Contemporary Advertising Chapter 6

Front 1

behavioristic segmentation  

Back 1

Method of determining market segments by grouping consumers into product-related groups based on their purchase behavior.

Front 2

benefit segmentation  

Back 2

Method of segmenting consumers based on the benefits being sought.

Front 3

benefits  

Back 3

The particular product attributes offered to customers, such as high quality, low price, status, speed, sex appeal, good taste, and so on.

Front 4

brand  

Back 4

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.

Front 5

brand equity  

Back 5

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.

Front 6

business markets  

Back 6

Organizations that buy natural resources, component products, and services that they resell, use to conduct their business, or use to manufacture another product.

Front 7

collateral material  

Back 7

All the accessory nonmedia advertising materials prepared by manufacturers to help dealers sell a product-- booklets, catalogs, brochures, films, trade-show exhibits, sales kits, and so on.

Front 8

communication element  

Back 8

Includes all marketing-related communications between the seller and the buyer.

Front 9

communications mix  

Back 9

A variety of marketing communications tools, grouped into personal and nonpersonal selling activities.

Front 10

cooperative (co-op) advertising  

Back 10

The sharing of advertising costs by the manufacturer and the distributor or retailer. The manufacturer may repay 50 or 100 percent of the dealer's advertising costs or some other amount based on sales.

Hint 10

None

Front 11

copy points  

Back 11

Copywriting themes in a product's advertising.

Front 12

decline stage  

Back 12

The stage in the product life cycle when sales begin to decline due to obsolescence, new technology, or changing consumer tastes.

Front 13

demographic segmentation  

Back 13

Based on a population's statistical characteristics such as sex, age, ethnicity, education, occupation, income, or other quantifiable factors.

Front 14

direct distribution  

Back 14

The method of marketing in which the manufacturer sells directly to customers without the use of retailers.

Front 15

direct marketing  

Back 15

A system of marketing in which companies build their own database of customers and use a variety of media to communicate with them directly such as through ads and catalogs.

Front 16

distribution channel  

Back 16

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.

Front 17

distribution element  

Back 17

How and where customers will buy a company's product; either direct or indirect distribution.

Front 18

equipment-based service  

Back 18

A service business that relies mainly on the use of specialized equipment.

Front 19

exclusive distribution  

Back 19

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.

Front 20

family brand  

Back 20

The marketing of various products under the same umbrella name.

Front 21

four Ps  

Back 21

See marketing mix.

Front 22

franchising  

Back 22

A type of vertical marketing system in which dealers pay a fee to operate under the guidelines and direction of the manufacturer.

Front 23

geodemographic segmentation  

Back 23

Combining demographics with geographic segmentation to select target markets in advertising.

Front 24

geodemographic segmentation  

Back 24

Combining demographics with geographic segmentation to select target markets in advertising.

Front 25

geographic segmentation  

Back 25

A method of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within the region.

Front 26

growth stage  

Back 26

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.

Front 27

hidden differences  

Back 27

Imperceptible but existing differences that may greatly affect the desirability of a product.

Front 28

individual brand  

Back 28

Assigning a unique name to each product a manufacturer produces.

Front 29

induced differences  

Back 29

Distinguishing characteristics of products effected through unique branding, packaging, distribution, merchandising, and advertising.

Front 30

intensive distribution  

Back 30

A distribution strategy based on making the product available to consumers at every possible location so that consumers can buy with a minimum of effort.

Front 31

introductory phase  

Back 31

The initial phase of the product life cycle (also called the pioneering phase) when a new product is introduced, costs are highest, and profits are lowest.

Front 32

licensed brands  

Back 32

Brand names that other companies can buy the right to use.

Front 33

market segmentation  

Back 33

Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product's utility.

Front 34

marketing mix  

Back 34

Four elements, called the 4Ps (product, price, place, and promotion), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy.

Front 35

maturity stage  

Back 35

That 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.

Front 36

national brands  

Back 36

Product brands that are marketed in several regions of the country.

Front 37

network marketing  

Back 37

A method of direct distribution in which individuals act as independent distributors for a manufacturer or private-label marketer.

Front 38

nonpersonal communication  

Back 38

Marketing activities that use some medium as an intermediary for communication, including advertising, direct marketing, public relations, collateral materials, and sales promotion.

