THE BUSINESS OF ADVERTISING

Week 7 – w/o June 17th

AGENDA
1. How does advertising work?
o NeuroMarketing
o Features/Benefits
o USP
2. Review and discuss Assignment #3 – The Pitch Part 1
3. Open Book Quiz

2
NEURO-MARKETING
• We don’t know why we buy what we buy!
NEUROSCIENCE + MARKETING = NEURO-MARKETING

 Neuroscience = the study of the brain and its impact on behaviour (what is going on deep
in the unconscious brain)
 Neuroscience fundamentals:
 Emotions (response/engagement) are the primary driver of human behaviour
 95% of all brain processing occurs in the unconscious level, including the majority
of emotions
• Neuromarketing = the study of how the brain responds to marketing stimuli in order to
understand WHY consumers make their purchase decisions
 NEUROSCIENCE + MARKETING = NEURO-MARKETING
How does neuroscience measure unconscious emotional responses?
a) Initially, limited to EEG (cap of electrodes attached to individual’s scalp)
• Shortfall – limited to fundamental emotions (anger, sorrow, excitement, lust)

b) Now, preference is for Biometric monitoring (various equipment worn by

individuals)
• Skin conductivity (perspiration)
• Respiratory response
• Heart rate
• Motion (changes in body posture)
• Eye tracking
SIX STIMULI MARKETERS USE
BASED ON NEURO-MARKETING THEORIES
1. Self-Centered: What kills a good ad is being too self-
centered about your company and features. People care more
about what you can do for them.

2. Contrast: We notice difference between things. A call to

action button in a different colour stands out. Or comparing
one product against another.

3. Tangible: Keep it simple. Use clear language

4. Emotional: Even though we like to believe our analytical

minds are on top of things, many time we’re driven by
emotions.

5. Visual: In a noisy world filled with marketing, you need

to disrupt people’s attention, and good visuals do that.

6. Beginning and End: the tendency of a person is to recall

the first and last items in a series best, and the middle items
worst. Like the beginning and end of a commercial.
ACTIVITY
Each table will be assigned a
Stimuli. They will have 10
minutes to find an ad that
incorporates the Stimuli and
present to the class.
1. SELF CENTRED
2. CONTRAST
3. TANGIBLE
4. EMOTIONAL
5. VISUAL
6. BEGINNING AND END
FEATURES & BENEFITS

Benefits
The brand promise. The perception of what the
product can do for you.
• E.g. Campbell’s soup is happy children, satisfied
mom, fun family time.

Features
• The core ingredients of a product.
• E.g. Campbell’s soup it is vegetables and
juices and seasonings.
BRAND ANALYSIS – BRAND IMAGE AND REPUTATION

Features: Getting rid of dry skin is the stated purpose, however, the
benefit might be younger looking skin, youth, etc.
• Vaseline moisturizes skin
• This is the intended purpose –
moisturizer

But Why Do They Buy It?

• What does the consumer “get”
from using your product
(outside from the intended
purpose)?
BRAND ANALYSIS – BRAND IMAGE AND REPUTATION

What Do Consumers Think of The Brand & Why Do They Buy It

Benefits

1. Emotional Benefit: “When I buy or use this brand I feel healthy and protected.”

2. Self-expressive Benefit: “When I buy or use this brand I am able to nurture my body and
family.”

3. Social Benefit: “When I buy or use this brand, the type of people I relate to are caring,
holistic and family oriented.”
FEATURES & BENEFITS
Functional Benefit: Self-expressive Benefit: Emotional Benefit:
• Product attributes that provide • Provides customers with an • Provide customer with a positive
functional benefit opportunity to express themselves. feeling when purchasing or using a
e.g. brand
e.g.
• Display of being ecofriendly by e.g.
• Crushing capability of a juicer,
owning a Tesla • Feel good about using wrinkle cream
• Waterproof function of a raincoat
• Projecting status by wearing Louis • Feel charitable when buying a Happy
Vuitton sunglasses Meal on McHappy Day when a portion
of proceeds go to Ronald McDonald
House
LET’S DISCUSS

Product Purpose? What are the What is the main

Features? Benefit?

