ADV 305 exam1 UT Austin

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

4 P's of Marketing

Product, Price, Place, Promotion

Product

A tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses.

Price

The amount of money exchanged for a good or service

promotion

Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response

place

Distribution channel

Advertising

any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

target audience

the portion of the whole audience that the speaker most wants to persuade

Stern Model

source ( sponsor, author, etc..) Message , Receiver (implied consumer) , Noise, Feedback.

Source

Sponsor:

The company that is

advertising a product

•

Legally responsible for the

communication

•

Has a message

•

Author:

creative team

•

Invisible to public

•

Persona:

real / imagery

spokeperson

•

Within message

•

Lends voice or tone to ad

noise

Noise

：

•

Competitors, other contents, etc

Receivers

consumers who read, hear, or see the messageSponsorial consumers:

•

Sponsor's executives and mangers

who pay for the ad

Feedback

Physical reaction:

Redeemed coupons, Website visit,

Phone inquiries, Visit to a store

Social media conversation: Tweets,

facebook posts

Attitude change toward the

product/brand

Increased sales

Etc.

Two-step flow

Mass Media -> Opinion Leaders -> Public

Categories of Ad

Target Market (consumer ad, business ad), 4p, IMC

Target Market

By target market

•

Consumer advertising

•

Retail

•

Public service(PSA)

•

Business/industrial markets

•

Trade

•

Professions

•

agriculture

By 4P

Price Ads

•

Price vs. Quality

•

Pricing advertising:

•

Focus on pricing

•

Focus on quality

:

image advertising

—

emphasize on personality or

perception of the brand

•

Sale advertising

: price dropping,

sales, promotions.

Place

By place

•

Local advertising

•

Regional advertising

•

National advertising

•

International advertising

•

Global advertising

Promotion

Promotion

Ads is one kind of the promotion tools.

•

By

purpose of the sponsor

:

•

Product advertising

•

Non-product advertising:

•

Noncommercial advertising: PSA

•

Awareness advertising

•

Action advertising

•

Sales promotion

•

Public relations advertising

What is PR

What is PR

•

Public relations:

•

Umbrella process—deal with relations

the firm's relationships with its various

publics,

such as government relation,

employees, stockholders, vendors and

suppliers, interest groups, media, and

consumers.

•

Jobs include hold press conference,

event planning, sponsorship,

campaign...

•

Public relation advertising

.

IMC-integrated

marketing

communication

•

Integrated marketing communication (IMC): company deliberately coordinates and integrates messages

from a variety of sources about its products or brand

Why IMC

•

Consumer's image of a brand does not only come from the

advertising alone, but from many source--

Wholeness

•

Unified voice can help consumers remember the brand better—

Reinforce each other

Why IMC 2

Why IMC?

•

1. mass media advertising is no longer as efficient as it used to be

•

2.conuemrs are more sophisticated, cynical, and distrusting than ever

before

•

3. gaps exist between what the advertising say and what the company

do

•

4.nourishing good customer relations is more important than simply

transaction relation—loyal customer

Transactional marketing vs. relationship marketing

ransactional marketing vs. relationship marketing

•

Relationship marketing

: creating, maintaining and

enhancing long-term

relationship

with customers and other stakeholders that result in

exchanges of information and other things of mutual value.

•

Goal:

•

1.identify, satisfy, retain, and maximize the value of profitable customer;

•

2.mange the contact btw consumer and company to ensure effective

communication;

•

3.understand the customer better by acquiring useful data.

•

Lifetime customer value ( LTCV )

•

1. the cost of lost customers

•

Lifetime customer value ( LTCV )

•

$2 each *12 month=$24 /year

•

$24*60years =$1440 LTCV

•

Tell another friend, $1440 x 2=$2880.

•

Post on social media, $1440 x 1 million = .......

Levels of

relations

Basic transactional relationship

Reactive relationship

Accountable relationship

Proactive relationship

Partner relationship

4 Types of brand message

Planned(least), unplanned(company has limited influence), service/employee (great), Product (vary weak-great)

Defensive marketing

attempt to retain loyal

customer

Offensive marketing

seeks new customer

Market economy