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Lecture

ADMS 3220 Lecture Notes - Customer Relationship Management


Department
Administrative Studies
Course Code
ADMS 3220
Professor
Ian Gordon

Page:
of 4
NO CLASS OCT 31
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 Ads: (Awareness)
- Day after Recall (DAR) tests Ask random samples of households. “Which brands did you see
last night?”
- Recognition tests When cant remember any more ads, ask “Do you remember seeing X ad?
Affective Ads: (image and preference)
Behavioural Ads:
MODELS TO REMEMBER FROM TODAYS CLASS:
- RIP MODEL REMIND, INFORM, PERSUADE.
- AIDA MODEL ATTENTION, INTEREST, DESIRE, ACTION.
MIDTERM: (70 MINS LONG)
- 58 MCQ’S.
- CHPTS 1-8, 14, 17 and all cases upto and including Week 5. Metabical will be included.
- CASE QUESTIONS WORTH 5 MARKS. (7 questions)
- Exam out of 85 marks
- EXAMPLE OF QUESTION:
Marketers try to find out what _____ want and they try to figure out how to provide it.
- Questions about 5 C’s, STP.
- Different kinds of purchases.
- Demographic/Segmentation
- Perceptual Map
- Calculation on how to determine market size (in book)
- USP
- Umbrella branding examples (Honda, blah blah in book). Read through those.
- Brand extensions examples (Read through those)
- RFM model
- CRM definition (customer relationship management)
- Michal Porter 3 generic strategies. 3 basic Corporate strategies of wirsima and treecy.
- Case questions What was main issue affecting the company? Recommendations? Options
(These sort of questions)
- METABICAL Company is assessing 3 options. Which of these is not one of their options?