• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/158

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

158 Cards in this Set

  • Front
  • Back

Advertising

to promote your product

Personal selling

in which salespeople deal directly with customers either face-to-face or via telemarketing, offers the flexibility possible only through human interaction.

Marketing

the process and activity of planning and creating the conception, pricing, placement, and promotion of goods and/or services that have value for clients and customers.

Public Relations (PR)

company’s relationship with its various publics

Stern advertising process model

Source > Encoding > Message > Channel > Decoding > Receiver



"Ex: Nike (source), conveys (encodes) their message and airs it on T.V. (Channel) for the viewer (Receiver) to understand (Decode)"

Channel

any way through which an encoded message is sent to a receiver (ex. newspaper, tv, billboard)

Encode

translation of an idea or message into words, symbols, and illustrations

Decode

receiver decodes message to understand it

Receiver

the other party that receives the message (ex: me and you, people)

Source/sender

Company/owner of product

Medium

an instrument that carries or helps transfer a message from the sender to the receiver


Think of:


"messages communicated to the public using words, speech, and pictures."

Message

the information that is sent ex: "buy Kardashian perfume"

Feedback

A message that acknowledges or responds to an initial message

Branding

constantly branding their logos onto their products to the point where everyone recognizes the logo. Example- Coca Cola

De-marketing

advertising used to slow the demand for their products. Producers of energy and energy-consuming goods used theses ads to get people to refrain from operating washers and dryers during the day when the demand for electricity peaked.

Market Segmentation

Advertising to a unique portion of the population based upon a specialized product.

Positioning Strategy

How brands rank against the competition in meeting consumer needs, how it is positioned.


Ex: Positioning your product for the right consumer. Offering 99c menu.

Media Convergence

Examples:


- MTV coming out and combining radio & TV.


- Newspapers going digital online.


(You can sort of think of it as: combining the old with the new)


Active Control

more control in the hands of the consumer, like the Internet

Two-way communication

direct communication and feedback between you and company, you and other consumers


Example:


Consumer: "This sucks." Company: "Sorry, you didn't enjoy it we'll attempt to fix it."

Synchronicity

"Perceived meaningful coincidence."


Example:


You might encounter a reference to some obscure event in history for the first time and then see several unrelated references to the same event soon afterwards.

Subliminal advertising

an advertiser has affected product sales with a hidden message embedded in a commercial

deceptive advertising

any ad that contains a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment.

unfair advertising

the inadequacy of complete information. For example, claims that exploit vulnerable groups such as children and the elderly


Or you can think of it:


when sellers coerce consumers into purchasing unwanted goods or services

comparative advertising

Advertisers use comparative advertising to claim superiority to competitors in some aspect. In the United States, such ads are legal (and encouraged by the FTC) so long as the comparison is truthful.

bait advertising

Advertising offers products or services for sale that doesn’t stand and is a device to switch consumers to other goods or services, usually higher priced.


Example: Best buy: "50 inch. TVs $50 While supplies last"


Best Buy: "Sorry we only had one of those, but we have a 50 inch. TV here for $599"

consent decree

is a document the advertiser signs agreeing to stop the objectionable advertising without admitting any wrongdoing.

cease-and-desist order

If an advertiser won’t sign a consent decree, the FTC may issue a cease-and-desist order prohibiting further use of the ad.
Think of:


(issue prohibiting further advertising of the product.)

corrective advertising

The FTC may also require corrective advertising for some period of time to explain and correct offending ads.

Decentralized system

the company sets up separate ad departments for different divisions, subsidiaries, regions, brands, or other groups.


Example: Johnson & Johnson (They sell tylenol, listerine, baby care products, etc. A lot to offer)

Centralized system

single ad department, offering greater control and less go betweens


Example: Southwest airline (Only one service to offer)

In-house agency

agency wholly owned by an advertiser and set up and staffed to do all the work of an independent full-service agency.

Full service advertising agency

An agency equipped to serve its clients in all areas of communication and promotion.

