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Adertising Notes: Exam 3
Flashcards on various advertising topics
63
Other
Undergraduate 1
12/06/2007

Additional Other Flashcards

 


 

Cards

Term
Most relevant customers: RFM formula
Definition
Those who: bought recently, buy frequently, and spend the most money
Term

Size of direct marketing in terms of media spending

Definition
20% of all advertising spending in 2005
Term
How marketers obtain customer data
Definition

-Product registration

-Purchasable consumer lists

 

- Database:

  • Corporate memory of all important consumer info
  • Name, address, phone, email, purchase history
  • Allows marketer to select most relevant customers and target them
Term
Infomercials as direct response advertising
Definition

- Direct response advertising

- 60% of infomercial purchasers prefer it to store shopping

Term
Drawbacks of direct marketing
Definition

- bad reputation (negative attitude)

- lack of store experience

- lack of prestigious affiliation

- clutter

- privacy issues (do not call lists)

Term
Personal selling: Pros and Cons
Definition

Pros:

  • persuasive
  • instant feedback
  • flexibility
  • demonstration
  • relationship building
  • ensures distribution of new products

Cons:

  • labor intensive
  • costly
  • time consuming
  • poor reputation

 

Term
Role of personal selling in IMC
Definition

-Gathering information:

  • eyes and ears of company
  • can report customer reactions and trends

-Providing information

  • provide relevant information to consumer
  • consistency

- Fulfilling orders

  • advertising alone can't do this

- Building relationships

  • Trust
Term
What is a sales promotion?
Definition

- Direct inducement that offers extra incentives

- Aimed at accelerating product movement from producer to consumer

- over 50% of advertising/promotion goes to sales promotion

-expensive, but effectie

 

-ex) clearance, sales, red-tag events

Term
Sales promotion: pros and cons
Definition

Pros:

  • tangible, immediate, adds extra value to brand
  • maximizes sales volume
  • triggers action

Cons:

  • may hurt profits
  • negative effects on brand attitudes and marketing strategy
  • deal prone instead of brand loyal
Term
Incentives in pull strategy vs incentives in push strategy
Definition

-Incentives in pull strategy: consumers

 

-Incentives in push strategy: retailers

Term
What is PR?
Definition

- management of the relationships and communications with the public for the purpose of creating mutual good will

Term
What is a public in PR?
Definition

-a group of people whose needs must be satisfied by the organization

Term
PR vs Advertising
Definition

PR

  • unpaid media
  • no control
  • no repetition
  • high credibility
  • hard to measure results

Advertising

  • paid media
  • complete control
  • repetition
  • low credibility
  • precise reach and frequency
Term
Tools that PR practitioners use
Definition

-news releases / press releases

  • most widely uses
  • cover time-sensitive hard news

- press kits

  • supplements publicity with variety of info

- photos and audio visual materials

- publications

  • annual reports
  • house organs (internal and external)
Term
Sponsorships
Definition

-cash or in-kind donation to support a property in return for access to commercial potential associated with that property

  • sports, entertainment, nonprofit organizations, events

- alternative when advertising is restricted

-sponsorship is conditional

  • strategic philanthropy
Term
Benefits and drawbacks of a sponsporship
Definition

Benefits

  • public approval
  • involvement and participation
  • enhance corporate image
  • improve employee morale
  • cost efficient (wide brand exposure)

Cons

  • expensive to be a sole sponsor
  • sponsoring clutter (NASCAR)
  • hard to measure effect
Term
ambush marketing
Definition

-nonsponsor advertises with a sports event and gives a false impression that it is a sponsor

Term
cause-related marketing
Definition

- corporate partnership with a nonprofit organization or a charitable event (ex: RED)

-public may or may not respond favorably to cause-related marketing (ex: buy-less-crap)

Term
venue marketing
Definition

-donating a physical site to a school / city / etc

  • Coors Field
  • Minute Maid Park

- may purchase naming right

  • Dell Diamond
Term
purpose of corporate advertising
Definition

- aimed at increasing awareness of company and enhancing company image

- may enhance:

  • perceived product quality
  • perceived management competence
Term
the role of a marketing plan
Definition

- the goal is to create exchanges that satisfy the needs, wants, and objectives of consumers

- key is consumer-centricity

Term
objectives
Definition

- what marketer wants to achieve

 

-2 types:

  • needs-satisfying objectives
  • sales-target objectives
Term
strategies
Definition

-how to achieve objectives

-defines target market

-optimizes 4 p's: produce, price, place, promotion

Term
tactics
Definition

what actions to take to achieve the objectives

Term
needs-satisfying objectives
Definition

-what kinds of needs and how to satisfy them

Term
sales-target objectives
Definition
specific, quantitative goal within a certain time period
Term
top-down marketing
Definition

- fits most companies

- good for new product launches

- traditional marketing approach

 

situation analysis

marketing objectives

marketing strategy

marketing tactics

Term
bottom-up marketing
Definition

- suitable for small companies

- day-to-day short them decisions

- focus on a single, competitive tactic

- ex) Domino's Pizza

 

marketing results

marketing strategy

marketing tactics

Term
share of voice
Definition

- a company's relative promotional spending in the market

- market "shouting"

Term
relationship marketing
Definition

- "liveblood of the business is the consumer, not the product"

- creating, maintaining, and enhancing long-term relationships with customers and other stakeholders

- sale is not the end but the beginning in relationship marketing

Term
stakeholders
Definition

- employees

- investors

- retailers

Term
market share
Definition

    company's sales   

total sales in that market

Term
IMC approach to marketing
Definition

- everything a marketer does sends a message

- every contact between a consumer and a brand contributes to the consumer's brand concept

