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183 Cards in this Set

  • Front
  • Back
the purpose is to create exchanges taht satisfy the perceived needs, wants, and objectives of individuals and organizations.
The special relationship between a customer's needs and a product's need-satisfying potential.
The product's ability to satisfy both functional needs and symbolic or psycological wants.
Any transaction in which one person or organization trades something of value with someone else
Traditional, theoretical core of marketing.
the more knowledgeable party (seller) must reassure the buyer, perhaps through advertising, that an equal exchange is possible.
Must be present even after a customer buys the product, because they need to feel they got an equal exchange.
Advertising reinforces this by remindgin customers why they bought the product, helping them defend the purchase against skeptical friends, and enabling them to persuade other prospects to buy it.
Marketing depends on these types of participants
Marketers, markets (grous of customers), and customers
Interpersonal Influences
family, friends, culture
nonpersonal influences
time, place, environment
personal processes
perception, leraning and persuasion, motivation
Steps in the decision process
1. problem recognition
2. info searc
3. evaluation and selection
4. store choice and purchase
5. postpurchase behavior (positive or negative experience).
• Companies that sell:
o Time (electronic)
o Space (print)
• To carry advertisers’ message to target audiences
Types of Agency
• Full-service
• Advertising and non-advertising services
• General consumer
• Business-to-business
• Specialized Agencies
o Creative boutiques (don’t do research)
o Media-buying services
o Interactive
Factors Affecting the Client-agency Relationship
• 1. Chemistry: between client and agency staffs
• 2. Communication: constant, open, honest communication
• 3. Conduct: what everyone in does affect relationship
• 4. Changes: a. Personnel b. Competitive situation c. Environment
Pre-relationship stage
• before the agency has been hired. All are on their best behavior
development stage
• honeymoon period. Rules are set and relationship established.
Maintenance stage:
• is the day-to-day working relationship.
• Period when all problems are tested which mat or may not be resolved
Termination stage
• irreconcilable difference may occur.
• How this termination stage is handled is an important factor in determining whether the two ever get back together.
Agency Compensation Media Commissions
• typically 15% on any space or time purchased on behalf of the client.
• Traditionally, 17.65% is added onto the cost of outside services (type, photography, printing, etc.) purchased on behalf of clients (as high as 20 or 25 percent).
Methods of Payment
• fee-commissions combination: basic monthly fee and media commissions earned.
• Straight fee or retainer method: agencies charge for all their services and credit any media commissions earned to the client.
• Incentive system: agency earns more if the campaign attains goals.
National Advertisers:
• Focus on building brands.
• Compete with few.
• Plan strategically
• Marketers think in terms of groups.
Local merchants:
• Focus is on attracting customers to a particular point
• Compete with many companies
• Plan tactics
• See customers daily.
Transnational advertisers challenges
• conducting business in one or more foreign markets
• different values, environment & language
• different consumer purchasing abilities & habits
• different media,
• therefore, different advertising strategies & structures needed.
Electronic Media
• TV and radio
• Local and network
• Formerly “Broadcast”
• Now “wire” as much as “air” with cable, satellite
Digital Interactive Media
• Audience can participate actively and immediately
• Using digital electronic equipment
• Internet, kiosks (a booth in a store or trade show, interactive, you put info into it and they give you something back).
Out-of-Home Media (2 Kinds)
o Billboards
o Ex.: Chick-fil-A (p. 129)
o Richard’s Group did the campaign (based in Dallas)

• Transit Advertising

o Bus, taxi, & subway
o Terminals, stations, shelters
o Skywriting, blimps, etc.
o Effective & inexpensive to reach local audiences.
Direct Mail
• Advertising mailed directly to prospective customers via a postal service.
• May include sales letters, coupons, brochures, samples, and devices to stimulate responses.
Other Media
• Videocassettes and computer disks with commercial messages.
• Computer-dialed sales messages
• Promotional items (pens, shirts, cups, etc.)
What did Homegrocer lack?
