Studied by 1 person
ad agency structure
follows an ad process
strategy - creative - media - production
how advertising starts
strategy and marketing plan
marketing
All the ways you get a product or service to people to facilitate the “exchange”
exchange
trading one thing for another thing of value and facilitated by marketing
larger marketing context of advertising
understand relationship between product and marketplace
locate and understand customers and their wants and needs
communicate it in a powerful way
key drivers of marketing decision, what advertisers are first thinking about
establishing a target market
classifying your product
setting your pricing
determining placement with distribution approach
choosing types of promotion
target markets
The market segment or group within the market segment toward which all marketing activities will be directed.
market segmentation
Marketers select specific markets that offer the greatest potential and fine-tune the mix of marketing elements to match the needs and wants of the target market.
identify groups with shared needs and characteristics
types of markets
consumer and business
cosumer markets
target of most advertising
consumers - people who buy the product for their own or someone else’s personal use
consumer segmentation
grouping customers based on shared characteristics to tailor messages
defined by
demographic
geographic
psychographic
behavioristic
demographic
based on a population’s statistical characteristics with quantifiable factors such as gender, age, ethnicity, occupation, income
geographic
based on geographical regions with shared characteristics such as culture, traditions, lifestyles, also often combined with geographic segmentation to make geodemographic segmentation
geodemographic segmentation
based on two principles
people who live in the same neighborhood tend to be demographically similar
neighborhoods can be categorized by characteristics of populations and two or more neighborhoods can be placed in the same category, even though they are geographically separated
psychographic
defining consumer markets based on psychological variables including values, attitudes, personality, lifestyle/activities
behavioristic
grouping os consumers by their purchase behavior - how they buy and use products/brands, determine their user status
user status
varying degrees of loyalty to certain brands and products and different types
sale user
user status type, the most brand loyal and require the lease amount of advertising and promotion
semisole users
user status type; typically use Brand A but have an alternate selection if it is not available or if other is promoted with a discount
discount users
user status type; semisole users of competing brand B, they won’t buy brand A at full price but perceive it well enough to buy it at a discount
aware nontriers
user status type; use competitive products in the category but haven’t taken a liking to Brand A but aware
trial/rejectors
user status type; tried brand A because of its advertising message, but didn’t like the product
repetoire users
user status type; perceive two or more brands to have superior attributes and will buy at full price. These are brand switchers; therefore, they are the primary target for brand advertising
behavioristic
usage rate: defining consumers and light, medium, or heavy users of products, purchase occasion: how often consumers buy a product; benefits sought: segmenting consumers based on the benefits being sought such as high quality, low price, the symbolism
benefits sought
segmenting consumers based on the benefits being sought such as high quality, low price, functionalitys
symbolism
consumer motivated by sex appeal, status/image, self identity
benefit segmentation
is prime objective of many consumer attitude studies for many successful and campaigns. Some product categories are characterized by substantial brand switching from one purchase to next, which occurs in response to different need states that consumers may experience
types of markets
consumer and business
business markets
organizations that buy natural resources, component products, and services that they resell and use to conduct their business, or use to manufacture another product
gov agencies
retailers
wholesalers
banks
business market characteristics
employ professional buyers and use systematic purchasing procedures
concentrated geographically
small numbers of buyers
B2B marketing
directed at people who buy goods and services for resale for use in a business or organization, or for manufacturing other products. Special advertising types:
trade
professional
trade
advertisng type; targets resellers to promote distribution
professional
advertising type; targets professionals in a given industry
product classifications
by market - consumer and industrial goods
by rate of consumption and tangibility - durable/non, services
by purchasing habits - convenience, shopping, specialty, unsought goods
by physical description - packaged, hard, soft, services
utility
product’s ability to satisfy both functional needs and/or psychological wants
functional utility
form: provides a tangible good
task: performs a task
possesion: available for purchase
time: available when wanted
place: available where wanted
psychological utility
offers symbolic or psychological desire satisfaction, such as status or sex appeal
product life cycle
progressive stages in the life of a product - including introduction, growth, maturity, and decline - that affect the way a product is marketed and advertised
introduction stage
initial phase of the product life cycle when a new product is introduced, costs are highest and profits are lowest
attract early adopters, people willing to try new services
create primary demand - consumer demand for whole product category
pull strategy - marketing, ads aimed to induce trial purchase
push strategy - marketing, ads aimed at getting products into the dealer pipeline and accelerate sales
growth stage
market expansion as more and more customers make their first purchases while others are already making their second or third purchase
first substantial product
rapid market expansion
biggest rewards
ad expenditures decrease
individual firms realize first substantial profits
maturity stage
market is saturated with products, the number of new customers has dwindled, and competition is most intense
profits diminish
selective demand
sales increase at expense of competitors
market segmentation, product positioning
decline stage
stage in the product life cycle when sales begin to decline due to obsolescence, new tech, or changing consumer tastes
cease promotions
phase out the product
product positioning
the way it is ranked in consumer’s mind by the benefits it offers, way it is classified or differentiated
brand
most important way any product can differentiate itself
combination of name, words, symbols, or design that creates core feeling
pricing element
the amount charged for a good or service, influences consumer perceptions of a brand
key factors influencing price
market demand (law of supply and demand)
product and distribution costs
competition
corporate objectives
psychological pricing
setting a high price to make it seem valuable to influence customer behavior or perceptions
distribution (place) element
place, distribution, element is decided before ad is created to make a method of distribution and be consistent with the brand’s image
ways of distribution
direct
indirect
intensive
selective
exclusive
direct distribution
direct distributors sell directly to consumers from the manufacturer, advertising burden carried entirely by manufacturer
indirect distribution
most companies market their products through a distribution channel that includes a network of resellers that operate between the producer and the user
intensive distribution
distribution strategy based on making the product available to consumers at every possible location
selective distibution
distribution method limits the number of outlet
exclusive distribution
this grants exclusive rights to a wholesaler or retailer in one geographic region
promotion/communication element
includes all marketing related communications between the seller and the buyer, based on target market and other areas of the 4 P’s
marketing communications /marcom
all planned messages that companies create to support their marketing objectives and strategies, work hollistically to make a message, surround consumer with integrated marketing
promotion key elements with IMC
advertising, PR, sales, sponsorship, events, branded content, direct marketing, personal selling
marketing mix
after target market is designated
elements of marketing decision are determined
company has a complete product concept and a strategic basis for marketing to that target
written marketing plan
marketing plan key components
situation analysis
marketing objectives
marketing strategy
marketing tactics
situation analysis
factual statement of the organization’s current situation and how it got there
compiles all relavent facts about industry and company history, growth, products, etc.
