What is the difference between the old vs. new view of marketing?

The old view of marketing was that it's primary function was to sell. (Marketing = selling what you
make). This view is still alive in companies that only care about being the market leader. However
this is an incorrect view. Marketing should be about finding out what customers' needs are unmet
and then providing these needs better than the competitor.

What are the goals of Marketing?

1) Marketing should be about creating value for all stakeholders, providing value for customers
and keep providing value for the customers in the future.
2) The orientation should allays be external, and focused on the customer.
3) The goal is to obtain profits through customers satisfaction. So not only one sale but keep
providing benefits for customers in the future, and through life-time value. Customer
acquisition is expensive therefore it is profitable to ensure customers keep coming back to
purchase your products.

What does STP stand for? What is the process?

STP stands for
Segmentation:
1. Identify Segmentation variables and segment the market.
2. Develop profiles of the resulting segments.
Targeting:
1. Evaluate the attractiveness of each segment.
2. Select the segments you want to target.
Positioning:
1. Identify possible positioning concepts for each target segment.
2. Select, develop, signal and maintain in the chosen positioning concept.

Why is STP so important?

We don not want to target the entire market as this is inefficient and corresponds to the old view of
marketing where market share is most important. STP allows us put customers in different segments
and see which segments we can satisfy better than the competitors, that is we have the core
competencies to do so. As it helps us to determine whether a segment is attractive to pursue.

What is segmentation? Why is it important?

Segmentation is identifying various customers groups and placing them in separate segments. This
can be done on the basis of demographics, behavior etc. This allows us to see how our product mix
would react differently on each segment. This is important because we want to target the segments
that are most attractive and we are able to satisfy the needs for better than the competitors. Not all
customers are the same, different customers have different needs that need to be fulfilled.

What are the 3 criteria for segmentation?

1. Distinctive: Are we able to segment the customers in a meaningful way.
2. Operational: Can these segments be identified and reached.
3. Substantial: Are the segments large enough to extract a sustainible profit.

What are the different types of classification/segmentation?

1: Personal Characteristics.
There are multiple measures we can use to segment using personal characteristics. These features
are mostly outward features that we can observe (age, sex, income, lifestyle etc.) This type of
segmentation can lack more subjective measures which can be very important in customers'
purchasing decisions.
 1. VALS (Values and Lifestyles): This is a measure that ask people questions about their
interest and values and tries to then put them into different groups based on lifestyle. (This is
the map with the senser, the thinker etc. etc.)
2. Demographic Segmentation: Is created based on demographic data and socio-economic
status. Companies use that because they hope people identify with the product and it creates
a link. This information is relatively easy to access.
3. Lifestyles and Psycho graphic: Segmentation based on customers with different lifestyles
(adventurers vs couch people). Can also use psychological measures.
4. Geographic segmentation: Segmentation based on where people live. Such as countries or
regions or city vs country side. Customized taste of different locations.
5. Geo-demographic segmentation: Combination of geographic and demographic
segmentation to create more specific profiles. A good example of this is Nielsen's Prizm this
subdivides people in broad categories based on whether they live in the city or country side,
age, and socio- economic status. (redneck, park bench senior etc.)

2: Benefits sought by consumers.

Companies should focus on benefits for the customers. There are 3 basic assumptions!
1. Different people have different preferences.
2. Preferences are influenced by different factors
3. People will act upon these differences.
One of the weaknesses of this segmentation is that you need to believe these 3 assumptions are true.
This type of segmentation does uncover more subjective measures compared to segmentation based
on personal characteristics.
1. Benefit segmentation: Some people want white teeth, some people want a fresh breath
some people wan´t their teeth to feel clean (toothpaste example).
2. Occasion segmentation: Segmenting on when a product is actually used (seasonally)

3: Behavioral segmentation.
This segmentation is based on the actual behavior of customers in the market place. There are
different ways to measure behavior.
1. Product ownership or use.
2. Quantity used
3. Brand loyalty, switching etc.
This type of segmentation becomes easier as technologies have improved. Promotion can also be
more customized when it comes to providing check-out coupons for certain customers at certain
times or tailored to the individuals buying pattern.

