1. Anatomy of Advertising
Consumer Behavior
and the
Marketing Function
M. Larry Litwin, APR, Fellow PRSA
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© 2009
Or…
A basic understanding of the
Advertising Profession
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2. Portions taken from…
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Portions taken from…
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3. Types of Markets
• A market is a particular type of buyer.
• Share of market is the percentage of a
product category’s total market that buys a
particular brand.
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Ads for Four Types of Markets
• Which is which?
– Consumer
– Business-to-
Business
– Institutional
– Channel
• How are the four
ads different?
• How are they the
same?
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4. Marketing 101
Determine what people need (and
want) and give it to them.
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Marketing
• The exchange of goods and
services from manufacturer to
consumer.
• Strategies that employ the
various elements of the
marketing mix to achieve
marketing objectives.
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5. Marketing Mix
• A plan that identifies the most
effective combination of
promotional activities (IMC).
• The goal is to achieve synergy.
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Synergy’s Parts
• Advertising • Product itself*
• (Sales) Promotion* • Packaging*
• Public Relations* • Policy*
• Direct Marketing • Politics*
• Cause Marketing • Mind Share
• Sponsorship (Brainstorming –
(Partnering) Marketing Intellectual
• Positioning (Place)* Property)
• Personal Selling* • Brand Identity
• Price* • Interactive
* Litwin’s 9 P’s of Marketing
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6. Integrated (Holistic) Marketing
• Focused on better coordinating all marketing
efforts to maximize customer satisfaction.
• All areas of the marketing mix work together to
present the brand in a coherent and consistent
way.
• The goal is to manage all the messages
delivered by all aspects of the marketing mix to
present a consistent brand strategy.
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Ogilvy’s Advertising Tenets
• Here are some advertising tenets that
David Ogilvy offers:
– “Never write an advertisement you wouldn’t want
your own family to read.”
– “The most important decision is how to position
your product.”
– If nobody reads or looks at the ads, “it doesn’t do
much good to have the right positioning.”
– “Big ideas are usually simple ideas.”
– “Every word in the copy must count.”
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7. Defining Modern Advertising
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Advertising 101
• Paid
• (Non) personal communication
• From identified sponsor
• Using (mass) media
• To persuade or influence
• Audience
(Paid – Controlled)
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8. Federal Trade Commission
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Reaching the Desired Outcome
• Attitude
• Opinion
Education > Knowledge > Attitude
> Behavioral Change > Output =
Desired Outcome
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9. Litwin’s 9 P’s of Marketing = Synergy
• Product • Public Relations
• Place (Positioning) • Personal selling
• Price • Policy
• Promotion (Sales) • Politics
• Packaging
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Advertising is Synergy
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10. 19
You Talk – We Listen
Hearing vs. Listening
There is a reason why we have two ears and
one mouth – we must listen twice as
much as we speak.
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11. Audiences (ISPR) or [IFPR]
• Identify
• Segment/Fragment
• Demographically
• Psychographically
• Geodemographically
• Behavioristically
• Benefits
• Profile
• Rank
– Audience Power Structure
• Elite (Key Communicators)
• Pluralistic or Diffused
• Amorphous/Latent
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Demographics – Play 4-6
The vital statistics about the human
population, its distribution and its
characteristics (age, gender, income,
education, etc.). Used for audience
segmentation and fragmentation.
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12. Psychographics – Play 4-7
Psychological characteristics many times
determined by standardized tests. Used for
audience segmentation and fragmentation.
Any attributes relating to personality, values,
attitudes, interests or lifestyles. They are also
called IAO variables (for Interests, Attitudes
and Opinions). Combined with demographics
and geodemographics, psychographics play
a key role in strategic planning.
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Geodemographics – Play 4-8
A contraction of geography and
demographics. A method of combining
geographic and demographic variables.
The demographics of individu-als or
groups who reside in the same
geographic area or region.
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14. Consumer Decision
Process
Low Involvement
• Need Recognition
• Evaluation of Alternatives
• Purchase Decision
• Post-purchase Evaluation
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Consumer Decision Process
High Involvement
• Need Recognition
• Information Search
• Evaluation of Alternatives
• Purchase Decision
• Post-purchase Evaluation
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15. Can it be said that the brand
decision process is the same for
both low and
high-involvement decisions?
Yes
No
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Can it be said that the brand
decision process is the same
for both low and
high-involvement decisions?
a) Yes
b) No
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16. Strategic Message
Commercial Persuasion
Or
Public Relations
“The establishing of reciprocal
understanding between an individual
(advertiser) and a group.”
Edward Bernays
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Superior tactics cannot
overcome a flawed
(business) strategy.
