MKT 354 TEST ONE CH. 1-5
THREE Associations that monitor industry-wide advertising practices:
-American Association of Advertising Agencies (AAAA) -American Advertising Federation (AAF) -Association of National Advertisers (ANA)
Identify the TWO organizations that have been established to ensure the integrity of the advertising industry:
-American advertising federation -better business bureau
THREE Types of vertical marketing system:
-Corporate -Administered -Contractual
What TWO things did the manufacturers do in the 19th century to change their focus from a production orientation to a sales orientation:
-Developed new products -undertook heavy national brand advertising
SIX considerations of product packaging:
-Identification -Containment -Protection -Convenience -Consumer appeal -Economy
FOUR role of branding:
-Offers recognition and identification of the product -Adds value to the product -Offers differentiation -Builds brand loyalty and brand equity
FOUR Business markets purchase decisions depend on:
-Price and quality -Product demonstrations -Delivery time -Terms of sale and dependability
*2 START: FOUR Fundamental Assumptions Characterized by Free-Market Economics:
-Self-interest -Many buyers and sellers -Complete information -Absence of externalities
*FIVE Marketing Communications Methods:
-advertising -personal selling -sales promotion -direct marketing -public relations
Identify the TWO statements about the effects of advertising on competition:
-advertising by big companies often has minimal impact on small businesses -the entry of new competitiors is restricted in industries that have large advertising budgets
According to marketing professionals, what are the FOUR benefits of advertising:
-advertising keeps people employed -advertising encourages the development and acceptance of new products and tech -advertising supports freedom of the press and serves to spread public info on important issues -advertising helps lower prices and encourages healthy competition between producers
Identify THREE different ways used to classify tangible goods:
-by the consumption or degree of tangibility -by markets or by physical attributes -by the purchasing habits of buyers
FOUR Factors Affecting the Client-Agency Relationship:
-chemistry -communication -conduct -changes
Identify TWO advantages of franchising as a vertical marketing system:
-consumer recognition -substantial savings and continually advertising
Identify THREE sources that local advertisers depend on for creative help when creating local advertisements:
-cooperative advertising programs of wholesalers, manufactures, and trade associations -reps from the local media and local ad agencies -Freelancers and consultants
Identify FOUR types of local advertisers:
-dealers or local franchisees of national companies -speciality businesses and services -stores that sell a variety of branded merchandise -governmental and nonprofit organizations
Identify THREE types of specialists who may be employed by large agencies depending on the nature and needs of the agencies clients:
-digital designers -public relations people and direct marketing specialists -social media experts or package designers
Identify TWO steps involved in the market segmentation process:
-dividing groups into larger market segments based on their interest in the utility of a product -distinguishing groups of people or organizations with certain mutual needs and characteristics
Identify TWO important transitions that have occurred over time in the advertising industry:
-economic downturn -industry consolidation
Advertising in the late 20th century was focused on which THREE of the following:
-growing exsisting businesses -executing more creative campaigns -acquiring more companies
Identify the TWO factors that should be considered while estimating the profits that the company might realize in the context of market segmentation:
-if it aims at the whole market -if it caters to specific segments
Select THREE key factors that influence the pricing of a product:
-market demand for the product -costs of product and distribution -competition and corporate objectives
The THREE personal process are the:
-perception, the learning or persuasion and the motivation process -perception, sensation, and stimulation, and cultural influences -sensation, family and society, and the inhibitory processes
The THREE economic factors that characterized marketing during the postindustrial age:
-the aging of traditional products -an increase in competition -the growing wealth and sophistication pf consumers
Identify THREE features of decentralized departments:
-the system gives significant authority to the individuals responsible for each brand -They have more flexibility and agility regarding campaign schedules and the introduction of creative ideas -they often concentrate on their own budgets, problems, and promotions rather than the good of the whole company
Identify TWO steps taken by advertising practitioners to safeguard the integrity of the advertising industry:
-they established committees to enhance the effectiveness of their ads -they created groups to promote professionalism
identify THREE social responsibilities of the adverting industry in the US:
-to participate in civic events -to improve the community -to support local enterprises
Identify TWO reasons why companies use business advertising:
-to reach consumers who buy products or services to use to manufacture other products -to reach consumers who buy products or services to resell
FOUR Stages of product life cycle:
1. Introduction 2. Growth 3. Maturity 4. Decline
Arrange the THREE personal processes in the order that they are used by advertisers to influence consumers:
1. perception 2. learning and persuasion 3. motivation
Consumer decision process: FIVE
1. problem recognition 2. information search 3. evaluation and selection 4. store choice and purchase 5. post purchase behavior
Maslow's model of hierarchy needs: FIVE
1. self actualization needs 2. esteem needs 3. social needs 4. safety needs 5. physiological needs
The steps in the traditional model of human communication:
1. source 2. encoding 3. message 4. channel 5. receiver 6. decoding
Rank the five steps involved in interpreting desired segments of info about a product to the public in which they should be followed by advertising agencies:
