Advertising midterm

Integrated marketing communication (IMC)

Building and reinforcing profitable relationships w/ customers, employees, and stake holders by creating communication that they are able to contact the company/ brand through different media

Advertising

Paid, mediated form of communication from an identfiable source, designed to persuade the reciever to take some action, now or in the future

Human communication process and its relationship to advertising

Source, message, reciever

Source

-Sponsors: Legally responsible for the communication

-Authors: Creative team or ad agency who put the message together

-Persona: Source within text message (spokesperson) (Character)

Message

Autobiographical message: Author tells their own story

Narrative message: Third person persona who tells story about other people to some imagined audience

Dramatic audience: Characters acting out events as though they are in a play

Reciever

Implied consumers: People that are addressed by an ads persona

Sponsorial consumers: The gatekeepers → are the sponsors that decide the ad can run

Actual consumers: Real world ad audience

Feedback

Redeemed coupons, website traffic, social media posts, etc

Noise

Competing ads

Relationship marketing

Create/maintain long term relationships with customers and other stakeholders

The point: Keep customers, spend less money on ads bc customers are loyal, keeps profits up.

Types of relationships brands have w/ consumers

-Basic transactional: You sell the product but dont really follow up with consumer

-Reactive: Company sells product, consumer should tell company is problem

-Accountable: Salesperson reaches out after transaction, to make sure you are satisfied. “Anything we can improve on?”

-Proactive: The company calls customer about new products or updates

-Partnership: Company works w/ the customer to max profits ex. Planet Fitness

Four sources of brand messages

Planned messages: crafted message, promotional, PR. Commerical,etc. Least effective.

Product messages: Messages you get from product, price, packaging, and distribution

Service messages: Info you get from interacting w/ customer service employees

Unplanned messages: Not able to be controlled by company (gossip, word of mouth, etc)

Consumer and business markets

Consumer markets: Buy for your own personal use

Industrial business markets: Markets made up of business’ that want to buy things to sell to customers

-Trade advertising: Companies go to resellers to obtain greater distribution of product (advertising to grocery stores)

-Professional advertising: Aimed at teachers, healthcare workers, lawyers etc to buy products to perscribe to their consumer or to buy products to be used for their work

-Farm advertising: promote products and services used in agriculture to farmers and other agribusiness

Elements of marketing mix

Product: Variety of features and benefits, what does it do? What does it solve? Why is the product special?

Price: What consumers view value as ratio of price to quality

-Price advertising: focused on price

-Image advertising: creating perception that the product is of quality.

-Sale advertising: drop in price

Place: Where are you going to put these messages?

Promotion: All of the planned messages that support our marketing communication -image, pr, etc

Awareness advertising

Create an image for a product and to postion it competively w/ the goal of getting consumers to select the brand the next time they shop.

Evolution of advertising

Preindustiral, industrial, and postindustrial age

Preindustrial age

-Printing press 1439, Johannes Gutenberg

-Info could be spread b/c people could publish ideas and opinons

-Travelling entreprenuer: Mounted printing presses on wagons and created the first ads via posters and signs.

Industrial age

-Consumer packaged goods: Things that need to be replaced frequently

-Profession of advertising: Space brokers (very first ad professionals) sold companies ad space in newspaper

-N.W. Ayer sons: First full service ad agency

-Product differitation: Branding to set products apart (quality, variety, convience)

-Market segementation: Marketers searched for unique groups of people whose needs are addressed by more specialized products

-Positioning strategy: Distinguish a brand by associating the brand w/ a set of customer needs in contrast to other brands -uses differitation and segmentation

Post industrial age

Demarketing: Advertising that is used to slow the demand for a product

Relationship marketing

Companies understand they must be consistent in both what they say and do. Customers and customer relationships are the most important asset

Brand

The combination of names, symbols, words, or design that identifies the product and its source, and distinguishes it from competing products

Companies brand their products to

-charge more

-they are insulated from price wars

-a new company product is more likely to succed

-gain leverage w/ channel partners

-more creditability

-able to recruit top talent

-consumer loyalty

Brand vision

An expressed description of the aspirational image for the brand (what do you think the brand should stand for in peoples mind?)

