COMM 317 EXAM 1

Market

(1) The place where the exchange between seller and buyer took place. (2) A particular type of buyer.

Five Basic Components of Modern Advertising

1. Paid communication, 2. Sponsor is identified, 3. Reaches large audience, 4. Seeks to inform, persuade, or influence consumers, 5. Conveyed through impersonal mass media, or interactive media

The Marketing Plan

A document that proposes strategies for using marketing elements to achieve marketing objectives.

Added Value

A marketing or advertising activity makes the product more valuable, useful, or appealing to the consumer.

Campaign

A set of ads developed as a part of an advertising plan. Used in different media, at different times, and for different segments of the audience.

Business to business (B2B)

A type of advertising where marketing communication is sent from one company to another. Includes messages directed at companies distributing products as well as industrial purchasers and professionals. NOT directed at general consumers

Institutional Market

A wide variety of nonprofit organizations, such as hospitals, government agencies, and schools, that provide goods and services for the benefit of society.

Logo

A word, symbol, or design that identifies a product and indicates it's source.

Nonprofit

Advertising for organizations such as charities, foundations, associations, hospitals, orchestras, museums, and religious institutions.

The Societal Role

Advertising informs consumers about innovations and issues, mirrors fashion and design trends, teaches consumers about new products, helps shape consumer self-image, perpetuates self-expression.

Account

Agency term for the advertiser.

Cooperative Advertising

Allowances in which the producers share with the reseller the cost of placing the advertisement

Interactivity

Allows customers to express their needs and wants directly to the firm in response to its marketing communications

Lead Generation

An advertisement or a direct-mail piece announcing a new product may invite potential prospects to contact the company.

Soft-sell

An advertising approach that builds an image for a brand and touches consumers' emotions. Appeals to consumers making a decision on nonprice benefits.

Hard-sell

An advertising approach that uses reasons to persuade consumers. Advertising is seen as a vehicle for helping consumers assess value through price cues and other information.

Marketing

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

Globalization

As advertisers more into new international markets, ad agencies are forming large multinational operations with international research and media-buying capabilities.

Supplier

Assists advertisers, agencies, and the media in creating and placing the ads.

The Economic Role

Because advertising reaches large groups of potential consumers, it brings cost efficiency to marketing and, thus, lower prices to consumers.

The Product

Both the object of the advertising and the reason for marketing. Includes design and development, operation and performance, branding, and the physical dimensions of packaging.

The Functions of Advertising

Builds brand and product awareness, provides information, creates brand image, persuades people, provides incentives to take action and brand reminders, reinforces past purchases and brand experiences.

Strengths of Advertising

Can reach a large audience, Introduces product and brands, Builds awareness of products and brands, Creates brand images, Provides information, Reminds and reinforces, Persuades

Big Ideas

Clever creative concepts that catch people's attention and stick in their memory.

Media Planning & Buying

Communication channels that reach a broad audience. HOW to deliver the message is just as important as coming up with the creative idea of the message.

Business-to-Business Market

Companies that buy products or services to use in their own businesses or in making other products.

Advertising Objectives

Direct ads to identified audiences, create messages that speak to the audience's concerns, run ads in the most effective media to reach the audience.

Pull Strategies

Directs marketing efforts at the consumer and attempts to pull the product through the channel by intensifying consumer demand. Emphasize consumer advertising with incentives.

Push Strategy

Directs marketing efforts to the product, may be first targeted at resellers to gain their acceptance, then at consumers through joint manufacturer reseller advertising.

Creative Execution

Effective ads adhere to the highest production values in the industry. Often sets the standard or establishes the cutting edge for printing, broadcasting, and Internet design.

New advertising

Electronic media are changing the media landscape and making more intimate, interactive, and personalized forms of communication much more important to advertisers.

Personal Sales

Face-to-face contact between the marketer and a prospective customer, rather than contact through media.

External Agency

Full-Service, Media Specialists, Creative Boutiques, Vendors (freelance writers, lighting specialists, etc.)

The Communication Role

Gets attention, provides information and sometimes a little bit of entertainment, and tries to create some kind of response.

Advertising Agency

Has strategic and creative expertise, media knowledge, workforce talent and negotiating abilities. Creates, produces, and distributes the advertising.

Targeting

Identifying the people who are the desired audience for the advertising message.

Synergy

If coordinated correctly, individual messages have more impact working jointly to promote a product than they would on their own.

The Marketing Role

Includes Product Category, Marketing Mix, Brand, and Target Market

Product-driven Philosophy

Marketers develop a product and then try to find a market for it.

Key Strategic Decisions

Marketing planners use research to develop strategies for approaching their markets. These strategies in turn give direction to the planning of advertising.

Channel Market

Members of the distribution chain, which is made up of businesses called resellers, or intermediaries.

Modern Advertising

Paid persuasive communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with a target audience (buyers) and provide information about products (goods, services, and ideas)

Consumer Market

People who buy products and services for personal or household use.

Brand Equity

Refers to the value based on the brand's reputation and meaning that the brand name has acquired over time. It measures the financial value that the brand contributes to the company.

Strengths, weaknesses, opportunities, threats

SWOT situational analysis

In-House Agency

Select the agencies, coordinate activities with vendors (media, production, photo), manage work schedule, and determine whether the work has achieved prescribed objectives. Allows companies to control their advertising, brand image, and statement.

Medium

Singular of media, refers to only one from.

Age of Print

Stage 1 in the development of Advertising. Looks like what we call classified advertising today.

