FeedbackA message that acknowledges or responds to the original message.BrandingLogos, Slogans, Signs (Differentiation). Promises made to customers...based on multiple experiences over time...delivered with consistently high level of quality and value...that are perceived to be unparalleled relative to the competitionDe-marketingMarketing that starts with companies being more concern. Example: Producers of energy an energy-consuming goods used advertising to slow the demand for their products.Market SegmentationA process by which marketers searched for unique groups of people whose needs could be addressed through specialized products.Positioning StrategyAn effective way to separate a particular brand from its competitors by associating that brand with a particular set of customer needs that ranked high on the consumer's priority list.Media ConvergenceMedia venues across platforms(integration of media marketing)Active ControlThe activity of managing or exerting control over somethingTwo way communicationSomething that is communicated by or to or between people or groupsconsent decreesignature to stop the advertising, no wrong doing admittedcease and desist orderissue prohibiting further advertising of the productPurpose of Advertising in SocietyThe purpose of Branding: Logos, Slogan, Signs(Differentiation) Informational- Common Info about the product New and Repeat Consumers(Inducement) Increase Usage-Stimulate Sales Distribution-Stimulate Distribution Reduce cost of salesEarly AdvertisingInvention of paper and movable printing press(Gutenberg, 1440s) The purpose and function of advertising was often in the form of posters, handbills, and signs.Pre-Industrial AdvertisingNewspaper became the first mass medium Advent of Puffery-Making exaggerated claims 1650, first news paper advertisement Advent Salesmanship (personal selling)Industrial AgeThis age has has the most changes. This age started from production orientation to sales orientation. This meant that business started to focus on products and brands on what people want. By the end of the WW1 and 1920s, consumption had driven society and had a great deal of prosperity until the great depression. Product differentiation began: quality, variety, and convenience. A radio was a huge invention in this age The early uses were maritime communication, non-commercial entity, Macroni, ATT&T and westinghouse all culminated to form RCA in 1919. The early programs on the radio were produced by advertisers. The programs were music, religion, and drama. Most of the programs were powerful and immediate. Advertising helped pay for radio. The invention of business to business advertising (Example: Coca-cola advertisements) Wholesalers controlled distribution -Unbranded Commodity Products. First Branded Product: Uneeda BiscuitGolden Age of AdvertisingThis age happen between 1946-1970, the most important transition associated with this age was television. Television became a source to distribute advertising. Advertisement became unique selling propositions, what product offers to the consumers.3 major impacts of quiz show scandal1. Distrust of TV programs 2.Congress amended the communication act 3.Networks took charge of their programming1948 television freezeThe freeze of 1948, which was issued by the FCC, was intended to last six months to give the FCC sufficient time to deal with matters regarding giving licenses to new stations and creating standards for them all to follow. Six months was suppose to give the Federal Communications Commissions (FCC) the time it needed to study the issues that were arising and create a blueprint, so to speak, for the future stations that were seeking a license. However, do to circumstance beyond their control, such as the Korean War, the FCC was unable to lift the freeze in the six month time period that they had hoped to. The FCC had five major issues on their hands: the freeze the FCC put on new TV stations in 1948, reservation of channel space for educational- noncommercial television, the reduction of channel interference, establish a national channel allocation map or scheme, and opening up of additional spectrum space. Some of these issues were more difficult to solve, some very easy, and some differed from city to city. The freeze was finally lifted after the Sixth Report and Order was issued, which expanded the channels for very high frequency channels, ultra high frequency channels, and educational channels. By the time the freeze was lifted, the war and Great Depression had also ended, which was changing the day to day life of Americans, giving them more leisure time. This new leisure time was filled with television and many new fads such as Davy Crockett and Elvis Presley emerged.televisionthe FCC approved a 525 line system in 1941. Originally there were 13 VHUF channels 23 Stations went on the air between 1941 and 1942 However, during the war only six stations remained on the air.Post-Industrial AgeIn this age there were change in societal views of consumerism. Society had more concerns in the environment. In this age, there were more mergers/global economy where companies began to buy one another in an attempt to better themselves. This age has competition in lowering