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Midterm Exam Reviewer - Advertising

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Midterm Exam Reviewer - Advertising

Uploaded by

gerrymelramreyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MIDTERM EXAM REVIEWER approach rather than the higher-cost

BMM 3133 – ADVERTISING approach.


-------------------------------------------------------  Non-Personal Presentation:
------- Salesmanship is personal selling
whereas advertising is non-personal in
TOPIC 1 – INTRODUCTION TO character. Advertising is not meant for
ADVERTISING anyone individual but for all. There is
absence of personal appeal in
Introduction advertising.
 Used for communicating business  Identified Sponsor: A sponsor may be
information to customers. an individual or a firm who pays for
 Provides information about the the advertisement. The name of
advertising firm, its product qualities, reputed company may increase sale or
place of availability of its products, products.
etc.  Consumer choice: Advertising
 Advertisement supplements personal facilitates consumer choice. It enables
selling to a great extent. consumers to purchase goods as per
their budget requirement and choice.
Definition of Advertising Right choice make consumer happy
 "Any paid form of non-personal and satisfied.
presentation of ideas, goods and  Element of Marking Mix and creativity:
services by an identified sponsor" Advertising has proved to be of great
American Marketing Association. utility to sell goods and services. When
 According to Webster, "Advertising is the message of the advertiser
to give public notice or to announce matches the expectations of
publicity". consumers, such creativity makes way
 According to Gardner, "Advertising is for successful campaign.
the means of mass selling that has
grown up parallel with and has been Objectives of Advertising
made necessary to mass production".  To introduce a new product by creating
interest for it among the prospective
Features of Advertising Communication customers.
Advertising is means of mass communication  To support personal selling program.
reaching the masses. It is a non-personal To reach people inaccessible to
communication because it is addressed to salesman.
masses.  To enter a new market or attract a new
 Information: Advertising informs the group of customers.
buyers about the benefits they would  To light competition in the market and
get when they purchase a particular to increase the sales.
product.  To enhance the goodwill of the
 Persuasion: The advertiser expects to enterprise by promising better quality
create a favorable attitude which will products and services.
lead to favorable actions.  To improve dealer relations.
 Profit Maximization: True advertising  To warn the public against imitation of
does not attempt at maximizing profits an enterprise's products.
by increasing the cost but by
promoting the sales. This way it won't Importance of Advertising
lead to increase the price of the  Promotion of Sales: It promotes the
product. Thus, it has a higher sales sale of goods and services by
informing and persuading the people  Target audience: It refers to the
to buy them. recipient of the advertising message.
 Introduction of New Product: Advertising desire to cover this target
Advertising enables quick publicity in audience for promoting sales.
the market. A new enterprise can't  Advertising Agencies: An advertising
make an impact on the prospective agency is composed of creative
customers without the help of people, who conceive design, develop
advertising. and produce, advertising message
 Creation of Good Public Image: with creative ideas and place it in the
Advertising enables a business firm to desired advertising media, for and on
communicate its achievements to behalf of its client (the advertiser).
satisfy the customers' needs. This  Advertising Production People
increases the goodwill and reputation (Artists): Artists like copywriters,
of the firm which is necessary to fight artists, photographers, typographers,
against competition in the market. layout designers, editors and other
 Mass Production: Advertising creative people are usually employed
facilitates large-scale production. Mass by the ad agencies, or their services
production reduces the cost of may be hired by the ad agencies on
production per unit by the economical job basis to help them produce
use of various factors of production. impressive and persuasive
 Research: Advertising has become a advertisements.
competitive marketing activity. Every  Mass media: Advertising messages
firm tries to differentiate its product are communicated to the target
from the substitutes available in the audience through different mass
market through advertising. This media, such as print media, electronic
compels every business firm to do media, outdoor media and direct mail
more and more research to find new like brochures, pamphlets, leaflets
products and their new uses. If a firm etc.
does not engage in research and  Government Authorities: The business
development activities, it will be out of of advertising is regulated by the
the market soon. government department. The
 Education of People: Advertising government adopts law and regulation
educate the people about new which have a direct or an indirect
products and their uses. Advertising bearing on the advertising.
message about the utility of a product -------------------------------------------------------
enables the people to widen their -------
knowledge.
TOPIC 2 – THE AD PYRAMID
Active Participant in Advertising
 Advertiser: Seller who manufacture Introduction
and market consumer products are the The ad pyramid is a marketing strategy that
prominent group of advertisers, helps businesses create effective advertising
retailers being the second prominent campaigns that reach their target audience
segment among advertisers, stock the and drive sales.
products and sell them to the ultimate
consumers. Government and social Awareness. Interest. Desire and Action.
organization are also the active
participant in this category. By understanding how each level of the
pyramid works, businesses can create ads
that are more effective at reaching and
engaging potential customers.

