| Advertising | Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor |
| Advertising Objective | Specific Communication task to be accomplished with a specific target audience during a specific time Objectives are classified by primary purpose: -inform -persuade -remind |
| Informative Advertising | Introducing a new product category; objective is to build primary demand |
| Comparative Advertising | Directly or Indirectly compares the brand with one or more other brands |
| Persuasive Advertising | Important with increases competition to build selective demand |
| Reminder Advertising | Important with mature products to help maintain customer relationships and keep customers thinking about the product |
| Advertising Strategy | Company accomplishes its advertising objectives and consists of: -creating advertising messages -selecting advertising media |
| Madison & Vine | Represents the merging of advertising and entertainment |
| Creating Advertising Message | Message Strategy to Creative Concept to Message Execution |
| Creative Concept | Idea that will bring the message strategy to life and guide specific appeals to be used in advertising campaign -meaningful -believable -Distinctive |
| Message Execution | Advertiser turns the big idea into and actual ad execution that will capture the target market’s attention and interest -tone (+ or -) -attention getting words -format: Illustration, Headline, Copy |
| Creative Team (msg execution) | Must find the best approach, style, tone, words, and format for executing the message |
| Benefits towards Media Advertising | -Low Expense -New creative ideas -Fresh perspective on brand -Boost consumer involvement ex: Youtube Videos or Brand Web site contests |
| Reach (selecting advertising media) | Measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time |
| Frequency (selecting advertising media) | Measure of how many times the average person in the target market is exposed to the message |
| Impact (selecting advertising media) | Qualitative value of a message exposure through the given medium |
| Selecting Media Vehicles | Decisions presenting the media effectively and efficiently to the target customer and must consider the message’s: -impact -effectiveness -cost |
| Narrowcasting (selecting advertising media) | Focuses the message on selected market segments -lower cost -targets more effectively -engages customers better |
| Selecting Advertising Media Timing | Consider: -Seasonality -Pattern of Advertising: Continuity and Pulsing |
| Continuity (Pattern of Ad.) | Scheduling within a given period |
| Pulsing (Pattern of Ad.) | Scheduling unevenly within a given period |
| Communication effects | whether the ad and media are communication the ad message well and should be tested before or after the ad runs |
| Sales and Profit Effects | Compare past sales and profits with past expenditures or through experiments |
| Public Relations | Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Promotes product, people, ideas, and activities |
| Press Relations or Press Agency | Creation and Placing of Newsworthy information to attract attention to a person, product, or service (public relation department functions) |
| Product Publicity | Publicizing specific products (public relation department functions |
| Public Affairs | Building Maintaining National or Local Community Relations (public relation department functions |
| Lobbying | Building and Maintaining Relations with legislators and government officials to influence legislation and regulation (public relation department functions |
| Investor Relations | Maintaining relationships with shareholders and others in the financial community (public relation department functions |
| Development | Public Relations with donors or members of nonprofit organizations to gain financial or volunteer support |
| Differences of Public Relations and Advertising | Lower cost than advertising Stronger impact on public awareness than advertising |
| Allstate created Mayhem campaign in response to | competitors boosting budgets and creative splash |
| Advertising | any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor |
| How much do US Advertisers spend per year on ads v. worldwide? | 144 in the US, 489 in the world |
| World’s largest advertiser | P&G |
| US Government is the _____ largest advertiser | 28th |
| 4 important decisions marketing managers must make when developing an advertising program: | setting advertising objectives, setting the advertising budget, developing advertising strategy, and evaluating advertising campaigns |
| way to remember 4 important decisions marketing managers must make: | OBSE |
| The first step in developing an advertising program | Setting Advertising Objectives |
| Advertising Objective: | A specific communication TASK to be accomplished with a specific TARGET audience during a specific TIME |
| The 3 Ts of an Advertising Objective | Task-Target-Time |
| The primary purpose of ads | to inform, persuade, or remind |
| Informative Advertising | Using heavily when introducing a new product. Objective of informative advertising is to build primary demand |
| Persuasive Advertising | Objective is to build selective demand; becomes more important as competition increases. |
| Comparative Advertising | Attack advertising; a company directly or indirectly compares its product to another brand |
| Where can competitors file complaints because of attack/comparative advertising? | National Advertising Division of the Council of Better Business Bureau |
| Reminder Advertising | important for mature products to maintain relationships and keep customers thinking about the product |
