Ad and Promo final

Advertising

Broadcasting your companies product/service to potential consumers 

Good Advertising

Good advertising is displaying your company's product/service/mission to people in a way that sparks interest and excitement. Good advertising requires different ideas and demand for that product 

Four P’s

Price, promotion, people, place

The promotional mix

• Advertising 

• Direct marketing 

• Digital/internet marketing 

• Sales promotion 

• Publicity/public relations

• Personal selling 

Direct marketing

• Communicate directly with target customers to generate and/or transact 

• Involves:

• Database management 

• Direct selling 

• Telemarketing 

• Direct response advertising

Digital/internet marketing

• Interactive media: allow users to participate in and modify the form and content of the information they receive in real time 

• Social media: Online means of communication and interactions used to create, share, and exchange content 

Advantages of Digital/internet marketing

• Interactive nature 

• Capability to precisely measure the effects of advertising and other forms of promotion 

Sales Promotion

Marketing activities that provide extra value or incentives to the sales force, Distributors, ultimate consumer

Publicity

Non personal communications regarding an organization, product, service, or idea not directly paid for or un under identified sponsorship 

• High credibility and low cost

• Not always under orgs control 

• Negative stories can be damaging 

Public relations

• Evaluates public attitudes 

• Identifies policies and procedures of an individual or organization

Internal analysis

Assess the firm and relevant areas involving the product/service offering

External analysis

Focuses on characteristics of a firm's customers, market segments, possession strategies, and competitors

IMC and audience contacts

Every opportunity a customer has to see or hear about a company and its brands or have an encounter or experience with it

STP:

Segmenting, targeting, positioning

Segmenting:

• Breakdown a diverse market into homogeneous groups 

Targeting

Choose a specific segment for your campaign

Positioning

 Designing a distinctive message to appeal to the target segment

Competitive analysis

Analyzing the competition in the marketplace and searching for a competitive advantage

Dividing Market segmentation

• Dividing a market into distinct groups with common needs, who respond similarly to a marketing situation 

Customer characteristics segmentation criteria:

Geographic, demographic, socioeconomic, psychographic

Geographic, demographic, socioeconomic, psychographic meanings

• Geographic: dividing the market based on region 

• Demographic: dividing the market based on age 

• Socioeconomic: Dividing the market based on income 

• Psychographic: Dividing the market based on lifestyle, values, interests 

Positioning

Fitting a product or service to one or more segments of the board market to make it unique within the marketplace

Product symbolism

• What a product or brand means to consumers 

• What consumers experience in purchasing and using a product 

Branding

• Builds and maintains brand awareness and interest

• Develops and enhances attitudes toward the company or product

• Builds relationship between the consumer and the brand 

Brand Identity:

Combination of name, logo, symbols, design and associations held by consumers

Brand equity

Intangible asset of added value

Packaging:

• Traditionally, the package provided functional benefits: economy, protection, and storage 

• Role and function have changed due to self service emphases of many stores 

• First impressions matter 

Price Decisions

Price variable: Refers to what the consumer has to give in exchange for a purchase

Factors that determine price:

• Costs

• Demand factors

• Competitor

• Perceived value

• Product quality

• Advertising 

Marketing channels

• Interdependent organizations involved in making a product or service available to use 

Direct channels:

Direct deal with customers

Indirect channels

Wholesalers

Promotional Push strategies:

• Programs designed to persuade the trade to stock, merchandise and promote a manufacturers products 

• Goal: Push the product through the channels of distribution by selling and promoting it

Trade advertising

• Used to motivate wholesalers and retailers to purchase products for resale 

Promotional Pull strategies

Spending money on advertising and sales promotion efforts directed towards the ultimate consumer

Consumer behavior:

• Process and activities people engage in with relation to products and services to satisfy their needs and desires 

• Searching and selecting 

• Purchasing and issuing 

• Evaluating 

• Disposing 

Stages of the consumer decision making process

Problem recognition, information search, alternative evaluation, purchase decision, post purchase evaluation

Problem recognition

• Consumer perceives a need and gets motivated to solve the problem 

• Caused by a difference between consumers ideal state and actual state 

Sources: Out of stock, dissatisfaction, new products

Information search

• Internal Search: Information retrieval that involves recalling

• Past experiences 

• Information regarding various purchase alternatives 

• External search: Seeking information from external sources 

• Internet, personal, and public sources 

• Marketer-controlled sources 

• Personal experience 

• Extent of external source to he used depends on the : 

