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Midterm Exam Reviewer - Advertising

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Midterm Exam Reviewer - Advertising

Uploaded by

gerrymelramreyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MIDTERM EXAM REVIEWER • Identified Sponsor: A sponsor may be an

BMM 3133 – ADVERTISING individual or a firm who pays for the


-------------------------------------------------------------- advertisement. The name of reputed company
may increase sale or products.
TOPIC 1 – INTRODUCTION TO ADVERTISING • Consumer choice: Advertising facilitates
consumer choice. It enables consumers to
Introduction purchase goods as per their budget requirement
• Used for communicating business information to and choice. Right choice make consumer happy
customers. and satisfied.
• Provides information about the advertising firm, • Element of Marking Mix and creativity: Advertising
its product qualities, place of availability of its has proved to be of great utility to sell goods and
products, etc. services. When the message of the advertiser
• Advertisement supplements personal selling to a matches the expectations of consumers, such
great extent. creativity makes way for successful campaign.

Definition of Advertising Objectives of Advertising


• "Any paid form of non-personal presentation of • To introduce a new product by creating interest for
ideas, goods and services by an identified it among the prospective customers.
sponsor" American Marketing Association. • To support personal selling program. To reach
• According to Webster, "Advertising is to give people inaccessible to salesman.
public notice or to announce publicity". • To enter a new market or attract a new group of
• According to Gardner, "Advertising is the means of customers.
mass selling that has grown up parallel with and • To light competition in the market and to increase
has been made necessary to mass production". the sales.
• To enhance the goodwill of the enterprise by
Features of Advertising Communication promising better quality products and services.
Advertising is means of mass communication reaching • To improve dealer relations.
the masses. It is a non-personal communication because • To warn the public against imitation of an
it is addressed to masses. enterprise's products.
• Information: Advertising informs the buyers about
the benefits they would get when they purchase a Importance of Advertising
particular product. • Promotion of Sales: It promotes the sale of goods
• Persuasion: The advertiser expects to create a and services by informing and persuading the
favorable attitude which will lead to favorable people to buy them.
actions. • Introduction of New Product: Advertising enables
• Profit Maximization: True advertising does not quick publicity in the market. A new enterprise
attempt at maximizing profits by increasing the can't make an impact on the prospective
cost but by promoting the sales. This way it won't customers without the help of advertising.
lead to increase the price of the product. Thus, it • Creation of Good Public Image: Advertising
has a higher sales approach rather than the enables a business firm to communicate its
higher-cost approach. achievements to satisfy the customers' needs.
• Non-Personal Presentation: Salesmanship is This increases the goodwill and reputation of the
personal selling whereas advertising is non- firm which is necessary to fight against
personal in character. Advertising is not meant for competition in the market.
anyone individual but for all. There is absence of • Mass Production: Advertising facilitates large-
personal appeal in advertising. scale production. Mass production reduces the
cost of production per unit by the economical use department. The government adopts law and
of various factors of production. regulation which have a direct or an indirect
• Research: Advertising has become a competitive bearing on the advertising.
marketing activity. Every firm tries to differentiate --------------------------------------------------------------
its product from the substitutes available in the
market through advertising. This compels every TOPIC 2 – THE AD PYRAMID
business firm to do more and more research to
find new products and their new uses. If a firm Introduction
does not engage in research and development The ad pyramid is a marketing strategy that helps
activities, it will be out of the market soon. businesses create effective advertising campaigns that
• Education of People: Advertising educate the reach their target audience and drive sales.
people about new products and their uses.
Advertising message about the utility of a product Awareness. Interest. Desire and Action.
enables the people to widen their knowledge.
By understanding how each level of the pyramid works,
Active Participant in Advertising businesses can create ads that are more effective at
• Advertiser: Seller who manufacture and market reaching and engaging potential customers.
consumer products are the prominent group of
advertisers, retailers being the second prominent The Ad Pyramid
segment among advertisers, stock the products It is a marketing concept that outlines the different stages
and sell them to the ultimate consumers. of the customer journey, from initial awareness to final
Government and social organization are also the conversion.
active participant in this category.
• Target audience: It refers to the recipient of the Awareness. Interest. Desire and Action.
advertising message. Advertising desire to cover
this target audience for promoting sales. Each level of the pyramid requires a different approach to
• Advertising Agencies: An advertising agency is advertising. By understanding the ad pyramid and tailoring
composed of creative people, who conceive your advertising approach to each level, you can
design, develop and produce, advertising effectively guide customers through the customer journey
message with creative ideas and place it in the and increase conversions.
desired advertising media, for and on behalf of its
client (the advertiser).
• Advertising Production People (Artists): Artists
like copywriters, artists, photographers,
typographers, layout designers, editors and other
creative people are usually employed by the ad
agencies, or their services may be hired by the ad
agencies on job basis to help them produce
impressive and persuasive advertisements.
• Mass media: Advertising messages are
communicated to the target audience through
different mass media, such as print media,
electronic media, outdoor media and direct mail
like brochures, pamphlets, leaflets etc.
• Government Authorities: The business of
advertising is regulated by the government
• There are several ways in which advertising
affects society, both positively and negatively.