| Advertising Budget | The dollars and other resources allocated to a product or a company advertising program |
| 4 commonly used methods for setting promotion budgets: | The affordable method, the percentage of sales method, the competitive-parity method, and objective-and task method |
| Affordable method for setting budget | setting the promotion budget at the level management thinks the company can afford |
| The % of sales method for budget setting | setting the promotion budget at a certain percentage of current or forecasted sales or as a % of unit sales price |
| Competitive Parity Method | Setting the promotion budget to match competitors’ outlays |
| Objective and task method | developing the promotion budget by 1-defining specific promotion objectives and 2-determining the tasks needed to achieve these objectives, and 3-estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget. |
| Way to remember the 4 methods for setting an affordable budget | APCO |
| What does APCO stand for? | Affordable – Percentage of Sales – Competitive – Task and Objective (these are the four methods for setting a budget for an advertising campaign) |
| A brand’s advertising budget can depend on its _____ | stage in the product life cycle |
| Newer products typically need ____ advertising budgets | larger |
| _____ affects the amount of advertising needed | market share |
| Building market share requires ____ advertising compared to maintaining market share | more |
| Undifferentiated brands | brands that closely resemble other brands of their product class (soda, laundry detergent) |
| Undifferentiated brands need ____ advertising compared to other products | more |
| Companies that can maintain or increase their advertiser spending while competitors may be cutting theirs ______ | can gain a competitive advantage |
| 2 major elements of advertising strategy | advertising message & media |
| Advertising strategy | strategy by which the company accomplishes its objectives. 2 major elements of advertising strategy: creating messages and selecting media |
| How many ads is the average consumer exposed to on a normal day? | 3,000 to 5,000 ads |
| thanks to the growth of DVRs, people are choosing _______ | not to watch ads |
| Madison & Vine | A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching customers with more engaging messages |
| What does Madison & Vine represent? | The combining of Madison Avenue in New york with Hollywood & Vine in california to represent the merging of advertising and entertainment in an effort to create new avenues for reaching consumers with more engaging messages |
| MADISON AND VINE | merging of advertising and entertainment |
| 2 forms of the combination of madison and vine: | advertainment or branded entertainment |
| aim of advertainment | make ads themselves so entertaining, or so useful that people want to watch them |
| Prime example of advertainment | Super Bowl ads |
| branded entertainment | making the brand an inseparable part of some other form of entertainment. |
| main example of branded entertainment | product placement |
| Ads have to be _ _ or _ for viewers to willingly watch | interesting, useful, entertaining |
| Advertising agency JWT: | “We believe advertising needs to stop interrupting what people are interested and be what people are interested in” |
| First step in creating an effective marketing message | plan a message strategy |
| message strategy | general message that will be communicated to consumers |
| Purpose of advertising | to get consumers to think about or react to the product or company in a certain way |
| Creative Concept | the “big idea” that will bring an advertising message strategy to life in a distinctive and memorable way |
| Advertising appeals should have 3 characteristics: | meaningful, believable, distinctive |
| Meaningful aspect of advertising: | pointing out benefits that make the product more desirable or interesting |
| Believable aspect of advertising | consumers must believe that the product or service will deliver the promised benefits |
| Distinctive aspect of advertising: | should tell how the product is better than competing brands |
| Execution Style of Message: | The approach, style, tone, words, and format used for executing an advertising message |
| Various execution styles through which a message can be presented: | slice of life, lifestyle, fantasy, mood or image, musical, personality symbol, technical expertise, scientific evidence, testimonial evidence or endorsement |
| Slice of life advertising | shows one or more typical people using the product in a normal way |
| Flo from Progressive would be an example of the following execution style: | Personality Symbol |
| Consumer Generated Messages: | companies are tapping consumers for message ideas or ads |
| Ad-Creation Contests would be an example of a | consumer generated message |
| Advertising Media: | The vehicles through which advertising messages are delivered to their intended audiences |
| 4 major steps to advertising media: | 1- determining reach, frequency, and impact. 2-choosing among major media types 3-selecting specific media vehicles 4-choosing media timing |
| Way to remember steps to advertising media | ITVT- impact,type, vehicle, timing |
| Reach | % of people in the target market exposed to the ad campaign |
| Media planners want to choose media that will | effectively and efficiently present the advertising message to target customers |
| good mass marketing coverage, low cost per exposure, appealing to the senses | TV as a medium |
