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agendacreative strategyexam review


Managing the Advertising ProgramKey steps:

1. Define the target segment(s): Single or multiple2. Objectives: inform, remind or persuade3. Budget: PLC, market share and consumer base,

competition and clutter, frequency, and substitutability

4. Choosing the advertising message - All the creative in the world cannot boost sales for a flawed product or strategy.

5. Media: Most cost effective choice.6. Evaluation


Message Components - Creative Strategy

1. Message generation: What is the major benefit that the product offers? Should be decided as a part of the product concept.

2. Message evaluation and selection: Focus on one core selling proposition. Key evaluative elements: desirability, exclusiveness, believability.

3. Message execution: Copy strategy defines the objective, content, support and tone of the desired ad.

4. Media: type, reach, frequency, impact, timing

5. Evaluating Advertising Effectiveness: research, sales.


Message execution

• Positioning is the basis of strategy:– The point of difference is often the key benefit– The target already established, is more detailed

• Creative Strategy adds to the positioning: – Perceptions - How the target perceives the category– Objective--What you want the target to do?– Support --The reason the target should believe the

key benefit.


Positioning• The single benefit that distinguishes your

product/service from its competitors in the consumers minds


Positioning Statement

• To (target), (your product) is the one (category) that (point of difference in the form of a benefit or attribute).

• Support this position with a paragraph that elaborates on the above. Can include support, problem/solution - anything that helps convey the positioning clearly.


Positioning


Sample Positioning Statement

• Mad Cat (cat food)• To cat owners whose cats play outdoors, Mad Cat is the

one dry cat food that helps country cats stay rabies-free.• Country cats aren’t like city cats. They climb trees, chase

squirrels, and get into fights with various animals- they’re more active cats. But sometimes Smokey gets bitten by animals teeming with rabies. That’s why we developed Mad Cat, the first dry cat food fortified with rabies vaccine to help keep country cats active and not foaming at the mouth. If you have a country cat, you need Mad Cat cat food for active country cats.


Creative Strategy

• The creative strategy is the basis for advertising development and the standard against which all advertising concepts and executions must be judged.


Elements of a Creative Strategy

• Perceptions: – What are the target’s perceptions about the product, the

category, the market?

• Example– Cats that live in the country are more likely to get rabies

than city cats– Putting rabies vaccine in food will prevent the cat from

contracting rabies– All other cat foods are pretty much the same



• Target Audience: – To whom are we talking?

• Example– Cat owners who perceive cats to be active, and outdoors

much of the time; and people who have cats, who are scared of their cats getting rabies.



• Objective:– What do we want the target to do?

• Try Mad Cat instead of the brand they are using, and use it as a preventative measure instead of getting rabies shots



• Benefit:– What is the core idea that’s going to get the target to do

what we want them to do?

• Mad Cat prevents cats from getting rabies



• Support:– Why should they believe it?

• It’s recommended and endorsed by Dr. Nick Riviera, a famous veterinarian who is renowned for his heartwarming books about animals with rabies


The Basic Elements of Effective Advertising

• Single minded: It grows out of a single strategy• Intrusive: It can get and hold viewer or reader’s

attention• Informative: It imparts information• Relevant: The execution is relevant to the core idea• Campaignable: It can become a campaign• Unique: The advertising is a unique execution of the

core idea. If possible, it should be ownable by the product or service.

• Contagious: Spreads easily and people want to spread it


Tips for Evaluating Ads• Remember, it is not what you “like”, it is how well it fits the strategy.

• The further you are away from the desired target, the more

important it is to separate yourself from you personal biases when evaluation creative.

• The Creative Strategy is your rubric for evaluation.


• Address these questions as your give comments to your agency.1. What is the selling idea? (what is it communicating about

the product/people)2. Is the ad on strategy? (Is it what I want to communicate)3. How well is it executed?4. What is the main idea, net impression, the core idea?5. Perceptions, target, objective, benefit, support?6. Does it meet the basic elements of advertising?

Steps in Articulating Feedback


notes on exam 50 multiple choice Bring picture ID Bring #2 pencil Know your section number! No notes, books, etc. Please don’t talk/text/call people/telepathically communicate during the exam


notes on exam When is the exam?

