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255 Cards in this Set

  • Front
  • Back
6 Components of Advertising
Communication, Structured, Composed, Non-personal (mass communication), Identified sponsors, and persuasive.
4 Fundamental Assumptions of a free market
Self interest, complete information, many buyers and sellers, absence of externalities (social costs).
Functions of advertising
-To get consumers to re-use products or try new ones.
-Increase product use.
-Lower the overall costs of sales.
-Simulate distribution of a product.
Purpose of advertising
-Announces availability and location of products.
-Describes their quality and value.
-Imbues brands with personality.
-Defines personalities of the people buying the brand.
Marketing Communications
The various efforts and tools companies use to initiate and maintain communication with customers and prospects, including newspaper ads, telemarketing, or statement stuffers.
Advertising
The structured & composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products by identifies sponsors through various media.
Consumers
People who buy products and services for their own, or someone else's, personal use.
Public Service Announcement
An advertisement serving the public interest, often for a nonprofit organization, carried by the media at no charge.
Goods
The tangible products such as suits, soap, and soft drinks.
Services
A bundle of benefits that may or may not be physical, that are temporary in nature and that come from the completion of a task.
Ideas
Economic, political, religious, or social viewpoints that advertising may attempt to sell.
Medium
An instrument or communications vehicle that carries or helps transfer a message from the sender to the receiver.
Word-of-mouth advertising
The passing of information, especially product recommendations, by verbal communication, in an informal, unpaid, person-to-person manner, rather than by advertising or other forms of traditional marketing.
Mass Media
Print or broadcast media that reach very large audiences. Mass media include radio, television, newspapers, magazines, and billboards.
Marketing
An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customers relationships in ways that benefit the organization and its stakeholders.
Marketing Mix
Four elements, called the 4P's (product, price, place, and promotion), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy.
Marketing Strategy
-The statement of how the company is going to accomplish its marketing objectives.
-This is determined through a blend of marketing mix elements. Considered the how-to of the marketing plan.
Advertising Strategy
The advertising objective explains what the advertiser wants to achieve w/ respect to consumer awareness, attitude, & preference. Advertising strategy consists of 2 sub-strategies: the creative & media strategy.
Externatlies
Benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction and didn't pay for the product.
Branding
A marketing function that identifies products and their source and differentiates them from all other products.
Consumer Packaged Goods
Everyday-use consumer products packaged by manufactures & sold through retail outlets. Generally these are products that get used up and have to be replaced frequently.
Product differentiation
Manufactures portraying their brands as different from & better than similar competitive products through advertising, packaging, or physical product differences.
Unique Selling Proposition
The distinctive benefits that make a product different than any other. The reason marketers believe consumers will buy a product even though it may seem no different from many others just like it.
Market Segmentation
Strategy of identifying groups of people w/ certain shared needs & characteristics within the broad markets for consumer/business products & aggregating these groups into larger market segments according to their mutual interest in the products utility.
Positioning
The association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the consumer.
De-marketing
Term coined during the energy shortage of the 70's and 80's when advertising was used to slow the demand for products.
Sales promotion
A direct inducement offering extra incentives all along the marketing route-from manufactures thru distribution channels to customers-to accelerate the movement of the product from the producer to the consumer.
Narrow-casting
Delivering programming to a specific group defined by demographics and/or program content, rather than mass appeal. Usually used to describe cable networks. The opposite of broadcasting.
Digital video recorders
A device that is similar to a VCR, but records programs on a hard drive in digital format, providing high-quality image and sound and the ability to pause live TV.
Market Segmentation
Involves identifying groups of people (or organizations) with certain needs & characteristics & aggregating (combining) these groups into larger market segments according to their interest in the product's utility.
Shared Characteristics
Categories used to identify & segment consumer markets
Sole Users
Brand loyal, require the least amount of advertising.
Semi-Sole users
Use a typical brand, but will switch if the original brand is unavailable, or if another brand is on sale
Discount users
Buy only at a discount no matter what brand it is.
Aware Montriers
Use competitive products in the category and tend to stay away from "brand A." Different advertising typically does not help in getting consumers to buy brand A.