• Importance of the purchase decision 

• Effort needed to acquire information 

• Amount of past experience relevant 

• Degree of perceived risk associated with the purchase 

• Time available 

• Perception

• Receiving, selecting, organizing and interpreting information to create a meaningful picture of the world 

• Depends on internal factors, characteristics of a stimulus 

• Sensation 

• Immediate direct response 

Alternative Evaluation

This is the stage where a consumer compares different products or services that could satisfy their need or solve their problem. They evaluate the alternatives based on various criteria such as:

• Price

• Features

• Brand reputation

• Reviews

• Personal preferences

. Purchase Decision

After evaluating the options, the consumer makes a final choice and decides what to buy, where to buy it, and when to buy it. This decision can be influenced by:

• Promotions or discounts

• Recommendations

• Availability

• Return policies

• Emotional factors

🛒 Example: You decide to buy the Samsung Galaxy from an online store because it’s on sale and offers free shipping.

Post-Purchase Evaluation

This is the reflection stage after the purchase. The consumer assesses whether the product met their expectations. This can lead to:

• Satisfaction → repeat purchases, brand loyalty, positive reviews

• Dissatisfaction → returns, complaints, negative word-of-mouth

💭 Example: After using the phone for a week, you feel it’s fast and takes great photos—so you’re happy with your choice.

Selective exposure

• Consumers choose whether or not to make themselves available to information 

Selective attention

• Consumers choose to focus attention on certain stimuli and not others

Selective comprehension

• Consumers interpret information on the basis of their own attitudes, beliefs, notices, and experiences 

Selective retention

Consumers do not remember all the information they see, hear, or read even after attending to and comprehending it

Mnemonics

• Symbols, rhymes, association, and images that assist in the learning and memory process  

environmental Influences on consumer behavior

Culture

• Complexity of learned meanings, values, norms, and customers shared by members of a society 

  Thinking styles: Perception

• Analytic versus Holistic thinking style

• Westerners more likely to focus on an object within the context 

• East asians more likely to attend to the context (holistic)  

Operant conditioning

• Learning occurs when individual actively operators or acts on some aspect of the environment 

• Positive or negative consequences occur from use of product, leading to reward or punishment 

• Increase or decrease in probability of repeat behavior 

Eight Distinct human values: 

• Self Direction 

• Stimulation 

• Hedonism 

• Achievement 

• Security 

• Conformity

• Tradition 

• Benevolence 

Individualistic cultures:

Self Direction

Stimulation 

Hedonism 

Achievement

Collectivistic cultures

Security 

Conformity

Tradition 

Benevolence 

Marketing

 A set of institutions, and processes for creating, communicating, delivering, and exchanging offers that have value for customers

Communication

Needs at least two parties

• Passing of information or exchange of ideas

• Process of establishing a commonness of thought between a sender and receiver

• Success depends on 

- Nature of the message

- Audiences interpretation 

- Environment in which it is received 

Source:

A person or organization that has information to share with another person or gorup of people

Encoding

Putting thoughts, ideas or information into a symbolic form

Channel:

• Facilitates communication between sender and receiver 

• Non personal channel or mass media 

• Personal channel or direction communication between two or more persons 

• Word of mouth 

• Buzz marketing 

Viral marketing: 

• Propagating marketing relevant messages with the help of individual consumers 

• Factors Affecting success: Message characteristics, individual sender or receiver characteristics, social network characteristics 

Seeding:

-Identifying and choosing the initial group of consumers who will be used to start spreading the message

Receiver:

 A person with whom the sender shares thoughts or information

Decoding:

Transforming the senders message into thought

Noise

• An unplanned distorting in the communication process 

Persuasion Matrix

Helps marketers see how each controllable element interacts with the consumers response process

Source

• Person involved in communicating a marketing message 

Direct source:

Delivers a message and/or endorses a product or service

Indirect source:

Draws attention to and enhances the appearance of an ad

Fear appeals

• Evoke an emotional response to a threat and arouse individuals to take steps to remove the threat

• Effective when the recipient is: Self confident and prefers to cope with dangers, a non user of the product

Protection Motivation Model

• States that ads using fear appeals should give the target audience information on the:

