CM217 quiz 2

studied byStudied by 1 person
get a hint

ad agency structure

1 / 187

Tags and Description

ch 5,6,8,9, 10-14

188 Terms


ad agency structure

follows an ad process

strategy - creative - media - production

New cards

how advertising starts

strategy and marketing plan

New cards


All the ways you get a product or service to people to facilitate the “exchange”

New cards


trading one thing for another thing of value and facilitated by marketing

New cards

larger marketing context of advertising

  • understand relationship between product and marketplace

  • locate and understand customers and their wants and needs

    • communicate it in a powerful way

New cards

key drivers of marketing decision, what advertisers are first thinking about

  • establishing a target market

  • classifying your product

  • setting your pricing

  • determining placement with distribution approach

  • choosing types of promotion

New cards

target markets

The market segment or group within the market segment toward which all marketing activities will be directed.

New cards

market segmentation

  • Marketers select specific markets that offer the greatest potential and fine-tune the mix of marketing elements to match the needs and wants of the target market.

    • identify groups with shared needs and characteristics

New cards

types of markets

consumer and business

New cards

cosumer markets

  • target of most advertising

    • consumers - people who buy the product for their own or someone else’s personal use

New cards

consumer segmentation

  • grouping customers based on shared characteristics to tailor messages

  • defined by

    • demographic

    • geographic

    • psychographic

    • behavioristic

New cards


based on a population’s statistical characteristics with quantifiable factors such as gender, age, ethnicity, occupation, income

New cards


based on geographical regions with shared characteristics such as culture, traditions, lifestyles, also often combined with geographic segmentation to make geodemographic segmentation

New cards

geodemographic segmentation

based on two principles

  • people who live in the same neighborhood tend to be demographically similar

  • neighborhoods can be categorized by characteristics of populations and two or more neighborhoods can be placed in the same category, even though they are geographically separated

New cards


defining consumer markets based on psychological variables including values, attitudes, personality, lifestyle/activities

New cards


grouping os consumers by their purchase behavior - how they buy and use products/brands, determine their user status

New cards

user status

varying degrees of loyalty to certain brands and products and different types

New cards

sale user

user status type, the most brand loyal and require the lease amount of advertising and promotion

New cards

semisole users

user status type; typically use Brand A but have an alternate selection if it is not available or if other is promoted with a discount

New cards

discount users

user status type; semisole users of competing brand B, they won’t buy brand A at full price but perceive it well enough to buy it at a discount

New cards

aware nontriers

user status type; use competitive products in the category but haven’t taken a liking to Brand A but aware

New cards


user status type; tried brand A because of its advertising message, but didn’t like the product

New cards

repetoire users

user status type; perceive two or more brands to have superior attributes and will buy at full price. These are brand switchers; therefore, they are the primary target for brand advertising

New cards


usage rate: defining consumers and light, medium, or heavy users of products, purchase occasion: how often consumers buy a product; benefits sought: segmenting consumers based on the benefits being sought such as high quality, low price, the symbolism

New cards

benefits sought

segmenting consumers based on the benefits being sought such as high quality, low price, functionalitys

New cards


consumer motivated by sex appeal, status/image, self identity

New cards

benefit segmentation

is prime objective of many consumer attitude studies for many successful and campaigns. Some product categories are characterized by substantial brand switching from one purchase to next, which occurs in response to different need states that consumers may experience

New cards

types of markets

consumer and business

New cards

business markets

organizations that buy natural resources, component products, and services that they resell and use to conduct their business, or use to manufacture another product

  • gov agencies

  • retailers

  • wholesalers

    • banks

New cards

business market characteristics

  • employ professional buyers and use systematic purchasing procedures

  • concentrated geographically

    • small numbers of buyers

New cards

B2B marketing

directed at people who buy goods and services for resale for use in a business or organization, or for manufacturing other products. Special advertising types:

  • trade

    • professional

New cards


advertisng type; targets resellers to promote distribution

New cards


advertising type; targets professionals in a given industry

New cards

product classifications

  • by market - consumer and industrial goods

  • by rate of consumption and tangibility - durable/non, services

  • by purchasing habits - convenience, shopping, specialty, unsought goods

    • by physical description - packaged, hard, soft, services

New cards


product’s ability to satisfy both functional needs and/or psychological wants

New cards

functional utility

  • form: provides a tangible good

  • task: performs a task

  • possesion: available for purchase

  • time: available when wanted

    • place: available where wanted

New cards

psychological utility

offers symbolic or psychological desire satisfaction, such as status or sex appeal

