1. Sammy Lee 1 Perley Isaac Reed School of Journalism ADV 421 Advertising Research Marcom Process/ IMC Perley Isaac Reed School of Journalism

2. Sammy Lee West Virginia University 2 Trivia Questions Out of 100 new products launched in the US, how many products will remain in the market after 1 year? Out of 100 new products launched in the US, how many product launches are considered “successful” after 1 year?

3. How many are successful campaigns? One average, Americans are exposed to 400- 500 ads (excluding online ads) per day Out of 100 advertising campaigns, how many campaigns are considered successful?  Less than 50  Less than 30  Less than 10  Less than 5  Could be just one 1 Sammy Lee West Virginia University 3

4. Sammy Lee West Virginia University 4 “New Coke” Fiasco 1986 was a centennial year for Coke Coke was losing market share despite the fact that Coke was outspending Pepsi by $100M annually Pepsi had been using “Pepsi Challenge” theme for years and in mid-1980s, the campaign paid off In April 1985, Coke introduced “New Coke,” which tasted similar to Pepsi Prior to the introduction, a series of consumer tests and test-marketing were done; all favored the introduction Within a few months of introduction, Coke pulled out “New Coke” from the market

5. Sammy Lee West Virginia University 5 “New Coke” Fiasco What’s up with New Coke?  Research myopia “Scientific research can answer all the questions” Coke spent $4M with 200,000 interviews  Research mistakes Taste test: “Pepsi Challenge”  one sip (Pepsi’s blind-test) vs. a glass (Coke’s blind- test)  Factors research may have not empirically accounted for Consumer loyalty, sentimental value FGI vs. Survey ----

6. Suppose this! Suppose you are a marketer of an energy drink brand. You have just received information that your competitor is planning to launch a new brand in the market and it may impact your market share. Your management has decided to launch a product that can compete with the competitor’s new product and given the task to you. List the things you have to do as a marketer. What do you have to know for your task.  Sammy Lee West Virginia University 6

7. Suppose this! Suppose you are a CD in an agency. You’ve been working on an energy drink campaign more than a month, but have not come up with any good ideas. You realize that you need to do some research. What do you have to do and what do you need to know? What do you have to do?  What do you need to know?  Sammy Lee West Virginia University 7

8. Sammy Lee West Virginia University 8 Brief Marketing Process Business Plan Product Dev’t Mkt’g Plan Place Pricing Promotion SPPRADDMPS Agency Brief SP Plan PR Plan AD Plan DM Plan MarCom Implementation Results Feedback 4Ps

9. Sammy Lee West Virginia University 9 Brief Advertising Process Agency Brief Situation Analysis CustomerCompanyCompetition Objectives Segmentation/Targeting Creative Strategy Media Analysis Creative Development Implementation Evaluation

10. Why do professors have to do research? 1. To make money 2. To be happy 3. Because they have to 4. To brag about their research to students 5. All of the above 6. None of the above Sammy Lee West Virginia University 10

11. Sammy Lee West Virginia University 11 Public vs. Private Research Public (basic; academic) Research Private (applied; industry) Research ---- Type of Research

12. Sammy Lee West Virginia University 12 Public vs. Private (Industry) Research* PublicPrivate Focus Theory, Process, Results Goals Understanding Building knowledge Facilitation of decision Beneficiary Society (public) Institution (proprietary) Cost Typically minimal Typically costly * Relative explanations ----