1. studying the clients products to determine its strengths and weaknesses 2. analyzing the products present and potential market 3. formulating a plan to carry the advertisers message to customers 4. Writing, designing, and producing advertisements 5. Contracting for media space and time and verifying media insertions
Attitude
Acquired mental position regarding some idea or object
Habit
Acquired or developed behavior pattern that has become nearly or completely involuntary
Consumer behavior
Activities, actions, and influences of people who purchase and use goods to satisfy particular needs and wants
Localized approach to advertising
Adaptation of products, packages, and advertising campaigns to suit each market
*Small agencies agency administration
Administrative functions are handled by the firm's principals
National advertisers
Advertise in several geographic regions or throughout the country
Public service announcements
Advertisement that serves public interest, for a nonprofit organization, carried by the media at no charge
Subliminal advertising
Advertisements with messages embedded in illustrations below the threshold of perception
Local advertising
Advertising by businesses within a city or county directed toward customers within the same geographic area
Incentive system
Agency shares in the client's success when a campaign attains specific, agreed-upon goals
Speculative Presentations
Agency's presentation of the advertisement it proposes to use, if hired
Art directors
Along with graphic designers and production artists, determine how verbal and visual symbols fit together
Price element
Amount charged for the good or service
*Abundance principle
An economy produces more goods and services than can be consumed
Web design houses
Art/computer studios with specialists in HTML and Java
Target market selection
Assessing which of the newly created segments offer the greatest profit potential and is the most successfully penetrated
Suppliers
Assist advertisers and agencies in the preparation of advertising materials
Positioning
Association of a brand's features and benefits with a particular set of customer needs, differentiating it from the competition (Buick)
Institutional advertising
Attempts to gain attention for the business as a whole and intends the effects to be long term
Price claims
Avoid false or misleading, or savings claims that do not offer provable savings
Demographic segmentation
Based on a population's statistical characteristics with quantifiable factors
Externalities
Benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction
*Account planning
Bridges the gap between traditional research, account management, and creative direction
*Integrated marketing communications
Building and reinforcing mutually profitable relationships with the stakeholders and general public
Printers
Businesses that employ or contract with specialists
Unfair advertising
Causes a consumer to be unjustifiably injured or violates public policy
Decline stage
Cease promotions, phase out the product
Persuasion
Change in thought process or behavior caused by promotion communication
Growth stage
Characterized by rapid market expansion
What is the regulatory agency that is used when advertising to children:
Children's Advertising Review Unit
Evaluation of alternatives
Choosing among brands, sizes, styles, and colors
*Substantiation
Claims are substantiated by evidence in possession of the advertiser and the advertising agency prior to making such claims
Comparative advertising
Claims superiority to competitors in some aspect
North american industry classification system codes
Classify all businesses based on broad industry groups, subgroups, and detailed groups in smaller firms
Demarketing
Coined during the energy shortage of in the 1980s when advertising was used to slow the demand for products
Brand
Combination of name, words, symbols or designs that distinguishes a product from competitors
Geodemographic segmentation
Combining demographics with geographic segmentation to select target markets in advertising
Medium
Communication vehicle that transfers a message from the sender to the receiver
3 END: Research suppliers
Companies that conduct and analyze marketing research
Production houses
Companies that specialize in film or video production
3 START: Advertisers
Companies that sponsor advertising for themselves and their products
Media commission
Compensation paid by a medium to recognized advertising agencies for advertising placed with it
Patent
Confers upon the creator of an invention the sole right to make, use, and sell that invention for a set period of time
Business markets
Consists of people who buy goods and services for resale, for use in their own business, or for manufacturing other products
Consumer markets
Consists of people who buy the product for their own or someone else's personal use
Primary demand
Consumer demand for a whole product category
Secondary demand
Consumer demand for the particular advantages of one brand over another
Selective demand
Consumer demand for the specific advantages of one brand over another
Negatively originated motives
Consumer purchase and usage based on problem removal or problem avoidance
Receiver
Consumer who receives the advertiser's message
Brand loyalty
Consumer's decision to repurchase a brand continually
Positively originated motives
Consumer's motivation to purchase and use a product based on a positive bonus that it promises
Product concept
Consumer's perception of a product or service as values that satisfy functional, social, psychological, and other wants and needs
Traffic department
Coordinates all phases of production and ensures completion before the deadline
Integrated marketing communication
Coordination and integration of messages from a variety of sources
Psychographic segmentation
Defining consumer markets based on psychological variables like values, personality, and lifestyle
*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
Advertising strategy
Describes how to achieve the advertising objectives
Art studios
Design and produce artwork and illustrations for advertisements
Postpurchase evaluation
Determining whether a purchase has been a satisfactory or unsatisfactory one
Advertising agencies
Develop and prepare advertising plans, advertisements, and other promotional tools for advertisers
