JOUR 250 Midterm
A Chapter 2: Economic Impacts of advertising/ How is Advertising Monitored
**IMPACTS OF ADS** -Ads are judged by Society for the type of content the provide Encourages development and speeds the acceptance of new products and technologies. - Ads Impact the economy by promoting products and driving up consumer demand. And also giving products value -Society is impacted by ads by being encouraged to get out shop for the products they see -Ads can play a big part in our actions. Advertisers have to be responsible to ensure peace of the economy. -Ads make the production cost of products go down. Brands use ads to show whats SO special about each Product - Big advertisers don't have that big of an impact on small business. Ad freedoms encourage sellers to enter the market! -Growing Market: Advertising provides complete info, stimulates PRIMARY DEMAND more than secondary Dying Market: Ads are used for price info. Influences SECONDARY DEMAND *********************** Government AD REGULATION -The government has organizations that monitor Ads making sure they are only putting out true information. -Most ads are protected by the 1st amendment - Prevents Puffery and other forms of lying in advertisements. -Advertisers must include certain aspects of their product in their commercial depending on what and who they are advertising to. -Multiple big privacy issues in advertising -Government moderates your websites with cookies to track eye and click habits ! FTC- Regulates acts of deceptive and unfair adverting. Also makes sure to monitor comparative advertising to spot clear differences in similar products ! FDA- Monitors food safety, cosmetics, medicine and therapeutic needs ! FCC- Monitors over the radios, satellites, telephones, TV, and the Internet. Have power over broadcast licenses. The FCC can also restrict products and info that makes up ads. ! PTO- Gives things a patent or trademark ! Library of congress- Protects all copyrighted material *********************** Associations that monitor industry-wide advertising practices include (SELF REGULATED): -American Association of Advertising Agencies (AAAA) -American Advertising Federation (AAF) -Association of National Advertisers (ANA) -ASRC: Promotes and enforces standards of truth, taste, morality, and social responsibility -Better Business Bureau (BBB): Protects consumers against fraudulent and deceptive advertising and sales practices. Maintains public records of false advertisers. Sends records of non-compliant violators to appropriate government agencies. May work with local law enforcement to prosecute advertisers guilty of fraud and misrepresentation -NAD: Monitors advertising practices. Reviews complaints from BBB. -NARB: Appeals board for NAD decisions. (40 advertisers, 20 agency reps, 10 lay people) ********************** International Advertising Regulation: •Many countries prohibit puffery. •In Germany, advertisers may use only scientifically provable superlatives. •Many European countries also ban coupons, premiums, free tie-in offers, and the like.•Companies may advertise price cuts only during "official sales periods," and advertisers often need government approval before publishing a sale ad.
Freedoms of personal speech
**THAT MUCH OF ADVERTISING FALLS UNDER FREEDOM OF COMMERCIAL SPEECH.** Advertising to children -Can lead to false beliefs or highly improbable product expectations -Should not be intentionally deceptive
Elaboration Likelihood Model (ELM)
*Proposes that the method of persuasion depends on the consumer's level of involvement with the product and the message * Central route is where the consumer is motivated to pay attention to product-related attributes *Peripheral route is when the consumer is not involved with the product or message •So we tend to see central messages as being more persuasive, stronger, and lasting more over time. •Central messages do not have to be repeated as often to Hamlet, whereas peripheral ones to Laertes may need more repetition •It seems more friendly, and less hard sales. •It can be viewed more often, with less "Why am I seeing this" or "I know, I know, I know." For a brand with fewer great "strengths," it can effectively make its pitch without going toe-to-toe with the "Big Dog." The ELM describes two rather different ways by which a person might come to hold a reasonable attitude
Issues of Advertising
-An advertisement is offensive or displeasing. -Products do not measure up to the advertised promises. 1.Influence on the economy 2.Societal effects 3.Responsibility for harmful effects 4.Proper role of government
Social Responsibility and Advertising Ethics
-Influences a society's stability and growth -Secures large armies -Creates entertainment events, drawing fans -Affects the outcome of political elections
Stereotypes in advertising
-Insensitivity to minorities, women, immigrants, persons with disabilities, the elderly, and other groups -Maybe to both of these. But don't we also see stereotypes in every form of entertainment.