Trial/Rejectors
Liked brand A advertising message but did not like the product. Advertising won't help, only reformulation of brand A will bring the consumer back.
Repertoire Users
Perceive multiple brands to have superior attributes & will buy at full price. Brand switchers who respond well to persuasive advertising based on fluctuating wants and desires. They are a primary target for brand advertising.
Important Factors for Advertising Success
-Strong primary demand trend
-Chance for significant product differentiation
-Hidden qualities highly important to consumers
-Opportunity to use strong emotional appeals
-Substantial sums available to support advertising
Externalities
Benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction and didn't pay for the product.
Added Value
The increase in worth of a product or service as a result of a particular activity. In the context of advertising, the added value is provided by the communication of benefits over and above those offered by the product itself.
Primary Demand
Consumer demand for a whole product category.
Selective demand
Consumer demand for the particular advantages of one brand over another.
Abundance Principle
States the an economy produces more goods & services that can be consumed. In such an economy, advertising helps inform consumers about alternatives and fosters competition amongst firms.
Puffery
Exaggerated, subjective claims that can't be proven true or false such as "the best," "premier," or "the only way to fly."
Subliminal Advertising
Advertisements with messages (often sexual) supposedly embedded in illustrations just below the threshold of perception.
Stereotypes
Negative or limiting preconceived beliefs about a type of person or a group of people that do not take into account individual differences.
Ethical Advertising
Doing what the advertiser and advertiser's peers believe is morally right in a given situation.
Social Responsibility
Acting in accordance to what society views as best for the welfare of people in general or for a specific community of people.
Privacy Rights
Of or pertaining to an individual's right to prohibit personal information from being divulged to the public.
Cookies
Small pieces of information that get stored on your computer when you download certain websites. Cookies keep track of whether a user has visited a web site before. The site identifies returning users & customizes information based on past browsing or purchasing behavior.
Deceptive Advertising
According to the FTC, any ad in which there is a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment.
Unfair Advertising
According to the FTC, advertising that causes a consumer to be "unjustifiably injured" or that violates public policy.
Comparative Advertising
Advertising that claims superiority to competitors in some aspect.
Substantiation
Evidence that backs up cited survey finding or scientific studies that the FTC may request from a suspected advertising violator.
Endorsements
The use of satisfied customers and celebrities to endorse a product in advertising.
Testimonials
The use of satisfied customers & celebrities to endorse a product in advertising.
Affirmative Disclosure
Advertisers must make known their products limitations or deficiencies.
Consent Decree
A document advertisers sign, without admitting any wrongdoing, in which they agree to stop objectionable advertising.
Cease-&-Desist order
May be issued by the FTC if an advertiser won't sign a consent decree; prohibits further use of an ad.
Corrective Advertising
May be required by the FTC for a period of time to explain and correct offending ads.
Nutritional Labeling & Education Act
-Requires labeling to show food value for one serving alongside the recommended daily value.
-Set stringent legal definitions for terms such as fresh, light, low fat, & reduced calorie.
Intellectual Property
Something produced by the mind, such as original works of authorship including literary, dramatic, musical or artistic, which may be legally protected by copyright, patent or trademark.
Patents
A grant made by the government that confers upon the creator of an invention the sole right to make, use, and sell that invention for a set period of time.
Trademark
Any word, name, symbol, device adopted & used by manufacturers or merchants to identify their goods & distinguish them from those manufactured or sold by others.
Copyright
An exclusive right granted by the Copyright Act to authors & artists to protect their original work from being plagiarized, sold, or used by another without their express consent.
Broadcast Standards Department
A department at a TV network that reviews all programs & commercials to be broadcast to see that they meet all applicable standards.
Consumerism
Social action designed to dramatize the rights of the buying public.
Consumer Advocate
An individual or group that actively works to protect consumer rights, often by investigating advertising complaints received from the public and those that grow out of their own research.
Advertisers
Companies that sponsor advertising for themselves & their products.
Advertising Agencies
Independent organizations of creative people & businesspeople that specialize in developing & preparing advertising plans, advertisements, & other promotional tools for advertisers. The agencies also arrange for or contract for purchases of space & time in various media.