| high absolute costs, high clutter, fleeting exposure, less audience selectivity | TV as a medium |
| high selectivity, low cost, immediacy, interactive capabilities | Internet as a medium |
| potentially low impact, audience controls exposure | Internet as a medium |
| Flexibility, timeliness, good local market coverage, broad acceptability, high believability | Newspaper as a medium |
| Short life, poor reproduction quality, small pass-along audience | Newspaper as a medium |
| High audience selectivity, flexibility, no ad competition within the same medium, allows personalization | Direct mail as a medium |
| relatively high cost per exposure, “junk mail” image | direct mail as a medium |
| High geographic and demographic selectivity, credibility and prestige, high quality reproduction, long life and good pass-along readership | Magazines as a medium |
| Long ad purchase lead time, high cost, no guarantee of position | magazines as a medium |
| good local acceptance, high geographic and demographic selectivity, low cost | radio |
| audio only, fleeting exposure, low attention | radio |
| flexibility, high repeat exposure, low cost, message competition, good positional selectivity | outdoor as a medium for advertising |
| little audience selectivity, creative limitations | outdoor as a medium for advertising |
| Continuity | scheduling ads evenly within a given period |
| When deciding what magazine to place an ad in a marketing manager will look at | the cost per 1,000 readers |
| Return on Advertising Investment | (net return on advertising investment) / (Costs of advertising investment) |
| Advertisers should regularly evaluate 2 types of advertising results: | communication effects and the sales and profit effects |
| Communication effects of evaluating advertisement effects: | whether the ads and media are communicating the ad message well |
| Advertising Agency | a marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs |
| largest advertising agency in the US | BBDO Worldwide |
| Most basic concern to international advertising | the degree to which global advertising should be adapted to the unique characteristics of various country markets |
| Benefits of standardization of advertising | lower advertising costs (economies of scale), greater global advertising coordination, and a more consistent worldwide image |
| Most international advertisers | “think globally but act locally” |
| Alcohol products can’t be advertised in | India or Muslim countries |
| Public relations | building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. |
| Various functions performed by PR departments | press relations or press agency, product publicity, public affairs, lobbying, investor relations, development |
| _______ can have a strong impact on public awareness at a much lower cost than advertising does | Public Relations |
| What does a company pay for regarding public relations? | the staff |
| Main tool of PR | news |
| Frito-Lay was looking for new flavors for potato chips and ran a? multi-stage contest among consumers who submitted ideas for new chips. Those entries eventually were narrowed to three flavors which were then manufactured and tested in the market. What tactic was? Frito-Lay employing? | consumer-generated content |
| companies can improve public goodwill by contributing $ and time to | public service activities |
| the 50th largest advertising spender is what agency? | The US Government |
| What are the two major elements that make up advertising strategy? | creating advertising messages and selecting advertising media (MESSAGES AND MEDIA) |
| What does the term Madison & Vine mean? | the merging of advertising and entertainment |
| brands in a market with high competition and high advertising clutter must | be advertised more heavily to be noticed in the marketplace |
| What is a disadvantage of using direct mail as an advertising medium? | relatively high cost per exposure |
| Product placement is an example of | branded entertainment |
| Which message execution style depicts people using the product in a normal scenario? | slice of life |
| Which of the following is a media? measure? | click-through rate |
| Which of the following is a major step in selecting advertising? media? | determining reach, frequency, and impact |
| Promotion mix | A companies total promotion (communication mix) used to communicate customer value |
| 5 major promotion mix tools | Advertising, sales promotion, personal selling, public relations, Direct Marketing |
| the new marketing communications model | Changing consumers- better informed Companies these days are doing less broadcasting and more narrowcasting by segmenting audiences. |
| Integrated marketing communications | Coordinating all of the companies communication channels. Companies often fail to integrate their communications because they come from different parts of the company. |
| Markets are loosing confidence in TV advertising because of | Increasing ad clutter, using streaming on computers, audience size on decline for TV, DVR’s |
| The nature of Advertising | buyers at a low cost per exposure, Can build up long-term image for a product, consumers tend to view advertised products as more legitimate |
| The nature of personal selling | is the most effective promotional tool in building up buyers’ preferences and actions. |
| Sales promotion | not very effective in building long-run brand preference and customer relationships. Advertising says buy my product. sales promotion says buy it now (coupons, contests, promotions) ex. monopoly game |