Individual brand
Different brand name for each product a company makes
Sales promotion
Direct inducement to accelerate the movement of the product from the producer to the consumer
Unique selling proposition
Distinctive benefits that make a product different than any other
Induced differences
Distinguishing characteristics of products effected through unique branding, packaging, distribution, merchandising, and advertising
Nonpersonal channels
Do not involve interpersonal contact between the sender and the receiver
Consent decree
Document signed by advertisers without admitting any wrongdoing, in which they agree to stop objectionable advertising
Social responsibility
Doing what society views as best for the welfare of the people or specific community
Ethical advertising
Doing what the advertiser and advertiser's peers believe is right in a given situation
Introductory phase
Early adopters are key to stimulate primary demand
Resource axis
Education, income, self-confidence, health, and eagerness to buy
1 START: Marketing communications
Efforts and tools used to communicate with customers
*Marketing mix
Elements that are added, subtracted, or modified by a company to create a desired marketing strategy
*Centralized advertising department
Employees located at corporate headquarters, responsible for the organization's advertising
*Decentralized system
Establishment of advertising departments by products or in various divisions, subsidiaries, countries that suit the firm's needs
Consumer package goods
Everyday-use consumer products packaged by manufacturers and sold through retail outlets
*Interactive revolution
Evolution of advertisement into a two-way medium
Puffery
Exaggerated, subjective claims that cannot be proven true or false (elf worlds best cup of coffee)
What is the regulatory agency that is used when advertising to help consumers keep their privacy:
Fair Information Practice Principles
Regional agencies
Focus on the production and placement of advertising suitable for regional campaigns
FIVE Products problem solving potential:
Form, task, possession, time, or place utility
Taste and decency
Free of statements, illustrations, or implications that are offensive to good taste or public decency
Referrals
From peer agencies, clients, and review consultants
Product adverting
Functional classification of advertising that promotes goods and services
Demographic
Gender, family size, family life cycle, income, occupation, education, religion, race and nationality
Exclusive distribution
Granting exclusive rights to one dealer in an area
Family brand
Group of products that can help each other under one umbrella name
Psychographics
Grouping of consumers into market segments on the basis of psychological makeup
International agencies
Have offices or affiliates in major communication centers around the world and help their clients market internationally
Large agencies agency administration
Have various departments to handle administrative functions
Creative director
Head of the creative team of agency copywriters and artists, who is assigned to a client's business and is responsible for the creative product
Culture
Homogeneous group's whole set of beliefs, attitudes, and ways of doing things
Marketing
Identifying and satisfying customers' needs for profits
*Market segmentation
Identifying groups of people or organizations with shared needs and characteristics
Branding
Identifying products and their source and differentiating them from all other products
Self concept
Images individuals carry in their minds of the type of person they are and who they desire to be
Hidden differences
Imperceptible but existing differences that may affect the desirability of a product
Consumer involvement
Importance or relevance of a decision to a consumer
Added value
Increase in worth of a product or service
Consumer advocate
Individual or group that actively works to protect consumer rights
Brand interest
Individual's openness or curiosity about a brand
Network marketing
Individuals act as independent distributors for a manufacturer or private-label marketer
Brand managers
Individuals in the advertiser's company with the authority and responsibility for marketing a particular brand
services =
Intangiables
Intellectual property
Intellectual works legally protected by copyright, patent, or trademark
Personal channels
Involve direct contact between the parties
Cease and desist order
Issued by the FTC if an advertiser won't sign a consent decree, Prohibits further use of an ad
*Account executive
Liaison between the agency and the client
Selective distribution
Limiting the number of outlets or dealers
Foreign media
Local media of each country used for campaigns targeted to consumers or businesses within a single country
Vertical marketing system
Main members of a distribution channel work together as a cooperative group
*Incentive distribution
Making goods available at every possible location
*Affirmative disclosure
Making known a product's limitations or deficiencies
Target market
Market segment or group within the market segment toward which all marketing activities will be directed
? START: The various efforts and tools companies use to relay information about products to customers, including newspaper ads, event sponsorship, publicity, telemarketing, digital ads, and coupons:
Marketing communication
Market concentration
Markets can be focused in specific regions or areas
5 START: Channel
Means by which the encoded message reaches the receiver
*User status
Measured by categorizing consumers based on the varying degrees of loyalty to certain brands and products
International media
Media serving several countries, without change, that is available to an international audience
Deceptive advertising
Misrepresentation, omission, or other practice that can mislead consumers to their detriment
Wants
Needs learned during a person's lifetime
Maturity stage
New customers dwindle
Comparisons
Not make false, misleading, or unsubstantiated claims about a competitor or his/her products or services
Bait adverting
Not offer products for sale unless the offer constitutes a bonafide effort to sell and does not lead consumers to goods at a higher price
Perception
One's personalized way of sensing and comprehending stimuli
Multinational corporations
