FBLA Advertising Ultimate Study Guide (copy)

Advertising RED - Important for test GREEN - New section

Basic Marketing Functions

Marketing Concepts and Benefits of Marketing

• Marketing Concept: Focuses on identifying and satisfying customer needs to achieve organizational goals.

  • Benefits:

    • Economic Growth: Drives innovation, competition, and economic activity.

    • Customer Satisfaction: Meets customer needs effectively.

    • Product Awareness: Informs customers about products and services.

    • Enhanced Quality of Life: Encourages the development of better products.

Functions in Marketing Goods and Services

• Functions:

  • Product/Service Management: Developing and managing products that meet customer needs.

  • Pricing: Determining prices that maximize profit while appealing to customers.

  • Promotion: Creating awareness through advertising, sales promotions, and public relations.

  • Distribution: Delivering goods to customers through efficient channels.

  • Selling: Engaging directly with customers to complete transactions.

  • Market Research: Gathering data to make informed marketing decisions.

  • Financing: Securing funds to support marketing activities.

Elements of the Marketing Mix

• Product: Goods, services, or ideas meeting customer needs.

• Price: Balancing cost to the customer with value and profitability.

• Place: Channels and locations that deliver the product to customers.

• Promotion: Strategies to communicate value and persuade customers, including advertising and social media.

Process for New Product and Service Development

• Stages:

  • Idea Generation: Brainstorming new product ideas.

  • Market Research: Validating the demand for the product.

  • Concept Development: Designing the product or service.

  • Prototyping: Creating a sample for testing.

  • Testing: Gathering customer feedback to refine the product.

  • Commercialization: Launching the product to the market.

Rationale for Extending Product Line

• Benefits:

  • Diversification: Reduces business risk by offering a range of products.

  • Meeting Market Demand: Satisfies diverse customer preferences.

  • Increased Revenue: Attracts more customers by expanding offerings.

  • Brand Strength: Builds a stronger presence in the market.

Functions of Packaging

• Roles:

  • Protection: Safeguards products during transportation and storage.

  • Promotion: Attracts customer attention with appealing designs.

  • Information: Displays key details such as usage instructions and ingredients.

  • Convenience: Enhances usability and accessibility for consumers.

Importance of Branding, Packaging, and Labeling

• Branding: Establishes product identity, increases recognition, and builds trust.

• Packaging: Drives purchase decisions through visual appeal and functionality.

• Labeling: Provides critical information (e.g., nutrition facts, warnings) and ensures legal compliance.

Factors Used by Marketers to Position Products and Services

• Factors:

  • Features: Highlighting unique attributes.

  • Benefits: Showcasing advantages for customers.

  • Price: Aligning with target audience affordability.

  • Quality: Emphasizing superior craftsmanship.

  • Competition: Differentiating from rival products.

  • Brand Loyalty: Leveraging customer allegiance.

Factors Influencing a Product’s Price

• Influences:

  • Cost: Covers production, distribution, and operational expenses.

  • Quality: Reflects the perceived value and durability.

  • Competition: Aligns with market pricing trends.

  • Brand Loyalty: Allows premium pricing based on trust and reputation.

Basic Advertising Terms

• Definitions:

  • Target Audience: The specific group of consumers a campaign aims to reach.

  • Call to Action (CTA): Encourages the audience to take specific steps (e.g., "Buy Now").

  • Reach: The total number of people exposed to an advertisement.

  • Frequency: The number of times a message is delivered to the same audience.

  • Impressions: The total number of times an ad is displayed.

  • ROI (Return on Investment): A measure of the effectiveness of advertising spending.

Personal Selling and Sales Promotion

1. Steps in the Sales Process

• Generate Leads:

  • Identify potential customers (prospects) who may have an interest in your product or service.

  • Techniques include networking, referrals, online research, and advertising.

• Approach Customers:

  • Initiate contact with potential customers.

  • Approaches can include in-person meetings, phone calls, emails, or social media engagement.

• Determine Customer Needs:

  • Use active listening and questioning techniques to understand what the customer requires or desires.

  • This step builds trust and personalizes the sales pitch.

• Present the Product:

  • Highlight product features and benefits that align with the customer’s needs.

  • Use demonstrations, visuals, or testimonials to create a compelling presentation.

• Overcome Objections:

  • Address any concerns or hesitations the customer may have.

  • Provide reassurance, additional information, or alternative solutions to build confidence.

• Close the Sale:

  • Secure a commitment from the customer to purchase the product or service.

  • Techniques include summarizing benefits, offering limited-time deals, or directly asking for the sale.

• Follow Up:

  • Ensure customer satisfaction after the sale.

  • This step includes checking in, addressing any post-purchase issues, and maintaining the relationship for future opportunities.

2. Reasons Why Sales Promotion is Needed

• Influence Consumer Decisions:

  • Promotions like discounts, coupons, or limited-time offers encourage customers to choose a product over competitors.

• Encourage Trial of New Products:

  • Techniques like free samples, introductory pricing, or trial periods help reduce risk for customers trying unfamiliar products.

• Strengthen Brand Loyalty:

  • Loyalty programs, reward points, and exclusive offers enhance customer retention and repeat purchases.

• Influence Consumer Behavior:

  • Promotions create urgency, encourage impulse purchases, and drive customers to act quickly through strategies like flash sales or bundle deals.

Traditional Advertising Media

Advantages and Disadvantages of Advertising and Promotional Media

• Radio

  • Advantages: Wide reach, cost-effective.