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17. Public Communication
• Public communication is at the heart of our economy,
society and politics. Studios use it to promote their
films. Politicians use it to get elected. Businesses
use it to burnish their image. Advocates use it to
promote social causes.
• It is a field built on ideas and images, persuasion
and information, strategy and tactics. No policy or
product can succeed without a smart (strategic)
message targeted to the right audience in creative
and innovative ways at the ideal time using the
proper channel. The ability to communicate this way
– to communicate strategically – is what Public
Communication is all about.
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MAC Triad
M
+P+T
A C
M=Message A=Audience C=Channel
P=Purpose T=Timing
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18. MAC Triad Plus cont.
• Informization
– Disseminating information (message) to
target audience through the proper channel
at the best possible time.
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Through targeting –
an advertiser can:
• Design specific communication
strategies to match audience needs and
wants
• Best select the right media
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19. 7 C’s of Communication
• Credibility
• Context
• Content
• Clarity
• Continuity and Consistency
• Channels
• Capability
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Advertising is Synergy
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20. Synergy
The whole is greater than
the sum of its parts
or
The whole works better than
any one of its parts.
[To achieve our goal, we should
achieve synergy.]
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Ad Clutter
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21. Ad Clutter
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22. Diffusion Process – AITEA/R
• Create AWARENESS
• Generate INTEREST
• Encourage TRIAL
• EVALUATION
• ADOPTION/Rejection
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AIDA
• Create ATTENTION
• Generate INTEREST
• Develop DESIRE
• Initiate ACTION
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23. Emerging Marketing Strategies
• Relationship Marketing
• Permission Marketing
• Experience Marketing
• Guerilla Marketing
• Digital Marketing
• Viral Marketing
• Mobile Marketing
• Social Network Marketing
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Consumer behavior can be
best described as:
a) How individuals or groups select,
purchase, use, or dispose of products
b) Why individuals or groups select,
purchase, use, or dispose of products
c) The process of satisfying needs and
wants through purchase
d) Communicating needs and wants
through advertising
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24. Consumers can be defined as:
a) Specific types of people who buy a
particular type of brand or product or
patronize a specific type of store
b) The target locations to place the advertising
message
c) Those consumers who have little to no
response to advertising messages
d) People who buy or use products or adopt
ideas that satisfy their needs and wants
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In reality, customers are
specific types of consumers
a) True
b) False
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25. In reality, customers are
specific types of consumers
a) True
b) False
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Is it accurate to say that buyers
may not be the users and users
may not be the buyers?
a) Yes
b) No
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26. Is it accurate to say that buyers
may not be the users and users
may not be the buyers?
a) Yes
b) No
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Social influences on consumer
decisions may include:
a) Perception, learning, motivation,
attitude, and personality
b) Social class, reference groups, family,
and demographics
c) Frequency and innovativeness of
brand usage
d) Placement of advertising message in
geographic location
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27. Psychological influences on
consumer decisions may include:
a) Perception, state of mind, needs,
wants, motivations, and attitudes
b) Social class, reference groups, age,
family status, and demographics
c) Frequency and innovativeness of
brand usage
d) Placement of advertising message in
geographic location
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In many product categories, a
small number of users may buy a
large percentage of the products
a) True
b) False
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28. In many product categories, a
small number of users may buy a
large percentage of the products
a) True
b) False
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Market segmenting means all but:
• Targeting the most profitable prospects
• Dividing the market into groups of
people who have similar characteristics
• Key characteristics make groups more
alike than different
• Key characteristics define how groups
are different from others
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29. Are niche markets really just
sub-segments of more
general markets?
a) Yes
b) No
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Are niche markets really just
sub-segments of more
general markets?
a) Yes
b) No
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30. Emerging Marketing Strategies
• Relationship Marketing
• Permission Marketing
• Experience Marketing
• Guerilla Marketing
• Digital Marketing
• Viral Marketing
• Mobile Marketing
• Social Network Marketing
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Strategy
• The logic and planning behind the ad that
give it direction and focus
• Advertisers develop ads to meet objectives
• Advertisers direct
ads to identified
audiences
• Advertisers create
messages that speak
to the audience’s
concerns
• Advertisers run ads
in the most effective
media to reach the
audience 60
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31. Superior tactics cannot
overcome a flawed
(business) strategy.
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How Agency Are Paid
• Commissions
– A percentage of the media cost
• Fees
– Hourly fee or rate plus expenses and travel
• Retainers
– Amount billed per month based on projected amount
of work and hourly rate charged
• Performance-based
– Based on percentage of sales or marketing budget
• Profit-based
– Greater risk if campaign doesn’t have desired impact
• Value Billing
– Based on value of creative strategy or ideas
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32. Questions ???
M. Larry Litwin, APR, Fellow PRSA
larry@larrylitwin.com
www.larrylitwin.com
© 2009
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