MKTG Mid-Term Revision Notes PDF

MKTG Mid-Term Revision Notes Chapter 1: Marketing and the Marketing Concept: Marketing: human activity directed at satisfying needs and wants through exchange processes. The idea of the marketing concept is to adapt the company’s offering to the needs and wants of the customer. Exchange:...

MKTG Mid-Term Revision Notes Chapter 1: Marketing and the Marketing Concept: Marketing: human activity directed at satisfying needs and wants through exchange processes. The idea of the marketing concept is to adapt the company’s offering to the needs and wants of the customer. Exchange: An Important Part of Marketing For exchange to occur, there must be… 1. 2 parties and each party must - 2. Have something of value to the other party, 3. Be capable of communication and delivery, 4. Be free to accept/ reject the offer, and there must be 5. An agreement to terms. Communications and Marketing Communications: Communications: the process where individuals share meaning & establish a commonness of thought. - Marketing Communications: the collection of all elements of a firm’s marketing mix that facilitate exchange by - establishing shared meaning with the firm’s customers. Marketing Communications — B2B, B2C, non-profits. Marketing Mix: Specific collection of certain levels of elements of a brand’s 4Ps — product, place, promotion & price. Elements of Promotional Mix: Advertising Direct marketing Public relations Sales promotion Digital marketing/ Social media Personal selling Owned, Paid & Earned Media: Earned Media - When customers become the channel. (E.g. WOM, Buzz, Viral) Role: Listen & respond — earned media is often the result of well-executed and well-coordinated owned and paid media. Benefits: Most credible/ Key role in most sales/ Transparent and lives on Challenges: No control/ Can be negative/ Scale/ Hard to measure Paid Media - Brand pays to leverage a channel. (E.g. Display ads/ Paid search/ Sponsorships) Role: Shift from foundation to a catalyst that feeds owned and creates earned media. Benefits: In demand/ Immediacy/ Scale/ Control Challenges: Clutter/ Declining response rates/ Poor credibility Owned Media — Channel a brand controls. (E.g. Web site/ Mobile site/ Blog/ Twitter account) Role: Build for longer-term relationships with existing potential customers & earned media. Benefits: Control/ Cost efficiency/ Longevity/ Versatility/ Niche audiences Challenges: No guarantees/ Company communication not trusted/ Takes time to scale  PLACE ADVERTISING MEDIA ADVERTISING Billboards & bulletins TV DIRECT RESPONSE ADVERTISING Posters Radio Transit ads Magazines Direct mail Cinema ads Newspapers Telephone solicitation Online advertising STORE SIGNAGE & POINT-OF- TRADE & CONSUMER-ORIENTED PROMOTIONS PURCHASE ADVERTISING Trade deals and buying allowances External store signs Display and advertising allowances In-store shelf signs Trade shows Shopping cart ads Cooperative advertising In-store radio & TV Samples Coupons Premiums Refunds/rebates Bonus packs TOOLS OF MARCOM Promotional games Price-off deals SOCIAL MEDIA Facebook EVENT MARKETING & Instagram, SPONSORSHIPS Twitter Pinterest Sponsorships of sporting events Snapchat Sponsorships of arts, fairs, and LinkedIn festivals DIGITAL MARKETING YouTube Sponsorship of causes Mobile advertising Placed-based applications Search engine marketing MARKETING-ORIENTED PUBLIC RELATIONS & PUBLICITY PERSONAL SELLING Promotion Management & Objectives of Promotion ~ ~ Promotion Management: Coordination of promotional mix elements in setting objectives, establishing budgets, designing programs, evaluating performance, and taking corrective action. - - - General Objectives of Promotion: 1. Inform 2. Persuade 3. Induce Action Branding Brand: A name, term, sign, symbol, or design intended to identify the goods & services of one seller or groups of sellers and differentiate them from those of competition. Brand Equity: The goodwill (equity) that an established brand has built up over its existence. Marketing Communications at the Brand Level: A well-known and respected brand is an invaluable asset. The key for brand communications is to differentiate one company’s offering from another’s. ↓ ↓ X A successful brand can create barriers to entry for competitors. BRAND Integrated Marketing Communications (IMC) The coordination of the promotional mix elements with each other and with other elements of the brand’s marketing mix such that all elements speak with one voice. Why not always integrated? Tradition of separate communication tools - Influence of specialised outside suppliers - Managerial parochialism — Fear of budget cutbacks ~ — Loss of power and authority - Resistance of outside suppliers to broadening their functions - - - Skeptics who consider IMC to be a fad - - - The Meaning of Synergy The payoff from IMC is that brand managers achieve: Synergy. The integration of multiple communication tools & media yield more positive communication results than the - tools used individually. 