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McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. perception, Exchanges What is Advertising? satisfaction The structured and composed nonpersonal communication Advertising Usually paid for Usually persuasive in nature About products From identified sponsors Through various media perception, Exchanges What is Marketing? satisfaction Marketing Process of planning and executing The conception, pricing, distribution and promotion Of ideas, goods, and services To create exchanges that satisfy Perceived needs, wants, and objectives Advertising and the Marketing Process Marketing Strategy Determines Where advertising should appear What the ads should accomplish Who should be the targets What media should be used Current Regulatory Issues Affecting U.S. Advertisers Tobacco advertising Consumer Privacy Advertising to children Federal Regulation of Advertising in North America Federal Trade Commission (FTC) http://www.ftc.gov/ Defining deception Comparative advertising Defining unfairness Investigating violations Remedies for unfair or deceptive advertising Consent decree Cease-and-desist order Corrective advertising The Consumer Perception Process Physical data (stimuli) Ad/commercial Promotion News item Product/store Price tag Conversion Physiological Psychological screens (sensory) screens (emotional) Sight Hearing Touch Taste Smell Personality Self-concept Attitudes Beliefs Habits Mental files (memory) Awareness Nonawareness Feedback •Information •Needs •Wants The Market Segmentation Process Market Segmentation 1. Identify people with shared needs and characteristics 2. Aggregate these groups into market segments according to their mutual interest in the product’s utility Segmenting the Consumer Market Geographic Segmentation Demographic Segmentation Behavioristic Segmentation Psychographic Segmentation perception, Exchanges The Target Marketing Process satisfaction Target Market Selection The Marketing Mix: Matching products to markets Product concept Marketing mix Product Distribution Communication Price perception, Exchanges and the Advertising Product satisfaction Element Product life cycles Product classifications perception, Exchanges and the Advertising Product satisfaction Element Product life cycles Product classifications Product positioning Product packaging Identification Consumer Appeal Containment, protection, convenience Economy Exchanges Advertising andperception, the Price satisfaction Element Key factors influencing price Market demand Production and distribution costs Competition Corporate objectives and strategies Variable Influences perception, Exchangesand the Advertising Distribution satisfaction (Place) Element Direct distribution Network marketing Indirect distribution Intensive distribution Selective distribution Exclusive distribution Vertical marketing systems Exchanges Advertising and the perception, Communication satisfaction (Promotion) Element Personal selling Advertising Direct marketing Public relations Collateral materials Sales promotion The Marketing Plan The importance of marketing planning Marketing plan Effect of the marketing plan on advertising Top-down marketing Situation analysis Marketing objectives Marketing strategy Marketing tactics The Advertising Plan Reviewing the marketing plan SWOT analysis Setting advertising objectives Understanding what advertising can do The advertising pyramid The old model vs. the new Advertising Strategy and the Creative Mix Product concept Target audience Creative Mix Communications media Advertising media Importance of Relationship Marketing and IMC Advertising must work with Direct marketing Sales promotion Personal selling perception, Exchanges Sales Promotion Strategies and satisfaction Tactics Push strategies Trade promotions Trade advertising Pull strategies Consumer advertising Consumer sales promotions The Difference Between Advertising and Public Relations Public Relations Advertising Free media Paid media Not openly sponsored Openly sponsored Imprecise placement Precise placement Writing the Creative Brief (Copy Platform) Who? Writing the Creative Brief (Copy Platform) Rational Appeals Why? Emotional Appeals Writing the Creative Brief (Copy Platform) Product positioning Special product features? What? Product personality or image Claim support? Perceived strengths and weaknesses Writing the Creative Brief (Copy Platform) What style, approach, and tone? Where and When? Pros and Cons of Magazine Advertising Pros Flexibility Cost efficiency Color Pass-along readership Authority / believability Merchandizing assistance Permanence Prestige Audience selectivity Pros and Cons of Magazine Advertising Cons Long lead time Lack of immediacy Heavy advertising competition Shallow geographic coverage High cost per thousand Inability to delivery mass audiences at a low price Declining circulations Inability to deliver high frequency Using Magazines in the Creative Mix Special possibilities with magazines Bleed Cover position Junior unit Island halves Insert Gatefold Custom magazines perception, Exchanges How Magazines are Categorized satisfaction Content Consumer magazines Farm publications Business magazines perception, Exchanges How Magazines are Categorized satisfaction Content Geography National Regional More Local perception, Exchanges How Magazines are Categorized satisfaction Content Geography Size Large Standard Flat Small perception, Exchanges Using Newspapers in the satisfaction Creative Mix Who uses newspapers? 