trade barriers, growing international trade, and more products were being into the market. On the consumer side, there was a shift to more leisure products.Interactivity that influence online advertisingActive Control Two-way communication SynchroncityAttitudinal EffectsEmotional and FeelingsCognitive EffectsThoughtsBehavioral EffectsBehavior and ActionsPsychological appealsInformation Appeal Emotional Appeal Fear Appeal Humorous Appeals Sexual Appeals Patriotic Appeal Achievement/Success/Power Appeals TestimonialsMaterialismA value effect that creates unnecessary wants or needs and degrades our value systemInstrumental Materialisma value effect that is independent of greed and achieve higher needs(self-actualizations)Over-SaturationThis is an advertising clutter that has a daily regiment of advertising messages that may exceed information processing abilities. Because we are so exposed to many ads certain outcomes have occurred. The effects of saturation is that we are re-definning of advertising, cognitive defense and negative attitudes, and recall & recognition.Stereotypes in Advertising1. Gender Roles: Stereotypical roles and portrayals such as woman being in the kitchen 2. Objectification: Woman portrayed as objects. Ethnicities/Races 3. Stereotypical roles & associations 4. Social stigmas Example: Nurses are sexy. Old people are weak. Criminals look scary/bad.Advantages in Newspaper1. Sense of Immediacy: Day to day Newspaper typically contain new content. 2. Local Emphasis: Newspaper usually serve geographic area. Flexibility: Size wise, newspaper usually serve geographic area. Newspaper charge on the side of advertising. Run of paper means will run anywhere on paper. Reprinted Color Inserts 4. Sampling Ability- Free samples of products with newspaper delivery. 5. Catalog Value: CouponDisadvantages of Newspaper1. High Cost: Paying for newspaper; Higher national advertising rates. 2. Limited Coverage: there is only certain amount of people who read newspapers. 3. Decreasing circulation 4. Poor Production Quality 5. Small pass along audience: shorter lifespanadvantages of magazines1. Selectivity: able to reach niche audiences 2. Access to light TV views. Magazine readers tend to be on the higher income, higher education, who are light TV viewers. 3. Fine Colors reproduction 4. Long Life 5. Better option for pass-along-audience 6. Controlled Circulation-Usually in the business field.disadvantages of magazines1. limitation 2. early closing dates 3. lack of immediacy 4. slow building of reachadvantages of television1. sight, sound, and motion for dynamic selling. 2. Flexibility 3. Reach of both selective and mass markets 4. Cost efficiency-Daytime, cable, and fringe timedisadvantages of television1. High cost 2. Low attention-We don't want to watch ads 3. Commercial Skippingadvantages of cable television1. There is a national audience: ESPN, TNT, USA. 2. Added reach and frequency 3. Precisely defining the target audience 4. Broad Spectrum of AdvertisersDisadvantages of cable television1. Fragmented Audience 2. Less than National Coverageadvantages of product placement1. Not Overly presented as advertising (Implied Endorsements) 2. Ability to select program environment consistent with product image.disadvantages of product placement1. Lack of control by the advertisers 2. limited communication value 3. Variable exposure time 4. decrease value over timeadvantages of radio1. reach a special kids of audience 2. high frequency 3. supporting medium 4. excellent for mobile population 5. higher summer exposure 6. flexibility-spot radio 7. local coverage availabilitydisadvantages of radio1. many stations in one market 2. no catalog value 3. low attentiveness for some formatsadvantages of direct mail advertising1. easy verification of response 2. personal quality 3. long life 4. potential savingsdisadvantages of direct mail advertising1. High cost 2. Inaccurate mailing lists 3. Variances in delivery time 4. Clutteradvantages of outdoor advertisingExample: Billboard Banner on the High Way. 1.Wide Coverage Areas. 2.Largest Print Available 3.Around the clock exposure 4.high summer visibilitydisadvantages of outdoor advertising1. simple messages(have to be short) 2. recall 3. high cost 4. limited availability 5. transit advertising is often subject to defacementadvantages of display/banner advertising1. targeted searches: reaches people with 2. proven interest in product or services 3. Direct linking 4. Response Metrics 5. Low Cost Legitimacydisadvantages of display/banner advertising1. typical plain text searching 2. list appearance 3. previous knowledge 4. side by side competition 5. control over online reviewsadvantages of mobile advertising1. Very personal form of marketing 2. Good on return investment purpose. Good tracking data 3.Permission based opt in 4. location based services 5. delivery of coupons 6. appsConsumer BehaviorThe study of mental and emotion and the physical activities of people who purchase and use goods and services to satisfy particular wants or needs.Difference between needs and wants• Utility: Products ability to satisfy functional needs and symbolic wants • Advertising can communicate this functional or symbolic utility • Examples