Advertising Principles And Practices Ch. 1, 3, 5

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AAAA (American Association of Advertising Agencies)

Back 1

An org of leading US advertising agencies

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AAF (American Advertising Federation)

Back 2

An association of advertising clubs, advertisers, agencies, media, and allied companies, with the objective of making advertising more effective for business and more useful to the public

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ANA (Association of National Advertisers)

Back 3

A national org of advertisers with a membership made up mostly of larger manufacturers

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Brainstorm

Back 4

a technique where participants begin the creative idea generating process by sharing ideas in an uncritical atmostphere. The only judgements allowed are positive ones. Separates the creative process from the evaluative process.

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Brand management

Back 5

system of running competing brands of products within the same company. Each brand group is a team that operates in a relatively independent marketing org within a larger org while using common resources.

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Caveat emptor

Back 6

"Let the buyer beware" (Latin). A key component of capitalist theory and holds that the buyer alone is responsible if dissatisfied.

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Comparison advertising

Back 7

a controversial method of advertising first discouraged by major agencies, larger advertisers, and trade groups, but supported by the Federal Trade Commission and consumers. It was legalized in 1980 when Congress restricted the FTC's power to monitoring deceptive ads.

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Consumer movement

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launched in 1927 when Consumer's Research, organized with the purpose of informing and lobbying for the consumer, emerged and grew to 45,000 members by 1933.

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Copeland Bill

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gave the FDA power over the manufacture and sale of drugs. The ad industry opposed the bill for almost a decade because it originally threatened to extend the FDA's regulatory power over labels and ads

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Creative team

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approach to creating advertising using a combo of writer and art director who develop ad concepts where the visual and verbal elements reinforce each other so that the result is greater than the sum of its parts.

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Flow production

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manufacturing machinary that enabled factories to turn huge amounts of raw materials into goods like soap, cigarettes, matches, breakfast cereal and canned goods.

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Hard sell

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advertising style that relies on a structured argument as opposed to an emotional appeal. Also known as push advertising or reason why

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ideas

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"an idea is a new combination of old elements"

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image

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advertising style that relies heavily on aesthetics and often includes an emotional appeal. Also known as pull advertising or soft sell.

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Inherent drama

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an approach to creative development that finds the essence of the product and dramatizes that essence.
"There's almost always something there, if you can find the thing about the product that keeps it in the marketplace"

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Intellectual capital

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Value derived from ideas, patents, trademarks, and other info-driven content. The increasing value of conceptual content has become one of the driving forces in our econ, powering industries such as software and entertainment.

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Linotype

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system of setting type in which strips of metal are cast for each line of type. This technology revolutionized print media.

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Marketing-driven

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the shift in emphasis from selling what is produced to designing and selling products that satisfy a consumer need or market demand.

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Market segmentation

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viewing a larger market of people with different demands as many smaller homogenous markets

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Motivation research

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study of consumer behavior and motivation

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Soft sell

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a style of advertising referred to as "atmospheric" because the layouts are more artful and the copy more reflective, personal, and less direct than the reason why style.

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Subliminal advertising

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a discredited theory that advertising that appears below perceptual levels (brief flashes of type or barely audible words) can be unconsciously persuasive. It does not exist

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USP (Unique Selling Proposition)

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the central selling idea for an ad or commercial. A selling point matched with consumer benefit, expressed in a unique way.

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War Advertising Council

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the ad industry effort to help out during WWII, which accounted for approximately $1 billion in agency time and media space.

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Advertising

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a paid message concerning a legal product or service placed through the media by an identified sponsor.

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Advertising practice

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a recurring practice in advertising.
Ex) The use of pretty models to sell products and the use of small print to obscure the details of care costs/

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Affirmative disclosure

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The FTC uses affirmative disclosure rulings to force businesses to include health and safety information, credit terms and agreements, product ingredients, and warning labels. These rulings are designed to prevent deception before it can harm consumers.

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Anecdotal evidence

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the use of a story to make a point. The story may be true, but a single example does not necessarily prove the point.

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Cease and desist order

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legal order issued by an agency or court with jurisdiction that an ad must stop running immediately or fines will be assessed.

Front 30

Commercial speech

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a legal term for pain communicators, primarily advertising.

Front 31

Commercial speech doctrine

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The series of Supreme Court cases that have resulted in the current level of protection offered to advertising.