Advertisers (clients)

pay agencies to create advertisements

Agencies

helps the advertisers plan, create, and prepare ad campaigns and other promotional materials.

Media

Plural for medium (Medium = an instrument that carries or helps transfer a message from the sender to the receiver)

Suppliers

People and organizations that assist both advertisers and agencies in the preparation of advertising materials. Such as: photography, illustration, printing, and production

Central route

High willingness to elaborate a message

Cognition

comprehending the stimulus


(Noun. The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.)

Cognitive Theory

- Learning theories rely on modeling behaviours. Comes into play especially if you have never used the product before. OR when making complex purchases (You only know what you’ve seen in the media or what your parents have told you.)


- We learn from others how to do things.


- Complex purchase (Ie: Car)

Conditioning Theory

The theory that learning is a trial-and-error process. Also called stimulus-response theory.


Example: Trial and error process, Go and buy what’s cool and see if you like it.


- This comes from direct experience.


- Simple purchase (ie: Detergent.)

Elaboration Likelihood Model

Source, message, channel > Attetion and comprehention >(Two routes from here...)


->High involvement > Cognitive response > Believe & Attitude change & Behaviour Change.


-> Low involvement > belief change > behaviour change > attitude change

Persuasion

A change in belief, attitude, or behavioral intention caused by a message (such as advertising or personal selling)

Personal processes

It involves a sequence of activities: problem recognition (which may


occur as a result of seeing an ad), information search, evaluation and selection, store choice and purchase, and finally post-purchase behavior.


How YOU, the consumer, process it.

Peripheral route

People who are not in the market for a product have no reason to pay attention to ad, however, these consumers might attend to some peripheral aspects and at some later date, if a purchase occasion does arise and the consumer needs to make some brand evaluation, these ad-related meanings could be activated.

Physiological Screens

The perceptual screens that use the five senses- sight, hearing, touch, taste, and smell- to detect incoming data and measure the dimension and intensity of the physical stimulus.

Stimulus-response theory

Also called conditioning theory. IMC messages are external stimuli that can appear in a variety of forms: a window display at a local department store, the brightly colored labels on cans of Campbell’s tomato soup, or even the red price tag. These objects are all physical in nature; they stimulate our senses in ways that can be measured

Cognitive Dissonance

Justifying their behavior by reducing the dissonance, or inconsistency, between their cognition and reality. “Thinking about if your product is the best after you buy”


Ex: Prof saying he hated his friend's jeep.

Behavioristic segmentation

Method of determining market segments by grouping consumers into groups based on their purchase behavior

Brand equity

The totality of what consumer, distributors, dealers, and competitors feel and think about a brand over an extended period of time; in short, it is the value of the brand’s capital.

Demographic segmentation

Based on a population’s statistical characteristics such as sex, age, ethnicity, education, occupation, etc.

Geographic segmentation

A methods of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within the region.

Marketing Mix

Four elements (4P’s) ***Product, price, promotion, & placement*** that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy.


Right product sold at right place, right time, with the right promotion.

Psychographic Segmentation

Method of defining consumer markets based on psychological variables including values, attitudes, personality, and lifestyle


(Who we are as individuals)

Psychographics

The grouping of consumers into market segments on the basis of psychological makeup- values, attitudes, personality, and lifestyle

Intensive Distribution

A distribution strategy based on making the product HEAVILY/READILY available to consumers at every possible location so that consumers can buy with a minimum effort.


EX: Coke-a-Cola is Intensively distributed

Selective Distribution

Strategy of limiting the distribution of a product to select outlets in order to reduce distribution and promotion costs.

Hidden differences

not readily apparent (can’t tell difference)

Induced differences

packaging is different but product is the same

Perceptible Differences

obviously unique

Advertising Role

to create demand for the product (promotion)

Different goals of advertising

Awareness, Comprehension, Conviction, & Attitude

Awareness

Establishing communication with consumers and Top-of-Mind Awareness (TOMA)


Comprehension

Understanding (informational role)

Conviction

Purchasing of that product or service


Attitude

Improving or enhancing consumers opinions


4 P’s of marketing

Product, Price, Promotion, & Placement

Product

any goods, services, or ideas that are advertised.

