Study Guide

Focus:
ü Knowledge: Some questions will ask about specific concept and issues related to it.
ü Application: You should be able to apply what you've learned in the class.
ü Ability: Some questions might require you to explain or describe.

Types of Questions:
ü Case Study Analysis
ü Terminologies
ü Multiple Choices/ True or False
ü Short Answers/ Essay

Note. This is a guide (and I emphasize the word "guide") to help you study for the exam. Below I have a
list of sub-headings from the text book (11th ed.) with some key terms/concepts you should be familiar
with.

1. Lecture Notes and Class Discussions

• Lecture Slide #2 (from p. 11, “SWOT analysis”)

• Lecture Slide #4 (from p. 52 “consumer decision process”) ~ #9
Ch. 2

• Market segmentation & the process of segmenting a market (p. 51-56)

Market segmentation “is dividing a market into distinct groups that (1) have
common needs and (2) will respond similarly to marketing action. Integral part of
the situation analysis (where companies determine as much as they can about
the market).

Several methods are available for segmenting markets:

Geographic Segmentation In the geographic segmentation approach, markets

are divided into different geographic units. These units may include nations,
states, counties, or even neighborhoods.

Demographic Segmentation Dividing the market on the basis of demographic

variables such as age, sex, family size, education, income, and social class is
called demographic segmentation.

Psychographic Segmentation Dividing the market on the basis of personality,

lifecycles, and/or lifestyles is referred to as psychographic segmentation.

Behavioristic Segmentation Dividing consumers into groups according to their

usage, loyalties, or buying responses to a product is behavioristic segmentation.

Degree of use relates to the fact that a few consumers may buy a
disproportionate amount of many products or brands. Industrial marketers refer
to the 80–20 rule, meaning 20 percent of their buyers account for 80 percent of
their sales volume.

Benefit Segmentation In purchasing products, consumers are generally trying

to satisfy specific needs and/or wants. They are looking for products that provide
specific benefits to satisfy these needs. The grouping of consumers on the basis
of attributes sought in a product is known as benefit segmentation

• Selecting a target market (p. 57-58)

The next phase in the target marketing process involves two steps:
(1) determining how many segments to enter and (2) determining which
segments offer the most potential.

Undifferentiated marketing involves ignoring segment differences and offering

just one product or service to the entire market.

Differentiated marketing involves marketing in a number of segments,

developing separate marketing strategies for each.
 Concentrated marketing is used when the firm selects one segment and
attempts to capture a large share of this market.

• Market positioning & Developing a positioning strategy (p. 58-62)

Positioning has been defined as “the art and science of fitting the product or
service to one or more segments of the broad market in such a way as to set it
meaningfully apart from competition.”

Different ways to position:

Positioning by Product Attributes and Benefits

Marketers attempt to identify salient attributes (those that are important to
consumers and are the basis for making a purchase decision).

Positioning by,
Price/Quality – using value and price.
Use or Application – on basis of use. (Baking soda, has many uses)
Product Class – airlines would compete in terms of transportation.
Product User – positioning to skateboarders.
Competitor – mentioning competitors in ads.
Cultural Symbols – tony the tiger, mascots in general.
Repositioning - a product usually occurs because of declining or stagnant sales
or because of anticipated opportunities in other market positions.

Ch. 4
 The consumer decision making process (Figure 4-1) p.113

Problem recognition, which occurs when the consumer perceives a need and
becomes motivated to solve the problem. The problem recognition stage initiates
the subsequent decision processes.
Like: Out of stock, Dissatisfaction, New needs/wants, Related
products/purchases, Marketer-induced problem recognition, New products.
Just in case (Maslow’s Hierarchy of Needs):

Information search Once consumers perceive a problem or need that can be

satisfied by the purchase of a product or service, they begin to search for
information needed to make a purchase decision.

-Internal search – previously acquired information stored in memory, past

performance.

-External search – Internet sources, personal sources, marketer-

controlled (commercials), public sources, personal experience (handling,
testing product).

Alternative evaluation In this stage, the consumer compares the various brands
or products and services he or she has identified as being capable of solving the
consumption problem and satisfying the needs or motives that initiated the
decision process.

-Evoked set – generally only a subset of all the brands of which the
consumer is aware.
-Evaluative criteria are the dimensions or attributes of a product or
service that are used to compare different alternatives.
-Functional consequences are concrete outcomes of product or service
usage that are tangible and directly experienced by consumers.
-Psychosocial consequences are abstract outcomes that are more
intangible, subjective, and personal, such as how a product makes you
feel or how you think others will view you for purchasing or using it.
 Purchase Decision As an outcome of the alternative evaluation stage, the
consumer may develop a purchase intention or predisposition to buy a certain
brand.

-Brand loyalty a preference for a particular brand that results in its

repeated purchase

Post purchase Decision consumer compares the level of performance with

expectations and is either satisfied (expectations are either met or exceeded) or
dissatisfied (performance is below expectations).

Another possible outcome of a purchase is cognitive dissonance, a

feeling of psychological tension or post purchase doubt that a consumer
experiences after making a difficult purchase choice. (Likely to occur in
important decisions where the consumer must choose among close
alternatives).

