Comm 320 Exam 2 Study Guide

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Pennsylvania State University
COMM 320
Lee Ahern

COMM 320 | fall 2013 | Dr. Ahern Exam 2 Study Guide 1. Consumer behavior a. Ernest Dichter, “father of ‘motivational research’” i. Viennese/American psychologist and acolyte of Freud ii. Between the 1930s and 1960s, Dichter revolutionized marketing with the use of qualitative research methods (focus groups, word association, in- depth interviews, etc.) iii. Ways to conduct motivational research (“probing the minds” of consumers) b. Maslow’s hierarchy i. Self-actualization needs (self-development, realization) ii. Esteem needs (self-esteem, recognition) iii. Social needs (sense of belonging, love) iv. Safety needs (security, protection) v. Physiological needs (hunger, thirst) c. Maslow’s product benefit ladder i. Product attribute ii. Product feature iii. Product benefit iv. Consumer benefit v. Value d. Prospect theory as example of how people are not “rational” decision-makers e. Subliminal i. Sensory stimulation below level of perception ii. Subliminal stimuli may be used to generate a subconscious awareness of some object, but… iii. Not all subconscious mental activity is due to subliminal stimuli 1. Short flashes of images 2. High/low sounds (“dog whistles”) 3. Certain smells 4. Minute touches and tastes iv. Can be consciously perceived by the senses, but ARE NOT 1. Because our attention is elsewhere 2. Does not seem important / Not worth thinking about 3. Blocked by non-conscious filter or learned bias f. Subconscious i. Many meanings, but generally denoted “in the mind without awareness” g. Objective Evaluative Criteria i. Price ii. Warranty iii. Service h. Subjective Evaluation Criteria i. Style ii. Appearance iii. Image i. Basic operation of classical conditioning i. Unconditioned stimulus leads to unconditioned response ii. Conditioned stimulus leads to conditioned response j. Basic operation of instrumental (operant conditioning) i. Behavior leads to positive or negative consequences which leads to an increase/decrease in that behavior k. Concept of modeling (learning through observation) i. Based on emulation (copying) of respected examples l. Levels of selective perception i. Selective exposure ii. Selective attention iii. Selective comprehension iv. Selective retention m. Heuristics i. People often make decisions without thinking through all the facts and figures ii. These mental shortcuts are called heuristics 2. Objectives and budgeting a. Characteristics of objectives (SMAC) i. Specific ii. Measurable iii. Attainable/achievable iv. Compatible b. Factors affecting sales i. Advertising and promotion 1. Distribution ii. Competition 1. Technology 2. Price iii. Product Quality 1. The economy c. Basic principles of marginal analysis approach to budgeting i. Increase spending: if the increased cost is less than the incremental (marginal) return ii. Hold spending: if the increased cost is equal to the incremental (marginal) return iii. Decrease spending: if the increased cost is more than the incremental (marginal) return d. Basic principles of percent of sales approach to budgeting i. (Ad$/Sales$) x 100 ii. (Ad$/Margin$) x 100 iii. (Ad$/ Sales Growth$) x 100 iv. Allows direct comparison to industries, product categories v. Industries that rely more heavily on other parts of the promotional mix have lower percentage of sales figures 1. Life insurance (.2%)- personal selling 2. Distilled liquor (15.6%)- advertising 3. Creative planning, strategy and development a. Creative strategy i. Determines what the advertising message will say or communicate b. Creative tactics i. Determines how the message strategy will be executed c. Inherent tension exists within advertising between “suits” who favor “safe” advertising that sells the product and “artists” who believe artistic and aesthetic value is what matters i. Suits: “it’s not creative unless it sells” ii. Artists: “Only artistic value and originality count” d. Creative process i. Immersion: Getting raw material, data, immersing one's self in the problem to get the background. ii. Digestion: Ruminating on the data acquired, turning it this way and that in the mind. iii. Incubation: Ceasing analysis and putting the problem out of conscious mind for a time. iv. Illumination A sudden inspiration or intuitive revelation about a potential solution. v. Verification: Studying the idea, evaluating it, and developing it for practical usefulness. e. Account planning i. Agency function that focuses on consumer insight and brings consumers into the creative development process ii. Jay Chiat hired Jane Newman in 1982 to create first US account planning department in New York office of Chiat/Day f. Levels of messaging i. Theme ii. Campaign iii. Execution g. Important “philosophic approaches” in advertising history/development i. Unique selling proposition 1. Rosser Reeves ii. Creating brand image 1. David Ogilvy iii. Finding inherent drama 1. Leo Burnett iv. “Effective surprise” and breaking down the fourth wall; father of the creative revolution; Ad Man of the Century 1. Bill Bernbach 4. Creative strategy implementation and evaluation a. Advertising appeals i. The overall approach to get attention, change attitudes, and influence consumer feelings toward a product, service or cause 1. Informational/Rational appeals a. Feature: Focus on dominant traits of the product b. Competitive: Makes comparisons to other brands c. Price: Makes price offer the dominant point d. News: News announcement about the product e. Popularity: Stresses the brand’s popularity 2. Social based feeling appeals a. Approval
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