Contemporary Advertising, 8/e William F.

Arens Marketing and Consumer Behavior: The Foundations of Advertising

II. aspect of marketing. repackaging. an effective advertising specialist must have a broad understanding of the whole marketing environment in which advertising operates.  The goal is to use this information for "product shaping" designing products. Marketing is the only function whose primary role is to attract revenues into the company. goods. pricing. to satisfy more fully the customer's needs and wants. and services to create exchanges that satisfy the perceived needs. B. Respect the importance of marketing and know how to interpret the data uncovered by research.  Marketers use research to discover what needs and wants exist in the marketplace and to define a product's general characteristics in the light of economic. and to earn consistent profits. Every business organization performs a number of diverse activities which are typically classified into three broad functional divisions:  Operations (production/manufacturing)  Administration/finance  Marketing C. Therefore. C. B. b. and distribution of ideas.I. An exchange is any business transaction in which one person trades something of value to another person. D. Utility extends to the product's ability to satisfy both symbolic (or psychological) wants. theoretical core of marketing. Defining marketing A. It is important that the seller reassures the buyer . to recover the initial investment capital. through manufacturing. wants. Advertising helps the organization achieve its marketing goals. This is generally referred to as the product's utility.  Three important concepts are: a.perhaps through advertising . and objectives of individuals and organizations. Marketing is the business process (a series of actions or methods that takes place sequentially) of planning and executing the conception. III.  Customer Needs and Product Utility a. Even superior advertising can't save a product that isn't marketed correctly.that an equal exchange is possible. promotion. A main element of marketing is its focus on the special relationship between a customer's needs and the product's problem-solving potential. Advertising is just one of the numerous tools used in the promotion or communication. social. You can't assume anything about a market. Advertisers must understand the relationship between the product and the marketplace. The Larger Marketing context of Advertising A. The Assumption Syndrome A. Exchanges: The purpose of marketing and advertising. Marketing aims to create exchanges that satisfy the perceived needs. and political trends. or advertising. wants and objective of individuals and organizations. There must be a perceived equal- . Exchange is the traditional. B.

Market Segmentation and the Marketing Mix: Determinants of Advertising Strategy .

3. or heavy users of products. Marketers group variable characteristics into a several categories to identify and segment consumer markets.consumers likely to be swayed by appeals to their emotional and cultural values. e. Benefits sought variable . The purpose is to identify those likely to respond and to create rich descriptions of them so as to be able to design effective messages. but the most important are: 1.when the product or service is bought or used 4. Psychographic Segmentation . Behavioristic Segmentation . The Market Segmentation Process A. education.or space in the market . Semisole users typically use brand A. f. occupation.  The four categories are: a. d. wants. Usage-Rate variables (volume segmentation) . User-status variables . These are the primary brand switchers. b.consumers seek benefits in the products they buy . low price.  Aggregating (combining) these groups into larger market segments according to their mutual interest in the product's utility.I. therefore. Sole users are the most brand loyal and require the least amount of advertising and promotion.Stephan and Tannenholz identified six categories of consumers based on user status: a.needs. marketers measure usage rates to define consumers as light.where the advertiser's product or service will fit. Geographic Segmentation . Repertoire users perceive two or more brands to have superior attributes and will buy at full price. but have an alternate selection if it is not available or if the alternate is promoted with a discount. Trial/rejecters bought brand A's advertising message. but haven't bought into brand A's message. advertisers can focus messages more effectively. Remember 20% of the population consumes 80% of the product.geodemographic segmentation. The concept of shared characteristics is critical to market segmentation. and purchasing habits vary by region of the country and from country to country. etc. the primary target for brand advertising.demographics are characteristics such as age. income and other quantifiable factors. Behavioral segments are determined by many variables. Purchase occasion variables . 2. By finding common characteristics among heavy users. .consumer grouping by their purchase behavior. sex. Discount users are the semisole users of competing brand B. They don't buy brand A at full price. but perceive it well enough to buy it at a discount.In volume segmentation. c. but didn't like the product. medium. sex appeal. c. status. ethnicity. Marketing and advertising people try to find a particular "niche".high quality. Demographics are often combined with geographic segmentation to select target markets for advertising . A two-step strategy of:  Identifying groups of people (or organizations) with certain shared characteristics within the broad markets for consumer or business products. Demographic Segmentation . Aware non-triers are category users. based on their B. d. b.

