advertising notes

Puffery

the legal exaggeration of praise, stopping just short of deception, lavished on a product

household consumers

the most conspicuous audience in that most mass media advertising is directed at them

ethics

the principles of right and wrong that guide an individual in making decisions

integrated brand promotion

the process of using a wide range of promotional tools working together to create widespread brand exposure

economies of scale

the property whereby long-run average total cost falls as the quantity of output increases

Consumerism

the protection or promotion of the interests of consumers.

inconsistency in voice

the way you engage with customers should be consistent

spam

unsolicited email

primary demand stimulation

using advertising to create demand for a product category in general

selective demand stimulation

using advertising to stimulate demand for a specific brand within a product category

behavioral targeting

using online consumer tracking data to target advertisements and marketing offers to specific consumers

message synergy

when all various messages work together to create cohesive brand perception

what are some examples of integrated brand promotion

• Advertising in mass media. • Sales promotions. • Point-of-purchase materials. • Direct marketing. • Personal selling. • Internet advertising. • Event sponsorship/experiential marketing. •Social networks/social media. •Blogs. •Podcasting/smartphone messaging. •Branded entertainment. •Outdoor signage. •Billboards, transit, and aerial advertising. •Public relations. •Influencer marketing. •Corporate advertising.

word of mouth

the influencing of people during conversations

comparison advertisements

Advertisements in which an advertiser makes a comparison between the firm's brand and competitors' brands. Illegal in some countries.

markup charges

-form of agency compensation -AKA cost-plus -added cost to the agency's services -a way to receive payment for work on traditional media -typical is 17.65-20%

National Advertising Review Board (NARB)

A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement

Industrial Revolution

A series of improvements in industrial technology that transformed the process of manufacturing goods.

consent order

A voluntary, court-enforceable agreement to stop an illegal or questionable practice.

Consumer Decision-Making Process

1. need recognition 2. information search 3. evaluation of alternatives 4. purchase 5. post purchase behavior

libel

A written defamation of a person's character, reputation, business, or property rights.

unfair advertising

According to the FTC, advertising that causes a consumer to be "unjustifiably injured" or that violates public policy.

Communication

A process through which you send messages to and receive messages from others.

amplified word of mouth

Amplified WOM occurs when marketers launch campaigns designed to encourage or accelerate WOM in existing or new communities.

phishing

An attack that sends an email or displays a Web announcement that falsely claims to be from a legitimate enterprise in an attempt to trick the user into surrendering private information

internal search

An information search in which buyers search their memories for information about products that might solve their problem

advertisers

Companies that sponsor advertising for themselves and their products

consumer-generated content

Consumers submit ad message ideas, videos, and other brand content. Incorporates the voice of the customer into brand messages Generates greater customer engagement

geofencing

Offering localized promotions for retailers in close proximity to the customer, as determined by phone location technology.

brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing

Advertising agencies

Develop and prepare advertising plans, advertisements, and other promotional tools for advertisers

audience

Group of individuals who receive and interpret messages sent from companies or organizations.

Pure Food and Drug Act

Halted the sale of contaminated foods and medicines and called for truth in labeling

institutional advertising

Institutional advertising can be described as promotional activities that are used to improve a brand's reputation, build a positive image of a brand, or encourage the support of a specific brand or organization

premiums

Items offered free or at a minimal cost as a bonus for purchasing a product

customer costs

Managers lose sight of customers and what the firm is doing in the marketplace. They spend a lot of time on inventory, balance sheets, analyst conference calls, or building plants. This turning inward can be tragic in some cases

professionals

One of the five types of audiences for advertising, defined as doctors, lawyers, accountants, teachers, or any other professionals who require special training or certification.

government officials and employees

One of the five types of audiences for advertising; includes employees of government organizations, such as schools and road maintenance operations, at the federal, state, and local levels.

members of business organizations

One of the five types of audiences for advertising; the focus of advertising for firms that produce business and industrial goods and services.

members of a trade channel

One of the five types of audiences for advertising; the retailers, wholesalers, and distributors targeted by producers of both household and business goods and services.

organic word of mouth

Organic WOM occurs naturally when people become advocates because they are happy with a product and have a natural desire to share their support and enthusiasm.

integration costs

Outsourced marketing doesn't fit well with marketing the company produces or with other strategies it is pursuing

target audience

Particular group of consumers singled out by an organization for an advertising or IBP campaign.