Operate and invest throughout many countries and make decisions based on availabilities worldwide
Regional advertisers
Operate in one part of the country
Group system
Organization of an ad agency into a number of little agencies or groups
Departmental system
Organization of an ad agency into departments
Creative boutiques
Organizations of creative specialists working for advertisers and agencies to develop creative concepts, advertising messages, and specialized art
Evoked set
Particular group of alternative goods a consumer considers when making a buying decision
Primary motivation
Pattern of attitudes and activities that help people reinforce, sustain, or modify social and self-image
*5 END: Cognitive dissonance
People try to justify their behavior by reducing the inconsistency between their cognitions and reality
Reference groups
People we try to emulate or whose approval concerns us
Copywriters
People who create the words and concepts for ads and commercials
Advertising manager
Performs all the administrative, planning, budgeting, and coordinating functions
Preindustrial age
Period between the beginning of written history and the nineteenth century
Industrial age
Period covering approximately the first 70 years of the twentieth century
Industrializing age
Period from mid-1700s through end of World War I when production was the major concern of manufacturers
Postindustrial age
Period of cataclysmic change, from 1980, when people became aware of the sensitivity of the environment
Interactive media
Permit consumers to give instantaneous, real-time feedback on the same channel used by the sender
Stimulus
Physical data that can be received through the senses
*Perceptual screens
Physiological or psychological filters that messages must pass through
Advertising services
Planning, creating, producing advertisements, performing research, and media selection
Cognition
Point of awareness and comprehension of a stimulus
Product differentiation
Portraying one brand as different and better than similar competitive products
National agencies
Produce and place the quality of advertising suitable for national campaigns
Small promotions department
Produce dealer ads, window posters, point-of-purchase displays, and dealer sales material
Non advertising functions
Producing sales promotion materials, publicity articles, annual reports, trade show exhibits, and sales training materials
Benefits
Product attributes offered to customers, such as high quality, low price
National brand
Product brands that are marketed in several regions of the country
*4 START: Utility
Product's ability to satisfy both functional needs and symbolic or psychological wants
Private label
Products resold to distributors or dealers to be sold as their own brands at lower prices
Primary demand trend
Projection of future consumer demand for a product category
*Transformational motives
Promise to transform consumers through sensory gratification, intellectual stimulation, or social approval
Advertising self regulatory agency
Promotes and enforces standards of truth, taste, morality, and social responsibility
*Elaboration likelihood model
Proposes that the method of persuasion depends on the consumer's level of involvement with the product and the message
Copyright
Protects the original work from being plagiarized, sold, or used by another without the individual's express consent
Behavioristic
Purchase occasion, benefits sought, user status, usage rate, loyalty status, readiness stage, and marketing-factor sensitivity
*Resources
Range of psychological, physical, demographic, and material capacities that consumers can draw upon
Perceptible differences
Readily apparent differences in products to consumers
Geographic
Region, county size, climate, city, and density
Learning
Relatively permanent change in thought processes or behavior as a result of reinforced experience
General consumer agency
Represents a variety of accounts but concentrates on companies that make goods purchased by consumers
B2B agency
Represents clients that market products to other businesses
Corrective advertising
Required by the FTC for a period of time to explain and correct offending ads
Production department
Responsible for managing the transformation of creative concepts into finished advertisements and collateral materials
*Franchising contractual marketing system
Retail dealers pay a fee to operate under the guidelines and direction of the parent company or manufacturer
Guarantees and warranties
Reveal where the full text can be examined before purchase by being explicit
Broadcast standards department
Reviews all programs and commercials to be broadcast to see that they meet all applicable standards
Subculture
Segment within a culture that shares a set of meanings, values, or activities different from those of the overall culture
Behavioristic segmentation
Segmenting consumers based on the benefits being sought
Geographic segmentation
Segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within a region
*Purchase occasion
Segmenting markets on the basis of when consumers buy and use a good or service
Benefit segmentation
Segments consumers based on the benefits being sought
Direct distribution
Selling directly to consumers
Indirect distribution
Selling to customers through resellers or a distribution channel
Noise
Sender's advertising message competing with other commercial and noncommercial messages
Consumer decision process
Series of steps a consumer goes through in deciding to make a purchase
*Consumerism
Social action designed to dramatize the rights of the buying public
Interpersonal Influences on Consumer Behavior
Social influences on the consumer decision-making process
Psychographic
Societal divisions, lifestyle, and personality
Opinion leader
Someone whose beliefs or attitudes are respected by people who share an interest in some specific activity
Markup
Source of agency income gained by adding some amount to a supplier's bill
Local agencies
Specialize in creating advertising for local businesses
Media buying service
Specializes in purchasing and packaging radio and television time
*Interactive agency
Specializes in the creation of ads for a digital medium
Target audience
Specific group of individuals to whom the advertising message is directed
Evaluative criteria
Standards a consumer uses for judging the features and benefits of alternative products
