Intro to Advertising – Flashcards
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When a company sells a product but does not follow up in any way is a(n) _____ relationship.
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Basic Transactional
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In a(n) _____, a salesperson sells products and encourages customers to call if they encounter any problems.
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Reactive Relationship
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_____ is the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products by identified sponsors through various media.
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Advertising
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In _____, a third-person persona tells a story about others to an imagined audience.
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Narrative Messages
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A bargain barn in the suburbs of Philadelphia placed an ad in the local newspaper to attract consumers with heavy discounts over the Thanksgiving weekend. But, most people missed the ad owing to a spate of promotional ads placed by a newly-opened pizzeria in the same locality. The ads of the pizzeria were colorful and attractive which distracted many potential consumers of the bargain barn. Consequently, there was much less footfall over the Thanksgiving weekend in the bargain barn than expected. The ads of the local pizzeria served as _____ for the bargain barn.
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Noise
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A firm's advertising is always aimed at a particular segment of the population referred to as the _____.
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Target Audience
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The type of advertising published in psychiatry journals aimed at practicing psychiatrists is referred to as _____.
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Business advertising
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Define integrated marketing communications.
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Coordinating a strategic communications program that enables a customer to make constructive contact with the company or brand through a variety of media.
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What is relationship marketing?
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Creating, maintaining and enhancing long-term relationships with customers and other stakeholders that result in exchanges of information and other things of mutual value.
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According to Kotler and Armstrong, what are the five levels of relationships that can be formed between a company and its various stakeholders?
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1. Transactional 2. Reactive 3. Accountable 4. Proactive 5. Partnership
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Describe the traditional human communication process.
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source, encoding, message, channel (NOISE), decoding, receiver (FEEDBACK)
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How does the human communication process relate to the advertising process?
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Advertising is a more structured form of communication between advertiser and customer.
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What is the ultimate goal of the marketing process?
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To earn a profit for the firm by consummating the exchange of products or services with those customers who need or want them.
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Describe how advertising fits into the marketing process.
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Advertising is an important tool that can help the organization achieve its marketing goals.
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What is the difference between consumer and business advertising?
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Consumer advertising is more emotionally persuasive and entertaining. Business advertising is meant to persuade professional buyers who are buying goods or services for business use. It is more factual and has more copy.
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During the _____, the Chinese invented paper and Gutenberg invented the printing press in Germany.
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Pre-industrial age
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Who among the following is regarded as the father of advertising art and was the first American known to use illustrations in ads?
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Ben Franklin
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An ad in a fitness magazine offered a 30-day, free, at-home trial of an exercise bicycle with free shipping, and the option of returning the bicycle if the customer was not satisfied with it. The primary function of the ad was to:
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Induce non-users to try the product
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During the Great Depression in America, each brand sought to convince the public of its own special qualities. What is this marketing strategy known as?
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product differentiation
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During the 19th century, manufacturers changed their focus to _____ in order to wrest back control from wholesalers.
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marketing
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A feature that differentiates a coffee-maker from other similar products in the market is its _____.
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Branding
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A publishing company prints three monthly magazines—one each for horse breeders, adventure sports enthusiasts, and care givers—to cater to different groups of readers with varying interests. This is an instance of _____.
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Market segmentation
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When a soft drink company introduced a new peach-flavored drink in a market saturated with colas, it immediately found favor with health-conscious consumers. In this example, the soft drink company effectively uses _____ by associating its brand with the consumers' focus on healthy living.
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positioning strategy
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During the postindustrial age, a growing affluence and sophistication of the consuming public characterized the marketing world of that time period in America. This trend was led by the _____.
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Baby Boomers
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The record decline in advertising activity in America in 2001 resulted from:
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stockmarket decline, mild recession, 9/11
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Typically, advertising expenditures are higher in countries with higher _____.
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personal incomes
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What is the significance of information in the context of a market economy?
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customer can make an informed decision
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Name the first "typefounder" who perfected a roman typeface that bears his name and is still used today.
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Garamond
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What are consumer packaged goods?
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inexpensive brands of consumer luxury and convenience goods that are consumable
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Describe the four fundamental assumptions of free-market economics.
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1. Self interest 2. Many buyers and sellers 3. Complete information 4. Absence of externalities
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Simon Bates, a market analyst, believes that advertising sometimes causes prices of products to increase which, in turn, affect consumer demand adversely. In this instance, Bates is focusing on the _____ role of advertising.
