Ch. 15-- Advertising and Public Relations

Question 1

What characteristics make Advertising different from the other forms of promotion?

Answer 1

Paid
Non personal
By an identified sponsor

Question 2

What are the 2 forms of institutional advertising and their characteristics?

Answer 2

1. Corporate– to promote image of company

2. Advocacy– supports a cause

Question 3

What are the 3 forms of product advertising and their characteristics?

Answer 3

• Informative: Giving knowledge
  (and making aware, used in introductory state of product life cycle)
  -Persuasive: Convincing customers
  (to stick w. you– used in growth stage)

-Reminder: Maintain customer relationships
(+ keep them thinking about product, used in late maturity and decline)

Question 4

What is the main advantage of comparative advertising? What are some of its
disadvantages?

Answer 4

Strongest type of attack on your competition aka frontal attack

• ’s : - you’re paying to advertise the competitions name
• Against the law in many countries
• Competition doesn’t like it
• Can start war w. other company

Question 5

What is the major part of advertising expenditures spent on?

Answer 5

Buying the media

Question 6

How do advertising agencies get paid for the services they provide national
advertisers? For the services they provide non-national or local advertisers?

Answer 6

National advertisers: advertising agency gets commission discount
Local advertiser: no discount, so advertising agency bills for the media bought and services provided

Question 7

What are the general principles of media communications?

Answer 7

All-or none
Education
Economic
Age
Least effort principle

Question 8

What are the advantages of each media type?

Answer 8

TV: mass communication; color/sound/movement
Radio: Listeners form their own images; portability; quickest to broadcast advertisements
Magazines: Excellent market segmentation; excellent reproduction; long shelf life
Newspapers: good for local markets (-= hasty reading)
Outdoor: good 4 nearby products and services (-= brief msgs)
Internet: Can tailor advertisement to individual customer

Question 9

How does each medium get its market segmentation?

Answer 9

TV: Channel; program
Radio: station format; geographical location
Magazines: topic; type
Newspapers: section; geographical location
Outdoor: physical location
Internet: Website

Question 10

How do you determine the CPM for advertising media?

Answer 10

Cost Per Contact
cost of reaching one member of the target mkt
= cost of media / size of audience
ex: $50,00/25,000,000 ppl= $0.002

Question 11

What is “reach” for a commercial?

Answer 11

Reach: Measure of the % of ppl in the target market who are exposed to the ad campaign during a given period of time

(# of different target customers who are exposed to a commercial at least once during a specific time period (usually 4 wks)
ex: 60,000 ppl/100,000 radio liseners= 60%

Question 12

Is Publicity “Free Advertising?”

Answer 12

No bc you have to pay public relations people to do the job

Question 13

What is the main advantage of Publicity over Advertising?

Answer 13

More believable

Question 14

What are the 2 things that you as a marketer cannot control in Publicity?

Answer 14

Content

Placement

Question 15

Define advertising

Answer 15

Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor

Question 16

What is “frequency?”

Answer 16

Frequency: measure of how many times the average person in the target market is exposed to the message
ex: 3 times

Question 17

What is impact?

Answer 17

is the qualitative value of a message exposure through a given medium.

Question 18

What is engagement?

Answer 18

a measure of things such as ratings, readership, listenership, and click-through rates.

Question 19

How do you calculate cost per thousand (CPM)?

Answer 19

Cost of reaching 1,000 members of the target mkt

= cost per contact * 1,000 = $0.002 * 1,000= $2

Question 20

How do you calculate the avg frequency?

Answer 20

Total exposures/audience reached
ex:
(30,000 *3 times) + (30,000 * 5 times) /’ 60,000 ppl
= 4

Question 21

What is the all-or-none principle?

Answer 21

Persons who are above average in exposure to one medium tend to be above avg in exposure to all; conversely, persons who do not use a medium much tend not to use all others much

Question 22

What is the education principle?

Answer 22

the better educated a person ins, the more use she will make of the media

Question 23

What is the economic principle?

Answer 23

use of the media increases as income increases, particularly in the printed media

Question 24

What is the age principle?

Answer 24

As Americans become older, they tend to use the media more for serious purposes and less for entertainment