Supplies
People & organizations that assist both advertisers & agencies in the preparation of advertising materials, such as photography, illustration, printing, & production.
Media
Communication vehicles paid to present an advertisement to their target audience. Also refers to radio, TV networks, & publications that carry news & advertising.
Local Advertising
Advertising by businesses within a city or county directed toward customers within the same geographical area.
Advertising Manager
The person that performs all the administrative, planning, budgeting, & coordinating functions. The may lay out ads, write & copy, & select the media.
Product Advertising
Advertising intended to promote goods & services; also a functional classification of advertising.
Sale advertising
A type of retail advertising designed to stimulate the movement of particular merchandise or generally increase store traffic by placing emphasis on special reduced prices.
Institutional Advertising
A type of advertising that attempts to obtain favorable attention for the business as a whole, not for a specific product or service the store or business sells. The effects of institutional advertising are intended to be long term.
Classified Advertising
Used to locate & recruit new employees, offer services, or sell or lease new & used merchandise.
Integrated Marketing Communications
The process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to make constructive contact with the company/brand through a variety of media.
Cooperative Advertising
The sharing of advertising costs by the manufacturer and the distributor or retailer. The manufacturer may repay 50% or 100% of the dealers advertising costs or some other amount based on sales.
Regional Advertisers
Companies that operate in one of the country that market exclusively to that region.
National Advertisers
Companies that advertise in several geographic regions or throughout the country.
Centralized Advertising Department
A staff of employees, usually located at corporate headquarters, responsible for all the organization's advertising. The department is often structured by product, advertising sub-function, end user, media, or geography.
Brand Manager
The individual within the advertiser's company who is assigned the authority and responsibility for the successful marketing of a particular brand.
Decentralized system
The establishment of advertising departments by products or brands or in various divisions, subsidiaries, countries, regions, or other categories that suit the firm's needs, which operate with a major degree of independence.
Multinational Corporations
Corporations operating and investing throughout many countries and making decisions based on availabilities worldwide.
Global Marketers
Multinationals that use a standardized approach to marketing and advertising in all countries.
International Media
Media serving several countries, usually without change, that is available to an international audience.
Foreign Media
The local media of each country used by advertisers for campaigns targeted to consumers or businesses within a single country.
Advertising Agency
An independent organization of creative people and businesspeople who specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers.
Local Agency
Advertising agencies that specialize in creating advertising for local businesses.
Regional Agencies
Advertising that focuses on the production and placement of advertising suitable for regional campaigns.
National Agencies
Advertising agencies that produce and place quality of advertising suitable for national campaigns.
International Agencies
Advertising agencies that have offices or affiliates in major communication centers around the world and can help their clients market internationally or globally.
Full Service Ad Agency
An Agency equipped to serve its clients in all areas of communication and promotion. Its advertising services include planning, creating, and producing advertisements as well as performing research and media selection services. Non-advertising functions include producing sales promotion materials, publicity articles, annual reports, trade show exhibits, & sales training materials.
General Consumer Agency
An agency that represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly by consumers.
B2B Agency
Represents client that market products to other businesses.
Creative Boutiques
Organizations of creative specialists (such as copywriters, designers) that work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages, and specialized art. A boutique performs only the creative work.
Media Buying Service
An organization that specializes in purchasing and packaging radio and television time.
Interactive Agency
An advertising agency that specializes in the creation of ads a digital interactive medium.
Account Executives
The liason between the agency and the client. The account executive is responsible both for managing all the agency's services for the benefit of the client and for representing the agency's point of view to the client.
Management Supervisors
Managers who supervise account executives and who report to the agency's director of account services.
Account Planning
A hybrid discipline that bridges the gap between traditional research, account management, and creative direction whereby agency people represent the view of the consumer in order to better define and plan the client's advertising program.
Media Planning
The process that directs advertising messages to the right people in the right place and the right time.
Production Department
The department in an advertising agency that is responsible for managing the steps that transform creative concepts into finished advertisements and collateral materials.
Traffic Department
The department in an advertising agency that coordinates all phases of production and makes sure everything is completed before the deadline.
