Flashcards 1 - Fundamentals of Advertising

Define advertising.

Paid form of media intended to persuade consumers to purchase/interact with a brand

Define integrated brand promotion.

Using a wide range of promotional tools to increase brand exposure

Describe or draw out the Advertising process.

Company/sponsor > ad agency > ad message > target consumers > noise can affect consumer perception of ad message > actual consumers > feedback/interactivity

What are the goals of Advertising?

Awareness - communicating with consumers

Comprehension - understanding

Conviction - choosing to purchase product/service

Attitude - improving/enhancing consumer’s opinions of brand

What is the Marketing Mix?

4 Ps of Marketing

Product: What are you selling?

Price: Price for goods/services

Place: “Where” of marketing

Promotion: Advertising & PR

What are Segmentation, Differentiation, and Positioning?

Segmentation: Shared characteristics of consumers, demographics

Differentiation: Separating a brand from its competitors by distinguishing its unique characteristics

Positioning: Placing a brand in a unique way in consumer’s minds compared to other brands

List the main people involved in the Advertising process.

Advertisers, advertising agency, promotional agency, external facilitators, media organizations

Describe experiential marketing.

A unique form of marketing where brands invite consumers to engage directly with the brand in an immersive way, such as through pop-ups or VR experiences

Describe the different types of advertising agencies and their roles.

Full-service agency: Includes a variety of advertising professionals ready to meet their client’s needs

Creative boutique: Focuses on copywriting & artistic direction

Digital/interactive agencies: Focused on direct marketing through online, mobile, & social media means

In-house agency: A firm’s advertising department

Media specialists: Focuses on media, offering media strategy consulting to advertising agencies

Describe the major agency compensation systems and the role of an account planner.

Major agency compensation systems

Pay-for-results: Client & agency agree on a set list of rules to base the agency’s fee upon

Commission system: Ad agency is paid a percentage of money the client spends on media

Markup charge: Adds a percentage charge to various services the client spends on outside suppliers

Fee system: Advertiser & agency agree on charging an hourly rate for services provided

Account planner: Professional who coordinates consumer research, assuring that research is included at each stage while developing an ad campaign

List 2 characteristics of advertising during the P. T. Barnum era (1875-1918).

• Characterized by consumption

• Ads were text-heavy & exaggerated, resembling Barnum’s bold tone

List 2 characteristics of advertising during the 1920s (1918-1929).

• Women were primary target audience

• Popularized “slice-of-life” advertising (showing everyday lives in ads)

List 2 characteristics of advertising during the depression (1929-1941).

• People became suspicious of ads promoting big businesses

• Ads became harsher, more scandalous

List 2 characteristics of advertising during the creative revolution (1960-1972)

• Mainly conservative ads during a progressive time

• Creative ads that were symbols of consumption

List 2 characteristics of advertising during the e-revolution (1993-2000).

• Ads became internet-based

• Heart of advertising in the US moved from NY to the West- California, Washington, etc.

What is STP?

Segmentation, Targeting, Positioning. A method of advertising planning where consumers are broken into specific segments that brands can target individually

List each type of segmentation

Usage level: The amount a consumer purchases a brand

Demographic: Segmenting consumers by characteristics such as age, income, gender

Geographic: Segmenting by country, neighborhood, city, etc.

Psychographics/lifestyle: Consumer’s activities, interests, & opinions

Benefit segmentation: Segmenting by benefit packages from competing products/brands

B2b markets: Businesses who purchase products to be used in other products/services

Describe key consumer segments such as lead users and emergent consumers, and explain what makes a positioning strategy effective.

Key consumer segments

Lead users: Consumers who buy a product much more than others

Switchers: Consumers who buy products based on discounts or coupons

Variety seekers: Consumers who switch brands often for enjoyment

Emergent consumers: First-time buyers

What makes a positioning strategy effective

• Carrying out the promise of an ad campaign

• Keeping things consistent

• Keeping ads simple & distinct

What is the Winning Zone framework?

Overlap area where ads highlight what customers want + what their company does best

What is situation analysis?

Analyzing the factors that define the consumer and market situation. Ex) cultural analysis, industry analysis, market analysis, competitor analysis

What are the objectives of advertising?

• Increase consumer awareness of the brand

• Change consumer’s beliefs about the brand

• Influence purchase intent of consumers

• Stimulate trial use of brand

• Convert one-time purchasers into loyal customers

• Switch consumers from a competing brand to the brand

• Increase sales

List the Advertising budgeting methods

• Percentage-of-sales approach: Calculates budget based on the percentage of the prior year’s sales or projected year’s sales

• Share of market: Budgeting an amount to spend based on how much competitor’s spend

• Share of voice: A firms’ advertising presence in the market

• Response models: Provide helpful information on a company’s advertising response function

What is developmental research? (Design thinking, lifestyle research, etc.)

Developmental research: Research conducted to gather important information for creatives to create ads & promote them

Types of developmental research

Design thinking: Digs deep into what consumers truly want using prototype testing & feedback

Concept testing: Getting quick feedback on new ideas

Audience profiling: Finding out qualities about consumers through methods like surveys (lifestyle research)

Focus groups: Small-group discussions evaluating a product/service

Projective techniques: Consumers project thoughts/feelings on a blank surface

Fieldwork: Research conducted outside the agency in real-world settings

Long interviews: Extensive interviews w/consumers to see their opinions on brand

Describe ZMET and how it is used.

ZMET is intended for consumers to think in metaphors, drawing out their thoughts/feelings about the brand.

What is copy research?

Research on actual ads done after ad is finalized

Describe 2 Cognitive Impact analyses/tests.

• Recall tests: Testing to see how much consumers remember of an ad, typically for TV ads

• Recognition test: Testing to see if consumers remember if they’ve seen an ad, typically for print ads

What is single-source data and what types of information does it combine?

Single-source data is a type of results research that assesses a single household’s purchasing behavior. It combines coupon use, brand purchasing, TV ad exposure, and search data.

Describe the basic stages of the Consumer Decision-Making process.

Problem recognition: Consumer identifies a problem where their ideal state differs from their actual state

Information search & alternative evaluation: Consumer conducts research on the products/services they can purchase and evaluates the various brands they can buy from

Purchase: Consumers buys the product/service they decide on

Postpurchase use & evaluation: Advertisers want to create loyal customers, hoping to increase customer satisfaction & decrease consumer cognitive dissonance

What are the 4 modes of consumer decision making?

Extended problem solving: Consumer considers the purchase to be very important but has little prior knowledge on the product/service

Limited problem solving: Consumer has no brand loyalty and doesn’t place much importance on the product/service

Brand loyalty: Consumer is a frequent purchaser of a brand they feel strongly about

Habit/variety seeking: Consumer is familiar with the product/service and purchases it over and over again or purchases from different brands each time