Positive Side
The role of advertising that can be used to raise awareness
of important issues, such as social causes or public health
campaigns.
It can also be used to promote products and services that
may improve people’s lives.

Negative Side
Advertising can be used to exploit people’s fears or
vulnerabilities, and it can be used to sell products that are
harmful to people’s health or well- being.

Advertising plays strong role in Economy:


It provides useful information to consumers that tells
them about product and service choices, as well as
comparing features, benefits, and prices. With more
complete information, consumers and businesses often
choose to purchase additional products and services.
It “causes an economic chain reaction that :
a) generates a net gain in direct sales and jobs due to
the promotion of the industries’ products and
services,
b) generates indirect sales and jobs among the first
level suppliers to the industries that incur the
advertising expenditures, and
-------------------------------------------------------------- c) (generates indirect sales and jobs among all other
levels of economic activity as the sales ripple
TOPIC 3 – ROLES OF ADVERTISING TO SOCIETY throughout the economy.”

Persuasive Advertising Importance of Advertising to Society


• A form of digital advertising that leverages the • Role of advertising in society is a critical
interests, desires, and motivations of your component of any society as it allows businesses
audiences to convince them to make a purchase to generate revenue which, in turn, fuels
decision with your brand. economic growth.
• Persuasion may take the form of helpful guidance • Advertising also allows businesses to reach new
and advice by interested friends. The more usual customers and promote their products or
form of persuasion though is that of commercial services. Additionally, advertising helps to create
advertising by producers who have goods or jobs and support local economies.
services to sell • Without advertising and society, businesses
would struggle to generate revenue and grow. This
How Advertising affects Society would ultimately lead to fewer jobs and a weaker
• The impact of advertising on society is vast and economy.
has been the subject of much debate.
Examples of Bad Advertising Sustainable
1. Pepsi ft Kendall Jenner, “Live For Now” • Process of creating, communicating and
2. Burger King, “Women belong in the kitchen” delivering value to customers in such a way that
3. McDonald’s, “I’d Hit It” both natural (resources nature provides) and
4. Coca-Cola, “New Coke” human (resources people provide) capital are
5. 10. KFC, “Mouthful” preserved or enhanced throughout.
--------------------------------------------------------------
Creative
TOPIC 4 – THE AD PENTAGON (MARKETING • Is the generation and execution of communicating
PENTAGON) unique messages in an inventive way.

Marketing Pentagon Experimental


Is a powerful tool for businesses to develop and • Consists of research based on a hypothesis of
implement an effective marketing strategy. what kinds of marketing activities will appeal to
potential customers, then collecting and
analyzing the resulting data to see if the marketing
activity was successful.
--------------------------------------------------------------

TOPIC 5 – THE ROLE OF RESEARCH IN ADVERTISING


PLANNING

Why is Advertising Research Important?


