Intro to Advertising MIDTERM REVIEW

Traditionally, what percentage of United States GDP comes from advertising expenditures?

1-2%

Which factors contributed to the lack of advertising in early civilizations?

1. Difficulty transporting goods and services. 2. Most people made what they used themselves 3. Mass media did not exist

What are the 3 interpersonal influences before the decision process?

1. Family 2. Society 3. Culture

The administration of the advertising operations of a small business is executed by a(n) _____.

Advertising manager

In promoting any new product, a marketer must first ______.

Create awareness that the product exists

Companies build a message strategy by combining components of the _____ mix, which includes product concept, target audience, communication media, and the creative message.

Creative mix

People who have already bought something from a business or brand are called ______.

Current customers

The combination of demographics with geographic segmentation is known as

Geodemographic segmentation

Markets that buy products for municipal, state, and federal administrative activities are known as _____ markets.

Government

By conveying a positive image of a product, advertising can imply that the product ______, even if the advertising does not explicitly discuss quality.

Has inherent quality

Firms in the same business or in the same part of town advertise jointly using _____.

Horizontal cooperative advertising

Before developing any messaging campaign or making any IMC decisions companies must use ______ research to get a feel for how people perceive its products, how they view the competition, and which messages offer the greatest appeal.

IMC

To seek information about the product concept, the target audience, the communication media, and the creative message, companies use which type of research?

IMC strategy

What is used to assist in the selection of target markets, messages, or media?

IMC strategy research

One of the functions of marketing research is to help managers do what?

Identify consumer needs

Advertising tends to ______ when business cycles are up.

Increase economic activity

In order to use message strategies effectively, what should strategy research do?

Inform a blueprint to steer creatives

Positive long-term perceptions of an entire business, and not just of a particular product or service, can be obtained through _____.

Institutional advertising

When it comes to making the sale and dealing with customers, where do most relationships start and develop?

Local advertising

Which type of advertising is placed by local businesses in a particular city or county targeting customers in their geographic area?

Local advertising

Which type of advertising is sometimes called retail advertising because retail stores account for so much of it?

Local advertising

Many companies use media advertising to communicate with diverse audiences rather than engaging in personal selling because it ______.

Lowers the overall cost of sales

One of the inferences about advertising's effect on prices is that advertising helps lower prices by engaging __________ in mass production

Manufacturers

The way we discern raw sensory information and translate it into feelings, thoughts, beliefs, and actions is governed by the three _____ processes.

Personal

What are subconscious filters that shield a person from unwanted messages?

Physiological screens

Invented in 1439, the ______ was the most important development in the history of advertising.

Printing press

Advertising that stimulates short-term action with regard to a product or service while building awareness of the business is called _____.

Product advertising

Integrated marketing communications (IMC) is one of many tools used in which aspect of marketing?

Promotion

Which of the following helps marketers see consumers as individuals with feelings and preferences?

Psycographics

Charitable organizations, such as the United Way, can place ads as _________ service messages, which are carried at no charge.

Public

Distinguishing buyers by when they buy or use a product or service is known as segmentation based on

Purchase occasion

Unlike personal selling, advertising is able to ______.

Reach larger audiences at a cheaper price

A state lottery or a grocery store that operates in a three state area are both examples of _____.

Regional advertisers

When advertising notifies consumers about services or merchandise that are offered at normal prices, it is called _____.

Regular price-line advertising

Which type of user should marketers primarily target with their brand messages?

Repertoire users

What drives marketing decision making?

Research

_____ is used to stimulate sales of particular merchandise or increase store traffic by placing items on sale and offering two-for-one specials or other deals.

Sale advertising

T/F: Advertising builds brand loyalty

True

Structured and composed communication of information, usually paid for by sponsors, that has the goal of persuading the receiver to act in some way is called ______.

Advertising

The _____ process begins the moment a person recognizes a need that might be satisfied by a purchase.

Consumer decision

One of the variables that affects the purchase occasion is

Frequency of need

The representative of the sponsor who serves as the source of the within-text message is the ______.

Persona

List the progress of early advertising in the preindustrial age in chronological order, with the earliest event at the top.

1. Invention of the printing press 2. 1st news paper ad in English 3. Beginning of puffery 4. Use of Illustrations in ads 5. Emergence of mass urban markets and goods of uniform quality

What are the 3 personal processes before the decision process?

1. Perception 2. Learning and persuasion 3. Motivation

An ideal economy is based on what 4 assumptions?

1. Self-interest 2. Complete information 3. Many buyers and sellers 4. Absence of externalities

What are the 3 non-personal influences before the decision process?

1. Time 2. Place 3. Environment

Which print advertising techniques can be attributed to Benjamin Franklin?

1. White space 2. Illustrations 3. Large headlines

Advertisements used to educate customers about new uses for a product ______.