| PR- crisis management | when something goes wrong PR has to figure out what to do |
| Direct Marketing | 1. Less public 2. immediate 3. customized 4. quick 5. interactive |
| Push promotion strategy | Directs marketing efforts towards market channel members |
| Pull promotion strategy | spend money on consumer (pull off shelves) |
| 4 important decisions in developing advertising | 1. set objectives 2. set AD budjet 3. developing strategy 4. AD evaluation |
| reach (advertising) | how many people you reach |
| frequency (advertising) | how often. repetition is key to memory |
| Advertising OBJ can be classified by their primary purpose | to inform, to persuade, to remind |
| informative Advertising | used when introducing a new-product category, objective is to build demand. ex: swifter |
| Reminder Advertising | Important for mature products. ex: coke, M&Ms |
| Share of voice | How much they spend vs other companies? Larger the share of market the less you have to advertise. |
| Comparative Advertising | Larger shares will not use comparitive |
| Percentage-of-sales method | setting promotion budget at a certain percentage. Very simple to use but it wrongly views sales as cause of promotion rather than result. |
| Competitive-parity method | parity means equal |
| Objective-and task method | most logical methon. spending enough to accomplish specific goals |
| Advertising Strategy | creating messages, selecting media |
| Madison & Vine | the merging of advertising and entertainment. Brand entertainment or brand integrations |
| To succeed and AD must | 1. Gain attention 2. Be engaging |
| 3 Types of Ads messages (commercials) | 1. Rational 2.emotion 3.moral |
| Message strategy | Advertising appeals should be meaningful, believable, and distinctive |
| execution style | the approach, style. ex. humor, high tech, mood |
| Consumer-generated messages | Amateur video with mentor in Diet coke is an example of growing trend in consumer generates messages |
| Selecting Advertising Media | Today a more important element is selecting the right advertising media. Soaring media costs focus target marketing strategies and growing array of new media have increased importance of media playing. |
| choosing among media types | consider each’s impact, effectiveness, and cost |
| continuity | scheduling ADs evenly all year |
| Pulsing | Scheduling ADs unevenly. ex. tax companies |
| Public Relations | Used to promote products, people, places, ideas, activities, nations, and organizations |
| lobbying | building and maintaining relations with legislatures and government officials to influence legislation and regulation. (environmental groups, pro-gun) |
| The primary focus of the marketing concept is | The needs of the customer |
| Anything that can be offered to a market for attention, aquistition, use, or consumption that might satisfy a want or need is called a | Product |
| Taco Bell has found that the lifetime value of a Taco Bell customer is about $12,000. Studies have shown that the key to customer retention is | Offer superior customer value and satisfaction |
| The idea of efficiently meeting the needs of customers, better than the competition, for a profit is called | Business |
| The twofold goal of marketing is to attract new customers by promising superior value and | To keep and grow current customers by delivering satisfaction |
| If a company understands the marketing concept its first step will be to | Develop a product |
| Examples of pure tangible goods include all of the following EXCEPT | landscaping |
| All of the following examples are services EXCEPT | Computer software |
| Which of the following best describes the first stage of the new product development process | Idea screening |
| What can be characterized by these four distinct stages : introduction, growth, maturity and decline | Product life cycle |
| With respect to the product life cycle, what stage is a period of slow sales growth as the product is introduced in the market | Introduction stage |
| With respect to the product life, what can be defined as a period of rapid market acceptance and increasing profits | Growth stage |
| With respect to the product life cycle, what can defined as a period of slowdown in sales growth because the product has achieved acceptance by most potential buyer | Maturity stage |
| An example of demographic characteristics is | Gender |
| Your interests and value are indemnified by | All of the above |
| A company must always guard against dissatisfying customers. On average a satisfied customer tells 3 people about a good purchase experience. A dissatisfied customer however o average tells how many people about their experience | 11 |
| What can be defined as a form of product that consists of activities benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything | Service |
| Products purchased frequently immediately and with a minimum of comparison and buying efforts are called | Convenience products |
| products or services that are purchased as a result of an urgent need are | Emergency goods |
| The best example of a specialty product listed below is that of a | Luxury good, such as a Rolex watch |
| Consumer goods that the consumer does not know about or does not normally think about buying are called | Unsought products |
| a licensing agreement | Protects corporations and individuals from unauthorized copying |
| If Honda uses its company name to create such products as a lawn mower and motorcycle, it is practicing which of the following strategies | Brand extension strategy |
| Sears created the crafts man brand name for tools. This would be an example of which of the following branding options | Private brand |