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Consumerism

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movement concerned with the rights of consumers

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Copyright

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The copyright act of 1976 is intended to "promote the progress of science and the useful arts" by protecting the creator's right to all profits. Copyright protection is limited to the life of the author plus 50 years (to provide for heirs: think Elvis and LIsa Marie). Copyright is thought to provide an incentive to create.

Front 34

Disclaimer

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a written statement intended to clarify claims made in the body copy of an advertisement

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Deontological ethics

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the evaluation of right and wrong based on intentions, regardless of outcomes. Deontological = intent

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Economics

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the study of enterprises and relationships involved in the exchange of goods and services

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Ethics

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The study of how people judge their own and other' conduct in terms of right or wrong

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Guarantee

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a promise by the manufacturer to correct defects according to the stated terms. Advertised guarantees must set forth the nature of the guarantee in terms of coverage: full, limited, or conditional. They must state how far the firm will go to correct the problems and set forth the conditions of coverage (ie original owners only). They must also set forth the extent or duration including time and wear limits, as well as the manner in which the guarantee will be performed (product replacement, repaired, or refunds)

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Idiomatic speech

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the use of slang or jargon in everyday speech

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Intellectual property

Back 40

unique expressions of ideas or concepts that are protected by law, primarily patent, copyright, or trademark

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Laissez faire

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status quo, leaving the status of the matter alone and choosing not to act in a manner to change it.

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Merchantability

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the implied claim that the product will work as expected if correctly used. Software is an interesting exception to this rule. Software is often shipped with bugs, and these bugs often prevent the software from fulfilling its promised function. (this might also be called fraud)

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Mitigate

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to reduce or lesson an effect

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Material claims

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any claim that affects a consumer's choice or behavior

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Normative expectations

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what a reasonable person might normally expect

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Persuasion

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An act of comm that seeks to convince another to voluntarily change, resolve, or formulate their opinions, feelings, or actions through the use of argument, reasoning, or entreaty.

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Physiological needs

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the basic requirements of life, including shelter, clothing, food, and water

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Policy

Back 48

a form of unofficial guidelines that private firms, indivs, and orgs create for internal (and in some cases external) conduct.
Policy is NOT regulation

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Puffery

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obvious exaggerations and outrageous statements about a product or service made by the seller, not intended to be taken seriously. The use of puffery in an ad typically refers to statements of opinion, exaggerations, overstatements, and the use of superlatives.
Ex) "Out of this world flavor"
"Coke is the real thing"
"The world's best aspirin"

Front 50

Reasonable basis

Back 50

a rationale (or foundation) for making claims that advertisers must have prior to making any claims about a product or service

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Reasonable consumer

Back 51

a standard for judgement. The center of whether or not a claim is deceptive or merely puffery often relies on the consumer's likely interpretation. The FTC created a "test" to make sure they consider questions of advertising deception from the viewpoint of a reasonable consumer. This is pretty much a circular definition-- a reasonable consumer is one who is acting reasonably (not as an expert nor as an idiot) at the time under normal circumstances.

Front 52

Reasonable skepticism

Back 52

the process of persuasive comm is 2 way. The persuader has a moral duty to inform using rational techniques, and the audience has the moral responsibility for questioning the presentation. This questioning on the part of the audience is the moral duty called "reasonable skepticism"

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Regulation

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rules imposed by govt entities to manage the conduct, or econ or social effects of a business or service. In our context, this means advertising. In the US, govt does not tell advertisers what they may say in ads, only what they may not say.

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Society

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The org of a group of indivs with traditions that have evolved into a culture. Society maintains itself by providing rules of behavior for indivs within what are called "norms". Our society includes govt, econ, and class structure.

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Sovereign consumers

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the assumption that consumers are rational, calculating, and deliberate and thus able to sort through competing messages to arrive at a reasoned choice that will maximize their own benefits. According to this assumption, sovereign consumers are not at the mercy of advertisers and do not need to be protected from any type of info

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Susceptibility

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the level of expertness or sophistication the typical consumer has in regard to product use or purchasing.
Ex) The FTC isn't likely to perceive medical doctors as highly susceptible to advertising claims and in great need of regulation to remedy any problem. However, the commission will apply a much stricter standard when the intended target of an ad is somehow disadvantaged (or susceptible), such as the elderly or children.
There is current discussion in this area related to ads for casinos and lotteries and people with gambling problems

Front 57

Teleological ethics

Back 57

the evaluation of right and wrong based on the social benefits derived by the outcome of an action without regard for the intent of the action.
Teleological = results

Front 58

Warranty

Back 58

A promise of performance, attributes, or benefits made by a manufacturer. It becomes a contract between the manufacturer and the consumer.
Ex) Kodak advertisements say that their film is free from defects in materials and workmanship.
An express warranty is a warranty based on an actual claim.
An implied warranty is any claim (visual or verbal) that, although not stating a claim, implies one.