o Status Appeals, Informational Appeals, and Sex Appeals • Market Exchange Process o Perceptions ->Exchange -> You evaluate that purchasehedonic processing of advertisingPositive and negative emotional evaluations of the products.Multisensory, fantasy, emotional aspects of consumers interactions with productscognitive process of advertisingHow are these influenced? Direct personal experiences Preconceived notions Indirect Experience Media Exposure o Memories • Storage of message • However memories may be incomplete o Perceptual Vigilance • Consumes are more likely to be aware of stimuli that relate to their current needs.post evaluation processDid this product fulfill my need or want? • Where does advertising fit in this process?Advertising's Function: Reinforcement and helps defends their purchase against skepticisminterpersonal influences of decision making• External(outside) influences Family-influence our attitudes toward products Society- Shared interest and beliefs Peer Groups - people we relate too Opinion Leaders-influential individuals Culture-shared values and activities Non-personal influences Time: Must be right to influence purchases Place: Must weigh consumer demand when deciding where to offer your products or services Environment: Ecological, social, political, technical, economic, householdPhysiological screensThe five senses(our sensations) detecting incoming info. Vision - NBA, MLB, and NFL Logos Smell - Febreeze, Odorless Garbage Bags, Folgers Hearing- music can be associated with brand images Touch - A good pair of pajamas feel soft Taste - Pepsi ChallengePsychological ScreensEvaluate, filter, and personalize informationCognitive TheoryLearning theories rely on modeling behaviors Comes into play especially if you have never used product before The influence of other individuals. May also come into play when making complex purchasesConditioning Theory(comes from direct experience) o Lets say some stimulus possibly an advertisement triggers a consumer's needs or wants • Trial-Error Processes o Positive and negative reinforcement o Repeat purchases demonstrate learning has taken place. o Simple PurchasesElaboration Likelihood Model• Richard Petty and John Cacioppo(1984) o Based upon audience's cognitive activity • High elaboration = high cognition • Low elaboration = low cognition o 2 routes that nay lead to persuasion • central route - high willingness to elaborate a message • Peripheral Route - depends upon "heuristic principles"Limited Capacity ModelPeople are information processors Our ability to process information is limited •Sub-Processes o Encoding, storage, retrieval o Motivations(relaxation vs learning)Extended Parallel Process Model• Kim Witte's Extended Parallel Process Model o Used to understand fear-based messages and acceptance of those messages. o Composed of internal and external componentsTarget Marketa group of segments the company wishes to appeal to, design products for, and tailor its marketing activities toward...Behavioristic SegmentingSegmenting people by behavior. Measuring levels and variation in brand loyalty purchasing , User-Status Variables Sole Users, Semi-Sole, discount, non-triers, rejectors, and repertoire. o Usage-rate variables Light, medium, heavy o Purchase-ocassion variables • Fads, seasonal, and needsGeographic SegmentingSegmenting taget market based on geographic location. People in one region of the country have needs, wants, and purchasing habits that diff from those in other regions Researchers often look at sales figures Sales are analyzed by region, county size, city size, and specific locationDemographic SegmentingSegmenting the target market based on people. Statistical Characteristic Sex, age, ethnicity, ethnicity, education, occupation, income etc. Gender Differences Men and woman diff on a number of traits, including media consumption. When combined with geographics = geographic segmentationPsychographics SegmentingSegmenting target marktest through values, attitudes, and lifestyles Primary Motivation Ideals Achievement Self-expression Social Influencers Connectors, opinion leaders, salesman, etc...Limitations of Consumer Segmenting1. Over-simplification of consumers 2. Complicated Identification Process 3. Lack of theoretical underpinningsTypes of DistributionDirect Distribution Indirect Distribution Intensive Distribution Selective Distribution Exclusive Distributionthree kinds of product differentiationPerceptible differences Hidden differences Induced differencesproduct elementsProduct Concept Product life cycles Product Classifications Product Differentiation Product PackagingPricean important part of marketing is setting a price for your goods or servicesPlacethe where of marketing (distribution) o Local, regional, or national o National or GlobalPublic RelationsCompanies relationship with its various publicsProductany goods, services, sort of ideas that are advertised What are you selling?Awarenessestablishing communication w/ consumers. Important for new brands Top-of-mind awareness (TOMA) [McDonalds sign]ComprehensionUnderstanding (informational role)ConvictionPurchasing of that product or service. End goal of advertising.AttitudeA goal of advertising.Improving or enhancing consumer opinion. Ex. Patriotic appeal, etc.Advertising ProcessAutobiographical MessagePerson telling you their story. "I" tell a story about myself to "you," the audience eavesdropping on my personal experience.Narrative MessageSomeone narrates the ad. A third person-perona tells a story about others to an imagined audience.Drama Messagethe characters act out events as though in a play. (emotional, patriotic, comedic, etc.)Advertising in MarketingAdvertising is an important IMC Integrated Marketing Communications tool that can help the organization achieve its marketing goals.principles of free market economicsFirms decide whom to hire and to make. Households decide what to buy with their incomes. 