Chapter 16 advertising public relations and sales promotion

advertising response function

a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns

institutional advertising

a form of advertising designed to enhance a company's image rather than promote a particular product

product advertising

a form of advertising that touts the benefits of a specific good or service

advocacy advertising

a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks

pioneering advertising

a form of advertising designed to stimulate primary demand for a new product or product category

competitive advertising

a form of advertising designed to influence demand for a specific brand

comparative advertising

a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes

Advertising campaign

a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

advertising objective

a specific communication task that a campaign should accomplish for a specified target audience during a specified period

advertising appeal

a reason for a person to buy a product

unique selling proposition

a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign

medium

the channel used to convey a message to a target market

media planning

the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience

cooperative advertising

an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand

informercial

a thirty-minute or longer advertisement that looks more like a television talk show than a sales pitch

advergaming

placing advertising messages in Web-based or video games to advertise or promote a product, service, organization, or issue

media mix

the combination of media to be used for a promotional campaign

cost per contact (cost per thousand or CPM)

the cost of reaching one member of the target market

cost per click

the cost associated with a consumer clicking on a display or banner ad

reach

the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks

frequency

the number of times an individuals is exposed to a given message during a specific period

audience selectivity

the ability of an advertising medium to reach a precisely defined market

media schedule

designation of the media, the specific publications or programs, and the insertion dates of advertising

continuous media schedule

a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times

pulsing media schedule

a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods

seasonal media schedule

a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used

public relations

the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance

publicity

an effort to capture media attention, often initiated through press releases that further a corporation's public relations plans

product placement

a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the internet; or at special events

sponsorship

a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image

crisis management

a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event

sales promotion

the marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value

trade sales promotion

promotion activities directed to members of the marketing channel, such as wholesalers and retailers

consumer sales promotion

promotion activities targeted to the ultimate consumer market

trade allowance

a price reduction offered by manufacturers to intermediaries such as wholesalers and retailers

push money

money offered to channel intermediaries to encourage them to "push" products -- that is, to encourage other members of the channel to sell the products

coupon

a certificate that entitles consumers to an immediate price reduction when the product is purchased.

rebate

a cash refund given for the purchase of a product during a specific period

premium

an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product

loyalty marketing program

a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers

frequent buyer program

a loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service

sampling

a promotional program that allows the consumer the opportunity to try a product or service for free

point of purchase (P-O-P) display

a promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying