Advertising agencies: offer creative and business services, media selection and buying
Full service: all services offered
Creative boutique: only do the creative bits, concept developments, artistic work, copywritting, copy testing
Interactive agencies: prepare internet media, CDs, interactive TV
In-house agencies: the advertising department of a large advertiser (P&G, Campbell soup,etc). Client has more control and it can be more efficient
Media planning and buying: they specialize in just the media, planning for and buying media space and time. Economies of scale, better negociations
Promotion agencies: sampling, events, tie-ins (co-branding. ex: Nike & Ipod), special promotions
Direct marketing agencies: handle large mailing lists, create direct responsecampaigns, have fulfillment centers to fill orders
E-commerce: design promotions using e-commerce, sweepstakes, coupons, loyalty, programs, anything using the Internet
Sales promotion agencies: POP, sampling, coupons, incentive programs for wholesales, trade shows
Event planning agencies: find locations, assemble a team, get press coverage, advertise the event
Design firms: design your logo andsupporting materials, newsletters, in-store displays, etc.
Public relations firms: work on managing the company’s image with its publics, handle crises
Types of advertising:
1 Primary demand stimulation
Advertiser seeks to create demand for a new product category in general. Purpose is to educate about the basic values of a category rather than to emphasize a particular brand
2 Selective demand stimulation
Purpose is to point out the brand’s unique benefits compared to others
ex: better sound quality, remote command, etc.
3 Direct response advertising
Asks the message receiver to react immediately.
ex: “call this toll-free number”, “mail your check today”, etc.
4 Delayed response advertising
Develops recognition and approval of a brandover time, creates awareness, reinforces benefits.
ex: most TV and print ads are like this
5 Corporate advertising
Tries to establish a favorable attitude toward the company and its products as whole
6 Institutional advertising
Used by retailers to get people to shop at their stores or buy their private label brands
FOUR STAGES OF CONSUMER DECISION MAKING
-need recognition-information search and alternative evaluation
-post-purchase use and evaluation
-color, scent, etc.
-flat content, etc.
-advertisers must manage customers’ expectations
-advertising can help alleviate cognitive dissonance
4 modes of decision making:
-High/low involvement with the product
symbolic and real consequences
tends to lead to brand loyalty
-High/low experience with the product
extended problem solving
deliberate decision makingprocess
internal and external information search
comparison of alternatives
-limited problem solving
less systematic information search
habit or variety seeking
1 determine evaluative criteria
2 give weights according to importance
3 choose the consideration set
4 include beliefs or important facts
Advertising in a social context:
-race and ethnicity
What is the difference between segmenting, targeting and positioning? (STP marketing)
-heavy, medium, light users and non-users
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