1. Red Bull

2. Clearasil

3. Kellogg’s Special K Cereal

4. Tesla

5. Beats Headphones
UNIQUE SELLING POINT (USP)

Definition:
 An advertising campaign theme, a single brand
feature or benefit communicated in an advertising
campaign

Can you think of a product and its USP?

AVIS

We're number two.

We try harder.
DOMINOS

You get fresh, hot pizza

delivered to your door in 30
minutes or less or it's free.
 ASSIGNMNET #3:
THE PITCH “PART 1”
DUE WK 10
 GETTING STARTED ON YOUR FINAL ASSIGNMENT #3

1. GROUP SELECTION
• Get into groups of 5 or 6 members and sign up in Slate – Groups – Assignment 3

2. YOU CAN REVIEW ASSIGNMENT 3 - Part 1 and 2

• See overview, instructions, rubric in Slate – Content – Assignment 3

3. GROUP PRODUCT SELECTION

• Choose - a “new” to the market (can be a next generation improved product)
• Cannot choose - Earbuds/Headphones, phones, Apple Watch, Fitbit, TV, automotive or
computer.
PART 1: SITUATION ANALYSIS

Must includes 3 sections:

A. Brand Analysis
B. Target Analysis
C. Implications
A. BRAND ANALYSIS
1. BRAND ANALYSIS
1. Product Analysis
• Product
• Price
• Place
• Promotion
1. BRAND ANALYSIS
For the Brand Analysis and Competitor Analysis you can find and get information about the
products using resources such as:
1. Brands website
2. Google Search
3. FB and other social media
4. If you are able to go in store (Grocery, Drug Store, Big Box etc.) that would be useful
but not required.
1. PRODUCT ANALYSIS
Product:
1. What is the product used for?
2. Provide a picture of product. If there is any relevant information on the packaging provide a
picture of it.
3. Why do consumers buy it? Describe the product in terms of both features and benefits.
1. If there are ingredients or active ingredients provide an ingredient label
4. What is the USP of the product?
5. What is the attitude of consumers to your brand? What do consumers think of your brand?
• Online reviews, social media and YouTube can provide insight on consumer opinion
 BRAND ANALYSIS EXAMPLE - PRODUCT

The Fitbit is used for tracking workouts with a

comprehensive workout summary
Feature:
• Tracks
• Heart rate
• Steps taken
• Distance
• Calories burned
• Smart notification: see text notifications,
calls, control music
BRAND ANALYSIS EXAMPLE - PRODUCT
Benefit:
• Emotional Benefit: “When I buy or use this brand I feel
confident and efficient.”

• Self-expressive Benefit: “When I buy or use this brand I am

able to encourage my mind and improve body.”

• Social Benefit: “When I buy or use this brand, the type of

people I relate to are active, healthy and team oriented.”

USP:
What consumers think about the Fitbit:
“I am a cross fit athlete and need to know calories burned, sleep achieved and other necessary Synchronization with smartphone.
measurements so I can be the best I can be. Fitbit given me that at a great price and with
confidence and the ability to keep tuned in to music and messages.”

Mark Smith, Google Review

1. PRODUCT ANALYSIS
Price
• How much does it cost in store?
• How much does it cost online?
BRAND ANALYSIS EXAMPLE - PRICE
The Fitbit Flex cost $199 in store and
$114.99 online
1. PRODUCT ANALYSIS
Place (distribution):
• Where can you buy the product? (list at least 3 locations)
BRAND ANALYSIS EXAMPLE - PLACE
Place
1. Sport Chek
2. Best Buy
3. Amazon
BRAND ANALYSIS EXAMPLE - PROMOTION

Fitbit Website Promotion Fitbit Instagram

BRAND ANALYSIS
EXAMPLE -
PROMOTION
2. COMPETITIVE ANALYSIS
Second part of a Brand Analysis = Competitive Analysis
• Product
• Price
• Place For the Competitive
Analysis you take the 4
• Promotion same steps as you did for
analyzing the brand…
analyze the 4ps
3. FOCUS ON STRENGTHS & WEAKNESS
Once you have completed the competitive analysis, the next step is to highlight a few key strengths and
weaknesses of the brand vs competition