Advertising research validates your ad strategy or
identifies shortcomings by testing ad campaigns with a
Digital sample of your target audience.
• Having extensive knowledge of how social media, it Identify which ads are most likely to resonate with your
search engines, websites and online audience and which may negatively impact your efforts.
advertisements can generate sales leads , Advertising research won’t just optimise your ad strategy
increase traffic to a business and build brand but also increase conversions and grow your business.
awareness.
How does advertising research work?
Four Best Digital Advertising Examples The simplest approach to conducting market research is
1. Search Engine Marketing also usually the most expensive: outsourcing the process
2. Display Advertising to an advertising research firm. The advantages of
3. Social Media Ads engaging an outside specialist are independence and
4. Email Marketing objectivity, access to more resources, and unbiased
results.
Social
• Process that applies marketing principles and Types of Advertising Research
techniques to create, communicate and deliver • Pre-testing - focuses on the ad concept, the
value to influence target audience behaviors that campaign theme, and the actual copy. Once all
benefit society (public health, safety, the three tests are conducted, an ad can be finalized
environment, and communities) as well as the and placed.
target audience. • Post-testing occurs after an ad has run; the
process is used to determine if the ad has
influenced the audience. Testing is conducted via TOPIC 7 – MEDIA STRATEGY AND PLANNING
feedback from consumers in the form of
responses to questionnaires, short surveys, or What is Media Strategy?
recall tests. Media strategy is the process of determining how to best
allocate your media budget across different channels to
Advertising Research is not the same as Market reach your target audience.
Research It involves selecting the right media platforms and timing
However, they can be complementary. Market research to achieve marketing objectives.
blends insights into consumer behavior, market dynamics,
and economic trends using relevant data gathered from Key Components of Media Strategy
various sources to provide a reliable method for • Target Audience
companies to prove a concept for or improve a product or o Who are you trying to reach?
service. o Demographics, consumers behavior,
interests.
Scope of Advertising Research • Media Channels
• Increase awareness - Advertising's purpose is to o TV, Radio, Social Media, Print, Online Ads,
make the customer aware of the company and its etc.
products. • Timing
• Provide result - Evaluation of advertising refers to o When is the best time to reach your
the activity of comparing the actual results of audience?
advertising to the established standard to know • Budget Allocation
the real value of the advertising performance. o How to allocate your budget across
• provide feedback - Advertising does not end after channels effectively.
execution company has to check that they got the
desired result or not. It is an attempt to measure What is Media Planning?
that the investment in creating the advertising has Media planning is the process of selecting, scheduling,
resulted in attaining the goals and provide and buying media space and time.
satisfaction to the consumers. It ensures that the media strategy is executed effectively,
• analyzes changing market - if a company want to with the right messages reaching the right audience at the
grow in the long run the company needs to know right time.
their customer. Customer attitude also changes
with the change in the market or environment, Steps in Media Planning
because new and innovative products are • Research – Understanding the market and
launched by the companies on a daily basis. audience.
• Setting Objectives – Define goals (awareness,
It Helps You conversions, etc.).
• Understand your target audience • Media Selection – Choose the right media
• Select the best places to advertise platforms.
• Build more effective ads • Budgeting – Allocate spending across media
• Make your advertising budget go further channels.
• Increase sales conversions and build your • Scheduling – Determine when ads will run.
business • Execution – Implement the media plan.
--------------------------------------------------------------
Steps in Media Planning
1. Conducting situation analysis: It involves defining
the marketing problem and conducting SWOT
analysis of the company as well as the Continuity
competitors. It refers to a continuous pattern of advertising, which may
2. Formulating a marketing strategy: studying the be daily, weekly or monthly. It is used when product recall
internal and external factors affecting media plan. is elicited easily with an advertising message and delayed
conducting target market segmentation. making at non-exposure.
marketing mix decisions It is suitable for product categories consumed on regular
3. Formulating an advertising strategy: it involves basis without being affected by seasonal fluctuations.
determining the behavior and attitude of target Advantages - Acts as a constant reminder, Covers entire
audience and taking decisions regarding: buying cycle, Allows for discounts
• the product information to be communicated Disadvantages - High costs, Possibility of over exposure
• product positioning
• media to be used Flighting
• ad copy, advertising message and advertising It is a less regular schedule of ad message. There are
appeal periods of advertising and a more than one
4. Setting Media Objectives: This step involves advertisements. Advertisements are run to influence the
setting media objectives in terms of coverage purchase cycle. It is suitable for consumer products both
reach and frequency of advertisements. durable and non-durable.
5. Determining media strategy: it involves the task of
selecting the best alternative or strategy to Pulsing
effectively achieve the advertising objective and It is the combination of the above two approaches.
setting guidelines for media. Continuity is maintained but stepped up during certain
6. Selection of media: it involves comparison and periods and different advertisements are run to influence