IN LECTURE!! What will it cover?

Chapters 7-12


test prep1. Which of the following statements about single- and limited-

line stores is TRUE?a. Many are small, with high expenses relative to salesb. They usually believe in a "buy low and sell high" philosophyc. Such stores face the costly problem of having to stock some

slow-moving items in order to satisfy their target marketsd. Most conventional retailers are single- or limited-line storese. All of the above are true


test prep2. Why would you use qualitative research?a.Less workb.Detailed responsesc.Easy to analyzed.Aggregating responses is easye.Respondents are not limited in how they can answerf.Doesn’t require much timeg.Can generate insights that other types of research can’th.Easy to research a large sample size


test prep3. Franchise operations provide a good example of:a.Vertical integrationb.Contractual vertical marketing systemsc.Administered channels in which the retailers are the channel

captainsd.Direct-to-buyer channelse.None of the above


test prep4. There are five steps to marketing research. What is the

correct order? a.Define the problemb.Analyze situationc.Get problem-specific datad.Interpret the datae.Solve the problem

It’s already correct! It’s already correct!


test prep5. Which of the following is an example of derived demand?a)it turns out that caffeine causes cancer so people start

drinking watered-down Kool-Aid instead of coffeeb)Soulja Boy has started wearing mascara, so mascara

sales in the male population is skyrocketingc)Asparagus grows well in the spring, so farmers are selling

a lot of asparagus to grocery stores, and people are buying it because it’s cheap

d)Scientists have discovered that moldy cheese cures acne. Teenagers are now buying so much cheese that milk prices are at a 27-year high

e)Seventeen magazine printed an article discussing the health benefits of smoking, and now cigarettes are cool again


test prep6. I go to a store and see 400 different models of televisions

that pretty much have the exact same features. I just choose the cheapest one. I see televisions as:

a.homogeneous shopping productsb.want-based shopping productsc.specialty shopping productsd.heterogeneous shopping productse.indistinct shopping products


test prep7. Which best typifies the Battle of the Brands?a.Kraft macaroni vs. Hormel macaronib.Kraft macaroni vs. Kraft shells & cheesec.Kraft macaroni vs. Olive Garden restaurant’s macaronid.Kraft macaroni vs. homemade made-from-scratch pastae.Kraft macaroni vs. Wal-Mart brand macaroni


test prep8. If Markle Appliance Manufacturing Co. has 65 different

models of product all branded with the name Elkram, Elkram is a:

a.Brand poolb.Brand linec.Brand extensiond.Family brande.Generic brand


test prep9. Discrepancies of assortment is applicable to which of the following?a.a manufacturer pumps out 80 billion dog toys a year, but most people

only buy one at a timeb.Sephora makes 4,000 different types of makeup and they sell them all at

their own Sephora stores c.Univox makes Superfuzz guitar distortion pedals but they are sold at

music stores next to patch cables, picks, and stringsd.Arcturus Steel makes ball bearings in the trillions but sell them to

hardware stores who package them into quantities of 500e.A company makes golf clubs, golf pants, golf balls, golf hats, golf grips,

golf gloves, and golf videos. They sell these directly to golf dudes by mail order.


test prep10. Aarfy’s sells scrambled merchandise, which means:a)they create a unique shopping environment by mixing all different types

of products on a single shelf, so you never know what you’ll see nextb)they try to carry as many brands as they possibly can for any given

categoryc)they’ll sell anything to make a quick buckd)they ‘scramble’ (hide anti-theft devices) on their product packaging to

thwart shoplifterse)they make amazing omelettes

(yes, really) (yes, really)


test prep11. Modern warehouses have been moved out of downtown areas, which means that they are horizontal

more than vertical. Therefore these modern warehouses don’t usually use:

a)Freight elevatorsb)Power-liftsc)Motor-scooterd)Roller-skating order pickerse)Electric hoistsf)Hydraulic rampsg)A and Dh)D and Fi) All of the above

old warehous

es were vertic

al

old warehous

es were vertic

al

New warehouses are horizontalNew warehouses are horizontal


test prep12. Which of these can be considered part of a retailer’s “product”?

a)The sales staffb)The décorc)The variety of stuff they selld)Reputatione)Where the store is locatedf)Their advertisementsg)Their clienteleh)The salespeople are supposed to smile when they greet you, and if they don’t you get

everything you can shove into a brown paper sack for free everything except f) and g) everything except f) and g)


test prep13. Suppose the words Xerox, Kleenex, and Band-Aid are now in the public domain.