A Chapter 7: Planning
-Marketing Plan: Directs a company's marketing effort. •Assembles relevant facts about the organization, its markets, products, services, customers, and competition •Forces all departments to focus on the customer•Lists goals and objectives for specific periods of time •Lays out precise strategies and tactics to achieve them •Length and complexity varies depending on the size of the company •Ongoing activity; plan changes with the facts •It comes first, before the ADV, PR, or other IMC plans. The marketing plan does all of the following: •Helps managers analyze and improve all company operations •Defines the role of advertising (or PR, etc) in the marketing mix •Enables better implementation, control, and continuity of advertising programs •Ensures efficient allocation of IMC dollars ************************************************************* Top-Down Plan heavily used by: •Large companies •Ones that have lots of products• Ones that are available in many geographic locations •Ones with a large amount of different Personas 1. Situation analysis: A factual statement explaining how the business came to be. •Includes company history, growth, products and services, sales volume, share of market, competitive status, markets served, distribution systems, past IMC programs, marketing research studies, SWOT analysis: uses the facts in the situation analysis to point out strengths, weaknesses, opportunities, and threats 2.Marketing Objectives: Goals of the marketing effort expressed in terms of the needs of specific target markets and specific sales objectives. ***********OBJECTIVES****************************** .•(1) corporate objectives: goals of the company stated in terms of profit or return on investment •(2) Need satisfying objectives:(think like the customer!!) •b) Have to ask "What are we planning to do for the customer?" and "What is the value of that to our customer?" •(3) Sales target objectives: objectives that relate to a company's sales and may be expressed in terms of total sales volume; sales by product, market segment, or customer type; market share; growth rate of sales volume; or gross profit ************************************************************ 3. Marketing Strategy: Statement of how the company is going to achieve its marketing objectives. (BROADLY) •Defining the target markets through market segmentation and market research •Determining the strategic positioning: association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition. •Based on... product attributes, price/quality, use/application, product class, product user, product competitor, cultural symbol, etc. •Determining the marketing mix for each target market 4. Marketing Tactics:•Specific short-term actions used to achieve the marketing objectives by means of the strategy. ************************************************************* Strategy: Outlines HOW you plan to achieve your main objective or goal -Utilize social media -Improve content marketing -**Use the voice of "others" to provide credibility Tactics: Are closer to the 'real world.' They are the specific actions you're going to take to deliver on that strategy. -Using paid advertising to promote your new product -Engaging with Facebook groups relevant to your target audience -** Determine which influencer or spokesperson will be that "voice" ************************************************************* Bottom-Up Marketing Plan: An excellent way for a company to develop a competitive advantage is to focus on an ingenious tactic first and then develop that tactic into a strategy. This same Top-Down vs Bottom-Up system also exists in ADV and PR. Bottom-Up Plans... Heavily used by: •Small companies •Ones that have fewer products •Ones that are available in specific geographic locations •Ones with fewer Personas (targets) ************************************************************* Sources of Brand Messages in IMC Planned messages: traditional marketing messages including advertising, sales promotion, publicity (PR), and personal selling; •Might have the least impact because they are seen as self-serving (author) •But, incredibly effective at the Awareness and Action stages. Product messages: messages communicated by a product, its packaging, price, or distribution elements; have a great impact. Service messages: messages resulting from employee interactions with customers; typically have a greater impact than planned messages *********INTEGRATION TRIANGLE************* Say: planned messages Do: Product/ service messages Confirm: Unplanned messages •Planned messages are say messages, what companies say about themselves. •Product and service messages are do messages because they represent what a company does. •Unplanned messages are confirm messages because that's what others say and confirm about what the company says and does. Advertising plan: A natural outgrowth of the marketing plan, an advertising plan analyzes the situation, sets advertising objectives, and lays out a specific strategy from which ads and campaigns are created. •Creative strategy: serves as the creative team's guide for writing and producing an ad. •AKA: The Creative Brief •If people only remember or talk about ONE advertising strategy, it's often the creative strategy (brief). •Media strategy: helps media planners determine how messages will be delivered to consumers •Advertising expenditures below a minimum level will have no effect on sales. •There will be some sales even without advertising. •Additional ad expenditures above saturation limits will do little to increase sales. ************************************************************* Methods of allocating funds •Percentage-of-sales method •Share-of-market/share-of-voice •Objective/task method ************************************************************* *A/B testing is essentially an experiment where two or more variants of a page are shown to users at random, and statistical analysis is used to determine which variation performs better for a given goal. It's used to test variations of an Ad. You could test 2 totally different creative ideas, or just minor tweaks between the two in terms of layout, photo selection, copy blocks, etc.
