APR 241 Exam 1 Michael Little

marketing communication

various efforts and tools companies use to communicate with customers and prospects, including newspaper ads, event sponsorship, publicity, telemarketing, digital ads, and coupons

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

consumers

people who buy products and services for their own, or someone else's, personal use

public service announcement

an advertisement serving the public interest, often for a nonprofit organization, carried by the media at no charge

word of mouth

the passing of information, especially product recommendations in an informal, unpaid, person-to-person manner, rather than by advertising or other forms of traditional marketing

mass media

-print of broadcast media that reach very large audiences -include radio, tv, newspapers, magazines, and billboards

goods vs services

goods are tangible products such as suits, soap, etc, while services are bundles of benefits that may or may not be physical, that are temporary in nature, and that come from the completion of a task

product

the particular good or service a company sells

consumer packaged goods

Everyday-use consumer products packaged by manufacturers and sold through retail outlets. Generally these are goods such as food and beverages, health and beauty care, cleaning products, and detergents that get used up and have to be replaced frequently.

market segmentation

Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product's utility.

post Industrial Age

Period of cataclysmic change, starting in about 1980, when people first became truly aware of the sensitivity of the environment in which we live.

sales promotion

A direct inducement offering extra incentives all along the marketing route—from manufacturers through distribution channels to customers—to accelerate the movement of the product from the producer to the consumer.

marketing

an organizational function and a set of processes for creating, communication, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

marketing mix

four elements that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy

marketing strategy

the statement of how the company is going to accomplish its marketing objectives

advertising strategy

the advertising objective declares what the advertiser wants to achieve with respect to consumers awarenesss, attitude, and preference

principles of free market economics

-self interest

-complete information

-many buyers and sellers

-absence of externalities

externalities

benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction and didn't pay for the product

branding

A marketing function that identifies products and their source and differentiates them from all other products

preindustrial age

period of time between the beginning of written history and roughly the start of the nineteenth century, during which written advertising came on the rise

Industrial Age

The period of time from the mid-1700s through the end of WWII when manufacturers were principally concerned with production.

product differentiation

manufacturers portraying their brands as different from and better than similar competitive products through advertising, packaging, or physical product differences

unique selling proposition

The distinctive benefits that make a product different than any other. The reason marketers believe consumers will buy a product even though it may seem no different from many others just like it.

positioning

the association of a brands features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer

demarketing

term coined during the energy shortage of the 1970s and 1980s when advertising was used to slow the demand for products

primary demand

consumer demand for a whole product category

selective demand

consumer demand for the particular advantages of one brand over another

puffery

Exaggerated, subjective claims that can't be proven true or false such as "the best," "premier," or "the only way to fly."

ethical advertising

doing what the advertiser and the advertiser's peers believe is morally right in a given situation

commercial speech

speech that promotes a commercial transaction

privacy rights

of or pertaining to an individual's right to prohibit personal information from being divulged to the public

deceptive advertising

According to the FTC, any ad in which there is a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment.

unfair advertising

According to the FTC, advertising that causes a consumer to be "unjustifiably injured" or that violates public policy.

endorsements

the use of satisfied customers and celebrities to endorse a product in advertising

cease-and-desist

May be issued by the FTC if an advertiser won't sign a consent decree; prohibits further use of an ad.

exhibit 2-2 pg 30

advertising effects the media which effects the customers, than organizations, than individuals

added value

The increase in worth of a product or service as a result of a particular activity.

abundance principle

States that an economy produces more goods and services than can be consumed. In such an economy, advertising serves two important purposes: it keeps consumers informed of their alternatives, and it allows companies to compete more effectively for consumer dollars.

stereotypes

negative or limiting preconceived beliefs about a type of person or a group of people that do not take into account individual differences

Social Responsibility

acting in accordance with what society views as best for the welfare of people in general or for a specific community of people

children advertising review unit

the review and evaluation of child-directed advertising in all media

federal trade commission

Protects consumers' right to attain, use, and maintain credit by monitoring and enforcing credit laws

comparative advertising

advertising that claims superiority to competitors in some aspect

testimonials

the use of satisfied customers and celebrities to endorse a product in advertising

corrective advertising

may be required by the FTC for a period of time to explain and correct offending ads

intellectual property

Something produced by the mind, such as original works of authorship including literary, dramatic, musical, artistic, and certain other "intellectual" works, which may be legally protected by copyright, patent, or trademark.

trademark

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

better business bureau

A consumer organization that monitors complaints against businesses

consumer advocate

an individual or group that actively works to protect consumer rights, often by investigating advertising complaints received from the public and those that grow out of their own research

AAF (pg. 53)

American advertising federation, helped establish the FTC and were the forerunner of the BBB early on

patent

a grant made by the government that confers upon the creator of an invention the sole right to make, use, and sell that invention for a set period of time

copyright

An exclusive right granted by the federal government allowing the owner to reproduce and sell an artistic or published work.

