Advertising Exam 1

Public Service Announcements

An advertisement serving the public interest, often for non-profit organizations, carried out by the media at no charge

the 4 Ps

Product, price, placement, and promotion

Marketing Communications

The many efforts and tools that companies use to communicate with customers and prospects. This includes everything from ads to coupons to publicity

Advertising

The structured and composed non personal communication of information, usually paid for and usually persuasive in nature, about products by identified sponsors through various media

Nutritional labeling and education act

a 1994 congressional law setting stringent legal definitions for terms such as fresh light low fat and reduced calories; setting standard serving sizes and requiring labels to show food value for one serving alongside the total recommended daily value as established by the national research council

broadcast standards department

a department at a tv network that reviews all programs and commercials to be broadcast to see that they meet all applicable standards

Digital video recorders

a device such as TIVO that is similar to a VCR but records programs on a hard drive in digital format to provide high quality and ability to pause the tv

Sales promotion

a direct inducement offering extra incentives all along the marketing route - from manufacturers through distribution channels to customers - to accelerate the movement of products from the producer to the consumer

consent decree

a document advertisers sign without admitting any wrong doing in which they agree to stop objectionable advertising

incentive system

a form of compensation in which the agency shares in the clients success when a campaign attains specific agreed upon goals

patent

a grant made by the government that confers upon the creator of an invention the sole right to make, use, and sell that invention for a set period of time

account planning

a hybrid discipline that bridges the gap between traditional research, account management, and creative direction whereby agency people represent the view of the consumer in order to better define the plan the clients advertising program

branding

a marketing function that identifies products and their source and differentiates them from all other products

straight fee (retainer) method

a method of compensation for ad agency services in which a straight fee or Retainer is based on a cost-plus-fixed-fees formula. under this system the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiples by some factor

geographic segmentation

a method of segmenting markets by geographic regions based on the shared characteristics, needs or wants of people in that region

purchase occasion

a method of segmenting markets on the basis of when consumers buy and use a good or service

media

a plural form of medium, referring to communication vehicles paid to present an advertisement to their target audience. Most often used to refer to radio and television networks, stations that have new reporters, and publications that carry news and advertising

fee-commission combination

a pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned

utility

a products ability to satisfy both functional needs and symbolic needs or phycological wants. A products problem solving potential may include form, task, possession, time, or place utility

process

a sequence of actions or methods aimed at satisfying consumer needs profitability

markup

a source of agency income gained by adding some amount to a suppliers bill usually 17.65%

centralized advertising department

a staff of employees usually located at corporate headquarters, responsible for all of the organizations advertising. the department is often structured by product, advertising sub function, and user, media, or geography

market segmentation

a strategy where marketers searched for unique groups of people whose needs could be addressed through specialized products.

Resources

a term in the values and lifestyles (VALS) typography relating to the range of psychological physical demographic and material capacities that consumers can draw upon. the resource axis includes education, income, self confidence, health, eagerness to buy and energy level

institutional advertising

a type of advertising that attempts to obtain favorable attention for the business as a whole, not for a specific product or service the store or business sells. the effects of this are intended to be a long term rather than short term effect.

sale advertising

a type of retail advertising designed to stimulate the movement of particular merchandise or generally increase store traffic by placing the emphasis on special reduced prices

deceptive advertising

according to the FTC and ad in which there is a misrepresentation omission or other practice that can mislead a significant number of reasonable consumers to their detriment

unfair advertising

according to the ftc advertising that causes a consumer to be unjustifiably injured or that violates public policy

social responsibility

acting in accordance with what society views as best for the welfare of people in general or for a specific community of people

subliminal advertising

advertisements with messages (often sexual) supposedly embedded in illustrations just below the threshold of perception

affirmative disclosure

advertisers must make known their products limitations or deficiencies

product advertising

advertising intend to promote goods and services; also a functional classification of advertising

comparative advertising

advertising that claims superiority to competitors in some aspect

in-house agency

agency wholly owned by an advertiser and set up and staffed to do all of the work of an independent full service agency

art directors

along with graphic designers and production artists, individuals who determine how the ads verbal and visual symbols will fit together

interactive agency

an advertising agency that specializes in the creation of ads for a digital medium: exp agency.com and tribal ddb. they are experienced in designing web pages mobile apps and social media campaigns

full service advertising agency

an agency equipped to serve its clients in all areas of communication and promotion. its advertising services include planning creating and producing advertisements as well as performing research and media selection services. non advertising functions include producing sales promotion materials, publicity articles, annual reports, trade show exhibits and sales training materials.

