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