Untitled Flashcards Set

16-1 Discuss the effects of advertising on market share and consumers. Advertising helps marketers increase or maintain brand awareness and, subsequently, market share. Typically, more is spent to advertise new brands with a small market share than to advertise older brands. Brands with a large market share use advertising mainly to maintain their share of the market. Advertising affects consumers’ daily lives as well as their purchases. Although advertising can seldom change strongly held consumer attitudes and values, it may transform a consumer’s negative attitude toward a product into a positive one. Finally, advertising can also change the importance of a brand’s attributes to consumers. By emphasizing different brand attributes, advertisers can change their appeal in response to consumers’ changing needs or try to achieve an advantage over competing brands. 

16-2 Identify the major types of advertising. Advertising is any form of nonpersonal, paid communication in which the sponsor or company is identified. The two major types of advertising are institutional advertising and product advertising. Institutional advertising is not product oriented; rather, its purpose is to foster a positive company image among the general public, investment community, customers, and employees. Product advertising is designed mainly to promote goods and services, and it is classified into three main categories: pioneering, competitive, and comparative. A product’s place in the product life cycle is a major determinant of the type of advertising used to promote it. 

16-3 Discuss the creative decisions in developing an advertising campaign. Before any creative work can begin on an advertising campaign, it is important to determine what goals or objectives the advertising should achieve. The objectives of a specific advertising campaign often depend on the overall corporate objectives and the product being advertised and are often determined using the DAGMAR approach. Once objectives are defined, creative work can begin (e.g., identifying the product’s benefits, developing possible advertising appeals, evaluating and selecting the advertising appeals, executing the advertising message, and evaluating the effectiveness of the campaign). 

16-4 Describe media evaluation and selection techniques. Media evaluation and selection make up a crucial step in the advertising campaign process. Major types of advertising media include newspapers, magazines, radio, television, the Internet, and outdoor media such as billboards and bus panels. Recent trends in advertising media include shopping carts, computer screen savers, interactive kiosks, advertisements run before movies, posters on bathroom stalls, and advertainments. Promotion managers choose the advertising campaign’s media mix on the basis of the following variables: cost per contact, reach, frequency, characteristics of the target audience, flexibility of the medium, noise level, and the life span of the medium. After choosing the media mix, a media schedule designates when the advertisement will appear and the specific vehicles in which it will appear. 

16-5 Discuss the role of public relations in the promotional mix. Public relations is a vital part of a firm’s promotional mix. A company fosters good publicity to enhance its image and promote its products. Popular public relations tools include new-product publicity, product placement, consumer education, sponsorship, and company Web sites. An equally important aspect of public relations is managing unfavorable publicity in a way that is least damaging to a firm’s image 

16-6 Define and state the objectives of sales promotion and the tools used to achieve them. Marketing managers can use sales promotion to increase the effectiveness of their promotional efforts. Sales promotion can target either trade or consumer markets. Trade promotions may push a product through the distribution channel using sales contests, premiums, P-O-P displays, trade allowances, push money, training, free merchandise, store demonstrations, and business meetings. Consumer promotions may push a product through the distribution channel using coupons, rebates, premiums, loyalty marketing programs or frequent buyer programs, contests, sweepstakes, sampling, and P-O-P displays. The biggest trend in sales promotion on both the trade and consumer sides has been the increased use of the Internet. 

16-1 

advertising response function a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns 

16-2 

institutional advertising a form of advertising designed to enhance a company’s image rather than promote a particular product 

product advertising a form of advertising that touts the benefits of a specific good or service 

advocacy advertising a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks 

pioneering advertising a form of advertising designed to stimulate primary demand for a new product or product category 

competitive advertising a form of advertising designed to influence demand for a specific brand 

comparative advertising a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes 

16-3 

advertising campaign a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals 

advertising objective a specific communication task that a campaign should accomplish for a specified target audience during a specified period 

advertising appeal a reason for a person to buy a product 

unique selling proposition a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign 

16-4 

medium the channel used to convey a message to a target market 

media planning the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience 

cooperative advertising an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand 

infomercial a 30-minute or longer advertisement that looks more like a television talk show than a sales pitch 

advergaming placing advertising messages in Web-based, mobile, console, or handheld video games to advertise or promote a product, service, organization, or issue 

media mix the combination of media to be used for a promotional campaign 

cost per contact (cost per thousand or CPM) the cost of reaching one member of the target market 

cost per click the cost associated with a consumer clicking on a display or banner  

Ad reach the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks 

frequency the number of times an individual is exposed to a given message during a specific period 

audience selectivity the ability of an advertising medium to reach a precisely defined market 

media schedule designation of the media, the specific publications or programs, and the insertion dates of advertising 

continuous media schedule a media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle 

flighted media schedule a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times 

pulsing media schedule a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods 

seasonal media schedule a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used 

16-5 

public relations the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance 

publicity an effort to capture media attention, often initiated through press releases that further a corporation’s public relations plans 

product placement a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events 

sponsorship a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image 

crisis management a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event 

16-6 

sales promotion marketing communication activities other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value 

trade sales promotion promotion activities directed to members of the marketing channel, such as wholesalers and retailers 

consumer sales promotion promotion activities targeted to the ultimate consumer market 

trade allowance a price reduction offered by manufacturers to intermediaries such as wholesalers and retailers 

push money money offered to channel intermediaries to encourage them to “push”  

products—that is, to encourage other members of the channel to sell the products 

coupon a certificate that entitles consumers to an immediate price reduction when the product is purchased. 

rebate a cash refund given for the purchase of a product during a specific period 

premium an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product 

loyalty marketing program a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers 

frequent buyer program a loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service 

sampling a promotional program that allows the consumer the opportunity to try a product or service for free 

point of purchase (P-O-P) display a promotional display set up at the retailer’s location to build traffic, advertise the product, or induce impulse buying