ASRC (p. 51)

-advertising self regulatory concil

-promary purpose is to promote and enforce standards of truth, accuracy, test, morality, and social responsibility in advertising

AAAA (p 53)

American association of advertising agencies, controls agency practices and includes some of the largest advertising agencies in the US

advertisers

companies that sponsor advertising for themselves and their products

local advertising

advertising by businesses within a city or county directed toward customers within the same geographic area

product advertising

Advertising intended to promote goods and services; also a functional classification of advertising.

institutional advertising

A type of advertising that attempts to obtain favorable attention for the business as a whole, not for a specific product or service the store or business sells. The effects of institutional advertising are intended to be long term rather than short range.

integrated marketing communications (IMC)

the process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to make consecutive contact with the company/brand through a variety of media

centralized advertising department

a staff of employees, usually located at corporate headquarters, responsible for all the organizations advertising

local agencies

advertising agencies that specialize in creating advertising for local businesses

national agencies

advertising agencies that produce and place the quality of advertising suitable for national campaigns

full service advertising agency

An agency equipped to serve its clients in all areas of communication and promotion. Its advertising services include planning, creating, and producing advertisements as well as performing research and media selection services. Nonadvertising functions include producing sales promotion materials, publicity articles, annual reports, trade show exhibits, and sales training materials.

business-to-business agency

represents clients that market products to other businesses

account executives

the liaisons between the agency and the client

account planning

a hybrid discipline that bridges the gap between traditional research, account management, and creative direction whereby agency people represent the view of the consumer in order to better define and plan the client's advertising program

copy

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

art directors

along with graphic designers and production artists, individuals who determine how the ad's verbal and visual symbols will fit together

production department

the department in an advertising agency that is responsible for managing the steps that transform creative concepts into finished advertisements and collateral materials

sales promotion department

in larger agencies, a staff to produce dealer ads, window posters, point-of-purchase displays, and dealer sales material

group system

the organization of an ad agency into a number of little agencies or groups, each with the various people required to meet the needs of the particular clients being served by the group

markup

A source of agency income gained by adding some amount to a supplier's bill, usually 17.65 percent.

straight-fee (retainer) method

A method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula. Under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies by some factor.

advertising agencies

Independent organizations of creative people and businesspeople that specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers. The agencies also arrange for or contract for purchases of space and time in various media.

media

the plural form of medium, a channel of communication

advertising manager

The person who performs all the administrative, planning, budgeting, and coordinating functions. He or she may lay out ads, write ad copy, and select the media.

sale advertising

a type of retail advertising designed to stimulate the movement of particular merchandise or generally increase store traffic by placing the emphasis on special reduced prices

classified advertising

advertising traditionally found in print media, especially newspapers but also in some magazines and now increasingly online, that consists of messages posted by individuals and organizations to sell specific goods or services

regional advertisers

companies that operate in one part of the country and market exclusively to that region

national advertisers

companies that advertise in several geographic regions or throughout the country

decentralized system

The establishment of advertising departments by products or brands or in various divisions, subsidiaries, countries, regions, or other categories that suit the firm's needs, which operate with a major degree of independence.

regional agencies

advertising that focuses on the production and placement of advertising suitable for regional campaigns

international agencies

advertising agencies that have offices or affiliates in major communication centers around the world and can help their clients market internationally or globally

general consumer agency

an agency that represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly by consumers

creative boutiques

Organizations of creative specialists (such as art directors, designers, and copywriters) that work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages, and specialized art. A boutique performs only the creative work.

media buying service

An organization that specializes in purchasing and packaging radio and television time.

interactive agency

an advertising agency that specializes in the creation of ads for a digital medium

management (account) supervisors

managers who supervise account executives and who report to the agency's director of account services

media planning

the strategic identification and selection of media vehicles for a client's advertising messages

copywriters

people who create the words and concepts for ads and commercials

creative director

head of a creative team of agency copywriters and artists who is assigned to a client's business and who is ultimately responsible for the creative product- the form the final ad takes

traffic department

the department in an advertising agency that coordinates all cases of production and makes sure everything is completed before the deadline

departmental system

The organization of an ad agency into departments based on function: account services, creative services, marketing services, and administration.

media commission

compensation paid by a medium to recognized advertising agencies, traditionally 15% for advertising placed with it

fee commission combination

a pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned

incentive system

A form of compensation in which the agency shares in the client's success when a campaign attains specific, agreed-upon goals.

in-house agency

Agency wholly owned by an advertiser and set up and staffed to do all the work of an independent full-service agency.

the client agency relationship

new clients come from personal contact with top management, referrals from satisfied clients and advertising consultants

suppliers

people and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production

web design houses

Art/computer studios that employ specialists who understand the intricacies of HTML and Java programming languages and can design ads and Internet Web pages that are both effective and cost efficient.