Advertising Quiz 1 (Chapters 1-3)

nutritional labeling and education act

a 1994 congressional law setting stringent legal definitions for terms such as fresh, light, low fat, and reduced calorie; setting standard serving sizes; and requiring labels to show food value for one serving alongside the total recommended daily value as established by the National Research Council

services

a bundle of benefits that may or may not be physical, that are temporary in nature, and that come from the completion of a task

broadcast standards department

a department at a TV network that reviews all programs and commercials to be broadcast to see that they meet all applicable standards

digital video recorder

a device that is similar to a VCR, but records programs on a hard drive in digital format, providing high-quality image and sound and the ability to "pause live tv"

sales promotion

a direct inducement offering extra incentives all along the marketing route- from manufacturers through distribution channels to customers- to accelerate the movement of the product from the producer to the consumer

consent decree

a document advertisers sign, without admitting any wrongdoing, in which they agree to stop objectionable advertising

incentive system

a form of compensation in which the agency shares in the client's success when a campaign attains specific, agreed-upon goals

patents

a grant made by the government that confers upon the creator of an invention the sole right to make, use, and sell that invention for a set period of time

industrial age

a historical period covering approximately the first 70 years of the twentieth century. this period was marked by tremendous growth and maturation of the U.S. industrial base. it saw the development of new, often inexpensive brands of the luxury and convenience goods we now classify as consumer packaged goods

branding

a marketing function that identifies products and their source and differentiates them from all other products

straight-fee

a method of compensation for ad agency services in which it, or retainer, is based on a cost-plus-fixed fees formula; under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies by some factor

media

a plural form of medium, referring to communications vehicles paid to present an advertisement to their target audience; most often used to refer to radio and television networks, stations that have new reporters, and publications that carry news and advertising

fee-comission combination

a pricing system in which an ad agency charges the client a basic monthly fee for its services and also retains any media commissions earned

markup

a source of agency income gained by adding some amount to a supplier's bill, usually 17.65 percent

centralized advertising department

a staff of employees, usually located at corporate headquarters, responsible for all the organization's advertising; it is often structured by product, advertising sub function, end user, media, or geography

institutional advertising

a type of advertising that attempts to obtain favorable attention for the business as a whole, nor for a specific product or service the store or business sells; the effects of it are intended to be long term rather than short range

sale advertising

a type of retail advertising designed to stimulate the movement of particular merchandise or generally increase store traffic by placing the emphasis on special reduced prices

unfair advertising

according to the FTC, advertising that causes a consumer to be "unjustifiably injured" or that violates public policy

deceptive advertising

according to the FTC, any ad in which there is a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment

social responsibility

acting in accordance to what society views as best for the welfare of people in general or for a specific community of people

subliminal advertising

advertisements with messages (often sexual) supposedly embedded in illustrations just below the threshold of perception

affirmative disclosure

advertisers must make known their product's limitations or deficiencies

international agencies

advertising agencies that have offices or affiliates in major communication centers around the world and can help their clients market internationally or globally

national agencies

advertising agencies that produce and place the quality of advertising suitable for national campaigns

local agencies

advertising agencies that specialize in creating advertising for local businesses

local advertising

advertising by business within a city or county directed toward customers within the same geographical area

product advertising

advertising intended to promote goods and services; also a functional classification of advertising

comparative advertising

advertising that claims superiority to competitors in some aspect

regional agencies

advertising that focuses on the production and placement of advertising suitable for regional campaigns

in-house agency

agency wholly owned by an advertiser and set up and staffed to do all the work of an independent full-service agency

art directors

along with graphic designers and production artists, individuals who determine how the ad's verbal and visual symbols will fit together

public service announcement

an advertisement serving the public interest, often for a nonprofit organization, carried by the media at no charge

full-service advertising agency

an agency equipped to serve its clients in all areas of communication and promotion; its advertising services include planning, creating, and producing advertisements as well as performing research and media selection services; nonadvertising functions include producing sales promotion materials, publicity articles, annual reports, trade show exhibits, and sales training materials