| If mattel pays Walt Disney corporation for the right to use its Disney princess name on its line of games dolls and accessories then Mattel is using which type of policy | Licensing |
| If ford motor company and Eddie bait work together to design and sponsor a new sport utility vehicle then the companies are using which of the following brand sponsorship options | Co branding |
| I hat can be defined as a strategy of using a successful brand name to launch a new or modified product in a new category | Brand extension |
| The activities of designing and producing the container or wrapper for a product is | Packaging |
| The first federal act to control labels on packages was the | Federal trade commission act of 1914 |
| The number of items within the product line is identified as being the | Product line length |
| The goods producing industry is | Becoming more automated |
| The set of all product lines and items that a particular offers for sale is | Product mix |
| The last step in product development is | Product testing |
| The characteristic of service meaning that it cannot been seen tasted felt heard or smelled before being bought is called | Intangibility |
| Capitol equipment includes | Furniture |
| What is the process of dividing a market into smaller groups of buyers with donating needs characteristics or behaviors who might require separate products or marketing mixes | Market segmentation |
| When Campbell soup makes Cajun gumbo soup for Louisiana and Mississippi and nacho cheese soup for Texas and California it is practicing what type of segmentation | Geographic |
| What can be defined as the process of dividing a market into different groups based on social class lifestyle or personality characteristics | Psychographic segmentation |
| A set of buyers sharing common needs or characteristics that the company decides to serve is | Target market |
| Organized actions of groups of consumers seeking to increase their influence in business practice is | Social responsibility |
| Which took of the promotional mix is defined as any paid form of non personal and promotion of ideas goods and services | Advertising |
| Which took of the promotional mix consists of short term incentives to encourage the purchase or ska rod a product or service | Sales promotion |
| The personal presentation by the firms sales force for the purpose of making sales and building customer relationships is called | Personal selling |
| Which of the following promotional forms is often described as being too impersonal and only a one way communication form | Advertising |
| Which of the following promotional tools is thought to be the most expensive to use | Personal selling |
| The promotion tool that may include coupons contests premiums and other means of attracting consumer attention is best described as being which of the following | Sales promotion |
| The first step in developing an adversing program should be to | Set the advertising budget |
| Which of the following WOULD NOT be one of the primary advertising objectives as classified by primary purpose | To persuade |
| What is used heavily when introducing a new product category | Informative advertising |
| If Nike tries to convince consumers that it’s brand of sneakers is the best quality for the money it is using which of the following forms of advertising | Persuasive advertising |
| Keeping consumers thinking about the product is the objective for which type of advertising | Reminder advertising |
| After determining its advertising objectives a company next set its | Advertising budget |
| No matter how big the advertising budget advertising can succeed only if commercials | Gain attention and communicate well |
| In terms of execution styles which type of advertising makes no clam about the product except to suggest that the product is part of such feelings as love or beauty | Moood or imagery |
| In terms of executions styles a couple enjoying a picnic with the advertised product would be an example of which of the following types of advertising | Lifestyle |
| The measure of the percentage of people in the target market who were exposed to the ad campaign during a given period of time is called | Frequency |
| what combines sight sound and motion appeals to the senses and had a low cost per exposure | Television |
| A marketing services firm that sits companies in planning preparing implementing and evaluation all proportions of their advertising programs is call | Advertising agency |
| All of the following are considered to be consumer-promotion tools EXCEPT | push money |
| Which of the following consumer promotion tools is the most effective but most expensive way to introduce a new product | Free samples |
| If a retailer were to offer the consumer a two for one deal in purchasing merchandise which of the following sales promotional techniques would have been used | Coupons |
| Selling is most accurately described as being _____________ communication with respect to the relationship with consumers | Non personal |
| All of the following have been cited in the text as being characteristics of the successful salesperson except | Loners |
| The steps that the salesperson follows when selling is called the | Selling process |
| ___________ is the step in the selling process in which the salesperson meets and greets the buyer to get the relationship off to a good start | Approach |
| One of the hundred for the salesperson to handle well is the _________ stage | Closing |
| The last stage in the selling process in the ________ stage | Follow-up |
