEs

subject matter expert, someone who says they know everything, very hard to verify, ex) fake news

adjacent associations

the advertisement is worried the ad will be put next to something they don't like ex) on websites

advergaming

something true about it: average gamer is 30-35, half of gamers are women

levels of psychological connections: associative (appears), illustrative (a character), demonstrative (the actual game) ex) pepsiman

digital public relations

Companies will create press releases about a brand and then put them in certain media spots, pay a company to "fake" earned media