Advertising Strategies Quiz

Fundamentals of Marketing

• This is a course covering marketing fundamentals.
• Unit 4 focuses on Product.

Unit 4: Product

• Concept and Classification-Product Concept:

  • A product is anything (goods, services, or ideas) that can motivate and satisfy a buyer's needs.
  • Every product is a combination of attributes or characteristics.
  • Products are not bought for what they are; they are bought for the solutions they provide.
  • Different products can satisfy the same need.
  • One product can satisfy different needs.

• Product Classification:

  • Products are classified according to their nature (goods, services, ideas), lifespan (durable, nondurable), and user type (consumer, industrial).
  • Tangible products are physical items; intangible products are services or ideas.
  • Tangibility is not a precise classification as degrees of tangibility exist. Examples include:
    • Tangible Goods: Bread, computer, car.
    • Services: Food in restaurants, repairs, banking services, vehicle warranty, maintenance.
    • Intangible Ideas: Family planning, political programs.

• Product Dimensions:

  • Tangible Product Attributes:
    • Style and design
    • Physical characteristics
    • Technical qualities
    • Brand
    • Packaging
  • Additional services to the tangible product (goods):
    • Installation
    • Repairs
    • Warranties
  • Product Levels:
    • Core Customer Value
    • Actual Product: physical product, brand name, quality level, features, design, packaging, and warranties
    • Augmented Product: delivery and credit, product support, after-sale services.
  • Example: Autonomous Passenger Transport: Amplitude, Power, Comfort, Safety, Sporty Image, Environmental Protection

• Brand, packaging, and labeling:

  • Defining "brand": A brand is a name, term, sign, symbol, or design (or a combination of them) intended to identify the goods or services of one seller or group of sellers, and to differentiate them from competitors.
  • Brands represent consumer perceptions, feelings, and emotions.
  • Different elements of a brand:
    • Important factors to successful brands:
      • High value; seek a brand they know and trust. -Packaging: Packaging, both primary (the product packaging) and secondary (another package that might have multiple products), is crucial to product identity and individualization. -Labeling: Important for product individualization and creates product identity. -Types of brands -Word mark -Figurative mark -Shape mark -Pattern mark -Color mark -Sound mark -Motion mark -Multimedia mark -Hologram mark -Advantages of using a brand:
  • Differentiate from competitors
  • Freedom to decide prices
  • Warranty of homogeneous quality
  • Identify the brand
  • Support commercial strategy
  • Facilitate loyalty and identification - Creating emotional connections -Key graphic elements: -Logo: Part seen, but not pronounced, visual identification -Name: Part read, and pronounced, verbal identification -Desirable brand characteristics: Short, evocative, distinctive, translatable, capable of registration & legal protection; desirable logo characteristics: simplicity, scalability. responsiveness. -Brands can convey emotions visually through colors.

• Codification - Benefits and Changes: -Codification is the assigning of a unique identifier to products (e.g., GTIN). The code should be changed in circumstances such as a change in attributes (color, smell, etc.), size and/or weight, packaging changes, formula/composition changes. -Benefits of using codes: improved intermediary effectiveness, reduced costs, better sales information, faster cash register processes.

Unit 5: Promotion

• Concept of Commercial Communication:
  • Communication is the transfer of messages to influence behavior, done by companies (senders) to target receivers (typically customers).
  • Purposes include informing, changing behavior, building relationships. -Key questions for communication decisions: Who communicates? What is the objective? What do you want communicate? Who is the target audience? How do you want to communicate? What tools should you use? Which media outlets? (POEM Model - Paid, Owned, Earned, Media)
• Advertising: Unilateral and impersonal communication using paid messages to persuade the target audience. Different types exist like print, TV, radio, etc.
• Direct Marketing: Tools that allow interaction with target audiences, treating them as individuals. Goal is a measurable response.
• Sales Promotion: Combines multiple techniques aimed at distribution networks and customers. Aims for a promotional bonus to a product/service with a measurable increase, usually for a limited time.
• Public Relations (PR): Focuses on building credibility, trust, and acceptance of a product/service or organization.
• Personal Selling: A personal, direct, interactive communication format.
• Owned Media: Communication channels owned and controlled by the company/brand (website, blogs, social media accounts, apps, physical stores, etc.).
• Paid Media: Third-party channels the company pays for (advertising, internet, etc.).
• Earned Media: External channels that incorporate communication through client or follower actions on social networks; no direct payment. Types include unpaid posts (social media, comments reviews).
  • Digital Mix: (Earned, Paid, Owned).

Unit 6: Place

• Nature and Importance of Distribution Channels:

  • Distribution is the process of making a product available to consumers. It is crucial for reaching customers and creating competitive advantage.
  • Key questions when deciding on distribution are direct vs. indirect channels, use of intermediaries (i.e., retailers and wholesalers.)
  • Direct sales channel; the producer sells directly to the customer
  • Indirect channel; a producer uses multiple intermediaries to get the product to a consumer (i.e. wholesalers and retailers)

• Channel Design and Management: -Decisions include analyzing consumer needs; defining distribution objectives; identifying alternatives; evaluating alternatives (e.g., proximity of product vs. range/breadth of products to sell, customer service demands of each distribution strategy,) analyzing factors such as company structure & products, competition in the market)

• Retailers and Wholesalers: -Retailers (intermediaries) buy products for resale to end-consumers

  • Types of retailers (e.g., specialty stores, discount stores, supermarkets, convenience stores, department stores). The factors that differentiate them are: product lines, price level, and organizational approach (corporate/voluntary chains, retail cooperatives, franchises).
  • Wholesalers: Businesses that resell products to retailers, often in bulk, for the purpose of resale.)

• Functions of Intermediaries:

  • Informational channels
  • Promotion channels
  • Channel management channels
  • Matching channels
  • Negotiating channels
  • Physical distribution (transport and storage)
  • Financing
  • Risk-taking
  • Additional post-sale services

• Channel Length: The number of intermediary levels in a distribution channel.

• Distribution Strategies:

  • Intensive distribution (wide availability in many stores)
  • Selective distribution (limited, targeted stores.)
  • Exclusive distribution (limited availability in select outlets).

Unit 7: Price

• Concept: Price is the monetary value given to a product. It's the value associated with the set of satisfactions a consumer gets from purchasing the product.
• Factors influencing pricing: Both internal (company objectives, costs) and external factors (e.g., market, customer demand, competition, economic environment, marketing strategies).
• Pricing methods: Based on costs; based on demand; and based on competition (parity/higher than, and lower than competitors' prices). Different pricing methods also consider selling price in the context of direct (manufacturer to customer) vs. indirect (manufacturer to wholesaler/retailer to customer) distribution.

Test your knowledge on various advertising strategies, including own media, earned media, and outdoor advertising. This quiz will help you understand the objectives and characteristics of different forms of advertising. Perfect for students or professionals looking to enhance their marketing skills.