What is a segment of one?

Treat people as an individual, this is especially used for information-based marketing mix.
This means that advertising, sales promotion and pricing is specific for each individual consumer.

What does a targeting analysis involve?

Identifying which segments are attractive and deciding on which of the segements you actually
want to target your marketing mix towards.

What is the importance performance model?

A model to look which segments you can satisfy customer's needs better than the competition.
1. Customer focus: What is important to the segment.
2. Competitor focus: How good are competitors at providing these benefits.
3. Company focus: Can I provide the benefits better than the competition.
Finally company should also see if the segment is attractive enough for sustainable profits.
(For calculation of the numbers look at lectures slide, basically two matrices).
How do I determine the segments attractiveness?
First of all get rid of the segment found in the IPM model for which you can not satisfy customers
needs better than your competitor. Then for the remaining segments see if:
1. Segment size is large enough
2. Segment growth in the future
3. Seasonality do purchasing patterns change
4. Cost position can I provide this service and actually make a profit
5. Technology do I have it to produce the product
6. Cannibalization and synergies between segments and current offerings.

What are the different targeting strategies?

1: Mass Marketing
This strategy is focused on going after the entire market (the whole segment).
Pros:
1. Large output
2. Potential for large market share
3. Low cost
Cons:
1. More risk involved
2. High distribution costs (key)
3. Not efficient
4. Hard to sell product with premium.

2: Single target market approach

Select the most attractive segment from your targeting efforts. This segment can change over time.
Pros:
1. Ability to demand product premium as you are providing for a specific need which you do
better than your competitors.
2. Less risk involved (smaller distribution and production.)
Cons:
1. Target market needs to be substantial enough. (risky, people don't want to put all their eggs
in the same basket).
2. If target market is not substantial enough switching target markets might confuse customers.

3: Multiple target market approach

This approach chooses 2+ segments and offers different marketing mixes for each segment.
Pros:
1. Not putting all your eggs in the same basket.
2. Maximizing revenue streams by targeting all markets in which you can provide a benefit
better than competitors.
Cons:
1. Very hard to keep the target markets or strategies to not cannibalize each other sales (for
example target low cost and premium market might result in low-cost cannibalizing
premium product market).

What are inter-segment conflict, synergies and cannibalization?

Inter segment conflict: If you sell similar product in multiple segments so segments might not want
to be associated with the other segments (professionals don't want to buy the same product regular
consumers also can buy, even though they are off the same quality).
Cannibalization: Think of premium airlines who have a low-cost carrier to fight competition of low-
cost carries. These low-cost subsidiaries however can eat into the sales of the premium product line.
This can cause problems. -
What is positioning and how is it useful?
Positioning is putting the product in the customers' minds. Making sure that the companies offering
and image occupies a meaningful and distinct competitive position in the target customers' minds.
After segmentation and targeting you have to find out how customers can be convinced to buy your
offerings vs that of the competitor. We want to shape people's perception of our brand and product.
Positioning is useful because
1. provides blueprint for marketing mix
2. a positioning statement consists of: target market + unique benefit.

Quantitative and Qualitative tools:

Quantitative: perceptual maps.

What is a perceptual map? How are they made? And what is their purpose?
Perceptual maps are useful when we interested in multiple dimensions and several competitors.
They commonly form a map that locates the brand between competitors based on their perceived
attributes. We can create perceptual maps using 2 ways of data gathering.
1. Attribute rating: A participant rates attributes on a certain scale, they are specified by the
researchers and can be analyzed using regular statistical software. This data gathering is
used when attributes are easily defined and can be easily verbalized.
2. Similarity rating: Rating items from most similar to least similar. Respondents use his or
her own attributes and they are not made by the researcher. The results usually need special
statistical programs to be analyzed (MDS). This should be used when individual attributes
are hard to define/irrelevant. Useful when company does not know how to rate attributes.