Price

an important part of marketing is setting a price for your goods or services

Placement

the where of marketing (distribution)


Promotion

creating a want or need for a product or service


3 different kinds of message dimensions

autobiography, narrative, & drama

Autobiography

“I” tell a story about myself to “you,” the audience eavesdropping on my personal experience

Narrative

a third-person persona tells a story about others to an imagined audience


Drama

the characters act out events as though in a play. The audience is an invisible observer of the actions in the ad

The principles of free-market economics

Self-interest


Complete information


Many buyers and sellers


Absence of social costs


The purpose of advertising in society

Branding: Logos, slogans, signs, etc.


Information: Communicate information about a product


Acquire: New consumers and maintain/repeat customers


Increase usage: Stimulate sales


Distribution: Stimulate distribution


Reduce: The overall cost of sales

Important developments/inventions of early advertising (pre-industrial age)


* 1650: first newspaper advertisement (produced by Benjamin Franklin)

Important impacts of the industrial age on advertising


* Radio was born and radio shows were produced

Important transitions associated with the Golden Age of Advertising


1940’s-1970’s known as Golden age because the intro of tv helped make the advertising industry well known.


It was pointed out that every ad must point out the products USP (unique selling proposition)


Then there was a new idea: market segmentation


Emphasis from product features to brand image/personality


Position strategy- how brands rank against the competition in meeting consumers needs, how it is positioned.

Impact and reasoning of the 1948 Television Freeze


After WW2, there was a growth and the freeze happened because they couldn’t keep up with it. Early days they sent out broadcast signals that kept interfering with each other and overlapped and they had to stop and wait till they could allocate the spectrum. There wasn’t enough regulation.


The impact was that TV stations and networks, which had previously been independent, had to abide by certain regulations to ensure there wouldn’t be anything like this happening in the future.

3 major impacts of the Quiz Show scandals

Distrust of TV programs: they couldn't cheat on national television


Congress amended the Communications Act


Networks took charge of their programming

Changes brought about by the post-industrial age

Changes in societal views of consumerism


Environmental concerns


Demarketing- slowing demand for product (like energy)


Mergers/Global Economy


Companies buying each other in attempt to better position themselves


Megamergers


2 related factors characterized by the marketing world of this period


The aging of tradition products


The growing affluence and sophistication of the consuming public


2001 Bubble Burst


Dot-coms didn’t know how to make money & spent all on super bowl ads


Internet created “second creative revolution”

3 concepts of interactivity that influence online advertising

Active Control, 2-way communication, Synchronization

Effects of advertising on value of products, prices, competition, consumer demand, & consumer choice (economic impacts)


Value of products: adds value to brand image


Effects on prices: encourages competition thus keeping the prices down (this is not necessarily the case. it’s much more complex.)


Effects on competition: encourages competition, but smaller companies cannot compete


Effects on consumer demand: very complex to determine


Effects on consumer choice: market new brands and improve old ones


Different types of psychological appeals in advertising


Informational, Emotional, Patriotic, Sexual, Success/Achievement/Power, Testimonial Appeals


Value effects of advertising

Materialism/consumerism - Creates unnecessary wants or needs, degrades our value system


Instrumental materialism - Independent of greed, achieves higher needs (self-actualization) “Buy our product and it’ll help you achieve your goals.”

Consumer materialism/consumerism

creates unnecessary wants or needs, degrades our value system

Instrumental materialism

independent of greed, achieves high needs (self-actualization)
-Attempting to look at the bigger picture, optimism

Effects of advertising clutter (over-saturation)

Daily regiment of advertising messages may exceed information processing abilitie


Redefining of advertising (advertainment)


Cognitive defense & negative attitudes


Recognition & recall


Effects of stereotypes in advertising


Gender roles - Stereotypical roles and portrayals (Women are homemakers, Men can’t cook, etc.)


