ADV Study Guide 2.doc

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ADV 208
James Tsao

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Advertising Test #2 SOCIAL, ETHICAL & REGULATORY ASPECTS OF ADVERTISING (Lecture 4) Key Areas of Debate: 1. Puffery: “Nothing beats a Bud” 2. Decency: Sexual innuendo, violence 3. Stereotyping: Portrayals of housewives, seniors, racial groups 4. Children: Violence, dangerous acts, unhealthy habits 5. Controversy: Condoms, alcohol, fashion Areas of Advertising Regulation: - Deception and unfairness - Competitive issues - Advertising to children Laws Most Violated: - False advertising o Actual deception or impression of deception o Misrepresentation relates to quality of the product or a fact that impacts buyers’ purchasing decision o Competitor will suffer injury or lose goodwill Comparative Advertising o An advertiser compares its products to the competitions and the advertiser claims superiority  McDonalds vs. Burger King o It is not necessary that the competitor be directly named  “The Best Pizza under one Roof” (Pizza Hut)  “Best” is puffery, “Better” is comparative - Right of publicity o No person’s identity can be used in an ad without consent  Including…nicknames, names, photos, drawings, faces, voice impersonators, look-a-likes - Trademark law o Is the mark strong or weak? (Fanciful, generic, arbitrary, suggestive) o Are the marks similar when each entire mark is compared? (Appearance, sound, and meaning are considered) o Are the goods or services similar? Do they serve the same purpose? o Do the parties distribute their product through the same channels? o Have people actually mistaken the advertisers’ goods for the competitors? - Copyright law o Not protected:  Ideas, procedures, processes, and principles  Short phrases, slogans, and titles • Slogans can be protected under Trademark Law o The expression is protected CHAPTER 5: 4 Stages of consumption: 1. Need recognition/state – one’s desired state of affairs differs from one’s actual state of affairs 2. Information search and alternative evaluation ­ Internal search: consumer has prior experience with the products in questions, draw on personal experience and prior knowledge ­ Consideration set: set of brands a consumer will consider for purchase ­ External search: examining alternative products, seeking more knowledge ­ Evaluative criteria: price, texture, warranty terms, service support, color, scent, carb content 3. Purchase 4. Post-purchase use and evaluation ­ Cognitive dissonance: anxiety or regret that lingers after a difficult decision, “buyers remorse” ­ Customer satisfaction: favorable post-purchase experience 4 Modes of Consumer Decision Making: 1. Involvement - the degree of perceived relevance and personal importance accompanying the choice of a certain product or service (how much it matters) 2. Extended Problem Solving – when consumers are inexperienced in a particular consumption setting, yet find the setting highly involving  home or diamond ring 3. Limited Problem solving – experience and involvement are low  new parents getting diapers 4. Habit or variety seeking – the decision isn’t involving and a consumer repurchases from the category over and over again  laundry detergent they buy over and over again (cycle) ­ Habit: buying a single brand repeatedly ­ Variety seeking: tendency of consumers to switch their selection among various brands in a given category (random) 5. Brand Loyalty – high involvement and rich prior experience  Starbucks, Apple, Coke, Tide, etc. Psychological Process of Advertising: ­ Attitude: evaluation of any object, person, or issue that varies along a continuum ­ Brand attitudes: summary evaluations that reflect preferences for various products and services ­ Beliefs: knowledge and feelings ­ Salient beliefs: help with final evaluation of a brand Multi-attribute attitude models – provide a framework and a set of research procedures for collecting information from consumers to collect their salient beliefs and attitudes about competitive brands o Evaluative criteria o Importance weights o Consideration set o Beliefs Message Reception Obstacles: ­ Cognitive consistency: a person develops and holds beliefs and attitudes that help them make decisions  don’t change opinions once satisfied, hard for advertiser to change beliefs ­ Advertising clutter: a person must process many advertisements, overexposure in media o Selective attention: only read an ad if there is a need o Cognitive responses: the thoughts that occur to individuals at that exact moment in time when their beliefs and