ADVERTISING TEST 1

IMC

integrated marketing communications. strategic planning coordinating and integrating messages for target audience. Conviction desire and action

Why practice IMC

consumer centric perspective, important to understand and communicate with consumers

Advertising

a type of marketing communication that is nonpersonal communication paid for by an identified sponsor uses the mass media.

Advertising communication process

includes sources, message and receivers

Communication source, sponsor

company advertising, legally responsible

Communication source, author

commissioned to create advertising message

Communication source, persona

within text, spokesperson that lends voice/tone to the ad, only exists in the ad

Communication message, autobiographical messages

“i” tell a story to “you” about personal experience

Communication message, narrative message

third person persona tells story to imaginary audience

Communication message, drama messages

characters act out events and audience invisible observer

Communications receiver, implied consumers

within text audience addressed by ads persona not real “ideal” consumer who accept ad uncritically

Communications receiver, sponsorial consumers

gatekeepers, decide if ad runs or not. Must persuade sponsors before consumers

Communications receiver, actual consumers

real world people who make up target audience. Dont behave like implied or sponsorial so their interpretation is important

Relationship marketing

marketing with aim to develop and maintain long term relationship with consumers, distributors, suppliers

3 things to accomplish with relationship marketing

(1) identify satisfy retain and maximize value of profitable customer (2) manage contact between customer and company to ensure effectiveness (3) get customer data to create detailed view of customers

Importance of relationship marketing

cost of lost customers, cost of new customers, value of loyal customers

Lifetime customer value

(avg value of sale) x (# of repeat transactions) x (avg retention time for typical customer)

Basic transactional relationship

sale with no follow-up (e.g., McDonald's)

Reactive relationship

sells and encourages to call if any problems (e.g., Men's Warehouse)

Accountable relationship

salesperson calls shortly after sale to check for satisfaction improvements (ex car dealers)

Proactive relationships

calls from time to time about improved product use or new product (ex verizon)

Partnership relationship

working continuously to find ways to deliver better value (ex financial planner)

IMC developed from trends

high media cost, splintering consumer markets, mass advertising skepticism

IMC tactics

less emphasis on advertising, more focus on migrotargeting and tailored messages, reliance on consumer data, changed expectations for mkt communication suppliers

Sources of brand messages

planned (say), product and service (do), unplanned (confirm)

Two types of tarket markets

consumer and industrial/business markets

Trade advertising

aimed at middle men resellers (wholesale retail)

Professional advertising

aimed at people who are under professional standards or code of ethics (doctors, lawyers, teachers etc)

Agricultural advertising

promote for agriculture

Price advertising

ad claims ro be equal in quality for better price

Image advertising

creates perception/personality, rarely mentions price (ex Apple)

Sale advertising

call attention to drop in price, increase sales and traffic

Product advertising

promote goods and services, stimulates short term awareness

Nonproduct advertising

sell ideas (about company or brand)

Noncommercial advertising

by govs nonprofits for donations volunteer change consumer behavior

Awareness advertising

create image/familiarity with a product so they pick it

action/ direct response advertising

asks for immediare direct response

Sales promotion

offers incentives to get people to act right away

Public relations

managing relationships and communications (low cost)

Collateral materials

nonmedia advertising materials (ex flyers brochures catalogs posters) cheap or expensive

Global advertising

consistent message across globe (ex. Coca cola)

International advertising

different message across the world

Preindustrial age

paper mill and printing press important in communication and first instances of advertising

Industrial age

advertising agency didnt exist until this point, industry meeting consumer needs = saturating commodity markets

N.W. Ayer Sons

first agency to charge commission “net cost of space”

Lasker & Hopkins

reason why

Short-term manipulative criticism

criticism on style of advertising

Long-terms macro criticism

focus on the broader social or environmental impact of marketing

Puffery

exaggerated claims that cant be proven true or false (ex. Americas favorite pasta)

Non-product facts

not about brand but about consumers/ social context (ex. Pepsi choice of a new generation)

Three levels of ethical advertising

customs and principles (group), personal value system (individual), ethic definition

Ethical advertising customs and principles

traditional actions by society, philosophical rules to justify past and future actions

Ethical advertising personal value system

should you serve society or own beliefs

Ethical advertising ethic definition

when group or individual cant resolve ethical dilemma

Valentine v Chrestensen (1942)

government free to regulate purely commercial speech

Virginia State Board of Pharmacy v Virginia Citizen Consumer Council (1976)

truthful ads have protection under 1st amendment

Central Hudson test

does commercial speech concern lawful activity? Will the restricted commercial speech serve/solve problem? Does the regulation advance and help a problem gov is trying to address? Is the restriction necessary?