5 Features of IMC 1. Start with the customer or prospect - - 2. Use any form of relevant contact or touchpoint - - 3. Speak with a single voice - - 4. Build relationships - 5. Affect behaviour - IMC Feature #1: Start with Customer or Prospect Media-Neutral Approach ↓ Identify Marcom Program Goals ↓ Determine Best Way to Allocate Marketing Budget IMC Feature #2: Use Any Form of Relevant Contact An example of a Touch Point, or 360 Marketing: Apple Pay IMC Feature #3: Achieve Synergy Multiple messages must speak with a single voice. ~ clear idea A brand’s positioning statement must: ~ Present a clear idea of the brand in its target market’s mind. consistently deliver - - - same message Consistently deliver the same unified message across all media channels on all occasions. - - IMC Feature #4: Build Relationships Build relationships (E.g. Harley Davidson) rather than engage in flings. Costs 5-10x more to acquire a new customer than keep a current one. Loyalty Programs promote long-term relationships between customers and brands that lead to customer retention. Experiential marketing programs can create brand experiences that make positive and lasting impressions on customers. IMC Feature #5: Affect Behaviour Don’t lose focus of the ultimate objective: Affect Behaviour IMC must do more than just influence brand awareness or enhance consumer attitudes — the objective is to move people to action. Changes in Marketing Communication Practices: Reduced dependence on mass media advertising. reduced dependence on mass media Increased reliance on highly targeted communication methods. ↑ reliance on Heightened demands on suppliers. ↑ demand on suppliers highly targeted comm Increased efforts to assess communication’s return on investment. methods. ↑ efforts to assess comm's ROl Obstacles to Implementing IMC Few providers have the skills required to execute. no skills to execute Mass media campaigns easier than direct-to-customer. mass easier than direct The real challenge is to make sure that tools are consistently executed. tools are executed consistently SWOT ANALYSIS EXTERNAL INTERNAL Leverage LEVERAGE > S -0 strengths - Opportunities contrants vinerarity Vulnerabia an M straints C > w - T Weaknesses [ > - Threats Problems PROBLEMS - - - - - - - - - - - Making Fundamental Marcom Decisions: Micro-marketing: The customising of products and communications to smaller segments (e.g. toothpaste). Marcom Implementation Decisions: Mixing elements Creating messages Selecting media Establishing momentum Marcom Outcomes: - - - - - - - - Chapter 2: Enhancing Brand Equity & Accountability As Brand Equity Increases… A higher market share is achieved - Brand loyalty increases Premium prices can be charged The brand earns a revenue premium Revenue Premium The revenue differential between a branded item and a corresponding private-labeled item. Revenue Premium = (VolumeB)(PriceB)-(VolumePL)(PricePL) Young & Rubicam’s “Brand Asset Valuator” and Creating Strong Brands: Methodology — Interviews with over 1,000,000 consumers — 51 countries — 45,000 brands — 40 measurement scales “DREK” sequence (measures of brand equity): — Differentiation —> Relevance —> Esteem —> Knowledge — Power Grid: Brand strength (differentiation, relevance) Brand stature (esteem, knowledge) Brand development cycle Brand - Awareness Brand knowledge Brand image  Brand Concept: The specific meaning that brand managers create and communicate to the target market. This is accomplished by appeals to functional, symbolic, and experiential needs. Brand Concept Management: The analysis, planning, implementation, and control of a brand concept throughout the life of a brand. How Brand Concepts Can Be Developed: Functional Needs (solving problems): Products that attempt to fulfil the consumer’s consumption-related problems. Symbolic Needs (associating the brand with symbolic objects): Directed at consumer’s desire for self- Brands and Their Management enhancement, role position, group membership and belongingness. Brand Concept Management Experiential Needs (sensory 1 Functional needs pleasures, personal Symbolic needs >- Experiential needs BrandEquity > Brand - Loyalty experience): Products that provide sensory pleasure, ↑ variety, and/or cognitive stimulation. DREK "Brand Asset Valuator" Dimensions of Brand Personalities: 3 Ways Brand Equity is Enhanced: Sincerity (e.g. Disney) 1. Allow brand to speak for itself Excitement (e.g. Hummer) 2. Create message driven associations Competence (e.g. Toyota) 3. Leveraging current meanings or Sophistication (e.g. Rolex, Cartier) associations Ruggedness (e.g Timberland boots) Co-branding and Ingredient Branding: Co-branding A partnership between 2 brands. Ingredient Branding Inclusion of one brand within the other. What Benefits Result from Enhancing Brand Equity? Increased consumer loyalty Long-term growth and profitability for the brand. Maintain brand differentiation from competitive offerings. Insulate brand from price competition. Measuring World-Class Brands overall standard of product Quality: Score ranging from 0 to 10 (unacceptable/ poor to outstanding/ extraordinary) Salience: Score ranging from 0 to 100 (percentage of people who feel sufficiently well informed about a brand to rate it) How well a brand stands out in the minds of customer Equity: Score ranging from 0 to 100 (determined by multiplying the quality and salience scores and dividing the product by 10.) value derived from customer's and perceptions experience. Affecting Behaviour and Achieving Marcom Accountability: Creating brand awareness and boosting brand image serve little positive effect unless individuals make purchases or engage in some other form of desired behaviour. brandawareness useless creating ROMI The effect of marcom, or of its specific elements such as advertising, can be gauged in terms of whether it generates a reasonable revenue return on the marcom investment. In marketing, return on investment is called return on marketing investment (ROMI) Rol net income = avg. O E.. Difficulty of Measuring Marcom Effectiveness: Choosing a metric - Gaining agreement Collecting accurate data - Calibrating special effects - Choosing a Metric: Change in brand awareness - Improved consumer attitude toward the brand Increased purchase intentions Larger sales volume (e.g. via scanner data; marketing mix models) - Gaining Agreement: Marketing Department’s Measures of Success: Discounted cash flows - - Net present values of investment decisions - Measures of brand awareness, image, equity, sales. - - -  Chapter 3: Segmentation, Targeting and Positioning Major steps in the Market Segmentation Process: market segmentation D Identify bases to segment Market Segmentation T. (Behaviour Demo market , Identify bases (e.g. behaviour, demographics) to segment the market graphics ~ - Develop profiles of resulting segments Develop profiles of resulting segments Market Targeting Develop measures of segment attractiveness Select the target segment(s) - Market Positioning Develop positioning for each target segment Develop marketing mix for each target segment Behaviour Segmentation Issues: Behaviour Segmentation How people behave with respect to a particular product category or class of related products. Assumes that the best predictor of future behaviour is past behaviour. Online Behavioural Targeting Tracks the online site-selection behaviour of users so as to enable advertisers to serve targeted ads. Privacy Concerns Technological advances increase the ability to serve consumers at the risk of invading their privacy. Psychographic Segmentation Psychographics: Aspects of consumer’s psychological make-ups and lifestyles as they relate to buying behaviour in a particular product category. Attitudes Values Motivations Types of Psychographic Profiles: Customised Psychographic Profiles Are typically customised to the client’s specific product category. Contain questionnaire items related to the unique characteristics of the product category. General Purpose Psychographic Profiles Can be purchased as “off-the-shelf” psychographic data from services that develop psychographic profiles of people independently of any particular product or service. Innovators: High resources & High Innovation. Primary Motivation: Achievement, Ideals, Self-expression. Thinkers: High resources Primary Motivation: Ideals Believers: Moderate resources Primary Motivation: Ideals Achievers: High resources Primary Motivation: Achievement Strivers: Low resources Primary Motivation: Achievement Experiences: High resources Primary Motivation: Self-expression Makers: Moderate resources Primary Motivation: Self-expression Survivors: Low resources Primary Motivation: None (focus on basic needs) Geo demographic Segmentation: Geo demographics: Consumers who reside within geographic clusters such as zip codes or neighbourhoods and also share demographic and lifestyle similarities. Typical Clusters (PRIZM NE) Bohemian Mix White Picket Fences Suburban Pioneers Demographic Segments by Age Group: Preschoolers Elementary school age children Tweens Teenagers Young adults Ethnic Population Developments: Implication for Marketers: Need to devise marcom strategies to meet ethnic group’s unique wants/needs. Market Targeting: The 5 Criteria for Effective Segmentation: 1. Measurable 2. Substantial 3. Accessible 