Ch. 5

• Basic model of communication (p. 146-158)

The sender, or source, of a communication is the person or organization that

has information to share with another person or group of people.

Encoding, involves putting thoughts, ideas, or information into a symbolic form.

The encoding process leads to development of a message that contains the

information or meaning the source hopes to convey.
 The message may be verbal or nonverbal, oral or written, or symbolic.

The channel is the method by which the communication travels from the source
or sender to the receiver.

Nonpersonal channels are generally referred to as the mass media or

mass communications, since the message they contain is directed to more
than one person and is often sent to many individuals at one time.

Word-of-mouth (WOM) influence that involves informal communication

among consumers about products and services and is a very powerful
source of information.

Buzz marketing is just one of the new names for what used to be known
simply as word-of-mouth communication while terms such as consumer-
generated marketing and viral marketing are also used to describe the
process.

The receiver is the person(s) with whom the sender shares thoughts or
information.

Decoding is the process of transforming the sender’s message back into

thought.

Throughout the communication process, the message is subject to extraneous

factors that can distort or interfere with its reception. This unplanned distortion or
interference is known as noise.

The receiver’s set of reactions after seeing, hearing, or reading the message is
known as a response.

Marketers are very interested in feedback, that part of the receiver’s response
that is communicated back to the sender. Feedback, which may take a variety of
forms, closes the loop in the communications flow and lets the sender monitor
how the intended message is being decoded and received.
• The Response process: AIDA model (p. 161)

The AIDA model was developed to represent the stages a salesperson must
take a customer through in the personal-selling process.

This model depicts the buyer as passing successively through attention, interest,
desire, and action. The salesperson must first get the customer’s attention and
then arouse some interest in the company’s product or service. Strong levels of
interest should create desire to own or use the product. The action stage in the
AIDA model involves getting the customer to make a purchase commitment and
closing the sale. To the marketer, this is the most important stage in the selling
process, but it can also be the most difficult. Companies train their sales reps in
closing techniques to help them complete the selling process.
Ch. 6

• Source factors: source credibility, source trustworthiness, & source

attractiveness (p. 186-201)

Credibility is the extent to which the recipient sees the source as having relevant
knowledge, skill, or experience and trusts the source to give unbiased, objective
information. There are two important dimensions to credibility, expertise and
trustworthiness.

While expertise is important, the target audience must also find the source
believable or trustworthy. Celebrities often miss the mark here as
someone that a consumer would find believable.

A source characteristic frequently used by advertisers is attractiveness, which

encompasses similarity, familiarity, and likability.

Source attractiveness leads to persuasion through a process of

identification, whereby the receiver is motivated to seek some type of
relationship with the source and thus adopts similar beliefs, attitudes,
preferences, or behavior.

• Message factors: message structure & message appeals (p. 204-215)

Marketing communications usually consist of a number of message points that

the communicator wants to get across. An important aspect of message strategy
is knowing the best way to communicate these points and overcome any
opposing viewpoints audience members may hold.

Order of presentation A basic consideration in the design of a persuasive

message is the arguments’ order of presentation.

Presenting the strongest arguments at the beginning of the message

assumes a primacy effect is operating, whereby information presented
first is most effective.

Putting the strong points at the end assumes a recency effect, whereby
the last arguments presented are most persuasive.

Conclusion Drawing Marketing communicators must decide whether their

messages should explicitly draw a firm conclusion or allow receivers to draw their
own conclusions.

A one-sided message mentions only positive attributes or benefits. A two-sided

message presents both good and bad points.
 In a special type of two-sided message known as a refutational appeal,
the communicator presents both sides of an issue and then refutes the
opposing viewpoint.

Verbal versus Visual Messages, take into account what the product is, and
whether the message would be more effective through verbal or visual means.

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One of the advertiser’s most important creative strategy decisions involves the
choice of an appropriate appeal.

Comparative advertising is the practice of either directly or indirectly naming

competitors in an ad and comparing one or more specific attributes.

Fear is an emotional response to a threat that expresses, or at least implies,

some sort of danger. Ads sometimes use fear appeals to evoke this emotional
response and arouse individuals to take steps to remove the threat.

Humor Appeals Humorous ads are often the best known and best remembered
of all advertising messages.

Wearout refers to the tendency of a television or radio commercial to lose its

effectiveness when it is seen and/or heard repeatedly

• Channel factors (p. 215-217)

Personal versus Nonpersonal Channels

Effects of Alternative Mass Media The various mass media that advertisers
use to transmit their messages differ in many ways, including the number and
type of people they reach, costs, information processing requirements, and
qualitative factors.

Effects of Context and Environment Interpretation of an advertising message

can be influenced by the context or environment in which the ad appears.

A qualitative media effect is the influence the medium has on a

message.

Clutter Another aspect of the media environment which is important to

advertisers is the problem of clutter, which has been defined as the amount of
advertising in a medium.
Ch. 7

• The value of objectives (p. 223)

Setting specific objectives for IMC programs is important.

