ADV3008 Exam 1 practice – Flashcards

Integrating marketing communications, a company will use this to deliberately coordinate and integrate messages from a variety of sources about its products or brands

IMC helps companies adopt a consumer-centric, rather than marketer-centric, perspective in creating brand messages

relationship marketing

creating, maintaining, and enhancing long-term relationships with customers and other stakeholders that result in exchanges of information and other things of mutual value

employees, centers of influence, stockholders, the financial community, and the press

acquire a new one

Lester Wunderman, the founder of Wunderman Worldwide

Kotler and Armstrong

The company sells the product but does not follow up in any way

The company (or salesperson) sells the product and encourages customers to call if they encounter any problems

The salesperson phones customers shortly after the sale to check whether the product meets expectations and asks for product improvement suggestions and any specific disappointments. This information helps the company continuously improve its offering

The salesperson or company contacts customers from time to time with suggestions about improved product use or helpful new products

The company works continuously with customers (and other stakeholders) to discover ways to deliver better value

Tom Duncan

These are the traditional promotional messages—advertising, sales promotion, personal selling, merchandising materials, publicity releases, event sponsorships. These often have the least impact because they are seen as self-serving.

In IMC theory, every element of the marketing mix sends a message. Messages from the product, price, or distribution elements are typically referred to as product (or inferred) messages. For example, customers and other stakeholders receive one product message from a $2,500 Rolex watch and a different one from a $30 Timex. Product messages also include packaging, which communicates about the product through the use of color, type, imagery, design, layout, and materials.

Employee interactions also send messages to customers. In many organizations, customer service people are supervised by operations, not marketing. Yet the service messages they send have greater marketing impact than the planned messages. With IMC, marketing people work with operations to minimize negative messages and maximize positive ones

Companies have little control over the unplanned messages that emanate from employee gossip, unsought news stories, comments by the trade or competitors, word-of-mouth rumors, or major disasters. Unplanned messages may affect customers' attitudes dramatically, but they can sometimes be anticipated and influenced, especially by managers experienced in public relations.25

Duncan and Moriarty

-Planned messages are say messages-what companies say about themselves -Product and service messages are do messages because they represent what a company does. -Unplanned messages are confirm messages because that's what others say and confirm (or not) about what the company says and does.

It should first ensure consistent positioning, then facilitate purposeful interactivity between the company and its customers or other stakeholders, and finally actively incorporate a socially responsible mission in its relationships with its stakeholders.

Albert Lasker

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.

"I" tell a story about myself to "you," the audience eavesdropping on my personal experience.

in which a third-person persona tells a story about others to an imagined audience

the characters act out events as though in a play. The audience is an invisible observer of the actions in the ad.

The consumers who are addressed by the ad's persona. They are not real, but rather imagined by the ad's creators to be ideal consumers—acquiescing in whatever beliefs the text requires. They are, in effect, part of the drama of the ad.

are the gatekeepers who decide if the ad will run or not

equivalent to the receiver in oral communications—are people in the real world who make up the ad's target audience. They are the people to whom the sponsor's message is ultimately directed. But they will get to see, hear, or read it only with the sponsor's approval

the sponsor's messages must vie with hundreds of competing commercial and noncommercial messages every day

Advertising directed at the ultimate consumer of the product, or at the person who will buy the product for someone else's personal use.

Companies that market in several regions of the United States and use the major mass media are called national advertisers, and their promotion is called

placing their ads in local media or regional editions of national media

placed in local media or direct mail.

in which messages are consistent in ads placed around the world.

Other firms may promote their products in foreign markets

The various efforts and tools companies use to initiate and maintain communication with customers and prospects, including solicitation letters, newspaper ads, event sponsorships, publicity, telemarketing, statement stuffers, and coupons, to mention just a few.

salespeople deal directly with customers either face-to-face or via telemarketing, offers the flexibility possible only through human interaction. Personal selling is ideal for conveying information, giving demonstrations, and consummating the sale (or exchange), especially on high-ticket items such as cars, real estate, and furniture as well as most business-to-business products. The drawback to personal selling is its high cost, so companies that emphasize personal selling in their marketing mix often spend a lower percentage of sales on advertising than other firms

value

product advertising

nonproduct advertising

noncommercial advertising

awareness advertising

action(or direct-response) advertising

is a communication tool that offers special incentives to motivate people to act right away. The incentives may be coupons, free samples, contests, or rebates on the purchase price. By offering added value, sales promotion accelerates sales. Very expensive

The strategic management of the relationships and communications that individuals and organizations have with other groups (called publics) for the purpose of creating mutual goodwill. The primary role of public relations is to manage a company's reputation and help build public consent for its enterprises.

Until the advent of public schooling, most people couldn't read—so signs featured symbols of the goods or services for sale

Period of time between the beginning of written history and roughly the start of the 19th century, during which the invention of paper and the printing press and increased literacy gave rise to the first forms of written advertising. The Chinese invented paper and Europe had its first paper mill by 1275

Johannes Gutenberg

the newspaper

a handbill tacked on church doors in London announcing a prayer book for sale.

