MKTG EXAM NOTES
The self-reference criterion is the unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.
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Using a percentage-of-sales approach to advertising budgeting risks the possibility of over- or under-budgeting as sales fluctuate during economic cycles
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Using response models to aid in the budgeting process has been a widespread practice among larger firms for many years
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Variety seeking purchase behavior involves low involvement and high experience.
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According to Gardner, creative people have much less interest in playing by the rules, acting nice, and being sociallyacceptable than more ordinary people.
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According to Linda Hill, Greg Brandeau and others, three capabilities of innovation include: (1) creative abrasion; (2) creative resolution; and (3) creative agility.
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According to research from Robert Sternberg, it is entirely possible to enhance your latent creative abilities - in other words to improve your creativity.
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According to the text, creativity can be enhanced with effort
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According to the text,creativity is a form of intelligence, maybe the best form of intelligence (particularly for the field of advertising
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Account executives are the liaison between the agency and the client.
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Addressable TV ads allow marketers to target television-watching consumers by household characteristics.
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Advertisements should be consistent with the values of people, a society, or a culture to be more likely to stand out, demand attention, and be remembered and accepted.
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If an advertiser sees a large potential segment being served by a competitor with a big advertising budget, it has little to no chance to gain market share and should withdraw from the marketplace.
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Marketing is a subset of advertising
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An advertising response function is a mathematical relationship that associates dollars spent on advertising and sales generated
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Concept testing seeks feedback designed to screen the quality of a new idea, using consumers as the "judge and jury."
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Consumer preferences are influenced by consumer taste in style and fashion.
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Consumers participate in rituals.
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Copy writers are responsible for the verbal contents of advertisements.
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Creatives and account managers in ad agencies typically have different goals for a particular advertisement or campaign, and these goals may conflict.
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Creativity is subjective.
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Demographics are used to describe or profile target segments and may include gender, age, education, and income range
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Developmental advertising and promotion research is used to generate opportunities and messages
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Developmental advertising is also known as consumer insight advertising
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In 2013, Oreo (a popular cookie company) launched a highly popular "cream vs. cookie" ad campaign targeted at young millennials using various social media channels
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In a resonance test, the goal is to determine to what extent the message resonates or rings true with target audience members.
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In his analysis of some of the most creative people of the 20th century, Gardner found that they often had troubled personal lives and were significantly childlike.
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In the world of advertising, products are positioned, but markets are segmented.
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In-depth interviews with consumers can be used to supplement the findings from AIO research and vice versa
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Knowing how to brainstorm is important in advertising and integrated brand promotion careers.
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Many marketers rely heavily on the expertise of an advertising agency.
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One of the most challenging tasks is budgeting the funds for an advertising and IBP effort, but response models can help professionals make more decisions based on data.
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One perspective of consumer behavior is that the consumer is a decision maker.
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One potential downside is that participants can be biased if the participants tell the facilitator what they think s/he wants to hear.
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One value of creativity in advertising is that those creative ideas can lead to long term advertising campaigns which can build brand equity.
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Resonance testing determines to what extent the message has an emotional connection with the target audience and how much they identify with the brand.
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Robert Sternberg has found that to be more creative, you need to spend time gaining knowledge but also avoid getting mired in so much knowledge that creativity is stifled.
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Robert Sternberg's suggestions for boosting creativity stress that you should learn to redefine problems to see them differently from the way other people see them.
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Some advertisers (such as Prius or Beyond Burger) use environmental consciousness approaches to reach the green consumer segment
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Some companies evolve over time to meet needs and wants of their changing customer base(s). This is known as "re-branding."
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Some may advocate sales objectives while others may push communications objectives, although both can be done.
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Some societal buying behavior may vary by geographic location such as recreational activities, entertainment and dining styles.
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Sometimes, advertisers try to make an otherwise low-involvement choice into a high-involvement one.
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Habit seeking purchase behavior involves hight involvement and high experience.