4. Differentiable 5. Actionable Target Market Selection Strategies: 1. Undifferentiated marketing 2. Differentiated marketing 3. Concentrated marketing Categories of Appeals to Consumer Needs: Functional Needs Positioning communicates that the brand’s benefits are capable of solving consumer’s consumption-related problems. Symbolic Needs Positioning attempts to associate brand ownership with a desired group, role or self image. Experiential Needs Positioning promotes brand’s extraordinary sensory value, or rich potential for cognitive stimulation. Chapter 4: The Communications Process and Consumer Behaviour General Communications Objectives: 1. Build category wants 2. Create brand awareness 3. Enhance brand attitudes 4. Influence brand purchase intention 5. Facilitate purchases Communications and the Communications Process: Communications: The process of establishing a commonness or oneness of thought between a sender (e.g. an / advertiser) and a receiver (e.g. a consumer). Encoding: The process of putting thought into symbolic form (e.g. words, sentence structure, symbols, non-verbal cues). Decoding: The process of transforming message symbols back into thought. Semiotics: is the “The study of meaning and meaning-producing events.” It is a constructive process that is determined as much by the communicators as by the receivers of the message. Meaning: Our internal responses (thoughts, feelings) when presented with a sign, stimulus or object. Sign: Represents something to someone in a given context. (“I’ll have a Coke”) Socialisation: Process by which people learn cultural values, form beliefs, and become familiar with “physical cues” representing these values and beliefs. Denotative (exact) vs Connotative (implied) Meaning: Home: A place where one lives Home: Implies warmth, comfort, family or a sense of belonging. Structural vs Contextual Meaning: Structural (Only a sign to sign relationship) Rose (Flower), Red Traffic Light (Stop) Contextual (Description of signs) Colour Red in Different Contexts: Traffic Light, Financial Reports. Signals, Signs, & Symbols: Signal: The product is a cause or effect of something else. (e.g. SUVs the result of large families) Sign: The product and referent belong to the same cultural context (e,g, SUVs part of upper middle class, children, suburbs) Symbol: The product and object have no prior relationship, yet are now associated with one another (e.g. Ford trucks and “Tough guy” image/ads). Implementing Positioning: Behaviour Foundations of Marketing Communications: Consumer Processing Model (CPM) — Behaviour is seen as rational, highly cognitive, systematic and reasoned. Hedonic, Experiential Model (HEM) — Consumer behaviour is driven by emotions in pursuit of “fun, fantasies, and feelings.” Comparison of CPM and HEM Models: The rational consumer processing model (CPM) and the hedonic experiential model (HEM) are not mutually exclusive. Rather, they exist on a continuum. Mere Exposure Hypothesis (“Truth Effect”) Repeated exposure to a stimulus (TV ad, package, radio commercial) may generate a positive affects toward the object (e.g. an advertised brand) through enhanced familiarity.  Selective Attention Attention Types: 1. Involuntary attention 2. Non-voluntary attention 3. Voluntary attention 4. No attention Factors Accounting for Attention Selectivity: Stimulus Intensity (Sound, colour, smell) Novel Stimuli (Adaptation theory) Past Experience (Rewards/reinforcement) Needs (e.g. Hedonic ones) Expectations (Product Interest) Values (Families, culture) Comprehension Understanding and creating meaning out of stimuli and symbols. Interpreting stimuli involves selective perception. Factors influencing comprehension: expectations, context, needs, personality, attitudes, mood. Average miscomprehension rates have been cited to be as high as 30%. Selective Perception: Each individual is likely to perceive images in different ways. Agreement Comprehension by itself doesn’t ensure that the message influences consumer’s behaviour. Agreement depends on… Whether the message is credible and the quality of arguments. Whether the information is compatible with the values that are important to the consumer. Retention and Search/Retrieval of Stored Information Retention and information search and retrieval, both involve memory factors related to consumer choice. 