Adv 318J Test 1- Lecture

Front 1

What is adv?

Back 1

Clever
Fun
Original
Salespersonship

Front 2

3 key Questions?

Back 2

1. Does it work?
2. Can it do good things?
3. Can it do bad things?

Front 3

How does DeBeers maintain high price?

Back 3

1. Withholding supply
2. Clever marketing
3. Culture with misplaced values

Front 4

How can DeBeers double market size?

Back 4

establish market for the other hand

Front 5

Can ADV/IBP increase primary demand?

Back 5

Yes- milk campaign
DeBeers in Japan

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7) Can ADV/IBP do bad things?

Back 6

Alcohol
Cigarettes
Firearms
Gambling

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4 Contributions of IBP

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i) full of contradictions
ii) Both Business activity and Social phenomenon
iii) Everybody expert but… nobody can predict impact on individual consumer
iv) Highly visible but

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9) US Q1 2010

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$31.3 billion

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3 Key Factors

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Creativity
Enthusiasm
Hard Work

Front 10

1) 2005: “Youths (15-24) are spending more time _______ than _______ for the first time”

Back 10

online, watching tv

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2) Emergence of the 4th Screen

Back 11

TV
Computer
Cellphone
jumbotron”, public tv screens, Times Square screen, etc

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b) Guerrilla marketing

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i) Edgy , inexpensive promotional initiatives executed in major urban markets
ii) Generate conversation value and buzz
iii) PR used to spike media coverage
iv) Web site tie-in
v) Inexpensive
vi) Coordinated w the launch of “Dogs Rule”
c) “If you can convince dog owners, that they really love dogs, you can sell dog food”

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4) What is this course about?

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a) A: Developing great campaign ideas

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5) Where do great campaign ideas come from?

Back 14

Idea spotting”- much easier and much more effective

Front 15

1) Old Spice’s Shower Gel Problem

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a) Using shower gel is “unmanly”
b) Commercial appeals to men and women

Front 16

2) Environmental Context of IBP Campaigns

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Set of human activities directed at facilitating and consummating mutually beneficial, long-term EXCHANGE relationships”

Front 17

4) 4 Facts of Economic Life

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1. Firms compete for consumer's favor + operate to make a profit but this is NOT guaranteed
2. Consumers are NOT forced to buy
3. Caveat emptor- "let the buyer beware"
4. Firms make their own decisions

Front 18

Natural Pressure

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Competition
Specialization
Efficient Performance

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Bundle of Satisfactions

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1. Physical satisfactions- derived from product
2. Functional
3. Social
4. Psychological

Front 20

Ways to make product more appealing

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Product
Price
Promotion
Place

Front 21

9) Is any one of the 4Ps more important than the others?

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NO- each = marketing tool

Front 22

10) Mktg mgt’s task

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make OPTIMAL ADJUSTMENTS of factors under his/her control to factors beyond control

Front 23

5 Macro Environments

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Natural
Cultural
Technological
Economic
Legal

Front 24

a) Natural Environment

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i) “stuff” provided by natural environment
ii) often overlooked
iii) natural resources

Front 25

b) Cultural Environment

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i) Culture- Complex of values, ideas, that shape human behavior created by ppl that are transmitted to one gen or another
ii) Backdrop of all market activities
iii) Is use of prods/services affected by cult change?
(1) YES
iv) Adv is a cult product, provides context for which ad is interpreted. Overlook culture= miss target, squander marketing dollars
v) Marketing= meeting wants and needs, determined by culture
vi) Wedding= cult ritual
vii) Census data that reflect changing cult values
(1) Family
(2) Role and status of single adults
(3) Freedom and independence
(4) One-person households
(a) 1950- 9%
(b) 2000- 26%

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c) Technological Environment

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i) We use tech as resting from natural env, kind of life we would like to live
ii) *Marketing= matching between resources and human wants/needs
iii) marketing are structured around changes in tech environment

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d) Economic

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i) Economic institution, network of transportation, infrastructure of our economy
ii) Changes everyday in terms of all environments
iii) Axe vs Old Spice- vary in ways they market to consumers

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e) Legal

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i) Framework of public policy
ii) Regulations and requirements business firms have to meet
iii) City to have sign ordinance, cant have sign above certain height
iv) Auto safety, corrective advertising
v) Dr. Robert Javik
(1) Not licensed to practice medicine
(2) Didn’t invent artificial heart, his mentor did
(3) 2007- Lipitor made 12.7 billion dollars
(4) Lipitor dropped Dr. Jarvik
vi) NHTSA’s Auto Stickers
(1) Grade cars on fuel economy
(2) Electric v gas cars

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13) 4 Managerial Functions

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Organizing
Planning
Implementing
Controlling

Front 30

15) The Marketing Concept

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a) Philosophy of doing business
b) David Oshinsky describes US in 1950s- GE was pioneering new way of viewing what business firms do
c) Revolutionized way to interact with customers, changed how firm should view itself

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A _______ backed by _______ aimed at generating _________ as the key to satisfy the firm’s objectives

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Consumer orientation,
integrated marketing,
customer satisfaction

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e) Companies that adopt the marketing concept….