selection of media. the media selected may be purchases during different life cycle stages of the product.
broadcast media, print media, outdoor media or Advantage - Motivates customers to avail seasonal
support media or a combination of these benefits. The decisions on scheduling strategy are based
mediums. on:
• Brand awareness
Types of Media Channels • Buying cycles
1. Traditional Media • Available budget
• TV, Radio, Newspapers, Magazines.
2. Digital Media Importance of Data in Media Strategy
• Social Media, Websites, Search Ads, Email • Data helps in:
Marketing. o Understanding audience preferences
3. Out-of-home (OOH) o Tracking campaign performance
• Billboards, Transit Ads. o Optimizing media spend for better ROI
4. Direct Mail --------------------------------------------------------------
• Personalized mailing campaigns.
TOPIC 8 – THE ADVERTISER’S MARKETING AND
Scheduling ADVERTISING OPERATIONS
It is concerned with timing in inserting of advertisements
in the selected media. There are three approaches to Advertiser's Marketing
scheduling: An advertiser is the entity on the buying side of the mobile
• continuity marketing ecosystem. In the context of mobile advertising,
• flighting the advertiser is often an app or brand looking to spread a
• pulsing specific message about their product (for example, new
user acquisition and retargeting campaigns).
Role of Advertisers in the Marketing Advertising Strategy
• Promotion and Communication: Advertisers • Target audience: identification Identifying the
are responsible for promoting products, target audience involves determining who your
services, or messages to target audiences. ideal customers are. This includes demographics
• Brand Awareness: Advertisers help build and (age, gender, location), psychographics (values,
strengthen brand awareness. interests, lifestyle), and behavior (purchase
• Customer Engagement: Advertisers aim to history, online behavior).
engage and interact with customers. • Message development: Once you understand
• Market Research: Advertisers often your audience, develop a compelling message
conduct market research to understand that resonates with their needs, desires, and pain
consumer preferences, behaviors, and points. Your message should clearly convey what
trends. your product or service offers.
• Product Launch and Promotion: When a new • Media selection: There are numerous media
product or service is introduced, advertisers channels to choose from, including digital (social
play a vital role in creating excitement and media, websites, email), traditional (TV, radio,
interest around the launch. print), and out-of home (billboards, transit ads).
• Sales Generation: Advertisers aim to drive
sales and revenue for the brand. Advertising Budgeting
• Message Crafting: Crafting the right message Is a critical step in the overall marketing and advertising
is crucial in advertising. planning process. It involves determining how much
• Media Planning and Buying: Advertisers are money your business is willing and able to allocate for
responsible for selecting the most advertising efforts.
appropriate media channels to reach their
target audience. Advertising Creative Process
• Creativity and Design: Advertisers • Idea generation: is the initial phase where creative
often collaborate with creative teams to concepts and campaign ideas are brainstormed.
design visually appealing and engaging ads. It's about identifying the core message or theme
• Measurement and Optimization: Advertisers that will resonate with the target audience.
use metrics and analytics to measure the • Concept development: is the stage where
effectiveness of advertising campaigns. selected ideas are refined and developed into
coherent concepts for the advertising campaign.
Common Advertising Objectives • Creative execution: is the final step where the
• Brand awareness: refers to the familiarity of selected concept is transformed into actual
consumers with a particular product or service. advertising materials, such as ads, videos, or
• Lead generation: is the process of capturing and visuals.
cultivating potential customer information, such
as names, email addresses, or phone numbers, Media Planning and Buying
with the intent of converting them into paying Media planning and buying are essential components of
customers. advertising operations that play a pivotal role in the
• Sales promotion: is a marketing strategy that aims success of advertising campaigns.
to stimulate short-term increases in sales or Media planning and buying are crucial because they
consumer demand for a product or service. ensure that your advertising efforts are strategic, efficient,
and effective. They help you reach your target audience
• Customer retention: refers to the strategies and
with the right message through the most appropriate
efforts businesses undertake to keep existing
channels while optimizing your budget allocation.
customers engaged, satisfied, and loyal over an
extended version.
Ad Campaign Execution • Experience: Advertisers must find ways to create
• Ad production: Encompasses several critical ads that align with user preferences and avoid
steps; Creative development, Storyboarding, intrusive formats that prompt ad blocking.
Graphic designers and copywriters, Various ad Changing Consumer Behaviors
formats and Quality assurance • Multiscreen Usage: Consumers frequently switch
• Media placement: Encompasses several steps; between devices, making it challenging to track
Media Selection, Negotiation and Booking, Ad user journeys and optimize cross device
Formats and Specifications, Media Buying and advertising.
Tracking and Reporting • Ad Fatigue: Overexposure to ads can lead to ad
• Campaign launch: Campaign launch requires fatigue, causing consumers to ignore or actively
meticulous coordination, Launch Date, avoid ads.
Monitoring, Optimization, Communication and • Ad Personalization: Balancing personalization
Campaign Duration with privacy concerns is a constant challenge.
--------------------------------------------------------------
Advertising Metrics and Evaluation
Key Performance Indicators (KPIs) are essential metrics TOPIC 9 – THE WORLD OF MEDIA: AN OVERVIEW