  • Disadvantages: Lack of visual appeal.

• Television

  • Advantages: High visual impact, broad audience.

  • Disadvantages: Expensive production, short exposure time.

• Direct Mail

  • Advantages: Targeted, personalized.

  • Disadvantages: High cost, potential for being perceived as junk mail.

• Outdoor

  • Advantages: High visibility, constant exposure.

  • Disadvantages: Limited message space, dependency on location.

• Newspaper

  • Advantages: Local reach, timely.

  • Disadvantages: Declining readership, limited visual appeal.

2. Advertising Media Selection Criteria

• Reach:

  • The number of people exposed to the advertisement.

  • Important for maximizing audience coverage.

• Frequency:

  • The number of times the target audience sees or hears the ad.

  • Ensures the message is remembered and reinforced.

• Lead Time:

  • The time required to create, schedule, and launch the advertisement.

  • Shorter lead times may be critical for time-sensitive campaigns.

• Cost:

  • The financial investment required for each medium.

  • Businesses balance cost with effectiveness to achieve a good return on investment.

Alternative Forms of Advertising Media

1. Alternative Advertising Media Outlets

• Transit Advertising:

  • Ads placed on public transportation (e.g., buses, subways, taxis).

  • Effective for reaching urban commuters and a diverse audience.

  • Example: Posters on subway trains promoting an upcoming concert.

• Aerial Advertising:

  • Use of airplanes, drones, or blimps to display banners or messages.

  • Suitable for large outdoor events and high-visibility campaigns.

  • Example: A plane flying a banner during a beach festival.

• Cinema Advertising:

  • Ads shown before movies in theaters.

  • Engages a captive audience with high attention rates.

  • Example: A trailer-style ad for a local business shown before a blockbuster movie.

• Product Placement:

  • Integrating products into movies, TV shows, or video content.

  • Creates subtle brand exposure in natural settings.

  • Example: A character using a specific laptop brand in a film.

• Directory Advertising:

  • Listings in directories (e.g., Yellow Pages or online directories like Yelp).

  • Targets consumers actively searching for products or services.

  • Example: A plumbing service listed with top reviews on Yelp.

2. Latest Advertising Media Trends

• Video Advertising:

  • Includes ads on streaming platforms, social media, and video-sharing sites (e.g., YouTube, TikTok).

  • Engages viewers through dynamic content, storytelling, and interactivity.

  • Example: A TikTok ad featuring influencers showcasing a new product.

• Mobile Advertising:

  • Ads designed for smartphones and tablets.

  • Popular formats include in-app ads, push notifications, and SMS marketing.

  • Leverages location-based targeting and personalized recommendations.

  • Example: A push notification for a nearby restaurant offering a lunch discount.

Branding and Positioning

1. Importance of Branding to Business Success

• Establishes Identity:

  • Differentiates a business from competitors and creates a unique identity.

  • Example: Nike's swoosh logo symbolizing athleticism and innovation.

• Builds Trust and Loyalty:

  • A strong brand fosters customer trust and encourages repeat business.

  • Example: Apple's reputation for quality and seamless technology integration.

• Adds Value:

  • A well-established brand can command premium pricing due to perceived quality or exclusivity.

  • Example: A luxury handbag brand like Louis Vuitton.

• Enhances Marketing Effectiveness:

  • Consistent branding reinforces messaging across all marketing channels.

  • Example: Coca-Cola's cohesive advertising campaigns worldwide.

• Supports Business Growth:

  • A recognizable and trusted brand facilitates market expansion, product diversification, and global reach.

  • Example: Starbucks entering new international markets with a strong global identity.

2. Product Positioning Strategies

• Price/Quality Positioning:

  • Emphasizing value relative to cost.

  • Examples:

    • High-Quality, Premium Price: Rolex watches.

    • Low Price, Good Value: Walmart's generic brands.

• Features/Benefits Positioning:

  • Highlighting specific attributes or advantages.

  • Example: A vacuum cleaner marketed for its superior suction power.

• Competitor-Based Positioning:

  • Differentiating a product by directly comparing it to competitors.

  • Example: A toothpaste brand claiming to be more effective in whitening than rivals.

• Usage-Based Positioning:

  • Positioning the product for specific uses or occasions.

  • Example: Gatorade marketed as a hydration solution for athletes.

• Target Market Positioning:

  • Tailoring the product to appeal to a specific demographic or psychographic group.

  • Example: Baby products targeting new parents.

• Cultural or Lifestyle Positioning:

  • Associating the product with a particular lifestyle, value, or cultural identity.

  • Example: Eco-friendly products targeting environmentally conscious consumers.

Promotion

1. Definition of Promotional Mix and Its Importance

• Promotional Mix:

  • A combination of promotional tools and strategies used to achieve marketing goals.

  • Elements:

    • Advertising.

    • Personal Selling.

    • Sales Promotion.

    • Public Relations.

    • Direct Marketing.

• Importance:

  • Effective Communication: Ensures consistent messaging across channels, enhancing brand awareness.

  • Increased Reach: Engages a broader audience with tailored strategies.

  • Boosted Sales: Combines short-term tactics like discounts with long-term brand-building strategies.

  • Customer Engagement: Builds relationships through interactive promotional activities.

  • Competitive Advantage: Differentiates the business with unique and effective promotional campaigns.

2. Steps in Developing a Promotional Plan

• Define Objectives:

  • Set clear goals for the promotional campaign, such as increasing sales or launching a new product.

  • Example: Increasing brand awareness by 25% within three months.

