JMC 348 Principles of Advertising- Exam one

Segmentation Variables -psychographic VALS

- Values -Attitudes -Personalities - Lifestyle

Segmentation Variables -geographic

- urban vs. suburban vs. rural - local markets and trading areas - region of the country

Segmentation Variable -demographic

-Gender, age, ethnicity, income, education, occupation -Quantifiable data

Marketing Mix (4 Ps)

4 Ps of marketing 1-Product 2-Place- how and when the product is distributed 3-Price 4-Promotion- all marketing-related communication between buyer and seller

Allocating Funds -Percent of Sales method

A method of advertising budget allocation based on a percentage of the previous year;s sales, the anticipated sales for the next year, or a combination of the two.

Allocating Funds Share-of-the-market/ Share-of-voice

A method of allocating advertising funds based on determining the firm's goals for a certain share of the market and then applying a slightly higher percentage of industry advertising dollars to the firm's budget.

Allocating Funds - objective/task method

A method of determining advertising allocations, also referred to as the budget-buildup method, that defines objectives and how advertising is to be used to accomplish them. It has three steps: 1- defining the objectives 2- determining strategy 3- estimating the costs

Ways of gathering data -observation method

A method of research used when researchers actually monitor people's actions.

Definition of Advertising

A paid, mediated form of communication from an identifiable source, designed to persuade the reciever to take some action, now or in the future.

Agency roles and their responsibilities- Media

A plural form of medium, referring to the communications vehicles paid to present an advertisement to their target audience. Most often used to refer to radio and television networks stations that have news reporters, and publications that carry news and advertising.

Ways of gathering data - focus groups

A qualitative method of research in which six or more people, typical of the more people, typical of the target market, are invited to a group session to discuss the product, the service, or the marketing situation.

How agencies make money- Markup

A source of agency income gained by adding some amount to a supplier's bill, usually 17.65 %

media self regulation - Regulatory environment

Almost all media companies (TV, Radio, Magazines, Newspapers, and Consumer advocate groups) review ads and reject material they regard as objectionable, ben if it isn't deceptive

bonus- Top rated Super Bowl 52 ads- USA Today AdMeter and AdWeek

Amazon - Alexa, NFL - Touchdown Celebrations to come, Budweiser - stand by you

AAF Regulatory environment

American Advertising Federation

AAAA Regulatory environment

American Association of Advertising Agencies

Learned Habit

An acquired or developed behavior pattern that had become nearly or completely automatic.

Interactive Agency

An ad agency that specializes in the creation of ads for a digital medium

Media Buying Services

An organization that specializes in purchasing and packaging radio and tv time

bonus- What has been called the "Greatest commercial ever made?"

Apple's Commercial

Claritas PRIZM

Claritas collects data on purchasing behaviors and creates profiles of geographic markets across the country by zip codes

Types of Research - Primary Research

Collecting data directly from the marketplace using qualitative or quanitiative methods

Clients in Advertising

Come from contact with top management, referrals from satisfied clients or advertising consultants, publicity on recent successful campaigns, trade advertising, direct-mail solicitation, or just the agencies general reputation.

Research used in advertising (advertising research) message

Companies hope to find provision advertising messages by studying consumers' likes and dislikes in relation to brands and products

How agencies make money- Media commission

Compensation paid by a medium to recognized advertising agencies, traditionally 15 % for advertising placed with it.

Relationship marketing

Creating, maintaining, and enhancing long-term relationships with customers and other stakeholders that result in exchanges of information and other things of mutual value.

Regulatory environment- FTC

Established in 1914 to "prevent unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce."

Deception- Puffery

Exaggerated, subjective claims that can't be proven true or false such as "the best," "premier," or "the only way to fly." Pizza Hut ex: "better ingredients, better pizza."

Regulatory environment- FCC

Federal Communications Commission

Regulatory environment- FDA

Food and Drug Administration

Agency roles and their responsibilities- Creative directors

Head of creative time of agency copywriters and artist who is assigned to a client's business and who is ultimately responsible for the creative product- the form of the final ad takes.

bonus- An aspect of contemporary culture you find interesting/ a way you "feed you brain"

I use instagram because I enjoy staying up to date with my friends.

IMC

Integrated Marketing Communication

Product Differentiation

Manufactures portraying their brands as different from and better than similar competitive products through advertising, packaging, or physical product differences.

Learned Wants

Needs learned during a person's lifetime.

Stereotypes

Negative or limiting preconceived beliefs about a type of person or a group of people that do not take into account individual differences.

