FBLA Advertising Study Guide

Marketing Concepts

Marketing Concepts

Understanding and application of needs, wants, demands, value, satisfaction, and relationships relevant to marketing.

Marketing Functions

Various tasks including product development, market research, pricing, promotion, distribution, and sales.

The Marketing Mix (4 Ps)

Elements of Product, Price, Place, and Promotion strategically combined to satisfy target market needs.

Product Development Process

Stages include idea generation, screening, concept development, business analysis, product development, market testing, and commercialization.

Product Line Extension

Adding new products under an existing brand to attract different customer segments.

Packaging Functions

Protects products, provides information, facilitates transportation, and enhances appeal.

Branding

Creating a unique identity and emotional connection with consumers.

Product Positioning

Strategically placing a product in consumer minds based on features, benefits, price, and quality.

Advertising Terms

Key terms in advertising such as reach, frequency, and impressions.

Sales Process Steps

Includes generating leads, approaching customers, determining needs, presenting product, overcoming objections, closing sale, and following up.

Sales Promotion

Methods to influence consumer decisions and encourage purchases through discounts, coupons, and contests.

Traditional Media

Includes television, radio, print, direct mail, and outdoor advertising for reaching consumers.

Advertising Media Selection Criteria

Factors like reach, frequency, lead time, and cost that guide the choice of advertising media.

Alternative Advertising Media

Non-traditional outlets including transit, aerial, cinema, and product placement advertising.

Branding Importance

Integrates a business's success by creating a distinct image and building customer loyalty.

Economic Factors Affecting Advertising

Include consumer spending, inflation, and economic growth impacting advertising strategies.

Promotional Mix

A blend of advertising, sales promotion, public relations, personal selling, and direct marketing.

Advertising Advantages

Broad reach and controlled messaging, while disadvantages include high costs and skepticism.

Advertising Plan Components

Involves SWOT analysis, setting objectives, budget determination, creative strategy, execution, and evaluation.

Creative Formats in Advertising

Different types such as print ads, television commercials, radio spots, and digital ads.

Advertising Effectiveness Evaluation

Methods to assess impact on brand awareness, consumer attitudes, and sales.

Consumer-Oriented Advertising

Focuses on meeting the specific needs and preferences of target consumers.

Sponsorships

Linking brands with events or celebrities to enhance brand image and consumer perceptions.

Advertising Budgeting Strategies

Approaches like percentage of sales, competition matching, and objective-task methods.

Financial Reports

Include income statements, balance sheets, and cash flow statements for planning advertising.

Rate of Return on Advertising Investment (ROAI)

Measures profitability of advertising campaigns by comparing revenue generated to costs.

Consumer Wants and Needs

Understanding is crucial for developing products that resonate with target audiences.

Consumer Decision-Making Process

Includes need recognition, information search, evaluation, purchase decision, and post-purchase evaluation.

Consumer Purchase Classifications

Categories include convenience, shopping, specialty, and unsought goods representing different involvement levels.

Buying Motives

Emotional, rational, and social factors influencing consumer purchase decisions.

Target Market Definition

Specific group of consumers targeted with tailored advertising strategies.

Market Segmentation

Divide a market into smaller groups based on shared characteristics and preferences.

Demographics Importance

Statistical data about a population, guiding targeted marketing strategies.

Product Development Stages

Include idea generation, screening, concept testing, business analysis, product development, testing, and commercialization.

Product Life Cycle Stages

Phases include introduction, growth, maturity, and decline, each requiring different marketing strategies.

Pricing Objectives

Guide businesses in price-setting to maximize profits or increase market share.

Distribution Channels

Pathways for product movement from producers to consumers, including direct and indirect channels.

Supply Chain Management

Processes including procurement, order processing, warehousing, and risk management.

Logistics Definition

Planning and control of product movement and storage from origin to consumption.

Types of Promotion

Includes endorsements, word-of-mouth, and direct marketing for engaging consumers.

Marketing Research Process

Steps include problem identification, research design, data collection, analysis, and reporting.

Primary vs Secondary Research

Primary involves original data collection; secondary uses existing data for broader insight.

Consumer Sales Promotions

Includes tactics like coupons, discounts, and loyalty programs to incentivize purchases.

Advertising Communication Process

Involves sender, encoding, channel, receiver, decoding, noise, and feedback.

Four C’s of Communication

Comprehension, connection, credibility, and contagiousness for effective advertising messaging.

Self-Regulation in Advertising

Voluntary adherence to ethical standards set by industry groups.

Cross-Cultural Communication

Differences in verbal and nonverbal cues across cultures impacting message interpretation.

Ethics in Advertising

Involves honesty, transparency, and social responsibility in advertising practices.

Multicultural Market Advertising

Understanding cultural nuances and market characteristics for effective global marketing.