Advertising 380 Final Exam

Front 1

What is Direct Marketing?

Back 1

Direct marketing is a multichannel system of marketing that uses a variety of media to connect sellers/customers who deal with each other directly rather than through an intermediary such as a wholesaler or retailer. It uses an interactive communication model and is designed to elicit an immediate response

Front 2

Name all of the tools of DIrect Marketing:

Back 2

Catalogs, direct mail, email, telemarketing, direct response advertising, the internet and new media

Front 3

What is the focus of most Direct Marketing communications?

Back 3

Research and database building

Front 4

What are the advantages of Direct Marketing over indirect marketing?

Back 4

Accountability. Direct marketing describes this strength as the ability to track, measure, and optimize marketing communication

Front 5

Name examples of contact elements that can be included in direct response advertising:

Back 5

A toll-free phone number, an order coupon, a website or email address

Front 6

What is prospecting?

Back 6

A technique for mining information in a database to identify prospective buyers

Front 7

List all of the things which are typically part of the offer if direct marketing:

Back 7

Consists of a description of the product, terms of sale and payment, delivery, and warranty information

Front 8

Describe the fulfillment step in the direct marketing process:

Back 8

Responding to customer's responses by delivering the product to the customers who ordered it

Front 9

Who are the four main players in direct response marketing?

Back 9

(1) Advertisers who use direct response to sell products or services (2) agencies that specialize in direct-response advertising (3) the media that deliver messages by phone, mail, or the web; and (4) consumers who are the recipients of the information and sometimes the initiator of the contact.

Front 10

What is a direct mail piece?

Back 10

A complex package of printed pieces in which the message must move the reader through the entire process, from generating interest to creating conviction and including a sale. The package usually consists of an outer envelope, a letter, a brochure, supplemental flyers or folders, and a reply card with a return envelope. These can be one page flyers, multi-panel folders, multi-page brochures, or spectacular broadsheets that fold out like maps big enough to cover the top of a table.

Front 11

What is the average response rate for a direct mail offer?

Back 11

It can vary from 0.1 to 50 percent, but it's typically in the 2-3 percent range.

Front 12

Which medium spends the most on direct marketing dollars?

Back 12

Of those organization that use direct marketing, Direct Mail is the most popular method, with more than 75 % compared to the next largest category, which is 64% for email.

Front 13

Does every state in the United States have a "do not call" list?

Back 13

Yes- there were more than 149 million people registered on the state and national "do not call" list by 2007

Front 14

Is radio an appropriate medium for direct response advertising?

Back 14

Yes- radios big advantage is its wide targeted audience. Radio is often used to supplement other forms of direct response

Front 15

What are the steps of the direct marketing process?

Back 15

(1) Objectives/strategies (2) The offer (3) Response/order (4) Fulfillment (5) Relationship building

Front 16

Describe a compiled list:

Back 16

A list of some specific category, such as sports car owners, new home buyers, graduating seniors, new mothers, association members, or subscribers to a magazine, book club, or record club

Front 17

What is a service firm?

Back 17

Service firms specialize in supplying printing, mailing, list brokering, and data management, as the Melissa Data Web site illustrates

Front 18

What is sales promotion?

Back 18

Marketing activities that add value to the product for a limited period of time to stimulate consumer purchasing and dealer effectiveness

Front 19

Who is the target audience of sales promotion?

Back 19

Consumer, trade, and sales force

Front 20

What is the ultimate goal of sales promotion?

Back 20

To encourage action or build brand awareness

Front 21

What are the types of consumers promotions?

Back 21

Price deals, coupons, rebates and refunds, sampling, contests and sweepstakes, premiums, and specialities

Front 22

What is a banded pack?

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More units of a product sold at a lower price than if they were bought at the regular single-unit price. Sometimes the products are physically banded together such as bars of soap or six packs of soft drinks.

Front 23

What is a price deal?

Back 23

A temporary reduction of the price of a product

Front 24

What is a rebate and what is a refund?

Back 24

Rebate: a sales promotion that allows the customer to recover part of the product's cost from the manufacturer in the form of cash.
Refund: an offer by the marketer to return a certain amount of money to the consumer who purchases the product

Front 25

Describe a game:

Back 25

A type of promotional sweepstakes that encourages customers to return to a business several times to increase their chance of winning

Front 26

Who does sales promotion target?

Back 26

They target three audiences of promotion: consumer, trader, and sales force

Front 27

What are the chief reasons for the growth of sales promotions?

Back 27

Pressure for short-term profits, Need for accountability: Sales promotions are easy to track and evaluate. Escalation of traditional media cots: Promotions cost less and deliver tangible results. Easier and quicker to determine if objectives have been met: Usually, there’s an immediate response

Front 28

What are the most common types of trade deals?