risk costs

Partners may take more or less risk than a firm would take given they are not responsible to shareholders, employees, and customers in the same way managers are.

what are the five Ps of marketing

Product Price Promotion Place People

great depression

the economic crisis beginning with the stock market crash in 1929 and continuing through the 1930s

evoked set

Set of brands that come to mind when a category is mentioned.

monopoly power

The ability of a monopoly to dictate what takes place in a given market.

path dependence losses

The down side to path dependencies from marketing experience is that firms get locked into their own habits and routines.

branding

The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness)

chain of needs

customer needs lead to products; new needs are created by the unintended side effects of modern times and new products; even newer products solve additional and even newer needs

primary demand

demand for a product category rather than for a specific brand

international advertising

firms prepare and place different advertising in different national markets for the same brand outside their home market

self-regulation

the exercise of voluntary control over the self to bring the self into line with preferred standards

consumer culture

a culture in which personal worth and identity reside not in the people themselves but in the products with which they surround themselves

Federal Trade Commission

a federal agency established in 1914 to investigate and stop unfair business practices

branded entertainment

a form of advertising in which marketers integrate products into entertainment venues

account planner

a member of the account management department who combines research and account strategy to act as the voice of the consumer in creating effective advertising

fee system

a method of agency compensation whereby the advertiser and the agency agree on an hourly rate for different services provided

advertising

a paid mediated form of communication form an identifiable source, designed to persuade the receiver to take some action, now or in the future

product placement

a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events

inconsistency in brand values

actions of the company must be consistent to their values

corrective advertising

ads to correct deceptive advertising

affirmative disclosure

advertisers must make known their product's limitations or deficiencies

direct response advertising

advertising that asks the receiver of the message to act immediately

brand advertising

advertising that communicates the specific features, values, and benefits of a particular brand offered for sale by a particular organization

global advertising

advertising that is used worldwide with only minor changes in the visual and message content

corporate advertising

advertising that promotes the company as a whole instead of a firm's individual products

delayed response advertising

advertising that relies on imagery and message themes to emphasize the benefits and satisfying characteristics of a brand

advertising substantiation program

an FTC program initiated in 1971 to ensure that advertisers make available to consumers supporting evidence for claims made in ads

creative boutique

an advertising agency that emphasizes copywriting and artistic services to its clients

vertical cooperative advertising

an advertising technique whereby a manufacturer and dealer (either a wholesaler or retailer) share the expense of advertising

cooperative advertising

an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand

principle of limited liability

an economic principle that allows an investor to risk only his or her shares of a corporation, rather than personal wealth, in business ventures

commission system

an elected commission that serves as the governing body within a given county

need state

arises when one's desired state of affairs differs from one's actual state of affairs

e-business

carrying out the goals of business through utilization of the internet

fulfillment center

centers that ensure customers receive the product ordered through direct mail

market segmenting

identifying groups of consumers based on a common need

pay-for-results

incentive-based compensation that base the agency's fee on the achievement of agreed-on results

production services

include producers who take creative ideas and turn them into advertisements, direct mail pieces, and other IBP materials

what are the cons of outsourcing

integration costs, customer costs, control costs, risk costs, path dependence losses

crowdsourcing

inviting broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the new product innovation process

control costs

keeping the relationship positive, hard to control what is happening externally

Action for Children's Television

lobbied the government to limit the amount and content of advertising directed at children

interactive media

media such as the internet and interactive television that permit consumers to give instantaneous, real-time feedback on the same channel used by the original message sender

deception

misleading participants about the true purpose of a study or the events that will actually transpire

Appropriation

money that Congress has allocated to be spent

dailies

newspapers that are published on newsprint every day, sometimes with the exception of Sunday

inconsistency in visual communication

non consistent logos, images, and color schemes that prevent instant recognition

production facilitators

offer essential services both during and after the production process

trade reseller

organizations in the marketing channel of distribution that buy products to resell to customers

national advertising

reaches all geographic areas of a single nation

cease and desist order

ruling requiring a company to stop an unfair business practice that reduces or limits competition

ad blocker

software that consumers install to prevent advertising messages from being visible

slander

spoken defamation

subliminal advertising

supposedly hidden messages in marketers' communications

click fraud

the abuse of pay-per-click, pay-per-call, and pay-per-conversion revenue models by repeatedly clicking a link to increase charges or costs for the advertiser

Defamation

the action of damaging the good reputation of someone; slander or libel.

medium

the channel which advertising reaches consumers through