• Identify the Target Audience:

  • Understand the demographics, behaviors, and preferences of the intended audience.

  • Example: Targeting young adults aged 18–24 for a new energy drink.

• Determine the Budget:

  • Allocate financial resources for the promotional activities.

  • Example: Setting a $50,000 budget for a multi-platform digital campaign.

• Select the Promotional Mix:

  • Choose the most effective combination of promotional tools.

  • Example: Combining social media ads, influencer partnerships, and email marketing.

• Create the Message:

  • Develop a compelling message that resonates with the audience and aligns with the brand.

  • Example: "Fuel Your Day with Energy You Can Trust."

• Choose the Media Channels:

  • Select platforms where the target audience is most active.

  • Example: Instagram and TikTok for a youth-focused campaign.

• Implement the Plan:

  • Execute promotional activities and monitor their performance.

  • Example: Launching the digital campaign and tracking engagement metrics.

• Monitor and Evaluate:

  • Measure the effectiveness of the campaign using tools like Google Analytics or surveys.

  • Example: Adjusting the campaign mid-way to optimize ROI based on performance data.

Consumer Behavior

1. Definition and Importance of Consumer Behavior

• Definition:

  • Consumer behavior studies how individuals, groups, or organizations make decisions about purchasing goods and services.

• Importance:

  • Market Understanding: Identifies customer needs and preferences.

  • Product Development: Shapes product features based on consumer insights.

  • Effective Marketing: Improves targeting and messaging strategies.

  • Predicting Trends: Anticipates future buying behaviors.

  • Customer Satisfaction: Enhances the overall buying experience.

2. Factors Influencing Consumer Behavior

• Cultural Factors:

  • Cultural values, norms, and social influences shaping decisions.

  • Example: Celebratory purchases during holidays like Christmas or Diwali.

• Social Factors:

  • Family, peer groups, and societal expectations.

  • Example: Buying a smartphone brand popular among friends.

• Personal Factors:

  • Age, occupation, lifestyle, and economic status.

  • Example: A student opting for budget-friendly laptops.

• Psychological Factors:

  • Motivation, perception, learning, beliefs, and attitudes.

  • Example: Choosing organic food due to health-conscious beliefs.

3. Stages of the Consumer Decision-Making Process

1. Problem Recognition:

   • Identifying a need or problem.

   • Example: Realizing the need for a new car due to frequent breakdowns.

2. Information Search:

   • Gathering information about possible solutions.

   • Example: Researching car models online.

3. Evaluation of Alternatives:

   • Comparing options based on features, prices, and reviews.

   • Example: Weighing the benefits of electric cars versus gas-powered cars.

4. Purchase Decision:

   • Selecting the product and making the purchase.

   • Example: Choosing a Tesla Model 3 after evaluating options.

5. Post-Purchase Evaluation:

   • Assessing satisfaction with the purchase.

   • Example: Writing a positive review after a satisfying experience.

4. Types of Buying Behavior

• Complex Buying Behavior:

  • High involvement with significant differences between brands.

  • Example: Buying a house.

• Dissonance-Reducing Buying Behavior:

  • High involvement but minimal brand differences.

  • Example: Choosing between similar washing machines.

• Habitual Buying Behavior:

  • Low involvement with little brand differentiation.

  • Example: Regularly buying the same brand of toothpaste.

• Variety-Seeking Buying Behavior:

  • Low involvement but noticeable brand differences.

  • Example: Trying different snack brands for variety.

Advertising Planning and Strategy

1. Steps in Advertising Planning

1. Identify Objectives:

   • Define what the campaign aims to achieve.

   • Example: Increasing brand awareness by 30% within six months.

2. Understand the Target Market:

   • Research audience demographics, behaviors, and preferences.

   • Example: Targeting environmentally conscious consumers for a sustainable product.

3. Analyze Market Conditions:

   • Assess competitors, market trends, and economic factors.

   • Example: Identifying a gap in eco-friendly household cleaning products.

4. Develop the Message:

   • Craft a message that resonates with the audience and reflects brand values.

   • Example: "Eco-cleaning made simple and safe for your home."

5. Select Media Channels:

   • Choose platforms that best reach the target audience.

   • Example: Using Instagram and Pinterest for visually appealing eco-friendly product ads.

6. Set the Budget:

   • Allocate resources based on campaign goals and expected ROI.

   • Example: Assigning 60% of the budget to digital ads and 40% to influencer marketing.

7. Implement the Campaign:

   • Launch ads, track performance, and adjust as needed.

   • Example: Monitoring click-through rates and adjusting messaging for better engagement.

8. Evaluate Results:

   • Analyze outcomes using metrics like ROI, reach, and conversion rates.

   • Example: Assessing whether the campaign led to a 20% increase in sales.

2. Characteristics of Effective Advertising Strategies

• Clarity:

  • Delivering a straightforward and easy-to-understand message.

  • Example: "Fast, Reliable, Affordable Internet Service."

• Relevance:

  • Aligning with the audience's needs and values.

  • Example: Highlighting energy savings for an eco-conscious audience.

• Engagement:

  • Using compelling visuals, stories, or calls to action.

  • Example: A video ad showing real-life use cases of the product.

• Consistency:

  • Maintaining uniform branding and messaging across platforms.

  • Example: Using the same tagline in TV, print, and online ads.

• Measurable Goals:

  • Setting specific objectives to track success.

  • Example: Achieving 1,000 new subscriptions in three months.

3. Ethical Considerations in Advertising

• Honesty:

  • Avoiding false claims or misleading information.