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Hilton Hotels now owns 14 separate hotel brands like Canopy, Curio, Embassy Suites which target what we refer to as "specialized markets."
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Hotels.com has chosen an advertising strategy which relies entirely on television advertising.
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IKEA was founded in Spain in 1974.
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If it occurs, cognitive dissonance will happen immediately before a purchase
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In an award winning print ad campaign, Toyota's Prius appears alongside and is compared to a sheep. The comparison to a sheep is used because - as a "green" company - Toyota is proudly messaging their use of all-wool interior seat upholstery.
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In measuring the effectiveness of an IBP campaign for a brand, the following evaluation criteria are always used: return on advertising investment, market penetration, brand value and top-of-mind awareness
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In terms of advertising strategy, "execution" refers to the termination of an unsuccessful ad campaign.
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Institutional buyers who purchase items to be used in other products and services or resold to other businesses or households are considered members of consumer markets.
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Interpersonal abrasion describes when a clash of ideas from which new ideas and breakthrough solutions evolve to provide new synthesized successful idea concepts
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Limited problem solving involves high involvement and low experience.
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Major financial services firms such as Ameritrade, Charles Schwab, Oppenheimer Funds and Franklin Templeton Investments - who are major players in a competitive arena with few large competitors - typically choose a percentage-of-sales approach to their advertising budgets.
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New York City's Citibike program launched a successful marketing campaign to convert casual users to heavy users by switching it's original pricing model of pay by 15 minute intervals to a monthly and annual subscription pricing model.
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One common way of segmenting business to business markets is by age and racial background of the owner(s).
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One of IKEA's keys to success is a term they've coined as "conservative design."
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Pew Center, Forrester Research and the NPD Group are all examples of professional publications which are potentially valuable sources of secondary research data.
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Preparing and executing a breakthrough IBP campaign is people-intensive; it hinges on creative work and business acumen alike.
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Procter & Gamble's Dove Soap campaign targeting older women is an example of targeting by psychographics.
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Producers are individuals who are primarily responsible for funding ad campaigns without any further involvement.
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Purchase decision, evaluation of alternatives, peer consultation and need recognition are all considered steps of the consumer decision process
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Recognition tests are the same as recall tests
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Research is not helpful in generating opportunities and messages.
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Since advertising is only one variable in an entire marketing mix, it is solely responsible for selling the product.
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Since the election of President Trump, advertisers have sharply reduced their advertising aimed at the transgender community.
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Social class, race, and ethnicity are ways in which members of a culture are classified by systematic inequalities that affect their social standing; this is known as episodic memory.
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Spending advertising dollars to get "switchers" to buy your brand may seem like a bad idea, but it often results in generating strong brand loyalty quickly.
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Successful brands do not have emotional connections with consumers.
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The "P" in "STP" stands for "price."
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The NOADE is a common data source used to segment business markets.
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The basic premise of a positioning strategy must be complex and fitting in with the competitors' messages if it is to be communicated effectively to the target segment.
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The brand extension which evolved Tide Pods as an outgrowth of Tide Detergent was an example of a successful product development caused by recall testing.
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The consumption process is based on the sequence of two stages: need recognition and post purchase use and evaluation
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The creative brief focuses on the media plan.
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The customer is who determines how the advertising agency will be graded on a particular advertising campaign.
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The differences among a population by wealth, education levels, status and power are collectively known as materialism
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The famous "Think Different" ad campaign celebrates Procter & Gamble's commitment to tolerance during these times of racial divisiveness.
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The purpose of a creative brief is to clearly delineate the division of responsibilities between the creative team, the account executive, other agency business partners and the client.
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The shoe company Vans positions its brand as luxury.
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The situation analysis of an advertising plan includes historical context but does not consider anevaluation of the industry, themarket, and the competition.
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The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaign's colors, celebrity endorsers, and logo.
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There is only one way to measure success in advertising and integrated brand promotion.
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Thought listing involves analysis of the effectiveness of subliminal advertising campaigns.