The Ad Pyramid
It is a marketing concept that outlines the
different stages of the customer journey,
from initial awareness to final conversion.

Awareness. Interest. Desire and Action.

Each level of the pyramid requires a different -------------------------------------------------------


approach to advertising. By understanding -------
the ad pyramid and tailoring your advertising
approach to each level, you can effectively TOPIC 3 – ROLES OF ADVERTISING TO
guide customers through the customer SOCIETY
journey and increase conversions.
Persuasive Advertising
 A form of digital advertising that
leverages the interests, desires, and
motivations of your audiences to
convince them to make a purchase
decision with your brand.
 Persuasion may take the form of
helpful guidance and advice by
interested friends. The more usual
form of persuasion though is that of
commercial advertising by producers
who have goods or services to sell

How Advertising affects Society


 The impact of advertising on society is
vast and has been the subject of much
debate.
 There are several ways in which
advertising affects society, both
positively and negatively.

Positive Side
The role of advertising that can be used to
raise awareness of important issues, such as
social causes or public health campaigns.
It can also be used to promote products and
services that may improve people’s lives.

Negative Side
Advertising can be used to exploit people’s
fears or vulnerabilities, and it can be used to
sell products that are harmful to people’s
health or well- being.
TOPIC 4 – THE AD PENTAGON
Advertising plays strong role in (MARKETING PENTAGON)
Economy:
It provides useful information to consumers Marketing Pentagon
that tells them about product and service Is a powerful tool for businesses to develop
choices, as well as comparing features, and implement an effective marketing
benefits, and prices. With more complete strategy.
information, consumers and businesses often
choose to purchase additional products and
services.
It “causes an economic chain reaction that :
a) generates a net gain in direct sales
and jobs due to the promotion of the
industries’ products and services,
b) generates indirect sales and jobs
among the first level suppliers to the
industries that incur the advertising
expenditures, and
c) (generates indirect sales and jobs
among all other levels of economic Digital
activity as the sales ripple throughout  Having extensive knowledge of how
the economy.” social media, search engines, websites
and online advertisements can
Importance of Advertising to Society generate sales leads , increase traffic
 Role of advertising in society is a to a business and build brand
critical component of any society as it awareness.
allows businesses to generate revenue
which, in turn, fuels economic growth. Four Best Digital Advertising Examples
 Advertising also allows businesses to 1. Search Engine Marketing
reach new customers and promote 2. Display Advertising
their products or services. Additionally, 3. Social Media Ads
advertising helps to create jobs and 4. Email Marketing
support local economies.
 Without advertising and society, Social
businesses would struggle to generate  Process that applies marketing
revenue and grow. This would principles and techniques to create,
ultimately lead to fewer jobs and a communicate and deliver value to
weaker economy. influence target audience behaviors
that benefit society (public health,
Examples of Bad Advertising safety, the environment, and
1. Pepsi ft Kendall Jenner, “Live For Now” communities) as well as the target
2. Burger King, “Women belong in the audience.
kitchen”
3. McDonald’s, “I’d Hit It” Sustainable
4. Coca-Cola, “New Coke”  Process of creating, communicating
5. 10. KFC, “Mouthful” and delivering value to customers in
------------------------------------------------------- such a way that both natural
------- (resources nature provides) and
human (resources people provide)
capital are preserved or enhanced  Post-testing occurs after an ad has
throughout. run; the process is used to determine
if the ad has influenced the audience.
Creative Testing is conducted via feedback from
 Is the generation and execution of consumers in the form of responses to
communicating unique messages in an questionnaires, short surveys, or recall
inventive way. tests.

Experimental Advertising Research is not the same as


 Consists of research based on a Market Research
hypothesis of what kinds of marketing However, they can be complementary.
activities will appeal to potential Market research blends insights into
customers, then collecting and consumer behavior, market dynamics, and
analyzing the resulting data to see if economic trends using relevant data
the marketing activity was successful. gathered from various sources to provide a
------------------------------------------------------- reliable method for companies to prove a
------- concept for or improve a product or service.