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economic
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David visited the supermarket to buy soft drinks. In this instance, David's demand for soft drinks can be classified as _____.
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primary demand
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David visited the supermarket to buy soft drinks. In this instance, David's demand for soft drinks can be classified as _____.
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primary demand
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When the city of Pensacola in Florida uses the slogan, "the best seafront vacation in the Americas" to promote tourism in the area, it is using _____.
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puffery
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According to African American Sam Perkins, the owner of Maryland's largest ad agency, "If you were to come from another planet and watch American television, you would think that all black people did was play basketball and hang out on street corners, and do rap music." In this instance, Perkins is accusing advertising of:
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stereotyping
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_____ refers to doing what society views as best for the welfare of people in general or for a specific community of people.
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social responsibility
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The FTC defines _____ as any ad that contains a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment.
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deceptive advertising
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MedPro, an American drug manufacturer, claimed in an ad that its new drug for reducing cholesterol in adults is better than other similar drugs currently available in the market. According to the claims made by MedPro, the new drug significantly reduced the chance of heart disease, a dreaded side effect of some cholesterol-reducing drugs. Furthermore, laboratory tests helped substantiate MedPro's claim that the new drug substantially reduced the risk of heart disease in patients with high cholesterol. This is an example of _____.
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comparative advertising
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Through the issuance of _____, the government provides incentives to invent, invest in, and disclose new technology worldwide.
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patents
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The _____, an association of the largest ad agencies in the United States, controls agency practices by denying membership to any agency judged unethical.
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AAAA
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What reason do the proponents of advertising cite when they say advertised products are safer?
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because they are more regulated
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How does advertising add value to a brand?
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builds reputation, informs public, builds brand equity
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How does advertising help lower prices?
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by increasing demand, allowing manufacturers to produce more for less, increases competition
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What is selective demand?
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Consumer demand for the particular advantages of one brand over another
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What is a trademark?
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Any word, name, symbol or device used to differentiate a product from its competition
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A hardware store mails an advertising flyer to all the residents in its community. This is an example of _____ advertising
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local
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During the first week of November, local pharmacies ran ads to announce they were selling all of their Halloween candy and decorations at half their original prices. This advertisement is an example of:
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Clearance advertising
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A petroleum company ran a series of commercials in which they asked consumers how they could improve and preserve the natural environment. After consumers responded to the ad, a spokesperson explained how the company was doing more than its share to protect the environment. These commercials are examples of _____ advertising.
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Institutional
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A national manufacturer assisting a distributor in product promotion by providing direct mail flyers is an example of _____ advertising.
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Vertical co-op
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As of January 2012, a super market chain operates 142 supermarkets in the metropolitan areas of New York, New Jersey, and Philadelphia. The chain advertises only in states where it has stores. This form of advertising is known as:
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Horizontal co-op
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In a _____, a company sets up separate ad departments for different divisions, subsidiaries, regions, brands, or other categories that suit the company's needs.
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decentralized department structure
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A(n) _____ is formed by talented artists who work for advertisers and occasionally subcontract to advertising agencies. Their mission is to develop exciting creative concepts and to produce fresh, distinctive advertising messages.
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creative boutique
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_____ must have the skill to condense all that can be said about a product into a few salient and pertinent points.
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copy writer
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An ad agency's _____ coordinates all phases of production and makes sure everything is completed before the client and/or media deadlines.
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creative director
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When an advertising agency purchases several hours of television time for its customers' commercials from a television station, the agency receives 15 percent of the gross amount charged by the station. The 15 percent is known as:
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media commissions
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An ad agency in Atlanta, Georgia, buys a quarter-page ad in a golfing magazine for a travel agency that specializes in preparing all-inclusive, hassle-free golf travel packages, on a 15 percent commission basis. The cost of the ad is $300. How much money should the agency pay the publication?
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$255
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An ad agency may need to purchase photographs and illustrations from an outside supplier for its client. The agency pays the outside supplier a fee and adds a(n) _____, usually 17.65 percent, to the client's bill.
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Markup
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In the _____ method of compensation, advertising agencies charge clients for all their services and credit any media commissions earned to the client.
