Advertising Assignment I

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Course Learning Outcomes for Unit I Upon completion of this unit, students should be able to:

1. Explain how advertising enhances the concept of integrated marketing communication (IMC).

Course/Unit Learning Outcomes

Learning Activity

1

Unit Lesson Chapter 1 Chapter 2 Unit I Article Review

Required Unit Resources Chapter 1: Integrated Marketing Communications Chapter 2: Brand Management

Unit Lesson When you think of advertising, what comes to mind? Do you think of television commercials on Super Bowl Sunday or the various billboards that line the highways throughout your daily commute? Both of these examples are considered advertising, yet advertising involves so much more. In a very basic sense, advertising is a form of communication that involves transmitting, receiving, and processing information. Advertising suggests that marketers (as agents within companies) will compile a message that is designed for the consumer, and the purpose of the message is to influence buying behavior.

The Four Ps of the Marketing Mix The marketing mix, also referred to as the four Ps, provides a basic framework for the marketing and advertising activities that an organization wishes to pursue. This suggests that the marketer must focus on four elements when constructing effective marketing strategies for an organization. The four elements of the marketing mix include product, price, place, and promotion. Product Product consists of not only the physical product, but also the services offered. The quality of the product, features, benefits, accessories, warranty, installation, packaging, and brand also make up components of the product. Price Price consists of the costs associated with price, terms, discounts, allowances, and other pricing strategies. Price could include an at-the-market, below-the-market, or above-the-market pricing strategy. Pricing strategies could include flexible pricing, which allows an organization to offer different prices to different customers or a fixed pricing structure to maintain one price for all customers.

UNIT I STUDY GUIDE

An Introduction to Integrated Marketing Communications (IMC)

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Place Place consists of the types and locations of retail stores, transportation/storage, and the use of intermediaries such as wholesalers and distributors. The idea of “place” in the marketing mix can vary greatly, as it depends upon several decisions. If an organization chooses a simple option, “place” can be very concise and direct (e.g., directly from the manufacturer to the consumer). On the other hand, a more complex strategy concerning place involves several intermediaries. The marketer needs to identify the most effective channel(s) that align with the customers’ needs. Promotion Promotion consists of the methods used to communicate a product’s benefits to the consumer. It is important to know that promotion is not limited to print and online advertisements. In fact, promotion can involve other types of tactics, such as salespeople, sales promotions, publicity, public relations, and/or the Internet. One way to think about the marketing mix (and the four Ps) is to develop the “right product” for the “right price” at the “right place” that is communicated with the “right promotional methods.” A marketer can control the four Ps through the development of a marketing plan. Another trending topic within the marketing and advertising field is integrated marketing communications (IMC), which is the application of a consistent brand message across all marketing channels that stem from a company (Perreault, Cannon, & McCarthy, 2014). It is important for a company to adopt an IMC, as it provides each of the following:

 Clarity: All advertising pieces provide a clear message, which identifies with the company and product that provides an opportunity for a higher level of brand allegiance.

 Consistency: All advertising pieces provide a consistent message, which identifies with the company and/or product and allows consumers to relate one meaning to the company.

 Increased impact: Maintaining one clear and consistent identity increases the overall benefit of the advertising effort. In other words, such an approach is more effective and increases the company’s return on investment.

Big Apple Circus

This part of the lesson contains a video that illustrates how Big Apple Circus attempts to maintain a strong and profitable presence in a very competitive industry. Marketers need to understand the consumer, specifically their target market, but marketers also need to differentiate their product/service offering. As you are viewing the video below, think about the following questions:

 How do the marketers at Big Apple Circus maintain an entrepreneurial culture that provides a unique show?

 What are some of the specific things that Big Apple Circus does to ensure a quality product/service while also providing a value proposition to its target market?

 Is Big Apple Circus trending with respect to using methods that will most effectively reach their target market?

Watch the Big Apple Circus video. The answers to the previous questions involve three concepts: (a) entrepreneurial culture, (b) quality product/service, and (c) advertising innovations.