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Trendspotting is a process conducted mainly by focus groups
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Vans, a brand of shoe popular among young boarders, surfers and outdoor active sports enthusiasts uses a brand positioning referred to as "grunge."
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When a brand team defines the target market of consumers for their product, they do not need to consider identifying smaller subsets of consumers within their chose target market.
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Without customer attention, there is a very strong chance that an advertiser's message will have its desired impact
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Big data can be analyzed by artificial intelligence, as algorithms can detect patterns or trends
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Big data is data in a very large dataset that researchers use computer algorithms to find patterns in
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Big data is data in a very large dataset that researchers use computer algorithms to find patterns in, and it is often analyzed by artificial intelligence to detect patterns or trends.
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Brand loyalty reflects a high level of involvement and a high level of experience
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Brand opportunities relate with credibility, relevance, stretch, and differentiation.
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Celebrity Cruises, a vacation cruise ship company recently produced a TV ad campaign featuring the song "Go Ask Alice" produced by the Jefferson Airplane band in the 1960's is targeting primarily baby boomers.
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Companies at times target "casual users".
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Companies use advertising objectives because it is important to lay the framework for the subsequent tasks in an advertising plan.
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Conflict between management and creatives in an organization is fairly common and something management should expect and be prepared to manage to ensure team effectiveness.
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Consideration sets and evaluative criteria will be different between people, even often for the same products.
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Consumer behavior is a process that begins with problem recognition.
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Consumer insights are pieces of critical information provided by developmental research
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Copy research is also known as evaluative research, and it is a term created back when ads were mostly words
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Couples who have their first baby and graduating college seniors fall under the category of "emergent customers."
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Creative abrasion refers to clashes between people from which communication shuts down and new ideas often get eliminated.
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Creatives in ad agencies are often perceived as doing less work and earning more than other agency team members
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Creativity is viewed in the business world as a positivequality even thoughcreative people can be hard towork with.
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Creativity is widely perceived as a "gift" which not all in the general population possess.
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Developmental advertising is conducted early in the advertising process, before the ads, branded entertainment, or other forms of IBPare created.
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Direct response research can be seen with consumer inquiries, calls, clicks on a website, and other responses to an opportunity that the advertiser presents
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Doritos partnered with a LGTBQ community to promote understanding and, in the process, promote its brand.
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Ethnocentrism is the tendency to view and value things from the perspective of one's own culture.
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Evaluation is a crucial component in an ad plan
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Evaluative criteria differ from one product category to the next, and generally consumers each have their own evoked sets
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Every precaution should be taken to avoid having to radically alter a budget after it is submitted to the client.
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Executing an IBP campaign is like performing as a symphony orchestra - many individuals are simultaneously making unique contributions to create a final piece.
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Extended problem solving involves high involvement and low experience.
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Eye-tracking technology systems basically measure where and how long a person gazes at a particular print ad or a particular part of the ad.
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Focus groups are discussion sessions with 6-10 target customers to come up with new insights about the good or service
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Focus groups are not appropriate for generating statistics and making scientific generalizations.
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Folger's "Morning People" ad campaign which targeted young adults who are just starting to form brand preferences in home-brewed coffee is a good example of point-of-entry marketing.
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Frame-by-frame tests involve getting consumers to turn dials while viewing television commercials in a theater setting.
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Frito Lay's Doritos brand of chips has undertaken its positioning as "bold." In this context "bold" refers to a willingness to take risks, exhibiting confidence and courageousness.
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Gardner's research indicates that a high level of creativity is often correlated with lower emotional stability.
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Google is known for using numerous creative adaptations of its logo.
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Higher involvement may be a function of a consumer-brand relationship
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Ideally, an advertising plan should be completed before a communications plan or media plan should be started.
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If social class affects consumption through tastes, media preferences are likely impacted.
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Implicit memory measures do not refer to the ad or exposure but try to get at memory by using tasks like filling in the missing part of a brand name along with other recollections.
