Midterm Flashcards
List some reasons why advertising is becoming obsolete
- Advertising Clutter (a greater number of vices and a smaller impact)
- Consumers have gotten fed up
- FCC regulations, public health experts demands
- No useful purpose, can’t tell whether the money were spent productively (resulted in the increase of sales)
What is the “Old Good” Advertising Model
- A distinct and separate function in the company, usually subordinate one
- Identify groups of potential customers
- Convince them to buy product or service
- Engage in image-making
a. Project a false sense of the company and its offerings
b. Lure the customers into the company’s grasp - Sell mass-produced goods to a mass market via mass media
What is the challenge for advertisers trying to reach Gen Z’s and Millennials’
- Ignore linear TV and social media ads
- 40% of voters ages 18-37 saw no political ads last fall
- Growing mistrust of advertising
How should advertisers reach young adults?
- Make your audience the star on Instagram
- Take a stand on big issues
- 72% of Gen Z will pay extra for companies contributing to social and environmental change
- EQ Provide Emotional Quotient
Advertising today…
- Is not a function, it’s a way of doing business
- A tool in the Marketing Communications Toolbox
Explain Integrated Marketing Communications
- The voice of the company and its brands
- Coordination and integration of consistent messages from a variety of sources
- Integrates the customer into the design of the product
- A systematic process for interaction that will create substance in the relationship
Explain how integrated marketing communication contrast with practices from the past
In the past ad agencies created campaigns without thinking how advertisements worked with other marketing communications.
What are the 4 P’s of the Marketing Mix
- Product
- Price
- Promotion
- Place
Define Advertising and its goals
A paid, mediated form of communication from an identifiable source, designed to:
- Inform consumers
- Persuade them to buy, try, or increase a products use
- Build value, brand preference, and loyalty
What are the four distinct groups/Organizations in Advertising
- Advertisers (clients)
- Advertising Agencies
- Suppliers
- Media
Organizations in Advertising - explain Advertisers (clients)
Companies that sponsor advertising for themselves and their products
Organizations in Advertising - explain Advertising agencies
Develop and prepare advertising plans, ads, and other promotional tools, as well as media plan.
Organizations in Advertising - explain Suppliers
Assist advertisers and agencies in the preparation of advertising materials
Organizations in Advertising - explain Media
Sells time (TV&radio), space (print, outdoor), or both (digital media) to present an advertisement to their target audience
What are some creative tasks preformed in an ad Agency?
- Copywriters
- Art Directors
- Creative Director
- Production Department
- Traffic Department
What do copywriters do?
Create the words and concepts for ads and commercials
What do art directors do?
Along with graphic designers and production artists, determine how an ad’s verbal and visual symbols will fit together
What does a creative director do?
Assigned to a client’s business and oversees a creative team of agency copywriters and artists responsible for generating the creative product for that client.
What is the production department responsible for?
Managing the transformation of creative concepts into finished advertisements and collateral materials.
What is the traffic department responsible for?
Coordinates all phases of production and ensures completion before the deadline
-Often the first stop for entry-level college graduates
What is the typical departmental organization for an advertising agency?
From top to bottom: -General Manager (1st level) -Executive assistant (2nd level) Everything after here is 3rd level -Finance Manager -Operations Manager -Account Planner -Account Director -Media Supervisor -Creative Director
Advertising can be geographically grouped into?
- Local
- Regional
- National
- Transnational
What is local advertising?
Advertising within a cit or county directed toward customers within the same geographic area
What is the advertising manager responsible for?
Preforms all the administrative, planning, budgeting, and coordinating functions.
How is IMC (Integrated Marketing Communications) used for local advertisers
Use publicity, sales promotion, direct response and media advertising, integrated with reasonable prices and excellent service to build long lasting relationships with their consumers.
Explain regional advertisers
Operate in one part of the country and market exclusively within that region. ex. state lotteries, Bank of America
Explain National advertisers
Advertise in several geographic regions or throughout the country some are the most popular in the world (P&G, Delta, Disney)
What is the focus of national advertisers?