1. Self Interest: People and firms pursue their own goals 2. Complete Information: Buyers make better decisions when they have more information about the products they can choose from. 3. More buyer and sellers: Having many sellers ensures that if one does meet customer needs, another will capitalize on the situation by producing. 4. Absence of Externalities(social cost): Sometimes the sale or consumption of products may benefit or harm other people who are not involved in the transaction.3 concepts that influence online advertisingActive Control, Two-way communication, and SynchronicityValue of ProductsAdvertising has given brands added value. A product's image, created in part by advertising and promotion, is an inherent feature of the product itself.Effects on PriceAdvertising has the effect of keeping prices down. As cost of doing business, advertising is paid for by the consumer. Advertising is one elemental in mass distribution system that enables many manufacturers to engage in mass production, which in turns lowers the unit cost of products.Effect on CompetitionAdvertising restricts competition because small companies can't compete with the immense advertising budget of large firms.Effect on Consumer DemandAdvertising effect on total consumer demand is complex. Many studies show that promotional activity affects aggregate consumption, but they disagree a to the extent. Social and economic forces, including technological advances, the population's education level, increases in population and income, and changes in lifestyle, are more significant.Effect on Consumer ChoiceBest way to beat the competition is to make a unique product. Advertise encourages businesses to create new brands and improve old ones.Central Hudson TestRegulation can occur if add is illegal Regulation can occur if ad is determined to be "misleading" The regulation is defined to narrowly serve the governments interest The regulation is "not more extensive than necessary"Self-regulation by AdvertisersNARC Goals: Minimize governmental involvement in the advertising business Maintain a level playing field for settling disputes among competing advertisers Foster brand loyalty by increasing public Trust in the credibility of advertising Self-regulation reduces the need for government regulation and maintains the integrity of advertisingFederal Trade CommissionIs the major regulator of advertisingFederal Communications CommissionHas indirect control/influence over broadcast advertisingFood and Drug AdministrationRegulates advertising related to the labeling and packaging of food, cosmetics, medicines, & therapeutic devicesDeceptive advertisinganything that may mislead a reasonable consumer. FTC regulates.Comparative advertisingsuperiority over the competitor (must be truthful to be legal)Bait Advertisingusing alluring, but insincere offers to customers. Sales person refuses to show the product a consumer asks to see and shows the person a more expensive product and advertise that one.Response to violationsSubstantiation - was there a violation? Consent Decree - signature to stop the advertising, no wrong doing admitted Cease-and-desist order - issue prohibiting further advertising of the product Corrective advertising - run advertising that corrects the offending advertisementsadvertising to childrenVery Controversial issue: Children's processing of advertising. They don't get it. Can't tell difference between show content and commercial. Children's Advertising Review Unit (CARU) Set guidelines for children's advertising Children's Television Act (1990) Limits the amount of ads on children's programming Must air educational content Limits character-advertising content. Can't have characters on a show advertise product.tobacco advertising controversyGovernment regulation Free speech??? Central Hudson Test Joe Camel (Unfair advertising) - the camel's a cartoon character so it seems like it's deemed for children.primary groups of advertisementAdvertisers Agencies Suppliers MediaAgenciesReach = local, regional/national, international Service = consumer, Business to Business (side we don't see), or both... Full service include consumer and BTB Specialty = specific focus companies Include Boutiques, Media Buyers, websites, InteractiveAdvertisersFranchises and dealers - like McDonalds. The license out their products Chain retailers - like car retailers Independent businesses - like Target. Could be privately owned Government & nonprofitsIn-house advertising agenciesCons Lowe creative