Ch. 15-- Advertising and Public Relations Flashcards
What characteristics make Advertising different from the other forms of promotion?
Paid
Non personal
By an identified sponsor
What are the 2 forms of institutional advertising and their characteristics?
- Corporate– to promote image of company
2. Advocacy– supports a cause
What are the 3 forms of product advertising and their characteristics?
- 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)
What is the main advantage of comparative advertising? What are some of its
disadvantages?
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
What is the major part of advertising expenditures spent on?
Buying the media
How do advertising agencies get paid for the services they provide national
advertisers? For the services they provide non-national or local advertisers?
National advertisers: advertising agency gets commission discount
Local advertiser: no discount, so advertising agency bills for the media bought and services provided
What are the general principles of media communications?
All-or none Education Economic Age Least effort principle
What are the advantages of each media type?
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
How does each medium get its market segmentation?
TV: Channel; program
Radio: station format; geographical location
Magazines: topic; type
Newspapers: section; geographical location
Outdoor: physical location
Internet: Website
How do you determine the CPM for advertising media?
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
What is “reach” for a commercial?
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%
Is Publicity “Free Advertising?”
No bc you have to pay public relations people to do the job
What is the main advantage of Publicity over Advertising?
More believable
What are the 2 things that you as a marketer cannot control in Publicity?
Content
Placement
Define advertising
Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor
What is “frequency?”
Frequency: measure of how many times the average person in the target market is exposed to the message
ex: 3 times
What is impact?
is the qualitative value of a message exposure through a given medium.
What is engagement?
a measure of things such as ratings, readership, listenership, and click-through rates.
How do you calculate cost per thousand (CPM)?
Cost of reaching 1,000 members of the target mkt
= cost per contact * 1,000 = $0.002 * 1,000= $2
How do you calculate the avg frequency?
Total exposures/audience reached
ex:
(30,000 *3 times) + (30,000 * 5 times) /’ 60,000 ppl
= 4
What is the all-or-none principle?
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
What is the education principle?
the better educated a person ins, the more use she will make of the media
What is the economic principle?
use of the media increases as income increases, particularly in the printed media
What is the age principle?
As Americans become older, they tend to use the media more for serious purposes and less for entertainment