Perception

Our personalized way of sensing and comprehending stimuli

Segmentation Variable - behavioristic

Purchase Occasion- when and why people make purchases Benefits Sought- what people are looking for from the product. -status, value, sex appeal

Types of Research -Qua(Li)tative Research

Research that uses in-depth studies of small, non-random samples to explore the behavior, perceptions, needs, and motivations of a target audience.

Types of Research -Qua(NT)ititative Research

Research that uses larger, representative samples and surveys to quantify hypotheses and measure specific market variables.

Interpersonal influences

Social influences on the consumer decision-making process, including family, society, and cultural environment

Learned Attitude

The acquired mental position- positive or negative- regarding some idea or object.

Consumer Behavior definition

The activities, actions, and influences of people who purchase and use goods and services to satisfy their personal or household needs and wants

Ethically, what should Learning Curve be concerned about in considering whether to accept the ad from Spike T?

The audience may be too young to make an informed choice for a potentially dangerous product.

Learned Need

The basic, often instinctive, human forces that motivates us to do something

Unique Selling Proposition (UPS)

The distinctive benefits that make a product different than any other. The reason marketers believe consumers will buy a product even though it may seem no different from many others just like it.

Advertising's added value

The increase in worth of a product or service as a result of a particular activity. In the context of advertising, the added value is provided by the communication of benefits over and about those offered by the product itself. example: Coca-Cola, Ipod

Agency roles and their responsibilities- Account Executives/ management (account) supervisors

The liaison between the agency and the client. The account executive is responsible both for managing all the agency's services for the benefit of the client and for representing the agency's point of view to the client. / Managers who supervise account executives and who report to the agency's director of account services

Aggregating

The process of market segmentation involves two steps: identifying groups of people (or organizations) with certain shared needs and characteristics and...... aggregating (combing)..... these groups into larger market segments according to their interest in the product's utility.

Cooperation (co-op) advertising

The sharing of advertising costs by the manufacturer and the distributor or retailer. The manufacturer may repay 50 or 100 percent of the dealer's advertising costs or some other amount based on sales.

Target Audience

The specific gout of individuals to whom the advertising message is directed

Advertising research

The systematic gathering, recording, and analysis of information specifically to facilitate the development or evaluation of advertising strategies, ads and commercials, and media campaigns.

Research used in advertising -Market research

The systematic gathering, recording, and analysis or information to help managers make marketing decisions.

Motivation

The underlying drives that stem from the conscious or unconscious needs of the consumer and contribute to the individual consumer's purchasing actions

Marketing Communications

The various efforts and tools companies use to communicate with customers and prospects, including newspaper ads, event sponsorship, publicity, telemarketing, digital ads, and coupons, just to mention a few.

(FTC) Deceptive advertising definition

This form of advertising refers to a "manufacturer's use of confusing, misleading, or blatantly untrue statements when promoting a product." The company may also deliberately and intentionally withhold certain information from the consumer for personal gain.

Persuasion

a change in thought process or behavior that occurs when the change in belief, attitude, or behavioral intention is caused by promotion communication (such as advertising or personal selling)

Media Strategy

a document that helps media planners determine how messages will be delivered to consumers. It defines the target audience , the communication objectives that must be achieved, and the characteristics of the media that will be used for delivery of the message.

Situation Analysis

a factual statement of the organization's current situation and how it got there

Agency roles and their responsibilities- Account planning

a hybrid disciple that bridges the gap between traditional research, account management, and creative direction whereby agency people represent the view of the consumer in order to better define and plan the client's adverting program.

How agencies make money- straight-fee (retainer) method

a method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula. Under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies by some factor.

Sampling

a portion of the population selected by market researchers to represent the appropriate targeted population. Also, a free trial of the product.

How agencies make money- fee-commission combination

a pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned.

Creative Strategy

a written statement that serves as the creative team's guide for writing and producing an ad.

SWOT Analysis

after assessing a company's situation, the writer of a marketing plan prepares an analysis that identifies the brand's or product's strengths, weaknesses, opportunities, and threats.

agency self regulation- Regulatory environment

agencies are held legally liable for fraudulent or misleading advertising claims. Most major advertising agencies have in-house legal counsel and regularly submit their ads for review. Several associations monitor industry advertising practices.

Legal environment- copyright

an exclusive right granted by the Copyright Act to authors and artist to protect their original work from being plagiarized, sold, or used by another without their express consent.

Validity

an important characteristic of a research test. For a test to be valid, it must reflect the true status of the market.