Back 28

Point-of-purchase displays (POP), Retailer (dealer) kits, trade incentives and deals, contests, and trade shows and exhibitions

Front 29

Describe Guerilla marketing:

Back 29

A form of unconventional marketing,such a chalk messages on a sidewalk, that are often associated with staged events

Front 30

What are the disadvantages of promotions?

Back 30

Sales promotion's price deals actually negate all their hard work by diverting the emphasis on price rather than brand. The result, sales promotion critics complain,is a brand-insensitive consumer. Price promotion undercuts the value pillar

Front 31

Is advertising needed to support promotions?

Back 31

It can help in the long run. Sales promotions illicit quick results. Advertisers are exploring marketing communication forms that cost less and produce immediate, tangible results,sales promotion does all of that

Front 32

Define what sales promotion does:

Back 32

The media and non-media marketing pressure applied for a predetermined limited period of time at the level of consumer, retailer, or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability

Front 33

What is a bonus pack?

Back 33

Type of consumer promotion. Getting 25% more chips in a bag of chips at the same price

Front 34

Describe a manufacture-sponsored coupon:

Back 34

A coupon at any outlet carrying the product

Front 35

What type of consumer promotion is a contest?

Back 35

Trade promotion

Front 36

What type of premium is a self-liquidating premium?

Back 36

A self-liquidating premium usually requires that a payment is mailed in along with proof of purchase before the customer receives the premium. The payment is sufficient to cover the cost of the premium

Front 37

What are spiffs?

Back 37

A monetary bonus that is given to the sales person based on units the sales person sells over a period of time

Front 38

Define publics:

Back 38

All groups of people with which a company or organization interacts with

Front 39

List the types of organizations that practice public relations:

Back 39

Companies, governments, trade and professional associations, nonprofit organizations, the travel and tourism industry, educational systems, labor unions, politicians, organized sports, and the media

Front 40

Define opinion leaders:

Back 40

Important people who influence others

Front 41

What does goodwill do for an organization?

Back 41

It gives a well-informed public a positive attitude toward an organization. It is the primary goal of most public relations programs

Front 42

Which aspect of public relations carries no direct media costs?

Back 42

Publicity

Front 43

What are employee relations?

Back 43

Programs that communicate information to employees

Front 44

What is reputation management?

Back 44

It is public relations efforts to strengthen the trust that stakeholders have in an organization

Front 45

Public relations tools are divided into which two categories?

Back 45

Controlled media and uncontrolled media

Front 46

What is public relations primarily used for?

Back 46

To make changes in the public's knowledge, attitudes, and behaviors related to a company, brand, or organization

Front 47

Are opinion leaders important targets for public relations efforts?

Back 47

Yes- they are important people who influence others

Front 48

What is the objective of public relations for a company?

Back 48

Creating a corporate brand; shaping or redefining a corporate reputation; positioning or repositioning a company or brand; moving a brand to a new market or global market; launching a new product or brand; disseminating news about a brand, company, or organization; providing product or brand info; changing stakeholder attitudes, opinions, or behaviors about a brand or company; creating stronger brand relationship with key stakeholders, such as employees, shareholders, and the financial comunity, government, members, and the media; creating high levels of customer(member) satisfaction; creating excitement in the market place; creating a buzz; involving people with the brand, company, or organization through events and other participatory activities; Associating brands and companies with good causes.

Front 49

What is the area that focuses on media contacts?

Back 49

Media relations

Front 50

Does public relations have a role in supporting IMC efforts that focus on a product's sales?

Back 50

In many companies, advertising and public relations are separate, uncoordinated functions. People working in PR are often trained as journalists, with little background in marketing, and they focus on corporate image rather than product sales

Front 51

What is a gap analysis used for?

Back 51

Measures the differences in perception and attitudes between groups or between the organization and its publics, may be part of the analysis

Front 52

Define who a stakeholder is:

Back 52

People who have a stake, financial or otherwise, in a company or organization

Front 53

Describe what someone who does media relations does:

Back 53

Initiates publicity and provides pertinent information to the media

Front 54

What is involvement strategy?

Back 54

Public relations uses participation to intensify stakeholder involvement with a company or brand. Involvement can create interest and a feeling of excitement, but more importantly it can drive loyalty

Front 55

What is advocacy advertising?

Back 55

A type of corporate advertising that involves creating advertisements and purchasing space to deliver specific, targeted messages

Front 56

What is retail marketing about?

Back 56

Retail advertisement has two missions: (1) selling the brand of the retail store and (2) selling individual branded items to store carriers

Front 57

What is advertising targeted at consumers who live close to a retail store?

Back 57

Retail targeting

Front 58

What is the primary objective of retail advertising?

Back 58

To build store traffic, which advertising does by featuring reduced prices on popular items and promoting an appealing store image and shopping experience

Front 59

What are ad allowances?

Back 59

In cooperative advertising, funds are provided by manufacturers to retailers who feature the manufacturer's products in retailers' local advertising

Front 60

What is a dealer tag?

