ADV Test 1

Advertising

A paid mediated form of communication from an identifiable source designed to persuade the receiver to take some action now or in the future

Marketing Mix

elements that are added, subtracted, or modified by a company to create a desired marketing strategy. Also known as the 4Ps

Externalities

benefits or harms caused by the sale or consumption of products to people who are not involved in the transaction

Product differentiation

The portraying of one brand as different from and better than the competition by offering consumers quality, variety, and convivence

Narrowcasting

Delivering programming to a specific group defined by demographics and/or program content; often used to describe cable works

Puffery

exaggerated subjective claims that cannot be proven true or false in advertising

Advertising serves two purposes

Inform consumers of their alternatives; allow companies to compete more effectively, resulting in more and better products

Subliminal Advertising

Advertisements with messages supposedly embedded in illustrations below the threshold of perception

Consent Decree

A document signed by advertisers without admitting any wrongdoing, in which they agree to stop objectionable adv.

Copyright

protects an original work from being plagiarized, sold, or used by another without the individual’s express consent

Cooperative advertising

Sharing of advertising costs by the manufacturer and the distributor of retailer, with the manufacturer repaying part of the dealer’s advertising costs based on sales

Advertising Agency

Independent organization of creative people and businesspeople that specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers

Account executive

Liaison between the agency and the client, responsible for managing services for the benefit of the client and representing the agency’s pov of the client

Media Planning

Identifies and selects media vehicles for a client’s adv messages

Copy

words that make up the headline and message of an advertisement or commercials

Product life cycle

progressive stages in the life of a product including introduction, growth, maturity, and decline

Target market

group within the market segment toward which all marketing activities will be directed

Consumers

people who buy the product for their own or someone else’s personal use

Exchange

trading one thing for another thing of value

Values and Lifestyles (VALS) classification system

groups consumers based on two dimensions; primary motivation and resources

Six core components of advertising

Communication, persuasive, mediated, paid for by sponsors, identifies sponsor, target audiences

Advertisements are only considered deceptive when?

factually false or convey a false impression

Federal Trade Commission (FTC)

Corrective advertising is required by a federal government agency for a period of time to explain and correct offending ads

Federal Communications Commission (FCC)

Independent federal government agency that has jurisdiction over radio, television, telephone, satellite, cable tv, and the internet

Trademark

word, name, symbol, device, or any combination adopted and used by manufacturers or merchants to identify and distinguish their goods from those manufactured or sold by others

What is an in-house agency

owned by an advertiser where all advertising tasks are performed

Benefits and Limitations of in-house agency

cost effective, greater control, faster turnaround. less creative, possible loss of objectivity

Four types of advertising agencies

Local, national, regional, international

Five types of functional utility

Place, time, form, possession, task

Market segmentations

Demographic, geographic, behavioral, psychographic

What is positive vs. negative framing?

Positive framing: emphasizes benefits or gains

Negative framing: emphasizes losses or negative outcomes