points out strengths, weaknesses, threats, opportunities
companies in industry
leaders in the industry who are the players
growth patterns within industry
primary demand, what drives purchasing and potential growth areas
history of industry
tech advances, product expansion
characteristics of industry
distribution patterns, pricing patterns, product patterns, promotional activity, geographic characteristics
swot analysis: the company
think about
history
size/growth
profitability
scope of business
reputation
strengths/weakessnes
swot: the product
product story - development, quality, packaging
sales features - ex/inclusive
research - tech breakthroughs
sales history - profits and costs
share of market and trends
swot competition
who is the competition - their products, audiences and goals, history, growth
strengths and weaknesses - sales features, quality, etc.
marketing activities of competition
marketing objectives
many kinds, “what” marketing needs to achieve
corporate
brand
need-satisfying
business
corporate objectives
profit, return on investment, net worth - for the corporation overall
brand objectivse
based on needs of target market, focus on brand measurement and engagement - for the brand
need-satisfying objectives
as a producer of products or services to a satisfier of target market needs - for the consumer/product relationship
business objectives
specific, quantitative, realistic business goals, for the bottom line business
marketing strategy
statement of how the company is going to achieve its marketing objectives and involves
re-stating the target market
stating the strategic position
determining the marketing mix
restating- the target market
first step beings by defining and selecting the target market using the processes of market segmentation and research
stating the strategic positioning
positioning refers to placing a brand competitively in the minds of customers
determining the marketing mix
a cost-effective mix (product, price, distrubution, and communication must be developed for each target market the company pursues
marketing tactics
a company’s objectives indicate where it wants to go; the strategy indicates the intended route; and the tactics determine the specific short-term actions to be taken
advertising plan
swot analysis
creative strategy
creative concet
media strategy
measurement plan
creative strategy
defines the target audience
restates objective
specifies key benefits
offers support for benefits
sets tone
media strategy
defining media objectives
states media target
using media channels and timing
advertising strategy: research
is a must
research provides information that drives marketing and advertising decision making
categorized in 2 ways - marketing and ad
uses creative and media strategy
used to gain understanding and key insights
informs the brand, audience, message, creative, and media
marketing research
systematic gathering, recording, and analysis of information to help managers make marketing decisions
helps identify consumer needs and market segments
it provides information for developing new products and devising marketing strategies
it helps assess the effectiveness of marketing programs and promotional activities
advertising research
uncovers the information needed to make advertising decisions, systematic gathering and analysis of information to help develop or evaluate advertising strategies, individual ads, and campaigns
ad research: brand
learn what consumers perceive about a brand and what qualities will lead to purchase and loyalty
establish a unique positioning concept for the brand - bundle values to shape brand’s position and image over time
inform a creative approach based on understanding of brand perception and the wants and needs of consumers
ad research: target audience
develop a rich, deep profile of brand’s target audience
understand demographics, behavior to gain valuable insight
define target audience to ensure the advertising will be delivered to the most prospects with the least waste
ad research: message
decipher what messages your audience will respond to
find promising messages by studying consumer’s likes and dislikes
determine which message elements will prove most successful
ad research: the creative
get an early read on which concepts the target audience responds best to, can drive which idea to go with (pre-testing)
evaluate the effectiveness of an ad campaign after it runs (post-testing)
provides useful guidelines for future - where to improve on creative
ad research: the media
understand which media channels to put the creative to reach the target audience; understand consumer media behavior
evaluate their intersts via systematic gathering and analysis based on effects of media vehicles
research process steps
analyzing the situation/defining the problem
conducting secondary research
establishing research objectives
conducting primary research
interpreting and reporting the findings
research process step 1
SWOT analysis, some use marketing information system (IMS)
secondary research
learn more about the market and competition, uses two types of research data - primary and secondary
primary data
customized information and can focus on any issue agency chooses
secondary data
information previously gathered and published, includes company records, billings, sales data, database services, etc.
research process step 3
specific research objectives in written statements, should be specific and measureable, what do we expect from research?
research process step 4
gather primary research through qualitative and quantitative research
qualitative research
projective techniques to understand subconcious feelings, opinions, etc.
intensive techniques - in-depth interview, focus group, ethnographic research (understand how people live their lives)
quantitative research
observations via people’s actions and data (UPC code)
experiment via test market
survey
research process step 5
report should state the problem and research objective and summarize the findings and draw conclusions
what research and strategic planning focuses most on
consumer behavior
consumer behabior
the importance of knowing the customer, focal research on this
the mental/emotional processes and the physical activities of people that purchase/use goods and services to satisfy particular needs and wants
Note
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