Advertising Test #2

Consumer Behavior

The entire broad spectrum of things that affect, derive from, or form the context of human consumption

Stages of Consumer Decision-Making

Four Key Steps:
(1) Need recognition
(2) Information search and alternative evaluation
(3) Purchase
(4) Post-purchase use and evaluation

Need Recognition

Products and services should provide benefits that fulfill consumers' needs/wants
Functional benefits (rational)
Emotional benefits
Advertisers/marketers must make the connection between the consumer needs/wants and benefits
The essence of marketing
Abrah

Info Search and Alternative Evaluation

Internal search:
Prior consumer experience
Attitudes toward product and alternatives
Memory as formed by previous ad exposures
External search:
Visits retail stores
Input from friends/family
Product evaluations in publications/Net

Consideration Set

The subset of brands from a particular product category that becomes the focus of a consumer's evaluation

Evaluation Criteria

Criteria for selection of brand within a product category

Levels of experience and involvement

Extended problem solving (le & hi)
Limited problem solving (le & li)
Habit or variety seeking (he & li)
Brand loyalty (he & hi)
Understand the extent to which consumers are involved or engaged in the category and/or purchase

Attitudes

Overall evaluation of any object, person, issue, or experience that varies along a continuum, such as favorable to unfavorable or negative to positive

Brand attitudes

Evaluations reflecting preferences for various products/services

Beliefs

Represent the knowledge and feelings a person has accumulated about something

Where does Consumer Behavior Insights come from?

Research, learning, judgment, etc.
- qualitative research
- quantitative research
- secondary research
- primary research
- common sense
- observing

Market Segmentation

Breaking down large, diverse market into more manageable sub-markets or customer segments

Segment market by product usage

Heavy users
Medium users
Light users
Depends on business but above can be fragmented to be more specific!

Segment market by commitment levels

Brand-loyal users
Nonusers
Switchers or variety seekers
Emergent consumers (developing brand preferences)

You can also segment your market by demographic segmentation

Age
Gender
Race
Marital status
Education
Income
Occupation

VALS

Strategic Bussiness Insight
Segments people based on Values & Lifestyle

Target Segment

The subgroup (of the larger market) chosen as the focal point for the marketing program and advertising campaign

Identifying the Key Target Segment(s)

(1) Segment need/want and ability to deliver against that need/want
(2) Segment size & growth potential
(3) Competitive field

Positioning

The act of designing and representing one's product or service so that it will occupy a distinct and valued place in the consumer's mind.

Different Ways to Think About Positioning

Positioning graph
Positioning statement
Example - Crest is the only toothpaste that protects your teeth from cavities for a lifetime because it contains "floristat."
Product name
Product category
Benefit (emotional or functional or both)
Reason-why
Implic

Repositioning

Change the position of a brand in the mind of the consumers

Key Elements of a brands position

Simple, understandable
Distinctive
Relevant to consumers
Can the product/service deliver?
Think about how this applies to business in general...

Advertising Research

A specialized form of marketing research that focuses on the planning, preparation, placement, and judgment of advertising
Usually, agencies are in charge of ad research

Reasons for Advertising Research

Generate ideas and learn about consumers
Maximize effectiveness: Communication of proper message; Is the message right for the target? Did it connect?
Minimize risk of saying wrong thing or misrepresenting brand, etc.
Accountability: Did campaign have an

Types of Advertising Research

Developmental Research
-To generate advertising ideas, opportunities, and messages
-Uncover consumer insights!
-To help Creatives understand the target audience
Copy Research
-To judge or evaluate the ads

Projective Techniques

1) Word Association
- Participants get a word and write what they associate with that. good to get things started.
2) Sentence Completion
3) Dialogue Balloons
-picture of person and participants fill in the speech bubble
4) Story Construction
"Please writ

Limitations of Focus Group

Group thinking
Social desirability (saying something to impress others)

Copy Research

Evaluation Research
Used to judge or evaluate ads
For effective message evaluation, choosing the right criterion is important task

