MAR3023- Week 8 Notes (Feb. 28) PDF

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Professor Lutz, covers Week 8 Notes ...

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Week 8 Notes - February 28th, 2019 Finished Week 9- March 14th, 2019 ------------------------------------------------------------------------------------------------------------------------------Chapter 18: Advertising, Sales Promotion, and Public Relations Chapter 19: Using Social Media and Mobile Marketing to Connect with Consumers

Advertising and Sales Promotion

Learning Objectives:  Describe the structure of the advertising industry.  Describe three theories of how advertising works and their implications for advertising strategy.  Understand the components of media strategy.  Understand trends in the use of sales promotion. ------------------------------------------------------------------------------------------------------------------------------ The Ad “Industry”

 Ad Tasks o Inform  Baseline task  Always strongly emphasized (every ad has at least some sort of information in it) o Persuade  Institutional Advertising  Designed to get the firm in the public consciousness, so that you think more highly of the firm o Sell  Hard sell- reaching out, grabbing the customer or consumer by the throat and saying, “hey, buy this!” (we want your business)  Soft sell- more of a subtle approach; showing people lots of advantages to the product, but not necessarily making that really strong pitch for consummating a sale o Reinforce  We are reinforcing the consumer for a purchase (directed at people who have already bought) o Remind

People don’t use the product enough (they forget), run a campaign to remind people to use their products (specialized ad campaigns)  How does Advertising Work? o Three Theories  Hierarchy-of-Effects (“Think-Feel-Do”- High Involvement Hierarchy of Effects)  Awareness Knowledge Cognition “Think” 

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Liking Preference

Affect “Feel”

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Intent Purchase

Conation “Do”

Low Involvement  “Think-Do-Feel” o Cognition o Conation o Affect Dual Mediation

 Subliminal Advertising {below the threshold of perception} o Ambiguous Stimuli  Things that you might see in a video or something like that, that you don’t really know exactly what they are; you take that information and somehow that ambigous information gets translated into something that has maybe some sexual content or something along those lines o Embedded Stimuli  You can see them with the naked eye; clearly obvious when you see it o Truly Subliminal Stimuli  Where we would not see it or hear it  Media Strategy o How to distribute the ad message effectively  Media Mix: The Array of Media used in an Ad Campaign

o Traditional Media  Television  Network o Refers to the major television networks that anyone can watch with just an antenna  Spot o Buy TV commercials in particular spots  Cable o Refers to stations you can only get if you have cable or satellite  Syndicated o You’ll have a syndicator who puts together a package of some sort of TV package (more of a localized approach)  E.g. Jeopardy, Wheel of Fortune, Seinfeld, etc.  Radio  More localized  Newspaper  Huge drop (moved to online)  Magazine  Huge drop (moved to online)  Outdoor o New Media- Digital  Search- Sponsored Links [“Ad”]  Top leader- Google  Disadvantage- click fraud  Display Ads  Behavioral Targeting {based on use of cookies and retargeting}  E-mail  Permission (you agree to do business with them; agree with the subscription)  Social Media  Facebook (owned media)  YouTube [2nd largest search engine, right behind Google] o Viral  Twitter (tweet- unearned media; retweets- earned media)  Mobile  Types of Sales Promotions o Consumer (“Pull”)(demand from consumers pulls down the line) Trade (“Push”)  Coupons (FreeStandingInserts) Dealer Contests  Rebates Trade Allowances  Sampling Trade Shows  Premiums Co-Op Advertising  Contests

 Point of Purchase Displays  Trends in Advertising and Sales Promotion Expenditures o Why has Sales Promotion Increased?  Growing Retailer Power  Increased Promotion Sensitivity  Brand Proliferation/Ad Clutter  Short-term Focus/ Accountability...