Advertising Literacy Midterm Flashcards
PASS
🍓 Sku
Number of different items on the shelf
(Shampoos, Cereals, Soaps, etc)
🍓 E-Tailers
Large online catalogues that provide shipping (Amazon, Walmart)
🍓 Advertising
Untraceable, 3000 BC, Started as exchange of information: Signs & Trademarks)
🍓 Advertising Time Consumption
Radio: 40 minutes, TV 60%, Papers 60%, Magazines 80%
🍓 Where can we find advertising?
Books, novels, movies, social media
🍓 Social Media Advertising
Benefits from knowing the audience, large profits made off advertisers & search engines
🍓 Search Engines - Google Story
2 men began Google 25 years ago. Catalogued all internet knowledge. Systemized by keywords, page ranks, algorithms. Began selling higher search spots to advertisers in 2024 using this system.
🍓 Logos
Free advertising and Flexing (Nike, Adidas, Supreme)
🍓 Attention Strategy
Advertisers strive to go unnoticed but constantly present. Attack the automatically processed subconcious.
🍓 Puffery
Appear to make a strong claim that isn’t actually a claim. (Selling insurance = selling the unknown/fear)
🍓 Standard of Living
Consumption rises = advertisers increased ability to make more products of high quality that cost less to make.
🍓 Consequences
Debt increase of 38% in U.S (Credit cards, mortgage) Shopping obsessions, over consumption, storage facilities…
🍓 Assets
Things you own (House, Car, Paintings etc)
🍓 Psychology in Advertising
Advertisers try to make viewers absorb their messages into their deep subconscious
🍓 16 Key Factors in the Growth of Advertising Industry (TD,MPP,BP,ICD,NM,PAA,FR,IO,PP,ID,CC,GM,PS,CS,LTM,NM)
1.Technological Development
2.Mass production of products
3.Branding and Packaging
4.Increasing Consumer demand
5.National Markets
6.Professional Advertising Agencies
7.Formal Research
8.Image Orientation
9.Psychological Positioning
10.Integration of Databases
11.Consolidation of Companies
12.Globalization of Markets
13.Promotional Support
14.Consumer
Segmentation
15.Long Tail Marketing
16.Neuromarketing
🍓 Technological Development
Technology makes advertising more successful. Engineering: Spreading information further, better and faster: Movable type writers, photography, radio, television, then the internet.
🍓 Mass Production of Products (1800S)
1800s:Factories producing 100s of products at once, sped up production, automated steps, more income, more spending money
🍓 Branding and Packaging (Oats and Soaps)
Seperating yourself from competitors: Quaker oats by Henry Croell (put his name and a picture on his barrells) People are willing to pay/trust more. Ivory Soap by Harley Procter: So pure it floats!
🍓 Increasing Consumer Demand (Hint:Future & Transportation)
Producers must keep making new products to keep people interested and buying. William Sloane cars (seasonal, new colors, new styles) Made advertisers look to the future, next years sales, new consumption patterns ->Created the need for transportation of products
🍊National Markets
Fed Gov gave people land in exchange for building railroads. Entrepreneurs used the rail as a distribution system. Told people where to find their products via magazines.
🍊Mail (NM)
10 cent stamps with garuntee of 2-3 day delivery, advertisers did this to send magazines cross country for 1 cent
🍊Professional Advertising Agencies
Entrepreneurs in advertising: Volney Palmer bought magazine pages for a 15% discount and sold them to different manufacturers, he helped them design ads and where to deliver them.
🍊Formal Research (1900s)
Manufacturers + Advertisers + Engineers: Information as gold: Finding every little detail to maximize profits. Building conveyer belts to count inventory, finding radio sizes etc
🍊Image Orientation 1960s (Cola)
Making the audience believe they have more needs: Dreams and fantasies: Images of short happy stories
🍊Psychological Positioning
Playing with the ideas: What do people think about?
🍊Integration of Databases (1960-70s)
Media Procut Usage Consumer Personal Data : Neilson/Arbatron advertising company: Took the data of product usage, spending habits, W5H, Looking beyond demographics: Lifestyle/Political information
🍊Consolidation of Companies (Monopoly)
Building monopolies: Nestle: Owning multiple brands
🍊Globalization of Markets
Other countries hiring U.S advertising agencies, U.S marketing globally, hiring diverse personnel to reach other markets
🍊Promotional Support
Coupons
Tshirts
Contests
Give Aways
ALL PROMOTIONAL
The creativity aspect - forget just making
🍊Consumer
Segmentation
Seeing customers as different people with different needs and desires. Golden product -> Variety Gems
🍊Long Tail Marketing
Looking at the niches at the end of the tail and finding what people want
If you can find it you can make a niche product that will SELL -> Social networking/Media makes this possible
🍊Neuromarketing
Studying how the brain processes information, finding patterns and connections in the brains then using pictures messages to strike deep into the subconcious
🍊Marketing
The process of planning pricing promotion and distribution of ideas goods and services to create exchanges that satisfy individual and organizational objective (not just products but candidates)
🍊Manufacturing
Lets you finance. Making products: building factories, sourcing materials, hiring employees/producers
🍊Marketing Concept
Get people to buy more than they need
Convincing people they have more needs
Convincing them their stuff is better than others
Moving beyond giving people what they have or need
Every step along the way of a business
🍊Marketers
Spy on people, building something that satisfies their needs, prey on emotions, study culture, investigating thoughts. Gold=Finding/creating something people don’t even know they’ll want yet and launching it before anyone else
🍊Organizational objective
Every year the business will have a marketing goal (10% increase lets say)
🍊5 Alternatives (CMPEP, CMPAPP, SS,PP,BPP)
1.Competitive pricing 2.Comparative pricing 3.Skimming strategy 4.Promotional pricing 5.Branding/Prestige Pricing
🍊Competitive pricing
Selling a product for less than the cost of production in order to draw in initial attention
🍊Comparative pricing
Making the consumer believe they are getting a deal. Anchor price vs deal price. (Car sticker says its worth 100, seller charges 95 = their needed quota 90)
🍊Skimming strategy (Innovation Pricing!)