SWOT FITBIT
STRENGTH Fitbit’s key benefit is that it is focused is on
providing insight into the consumer’s fitness
experience:
• Workout summaries are consolidated
• Has reminders to inspire consumers to reach
their goal
• Built in trainers
WEAKNESS As a smartphone it lack functionality in
comparison to the Apple Watch Sport
• Music
• Audio responses
 4. ADVERTISING MESSAGE ANALYSIS
• To analyze the brands current advertising, the best approach is to review their website and
current advertising.
• Where you can look to find advertising for the brand:
• Brand’s Website
• Google Images
• YouTube
• Moat.com
• Brand’s Social Media
• Find several advertisements for the brand (print, TV/video, website):
• Discuss the headline(s) or main message
• Discuss the slogan(s)
B. TARGET ANALYSIS
TARGET AUDIENCE
• The ad Targets parents primarily
• The ad highlights things that kids
aren’t interested in but are
important to parents: Such as “no
artificial colors, flavorings, or
preservatives,” and charitable
donations.

• The ads second Target is children

• What do kids care most about?
The toy of course.
WHAT IS TARGET MARKETING?

Refers to the direction of a brand’s marketing activity to a

group of people/customers with a certain similar need and
characteristic
• All strategies, media choice and creative, are created with this
group of people in mind

Market segmentation
• Refers to dividing a large market into smaller groups (or
segments) based on common characteristics
MARKET SEGMENTATION VARIABLES

1. Demographic
2. Psychographic
3. Geographic
4. Behavioural
BENEFITS OF MARKET SEGMENTATION
1. Better matching of customer needs
2. Better understanding of competition
3. Better ROI by targeting real prospects
4. Better customer connection, resulting in customer loyalty, retention, and advocacy.
 1. DEMOGRAPHIC SEGMENTATION
Target markets are identified on any combination of:
 Age
Demographics for Nike
 Gender • Female
• 18 – 35
 Education • Single
• College – University Educated
 Income and occupation • Entry Level Managerial Job
• Canadian 2 nd Generation
Immigrant
 Marital status
 Household composition
 Ethnic background
2. PSYCHOGRAPHIC SEGMENTATION
 Psychographic information shows how an individual’s interest in a particular product based on
his or her lifestyle (AIO)
 Activities

 Interests

 Opinions

 Its consideration shows how individuals who look similar demographically, behave differently
when other factors are known. Such knowledge allows an advertiser to position a product
more effectively.
 It presents opportunities for better messages (product is communicated in accordance to
lifestyles) and more efficient media planning (media habits and media consumption patterns
are known and used to advantage when developing plans).
 2. PSYCHOGRAPHIC SEGMENTATION
 Why? Due to needs/ attitudes/ self-concept
 Benefit to marketers? Provides understanding of this segment’s consumer behaviour and leads
to compelling relevant creative and media choices
 The combination of demographic and psychographic targeting allows a company to position
its products much better. Brands in the beer and fashion industries effectively use
psychographic information to develop ad campaigns that will have an impact on their targets.
Fashion brands like Calvin Klein and Guess often show young couples in provocative poses,
for example.

The text contains several descriptions of lifestyle groups (see figure 3.9)
 PSYCHOGRAPHIC
RESEARCH – WHO IS
THE MILLENNIAL
MALE CONSUMER?
3. GEOGRAPHIC SEGMENTATION
Divides Canada (geographically expansive market) into distinct regions that can be
defined based on:
 Provincial boundaries
 Regional language and culture (e.g. Quebec)
 Urban/ suburban/ rural
 High population concentration areas (over 50% of pop’n):
 Ontario’s Golden Horseshoe
 Montreal and region
 Lower BC mainland + southern Vancouver island
 Calgary/Edmonton corridor
1. Low Sodium
2. Creole Chicken
3. Tomatoes Clam
Chowder
4. Regular Clam
Chowder
5. Cucumber Soup
Served Cold
 3. GEOGRAPHIC SEGMENTATION
Regional Differences
• Most Canadians watch TV while sitting on a couch, except on the Prairies where they sit
on a chesterfield

• Most Canadians get water from a faucet, except the Prairies where it comes from a tap

