Chapter 12: Advertising and Public Relations Study Guide

These flashcards cover key concepts, terms, and definitions from the Advertising and Public Relations lecture notes.

Advertising

Any paid form of presentation and promotion of products (goods, services, or information) by an identified sponsor.

4 Steps of an Advertising Campaign

1. Set objectives 2. Set a budget 3. Develop advertising strategy 4. Evaluate the campaign

Advertising Objectives

Informative advertising, persuasive advertising, and reminder advertising.

Informative Advertising

Used when introducing a new product category to build primary demand.

Persuasive Advertising

Communication used to motivate consumers to take action.

Reminder Advertising

Advertising used to remind consumers about an established brand's uses, characteristics, and benefits.

Advertising Budget

The dollars and resources allocated to a product or a company's advertising program.

Affordable Method

Budget based on what the company can afford; simple but often leads to underspending.

Percentage-of-Sales Method

Budget is a fixed percentage of sales; links promotion to sales but treats sales as the cause.

Comparative Parity Method

Match competitors' spending; an easy benchmark but assumes competitors know the 'right' amount.

Objective-and-Task Method

Define objectives, determine tasks, and estimate costs; most logical but hardest to calculate.

Madison & Vine

Blending advertising with entertainment (advertainment, branded entertainment).

Execution Style

The approach, style, tone, words, and format used for executing an advertising message.

Slice of Life

Shows one or more 'typical' people using the product in a normal setting.

Lifestyle Execution

Shows how a product fits in with a particular lifestyle.

Fantasy Execution

Creates a fantasy around the product or its use.

Mood or Image Execution

Builds a mood or image around the product or service, such as beauty or love.

Musical Execution

Shows people or cartoon characters singing about the product.

Personality Symbol Execution

Creates a character that represents the product.

Technical Expertise Execution

Shows the company's expertise in making the product.

Scientific Evidence Execution

Presents survey or scientific evidence that the brand is better than others.

Testimonial Evidence Execution

Features a highly believable or likeable source endorsing the product.

Advertising Media

Vehicles through which advertising messages are delivered to intended audiences.

Steps in advertising media selection

1. Determining reach, frequency, impact, and engagement 2. Choosing among major media types 3. Selecting specific media vehicles 4. Choosing media timing

Reach

Number or percentage of people exposed to the ad campaign during a given period.

Frequency

How many times the average person is exposed to the message.

Impact

The qualitative value of message exposure through a given medium.

Major Media Types

TV, digital, mobile, social media, newspapers, direct mail, magazines, radio, and outdoor

Engagement

The relevance of ad content for its audience.

CPM (Cost Per Mille)

Cost per 1,000 impressions.

CPC (Cost Per Click)

Cost paid each time a user clicks an ad.

CPA (Cost Per Action)

Cost paid when a user completes a desired action (purchase, signup).

Return on Advertising Investment (ROI)

Net return from advertising divided by advertising cost.

Day‑After Recall Test

Measures how much of the ad people remember the next day.

Warmth Monitor

Measures emotional response to an advertisement.

Total Sales

Baseline Sales + Incremental Sales from Ad.

Lift

Incremental sales divided by baseline sales.

Cost of Incremental Sales

Advertising Spending ÷ Incremental Sales

Public Relations (PR)

Activities that build good relations with a company's publics and manage its image.

Lobbying

Building relationships with government officials to influence legislation.

Product Publicity

Publicizing specific products.

Public Affairs

Building and managing national or local community relations.

Investor Relations

Maintaining communication with shareholders and financial stakeholders.

Development in PR

PR for nonprofits to gain donor or volunteer support.

Tools of Public Relations

Includes news, special events, written materials, audiovisual materials, and corporate identity materials.

News

occur naturally or create news opportunities

Special Events

Press conferences, brand tours

Written Materials

annual reports, brochures, articles, and company newsletters and magazines

Audiovisual Materials

DVDs and online videos

Corporate Identity Materials

logos, stationery, business cards, buildings, uniforms

Public Service Activities

orporate social responsibility (CSR), good-will activities

Press Release

A news-style communication tool that includes facts, quotes, and contact info.

Sales Promotion

Short-term incentives to encourage immediate purchase.

Samples

Trial amounts of a product that are the most effective but expensive type of promotion.

Coupons

Certificates offering savings on purchases.

Rebates

Refunds provided after purchase when proof is submitted.

Price Packs

Instant savings off the regular price through bundled offers.

Premiums

Free or low-cost goods offered as incentives.

Point-of-Purchase (POP) Promotions

Displays and demonstrations that take place at the point of sale.

Contests / Sweepstakes / Games

Opportunities for consumers to win something.

Event Marketing

Creating or sponsoring events to promote a brand.

Global Firm

A company operating in multiple countries to gain marketing, production, R&D, and financial advantages.

Standardized Global Marketing

Same marketing strategy and mix worldwide; cost-efficient.

Adapted Global Marketing

Adjusting strategy and mix for each market; higher cost but higher return.

Straight Extension

Selling the same product with the same communications in every global market.

Communication Adaptation

Keeping the same product, but changing marketing communications to fit local cultures.

Product Adaptation

Changing the product to meet local needs while keeping the same communications.

Dual Adaptation

Adapting both the product and communications for each international market.

Product Invention

Creating an entirely new product specifically for a foreign market.