  • Example: Stating accurate product features and limitations.

• Transparency:

  • Clearly disclosing terms, conditions, and pricing.

  • Example: Highlighting subscription costs upfront in ads.

• Respect for Audience:

  • Avoiding offensive or inappropriate content.

  • Example: Creating ads sensitive to cultural differences.

• Avoiding Manipulation:

  • Not exploiting fears or insecurities.

  • Example: Promoting products positively without fear mongering.

• Social Responsibility:

  • Supporting causes that align with societal values.

  • Example: Partnering with environmental organizations for a cleanup campaign.

Digital Marketing

1. Definition and Importance of Digital Marketing

• Definition:

  • Digital marketing refers to promoting products or services through online platforms, using strategies like SEO, social media marketing, email campaigns, and digital advertisements.

• Importance:

  • Global Reach: Access to customers worldwide.

  • Cost-Effective: Lower advertising costs compared to traditional media.

  • Real-Time Analytics: Ability to track and optimize campaigns immediately.

  • Personalization: Tailored messaging for individual customers.

  • Engagement: Interactive platforms like social media foster two-way communication.

2. Digital Marketing Channels

• Search Engine Optimization (SEO):

  • Optimizing websites to rank higher on search engines.

  • Example: Using relevant keywords to improve visibility on Google.

• Content Marketing:

  • Creating and sharing valuable content to attract and retain audiences.

  • Example: Blogs, videos, and infographics on a company website.

• Social Media Marketing:

  • Promoting products through platforms like Instagram, Facebook, and Twitter.

  • Example: Running a giveaway campaign on Instagram to increase followers.

• Email Marketing:

  • Sending personalized messages to customers' inboxes.

  • Example: Weekly newsletters offering exclusive discounts.

• Pay-Per-Click (PPC) Advertising:

  • Paying for each click on an online ad.

  • Example: Google Ads campaigns targeting specific keywords.

• Affiliate Marketing:

  • Partnering with affiliates to promote products in exchange for commissions.

  • Example: Bloggers earning commissions for products they endorse.

3. Benefits of Digital Marketing

• Targeted Reach:

  • Reaching specific demographics based on age, location, and interests.

  • Example: Showing ads for gym equipment to fitness enthusiasts.

• Measurability:

  • Tracking metrics like clicks, conversions, and ROI.

  • Example: Using Google Analytics to measure website traffic from a campaign.

• Flexibility:

  • Adjusting campaigns in real-time based on performance data.

  • Example: Increasing ad spend for high-performing ads.

• Enhanced Engagement:

  • Interacting with customers through comments, likes, and shares.

  • Example: Responding to customer inquiries on social media.

• Cost Efficiency:

  • Achieving results with lower budgets compared to traditional media.

  • Example: A small business gaining visibility through targeted Facebook ads.

4. Trends in Digital Marketing

• Voice Search Optimization:

  • Adapting content for voice-activated devices like Alexa and Google Assistant.

  • Example: FAQs formatted as natural-language queries.

• Video Marketing:

  • Leveraging platforms like YouTube and TikTok for storytelling.

  • Example: Behind-the-scenes videos to build brand authenticity.

• Influencer Marketing:

  • Collaborating with influencers to reach niche audiences.

  • Example: A beauty brand sponsoring a popular makeup artist on Instagram.

• Artificial Intelligence (AI) in Marketing:

  • Using AI tools for customer segmentation and predictive analytics.

  • Example: Chatbots providing 24/7 customer service.

• Interactive Content:

  • Engaging users through polls, quizzes, and augmented reality.

  • Example: Virtual try-ons for sunglasses or clothing.

Consumer Behavior

1. Importance of Understanding the Customer’s Wants and Needs

• Customer-Centric Approach:

  • Businesses that focus on customer satisfaction build loyalty and drive repeat purchases.

  • Example: A brand offering personalized product recommendations based on purchase history.

• Effective Product Development:

  • Aligns product features with customer expectations.

  • Example: A company creating energy-efficient appliances to meet eco-conscious consumer demands.

• Tailored Marketing Strategies:

  • Crafting messages that resonate with customer values enhances engagement.

  • Example: Ads highlighting convenience for busy professionals.

• Competitive Advantage:

  • Meeting unmet needs distinguishes a business from competitors.

  • Example: A restaurant introducing gluten-free menu options in response to dietary trends.

• Customer Retention:

  • Addressing customer pain points builds long-term trust.

  • Example: Offering hassle-free returns to enhance the shopping experience.

2. The Five-Step Consumer Decision-Making Process

• Problem Recognition:

  • Customers identify a need or desire for a product or service.

  • Example: Realizing their current smartphone no longer meets performance needs.

• Information Search:

  • Consumers seek data to evaluate potential solutions.

  • Example: Reading online reviews and comparing products.

• Evaluation of Alternatives:

  • Consumers assess various options based on features, price, and value.

  • Example: Comparing two laptops to determine which offers better specifications for the price.

• Purchase Decision:

  • Customers choose a product and complete the transaction.

  • Example: Buying a laptop from an online retailer offering free shipping.

• Post-Purchase Behavior:

  • Customers evaluate satisfaction and decide whether to repurchase or recommend the product.

  • Example: Leaving a positive review after being satisfied with a product's performance.

Consumer Purchase Classifications

1. Types of Consumer Purchases and Levels of Consumer Involvement

• Routine Purchases:

  • Description: Frequent, low-cost purchases requiring minimal effort.

