Advertising Procedure

• Communication with various internal and external publics to create an image for a product or corporation
• helps organization and its publics adapt mutually to each other
• primary benefit of PR is that it is perceived as higher audience credibility than ad
• key to successful PR is to view it as a complement rather than a competitor to ad
• PR and ad should work in concern to get the brand message to as many prospects as possible
• unlike ad, a PR message is ultimately controlled by media

• most successful brnads are those with features and benefits unique within a product category and those that hold a differentiated position un the minds of consumers
• It is ads job to turn product benefits into an attention getting story, that appeals to prospective buyers

• written or spoken part of trademark, in contrast to the pictorial mark, a trademark word
• established brand name that customers recognize and respect in one of the most valued assets of a company
• one of the principal uses of ad is to enhance brand familiarity awareness in the minds of consumers by emphasizing consumer benefits of a product

• new product introductions under an existing brnad to take advantage of existing brand equity
• fierce competition and the difficulty of entering new markets caused companies to consider brand extrntion rather than brand innovation as a strategy for product introduction
• problem of brand extension is that successful brands have defined a special picture in the mind of consumers

1. saving money by not needing to build awareness for a new unknown brand name
2. adding equity to an existing brand name with a successful extension

1. damaging a conebrand in the minds of loyal consumers with failed introduction
2. losing marketing focus on your existing brand and for diluting marketing efforts ad budget across several brands

• circumstance in which a target audience regards a product as different from others in the category
• meaningful product differentiation exists only if consumers perceive it as an important distinction
• when there are no real or perceived differences among brands, products are viewed as commodities and purchase decisions are based on the price
• important element of differentiation is keeping an open mind about how to achieve it
• often involves minor changes in either a product or the position communicated by ads
• too often when companies search for product differentiation, they concentrate on product function

• As companies set about to differentiate their products, they should remember that product differentiation is also a means of target marketing
• Firms have a special responsibility as they develop a brand-differentiation strategy. The best and most successful products demonstrate valuable differences from their competitors

• most often dictated by favorable consumer perceptions of the value of the product - partly created by ads
• primary function of ad is to create or enhance a positive gap between price of product and value the average consumer assigns to the product
• the greater this value gap is the more insulated the product is from the price competition
• concept of value gap emphazises the notion that price alone is not a particularly safe means of establishing a long-term, competitive advantage
• Yeald management: Product pricing strategy to control supply and demand

• Corporate preference for various segments of marketing communication channels -> as a number of major companies experiment with marketing through the internet, event marketing word-of.-mouth marketing and PR, we will continue to see a trend to supplement or replace dollars previousy spent in traditional ad media
• High sales volume tends to lower ad-to-sale ratios -> companieswith high sales volumes tend to spend less on ad as a percentage of sales
• industries with a number of competing firms and for extensive competition
• product categories with widespread competition and little perceived product differentiation -> high level of expenditures in the car industry reflects the degree of competition among major manufacturers as they try to maintain or enhance market share
• reversing sales market share declines -> ad is generally seen a tool to increase sales and expand customer usage, also used as defensive weapon to halt declines in market share and sales volume

• ad by marketers of a trademark product or service sold through different outlets in contrast to local ads
• tends to be general in terms of product information
• need of communication more closely with targeted consumers has caused national ads to take on a more personalized tone during the past decade

• the most important change in retailing is the more from local regional stores with anywhere from one to a dozen outlets to national chains operating throughout the country
• more and more the retail category is dominated by one or two retailers
• the move to national retailing has significant ramifications for NP and local radio stations -> NP are seeing a dramatic ad spending shifts as retailers move to national promotional plans

• building consumer demand by promoting ingredients in a product
• most commonly employed by manufacturers of ingredients used in consumer products
• successful end-prduct ad bulds a consumer demand for an ingredient that will help in the sale of product
• have to create meaningful differentiation for consumer purchase decisions

