Advertising & Marketing Flashcards
What is marketing?
Marketing is about managing key aspects of an organisation’s environment and includes a wide variety of strategic and manager activities
Management of exchange relationships. Marketing is the business process of creating relationships with and satisfying customers.
What does the American marketing Association say marketing is
The activity set of instructions and processes for creating, communicating, delivering and exchanging offerings that have value for customers clients partners and so
What is the two fold goal of marketing
To attract new customers by promising superior value
To keep and grow current customers by delivering value and satisfaction and exchanges that result in relationships
What determines If marketing has been successful
Whether marketing has been successful or not depends on whether the purchaser has acquired a meaningful advantage from the seller
What is the target market
Customers on whom and organisation focuses its marketing affects
What is a customer
Someone who purchases products from the seller
What are needs
States of felt deprivation
Individual needs: knowledge and expression
Basic physical needs: food, clothing, safety
Social needs: belonging and affection
What are wants
The form human needs take as they are shaped by culture and personality
For example a person needs food but wants takeaway
What are demands
The human wants that are backed up by buying power
What is the marketing process
(Create value for customers and build relationships)
Understand the marketplace and customer needs and wants
Design a customer value-driven marketing strategy
Construct an integrated marketing program that delivers superior value
Engage customers build profitable relationships and create customer delight
(Last stage - capture value from customers in return)
Create profits and customer equity
What is the marketing mix?
More than just advertising and selling a product - involves a range of factors
Product
Price
Distribution
Promotion
What are the 8P’s?
- Place
- Product
- Partnerships
- Processes
- Physical evidence
- People
- Promotion
- Price
What is the place variable?
To satisfy customers products must be available at the right time and in convenient location
What is the price variable?
Relates to the decisions and actions associated with establishing pricing objectives and policies and determining product prices
What is the promotion variable?
Activities used to inform individuals or groups about the organisation and its products
What is the people variable?
Refers to and includes the people involved with preparing, producing and presenting the product
What is the physical evidence variable?
The elements associated with the product used to demonstrate the product and what it is.
E.g. decor lighting and other elements
What is the processes variable?
Involves things such as automation or use of self service technology
What is the partnership variable?
Establishing, maintaining and nurturing partnerships throughout the supply chain
What is advertising
A paid nonpersonal communication about an organisation and its products transmitted to a target audience through mass media
What are the key advertising decisions
Four major decisions need to be considered when developing an advertising plan
- objectives setting
- budget decisions
- message and media decisions
- advertising evaluation
What is the advertising decision of objectives
A specific communication task to be accomplished with a specific target audience during a specific time period
Is typically the first step and should be based on past decisions about the target market position and the marketing mix
Can be used to inform persuade or remind customers
What is the product variable?
A good, service, idea or a combination
What is informative advertising
Mostly used when introducing a new product it is to build primary demand
For example telling the market about a new product explaining how the product works or describing available services and support
What is persuasive advertising
Important when competition is high the goal is to build selective demand
Comparative or attack advertising: company directly or indirectly compares its brand to one or more other brands that already exists
For example encouraging switching to a brand or changing customer perceptions of product value
What is reminder advertising
Important for mature products as it helps to maintain customer relationships and keeps them thinking about the products
For example Reminding them where they can buy the product
What is the advertising decision of a budget
It’s the total amount of money allocated for advertising over a specific time period
Budgets differ depending on how new the product is if it is new are a larger advertising budget is needed to build awareness and gain consumer trial also brands that have many competitors must be advertise more heavily to be noticed
What are the key factors to take into account when making a budget decision
Geographical size of the market and distribution of buyers
Type of product
Industry norms regarding advertising frequency
The desired position of a company
What is the percent of sales approach?
Benefits? Issues?
Adjust past sales according to expected increase or decrease. The budget will be determined by the proportion of this adjustment
This is a very common method as it is easy to implement
It could lead to a vicious cycle when reduction in expected sales leads to a reduced budget thus further diminishing sales
What is the objective and task approach?
Benefits? Issues?
Determines campaign objectives and lists tasks that will achieve this objective the total budget is determined by the total cost of these tasks
It is the most logical approach and it is useful for setting the budget of a new product
It is hard to estimate which tasks will achieve the campaign objective
What is the competition matching approach?
Benefits? Issues?
The aim is to match the major competitors budgets or to allocate the same percentage of sales for advertising that competitors do
Good to be aware of competitors actions.
This method is not enough as the only determinant for a budget since competitors might have different promotional objectives and resources. Also misses the opportunity to stand out and develop a unique selling proposition
What is the arbitrary approach?
Benefits? Issues?
a high level executive in the company states how much to spend on advertising for a certain period.
It isn’t a scientific technique. Past experience in recent marketing research should be allowed to influence the budget
Often leads to underspending or overspending
What are message advertising decisions
Planning of a message and content
Plain straightforward outlines of benefits and position points to be stressed
These can be:
Meaningful - pointing out benefits that make a product more desirable or interesting to consumers
Believable - consumers must believe that products or services will deliver the promised benefits
Distinctive - Tell how the product is better than competing brands
When it comes to message advertising decisions what role do execution styles play
The approach style tone words and format used for executing an advertising message can be presented in many execution styles
Such as:
Slice of life. Lifestyle. Fantasy. Mood or image. Musical. Personality symbol. Technical expertise. Scientific evidence. Testimonial evidence or endorsement.