Childrens Advertising Review Unit (CARU)

general advisory service for advertisers agencies etc on guidelines, food, packaging, and review and evaluation of ads

Fair information practice principles

notice, choice, access, security, enforcement

General data protection guidelines

European union limits marketers use of consumer data, affects all companies if they market globally.

Federal Trade Commission (FTC)

major regulator of advertising interstate commerce, ensures nations market works competitively, vigorously, efficient, free of undue restrictions

Deceptive advertising

ad that misrepresents omits misleads “reasonable” consumer

Unfair advertising

violates public policy or unjustifiably injured, unfair= substantial unavoidable injury to consumers, injury not reasonably avoidable by consumer, injury not outweighed by benefits

Comparative advertising

claim superiority over competitors, LEGAL and encouraged if truthful (compare something objectively measurable)

FTC investigating suspected violations

look for substantiations, endorsements,affirmative disclosure (make known product limitations)

Consent and decree

advertisers sign agreeing to stop bad ad without admitting any wrongdoing

Cease and desist

if they refuse to sign consent and decree prohibits future use of ad

Corrective advertising

run ad for period of time to explain and correct ad

Food and Drug Administration (FDA)

has authority over labeling packaging and branding of packaged foods and therapeutic devices. Give complete and truthful info and warnings

Nutritional labeling and Education Act

sets strict legal definitions for “fres” “light” “low fat” “reduced calorie” and sets standard serving sizes labels show food value

Federal Communications Commission (FCC)

jurisdiction over radio tv phone industries and indirect control over broadcasting advertising bc of authority to license broadcasters

Patent and trademark office and library of congress

role of gov to promote and protect economic well being of citizens

Intellectual property

produced by mind ie original works

Patents

gives creator sole right to make use sell for period of time

Trademark

word name symbol to identify goods

Copyright

exclusive right for authors/artists to protect work from plaigarizing selling using without permission

Advertising industry consists of

advertisers (clients), agencies, suppliers, media

Local advertising

almost half of ad spending in the U.S is spent on it

Local advertising is important because

most sales made or lost locally, is where action is and where relationships start and develop

Institutional advertising

to create good long-term perception of business as a whole, promote idea of the company

Classified advertising

to recruit new employees, offer services

Vertical cooperative advertising

manufacturer provides as and shares cost of placing ad

Horizontal cooperative advertising

firms in same business level or area advertise jointly

Local advertiser focus

care about attracting customers to a point ( their place of business), lots of smaller competitors, care about gross sales and customer relationships and feedback, think tactically and short term

National advertiser focus

care about building brands, ads focus on competitive features, less but larger competitors, plan strategically and long term, and view customers as segments and data

Centralized organization

greatest control and efficiency and continuity, organize by brand product media etc

Decentralized organization

completely new ad departments for divisions, regions, brands groups, offers flexibility and quicker response and adjusting of ideas, but focus on own problems instead of brand as a whole, lack uniformity

Services provided by ad agency

research negotiations and contracts for commercial space in media

Full service agencies

serve clients in all areas (advertising and non advertising) sales promotion, publicity, annual reports etc

General consumer agencies

widest variety of accounts and concentrates on clients who make goods for consumers

Business to business agency

market products to other businesses, technical knowledge and ability to translate into persuasive language

Creative boutique

org of creative specialist who work with advertisers sometimes ad agencies

Media buying services

purchase and package radio and tv time, presell and discounts for large buys

Digital/interactive agencies

specialize in digital ads, web pages etc

Account executive

bridge between agency and client, responsible for advertising plans, agency services, representing clients pov to agency

Account planning

hybrid consumers at center, represent consumer view for plans, study consumer needs, translate findings into successful campaigns

Creative director

in charge of copywriters and art directors

Advertising production

producing into print video or audio ad

Media buying

only way clients communicate is through media so this phase is important

Traffic management

coordinates all phases to make sure done before deadline