general consumer agency

an agency that represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly by consumers

speculative presentation

an agencys presentation of the advertisement it proposes using in the event it is hired. It is usually made at the request of a prospective client and it is often not paid for by the client

copyright

an exclusive right granted by the copy right act to authors and artists to protect their original work from being plagiarized sold or used by another without their express consent

consumer advocate

an individual or group that actively works to protect consumer rights often by investigating advertising complaints received from the public and those that grow out of their own research

medium

an instrument or communications vehicle that carries or helps transfer a message from the sender to the receiver

media buying service

an organization that specializes in purchasing and packaging radio and television time

Marketing

an organizational function and a set of processes for creating communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

trademark

any word name symbol device or any combination thereof adopted and used by manufacturers or merchants to identify their goods and distinguish them from those manufactured or sold by others

web design houses

art/computer studios that employ specialists who understand the intricacies of HTML and java programming languages and can design ads and internet webpages that are both effective and cost efficient

individual brand

assigned a unique name to each product a manufactuer produces

demographic segmentation

based on a populations statistical characteristics such as gender age ethnicity education occupation income or other quantifiable factors

externalities

benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction and didn't pay for the product - think second hand smoke

licensed brands

brand names that other companies can buy the right to use

printers

businesses that employ or contract with highly trained specialists who prepare artwork for reproduction, operate digital scanning machines to make color separations and plates, operate presses and collating machines and run binderies

research suppliers

companies that conduct and analyze marketing research

art studios

companies that design and produce artwork and illustrations for advertisements, brochures, and other communication devices

production houses

companies that specialize in film or video production

advertisers

companies that sponsor advertising for themselves and their products

media commission

compensation paid by a medium to recognized advertising agencies, traditionally 15% for the advertising placed with it

selective demand

consumer demand for the particular advantages of one brand over another

primary demand

consumers demand for a whole product category

multicultural corporations

corporations operating and investing throughout many countries and making decisions based on availabilities world wide

volume segmentation

defining consumers as light medium or heavy users of products

narrowcasting

delivering programming to a specific group defined by demographics and/or program content rather than mass appeal. Opposite of broadcasting. Think political ads on news channels. kids toys on kids shows. cooking utensils on food network

perceptible differences

differences between products that are visibly apparent to the consumer

induced differences

distinguished characteristics of products effected through unique branding packaging distribution merchandising and advertising

ethical advertising

doing what the advertiser and the advertisers peers believe is the morally right thing to do in a given situation

ideas

economic political religious or social viewpoints that advertising may attempt to sell

consumer packaged goods

everyday use consumer products packaged by manufacturers and sold through retail outlets. Generally these are goods such as food and beverages, health and beauty care, cleaning etc.

substantiation

evidence that backs up cited survey finding or scientific studies that the FTC may request from a suspected advertising violator

puffery

exaggerated subjective claims that can't be proven true or false such as "the best" "premier" or "the only way to fly"

marketing mix

four elements called the 4 Ps (product price placement and promotion) that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy

industrial age

from about 1900 - 1970 tremendous growth and maturation of the US industrial base development of new often inexpensive brands of the luxury and convenience goods - now called packaged goods

creative director

head of a creative team of agency copy writers and artists who is assigned to a clients business and who is ultimately responsible for the creative product - the form the final ad takes

hidden differences

imperceptible but existing differences that may affect the desirability of a product

sales promotion department

in larger agencies, a staff to produce dealer ads, window posters, point-of-purchase displays, and dealer sales material

advertising agencies

independent organizations of creative people and business people that specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers. These agencies also arrange for or contract for purchases of space and time in various media