general consumer agency

an agency that represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly by consumers

speculative presentation

an agency's presentation of the advertisement it proposes using in the event it is hired; it is usually made at the request of a prospective client and is often not paid for by the client

copyright

an exclusive right granted by the Copyright Act to authors and artists to protect their original work from being plagiarized, sold, or used by another with their express consent

consumer advocate

an individual or group that actively works to protect costumer rights, often by investigating advertising complaints received from the public and those that grow our of their own research

medium

an instrument or communications vehicle that carries or helps transfer a message from the sender to the receiver

marketing

an organizational function and a set of process for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

trademark

any word, name, symbol, device, or any combination thereof adopted and used by manufacturers to identify their goods and distinguish them from those manufactured or sold by others

web design houses

art/computer studios that employ specialists who understand the intricacies of HTML and Java programming languages and can design ads and Internet Web pages that are both effective and efficient

externalities

benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction and didn't pay for the product

printers

businesses that employ or contract with highly trained specialists who prepare artwork for reproduction, operate digital scanning machines to make color separations and plates, operate presses and collaging machines, and run binderies

national advertisers

companies that advertise in several geographic regions or throughout the country

research suppliers

companies that conduct and analyze marketing resesarch

art studios

companies that design and produce artwork and illustrations for advertisements, brochures, and other communication devices

regional advertisers

companies that operate in one part of the country and market exclusively to that region

production houses

companies that specialize in film or video production

advertisers

companies that sponsor advertising for themselves and their products

media commission

compensation paid by a medium to recognized advertising agencies, traditionally 15 percent (16 2/3 percent for outdoor) for advertising placed with it

primary demand

consumer demand for a whole product category

selective demand

consumer demand for the particular advantages of one brand over another

multinational corporations

corporations operating and investing throughout many countries and making decisions based on availabilities worldwide

narrowcasting

delivering programming to a specific group defined by demographics and/or program content, rather than mass appeal. usually used to describe cable networks. the opposite of broadcasting

ethical advertising

doing what the advertiser and the advertiser's peers believe is morally right in a given situation

ideas

economic, political, religious, or social viewpoints that advertising may attempt to sell

consumer packaged goods

everyday-use consumer products packaged by manufacturers and sold through retail outlets. generally these are goods such as food and beverages, health and beauty care, cleaning products, and detergents that get used up and have to be replaced frequently

substantiation

evidence that backs up cited survey finding or scientific studies that the FTC may request from a suspected advertising violator

puffery

exaggerated, subjective claims that can't be proven true or false such as "the best", "premier", or "the only way to fly"

marketing mix

four elements, called the 4Ps (product, price, place and promotion), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy

creative director

head of a creative team of agency copywriters and artists who is assigned to a client's business and who is ultimately responsible for the creative product- the form the final ad takes

sales promotion department

in larger agencies, a staff to produce dealer ads, window posters, point-of-purchase displays, and dealer sales material

advertising agencies

independent organizations of creative people and businesspeople that specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers; they also arrange for or contract for purchases of space and time in various media

product differentiation

manufacturers portraying their brands as different from and better than similar competitive products through advertising, packaging, or physical product differences

cease-and-decist order

may be issued by the FTC if an advertiser won't sign a consent decree; prohibits further use of an ad

corrective advertising

may be required by the FTC for a period of time to explain and correct offending ads

international media

media serving several countries, usually without change, that is available to an international audience

global marketers

multinationals that use a standardized approach to marketing and advertising in all countries

stereotypes

negative or limiting preconceived beliefs about a type of person or a group of people that do not take into account individual differences

privacy rights

of or pertaining to an individual's right to prohibit information from being divulged to the public

suppliers

people and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production

consumers

people who buy products and services for their own, or someone else's, personal use

copywriters

people who create the words and concepts for ads and commercials

postindustrial age

period of cataclysmic change, starting in about 1980, when people first became truly aware of the sensitivity of the environment in which we live