Samuel Johnson

A historical period covering approximately the first 70 years of the 20th 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.

A product consumed daily by the average person. Consumers must continuously replace CPGs (such as soft drinks or paper towels), in contrast to durable goods, which can be used for long periods of time (such as dishwashers). CPG brands often advertise heavily to ensure brand loyalty.

the stock market crashed, the Great Depression began, and advertising expenditures plummeted

"Golden Age"

a process by which marketers searched for unique groups of people whose needs could be addressed through more specialized products.

proved to be an effective way to separate a particular brand from its competitors by associating that brand with a particular set of customer needs that ranked high on the consumer's priority list.

Period of cataclysmic change, starting in about 1980, when people first became truly aware of the sensitivity of the environment in which we live.

Producers of energy and energy-consuming goods used advertising to slow the demand for their products.

megamerger

1) the aging of traditional products, with a corresponding growth in competition, and (2) the growing affluence and sophistication of the consuming public, led by the huge baby boomer generation

intensified by lower trade barriers and growing international trade. As high profits lured imitators into the marketplace, each offering the most attractive product features at lower cost, consumers benefited from more choices, higher quality, and lower prices.

"Scientific Advertising"

o considered to lead creative revolution of 1960s Bernbach(industry giant) most known for Volkswagen o "find the simple story, present it in an intelligent way"

(most famous name is advertising) "Man in the half way shirt" made his company #1

known for his "unique selling position UPS" o More interest in brands explaining why people should buy a certain brand or product o Used slogans

the combination of a mild recession, a stock market decline, and the bust of the dot-coms contributed to a record decline in advertising activity

increased retention and optimized lifetime customer value.

Public relations advertising

action advertising

personal selling

noise

public relations

derived from the idea that society should promote behaviors that foster the greatest good for the most people, offers a system of economic activity—free enterprise—that has raised living standards better than any other economic system in history. This is why societies around the world are increasingly adopting free-enterprise economics.

advertising has the effect of keeping prices down. That again serves the consumer's self-interest.

by the consumer

demand for the entire product class.

demand for a particular brand

refers to exaggerated, subjective claims that can't be proven true or false, such as "the best," "premier," or "the only way to fly."

Of or pertaining to an individual's right to prohibit personal information from being divulged to the public.

is the major regulator of advertising for products sold in interstate commerce. Established by an act of Congress, the FTC has a mission of ensuring "that the nation's markets function competitively, and are vigorous, efficient, and free of undue restrictions."

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.

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

Advertising that claims superiority to competitors in one or more aspects.

Evidence that backs up cited survey findings or scientific studies that the FTC may request from a suspected advertising violator.

The use of satisfied customers and celebrities to endorse a product in advertising.

Advertisers must make known their product's limitations or deficiencies.

consent decree

cease-and-desist order

May be required by the FTC for a period of time to explain and correct offending ads.

Federal regulatory body with jurisdiction over radio, television, telephone, and telegraph industries. Through its licensing authority, the FCC has indirect control over broadcast advertising.

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.

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.

"any word, name, symbol, or device or any combination thereof adopted and used by a manufacturer or merchant to identify his goods and distinguish them from those manufactured or sold by others."

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 without their express consent.

• Chrestensen owned an exhibit that was welcome to the public to view the submarine and invited people to visit if they were willing to pay the price on the handbill • NY police commissioner said that he was violating the NYC ordinance of littering • Chrestensen sued the commissioner Valentine • The court decided that "purely commercial" advertising is not protected • Advertising is not as important as political speech and would not be awarded the same rights as political speech

• In 1960 the NY times placed an ad soliciting funds to MLK • Sullivan a Montgomery commissioner sued NY times and the civil rights group for libel • Courts challenge: was the ad protected speech? • Issue: Are noncommercial ads protected by the first amendment? • Defamation requires proving a statement is a)negative and B)false • But when speech is protected, defamation carries an additional standard: "malice" • Malice: writer knew the facts were false or showed a reckless regard of the truth • Supreme Court ruled that the ad was protected speech, on basis that the ad was based on ideas, not products, the protection did not extend purely "commercial" advertising

• The issue: is any commercial speech protected by the 1st amendment? • Virginia paper publishes an ad for a NY abortion clinic • State statute makes it illegal to advertise • Editor Bigelow fined $150 refuses to pay • US Supreme court reverses Bigelow conviction • Justice Blackmun: "The ad conveyed info of potential interest to a diverse audience" • Commercial speech is protected if it deals with info of interest and value

• The facts: in 1950s much evidence appears liking smoking to lung cancer • Readers digest publishes "Cancer by Cartoons" • Late 1950s FTC prohibits companies from making health claims • Gov't responds in 1960s • 1964: Surgeon General committee links smoking to cancer • 1965: Congress requires warning labels on packages • 1967: FCC "Fairness Doctrine" requires stations carry "anti-tobacco" PSAs • 1971: Congress bans broadcast ads, tobacco companies go to court • Supreme Court ruled ban was constitutional • Even protected can be censored when a product constitutes a "public health threat"