Back 60

Time left at the end of a manufacturer's TV or Radio commercial to insert local retail store information

Front 61

What is the most common method of communicating with business buyers?

Back 61

Personal selling

Front 62

Name all the types of business-to-business advertising:

Back 62

Industrial advertising, government advertising, trade/channel advertising, professional advertising, and agricultural advertising

Front 63

What are shoppers?

Back 63

Free-distribution newspapers retailers use to attract customers

Front 64

Who is the largest purchaser of industrial goods in the United States?

Back 64

Federal, state, and local governments

Front 65

What is the primary marketing communication tool used in business-to-business marketing?

Back 65

Direct marketing is widely used because most target audiences are smaller than the audience for many consumer brands; therefore, B2B marketers can target their messages and greatly minimize media waste

Front 66

Vertical business publications target what audience?

Back 66

People who hold different positions within the same industry

Front 67

Why do nonprofit organizations undertake public communication campaigns?

Back 67

They are undertaken as a conscious effort to influence the thoughts and/or actions of the public

Front 68

What is a high-context culture?

Back 68

The meaning of a message is dependent on context cues

Front 69

Why use geography to target consumers?

Back 69

(Think globally, act locally) Advertisers have to consider the differences among countries including local culture, stage of economic and industrial development, media/research availability and research restictions. However focusing on simalarities in consumers is also important so many advertisers use a combination approach in order to make campaigns relevent to the audience its being shown to.

Front 70

What are franchises?

Back 70

Local owners may pay a percent of sales to headquarters to help pay for national advertising. These stores are generally required to spend a certain percent of their sales to do local advertising

Front 71

What are the differences between retail and brand advertising?

Back 71

Retailers sell not only a range of product brands, but also sell themselves as destinations for buying a selection of products

Front 72

Define cooperative advertising:

Back 72

Also called Co-op advertising, it is an arrangement between manufacturers and retailers in which manufacturers reimburses all or part of the cost for the retailers advertisement

Front 73

What is institutional retail advertising?

Back 73

Advertising that focuses on the image of the company rather than the selling merchandise

Front 74

What are preprints?

Back 74

Advertising circulars furnished by a retailer for distribution as free-standing inserts in newspapers

Front 75

What is the final section in a campaign plan?

Back 75

Diagnostic research is done to see the final results and actual effectiveness of the campaign

Front 76

What is evaluation used for?

Back 76

After companies pretest an ad, they can compare its score with scores from comparable ads. Norms allow the advertiser to tell whether a particular advertisement is above or below average for the brand or its product category

Front 77

What is post test research?

Back 77

Evaluates impact after the campaign is over the ad has run. Post campaign research encompasses benchmark or baseline studies to gauge movement. These can be research company norms, or they can be based on previous campaigns by this brand

Front 78

What is diagnostic research?

Back 78

tests brand recall, main idea, attitude statements (importance, uniqueness, believability)

Front 79

What are photo boards?

Back 79

Still photos arranged as a story that can test the commercials as storyboard ideas

Front 80

What is an attitude?

Back 80

A learned predisposition that we hold toward an object, person, or idea

Front 81

When does evaluative research occur?

Back 81

Before, after, and during an ad or campaign

Front 82

What are tracking studies?

Back 82

Studies that follow the purchase of a brand or the purchases of a specific consumer group over time

Front 83

Are likability tests better able to predict sales impact than awareness, recall, communication, or persuasion measures?

Back 83

Yes- A study by the Advertising Research Foundation compared a variety of different copy-testing methods to see if any of them were better able to predict sales impact. Surprisingly, it wasn't awareness, recall, communication, or persuasion measures that won out, but likability tests

Front 84

Does single-source research allow researchers to come closer to showing a casual relationship between advertising and sales?

Back 84

Yes- Single-source research companies arrange to have commercials delivered to a select group of households (HH) within a market, comparing it to a control group of HHs. Purchase behavior of each group of HHs is collected by scanners in local stores. Because advertising is the only manipulated variable, the methods permit a fairly clear reading of cause and effect

Front 85

What is another way to look at advertising return on investment (ROI)?

Back 85

Another way to look at it is the cost-to-sale ratio

Front 86

Is response per thousand an appropriate measure for evaluating direct response advertising?

Back 86

Yes- the efficiency of a direct response offer is measured in terms of response per thousand (RPM)

Front 87

What is concurrent research?

Back 87

Using tracking studies and test marketing monitors the way the campaign is unfolding and how the message and media are working

Front 88

What is concept testing?

Back 88

Compares the effectiveness of various message strategies and their creative ideas

Front 89

What is a coincidental survey?

Back 89

Most often used with broadcast media, they are random calls that are made to individuals in the target market that discover what stations they are tuned to. This research can determine whether the target audience has seen/heard the ad and what the info means to them regarding the brand