Front 39

North American Industry Classification System (NAICS) codes  

Back 39

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 similar lines of business.

Front 40

people-based service  

Back 40

A service that relies on the talents and skills of individuals rather than on highly technical or specialized equipment.

Front 41

perceptible differences  

Back 41

Differences between products that are visibly apparent to the consumer.

Front 42

personal communication  

Back 42

Marketing activities that include all person-to-person contact with customers.

Front 43

position  

Back 43

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.

Front 44

price element  

Back 44

In the marketing mix, the amount charged for the good or service--including deals, discounts, terms, warranties, and so on. The factors affecting price are market demand, cost of production and distribution, competition, and corporate objectives.

Front 45

primary demand  

Back 45

Consumer demand for a whole product category.

Front 46

primary demand trend  

Back 46

The projection of future consumer demand for a whole product category based on past demand and other market influences.

Front 47

primary motivation  

Back 47

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.

Front 48

private labels  

Back 48

Personalized brands applied by distributors or dealers to products supplied by manufacturers. _______- are typically sold at lower prices in large retail chain stores.

Hint 48

None

Front 49

product concept  

Back 49

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. Also, as an element of the creative mix used by advertisers to develop advertising strategy, it is the bundle of product values the advertiser presents to the consumer.

Front 50

product element  

Back 50

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.

Front 51

product life cycle  

Back 51

Progressive stages in the life of a product-- including introduction, growth, maturity, and decline--that affect the way a product is marketed and advertised.

Front 52

psychographic segmentation  

Back 52

Method of defining consumer markets based on psychological variables including values, attitudes, personality, and lifestyle.

Front 53

psychographics  

Back 53

The grouping of consumers into market segments on the basis of psychological makeup--values, attitudes, personality, and lifestyle.

Front 54

publicity  

Back 54

The generation of news about a person, product, or service that appears in broadcast or print media.

Front 55

pull strategy  

Back 55

Marketing, advertising, and sales promotion activities aimed at inducing trial purchase and repurchase by consumers.

Front 56

purchase occasion  

Back 56

A method of segmenting markets on the basis of when consumers buy and use a good or service.

Front 57

push strategy  

Back 57

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. Inducements might include introductory price allowances, distribution allowances, and advertising dollar allowances to stock the product and set up displays.

Front 58

resellers  

Back 58

Businesses that buy products from manufacturers or wholesalers and then resell the merchandise to consumers or other buyers; also called middlemen. These businesses do not change or modify the goods before they resell them. Resellers make their profits by selling the goods they buy for more than they paid. The most common examples of resellers are retail stores and catalog retailers. Internet retailers comprise a growing portion of the reseller business segment.

Front 59

resources axis  

Back 59

A term in the Values and Lifestyles (VALS) 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.

Front 60

sales promotion  

Back 60

A direct inducement offering extra incentives all along the marketing route--from manufacturers through distribution channels to customers--to accelerate the movement of the product from the producer to the consumer.

Front 61

selective demand  

Back 61

Consumer demand for the particular advantages of one brand over another.

Front 62

selective distribution  

Back 62

Strategy of limiting the distribution of a product to select outlets in order to reduce distribution and promotion costs.

Front 63

services  

Back 63

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.

Front 64

special events  

Back 64

Scheduled meetings, parties, and demonstrations aimed at creating awareness and understanding for a product or company.

Front 65

target market  

Back 65

The market segment or group within the market segment toward which all marketing activities will be directed.

Front 66

target marketing process  

Back 66

The sequence of activities aimed at assessing various market segments, designating certain ones as the focus of marketing activities, and designing marketing mixes to communicate with and make sales to these targets.

Front 67

telemarketing  

Back 67

Selling products and services by using the telephone to contact prospective customers.

Front 68

usage rates  

Back 68

The extent to which consumers use a product: light, medium, or heavy.

Front 69

user status  

Back 69

Six categories into which consumers can be placed, which reflect varying degrees of loyalties to certain brands and products. The categories are sole users, semisole users, discount users, aware nontriers, trial/rejectors, and repertoire users.

Front 70

vertical marketing system (VMS)  

Back 70

A centrally programmed and managed system that supplies or otherwise serves a group of stores or other businesses.

Front 71

volume segmentation  

Back 71

Defining consumers as light, medium, or heavy users of products.