advertising chapters 1-4
speculative presentation
: agency's presentation of the advertisement it proposes using in the even it is hired, usually made at request of prospective client
DVRs digital video recorders
A device (such as TiVo) that is similar to a VCR, but records programs on a hard drive in digital format, providing high-quality image and sound and the ability to "pause live TV".
sales promotion
A direct inducement offering extra incentives all along the marketing route-from manufacturers through distribution channels to customers- to accelerate the movement of the product from the producer to the consumer.
branding
A marketing function that identifies products and their source and differentiates them from all other products
process
A sequence of actions or methods aimed at satisfying consumer needs profitably
PSA's public service announcements
An advertisement serving the public interest, often for a nonprofit organization, carried by the media at no charge.
medium
An instrument of communications vehicle that carries or helps transfer a message from the sender to the receiver
marketing
An organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
web design houses
Art/computer studios that employ specialists who understand the intricacies of HTML and Java programming languages and can design ads and web pages that are effective and cost efficient
externalities
Benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction and didn't pay for the product
narrowcasting
Delivering programming to a specific group defined by demographics and/or program content, rather than mass appeal. Usually used to describe cable networks. The opposite of broadcasting.
ideas
Economic, political, religious, or social viewpoints that advertising may attempts to sell
consumer packaged goods
Everyday-use consumer products packaged by manufacturers and sold through retail outlets. Generally these are goods such as food and beverages, health and beauty care, cleaning products and detergents that get used up and have to be replaced frequently
marketing mix
Four elements, called the 4ps that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy. Product, price, place, promotion
advertising agencies
Independent organizations of creative individuals that specialize in preparation of advertising plans, advertisements and other promotional tools; also arrange for or contract for purchases of space and time in media
product differentiation
Manufacturers portraying their brands a different from and better than similar competitive products through advertising, packaging or physical product differences.
consumers
People who buy products and services for their own, or someone else's, personal use.
post industrial age
Period of cataclysmic change, starting in about 1980, when people first became truly aware of the sensitivity of the environment in which we live.
pre industrial age
Period of time between the beginning of written history and roughly the start of the nineteenth century, during which the invention of paper and the printing press and increased literacy gave rise to the first forms of written advertising
mass media
Print or broadcast media that reach very large audiences. Radio, television, newspapers, magazines, and billboards
market segmentation
Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregation these groups into larger market segments according to their mutual interest in the product's utility.
goods
Tangible products such as suits, soap and soft drinks
demarketing
Term coined during the energy shortage of the 1970s and 1980s when advertising was used to slow the demand for products.
advertising strategy
The advertising objective declares what the advertiser wants to achieve with respect to consumer awareness, attitude, and preference; the advertising strategy describes how to get there. Advertising strategy consists of two substrategies: the creative strategy and the media strategy
positioning
The association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mid of the customer.
USP unique selling proposition
The distinctive benefits that make a product different than any other. the reason marketers believe consumers with buy a product even though it may seem no different from many others just like it.
industrial age
The historical period covering approximately the first 70 years of the 20th century. The period was marked by tremendous growth and maturation of the U.S industrial base. It saw the development of new, often inexpensive brands of the luxury and convenience goods we now classify as consumer package goods.
product
The particular good or service a company sells
WOM word of mouth
The passing of information, especially product recommendations, in an informal, unpaid, person-to-person manner, rather than by advertising or other forms of traditional marketing
industrializing age
The period of time from the mid-1700s through the end of World War I when manufacturers were principally concerned with production
marketing strategy
The statement of how the company is going to accomplish its marketing objectives. the strategy is the total directional thrust of the company, that is, the how-to of the marketing plan, and is determined by the particular blend of the marketing mix elements (the 4Ps) which the company can control.
advertising
The structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products by identified sponsors through various media
NLEA Nutritional Labeling and Education Act
a 1994 congressional law setting stringent legal definitions for terms such as fresh, light, low fat, and reduced calorie; setting standard serving sizes; and requiring labels to show food value for one serving alongside the total recommended daily value as established by the National Research Council.
services
a bunch of benefits that may or may not be physical, that are temporary in nature, and that come from the completion of a task
broadcast standards department
a department at a TV network that reviews all programs and commercials to be broadcast to see that they meet all applicable standards.
intensive distribution
a distribution strategy based on making the product available to consumers at every possible location so that the consumers can buy with a minimum effort.
consent decree
a document advertisers sign, without admitting any wrongdoing, in which they agree to stop objectionable advertising.
patent
a grant made by the government that confers upon the creator of an invention the sole right to make, use, and sell that invention for a set period of time.
