APR 241: Ch. 1, 2, 3, 7

Marketing Communications

The various efforts and tools companies with customers and prospects including newspaper ads, event sponsorship, publicity, telemarketing, digital ads, and coupons (just a few)

Media

A plural form of medium, referring to communication vehicles paid to present an advertisement to their target audience most often used to refer to radio and tv networks, stations that have reporters, and publications that carry news and ads.

Services

A bundle of benefits that may or may not be physical, that are temporary in nature and that come from the completion of a task

Advertising

A paid, mediated form of communication from an identifiable source; designed to persuade the receiver to take action, now or in the future

Word of Mouth Advertising

The passing of info. especially product recommendations in an informal, unpaid, person-to-person manner, rather than advertising other forms of traditional marketing

Product

The particular good or service a company sells

Consumers

People who buy products and services for their own, or someone else’s personal use

Mass Media

Print or broadcast that reach large audiences mass media includes radio, tv, newspapers, magazines, and billboards

Marketing

An organizational function and set of processes for creating, communicating, and delivering value to customer relationships in ways that benefit the organization and its stakeholders

Public Service Announcements

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

Goods

Tangible products such as suits, soaps, and soft drinks

Marketing Mix

4 elements (the p’s) product, price, place, and promotion, 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 the consumers awareness, attitude, and preference, It describes how to get there. It consists of two strategies: the creative and media strategy

Principles of Free-Market Economics

Self-Interest, complete information, Many buyers and sellers, and absence of externalities

Self-Interest

What people and orgs. pursue. People always want more for less.

Complete information

the info. buyers and sellers have about what products are available, at what quantity, and at what prices, the more efficient the competition, the outcome is better quality products at lower costs

Many Buyers and Sellers

a wide range of sellers ensures that if one company does not meet customer needs, another will capitalize on the situation by producing more market responsible products

Absence of Externalities

sometimes the sale or consumption of products results in benefits or harm of people who are involved in the transaction and who did not pay for the product.

externalaties

Benefits or harm caused by the sale or consumption of products to people who are 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

Sales Promotion

a direct inducement offering extra incentives along with the marketing route from manufacturers through distribution channels to consumers to accelerate the product from the producer to the consumer

Pre-Industrial Age

Period of time between the beginning of written history and roughly the start of the 19th century, during the invention of paper, the printing press, literacy increased, and gave rise to the 1st forms of written advertising

Industrial Age

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

Consumer Packaged Goods

every day-use consumer product packaged by manufactures and sold through retail outlets

Positioning

the association of a brand features and benefits with a particular set of customer needs, clearly differentiate it from the competitors in the eyes of the customer

Unique Selling Proposition

the distinctive benefits that make a product different than any other. The reason marketers believe consumers will buy products even though they may seem no different than any other

Post-Industrial Age

period of cataclysmic change, starting about 1980, when people 1st truly became aware of the sensitivity of the environment in which we live

Marketing Segmentation

Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumers or business products and aggregating these groups into larger markets according to their mutual interest in the products utility

Demarketing

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

Added Value

the increase in worth of a product or service as a result of a particular activity. In the context of advertising, it provided by the communication of benefits over and above those offered by the product itself

Primary Demand

consumer demand for a whole product category

Ex. economic effect of advertising

Like the opening shot of pool

Selective Demand

consumer demand for the particular advantages of one brand over another

Abundance Principle

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

Puffery

exaggerated, subjective claims that can’t be proven true or false such as “the best”, “premier” or “the only way to fly”

Stereotypes

negative or limiting preconceived beliefs about type of person or a group of people that don’t take into account individual differences

ethical advertising

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

commercial speech

enjoys the same freedoms as regular speech

Children’s Advertising Review Unit

to promote responsible children's advertising and to respond to public concerns the Better Business Berau created what

Privacy Rights

of or pertaining to an individual’s right to prohibit personal info. from being divulged to the public

Deceptive Advertising

according to the FTC, an ad is deceptive if it contains a statement, or omits info. that is most likely to mislead consumers from acting responsibility