Reliability

an important characteristic of research test results . For a test to be reliable, it must be repeatable, producing the same result each time it is administered.

Advertising agencies definition

an independent organization of creative people and businesspeople who specialize in developing and preparing adverting plans, advertisements, and other promotional tools for advertisers.

Legal environment- trademark

any word, name, symbol, device, or any combination thereof adopted and used by manufacturers or merchants to identify their goods and distinguish them from those manufactured or sold by others.

Niche Agencies:

assist clients with a variety of limited services examples: creative boutiques, media buying services, interactive agency.

Segmentation Variables

behavioristic demographic geographic psychographic

The consultant suggests that a sustainable (i.e., long-term) relationship comes from

building trust.

Functions of a full-service agency

communication and promotion. Its advertising services include: planning, creating, and producing advertisements as well as performing research and media selection services. non-advertisng functions include: planning, creating, and producing sales promotion materials, publicity articles, annual reports, trade show exhibits, and sales training materials.

Allowing consumers to connect with Pizza Hut over the Web whenever and however they wish, represents the facet of brand engagement described as

consumer control.

Armstrong did ride Trek bikes in races. In others, he used a LIfespeed bike that was painted to resemble a Trek. Audiences who believed Armstrong was winning races on a Trek bike when he was in fact riding a different brand were victims of what unethical marketing practice?

deception

Trek president, John Burke, after cutting ties between his company and Armstrong following proof Armstrong had cheated, told a reporter that "I think that what Lance did was he got a lot of people in America riding bikes," Burke said. "That's his legacy. Trek's business went up because of that. And so did everybody else's." Burke's comments reflect what economic aspect of the impact of advertising?

effect on consumer demand

Research used in advertising (advertising research) creative concept research

evaluative the target audience's acceptance of different creative ideas at the concept stage.

Pizza Hut's CMO believes that an important reason for improving the company's website is ensuring that Pizza Hut provides the best _______ possible when consumers order the product.

experience

Advertising is generally personal and directed toward individuals to induce higher individual consumption.

false

Objectives advertising objectives

image, attitude

Objectives

must be specific and measureable

is marketing advertising?

no, advertising is a marketing tool.

Creative Boutiques

organizations of creative specialists that work for advertisers and occasionally agencies to develop creative concepts, ad messages, and specialized art.

There is a wide array of cosmetics currently available in the market. Exhibitor Labs makes a line of cosmetics including eye accents and shampoos for horses. It claims to manufacturer "the world's finest equine cosmetics." What kind of strategy is Exhibitor Labs most likely using?

positioning

The iPhone app changes the nature of the ordering experience for Pizza Hut customers. Of the four types of brand-related messages that can originate from a company, the innovative customer experience of using the app seems closest to

product messages.

Facebook and Twitter, as used by Pizza Hut, are helping the company to engage in _______ with its customers because these technologies move away from one-way messaging and towards interactions.

relationship marketing

Objectives marketing objectives

sales and market share

Interpersonal influences

social influences on the consumer decision-making process, including family, society, and cultural environment.. ex: Family, Social Classes, Reference Groups (people we relate to)

Human communication process

source -> encoding -> message-> noise/channel/noise -> decoding -> receiver -> feedback (aka repeat)

Even though the Pizza Hut corporation understood the need to make use of the Web, the franchise owners were skeptical. From an IMC perspective, the franchise owners are an important group of _____, whose opinions are directly related to the company's success.

stakeholders

Poor taste and offensive advertising

subliminal advertising is poor taste and offensive advertisements with messages (often sexual) supposedly embedded in illustrations just below the threshold of perception. Calvin Klein, Abercrombie and Fitch

Research used in advertising (advertising research) posttesting

testing the effectiveness f an advertisement after it has been run

Research used in advertising (advertising research) pretesting

testing the effectiveness of an advertisement for gaps or flaws in message content before recommending it to clients often conducted through focus groups

What is segmentation?

the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.

Types of Research -Secondary Research

the second step in the research process, designed to explore a problem by reviewing secondary data and interviewing a few key people with the most information to share

Research used in advertising (advertising research) media research

the systematic gathering and analysis of information on the reach and effectiveness of media vehicles.

Personal processes

the three internal, human operations--- Perception Learning Motivation -- that govern the way consumers discern raw data (stimuli) and translate them into feelings, thoughts, beliefs, and actions.

Position

the way in which a product is ranked in the consumer's mind by the benefits it offers, by the way it is classified or differentiated from the competition, or by its relationship to certain target markets