After creating perceptual maps we can find ideal points, see if there are any gaps in the market wher
e our brand can compete. Perceptual maps however takes no account for the cost associated with
attaining a certain position in the market and is only a snapshot and does not take into account
future attitudes.
Qualitative: Brand personification/ZMET.

What kind of tool is brand personification?

If a brand was a person, what would this person be like? People buy a brand they aspire to like.

What kind of tool is ZMET?

Is a qualitative tool that has respondents make collages and pictures about their feelings towards a
certain brand. The major assumption here is that implicit attitudes are accessible through images.
This technique is especially helpful when trying to create a marketing and communication
campaign about what to say and how to look.

What are types of positioning concepts and criteria of use?

Positioning Concepts:
1. Features and benefits: describe how your features are better than those of the competitors.
2. Price/Quality: Will you focus on price or on quality?
3. Product user: Make people associate your product with a certain person, the aspiring self,
something people want to be.
4. Competitor: Directly position yourself vs. your competitor.
5. Product class: You own the class.
6. Symbols and imagery: Have your product evoke certain images, (Harley Davidson and
landscapes).
Criteria for good positioning concepts:
1. it should be important and meaningful to the segment that you target.
2. Credibly superior, people should be able to believe your claims.
 3. Pioneering
4. Distinctive
5. Sustainable
6. Communicable
7. Feasible

What is a good positioning statement?

(target market) + (product) + (most important claim) + (most important support for your claim).

What are the take home messages for the Crescent Pure Case?
Marketeers working in the fast moving consumer good area should think of market segmentation in
ways of what is driving consumers to buy something. A small company should also be very aware
of its competitors and choose a strategy in which they choose their competitors. Especially in
markets which a few dominant players. A break-even analysis showed that the broad segment
should be targeted.

What are Core Competencies and how do you asses Core Competencies?
Formally they are defined as the collective learning of an organization. Hence these advantages are
not eroding but are accumulative. They can be seen as something that the company does really wel
and provides customers with major benefits compared to the competitors. You can assses Core
Competencies by:
1. A SWOT analysis. Asses strength and weaknesses both upstream and downstream (close to
the customers).
2. Everything has to fit with the common goal a company has.

What are the criteria for Core Competencies?

1. A CC should be able to provide potential access to a variety of markets and should be able
be reused in various products and markets. (Not only for one product).
2. Must make a substantial contribution to the perceived customer benefits of the end product.
3. Has to be difficult to imitate/copy.
4. Must reside downstream in the marketplace, (at customer level).
5. They need to be distributable, not contained in one department or unit.

How do CC compare vs Strategic Business Units?

Strategic Business units are less efficient than companies that focus on Core Competencies. This
has to do with the fact that SBUs are:
1. isolated and lack knowledge sharing in between units. As we read above this is a
requirement for collective learning and successful transfer of Core Competencies.
2. Underinvestment in Core Competencies
3. Bounded innovation, innovation does not take place company wide where all departments
can benefit from new innovations but only takes place in one department.

Sources of Competitive Advantage?

If its an upstream source of CA it's likely in the company's unique and unmatched efficiency in one
or many of their operations. A downstream source of CA is a top-notch brand image or e.g. better
than competition services that involve direct contact with the customer.

Why do market leaders wait?

People have a natural tendency towards inertia. Business people can often be arrogant and
overconfident. Also strategic changes sometimes does not fit into the busy schedule of day-to-day
management so management putts of thinking about strategy in the future.
1. They view competition differently.
 2. They think their competitors have a different strategy than theirs.
3. Confusing strategy and tactics. A move of a competitor into the market could be just a tactic,
or could be a larger strategy to penetrate the market further in the future.
4. Under-reaction, misunderstand the intention of competitors, basically not see them as
competitors.

