Advertising 230 Unit 3 – Flashcards
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4 C's Of Marketing
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1. Consumer 2. Cost 3. Convenience 4. Communication
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4 P's Of Marketing
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1. Price 2. Product 3. Promotion 4. Price
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How are the 4 C's different from the 4 P's?
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The 4 C's are much more personalized and focused more on the consumer and their experiences than the product
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Where does advertising fit in with the 4 P's?
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This mix, called the marketing mix, is crucial when determining what a product/brand offers
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Advertising Campaigns
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Series of messages that share a single idea/theme that make up an integrated marketing communication (IMC)
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Advertising Agency Jobs
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Various roles - art director decides look - copy director creates concept/idea - creative director is final go or no-go
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What is the role of advertising in the holiday economy?
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- shopping gets it's own holiday - 8% of the year provides 20% of sales - black Friday (black ink = profit)
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Do the same rules for advertising to adults apply to children?
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- legal protection offered to children that isn't offered to adults - Children's Television Act (1990) - Children's Online Privacy Protection (1996) - limits amount of ads - requires separation of programming from advertising - outlaws "host selling"
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Why are kids considered "perfect consumers?"
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- influence on how they should consume - influence on what they should be, such as gender and class roles - early influence on them from a young age can shape them as they grow up
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Agency Holding Companies
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- created by mergers, client globalization - typically serve multi-national accounts Ex: Omnicom, WPP, IPG, Publicis, Havas
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Agency Holding Company Pros
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- negotiating clout - additional services - IMC, PR, CRM, interactive - international links
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Agency Holding Company Cons
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- "does size kill creativity?" - account conflicts galore - management focus on finances
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Brand Equity
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Well known brand name can generate more money than a less known brand name
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How does advertising help create brand equity?
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- people exposed to tons of brands - some brands seem better than others - these become more well known
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Branding
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Use of a name, symbol or design to identify a product or service. Marketing activities to establish/enhance/maintain/change cognitive or behavioral responses
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How did branding develop?
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3 Revolutions - Agricultural - Industrial Revolution - Post Industrial
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What is the relationship of branding to business?
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Marketing has become a major function and organizing principle of business, a significant portion of marketing is marketing communication and a substantial part of marketing communication is the communication of brand image through advertising. Overall, branding is the organizing concept for modern business
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Caveat Emptor
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Latin for "buyer beware"
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Why is caveat emptor important?
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Buyers often have less information about the good or service they are purchasing while the seller has more. Creates a dichotomy of knowledge of the product
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What are some challenges facing advertising?
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- natural market forces - organized market forces - industry self regulation - government regulation - ethics - clutter
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What is clutter?
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Large volume of advertising messages. More clutter leads to more advertising which leads to even more clutter
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Why does clutter happen?
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More advertising means it's less effective, but advertisers are stuck in the endless cycle
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What are some images and themes that are prevalent in Chinese advertising?
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- the color red - collectivist culture - family values - respect your culture, heritage, don't forget where you came from - Chinese New Year/Spring Festival Gala
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What is CPM?
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Cost per thousand
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How is CPM calculated
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cost of ad/viewers (in 1000s)
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What does CPM mean?
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The cost of reaching 1000 people in their targeted audience
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What are the various roles in the creative process?
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- creative director - copywriter - art director - print production team - production company - agency producer - director
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What is diffusion of innovation?
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How, why and at what rate new ideas and technologies spread through cultures
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How is diffusion of innovation related to advertising?
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It measures the effectiveness of ideas
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What is digital advertising?
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Advertising through mobile phones, apps, tablets
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What is direct marketing?
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Marketing done by phone (1-800 numbers), text, coupon, email, catalog, fliers, flat mail, and dimensional mail
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What is the overall goal for direct marketing?
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Increase valuation from current customers
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What are some issues with race and gender in advertising?
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Stereotyping is completely legal
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What does it take to get an entry-level job in advertising?
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It's not what you know, it's who you know
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What's the difference between ethics and regulations
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Regulations = rules Ethics = moral values, principles of conduct
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What is qualitative research?
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Research that looks at qualities Ex: focus groups, interviews
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What is quantitative research?
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Research that looks at numbers Ex: surveys, experiments
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Why should advertisers use event marketing?
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- special events - targets specific individuals - unknown after affect
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Why shouldn't advertisers use event marketing
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- high cost per person vs mass media - uncertain brand recall - clutter i.e. NASCAR
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To what extent does the 1st Amendment cover advertising?
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- "abridging the freedom of speech" - pre 1970's all regulations upheld - post 1980 ads could be regulated if they were deceptive/misleading
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What is commercial speech?
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Speech done on behalf of a company or individual for profit
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Does the 1st Amendment apply to advertising?
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It doesn't specifically call out advertising/commercial speech but still covers it as long as the ad isn't deceptive
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FTC? FCC? FDA?
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Federal Trade Commission Federal Communication Commission Food and Drug Administration
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How do the FTC, FCC, and FDA impact advertising
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- they uphold all regulations - FTC can order consent decrees/cease and desist orders
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What's ahead for the future of advertising?
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- longform "advertainment" - mobile advertising - branded content - hoaxes and other attention getters - addressable advertising - crowdsourcing - social media - addressable television - strange new media
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What is IMC?
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Integrated Marketing Communication. IMC is consistent brand messaging across traditional and nontraditional marketing channels using different promotion methods to enforce
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Where does advertising fit in with IMC?