Marketing strategy
Statement of how the company will accomplish its marketing objectives
Sale advertising
Stimulates movement of a particular merchandise or increases store traffic by emphasizing price reduction
Mental files
Stored memories in consumers' minds
*Advertising
Structured and composed nonpersonal communication of information that are paid for and persuasive in nature
*Management account supervisors
Supervise account executives and report to the agency's director of account services
Decode
To interpret a message by the receiver
Proliferation of advertising
Too much exposure to advertisements in all media
Exchange
Trading of one thing for another thing of value
Social classes
Traditional divisions in societies wherein people in the same social class tended toward similar attitudes, status symbols, and spending patterns
Motivation
Underlying drives that stem from the conscious or unconscious needs of the consumer
Global marketers
Use a standardized approach to marketing and advertising in all countries
Endorsements
Use of satisfied customers and celebrities to endorse a product in advertising
Testimonials
Use of satisfied customers and celebrities to endorse a product in advertising
*Physiological screens
Use the senses to detect incoming data and measure the dimension and intensity of the stimulus
*Classified advertising
Used to locate and recruit new employees, offer services, or sell or lease new and used merchandise
Brand equity
Value of the brand's capital
Feedback and interactivity
Verifying that the message was received
Cognitive theory
Views learning as a mental process of memory, thinking, and the rational application of knowledge to practical problem solving
Conditioning theory
Views learning as a trial-and-error process
Marketing mix
Way a company mixes and blends different marketing elements to create a marketing strategy
In house agency
Wholly owned by an advertiser and is set up and staffed to do all the work of an independent full-service agency
Trademark
Word, name, symbol, device, or any combination adopted and used by manufacturers or merchants
Copy
Words that make up the headline and message of an advertisement or commercial
*Networking and community relations
Work pro bono for charities or nonprofit organizations to make new contacts
Individual brand:
a brand used to assign a unique name to each product a manufacturer produces
Family brand:
a brand used to market different products under the same name
Selective demand ex.:
a demand for ford cars over Toyota cars
Primary demand ex.:
a demand in cars in general
Contractual VMS:
a formal agreement is made between the numerous levels of the distribution or production channel to coordinate the overall process
Branding:
a marketing function that identifies products and their source and differentiates them from all other products
Straight fee method
a method of compensation for ad agency services in which a retainer is based on a cost plus fixed fees formula
Target audience:
a particular group at which the firm targets its 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
A firm that conducts business between the producer and the consumer or and industrial purchaser is:
a recruiter
DDB Needham, one of the world's largest ad agencies, formed a company with director Spike Lee called Spike DDB. The purpose of the new company was to develop ways to tap into urban trends and to increase minorities' use of its client's brands. The company relied on the creative abilities of director Spike Lee to produce fresh, distinctive advertising messages. Spike DDB would be categorized as a(n): a. creative boutique. b. interactive agency. c. entrepreneurial agency. d. IMC agency. e. promotional facilitator.
a. creative boutique.
With _____, marketers group people by their values, attitudes, personality, and lifestyle. a. psychographics b. lifestyle positioning c. attitudinal positioning d. demographics e. geodemographics
a. psychographics
This states that in an economy with more goods and services that can be consumed, advertising serves the important purposes of providing consumers with info about their choices while also giving companies the opportunity to compete for sales:
abundance principle
The increase in worth of a product or service to a consumer as a result of advertising efforts is:
added value
Media planning is extremely important because:
advertisers can only communicate through some medium
What is true about the use of foreign media by advertisers:
advertisers using foreign media must produce their ads in the language of each country
The structured and composed nonpersonal communication of info, usually paid for and usually persuasive in nature, about products by identified sponsors through various media:
advertising
The person who handles such functions as administration, budgeting, planning, and coordination in a small, local business is:
advertising manager
Account supervisors:
also called management supervisors and report to the agency;s director of account services
Cognitive theory:
applicable to complex purchases that require significant involvement
Conditioning theory:
applicable to simple purchases that require little involvement
Under current advertising law, the only product claims- explicit or implied- that are considered receptive are those that:
are factually false or convey a false impression
Alan did not notice the ad for Goodwater riding equipment in Western Horseman because he was much more interested in an article on Argentinian cowboys on the page opposite the equipment ad. In terms of the communication process, the article on Argentinian cowboys served as _____ for the Goodwater ad. a. a source maze b. noise c. a reception blocker d. feedback e. Information overload
b. noise
Mike and Lou are going to the mall. Mike wants to buy a pair of jeans and Lou wants to buy a pair of Levi boot-cut jeans. Mike illustrates _____ demand while Lou illustrates _____ demand. a. longitudinal; circular b. primary; selective c. external; internal d. selective; primary e. secondary; kinked
b. primary; selective
When the city of Pensacola, Florida, advertises itself as "the perfect place for the perfect Florida vacation" it is using: a. deceptive advertising. b. puffery. c. unfair advertising. d. niche marketing. e. exploitation.
b. puffery.
