Advertising Quiz 1 (Chapters 1-3)
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 bundle 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
digital video recorder
a device 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
consent decree
a document advertisers sign, without admitting any wrongdoing, in which they agree to stop objectionable advertising
incentive system
a form of compensation in which the agency shares in the client's success when a campaign attains specific, agreed-upon goals
patents
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
industrial age
a historical period covering approximately the first 70 years of the twentieth century. this 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 packaged goods
branding
a marketing function that identifies products and their source and differentiates them from all other products
straight-fee
a method of compensation for ad agency services in which it, 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 multiplies by some factor
media
a plural form of medium, referring to communications 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-comission combination
a pricing system in which an ad agency charges the client a basic monthly fee for its services and also retains any media commissions earned
markup
a source of agency income gained by adding some amount to a supplier's bill, usually 17.65 percent
centralized advertising department
a staff of employees, usually located at corporate headquarters, responsible for all the organization's advertising; it is often structured by product, advertising sub function, end user, media, or geography
institutional advertising
a type of advertising that attempts to obtain favorable attention for the business as a whole, nor for a specific product or service the store or business sells; the effects of it are intended to be long term rather than short range
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
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 to 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 business within a city or county directed toward customers within the same geographical area
product advertising
advertising intended to promote goods and services; also a functional classification of advertising
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
in-house agency
agency wholly owned by an advertiser and set up 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
public service announcement
an advertisement serving the public interest, often for a nonprofit organization, carried by the media at no charge
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; nonadvertising 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 agency's 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 is often not paid for by the client
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 with their express consent
consumer advocate
an individual or group that actively works to protect costumer rights, often by investigating advertising complaints received from the public and those that grow our of their own research
medium
an instrument or communications vehicle that carries or helps transfer a message from the sender to the receiver
marketing
an organizational function and a set of process 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 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 Web pages that are both effective and 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
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 collaging machines, and run binderies
national advertisers
companies that advertise in several geographic regions or throughout the country
research suppliers
companies that conduct and analyze marketing resesarch
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
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 percent (16 2/3 percent for outdoor) for advertising placed with it
primary demand
consumer demand for a whole product category
selective demand
consumer demand for the particular advantages of one brand over another
multinational corporations
corporations operating and investing throughout many countries and making decisions based on availabilities worldwide
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
ethical advertising
doing what the advertiser and the advertiser's peers believe is morally right 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 products, and detergents that get used up and have to be replaced frequently
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 4Ps (product, price, place and promotion), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy
creative director
head of a creative team of agency copywriters and artists who is assigned to a client's business and who is ultimately responsible for the creative product- the form the final ad takes
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 businesspeople that specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers; they also arrange for or contract for purchases of space and time in various media
product differentiation
manufacturers portraying their brands as different from and better than similar competitive products through advertising, packaging, or physical product differences
cease-and-decist 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, usually without change, that is available to an international audience
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 information from being divulged to the public
suppliers
people and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production
consumers
people who buy products and services for their own, or someone else's, personal use
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, 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; includes radio, television, newspapers, magazines, and billboards
retainer method
same as a straight-fee
cookies
small pieces of information that get stored on your computer when you download certain web sites. they can keep track of whether a certain user has ever 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
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
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 aggregating these groups into larger market segments according to their mutual interest in the product's utility
group system
system in which an ad agency is divided into a number of little agencies or groups, each composed of an account supervisor, account executives, copywriters, art directors, a media director, and any other specialists required to meet the needs of the particular clients being served by the group
goods
tangible products such as suits, soap, and soft drinks
demarketing
term coined during the energy shortage of the 1970s and 80s 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; it describes how to get there; it consists of two strategies: 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 mind of the customer
traffic department
the department in an ad agency that coordinates all phases of production and makes sure everything is completed before the deadline
production department
the department in an ad agency that is responsible for managing the steps that transform creative concepts into finished ads and collateral materials
unique selling proposition
the distinctive benefit 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 firm's needs, which operate with a major degree of independence
added value
the increase in worth of a product or service as a result of a particular activity. in the context of advertising, it is provided by the communication of benefits over and above those offered by the product itself
brand managers
the individual within the advertiser's company who is assigned the authority and responsibility for the successful marketing of a particular brand
foreign media
the local media of each country used by advertisers for campaigns targeted to consumers or businesses within a single country
departmental system
the organization of an ad agency into departments based on function: account services, creative services, marketing services, and administration
product
the particular good or service a company sells
word of mouth advertising
the passing of information, especially product recommendations, by verbal communication, 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
advertising manager
the person that performs all the administrative, planning, budgeting, and coordinating functions; they may lay out ads, write ad copy, and select the media
integrated marketing communications
the process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to make constructive contact with the company/brand through a variety of media
media planning
the process that directs advertising messages to the right people in the right place and the right time
cooperative advertising
the sharing of advertising costs by the manufacturer and the distributor; the manufacturer may repay 50 or 100 percent of the dealer's advertising costs or some other amount based on sales
marketing strategy
the statement of how the company is going to accomplish its marketing objectives; it 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 (goods, services, and ideas) by identified sponsors through various media
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 solicitation, publicity, telemarketing, statement stuffers, and coupons, to mention just a few
copy
the words that make up the headline and message of an ad or commercial
classified advertising
used to locate and recruit new employees, offer services, or sell or lease new and used merchandise