• Montrealers drink soft drinks, other Canadians drink pop

4. BEHAVIOURAL SEGMENTATION
Refers to database-driven marketing where consumers’ purchase behaviour is tracked along
with available personal information
 Requires a database management system

 Enables marketers to customize offers to the individual consumer = Customer Relationship

Marketing (CRM)
 E.g. Airmiles, Shoppers’ Drug Mart, Kobo

 Location-based targeting through GPS signals

 E.g. Groupon and Foursquare

 4. BEHAVIOURAL SEGMENTATION
1. Occasion for Use
• Different times, occasions to satisfy different needs
• Example: Baking Soda, Cereal

2. Benefits-Sought
• Different consumers satisfy different needs when purchasing a product
• Example: Toothpaste four main "benefit segments" - economic; medicinal, cosmetic or taste

3. Frequency of Use
• How often the consumer uses the product: heavy, medium, light

4. Loyalty Response
• Degree of brand loyalty held by a consumer
WHO ARE THEY TARGETING?

• Analyze these ads to determine who

they are targeting:
• Describe the demographic, and
psychographic characteristics you
think the advertiser has used to
‘attract’ the likeminded target
audience
C. IMPLICATIONS
IMPLICATIONS
Your final and critical section is to discuss the implications as this must be used to start
Part 2
• Identify a threat or opportunity that needs to be addressed in the campaign.
WORKSHOP ACTIVITY: DUE WK 9

PREP FOR ASSIGNMENT 3

TARGET PROFILE ANALYSIS

• You may work with your group and start to discuss how you would fill out the Target
Profile Analysis Chart for your product
• Chart can be found on Slate – Content – Week 7 – Target Profile Analysis Chart
• To be submitted individually in Week 9 by end of class
• Worth 2.5% (individual)
BRAND PERSONA CHART - TARGET PROFILE ANALYSIS CHART

Characteristics Brand
GEOGRAPHICS  Region
 City or census metropolitan area
 Density
DEMOGRAPHICS  Age
 Gender
 Marital status
 Income
 Occupation
 Education
 Home ownership
PSYCHOGRAPHICS  Personality traits
 Lifestyle values and approaches
 Leisure activities, hobbies, and interests
 Media habits
 Technology uses
BEHAVIOURISTICS  The main occasion for product use
 The main product benefit sought
 Primary and secondary product usage
 Frequency of use
 Frequency of purchase
 Product usage rate
 Product usage status
 Product loyalty status
BRAND PERSONA CHART - TARGET PROFILE ANALYSIS SAMPLE
Music enthusiast, Student Business Traveller

GEOGRAPHICS  Region Canadian

metropolitan
 City or census metropolitan area
 Density

DEMOGRAPHICS  Age 18 – 30
 Gender Both
 Marital status Single
 Income <$35,000
 Occupation Part-time
 Education students
 Home ownership no

PSYCHOGRAPHICS  Personality traits like music, high technological users, athlete, large media
 Lifestyle values and approaches consumers, 5 – 10 hours online per day, 3-6 hours per
 Leisure activities, hobbies, and interests week playing sports
 Media habits Value friendships,
 Technology uses

BEHAVIOURISTICS  The main occasion for product use • Working out, listening to music
 The main product benefit sought • Bass, noise cancelling
 Primary and secondary product usage • Listening to music
 Frequency of use • Second usage for online schooling
 Frequency of purchase • Every few years
 Product usage rate • High status
 Product usage status • Loyals
 Product loyalty status

54 Copyright © 2015 Pearson Canada Inc. 54

 A LOOK AHEAD…
1. Read: Textbook Pg 128
2. READING WEEK: No Classes (June 24 – June 28)
3. Week 8: Workshop (No class – work on Assignment 3)
4. Week 9: Target Profile Activity due
5. Week 10: Assignment #3 Presentations Due
• please submit prior to the start of class (w/o July 15th)
• be prompt as presentation will begin at 9am SHARP
• Students not present will not receive a presentation mark
• Groups will be randomly selected and all groups need to be present and ready to present
at the start of presentations
• No papers, phones are allowed
GET READY FOR YOUR QUIZ
15 MINUTES – OPEN BOOK

SLATE / ASSESSMENT / QUIZ