Front 59

Account coordinators

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agency professionals with responsibility for keeping various aspects of an account or project on track. They may be a part of the account management team, the traffic department, or in small agencies, they may even serve as the main source of client contact.

Front 60

Account management

Back 60

a dept within an ad agency staffed with diff levels of managers (like account execs, management supervisors) who serve as the liaison between the agency and the client

Front 61

Account planning

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a relatively new, hybrid approach to research. Account planners are a new breed of researchers that are skilled in personal interviewing and are charged with being the consumer's rep in the development of the ad campaign.

Front 62

Accountability

Back 62

a combo of responsibility and results. As ad expenditures have increased, agencies and clients are more and more concerned with accountability issues.

Front 63

Art directors

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agency creatives with responsibility for the visual comm of advertising.

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Brand building

Back 64

one of an ad agency's major reasons for being -- doing whatever is necessary for growing a brand and making it more successful in the marketplace

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Broadcast business

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an important part of agency operations. It involves managing the dollars spent on broadcast production and then seeing that these projects are billed properly

Front 66

Conflict of interest

Back 66

a situation that occurs when an advertising agency is handling 2 or more clients that compete with one another.

Front 67

Consultants

Back 67

professionals who offer their unique experience and advice. Consultants to advertising may be used for agency operations, creative projects, strategy, cost-control analysis, or new business development

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Consumer insight

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a research approach that focuses on generating unique and useful perspectives on consumer behavior, beliefs, and motivation.

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Content development

Back 69

actions taken by advertisers and agencies to generate product placements and sponsorships, and to create original entertainment programs, films, sites, and games to serve as branded entertainment

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Copywriters

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agency creative professionals with responsibility for the verbal part of the comm

Front 71

Cost-plus fee

Back 71

an agency compensation agreement whereby the agency bills its costs plus a fair profit margin to its client.

Front 72

Creative boutiques

Back 72

agencies that limit their services to the conceptualization and production of creative executions

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Creative services

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a dept within an ad agency staffed with copywriters, art directors, producers, and supervisors who are responsible for creating and producing advertising and promo materials

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Creative strategy

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a document that contains the objectives, target audience description, consumer promise, key copy support points, and brand personality that the ad campaign must address

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Creative team

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usually 2 people, a copywriter and an art director, but there may be a larger grouping. Some agencies have added a computer professional to the team.

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Design houses

Back 76

similar to creative boutiques, with more of a graphic design emphasis. Work includes corporate projects such as corporate standards and annual reports in addition to marketing materials.

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Fee system

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a compensation agreement that specifies how and when an agency is to be paid without regard to media commission

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Fixed fee

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compensation agreement that specifies a fixed amount of money to be paid for certain services over a period of time

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Freelancers

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agency professionals, usually writers, art directors, or producers who are hired on a temporary basis. Some of these temporary relationships can last for many years

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Full-service agency

Back 80

an ad agency with the size, staff, and resources to provide four major departmental functions: account management, creative services, media planning and buying, and research

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Global agencies

Back 81

agencies that have offices in many different countries. They usually serve multi-national clients. They also have "local' accounts in those countries.

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Income

Back 82

the money an agency receives. May be commissions on media and production, fixed fees, compensation based on hourly rates, or a combo of these.

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In-house agency

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an ad agency or ad department owned and operated by the advertiser, having all the resources needed to create its own ad campaigns

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Integrated marketing communications

Back 84

the process of developing and implementing various forms of persuasive comm programs with customers and prospects over time.

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Local agencies

Back 85

ad agencies that serve clients in the markets in which they are located

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Markup

Back 86

a way agencies make money by adding an additional charge to the cost of production and other services. Traditionally, agencies have marked up these materials and services 17.65% of the net cost.

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Media billing(s)

Back 87

the amount of money an agency or client account places in media

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Media buying

Back 88

the implementation of the media plan (the purchase of media)

Front 89

Media buying services

Back 89

companies that specialize in handling media planning and buying for their clients

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Media commission

Back 90

a traditional system for agency compensation where the agency retains a percentage (usually 15%) of the media space and time it purchases for its clients

Front 91

Media planning and buying

Back 91

the 2 primary functions of an ad agency's media department

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Media plan

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the document that states how media dollars should be spent. A written course of action that tells how media will be used to achieve marketing objectives

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National agencies

Back 93

in the US, these are ad agencies that serve national advertisers. They may have a number of offices or only one.

