APRD 1003 Ch. 1-6 Ad Exam

IMC (integrated marketing communications)

coordination and integration of messages from a variety of sources

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.

Target audience

groups of people who are attractive to the advertiser

Consumers

people who buy products for their personal use

Medium

a communication vehicle (platform) that transfers a message from the sender to receiver

Word of mouth (WOM) advertising

passing of information (especially product reccomendations) in an informal, unpaid, person to person manner

Mass media

print or broadcast media that reach very large audiences (radio, tv, newspapers, magazines, billboards)

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exhanging offerings that have value for customers, clients, partners, and society

4 Ps of the marketing mix

product, price, place, promotion

Marketing strategy

Helps determine who the targets of advertising should be and what goals advertising should accomplish

Advertising strategy

refines the target audience, message, and intended response

Externalities

benefit or harm caused by the sale or consumption of products to people who are not involved (ex: smoking taxes)

Taxation and regulation

used to compensate for or eliminate the externalities

Branding

Something that identifies, distinguishes, and differentiates a brand (ex: Coca Cola bottle)

Selective demand

consumer demand for the particular advantages of one brand over another

The abundance principle

In an economy that produces more goods than can be consumed, advertising is essential (informs consumers of their alternatives and allows consumers and producers to compete more effectively)

Role of consumer advocate groups

Fights against fraud, false advertising, and unfair business practices

Puffery

Exaggerated, subjective claims in ads that cannot be proven true or false (ex: "the best hamburger" or "the most comfortable shoe")

Unfair advertising

claims made without prior substantiation, exploit vulnerable groups such as children and older adults; consumer cannot make a valid choice because the advertiser fails to convey important information about the product

Deceptive advertising

any ad that contains a misrepresentation, omission, or any other practice that is likely to mislead reasonable consumers to their detriment

Corrective advertising

required by the FTC for some period of time to explain and correct offending ads

Pro bono advertising

free ads to support charitable causes or nonprofit organizations

Comparative advertising

claims superiority to competitors in some aspect

Consent decree

A document the advertiser signs agreeing to stop the objectionable advertising without admitting any wrongdoing

FCC

-Federal Communications Commission

-Has the authority to license broadcasters or take away their licenses

-Can restrict products advertised and the content of ads

-Regulates what content is acceptable in broadcast media

FTC

-Federal Trade Commission

-Major regulator of advertising

-Regulates the marketplace by eliminating deceptive or unfair acts or practices

-Their responsibility to maintain the existence of many sellers in the marketplace, to provide more complete information to sellers, and to keep marketing activities as free of externalities as possible

BBB

-The Better Business Bureau

-Protects consumers against fraudulent and deceptive advertising and sales practicing

Office of Consumer Affairs

Protects consumers from unfair, deceptive, or abusive business practices by collecting complaints, conducting investigations, enforcing laws, and educating the public

Advertising Self-Regulatory Council

Promotes and enforces standards of truth, accuracy, taste, morality, and social responsibility in advertising

Local advertising

-Local businesses targeting customers in their geographic area

-Most consumer sales are made or lost locally

-Local advertising is important because it's where the relationships are developed

4 types of local advertising

1. dealers or local franchises of national companies (Honda, McDonalds)

2. stores that sell a variety of branded merchandise (grocery, convenience, department stores)

3. Specialty businesses and services (banks, restaurants, music stores, remodeling contractors, florists, hair salons, attorneys, accountants)

4. Governmental and nonprofit organizations (municipalities, utility companies, charities, arts organizations, political candidates)

National advertising

-sell in several regions or throughout the country

Ex: consumer packaged goods manufacturers, national airlines, media and entertainment companies, digital giants (Apple, Amazon), restaurant chains (McDonald's)

Creative director

head of a creative team of agency copywriters and artists who is assigned to a business and responsible for the creative product of the ad

Copywriter

create the words that make up the headlines and messages for ads and commercials

Art director

determine how the ad's verbal and visual symbols will fit together

Account planner

uses research to bridge the gap between account management and creatives; defends the consumer's point of view and the creative strategy in the debate between the agency's creative team and the client