• - Severity of the threat

Humor appeal

• Attract and hold consumers attention

• Put consumers in a positive mood

• Increase consumers liking of the ad and their feeling toward the product 

• Distract the consumer from counterarguing against the message 

• May wear out faster than serious appeals 

Transmission model

• Says we transit signals or messages over distance for the purpose of control 

• Focusing on ways to improve the persuasiveness of advertising as a form of communication: how well the message was encoded and decoded, and minimizing interference 

Marginal analysis

Increase in advertising/promotional expenditures increases sales and gross profit margins to a point, after which they level off

Budgeting approaches

Top down Approaches 

Budgeting approaches

Top down Approaches 

Affordable method 

• Firm determines the amount to be spent in various areas

Arbitrary allocation 

• Budget determined by management on the basis of what is felt to be necessary 

Percentage of sales method 

• Advertising and promotions budget is based on sales of the product 

Competitive Parity method 

• Budget amounts established by matching the competitions percentage of sales expenditures 

ROI budgeting method 

• Advertising and promotions are considered investments and are expected to earn a certain return 

Payout planning 

• Determines the investment value of the advertising and promotion appropriation 

• Projects the revenues a product will generate as well as the costs that will occur 

Quantitative Models 

• Employ computer simulation models involving statistical techniques 

• Computer simulation models: Help determine the relative contribution of the advertising budget to sales

Medium

General category of available delivery systems

Vehicle

Specific carrier within a medium category

(example: 60 minutes)

Reach

Measure of the number of different audience members exposed at least once to a media vehicle in a given period of time

Coverage

refers to the potential audience that might receive the message through a vehicle. Coverage relates to potential audience

Frequency

refers to the number of times the receiver is exposed to the media vehicle in a specific time period

Media Planning

The series of decisions involved in delivering the promotional message to the prospective purchasers and/or users of the product or brand

Problems in Media Planning

• Insufficient information

• Inconsistent Terminologies

• Time pressures

• Difficulty measuring effectiveness

E-commerce

Direct selling of goods and services on the internet

Pop-ups

Ads that appear when certain cites are accessed

Paid searches

• The higher a site appears on a search page, the more visitors it will receive 

• Organic search results appear due to their relevance to the search terms 

• Pay-per-click is placing ads on web [pages that display results from search engine queries

• Search engine optimization is improving the volume of traffic to a site by a search engine through unpaid results 

Contextual ads

• Ads are determined

• Native advertising: Advertiser gains attention by providing valuable content in the context of the users experience (controversial, may be deceptive) 

Behavioral targeting

• Based on advertisers targeting consumers by tracking their website surviving behaviors 

• Retargeting: Ads follow a website user and are displayed on every participating subsequent website the user visits 

Facebook

• Largest of all social networks 

• Allows advertising that targets subsets of Facebook users

• Used to create and push content and manage reputation 

Twitter

Enables users to send and receive text based messages up to 140 characters

Reasons to measure effectiveness

Avoiding costly mistakes

Evaluating alternative strategies

Increasing the efficiency of advertising in general

Determining if objectives are achieved

What to test

Source factors

Message variables

Media strategies

Budgeting decisions

When to test

Pretesting, posttesting

Where to test

Laboratory, Field tests

Concept testing

Conducted very early in the campaign development process in order to explore the targeted consumers response to a potential ad or campaign

Weaknesses associated with Focus group research

• Results are not quantifiable

• Sample sizes are too small to generalize to larger populations

• Group influences may bias participants responses

• One or two members of the group may steer the conversation or dominate the discussion

• Consumers become instant experts

• Members may not represent the target market

Comprehension and reaction tests

Designed to assess these responses. Basically analyzing focus groups Reponses

Consumer Juries

This method uses consumers representative of the target market to evaluate the probable success of an ad. May be asked to rate a selection of layouts or copy versions presented in pasteups on separate sheets

A/B testing

This process involves the testing of two versions of an advertisement or homepage to see which will be the more effective prior to launch

Portfolio tests

Laboratory methodology designed to expose a group of respondents to a portfolio consisting of both control and test ads. The assumption is that the ads that yield the highest recall are the most effective

Readability tests

This test uses the Flesch formula, to assess readability of the copy by determining the average number of syllables per 100 words

Theater tests

Participants are invited to view pilots of proposed TV programs

Global brand

• A multinational flow of capital and products

• 5% of sales come from outside of the home region

• 1 billion dollars of the total revenue

Ethics

Moral principles that help determine when a course of action is either right or wrong