Brand personaility

How the company/organization expresses itself. (Attributes a person associates with a brand)

What have been the effects of advertising on society and ethics?

-Improving standard of living in US+ the world

-Freedom of press

-Foster growth and understanding of important social issues + causes through public service

-Improvements to advertising effectiveness and professionalism (more ethical)

-Fostered social attitudes and laws that have affected advertising

Principles of free market economies

-Self interest → often leads to greater product avalibility at more competive prices

-complete info → consumers need all info including price, forces marketers to keep prices low enough to create demand

-many buyers and sellers → If one doesnt meet your needs, another will

-absence of externalities (social costs) → govs might use taxes or regulations to compensate or minimize harms from externalities

Effects of advertising in our economic system

-Value: added value to brand due to brand image. Educates us on what a product is (symbolic wants/ needs)

-Prices: Advertised products cost less - encourages competition - cheaper b/c companies want customers. mass production.

-Competition: merging: Big companies swallow up little comapanies. companies can fail if not meeting customer wants. -consumer demand: Education, income, etc are more influential than advertising.

Primary demand

Demand for entire class of products. Give people complete info.

Selective demand

Demand for a particular brand. You should buy from us.

Consumer choice

Offer something none of them do

Business cycle

Business cycle up: Inflation low, people are buying more, advertising gets more people to buy

Business cycle down: Inflation high, advertising is a stability

Abundance principles

In an economy that produces more goods and services than can be consumed, advertising serves two purposes: It keeps consumers informed on their alternatives and allows companies to compete more effectively for consumer dollars

Social impact of advertising

-Short term manipulative agreements: Advertising can be manipulative, hurt consumers. Particular ads and particular negative time that determine it is bad. Style of advertising.

-Long term macro arguments: Broad impact of many ads on many people over long periods of time (enviroment or social impact)

Deceptive ads:

those that are factually false or convey a false impression and therefore have the potential to decieve or mislead reasonable people (Can cause dissatifaction for customers)

Puffery

Exaggerated, subjective claim that cannot be proven true or false

Non-product facts

Not about the brand but about the consumer or the social context in which the brand is used.

-changes our values

-ex: Pepsi: the drink of our generation

Effects on our value system

-Critics argue advertising promotes a materialistic way of life, plays on our emotions, promises greater status, social acceptance, and sex appeal

-We do not have complete info by ads, ads do not have that much impact

Proliferation

So many ads. Too much competition, people probably are not going to see your ad. We start to block all ads.

Sterotypes

A group that tends to be generalized for an ad

Offensiveness

Deals with what people or society deem innapropiate.

-sexual themes

-social movements

-nudity

-Taste is subjective and geographic

Benefits of advertising

-Encourages the development and speeds the acceptance of new products and tech

-Fosters employment

-Consumers get more choices

-Mass production = Prices down

-Healthy competition bewtween companies, benefits buyers

-Promotes higher standard of living

-Freedom of press

-Gives out news on public info and social issues

Differences btwn being ethical and socially responsible

Ethics (in advertising): Means doing what the advertisers and their peers believe is morally right in a given situation

Social responsibility: Doing what society views is best for the welfare of people in general, or for a specific community of people

3 levels of ethical responsibility

-level one: The group -The principles that society live by -moral and social responsibility -what does it mean it to us?

-level two: The individual -Personal values -What does it mean to me?

-level three: The ethic -Concerns ethical concepts (like good, bad, right, wrong, truth) What does it mean?