  • Consumer Involvement: Low; decisions are automatic or habitual.

  • Examples: Groceries, toiletries, basic household items.

• Limited Decision-Making Purchases:

  • Description: Occasional purchases requiring some research and comparison.

  • Consumer Involvement: Moderate; evaluates a few alternatives.

  • Examples: Clothing, small appliances.

• Extensive Decision-Making Purchases:

  • Description: High-cost, infrequent purchases needing significant research.

  • Consumer Involvement: High; due to financial/emotional investment.

  • Examples: Homes, cars, luxury vacations.

• Impulse Purchases:

  • Description: Unplanned, spontaneous buys driven by emotions or promotions.

  • Consumer Involvement: Low; situational triggers.

  • Examples: Candy at checkout, sale items.

2. Types of Consumer Products

• Convenience Products:

  • Description: Frequently purchased, low-effort items.

  • Examples: Snacks, drinks, cleaning supplies.

• Shopping Products:

  • Description: Items compared based on price, quality, or style.

  • Examples: Clothing, electronics.

• Specialty Products:

  • Description: Unique items with specific characteristics requiring extra effort.

  • Examples: Luxury cars, designer handbags.

• Unsought Products:

  • Description: Products not actively sought until needed.

  • Examples: Insurance, funeral services.

Marketing Research of Advertising

1. The Marketing Research Process

• Steps:

  • Identify/Define the Problem: Clearly articulate the issue or opportunity.

    • Example: Understanding why a product isn’t meeting sales expectations.

  • Develop the Research Design: Plan the approach, selecting methodologies like surveys or experiments.

    • Types:

      • Exploratory Research: Provides initial insights.

      • Descriptive Research: Details current trends.

      • Causal Research: Examines cause-and-effect relationships.

  • Determine the Method for Collecting Data: Choose data collection techniques.

    • Example: Online surveys for broad reach or focus groups for deeper insights.

  • Collect the Data: Execute the collection process.

    • Example: Distribute surveys or observe customer behaviors.

  • Analyze the Data: Process and interpret findings.

    • Tools: Statistical software, data visualizations.

    • Example: Identifying trends in customer preferences.

  • Report/Present the Data: Share actionable insights through presentations or written reports.

    • Example: Presenting customer feedback to stakeholders.

2. Benefits and Limitations of Marketing Research

• Benefits:

  • Informed Decision-Making: Provides data-driven insights for strategies.

    • Example: Identifying new market opportunities.

  • Reduced Risk: Helps avoid costly mistakes.

    • Example: Testing a campaign before a full-scale launch.

  • Improved Customer Understanding: Identifies consumer needs and behaviors.

    • Example: Discovering a preference for eco-friendly products.

  • Competitive Advantage: Reveals opportunities and threats.

    • Example: Learning competitors’ weaknesses.

• Limitations:

  • Cost: High expenses for large-scale studies.

    • Example: Nationwide surveys.

  • Time-Intensive: Delays in decision-making due to long research processes.

    • Example: Prolonged focus group sessions.

  • Data Quality Issues: Risk of inaccurate or biased data.

    • Example: Misleading survey responses.

  • Limited Scope: Cannot always predict future market changes.

    • Example: Trends that fade quickly.

3. Primary and Secondary Market Research

• Primary Market Research:

  • Definition: Collecting new, original data.

  • Methods: Surveys, interviews, focus groups.

  • Benefits: Tailored to specific research goals.

  • Example: Conducting customer satisfaction surveys post-launch.

• Secondary Market Research:

  • Definition: Analyzing pre-existing data.

  • Sources: Industry reports, government data, sales records.

  • Benefits: Cost-effective and quick to obtain.

  • Example: Reviewing market growth trends from industry studies.

Developing an Effective Sales Promotion Strategy

1. Consumer Sales Promotions

• Definition: Tactics aimed at encouraging immediate consumer purchases and fostering brand loyalty.

• Types:

  • Coupons: Discounts redeemable at purchase.

    • Example: "20% off your next order" coupon.

  • Price Deals: Temporary reductions in price.

    • Example: "Buy one, get one free" offers.

  • Rebates: Refunds given after purchase with proof.

    • Example: A $50 mail-in rebate on electronics.

  • Premiums: Free or discounted items included with a purchase.

    • Example: A free mug with coffee beans.

  • Loyalty Marketing Programs: Reward systems for repeat customers.

    • Example: Airline frequent flyer programs.

  • Sampling: Distributing free product samples.

    • Example: Grocery store tastings for a new food product.

  • Contests: Competitions requiring skill or effort.

    • Example: A photography contest with a prize.

  • Sweepstakes: Random drawings for prizes.

    • Example: Entering a code from a soda bottle for a vacation giveaway.

  • Point-of-Purchase (POP) Displays: Eye-catching displays near checkout.

    • Example: A stand-alone snack display at a grocery store.

2. Trade Sales Promotions

• Definition: Strategies targeting intermediaries (retailers, wholesalers) to encourage product stocking and promotion.

• Types:

  • Push Money: Incentives for sales staff to promote specific products.

    • Example: Bonuses for selling high-end appliances.

  • Deal Loader: Incentives tied to bulk purchases.

    • Example: A retailer receiving free display racks for bulk orders.

  • Trade Allowance: Discounts for retailers featuring specific products.

    • Example: A 15% discount for in-store promotions.

Consumer-Oriented Advertising and Sales Promotion

1. Components of the Communication Process

• Sender: The originator of the message (e.g., a brand creating an ad campaign).