How do I identify competitors?

Competitors can be identified in 2 ways.
1. The Broad way: Every competitor that is fulfilling the same need the company is fulfilling is
a competitor (a railroad company is a competitor to Tesla).
2. The Narrow way: What does the product do and in which product category does it fall
(BMW produces cars so is a competitor to Tesla).

How do I build a competitive response file?

A competitive response file consist of 3 parts to analyze. You can then compare this file to your
own profile to see points of difference, parity e
1. Generic strategy chosen: what is the competitor doing? Low-cost strategy, differentiation or
customized solutions?
2. Competitors marketing mix: Products, price positioning, channel strategy and promotion
strategy.
3. Competitors market position: Sales, market share, profitability.

What are some competitive strategies to fight the competition?

There are 3 competitive strategies, they should depened on whether the company can actually
provide the benefits that need to be delivered in this strategy.
1. Low-cost: No loyal customers are only attractive to the segment that cares about price. A
good example of low-cost strategies are category killers, they however are not only cheap
but it is all related to their core competencies and they do what they do very well.
2. Differentiation: Delivering customers benefits that other companies cannot deliver on. The
benefits should be important to customers in the segment, when achieved one can ask a price
premium. This strategy tries not to compete on price but on delivering benefits better than
the competition.
3. Customized: Focused on niche market, and delivering complete customer package that
makes it hard for customers to switch providers. Hardly any direct competition but company
should stay focused on customer very specific needs and work closely together with
customers.

What are the key take-aways of the Altius Golf Case?

1. Instead of cutting prices companies should focus find other ways to get customers what they
want better than the competition.
2. Only introduce fighter brand when it does not cannibalize the premium brand, this can be
done through differentiation.
3. The premium brand needs to be protected.

Why do so many products fail? And how can you try to prevent failure?
It is hard to predict the future, many new product introduced fail. Many manager can be
overconfident as it can sometimes be impossible to compete with big name brands. Here are a
couple of reasons why most product launches fail.
1. Fast growth cannot be supported by the company, to much demand can lead to strains on
production capacity. Demand should be properly estimated.
2. Products fall short of claims and don't deliver promised benefits.
3. “Product Limbo”, consumer do not understand the product and need especially if product
 needs consumer education.
4. Revolutionary products that simply have no market yet (google glass is easy example).

There are of course attempts that can be made to try to prevent failure.
1. Logically think about target segment and positioning, get accurate customer preferences and
do research.
2. Do a lot of research.
3. Interpret this research honestly instead of affirmation of previous opinions.
4. Involve customers in the innovation process through something called democratic product
design.

What is the new product development process?

1. Opportunity identification: Market definition, initial idea generation and initial STP,
Concept testing.
2. Design: Engineering of product, Fine-tune STP. Sales Forecast and create Marketing mix.
3. Testing: Advertising and product testing. Pre-test and pre-launch forecasting. Pre-test
marketing
4. Introduction: Launch planning, tracking the launch.
5. Life Cycle Management: Market response analysis, competitive monitoring & defense.
Innovation at maturity extension.

What are different types of product/concept testing?

1. Assessing consumer's responses, can be very ineffective as people are good at making up
rationalizations for things they know nothing about (same product experiment at the mall).
2. Conjoint analysis, This does not give consumers several attributes to rate about a product
but rather has them pick whichever one they would prefer.
3. Innovative methods, Nowadays there EEG and fMRI are used to look at consumer's brains
to see how they react to a certain product.

What are the different product components?

A product consists of many parts, a firm should understand which parts it should amplify:
1. Core product: This is the part of the product that provides the primary benefit.
2. Augmented product: These exist of anticipated benefits. This goes beyond the physical
product to the psychological benefits such as the experience of buying the product or the
experience of service etc.

What is the purpose for brands?