management account supervisor

managers who supervise account executives and who report to the agency's director for account services

product differentiation

manufacturers portraying their brands as different from and better than similar competitive products through advertising packaging or physical product differentiations

push strategy

marketing advertising and sales promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers retailers and salespeople

pull strategy

marketing advertising and sales promotion activities aimed at including trial purchase and repurchasing by consumers

cease and desist order

may be issued by the FTC if an advertiser won't sign a consent decree which prohibits further use of ad

corrective advertising

may be required by the FTC for a period of time to explain and correct offending ads

international media

media serving several countries usually without change, it is available to an international audience

psychographic segmentation

method of defining consumer markets based on psychological variables including values attitudes personality and lifestyle

benefit segmentation

method of segmentation depending on the benefits that consumers look for

behavioral segmentation

method of segmenting consumers based on the benefits they seek

industrializing age

mid 1700s through the end of World War 1 manufacturers were principally concerned with production

global marketers

multinationals that use a standardized approach to marketing and advertising in all countries

stereotypes

negative or limiting preconceived beliefs about a type of person or a group of people that do not take into account individual differences

privacy rights

of or pertaining to an individuals right to prohibit personal information from being divulged to the public

creative boutiques

organizations of creative specialists (such as art directors, designers, and copywriters) that work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages and specialized art. A boutique only provides that creative work.

business markets

organizations that buy natural resources, component products, and services that they can resell use this to conduct their business or to manufacture another product

suppliers

people and organizations that assist both advertisers and agencies in the preparation of advertising materials such as photography, illustration, printing, and production

copywriters

people who create the words and concepts for ads and commercials

postindustrial age

period of cataclysmic change starting in about 1980 when people first became truly aware of the sensitivity of the environment in which we live

preindustrial age

period of time between the beginning of written history and roughly the start of the nineteenth century. Characteristics: invention of paper and the printing press. increased literacy gave rise to the first forms of written advertising

private labels

personalized brands applied by distributers or dealers to products supplied by manufactures. private brands are typically sold at lower prices in large retail chain stores

mass media

print or broadcast media that reach very large audiences. mass media include radio, television, newspapers, magazines, and billboards

national brands

products brands that are marketed in several regions of the country

early adopters

prospects who are most willing to try new products and services

business-to-business (B2B) agency

represents clients that market products to other businesses

cookies

small pieces of information that get stored on your computer when you download certain websites. these cookies can keep track of whether a certain user has ever before visited a specific site. this allows the website to identify returning users and to customize the information based on past browsing or purchase behavior

consumerism

social action designed to dramatize the rights of the buying public

intellectual property

something produced by the mind such as original works of authorship including literary dramatic musical artistic and certain other intellectual works which may be legally protected by copyright patent or trademark

demarketing

term coined during the energy shortage of the 1970s and 1980s when advertising was used to slow the demand for products

maturity stage

that point in the product life cycle when the market has become saturated with products, the number of new customers has diminished and competition is more intense

advertising strategy

the advertising objective declares what the advertiser wants to achieve with respect to consumer awareness, attitude, and preference; the advertising strategy describes how to get there. Advertising strategy consists of two sub strategies : the creative strategy and the media strategy

positioning

the association of a brands features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer

product concept

the consumers perception of a product as a bundle of utilitarian and symbolic values that satisfy functional social and psychological and other wants and needs

traffic department

the department in an advertising agency that coordinates all phases of production and makes sure everything is completed before the deadline

productive department

the department in an advertising agency that is responsible for managing the steps that transform creative concepts into finished advertisements and collateral materials

unique selling proposition (USP)

the distinctive benefits that make a product different than any other. the reason marketers believe consumers will buy a product even though it may seem no different from many others just like it

decentralized system

the establishment of advertising departments by products or brands or in various divisions, subsidiaries, countries, regions, or other categories that suit the firms needs, which operate with a major degree of independence

usage rates

the extent to which consumers use a product : light medium or heavy

psychographics

the grouping of consumers into market segments on the basis of psychological makeup- values, attitudes, personality, and lifestyle