A good marketing plan, and a product that appealed to a broad enough consumer base to turn a profit.
The Assumption Syndrome
• Don’t assume anything about a market. Respect the importance of marketing and know how to interpret the data uncovered by research.
• Even great advertising cant save a product that isn’t marketed correctly.
• Look at the bigger picture.
Activity in class included what six elements?
Form, Task, Possession, time, place, psychic
What is the difference between a customer and a market?
pp. 143-145) Customers are the people or organizations who consume products and services.

• A market:
o Group of potential customers who share an interest, need, or desire
o Who can use the offered good or service, and can pay the purchase price.
o Types: Consumer, business, gov’t, global.
o You have to be able to price it right for the market.
What does the term consumer behavior refer to, and why is it important to advertisers?
(p. 147) Consumer behavior is the mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy particular needs and wants.

• Advertisers:
o Spend a lot of money on accurate information
o Create relationships
o Advertising creative people develop patterns of words and images
Which consumer behavior process presents the greatest challenge to advertisers?
Mental Files: We store memories in our minds according to a mental filing system:

• We rank files by importance, price, quality features, etc
• We can easily remember two brand names in a mental file, but find it difficult to remember more than seven.
• We resist opening new files.
• We avioid filing new information that is inconsistent with what is already filed.
• Mental file drive the perceptual screens – a major challenge to advertisers.
What is the difference between the central route and the peripheral route to persuasion?
. (pp. 148-149) Central route to persuasion:
• Higher level of involvement with the product or message.
• Motivated to pay more attention to the central, product-related information,
• Peripheral route
o Low involvement
o Might attend to some peripheral aspects, like pictures in the ad or actors.
What is the significance of negatively originated motives and positively originated motives to advertisers?
(pp. 155-156) The purchase of a certain product might represent a negatively originated motive to some, and a positively originated motive to others.

• This suggests two distinct product markets that advertisers must understand and may call for completely different advertising strategies.
What are some environmental influences on consumer behavior in international markets?
Environmental influences in international markets? (pp. 158-159)

• More difficult to control than those of “time” or “place,” especially in unfamiliar economic & social conditions.
• Some governments exert more control on citizens, businesses, products
• Strategies can mitigate influences from environment, if known.
How does the theory of cognitive dissonance relate to advertising?
Cognitive Dissonance: (Page 164) People strive to justify their behavior by reducing the degree to which their impressions or beliefs are inconsistent with reality.
When a consumer makes a purchase, the exchange may cause anxiety, doubt
Purchaser reads an advertisement reassuring him/her of value, good investment, more for money – lowers anxiety.

Cognitive dissonance answer (explanation of it).
What are the types of marketing plans?
• Top-down: Most common
• Bottom-up: Entrepreneurial
• IMC: Newest
Top-down marketing plan: Main Elements:
• Situation analysis (1)
• Marketing objectives (2)
• Marketing Strategy (3)
• Marketing tactics (4)
Bottom-up Marketing:
• Small Companies
• Advertisers need to find just one tactic, built strategy around it.
• Example: Pizza Delivery done in 20 minutes, started to find that people would use it more to get an edge.
• Relationship Marketing
• Built around points of customer contact
• Possible through database info
Shelly Yamen
• Muse Cordero Chen and Partners
• Talks directly with consumers (African American, Asian, and Latino markets)
• Accounts: Nike, Honda, AT&T Wireless
• Honda told her they wanted a campaign for African Americans
• She started research and found that they all loved fixing up their cars (The Civic)
• Over time, their campaign as low emissions and high gas mileage began to diminish because of competition
• She discovered a birth of new group of people. A Civic Nation
Local Advertising
• Local businesses in a particular city or county targeting customers in their geographic area.
product Advertising
• Promotes a specific product or service and stimulates short-term action while building awareness of the business.
Regular price-line advertising
• Inform consumers about services or merchandise offered at regular prices.
