Chapter 2 Flashcards
Branding
to identify products and their sour and to differentiate them from others
Four Assumptions of an ideal market economy
Self-interest
Complete Information
Many Buyers and Sellers
Absence of externalities
Basic function of advertising:
To communicate…
information about the products, its features, and its location of sale
Basic function of advertising:
To identify..
products and differentiate them from others (branding)
Basic function of advertising:
To induce…
consumers to try new products and to suggest reuse
Basic function of advertising:
To stimulate…
the distribution of a product
Basic function of advertising:
To increase…
product use
Basic function of advertising:
To build…
value, brand preference, and loyalty.
Most significant function of advertising:
to lower the overall cost of sales
Brand
combination of name, words, symbols, or design that identifies the product and it source and distinguishes it from competing products
Strong brand benefits:
- premium pricing
- protection against price wars
- greater chance of successful new product
- leverage with channel partners
- attractive to co-branding
- effectively deal w/ brand crisis
- recruit top talent
- garner consumer loyalty
Preindustrial Age
pre 1800
Chinese invented paper
First paper mill
Gutenberg printing press
Industrial Age
1800-1980 Match mass consumption to the mass production Costs less to make a product than DIY transportation= distribution increased need for mkt techniques
Industrial Age Advertising
- consumer packaged goods
- catalogs mailed
- radio
- new markets
Advertising became a profession during the _______ age.
Industrial
