Advertising Exam 1
Public Service Announcements
An advertisement serving the public interest, often for non-profit organizations, carried out by the media at no charge
the 4 Ps
Product, price, placement, and promotion
Marketing Communications
The many efforts and tools that companies use to communicate with customers and prospects. This includes everything from ads to coupons to publicity
Advertising
The structured and composed non personal communication of information, usually paid for and usually persuasive in nature, about products by identified sponsors through various media
Nutritional labeling and education act
a 1994 congressional law setting stringent legal definitions for terms such as fresh light low fat and reduced calories; 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
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 recorders
a device such as TIVO that is similar to a VCR but records programs on a hard drive in digital format to provide high quality and ability to pause the 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 products from the producer to the consumer
consent decree
a document advertisers sign without admitting any wrong doing in which they agree to stop objectionable advertising
incentive system
a form of compensation in which the agency shares in the clients success when a campaign attains specific agreed upon goals
patent
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
account planning
a hybrid discipline that bridges the gap between traditional research, account management, and creative direction whereby agency people represent the view of the consumer in order to better define the plan the clients advertising program
branding
a marketing function that identifies products and their source and differentiates them from all other products
straight fee (retainer) method
a method of compensation for ad agency services in which a straight fee 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 multiples by some factor
geographic segmentation
a method of segmenting markets by geographic regions based on the shared characteristics, needs or wants of people in that region
purchase occasion
a method of segmenting markets on the basis of when consumers buy and use a good or service
media
a plural form of medium, referring to communication 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-commission combination
a pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned
utility
a products ability to satisfy both functional needs and symbolic needs or phycological wants. A products problem solving potential may include form, task, possession, time, or place utility
process
a sequence of actions or methods aimed at satisfying consumer needs profitability
markup
a source of agency income gained by adding some amount to a suppliers bill usually 17.65%
centralized advertising department
a staff of employees usually located at corporate headquarters, responsible for all of the organizations advertising. the department is often structured by product, advertising sub function, and user, media, or geography
market segmentation
a strategy where marketers searched for unique groups of people whose needs could be addressed through specialized products.
Resources
a term in the values and lifestyles (VALS) typography relating to the range of psychological physical demographic and material capacities that consumers can draw upon. the resource axis includes education, income, self confidence, health, eagerness to buy and energy level
institutional advertising
a type of advertising that attempts to obtain favorable attention for the business as a whole, not for a specific product or service the store or business sells. the effects of this are intended to be a long term rather than short term effect.
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
deceptive advertising
according to the FTC and ad in which there is a misrepresentation omission or other practice that can mislead a significant number of reasonable consumers to their detriment
unfair advertising
according to the ftc advertising that causes a consumer to be unjustifiably injured or that violates public policy
social responsibility
acting in accordance with 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 products limitations or deficiencies
product advertising
advertising intend to promote goods and services; also a functional classification of advertising
comparative advertising
advertising that claims superiority to competitors in some aspect
in-house agency
agency wholly owned by an advertiser and set up and staffed to do all of the work of an independent full service agency
art directors
along with graphic designers and production artists, individuals who determine how the ads verbal and visual symbols will fit together
interactive agency
an advertising agency that specializes in the creation of ads for a digital medium: exp agency.com and tribal ddb. they are experienced in designing web pages mobile apps and social media campaigns
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. non advertising 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 agencys 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 it is often not paid for by the client
copyright
an exclusive right granted by the copy right act to authors and artists to protect their original work from being plagiarized sold or used by another without their express consent
consumer advocate
an individual or group that actively works to protect consumer rights often by investigating advertising complaints received from the public and those that grow out of their own research
medium
an instrument or communications vehicle that carries or helps transfer a message from the sender to the receiver
media buying service
an organization that specializes in purchasing and packaging radio and television time
Marketing
an organizational 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
trademark
any word name symbol device or any combination thereof adopted and used by manufacturers or merchants 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 webpages that are both effective and cost efficient
individual brand
assigned a unique name to each product a manufactuer produces
demographic segmentation
based on a populations statistical characteristics such as gender age ethnicity education occupation income or other quantifiable factors
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 - think second hand smoke
licensed brands
brand names that other companies can buy the right to use
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 collating machines and run binderies
research suppliers
companies that conduct and analyze marketing research
art studios
companies that design and produce artwork and illustrations for advertisements, brochures, and other communication devices
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% for the advertising placed with it
selective demand
consumer demand for the particular advantages of one brand over another
primary demand
consumers demand for a whole product category
multicultural corporations
corporations operating and investing throughout many countries and making decisions based on availabilities world wide
volume segmentation
defining consumers as light medium or heavy users of products
narrowcasting
delivering programming to a specific group defined by demographics and/or program content rather than mass appeal. Opposite of broadcasting. Think political ads on news channels. kids toys on kids shows. cooking utensils on food network
perceptible differences
differences between products that are visibly apparent to the consumer
induced differences
distinguished characteristics of products effected through unique branding packaging distribution merchandising and advertising
ethical advertising
doing what the advertiser and the advertisers peers believe is the morally right thing to do 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 etc.