• An accounting firm might use to promote tax services
Sale advertising
• Placing items on sale and offering two-for-one specials or other deals.
Clearance advertising
• A special form of sale advertising to make room for new product lines or new models and to get rid of slow-moving lines, floor samples, broken or distressed merchandise or out-of-season items.
Institutional Advertising
• Attempts to create a favorable long-term perception of the business as a whole, not just of a particular product or service
Classified Advertising
• Used in the newspaper to locate and recruit new employees, offer services, or sell or lease new and used merchandise
Integrated Marketing Communication
• Joining together in a consistent manner everything that communicates with customers.
Cooperative (co-op) Advertising
• 1st: to build manufacturer’s brand image
• 2nd: to help its distributors, dealers, or retailer’s make more sales
Vertical Advertising
• Manufacturer provides the complete ad and shares the cost of the advertising time or space.
Horizontal Advertising
• Firms in the same business (real estate agents for example) or in the same part of town advertise jointly.
Regional Advertising
• Companies that operate in one part of the country, in one or several states, and market exclusively within that region.
National Advertisers
• Selling in several regions or throughout the country
Association of National Advertisers (ANA)
• Include consumer packaged goods, national airlines, media and entertainment companies, electronics, and all the auto companies to make up the membership
o See page 103 for list.
• Advertiser’s place of business, local advertisers try to focus their advertising on this.
Centralized advertising department
• gives the greatest control and offers both efficiency and continuity across divisional boundaries. Deals with cost efficiency and continuity for companies
Decentralized advertising department
• Company sets up separate ad departments for different divisions, subsidiaries, regions, brands, or other categories that suit the company’s needs.
international structure
• Divisions are responsible for their own product lines marketing operations and profits and create customized advertising for each market.
brand manager
• oversees a brand group and directs his or her own ad agency to create the brands media advertising.
• Work under a marketing manager, who reports to a category manager
multinational corporations
• strive for full, integrated participation in world markets
Global marketers
• multinationals that use a standardized approach to marketing and advertising in all countries.
The advertising agency
• AAAA defines an ad agency as an independent organization of creative people and businesspeople who specialize in developing and preparing marketing and advertising plans, advertisements, and other promotional tools.
Local agency
• analyze the local advertisers business and the product or service being sold.
• Evaluate the markets for the business, including channels of distribution
• Evaluate the advertiser competitive position and offer strategic options
• Evaluate media alternatives and offer rational recommendations
• Devise an integrated communications plan and implement it with consistency and creativity
• Save the advertiser valuable time by taking over media interviewing, analysis, checking billing and bookkeeping
• Assist in other aspects of advertising and promotion by implementing sale s contests, publicity grand openings, and other activities
International Agencies
• they have offices or affiliates in major communications centers around the world and can help their clients market international or globally as the cast may be.
International Agencies
• they have offices or affiliates in major communications centers around the world and can help their clients market international or globally as the cast may be.
Regional and National agencies
• participate in either the 4As (AAAA) or some similar trade group such as the Western States Ad Agency Association (WSAAA)
Full service ad agency
• supplies both advertising and nonadvertising services in all areads of communications and promotion
general consumer agency
• represents the widest variety of accounts, but it concentrates on consumer accounts or companies that make goods purchased chiefly by consumers
• represents clients that market products to other business
Creative boutique
• set up own creative services
media buying services
• setting up organizations to purchase and package radio and TV time
interactive Agency
Think New Ideasa and are just two of the many firms that have sprung up within the lat few years with specialized experience in designing web pages and creating fun, involving, information rich online advertising
deals with government, media nad the public. place 75% of all national advertising handled by agencies in the Us. Standards explain that the agencys purpose is to interpret to the publc, or to desired segments of public info about a legally marketed product or service. it studies the client's product to look at strengths and weaknessess. it analyzes the product's present and potential market, and it formulate sa plan to carry the ad's message to consumrs, and others. it writes, designs, and produces the ads. itworks with the client's marketing staff.