Brands influence especially the augmented product as it influences the anticipated benefits.
Especially for products of which consumers are not sure if they want to purchase. Brand names can
be placed in 3 categories. Based on:
1. Semantics: General meaning of the word.
2. Phonetics: The sound of the word.
3. Brand-specific meaning: Via communiction of brand-experience.

What is the purpose of brands for companies?

1. Recognition: A brand helps people recognize what it means.
2. Loyalty: When people recognize the brand and the brand adds other products people are
more willing to purchase these new products as well.
3. Helps company with the decisions of what to introduce in the future.
4. Helps with differentiation (especially with low cost and premium strategy).

What is the purpose of brands for buyers?

 1. Easier to search for products.
2. Quality customer can anticipate to receive.
3. Status can be gained from purchasing specific brands.
4. People feel good about being connected to a brand.

How do we measure brand value?

Brand value can be measured using the brand value formulary method. Brand value is seen as a
function of annual net after tax profits. It tries to compare what these would be if the product was
unbranded vs branded. The difference between the two can be seen as tbe added value of the brand.

How can we brand a portfolio of products?

There are two ways we can do this.
1. Brand extensions: An introduction of a new line of products in cooperation with the
established brands. What needs to be ensures that it complements the main companies
brand. E.g. Illy coffee selling coffee machines.
2. Co-branding: When combining new product with the brand from a different company. E.g.
BMW and Louis Vuitton working together. Also need to complement each other else there
is not a lot of added value.

Key takeaway Case elBulli:

Brand extensions need to be aligned with core value proposition (as discussed above) needs to
complement the primary/first product line.

What are channels? What are their functions?

Distribution is the most important P. A channel of distribution or a marketing channel is a set in
interdependent organizations involved in the process of making a product or service available for
use or consumption.
Channels can:
1. Give information, tell customer how to use the product.
2. Promotion and demand generation (push the product to consumers).
3. Provide service
4. Customize the augmented product.
5. Negotiate.
6. Order.
7. Financing
8. Reduce risk for manufacturer.
9. Hold inventory.
10. Transport.
11. Obtain payments.
12. Give a title.

Why is distribution important?

Distribution (place) is the most important part of the 4p’s. It increases sales more than advertising if
you can get your product in the right places. It reinforces all other P’s but if distribution is not done
properly, the company will have a very difficult time.

Why use intermediaries?

They create economies of effort, by offering lower transaction costs for manufacturers and
customers.
1. Inadequate finances for selling function (build stores, operate stores etc.)
2. Better rate of return on core business (no need to build stores, operate stores etc.)
3. Contact efficiency, intermediary has contact with consumers for distributor. Direct
 communication with the consumer is needed however when the company has a very
specialized product.
4. Functions like assortment are almost impossible to provide yourself (attract customers to a
store).

What are the 4 steps in channel design?

1. Find out what customers in target market want and need. Different segments need different
channel approach.
2. Benchmark channel capabilities. Can you provide a channel experience to the customer
similar or better as/than your competitors?
3. Design channel options.
4. Evaluate and compare alternatives.

Channel benchmarking (check summary for overview).

What are the roles of channel members and their function?

1. Direct sales force, this is your inhouse sales staff.
2. Distributor take away the hassle from the producer so he can focus only on producing the
product.
3. Agent (in-house), they are kept inhouse because company wants to ensure loyalty. Is the
manufacturer’s representative.
4. Brokers: To purchase or sell something by someone who has knowledge how to do so (real-
estate agent).
5. Retailers/dealers: They take the actual deed from the manufacturer so they sell on their own
account. Compared to a distributor who only distributes the products.

What is push vs. pull strategy?

Push strategy entails pushing a product downstream to the consumer through the means of agents to
have intermediaries promote and sell the product to the end users. Manufacturers are trying to
stimulate demand. A pull strategy is different, it used advertising and promotion geared to consumer
to entice them to go to the intermediaries and demand the product.

