Advertising and Marketing Principles Review

Comprehensive vocabulary flashcards covering the AIDA model, budgeting methods, institutional vs. product advertising, advertising appeals, campaign execution (IMC, brands as publishers), and sales promotion strategies.

AIDA Model

An advertising framework emphasizing the progression of consumers through four sequential stages: Attention, Interest, Desire, and Action.

Attention (AIDA)

The initial stage of the AIDA model that focuses on establishing visibility and capturing consumer focus in a cluttered digital environment.

Desire (AIDA)

The stage of the AIDA model designed to build an emotional connection and generate consumer motivation.

Action (AIDA)

The culminating stage of the AIDA model that motivates the consumer to complete a final purchase or sign up.

Comparative / Attack Appeal

An aggressive call-out advertising style used to seize attention in cluttered spaces, which risks legal backlash, reputational harm to both the attacker and target, and erosion of trust across the entire product category.

Defending Ad Budgets

The requirement for Chief Marketing Officers (CMOs) to demonstrate return on investment by directly linking every dollar of advertising expenditure to measurable business results.

Percentage-of-Sales Method

A standard advertising budgeting approach aligned with core marketing theory where spending is determined relative to sales revenue.

External Economic Factors in Budgeting

Macroeconomic influences—such as recessions and low consumer confidence (highlighted in Magna's 2025 forecast)—that drive brands to adopt leaner budgets and reallocate spending toward proven channels.

Institutional Advertising

An advertising approach aimed at cultivating long-term trust, credibility, and corporate image rather than promoting specific product lines or generating immediate short-term sales.

Product Advertising

Promotional communications focused specifically on highlighting the features, attributes, and direct sales of a single item or product line.

"Shape the Future with Confidence"

An institutional corporate reputation campaign launched by EY to rebuild and unify its corporate brand image following internal turmoil.

Proactive Reputation Management

A strategic focus on consistent corporate messaging, credibility, and trust preservation to protect a brand from reputational damage.

Media Context and Placement

The environment where an ad appears; research demonstrates that ad recall and memorability peak in less-cluttered media environments compared to crowded digital spaces.

Category Reputation Damage

A systemic risk of negative and attack advertising where aggressive disparagement reduces overall consumer trust and demand across the entire market sector.

Social-First Co-Creation

The practice of treating digital communities as collaborative co-creators rather than passive audience targets to build authenticity and cultural relevance.

"Brands as Publishers"

A modern marketing strategy where corporations function like media organizations by directly creating, sequencing, and distributing their own content.

Pre-Launch Teasers

Promotional content released during the awareness building stage of an ad campaign to generate preliminary consumer interest.

Integrated Marketing Communications (IMC)

A strategic management model centered on coordinating all communication platforms to deliver unified and consistent brand messaging.

Risks of Excessive Promotions

The negative consequences of overusing discounts and coupons, which creates short-term volume spikes at the cost of long-term brand equity, degrades perceived quality, and conditions customers to wait for price cuts.

Peloton's Marketing Strategy

A marketing adjustment involving the reduction of ongoing price discounts and total ad spend to protect long-term brand equity, reduce customer acquisition costs, and enhance company profitability.