Three levels of ethics in advertising
-Traditional customs and principles of a society -Attitudes, feelings, and beliefs that form a personal value system -Singular ethical concepts (good, bad, right, wrong, duty, integrity, truth)
Communication tools in Marketing
:TV commercials websites social media messages product placement in TV shows coupons sales letters event sponsorship telemarketing calls e-mails
A Chapter 6 Account Planning and Research
Account Planners: •Individual at an advertising agency primarily responsible for account planning •Represents the consumer •Focuses the creative process on nurturing a relationship between consumer and brand *********************** Marketing research: •Collected data must be validated, edited, coded, and tabulated. •Answers must be checked to eliminate errors or inconsistencies .•Data must be summarized. •Systematic gathering, recording, and analysis of information to help managers make marketing decisions •Identifies consumer needs and market segments •Helps develop new products •Helps devise marketing strategies •Assesses the effectiveness of marketing activities ********************************** Types of Ad research 1)Advertising strategy research: Used to help define the product concept or to assist in the selection of target markets, advertising messages, or media vehicles. 2)Creative concept research. Evaluates the target audience's acceptance of different creative ideas at the concept stage. 3)Pretesting of ads. Used to uncover and diagnose possible communication problems before a campaign begins. 4)Post-testing of ads. Enables marketers to evaluate a campaign after it runs. Primary data:research information gained directly from the marketplace Secondary data: information that has previously been collected or published Primary Research: Collect data directly from a marketplace Qualitative: smaller and more connected target audience Quantitative: Mass audience in target market. Appeals to large sums of consumers -(Tests include Observation, Experiments and Surveys) Projective: Ask the consumer a question to know their feelings on a product Intensive: Uses deep feelings and attitudes to get feedback from consumers Ethnographic: Observing behavior and culture by going out and participating in it *********************** TEST METHODS -Pretesting (Direct Questioning, Central Location: Ads are shown in shopping centers in a 1v1 style, and Clutter Tests: Commercials are thrown into a pool and the watcher views all of them while the testers are measuring effectiveness and if the viewer is watching) -Post Testing (Attitude Tests measure the effectiveness of an Ad by making the entire company and its products look good. Recall Tests: Checks in with the consumer after they have viewed an ad. Inquiry test:Gives the consumer a free sample of the product or service. Sales tests: compares sales before and after an ad campaign) -In order for a test to be valid, first it has to be reliable - Sample: a sneak peak to an exclusive group of the target audeince -Nonprobability sample: Testing with volunteers.( Easier, less expensive) 1) Eye tracking is an essential measure for ad testing. It demonstrates how respondents visually consume creative and whether key elements get noticed or go missed. *Eye-tracking can use the camera in your laptop or phone, or they can be portable (headset). Additionally, it allows you to synchronize and better analyze additional measures. *Knowing how audiences feel and react is much more powerful when tied to a defined element of an ad stimulus. 2) Galvanic skin response (GSR) is commonly used in ad testing to gauge emotional response. -This measure detects sweat response across the skin, indicative of physiological arousal, and allows you to understand the intensity of emotional response. 3) Electroencephalography (EEG) - While this can be a more invasive sensor experience (requires a cap placed on the head), it can also provide better temporal resolution than GSR allowing for highly detailed moment-to-moment diagnostic insights. 4) Facial Expression Analysis (FEA)Facial expression analysis is used to recognize human emotions based on facial cues through advertising experiences. -It provides moment-to-moment valence so you can understand whether audience emotional is positive, negative, or neutral at any given time as well as discrete emotions such as joy and surprise. Respondents may do the following: •Assume the role of expert or critic •Invent opinions to satisfy the interviewer •Be reluctant to admit they are influenced •Vote for the ads they think they should like *********************** Effective survey questions have focus, brevity, and clarity. Types of questions: •Open-ended •Dichotomous (Yes, or No) •Multiple choice •Scale
A Chapter 3: Business of Ads