What is channel integration?

Channel integration allows consumer to buy product on-line and pick it up or return it in a brick &
mortar store. Customers want these channels to be integrated for an immersive shopping
experience.

Channel conflict?
1. Vertical conflict: between manufacturer and distributor.
2. Horizontal conflict: between competitors in the same channel.
3. Multichannel: A conflict between different channels.

Key take-aways Hein Everts guest lecture.

A lot of research is done about consumer's behavior. For example which route do they take etc. This
data is then used to place products at particular points in the supermarket. Customers:
1. Scan (look at the shelf)
2. Spot (see the product)
3. Show interest (reach for the product)
4. Select (pick the product)

Why is effective pricing so important?

When people don't know a brand they often purchase based on price (the price is quite high so I
know I am buying a premium product). Price is therefore an indication of quality. Also can pricing
be a very effective way to increase profits, more effective than increasing sales as increasing price
actually increases the profit margin.

What is economics vs. marketing approach to pricing?

Economist look at pricing in the short-term, people are rational who demand a product at a certain
price. If the price increase above the willingness to pay they will not demand. Marketing looks at
pricing differently and thinks they can change or re-shape the demand curve. They have a long-term
perspective eg. Running a loss to establish good brand in the long term. And secondly they don't
believe people are truly rational and that consumers make decisions based on incomplete
information and heuristics.

What is a customer-oriented view of pricing (value pricing)? And how do I increase it?
Perceived value = perceived quality – price – time +- psychological factors of purchasing.
Basically perceived value goes up if you increase attributes that are most important to the target
market. This does not necessarily mean a reduction of price but can also mean decreasing
transaction costs, increasing psychological benefits of purchasing. What attributes do my customers
care most about?

What is pain of paying?

The pain of paying is one of the psychological factors that influence how a customer perceives the
value of the product.
1. Tightwads: they find paying painful and want to avoid it.
2. Spendthrifts: They like spending money and get a thrill when they do so.
Spending cash or paying with card also makes a difference in how people feel. Time of payment
also influence the way people feel (advanced or on the spot).

How does communication of price impact psychological perception of price?

1. Comparisons effect: Comparing a product with another one and highlighting the advantages
of your product and highlighting the disadvantages of the other product. This influenced the
perceived benefits of your product an the willingness to pay a higher price for your product.
2. Base price effects: People will be willing to go to another store based on percentage change
of discount on base price. If this percentage is large they likely go to another store, if this
percentage is small they might not find it worth the hassle (eg. 5 dollars of a product of 20
dollars or 5 dollar of a product of 120 dollars).
3. People get psychological benefits from getting a good bargain on a product, this has to do
with social comparison. A company has got to take in mind though that the reverse can also
happen, when people buy a product at full price and find out they could have bought it a lot
cheaper somewhere else they might feel betrayed.
4. STP should be driven by perceived value but also should take in mind what something ought
to cost. Consumers have thoughts about what something should cost at what places this
should be taken into account.

Key take-aways Altius Golf Case:

1. Instead of cutting prices companies should find other ways to give customers what they
want in ways better than the competition. Lowering price does not guarantee more sales and
can hurt future profitability of brand.
2. A fighter brand could be a good possibility however it needs to be differentiated from
premium brand!
3. The premium brand needs to be protected so that brand equity is not eroded (brand equity is
very important!)
What is the difference between short-term promotion tools and long-term promotion tools?
Products that are mostly undifferentiated and are produced with economies of scale. The inventories
need to be emptied and people need to buy left over stock so companies use sales promotions.
Long-term promotional tools focus on building brand value rather than just increasing short-term
sales.

What are some pitfalls and potential solutions to sales promotions?