Emergence of consumer society

Stage 2 in the development of Advertising. End of 19th century, began to give goods brand names. Beginning of what we now recognize as the advertising industry.

Modern advertising era

Stage 3 in the development of Advertising. Early 20th, advertising adopted scientific research techniques.

Age of agencies

Stage 4 in the development of Advertising. After WWI, development of the agency world and management of advertising. Creation of concepts: account services, brand name, status appeal

The creative era

Stage 5 in the development of Advertising. 60s/70s, a period marked by the resurgence of art, inspiration, and intuition.

The accountability era

Stage 6 in the development of Advertising. Starting in the 70s, this period began an industry-wide focus on effectiveness. Advertising agencies recognized that advertising had to pay its own way to prove its value.

Age of social responsibility

Stage 7 in the development of Advertising. Late 1990s, corporations were challenged by shareholders and community members on questions of civil obligation/involvement and insensitivity to diverse viewpoints.

Research

Step 1 in the Marketing Process. Look at the consumer market and the competitive marketplace and develop a situational analysis

Objectives

Step 2 in the Marketing Process. Also a Key Strategic Decision. Establish these for the marketing effort.

segmenting, targeting

Step 3 in the Marketing Process. Also a Key Strategic Decision. Assess customer needs and wants relative to the product; separate the market into groups that are likely to respond; direct at specific markets

Differentiate, Position

Step 4 in the Marketing Process. Also a Key Strategic Decision. _____________ and __________ the product relative to the competition.

Marketing Mix Strategy

Step 5 in the Marketing Process. Developed by selecting product design and performance criteria, pricing, distribution, and marketing communication.

Evaluate

Step 6 in the Marketing Process. Assess the effectiveness of the strategy.

Steps to Effective Advertising

Strategy --> Creative Idea --> Execution --> Media

Vehicle

Term for a media that carries the message from advertiser to the audience, and response from audience back to advertiser. Also companies.

Customer

Term refers to someone who has purchased a specific brand or visited a specific retailer.

Exchange

The act of trading a desired product or service to receive something of value (money) in return.

Retail

The advertising message announces facts about products that are available in local stores. Objectives are to stimulate store traffic and create a distinctive image.

Account Manager

The agency term for the person in charge of the advertiser's business.

Agency of Record (AOR)

The agency that does most of the marketing business for a big company.

Pricing

The amount a product or service is offered for sale and the level of profitability that establishes.

Creative Concept

The central idea that grabs the consumer's attention.

Media

The channels of communication that carry the message from the advertiser to the audience.

Advertiser

The company or organization that uses advertising to send out a message about its products; initiates effort by identifying a problem that advertising can solve; approves audience, plan, and budget; hires the agency.

Product Differentiation

The concept behind competitive advantage. Includes price, design, performance, distribution, and brand image.

Target Audience

The desired group of people to receive the message. Data-gathering technology improves accuracy of information about customers.

Product, Price, Place, Promotion

The four Ps

Consumer

The general term for people who buy and use products and services. Similar to phrase "general public."

Market Coverage Strategy

The geographic distribution of the product, which is particularly important for the media strategy.

Suppliers (Vendors)

The group of service organizations that assist advertisers, advertising agencies, and the media in creating and placing the ads.

Strategy

The logic and planning behind the ad that give it direction and focus.

create solutions for customers' problems

The marketing concept aims to...

Distribution

The mechanism for delivering the product and handling the exchange of payment for the product. Includes the channels used in moving the product from the manufacturer to the buyer.

Brand

The most visible type of advertising is national consumer advertising. Focuses on the development of a long-term identity and image.

The Marketing Concept

The philosophy that suggests marketing should focus first on identifying the needs and wants of the customer rather than on finding ways to build and sell products that consumers may or may not want.

Integrated Marketing Communication (IMC)

The practice of unifying all marketing communications messages and tools so they send a consistent, persuasive message promoting the brand's goals.

Marketing

The process a business uses to satisfy consumer needs and wants by providing certain goods and services.

Channel Marketing

The process of targeting a specific campaign to members of the distribution channel, is more important now that manufacturers consider their distributors to be partners in their marketing programs.

Brand Image

The special meaning for a product that is the result of communication and the consumer's personal experiences with the product.

Nonprice benefits

The way images and psychological appeals can be used to influence consumer decisions.

Branding

The way marketers create a special meaning for a product.

economic and communication

Two types of exchange facilitated by marketing

Local

Type of advertising that can refer to a retailer, manufacturer, or distributor who offers products in a fairly restricted geographic area.

Direct-response

Type of advertising that can use any medium but where the message tries to stimulate a sale straightly and immediately.

Public Service

Type of advertising that communicates a message on behalf of a good cause. Usually created free of charge, and the media often donate the necessary space and time.

Soft-sell

Type of advertising that is believed to be so persuasive that it decreases the likelihood a consumer will switch to an alternative product, regardless of the price charged.

Institutional (corporate)

Type of advertising where messages focus on establishing a corporate identity or winning the public over to the organization's point to view.

Psychological Pricing

Use advertising to manipulate the customer's judgement of value.

Customary (expected) Pricing

Uses a single, well known price for a long period of time.

Competitive Advantage

When a brand is different from its competitors and superior in some way.

Trademark

When a brand name, mark, or distinctive logo is legally protected through registration with the Department of Commerce.

Resellers (intermediaries)

Wholesalers, retailers, and distributors who buy finished or semifinished products and resell them for a profit.

Agency-Client Partnership

Working arrangement between the advertising agency and the sponsor.