-Brand
-Market share
-Strategies
-Markets
Time: Long term campaigns
Resources:
-$5-$10 Million +
-Many specialists
What is the focus of local advertisers?
-Location
-Volume
-Tactics
-Customers
Time: Short term ads
Resources:
-Less than $1 million
-A few generalists
What are the current trends in the advertising industry?
- Industry consolidation
- Decline of the commission system
- Changes resulting from new media
- Omni channel marketing
What are the two kinds of organizational structures a large company could manage their advertising?
- Centralized organization (General Mills)
- Decentralized organization
Define branding
Marketing function that identifies products and their sources and differentiates them from all other products
What is the role of branding?
- Offers recognition and identification of the product
- Offers differentiation
- Builds brand loyalty and brand equity
Product Positioning - explain position
-The way in which a product is ranked in a consumer’s mind by the benefits it offers, the way it is classified or differentiated from the competition, or by its relationship to certain target markets
A products position helps consumers…
Remember the brand and what it stands for
Product Positioning - explain Product
-The good or service being offered and the value associated with it
What are the major activities associated with the product element
- Product design
- Positioning
- Branding
- Packaging
What are the stages of a products life cycle?
- Introduction
- Growth
- Maturity
- Decline
The introduction stage of the product life cycle includes what two strategies?
Pull and push strategy
Explain the pull strategy
Marketing, advertising, and sales promotion activities aimed at inducing trial purchase by consumers (early adopters)
- Consumer demand will “pull” the product through the distribution chain
Explain the push strategy
Marketing, advertising, and sales promotion activities aimed at dealers, retailers, and sales people
-Encourage distributers to stock, display and advertise the product.
Explain the growth stage in the product life cycle
A period marked by market expansions as more and more customers make their first purchases while others are already making their second and third purchases
Explain the Maturity stage in the product life cycle
The market has become saturated with products, the number of new customers has diminished, and the competition is most intense
What is selective demand
consumer demand for the particular advantages of one brand over another
Explain the decline stage in the product life cycle
Sales begin to decline due to obsolescence, new technology, or changing consumer tastes
Define Market Segmentation
Grouping consumers based on shared characteristics to tailor messages to their needs and wants.
What are the steps involved in market segmentation
- Identifying groups with shared needs and characteristics
- Aggregating (combining) the groups into larger segments through a marketing mix
Define target market
A group within the market segment toward which all marketing activities will be directed
Define target audience
Specific group of individuals to whom the advertising message is directed
What are the categories of market segmentation
- Behavioristic
- Geographic
- Demographic
- Psychographic
Explain behavioristic segmentation
Segmenting consumers based on what they buy
Explain geographic segmentation
Segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within a region
Explain demographic segmentation
Segmenting markets based on a population’s statistical characteristics with quantifiable factors
Explain Psychographic segmentation
Defining consumer markets based on psychological variables by the Values and Lifestyle System (VALS)
What is psychographics?
Grouping of consumers into market segments on the basis of psychological makeup
The Values and Lifestyle System (VALS) groups consumers based on
Primary motivation and their resources
Aggregating market segments involves
- Selecting groups that have mutual interest in the product’s utility
- Reorganizing and aggregating the groups into larger market segments based on their potential for sales and profit.
Define Consumer Behavior
Mental and emotional processes and physical activities of people who purchase and use goods to satisfy particular needs and wants
What factors influence the basic consumer decision process?
- Interpersonal influences
- Non-personal influences
- Personal processes
What are the 5 steps in the consumer decision process?
- Problem recognition
- Information search
- Evaluation and selection
- Store choice and purchase
- Post purchase behavior (positive or negative experience)
The consumer perception process is based on what?
Perceptual screens
What are perceptual screen
Physiological or psychological filters that messages must pass through.
Explain physiological screens (sensory)
Use the five senses to detect incoming data and measure the dimension and intensity of the stimulus
Explain psychological screens (emotional)
Personality, self-concept, attitudes, beliefs, habits
What are two theories associated with consumer learning?
