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