Marketing Chapter 18

sampling

Offers potential customers the opportunity to try a product or service before they make a buying decision.

coupons

Provides a stated discount to consumers on the final selling price of a specific item; the retailer handles the discount.

federal trade commission (FTC)

Enforces truth in advertising laws; defines deceptive and unfair advertising practices.

information advertising

-Create and build brand awareness -Push the consumer through the buying cycle -Inform customers about upcoming sales events or arrival of new merchandise

steps in planning and executing an ad campaign

1.identify target audience 2.set advertising objectives 3.determine the advertising budget 4.convey the message 5.evaluate and select media 6.create advertisements 7.assess impact

emotional appeals

Aims to satisfy consumers' emotional desires rather than their utilitarian needs. most common types of emotional appeals: fear, safety, humor, happiness, love (or sex),comfort, and nostalgia

contest

A brand-sponsored competition that requires some form of skill or effort.

rebates

A consumer discount in which a portion of the purchase price is returned to the buyer in cash; the manufacturer, not the retailer, issues the refund.

sweepstakes

A form of sales promotion that offers prizes based on a chance drawing of entrants' names.

point of purchase display (POP)

A merchandise display located at the point of purchase, such as at the checkout counter in a grocery store.

advertising

A paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future.

unique selling proposition (USP) (value proposition)

A strategy of differentiating a product by communicating its unique attributes; often becomes the common theme or slogan in the entire advertising campaign. -red bull: gives you wings

institutional advertisements

A type of advertisement that informs, persuades, or reminds consumers about issues related to places, politics, or an industry (e.g. Got Milk? ads).

public service advertising (PSA)

Advertising that focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing

subhead

An additional smaller headline in an ad that provides a great deal of information through the use of short and simple words.

premium

An item offered for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing.

pretesting

Assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do.

niche media

Channels that are focused and generally used to reach narrow segments, often with unique demographic characteristics or interests. -HGTV

mass media

Channels that are ideal for reaching large numbers of anonymous audience members; include national newspapers, magazines, radio, and television.

reminder advertising

Communication used to remind or prompt repurchases Occurs after the products have gained market acceptance -in maturity stage

cross-promoting

Efforts of two or more firms joining together to reach a specific target market.

identify target audience

Firms conduct research to identify their target audience, then use the information they gain to set the tone for the advertising program and help them select the media they will use to deliver the message to that audience

persuasive advertising

Generally occurs in the growth and early maturity stages of the PLC when competition is most intense May be used to reposition an established brand in the later stage of the PLC

headline

In an advertisement, large type designed to draw attention.

tracking

Includes monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium.

product placement

Inclusion of a product in nontraditional situations, such as in a scene in a movie or television program.

federal communications commission

Regulates interstate and international communications by radio, television, wire, satellite, and cable.

advertising budget considerations

Role that advertising plays in their attempt to meet their overall promotional objectives Expenditures vary over the course of the Product Life Cycle Nature of the market and the product influence the size of the budget

sales promotion

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.

loyalty programs

Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.

posttesting

The evaluation of an IMC campaign's impact after it has been implemented.

puffery

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

public relations

The organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media.

media planning

The process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience.

advertising schedule

The specification of the timing and duration of advertising. -continuous, flighting, pulsing

informational appeals

Used in a promotion to help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage them to evaluate the brand favorably on the basis of the key benefits it provides.

product-focused advertisements

Used to inform, persuade, or remind consumers about a specific product or service.

pulsing schedule

combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods. For example, airlines, hotels, and car rental companies might continuously advertise to ensure brand awareness but might increase the advertising in spikes during certain low demand periods.

social marketing

defined as the application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment

deal

encourage trial and reduce consumer risk, although they may negatively affect perceptions of brand value

flighting schedule

refers to an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising. This pattern generally functions for products whose demand fluctuates, such as suntan lotion, -seasonal goods

continuous schedule

runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising

advertising plan

subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful

brand elements

that identify the sponsor of the ad, typically through a logo and a unique selling proposition

media buy

the actual purchase of airtime or print pages

media mix

the combination of the media used and the frequency of advertising in each medium—that will deliver a clear, consistent, compelling message to the intended audience