TOPIC 5 – THE ROLE OF RESEARCH IN Scope of Advertising Research


ADVERTISING PLANNING  Increase awareness - Advertising's
purpose is to make the customer
Why is Advertising Research Important? aware of the company and its
Advertising research validates your ad products.
strategy or identifies shortcomings by testing  Provide result - Evaluation of
ad campaigns with a sample of your target advertising refers to the activity of
audience. comparing the actual results of
it Identify which ads are most likely to advertising to the established
resonate with your audience and which may standard to know the real value of the
negatively impact your efforts. advertising performance.
Advertising research won’t just optimise your  provide feedback - Advertising does
ad strategy but also increase conversions not end after execution company has
and grow your business. to check that they got the desired
result or not. It is an attempt to
How does advertising research work? measure that the investment in
The simplest approach to conducting market creating the advertising has resulted
research is also usually the most expensive: in attaining the goals and provide
outsourcing the process to an advertising satisfaction to the consumers.
research firm. The advantages of engaging  analyzes changing market - if a
an outside specialist are independence and company want to grow in the long run
objectivity, access to more resources, and the company needs to know their
unbiased results. customer. Customer attitude also
changes with the change in the market
Types of Advertising Research or environment, because new and
 Pre-testing - focuses on the ad innovative products are launched by
concept, the campaign theme, and the the companies on a daily basis.
actual copy. Once all three tests are
conducted, an ad can be finalized and It Helps You
placed.  Understand your target audience
 Select the best places to advertise
 Build more effective ads  Setting Objectives – Define goals
 Make your advertising budget go (awareness, conversions, etc.).
further  Media Selection – Choose the right
 Increase sales conversions and build media platforms.
your business  Budgeting – Allocate spending across
------------------------------------------------------- media channels.
-------  Scheduling – Determine when ads will
run.
 Execution – Implement the media plan.