Needs
basic, instinctive, human forces that motivate people to do something
The segmentation of consumers based on their purchasing behavior is called:
behavioristic segmentation
The method of segmenting consumers based on the benefits they are seeking is known as:
benefit segmentation
A company uses a horse as its logo to differentiate its products from other products, this is an example of:
branding
Manufacturers, government agencies, whole sellers, retailers, banks, and institutions that buy goods and services constitute:
business markets
Identify a way in which advertising can add value to a brand:
by teaching consumers about new ways to use a product
What is the most likely advantage of using an independent advertising agency instead of an in-house agency? a. Organizational vision b. Lower commissions c. Greater experience d. Reduced overhead e. Distribution control
c. Greater experience
_____ is the product's ability to satisfy both functional needs and symbolic wants. a. Product equity b. Market position c. Product utility d. Product satisfaction e. Market satisfaction
c. Product utility
Which of the following statements about how advertising affects price is most likely true? a. Advertising always increases the price of a product—never lowers it. b. Advertising has a strong effect on the price of agricultural products such as soybeans. c. The consumer who buys the product pays for the advertising. d. Advertising has had a significant impact on the prices charged by utilities. e. The amount typically spent on advertising is large compared with total sales.
c. The consumer who buys the product pays for the advertising.
The Values and Lifestyles (VALS) typology uses a two-dimensional structure based on: a. consumer behavior and product characteristics. b. geographic variables and consumer perceptions. c. primary motivation and resources. d. target marketing strategy and product positioning strategy. e. self-orientation and product differentiation.
c. primary motivation and resources.
In this kind of advertising, the advertising manager generally reports to a marketing vice president:
centralized advertising department
A vertical marketing system such as franchising offers the advantages of:
centralized coordination of marketing efforts
The means by which an encoded message makes its way from the source to the receiver is known as the:
channel
*Media
channels of communication
To make sense of a perceived stimulus by relating it to something a person already knowns is the role of:
cognition
A description of how people gain knowledge from the experience of others and how they assess a complex purchase can be provided by:
cognitive theory
All marketing related communication between a seller and a buyer are a part of the promotion, or:
communication element
The media:
communications vehicles such as radio and television networks who are paid to present an advertisement to their target audience
Decentralized organization is more practical than a centralized organization when:
companies become larger, more diversified, or established divisions in different countries
Advertisers:
companies that sponsor advertising for themselves and their products
According to this theory, a stimulus ignites a consumers need or desire, which than causes a need to respond:
conditioning
The mental and emotional processes and the physical activities of people who buy and use goods and services to meet the needs and wants constitute:
consumer behavior
The degree of importance or relevance of a decision to a consumer refers to:
consumer involvement
Individuals who buy products and services for their own, or someone else's personal use:
consumers
The sharing of advertising costs by the manufacturer and the distributor or retailer is called:
cooperative advertising
In free market economics, it is believed that providing complete info about the products that are available in the market helps to:
create greater competition and lower prices for all products
Hudson Pool and Spa, owned by Jill and Joel Hudson, sells and installs above-ground swimming pools and Beachcomber brand hot tubs. The manufacturer of the Beachcomber hot tub has sent the Hudsons a letter in which it offers to pay 50 percent of the advertising cost if the Hudsons will run a newspaper ad featuring the Beachcomber hot tubs. What type of advertising is the Beachcomber manufacturer suggesting they use? a. Horizontal advertising b. Vertical advertising c. A strategic promotion d. Cooperative advertising e. A franchise promotion
d. Cooperative advertising
____ is the process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. a. Management b. Advertising c. Communications d. Marketing e. Logistics
d. Marketing
In terms of the human communication process model, what role does the sponsor of the advertisement play? a. Receiver b. Feedback c. Channel d. Source e. Message
d. Source
Account executives are: a. typically employed by nonprofit organizations. b. the sole media buyers at most in-house advertising agencies. c. agents that handle multiple, noncompeting accounts. d. the liaisons between the agency and the client. e. brokers of advertising services to small firms.
d. the liaisons between the agency and the client.
The establishment of advertising departments by products or brands in various divisions, subsidiaries, countries, regions, or other categories that operate with significant independence is referred to as a:
decentralized system
Administered VMS:
decisions are made by one dominant member of the production and distribution chain
A term created during the energy shortage of the 1970s and 1980s to define advertising that was used to slow the demand for products is:
demarketing
This is a device that is similar to a VCR but that records programs on a hard drive in digital format, provides high quality image and sound, and has the ability to pause live TV:
digital video recorder
Infused differences:
distinguishing characteristics of products created through unique branding, packaging, distribution, merchandising, and advertising
Deciding how and where customers will buy a companies product is:
distribution element
What is a question that targets the economic role played by advertising:
does advertising promote competition or discourage it?