attitudes are being challenged by some form of persuasive communication ELM (Elaboration Likelihood Model) – helps understand how a persuasive communication may affect a person’s attitudes, we must consider his or her motivation and ability to elaborate on the message during processing (cognitive and peripheral) o Peripheral cues: features of the ad other than the actual arguments about the brands performance Consumer as social being: o Meaning: becomes more important than attitude when they do qualitative research  meaning based approach: knowing how to connect with human beings around their consumption practices with advertising and other brand promotion o Culture: what people do o Values: enduring expressions of culture o Rituals: often repeated formalized behaviors involving symbols (traditions) Components of Consumers: culture, values, rituals Stratification: systematic inequalities in things such as wealth, income, education, power, and status ­ Taste: generalized set of orientation to consumer aesthetic preferences  association with class/gender/race ­ Family: decisions made within families/needs of families  buying what other families do, intergenerational effect: if your parents do it you do it (habit) o Life-stage: advertisers like to track the age of the youngest member of a household to plan o Celebrity based culture? ­ Race and Ethnicity: implies culture which plays into consumer behavior ­ Politics: labor policies, colonial power, green-ness ­ Gender: socio-cultural expression of sexual identity and preference ­ Community: powerful and traditional sociological concept, belonging to a group of people that are similar to you o Brand communities: people tied together because they feel connections with people that use the same brand (Doc Martens, Coca Cola, Apple, etc.) Maslow’s Hierarchy of Needs Dunkin’ Donuts vs. Starbucks Case DD Tribe: ­ Not driven by status ­ Simple and no frills ­ Regular, average people ­ Love routine ­ Down-to-Earth ­ Efficient ­ Don’t worry about fitting in ­ Proud to have things to do and places to go ­ Non-judgmental **In 2009, 60% of Americans cut back on expensive coffees to save money ­ Starbucks sales decreased while Dunkin was opening new stores ­ Starbucks is trying to return to its premium coffee roots by opening “Inspired by Starbucks” cafes ­ Trying to recreate the feel of “new company fervor” ­ Cafes will be open later, serve beer and wine, feature live music How Ads Transmit Meaning: ­ Ads try to turn already meaningful things into things with a very special meaning, a crafted meaning with the purpose of selling ­ Consumers determine the meaning of ads and brands ­ Advertisers take meaning that exists in the culture and massage it, shape it, and try to transfer it on to your brand ­ Link products to certain social scenes, certain slices of life ­ The product is given social meaning by being placed within an ad that represents an idealized context (where potential customers find, or desire to find, themselves) ­ When a person purchases that product, the meaning is transferred to the individual consumer ­ Ads become part of consumers’ everyday landscape o They are the sociocultural context of our time CHAPTER 6: How Well Do You “Tolerate Mornings?” Folgers Coffee ­ First time users represent the future ­ Marketers must launch campaigns to appeal to the next generation of coffee drinkersyoung people learning the coffee habit ­ Targeting young adults (just graduated) moving into the “real world” ­ Worked with Saatchu & Saatchi ­ Started with the premise that mornings were tough, filled with emails from “morning people” ­ Folgers exists to help a person tolerate mornings ­ Created short film about morning people trying to invade your space and Folgers is your first line of defense ­ Website: - Spent zero dollars on media because the video was submitted to 3 websites STP Marketing: (SegmentingTargetingPositioning) ­ Target segment: the subgroup of the larger market chosen as the focal point for the marketing program/advertising campaign ­ Positioning: process of designing and representing ones product of service so that it will occupy a distinct and valued place in the target market ­ Positioning strategy: selecting the key themes or concepts that the organization will feature when communicating this distinctiveness to the target segment Identifying Segment: Market segmentation: involves breaking down large heterogeneous markets into more manageable submarkets ­ Heavy users: majority of a products sales, preferred or primary target
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