TOPIC 7 – MEDIA STRATEGY AND Steps in Media Planning


PLANNING 1. Conducting situation analysis: It
involves defining the marketing
What is Media Strategy? problem and conducting SWOT
Media strategy is the process of determining analysis of the company as well as the
how to best allocate your media budget competitors.
across different channels to reach your 2. Formulating a marketing strategy:
target audience. studying the internal and external
It involves selecting the right media factors affecting media plan.
platforms and timing to achieve marketing conducting target market
objectives. segmentation. making marketing mix
decisions
Key Components of Media Strategy 3. Formulating an advertising strategy: it
 Target Audience involves determining the behavior and
o Who are you trying to reach? attitude of target audience and taking
o Demographics, consumers decisions regarding:
behavior, interests.  the product information to be
 Media Channels communicated
o TV, Radio, Social Media, Print,  product positioning
Online Ads, etc.  media to be used
 Timing  ad copy, advertising message and
o When is the best time to reach advertising appeal
your audience? 4. Setting Media Objectives: This step
 Budget Allocation involves setting media objectives in
o How to allocate your budget terms of coverage reach and
across channels effectively. frequency of advertisements.
5. Determining media strategy: it
What is Media Planning? involves the task of selecting the best
Media planning is the process of selecting, alternative or strategy to effectively
scheduling, and buying media space and achieve the advertising objective and
time. setting guidelines for media.
It ensures that the media strategy is 6. Selection of media: it involves
executed effectively, with the right messages comparison and selection of media.
reaching the right audience at the right time. the media selected may be broadcast
media, print media, outdoor media or
Steps in Media Planning support media or a combination of
 Research – Understanding the market these mediums.
and audience.
Types of Media Channels
1. Traditional Media Advantage - Motivates customers to avail
 TV, Radio, Newspapers, Magazines. seasonal benefits. The decisions on
2. Digital Media scheduling strategy are based on:
 Social Media, Websites, Search Ads, • Brand awareness
Email Marketing. • Buying cycles
3. Out-of-home (OOH) • Available budget
 Billboards, Transit Ads.
4. Direct Mail Importance of Data in Media Strategy
 Personalized mailing campaigns.  Data helps in:
o Understanding audience
Scheduling preferences
It is concerned with timing in inserting of o Tracking campaign performance
advertisements in the selected media. There o Optimizing media spend for
are three approaches to scheduling: better ROI
 continuity -------------------------------------------------------
 flighting -------
 pulsing
TOPIC 8 – THE ADVERTISER’S
Continuity MARKETING AND ADVERTISING
It refers to a continuous pattern of OPERATIONS
advertising, which may be daily, weekly or
monthly. It is used when product recall is Advertiser's Marketing
elicited easily with an advertising message An advertiser is the entity on the buying side
and delayed at non-exposure. of the mobile marketing ecosystem. In the
It is suitable for product categories context of mobile advertising, the advertiser
consumed on regular basis without being is often an app or brand looking to spread a
affected by seasonal fluctuations. specific message about their product (for
Advantages - Acts as a constant reminder, example, new user acquisition and
Covers entire buying cycle, Allows for retargeting campaigns).
discounts Role of Advertisers in the Marketing
Disadvantages - High costs, Possibility of  Promotion and Communication:
over exposure Advertisers are responsible for
promoting products, services, or
Flighting messages to target audiences.
It is a less regular schedule of ad message.  Brand Awareness: Advertisers help
There are periods of advertising and a more build and strengthen brand
than one advertisements. Advertisements awareness.
are run to influence the purchase cycle. It is  Customer Engagement: Advertisers
suitable for consumer products both durable aim to engage and interact with
and non-durable. customers.
 Market Research: Advertisers often
Pulsing conduct market research to
It is the combination of the above two understand consumer preferences,
approaches. Continuity is maintained but behaviors, and trends.
stepped up during certain periods and  Product Launch and Promotion:
different advertisements are run to influence When a new product or service is
purchases during different life cycle stages of introduced, advertisers play a vital
the product. role in creating excitement and
interest around the launch.
 Sales Generation: Advertisers aim  Message development: Once you
to drive sales and revenue for the understand your audience, develop a
brand. compelling message that resonates
 Message Crafting: Crafting the right with their needs, desires, and pain
message is crucial in advertising. points. Your message should clearly
 Media Planning and Buying: convey what your product or service
Advertisers are responsible for offers.
selecting the most appropriate  Media selection: There are numerous
media channels to reach their media channels to choose from,
target audience. including digital (social
 Creativity and Design: Advertisers media, websites, email), traditional
often collaborate with creative (TV, radio, print), and out-of home
teams to design visually appealing (billboards, transit ads).
and engaging ads.
 Measurement and Optimization: Advertising Budgeting
Advertisers use metrics and Is a critical step in the overall marketing and
analytics to measure the advertising planning process. It involves
effectiveness of determining how much money your business
advertising campaigns. is willing and able to allocate for advertising
efforts.
Common Advertising Objectives
 Brand awareness: refers to the Advertising Creative Process
familiarity of consumers with a  Idea generation: is the initial phase
particular product or service. where creative concepts and
 Lead generation: is the process of campaign ideas are brainstormed. It's
capturing and cultivating potential about identifying the core message or
customer information, such as names, theme that will resonate with the
email addresses, or phone numbers, target audience.
with the intent of converting them into  Concept development: is the stage
paying customers. where selected ideas are refined and
 Sales promotion: is a marketing developed into coherent concepts for
strategy that aims to stimulate short- the advertising campaign.
term increases in sales or consumer  Creative execution: is the final step
demand for a product or service. where the selected concept is
 Customer retention: refers to the transformed into actual advertising
strategies and efforts businesses materials, such as ads, videos, or
undertake to keep existing customers visuals.
engaged, satisfied, and loyal over an
extended version. Media Planning and Buying
Advertising Strategy Media planning and buying are essential
 Target audience: identification components of advertising operations that
Identifying the target audience play a pivotal role in the success of
involves determining who your advertising campaigns.
ideal customers are. This includes Media planning and buying are crucial
demographics (age, gender, location), because they ensure that your advertising
psychographics (values, interests, efforts are strategic, efficient, and effective.
lifestyle), and behavior (purchase They help you reach your target audience
history, online behavior). with the right message through the most
appropriate channels while optimizing your  Above the Fold: Achieving above-the-
budget allocation. fold ad placement (visible without
scrolling) is crucial for visibility, but it
Ad Campaign Execution may come at a premium.
 Ad production: Encompasses several Ad Blockers
critical steps; Creative development,  Ad Blocker Usage: The increasing
Storyboarding, Graphic designers and adoption of ad blockers by users can
copywriters, Various ad formats and significantly reduce ad impressions
Quality assurance and disrupt ad delivery. User
 Media placement: Encompasses  Experience: Advertisers must find
several steps; Media Selection, ways to create ads that align with user
Negotiation and Booking, Ad Formats preferences and avoid intrusive
and Specifications, Media Buying and formats that prompt ad blocking.
Tracking and Reporting Changing Consumer Behaviors
 Campaign launch: Campaign launch  Multiscreen Usage: Consumers
requires meticulous coordination, frequently switch between devices,
Launch Date, Monitoring, making it challenging to track user
Optimization, Communication and journeys and optimize cross device
Campaign Duration advertising.
 Ad Fatigue: Overexposure to ads can
Advertising Metrics and Evaluation lead to ad fatigue, causing consumers
Key Performance Indicators (KPIs) are to ignore or actively avoid ads.
essential metrics used to measure the  Ad Personalization: Balancing
effectiveness of advertising campaigns. They personalization with privacy concerns
provide valuable insights into how well an ad is a constant challenge.
campaign is performing and whether it's -------------------------------------------------------
achieving its objectives. -------

