Exam 1 Flashcards
IMC
Integrated Marketing Communications; modern practice of strategically coordinating and integrating brand messages across all consumer contact points
Advertising
the structured and composed, non-personal communication of information. usually paid for and persuasive in nature about products by identified sponsors through various forms of media
6 Components of Advertising
-structured
-directed
-paid for by sponsors
-mediated
-persuasive
-identifies its sponsor
PSA
advertisement serving the public interest often for a non-profit organization, carried by the media at no charge
Word of Mouth Advertising
communication medium but generally not considered an advertising medium; the public spreads word organically
Mass Media
print or broadcast media that reach very large audiences
Advertising Strategy
define what the audience should notice, think, and feel; refine the target audience and define what response the advertiser is seeking
Marketing
designed to attract revenue; activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Marketing Mix
part of the marketing process; involves: developing products, pricing them strategically, distributing at the appropriate places, promoting them through sales and advertising
Marketing Strategy
part of the marketing process, the statement of how a company is going to accomplish its marketing objectives; determine who the targets of advertising should be, the markets in which the advertising should appear, and the goals advertising should help accomplish
Branding
identifies products and where they came from and distinguishes them from competitors
Free Market Economics
the main reason a large number of products are available at competitive costs is because of open competition between self-interested sellers; self interest, complete information, many buyers and sellers, absence of externalities (social costs)
Added Value
the increase in worth of a product or service provided by the communication of benefits over and above those offered by the product itself
Primary Demand
consumer demand for a whole product category; advertising helps stimulate this by giving the consumer more “complete information”
Selective Demand
consumer demand for a particular product over another
The Abundance Principle
in an economy that produces more goods and services than can be consumed, advertising serves to inform consumers of their alternatives and allows companies to compete more effectively for consumer dollars
Puffery
exaggerated and opinionated claims that cant necessarily be proven true or false; excluded from advertising laws about false claims
Regulated Industries
industries that have to keep the same price so people can afford them (water, utilities, energy, etc)
local advertising
advertising by businesses within a city or county directed toward customers within the same geographic area
product advertising
functional classification of advertising that promotes goods and services
sale advertising (promo)
a type of local advertising; stimulates movement of particular merchandise or increases store traffic by emphasizing a price reduction
institutional advertising (attitudinal)
a type of local advertising; attempts to gain favorable attention for the business as a whole and intends the effects to be long term
classified advertising
a type of local advertising; newspapers; short, text-only, used to locate and recruit new employees, offer services, or sell and lease new and used merchandise
co-op advertising
sharing of advertising costs by the distributor or retailer and the manufacturer, with the manufacturer paying part of distributors costs based on sales
regional advertisers
operate in one part of the country and market exclusively in that region, bigger than local advertising
national advertisers
advertise in several geographic regions or throughout the country
centralized advertising department
a staff of employees, usually located at corporate headquarters, responsible for all advertising
brand managers
individuals in the advertising company with the authority and responsibility for marketing one particular brand
decentralized system
typically in large firms; establishment of advertising departments split up by whichever system suits the firms needs, which are able to operate with a major degree of independence
multinational corporation
operate and invest throughout many countries and make decisions based on availability worldwide; use a standardized approach to marketing and advertising in all countries
utility
a product’s ability to satisfy both functional needs and psychological wants
exchange
a transaction in which a person or organization trades something of value for something valuable in return
target market
the market segment or group within the market segment toward which all marketing activities will be directed
target audience
the specific group of individuals to whom the advertising message is directed
trade advertising
targets resellers to promote greater distribution of their products
professional advertising
official publications of professional societies, marketed toward doctors, lawyers, teachers, etc
agricultural advertising
promote products and services used in agriculture to farmers and others employed in agribusiness
1 to 1 marketing
potential customers can be segmented so specifically that a unique marketing message can be sent to each based on the segment information
behavioristic segmentation
determined by user status, usage rate, purchase occasion, and benefits sought; tells us who customers are now, when and why they buy, and how much they consume
sole users
the most brand loyal and require the least amount of advertising and promotion
semisole users
typically use brand A but have an alternative selection if brand A is not available or if an alternative is promoted with a discount
discount users
wont buy brand A at full price but might buy it at a discount
aware nontriers
use competitive products in the category but havent taken a liking to brand A
trial/rejectors
tried brand A but didn’t like it
repertoire users
brand switchers who respond well to persuasive advertising; perceive two or more brands to have superior attributes and will pay full price
geodemographic segmentation
combines demographics with geographic; generalizations; people in the same neighborhoods typically have similar lifestyles
psychographic segmentation
grouping of consumers into market segments based on psychological makeup (ex: patagonia and the sustainability mission)
VALS (the Values and Lifestyles Classification System)
often criticized for being overly complicated; motivation: a pattern of attitudes and activities that help people reinforce, sustain, or midday their social and self image
product concept
a consumers perception of a product as a combination of utilitarian and symbolic values that meet functional, social, and psychological wants and needs
the primary demand trend
identifies the market potential for a product category
brand equity
the sum of what consumers, distributors, dealers, and competitors think about a brand over a significant amount of time
Four P’s of the marketing mix
product, place, price, promotion
functional utility
time, place, form, task, posession
psychic utility
product gives an elevated status to the consumer, offers symbolic or psychological need satisfaction
account planner
represents the consumer during the campaign development process
marketing research
helps identify consumer needs and market segments, provides information necessary for developing new products and devising market strategies, enables managers to assess the effectiveness of marketing programs and promotional activities
advertising research
systematic gathering and analysis of information to help develop or evaluate advertising strategies
advertising strategy research
before creative work begins, helps define the product concept or assists in the selection of target markets, advertising messages, or media vehicles
