Chapter 18 Vocab

Question 1

Advertising

Answer 1

Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

Question 2

Consumer-oriented Sales Promotions

Answer 2

Sales tools used to support a company’s advertising and personal selling directed to ultimate consumers. Also called “consumer promotions”.

Question 3

Cooperative Advertising

Answer 3

Advertising programs whereby a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.

Question 4

Cost per Thousand (CPM)

Answer 4

The cost of reaching 1,000 individuals or households with the advertising message in a given medium (M is the Roman numeral for 1,000)

Question 5

Frequency

Answer 5

The average number of times a person in the target audience is exposed to a message or an advertisement.

Question 6

Full-service Agency

Answer 6

An advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production.

Question 7

Gross Rating Points (GRPs)

Answer 7

A reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency.

Question 8

Informercials

Answer 8

Program-length (30-minute) advertisements that take an educational approach to communication with potential customers.

Question 9

In-house Agencies

Answer 9

Consist of the company’s own advertising staff, who may provide full services or a limited range of services.

Question 10

Institutional Advertisements

Answer 10

Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service.

Question 11

Limited-service Agencies

Answer 11

Advertising agencies that specialize in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media space, or providing Internet services.

Question 12

Posttests

Answer 12

Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.

Question 13

Pretests

Answer 13

Tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement.

Question 14

Product Advertisements

Answer 14

Advertisements that focus on selling a product or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder.

Question 15

Product Placement

Answer 15

A consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product.

Question 16

Publicity Tools

Answer 16

Methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements (PSAs).

Question 17

Rating

Answer 17

The percentage of households in a market that are tuned to a particular TV show or radio station.

Question 18

Reach

Answer 18

The number of different people or households exposed to an advertisement.

Question 19

Trade-oriented Sales Promotions

Answer 19

Sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers. Also called “Trade promotions”.