retail cooperative
a group of independent retailers who establish a central buying organization (a wholesaler) to acquire discounts from manufacturers and gain economies from joint advertising and promotion efforts.
network marketing
a method of direct distribution in which individuals act as independent distributors for a manufacturer or private-label marketer.
geographic segmentation
a method of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within a region.
purchase occasion
a method of segmenting markets on the basis of when consumers buy and use a good or service.
utility
a product's ability to satisfy both functional needs and symbolic or psychological wants. A product's problem-solving potential may include form, task, possession, time, or place utility.
vertical marketing system (VMS)
a system in which the main members of a distribution channel-producer, wholesaler, and retailer-work together as a cooperative group to meet consumer needs.
resources
a term in the Values and Lifestyles (VALS) typology relating to the range of psychological, physical, demographic, and material capacities that consumers can draw upon. The resource axis includes education, income, self-confidence, health, eagerness to buy, and energy level.
franchising
a type of vertical marketing system in which dealers pay a fee to operate under the guidelines and direction of the parent company or manufacturer.
unfair advertising
according to the FTC, advertising that causes a consumer to be "unjustifiably injured" or that violates public policy.
deceptive advertising
according to the FTC, any ad in which there is a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment.
social responsibility
acting in accordance with what society views as best for the welfare of people in general or for a specific community of people.
subliminal advertising
advertisements with messages (often sexual) supposedly embedded in illustrations just below the threshold of perception.
affirmative disclosure
advertisers must make known their product's limitations or deficiencies
international agencies
advertising agencies that have offices or affiliates in major communication centers around the world and can help their clients market internationally or globally
national agencies
advertising agencies that produce and place the quality of advertising suitable for national campaigns
local agencies
advertising agencies that specialize in creating advertising for local businesses
local advertising
advertising by businesses within a specific area directed towards individuals within same specific area; types include dealers or local franchises, stores that sell variety of branded merchandise, specialty businesses and services and governmental and nonprofit organizations
comparative advertising
advertising that claims superiority to competitors in some aspect.
regional agencies
advertising that focuses on the production and placement of advertising suitable for regional campaigns
full-service advertising agency
agency equipped to serve its client in all areas of communication and promotion.
general consumer agency
agency that represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly by consumers
in-house agency
agency wholly owned by an advertiser and setup and staffed to do all the work of an independent full-service agency
art directors
along with graphic designers and production artists, individuals who determine how the ad's verbal and visual symbols will fit together
interactive agency
an advertising agency that specializes in the creation of ads for digital media
copyright
an exclusive right granted by the Copyright Act to authors and artists to protect their original work from being plagiarized, sold, or used by another without their express consent.
consumer advocate
an individual or group that actively works to protect consumer rights, often by investigating advertising complaints received from the public and those that grow out of their own research.
trademark
any word, name, symbol, device, or any combination thereof adopted and used by manufacturers or merchants to identify their goods and distinguish them from those manufactured or sold by others.
individual brand
assigning a unique name to each product a manufacturer produces.
institutional advertising
attempts to obtain favorable attention for the business as a whole; wants to create a long term attraction to the company
sale advertising
attempts to stimulate the movement of particular merchandise or increase store traffic by placing emphasis on specific reduced prices
demographic segmentation
based on a population's statistical characteristics such as gender, age, ethnicity, education, occupation, income, or other quantifiable factors.
licensed brands
brand names that other companies can buy the right to use.
reseller
businesses that buy products from manufacturers or wholesalers and then resell the merchandise to consumers or other buyers; also called middlemen. The most common examples of resellers are retail stores and catalog retailers.
printers
businesses that employ or contract with highly trained specialist who prepare artwork for reproduction, operate digital scanning machines to make color separations and plates, operate presses and collating machines and run binderies
geodemographic segmentation
combining demographics with geographic segmentation to select target markets in advertising.
media
communication vehicles paid by advertisers to present an advertisement to the target audience; ex: radio, TV, internet
national advertisers
companies that advertise in several geographic regions/throughout the country
research suppliers
companies that conduct and analyze marketing research
art studios
companies that design and produce artwork and illustrations for advertisements, brochures, and other communication devices
regional advertisers
companies that operate in one part of the country and market exclusively to that region
advertisers
companies that pay to advertise themselves and their products
production houses
companies that specialize in film or video production; utilized by advertisers and agencies
media commission
compensation paid by media to recognized ad agencies
primary demand
consumer demand for a whole product category
selective demand
consumer demand for the particular advantages of one brand over another
copy points
copywriting themes in a product's advertising
multinational corporations
corporations that operate and invest throughout many countries and make decisions based on availabilities worldwide
volume segmentation
defining consumers as light, medium, or heavy users of products.