Advertising agency: Independent organization of creative people and businesspeople that specialize in creating ads. *********************** Local agencies-Specialize in creating advertising for local businesses. -Don't preform all IMC functions. -Represents local businesses/ events of a community. National agencies-Produce and place the quality of advertising suitable for national campaigns. -Created different departments to make big agencies more organized -With these departments, more ideas, sales. Also made keeping track International agencies- Have offices or affiliates in major communication centers around the world and help their clients market internationally. -Assumes a product's uses and needs are universal -Bigger corporations mange their ads •-By product or brand. •-By subfunction of advertising (copy, art, digital media) •-By end user (consumer advertising). •-By medium (radio, TV, digital, outdoor) .•-By geography (Location) *********************** TASKS PREFORMED IN AGENCIES The main departments: 1)Account management. 2)Account Planning - Research what the advantages are to a product and why a consumer would buy it. -Voice of Consumer -Often also responsible for keeping up with latest trends in new platforms and apps. 3)Media Planning -Selects what platform the ad will be presented on -Responsible for budgeting - 4)Creatives -The people who create the content that make up and advertisement (Headlines, pictures, graphics) ************************************************************* How they make $$ -Media commission:compensation paid by a medium to recognized advertising agencies, traditionally 15 percent, for advertising placed with it •Markup:source of agency income gained by adding some amount to a supplier's bill, usually 17.65% ********************************************************** Methods Used to Gain Clients: Referrals-From peer agencies, clients, and review consultants Presentations- Agencies make presentations of the advertisement it wants to use. Networking and community relations- Work for charities or nonprofit organizations to make new contacts Soliciting and advertising for new business -By advertising, writing letters, making cold calls, or following up on leads -By submitting the best ads to competitions to win awards and gain publicity
Privacy rights:
An individual's right to prohibit personal information from being divulged to the public. -Holds ethical, legal, and practical laws for advertisers
Positioning:
Association of a particular brand with a particular set of customer needs that rank high on consumer's priority list.
Effect of Advertising on Competition
Big advertisers have a limited effect on competition or small businesses. -One advertiser is not large enough to dominate national advertising. -Freedom to advertise encourages more sellers to enter the market. -Regional or local businesses can flourish. Being big is cool, but being big has issues, as well. -Non-advertised store brands compete with nationally advertised brands.
(B-to-B -Business to business)
Businesses who buy products for either their business or to supply other businesses with products.
Puffery
Definition: Exaggerated, subjective claims that cannot be proven true or false -Many countries prohibit Puffery -Puffery is allowed to a degree and is not prohibited by most advertising laws.Generally, a business or seller cannot be held liable for misrepresentation if they issue a statement that amounts to mere puffery or "puffing." -Often a source of humor in advertising -The reason why puffery is not prohibited is that most courts consider puffing to be so immaterial and unreliable that it cannot form the basis for liability. However, if the statement does contain a specific misrepresentation or an outright lie, the consumer may hold the seller liable for violations such as false advertising or fraudulent representation. the more general your claims, the more legal protection you get. Cases of abuse have been widely committed, often involving false advertising and scams. A recent study showed over 50% of social media posts fitting their "suggestions" were identified as "puffery" !!!
Social responsibility:
Doing what society views as best for the welfare of people in general, or for a specific community.
Ethical advertising:
Doing what the advertiser and advertiser's peers believe is morally right in a given situation
Golden age
End of World War II to about 1979 -Introduction of television -Growth of TV advertising -Postwar prosperity
Effect of Advertising on the Value of Products
Gives brands added value-Added value: Increase in worth of a product or service provided by communicating benefits -Creates a positive image that makes a product more desirable to consumers -Educates consumers about new uses for a product -Allows consumers to communicate who they are (or want to be) through the products they use **In a free-market system, consumers can choose the values they want in the products they buy.** **Many of our wants are emotional, social, or psychological rather than functional. One way we communicate who we are (or want to be) is through the products we purchase and use.**
Market segmentation:
Identifying unique groups whose needs could be met by specialized products
Advertising:
Paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future -Paid •Mediated •Source •Persuade now or later -debatable
Pre-Industrial (early)
Period between the beginning of written history and the nineteenth century"Media" was created, leading the way for advertising. Invention of paper and printing press—rise of written advertising.
