Ch. 16 Advertising, Publicity, and Sales Promotion – Flashcards
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product advertising
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tries to sell a product
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three categories of product advertising
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pioneering, competitive, reminder
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pioneering advertising
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tries to develop primary demand for a product category rather than demand for a specific brand
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competitive advertising
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tries to develop selective demand for a specific brand
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competitive advertising - direct type
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aims for immediate buying action
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competitive advertising - indirect type
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points out product advantages to affect future buying decision
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comparative advertising
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making specific brand comparisons - using actual product names. ex: a verizon commercial comparing their plans to at&t
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institutional advertising
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focuses on the name and prestige of an org or industry. seeks to inform, persuade, or remind. basic objective is to develop goodwill. its all about the ideas, not the product
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advertising allowances
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price reductions to firms further along in the channel to encourage them to advertise or otherwise promote the firm's products locally
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cooperative advertising
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involves producers sharing in the cost of ads with wholesalers or retailers. helps intermediaries compete in their local markets
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standard rate and data
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provides a guide to the thousands of magazines now available in the US
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copy thrust
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what the words and illustrations should communicate. job of an advertising specialist
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AIDA
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Attention, interest, desire, action
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unique selling proposition
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what an ad should focus on. it aims at an important unsatisfied need
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advertising agencies
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specialists in planning and handling mass selling details for advertisers
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the "big four"
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WPP Group, Omnicom Group, Publicis Groupe, Interpublic - gets about 54% of all advertising/media agency revenue
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FTC has the power to
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control unfair or deceptive business practices, including deceptive advertising. it has the power to require affirmative disclosures - such as the health and warnings on a cig box
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corrective advertising
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ads to correct deceptive advertising. ex: listerine said that their product helped prevent colds. buulllllshit.
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1988 revision of the Lanham Act
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protects firms whose brand names are unfairly tarnished in comparative ads
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publicity
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any unpaid form of nonpersonal presentation of ideas, goods, or services
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sales promotion
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refers to those promotion activities - other than advertising, publicity, and personal selling - that stimulates interest, trial, or purchase by final customers or others in the channel. prompts short term action
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advertising
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any paid form of non personal presentation and promotion of ideas, goods, or services
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what percentage of sales are spent on advertising?
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2.5%
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independent agency
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firms like this because of the experience, expertise, and privacy of the agency
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specialty vs. full service agency
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some focus on just the creative side and others wont do research full service will do everything
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compensation for an agency
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15% is the normal charge of the advertising that they buy for you
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ethical conflicts
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it's a conflict of interest: the more advertising you do, the more you get paid. if the agency is representing a client in the same industry, it may bother you
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what are the key characteristcs of the firm's target market?
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lifestyles, attitudes, demographics, location
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five factors to consider when setting an advertising budget
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stage in product life cycle market share competition product complexity substitutability
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what medium has the highest reach?
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TV
