Week 10 Flashcards
Global v/s Local advertising
- Global Approach:
Standardization involves maintaining a consistent marketing strategy and approach across different countries or regions.
Benefits:
* Economies of scale and cost savings.
* Consistent brand image and messaging globally.
* Ease of management and control.
Kinds of Global Standardization:
a) Same Positioning, Similar Execution:
Keeping the brand positioning consistent globally with a similar execution of marketing elements.
b) Same Positioning, Different Execution:
Maintaining a consistent brand positioning but allowing for variations in execution to suit local tastes or preferences.
c) Different Positioning:
Adapting the brand positioning to better align with diverse market needs and consumer behaviours.
- Local Approach:
Localization involves tailoring marketing strategies to meet the unique characteristics and preferences of each local market.
Issues to Consider:
a) Economic Environment: Balancing the trade-off between spending time to save money and spending money to save time.
b) Demographic Environment: Considering factors like the sheer size of the market, age distribution, level of education, and rural-urban differences.
c) Political/Legal Environment: Navigating governmental regulations, media controls, talent preferences (local vs. foreign), and tax considerations.
d) Cultural Environment: Adapting to local values, lifestyles, language nuances, and social norms.
What is the differences between Traditional And Non-traditional media?
★ Traditional media is planned, research based, quantified (for objectives), and controlled.
- Traditional media follows ‘Attention, Interest, Desire, Action’ (AIDA) model, with each step being very considered and cognitive, features and benefit based awareness.
- Traditional is marketer propelled.
★ Non Traditional media is uncertain, intuitive and chaotic. Focus moves away from strategy into execution.
- Non Traditional media puts more focus on awareness, which generates ‘buzz’ and ‘Word of Mouth’ (WOM). Consumer-generated buzz is more credible, and propels consumer to purchase.
- NT communication is emotional; full of excitement.
- NT WOM is intended to infatuate the consumer with the brand.
- NT is consumer propelled.
Benefits and Risks of NT Marketing
Benefits:
Credibility:
- Not blatant advertisements
- Enhanced credibility thru association with celebrities
Efficiency:
- Free ads thru media mentions, WOM
- Shorter hierarchy of effect, faster route to purchase
Effective:
- Brand becomes cultural icon (thru the buzz)
- Breaks thru the clutter
- Memorable and impactful executions
Risks:
Control:
- Lack of control, events are often unplanned, other players play a key role
- Lack of control over timing
- No control over exposure that the brand receives
- Control over brand image, negative associations?
- Translating awareness into action: How to ensure conversion of infatuation into purchase
- Evaluation: No specific measures available
What is Market Research?
Purpose
- Identify target consumer
- Develop positioning strategy
Type of Research Methodology
- Market activity (internal data, secondary data)
- Survey data (perceptual maps, demographics, psychographics)
- Motivational research (in-depth interviews, laddering, focus groups, projective techniques)
What is Pre-testing in Market Research?
Pre-testing:
- evaluating and improving communication executions, especially advertisements, before they are officially released to the wider audience.
- primary purposes of pre-testing are to assess the diagnostic ability (how well an ad communicates its intended message) and the predictive ability (how effective the ad is likely to be in the actual market) of the advertising materials.
Methods:
- Laboratory testing:
* Participants view the “test” ad along with other ads in a controlled environment.
* Responses can include assessments of views/perceptions, recall, recognition, and response time.
* Joy stick method may be employed to allow participants to express their interest or reactions in real-time. - Physiological testing:
- used to gather data on participants’ involuntary responses to the ad.
- provides objective data on physiological reactions, offering insights beyond self-reporting.
- Pupil dilation
- Galvanic Skin Response: Measures changes in the electrical conductance of the skin, reflecting emotional arousal.
- Eye movement: Tracks the movement of the eyes to understand which elements of the ad attract attention.
- EEG: Measures electrical activity in the brain, providing insights into cognitive processing.
What is Post-testing in Market Research?
Post-testing:
- Evaluate effectiveness of communication executions in conjunction with communication objectives
Methods:
1. Tracking Studies:
* Communication (content and volume) tracked alongside competitive activity as well as brand recall, recognition, trials, repurchase measures
- Test market:
* Ad broadcast in specific markets, consumer responses tracked for inquiries, sales - On-air testing:
* Test commercial broadcast on air, consumers interviewed post viewing - Day-after recall:
* Consumer responses on recall and recognition taken day after the broadcast of the ad
Measures of Market Research?
Measures:
- Stopping power: Brand recognition, recall
- Transmission power: Message recognition, recall, comprehension
- Persuasive power: Feature recall/memory, Attitudes, Believability, Likeability, Emotions, Intention, Action
- Locking power: Day-after recall
What is Ethics?
Ethics: Moral principles and values.
Advertising specific products, advertising to specific target groups, advertising in a certain way
Truth in advertising:
- What is ‘truth’?
- Deception … stealth marketing
- BMW: Seamless transition!
Offensive advertising:
- Certain products, sexual or nudity, religious and cultural sensitivities
Advertising for certain ‘harmful’ products:
- Tobacco, Liquor
Advertising to Vulnerable targets:
- Children, elderly
Cultural and social:
-Influence social values, and culture
- Promotes materialism(?)
- Promotes ‘unwanted’ products
- Intrusive, cluttering, ‘commercializing’ open spaces
Stereotyping People:
- Women, Ethnic groups, specific roles
What is Corporate Citizenship?
Maybe there is not really a tradeoff between being ‘good’ and being profitable
- Consumers want to do business with ‘good organizations’
- Non-profits seen as warm and caring
- Fair-trade, organic, employee focused are good – and profitable: Whole Foods, Tom’s shoes
- Traceability