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New business pitch

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may be a specific presentation to a client looking for an agency or a general presentation of agency credentials, or both. It usually refers to the meeting itself, but may refer to the materials prepared for that meeting

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Perceived value

Back 95

the perceived unique value or brand personality of a product or service

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Performance fee

Back 96

an agency compensation agreement that provides incentives for meeting the client's awareness or sales goals. Compensation is either increased or decreased depending on the results

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Pre-press

Back 97

preparation of print materials for production, often done in house at the agency

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Primary research

Back 98

research that gathers and analyzes original info from a sample or population

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Producers

Back 99

Professionals who have the responsibility of producing broadcast commercials. Producers work for advertising agencies and for production companies. You may have more than one producer on a job, one from the agency and one from the production house.

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Production

Back 100

a department within an ad agency responsible for the production of the copywriter and art director's work. May refer to either print production or broadcast production

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Promotion mix

Back 101

the various marketing comm disciplines a company may use to communicate with prospects and customers: advertising, PR, sales promotion, direct response, packaging, and personal selling

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Re-engineering

Back 102

The breakdown of traditional agency department walls then forming service-cluster teams to meet the varying needs of clients

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Regional agencies

Back 103

Ad agencies that have strength in a certain region. They may have an office or a number of offices in that region. They serve local, regional, and national clients.

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RFP

Back 104

Request for Proposal
A request from a client to a number of agencies to prepare an initial credentials presentation, which usually includes initial qualifications for the requesting client

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Secondary research

Back 105

research that consists of collecting info from already existing sources. Secondary research is done FIRST

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Service cluster teams

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a team within an agency staffed to provide a client with the services which best meet the client's needs

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Short list

Back 107

a list of agencies compiled by a client to compete for the client's account. This is often the 2nd stage of a review

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Sliding scale

Back 108

agency compensation that lowers the media commission percentage as the media budget increases

Front 109

Spec

Back 109

short for "speculative creative"
Ads, commercials, and promo materials that represent the agency's views of what the advertising should be

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Strategy review board

Back 110

a group of agency senior execs responsible for reviewing major new strategies and campaigns being developed for the agency's clients

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Traffic

Back 111

a dept within an agency staffed with account coordinators who are responsible for steering the various creative projects through the different agency departments and making sure approval procedures are followed and deadlines are met.

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Virtual office

Back 112

companies whose employees communicate with one another and their clients using the internet, allowing them to complete work outside the office and regular office hours.

Front 113

Multi-brand marketing

Back 113

marketing more than one brand.
Ex) GM offers car brands in different price ranges

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NARB (National Advertising Review Board)

Back 114

final authority of complaints registered against national advertisers = part of the industry's self regulation. Uses moral persuasion to stop undesirable practices.

Front 115

Positioning

Back 115

a marketing approach that considers how consumers perceive a product relative to competitive offerings.
1. Marketing comm approach that focuses on where the product resides (or could reside) within the mind of the consumer
2. Marketing that looks at the relative place of a brand in relationship to the competitive environment
3. The relationship between the perceptual attributes and benefits of a product and the primary target's lifestyle.

Front 116

Preemption

Back 116

an early advertising approach where a product feature common among all products in a category is claimed by a single manufacturer as the feature that distinguishes its brand
Ex) Lucky Strikes "it's toasted"

Front 117

Production-driven

Back 117

as capacity for flow production increased, manufacturers produced more products to sell. Early advertising helped manufacturers inform consumers about these products and move them out of the manufacturer's warehouses

Front 118

Pull advertising

Back 118

Soft sell, image
an ad style that emphasizes attracting consumers by pulling them into the message with an engaging or entertaining presentation

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Pure Food and Drug Act

Back 119

Passed in 1906
forces product labels to list active ingredients. The law did nothing to sanction deceptive advertising.

Front 120

Push advertising

Back 120

hard sell, reason why
a style of advertising that emphasizes building a strong logical sales proposition and pushing that message at the consumer often.

Front 121

Reason why

Back 121

a style of advertising where "logic, plus persuasion, plus conviction are all woven into a certain simplicity of thought-predigested for the average mind"

Front 122

Repositioning

Back 122

when products within the category change because of new technology, product positions can also shift. This may require the advertising to shift the product's position in the mind of the consumer as planning takes into consideration the changes in benefits offered.