• Encoding the Message: Translating ideas into symbols, words, or visuals.

  • Example: Designing a commercial with relatable imagery and a catchy slogan.

• Communication Channel: Medium delivering the message (e.g., TV, social media).

• Receiver: The audience interpreting the message.

  • Example: A young adult viewing a TikTok ad.

• Decoding the Message: The process by which the audience understands the message.

  • Example: Recognizing an ad for its humor or product benefits.

• Noise: Any distraction or interference with the message.

  • Example: Technical glitches during an online ad.

• Feedback: The audience's response (e.g., clicks, purchases, comments).

2. Purposes of Advertising and Promotional Communication

• Inform: Educate consumers about new products or services.

  • Example: A tech brand showcasing new smartphone features.

• Persuade: Influence purchasing decisions by highlighting benefits.

  • Example: A detergent ad emphasizing superior stain removal.

• Remind: Keep brands in the audience's mind for future purchases.

  • Example: Holiday-themed ads from Coca-Cola.

• Build Relationships: Strengthen consumer trust and loyalty.

  • Example: Emotional storytelling in campaigns about shared values.

3. Purpose of Consumer-Oriented Sales Promotions

• Stimulate Immediate Purchases: Create urgency with discounts or deals.

  • Example: "Limited time only" sale events.

• Encourage Product Trials: Allow consumers to test products risk-free.

  • Example: Free samples at stores or during events.

• Boost Brand Loyalty: Reward repeat purchases.

  • Example: Points-based loyalty programs.

• Increase Market Share: Gain competitive advantages.

  • Example: Offering unique value through rebates or exclusive bundles.

4. How Direct Marketing is Used to Reach Consumers

• Personalization: Tailor messages based on consumer behavior.

  • Example: Sending a birthday discount email.

• Multi-Channel Reach: Use email, SMS, or social media ads for direct engagement.

  • Example: Texting coupon codes to smartphone users.

• Encourages Immediate Action: CTAs prompt clicks, purchases, or sign-ups.

  • Example: "Shop Now" buttons in email promotions.

• Measurable Results: Track campaign performance with metrics.

  • Example: Analyzing open rates and conversions for email campaigns.

Types of Communication

1. Importance of Interpersonal Communication in Advertising and Promotion

• Definition: Direct, two-way interaction with customers.

• Benefits:

  • Personalized Messaging: Builds strong connections.

    • Example: A sales agent addressing specific customer needs.

  • Immediate Feedback: Allows real-time adjustments to customer concerns.

    • Example: Resolving product-related queries on a call.

  • Trust Building: Fosters loyalty through direct engagement.

    • Example: Live demonstrations during trade shows.

2. Other Types of Communication Used by Businesses

• Mass Communication: Reaching large audiences via platforms like TV and radio.

  • Example: National commercials during a major sporting event.

• Digital Communication: Online methods including websites and social media.

  • Example: Interactive Instagram ads or email campaigns.

• Nonverbal Communication: Visual cues, branding, and tone.

  • Example: Bright colors in an ad conveying energy and positivity.

• Internal Communication: Coordinating within an organization.

  • Example: Team briefings for new product launches.

• Public Relations: Managing brand image with earned media.

  • Example: A press release about a company's charitable efforts.

• Crisis Communication: Addressing public concerns during challenges.

  • Example: A CEO issuing a statement about a product recall.

Effective Advertising and Promotional Messages

1. The Four C’s of Communication

• Comprehension: Ensuring the message is clear and relatable.

  • Example: A food delivery ad explaining app usage in simple terms.

• Connection: Establishing an emotional or practical bond with the audience.

  • Example: A bank ad featuring stories about achieving life goals.

• Credibility: Building trust through honesty and authenticity.

  • Example: A skincare ad sharing dermatologist-approved claims.

• Contagiousness: Creating memorable and shareable messages.

  • Example: A viral campaign with a catchy slogan or humorous tone.

2. How to Create Effective Advertising Messages

• Understand the Target Audience: Research preferences and behaviors.

  • Example: Ads for tech gadgets appealing to young, trend-focused consumers.

• Define Objectives: Set goals like increasing sales or building brand awareness.

  • Example: A campaign aiming to boost holiday sales.

• Focus on Benefits: Highlight how the product improves consumers’ lives.

  • Example: "Cuts cleaning time in half!" for a vacuum cleaner.

• Use Visual Appeal: Include eye-catching imagery and design.

  • Example: Bold colors and dynamic images in outdoor ads.

• Include a CTA: Guide consumers to act.

  • Example: "Sign Up Today!" or "Learn More."

Legal and Ethical Issues Affecting Advertising

1. Need for Government Regulation of Advertising and the Role of the Federal Trade Commission (FTC)

• Why Regulation is Needed:

  • Prevent Deception: Ensures truthful claims.

    • Example: Verifying health benefits in diet pill ads.

  • Protect Public Interest: Avoids harmful messaging, especially to vulnerable groups.

    • Example: Restricting tobacco ads targeting minors.

  • Ensure Fair Competition: Stops false comparisons or defamatory claims.

    • Example: Regulating comparative ads in the tech industry.

• FTC’s Role:

  • Truthful Claims: Requires evidence for claims (e.g., clinical studies for supplements).

  • Endorsement Rules: Enforces disclosure of paid partnerships.

  • Child-Focused Advertising: Monitors to prevent manipulative messaging.

2. Purpose of Other Government Regulatory Agencies

• FCC: Oversees broadcast ads, ensuring decency and fairness.