3 Memory Storage Theories: 1. Multiple store approach Sensory stores (SS) - Information is rapidly lost unless attention is allocated to the stimulus. Short-Term Memory (STM) - Limited processing capacity. Information not thought about or rehearsed will be lost in 30 seconds or less. Long-Term Memory (LTM) - A virtual storehouse of unlimited information. Information is organised into coherent and associated cognitive units called brand schema, memory organisation packets, or knowledge structures. The marketer’s job is to provide positively valued information that consumers will store in LTM. 2. Levels of processing 3.Spreading activation model Learning and Learning Types: Learning: Changes in the content or organisation of information in a consumer’s long-term memory. Learning Types: Strengthen present linkages Establish new linkages Generalise linkages Adjust competitors’s linkages Move closer to “ideal” linkage Low Involvement Learning Search and Retrieval of Information: The Nature and Role of Attitude: Concretising Attitude (Mental Property) By providing concrete (vs abstract) examples, new A general positive or negative feeling toward some information is better learned and accessed. person, object or issue. Imagery Attitude Components and Hierarchy of Effects: A mental event involving the visualisation of a concept or relationship. 3 Components of an Attitude 1. Cognitive (knowledge, thoughts, beliefs) Dual-Coding Theory 2. Affective (feelings, evaluation) Pictures are represented in memory in verbal as 3. Combative (behavioural intentions) well as visual form, whereas words are less likely to have visual representations. Hierarchy of Effects Models: Decision Processes: Learning (high involvement) hierarchy: Cognition -> Affect -> Conation 1. Affect referral (Low Involvement) 2. Compensatory heuristics (High Low involvement hierarchy: involvement) Minimal Cognition -> Conation -> Affect 3. Non-compensatory heuristics: - Conjunctive Model (“and”), Disjunctive Predicting Behaviour from Attitudes: Model (“or”), Lexicographic Model (Rank ordering) Measurement Specificity Considerations 4. Phased strategies (Combination of (TACT: Target, Action, Context, and Time) heuristics) Direct (vs Indirect) experience issue. Six Tools of Persuasion Influence: 1. Reciprocation: samples, gifts, sincerity? 2. Commitment and consistency: commit to something (car purchase) 3. Social proof: if unsure, take lead from others. 4. Liking: attractiveness, similarity via identification 5. Authority: via power (authority figures) 6. Scarcity: psychological reactance theory 5 Important Persuasion Factors: 1. Message strength: clear, logical, creative… 2. Peripheral cues: external factors 3. Receiver involvement: personal relevance or interest 4. Receiver initial position: attitude, belief 5. Communication modality: deliver message Receiver Initial Position affects… Cognitive Response Type Generated: Support arguments Counter arguments Source bolstering Source derogation Research on moderate/low credible sources shows: If initial position is positive, then a moderate/low credible source can be more effective than a high credible source. Normally, as people usually are skeptical of ad claims, one would use high credible sources. Chapter 5: Objective Setting and Budgeting Why Setting Marcom (Advertising) Objectives is Important? Expression of management consensus — agree on the - direction and goals of the - advertising strategy. - Guides the budgeting, message, and the media aspects of advertising strategy — reach target audience effectively. Provide standards against with results can be measured — evaluate if the campaign meets its intended goals.  Hierarchy of Effects Model: AkLPCP Hierarchy of Effects Orderings: ning) Highinvolvement A) Traditional Learning Hierarchy (High Involvement): C Ac > - Cognition -> Affect -> Conation B) Low Involvement Hierarchy: MCCA - > Low involvement Minimal Cognition -> Conation -> Affect The Hierarchy of Marcom Effects: The hierarchy of effects metaphor implies that for marketing communications to be successful it must move consumers from one goal to the next goal. Questions/Issues from the Hierarchy Model: Which comes first, attitude or behaviour? Attitude (liking and preferences) before behaviour (purchase) Attitudes influence decision making by guiding preferences and shaping decision making criteria. Which is more important, advertised information or personal experience? Advertisements are key for initial engagement, but personal experiences are crucial for lasting impact and trust. Is brand loyalty guaranteed? No, it can be influence by various factors. Such as customer satisfaction, product quality & innovation and customer experience. What are the implications for objective setting (e.g. awareness, expectations, trial) Target audience reach, marketing budget allocation and brand positioning. Setting Good Marcom (Advertising) Objectives: Include a precise statement of who, what, and when Be quantitative and measurable Specify the amount of change Be realistic Be internally consistent Be clear and put it in writing Should Marcom Objectives Be Stated in Terms of Sales? Communications (Indirect) Objectives: Attempt to increase