ADPR 3100 Test #2

Stages of the product life cycle

Stages of the product life cycle

Pioneering, Competitive, Retentive (steps are not linear)

Pioneering stage of the product life cycle

Introducing an idea, create awareness, make consumers feel like they need the item

Competitive stage of the product life cycle

Acceptance of the product will attract competition, establish superiority over other brands, increase sales and market shares

Retentive stage of the product life cycle

products are reaching maturity and wide-scale acceptance, attract new customers and keep existing, maintain market share and consumer loyalty

Objective

The goal of the campaign and what you want to achieve

Strategy

The plan for reaching the goal and focuses on the overall messaging

Marketing objective

Focuses on what people do and their buying behavior

Advertising objective

Focuses on communicating and assists the marketing objective

Feature

A characteristic of a product

Benefit

a good thing made possible by the feature. we can all have different benefits based on the same feature

1st part of strategic planning

Brand equity audit analysis: what/where is our brand now

2nd part of strategic planning

Strategic options and rec.: how do we change our brand to achieve our goals

3rd part of strategic planning

Brand equity research: what specific aspects of the brand do we want to change

4th part of strategic planning

Creative brief: what is our resulting plan of action

Strengths of OOH advertising

low cost, high frequency, local, strong creative, support other media, provides missing visual for radio campaigns, better graphics than newspaper, high frequency than magazine

Weaknesses of OOH advertising

exposure is voluntary, brief, viewers normally preoccupied, few premium sites, visual pollution, weather and geographical considerations

Daily effective circulation (DEC)

the average number of people in cars (or other vehicles) passing and being potentially exposed to an ad display

OOH GRP calculation

(total DEC for allotment/total market population) x 100

*total DEC for allotment = DEC for each ad x number of ads

OOH GI calculation

GRPs x DEC x (weekly (7), monthly (30), etc)

OOH $ per 1,000 GI calculation

total cost of allotment/(GIs in allotment/1,000)

*total cost of allotment = number of ads x how much they cost

$ per GRP calculation (can be used for all)

total cost of ____ /GRPs

*blank space can be total cost of allotment, print space, ads, bought, TV buys)

Strengths of Newspapers

High reach with older, upscale, opinion leaders, which can be a desirable target market; immediacy aka. next day publication; credibility

Weaknesses of Newspapers

Clutter, declining readership, increasing cost of advertising, challenges from online, nobody wants to pay for news anymore

Categories of newspapers

Classified and Display (all non classified advertising)

Display forms

Local (retail) businesses: advertising by a merchant who sells directly to the consumer

National advertisers: advertiser of a trademarked product or service, can be sold through different outlets

Co-op: partnership between local retailer and national brand

Flat rate buying type

no discounts, uniform charge regardless of space bought

Open rate buying type

discount structure, also refers to the highest rate against which all discounts are applied

The two types of open rate buying

Bulk: advertiser is charged less as more space is purchased

Frequency: advertiser is charged less as more insertions are purchased

Strengths of Magazines

Segmenting, strong visuals, long life

Weaknesses of Magazines

Cost, clutter, long lead time, difficult to reach large audience segments

Newspaper reach calculation

(total circulation/target market population) x 100

Newspaper and magazine CPM (cost per thousand) calculation

(cost of space x 1,000)/circulation

Newspaper and Magazine GRP calculation

reach x number of ads bought

Magazine weighted CPM calculation

(cost of space x 1,000)/circulation in your target market

Strengths of TV

High reach (99% of all households), creative flexibility, delivers to large national markets, can deliver to national niche markets

Weaknesses of TV

Clutter, audiences are smaller and fragmented, viewers avoidance, cost, brief message, media multitasking, less people are using cable

Categories of TV

Network: National advertisers buy time from national networks

Cable: national advertisers buy time from cable providers and then place the ad on a specific show on a specific channel

*within these, there are Spot networking/cable, which just means it is limited to one specific area (ex. ATL, NYC, etc)

Rating

Has to do with size, aka how many people are watching

Share

has to do with popularity, aka how many people are watching this show at this time

TV rating calculation

(program’s audience/total TV households) x 100

*TV household: a residence with at least one TV in it

TV share calculation

(program’s audience/total households using TV) x 100

*Household using TV (HUT): houses using a tv at that period of time

TV GRPs calculation

rating x number of spots bought

TV GI calculation

program’s audience x number of spots bought

TV $ per GI

total cost of TV buys/GI

Digital and Internet advertising spending

Outpaced TV for the first time in 2017, only area to see consistent and substantial growth

In-game advertising

inclusion of products or brands within an existing digital game for entertainment purposes

Social network game

Placement of brands or products in digital games that are played via major social network sites

Advergames

games specifically designed and created to promote a brand, product, or service

Prominence in digital/internet advetising

depends on location, frequency, and size of the advertising; you want something not too subtle, but not too invasive

Congruity in digital/internet advertising

game environment and the brand/advertising should match up; context is important