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22 Cards in this Set
- Front
- Back
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Principles of Free-Market Economics:
1) Self Interest 2) Complete Information |
1) People act in their own self-interest. They want more for less. Competition leads to greater product availability at more competitive prices.
2)Information is always available about what products are available, at what quality , and at what prices. Leads to greater competition and lower prices for all. |
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3) Many buyers and sellers
4) Absence of Externalities |
3) Many sellers= customers needs will be met. Many customers= sellers can find markets for their products and produce at fair prices.
4)Consumption or sale of goods do not harm others that are not involved in the transaction. |
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Branding
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A marketing function that identifies products and their source and differentiates them from all other products.
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Functions and Effects of Advertising
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-ID products and differentiate them from others
-Communicate info about the product, features, and place of sale - Induce customers to try new products and suggest reuse - Stimulate distribution of a product - Increase product use - Build value, brand preference and loyalty - Lower the overall cost of sales*Important |
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Preindustrial Age
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Period of time between the beginning of written history and roughly the start of the nineteenth century, during which the invention of paper and the printing press and increased literacy gave rise to the first forms of written advertising.
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Developments in Preindustrial Age toward Advertising:
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-Mass Media beginnings (printing made possible)
-Population growth (especially cities) -Need for adds to Grab Attention/stand out from others |
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Industrialization Age
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mid 1700s to WWI;
The period of time from the mid- 1700s through the end of World War I when manufacturers were principally concerned with production. |
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Developments in Industrializing Age toward Advertising:
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-Mass production/Industrialization= more products than buyers.
-Urbanization -Transportation (RR= mid 1880s) -Technology(Photography) |
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When/who started advertising as a profession?
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Volney B. Palmer 1841 became a "newspaper agent"
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Industrial Age
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1900-1970;
A historical period covering approximately the first seventy years of the twentieth century. This period was marked by tremendous growth and maturation of the U.S. |
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Developments in Industrial Age toward Advertising:
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-Consumer markets saturated= consumer packaged goods
-Manufacturers switch from production to sales orientation= BRANDS -Depression= Ad industry gets less money=> Research of consumers markets - Radio and TV |
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Product differentiation (Not Definition)
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seeks to portray brands as different from and better than the competition by offering consumers quality, variety, and convenience.
(1930s?) |
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USP
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unique selling proposition- used to differentiate from competitive products.
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When was the Golden age in Advertising(book)?
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1940s an 50s: Ads focus on product features that imply social acceptance, style, luxury, and success. Ogilvy, Bernbach
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market segmentation
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Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product's utility.(1960)- Switch form product features to brand image
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Positioning strategy
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An effective way to separate a particular brand from its competitors by associating that brand with a particular set of customer needs.
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The Postindustrial Age
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Period of cataclysmic change, starting in about 1980, when people first became truly aware of the sensitivity of the environment in which we live.
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Demarketing
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Term coined during energy shortage of the 1970s and 1980s when advertising was used to slow the demand for products.
EX. slowing the use of washers and dryers during the day. |
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Important developments during the postindustrial age:
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-megamergers: helped expand to new markets overseas.
-creative advertising -TWO ECONOMIC FACTORS: 1)The aging of traditional products 2)the growing affluence of consumers (Baby Boomers)3)*Increased Competition - Internet= 2nd creative revolution |
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Reis and Trout- Four Strategic Positions in the Marketplace:
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Defensive, Offensive, Flanking, Guerrilla
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What "Age" Are we in today?
Who is the top Advertiser? |
Global Interactive
Procter and Gamble |
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Current trends
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-Away from TV and toward more "Narrowcasting" medium.(limited clientèle)
-two-way interaction with viewers(relationship marketing) |