Added value

the increase in worth of a product or service as a result of a particular activity. in the context of advertising, the added value is provided by the communication of benefits over and above these offered by the product itself

Brand managers

the individual within the advertisers company who is assigned the authority and responsibility for the successful marketing of a particular brand

introductory phase

the initial phase of the product life cycle. also called the pioneering phase. here the costs are usually the highest and profits are the lowest

account executives

the liaison between the agency and the client. the account executive is responsible both for managing all of the agencies services for the benefit of the client and for representing the agencies point of view to the client

foreign media

the local media of each country used by advertisers for campaigns targeted to consumers or businesses within a single country

target market

the market segment or group within the market segment toward which all marketing activities will be directed

family brand

the marketing of various products under the same umbrella name

product element

the most important element of the marketing mix: the good or service being offered and the values associated with it. This includes the way the product is designed,classified, positioned, branded and packaged

group system

the organization of an ad agency into a number of little agencies or groups, each with the various people required to meet the needs of the particular clients being served by the group

departmental system

the organization of an ad agency into departments based on function: account services, creative services, marketing services, and administration

benefits

the particular product attributes offered to consumers such as high quality low price status, speed, sex appeal, good taste and so on

Word of mouth advertising

the passing of information, especially product recommendations

primary motivation

the pattern of attitudes and activities that help people reinforce sustain or modify their social and self image. an understanding of the primary motivation of individuals helps advertisers promote and sell goods and services based on that

growth stage

the period in a product life cycle that is marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases

advertising manager

the person who performs all the administrative planning budgeting and coordinating functions. he or she may lay out ads, write ad copy, and select the media

target marketing

the process by which an advertiser focuses its marketing efforts on a target market

integrated marketing communications (imc)

the process of building and reinforcing mutually profitable relationships with employees customers stakeholders and the general public by developing and coordinating a strategic communication program that enables them to make constructive contact with the company/ brand through various materials

product life cycle

the progressive stages in the life of a product that affect the way a product is marketed and advertised. the stages are: introduction, growth, maturity and decline

primary demand trend

the projection of future consumer demand for a product category, based on past demand and other market influences

cooperative advertising (co-op)

the sharing of advertising costs by the manufacturer and the distributor or retailer. the manufacturer may repay 50 or 100 percent of the dealers advertising costs or some other amount depending on the sales that come with it

target audience

the specific group of individuals to whom the advertising message is directed

decline stage

the stage in the product life cycle when sales begin to decline due to obsolescence, new technology, or changing consumer tastes

marketing strategy

the statement of how the company is going to accomplish its marketing objectives. The strategy is the total directional thrust of the company, or the how-to of the marketing plan. It is determined by the particular blend of the marketing mix elements which the company can control

media planning

the strategic identification and selection of media vehicles for a clients advertising messages

brand equity

the totality of what consumers distributors dealers and competitors feel and think about a brand over an extended period of time in short it is the value of the brands capital

exchange

the trading of one thing of value for another thing of value

endorsements

the use of satisfied customers and celebrities to endorse a product in advertising

testimonials

the use of satisfied customers and celebrities to endorse a product in advertising

position

the way in which a product is ranked in the consumers mind by the benefits it offers, by the way it is classified or differentiated from the competition, or by its relationship to certain target markets

copy

the words that make up the headline and message of an advertisement or commercial

geodemographic segmentation

this combines demographics and geographic segmentation to select target markets in advertising

user status

this divides consumers into six categories that reflect varying degrees of loyalty to certain brands or products: sole users, semi sole users, discount users, aware nontriers, trial/rejectors and repertoire users

North American Industry Classification System (NAICS) codes

this method is used by the US department of commerce to classify all businesses. the NAICS codes are based on broad industry groups subgroups and detailed groups of firms in similar lines of business

abundance principle

this states that an economy produces more goods and services than can be consumed. In such an economy, advertising serves two important purposes: it keeps consumers informed of their alternatives and it allows companies to compete more effectively for consumer dollars

classified advertising

used to locate and recruit new employees offer services, or sell or lease new and used merchandise