traffic department
department in an ad agency that coordinates all phases of production and makes sure everything is complete before deadline
perceptible differences
differences between products that are visibly apparent to the consumer.
induced differences
distinguishing characteristics of products effected through unique branding, packaging, distribution, merchandising, and advertising.
ethical advertising
doing what the advertiser and the advertiser's peers believe is morally right in a given situation.
decentralized system
establishment of advertising departments by products or brands in various divisions, subsidiaries, countries, regions or other categories that suit the firm's needs; operate with a degree of independence
substantiation
evidence that backs up cited survey finding or scientific studies that the FTC may request from a suspected advertising violator.
puffery
exaggerated, subjective claims that can't be proven true or false such as "the best," "premier," or "the only way to fly."
incentive system
form of compensation in which the agency shares in client success when a campaign attains specific, agreed upon goals
products
goods, services, and ideas
creative director
head of a creative team of agency copywriters and artists who is assigned to client's business and who is ultimately responsible for creative product
place (distribution) element
how and where customers will buy a company's product; either direct or indirect distribution.
account planning
hybrid discipline bridges gap between research, account management and creative direction whereby agency people represent the view of the consumer in order to better define and plan the client's advertising program
hidden differences
imperceptible but existing differences that may affect the desirability of a product.
price element
in the marketing mix, the amount charged for the good or service-including deals, discounts, terms, warranties, and so on. the factors affecting price are market demand, cost of production and distribution, competition, and corporate objectives.
promotion (communication) element
includes all marked-related communications between the seller and the buyer.
brand managers
individual with the advertiser's company who is assigned the authority and responsibility of overseeing the company's marketing of a particular brand
management (account) supervisors
individuals who supervisor account executives and report to the agency's director of account services
product advertising
intended promotes a specific product or service and stimulates short-term action while building awareness of the business
account executives
liaison between the agency and client; they are responsible both 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
foreign media
local media of each country used by advertisers for campaigns targeted to consumers or businesses within a single country
push strategy
marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers, and salespeople.
pull strategy
marketing, advertising, and sales promotion activities aimed at inducing trial purchase and repurchase by consumers.
cease-and-desist order
may be issued by the FTC if an advertiser won't sign a consent decree; prohibits further use of an ad
corrective advertising
may be required by the FTC for a period of time to explain and correct offending ads.
international media
media serving several countries, without much change, available to international audience
psychographic segmentation
method of defining consumer markets based on psychological variables including values, attitudes, personality, and lifestyle.
straight-fee (retainer) method
method of obtaining compensation for ad agencies service; based on the estimated amount of time required by a client
benefit segmentation
method of segmenting consumers based on the benefits being sought
behavioristic segmentation
method of segmenting consumers based on the benefits being sought.
North American Industry Classification System (NAICS) codes
method used by the US Department of Commerce to classify all businesses. The NAICS codes are based on broad industry groups, subgroups, and detailed groups of firms in smaller lines of business.
global marketers
multinationals that use a standardized approach to marketing and advertising in all countries
stereotypes
negative or limiting preconceived beliefs about a type of person or a group of people that do not take into account individual differences.
privacy rights
of or pertaining to an individual's right to prohibit personal information from being divulged to the public.
media buying service
organization that specializes in purchasing and packaging media time
creative boutiques
organizations of creative specialist that work for advertisers and sometimes agencies to develop creative concepts, advertising messages and specialized art
business markets
organizations that buy natural resources, component products, and services that they resell, use to conduct their business, or use to manufacture another product.
production department
part of the ad agency that is responsible for managing the steps that transform creative concepts into finished ads and materials
suppliers
people and/or organizations that assist advertisers and agencies in preparation of advertising materials
copywriters
people who create the aforementioned copy
advertising manager
person who performs all the administrative, planning budgeting and coordinating functions of the ads
private labels
personalized brands applied by distributors or dealers to products supplied by manufacturers. Private brands are typically sold at lower prices in large retail chain stores.
fee-commission combination
pricing system in which an ad agency charges the client a basic monthly fee for its services and also retains any media commissions earned
IMC integrated marketing communications
process of building and reinforcing a mutually profitable relationship between business and customers, employees, other stakeholders and general publicity by developing a strategic communications program that enables them to make constructive contact with company through various media ex: Facebook, twitter, etc.
national brands
product brands that are marketed in several regions of the country.
product life cycle
progressive stages in the life of a product-including introduction, growth, maturity, and decline-that affect the way a product is marketed and advertised.