Account Executives (AEs)
The liasion between the agency and the client. large agencies typically have many of these. they are responsible for formulating and executing ad plans, services, and reping the clients point of view to the agency.
Management or account supervisors.
AE's report to these people. report to the agency's director of account services.
Account Planning
a hybrid discipline that uses research to bridge the gap between account management and creatives. Defends the customer's point of view. study consumer needs and desires through phone
the words that make p the headline and message.
the people who create these words must condense all that can be said about a product into a few pertinent, succient points.
art director
determine how the ads verbal and visual symbols will fit together
creative director
the agency's copywriters and artists work as a creative team under this person. eEach team is usually assigned a particular client's business.
Wilky, Mike, and Fons
all agreed that it was important to generate a campaign that would show urban youth in their own world. How better to accurately capture the essence of urban youth than to include them in the campaign? "civic nation" featured souped-up civics. came up with line "represent"
Media planning is crucial why?
It is the only way to communicate through some medium. tight budgets demand ingenious thinking, tough negotiating, and careful attention to details. Many products owe their success more to creative meda buying than to clever ads.
Often the first stop for entry level college grads and good place to learn about agency operations.
Sales Promotion Department
produce dealer ads, window posters, point-of-purchase displauys, and dealer sales material. They may employ PR people and direct-marketing specialists, web page designers, home economices experts, or package designers.
Ad Agency organizes by what?
according to the types of accounts it serves, its size, and its geographic scope. Most small agenices have production and traffic departments or an employee who fulfills these functions. they may have media buyer by in small agencies AE's buy time and space.
Departmental System
medium and large agencies are usually structures in a departmental or group system. the agency functions into departments.
Group System
agency is divided into a nnumber of little agenies or groups. Each group may serve one large account or 3 or 4 smaller ones. Account Sup heads each groups staff of AE's and other people.
features open workstations clustered into communities.
What has cut into agency profits
trenes in the business, mergers of superagencies, shifts from ad to sales promotion and direft markintg, increased production costs, and fragmentation of media vehicles.
Media Commission
Media allowed agencies to retain 15% on space or time they purchased on behalf of clients.
the agency pays the supplier's charge and then adds this to the clients bill. typically 17.65% of the invoice.
Fee-Commission combination
agency charges a basic monthly fee for all its services to the client and retains any media commissions earned.
Straight-fee or retainer method
agencies charge for all their services, either by the hour or by the month, and credidt any media commissions earned to the client.
Incentive system
the agency earns more if the campaign attains specific, agree-on Goals. DDB Needham offers its clients a guaranteed results program. Kraft also uses.
In-House Agency
to save money and tighten control over their advertising. May do all the work of a full service agency. hope to save money by cutting overhead, and keep commission and avoiding markups on outside purchases. Small,local advertisers in particuler seek this goal. Some in fashion field do well with this. have difficulty attracting best creative people. Problem is loss of objectivity.
Speculative presentation
meaning they want to see what the agency will do before they sign on.
Apple campaign left them, they put ad in newspaper of how they did great work together, later they came back.
Communication, Conduct, Chemistry, and changes.
the peopleand organizations that provide specialized services to the advertising business.
Art Studios
design and produce artwork and illustrations for ads.
Web Design Houses
Employ specialists who understand the intricacies of HTML and Java programming languages and can design ads and web pages that are both effective and cost efficient.
employ or contract with highly trained specialists who prepare artowrk for reproduction, scanning, presses and collating machines and run binderies.
intdependent production houses
specialize in film or video production or both.
independent research companies
or consultants. Important took for markeitng professionals, employ people who study stats and people behavior.
plural term for medium, refersto toher communications behicles such as direct mail, out-of-home media, specialized media, speciality ad items, and new communication technologies like digital media.
Advertising media into sex categories
print, electronic, digital interactive, direct-mail, out-of-home, and other
Print Media
refers to any commercially published printed medium, such as newspapers and mags, that sells ad space ot a variety of advertisers.
Electronic Media
radio and TV used to be called broadcast media.