56% 60% 56 million $46.3 billion Read a daily newspaper Adults read every section Newspapers sold daily Spent on newspaper ads in 1999 Pros and Cons of Newspaper Advertising Pros Mass medium Selective attention Local medium Creative flexibility Comprehensive scope An active medium Geographic selectivity A permanent record Timeliness Reasonable cost Credibility Pros and Cons of Newspaper Advertising Cons Lack of control Lack of selectivity Overlapping circulation Short life span Low production quality Clutter perception, Exchanges How Newspapers are satisfaction Categorized Frequency of delivery Daily Weekly Physical size Standard size Standard advertising unit Column inch perception, Exchanges How Newspapers are satisfaction Categorized Type of audience Other types of newspapers Sunday supplements Independent shopping guides Types of Newspaper Advertising Display advertising Reading notice Co-op programs Classified advertising Classified display ads Public notices Preprinted inserts The Medium of Television Broadcast TV VHF UHF Cable TV TV audience trends Use of television in IMC Pros and Cons of Broadcast TV Advertising Pros Mass coverage Creativity Low cost Prestige Some selectivity Social dominance Impact Pros and Cons of Broadcast TV Advertising Cons Brevity High production cost Clutter High air-time cost Zipping and zapping Limited selectivity perception, Exchanges TV Audience Measurement satisfaction Rating services: The book Neilsen SMRB Mediamark Cable ratings Defining television markets Designated market areas (DMAs) The Medium of Radio Who uses radio? The use of radio in IMC Imagery Transfer Radio programming and audiences The Medium of Radio Radio programming and audiences Programming formats Digital Interactive Media 6 5 4 1996 1998 1999 2000 2001 3 2 1 0 Web Ad Spending ($billions) The Internet Audience Who uses the Net? How people access the Net Narrowband Broadband Cable Modem DSL DirecPC WebTV perception, Exchanges Types satisfaction of Internet Advertising Websites Web page Banners and Buttons Banner Rich media ad Button Interstitial Rich mail Pros and Cons of Internet Advertising Pros Interactive Medium In-depth information Enormous audience Rapidly growing industry Immediate response Reaches BTB users Selective targeting Advertorials Proximity to purchase Virtual storefront Affluent market Pros and Cons of Internet Advertising Cons Security and privacy Untested medium Global marketing limits Targeting costs Slow downloads Exchanges Measuring theperception, Internet satisfaction Audience Seeking standardization Ad request Click rate Promise of enhanced tracking Cookies perception, Exchanges Global satisfaction Impact of the Internet Online ad spending: $71 billion Online Ad Spending Africa Asia/Pacific U.S. Europe Canada Latin Am Middle East Direct Mail Advertising: The Addressable Medium Growth of direct mail Types of direct mail Using direct mail in the media mix Pros and Cons of Direct-Mail Advertising Pros Selectivity Personal Impact Coverage and reach Exclusivity Flexibility Response Control Testability Pros and Cons of Direct-Mail Advertising Cons Selectivity problems High cost per exposure Negative attitudes Delivery problems Environmental concerns Lack of content support Buying Direct Mail Advertising Acquiring direct-mail lists House lists Mail-response lists Compiled lists Production and handling Letter shop Distribution Chapter 18 Using Out-of-Home, Exhibitive, and Supplementary Media Presents the factors advertisers consider when evaluating various out-of-home, exhibitive, and supplementary media Out-of-Home Media Outdoor Advertising 2002: $5.2 billion Directional medium for motorists Enhances awareness of and reinforces the advertiser’s core message Regulation of Outdoor Advertising Maine Vermont Hawaii Highway Beautification Act 1965 Alaska Transit Advertising Types of transit advertising Transit shelters Terminal posters Inside and outside cards and posters Taxicab exteriors Other Out-of-Home Mobile Billboard Parking meter and public phone Electronic Signs Exhibitive Media Product Packaging Environmental issues Government impact Package manufacturing Supplementary Media Advertising Specialty Premium Directories and Yellow Pages Emerging Media ATMs Videotapes Product Placement Cinema advertising