It’s because:a)These brands invented the categories they are inb)The companies didn’t register their name under the Wheeler-Lea Actc)Each of them at some point let their registrations under the Wheeler-Lea Act

expired)It has been over 70 years since their inception, and so they can no longer be listed

as trademarks under U.S. Lawe)The owners did not bother to keep people from using those words synonymously

with the category


test prep14. Which of the following is NOT a regrouping activity?a)Accumulating – collecting products from many small producersb)Bulk-breaking – Dividing larger quantities into smaller quantitiesc)Sorting – Separating products into grades and qualitiesd)Shifting – Moving products from separate locations to a single locatione)Assorting – Putting together a variety of products


test prep15. The CEO of Morbidly Obese Sandwich Company chain wants to know if

people will buy more sandwiches if they pour water all over the floors and make them super slippery at all times. The company is prepared to spend $50,000 on doing market research. The best market research method to test this theory would be:

a) Surveyb) Observationc) Focus Groupd) Experiment


test prep16. A bicycle company that is experiencing weakening sales of their year-old bicycle

model wants to drum up sales this summer. They decide to take the remaining stock, slap some training wheels on them, and sell them as “New and Improved.” Will the FTC allow this?

a)Yes, but only for 6 monthsb)Yes, because bicycles do not fall under the FTC’s jurisdiction, cf. Lehmann-Kohler

Act 10:12-26. c)No, the bikes haven’t been significantly changedd)No, the bikes are more than 6 months old so they can’t be sold as newe)There’s not enough information to tell

they are functionally different they are functionally different


test prep17. The Lanham act covers what area?a) Unfair competitionb) Price gougingc) Monopolyd) Copyrighte) Breaking and entering


test prep18. Two months ago, no one knew what a ROFL-Maker was, but now every single

undergraduate at UW-Madison has one. LOLology, Inc., company that makes the ROFL-Maker is now facing competition from a few competing products, like the Chairman LMAO doll, the LOLwat, and the WTF!!!1111. What phase is this category of products likely in?

a) Market introductionb) Market growthc) Market maturityd) Market declinee) Market saturation


test prep19. The single most important things you can do to avoid creating a

product that is likely to fail is to:a) Gain the partnership of retailers before doing anythingb) Maintain TQM practices within the operational facilityc) Ensure that the product passes through the marketing pipeline

before it goes to the larger organizationd) Make sure the product offers a unique benefite) Be able to provide an awesome warranty


test prep20. Your employer, Third Derailleur Bicycles is teetering on the brink of bankruptcy.

You need some secondary data about the market in Madison, but you can’t afford to pay much for it. You may be able to get it cheaply from:

a) Company filesb) The Bicycle Sales League, a trade association for bike shopsc) Various sources on the Internet somewhered) The government will probably have something e) You might be able to get this kind of data CHEAPLY from any of these sourcesf) Such data, unfortunately, is rarely cheap; it’s unlikely that you can CHEAPLY get it


test prep21. Johnny Generic runs an unpopular blog in which he discusses all the latest news

in the world of pork rinds. He eats them all day every day. Even though he’s familiar with all the brands of pork rinds, he buys whichever one is cheapest. One day, when he’s in a gas station, he sees a bag of Exploding Hearts brand pork rinds. Which describes Johnny’s relationship with this brand?

a) brand indifferenceb) brand obsessionc) brand recognitiond) brand preferencee) brand rejection


test prep22. The Cockroach Preservation Society collects roaches from many

different insect farms. Billions of them are brought to a single roach warehouse before they are sold in bulk quantities to restaurants across the country. What type of regrouping activity is this?