Evaluative Criteria

1) "Getting It"
-Understand it? Get the message? See connection?
2)Knowledge
-Did ad leave cognitive residue?
(a mascot, a tag line, recognition of brand)
3)Attitude Change
-Do you like the ad? Do you like the M&M's in the ad?
4) Feelings and Emotions
-Wh

Copy Research Methods

Communication Tests
-To see whether ad is communicating intended message
-Unintended communication
-Disaster check!!!
Thought Listings
-Getting at people's stream of thoughts about an ad; identify specific thoughts about an ad
-"Write down all thoughts, f

Recall Tests (Mostly TV)

Consumers recall brand or ad/message
- Watch show; day after phone interview
"Unaided Recall" (brand or ad)
- Consumer recalls brand/ad without being prompted with specifics of brand/ad
"Aided Recall" (brand or ad)
- Consumer must be prompted with brand/a

Recognition (Mostly Print)

To explore whether they remember having seen particular advertisements and whether they can name the company sponsoring the ad.

Tracking Studies

Members of the target market are surveyed on a fairly regular basis to detect any changes.
Measures ad/brand recall, awareness and attitude change, behavioral/purchase intent
Limitations: the inability to isolate the effect of advertising on awareness and

Porter's Theory

Highly competitive industrial centers (clusters) develop when favorable factors are concentrated and diverse groups come together (companies, industries, academic and government institutions, etc.) and "have intense interactions.

Major Types of Agencies

Full-service agency* - Range of services
Creative boutique - Creative focus
Interactive agency - New media communication
In-house agency - Client ad division
Media-buying service - Inde media company

Agencies evolving

Mega holding companies
Global nature of agencies*
Minority agencies
New media - Web and interactivity*

Account Management

Leader of account team at agency
Deals directly with client
Marketing counsel
Bring together agency resources to provide client with advertising services and products
"Account manager" or "account executive

Creative

Create and develop advertising ideas
Other ideas
Creative Director
Leader of creative team(s)
Copywriter & Art Director (artist)

Advertising Research

Agency person in charge of marketing and advertising research
Much research is contracted out to research suppliers

Account Planning

Account Planner
"Voice of the consumer"
Represents consumer in creative process
Discovering "consumer insights"
Triggers for purchase
Connect with consumers
Works with creatives to develop advertising that is relevant to consumers

Production

Television, radio, and print/internet producers
Pull together all the pieces of a production:
Director & Production House
Casting
Location
Wardrobe
Shooting schedule
Liaison among all parties
Arrange for product samples
Product "dummies"
Etc.
Difficult jo

Media

Media Planners
Plan timing and placement of advertising
Media Buyers
Actually purchase the media time or space

Administrative Services

Traffic person
Traffic cop for projects in agency
Makes sure projects are where they are supposed to be and when.
Intro job!!!

New Business!

Life Blood" of an Agency
Great opportunity for young people in agency!
Either a dedicated department or a volunteer basis
Mad Men: The "Carousel

Others Ad Agency Jobs

Event Planner
PR specialist
Sales promotion specialist
Design services
Etc.
What is missing?
Social Media Strategist

Brand (Definition)

A brand is a collection of characteristics, promise(s), values/beliefs, imagery, and experiences represented by a consistent look and voice.

Branding

The creation, development, management, and stewardship of a brand

Brand Architecture

Most fundamental tool for defining a brand!!!!
What brand represents
What brand stands for
Defines core of brand!!!!!
-Establishes a roadmap for consistent brand communication and across media!
-Centerpiece for IMC
-Eliminates sporadic nature of creative

Elements of Brand Architecture

Attributes - Rational product features
Benefits - Emotional and rational delivery
Values - Basic human values
Personality - Human characteristics
Essence - Enduring "Soul" of the brand*

Agency Compensation

Commission System" - Traditional
Full-page ad costs $1,000 - Paid by Advertiser
But... if ad agency buys space from paper....
Agency commission (From media)
Agency buys full-page ad from paper for "$1,000"
But receives "Agency discount" - Buys for only $