Challenges in Advertising Operations TOPIC 9 – THE WORLD OF MEDIA: AN


Ad Fraud OVERVIEW
 Bot Traffic: Advertisers often contend
with fraudulent bot traffic that Media History
generates fake impressions and clicks, Media history refers to the historical
leading to wasted ad spend. dimension of communicating information,
 Click Fraud: Competitors or malicious knowledge, and values to a broad audience.
actors may engage in click fraud, It encompasses the study of various media
artificially inflating click-through structures and their impact on societies, as
rates. well as the dynamics of historical change in
 Ad Impersonation: Advertisers face these structures over time.
challenges from websites that
impersonate legitimate publishers, Media Strategy
tricking advertisers into buying A media strategy is a dynamic action plan for
fraudulent inventory. reaching your audience and boosting
Ad Viewability conversion rates by leveraging various media
 Viewability Metrics: Ensuring that ads types to distribute content and deliver your
are actually seen by users can be brand message.
challenging. Ad viewability metrics
help advertisers understand how often Media Selection
their ads are in view and for how long.
Media selection refers to the process of  Fundamentally, it allows you to
choosing the best channels to distribute an address the questions key to sales
advertising message to the intended target conversion: what problem or issue
audience. It's an essential step in media does the product solve for customers?
planning, ensuring marketing efforts Why is your product the best one to
effectively reach potential customers. solve it?
 The digital marketing mix is perfect for
Three Types of Media showcasing your products, through
 Print Media SEO, blogs or articles, paid
 Broadcast Media advertising, influencer marketing, and
 Internet Media viral video campaigns, for example.
Price
Role of Content in Advertising  The strategy behind the pricing of your
A marketing strategy used to attract, product needs to be based on what
engage, and retain an audience by creating your customers are prepared to pay,
and sharing relevant articles, videos, costs such as retail mark-up and
podcasts, and other media. This approach manufacturing, as well as other
establishes expertise, promotes brand considerations.
awareness, and keeps your business top of  Your marketing mix can include
mind when it's time to buy what you sell. subscription and membership
discounting programs, or email
Six Advertising Challenges Brands Could marketing of promotions and sales.
Face
 Reaching the right targeted audience Promotion
 Allocating enough budget  Successful marketing strategies
 Scalability include all the promotional activities
 Competition across the marketing mix, including
 Relying on one marketing channel advertising, direct marketing, and in-
 Downplaying the power of emotions store promotional activities.
-------------------------------------------------------  The possibilities of digital promotion
------- are limited only by your imagination
and can include online events, chats,
TOPIC 10 – SEVEN BASIC STRATEGY social media groups, and livestreams.
Place
Seven Basic Strategy  Where and how your product is
1. Determine your goals displayed and sold should be directly
2. Find your target audience informed by your customers.
3. Consider how your brand is viewed  A deep understanding of their
4. Test and track your ad campaigns purchasing patterns – and targeting
5. Consider your timing them at the right stage in their buying
6. Seek out help cycle – will make it clear where you
7. Try Low-cost advertising options should promote and sell your products
and how that fits into your online and
Seven P’s of Marketing real-world marketing mix.
Product People
 It goes without saying that the service  Excellent customer service not only
or product you’re selling should be at converts to sales, but can increase
the centre of every element of the your customer base by referrals.
marketing mix. Acquiring these referrals by people
who love your brand can also be a digital placement, including on your
great example of how your marketing website and social media.
efforts can support your sales process.
 It’s important that everyone who
represents your brand or deals with
customers – including the non-human
chat bot variety! – are fully trained
sales professionals with an intimate
knowledge of your product and how it
will improve the lives or solve the
problems of your customers.
Process
 The process of delivering your product
to the consumer should be designed
for maximum efficiency and reliability,
but may also include features that are
in line with your brand, such as being
environmentally of sustainably
focused.
 With the rise in online shopping, digital
partnerships and logistics have
become an essential part of the
marketing mix.
Physical Evidence
 Physical evidence incorporates
aspects that proves your brand exists
and that a purchase took place.
 Examples of proof that your brand
exists can include things like a
physical store or office for your
business, a website if your business
operates solely online, and printed
business cards that you exchange
when meeting people. Examples of
proof of purchases can include
physical or digital receipts, invoices, or
follow-up email newsletters that you
send to customers as a retention
exercise.
 Your marketing mix must also take into
consideration all the things your
customer sees, hears – sometimes
even smells – in relation to your
product or service.
 This, of course, includes packaging
and branding, but should also bring in
the ways products are displayed in
stores, where they are placed, and the
context in which they sit, as well as

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