Cognitive theory and Conditioning theory (also called stimulus-response theory)
Explain the cognitive theory?
- Views learning as a mental process of memory thinking, and the rational application of knowledge to practical problem solving
- How you evaluate a complex purchase such as insurance, stocks bonds, or business products.
Explain the Conditioning theory
Views learning as a trial and error process
Conditioning theory is applicable to what kind of involvement purchases?
low-involvement purchases
Cognitive theory is applicable to what kind of involvement purchases?
high-involvement purchases
List some results of consumer learning
- Attitude
- Brand Interest
- Habit
- Brand Loyalty
What are some factors that influences consumer behavior
- Culture
- Subculture
- Society
- Family influence
- Social classes
What makes up the consumer motivation process?
- Motivation
- Needs
- Wants
List Abraham Maslow’s Hierarchy of Needs from the bottom of the chart to the top.
Bottom–>Top
- Physiological
- Safety
- Social
- Esteem
- Self-actualization
Purchase decision and post purchase evaluation include
Evaluative criteria and cognitie dissonance
What is cognitive dissonance
Theory that people try to justify their behavior by reducing the degree to which their impressions or beliefs are inconsistent with each other
Explain the Kim-Lord Grid
A 2X2 box with Cognitive involvement (think) and Affective involvement (feel) both are measured by low or High
What is a purpose of a marketing plan?
Directs how organization’s strategic objectives will be achieved
What is the effect of the marketing plan on Integrated Marketing Communication (IMC)
- Helps managers analyze and improve all company operations
- Defines the role of advertising in the marketing mix
- Enables better implementation, control, and continuity of advertising programs
- Ensures efficient allocation of IMC dollars
What are the 4 main elements of the traditional top down marketing plan
From top –> bottom
- Situation analysis
- Marketing Objectives
- Marketing strategy
- Marketing tactics
What is the purpose of a SWOT analysis?
to use facts in the situation analysis to point out strengths, weaknesses, opportunities, and threats.
Define Marketing strategy
Statement of how the company is going to achieve its marketing objectives.
What are the 3 steps involved in marketing strategy?
- Defining the target markets
- Determining the strategic positioning
- Determining the marketing mix for each target market
What are the 3 main elements in a Bottom-up Marketing Plan
From bottom –> top
- Marketing Tactics
- Marketing Strategy
- Marketing Results
Explain a Basic Transactional Relationship
The company sells the product but does not follow up in any way (ex. Target)
Explain relationship marketing
Creating, maintaining, and enhancing long-term relationships with customers and other stakeholders that results in exchanges of information and other thing of mutual value
What are the 5 levels of relationships?
- Basic Transactional Relationship
- Reactive relationship
- Accountable Relationship
- Proactive Relationship
- Partnership
Explain a reactive relationship
The company sells the product and encourages customers to call if they encounter any problems (ex. Men’s Wearhouse)
Explain an Accountable relationship
The company phones customers shortly after the sale to check whether the product meets expectations and asks for product improvement suggestions and any specific disappointments. This information helps the company to continuously improve its offering (Acura dealership, local veterinarian).
Explain a proactive relationship
The company contacts customers from time to time with suggestions about improved product use or helpful new products (Tupperware)
Explain the partnership level of relationship
The company works continuously with customers to discovery ways to deliver value (Ex. Amazon)
What are the sources of Brand messages?
- Planned messages
- Product messages
- Service messages
- Unplanned messages
Describe the Integration Triangle
Top: Say - planned messages
Bottom left: Confirm - unplanned messages
Bottom right: Do - product, service messages
List what makes up the Advertising Pyramid from base to top.
- Awareness
- Comprehension
- Conviction
- Desire
- Action
What are the three dimensions of the advertising circle
- Time
- Dollars
- People
Define Advertising Strategy
How to accomplish the advertising objectives
What is creative strategy?
Serves as the creative team’s guide for writing and producing an ad
What is media strategy?
Helps media planners determine how messages will be delivered to consumers.
