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ADMS 3220 (13)


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Administrative Studies
ADMS 3220
Ian Gordon

CLASS 1: Types of products: 1. Convenience – Available with ease 2. Shopping 3. Speciality Each associated with different distribution. Convenience – available everywhere (intensive distribution) Shopping – Somewhat selective in distribution strategy (selective distribution) Speciality – Available at certain places (exclusive distribution) Now all can be under intensive due to e-commerce. CLASS 3: POSITIONING: If your company comes into the top 7 options a consumer then you will do well. So if you have low share of market but high share of mind (come into consumers top options) then all you need to do is maybe increase number of outlets. Share of spend also comes into consideration – How much your competitor is spending. Positioning has a lot to do with perception but also includes real factors. Positioning should be consistent with the rest of the marketing mix. Positioning Statement should consider: - Target market - USP (If there isn’t a real USP then you want to create a perceived USP) - Should be succinct CLASS 6: Advertising: Why advertise? - To create awareness/attention - To inform consumers of products - To persuade people – create differentiation of your good from others - To increase sales 3 TYPES OF ADVERTISING: 1. Informative 2. Persuasive 3. Reminder Company should establish advertising objectives. 4 STEP MODEL: 1. Create awareness/attention of your brand 2. Get interest of consumer in making the purchase decision 3. Secure desire of consumer. (Ensure that consumer desires the product) 4. Make sure consumer goes through with the action of buying Attention and interest create cognition: Increase awareness and knowledge of the brand. Desire creates affect: Action creates Measure advertising effectiveness: - Sales - Profitability objectives Implicit bargaining. Explicit bargaining – Ex: Go on internet and see advert which says 25% off on aldo shoes. Aldo will be paying money to the site for that advert on their website. ADVERTISING AND PRODUCT LIFE CYCLE: Introduction – Awareness and information Growth - Enhance positive attitudes Maturity - remind consumers Decline - Reduction in ad spending Cognitive ad - Engage the consumer’s brain. 1. One sided: Expresses product’s benefits. Ex – The fastest smartphone 2. Two sided: Express pros and cons. Usually stand out more and are considered more objective. Ex - Ads for pharmaceuticals usually state the benefits as well as side effects. Drama ad – A problem is depicted and the brand is featured as the solution. More memorable than listing of features. Humor ad Fear ad – Use negative emotions. For a fear appeal to be effective the ad should provide a solution to reduce the fear. Subliminal ad – Shown fast enough that viewers cannot point to the ad. Thought to affect the subconscious. Image ad – Are more abstract; used to convey an image. Great for positioning. Endorsement ad – Have a brand spokesperson. Ex – celebrities, experts, etc. EVALUATING ADVERTISING: Cognitive
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