the target audience’s brand awareness, enhance their attitudes toward the brand, shift their preferences from the competitors’ brand and so on. Sales (Direct Objectives): Mean the Marcom objective literally is to increase sales by a particular amount. Situations where Sales (Direct) Objectives may be appropriate: Advertising by retailers (Coles/ Woolies) Direct-response advertising (Immediate response from consumers) Sales promotion advertising (Discounts, coupons) Business to business advertising (Seek to generate leads or close sales) Where is the Target Market in the Stages of the Decision-making Process? Problem recognition — identifying a need or problem Search — looking for information or products Evaluation — comparing different options Choice — purchase decision Outcomes — reflecting on the purchase Traditional View (Thesis) Sales volume is the consequence of a host of factors in addition to marcom — they are only one of the many factors that contribute to overall sales volume. Effect of marcom efforts is delayed — the impact of marcom efforts on sales might not be immediate. Heretical View (Antithesis) Marcom’s purpose is to generate sales — what is the ultimate goal? Sales measures are ‘vaguely right’ — serve the practical purpose of assessing the impact of marketing efforts. Practical Budgeting Methods: Percent-of-sales Budgeting Objective-and-task Method Competitive Parity Method (Match competitors’ method) Affordability Method 5 Basic Functions Performed By Advertising: 1. Informing 2. Influencing (Persuading) 3. Reminding and increasing salience 4. Adding value 5. Assisting other company efforts Purchase Services as Needed Advantages: Use services only when they are needed. Availability of high-caliber creative talent. Potential cost efficiencies. Alternative Ways to Perform the Advertising Function: Disadvantages: In-house Advertising Operation Specialists approach Necessitates employing an advertising staff and absorbing the operation costs. client problems in a Unprofitable unless a company does a large amount of continual advertising. stereotyped fashion. Lack of cost Full-Service Advertising Agency Disadvantages: accountability. Advantages: Some control is lost. Financial instability In-depth knowledge and skills Larger clients are favoured over small of smaller boutiques. Obtaining negotiating muscle with the media clients. Coordinating advertising and marketing efforts Occasionally inefficient in media buying. Advertising Agency Organisation: Creative Services Develop advertising copy and campaigns. Copywriters, production staff, graphic/digital artists, and creative directors. Media Services Selecting the best advertising media Media planners develop overall media strategy Media buyers procure the selected media Research Services Study client’s customers’ buying habits, purchase preferences, and responsiveness (account/market planners). Focus groups, mall intercepts, online studies, acquisition of syndicated research data. Account Management Link the agency with the client Act as liaisons so that the client does not need to interact directly with several different service departments and specialists. Agency Compensation Commission’s from media (15%) Reduced commission system ( Identify 3. Novelty — Introduce something new or unexpected the primary competition -> Choose the promise -> Offer reasons why Common Elements of Sticky Ads 5. Establish mandatory corporate/ 1. Simplicity divisional requirements — It 2. Concreteness reminds the advertiser to include the 3. Emotionality corporate slogan or logo, headlines, 4. Storytelling claim substantiation, any other 5. Credibility regulatory requirements, etc. 6. Unexpectedness Making an Impression: One view of “Being Creative” is making an impression. Impression Hierarchy: 1. Brand Name (simplest level) — the basic recognition 2. “Generics” — the general ideas 3. Attitudinal response — the emotional reaction 4. Commercial specifics — details 5. Specific sales message (highest level) — the key message Advertising Plan: Provides the framework for systematic execution of advertising strategies (analogous to marketing plan: analysis, planning, implementation, control of marketing programs). Advertising Strategy: An advertising message that communicates the brand’s primary benefits or how it can solve a consumer’s problem. Constructing a Creative Brief: Advertising Objectives — Why are we advertising Target Audience — Who are we talking to Motivations, Thoughts and Feelings — Target audience motivations Brand Positioning — Proposition Primary Outcome — Single most important thing, or “takeaway” Means-End Chaining Example: SMARTPHONE Attributes High resolution camera Long battery life Fast charging Consequences Capture high quality photos and videos