Sales promotions uses a concept called price discrimination to have price sensitive people purchase
your product who would previously not do so because the price was too high.
Some pitfalls of sales promotions:
1. Operational inefficiency, a sudden massive spike in sales could lead to strains at the
bottlenecks and degrade service both for people who buy on promotion but especially loyal
customers that now have to deal with lower service. Can be bad for brand equity.
2. Very high break even, having a lower or discounted price means you need to sell way more
products to break even, especially with high fixed costs.
3. It only limitedly increases short-term sales, in some cases it really doesn't even increase
overall sales. This has to do with the fact there are just people who are loyal to another
brand but just switch temporarily, a pre-promotion dip, people put of buying your product
until you launch another promotion (you sell less products for premium price). And after-
promotion dip, people have stocked up on your product and don't need to buy it for a while.
4. It trains your customers to be short term buyers and buy your product based on price and not
on value. This is very bad for customer loyalty and building brand equity.
5. Consumer might judge your product to be of lower quality (price has influence on perceived
quality)
6. Abuse by trade, through some smart operational plays, intermediaries will purchase your
product on discount and then sell part of these products in a different geographical market
for premium price leaving them with a higher operating margin.

What are some potential solutions to these problems?

1. Make sure tools matches a specific goal (use sales promotion when there is inventory that
needs to be relieved).
2. Move from price promotion altogether to enhanced value promtion. Increase the value of
your product to increase sales, do not decrease price.
3. Focus on profitability instead of sales.
4. Change manager incentives to include brand building and long-term profit not just short-
term sales.
5. Change forms of trade promotion.

Stages of buying process, how can you influence consumers at each stage?
1. Awareness: People should know the product exists and where to buy it.
2. Consideration: they need to consider buying your product.
3. Preference: choose preffered product (hopefully yours)
4. Purchase: actually buy the product/
5. Loyalty: keep buying the product/same brand
6. Advocacy: tell others about their good experience.

What is the objective of marketing communication?

To inform, persuade and remind customers about a product. This could be directly or indirectly.
“Seduce Customers”. What is the objective? What is the target? Where is the best place to reach the
target? How can we best reach the target? These are all questions that need to be answered and need
to be aligned for marketing communication to be effective.
What are different ways to set your budget?
You can set your budget in a way you see advertising as an expense:
1. as much as possible.
2. percentages of sales.
3. mimicking competitors.
However you can also see advertising as an investment but then it needs to have some specific
goals. This makes the marketing goals more clear.
1. Objective
2. Task to achieve these objectives
3. Estimating costs of task
4. Sum of costs = communication budget.

What media strategy do I use?

You need to use your media wisely. Look at the target segment to see what media they use. Are you
going to use television to do promotions for teenagers? No probably pick something like facebook,
or youtube etc.

What should be my creative strategy?

There are two ways, either a rational appeal or an emotional appeal. It is important to note that
beforehand peope are going to be sceptic about advertisements. It is therefore important to establish
credibility. Therefore your advertisement should have an credible claim made by a credible model
(not a bald guy claiming that this hairdryer is the best). How can you establish credibility?
1. By using an expert.
2. By claiming a thrustworthy sources. Based on: Similarity, physical attractiveness, and
celebrities.
3. Evidence also works (febreeze social experiment).

Should advertising avoid humor?

There are pro's and cons for using humor.
Pros:
1. Gets attention
2. Many people can relate to humor
3. Humanizes advertiser
4. May distract from counter arguments
Cons
1. Reduces credibility
2. Risky, not everybody has same sense of humor
3. wear out (after a while people get sick of the joke)
4. risk of message getting lost.
Therefore there should be multiple executions so people don't get sick of the joke. The user should
never be the brunt of the joke. And make sure the message doesn't get lost.

Should advertising contain fear?

It can but
1. Needs to show a way out.
2. Use credible sources.
3. Moderate fear may work, too strong not.

Should advertising contain sex?

This is not the magic formula because:
1. It raises attention but distracts from the message.
2. Different perception for both males and females.
3. Only effective when alligned properly with target market and positioning.