 Entrepreneurial culture: Big Apple Circus maintains a very entrepreneurial culture within their organization. For instance, the Britney Spears partnership provided a unique opportunity for both Big Apple Circus and Britney to present a unique show for the target market.

 Quality product/service: Big Apple Circus intentionally established a goal to provide the best show, and the show has been described as such by the target market. The core value is stated as including “great artists” that provide the most entertainment value for the entire family. This represents a sound value proposition.

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 Advertising innovations: Big Apple Circus continues to innovate and maintain the most trending of advertising techniques. These days, Facebook, Twitter, and outdoor advertising are used more frequently than the most effective methods from a few decades ago, such as radio, newspaper, and direct mail.

Branding

A brand name consists of a word, a letter, or a group of words or letters. Branding uses this brand name to identify a product or service; a company positions its brand name in the minds of the consumers to differentiate its product or service from its competitors. Brand familiarity relates to how well customers recognize and accept a company’s brand, and it is used in the brand strategy planning process. Customers typically fall into one of the stages within the brand recognition process, which are as follows:

 Brand rejection: Customers will not buy the brand unless its image is changed significantly.

 Brand non-recognition: Customers do not recognize the brand.

 Brand recognition: Customers recognize and remember the brand.

 Brand preference: Customers choose the brand over other brands.

 Brand insistence: Customers insist on the brand and have a willingness to search for it. The further in the brand familiarity process the consumer goes, the greater the advantages for both the company and the consumer. The ultimate goal of the company is to obtain brand equity where the consumer not only prefers the brand but also has an allegiance to it. Stop for a moment to think about a brand you are familiar with. Which stage of the brand recognition process would you place yourself into? How would you describe your relationship with the brand? Sometimes, a company’s brand simply becomes worn out or suffers some degree of negative publicity. Rebranding is a marketing strategy whereby a company will change the name, term, symbol, and/or design in an attempt to change the identity of the company in the minds of the consumers, investors, and competitors. With an obvious expense involved with such a venture, a company needs to carefully reflect on the re- branding effort. The following list contains examples of circumstances that warrant a re-branding effort:

 Growth of company/product line: Company has matured with product lines that no longer match the brand identity.

 Changing internal or external environment: The internal or external environment has changed to the point that the organization needs to update its brand to maintain relevancy within the industry.

 Target market changes: The company has made a strategic decision to focus on a different target market.

 Likeliness to competitor: The brand identity has evolved and is now too closely related to the identity of a competitor.

Plymouth Rock Assurance

This part of the lesson contains a video about Plymouth Rock Assurance. The professionals at Plymouth Rock Assurance attempted to re-brand their insurance organization in response to the changing environment within the insurance industry. The idea was to change the overall perception and to maintain the feeling of continuity and stability. Were they effective in accomplishing these goals? Watch the Plymouth Rock Assurance video to see its re-branding effort.

Packaging Packaging is another important aspect of advertising, and packaging is considered as the final impression on the consumer. Ideals of packaging include the following:

 Protection of the product: Packaging can provide protection of the product and enable the product to be easier and safer to use.

 Sending a message: Creative packaging provides necessary information to the consumer such as ingredients or influencing messages. This could result in influencing consumer-buying decisions and

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ensuring post-decision satisfaction levels. Marketers can utilize creative methods of packaging, which will attract the target market as well as provide a high level of understanding. For instance, Samsung utilized a packaging design for their cell phones that was targeted at the elderly segment of their target market. Samsung’s creative packaging design mirrored the packaging of vitamins, which the target market was particularly familiar with.

 Lower distribution costs: Packaging can save space and weight, which enables more efficient transportation, handling, and display of the products.

Flash Cards

Access the Unit I Flash Cards PowerPoint. PDF of Unit I Flash Cards Note: In order to experience the full functionality of the presentation, it is recommended that you view the PowerPoint version. When viewed as a PDF, the buttons within the presentation may not work.

Reference Perreault, W., Cannon, J., & McCarthy, E. J. (2014). Basic marketing: A marketing strategy planning

approach (19th ed.). McGraw-Hill.