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straight fee (retainer) method
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What is the greatest disadvantage associated with in-house ad agencies?
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Loss of objectivity, lower creativity, less experience or talent
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The advertising business has evolved into four distinct groups. List them.
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Advertisers, Agencies, Suppliers and Media
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_____ refer(s) to the mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy needs and wants.
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consumer behavior
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The term _____ refers to the information we receive through our five senses.
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perception
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_____ is a relatively permanent change in thought process or behavior.
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learning
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_____ occur(s) when the change in belief, attitude, or behavioral intention is caused by promotion communication.
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persuasion
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A(n) _____is our acquired mental position regarding some idea or object.
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attitude
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Paula always drinks a Softpop, a brand of soda. If the department store where she usually shops does not stock Softpop, she refuses to buy a different brand and goes to another store to find it. In this instance, she displays _____ for Softpop through her behavior.
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brand loyalty
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An advertisement for an elite school invites students "who want to be more, who can be more, and who dare to be more" to call or write for additional information. According to Maslow's hierarchy of needs, this advertisement is a promotional appeal to one's _____ need.
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self-actualization
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_____ refer to people one tries to emulate or whose approval is important.
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reference groups
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A famous basketball player endorses a brand of sportswear. For the brand's target market that consists of young males, the basketball player is most likely to be a(n) _____.
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opinion leader
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Since Americans love hot dogs, peanut butter, corn on the cob, and apple pie, a foreign fast food restaurant that recently opened in an American city changed its menu to suit local tastes. This is an example of the influence of _____ in marketing.
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culture
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When buying a new backpack, Maria selected four different brands in the shop and checked them for durability and quality. In this scenario, the alternative brands that she evaluated comprised the _____.
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evoked set or consideration set
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Johann buys an expensive microwave oven for his wife from an online retailer. After having made the purchase, he begins to wonder whether he should have bought a different model. He starts to weigh the pros and cons of both models but decides that the one he had bought was better anyway. This is an example of _____.
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post purchase dissonance
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List the three general categories of customers.
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Current customers, prospective customers and centers of influence
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What are the two routes to persuasion according to the Elaboration Likelihood Model?
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central and peripheral
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What are the three aims related to habits that companies have in the quest for brand loyalty?
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breaking habits, acquiring habits, reinforcing habits
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In terms of user status, _____ perceive two or more brands to have superior attributes and will buy at full price.
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repertoire users
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A manufacturer of wax for snow skis offers different versions of its product so that it is suitable for areas where the snow tends to be wet and heavy, in regions where the snow is packed, and in places where the snow is a fine powder. This is an example of _____ segmentation.
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geographic segmentation
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A home building company specializes in constructing houses for old people. The houses are constructed with doors wide enough for wheelchairs to pass through, lever-operated door handles, roll- out shelves, and raised toilet seats. Which of the following types of market segmentation does this company employ?
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benefit segmentation
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By marketing products to people who desire a luxurious lifestyle, a company is using _____ segmentation.
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psychographic segmentation
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To appeal to a new target market, a coffee manufacturer changed the product's package design, reformulated the coffee, began advertising price discounts in magazines, and started distributing samples of the new product at coffee shops. In this scenario, the coffee manufacturer changed the _____ in order to boost sales.
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Marketing Mix
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_____ represent(s) the value of a brand's capital.
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equity
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When companies manufacture a product and sell it to resellers (distributors or dealers), who put their own brand on the product, it is called a(n) _____ strategy.
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private labeling
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A cosmetics company allows customers to purchase its products through its Web site. This represents _____ distribution.
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direct
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A(n) _____ includes all the firms and individuals that take title or assist in taking title to the product as it moves from the producer to the consumer.
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distribution channel
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List the four major stages in the product life cycle.
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introduction, growth, maturity, decline
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How is product pricing affected by market demand?
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Higher demand=lower price; Lower demand=higher price
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Describe the steps involved in the market segmentation process.
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1. identify groups of people with shared needs. 2. aggregate these groups into larger market segments according to their interest in the product's utility
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According to Stephan and Tannenholz, what are the six categories of consumers based on user status? Briefly describe them.
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1. Sole users 2. Semi-sole users 3. discount users 4. aware non triers 5. trial/rejectors 6. repertoire users
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Briefly describe the 4Ps of marketing.
