ADV318J Exam 2

What are the 3 Limits of Focus Groups?

(1. Not provide breadth (generalizability) (2. Based on small sample of target audience (3. Subject to numerous errors that can destroy the data.

What are two characteristics of a consumer as a decision maker?

(1. Rational = Make cognitive judgements (2. Heuristic = Use mental shortcuts

What are examples of the Psychological Perspective?

Attitudes/Beliefs, Memories/Personal Experiences, Decision Rules, and Cognitive Ability

What is Field Work?

Research obtained from observations of consumers within their natural setting.

What is Audience Profiling?

Research that profiles target audiences. (MOST IMPORTANT)

What does the Advertising IBP Plan do?

Specifies the thinking, tasks, and timetable needed to concieve and implement an effective advertising effort.

Video #2

Stan Richards

But STP strategies must evolve... *

The IBP field is so dynamic that brands must constantly asses and update their STP strategies!

Relationship between Marketing and IBP

The IBP plan should be derived from and consistent with a brand's marketing strategy. 4 P's (Price, Promotion, Product, Placement)

What is the new challenge that marketers face with their audiences when starting a marketing campaign? How does "transparency" become key to accomplishing this challenge?

The big challenge is social media. It is difficult to work through all the channels and the push to grab data is difficult. The value of a company is based on the number of likes a platform can get. Transparency becomes key because companies need to have openness in order to build trust between a brand and customers. You are on your own company. Essentially, you want your audience to be your best marketer. The consumer is doing as much as the marketer to grow the campaign. Kids are even coming up with the content for the brand thus creating even more exposure.

- Salvation Army

The most respected charity in America. It was a mess when they went to work for them. Their was a different advertising campaign in every region. They helped create the brand image Brand Image = Doing the most good, they can do that because they have overworked officers that can bring help to the people that need it. More money goes to beneficiaries then ANY other organization by a substantial margin. Donations increased by 40% since the new campaign began, they raised 150 million dollars using the kettles at Christmas time alone.

What are the two types of benefits?

(1. Emotional (2. Functional

Chapter 5

Consumer Behavior

What mode for home remodeling?

Extended Problem Solving

Beware of Neuro-Bunk!

WATCH TED TALK

What are the 4 parts of info processing?

Attention, Comprehension, Acceptance, and Retention

What are 3 psychological obstacles?

(1. Ad clutter = Pay selective attention to ads and tune the rest out. (2. Cognitive Consistency = Try to maintain our harmonious mental state/resist info challenging our beliefs. (3. Psychological Reactance = We strengthen views/attitudes when we feel they are threatened.

What are the 6 Demographics

(1. Age (2. Gender (3. Race/Ethnicity (4. Marital Status (5. SES = Combo of Income/Education (6. Occupation

What are the three ways in which advertising interacts with consumer's minds?

(1. Attitude = Overall evaluation of a person, object, issue that varies along continuum (from like to dislike) (2. Brand Attitude - Summary evaluation that reflects preferences for various products/services (3. Salient Beliefs = Handful of beliefs - knowledge/feelings toward a person, object, or issue that form brand attitude.

What are the 4 common positioning themes?

(1. Benefit = emphasize the primary benefit consumers can expect (funtional, emotional , self expressive) Obvious option. (2. User = Focus on target. Should reap brand's value. (3. Competitive = Emphasize brand's values with explicit comparison to competition (4. Hybrid = Combination of themes.

What are the 4 common areas of Secondary Research?

(1. Brand = Data that is available from within a company (marketing strategies, annual reports, revenue) (2. Government = Data generated by Government (Population, housing) (3. Commercial = Buisnesses/Orgz that obtain and/or repackage valuable data. (Very expensive) (4. Professional Publications = Trade specific periodicals /industry-specific journalism/reports.

What are the 3 Benefits of Focus Groups?

(1. Can provide depth data and detail. (2. Provides flexibility; opportunities to adapt conversation. (3. Provides context to test an idea an efficiently

What are the 6 parts of Geography?

(1. Country (2. Region (3. State (4. City (5. Neighborhood (6. Geo-demographic = Identifies neighborhoods with common demographics.

What 2 things do advertisers want from the consumer?

(1. Customer Satisfaction (2. Minimize Cognitive Dissonance (Buyer's remorse)

What are 6 common practices for primary research?

(1. Design Thinking (2. Concept Testing (3. Audience Profiling (4. Focus Groups (5. Projective Techniques (6. Field Work

What are the 3 areas of IBP research?