preindustrial age

period of time between the beginning of written history and roughly the start of the nineteenth century, during which the invention of paper and the printing press and increased literacy gave rise to the first forms of written advertising

mass media

print or broadcast media that reach very large audiences; includes radio, television, newspapers, magazines, and billboards

retainer method

same as a straight-fee

cookies

small pieces of information that get stored on your computer when you download certain web sites. they can keep track of whether a certain user has ever visited a specific site. this allows the web site to identify returning users and to customize the information based on past browsing or purchase behavior

consumerism

social action designed to dramatize the rights of the buying public

intellectual property

something produced by the mind, such as original works of authorship including literary, dramatic, musical, artistic, and certain other "intellectual" works, which may be legally protected by copyright, patent, or trademark

abundance principle

states that an economy produces more goods and services than can be consumed; in such an economy, advertising serves two important purposes; it keeps consumers informed of their alternatives, and it allows companies to compete more effectively for consumer dollars

market segmentation

strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product's utility

group system

system in which an ad agency is divided into a number of little agencies or groups, each composed of an account supervisor, account executives, copywriters, art directors, a media director, and any other specialists required to meet the needs of the particular clients being served by the group

goods

tangible products such as suits, soap, and soft drinks

demarketing

term coined during the energy shortage of the 1970s and 80s when advertising was used to slow the demand for products

advertising strategy

the advertising objective declares what the advertiser wants to achieve with respect to consumer awareness, attitude, and preference; it describes how to get there; it consists of two strategies: the creative strategy and the media strategy

positioning

the association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer

traffic department

the department in an ad agency that coordinates all phases of production and makes sure everything is completed before the deadline

production department

the department in an ad agency that is responsible for managing the steps that transform creative concepts into finished ads and collateral materials

unique selling proposition

the distinctive benefit that make a product different than any other. the reason marketers believe consumers will buy a product even though it may seem no different from many others just like it

decentralized system

the establishment of advertising departments by products or brands or in various divisions, subsidiaries, countries, regions, or other categories that suit the firm's needs, which operate with a major degree of independence

added value

the increase in worth of a product or service as a result of a particular activity. in the context of advertising, it is provided by the communication of benefits over and above those offered by the product itself

brand managers

the individual within the advertiser's company who is assigned the authority and responsibility for the successful marketing of a particular brand

foreign media

the local media of each country used by advertisers for campaigns targeted to consumers or businesses within a single country

departmental system

the organization of an ad agency into departments based on function: account services, creative services, marketing services, and administration

product

the particular good or service a company sells

word of mouth advertising

the passing of information, especially product recommendations, by verbal communication, in an informal, unpaid, person-to-person manner, rather than by advertising or other forms of traditional marketing

industrializing age

the period of time from the mid-1700s through the end of World War I when manufacturers were principally concerned with production

advertising manager

the person that performs all the administrative, planning, budgeting, and coordinating functions; they may lay out ads, write ad copy, and select the media

integrated marketing communications

the process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to make constructive contact with the company/brand through a variety of media

media planning

the process that directs advertising messages to the right people in the right place and the right time

cooperative advertising

the sharing of advertising costs by the manufacturer and the distributor; the manufacturer may repay 50 or 100 percent of the dealer's advertising costs or some other amount based on sales

marketing strategy

the statement of how the company is going to accomplish its marketing objectives; it is the total directional thrust of the company, that is, the how-to of the marketing plan, and is determined by the particular blend of the marketing mix elements (the 4Ps), which the company can control

advertising

the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products (goods, services, and ideas) by identified sponsors through various media

endorsements

the use of satisfied customers and celebrities to endorse a product in advertising

testimonials

the use of satisfied customers and celebrities to endorse a product in advertising

marketing communications

the various efforts and tools companies use to initiate and maintain communication with customers and prospects including solicitation, publicity, telemarketing, statement stuffers, and coupons, to mention just a few

copy

the words that make up the headline and message of an ad or commercial

classified advertising

used to locate and recruit new employees, offer services, or sell or lease new and used merchandise