  • Example: Monitoring political ads for compliance.

• FDA: Regulates claims about food, drugs, and cosmetics.

  • Example: Requiring side effect disclosures in prescription drug ads.

• CPSC: Ensures accurate advertising about product safety.

  • Example: Reviewing safety claims for children’s toys.

• EPA: Monitors environmental benefit claims.

  • Example: Investigating exaggerated eco-friendly labeling.

Ethics in Advertising

1. Ethical Aspects of Advertising

• Key Principles:

  • Truthfulness: Accurate claims without exaggeration.

    • Example: A detergent ad showing realistic stain removal.

  • Transparency: Disclose all relevant details.

    • Example: Fine print explaining conditions for discounts.

  • Respect for Audience: Avoid exploiting vulnerable groups.

    • Example: Ethical ads for children's products avoiding manipulation.

  • Cultural Sensitivity: Avoid offensive stereotypes.

    • Example: Inclusive representation in global campaigns.

2. How the FTC Assures Truth in Advertising

• Mechanisms:

  • Claim Verification: Requires substantiation for ads.

    • Example: Testing effectiveness claims in weight-loss ads.

  • Deceptive Ads: Penalizes misleading practices.

    • Example: Fining companies for false product endorsements.

  • Transparency Enforcement: Ensures disclosure of material connections.

    • Example: Influencers tagging sponsored posts.

Advertising in a Multicultural Market (Global Vision)

1. Factors That Impact Global Marketing

• Cultural Differences:

  • Language, traditions, and norms influence how ads are received.

  • Example: A humorous ad in one country might offend another culture.

• Economic Environment:

  • Economic stability and purchasing power shape ad strategies.

  • Example: Promoting premium products in high-income regions.

• Legal and Regulatory Environment:

  • Different laws govern advertising standards across countries.

  • Example: Restrictions on alcohol ads in specific nations.

• Technological Infrastructure:

  • Access to internet and devices affects media channels.

  • Example: Mobile-focused campaigns in high smartphone-use regions.

2. Global Marketing Challenges Facing Marketers

• Cultural Sensitivity:

  • Misunderstandings or misinterpretations can harm brand image.

  • Example: Poor translations altering intended meaning.

• Complex Market Research:

  • Gathering reliable data across regions is costly and time-consuming.

• Regulatory Compliance:

  • Varying laws make maintaining consistency difficult.

• Brand Consistency vs. Localization:

  • Balancing global brand identity with local relevance.

3. Advertising Needs for Different Parts of the World

• Western Markets: Emphasis on individuality and convenience.

  • Example: Ads for time-saving gadgets.

• Asian Markets: Focus on family values and traditions.

  • Example: Festive ads during Lunar New Year.

• Middle Eastern Markets: Respect cultural and religious norms.

  • Example: Ads aligned with Ramadan values.

• African Markets: Highlight affordability and community-oriented themes.

  • Example: Promoting solar-powered devices for rural areas.

Diversity and Advertising

1. Impact of Diversity on Advertising

• Inclusive Representation:

  • Showcasing diverse demographics fosters connection and trust.

  • Example: A skincare brand featuring various skin tones.

• Targeted Campaigns:

  • Tailored messaging for specific ethnic or cultural groups.

  • Example: Spanish-language ads for Hispanic audiences.

• Authenticity:

  • Genuine representation builds credibility.

  • Example: Real-life stories in ad campaigns.

2. Characteristics of Growing Ethnic Markets

• Rapid Population Growth:

  • Ethnic communities are expanding faster than general populations.

  • Example: Hispanic Americans shaping U.S. cultural trends.

• Rising Purchasing Power:

  • Increased spending by ethnic groups boosts market potential.

  • Example: Luxury brands targeting high-income Asian American households.

3. Advertising Needs for Different Generations

• Younger Generations:

  • Prioritize sustainability and social responsibility.

  • Example: Ads emphasizing eco-friendly practices.

• Older Generations:

  • Seek reliability and simplicity.

  • Example: Ads for tech products showcasing user-friendly features.

History of Advertising

1. How Advertising Has Changed to Meet Changing Times

• From Print to Digital:

  • Transition from newspapers and posters to social media and streaming.

  • Example: Print classifieds replaced by targeted Google Ads.

• Globalization:

  • Localization of ads for international markets.

  • Example: Adapting campaigns to cultural norms in each country.

• Shorter Attention Spans:

  • Emphasis on concise, impactful messaging.

  • Example: 6-second video ads on YouTube.

2. Inventions That Have Impacted Advertising

• Printing Press: Enabled mass production of newspapers and posters.

  • Example: Revolutionary use in the 1400s for printed ads.

• Radio: Audio storytelling became a primary channel.

  • Example: Early 20th-century jingles for household products.

• Internet: Transformed reach with digital targeting.

  • Example: Search engines optimizing ad visibility.

Influences on Advertising

1. Environmental Influences on Advertising

• Economic Environment:

  • Advertising adapts to economic conditions like inflation or growth.

  • Example: Budget-friendly campaigns during recessions.

• Technological Advancements:

  • Emerging tools influence ad design and delivery.

  • Example: AI-driven ad personalization on social platforms.

• Cultural and Social Trends:

  • Ads align with evolving societal values.

  • Example: Sustainability-focused campaigns reflecting environmental awareness.

• Political and Legal Environment:

  • Regulations shape ad content and media use.

  • Example: Restrictions on cigarette ads in specific countries.

2. Consumer Influences on Advertising

• Demographics:

  • Age, gender, and income define target groups.

