Test 1 Notes
Test 1 Notes MKTG 477
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This 6 page Bundle was uploaded by Clara Kerrone on Friday February 13, 2015. The Bundle belongs to MKTG 477 at Washington State University taught by Dr. Darrel Muehling in Fall. Since its upload, it has received 217 views. For similar materials see Promotion Management in Marketing at Washington State University.
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Date Created: 02/13/15
Intro to advertising Wednesday February 112015 230 PM quotAdvertisingis a businessquot 0 Facebook makes money on ads 0 Ad during the Superbowl costs 4m per 30 secs this year 0 Ads attached to youtu be videos Pac12 network pays schools to broadcast their games gt this is how we funded our new stadium Nearly everything surrounding advertising and media decisions is somehow tied to dollars and profitability Famous quotes quotThe fastest way to kill a bad product is with good advertisingquot gt effective advertising will bring people to the product but its effectiveness will be revealed even more quickly Bad products die faster Satisfied customers will tell 5 people how much they like it while dissatisfied people will tell 15 IMC Friday January 23 2015 1011 AM IMC Integrated Marketing Communities Involves coordinating the various promotional elements and marketing activities that communicate with the firms customers Promotional mix elements 0 Advertising 0 Public relations 0 Sales promotion 0 Personal selling direct marketing Sales promotion targets 1 Consumers rebate contest coupons BOGO 2 Businesses wholesalers retailers a Companies will pay more to have their product on a specific shelf called a b Slotting allowance paying a store to buy a specific spot on a shelf c Exit fee 3 The company39s own sales rep a Give reps incentives to sell more Marketing Activities 0 Product 0 Place 0 Selling at Nordstrom vs Walmart 0 Martha stewart started at K mart and moved up K mart isnt exactly consistent with her IMC However it is important that your product is available you have to start by finding a distribution channel and then move up in the market place 0 Price 0 Does it really cost that much more to sell perfume at walmart than Nordstrom Is the quality really all that different 0 No but it again is part of the IMC The price is part of the image that they want to be created fortheir product 0 Promotion Participants in the IMC Process Advertiser 0 Ex Walmart sponsor company 0 Advertising agency 0 The company that is trying to put the vision of the advertiser into reality 0 Media organizations 0 Where the ads are placed 39 Tv networks blimp etc 39 Walmart could also be a media org because they have their own TV channel the tv39s that are playing in Walmart and playing advertisements as you walk through the aisles for their different products Proctorand Gamble might buy time on thoseTV39s so that their products are being advertised as their consumers are standing in the very aisle makinga final decision 0 Other IMC specialists 0 Sales promotion agencies PR firms etc 0 Seattle technology store accepting bananas as payment and then donated them all to the zoo Collateral Services 0 Marketing research firms 0 Lego having a focus group with their target market boys 812 A Guiding Principle of Promotion All promotion should be aimed ata specific target group with a specific objective in mind and within a certain budgetary constraint Remember out of everything Everything in this class boils down to this statement GROUP OBJECTIVE BUDGETARY Develooing a PromotionalStrategV Research 0 U nderstand their consumers competitors 0 Target Marketing 0 Who are we trying to reach IMC strategies with budgetary constraints 0 Monitoring results 0 Are we doing what we want to do Is it working Headlines from Ad Age Wednesday February 112015 241 PM 1 quotCircuit City FBC split amidst creative reviewquot a Putting an account up for review b Pitching an account account is the business and it is being sales pitched 2 quotWrigley fields new pitch Gum aids memory stressquot a Same as 1 3 quotKids39 upfront soars as prices rise 1520quot a Upfront market a buying period that occurs before the TV season ends i Buying swimsuit in winter buyingTV slot inventory 4 quotScatter Market Implodes a Scatter market a buying period after the upfront market for remaining ad inventory i Ex the swimsuits still left to buy in the middle ofthe summer ii Ex desperate housewives was an unexpected hit for ABC so the scatter market price was higher than the upfront market price was 5 quotNBC doles outSSOm in makegoodsquot a Make goods a payback to an advertiser if forsome reason a condition wasn t met i Examples 1 When the ad is preempted quotwe interrupt this programquot appears and the ad doesn t occur 2 Technical difficulties ad is cut short no sound etc 3 A promised audience size Tv rating was not deliveredmet a Nielson TV rating company determines how large audiences are b In footballgame if significant amount of people stop watching and ad doesn t get the rating level they thought they would 4 fthe ad before or after is too similar or controversial it could be confusing to viewers They could think it was a continuation be confused of message made ineffective etc a When monster showed people in their underwear was immediately followed by Levi39s in their underwear 6 quotRed Lobster returns to old tagline in new effortquot a Tagline a sentence or phrase that often comes near the end ofa tv commercial or at the bottom ofa print ad forthe purposes of creating and reinforcing a brand image 7 quotMadison Ave out of touchquot a Assumes the reader will know what MadAveis a street in NY that is known for shopping and for the ad agencies located on it 8 quotTop 25 spotTV Advertisersquot a quotspottvquot ad in a local area vs national network tv covering the whole country Use spot when only wanting to reach a specific