(1. Development = Research before IBP strategies are made. (2. Messages = Research as ads/tactics are being made/finished (3. Results = Research evaluating the IBP program.

What are the 4 modes of decision making?

(1. Extended Problem Solving (2. Limited Problem Solving (3. Brand Loyalty (4. Habit (or Variety Seeking)

What are the characteristics of the Use and Evaluation stage?

(1. Good advertisers tend consumers post purchase. (2. Build Conversion and Brand Loyalty (3. Negate Buyer's remorse and dissatisfaction.

What are the 5 Usage Patterns/Commitment levels?

(1. Heavy User = Primary target segment sometimes not best focus (waste of adv budget) (2. Non Users = Lowest level of opp (3. Brand Loyal Users = Brand's asset, difficult to convert from the competition. (4. Switchers/Variety Seekers = Costly target segment (5.Emergent Users = An important business opportunity, also for these users it is important to remember that their brand preferences are still under development.

What are the 4 mode of decision making? (vary by involvement: how much does this purchase matter to you)

(1. Hobbies (2. Risk (3. Meaning (4. Values

Two types of info search?

(1. Internal = Consumer's own experience and knowledge (Evoked set, top of mind) (2. External = Seeks information from other sources (Friends/Family, reviews, web searches.)

What are the 7 components of an IBP Plan?

(1. Introduction (Executive Summary/Overview) (2. Situation Analysis (Identify critical factors that define the situation) (3. Objectives (quantifiable benchmarks, measurement methods, criteria for success, time frame) (4.Budgeting (Methods, amount, justification) (5. Strategy (Explanation of how plan will achieve objectives (6. Execution (Copy strategy, media plan, IBP tactics) (7. Evaluation (Criteria, methods, consequences/contingencies)

What are the two things a consumer does when evaluating options?

(1. Makes comparisons (narrows options down to a consideration set) (2. Uses evaluative criteria (characteristics/attributes of a brand) like price, texture, warranty terms, service support, color, scent, or carb content

What are the 4 steps of the consumer as a decision maker process?

(1. Need Recognition (2. Info Search/Evaluation (3. Purchase (4. Use and Evaluation

STP Cycle: Constant maintenance required (2 ways)

(1. Re-assess STP strategy = "Are there new/better ways to meet target market needs?", "Should you change the target and reposition the brand accordingly?" (2. Pursue product differentiation = Emphasize/create differences that distinguish brand from its competitors, ADV and IBP become critical b/c must convince consumers that difference is meaningful

Two ways of judging research quality?

(1. Reliability = Generates consistent, stable, and dependent findings over time. (2. Validity = Does the research investigate/answer the question it is supposed to.

What are the 5 Segmentation methods?

(1. Usage Patterns/Commitment levels (2. Demographics (3. Geography (4. AOIs (Areas of interest) (5. Benefits

Lately why have advertisers reduced spending on research? (3 ways)

(1. Viewed as a luxury (2. Non traditional IBP tactics make research more difficult. (3. Primarily Qualititative

In diverse markets...

(1. You can't design one product and one IBP campaign that will effectively communicate with all consumers. (2. You must develop and market-specific brands to specific segments of potential consumers.

Motel 6

Almost bankrupt motel chain in California. New CEO of Motel 6 was a friend of Richards he left senior role to be CEO. (A. Richards told the company to not advertise because they had to fix the product (needed quarters for TVs) So they Started at the west coast and became renovating each one. (B. Focus group didn't want to admit they went to Motel 6 so They didn't seem cheap. Motel 6 adapted the model of frugality. Very successful advertising campaign

Extra Stuff

- Younger people don't know what a "sellout" is. - Kids are trying to live and survive but are being controlled by companies like the game makers in The Hunger Games

Judging Research Quality 2 other ways?

1. Trustworthy = Knowing how the data was collected, can we trust the stories told by the data. 2. Meaningful = Are the stories being told by trhe data meaningful in terms of our IBP challenge?

Identify the key issues that the following brands faced and how the Richards Group addressed them: - Chick-fil-A

3 major barriers when Richards group worked with them (A. Outspent 20-1 by our hamburger competitors, IE Hamburger companies spend more money (B. Chick Fil A does not discount. Think McDonalds dollar Menu. Chick fil a doesn't discount because they believe that it will decrease the value of the product. (C. Chick Fil A is closed on Sundays. Why would Chick Fil-A give up so much revenue The Richards group addressed these problems first by enlisting renegade cows who enlightened self interest advised people to eat more chicken. No one had never done that before and it was very successful from the very beginning. They had double digit sales increases year after year after year. Chick Filae passed KFC in terms of chicken sold even though they were closed on sundays. Chick Filae left the Richards group b/c new CMO trashed the cow campaign.