Different geographic areas have different views on ethics

Commercial speech protections

-Commercial speech can be regulated

-No tobacco ads. Advertising to kids is difficult, kids are becoming sole buyer

-No data mining for drug companies

-Many companies can use your personal data to sell your stuff, collect data, not illegal

FTC: federal trade commission

-maintain many sellers, strive to provide complete info, keep the market free of externalities

-defines and remedies unfair advertising and deceptive advertising

Deception

Misrepresentation, ommission, or other practice that can mislead a significant number of reasonable consumers

Unfairness

When a consumer is ‘unjustifiably injured’ or there is a violation of public policy

-comparative ads must compare some objectively measurable characteristic

FDA: food and drug administration

-Enforcing federal food, drug, and cosmetic act

-Informing you of potential danger, clear food packaging

-Regulate promotions in package labels

-Nutritional labels

FCC: Federal communications commission

-Jurisdiction over mass media

-Control over advertising is indirect

Patent and trademark office

-Protecting intellecutal property

-Preventing people from stealing other peoples work and ideas

Patents

The government provides incentives to invest in, invent, and disclose new technology worldwide. Government regulation and protection

Trademarks

Any word, name, symbol, device or any combonation thereof adopted and used by a manufacturer or merchant to identify goods and distinguish them from those manufactured and sold by others

Copyright

Form of protection provided to the authors of “original works of authorship” including literacy, musicals, etc.

Nongovernment advertising regulation

-BBB (better business bureau): protect consumers from deception

-Advertising self regulatory council: Promote ethical practices

-Regulation of the media: Ending the collection of data by having more privacy policies

-Regulation by consumer groups: Consumer demanded that products perform as advertised and that more product information be provided for people to compare and make better buying decisions

-Self regulation of advertisers:

-Maintain careful systems of advertising review to ensure that ads meet both their own standards and industry, media, and legal requirements

Advertising business

-marketers (advetising): The clients, the businesses, etc

-Agencies: Help plan, create, and prepare ad campaigns (outside organizations)

-Suppliers: people that assist both the advertisers and agencies

-Media: Sell time and space to carry the ads

Local advertising

within a specific city/ country directed to consumers in the same geographic area

Local advertisers

-dealers and local franchises of national companies (mcdonalds)

-Stores that sell a variety of branded merch, usually on a nonexclusive basis (grocery stores)

-Speciality buisinesses and services (banks, music stores, etc)

-Government and nonproft orgs (municipalties, unis, charties)

Local advertising

-Product ads: Stimulates the short term action, building awareness of business

-Instituational advertising: want to create favorable long term perception of business as a whole

-Classified advertising: Newspaper, not really used. Locate new employees, other services (employment agencies), or sell lease merch (Cars, houses)

-They dont just advertise - they also do everything else - creating relationships w/ customers

Regional advertisers:

Operate in one part of the country (one or several states) -meijer

National advertisers

Sell in several regions or country wide

Differences between national and local

National Local

Focus : -brand -point

-marketshare -volume, gross sales

-strategies -tactics

-markets -customers

Time

-long term campaigns -short term campaigns

Resources

-5-10 mil + -less than 1 mil

-many specialists - a few generalists

local agencies

-offer expertise to local advertisers

-analyze the local advertisers business and the product or service being sold

-evaluate the markets for the business, including channels of distribution

-evaluate the advertisers competitve postions and offer strategic options

-Evaluate media alternatives and offer rational recomendations

-Devise an integrated communications plan and implement it with consistency and creativity

-save the advertiser valuable time by taking over media interviewing, analysis, checking, billing, and book keeping

-assist in other aspects of advertising and promotion by implementing sales contests, grand openings, and other activites.

Regional and national agencies

-Produce and place the quality of advertising suitable for national campaigns

International agencies

The largest national agencies

-offices in major communication centers around the world and can help clients market internationally

Full service advertising agency

-Planning

-creating

-producing the ads

-selecting the media outlets

-producing sales material

General consumer agency

Focuses on consumer accounts

-companies that make goods purchased chiefly by consumers, earn commission

-hands on involvement

-creative

-smaller profit margins

-more responsive

Business to business agency

Represents clients that market products to other businesses

-trade magazines or business publications

-make money by service fees

-better to gain their expertise

Specialized service agencies

-Creative boutiques

-media

-buying services (buy space, sell it to companies or agencies, packages of time)

-Interactive/ digital

account management (excutives)

-liasons between the agency and the client.