New cards

product life cycle

progressive stages in the life of a product - including introduction, growth, maturity, and decline - that affect the way a product is marketed and advertised

New cards

introduction stage

initial phase of the product life cycle when a new product is introduced, costs are highest and profits are lowest

  • attract early adopters, people willing to try new services

  • create primary demand - consumer demand for whole product category

  • pull strategy - marketing, ads aimed to induce trial purchase

  • push strategy - marketing, ads aimed at getting products into the dealer pipeline and accelerate sales

New cards

growth stage

market expansion as more and more customers make their first purchases while others are already making their second or third purchase

  • first substantial product

  • rapid market expansion

  • biggest rewards

  • ad expenditures decrease

  • individual firms realize first substantial profits

New cards

maturity stage

market is saturated with products, the number of new customers has dwindled, and competition is most intense

  • profits diminish

  • selective demand

  • sales increase at expense of competitors

  • market segmentation, product positioning

New cards

decline stage

stage in the product life cycle when sales begin to decline due to obsolescence, new tech, or changing consumer tastes

  • cease promotions

    • phase out the product

New cards

product positioning

the way it is ranked in consumer’s mind by the benefits it offers, way it is classified or differentiated

New cards


  • most important way any product can differentiate itself

  • combination of name, words, symbols, or design that creates core feeling

New cards

pricing element

the amount charged for a good or service, influences consumer perceptions of a brand

New cards

key factors influencing price

  • market demand (law of supply and demand)

  • product and distribution costs

  • competition

  • corporate objectives

New cards

psychological pricing

setting a high price to make it seem valuable to influence customer behavior or perceptions

New cards

distribution (place) element

place, distribution, element is decided before ad is created to make a method of distribution and be consistent with the brand’s image

New cards

ways of distribution

  • direct

  • indirect

  • intensive

  • selective

  • exclusive

New cards

direct distribution

direct distributors sell directly to consumers from the manufacturer, advertising burden carried entirely by manufacturer

New cards

indirect distribution

most companies market their products through a distribution channel that includes a network of resellers that operate between the producer and the user

New cards

intensive distribution

distribution strategy based on making the product available to consumers at every possible location

New cards

selective distibution

distribution method limits the number of outlet

New cards

exclusive distribution

this grants exclusive rights to a wholesaler or retailer in one geographic region

New cards

promotion/communication element

includes all marketing related communications between the seller and the buyer, based on target market and other areas of the 4 P’s

New cards

marketing communications /marcom

all planned messages that companies create to support their marketing objectives and strategies, work hollistically to make a message, surround consumer with integrated marketing

New cards

promotion key elements with IMC

advertising, PR, sales, sponsorship, events, branded content, direct marketing, personal selling

New cards

marketing mix

  • after target market is designated

  • elements of marketing decision are determined

  • company has a complete product concept and a strategic basis for marketing to that target

  • written marketing plan

New cards

marketing plan key components

  • situation analysis

  • marketing objectives

  • marketing strategy

  • marketing tactics

New cards

situation analysis

factual statement of the organization’s current situation and how it got there

  • compiles all relavent facts about industry and company history, growth, products, etc.

  • points out strengths, weaknesses, threats, opportunities

New cards

companies in industry

leaders in the industry who are the players

New cards

growth patterns within industry

primary demand, what drives purchasing and potential growth areas

New cards

history of industry

tech advances, product expansion

New cards

characteristics of industry

distribution patterns, pricing patterns, product patterns, promotional activity, geographic characteristics

New cards

swot analysis: the company

think about

  • history

  • size/growth

  • profitability

  • scope of business

  • reputation

  • strengths/weakessnes

New cards

swot: the product

  • product story - development, quality, packaging

  • sales features - ex/inclusive

  • research - tech breakthroughs

  • sales history - profits and costs

  • share of market and trends

New cards

swot competition

  • who is the competition - their products, audiences and goals, history, growth

  • strengths and weaknesses - sales features, quality, etc.

  • marketing activities of competition

New cards

marketing objectives

many kinds, “what” marketing needs to achieve

  • corporate

  • brand

  • need-satisfying

  • business

New cards

corporate objectives

profit, return on investment, net worth - for the corporation overall

New cards

brand objectivse

based on needs of target market, focus on brand measurement and engagement - for the brand

New cards

need-satisfying objectives

as a producer of products or services to a satisfier of target market needs - for the consumer/product relationship

New cards

business objectives

specific, quantitative, realistic business goals, for the bottom line business

New cards

marketing strategy

statement of how the company is going to achieve its marketing objectives and involves

  • re-stating the target market

  • stating the strategic position

  • determining the marketing mix

New cards

restating- the target market

first step beings by defining and selecting the target market using the processes of market segmentation and research