What does it mean for a brand to be considered a "promise?" What are the categories that comprise a brand's "promise?"

A brand is considered a promise because the brand makes a promise to its' constituents that it will behave in a certain way and when it behaves that fashion then it reinforces the brand therefore the brand becomes stronger. First category: What is the brand's vision and why should people choose to do business with it? Examples of a brand vision ("Making cancer history - MD Anderson) Second Category: Find out the brand positioning (what the brand does) It is hard to find the single characteristic that the brand wants to focus 3 parts Who is the target audience, Who is the frame of reference (set of competitors) What is the most compelling point of difference? Third Category: Define the brand personality Fourth Category: Define the type of "club" that people join when then they join the brand Fifth Category: Define the Brand vision

Sociocultural Perspective

Approaches consumers as social beings whose behavior is largely directed by social forces.

Psychological Perspective

Approaches consumers as systematic decision makers who process information.

What are the three misuses of Research?

Ask the wrong questions, Use wrong methods, and Misinterpret the results.

What is consumer behavior?

All things related to how humans operate as consumers.

What are benefits in regards to segmentation?

Benefits focus on the key benefits wanted by the Target Markett.

What did Bill Bernbach think about research?

Bill Bernbach thought it impeded good advertising.

So many trees! Where is the forest? *

Brands must always remember to focus on their "forest" - what their brand is supposed to stand for in the eyes of the consumer.

What is segmenting?

Breaking down diverse markets into manageable groups. (Ex: All coffee drinkers narrowed to one group)

What is targeting?

Choose a specific segment as focal point for IBP efforts (Ex: Choose to focus on just graduated 20 year olds)

What is Limited Problem Solving?

Quite common, the mode is less systematic whereby consumer seeks adequate solutions to mundane needs. Has LOW involvement and LOW experience.

But (and this is a serious but)

Consumer Behavior is often NOT systematic and logical!

Characteristics of Need Recognition

Consumer process begins in a need state, Adv tries to highlight these needs and connect their product with these needs

What is Brand Loyalty?

Consumer repeatedly purchases a brand to fulfill a specific need but the behavior is based on a highly favored attitudes and conscious commitment. Has HIGH involvement and HIGH experience.

Reliability and Validity **

Reliability is a necesary but insufficient component of validity; ultimately research must be deemed VALID to be useful.

What is Extended Problem Solving?

Deliberate decision making process. Has HIGH involvement and LOW experience.

What did the IPAD launch do? **

Demonstrated a comprehensive and well-planned IBP campaign.

What is positioning?

Emphasize themes that aligns with the target segment. (Ex: Theme is tailored to the target: "tolerate mornings."

The film mentions this concept of "empowerment." Why is it "empowering" or "cool" to get liked or to get a response from an influential, famous person and/or brand representative?

Empowerment is something that kids talk a lot about social media. They are empowered because they can post anything they want and say whatever they want. It is empowering and cool to get liked/get a response because other people will notice it/the companies will follow you back. A bunch of kids work together to help each other grow their following.

What is Projective Techniques?

Exercises designed to tap consumer thoughts/emotions

T/F: The advertiser's work is done when it gets the consumer to purchase the brand.

FALSE! Advertisor wants conversion (repeated purchases), brand loyalty, and brand ambassadors.

True/False: Consumer behavior is often straightforward and consistent.

False

What is a positioning strategy?

Figuring out what key brand themes/concepts to emphasize when communicating with your target audience.

What is STP marketing?

Foundation of an effective IBP campaign

Video #1

Generation Like

What is Design Thinking?

Guided creative brain-storming that questions convention.

What are Focus Groups?

Guided discussion with 6-10 members of TGT MKT.

What mode for buying cereal?

Habit or Variety Seeking

Where is variety seeking most common?

It is most likely to occur in frequently purchased categories in which sensory experience, such as taste or smell, accompanies product use. In such categories, no amount of ad spending can overcome the consumer's basic desire for fresh sensory experience.

What is variety seeking?

It refers to the tendency of consumers to switch their selection among various brands in a given category in a seemingly random pattern.

Examples of Salient Beliefs regarding Velveeta

It's fatty, unnatural, gross, greasy

What is Stan Richard's advice on addressing failures and disappointments?