Digital Interactive Media
allow th eaudience to participate activley and immediately.
Outdoor or Out-of-home
Billboards, local firms, revenue comes from national advertisers such as liquor and airline companies.
Transit Advertising
bus, taxi, and subway advertising is an effective and inexpensive medium to reach the public while theyre in the retail neighborhood.
Direct-mail Advertising
mail or email their advertising directly to prospective clients without using one of the commercial media orms. Most expensive on a cost-per-exposure basis.
International Media
serve serveral countries, ususally without any change in concent have been limited ti newspapers and mags.
Foreign Media
the local media of each country, use radio which enjoys almost universal ownership.
three types of local advertising
product, institutional, and classified.
Product: can be further divided into regular price-line ad, sale, and clearance advertising.
Institutional: creates a long term perception of the business as a whole by positioning it within the competitive framework.
Classified: used to recruit new employees, offer sevices, and sell or lease new or used merchandise.
elements is the spical relationship between a customers needs and a products need-satisfying potential. Is the products ability to satisfy both functional needs and symbolic psychological wants.
Product shaping
designing products, through manufactureing, repackaging, or advertising to satisfy more fully the customers needs and wants.
Gen Xers and Echo Boomers
Ford Developed the Focus
Annabelle Gurwitch
demonstrating how fabulous the new Focus is as she drives around the country.
any transaction in which one person or organization trades something of vaules with someone else.
Advertising deals with the cutomers perception of the product or service, an the sell'ers perception of the customers needs, wants, and objectives.
current customers
have already bought something froma business, and they may buy it regularly. one way to measure success is by how many of these.
prospective customers
are people about to amke an exchange or considering it.
Centers of influence
those cutomers, prospective ones, or opinion leaders whose ideas and actions others respect.
simply a group of currrent customer, prospective customers, or noncustomers who share a common interest, need, or desire, who have the money to spend to satisfy needsor solve problems, and who have the authority to make expenditure decisions.
Consumer Markets
comprise people who buy goods and services for their own use. Both Nisson and Ford cater to this market
Business Markets
composed of organizations that buy services, natural resources, and component products that they resell, use to conduct their businesss, or use to manufacture another product.
Reseller Markets
buy products to resell them. Ford or Sunkist
Industrial markets
include more than 17.6 million firms that buy products used to produce other goods and services.
Government markets
buy products for municipa, state, federal, and other government activities.
Transnational or Global Markets
include any of the other three markets located in foreign countries. what is the difference between the transnational market and domestic market for same product? Environment.
includes every person or organization that has products, services, or ideas to sell.
Consumer behavior
the mental and emotional processes an the physical activities of people hwo purchase and use goods and services to satisfy particulars needs and wants.
Organizational buyers
the people who purchase products and services for use in business and government.
Consumer decision process
the moment a medium delivers an ad message to us, our mental computer runs a rapid evaluation.
personal processes
governe the way we discern raw date and translate them into feelings, throughts, beliefs, and actions. perception, the learning and persuasion, and the motivation process.
Interpersonal influences
family, society, and culture
time, place, and environment.
Evaluation of Alternatives
we choose brands, sizes, styles, and colors
postpurchase evaluation
affect all our subsequent purchases
refer to personalized way we sense, interpret, and comprehend various stimuli.
physical info we receive through our sense. any ad, commercial, or promotion we see
perceptual screen,s
subconscious fileters that shield us from unwanted messages. two types
Physiological screens
comprise the five sense. Detect incoming data and mesaure the dimension and intensity of physical stimuli.
psychological screens
evaluate, filter, and personalize info according to subjective emotional standards. based on innate factors such as self-concept, interests, beliefs, etc.
Self Concept
the image we have of who we are and who we want to be
Selective perception
we screen our of modify many of the sensations that bombard us, rejecting those that conflict with our experiences, needs, etcs. we focus on somethings and ignore others.
comprehending the stimulus. Once we detect the stimulus and allow it through our perceptual screens, we can comprhend and accept it.