Communications – facilitate coordination

Planning and Decision Making – (elements of promotional mix)
Measurement and Evaluation of Results – make sure objective is measurable

• Marketing vs. communications objectives (p. 224)

Marketing objectives are generally stated in the firm’s marketing plan and are
statements of what is to be accomplished by the overall marketing program
within a given time period.

Integrated marketing communications objectives are statements of what

various aspects of the IMC program will accomplish. They should be based on
the particular communications tasks required to deliver the appropriate
messages to the target audience.

• Sales-oriented objectives (p. 225-228)

To many managers, the only meaningful objective for their promotional program
is sales. They take the position that the basic reason a firm spends money on
advertising and promotion is to sell its product or service.

Factors influencing sales

• Communication objectives (p. 228-232)

Some marketers do recognize the problems associated with sales-oriented

objectives. They recognize that the primary role of an IMC program is to
communicate and that planning should be based on communications objectives.
Ch. 8

• Creative strategy vs. creative tactics (p. 266)

Underlying all of these messages, however, are a creative strategy that

determines what the advertising message will say or communicate and creative
tactics for how the message strategy will be executed.

• Advertising creativity: what is creativity? (p. 270)

Creativity is probably one of the most commonly used terms in advertising.

Ads are often called creative. The people who develop ads and commercials are
known as creative types.

• Determinants of creativity (p. 271)

Advertising creativity is the ability to generate fresh, unique, and

appropriate or relevant ideas that can be used as solutions to
communication problems.

Divergence refers to the extent to which an ad contains elements that are novel,
different, or unusual.

1. Originality. Ads that contain elements that are rare, surprising, or

move away from the obvious and commonplace.

2. Flexibility. Ads that contain different ideas or switch from one

perspective to another.

3. Elaboration. Ads that contain unexpected details or finish and

extend basic ideas so they become more intricate, complicated, or
sophisticated.

4. Synthesis. Ads that combine, connect, or blend normally unrelated

objects or ideas.

5. Artistic value. Ads that contain artistic verbal impressions or

attractive shapes and colors.

• Creative brief (p. 286-287)

The written creative brief specifies the basic elements of the creative
strategy. Different agencies may call this document a creative platform or work
plan, creative blueprint, or creative contract.
 • The search for the major selling idea (p. 290)

An important part of creative strategy is determining the central theme that

will become the major selling idea of the ad campaign.

Some advertising experts argue that for an ad campaign to be effective it

must contain a big idea that attracts the consumer’s attention, gets
a reaction, and sets the advertiser’s product or service apart from the
competition’s. The search for that great slogan.

• Developing the major selling idea: USP, image advertising, inherent drama
(p. 291-294)

It is difficult to pinpoint the inspiration for a big idea or teach advertising

creatives an easy way to find one.

Best known approaches:

• Using a unique selling proposition
1. Each advertisement must make a proposition to the consumer. Not just
words, not just product puffery, not just show-window advertising. Each
advertisement must say to each reader: “Buy this product and you
will get this benefit.”
2. The proposition must be one that the competition either cannot or does
not offer. It must be unique either in the brand or in the claim.
3. The proposition must be strong enough to move the mass millions, that
is, pull over new customers to your brand.

• Creating a brand image

In many product and service categories, competing brands are so similar
that it is very difficult to find or create a unique attribute or benefit to
use as the major selling idea.
The creative strategy used to sell these products is based on the
development of a strong, memorable identity for the brand through
image advertising.
 • Finding the inherent drama
Another approach to determining the major selling idea is finding the
inherent drama or characteristic of the product that makes the
consumer purchase it.

• Positioning
The basic idea is that advertising is used to establish or “position”
the product or service in a particular place in the consumer’s mind.
Positioning is done for companies as well as for brands.

Ch. 9

• Advertising appeals: informational/rational vs. emotional appeals vs.

combining rational and emotional appeals (p.303- 309)

The advertising appeal refers to the approach used to attract the attention
of consumers and/or to influence their feelings toward the product, service, or
cause.

Informational/rational appeals focus on the consumer’s practical,

functional, or utilitarian need for the product or service and emphasize
features of a product or service and/or the benefits or reasons for owning or
using a particular brand.

Emotional appeals relate to the customers’ social and/or psychological

needs for purchasing a product or service. Many consumers’ motives for their
purchase decisions are emotional, and their feelings about a brand can be
more important than knowledge of its features or attributes.

In many advertising situations, the decision facing the creative specialist is

not whether to choose an emotional or a rational appeal but, rather,
determining how to combine the two approaches

Consumer purchase decisions are often made on the basis of both

emotional and rational motives, and attention must be given to both
elements in developing effective advertising.

• Advertising execution (p. 311- 319)

 Once the specific advertising appeal that will be used as the basis for the
advertising message has been determined, the creative specialist or team begins
its execution. Creative execution is the way an advertising appeal is presented.

Frequently used execution approaches:

• Straight-sell or factual message

• Scientific/technical evidence
• Demonstration
• Comparison
• Testimonial
• Slice of life
• Animation
• Personality symbol
• Imagery
• Dramatization
• Humor
• Combinations

3. Book Reviews

Should be able to list all key rules from your assigned reading and apply to the IMC.

*Refer to slides on Canvas lol*