Sales Promotion Department
In larger agencies, a staff to produce dealer ads, window posters, point of purchase displays, and dealer sales material.
Copy
The works that make up the headline and message of an advertisement or commercial.
Copywriters
People who create the words and concepts for ads and commercials.
Art directors
Along with graphic designers and production artists, individuals who determine how the ad's verbal and visual symbols will fit together.
Creative Director
Head of a creative team of agency copywriters and artists who assigned to a clients business and who is ultimately responsible for the creative product -- the form the final ad takes.
Department System
The organization of an ad agency into departments based on function: account services, creative services, marketing services, and administration.
Group System
System in which an ad agency is divided into a number of little agencies or groups, each composed of an account supervisor, account executives, copywriters, art directors, a media director, and any other specialists required to meet the needs of the particular clients being served by the group.
Media Commission
Compensation paid by a medium to recognized advertising agencies, traditionally 15% (16 1/2% for outdoor), for advertising placed with it.
Markup
A source of agency income gained by adding some amount to a supplier's bill, usually 17.65%
Fee commission Combination
A pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned.
Straight-Fee
A method of compensation for ad agency services in which a straight-fee, or retainer, is based on a cost-plus-fixed-fees formula. Under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies that by the some factor.
Retainer Method
A method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula. Under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies by some factor.
Incentive System
A form of compensation in which the agency shares in the client's success when a campaign attains specific agreed-upon goals.
In-house agency
Agency wholly owned by an advertiser and set p and staffed to do all the work of an independent full-service agency.
Speculative Presentation
An agency's presentation of the advertisement it proposes using in the event it is hired. It is usually made at the request of a prospective client and is often not paid for by the client.
Suppliers
People and organizations that assist both advertisers and agencies in the presentation of advertising materials, such as photography, illustration, printing, and production.
Art Studios
Companies that design and produce artwork and illustrations for advertisements, brochures, and other communication devices.
Web Design Houses
Art/computer studios that employ specialists who understand the intricacies of HTML and Java programming languages and car design ads and Internet Web pages that are both effective and cost efficient.
Printers
Businesses that employ or contract with highly trained specialists who prepare artwork for reproduction, operate digital scanning machines to make color separations and plates, operate presses and collating machines, and run binderies.
Production Houses
Companies that specialize in film or video production.
Research Suppliers
Companies that conduct and analyze marketing research.
Utility
A product's ability to satisfy both functional needs and symbolic or psychological wants. A product's problem solving potential may include form, task, possession, time, or place utility.
Exchange
The trading of one thing of value for another thing of value.
Target Market
The market segment or group within the market segment toward which all marketing activities will be directed.
Target Audience
The specific group of individuals to whom the advertising message is directed.
Behavioristic Segmentation
Method of segmenting consumers based on the benefits being sought.
User Status
Six categories into which consumers can be placed, which reflect varying degrees of loyalty to certain brands and products. The categories are sole users, semi-sole users, discount users, aware non-triers, trial/rejectors, and repertoire users.
Volume Segmentation
Defining consumers as light, medium, or heavy users of products.
Usage Rates
The extent to which consumers use a product: light, medium, heavy.
Purchase Occasion
A method of segmenting markets on the basis of when consumers buy and use a good or service.
Benefits
The particular product attributes offered to customers, such as high quality, low price, status, speed, sex appeal, and good taste.
Benefit Segmentation
Method of segmenting consumers based on the benefits being sought.
Geographic Segmentation
A method segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within a region.
Demographic Segmentation
Based on a population's statistical characteristics such as sex, age, ethnicity, education, occupation, income, or other quantifiable factors.
Geo-demographic Segmentation
Combining demographics with geographic segmentation to select target markets in advertising.
Psycho-graphic Segmentation
Method of defining consumer markets based on psychological variables including values, attitudes, personality, and lifestyle.
Psycho-graphics
The grouping of consumers into market segments on the basis of psychological makeup--values, attitudes, personality, and lifestyle.
Primary Motivation
The pattern of attitudes and activities that help people reinforce, sustain, or modify their social and self-image. An understanding of the primary motivation of individuals helps advertisers promote and sell goods and services.
