Advertising, Sales Promotion, and Public Relations

Vocabulary terms and definitions covering advertising types, media selection metrics, scheduling, testing, and sales promotion tools from Chapter 16.

Advertising

Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

Product Advertisements

Advertisements that focus on selling a product or service and take three forms: pioneering (or informational), competitive (or persuasive), and reminder.

Pioneering (Informational) Product Advertisements

Advertisements that tell people what a product is, what it can do, and where it can be found; used to inform the target market.

Competitive (Persuasive) Product Advertisements

Advertisements that promote a specific brand's features and benefits to persuade the target market to select that brand over others.

Reminder Product Advertisements

Advertisements used to reinforce previous knowledge of a product and assure current users they made the right choice.

Institutional Advertisements

Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service.

Advocacy Institutional Advertisements

A form of institutional advertising that states the company’s position on a specific issue.

Pioneering Institutional Advertisements

A form of institutional advertising used for announcements about what a company is, what it can do, or where it is located.

Competitive Institutional Advertisements

A form of institutional advertising that promotes the advantages of one product class over another and is used in markets where different product classes compete for the same buyers.

Reminder Institutional Advertisements

A form of institutional advertising that simply brings the company’s name to the attention of the target market again.

Reach

The number of different households or individuals exposed to an advertisement.

Rating

The percentage of households in a market that are tuned to a particular television show or radio station.

Frequency

The average number of times a person in the target audience is exposed to a message or advertisement.

Gross Rating Points (GRPs)

A reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency; $GRP = ext{Reach} imes ext{Frequency}$.

Cost per Thousand (CPM)

The cost of reaching 1,000 individuals or households with the advertising message in a given medium.

Infomercials

Program-length (30-minute) advertisements that take an educational approach to communication with potential customers.

Click Fraud

A deceptive practice in online advertising where individuals or software programs click on ads to increase costs for advertisers; accounts for approximately 20 percent of clicks.

Continuous (Steady) Schedule

An advertising schedule where advertisements run at a steady rate throughout the year because seasonal factors are not important.

Flighting (Intermittent) Schedule

An advertising schedule where periods of advertising are scheduled between periods of no advertising to reflect seasonal demand.

Pulse (Burst) Schedule

An advertising schedule that combines flighting and continuous schedules because of increases in demand, heavy periods of promotion, or the introduction of a new product.

Pretests

Tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions.

Posttests

Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.

Aided Recall

A posttest method that shows a specific ad to respondents and asks them if their previous exposure to it was noted, associated with the brand, or if they read at least 50 percent of the ad.

Consumer-Oriented Sales Promotions

Sales tools used to support a company’s advertising and personal selling directed to ultimate consumers, such as coupons, deals, premiums, contests, and sweepstakes.

Product Placement

A consumer sales promotion tool that uses a brand name product in a movie, television show, video game, or a commercial for another product.

Trade-Oriented Sales Promotions

Sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers.

Cooperative Advertising

Advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.

Publicity Tools

Methods of obtaining nonpersonal presentations of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements (PSAs).