Objectification - Women portrayed as objects


Ethnicities/races - Stereotypical roles and associations


Social stigmas

Tenants of the Central Hudson Test

Can’t advertise for illegal products


Can’t mislead consumers


Govt. can regulate if deemed necessary

Importance of Self-Regulation in Advertising

Protects adv. company from being regulated by the govt.

3 Government organizations

Federal Trade Commission (FTC), Food and Drug Administration (FDA), Federal Communications Commission (FCC)

Federal Trade Commission (FTC)

Major regulator of Advertising. The commission enforces a variety of federal antitrust and consumer protection laws and works to enhance the operation of the marketplace by eliminating acts or practices that are deceptive or unfair.


Food and Drug Administration (FDA)

Regulates food labels, packaging of food, cosmetics, drugs, etc.


Ads must mention important possible side effects


Federal Communications Commission (FCC)

Indirect control/influence over broadcast advertisements responsible for protecting the public interest and encouraging competition


Controls airing of obscenity and profanity


Can restrict the products advertised and the content of ads regulate to promote common good


Remedies for unfair and/or deceptive advertising (response to violations)


Substantiation - was there a violation?


Consent decree - signature to stop the advertising, no wrongdoing admitted


Cease-and-desist order - issue prohibiting future advertising of the product


Corrective advertising - run advertisements that corrects the offending advertisements

4 primary groups associated with advertising

Advertisers, Media, Agencies, Suppliers

Types of local advertising

product, institutional, classified

Product Local Advertising

promotes specific brand or service


Direct response: sale advertising, immediate


Delayed response: developing image


Institutional Local Advertising

promotion of company/ org. as a whole


Classified Advertising

local advertising for individuals and companies


Local advertising

Focuses on bringing in customers


Brand advertising

Focuses on promoting a specific brand/service


Different types of cooperative advertising

Vertical and Horizontal

Cooperative Advertising

National brand reimburses the retailer for part or all of the ad


Vertical Coop Adv

Provides complete ad and shares cost of time and space

Horizontal Coop Adv

Firms in same business pull resources to adv. together ie. the mall

Differences between local & national advertisers


Local


Focus: bringing in customers


Relationships: with customers


Time: short term goals


Resources: Smaller budgets, smaller personnel


National


Focus: building brands


Relationship: with customers


Time: longer term goals


Resources: big budgets, large personnel


Issues in the global versus local debate

Standardization


Differences between countries is a matter of degree so advertisers must instead focus on similarities between consumers


Localization (adaptation)


Advertisers must consider differences among countries


Combination


Combines both

2 types of basic management structures

centralized & decentralized

In-house advertising agencies


Advantages


Saves money


More control


May allow greater attention to the brand


Disadvantages


Lower creative quality


Loss of objectivity/bias

Newspapers


Advantages


Sense of immediacy


Typically contain new content


I need to read this content right away


Local emphasis- local merchants and advertisers. Newspapers usually are in local markets which help local businesses


Flexibility- advertisers can select certain geographic areas through the newspapers


Preprinted color inserts- if someone can afford these color prints


Sampling ability- can offer free samples of products with newspaper delivery


Catalog value- ppl store coupons/articles


Disadvantages


Dying medium and comes once a day


High cost- higher national advertising rates


Limited coverage- only a certain % of population that buys the paper


Decreasing circulation-but trying to find ways to become relevant again through online stuff


Poor production quality- only black & white; runny ink


Small pass-along audience- people throw it away when they’re done with it. Shorter lifespan

Magazines

Advantages


High pass along audience


Selectivity: able to reach niche audiences


Access to light TV viewers: tend to be higher income, higher educations, light tv views


Fine color reproduction


Long life


Controlled Circulation: usually business field


Disadvantages


Early closing dates for advertisers to submit ads


Lack of immediacy


Slow building of reach

Television

Advantages


Sight, sound, and motion for dynamic selling


Flexibility


210 designated market areas


Reach of both selective and mass markets


Cost-efficiency


Daytime, cable, and fringe


Disadvantage


High cost


Low attention


Do something else while waiting


Commercial Skipping


Flip the channel while waiting for show to come back


Short-lived messages


High commercial loads


30 min shows have 6-8 min of commercials. 60 min shows have 12-16 min


No catalog value

Product Placement

Advantages


Not overly presented as advertising


Implied endorsement-favorite character on a show does same thing as you do


Ability to select a program environment consistent with product image- ex: on home makeover shows, all the tools used will be craftsman tools


Disadvantages


Lack of control by advertiser to a certain extent. Products not shown a right way, or not enough screen time


Limited communication value- people might not even notice it


Variable exposure time- due to filmmaking/editing, it might not be on air as much as you’d like it


Decreased value overtime- in reruns, you’re stuck with your old image


It could also be uncomfortable. Feel forced.

Outdoor Advertising

Advantages


Maximum exposure to that area


Longer life- 3mon, 9 mon, etc.


Wide coverage area


Largest print available


Around the clock exposure- billboards are always there.


Good for repetition in high-traffic areas


High summer visibility- more people go on road trips


Disadvantages


Simple messages- can’t really put a lot for people to read while they’re driving


Recall? People have low recall rate for billboard ads. People remember ads they don’t understand which defeats the purpose. Don’t remember billboards that well


High cost- times square, million dollars/month


Limited availability- zoning restrictions. Billboards can only be in commercial zone areas


Transit advertising is often subject to defacement

Radio Advertising

Advantages


High frequency


Good repetition


Niche audience


Reach of special kinds of target audience


Relatively cheap; supporting medium


Quick-just pay for the time, the broadcasters can make the script/jingle, etc.


Excellent for mobile pop. People can’t be consuming any other type of media


Higher summer exposure


People are driving in the summers instead of flying


Local coverage availability


Especially good for car dealerships, restaurants, local retail stores


Disadvantages


Many stations in 1 market. The bigger the market, the more radio stations. Causes ad time to be spread out over smaller audiences


No catalog value- this is why people repeat the ads/slogans/phone numbers a lot


Low attentiveness for some formats- radio is background noise to our lives. We usually think about other stuff when its on

Direct Mail Advertising

Advantages


Easy verification of response. U know how many u printed, were bundled, delivered, etc. u know when/how people will use them


Personal quality-send handwritten letter, makes someone want to open it.


Long life-people usually keep catalogs/coupons. They throw other stuff out


Potential savings- people may bundle coupons with bills they already send out


Disadvantages


High cost- pay for it yourself, print it out yourself, pay for mailing list, paper and ink


Inaccurate mailing lists-if sent to wrong person they usually throw it away


Variance in delivery times-usps takes a long time


Clutter: people don’t usually go through everything since they got stacks. Negative attitude towards this kind of advertising

Online Display/Banner Advertising

Advantages


Active medium-people can click on it/engage with it


Creative flexibility- a lot of things people can do with ads on internet


Links directly to website where people can purchase the product


Disadvantages


People hate it


Low-click through rates. People don’t click on them


Low attention rates- people ignore them


Clutter: so much advertising


Advertisers are making ads look like content- native advertising. EX: To complete this download, you need this product (an anti virus software ad for example mkay)

Mobile Advertising

Advantages


Very personal form of marketing


Good for return on investment purposes (easy for tracking)


Permission based Opt-in


Location based services


Delivery of coupons


Apps


Disadvantages


Unintended clicks


Network speed variability


Privacy


Consistent platform content

Engine Marketing (Sponsored Searches)


Advantages


Target searches: Reaches people with proven interest in product or service


Direct linking


Low cost legitimacy


Disadvantages


Typically plain text searching


Side by side competition


Control over online reviews

Video Game Advertising

Advantages

* no tracking data (static)

Viral Advertising

Advantages


Sent C2C


Not seen as advertising


Persuasive


Entertaining


Disadvantages


Negative feedback


Advertiser is not always identifiable


Limited brand building

Consumer Behavior

the activities, actions, and influences of people who purchase and use goods and services to satisfy their personal or household needs and want