Account manager

maintains relationship with clients, develop marketing strategies, oversee campaign planning and execution, manage budgets, track performance

Media planner/buyer

identify and select media vehicles for a client's advertising message

Media channels available to advertisers

Print (newspapers, magazines), broadcast (tv, radio), out-of-home (billboards), social media, direct mail

Strategy

overarching, long-term plan that defines overall goals such as increasing brand awareness in a new market

Tactics

specific, actionable steps taken to execute the strategy

Primary target market

Main customer focus

Secondary target market

smaller, growth-oriented group that shows potential to buy

Brand equity

-The totality of what consumers, distributors, dealers, and competitors feel and think about a brand over an extended period of time

-Brings customer loyalty, price inelasticity, and long-term profits

Demographic segmentation

defines groups by their gender, age, ethnicity, education, occupation, income, and other quantifiable factors

Psychographic segmentation

groups people by their values, attitudes, personality, and lifestyle (appeals to emotions)

Physiological screens

-Comprise the 5 senses (sight, hearing, taste, touch, smell)

-Detect incoming data and measure the dimension and intensity of the stimuli

-Ads are screened out when the viewer can't interpret it and perception does not occur (ex: blind or deaf person)

Source

the advertiser

-Formulates an idea, encodes it in a message, and sends it via some channel to the receiver

Message

the idea formulated and encoded by the source and sent to the receiver

Channel

the means by which the encoded message is sent to the receiver

Receiver

the consumer who receives the advertiser's message

Semiotics

study of how humans use words, gestures, signs, and symbols to convey thoughts, feelings, ideas, and ideologies

Noise

competing commercial and noncommercial messages

Feedback

the consumer's response to an advertisement (ex: redeemed coupons, phone inquiries, visits to a store, requests for more information, increased sales, responses to a survey, email inquires, clicks on a search ad)

Perception

the way people receive and interpret information through the five senses (a stimulus)

Beliefs

assumptions customers hold about a brand, product, or category

Knowledge

the information and familiarity consumers have about products, services, or brands. This can be factual (objective) or experiential (subjective).

Classes

Social or economic groupings of consumers based on income, education, occupation, or lifestyle.

Culture

set of meanings, beliefs, attitudes, and ways of doing things that are shared by some homogenous social group and handed down from generation to generation

Primary data

information an agency collects for itself or hires a research firm to collect, expensive and time consuming

Secondary data

information previously collected or published usually for some other purpose, readily available, quick and less expensive

Primary research

customized or tailored to the marketer's specific objectives

Qualitative research

enables researchers to gain insight into both the population whose opinion will be sampled and the subjective matter itself

-Focus groups and in-depth interviews

Quantitative research

research that collects and reports data primarily in numbers

-Surveys and randomly drawn samples

-Observation method: researchers monitor people's actions

-Experimental method: test group vs. control group

Secondary research

helps learn more about the market, competition, business environment, and to better define the problem

Role of account planner (strategist)

Responsible for strategy

-"Voice of the consumer"

-Focused developing creative that nurtures a relationship between consumer and brand

-Getting into peoples heads to figure out what they currently think and understand how to best influence them

Pretesting

advertisers test prototypes of their ads before they are in mass media (ex: direct questioning, focus groups, portfolio test, mock magazine tests, central location tests, clutter tests)

Post-testing

tests finished ads under actual marketing conditions (attitude and inquiry tests)

Attitude tests

direct questions, semantic differential tests, or unstructured questions measure changes in respondent's attitudes after a campaign

Inquiry tests

additional product information, product samples, or premiums are given to viewers of an ad; ads generating most responses are most effective

Cognitive theory of advertising

-Views ads as information that consumers actively process, store, and use to form attitudes and make purchase decisions

-Stems from an awareness of needing something

Nonpersonal influences on consumer purchase decisions

time, place, environment

Interpersonal influences on consumer purchase decisions

family, society, cultural environment

Marketing research

systematic gathering, recording, and analysis of information to help managers make marketing decisions

-Identifies consumer needs and market segments

-Helps develop new products

-Helps devise marketing strategies

Advertising research

gathering and analysis of information to facilitate the development or evaluation of advertising strategies, ads and commercials, and media campaigns