His advice is to NOT look backwards instead he follows the rule to stay looking forward. Every client you have you will eventually lose and you need to keep that in mind when working in this agency. Clients may leave you usually because a key person has left the team. Stan Richards never looks back in his life. When his kids lost the basketball game they immediately moved to baseball. In your life you will have disappointments but the best thing to do is to forget them. Knowing that you are good at you do and look ahead optimistically.

Chapter 7/8

IBP Research and the IBP Plab

How do IBP professionals come to understand and connect with consumer psychology? *

IBP Research: Research taht helps in the development, execution or evaluation of Adv. and IBP.

What are the "likes" that an individual gets really about? Is there meaning behind liking and/or retweeting something? Why do Millennials and Generation Z's engage in these behaviors/

Likes are essentially likes on a photo or post on social media. When someone likes a company or another page it becomes a part of their identity. The meaning behind liking and/or retweeting something is these are the social currency of today's world, so the more likes you get the better you feel. Millennials and Gen Zs engage in these behaviors because they really want to be liked by others and they want to be noticed in public for what they posted. Biggest transformation in communication is getting the viewer's attention. There is a corporate push to gather as much data as possible. Likes turn into currency because the company knows how to turn the data into money.

Neuroscience/Brain Imaging

MRIS used to see what parts of brain light up when exposed to a brand. Potential of advertisors to understand feelings/perceptions related to their products.

According to Stan Richards, what does it mean to "make the work better?" How is his company able to do this? What does this philosophy encompass?

Make the work better is the motto that everyone in the Richards group follows. It applies to everyone in the organization and it means that everyone should be dedicated to what they can do individually to make the work better. His company is able to do that because his company has no interference from the outside meaning they have no shareholders, investors, no holding company, no one to send checks to.

What is Habit (or Variety Seeking)?

Most common mode, consumer purchases the same brand over and over again in a mindless fashion. Has LOW involvement and HIGH experience.

What are psychographics and what are the 3 parts of them?

Move beyond demos and parse out consumer motivation. Focus on Consumer Lifestyle (1. Activities (2. Opinions (3. Interests

Characteristics of Info Search/Evaluation

Need recognition leads to an Extensive info search, many opps. for adv to influence

What is Effective Positioning? *

One of the most important decisions faced by advertisers. Must demonstrate value to the target.

Junk goes in. Junk comes out. *

Only quality research can help improve effectiveness of IBP efforts.

What does the film mean by "the paradox of Generation Like"?

Paradox of Generation Like is kids are empowered to express themselves like never before but with tools that are embedded with values of their own. Likes make someone feel good at least in the moment.

Difference between Primary and Secondary Research?

Primary research is you doing your own research. Secondary research is getting it from other research already been done.

What is Concept testing?

Seeks feedback from consumers about prototypes.

What do you need to consider when choosing target segments?

Segment size, usage rates, growth potential Competition for a segment If represents untapped niche If you can effectively deliver to the segment (ex: Logistics)

Chapter 6

Segmentation, Positioning, and Value proposition

What are the three parts of STP marketing?

Segmenting, Targeting, Positioning

What is the ELM?

Social Psych theory has two routes Central (cognitive processing and enduring attitudes) and Peripheral (peripheral cues and short-term attitude shifts.)

What are examples of the Sociocultural Perspective?

Socioeconomic Status (SES), Social Class, Living Conditions, and Cultural Norms

What is semantic memory?

This is the kind of memory through which names, words, and concepts are stored and retrieved from our minds. CPG are the most common users of semantic memory-based advertising

T/F: A consumer is apt to use the habit mode when making a decision with ample experience but little involvement

True

How do you create ads that resonate? *

You have to understand what needs your consumers want filled and how to allign your product with those needs.

How are demographics used?

Used in combination with another criteria (usage patterns) and as a starting point for segmentation.

Examples of Brand Attitude regarding Velveeta

Velveeta is a a disgusting product.

Additional Notes

When your company is NOT independent, employees have one thing at the top of their mind which is to make money for shareholders. Richards group is about making the work better! Holding company agency exists to make money for the holding company not to make the work better like the Richards group. First thing he says when you graduate don't go work for a holding company. Look at the work at the agency and gauge it based on your own education and ask yourself "How good is the work?" You need to find a place where you admire the work. Take a job where the work is something you wish you did yourself. Takes about 6 weeks to get through the branding process with a client. It takes 5-6 months for a campaign to be created It is hard to collaborate with International agencies since you aren't working at your headquarters. For the most part, Newspapers, Magazines, Televisions have decreased except in outdoor. Stan Richards played basketball during college and after until he hurt his hip

Validity Error Example... **

You think you're measuring "favorability toward a brand," when what you're really capturing is "favorability toward an ad"