What question deals with a societal effect of advertising:
does advertising reach people subliminally?
Adolph Coors Co. ran an ad which featured a purported taste test between Aspen Edge and Anheuser-Busch's Michelob Ultra. A taste-tester downed a glass of Aspen Edge and took only a sip of Michelob Ultra. A print version of the ad said, "Beer drinkers agree that Aspen Edge has more taste than Michelob Ultra." This ad is an example of _____ advertising. a. corrective b. cease-desist c. consent d. professional e. comparative
e. comparative
According to the human communication process, a person who responds to an online Starbucks survey is most likely: a. creating Internet noise. b. using integrated marketing communications. c. utilizing a new communication channel. d. acting as a source. e. providing feedback.
e. providing feedback.
For a receiver to understand what is being communicated by the source, the infer in a message must be:
encoded
National brands:
expensive for manufactures to market
zAccording to the principles of free-marketing economincs, this term refers to the benefits or harm caused by the purchase or use of products to people who are not involved in the transaction and who do not pay for the product:
externalities
2 END: Objective adverting
facts based
True or false: people never regard nudity as offensive if it is relvant to the product:
false
National advertisers:
focuses on brand, markets, market share, and strategies
Breaking habits:
forces a consumer to unlearn a buying habit and to also try something new
Effect of Advertising on the Value of Products:
gives brands added value
Multinational corporations that use a standardized approach to advertising and marketing throughout the store:
global marketers
Cognitive theory is applicable to:
high involvement purchases
1 END: Positioning statement
how you're going to enter the market and communicate whats different than others
Media that permit consumers to give immediate feedback on the same channel used by the original message refers to:
incentive media
A form of compensation in which the agency shares in the clients success when a campaign reaches specific, agreed upon goals is referred to as the:
incentive system
Advertising agencies:
independent organizations of specialists who help advertisers plan, create, and prepare IMC campaigns
Interpersonal influences:
influential factors of family, society, and culture
Nonpersonal influences:
influential factors of time, place, and environment
The combination of every element that directly affects and involves customers, such as advertising, publicity, and the delvery of the product or service is:
integrated marketing communications
A disadvantage of advertising is that it:
interferes with free press
Identify a way in which advertising has helped lower prices:
it allows manufacturers to mass produce products which result in lower prices
Identify a negative effect of deception in advertising:
it could be self-defeating
An effect of ad clutter:
it decreases ad effectiveness
Identify a common criticism of advertising:
it does not always act in the publics best interest
The freedom to advertise promotes the existaence of more sellers. How does this affect consumers:
it gives consumers more choices
Resources:
it relates to the range of psychological, physical, demographic, and material capacities that consumers can draw on
How does advertising affect competition between firms:
it restricts competition because small companies lack the immense advertising budget of large firms
A variation of the FCB grid that shows peoples ability to be both cognitively and affectively engaged at the same time is called:
kim-lord grid
Account executives:
liaisons between the agency and the client who are responsible for managing all the agency's services for the benefit of the client and for representing the agency's point of view to the client
Tobacco advertising
limits on advertising where children were- like they can't use cartoon characters to sell their harmful tobacco
Conditioning theory is applicable to:
low involvement purchases
Repositioning
make products new, hit a new demo (TGI fridays)
According to the American Marketing association, the actions, set of instructions, and methods of creating, communicating, delivering, and sharring offerings that provide value to cutomers, clients, partners, and society is generally known as:
marketing
The various efforts and tools companies use to initiate and maintain communication with customers and prospects refer to:
marketing communication
Advertising is a type of:
marketing communications
The way a marketer combines the various strategic options related to product, price, distribution, and communication to create a companies marketing strategy is called:
marketing mix
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 inducing trial purchases and repurchase by consumers
A source of agency income gained by adding some amount to a supplier's bill, usually 17.65 percent, is known as:
markup
Radio, tv, newspapers, magazines, and billboards are examples of:
mass media
When an agency collects a fee from a client to pay for media placement, that media company pays the agency this, in compensation for handling collections from the client:
media commission
This is used to describe the purchase by large, multinational companies of other large firms with the aim of increasing their power internationally:
megamerger
Ethics and social responsibilities should be considered the:
moral duty of advertisers to safeguard people's basic economic assumptions
Various organizations, including consumer groups, governments, and even advertisers, implement reviews and checks and balances of advertising with the goal of creating:
more complete info and maintain ethical standards
Various organizations, including consumer groups, goverments, and even other advertisers, implement reviews and checks and balances of advertising with the goal of creating:
more complete info and maintaining ethical standards
Corporations that operate and invest in many countries and make decisions based on availabilities worldwide are known as:
multinational corporation
Do regional advertisers or national advertisers have long term campaign?