Needs


The basic, often instinctive, human forces that motivate us to do something

Wants

Desires learned during a person’s lifetime

Hedonic Consumption/Processing

The multisensory, fantasy, and emotional aspects of consumers interactions with products

Cognitive Consumption/Processing


Memories - Storage of message, however, memories may be incomplete


Informational Motives

Also called Negatively originated motives


consumers actively seek information to reduce the mental state


consumers work to find relief from the negative state


More of an “I have to buy a suit because I need it”


Transformational Motives

Also called Positively originated motives


3 positive originated motives:


Sensory gratification, intellectual stimulation, or social approval


Consumer expects to be transformed in a sensory, intellectual or social sense


More of an “I’m buying this suit because I love shopping”

Post-evaluation process (satisfaction) & advertisings function in that process

Satisfaction must occur every time a consumer uses the product. IMC reinforces satisfaction by reminding consumers why they bought the product


Interpersonal influences of decision-making

Internal & External

External Influences

Family: influence our attitudes toward products


Peer Groups: people we relate too


Opinion leaders: influential individuals (ex. Oprah recommends a book. It becomes a New York Times Bestseller)


Culture: shared values and activities


Internal Influences

Perception: is the personalized way we sense, interpret, and comprehend stimuli


Learning and Persuasion: habitual behavior (comprehension)


Motivation: drives out satisfaction of our needs and wants (conviction)

Physiological screens

The five senses (our sensations) detecting incoming information


Vision: NBA, MLB, and NFL logos


Smell: Febreze, odorless garbage bags, folgers Hearing: music can be associated with branding images


Touch: a good pair of pajamas feel soft


Taste: “the Pepsi challenge”


Psychological screens

Evaluate, filter, and persuasive information


Cognitive Theory


Learning theories rely on modeling behaviors


Comes into play especially if you have never used the product before


OR when making complex purchases


Conditioning Theory

Comes from direct experience

Priming Theory


The activation spreading of mental imagery and concepts through stimuli presentations


Advertising images and primes us with ideas and thoughts


ex: buy more, think happy


Limited Capacity Model


People are information processors


Our ability to process information is limited


Sub-processes


Encoding, storage, retrieval


Motivations (relaxation vs. learning)


Extended Parallel Process Model (EPPM)

Developed by Kim Witte based on fear based messages


1. Severity 2. Susceptibility 3. Response & Self Efficacy

Severity

threat must have reasonable severe consequence for the audience (how bad is the consequence)


Susceptibility

The audience must feel susceptible to the threat (does it relate to me?)

Response & Self Efficacy

your recommendation must work and that the audience can enact your recommendation (Nicotine patch how it works and can I do it?)


4 types of segmentation


Behavioristic, Geographic, Demographic, Psychographic

Limitations of consumer segmentation


Over-simplification of consumers


Complicated Identification Process


Lack of theoretical underpinnings


Similarities & differences between consumer & business segmentation


Similarities


Both use 4 types of segmentation


Differences


In business market, there are four levels of classification, including sub-sectors, industry groups, industries, and finally distinct U.S. industries


Market concentration for business markets (Business markets deal with fewer buyers than consumer markets)


Business markers can also segment by end users


Target Market

Group of segments the company wishes to appeal to, design products for, and tailor its marketing activities toward.

Different types of distribution

Indirect, Direct, Intensive, Selective, Exclusive

Indirect distribution

Most companies market their products through a distribution channel that includes a network of sellers


Direct distribution

When companies sell directly to the customers (ex. avon)

Intensive distribution

Based on making the product available to consumers at every possible location so that customers can buy with min. effort


Selective distribution

Limiting distribution of a product to select outlets in order to reduce distribution and promotion costs

Exclusive distribution

Selected wholesalers or retailers are granted exclusive rights to distribute a particular product (ex: hair products sold only in salons)


Different types of product branding

Manufacturer branding vs. private labels


Individual branding vs. family brands


Co-branding


Individual brand


Family brand


National brand


Private labels


Licensed brands


3 kinds of product differentiation

Perceptible, Hidden, Induced