early adopters
prospects who are most willing to try new products and services
business-to-business B2B agency
represents clients that market products chiefly to other businesses
cooperative (co-op) advertising
sharing of advertising cost by manufacturer and distributor/retailer; can cause problems between the two entities because of lack of trust (one believes the other has too much control)
user status
six categories into which consumers can be placed, which reflect varying degrees of loyalty to certain brands and products. The categories are sole users, semi sole users, discount users, aware nontriers, trial/rejectors, and repertoire users.
cookies
small pieces of information that get stored on your computer when you download certain Web sites. These cookies can keep track of whether a certain user has ever before visited a specific site. This allows the Web site to identify returning users and to customize the information based on past browsing or purchase behavior.
consumerism
social action designed to dramatize the rights of the buying public
intellectual property
something produced by the mind, such as original works of authorship including literary, dramatic, musical, artistic, and certain other "intellectual" works, which may be legally protected by copyright, patent, or trademark.
markup
source of agency income gained by adding some amount to a supplier's bill
sales promotion department
staff in larger agencies to produce dealer ads, window posters, point-of-purchase displays and dealer sales material
centralized advertising department
staff of employees, usually at corporate headquarters, responsible for all the organizations advertising
abundance principle
states that an economy produces more goods and services than can be consumed. In such an economy, advertising serves two important purposes: it keeps consumers informed of their alternatives, and it allows companies to compete more effectively for consumer dollars.
media planning
strategic identification and selection of media vehicles for a client's advertising messages
selective distribution
strategy of limiting the distribution of a product to select outlets in order to reduce distribution and promotion costs.
brand
that combination of name, words, symbols, or design that identifies the product and its source and distinguishes it from competing products-the fundamental differentiating device for all products.
maturity stage
that point in the product life cycle when the market has become saturated with products, the number of new customers has dwindled, and competition is most intense.
product concept
the consumer's perception of a product as a "bundle" of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs.
usage rates
the extent to which consumers use a product: light, medium, or heavy.
group system
the further organization of people in ad agencies into smaller groups that have various people required to meet the needs of particular clients
psychographics
the grouping of consumers into market segments on the basis of psychological makeup-values, attitudes, personality, and lifestyle.
added value
the increase in worth of a product or service as a result of a particular activity. In the context of advertising, the added value is provided by the communication of benefits over and above those offered by the product itself.
introductory phase
the initial phase of the product life cycle (also called the pioneering phase) when a new product is introduced, costs are highest, and profits are lowest.
target market
the market segment or group within the market segment toward which all marketing activities will be directed
family brand
the marketing of various products under the same umbrella name.
direct distribution
the method of marketing in which the manufacturer sells directly to the customers without the use of retailers.
product element
the most important element of the marketing mix: the good or service being offered and the values associated with it-including the way the product is designed and classified, positioned, branded, and packaged.
distribution channel
the network of all the firms and individuals that take title, or assist in taking title, to the product as it moves from the producer to the consumer.
departmental system
the organization of an ad agency into departments based on functions
benefits
the particular product attributes offered to customers, such as high quality, low price, status, speed, sex appeal, good taste, and so on.
primary motivation
the pattern of attitudes and activities that help people reinforce, sustain, or modify their social and self-image. An understanding of the primary motivation of individuals helps advertisers promote and sell goods and services.
growth stage
the period in a product life cycle that is marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases.
target marketing
the process by which an advertiser focuses its marketing efforts on a target market.
primary demand trend
the projection of future consumer demand for a product category, based on past demand and other market influences.
target audience
the specific group of individuals to whom the advertising message is directed.
decline stage
the stage in the product life cycle when sales begin to decline due to obsolescence, new technology, or changing consumer tastes.
exclusive distribution
the strategy of limiting the number of wholesalers or retailers who can sell a product in order to gain a prestige image, maintain premium prices, or protect other dealers in a geographic region.
brand equity
the totality of what consumers, distributors, dealers, and competitors feel and think about a brand over an extended period of time; in short, it is the value of the brand's capital.
exchange
the trading of one thing of value for another thing of value.
endorsements
the use of satisfied customers and celebrities to endorse a product in advertising
testimonials
the use of satisfied customers and celebrities to endorse a product in advertising.
marketing communications
the various efforts and tools companies use to initiate and maintain communication with customers and prospects, including advertising, personal selling, sales promotion, direct marketing, public relations, and social media.
position
the way in which a product is ranked in the consumer's mind by the benefits it offers, by the way it is classified or differentiated from the competition, or by its relationship to certain target markets.
psychological pricing
using price as a means of influencing a consumer's behavior or perceptions; for example, using high prices to reinforce a quality image, or selling at $2.99 instead of $3.00 to make a product appear less expensive.
classified advertising
variety of purposes such as locate and recruit new employees, offer services or sell or lease new and used merchandise
copy
words that make up the headline and message of an advertisement