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Product- what are we selling, Price-How much should it cost, Place-where will it be distributed, Promotion-How will we advertise it
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Distinguish between primary demand and selective demand.
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Primary Demand - consumer demand for the whole category, Selective Demand - consumer demand for a specific brand
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_____, a category of IMC research, provides the advertiser with useful guidelines for future advertising by evaluating the effectiveness of an individual ad or an entire ad campaign after it runs.
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post-testing
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_____ refers to the systematic gathering, recording, and analysis of new information to help managers make marketing decisions.
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marketing research
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To increase the likelihood of preparing the most effective advertising messages, companies use ____, a category of IMC research.
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pre-testing
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A marketing research agency conducted a study to determine the reasons for the failure of a campaign aimed at curbing binge drinking among college students. The researchers visited various university campuses and collected information by speaking to students as well as members of the staff. This information gathered by the researchers is an example of _____.
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informal research
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In order to get hard numbers about specific marketing situations, researchers may perform a survey or use some other form of _____.
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quantitative research
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Investigators use _____ to encourage consumers to openly discuss their thoughts and feelings in response to questions from an interviewer.
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qualitative research
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The _____ method of conducting marketing research is used to measure cause-and-effect relationships.
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experimental method
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A technology research company conducted an evaluation of its service by asking consumers to fill a questionnaire about how well the company's Web site helped them find the information they were looking for. In this scenario, which method of marketing research did the technology company use?
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survey
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In _____, test commercials are shown with noncompeting control commercials to determine their effectiveness, measure comprehension and attitude shifts, and detect weaknesses.
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clutter tests
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_____ measure what respondents noticed, not whether they actually buy the product.
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recall tests
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Researchers select from the population a(n) _____ that they expect will represent the population's characteristics.
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sample
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_____ do not give every unit in the entire target population an equal chance of being included, so there is no guarantee the sample is representative.
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non-probability samples
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Describe how research objectives should be established in the marketing research process.
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A company must be clear about what decisions it has to make that research results will guide. Once it knows the application, it can set down clear, specific research objectives in writing.
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What are the advantages and disadvantages of using focus groups?
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Pros: can help determine if spokesperson is viable, can point out if ad is unclear or if claims are not plausible Cons: aren't a representative sample of population, may fall victim to halo effect
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Briefly describe how questionnaires are designed.
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Effective survey questions have three important attributes: focus, brevity and clarity. The 4 most common types of questions used are: open-ended, dichotomous, multiple choice and scale Demographic questions should come at the end of the survey.
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A(n) _____ is a document that serves as a guide for the present and future marketing activities of an organization.
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A marketing plan
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Starting the marketing plan with a _____ helps remind planners and marketing partners about what the organization is and what it stands for.
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mission statement
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A(n) _____ refer(s) to a detailed description of a brand's current marketing position.
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situation analysis
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_____ refer to outcomes that can reasonably be associated with promotional activities, such as increases in brand recognition or awareness.
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communication objectives
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_____ refer(s) to the place a brand occupies competitively in the minds of consumers.
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positioning
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In terms of marketing strategy, the _____ of a company determine(s) the specific short-term actions to be taken, internally and externally, by whom, and when, and largely influence advertising campaigns.
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tactics
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What is the first step in Wang and Schultz's seven-step IMC planning model?
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segmentation/classification
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In the IMC pyramid, _____ refers to acquainting people with the company, product, service, and brand.
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awareness
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In terms of IMC strategy, the _____ refer(s) to the specific people the IMC will reach.
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target audience
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The "bundle of values" the advertiser presents to the consumer is referred to as the _____.
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product concept
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What is meant by SWOT analysis?
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Strengths, Weaknesses, Opportunities, Threats
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Distinguish between sales target objectives and communication objectives.
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Sales Target Objectives: increasing and maintaining sales volume and market share Communication Objectives: Increasing brand awareness, comprehension or image
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Briefly describe the bottom-up marketing plan.
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A company begins by finding one great tactic, then focuses all elements of the marketing mix and strategy on the tactic
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Describe the five communication objectives in terms of the IMC pyramid.
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Awareness- to acquaint people with the company, product, service and brand Comprehension- to communicate enough information about the product so that some percentage of the aware group recognizes the product's purpose, image, or position, and perhaps some of its features Conviction- to persuade a certain number of people to actually believe in the product's value Desire- moving people to want the product Action- some percentage of those who desire the product will take action
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Briefly describe any five of the nine methods for setting an IMC budget.