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i) Concentrate on what customers wants that it achieves its objectives
ii) Develop an ORGANIZATIONAL CULTURE based on shared beliefs about marketing

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16) Consumer Orientation

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a) Structuring firms around consumers’ needs, outward orientation, looking to consumers’ wants/needs
b) Marketing is the art of helping the customer become better off, not about selling what you make

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c) Who must be champion?

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i) Manager
ii) Dan Cathy of Chickfila gets it
(1) Only want hands on managers, franchise owners
(2) Being in touch with consumer
iii) Immersion experience
(1) Manager will do lower jobs on a regular basis
(2) Forcing upper management to work at ground level of org
(3) Ex: saw firsthand aggravation of waiting in long lines

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d) Four steps need to take for Consumer orientation:

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Generic need definition- broad statement of what business you're in
Target Group Evaluation
Differentiation Strategy
Research Commitment

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e) IBMs Generic need def

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i) We make business machines
ii) Problem solving
iii) Information management
iv) Risk reduction
(1) Has evolved, info consulting firm

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f) Firms employees should play a key role in gathering info

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i) Trader Joe’s
(1) Company with record of listening to employees
(2) Food democracy- based on feedback from customers

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17) Integrated Marketing

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a) Need to be coordinated, 2 broad areas
i) Functional areas- manufacturing, purchasing, marketing, finance, HR, etc
ii) Mix elements-

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18) Customer Satisfaction

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a) Success or failure determined by customer sat, organization of firm is able to generate
b) Herb Kelleher- “There isn’t going to be any CS without employee satisfaction”
c) Importance of Satisfied Customers
i) Will tell 5 other ppl about product if satisfied
ii) Dissatisfied tell 11 other ppl

Front 40

Marketing concept

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a) # of companies truly adopt= tiny
b) 1.800 customer service experience
c) trying to help as many ppl as quickly as possible= not good service
d) CONCLUSION: most co.s NOT following mktg concept

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Mirror and Influence

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i) “What are aspirations?”
ii) The young, naïve, and impressionable- most impressionable
iii) Young kids are like sponges, want to fit into culture, media and advertising play a big role

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All about brand images

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i) Used to create memorability, feelings of familiarity

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_________ that reflects the way a ________, including all the id elements, the product personality, and the emotions and associations evoked in __________

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Mental image,
brand is perceived,
the mind of the consumer

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Transformational advertising

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i) Make experience better?
ii) Nike= can you run better in Nike?
iii) Brand is a promise
iv) Disney= keeping the magic of childhood alive
v) Brand is the sum of all experiences consumer has with the brand

Front 45

Ray-ban campaign

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i) Never-Hide campaign
ii) Dominated Times Square
iii) Web-based viral marketing
iv) Designed to generate buzz
All over the world, even in Austin in SoCo

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4 Web Components of Never-Hide Campaign

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1. Created anthem for campaign- used Ben Kweller song
2. Commissioned 5 web-directors
3. Photo gallery of people wearing Ray-Bans
4. Interactive sending of virtual postcards

Front 47

Unhealthy part of adv:

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a) Image of female beauty
b) Stereotype of women as sex objects

Front 48

Younger kids are more susceptible

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a) Young naïve and impressionable
b) How do I fit in? getting unhealthy signals

Front 49

Is there a direct link between the portrayal of women in advertising and eating disorders?

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a) YES. Young women constantly exposed to fashion and media advertising
b) Eating disorders among teen girls- common
c) 150,000 women die each year from anorexia

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Jean Kilbourne wrote...

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Killing Us Softly 4- about eating disorders among women

Front 51

marketers are sensitive to emails, figure every email= ______ ppl feel the same way

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1000

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M” word in marketing

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materialism

b) Preoccupied with possession of material things, creates a society that depends on p of m things

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"advertising encourages ppl ________ instead of _________" Eric Fromm

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to want more,
wanting to be more

Front 54

Affluenza”- tv then book

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i) painful, contagious, socially transmitted condition of overload, debt, anxiety, and waste resulting from the dogged pursuit of more stuff
ii) Americans are hooked on buying more stuff

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affluenza brings you 4 things...

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overload
debt
anxiety
waste

Front 56

Wanting stuff creates:

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anxiety
disappointment
feelings of inadequacy
envy
plus more bad junk

Front 57

Dr. M’s Law of consumer dynamics:

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a) There is an inverse relationship between material possessions and real happiness”

Front 58

"But will it make you happy?”

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couple decided to Live simply in 400 sq ft studio, no car, 100 items

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Research= happier if

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experiences, not stuff
plan to buy ahead of time
no keeping up with the jones'