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 4 Ps (product price placement and promotion) that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy
industrial age
from about 1900 - 1970 tremendous growth and maturation of the US industrial base development of new often inexpensive brands of the luxury and convenience goods - now called packaged goods
creative director
head of a creative team of agency copy writers and artists who is assigned to a clients business and who is ultimately responsible for the creative product - the form the final ad takes
hidden differences
imperceptible but existing differences that may affect the desirability of a product
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 business people that specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers. These agencies also arrange for or contract for purchases of space and time in various media
management account supervisor
managers who supervise account executives and who report to the agency's director for account services
product differentiation
manufacturers portraying their brands as different from and better than similar competitive products through advertising packaging or physical product differentiations
push strategy
marketing advertising and sales promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers retailers and salespeople
pull strategy
marketing advertising and sales promotion activities aimed at including trial purchase and repurchasing by consumers
cease and desist order
may be issued by the FTC if an advertiser won't sign a consent decree which prohibits further use of 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, it is available to an international audience
psychographic segmentation
method of defining consumer markets based on psychological variables including values attitudes personality and lifestyle
benefit segmentation
method of segmentation depending on the benefits that consumers look for
behavioral segmentation
method of segmenting consumers based on the benefits they seek
industrializing age
mid 1700s through the end of World War 1 manufacturers were principally concerned with production
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 individuals right to prohibit personal information from being divulged to the public
creative boutiques
organizations of creative specialists (such as art directors, designers, and copywriters) that work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages and specialized art. A boutique only provides that creative work.
business markets
organizations that buy natural resources, component products, and services that they can resell use this to conduct their business or to manufacture another product
suppliers
people and organizations that assist both advertisers and agencies in the preparation of advertising materials such as photography, illustration, printing, and production
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. Characteristics: invention of paper and the printing press. increased literacy gave rise to the first forms of written advertising
private labels
personalized brands applied by distributers or dealers to products supplied by manufactures. private brands are typically sold at lower prices in large retail chain stores
mass media
print or broadcast media that reach very large audiences. mass media include radio, television, newspapers, magazines, and billboards
national brands
products brands that are marketed in several regions of the country
early adopters
prospects who are most willing to try new products and services
business-to-business (B2B) agency
represents clients that market products to other businesses
cookies
small pieces of information that get stored on your computer when you download certain websites. these cookies can keep track of whether a certain user has ever before visited a specific site. this allows the website 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
demarketing
term coined during the energy shortage of the 1970s and 1980s when advertising was used to slow the demand for products
maturity stage
that point in the product life cycle when the market has become saturated with products, the number of new customers has diminished and competition is more intense
advertising strategy
the advertising objective declares what the advertiser wants to achieve with respect to consumer awareness, attitude, and preference; the advertising strategy describes how to get there. Advertising strategy consists of two sub strategies : the creative strategy and the media strategy
positioning
the association of a brands features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer
product concept
the consumers perception of a product as a bundle of utilitarian and symbolic values that satisfy functional social and psychological and other wants and needs
traffic department
the department in an advertising agency that coordinates all phases of production and makes sure everything is completed before the deadline
productive department
the department in an advertising agency that is responsible for managing the steps that transform creative concepts into finished advertisements and collateral materials
unique selling proposition (USP)
the distinctive benefits 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 firms needs, which operate with a major degree of independence
usage rates
the extent to which consumers use a product : light medium or heavy
psychographics
the grouping of consumers into market segments on the basis of psychological makeup- values, attitudes, personality, and lifestyle
