MAR4323 Advertising Quiz 1

What are the two main topics of Chapter 1?

Advertising and Integrated Brand Promotion (IBP).

What is advertising?

A paid, mass-mediated attempt to persuade.

What are the 3 essential characteristics of advertising?

Paid + Mass-mediated + Attempting to persuade.
P-M-P = Paid → Mass → Persuade

What does "paid" mean in advertising?

The communication is paid for by a client or sponsor. If it isn't paid for, it isn't advertising.

What is a client or sponsor?

The company or organization that pays for advertising.

What does "mass-mediated" mean?

Delivering a message through a medium designed to reach a large number of people.

What does "attempting to persuade" mean?

Communication designed to get someone to do something.

What is an advertisement?

A specific message an organization creates to persuade an audience.

What is an advertising campaign?

A series of coordinated advertisements that communicate a reasonably cohesive and integrated theme about a brand.
Advertisement = ONE message
Campaign = MANY coordinated messages

What is Integrated Brand Promotion (IBP)?

A process of using a wide range of promotional tools working together to create widespread brand exposure.

What is the main idea behind IBP?

Different promotional activities are coordinated to reinforce one another with the brand.

What does IBP combine?

Traditional advertising + new media + other promotional tools.

Does digital/new media replace traditional advertising?

No. Brands should blend traditional and new media; digital is not a pure replacement

What is the purpose of advertising and IBP, even with new media?

Communicating effectively about the brand.

What are examples of IBP tools?

Advertising, sales promotions, point-of-purchase materials, direct marketing, personal selling, internet advertising, event sponsorship/experiential marketing, social media, blogs, podcasts, branded entertainment, outdoor advertising, PR, influencer marketing, and corporate advertising.

What are examples of traditional IBP tools?

Mass-media advertising, sales promotions, point-of-purchase materials, direct marketing, personal selling, outdoor advertising, and public relations.

What are examples of newer/digital IBP tools?

Internet advertising, social media, blogs, podcasting, smartphone messaging, branded entertainment, and influencer marketing.

What is mobile marketing?

Communicating with target markets through mobile devices, such as smartphones or tablets.

What is mass-mediated communication?

Communication that occurs not face-to-face but through a medium.

What are the three components/phases of the mass-mediated communication process?

Production → Accommodation & negotiation → Reception.
Memory hack: P-A-R
Produce → Adjust/Negotiate → Receive

What is production in the communication process?

The creation of a message by the sender.

What occurs between production and reception?

Accommodation and negotiation.

What is reception?

The receiving/interpreting of the message by the audience.

What is an audience?

A group of individuals who receive and interpret messages sent from companies or organizations.

What is a target audience?

The particular group of consumers singled out by an organization for an advertising or IBP campaign.

Why is a target audience considered a "potential audience"?

Because it cannot be assured that the message was received as intended.

What are the major audience categories?

• Household consumers

• Members of business organizations

• Members of a trade channel

• Professionals

• Government officials and employees

What is global advertising?

Advertising used worldwide with only minor changes in visual and message content.

What is international advertising?

Firms prepare and place different advertising in different national markets for the same brand outside their home market.

What is national advertising?

Advertising that reaches all geographic areas of a single nation.

What is regional advertising?

Advertising focused on a relatively large geographic region, but not on a national scale.

What is local advertising?

Advertising directed at an audience in a single trading area.

What is cooperative advertising?

Sharing advertising expenses between national companies and local merchants.

Geography Memory Hack

Global → International → National → Regional → Local

As you move down, the geographic area generally gets smaller/more specific.

What are the important business aspects of advertising?

Advertising contributes to:

1. The marketing mix

2. Developing and managing the brand

3. Market segmentation, differentiation, and positioning

4. Revenue and profit generation

5. Being measurable

What is marketing?

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services.

What are the 4 parts of the marketing mix?

Product, Price, Promotion, Distribution.

Which part of the marketing mix includes advertising?

Promotion.

How does advertising contribute to brand management?

Through information and persuasion, introducing new brands/extensions, building and maintaining brand loyalty, and creating brand image and meaning.

What is a brand extension?

An adaptation of an existing brand to a new product area.

What is another term for brand extension?

Brand variant.

What is brand loyalty?

Consumers repeatedly purchase the same brand to the exclusion of competitors' brands.

What is brand equity?

The set of brand assets linked to a brand, its name, and symbol.

What can advertising create for a brand besides awareness?

Image and meaning.

What is market segmentation?

The process of breaking down a large, heterogeneous market into submarkets that are homogeneous in terms of consumer characteristics.

How does advertising help with segmentation?

It develops messages that appeal to the needs and desires of different segments and transmits those messages through appropriate media.

What is differentiation?

The process of creating a perceived difference between a brand and its competition.

What is differentiation based on?

Consumer perception.

How can advertising help differentiate a brand?

By emphasizing performance features, creating a distinctive image, and developing a message that is different and unmistakably linked to the brand.

What is positioning?

Designing a brand to occupy a distinct and valued place in the target consumer's mind.

What is an external position?

The niche the brand will pursue relative to all competing brands.

What is an internal position?

The position achieved relative to other similar brands marketed by the same firm.

What is repositioning?

Updating a brand to address changing market conditions.

Does advertising generate revenue directly?

No. Advertising contributes to the process of creating sales and revenue.

How does advertising create pricing flexibility?

By contributing to economies of scale and helping create inelasticity of demand to price changes.

What are economies of scale?

Cost advantages that can occur as production/sales scale increases.

What does inelasticity of demand mean in this context?

Consumers are less responsive to price changes.

What is primary demand stimulation?

Creating demand for an entire product category.

What is selective demand stimulation?

Pointing out a brand's unique benefits compared to competitors.
Primary = Product category
Selective = Specific brand

Example:

🥛 Primary: "Drink more milk."
→ Promotes the category.

🥛 Selective: "Choose our milk because it has more protein."
→ Promotes a specific brand.

What is direct response advertising?

Advertising that encourages immediate action by the consumer.

What is delayed response advertising?

Advertising that relies on imagery and message themes emphasizing the benefits and satisfying characteristics of a brand.

What is corporate advertising?

Advertising that creates a favorable attitude toward a company as a whole.

What is brand advertising?

Advertising communicating the specific features, values, and benefits of a particular brand offered by an organization.

How does advertising affect GDP?

It contributes to overall consumer demand.

What is GDP?

A measure of the total value of goods and services produced within an economic system.

How does advertising affect competition?

It stimulates competition

How can advertising affect prices?

Advertising is built into product costs, which may be passed on to consumers.

How does advertising affect value?

It can add value to the consumption experience.