a) Bulk-breakingb) Sortingc) Retailingd) Accumulatinge) Collecting


test prep23. Which of the following exemplifies primary demand?a) A company making database management software explains why you’d

want to manage datab) A company that makes leather car seats sends out videos to car companies

about the high quality of their materialsc) A pizza restaurant sells appetizers that make you want the pizza even mored) When people buy dog biscuits, it makes them want to buy a doge) The biggest search engine company in the world pretty much defines the

search engine category


test prep24. The idea that when retailers enter the market, they come in as low-

margin businesses that only after time begin to make profit and are able to offer new services is:

A. the wheel of fortune theoryB. the wheel of marketing theoryC. the wheel of retailing theoryD. the wheel in the sky theoryE. the wheels on the bus theory


test prep25. A limited line store (Thoth’s) and a single line store (Seeble’s) are in competition.

Which of the following could best describe them?• A. Thoth’s sells pizzas; Seeble’s sells ovens• B. Thoth’s only sells Colombian neckties; Seeble’s sells menswear from

everywhere• C. Thoth’s sells animatronic dinosaurs; Seeble’s repairs animatronic dinosaurs• D. Thoth’s sells pleather goods; Seeble’s sells only pleather belts• E. Thoth’s sells greasy fried foods that are covered in sauce and which sit under a

heat lamp all day; Seeble’s also sells greasy fried foods that are covered in sauce and which sit under a heat lamp all day


test prep• Know the difference between horizontal and vertical relationships.• Why would you get public warehouse vs. a private one?• Why do new products fail?• What’s involved in inventory costs?• When shipping, what’s the best method?– there is no universally optimal method! It depends on what you’re sending and to who.


exam review This exam review couldn’t possibly cover everything. Read the book chapters, take the quizzes on the website. The quizzes on the website will likely help you. You probably should do the quizzes on the website. DO THE WEBSITE QUIZZES! Any specific questions?


Any other questions?

?


Good luck on the exam!


What is marketing research? How does it differ from a marketing information system? Who should be involved in defining marketing research problems and issues? What are the differences between qualitative and quantitative research? Know when various qualitative and quantitative techniques should be used. Be able to recognize an experiment. What are the 5 steps of the marketing research process? Be able to recognize each step and identify which of the steps is the most important. What is the difference between primary and secondary data? Know the definitions of sample, population, validity and hypotheses.

Chapter 7: Concepts


Chapter 8: Marketing ResearchMarketing research steps – 5 stepsMarketing research steps – 5 steps1. Identify problem – symptoms are not the same as a problem2. Analyze situation – what information do you already have?

ask others, secondary data, internet, databases, government data THEN determine what else you need

3. Get problem specific data through 4 types of researchQuantitative-structured responses, can be tabulated surveys (telephone, personal,

online)Qualitative-in depth, open ended focus group interviewObservation – analyze how people shop or use product consumer panels, people

meterExperiments - compare results of groups similar except for one characteristic

4. Interpret Use statistical packages, decision support systemsIs sample representative of population and valid?

5. Solve problemUse information to recommend and implement solution


Know the definition of a product and be able to identify how products differ from services. What are the consumer product classes, the business product classes (hint: see tables 8-3 and 8-4) – what are they based on? What is the difference between a product line and a product assortment? What is the difference between primary demand and derived demand? What is a brand, what factors contribute to successful branding? When do you use “family” branding? What constitutes a good brand name?

Chapter 8: Concepts


What is a trademark or a service mark? What is the battle of the brands? What is required when a warranty is offered? Be able to recognize the 5 levels of brand familiarity.

