Marketing 471

Card Set Information

Marketing 471
2011-02-23 11:52:49
Exam One

Ch 1-5
Show Answers:

  1. What is Advertising?
    Advertising is Paid, Nonpersonal Communication From An Identified Sponsor Using Mass Media to Persuade or Influence an Audience.
  2. The Evolution of Advertising
    • 1441-1850- Age of Print
    • 1850-1900- Industrial Revolution & Consumer Society
    • 1900-1950- Age of Science
    • 1920s- Rise of Agencies
    • World War I-World War II- Ads decline
    • 1950s- Reintroducing Consumers to Marketing
    • 1960-1970- Creative Era
    • 1970-1990- Accountability Era
  3. Types of Advertising
    • Interactive
    • Brand
    • Retail or local
    • Political
    • Directory
    • Direct-Resonse
    • B2B
    • Institutional
    • Public Service
  4. What Makes an Ad Great?
    • Explicit objectives should drive the planning, creation, and execution of each ad.
    • An ad is great to the extent that it achieves its objectives, not because it wins awards.
    • Creativity for its own sake does not always lead to great advertising.
    • Good or Great Ads Work on Two Levels
    • -Satisfy the Customer’s Objectives by Engaging Them & Delivering a Relevant Message
    • -Achieve the Sponsor’s Objectives
  5. Broad Dimensions That Characterize Great Advertising
    • Strategy
    • Execution
    • Creativity
  6. Practical Tips # 1Measuring an Ad’s Success
    • Consider one item as the measure of an ad’s success: How well does it achieve its goals? Some typical goals include the following:
    • -Increased sales
    • -Attitude change
    • -Heightened brand awareness

    BONUS! This is called a Heuristic, or a simplified decision process
  7. The RULES of Advertising
    • Advertising as a strategic endeavor is bound by processes, methods, and rules
    • Advertising as a creative endeavor MUST break those rules

    Only by understanding the strategic rules and the reasons for their existence will you come to understand when it is okay to break them for the sake of creativity
  8. Five Players of Advertising
    • The Advertiser is the individual or organization that usually initiates the advertising process.
    • The Advertising Agency plans and implements part or all of the advertising efforts.
    • -May use an outside agency, or their own advertising department or in-house agency.
    • The Media are the channels of communication that carry the messages from the advertiser to the audience, i.e. television, magazines, radio, etc.
    • The Vendors are a group of service organizations that assist advertisers, advertising agencies, and the media, i.e. freelance copywriters, graphic artists, photographers, etc.
    • The Target Audience may be the purchaser or the consumer of the product, or both. May need to design different ads for each group.
    • -Critical to know as much about these target audiences as possible.
  9. Practical Tips # 2 Ogilvy’s Advertising Tenets
    • Here are some advertising tenets that David Ogilvy offers: (11)
    • “Never write an advertisement you wouldn’t want your own family to read.”
    • “The most important decision is how to position your product.”
    • If nobody reads or looks at the ads, “it doesn’t do much good to have the right positioning.”
    • “Big ideas are usually simple ideas.”
    • “Every word in the copy must count.”
  10. Current Advertising Issues
    • Interactive Advertising
    • Integrated Marketing Communication
    • Globalization
    • Location Based Marketing
    • Monetization of New Media
  11. What is Marketing?
    The way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted
  12. Key Concepts in Marketing
    • The marketing concept
    • Exchange
    • Branding
    • Added value
  13. The marketing concept
    • Marketing should focus first on identifying the needs and wants of the customer
    • To compete effectively, marketers must focus on the customers’ problems and try to develop products to solve them
  14. Exchange
    • The act of trading a desired product or service to receive something of value in return
    • Money is exchanged for goods or services
  15. Branding
    • The process of creating a distinctive and special meaning for a product
    • Brand equity is reputation, meaning, and value that the brand name or symbol has acquired over time
  16. Added value
    A marketing or advertising activity makes a product more valuable, useful, or appealing
  17. The Key Players and Markets
    • The marketer
    • Suppliers and vendors
    • Distributors and retailers
  18. The marketer
    • The organization, company, or manufacturer producing the product and offering it for sale
    • The advertiser or client (from the agency’s point of view)
  19. Suppliers and vendors
    Other companies that manufacture the materials and ingredients used in producing the product
  20. Distributors and retailers
    Various companies that are involved in moving a product from its manufacturer to the buyer
  21. Types of Markets
    • Market- Where the exchange between buyer and seller takes place. A particular type of buyer
    • Market share- The percentage of the total market in a product category that buys a particular brand
    • Consumer
    • Business-to-business
    • Institutional
    • Channel
  22. Marketing Mix Strategies
    • Product
    • Place
    • Price
    • Promotion
  23. Product Strategies
    • The product is both the object of the advertising and the reason for marketing
    • Product category- A class of similar products
  24. Place Strategies
    The channels used in moving the product from manufacturer to buyer
  25. Price Strategies
    • Based on the cost of making and marketing the product and on expected profit
    • -Customary
    • -Psychological
  26. Promotion Strategies
    • Use face-to-face contact between marketer and prospective customer
    • Used to create immediate sales
  27. Full-Service Agencies
  28. Include the four major staff functions
    • -Account management
    • -Creative services
    • -Media planning and buying
    • -Account planning
    • Also have accounting, traffic, production, and HR departments
  29. Specialized Agencies
    • Specialize in certain functions, audiences, industries or markets
    • -Creative boutique
    • -Media-buying services
  30. Account Management
    • Acts as a liaison between the client and the agency
    • Responsible for interpreting the client’s marketing strategy
  31. Creative Development
    • People who write
    • People who design ideas for ads and commercials
    • People who convert these ideas into commercials
  32. Media Planning/Buying
    • Recommends to the client the most efficient means of delivering the message
    • Responsible for buying, planning, and research
  33. Account Planning
    • Gathers all information on the market and consumers and acts as the voice of the consumer
    • Prepares comprehensive recommendations
  34. Internal Agency Services
    • Traffic department
    • Print production department
  35. Revenues and Profits
    • Commission
    • Fee
    • Retainer
  36. International Marketing
    • An international brand is available virtually anywhere in the world
    • The shift requires new tools for advertisers, including one language, one control mechanism, and one strategic plan
    • The choice of an agency depends on the decision to standardize messages or localize them to accommodate local cultures
  37. The Dynamics of Modern Marketing
    • Integrated marketing- All areas of the marketing mix work closely together to present the brand in a coherent and consistent way
    • Relationship marketing- Marketing that considers all the firm’s stakeholders
    • Permission marketing- Inviting prospective customers to self-select into a brand’s target market in order to receive marketing communication