mktg 524 final V5

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.

infomercial

A 30-minute or longer advertisement that looks more like a television talk show than a sales pitch.

advergaming

Placing advertising messages in Web-based, mobile, console, or handheld 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 (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 individual 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 advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle.

flighted 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 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 various media.

sponsorship

A public relations strategy in which a company spends money to support an issue, cause, or event consistent with corporate objectives.

crisis management

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

sales promotion

Marketing communication activities other than advertising, personal selling, and public relations that motivate consumers or members of the distribution channel to purchase a good or service immediately.

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.

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.

Advertisement

Nonpersonal paid form of communication.

Product Advertising

Advertising aimed at promoting a specific product.

Pioneering/Informational Product Ad

First stage of PLC that explains what a product is, what it does, and where it can be found.

Competitive/Persuasive Ad

Second stage of PLC that highlights benefits of a company's product over competitors.

Reminder Ad

Advertisements that discuss past positive customer experiences.

Institutional Advertising

Advertising that promotes a company rather than its products.

Advocacy Institutional Ad

Ads where a company takes a stand on a specific issue.

Pioneering Institutional Ad

Ad that explains what a company can do for its customers and its location.

Competitive Institutional Ad

Advertising that communicates benefits of a product class over others.

Reminder Institutional Ad

Advertisements that remind customers of past experiences.

Advertising Process

Three steps: Developing, Executing, and Evaluating.

Identification of Target Audience

Determining who the advertisement is aimed at.

Ad Objective

The intended goal of the advertisement.

Advertising Budget

The amount allocated for the advertisement.

Ad Design

Includes information, persuasion, and a combination of both appeals.

Human Appeal

Advertising that connects on an emotional level with the audience.

Fear Appeal

Using fear to persuade consumers to take action.

Ad Scheduling

Determining the right times to show the advertisement.

Reach

The number of people exposed to the ad.

Rating

The number of households watching a particular show or series.

Gross Rating Points (GRPs)

Calculation that multiplies reach by frequency of exposure.

Cost Per Thousand (CPM)

The cost to reach one thousand people.

Pretesting Advertising

Evaluating ads before they are launched.

Portfolio Pretesting

Group comments on several ads to gauge reactions.

Jury Pretesting

Ads shown to experts for feedback before general release.

Theatre Pretesting

Ads shown to customers in a theatre setting followed by surveys.

Post Testing Advertising

Evaluating the effectiveness of an ad after it has been shown.

Aided Recall

Customers recall products shown after the ad is presented.

Unaided Recall

Customers attempt to recall products without prompts.

Attitude Testing

Gathering feedback on the ad from viewers.

Sales Promotion

Short-term promotions and discounts to boost sales.

Sales Growth from Promotions

US companies spend 100 billion dollars annually on sales promotions.

Supply Chain

The connected chain of all business entities, both internal and external, that perform or support the logistics function.

Supply Chain Management

A system that coordinates and integrates all activities performed by supply chain members into a seamless process, enhancing customer and economic value.

Supply Chain Agility

An operational strategy focused on creating inventory velocity and operational flexibility simultaneously in the supply chain.

Supply Chain Orientation

A system of management practices consistent with a 'systems thinking' approach.

Supply Chain Integration

When multiple firms or business functions coordinate their activities and processes to satisfy the customer seamlessly.

Demand-Supply Integration (DSI)

A supply chain operational philosophy focused on integrating supply-management and demand-generating functions.

Business Processes

Bundles of interconnected activities that stretch across firms in the supply chain.

Customer Relationship Management (CRM)

A process that prioritizes marketing focus on different customer groups according to their long-term value.

Customer Service Management

A process that presents a unified response system to customers' complaints, concerns, and questions.

Demand Management

A process that aligns supply and demand by anticipating customer requirements and creating related plans.

Order Fulfillment

A highly integrated process requiring collaboration from multiple companies to satisfy customer needs.

Order Cycle Time

The time delay between placement of a customer's order and the receipt of that order.

Manufacturing Flow Management

A process ensuring that firms have the resources to manufacture and move products flexibly through production.

Supplier Relationship Management

A process that supports manufacturing flow by maintaining relationships with valued suppliers.

Product Development and Commercialization

Activities facilitating joint development and marketing of new offerings among supply chain partners.

Returns Management

A process that enables firms to manage returned products efficiently while maximizing value.

Sustainable Supply Chain Management

A philosophy that optimizes social and environmental costs in addition to financial costs.

Outsourcing

Use of an independent third party to manage an entire function of a logistics system.

Third-Party Logistics Company (3PL)

A firm that provides functional logistics services to others.

Fourth-Party Logistics Company (4PL)

A consulting-based organization providing integrated logistical solutions.

Offshoring

The outsourcing of a business process from one country to another for economic advantage.

Nearshoring

The transfer of offshored activity from a distant to a nearby country.

Public-Private Partnerships (PPPs)

Collaborative agreements to address large-scale problems for both company and societal interests.

Electronic Distribution

A technique involving any product or service that can be distributed electronically.