regional audience or several spots i race weather income ii Subaru does only spot and addresses based on weather only cater to cold climates Market Segmentation Monday January 26 2015 1008 AM Market Segmenting gt Target Marketing gt Positioning Segmentingdiscovering unique groups of consumers that exist in the marketplace Target marketingDeciding which ofthese segments you wish to target focus on Positioning developing and executing a creative strategy that creates or reinforces a brand image Whats the difference between a market segment and a target market 0 A segment is a group of people with similar characteristics a target market is the desired specific one that you are going to focus on foryour product 0 Think of market segments as groups of individuals Don39t think of them as products gt quotconsumerwho uses tooth pastequot 2 Approaches to Segmenting 1 A priori before any data are gathered and examined Assumes that differences must exist among consumers Segment accordingly No research or data youjust kind of know 2 Empirical begins with research of the marketplace Data analysis reveals segments What must be established to sav that vou have defined segments 1 Homogeneous within members in each individual group share relevant traits and needs a Do same things buy same things similar ages married single etc 2 Heterogeneous between traits and needs ofone group are different than those of anothergroup a There are differences across groups Grandma and grandpa playing Wii have different needs than teens 3 Substantial large enough to be potentially profitable There has to be enough people for it to be worth the time and effort 4 Meaningfully defined descriptions ofthe groups are appropriate forthe prod uctservice being segmented a Does it make sense to define by income forTV purchasing age tech orientation hair color i Hair color is not an important segment to TV manufacturers although it is a segment It should not be taken into account It would be important to hair color or makeup companies b Segmentations bases how are groups meaningfully defined i Demographic Age income marital status gender education fam size ii Geographic Country region state city neighborhood iii Psychographic lifestyles AIO39s activities interests opinions iv Behavioristic behaviors that are specifically related to the purchase and use of a specific product 1 Usage rate 8020 rule 80 ofa companies sales may come from 20 oftheir users Heavy users vs light users 2 Brand loyalty consistent purchasing within a company 3 Store type where do you buy the specific product What kind of store TV at Walmart versus Best Buy 4 Benefits sought why do you buy this product what do you get out of it Whats the purpose of the profile 0 To direct and guide advertisers in their attempt to reach consumer segments Reaching consumers o Creatively an ad campaign that consumers can identify with shacking gum ad that college aged understand 39 Need to know age when wantto use the product 0 Literally via media in yourclass room WHERE EXACTLY IS OUR CONSUMER 39 Where do you buy the product I What tv shows do you watch Example Recruitment ad for the Army Directed at parent appears in TIME magazine Ifyou were developing profiles for purposes of designing advertising creative strategies which segmentation base would provide you with the type of info that would be the most helpful Behavioristic specifically benefits sought info 0 Would want to know why are you chewing gum What do you get out of it 0 Then enrich the profile by adding details about consumers psychographics demographics and geographic Whats the fundamental difference between behavioristic and psychographic Behavioristic items describe behaviors specifically related to the product market being segments whereas psychographics items are not product servicespecific Target Marketing Strategies Wednesday January 28 2015 1025 AM We have identified the segments for our product market Now what gtDecide on the target marketing strategies we should employ Target Marketing Strategies 1 Undifferentiated one strategy targeting the entire market ignoring segment differences quotOne size fits allquot 2 Differentiated unique strategies targeting each segment separately and differently 3 Concentrated targeting a single segment with a unique strategy while ignoring the others Putting all efforts in just one Positioning gtDeveloping and executing a creative strategy that creates or reinforces a certain brand image in the minds of consumers from the target market 0 This is the primary focus and responsibility ofadvertising Positioninga university Example WSU quotWorld Class Face to Facequot Ways of positioning 1 Productattributesbenefits a Volvo being the safest car 2 Pricequality relationship a Promote brand as being a good value low price ie Walmart Product user 4 Competitor a Talk about our product by positioning next to and competing with another company Hertz vs Avis Pepsi vs Coke 5 Cultural symbolicon a The Keebler elf RCA with the little dog US PostalService eagle US Forestry Group with Smoky Bear b Associatingyour brand with an icon U Theoretical Models Monday February 2 2015 1016 AM THEORETICAL EXPLANATIONS FOR HOWADVERTISING WORKS Understand theorymodel and apply to an advertising situation for exam MODEL 1 The Communications Process Model 0 A basic model of communication in general Suggests communication is quotshared meaningquot 0 see model in bookinvolving sendergtencodinggt messagegtdecodinggtreceiver in chapter 5 Fields of experience X 1 Channel of I Sourcel gtEnoode l Messagel gt Decode IReceiver ll Communication J Feedback Response mmquot Feedback loop Some basic notions about communication Involves at least 2 parties the sender and the receiver 0 Individuals interpret communicationsdifferently Knowingunderstanding the receivers background and needs aids communication 0 this is why we do tons of research and make