Federal Trade Commission

the federal agency that helps to protect consumers. Mostly regulated advertising

Unfair Advertising

according to the FTC, advertising that causes a consumer to be “unjustifiably injured” or violates public policy

Comparative Advertising

advertising that claims superiority to the competitors in some aspect

Endorsements

the use of satisfied customers and celebrities to endorse products in advertising

Testimonals

the use of satisfied customers and celebrities to endorse products in advertising

Cease-and-Desist Order

may be issued by the FTC if an advertiser won’t sign a consent decree; prohibits further use of an 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 for authorship including literacy, dramatic, musical, artistic, and other works, which may be legally protected by patent, copyright, or trademark

Patent

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

Trademark

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

Copyright

an exclusive right granted by the copyright act to authors and artists to protect their original work from being plagiarized, sold, or used by another without their express consent

Better Business Bureau

(non-gov. regulated) protects against fraudulent and deceptive advertising and sales practices

The Advertising Self-Regulatory Counsil

Primary purpose is to promote and enforce standards or truth, accuracy, taste, morality, and social responsibility of advertising products

Consumer Advocate

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

American Association of Advertising Agencies

association of the largest advertising agencies throughout the United States, controls agency practices by denying membership to any agency judged unethical.

American Advertising Federation

helped establish the FTC, and its early vigilance committees were the forerunners of the Better Busi-ness Bureau.

Advertisers

companies that sponsor advertising for themselves and their products

Advertising Agencies

independent orgs. 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

Suppliers

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

Advertising Manager

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

Integrated Marketing Communications

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

Types of advertising

Product, sale, classified, institutional

Product Advertising

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

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

Institutional Advertising

a type of advertising that attempts to obtain favorable attending for the business as a whole, not for a specific product or service the store or business sells. The effects are intended to be long term

Classified Advertising

short, text-only ads appearing in the classified sections of print media or in online listings such as Craig’s list. Typically used to locate and recruit new employees offer services, or sell, or lease new or used merchandise

Cooperative Advertising

the sharing of advertising costs by the manufacturer and the distributer or retailer. The manufacturer may 50/100 percent of the dealer’s advertising costs or some other amount based on sales

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 throughout the country

Centuralized Advertising department

a staff of employees usually located at cooperate headquarters, responsible for all the organization’s advertising. The department is often structured by product, advertising, subfunction, end user, media, or geography

Traditional Advertiser

Local Agencies

advertising agencies that specialize in creating advertising for local business

Regional Agencies

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

National Agencies

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

Full-serve ad agency

an agency equipped to serve its clients in all areas of communications and promotions in advertising. Services include planning, creating, and producing advertisements as well as performing research and media selection services. Non advertising functions including producing sells promotion materials, publicity articles, annual reports, trade show exhibits and sales training materials

General Consumer Agency

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

Business 2 Business Advertising

represents clients that market products to other businesses

Creative Boutiques

organizations of creative specialists (art directors, designers, and copywriters) that work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages, and specialized art. Only performs the creative work

Media Buying Service

an organization that specializes in the purchasing and packaging radio and tv time

Interactive Agency

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

Account Executives

the liaisons between the agency and the client. Account executives are responsible both for managing all the agency’s services for the benefit of the client and for representing the agencies point of view to the client

Management Supervisors

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

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 plan

Media Planning

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

Copy

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

Copywriters

people who create the words and concepts for ads and commercials

Art Directors

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

Creative Directors

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

Production Department

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

Traffic Department

the department in an ad agency that coordinates all phases of production and makes sure

Markup

a source of income gained by adding an amount of money to the supplier’s bill

Departmental System

the organization of an ad agency into departments based on functions: Account services, creative services, marketing services, and administration

Group System

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

Media Commission

compensation paid by the medium to recognized advertising agencies, traditionally is percent for advertising placed with it

Fee Commission

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

Straight Free Method

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

Insentive System

a form of compensation in which the agency shares in the client’s success when a campaign attains, specific, agree-upon terms