Business Markets
Organizations that buy natural resources, component products, and services that they resell, use to conduct their business, or use to manufacture another product.
Resources
A term in the VALS (profile) typology relating to the range of psychological, physical, demographic, and material capacities that consumers can draw upon. The resource axis includes education, income, self-confidence, health, eagerness to buy, and energy level.
North American Industry Classification System Codes
Method used by the U.S. Department of Commerce to classify all businesses. The NAICS codes are based on broad industry groups, subgroups, and detailed groups of firms in smaller lines of business.
Primary Demand Trend
The projection of future consumer demand for a product category, based on past demand and other market influences.
Target Marketing
The process by which an advertiser focuses its marketing efforts on a target market.
Target Market
The market segment or group within the market segment toward which all marketing activities will be directed.
Product Concept
The consumer's perception of a product as a "bundle" of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs.
Marketing Mix
Four elements, called the 4P's that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy.
Product Element
The most important element of the marketing mix: the good or service being offered and the values associated with it -- including the way the product is designed and classified, positioned, branded, and packaged.
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.
Early Adopters
Prospects who are most willing to try new products and services.
Primary Demand
Consumer demand for a whole product category.
Introductory Phase
The initial phase of the product life cycle (aka pioneering phase) when a new product is introduced, costs are highest, and profits are lowest.
Pull Strategy
Marketing, advertising, and sales promotion activities aimed at inducing trial purchase and repurchase by consumer.
Push Strategy
Marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers, retailers, and salespeople.
Growth Stage
The period in a product life cycle that is marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases.
Maturity Stage
The point in the product life cycle when the market has become saturated with products, the number of new customers has dwindled, and competition is most intense.
Selective Demand
Consumer demand for the particular advantages of one brand over another.
Decline Stage
The stage in the product life cycle when sales begin to decline due to obsolescence, new technology, or changing consumer tastes.
Position
The way in which a product is ranked in the consumer's mind by the benefits it offers, by the way it is classified or differentiated from the competition, or by its relationship to certain target markets.
Perceptible Differences
Differences between products that are visibly apparent to the consumer.
Hidden Differences
Imperceptible but existing differences that may affect the desirability of a product.
Induced differences
Distinguishing characteristics of products effected through unique branding, packaging, distribution, merchandising, and advertising.
Branding
A marketing function that identifies products and their source and differentiates them from all other products.
Brand
That combination of name, words, symbols, or design that identifies the product and its source and distinguishes it from competing products - the fundamental differentiating device for all products.
Individual Brand
Assigning a unique name to each product a manufacturer produces.
Family Brand
The marketing of various products under the same umbrella name.
National Brands
Product brands that are marketed in several regions of the country.
Private labels
Personalized brands applied by distributors or dealers to products supplied by manufacturers. Private brands are typically sold at lower prices in large retail chain stores.
Licensed Brands
Brand names that other companies can buy the right to use.
Brand Equity
The totality of what consumers, 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.
Copy Points
Copy-writing themes in a product's advertising.
Price Element
In the marketing mix, the amount changed for the good or service -- including deals, discounts, terms, and warranties. The factors affecting price are market demand, cost or production and distribution, competition, and corporate objectives.
Psychological Pricing
Using price as a means of influencing a consumer's behavior or perceptions; for example, using high prices to reinforce a quality image, or selling at $2.99 instead of $3.00 to make a product appear less expensive.
Place (distribution) Element
How and where customers will buy a company's product; either direct or indirect distribution.
Direct Distribution
The method of marketing in which the manufacturer sells directly to the customers without the use of retailers.
Network Marketing
A method of direct distribution in which individuals act as independent distributors for a manufacturer or private-label marketer.
Reseller
Businesses that buy products from manufacturers or wholesalers and then resell the merchandise to consumers or other buyers; also called middlemen. the most common examples of resellers are retail stores and catalog retailers.
Distribution Channel
The network of all the firms and individuals that take title, or assist in taking title, to the product as it moves from the producer to the consumer.
Intensive Distribution
A distribution strategy based on making the product available to consumers at every possible location so that the consumers can buy with a minimum of effort.
Selective Distribution
Strategy of limiting the distribution of a product to select duties in order to reduce distribution and promotion costs.