national
Companies that advertise and market their product in several regions or all across the country are called:
national advertisers
The most typical motivators of consumer behavior are:
negatively originated motives
The census bureau uses this to offer marketers a great deal of info including the number and size of firms by region:
north american industry classification system
Subjective advertising
opinion based (papa johns better pizza than pizza hut)
Suppliers:
people and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production
The way people discern raw data and translate them into feelings, thoughts, beliefs, and action is governed by the:
personal process
According to the theory of learning, the concept that is closely linked to learning is:
persuasion
Product differentiation creates a product variance that is important to the:
preferences of a specific market segment
In the marketing mix, the amount charged for the goods or services, including details, discounts, terms, and warranties refers to the:
price element
The four P's of the marketing mix:
product, price, place, promotion
What are the four elements of the marketing mix?
product, price, place, promotion
To sell something for 1.99 instead of 2, uses the pricing strategy of:
psychological pricing
When a company has ads that support an organization that does good in the world free of cost:
public service announcements
Over the top, subjective claims that cannot be proven to be true or false:
puffery
Do regional advertisers or national advertisers have short term campaign?
regional
Companies that operate and market exclusively within an area, such as one part of the country are called:
regional advertisers
Reenforcing habits:
remind a existing customer of the value of the first purchase and encourages the customer to keep buying
The primary target for brand advertising should be:
repertoire users
Licensed brands:
require a substantial fee to be used by other companies
Account planning involves:
researching consumer needs and desires and helping the creative team translate the findings into successful campaigns
Wants:
sarah buys herself designer boots with the money she has earned at her extra job
Needs:
sarah cooks a meal for herself because she is hungry
Peoples perception of their own attitudes, beliefs, interests, and lifestyle contribute to their:
self concept
Acquiring habits:
shows a buyer how to repurchase a brand or become a repeat customer to an establishment
In the context of local advertising, social media have the ability to:
significantly impact the strategies of local advertisers
The party that formulates an idea, encodes it as a message, and sends it via some channel to a receiver is known as the:
source
? END: Refers to the physical date that can be received through the senses:
stimulus
According to Wilson bryan key, advertisments with embedded sexual messages in the illustrations are intentionally created by advertisers to seduce consumers into buying a product, this is called:
subliminal advertising
By conveying positive images of a product, the advertising for the product implies:
superior quality of the product itself
by conveying positive images of a product, the advertising for a product implies a:
superior quality of the product itself
Goods =
tangiables
The market segment or group within the market segment toward which all marketing activities will be directed is known as the:
target market
The process by which an advertiser focusses its marketing efforts on a target market is known as:
target marketing
Message:
the ad
Receiver:
the consumer or product
National advertisers have tried to move away from stereotypical portayals of minorities and women because:
the consumers make up considerable target markets
Noise:
the din of competing ads
Local advertising is extremely important because:
the majority of consumer sales are are locally
According to critics, advertisments are able to negatively affect people's value systems and influence them into becoming more materialistic because:
the manipulate peoples emotions and suggest they can achieve superiority
Channel:
the medium
Group system:
the organization of an ad agency into a number of small agencies each having the various people required to meet the needs of the particular clients being served by the small agency
Departmental system:
the organization of an ad agency into beaches based on function
Target market:
the particular segment of population at which a firm aligns marketing efforts
Primary motivation:
the pattern of attitudes and activities that help people reinforce, sustain, or modify their social self image
Evaluation of alternatives:
the process of choosing brands, styles, sizes and colors
Post purchase evaluation:
the process which influences a consumers subsequent purchase
Generally, advertising provides useful info, which in turn helps create consumers and sellers, thus contributing to:
the self interest of both buyers and marketers
Source:
the sponsor
*State legislation for advertising is based on:
the truth-in-advertising statute
Corporate VMS:
the various levels of the distribution or production channel are owned by one company
A true statement about local advertising clubs formed by us advertising professionals for carrying out their social duties:
these organizations offer pro bono work to charitable organizations and public agencies
4 END: Unsought goods
things you don't need very often- when you buy this item you get it because you have to use it- might not know much info on it (american standard toilette)
Why does every company focus on creating a marketing strategy:
to help determine the target audience of its advertising messages
*Business advertising is segmented into THREE groups:
trade, professional, and agricultural
The department in an advertising agency that coordinates all phases of production and ensures deadlines are met is known as the:
traffic department
Positively originated motives such as sensory gratification, intellectual stimulation, and social approval are called this, because the consumer expects to be transformed in a sensory, intellectual way:
transformational motives
Private labels:
typically sold at lower prices in big retail stores
In volume segmentation, to define consumers as light, medium, or heavy users of products, marketers use:
usage rates
Product advertising:
used to increase the movement of particular merchandise or generally increase store traffic by offering sales and discounts
Classified advertising:
used to offer services such as those of an employment agency or business opportunity broker
Institutional advertising:
used to promote a desired image of the company and build long term goodwill with customers
Local advertisers focus on:
volume, location, tactics, and customers
Differentiation
what's different between competition
Co op advertising
when a store will feature a specific brand in it's advertisements