• 1976 • Virginia statute forbids prescription drug ads • Consumer group claimed entitlement to info about prices • Court noted that those most affected by lack of info: sick, elderly • Court suggested "people might have a greater interest in the free flow of commercial info than in the flow of political info" • But protection did not extend to false or misleading ads

ads placed by local businesses in a particular city or county targeting customers in their geographic area.

performs the administrative, planning, budgeting, and coordinating functions. He or she may lay out ads, write copy, and select the media.

promotes a specific product or service and stimulates short-term action while building awareness of the business

informs consumers about services or merchandise offered at regular prices.

placing items on sale and offering two-for-one specials or other deals.

to make room for new product lines or new models and to get rid of slow-moving lines, floor samples, broken or distressed merchandise, or out-of-season items.

attempts to create a favorable long-term perception of the business as a whole, not just of a particular product or service.

in the newspaper for many reasons: to locate and recruit new employees, offer services (such as those of an employment agency or business opportunity broker), or sell or lease merchandise

to build the manufacturer's brand image and to help its distributors, dealers, or retailers make more sales

the manufacturer provides the complete ad and shares the cost of the advertising time or space.

firms in the same business (real estate agents, insurance agents, pharmacies, car dealers, or travel agents) or in the same part of town advertise jointly.

operate in one part of the country—in one or several states—and market exclusively within that region.

The individual within the advertiser's company who is assigned the authority and responsibility for the successful marketing of a particular brand.

as an independent organization of creative people and businesspeople who specialize in developing and preparing marketing and advertising plans, advertisements, and other promotional tools

The liaison between the agency and the client. The account executive is responsible for both managing all the agency's services for the benefit of the client and representing the agency's point of view to the client.

Managers who supervise account executives and who report to the agency's director of account services.

A hybrid discipline that bridges the gap between traditional research, account management, and creative direction. Planners represent the view of the consumer in order to better define and plan the client's advertising program.

People who create the words and concepts for ads and commercials.

Along with graphic designers and production artists, determines how the ad's verbal and visual symbols will fit together.

Heads a creative team of agency copywriters and artists that is assigned to a client's business; is ultimately responsible for the creative product—the form the final ad takes.

media planner

coordinates all phases of production and makes sure everything is completed before client and/or media deadlines

In larger agencies, a staff to produce dealer ads, window posters, point-of-purchase displays, and dealer sales material.

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy the perceived needs, wants, and objectives of individuals and organizations.

A product's ability to provide both symbolic or psychological want satisfaction and functional satisfaction. A product's problem-solving potential may include form, time, place, or possession utility.

Customers, prospective customers, or opinion leaders whose opinions and actions are respected by others.

A group of potential customers who share a common interest, need, or desire; who can use the offered good or service to some advantage; and who can afford or are willing to pay the purchase price. Also, an element of the media mix referring to the various targets of a media plan.

People who buy products and services for their own, or someone else's, personal use.

Organizations that buy natural resources, component products, and services that they resell, use to conduct their business, or use to manufacture another product.

Individuals or companies that buy products needed for the production of other goods or services such as plant equipment and telephone systems.

The activities, actions, and influences of people who purchase and use goods and services to satisfy their personal or household needs and wants.

People who purchase products and services for use in business and government.

The three internal, human operations—perception, learning, and motivation—that govern the way consumers discern raw data (stimuli) and translate them into feelings, thoughts, beliefs, and actions.

Social influences on the consumer decision-making process, including family, society, and cultural environment.

Factors influencing the consumer decision-making process that are often out of the consumer's control, such as time, place, and environment.

The consumer's conscious or unconscious decision—expressed through intention or behavior—to repurchase a brand continually. This occurs because the consumer perceives that the brand has the right product features, image, quality, or relationship at the right price.

A segment within a culture that shares a set of meanings, values, or activities that differ in certain respects from those of the overall culture.

Method of determining market segments by grouping consumers based on their purchase behavior.

Six categories into which consumers can be placed, which reflect varying degrees of loyalties to certain brands and products. The categories are sole users, semisole users, discount users, aware nontriers, trial/rejectors, and repertoire users.

Defining consumers as light, medium, or heavy users of products.

A method of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within the region.

Based on a population's statistical characteristics such as sex, age, ethnicity, education, occupation, income, or other quantifiable factors.

cognitive dissonance

Psychological and personal definition

quick-serve industry

false, 4 ways

collateral materials

olive oil from Italy

advertising

distribution channels

Advertising is the most expensive part of IMC

pizza hut

seven

1960s

distributers

price advertising

branding

seven

exchange

self-regulation

manufacturers brand

advertising

Wieden and Kennedy

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.

behavioristic, geographic, demographic, and psychographic

The grouping of consumers into market segments on the basis of psychological makeup—values, attitudes, personality, and lifestyle.

The sequence of activities aimed at assessing various market segments, designating certain ones as the focus of marketing activities, and designing marketing mixes to communicate with and make sales to these targets.

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.

The most important element of the marketing mix: the good or service being offered and the values associated with it—including the way the product is designed and classified, positioned, branded, and packaged.

Progressive stages in the life of a product—including introduction, growth, maturity, and decline—that affect the way a product is marketed and advertised.