used to measure the effectiveness of advertising
campaigns. They provide valuable insights into how well Media History
an ad campaign is performing and whether it's achieving Media history refers to the historical dimension of
its objectives. communicating information, knowledge, and values to a
broad audience. It encompasses the study of various
Challenges in Advertising Operations media structures and their impact on societies, as well as
Ad Fraud the dynamics of historical change in these structures over
• Bot Traffic: Advertisers often contend with time.
fraudulent bot traffic that generates fake
impressions and clicks, leading to wasted ad Media Strategy
spend. A media strategy is a dynamic action plan for reaching your
• Click Fraud: Competitors or malicious actors may audience and boosting conversion rates by leveraging
engage in click fraud, artificially inflating click- various media types to distribute content and deliver your
through rates. brand message.
• Ad Impersonation: Advertisers face challenges
from websites that impersonate legitimate Media Selection
publishers, tricking advertisers into buying Media selection refers to the process of choosing the best
fraudulent inventory. channels to distribute an advertising message to the
Ad Viewability intended target audience. It's an essential step in media
• Viewability Metrics: Ensuring that ads are actually planning, ensuring marketing efforts effectively reach
seen by users can be challenging. Ad viewability potential customers.
metrics help advertisers understand how often
their ads are in view and for how long. Three Types of Media
• Above the Fold: Achieving above-the-fold ad • Print Media
placement (visible without scrolling) is crucial for • Broadcast Media
visibility, but it may come at a premium. • Internet Media
Ad Blockers
• Ad Blocker Usage: The increasing adoption of ad Role of Content in Advertising
blockers by users can significantly reduce ad A marketing strategy used to attract, engage, and retain an
impressions and disrupt ad delivery. User audience by creating and sharing relevant articles, videos,
podcasts, and other media. This approach establishes Promotion
expertise, promotes brand awareness, and keeps your • Successful marketing strategies include all the
business top of mind when it's time to buy what you sell. promotional activities across the marketing mix,
including advertising, direct marketing, and in-
Six Advertising Challenges Brands Could Face store promotional activities.
• Reaching the right targeted audience • The possibilities of digital promotion are limited
• Allocating enough budget only by your imagination and can include online
• Scalability events, chats, social media groups, and
• Competition livestreams.
• Relying on one marketing channel Place
• Downplaying the power of emotions • Where and how your product is displayed and
-------------------------------------------------------------- sold should be directly informed by your
customers.
TOPIC 10 – SEVEN BASIC STRATEGY • A deep understanding of their purchasing patterns
– and targeting them at the right stage in their
Seven Basic Strategy buying cycle – will make it clear where you should
1. Determine your goals promote and sell your products and how that fits
2. Find your target audience into your online and real-world marketing mix.
3. Consider how your brand is viewed People
4. Test and track your ad campaigns • Excellent customer service not only converts to
5. Consider your timing sales, but can increase your customer base by
6. Seek out help referrals. Acquiring these referrals by people who
7. Try Low-cost advertising options love your brand can also be a great example of
how your marketing efforts can support your sales
Seven P’s of Marketing process.
Product • It’s important that everyone who represents your
• It goes without saying that the service or product brand or deals with customers – including the
you’re selling should be at the centre of every non-human chat bot variety! – are fully trained
element of the marketing mix. sales professionals with an intimate knowledge of
• Fundamentally, it allows you to address the your product and how it will improve the lives or
questions key to sales conversion: what problem solve the problems of your customers.
or issue does the product solve for customers? Process
Why is your product the best one to solve it? • The process of delivering your product to the
• The digital marketing mix is perfect for consumer should be designed for maximum
showcasing your products, through SEO, blogs or efficiency and reliability, but may also include
articles, paid advertising, influencer marketing, features that are in line with your brand, such as
and viral video campaigns, for example. being environmentally of sustainably focused.
Price • With the rise in online shopping, digital
• The strategy behind the pricing of your product partnerships and logistics have become an
needs to be based on what your customers are essential part of the marketing mix.
prepared to pay, costs such as retail mark-up and Physical Evidence
manufacturing, as well as other considerations. • Physical evidence incorporates aspects that
• Your marketing mix can include subscription and proves your brand exists and that a purchase took
membership discounting programs, or email place.
marketing of promotions and sales. • Examples of proof that your brand exists can
include things like a physical store or office for
your business, a website if your business operates
solely online, and printed business cards that you
exchange when meeting people. Examples of
proof of purchases can include physical or digital
receipts, invoices, or follow-up email newsletters
that you send to customers as a retention
exercise.
• Your marketing mix must also take into
consideration all the things your customer sees,
hears – sometimes even smells – in relation to
your product or service.
• This, of course, includes packaging and branding,
but should also bring in the ways products are
displayed in stores, where they are placed, and
the context in which they sit, as well as digital
placement, including on your website and social
media.

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