Industrial Age
Period from mid-1700s through end of World War I (1918) When production was the major concern of manufacturers-Late 1700s -Industrial revolution in England-1800s -Industrial revolution in United States-By using machines to mass-produce goods with uniform quality, large companies increased their productivity. For the first time, it cost people less to buy a product than to make it themselves. As people left the farm to work in the city, mass urban markets began to emerge. This fueled market development and the growth of advertising. -1890 -Ayer & Sons became first modern ad agency -1911 -First truth in advertising codes -Rural free mail delivery -Growth of the U.S. industrial base -Public schooling and rising literacy
A Chapter 4: Targeting and Marketing Mix
Persona: fictional characters that are created upon research that would act as the target market of a product. Why do we use marketing personas? -By defining your ideal customers' needs, marketing personas help marketers use time and energy more efficiently and, ultimately, create better products and services. -Marketing is influenced by the 4 ps. -Happy customer= better reviews on a product -Steps involved in market segmentation :•1) Identifying groups with shared needs and characteristics •2) Combining the groups into larger segments through a marketing mix -Target Market is bigger than Target audience (B to B): Businesses who buy products for either their business or to supply other businesses with products. (B to C): people who buy products for their personal use -Demographics: refers to statistical data (age, gender, income, etc.) collected for a particular population. -Psycho-graphics refers to information about a particular population's attitudes, aspirations, and other psychological criteria. ************************************************************* TYPES OF MARKET SEGMENTATION: 1. Behavioristic: Segmenting based on the benefits wanted by the consumer -4 most common behaviors are User Status, Usage Rate, Purchase occasion, and benefits sought 2. Geographic: Segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within a region. 3. Demographic:Based on a population's statistical characteristics with quantifiable factors including: •Gender •Age •Ethnicity •Occupation •Income 4. Geographic: Combining demographics with geographic segmentation to select target markets in advertising. 5.Psychographic: Defining consumer markets based on psychological variables •Values •Attitudes •(Personality) •Lifestyle North American Industry Classification System (NAICS) codes: method used by the U.S. Department of Congress to classify all businesses based on broad industry groups, subgroups, and detailed groups of firms in smaller businesses ************************************************************* TARGETING PROCESS: 1. assessing which of the newly created segments offer the greatest profit potential and which can be most successfully penetrated. 2. Matching products to markets. - Consumer's perception of a product or service as a "bundle" of utilitarian and symbolic values that satisfy needs. Progressive stages in the life of a product including introduction, growth, maturity, and decline that affect the way a product is marketed and advertised. *********************** MASLOW'S Hierarchy 1. Physiological needs - these are biological requirements for human survival, e.g. air, food, drink, shelter, clothing, warmth, sex, sleep. 2. Safety needs - once an individual's physiological needs are satisfied, the needs for security and safety become salient. People want to experience order, predictability and control in their lives. These needs can be fulfilled by the family and society (e.g. police, schools, business and medical care). 3. Love and belongingness needs - after physiological and safety needs have been fulfilled, the third level of human needs is social and involves feelings of belongingness. 4. Esteem needs are the fourth level and include self-worth, accomplishment and respect. Maslow classified esteem needs into two categories: (i) esteem for oneself (dignity, achievement, mastery, independence) and (ii) the desire for respect from others 5. Self-actualization needs are the highest level in Maslow's hierarchy, and refer to the realization of a person's potential, self-fulfillment, seeking personal growth and peak experiences. -Important in advertising because consumers are motivated by needs ***********************************************************
Advertising strategy
Refines the target audience. It defines what response the advertiser is seeking, especially what the audience should: -Notice -Think -Feel
A Chapter 5 Communication and consumer behavior