Mental files
stored memories. we rank data by factors like price, color, etc.
permanent changei nthrough process or behavior that occurs as a result of reinforced experience. contributes to developments in beliefs and all that other shit.
Cognitive theory
views learning as a mental process of meory, thinking, and the rational application of knowledge to practical probles,
Conditioning theory
also called stimulus respons theory treates leaning as a trial and error process.
occures when the change in belief is caused by promotion communication such as ad or personal selling.
Elavoration likelihood model, or central route to persuation
consumers have a higher level of onvolvement with the product or the message, so they are motivated to pay attention to the central, product-related info such as attributes and benefits or demonstrations of positive functional or psychological consequences.
peripheral route to persuasion
very different. its more like stimulus response learning, people who are not in the market for a product typically have low involvement with the product message.
acquired mental position regarding some idea or object. it is positive or negative feelings we have for it.
brand interest
an individual's openness or curiosity about a brand.
the acquired behavior patten that becomes nearly or completely inoluntary, it is the natural extension of learning. it is safe, simple, and essential.
Brand loyalty
the consumer's conscious or unconscious decision, expresssed throug hintention or behavior, to repurchase a brand continually,
refers to the underlying forces that contribute to our purchasing actions. Stem from needs or wants.
hierarchy of needs
Abraham Maslow. maintained that the lower physiological and safety needs dominate human behavior and must be satisfied before the higher and socially acquired needs or wnats becomes meaninful. highest need is self-actualization.
Rossiter and Percy
identify eight fundamental purchase and usage motives. first 5 negativve, and last three positively originated.
Negatively originated motives
a problem removal or problem aviodance whenever we run out of something we experience a negative mental state.
informaltional motives
if the purchase is satisfactory, the drive is reduced, these are called the word because the consumer actively seeks information to reduce the mental state.
positively originated motices
sensory gratification, intellectual sitmulation, and social approval or transformational motives because the consumer expects to be transformed in a sensory, intellectual, or social sense.
reference groups
peple we try to emulate or whose approval concerns us. can be personal or impersonal.
Professor Carolyn Lin
of all business functions, markeitng activities are the most susceptible to cultural error.
a segment within a culture that shares a set of meanings, values, or activities that differ in certain respets from those of the overall culture.
post purchase dissonance
holds that people stive to justify their behavior by reducing the dissonance, or inconsistency between their cognitions or perceptions or belifs and reality.
Advertising plan
a natural outgrowth of the marking plan and is perpared in much the same way.
SWOT Analysis
strenths and weakness and external opposrutnites an threats. briefly restates the company's current situation, reviews the target market segments, itemizes the long and short term karting objectives, and cites deicison regaing marketin positioning and marketing mix.
Advertising strategy
blends the elemtns of the creative mix: target audience, product concept, communications media, and advertising message
Product concept
the bundle of values th eadvertiser presents to the comusmer. Gen. Motors
Richard Vaghn
Foote, Cone & Belding noted that different kinds of products typically evoke different levels of consumer involvement either high or low and diffferent types of involvement either cognitive or affective.
kim and Lord
recognized that people and be affectively and cognitively involved at the same time.
communications media
all the vehilces that might transmit the advertiser's message.
Percentage of sales method
one of the most popular techniques for setting advertising budgets. may be based on a % of last years sales, anticipated sales for next year, or a combination. Businessspeople like this method because its simple. The problem is knowning which %age to use.
Share of Markt/Share of voice method
a bold attempt to link advertising dollars with sales objectives. Holds that a companues best chance of maintaining its share of market is to keep a share of advertising somewhat ahead of its market share.
Objective Task method
also known as the budget buildup method, uis used by the majority of major national ad in Us. It consideres ad to be a markeitng tool to help generate sales. Has 3 steps:
defining objectives, determingin strategy, and estimating cost.
empirical research method
company runs a series of tests in different markets with different budgets to determine the best level of ad expenditure.