Advertising Exam #2

marketing

the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers

Larger marketing context of advertising

Advertisers must understand the relationship between the product and the marketplace; this means a company must be able to locate perspective customers, understand their needs, wants and desires, and communicate that information in a powerful, clear, compelling way

Key drivers of marketing decision

1. Establishing a target market(s)

2. Classifying your product

3. Setting your pricing

4. Determining placement (distribution) approach

5. Choosing types of promotion

market segmentation

Marketers select specific markets that offer the greatest potential

Key steps to creating segments to target

identifying groups with shared needs and characteristics and combining the groups into larger larger segments through a marketing mix

Types of markets

Consumer and business

Consumer markets

Target of most advertising; advertising to individual consumers

Consumers

people who buy the product for their own or someone else’s personal use

Consumer segmentation

Consumers are segmented by:

1. Demographic

2. Geographic

3. Psychographic

4. Behavioristic

Demographic

Based on a population’s statistical characteristics with quantifiable factors

Ex. Gender, age, ethnicity, occupation, income, etc.

Geographic

Based on geographic regions with shared characteristics: culture, traditions, lifestyles

Ex. Country, region, neighborhood

Psychographic

Defining consumer markets based on psychological variables (psychographics) including values, attitudes, personality, lifestyle and activities

Ex. Runners, vegans, values good quality food and fabrics

Behavioristic

Grouping of consumers by their purchase behavior- how they buy and use products and brands

Ex. Sole users, discount user, aware nontriers

Sole users

Most brand loyal and require the least amount of advertising and promotion

Semisole users

Typically use Brand A but have an alternative selection if it is not available or if the alternative is promoted with a discount

Discount users

Semisole users of competing brand B; they won’t buy Brand A at full price but perceive it well enough to buy it at a discount

Aware nontriers

use competitive products in the category but haven’t taken a liking to Brand A but aware

Trial/rejectors

Tried Brand A because of its advertising message but didn’t like the product

Repertoire users

Perceive two or more brands to have superior attributes and will buy at full price; these are brand switchers; therefore they are the primary target for brand advertisers

Behavioristic Considerations

Usage rate: defining consumers as light, medium or heavy users of a product

Purchase occasion: segmenting markets on the basis of whe consumers buy/use good or service

Benefits sought: segmenting consumers based on the benefits being sought such as high quality, low price, symbolism

Business markets

organizations that buy natural resources, component products, and services that they resell, use to conduct their business, or use to manufacture another product

B2B Marketing

Marketing directed at people who buy good and services for resale, for use in a business or organization or for manufacturing other products

B2C Marketing

Marketing directed at consumers who buy goods and services

Product classification

Consumer need and product utillity: determining what role the product plays

Utility

product’s ability to satisfy both functional needs and/or psychological wants

Five types of functional utility

1. Form: provides a tangible good

2. Task: performs a task

3. Possession: Available for purchase

4. Time: Available when wanted

5. Place: Available where wanted

Psychological utility

Offers symbolic or psychological desire satisfaction, such as status or makes the consumer feel a certain way like confident

Product life cycle

Progressive stages in the life of a product that affect the way a product is marketed and advertised

Introduction stage

initial phase of the product life cycle when a new product is introduced, costs are highest, and profits are lowest

Growth stage

period in the product life cycle marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases

Maturity stage

point in product life cycle when the market becomes saturated with products, the number of new customers has dwindled, and competition is most intense

Decline stage

stage in the product life cycle when sales begin to decline due to obsolescence, new technology, or changing consumer tastes

product position

ranked in the way consumer’s mind by the benefits it offers

Brand

core feeling about a product

Price

the amount charged for a good or service, influences consumer perceptions of a brand

Key factors influencing price

Market demand (law of supply and demand)

Production and distribution costs

Competition

Corporate objectives (how much profit they want)

Psychological pricing

using prices as a means to influence customer behavior or perceptions (higher prices=higher quality?)

Place

The place or distribution element of the ad itself; its important for marketers to understand that the method of distribution must be consistent with the brand’s image

Direct distribution

Sell directly to consumer from a manufacturer; the advertising burden is entirely on the manufacturer without any assistance from other members

Indirect distribution

A network of resellers and retailers that operate between the producer and user; most companies market their product this way

Intensive distribution

Distribution strategy based on making the product available to consumers at every possible location

Selective distribution

Distribution method limits the number of outlets or creating demand

Exclusive distribution

Exclusive right to one wholesaler/retailer in one geographic region

Promotion

All marketing-related communications between the seller and buyer

Marketing mix

The written document that details all of the various elements of the marketing decision

Key components of the marketing plan

Situation analysis

Marketing objectives

Marketing strategy

Marketing tactics

Situational analysis

Factual statement of the organizations current situation and how it got there, including a SWOT, the company, the product, and the competition

Marketing objectives

what marketing is intending to achieve, could be corporate objectives, brand objectives, or even need-satisfying objectives

Marketing strategy

How the marketing will achieve its marketing objectives

Marketing tatics

The specific actions that will be taken to achieve its objectives

SWOT Analysis

Strengths, weaknesses, opportunities, and threats

SWOT: Strengths

Internal; Positive characteristics or facts about the brand/product/company itself

SWOT: Weaknesses

Internal; Negative characteristics or facts about the brand/product/company itself

SWOT: Opportunity

External; Societal/culture/business trends that provide growth and great possibility for the brand