- every single marketing activity has a communication element in it

- communication is not part of marketing, marketing is a part of communcation

Term
sources of brand messages
Definition

- planned messages

- product messages

  • price and place

- service messages

  • customer service

- unplanned messages

  • employee gossip
  • news coverage (good or bad)
  • word of mouth

 

Term
requirements (or characteristics) of (advertising) objectives
Definition

- must be:

  • specific
  • realistic
  • measureable
Term
advertising objectives pyramid
Definition

[image]

- action: buy product / brand

- desire: want product / brand

- conviction: believe product features and benefits exist

- comprehension: know brand features and benefits

- awareness: know brand exists

Term
target audience > target market
Definition

- everyone who should know about the brand

- larger than target market

- includes purchasers and people that may influence purchaser's decision

Term
media types
Definition

- TV

- radio

- newspapers

- etc

Term
media vehicle
Definition

- more specific than media type

- certain category of a certain media type

- ex) 'Desperate Housewives,' 'NY Times,' 'People,' Google, Facebook

Term
advertising-sales relationship
Definition

- sales can be made without advertising

- advertising takes a long time

- market share increase related to marketing budget increase

- sales increase with additional advertising, but flattens at some point

- sales response takes time

- advertising durability is brief

- some level of minimum investment is necessary

Term
media plan
Definition

- how to direct advertising messages to the righty people in right place at right time

  • where to advertise
  • which media vehicle to use
  • what time to year to advertise
  • how often to advertise
Term
why is the importance of a media planner increasingly recognized
Definition

- increasingly complex media environment

- high demand for accountability

- requires:

  • analytical skills
  • creative mind
Term
increasing media options = fragmentation of audience
Definition

- consumers spending more time with media than ever before

- increase in time spent with consumer-supported media than advertising-supported media

- selective / partial consumption

- simultaneous use of media

- consumption of partial contents

Term
media cost increase
Definition

- advertising costs increased faster than inflation

- media vehicles with a big audience are sold at a premium

- :30 second spot on "American Idol" costs $700K

Term

media objectives: audience objectives

Definition

- define specific types of people the advertiser wants to reach

- sex, age, income, education, occupation, marital status, children, activities, etc

Term
media objectives: message distribution objectives
Definition

- message weight

- message distribution

- message continuity

Term
reach-frequency relationship
Definition

-reach: number of people or households exposed to a certain type of media at least once in a given period of time

 

-frequency: average number of times individuals of householes are exposed to an ad

 

-inverse relationship between reach and frequency

Term
continuity: continuous, flight, pulsing
Definition

- how to spread out media budget throughout a certain period of time

 

- continuous: ||||||||

- flighting: ||||___||||

- pulsing: ||||,,,,||||

Term
recency planning
Definition

- "advertising needs to be there when a consumer is ready to buy"

- to schedule ads when a consumer is likely to buy the product

Term
efficiency
Definition

- achieving objectives while minimizing the cost

Term
effectiveness
Definition

achieving objectives whatever the cost

Term
CPP
Definition

- cost per point

- cost it takes to reach 1% gross rating

Term
CPM
Definition

- cost per thousand

-      total cost       

# in audience x 1000

Term

pros and cons of each media type (newspapers, magazines, t, radio, internet, direct mail, outdoor / transit)

Definition

- newspapers: quick placement, local targeting, audience interest, timely

- magazines: high quality graphics / reproduction, prestige factor, color, selective target

- tv: sound, movement, demonstration, social dominance

- radio: intimacy, loyalty, quick changes, frequency, reproduced

- internet: immediate response, interactive, selective, global

- direct mail: measureable, 3-D, graphics, personal, adaptable

- outdoor / transit: local targeting, graphics, color, simple message, reproduction possible

Term
people in the creative team
Definition

- they encode message marketer wants to convey

 

- copy writer

- art director

- creative director

- "creatives"

Term
what makes great advertising?
Definition

- audience resonance

- a message that resonates with the audience

- "WOW!"

- strategic relevance

- message achieves advertising objectives

Term

what is a creative brief?

Definition

- guidelines for developing an ad

- brief statement of intended advertising strategy

- developed by account planning team

- determines what to say

- leaves how to say it up to creatives

Term
imaginary roles the creatives take on during creative process
Definition

- explorer

- artist

- judge

- warrior

Term
Seth Godin's talk
Definition

- creativity is everywhere

- creativity is important in all business and human functions

- "is it remarkable?"

- otaku

- design rules now

- dont be safe (safe = risky)

- very good is boring

Term
key driving forces in development of direct marketing
Definition

- 60% of women work outside of home

  • more income
  • less time to shop

- expanding use of credit cards

  • easier, faster transaction
  • credit-card security technology
Term
SWOT analysis
Definition

- Strength (internal)

- Weaknesses (internal)

- Opportunities (external)

- Threats (external)

 

- 4 categories used by advertising managers when reviewing a marketing plan

Term
product placement
Definition

- alternative advertising method

- compensated inclusion of branded products or brand identifiers with mass media programming

- Stephen Spielberg (ET & Reese's Pieces)

- Why? Consumers are tuning out (do-not-call lists, pop-up and spam blockers)

- offers new way to reach consumers

Term

sex appeal

Definition

- Sam Shahid (Calvin Klein, A&F)

- "Sex can be used for any product"

- criteria: physically attractive models, suggestive behavior, setting and photographic techniques, verbal elements

- prevalent in high circulation magazines, primetime tv, banner ads on high-traffic websites

- AIDA: attention, interest, desire, action

- "distraction effect": pay more attention to sex-content than brand/product info

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