-They report to agencies director of account

-formulating and excuting advertising plans, gathering the agencies services, representing the clients pov

-see things from all povs

Research and account planning (agency creatives)

-researching the uses and advantages of a product, analyze customers, determine what influences them to buy

-After ads are placed, researched how ad faired

Account planning:

-bridge the gap between account management and creatives

-defends consumer pov

-study consumer needs mostly through personal interview

Creative concepts

-copywriters: responsible for words

-art directors: responsible for nonverbals

-creative director: make sure agencies copyrighters and artists work together

Advertising production

-print ads: desktop publishing tech and printers

-video ads: script, actors, camera, directors, editors, audio editing tech

Media planning and buying

-experts on where to put said ads

-only way advertisers can communicate is through some medium

-can come up w/ creative solutions to marketing problems

-how advertising works in coordination w/ other marketing communication tools

Traffic management

-people that make sure deadlines are met

-coordinates all phases of production

How does an agency make money?

-Commissions: You get a percentage. Negotiated ahead of time.

-Markups: Some amount that you charge. Markup basic price

-Fee-commission combo: The agency charges a basic monthly fee and retains any commission earned

-Incentive system: The agency earns more if the campaign attains specific goals

Referrals:

From existing clients, friends, review consulants, or even other agencies.

-Decline agency business → turn to other agency

-Agency review consulants: Arrange marriage between agencies and clients

Presentations

Agency shares campaign ideas, show their capabilities, advertiser and agency get to know eachother.

Networking and community relations

-People their employees know well

-Work w/ nonprofits, help w/ community

-Able to get visability

Soliciting and advertising for new business

-Writing letters, making cold calls

-Viral video on youtube

-Agencies are advertising themselves

Stages in client - agency relationship

Prerelationship stage

-Getting to know

Development stage

-Honeymoon stage

-Establish rules

-First problems occur

Maintenance stage

-Day to day interaction

Termination stage

-End of relationship

Major influences on client-agency relationships

-Chemistry: Between the clients and the agencys staff

-Communication: Open, constant communication is the key to a good relationship

-Conduct: Dissatisfaction w/ how agency and clients treat eachother

-Changes: Peoples postions change, so relationships change

7 catergories of advertising media

-Print media: Newspaper, magazines, directorys, programs

-Electronic media: radio, TV, streaming services, etc

-Social media: Tik-Tok, Instagram, etc. Audience created

-Digital interactive media: allows audience to interact, but not audience created

-Out-of-Home media: Outdoor advertising, billboards, transit advertising

-Direct response: There to get an immediate response from consumers

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.

Product Utility

Relationship between a customers needs and a products need-satisfying potential

Exchanges

Any transaction in which one person/org trades something of value with someone else

Perception

Each party should be satisfied by the exchange

Satisfaction

What the buyer wants

Customers

-Current customers: Already bought something from company

-Prospective customers: Considering buying

-Centers of influence: People or groups who ideas and actions others respect enough that it can influence their behaviors

Markets

Groups of potential customers who share a common interest, need, or desire. Use the offered good to some advantage and are willing to pay the purchase price

Types of markets

-consumer market: People who buy for their own use

-Business market: People who buy to resell or use for their own business

-Government markets: Buy products for municipal, state, federal and other government activites

-Transnational (global) markets: All 3 markets previous, but the difference is enviroment.

Consumer behavior

The activties, actions, and influences of people who purchase and use goods/services to satisfy their personal or household needs and wants

Customer decision process

-problem recognition

-information search

-evaulation and selection

-store choice and purchase

-postpurchase behavior/evalutation

Interpersonal influences

-family

-society

-culture

Nonpersonal influences

-Time

-Place

-Enviroment

Consumer perception process

-Physical data (stimuli)

Ads, product, tag

-Physiological screens (sensory)

Sight, hearing, touch, taste, smell

-Psychological screens (emotional)

Personality, self concept, attitudes, beliefs

-Cognition (awareness)

Awareness, Nonawareness

-Mental files

Information, needs, wants

Persuausion

A change in belief, attitude, or behavioral intention caused by promotion communication (advertising)

Elaboration likelihood model

-Central route: High level of involvement, longer lasting stronger persuasion. Product has advantage

-Peripheral route: Low level of involvement

Maslovs heirarchy of needs