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It is commonly believed by behavioral psychologists that creativity may be a reflection of early childhood experiences, social circumstances and cognitive styles.
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It is important for an advertiser and agency to align around evaluation criteria upfront.
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It is not uncommon for conflicts and tensions to develop in the creative / management relationship.
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It may be hard or impossible to get accurate figures on competitors' spending.
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Jerome always buys Coke, and only Coke-not Pepsi or any other cola brand. Consumers like Jerome, who repeatedly purchase a single brand to fulfill a specific need, are demonstrating brand loyalty.
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Lee Clow is the creative mind behind the iconic Absolut ads, many of which you see featured in the chapter for its aesthetic with the unique bottle shape.
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Markets for products and services purchased by individuals or households are known as "consumer markets."
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Melissa is considering sunglasses from Louis Vuitton, Chanel, or Hermes. This represents her evoked set
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Most social scientists agree that most consumers fall into a continuum between being rational decision makers and emotional decision makers.
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Netnography and big data are important concepts, often involving research using the Interne
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Netnography is a method to understand online communities or online cultures.
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Objectives for advertising should be measurable, and this is reviewed in the evaluation phase of an ad plan.
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One consideration when deciding how to select high priority market segments is the forecasted return on investment of each segment.
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One drawback of niche marketing is that a company may have to raise the price of its product due to the smaller volume of sales it can expect.
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Overall, recognition is easier, because people are shown a stimulus and answer yes or no about having seen it, whereasrecall is harder, because people have to deliberately search their memories for aconcept without any promptingor stimulus
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Pharmaceutical advertisements are so highly regulated by FDA guidelines that typically 50% of pharmaceutical TV advertisements running times are taken up by quickly spoken legally required disclaimers.
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Playing with Lego blocks can influence adults' creativity.
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Positioning relates to an attempt to give a brand meaning relative to its competitors.
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Psychographic segmentation is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers' activities, interests, and opinions.
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Psychographic segmentation is used in selecting target segments by focusing on consumers' descriptors such as their attitudes, beliefs, and opinions.
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STP marketing includes three aspects: segmentation, targeting, and positioning.
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Share of voice, or share of market, is a method that bases an ad budget on whatever significant competitors are spending.
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Social legacy is the process of learning from the past in order to build the future.
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Stratification refers to systematic inequalities in things such as wealth, income, education, power, and status.
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Successful creatives depend on management that is willing to take risks.
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Taco Bell is launching a new advertising campaign portraying its restaurant as having very fast service and a cheerful staff in an effort to target a younger audience. The campaign will be more successful if it uses various aspects of IBP such as sponsorships, contests, and sales promotions in addition to TV and social media, rather than TV commercials alone, to best reach this group.
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The "objective - and - task" approach to advertising budgeting includes something known as a "build - up analysis".
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The McCracken Model involves the concept that consumer goods gain meaning from cultural contexts and transfer those meanings to consumers who purchase those goods.
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The advertising agency's crucial role is to translate the current market and marketing status of a firm and its advertising objectives into advertising strategy and, ultimately, finished advertisements and IBP materials.
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The competition's strengths, weaknesses, tendencies, and any threats they pose are included in the competitor analysis.
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The consumer behavior of a family is of great interest to advertisers.
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The creative brief sets up the goal for any advertising effort in a way that gets everyone moving in the same direction.
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The function of targeting is delivering the branding effort - via media - efficiently to the chosen segments.
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The interaction of social stratification and cultural capital becomes apparent when a person moves from one stratum into another.
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The most creative advertising results from teamwork rather than individual effort since teamwork generates synergy in advertising.
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The part of the situation analysis in which the emphasis is on the demand side of the market, i.e. how consumers' behavior, assumptions and purchasing decisions have evolved, is known as the market analysis process.
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The thought processes of creative people are less orderly and logical than those of others.
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The three types of advertising and IBP research are: Developmental research, copy research and results research.