New cards

stating the strategic positioning

positioning refers to placing a brand competitively in the minds of customers

New cards

determining the marketing mix

a cost-effective mix (product, price, distrubution, and communication must be developed for each target market the company pursues

New cards

marketing tactics

a company’s objectives indicate where it wants to go; the strategy indicates the intended route; and the tactics determine the specific short-term actions to be taken

New cards

advertising plan

  • swot analysis

  • creative strategy

  • creative concet

  • media strategy

    • measurement plan

New cards

creative strategy

  • defines the target audience

  • restates objective

  • specifies key benefits

  • offers support for benefits

    • sets tone

New cards

media strategy

  • defining media objectives

  • states media target

  • using media channels and timing

New cards

advertising strategy: research

  • is a must

  • research provides information that drives marketing and advertising decision making

  • categorized in 2 ways - marketing and ad

  • uses creative and media strategy

  • used to gain understanding and key insights

  • informs the brand, audience, message, creative, and media

New cards

marketing research

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

  • helps identify consumer needs and market segments

  • it provides information for developing new products and devising marketing strategies

  • it helps assess the effectiveness of marketing programs and promotional activities

New cards

advertising research

uncovers the information needed to make advertising decisions, systematic gathering and analysis of information to help develop or evaluate advertising strategies, individual ads, and campaigns

New cards

ad research: brand

  • learn what consumers perceive about a brand and what qualities will lead to purchase and loyalty

  • establish a unique positioning concept for the brand - bundle values to shape brand’s position and image over time

  • inform a creative approach based on understanding of brand perception and the wants and needs of consumers

New cards

ad research: target audience

develop a rich, deep profile of brand’s target audience

understand demographics, behavior to gain valuable insight

define target audience to ensure the advertising will be delivered to the most prospects with the least waste

New cards

ad research: message

  • decipher what messages your audience will respond to

  • find promising messages by studying consumer’s likes and dislikes

  • determine which message elements will prove most successful

New cards

ad research: the creative

  • get an early read on which concepts the target audience responds best to, can drive which idea to go with (pre-testing)

  • evaluate the effectiveness of an ad campaign after it runs (post-testing)

  • provides useful guidelines for future - where to improve on creative

New cards

ad research: the media

  • understand which media channels to put the creative to reach the target audience; understand consumer media behavior

  • evaluate their intersts via systematic gathering and analysis based on effects of media vehicles

New cards

research process steps

  • analyzing the situation/defining the problem

  • conducting secondary research

  • establishing research objectives

  • conducting primary research

  • interpreting and reporting the findings

New cards

research process step 1

SWOT analysis, some use marketing information system (IMS)

New cards

secondary research

learn more about the market and competition, uses two types of research data - primary and secondary

New cards

primary data

customized information and can focus on any issue agency chooses

New cards

secondary data

information previously gathered and published, includes company records, billings, sales data, database services, etc.

New cards

research process step 3

specific research objectives in written statements, should be specific and measureable, what do we expect from research?

New cards

research process step 4

gather primary research through qualitative and quantitative research

New cards

qualitative research

  • projective techniques to understand subconcious feelings, opinions, etc.

  • intensive techniques - in-depth interview, focus group, ethnographic research (understand how people live their lives)

New cards

quantitative research

  • observations via people’s actions and data (UPC code)

  • experiment via test market

  • survey

New cards

research process step 5

report should state the problem and research objective and summarize the findings and draw conclusions

New cards

what research and strategic planning focuses most on

consumer behavior

New cards

consumer behabior

  • the importance of knowing the customer, focal research on this

    • the mental/emotional processes and the physical activities of people that purchase/use goods and services to satisfy particular needs and wants

New cards

Explore top notes

note Note
studied byStudied by 9 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 27 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 11 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 4255 people
Updated ... ago
5.0 Stars(9)
note Note
studied byStudied by 12 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 4 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 36 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 16743 people
Updated ... ago
4.6 Stars(38)

Explore top flashcards

flashcards Flashcard120 terms
studied byStudied by 8 people
Updated ... ago
4.5 Stars(2)
flashcards Flashcard66 terms
studied byStudied by 5 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard33 terms
studied byStudied by 8 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard65 terms
studied byStudied by 6 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard49 terms
studied byStudied by 43 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard66 terms
studied byStudied by 21 people
Updated ... ago
4.0 Stars(1)
flashcards Flashcard56 terms
studied byStudied by 62 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard44 terms
studied byStudied by 35 people
Updated ... ago
5.0 Stars(1)