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Question 1

DAGMAR

Answer 1

Defining Advertising Goals for Measure Advertising Results

Question 2

What makes a good operational objective?

Answer 2

1.Communication (behavioral sales or market share) 2.Well-Defined target 3.Measurable 4.Time frame 5.Benchmark (Current Level) 6.Feasible (Realistic)

Question 3

Market Share

Answer 3

(Company/Industry)

Question 4

What we know about Market Share

Answer 4

• Tells us how well we are doing against competition
• Helps assess primary and secondary domain.
• Market Share increases from new category users are less costly then stealing share from competitors.

Question 5

Why we look at market share

Answer 5

• Market share losses may signal long term problems.
• Firms with very low market share may not be viable
• Examining mkt. share trends may indicate future problems or opportunities

Question 6

Hierarchy of Effects (Stages)

Answer 6

1. Awareness
2. Knowledge
3. Liking
4. Preference
5. Conviction
6. Purchase

Question 7

Marketing Concept

Answer 7

The key to profitably for a firm is to identify customer wants and needs and satisfy those wants and needs through products and their offerings

Question 8

Market Segmentation

Answer 8

The process of breaking down the overall market into groups of consumers with different buying requirements

Question 9

Market Segmentation Steps

Answer 9

Dividing Market into segments

Choosing Target(s)

Question 10

Attractive Market Segments are…

Answer 10

Measurable

Accessible

Profitable

Unmet Needs

Question 11

Advertisers use segmentation to figure out…

Answer 11

1. Who to target
2. What to say
3. Where to say it

Question 12

BDI (Brand Development Index)

Answer 12

Compares Brand Sales of a market to total sales

BDI= (% of brands total sales/% of US Population) x 100

Question 13

CDI (Category Development Index)

Answer 13

Compares category sales of a particular market to total sales

CDI=(% of Product Categpry Sales/%US Population) x 100

Question 14

80/20 Rule

Answer 14

20% of the Users use 80% of the product

Question 15

Problems with going after heavy users…

Answer 15

• Often price conscious
• Often loyal (to competition)
• Same media habits as others
• Majority Fallacy (going after largest group and thinking that they are most profitable)

Question 16

D’arcy’s

M.A.P.S.

Answer 16

Marketing and Advertising planning system

Question 17

Brand Franchise Model:

Question 18

MAPS Purpose

Answer 18

MAPS is spread out between the Situation Analysis and Creative Strategy

The real purpose is to

Facilitate communication with client

Give Direction to the creative team

Assure that creative is aligned with objectives

Question 19

Parts of the S Shaped Response Function

Answer 19

1. Min- Some Sales with no advertsing
2. Lagged Effect: It takes time for ads to break through the clutter
3. Period of increasing returns
4. Max-Saturation Point

Question 20

Ad Sales Ratio

Answer 20

Ad $/Sales $

Ranges from 2% to 12%

Question 21

Budgeting Process Stages

Answer 21

1. Determine expenditure level

2 Allocate budget

Question 22

Influences on Ad Budget Size

Answer 22

Items Charged

Target Size/ SOM

Clutter/Competition

Nature of Product

Ad Objective

Question 23

Advertising Response Cure: Downward Concave Curve

Answer 23

1. Early Exposures are most Effective
2. Little new info provided with additional exposures
3. So, incremental value of adversing decreasing

Question 24

Components of an Ad Budget

Answer 24

How much to spend-Expenditure

When- Allocation

Where- Allocation

Why- Allocation