8/e William F.Contemporary Advertising. Arens Information Gathering: Inputs to Advertising Planning .

Companies develop advertising strategies by blending elements of the creative mix: the product concept.C. and the creative message. record. advertisers use a subset of advertising research called media research. a.advertisers use testing to ensure their advertising dollars are being spent wisely.  Testing helps make important decisions. select media vehicles.I. (It should not be confused with "market research. A. A subset of marketing research. the target audience.g.  Message-element determination . B.advertisers may pretest advertising strategy and ." which is information gathering about a particular market or market segment. Nielsen. ads and commercials. and communication elements. b. helping to focus resources on these areas in order to reach advertising dominance (dominance concept). price.0K) : advertising strategy research. Markets . C. Regaining lost customers. Simmons. integrated mix of product. presenting of ads.using rough commercials (animatics) and other research techniques to determine consumer reactions to various advertising concepts. Arbitron. Category 1: Advertising Strategy Research. distribution. Advertising researchis the systematic gathering and analysis of information to help develop or evaluate advertising strategies. Posttesting– evaluates an ad or campaign after it runs and provides the advertiser with useful guidelines for future advertising (ad tracking). Pretesting . B. Category 2: Creative Concept Research .the systematic procedure used to gather.  Product concept definition -advertisers want to know how consumers perceive their brands and what qualities lead to initial purchases and eventually brand loyalty.. Retaining current customers c. and analyze new information to help managers make marketing decisions. Merchandise . and Standard Rate and Data Service). A. II. Advertising research serves various purposes which are grouped into four categories (92.companies can find promising advertising messages by studying consumers' likes and dislikes in relation to brands and products. and evaluate their results.  Purpose of testing a. and post testing of ads.this is the product concept. What is marketing research?  Marketing research . the communication media. The need for research in marketing and advertising A. b.)  Good research enables the company to devise a sophisticated. creative concept research. increasing the likelihood of preparing the most effective advertising messages. Category 3 and 4: Testing and Evaluating Advertising .  Target audience selection .Research finds the markets most important to product sales. Recruiting new customers b. and media campaigns. Agencies subscribe to syndicated research services (e. Advertisers may pretest the package design or how advertising positions the brand or how well the ads communicate the product features.  Media selection . all committed to the three R's of marketing: a.diagnosis.to develop media strategies.

Bottom-Up. and IMC eLearning Session .Marketing and Advertising Planning: Top-Down.

 Marketing objectives . technological. 2. C. Marketing objectives. past advertising programs. products. and any other pertinent information. The marketing plan assembles all the pertinent facts about the organization. credit. Corporate objectives are usually stated in terms of profit or return on investment-or net worth. The market plan:  Helps managers analyze and improve all company operations.product development. markets served. distribution system. political. the marketing plan may be a company's most important document. Presents all relevant facts about the company's history. b. b. The marketing plan A. control. transportation .  Enables better implementation. production.to focus on the customer. and it ensures the most efficient allocation of advertising dollars. Since marketing is typically a company's only source of income. which derive from corporate objectives. quantitative. results of marketing research studies.  It is NOT a one-time event. or corporate reputation.  It forces all of the departments . Plans are continually reviewed and revised. B. growth. . strengths and weaknesses. Top-Down Marketing Plan (27. earnings ratio. company capabilities. competitive status. It is good for hierarchical organizations and new products.I.the next step is determining the company's specific marketing objectives and stating them in a hierarchy as follows: a. customers. The marketing plan has a profound effect on a company's advertising plan. relate to the needs of target markets and to specific sales goals referred to as: 1.are specific. The top-down plan has four main elements:  Situation analysis . and continuity of advertising programs.The section which is a "factual" statement of the organization's current situation and how it got there. the focus changes to potential threats and opportunities based on key factors outside the company: economic. sales volume.0K)is the most common planning format. advertising. or commercial environments the company operates in. and its products. services. Successful organizations do not separate advertising plans from marketing. social.  It sets goals and objectives for specified periods of time and lays out strategies and tactics to achieve them in a written form. competition. It also: a. Sales-target objectives . share of market. and so on. growth.  Dictates the role of advertising in the marketing mix. selling. the markets it serves. including marketing and advertising programs. Need-satisfying objectives .which shift's management's view of the organization from a producer of products or services to a satisfier of target market needs. After gathering historical information.