Stay connected all day without needing to recharge. Save time with quick charging, increasing daily efficiency. Values The MECCAS Model: Enjoying life’s precious moments (happiness, joy) MECCAS: Staying connected with family and friends Means End Conceptualisation of Components for (relationships) Advertising Strategy. Balancing work and life effiency (achievement, fulfillment) Universal Values: The Role of Q-Rating (Q-Scores) 1. Self direction 2. Stimulation Q = (popularity/familiarity) x 100 3. Hedonism 4. Achievement 5. Power 6. Security 7. Conformity 8. Traditional Typical-Person Endorsements: 9. Benevolence Show regular people using or endorsing products 10. Universalism Avoids the backlash from using”beautiful people” who may be resented. Real personal experience of the benefits of the particular brand grants a degree of Alternative Creative credibility. Strategies It is more effective to use multiple people rather than a single individual. Generic strategy Preemptive strategy Practical Considerations in the Selection of Endorsers: Unique selling 1. Celebrity and audience matchup — values, interests and demographics. proposition 2. Celebrity and brand matchup — brand’s identity and values. Brand image 3. Celebrity credibility — perceived trustworthiness and expertise. strategy 4. Celebrity attractiveness — overall appeal and like ability. Positioning strategy 5. Cost considerations — potential return on investment. Resonance strategy 6. Working ease and difficulty factor — professionalism, reliability, and ease of Affective working with. (emotional) 7. Saturation factor — how many other brands the celebrity is currrently endorsing. strategy 8. Trouble factor — potential risks associated with the celebrity. Corporate Image and Success Factors for Athlete Endorsers: Corporate Issue Attention getters — naturally draw public attention Advertising: Basketball, tennis, golf athletes are easier — sport type Large market exposure needed — games, fashion, events Corporate Image Good rapport wth media — public image, brand’s association Advertising Charisma, honesty Attempts to gain… Someone who is known by everyone — not just in sports Name recognition Product goodwill The Role of Humour in Advertising: Positive Effects Identification with Attracts attention meaningful social Enhances liking of ad and brand activities Does not hurt comprehension Does not harm persuasion Corporate Issue Does not harm source credibility Advertising Nature of product affects the appropriateness of using humour (e.g. feeling- “Paid oriented; under low involvement) communication The Role of Humour in Advertising: Negative Effects concerned with Effective only when consumer’s evaluations of the advertised brand are already propagating ideas positive. and explaining Effect of humour can differ due to differences in audience and geographical controversial social characteristics. issues of public Humorous message may be so distracting that receivers ignore the message importance”. content. Appeals to Consumer Fears: Can be effective as a means for enhancing motivation (yet ethical issues) Can identify the negative consequences of: Not using the product Engaging in unsafe behaviour (drinking and driving) Can take forms of either social disapproval or physical danger The Functions of Music in Advertising: Attracts attention Promotes positive mood Increase receptivity of message Communicates meanings Classical conditioning and tempo research on music: Creates associations between the brand and positive feelings Influence the perception of the ad — fast/slow tempos Distraction from Message Content Attractive sources, background scenery, colours, music. Arguments in favour of distraction: Reduces counterarguments, positive emotions, conditioning. Arguments against distraction: Why intentionally try to distract when there are thousands of other distractions in processing of ads. Message Sidedness: Generalisations Use a 2 sided message if… 1. The audience doesn’t already agree with the topic (brand, ad message) — addressing potential objections. 2. Counterarguments are anticipated — reduce resistance and increase credibility. 3. The audience uses the competitor’s brand — acknowledge the competitor’s strength. 4. The audience is better educated. Considerations in the Use of Comparative Advertising: Use if the audience doesn’t have a prior preference for the comparative brand. Use with low involvement purchases (weak evidence) Use with new brands that possess distinct advantages over competition. Use if claims are credible (test results, spokespersons, 2-sided claims) Use if sales are static and non-comparative ads ineffective (weak evidence). Use in print (vs broadcast) media Relative framing of questions on comparative ad effects is important.