Add value to the brand

_____ employ the majority of people in advertising.

Advertisers

In order to fight ongoing competition in a free-market economy, companies build value, brand preference, and loyalty for their products through ______.

Advertising

Mediated communication that is paid for by an identifiable source for the purpose of persuading the receiver to take some action is called

Advertising

Which of the following characteristics are commonly used in demographic segmentation?

Age Income Education Occupation

Which characteristic separates Millennial consumers from other generational demographics?

Amount of time spent shopping online

Local merchants focus on _____ because they often carry hundreds of different brands or numerous models of an exclusive brand.

Attracting customers to their place of business

The mental and emotional processes of people in purchasing goods and services are referred to as consumer

Behavior

When marketers look at buying behavior when grouping consumers, they are using

Behavioristic segmentation

Studies that focus on consumer attitudes regarding the ability of a given product to meet their needs form the basis of which type of segmentation?

Benefit segmentation

Segmenting a market based on the product quality, product price, sex appeal, or health consciousness sought by customers is known as segmentation based on _____.

Benefits sought

The father of advertising art is ______.

Benjamin Franklin

To identify products and their source and to differentiate them from others is one of the most basic functions of

Branding

The _____ advertising department is utilized by companies that focus on cost efficiency and continuity in their communications programs.

Centralized

A message is sent through some ______ to another party called the receiver.

Channel

Locating and recruiting new employees, offering services, or selling or leasing merchandise is frequently done through newspapers with _____.

Classified advertising

The process through which meaning or information is exchanged between people with symbols, signs, or behavior is called ______.

Communication

The competition for each other's shares in a mature, static, or declining market is called _____.

Conquest sales

Name the concept that marketers of a new product often use that involves examining important markets and dedicating resources to the ones that will allow it to attain promotional superiority.

Dominance concept

By providing information about the products they sell, sellers are able to ______.

Efficiently find consumers for their goods

During the 18th century, market development and the growth of advertising were fueled by the ______.

Emergence of mass urban markets

In the communication process, the source __________ information as a message which is then _________ by the receiver.

Encodes; decoded

A strong brand is one that ______.

Evokes more responses than the generic category it represents

The core of marketing, both traditionally and theoretically, is ______.

Exchange

What is it called when the sale or consumption of a product or service causes harm to individuals who were not involved in the transaction?

Externalities

True or false: The definition of advertising specifies that it encompasses the promotion of tangible products only.

False

A market economy, according to Harvard economist N. Gregory Mankiw, is defined as an economy in which ______.

Firms decide whom to hire and what to make

Among such countries as the United States, production and consumption is determined by a ______.

Market economy

Advertising, sales letters, event sponsorships, and coupons are all forms of _______ communications.

Marketing

Creating exchanges that satisfy an individual's or an organization's needs, wants, and objectives is known as ______.

Marketing

Companies use tools to communicate with clients and customers. These include television commercials and Websites as well as product placements in television programs, e-mails, coupons and discounts, or even sponsorship of events. Collectively these tools are known as ______.

Marketing communications

A _____ usually oversees the functions of a department head or an advertising manager of a chain store

Marketing manager

What is it called when companies develop systematic procedures for gathering, recording, and analyzing new information that help managers make marketing decisions?

Marketing research

Television commercials, radio advertising, newspaper ads, and online ads are examples of advertising _____, which are nonpersonal ways of reaching an audience.

Mediums

Consumers are able to make better decisions about which products to buy when they have ______.

More information about them

_____ are an example of government or nonprofit organizations.

Municipalities

In a(n) ______ message, a third-person character tells a story about others to an imagined audience.

Narrative

The advertising of _____ tends to focus on the competitive features of one brand over another, especially in conquest sales situations, because the companies are concerned about building their brands.

National companies

Advertising messages are not designed to be spread through direct or personal contact, in other words advertising is ______.

Nonpersonal

In a market economy, more products are available and at more competitive prices because of ______.

Open competition between sellers

In the consumer perception process, advertisers must first engage with _____.

Perception

One of the consequences of intense competition is that ______.

The number of businesses in an industry can decrease

Who pays for the cost of a commercial advertisement?

The sponsor of the ad

In the context of time orientation, unlike local advertisers, national companies _____.

Think and plan long-term

What is the key goal of most advertising?

To be persuasive

Which country has the highest level of advertising expenditures per capita?

US

The special relationship between a customer's needs and a product's need-satisfying potential is known as the product's ______.

Utility

Which of the following individuals opened a business in Philadelphia in 1841 that is credited as starting the advertising profession?

Volney B. Palmer

What type of segmentation are marketers using when they measure consumers' usage rates and use that information to categorize them as light, medium, or heavy users?

Volume segmentation

During the 1800s, ______ were concerned with marketing, and ______ were principally concerned with production.

Wholesalers; manufacturers

Sellers, in a market economy, can always find customers interested in their unique products because of ______.

Wide range of buyers