Exclusive Distribution
The strategy of limiting the number of wholesalers or retailers who can sell a product in order to gain a prestige image, maintain premium prices, or protect other dealers, in a geographic region.
Vertical System
A centrally programmed managed system that supplies or otherwise serves a group of stores or other businesses.
Retail Cooperative
A group of independent retailers who establish a central buying organization to acquire discounts from manufacturers and gain economies from joint advertising and promotion efforts.
Franchising
A type of vertical marketing system in which dealers pay a fee to operate under the guidelines and direction of the parent company or manufacturer.
Promotion (communication) Element
Includes all market-related communications between the seller and the buyer.
Marketing Communications
The various efforts and tools companies use to initiate and maintain communication with customers and prospects, including solicitation letters, newspaper ads, event sponsorships, publicity, telemarketing, statement stuffers, and coupons.
Source
The party that formulates the idea, encodes it as a message, and sends it via some channel to the receiver.
Message
In oral communication, the idea formulated and encoded by the source and sent to the receiver.
Encoded
Translating an idea or message into words, symbols, and illustration.
Semiotics
The study of how humans use words, gestures, signs, and symbols to convey feelings, thoughts, ideas, and ideologies.
Channel
Any medium through which an encoded message is sent a receiver, including oral communication, print, media, TV, and the internet.
Personal Channel
Means of communication that involve direct contact between parties, such as personal selling.
Non-Personal Channels
Means of communication that don't involve interpersonal contact between the sender and the receiver. Examples would include advertising, publicity, and sales.
Receiver
In oral communication, this party decodes the message to understand it.
Decode
to interpret a message by the receiver.
Noise
The sender's advertising message competing daily with hundreds of other commercial and non-commercial messages.
Feedback
A message that acknowledges or respondents to an initial message.
Interactive Media
Media such as the Internet and interactive TV that permit consumers to give instantaneous real-time feedback on the same channel used by the original message sender.
Consumer Behavior
The activities, actions, and influences of people who purchase and use goods and services to satisfy their personal or household needs and wants.
Consumer Decision Process
The series of steps a consumer goes through in deciding to make a purchase.
Personal Processes
The three internal, human operations--perception, learning, and motivation- that govern the way consumers discern raw data (stimuli) and translates them into feelings, thoughts, beliefs, and actions.
Interpersonal Influences
Social influences on the consumer decision-making process, including family, society, and cultural environment.
Non-Personal Influences
Factors influencing the consumer decision-making process that are often out of the consumer's control, such as time, place, and environment.
Evaluation of Alternatives
Choosing among brands, sizes, styles, and colors.
Post-Purchase Behavior
Determining whether a purchase has been a satisfactory or unsatisfactory one.
Perception
Our personalized way of sensing and comprehending stimuli.
Stimulus
Physical data that can be received through the senses.
Perceptual Screens
The physiological or psychological filters that message must pass through.
Physiological Screens
The perceptual screens that use the five senses to detect incoming data and measure the dimension and intensity of the physical stimulus.
Psychological Screens
The perceptual screens consumers use to evaluate, filter, and personalize information according to subjective standards, primarily emotions and personality.
Self-Concept
The images we carry in our minds of the type of person we are and who we desire.
Selective Perception
The ability of humans to select from the many sensations bombarding their central processing unit those sensations that fit well with their current or previous experiences, needs, desires, attitudes, and beliefs, focusing attention on some things and ignoring others.
Cognition
The point of awareness and comprehension of stimulus.
Mental Files
Stored memories in consumes' minds.
Learning
A relatively permanent change in thought processes or behavior that occurs as a a result of reinforced experience.
Cognitive Theory
An approach that views learning as a mental process of memory, thinking, and the rational application of knowledge to practical problem solving.
Conditioning Theory or Stimulus-Response Theory
The theory that learning is a trial and error process. Some stimulus triggers a consumer's need or want, and this in turn creates a need to respond.
Consumer Involvement
How important or relevant a decision is to a consumer.
Persusaion
A change in thought process or behavior that occurs when the change in belief, attitude, or intention is caused by promotion communication (advertising or personal selling).