quality Loss of objectivity (don't think outside the box), no outside perspective Pros Saves money More control May allow greater attention to the brandLocal Advertisers...Decentralized AdvertisingThe company sets up separate ad departments for different divisions, subsidiaries, regions, brands, or other groups. The general manager of each division or brand is responsible for that group's advertising.Centralized AdvertisingGives the greatest control and offers both efficiency and continuity across divisional boundaries.Full services advertisingsupplies both advertising and nonadvertising services in all areas of communications and promotion.SuppliersService ProvidersMediaChannels of mass communication such as television, radio, newspapers, and magazines, it also refers to other communications vehicle/blimps.Product AdvertisingPromotes a specific product or service and stimulates short-term action while building awareness of the business.Institutional AdvertisingAttempts to create a favorable long term perception of the business as a whole, notjust a particular product or service.Classified AdvertisingTo locate and recruit new employees, offer services, or sell or lease merchandise.Brand Advertisingthe most visible type, often referred to as national or consumer advertising...Local Advertisingfocuses on retailers, distributors, or dealers who sell their merchandise in a certain geographical area.Cooperative AdvertisingManufacturers and Wholesalers provide local dealers and distributors with advertising materials Different Types Cooperative (co-op) Advertising - national brand reimburses the retailer for part or all of the ad expenses. Vertical Cooperative Advertising - provides complete ad and shares the cost of time & space. Walmart, Bestbuy, Bridgestone. Horizontal Cooperative Advertising - firms in the same business pull resources to advertise together. Maybe companies could be in the same area. Like business in shopping malls.Differences between Local and NationalNational/Regional Advertisers Focus = building brands so more ppl buy Relationship with customers - less personal, less close, a lot of go-betweens. Time Longer term (5-year plan) Resources Big budgets Larger personnel Local Advertisers (Companies) Focus =bringing in customers Relationships with Customers - very close, less go-betweens Time Short-term goals (monthly or year by year planning) Resources Smaller budgets Smaller personnelGlobal versus Local DebateGlobal brand means brand's image is known world-wide Standardization Differences between countries is a matter of degree, so advertisers must instead focus on similarities between consumers (basic needs/wants between people) Localization (adaptation) Advertisers must consider differences among countries Combination This approach assumes that a combination of the 2 above mentioned results in the most effective advertisingManaging advertisingCentralized Offers greater control Less go-betweens, More efficient Have main company, then different brands then branch off. De-centralized One main company, then branch off to other companies, then those branched-off companies have different people working separately.Limited Capacity ModelPeople are information processors Our ability to process information is limited. Information gets filtered. We focus on different things. Sub-Processes Encoding, storage, retrieval Motivations (relaxations vs. learning). We watch commercials in relaxed stateExtended Parallel Process ModelKim Witte's Extended Parallel Process Model (EPPM) Used to understand Fear-based messages & acceptance of those messages Composed of internal & external componentsInterpersonal influencesIncludes family, society, and culture.Nonpersonal influencesFactors often outside the consumer's control-include time,place, and environment.Personal ProcessesGovern the way we discern raw sensory information.CognitionComprehending the stimulusPersuasionOccurs when the change in belief, attitude, or behavioral intention is caused by promotion communication.4 Types of segmentationBehavioristic segmentation Geographic segmentation Demographic segmentation Psychographic segmentationLimits on consumer segmentationOver-simplification of consumers Complicated Identification Process Lack of theoretical underpinningsmarketing mixThe way marketers mixes and blends these different elements creates the company's marketing strategyPsychographicsMarketers group people by their values, attitudes, personality, and lifestylePerceptible differencesreadily apparent to the consumer.Hidden differencesare not readily apparentinduced differencesFor many products, such as aspirin, salt, gasoline, packed foods, liquor, and financial services, advertising can create induced differences.Brandcombination of name, words, symbols, or design that identifies the product.Brand EquityThe totality of what consumers, distributors, dealers - even competitors feel and think bout the brand over an extended period of time.Intensive distributionConvenience goods that are available at every possible location.Selective DistributionLimiting the number of outlets through manufacturers can cut their distribution and promotion costs.

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