Week 8 - Persuasion 1 (Advertising & Marketing) Flashcards
Define Marketing
The activity and processes for creating, communicating delivering and exchanging offerings that have value for customers, clients, partners and society at large
What is the Two-Fold goal of customers?
Attract customers
Keep and grow current customers
What are Needs, Wants and Demands?
Needs: States of felt deprivation
Wants: The form human needs take as they are shaped by culture and personality
Demands: Human wants that are backed by buying power
2 key processes of the Marketing Process?
Create value for customers and build customer relationships
Capture value from customers in return to create profits and customer equity
What are the 4 Marketing Mix?
Product, Price, Distribution & Promotion
What are the 8 Product Variables of the Marketing Mix?
Product Variable Price Variable Place Variable Promotion Variable People Variable Physical Evidence Variable Process Variable Partnership Variable
Explain Product Variable
Can be a good, service, an idea or combination thereof
Explain Price Variable
Relates to the decisions and actions associated with establishing pricing objectives and policies and determining product prices
Explain Place Variable
To satisfy customers products must be available at the right time and in convenient locations
Explain Promotion Variable
Activities used to inform individuals or groups about the organisation and its products
Explain People Variable
Refers to and includes the people involved with preparing, producing and presenting the product
Explain Physical Evidence Variable
The elements associated with the product used to demonstrate the product and what it is (eg location, lighting)
Explain Process Variable
Involves things such as automation or use of self-service technology
Explain Partnership Variable
Establishing, maintaining and nurturing partnerships throughout the supply chain
Define Advertising
A paid non-personal communication about an organisation and its products transmitted to a target audience through mass media.
What are the 4 major decisions that need to be considered when developing an advertising program?
Objective Decisions
Budget Decisions
Message Decisions/Media Decisions
Advertising Evaluation
What is included in Objective Decisions? (2)
Communication objectives
Sales objectives
What is included in Budget Decisions? (2)
Affordable approach
Percent of sales
What is included in Message Decisions/Media Decisions? (3)
Message strategy and message execution
Impact and engagement
Major media types
What is included in Advertising Evaluation? (3)
Communication impact
Sales and profit impact
Return on advertising
What are objectives?
A specific communication task to be accomplished with a specific target audience during a specific period of time
What are the 3 purposes of Objectives?
Inform: Build primary demand
Persuade: Build selective demand
Remind: Maintain relationship
What should objectives be based on?
Past decisions about the target market, position and the marketing mix
What are the 2 key factors that are considered when creating a budget?
distribution of buyers
type of product
What is the Percent of Sales Approach?
Limitation
Adjusting past sales according to expected increase/decrease
Based on flawed assumption that sales create advertising and not vice versa
What is the Objective and Task Approach?
Limitation?
Determining campaign objectives and list tasks that will achieve these objectives
MOST LOGICAL
Difficult to estimate which tasks will achieve the campaign objectives
What is the Competition-Matching Approach?
Limitation?
Aim to match the major competitors budgets in absolute dollars or to allocate the same percentage of sales for advertising that competitors do
Misses the opportunity to stand out
What is the Arbitrary Approach?
Limitation
A high-level executive in the company states how much to spend on advertising for a certain period.
Often leads to overspending and underspending
What 3 things are appealing in advertising?
Meaningful
Believable
Distinctive
What are some message execution styles?
Slice of life, life style, fantasy, musical
What are the 4 steps in selecting advertising media?
Reach, frequency, impact and engagement
Choosing the media type
Selecting media vehicles
Choosing media timing
What are the 3 types of ways to assess effectiveness of advertising?
Before Campaign: pre-test: consumer panel
During Campaign: inquiries
After Campaign: post-test: recognition test, recall test