very specific target markets 0 Feedback aids communication 0 Communication is aided when the parties have similar feeds of experience 0 Some noise in the process is inevitable 0 Problems with feedback encoding or decoding etc To effectively communicate marketers must overcome quotnoisequot 0 Noise any obstruction in the communication process 0 Can occur at any stage encoding message channel decoding feedback etc 0 4 rules to follow to overcome noise a Know and understand yourcustomer 39 Advertisers should not insult the intelligence of their audience 39 But they should not assume that their audience is intelligent b Make the ad attentiongetting but simple 39 KISS keep it simple stupid c Monitorthe effectiveness of the ad 39 Seek consumers true responses to the communication 39 Sales of a product are often not a good measure of advertising effectiveness III Consumers may love yourads but not buy your product III Or they may hate yourad but buy your product anyways d Take control over the production process 39 Make sure the ad says what you intend forit to say MODEL 2 Low Involvement Learning Mere Exposure Model Exposure to and familiarity with a brand via advertising yield topofthemind awareness and positive feelings toward the brand quotAdvertising is like grass You never see it grow but every one in a while you may have to get out the lawn mowerquot gt Most people don39t even realize that advertising is having an effect on us but it does The grass is growing even if you cant see it fwe can make people familiar with our brand they are going to have a more favorable viewattitude ofour brand Make sure people are repeatedly exposed to your brand Ex Target being the continuous and only advertiser in the magazine quotThe New Yorkerquot made the reader so aware oftheir brand that it would have a favorable influence in that specific magazine Undercoverstealth Marketing Having a seemingly innocent consumerout in the real world using a product and semi drawing attention to it in a believable way asking someoneto take a picture of you to ad for the camera playing a video game in Starbucks etc Many stores give discounts to their employees to buy their clothes for free advertising MODEL 3 Affect Transfer Attitude toward the ad Model Feelings about the ad are transferred to feelings about the brand via Classical Conditioning processes affect means feelings feelings transfer from one thing to the brand Classical conditioning Positive association occurs over time from repeated exposures U nconditioned stimulusad for brand X gt unconditioned response positivefeeling l l Conditioned stimulus Brand X product gt conditioned response positivefeeling 1 Try to have an ad that creates a positive feeling 2 Have to have repetition over time MODEL 4 Information Processing Model gt Consumers process info in a series of stages each stage more quotmentally demandingquot than the previous one Cant move on a step until you ve done the one prior to it Stages of Information Processing Model 1 Exposure being in physical proximity to the ad stimulus Point of purchase display ad in newspaper etc 2 Attention allocating mental capacity in order to focus on the ad stimulus 3 Comprehension trying to take meaning from understand what the ad stimulus is attemptingto communicate a Noise can occur here 4 Yieldingacceptance accepting or rejecting the ad stimulus message a Aka persuasion b In comprehension you understand what is happening or being said Then in acceptance you decide whether or not you agree with the statement 5 StorageRetention placing pieces of our interpretation of the ad message into long term memory 6 Retrieval bring pieces of stored memory regarding the ad message back to consciousness Information Processing quotSelectivityquot insert triangular visual of above steps Promotional Strategies 0 Exposure the poster in the class room the FB ad etc 0 Attention pop up ads Camel ad with pop up in magazine that plays music personalized ads schweitzer having slopes map saying quotJeff39s Comprehension KISS is a way to overcome selective comprehension 0 Don t overwhelm youraudience with info that might be hard to understand YieldAcceptance next lecture StorageRetention repetition Giving a phone numbera jingle play it over and over Retrieval to get you to remember something they bring you back to the given situation and jog your memory until you can recall MODEL 5 ACTIVE CONSUMERCOGNITIVE RESPONSE MODEL Consumers thoughts at the time of ad exposure termed quotcognitive responsesquot influence their feelings toward the ad and the ad brand What are 2 oftenused measures of advertising effectiveness 1 Product sales 2 Advertising recall however NEITHER are good measures No indication of how the consumer reacted to the ad Competing EXpIanations Inactive Consumer wrong Ad Active Consumer correct Ad exposuregt gt The diff between this and the affect transfer model is that it is not about general feelings it is much more specific and it is immediate response as compared to change over time via classical conditioning Cognitive responses include 1 Messagerelated a Support arguments positive i Supporting ad that you saw Yeah Nissan is a great car i b Counter arguments negative i I don t agree with this I have friends who have Nissan39s and they have a lot of problems with them Disagreeing with the message of the ad as they are interpreting it c Essentially do you like or dislike the ad 2 Source spokesperson related a Source bolsters positive i the guyin the ad looks like my bro and I love my bro b Source derogations negative i tiger woods in an ad is very controversial 3 Ad Executionrelated a Favorable positive b Unfavorablenegative If any aspects of the ad create a negative response according to this model the ad needs to be redone This model is the answer to the Yield and Response aspectfrom the last model
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