• any form of ad done indirect marketing
• uses all types of media: direct mail, television ...
• largest sector od direct response ad is direct mail

• one of the fastest-growing categories of ad and requires a much different strategy than consumer ad
• tends to be fact orientated with few of the emotional appeals found in consumer ad
• purchases in B2B tend to be fairly straight forward
• purchase decisions made by companies involves many people including those who do the actual buying those who directly or indirectly influence this decision and the employees who will actually use the product or service
• organizational and industrial products are often bought according to prelise, technical specifications that require significant knowledge about the product categoryon the part of both buyers and sellers
• impulse buying is rare

Trade ad

• ad directed to the whole sae or retail merchants or sales agencies through whom the product is sold
• emphasized product profitability and the consumer advertising support retailers will receive from manufacturers
• trade ad promotes products and services that retailers need to operate their busniess
• trade ad has several objectives

1. gain additional distribution
2. increase trade support
3. annouce consumer promotions

• adresses to manufacturers who buy machinery equipment, raw materials and the components needed to produce the goods they sell
• purchase of industrial equipment is usually a complex process that includes a number of decision makers

• directed at those in professions such as medicine law etc. who are in a position to recommend the use of a particular product or service to their clients

• done by an organizazion speaking of its work views and problems as a whole, to gain public goodwill and support rather than to sell specific product. Sometimes callec PR-Ad

• A name, term, sign, design or a unifying combination of them intended to identify and destinguish the product or service from competing products or services
• represents the most powerful link between offer and consumer
• a promise that it will help the user make or save money, look better feel great

• in mid 1880's there were no brands and littel quality control by manufacturers
• manufacturers had to offer the best deals to wholesalers to get their products disributed -> sqeeze of profits -> manufacturers decided to differenciate their products from competition
• manufacturers gave their products names, obtained patents and used ads -> concept of branding was born

• thanks to digital changes and the internet, ad is going though its first true paradigmen shift
• result: revolutionary change in media tools and whole bews way to connect

• branding today is not about media, it's about the idea
• in the digital age it is absolutely crutial to understand the value of each branding channel and its relevance to a particular audience

• branding is about a deep understanding of a brand's one-on-one relationship with people, considered in the context of a masscompetitive environment

• digital allows the world to determine weather a brand is practising ehat it purchases
• your brand and the brand organization must perform behave and satisfy the consumer's needs as they expect

• today, a brand's equity is best strenghtened through the integrated use of all marketing communication tools working from a single strategy
• IMC refers to all messages directed to a consumer on behalf of the brand: ads, promotion, PR, direct response, events, 
• when customers have a coherent experience whenever and whereever they come across you brand you have achieved integration

• the value of how such people as customers, distributors and salespeople think and feel about a brand relative to its competition over a period of time
• most important factor in determing the actual value of a brand is its equity in the market

1. brand equity admit analysis
2. strategic options and recommendations
3. brand equity research
4. creative brief

• brand awareness - top of mind is best
• market share, priceelasticity, share of vioce and similar factors
• brand sensitivity - the relative importance of the brand to other factors involved in the purchase, such as price, pack size etc.
• consistency of the brand's communication over time
• image attribute ratings or ranking attributes
• distribution, pricing, product quality and product information
• brand loyalty - the strength of a brand rather than as a product

• short statement that clearly defines our audience, how consumers think or feel and behave, ehat communication is
• intended to achieve and promise that will create a bond between the consumer and the brand
• typical strategy would include the following:

- key observations

- communication objective

- consumer insight

- promise

- support

- audience

- mandatories

• by using a long-term approach a great brand travels wordlwide, speak to multiple consumer segments simultaniously and create economies of scale by which you can earn solid margins over the long term

• almost any product offers an opportunity to create a frame of mind that is unique

• almost any product offers an opportunity to create a frame of mind that is unique

• to keep a brand alive over the long haal, you have to do sth. new, sth. unexpected
• it has to relate to the brand's core position