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% of sales, % of profits, unit of sale, competitive parity, All available funds
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The elements of the _____ are the product concept, target audience, advertising message, and communications media.
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creative mix
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For print media, _____ refers to the number of subscribers.
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the circulation
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For print media, firms like the Audit Bureau of Circulations count and verify the number of subscribers and then multiply by the estimated number of _____ to determine the total audience.
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reader per copy (RPC)
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An _____ refers to a possible exposure of the advertising message to one audience member.
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advertising impression
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The _____ refers to the percentage of homes exposed to an advertising medium.
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rating
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_____ refers to the total number of unique (or different) people or households exposed, at least once, to a medium during a given period of time, usually four weeks.
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reach
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_____ measures the intensity of a media schedule, based on repeated exposures to the medium or the program.
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frequency
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_____ refers to the duration of an advertising message or campaign over a given period of time.
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continuity
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The _____ indicates the sales potential of a particular brand in a specific market area.
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brand development index (BDI)
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In a _____ media schedule, advertising runs steadily and varies little over the campaign period.
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continuous
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The _____ method for scheduling media alternates periods of advertising with periods of no advertising.
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flighting
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In the _____ method for scheduling media, the advertiser maintains a low level of advertising all year but periodically increases the intensity during peak selling periods.
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pulsing
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_____, a method for scheduling media, refers to buying air time on all networks simultaneously.
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road blocking
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List the two methods an advertiser may use to accumulate reach.
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By using the same media vehicle continuously, or by combining two or more media vehicles
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What is meant by effective reach and effective frequency?
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Effective Reach: Measures the number or percentage of audience that receive enough exposures to truly receive the message Effective Frequency: The average number of times a person must see or hear a message before it becomes effective
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The _____, a member of the creative team, is responsible for the nonverbal aspect of the message, the design, which determines the visual look and intuitive feel.
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art director
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In advertising, the _____ is determined by what a company wants to say and how it wants to say it.
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IMC message
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A(n) _____ refers to a simple written statement of the most important issues to consider in the development of a campaign: the who, why, what, where, and when.
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creative brief
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Marketers use _____ appeals that are directed at the consumer's practical, functional need for the product or service.
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rational
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_____ appeals target the consumer's psychological, social, or symbolic needs.
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emotional
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A(n) _____ refers to a simple description and explanation of a campaign's overall creative approach— what the campaign says, how it says it, and why.
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message strategy
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In terms of the technical component of a message strategy, _____ refer(s) to specific requirements such as addresses, logos, and slogans.
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mandatories
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_____ thinkers make decisions based on intuition and ethical judgments. They are better able to embrace change, conflict, and paradox.
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value based
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_____ thinkers tend to fragment concepts into components and to analyze situations to discover the one best solution.
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fact based
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_____ refers to a process in which two or more people get together to generate new ideas.
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brainstorm
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In the advertising process, who are the creatives?
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copy writer, art director and creative director
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Briefly describe the composition of a creative team.
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Copywriter is responsible for the verbal message, the art director for the nonverbal message, the creative director is responsible for the creative product's final form
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Briefly describe the two dimensions of great advertisements.
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Audience impact dimension- an ad is most effective when it resonates with an audience. This can be done through informational methods or transformational methods. (this is my nutshell description, pg. 307-308) Relevance dimension- the tone, words and ideas must be relevant to the strategy, or it will fail, even if it resonates with the audience (pg. 308)
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Describe Roger Von Oech's four-step creative model.
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Van Oech describes four distinct, imaginary roles that every copywriter and art director has to adopt at some point in the creative process: 1. The Explorer- searches for new info, pays attention to unusual patterns 2. The Artist- experiments and plays with a variety of approaches, looking for an original idea 3. The Judge- evaluate the results of experimentation and decides which approach is most practical 4. The Warrior- overcomes excuses, idea killers, setbacks, and obstacles to bring a creative concept to realization
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When the brain is overloaded with information about a problem, creatives sometimes find it's best to just walk away from it for a while. Why?
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Stepping away from the problem puts it back into perspective. The brain has a chance to rest while the problem incubates in the subconscious. This enables better ideas to percolate to the top