  • Example: Luxury brands catering to high-income professionals.

• Psychographics:

  • Interests and values influence ad tone.

  • Example: Outdoor gear ads for adventure enthusiasts.

• Consumer Behavior:

  • Buying habits dictate ad strategy.

  • Example: Flash sales promoting urgency for low-involvement products.

• Demand for Transparency:

  • Authentic, honest advertising is valued.

  • Example: Detailed product sourcing for eco-conscious consumers.

The Advertising Industry and Careers

1. How the Advertising Industry Works

• Key Components:

  • Advertisers: Businesses promoting products.

    • Example: Coca-Cola launching a beverage campaign.

  • Agencies: Firms creating ad strategies.

    • Example: BBDO designing creative content.

  • Media Platforms: Channels for ad delivery.

    • Example: Facebook, TV, or newspapers.

• Processes:

  • Research → Creative Development → Media Planning → Execution → Analytics.

2. Careers in the Advertising Industry

• Creative Roles:

  • Copywriter: Crafts slogans and ad text.

    • Example: Writing "Just Do It" for Nike.

  • Art Director: Oversees visual campaigns.

• Strategic Roles:

  • Account Manager: Manages client relations.

  • Media Planner: Chooses ad channels.

• Technical Roles:

  • Digital Specialist: Focuses on social media ads.

  • Data Analyst: Evaluates ad performance.

3. Characteristics Necessary for a Successful Career in Advertising

• Creativity:

  • Develop unique, engaging concepts.

• Adaptability:

  • Respond to shifting trends and technologies.

• Collaboration:

  • Work with diverse teams, from clients to designers.

• Resilience:

  • Manage tight deadlines and client feedback.

4. Skill Set Needed for a Successful Advertising Career

• Technical:

  • Proficiency in design tools and analytics.

• Creative:

  • Strong storytelling and visual design capabilities.

• Analytical:

  • Ability to assess campaign success using data.

• Communication:

  • Clear, persuasive messaging.

The Internet and Advertising

1. Types of Internet Advertising

• E-mail Advertising:

  • Personalized messages delivered to inboxes.

  • Example: Newsletters with discounts for subscribers.

• Banner Ads:

  • Graphic displays on websites linking to products.

  • Example: Fashion ads on style blogs.

• Pop-up Ads:

  • Attention-grabbing overlays during browsing.

  • Example: Discount offers for new visitors.

• Search Engine Ads (PPC):

  • Ads on search engine result pages.

  • Example: Travel companies targeting "cheap flights."

• Social Media Ads:

  • Interactive content tailored to users.

  • Example: Sponsored Instagram posts.

2. Factors Businesses Should Consider When Using Internet Advertising

• Hits: Total website server requests.

  • Example: Indicating ad-driven traffic volume.

• Page Views: Times a page is loaded.

  • Example: Measuring content popularity.

• Visits: Total individual sessions.

  • Example: High sessions indicating engagement.

• Unique Visitors: Distinct users accessing the site.

  • Example: Evaluating audience size.

Self-Regulation in Advertising

1. Concept of Self-Regulation and Its Application in the Advertising Industry

• Definition: Voluntary industry efforts to monitor and enforce ethical standards without direct government involvement.

• Applications:

  • Industry Guidelines: Codes like those from the Advertising Self-Regulatory Council (ASRC).

    • Example: Children’s Advertising Review Unit (CARU) ensures ads targeting kids are truthful.

  • Transparency: Clear sponsorship disclosures.

    • Example: Influencers labeling posts as “#ad.”

  • Truth and Accuracy: Ads must be evidence-based.

    • Example: Proving health claims for dietary supplements.

  • Review and Enforcement: Complaints lead to investigations and corrective actions.

    • Example: Requiring changes to misleading environmental claims.

2. How Consumers Can Regulate Business Practices

• Methods:

  • Filing Complaints: Report deceptive ads to the FTC or Better Business Bureau.

  • Social Media: Highlight unethical practices publicly.

    • Example: Viral posts calling out greenwashing.

  • Boycotting: Avoid products from unethical brands.

  • Writing Reviews: Share feedback to guide others.

    • Example: Warning consumers about exaggerated product claims.

  • Advocating for Change: Support campaigns promoting fair practices.

Cross-Cultural Communication

1. Differences Between Verbal and Nonverbal Communication in Other Cultures

• Verbal:

  • Language: Words and grammar vary.

    • Example: Indirect speech in Japan versus directness in the U.S.

  • Context: High-context cultures rely on nonverbal cues (e.g., China); low-context cultures prioritize explicit words (e.g., Germany).

• Nonverbal:

  • Gestures: Vary in meaning across cultures.

    • Example: Thumbs-up is positive in the U.S., offensive in some regions.

  • Personal Space: Proximity differs.

    • Example: Closer interactions in Latin America; more distance in Scandinavia.

  • Eye Contact: Confidence in the West; respect in Asia through limited contact.

2. Importance of the Translation Process in Global Marketing

• Accurate Messaging:

  • Preserves intended meaning.

  • Example: Avoiding errors like KFC’s slogan misinterpretation in China.

• Avoiding Miscommunication:

  • Prevents offense or confusion.

  • Example: Tailoring idioms for cultural relevance.

• Cultural Relevance:

  • Aligns ads with local values.

  • Example: Modifying images for modesty in Middle Eastern markets.

• Building Trust:

  • Demonstrates respect for the audience.

  • Example: Using local dialects or culturally significant symbols.