Exam 3: Chapter 19 Advertising, Sales Promotion, and PR

Product Advertising

focused on selling a product or service takes 3 forms

• pioneering (informational)

• competitive (persuasive)

• reminder

Institutional Advertisements

used to build goodwill or an image for an organization rather than promote a specific product or service

Message Content

actual information or ideas being communicated

Message Creativity

determined by originality and appropriateness of the message used to inform and persuade with visual and auditory presentation

• critical for effective advertisement

Message Appeals

provides a reason for the consumer to act

• Fear Appeals: suggests the consumer can avoid some negative experience through the purchase and use of a product or service, a change in behavior, or a reduction in the use of a product

• Sex Appeals: suggest to the audience the product will increase the attractiveness of the user

• Humorous Appeals: imply either directly or subtly that the product is more fun or exciting than competitors offerings

Reach

the number of different people or households exposed to an advertisement

Frequency

average number of times a person in the target audience is exposed to a message or an advertisement

Gross Rating Points (GRPs)

reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency

Cost per Thousand (CPM)

cost of reaching 1,000 individuals or households with the advertising message in a given medium (M is roman numeral for 1,000)

Media Alternatives Pros and Cons

Infomercials

program length (30 minute) advertisement that take an educational approach to communication with potential customers

Rich Media

interactive ads that have drop-down menus, built-in games, or search engines to engage viewers

Mobile Marketing

the broad set of interactive messaging options that enable organizations to communicate and engage with consumers through any mobile device

Buyer Turnover

how often new buyers enter the market to buy the product

• higher the better

Purchase Frequency

the more frequently the product is purchased, the less repetition is required

Forgetting Rate

the speed at which the buyers forget the brand if advertising is not seen

Pretests

tests conducted before an advertisement is place in any medium to determine whether it communicated the intended message or to select among alternative versions of the advertisement

Full-Service Agency

advertising agency that provides the most complete range of services

• including marketing research, media selection, copy development, artwork, and production

Limited-Service Agency

advertising agency that specializes in one aspect of the advertising process

• such as providing creative services to develop advertising copy, buying previously unpurchased media space, or providing internet servers

In-House Agency

consists of the company’s own advertising staff, who may provide full services or limited range of services

Posttests

tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose

Consumer-Oriented Sales Promotions

sales tools used to support a company’s advertising and personal selling directed to ultimate consumer’

Sales Promotion Pros and Cons

Trade-Oriented Sales Promotions

sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers

Publicity Tools

methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost

• such as news releases news conferences, and public service announcements

News Release

an announcement regarding changes in the company or the product line

• objective is to inform a newspaper, radio station, or other medium of an idea for a story

News Conference

representatives of media are all invited to an informational meeting and advance materials regarding the content are sent

• often used when new products are introduced or significant changes in corporate structure and leadership are being made

Public Service Announcements (PSAs)

free space or time donated by media