Added value
the increase in worth of a product or service as a result of a particular activity. in the context of advertising, the added value is provided by the communication of benefits over and above these offered by the product itself
Brand managers
the individual within the advertisers company who is assigned the authority and responsibility for the successful marketing of a particular brand
introductory phase
the initial phase of the product life cycle. also called the pioneering phase. here the costs are usually the highest and profits are the lowest
account executives
the liaison between the agency and the client. the account executive is responsible both for managing all of the agencies services for the benefit of the client and for representing the agencies point of view to the client
foreign media
the local media of each country used by advertisers for campaigns targeted to consumers or businesses within a single country
target market
the market segment or group within the market segment toward which all marketing activities will be directed
family brand
the marketing of various products under the same umbrella name
product element
the most important element of the marketing mix: the good or service being offered and the values associated with it. This includes the way the product is designed,classified, positioned, branded and packaged
group system
the organization of an ad agency into a number of little agencies or groups, each with the various people required to meet the needs of the particular clients being served by the group
departmental system
the organization of an ad agency into departments based on function: account services, creative services, marketing services, and administration
benefits
the particular product attributes offered to consumers such as high quality low price status, speed, sex appeal, good taste and so on
Word of mouth advertising
the passing of information, especially product recommendations
primary motivation
the pattern of attitudes and activities that help people reinforce sustain or modify their social and self image. an understanding of the primary motivation of individuals helps advertisers promote and sell goods and services based on that
growth stage
the period in a product life cycle that is marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases
advertising manager
the person who performs all the administrative planning budgeting and coordinating functions. he or she may lay out ads, write ad copy, and select the media
target marketing
the process by which an advertiser focuses its marketing efforts on a target market
integrated marketing communications (imc)
the process of building and reinforcing mutually profitable relationships with employees customers stakeholders and the general public by developing and coordinating a strategic communication program that enables them to make constructive contact with the company/ brand through various materials
product life cycle
the progressive stages in the life of a product that affect the way a product is marketed and advertised. the stages are: introduction, growth, maturity and decline
primary demand trend
the projection of future consumer demand for a product category, based on past demand and other market influences
cooperative advertising (co-op)
the sharing of advertising costs by the manufacturer and the distributor or retailer. the manufacturer may repay 50 or 100 percent of the dealers advertising costs or some other amount depending on the sales that come with it
target audience
the specific group of individuals to whom the advertising message is directed
decline stage
the stage in the product life cycle when sales begin to decline due to obsolescence, new technology, or changing consumer tastes
marketing strategy
the statement of how the company is going to accomplish its marketing objectives. The strategy is the total directional thrust of the company, or the how-to of the marketing plan. It is determined by the particular blend of the marketing mix elements which the company can control
media planning
the strategic identification and selection of media vehicles for a clients advertising messages
brand equity
the totality of what consumers distributors dealers and competitors feel and think about a brand over an extended period of time in short it is the value of the brands capital
exchange
the trading of one thing of value for another thing of value
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
position
the way in which a product is ranked in the consumers mind by the benefits it offers, by the way it is classified or differentiated from the competition, or by its relationship to certain target markets
copy
the words that make up the headline and message of an advertisement or commercial
geodemographic segmentation
this combines demographics and geographic segmentation to select target markets in advertising
user status
this divides consumers into six categories that reflect varying degrees of loyalty to certain brands or products: sole users, semi sole users, discount users, aware nontriers, trial/rejectors and repertoire users
North American Industry Classification System (NAICS) codes
this method is used by the US department of commerce to classify all businesses. the NAICS codes are based on broad industry groups subgroups and detailed groups of firms in similar lines of business
abundance principle
this 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
classified advertising
used to locate and recruit new employees offer services, or sell or lease new and used merchandise