Elaboration Likelihood Model
A theory of how persuasion occurs. It proposes that the method of persuasion depends on the consumer;s level of involvement with the product and the message.
Central Route to Persuasion
One of two ways communication can persuade consumers. When a consumer's level of involvement is high, the central route to persuasion is more likely. In the central route to persuasion, consumers are motivated to pay attention to product-related information, such as product attributes and benefits. Because of their high involvement, they tend to learn cognitively and comprehend the ad-delivered information at deeper, more elaborate levels.
Peripheral Route to Persuasion
When consumers have low involvement with a product or message, they have little reason to pay attention to or comprehend the central message of the ad. However, these consumers might attend to some peripheral aspects of an ad for its entertainment value. Consistent with stimulus-response theory, consumers may respond to the message at a later date, when a purchase occasion arises.
Attitude
The acquired mental position-positive or negative-regarding some idea or object.
Brand Interest
An individual's openness or curiosity about a brand.
Habit
An acquired or developed behavior pattern that has become nearly or completely involuntary.
Brand Loyalty
The consumer's conscious or unconscious decision-expressed through intention or behavior- to repurchase a brand continually. this is due perception that a brand has the right features, image, or quality at the right price.
Informal Motives
The negatively originated motives, such as problem removal or problem avoidance, that are the most common energizers of consumer behavior.
Needs and Wants
Needs-Are basic, instinctive, human forces that motivates us to do something.

Wants-Needs learned during a persons lifetime.
Hierarchy of needs
Maslow's theory that the lower biological or survival needs are dominant in human behavior and must be satisfied before higher, socially acquired needs become meaningful.
Negatively Originated Motives
Consumer purchase and usage based on problem removal or problem avoidance. To relieve such feelings, consumers actively seek a new or replacement product.
Positively Originated Motives
Consumers motivation to purchase and use a product based on a positive bonus that the product promises, such as sensory gratification, intellectual stimulation, or social approval.
Transformational Motives
Positively originated motives that promise to transform the consumer through sensory gratification, intellectual stimulation, and social approval.
Interpersonal Influences
Social influences on the consumer decision-making process, including family, society, and cultural enironment.
Reference groups
People we try to emulate or whose approval concerns us.
Opinion Leader
Someone whose beliefs or attitudes are respected by people who share an interest in some specific activity.
Culture & Subculture
A homogenous groups set of beliefs and attitudes, that are typically handed down. Subcultures are a segment of the overall culture with certain aspects that are noticeably different from the overall culture.
Evoked Set
The particular group of alternative goods or services a consumer considers when making a buying decision.
Evaluative Criteria
The standards a consumer uses for judging the features and benefits of alternative products.
Cognitive Dissonance
The theory that people try to justify their behavior by reducing the degree to which their impressions or beliefs are inconsistent with one another.
FCB Grid
A two dimensional model that categorizes consumer products into four quadrants based on "high involvement," "low involvement," and "think," and "feel." By positioning brands on the grid, an agency can determine the appropriate advertising.
Kim-Lord Grid
A variation of the FCB grid, which allows for the fact that the level of consumer involvement in a product does not have to be high "think," and low "feel," but can be high or low in both categories.
Market Research
The systematic gathering, recording, and analysis of information to help managers make marketing decisions.
Advertising Research
The systematic gathering and analysis of information specifically to facilitate the development or evaluation of advertising strategies, ads and commercials, and media campaigns.
Advertising Strategy Research
Used to help define the product concept or to assist in the selection of target markets, advertising messages, or media vehicles.
Media Research
The systematic gathering and analysis of information on the reach and effectiveness of media vehicles.
Pretesting
Testing the effectiveness of an advertisement for gaps or flaws in message content before recommending it to clients, often conducted through focus groups.
Posttesting
Testing the effectiveness of an advertisement after it has been run.
Marketing Information Systems
A set of procedures for generating an orderly flow of pertinent information for use in making marketing decisions.
Informal Research
The second step in the research process, designed to explore a problem by reviewing secondary data and interviewing a few key people with the most information to share.
Primary Data vs. Secondary Data
Research information gained directly from the marketplace versus information that has previously been collected or published.