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The type of information search that involves an evoked set, a consideration set, and/or top-of-mind set is known as an internal search
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The various forms of brand promotion that will supplement the advertising effort each need to be spelled out in the advertising plan.
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There have been many unusual advertising ideas that at first seemed a bit weird but actually have become legendary, such as the talking Chihuahua from Taco Bell
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Thought listings and cognitive response analysis are tests of knowledge, cognitive impact, and to a lesser degree feelings and emotions.
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To be creative, one should have the ability to consider and hold together seemingly inconsistent elements and forces, making new connections
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Two important elements to the execution of an advertising plan are determining the copy strategy and devising a media plan.
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Two ways to obtain information about marketing and advertising is to purchase data from commercial services or to hire a consultant to conduct marketing or advertising research.
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Unaided recall is when the respondent demonstrates that he or she saw the commercial and remembered the brand name without the brand name mentioned.
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Viewing advertising strictly from a communications perspective opens marketers to a broader range of advertising strategies.
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Viewing consumers as social beings allows advertisers to consider meanings that consumers associate with brands.
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Well-stated objectives are easier to develop when advertising planners want to establish a quantitative benchmark.
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Well-stated objectives are easier to develop when advertising planners want to specify a time frame.
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When Chobani greek yogurt was first introduced to the market in 2007 it was positioned as a healthy alternative targeting a small niche market.
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When ad agency professionals are creating a campaign for a huge global retail firm with complex value propositions, it is important to make sure the campaign aligns with one or more aspects of the brand's value
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When consumers are inexperienced in a particular consumption setting, yet find the setting highly involving, they are likely to engage in extended problem solving
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When consumers believe their brand to be more popular than it actually is, it is called an accessibility bonus.
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When formulating a positioning strategy, it is important to consider the competition.
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While Big Data refers to large data sets to analyze, netnography is a method to understand online communities or online cultures
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While grocery shopping, Kate picks up "Krispy's" cereal instead of the usual cereal that she buys every week. This is an example of variety seeking
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While purchases based on habit are merely consumption simplifiers, purchases based on brand loyalty are the result of a strong commitment to a brand.
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Women and men can often be targeted differently since they are the products of differential socialization.
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ZMET is designed to draw out people's buried thoughts and feelings about products and brands, based on their use of metaphors
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If Nike decides to use the STP framework, it does not need to do market segmentation.
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Explaining which target market(s) is(are) selected by the advertiser is based on the competitor analysis research.
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For print ads and promotions, recall testing is the standard memory test.
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Good ideas always come from the ad agency managers or the clients (advertisers).
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Great brands don't have emotional connections with consumers.
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Experience and involvement are both low in the extended problem-solving decision-making mode
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A brand's opportunity claim is a statement of the brand's benefits that provide value to its target consumers and includes functional, emotional, and self-expressive benefits.
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A clear and concise articulation of the overall plan to complete goals, or the mechanism by which something is to be done - or "the means to an end" refers to advertising campaign tactics
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A creative environment in an advertising agency requires strong central authority which dictates and governs the brainstorming process.
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A famous parody of Maslow's Hierarchy of Needs illustrates the message that creatives are only interested in monetary compensation.
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A focus group is quantitative, or numbers-oriented research.
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A messaging plan specifies where the ads will be placed and what strategy is behind their placement.
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A percentage-of-sales approach to budgeting calculates the amount spent by competitors and market share.
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A response model relies mostly on customer surveys to assess the effectiveness of advertising investment ROI
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A value proposition is the core idea on which the brand rests that will be relevant to target audiences over time
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According to Howard Gardner's book "Creating Minds," highly creative people are strongly consistent emotionally.
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Ads which are used around the world for brands (e.g. Coca Cola) that have such strong brand recognition that the advertiser doesn't need to produce different versions to accommodate different cultural perspectives is known as international advertising
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Advertising agencies need to focus on communications or sales objectives, but not both simultaneously
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Advertising can influence internal but not external searches.
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Advertising clutter has little to no effect on the efficiency of ads being able to capture attention of the customer.