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A seamless, consistent communication of a company helps them earn a good reputation which translates to higher sales leading to increased stock valuation
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How are magazines used as an advertising medium?
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- shared expense model - they're tailored to subscribers - ad revenue plus subscription revenue - 50% of all magazine pages are ads - targeted behavior/demographics - readership typically receptive to ads
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How are newspapers used as an advertising medium?
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- shared revenue model - local ads predominate - geographic targeting - city/suburban editions - readership typically receptive to ads - news consumption is during the day
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What is market segmentation?
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1. Behavioristic segmentation 2. Geographic segmentation 3. Demographic segmentation 4. Psychographic segmentation
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What is the relationship of marketing to advertising?
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Marketing uses advertising to promote and share tactics
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What are marketing services?
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- known as MarCom (marketing communications) - includes: advertising, personal selling, public relations, sales promotion, and direct marketing
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What is the outlook of marketing services?
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- ROI (return on investment) will increase use - extended relationships with consumers (LTV) means more loyalty programs - shift of ad $ to marketing services - increased competition and need for experts
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What is the marketplace of ideas?
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The "marketplace of ideas" belief holds that the truth will emerge from the competition of ideas in free, transparent public discourse
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What is a mass market?
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Largest group of end consumers for a specific product
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What are the attributes of TV advertising?
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- huge reach - extensive viewing - viewing hours at all time high - high cost per spot - fragmented audience
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What are the attributes of radio advertising?
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- demographically targeted formats - predictable audiences - people listen before shopping - creative considerations - mostly local medium
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What are the attributes of Internet advertising?
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1. Vertical integration - communication - transaction - distribution 2. Horizontal integration - advertising - PR - sales promotion - direct marketing 3. Website integration - increased engagement with brand - extends depth of message 4. Search engine advertising - performance based - ads are text - keyword auction 5. Search engine optimization - based on leveraging search engine routines 6. Social networking - leverages power of interpersonal relationships - leverages power of customer recommendations
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What's the big deal about Google to advertising?
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Google advertises intention, not demos
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What are the attributes of outdoor advertising?
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- geographically targeted - can be demographically targeted - works for quick and easily processed messages - typically used to maintain existing brands - TIVO proof
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What are media commissions?
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Known as "billings," they are used to evaluate the size of the agency
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What is the definition of rating?
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Program viewers/potential viewers (x100) EXAMPLE 2.6 rating means 2.6 million program viewers out of 100 million potential viewers
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What is the definition of reach?
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Percent of audience that has the opportunity to see or hear the ad at least once
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What is the definition of frequency?
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Average number of times a person is exposed to an ad
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What is the definition of share?
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Program viewers/current viewers (x100), the percent of viewers at that moment EXAMPLE 61 share means 61,000 program viewers out of 100,000 tv viewers
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What's the difference between media planning and media buying?
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Media planning: determines the best combination of media to achieve goals Media buying: procurement of media space at optimal placement/price
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What is media saturation?
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Relatively new phenomenon that states that our amount of time with media may exceed time spent with family, school, work, sleep etc. Time with media: 70% Time without media: 30%
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What is media saturations affect on advertising?
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- mass media are funded by advertising - as mass media increases so does advertising - consequence of clutter: increased advertising limits effective which leads to even more advertising
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What is product placement?
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When the brand appears with the star
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How long has product placement been going on?
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Since the start of motion pictures
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How does PR fit in to advertising plans?
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- credibility comes from word of mouth - advertising is not inherently credible - the believability of an ad comes from the preestablished credibility of the brand - the only way to build credibility is word of mouth or personal experience - PR can provide word of mouth
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How are PR and advertising campaigns integrated?
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- know value systems of PR and advertising - understand that ROI may be difficult to calculate - both advertising and PR deliver a consistent marketing message
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How are PR agencies similar/different to advertising agencies?
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Similar: same types of goals Different: PR is smaller
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What is sales promotion?
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- incentives to distributors (aka trade promotion) - incentives to consumers (aka consumer promotion)
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What's the difference between trade and consumer promotion?
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Trade promotion is incentives to distributors while consumer promotion is incentives to consumers
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Is stereotyping legal, and do advertisers use stereotyping?
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Yes and yes
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What is a strategy?
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The path you choose. *Advertising isn't a strategy
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What are tactics?
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The tools you'll use.
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What is the Sender-Receiver model?
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- 2way communication - outbound lane is bigger than the inbound lane - faint feedback, if at all
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What is the Elaboration Likelihood model (ELM)?
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- low involvement products are advertised by peripheral processing - high involvement products are advertised by central processing
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What is AIDA?
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Awareness, interest, decision, action. No awareness means no purchase
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What are rational choice theories?
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Cost-benefits are in the mind of the consumer at the time of purchase
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How does advertising often differ for packaged goods vs durable goods vs services?
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Packaged goods - low cost - purchased frequently - soaps, soft drinks, food, cosmetics Durable goods - high cost - long lasting - infrequent purchase cycle - cars, houses Services - value is a promise, not a physical product - financial companies, car rentals, phone companies
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What is word of mouth advertising?
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People talking about your ad
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What is good about word of mouth advertising?
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Can establish credibility
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What is bad about word of mouth advertising?
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Can be negative, but even bad press is good press
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Are there ethical concerns about word of mouth advertising?
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What may be offensive to one viewer is perfectly acceptable to another, and it's hard to respect all boundaries