SWOT:Threat

External; Competitive pressures, societal/culture changes, business realities that my hinder growth and negatively affect brand

Advertising plan

With advertising research as a basis, a full ad plan is created that includes these main parts: advertising strategy which is comprised of two drivers: creative strategy (which guides creative ideas) and media strategy (which guides media decisions where to place/put creative)

Advertising research

Comprised of creative and media strategy; companies use advertising strategy research to gain understanding and key insights, and inform on the brand, the target audience, the message, the creative, and the media

Steps in advertising research

1. Analyze the situation/define the problem

2. Conducting secondary research (both primary and secondary data)

3. Establishing research objectives

4. Conducting primary research (Both qualitative and quantitative)

5. Interpret and report findings

Primary data:

Customized information that often comes from the company/client itself

Secondary data

information previously gathered and published, by another firm or organization

Qualitative research

Uses in-depth studies of small, non-random samples to explore behavior, perceptions, needs and motivations of a target audience; provides a deeper impression of the market

Ex. in-depth interviews, focus groups, etc.

Quantitative research

Larger, representative samples and surveys to quantify hypotheses and measure specific market variables; provides a full breath of data

Ex. Surveys, observations, experiments

Consumer behavior

The mental/emotional processes and the physical activities of people that purchase/use goods and services to satisfy particular needs and wants

Consumer influences

Interpersonal influence: family, society, and culture

Non-personal influence: time, place, and environment

Personal process: perception process, motivation process, learning and persuasion process

Stimulus: something we perceive through our senses

Screens: perceptual or physiological screens

Perceptual Screens

subconscious filters that shield us from unwanted messages before any data can be perceived; stimuli must penetrate a set of perceptual screens

Physiological screens

Comprise the five senses, detect incoming data, and measure the dimension and intensity of the physical stimuli

Cognition

point of awareness and comprehension of stimulus

mental files

Long-term memory storage that is ranked in order of importance, quality, features, etc.

Motivation

Refers to the underlying forces (or motives) that foster actions, which stem from the conscious or unconscious goal of satisfying our needs and wants

Needs

basic, often-instinctive, human forces that motivate a person to do something

Wants

“needs” we learn during our lifetime

Creative brief

Made to inform creatives on what their ideas must do to be successful for the brand, inspire creative to create amazing ideas that both resonate and are relevant the audience, and hold both agency and clients accountable on the focus of creative ideas

Creative brief key components

Challenge

Objectives

Target Audience

Key Message

Reasons to believe

Tone/feel

Creative brief: Challenge

One key challenge or opportunity that advertising can solve; it briefly sets up context, the stakes and the mission for advertising

Advertising objectives pyramid

Objectives Pyramid: Awareness

To acquaint people with the company, product, service, and/or brand

Objective pyramid: Comprehension

To communicate enough information so that some percentage of the aware group recognizes the product’s purpose, image or position, and perhaps some of its features

Objectives pyramid: Conviction

To persuade a certain number of people to believe in the product’s value

Objectives Pyramid: Desire

Creating a desire for the product by emphasizing its value and how it can fulfill a need

Objectives pyramid: Action

request additional information, visit a store or buy it

Creative Brief: Target audience

A clear and full picture of who the advertising is trying to speak to- using the various ways to look at and define an audience; a good target audience is robust, diverse, and paints a clear picture of who you are talking to

Creative brief: key message

A singular message you want to convey to your target audience- the one thing you want to say about the brand product/service (often the main benefit- whether functional or image); a good key message is singular, clear, focuses on a benefit of the brand

Creative Brief: Reasons to believe

Support points that communicate why your target audience should believe the main message about the product/brand; points about the product/brand itself; a good reason to believe is brand/product focused, it truly ties to the key message, focuses on 2-3 points most important points

Creative brief: Tone

How the ad should feel and often driven by the personality of the brand itself- the brand voice; a good tone uses emotional words, makes it clear how work should feel, no conflicting words

Role of creativity in advertising

1. Creativity helps advertising inform

2. Creativity helps advertising persuade

3. Creativity helps advertising remind

4. Creativity puts the boom in advertising

Fact- based vs. value-based thinking

Fact-based: linear thinkers, preferring facts/figures over soft concepts; they use creative thinking but in a more logical and analytical way

Value-based: make decisions on intuition, morals, and values; they tended to be more imaginative

Creative

Come up with ideas for advertising and oversee the execution of the creative idea to its final form; responsible for developing imaginative, smart ideas that follow the strategy and make effective advertising

Creative team

Copywriters, art directors, and creative directors

Copywriters

develop the verbal message- the copy (words) within the advertising

Art directors

Responsible for the visual aspect of the message that determines the look and feel of the ad

Creative directors

supervise the copywriters and art directors

Creatives

the people in all specialities who work in the creative department as a group

Creating great advertising includes two dimensions

Audience resonance and strategies relevance

Audience resonance

A great ad echos through society

Relevance

Measures how well the message strategy relates to the audience’s needs and wants

Creative journey roles

Explorer, artist, judge, and warrior

Explorer

Creatives examine the information they have, and work with their strategic planners

Artist

Creatives develop the big idea and implement the big idea

Judge

Creatives evaluate the practicality of their big ideas and decide whether to implement, modify, or discard them

Warrior

Creatives fight for their ideas and sell their idea to clients