Chapter 8: Concepts


Chapter 9: Product management• 4 Stages of the Product Life Cycle

– Market introduction, market growth, market maturity, market decline• New product for a company: a completely new product or variations on

an old product• New product for FTC standards: entirely new or changed in a “functionally

significant or substantial respect”– Company can use term “new” for 6 months

Consumer Product Safety Act (1972)- Promotes safety in product design- Sets safety standards- Can demand recalls and repairs for products- Penalties for negligent companies: fines, jail sentences

Product Liability – legal obligation of sellers to pay damages to individuals injured by defective or unsafe products


Chapter 9: NPD process Idea generation – Collect ideas from within company,

market research, competitors Screening – Find strengths and weaknesses, market trends,

ROI estimate Idea evaluation – Concept testing, reactions from customers,

estimates of costs & profits Development – R&D, develop model or service prototype,

test marketing mix Commercialization – finalize product and marketing plan,

start production, roll out


What are the stages of the product life cycle, what happens with volume and profit in each, how do marketing plans differ in each stage? What is concept testing- at which stage do you employ it? What constitutes a new product according to the text, and according to the FTC? Rate of and reasons for new product failure. What are the steps in the new product development process? What is liability? What do “unsafe” and “defective” mean? What is the role of the CPSC (Consumer Product Safety Commission)?

Chapter 9: Concepts


Chapter 10: Place and Channels• Channels can be either direct or indirect• Discrepancy of quantity: Difference between the amount a firm wants to make

to achieve economies of scale and what a consumer wants• Discrepancy of assortment: Difference between the variety a firm makes and

what a consumer wants• Distribution systems:

– Intensive: Selling a product through everyone who will stock the product• Examples?

– Selective: Selling only through middlemen who will give product special attention• Examples?

– Exclusive: Selling through a single middleman in a certain geographic region• Examples?

– Know when to use each system


What is a channel of distribution? What are the definitions of and reasons for using direct vs. indirect distribution? What is meant by discrepancies of quantity and discrepancy of assortment? Be able to recognize the main regrouping activities. What is reverse distribution? What is the difference between intensive, selective and exclusive distribution, when are they used? What is meant by horizontal and vertical integration? When are distribution arrangements illegal? What is meant by channel conflict? Under what conditions is channel conflict likely to occur?

Chapter 10: Concepts


Chapter 11: Logistics• Logistics includes: 1) transport 2) storage 3) handling of goods• Goal is to meet (but not exceed) customer needs• Customer service level = desired speed/dependability of delivery• Consider tradeoffs between 1) costs, 2) sales, 3) service level• Decisions and alterations have systemic effects• Transportation Tradeoffs: Water, Pipeline, Rail, Truck, Air

cheap/slow –––––––––––––––––––––––– expensive/fast • Proportion of transport cost decreases as cost of product increases• Warehousing: Private (own/lease) vs. Public (rent)

expensive/control –––––––––––––––––––––––– cheap/flexible • Warehousing (store) vs. Distribution (get product out)


What is the physical distribution (PD) concept? What is meant by the “total cost approach” to physical distribution? What is “just in time” distribution? Understand the main transportation options and the pros-and cons of each. What is the difference between a public warehouse, a private warehouse and a distribution center? How is distribution related to customer service?



Chapter 12: Retailers, Wholesalers, & Their Strategy Plan

• Retailing– Covers all of the activities involved in the sale of products to

final consumers– Features of retailer’s offerings that relate to:

• Economic needs: Convenience, Product selection, Special services, fairness in dealings, helpful information, prices

• Social/emotional needs: Social image, shopping atmosphere

• Types of retailers– General stores, single-line (limited-line), specialty shops,

department stores, a discount houses, mass merchandisers, convenience stores, supermarkets, supercenters, convenience, and vending machines.

• Online vs. in-line retailers and customers– Exhibit 12-3


Chapter 12: Retailers, Wholesalers, & Their Strategy Plan

• Wheel of retailing– Says that new types of retailers enter the market as low-

status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices…then threatened by new low-status, low-margin, low-price retailers - - and the wheel continues

• Retail life cycle• Mass-merchandising concept• Scrambled merchandising• Difference between merchant wholesalers and agent middlemen:

– Merchant wholesales own merch., agent middlemen don’t


What are features of a retailer’s product? How do customer needs relate to a retailers offering? What are specialty shops, department stores, a discount houses, mass merchandisers, convenience stores and vending machines? Know differences between online and in-store retailers and customers. What is meant by the “wheel of retailing”? Know trends on retail life-cycles. What is the mass-merchandising concept? What is meant by scrambled merchandising? What is the difference between merchant wholesalers and agent middlemen? Know key merchant wholesalers such as drop shippers and rack jobbers.


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