Making a product for cheap but pricing it high because it’s a new invention. Competitors make copies and sell for less to gain attention. Once you’ve made enough you drastically drop the price competitors can’t afford for production.
🍊Promotional pricing (Popularity Pepsi vs Coke)
Periodically cutting prices for a very specific purpose. Who can sell more? #1 Most popular
🍊Branding/Prestige Pricing (Luxury)
Charging $500 for $20 jeans and never making sales
🍊Direct market
Directly from the company to you
Ex: Victoria Secret sends a catalog, you find what you like, phone them and say on page 32 I want this etc -> Amazon
🍊Indirect Market
Retail store
Being able to touch and feel fabric
🍊Promotion (Anything that isn’t advertising) (PS, PR, SPA)
Personal Selling
Public Relations
Sales Promotion
Advertising
🍊Personal Selling (Hint: A person selling)
Hiring sales people, influencers to sell products
🍊Public Relations (Reputation Manager)
Clean up and BS crew: Promoting the company and not any one product -> Make people less critical and more willing to buy stock
🍊Sales Promotion Advertising
Free sample
Point of purchase
Displays
Sweepstakes
-> Advertisers indentify themselves
🍊Non-personal communication
Agencies make ads but they are not calling you on the phone or writing to you
🍊Components of Advertising Industry
Advertisers
Advertising Agencies
Media
Support Services
🍊Advertisers Marketing Department
Goal: Stay in control (Never leak) In-house
🍋🥑Structure of The Traditional Advertising Agency: (4) (AMS,RS,MBS, CS)
Account Management Services, Research Services, Media Buying Services, Creative Services
🍋🥑Account Management Services Roles
Management Supervisors + Accounting Executive + AE Assistant:
🍋🥑Management Supervisors
Hire and fire Accounting Executives, assigns them pitching projects, monitor, reinforce, and balance competition between sharks, keeps them in debt
🍋🥑Account Executive
Sharks: Orchestrates the pitches, people persons, earns large bonuses, kept in debt (in order to put on the shows), obsessive, ambitious, competitive streak, mingles with competition, gossips/networks, gathers members from each service to create dream teams
🍋🥑Research Services Roles
(Masters and PHDS) Research Director + Researchers
🍋🥑Research Director
Experienced, knows all data bases, takes calls from sales representatives, knows 1000s of data generators, keeps a small team, needs loyalty, can assign researchers to AE for projects
🍋🥑Researcher
Collects the best intel (gives clients confidence) Digs into clients history/business
🍋🥑Media Buying Roles
Media Director + Media Buyer
🍋🥑Media Director
Runs department
Chooses number of employees
🍋🥑Media Buyers
More technical than AE, highly competitve, finds best placement for the ads to the dollar, studies rate cards and data, finds target audiences, needs experience, must garuntee ad campaigns, always phoning, increase returns > Buys the slots etc
Coordinates $100M
Sales. If they get a 15% discount that $15M goes towards upping the production.
🍋🥑Creative Services Roles
Creative Director > Art Director (Producers, Photographers, Graphic Artists) + Copy Director + Copy Writer
🍋🥑Art Director
Visual and Audio
They know who to call - design the team to produce &
Execute the image
🍋🥑Copy Writer
(Part time or consultant)
Paints pictures with words
Choose the right words
Provde your product has advantages…it might not actually have
Puffery but delivery
FTC
Make claims that can get the ideas across but cannot actually be proven….(avoids strikes for false advertising)
🍋🥑Advertising Campaigns
Producing scripts graphics featuring actors etc and send the ad to the right place at the right time and monitor to make sure they are showing up
Then you evaluate and research what the client wanted to and how far you got
Clients usually want marketing call/goal: Our market share goal:
We made $100m last year and we want $110m this year!
We want campaigns that will do that
Set it up, research it, design it, produce it, observe, monitor, compare launch to goal.
🍋 Performance Contract
Advertising performance contracts, also known as marketing performance agreements, outline the goals and expectations of an advertising campaign. They ensure that both the business and the advertising agency are clear on what’s expected and how the campaign’s success will be measured.