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An ad campaign that attempts to persuade consumers to try alternative brand choices from brands they have historically had brand loyalty for is an example of a repeat purchase advertising objective
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An advertising plan is the same thing as a marketing plan.
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Association tests commonly use dialogue balloons as ways to determine consumers' thoughts and feelings about a brand.
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Brand switchers are also known as "emergent consumers."
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Brands do not suffer when the prices and profit margins of brands become too low, thereby becoming commodities, sold on price
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Bumbo is a company that manufactures products for babies and toddlers. Its advertising campaigns have carried various slogans over the years, and they change up the thematic core of the messages every week. This is an example of consistent positioning approach.
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Carl Jung, author of "Man and His Symbols," was a pioneer in the early 20th century of advertising theory.
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Creativity in ads is not required in order to break through ad clutter.
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Cultural rituals are consumer behaviors that are driven by peer influences.
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Design thinking involves a process using focus groups in which the participants evaluate prototypes of products not yet released into the marketplace.
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Developmental advertising research does little to informing the creative production of ads and promotions since is occurs after the advertising appears in the marketplace.
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Developmental advertising using dialogue balloons typically use blogs as a primary research channel.
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Developmental research occurs after advertisements initially appear in the marketplace.
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During the information search process, external searches occur before internal searches
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Emotion is not an important concept in advertising.
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Emotional memory involves recollection of events or experiences
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"Share of market" is a budgeting method that strives to allocate an amount of advertising investment comparable to the amount of money spent by competitors
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"Young digerati", "urban elders", "connected bohemians" and "aspiring a-listers" are examples of market segments determined by psychographics.
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A communication test simply explores whether the people "get" the ad-whether they understand the main point,understand the joke, or see the connection.
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A concept test seeks feedback designed to screen the quality of a new idea.
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A creative person can be "the synthesizer," as Lee Clow (the visionary behind the iconic Absolut ads) was called
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A downside of big data is that researchers don't always know why certain behaviors have occurred.
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A gourmet spa advertises itself as offering relaxation to the extreme and the best massage in America. The owner of the local shop buys ads focusing on a relaxing experience and their award-winning massage therapists. This is an example of internal consistency.
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A historical background is a key element in an advertising plan, one that should include the history of all main players, the industry, the brand, and the corporate culture.
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A situation where a young couple get married, buy a house and begin starting a family creates demand for products and services in their life that didn't exist before. This effect is known as a change in family life cycle
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AIO research can also be known as lifestyle research
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Advertisers will often "push" brands from low involvement to high involvement purchase decisions.
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Advertising has strongest impact early in the product life cycle
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Advertising is relevant for both business-to-business as well as for business-to-consumer approaches.
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Advertising research is a systematic process of marketing research conducted to improve the efficiency of advertising. It aids in the development, execution, or evaluation of advertising and promotion
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Advertisinghas the greatest impact on sales early in the product life cycle.
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Agencies can hire out research services
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Alluring is a company that manufactures cosmetic products. It claims to have the most innovative and scientific formula of the makeup. To be internally consistent, the company should invest in a better Research and Development department to continue product innovation.
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An agency's role is to translate the current market and marketing status of a firm and its advertising objectives into advertising strategy and, ultimately, finished advertisements and IBP materials.
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An industry analysis is one step of the situational analysis.
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An internal search for information is at times sufficient, so there is no need then for an external search for consumers to find what they want.
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Apple is an example of a major advertiser that always uses a broad range of media channels when announcing and rolling out new products.
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Armani and Chanel are brands that position themselves as luxury goods.
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Art directors are responsible for the verbal content of advertisement
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As a social process, advertising is marked by the struggles for control and power that occur within departments, between departments, and between the agency and its clients on a daily basis.
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Attitudes, interests and opinions are examples of demographics.
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Beyonce has an agreement with Harley Davidson to wear their branded shirts, jackets and headwear in public to promote the brand. This is an example of something we know as cultural branding
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