SHANNON-Weaver Model: Source>Encoding> Message> Channel>Decoding> Receiver Consumer Behavior: The mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy particular needs and wants. *********************** Consumer Decision Process: Series of steps a consumer goes through in deciding to make a purchase - 3 internal human operations perception, learning and persuasion, and motivation—that govern the way consumers discern raw data (stimuli) and translate them into feelings. •Interpersonal: social influences including family, society, and cultural environment •Non-personal: factors outside of the consumer's control, such as time, place, and environment. -Evaluation of alternatives: choosing among brands, styles, and colors -Post purchase evaluation: determining whether a purchase has been a satisfactory or an unsatisfactory one. Perception: one's personalized way of sensing and comprehending stimuli Stimulus:physical data that can be received through the senses Perceptual screens: physiological or psychological filters that messages must pass through Cognition: point of awareness and comprehension of a stimulus Self-concept:images individuals carry in their minds of the type of person they are and who they desire to be Mental files: stored memories in consumers' minds *********************** LEARNING •Cognitive theory: views learning as a mental process of memory, thinking, and the rational application of knowledge to practical problem solving (HIGH INVOLVEMENT) •Conditioning theory (also called stimulus-response theory): views learning as a trial-and-error process (LOW-INVOLVEMENT) *********************** NUEROMARKETING -3 Parts of Brain: *Top= Think (NEO) *Middle= Feel (LIMBIC) *Bottom= decides=REPTILLIAN 1. LIMBIC (Emotions: feelings, memories, and values) 2. Reptillian (Heart rate and breathing/ Fight or Flight), 3. Neocortex *Neocortex Broken up into 2 parts. (Left for analyzing and logic, Right for creativity and intuition) *Rational Choice Theory: Tells us that consumers are rational agents who make choices after using the rational part of the brain (the Neocortex). Consumer decisions are actually made in the older or more unconscious parts of the brain. ********************** 1) Family influence: Starts at an early age •Affects one's socialization as consumers 2) Societal influence: •Social classes: traditional divisions in societies wherein people in the same social class tended toward similar attitudes, status symbols, and spending patterns •Reference groups: people we try to emulate or whose approval concerns us •Opinion leader:someone whose beliefs or attitudes are respected by people who share an interest in some specific activity 3) Cultural and subcultural influence: •Culture: homogeneous group's whole set of beliefs, attitudes, and ways of doing things, typically passed down from generation to generation •Subculture: segment within a culture that shares a set of meanings, values, or activities different from those of the overall culture
cookies:
Small files that keep a log of where people click, allowing sites to track customers' web-surfing habits.
Primary demand:
When consumers are demanding products from one category
Subliminal advertising:
advertisements with messages (often sexual) that aren't made obvious to the majority of the viewers
Selective demand
consumer demand for the particular advantages of one brand over another. -Helps Competition
Marketing strategy
helps to determine: Who the targets of advertising should be •In what markets the advertising should appear •What goals the advertising should accomplish
Deceptive advertising:
misrepresentation, omission, or other practice that can mislead a large amount of consumers
Word-of-mouth (WOM) advertising:
passing of information in an informal, unpaid, person-to-person manner
(B-to-C -Business to Consumer)
people who buy products for their personal use
Values and Life Styles (VALs)
•3 Primary motivations: 1.ideals (or basic principles) 2.achievement (tangible markers of success or accomplishment) 3.self-expression (a desire for experiences or to take risks). -About 85%+ felt the word-based VALs were at least reasonably accurate. -About 70% felt the picture-based assessment was at least reasonably accurate The VALS Types: Innovators. Thinkers. Believers. Achievers. Strivers. Experiencers. Makers.
Humor
•Humor normally always captures attention or awareness. •From that AIDA model, it means it's excellent at the first step. •Not as universal between different groups as you'd think. •Takes focus away from the brand (normally). •Associated with peripheral (Laertes) processing in that the humor is viewed, but the brand often isn't. -Humor that is not related to an ad's key message may be so distracting that the key message is missed. -Humor that misses the mark can detract from an ad's overall effect. •Humor's effect can differ by gender, depending on the brand category and the topic/message. Humor can make ads more enjoyable, involving, and memorable. There are two big mistakes that you often see in the campaigns that fail,' Washer says. 'The first, and easily the biggest, is trying to include too much product messaging. As soon as you start doing that, you lose the audience. It's important to fight the urge to burden a comedy with product information. The second mistake I see is companies that simply are not willing to take a risk by being a little bit edgy. If you are safe, your results will be average."