What is the slice of life execution style
People using the product in a normal setting
What is the lifestyle execution style
How the product fits in with particular lifestyles
What is the fantasy execution style
Creates fantasy around the product or how it’s used
What is the mood or image execution style
Build a mood or image around the products such as beauty or love
What is the musical execution style
Characters singing about the product
What is the personality symbol execution style
Creates a character that represents the product
What is the technical expertise execution style
Companies expertise in making the product is displayed
What is the scientific evidence execution style
It presents scientific evidence that the brand is better
What is the testimonial evidence or endorsement execution style
It features highly believable or likeable sources
What are advertising decisions are needed in relation to media
There are four steps that need to be considered
- Reach, frequency, impact, and engagement
- Choosing the media type
- Selecting media vehicles
- Choosing media timing
Television marketing? Advantages and limitations?
There is a good mass marketing coverage a low cost per exposure and it combined site sound in motion which appeals to the senses
However there is high absolute costs high clutter and less audience selectivity
Digital, mobile, and social media?
Advantages? Disadvantages?
High selectivity.
Low-cost
Immediate
Engagement capabilities
However potentially low impact
High audience control of content and exposure
Newspapers? Advantages and disadvantages?
There’s flexibility high believability and broad acceptability
Shortlife poor reproduction quality and a small pass along audience
Direct mail?
High audience selectivity
No ad competition
Allows personalisation
Relatively high cost per exposure and junk mail
Magazines?
High geographic and demographic selectivity
Hugh credibility
High quality reproduction
Long life and good pass a long readership
High cost and no guarantee of the position
Radio?
Good local acceptance high geographic demographic selectivity and low-cost
Audio only
Fleeting exposure
Lower attention and fragmented audiences
What is media timing
It is deciding the schedule of the advertisement overtime
Specific timeframes may be relevant to specific ads
When can advertising decisions be evaluated and assessed on effectiveness?
Before the campaign, during the campaign (inquiries) and after the campaign (recognition test, unaided recall test)
Which of the big 5 personality factors have been associated with the liking component of persuasion?
Those high in agreeableness
Which of the big 5 personality traits is associated with the scarcity component of persuasion?
Those high in neuroticism
Which personality trait does reciprocity have the biggest effect on?
Conscientiousness and neuroticism
What can the big 5 personality traits be clustered into?
Three personality types.
Resilient, uncontrolled and overcontrolled
What is a resilient personality?
Lower than average neuroticism and higher than average in the other 4
What is an overcontrolled personality?
Higher than normal in neuroticism and lower in the other 4 traits
What is an undercontrolled personality?
Lower than average conscientiousness and agreeableness and higher than average openness, extraversion and neuroticism
What did high scores on all dark triad personality traits more susceptible to?
Scarcity. They are more likely to purchase something for themselves or do something if they think that they have limited time to do so
Least to reciprocity and authority.
What did a socially apt personality label mean?
Higher extraversion, agreeableness, conscientiousness and openness.
More susceptible to the commitment strategy
What is the theory of reasoned action?
Behavioural intentions are decided by attitude and norms. Behaving based on pre-existing attitudes
What is the theory of planned behaviour?
Whether people think it is easy or difficult for them to perform the specific behaviour.
Performance is determined by the individuals intentions. Influenced by values and perceived ease.
What is the technology acceptance model? (TAM)
Predicts individual attitude towards accepting certain technology
- usefulness
- how easy it is to use
What is the self validation hypothesis?
The confidence in which thoughts are held is critical because it determines the extent to which thoughts influence attitudes.
If more confidence = more likely to influence decisions
What is the learning approach to persuasion?
To be influenced, the target first needs to learn to understand messages conveyed
What is the consistency approach to persuasion?
People prefer coherent associations among their beliefs, attitudes etc.
-cognitive dissonance: inconsistent thoughts, beliefs and attitudes. People who hold inconsistent thoughts and behaviours are said to experience psychological discomfort. Stronger dissonance = stronger attempts to reduce it.
What is the selective exposure hypothesis?
Selectively exposing themselves to information that doesn’t contradict thoughts
What is the self perception approach to persuasion
Similar to the consistency approach but claims that change occurs not because of psychological discomfort but because of self observation
What is the attitudes and behaviour theory of persuasion?
Includes:
- theory of reasoned action: proposes the best predictor of voluntary action is the intention.
- theory of planned behaviour: whether people think it will be easy or difficult to perform behaviour
What is the cognitive approach to persuasion?
Persuasion is mediated by the content of attitude relevant cognitions elicited.
What is the heuristic and systematic processing approach to persuasion?
Similar to the elaboration likelihood model but there is two different processing modes (systematic and heuristic)
May operate independently or simultaneously
What happens if message receivers are unmotivated?
They will use heuristic processing.
What is the additivity hypothesis?
Systematic and heuristic processing independently affect attitudes and do not contradict each other.
What is the attenuation hypothesis?
Systematic processing suppresses heuristic processing because it provides more information
What is the bias hypothesis?
If message contains both weak and strong arguments, it is possible that initial heuristic processes will bias systematic processes.
What is the contrast hypothesis?
Violations of expectations based on heuristic processing can lead to contrasting systematic processing.
What is the uni model?
A single process alternative to persuasion accounts. According to this theory, systematic and heuristic processing modes incorporate functionally equivalent types of evidence. Suggests that all information relative to the source can be considered evidence that individuals can take into account to reach a conclusion.
What is the HSM (heuristic and semantic model) sufficiency principle?
People attempt to attain sufficient confidence in their judgements and attitudes.
