EXAM 1 Flashcards
What is Advertising?
The activity of promoting products or services to potential customers.
What is Demarketing?
A strategy used to reduce demand for a product or service.
What is the Societal Role of Advertising?
To inform and influence public opinion, culture, and consumer behavior.
What is the difference between Primary and Secondary Demand?
Primary demand refers to the desire for a product category, while secondary demand refers to the desire for a specific brand.
What is Ethical Advertising?
Advertising that is honest, fair, and responsible to consumers and society.
What is the difference between Advertising Self-Regulation and Federal Regulation?
Self-regulation is industry-guided, while federal regulation is enforced by government agencies.
What is the role of the Federal Trade Commission (FTC)?
To protect consumers from deceptive advertising practices.
What is the role of the Food and Drug Administration (FDA)?
To regulate food, drugs, and cosmetics to ensure safety and efficacy.
What is the role of the Federal Communications Commission (FCC)?
To regulate interstate and international communications by radio, television, wire, satellite, and cable.
What are Copyrights?
Legal rights that grant the creator exclusive control over the use of their original works.
What are Trademarks?
Symbols, names, or slogans used to identify and distinguish goods or services.
What is the difference between Deceptive and Unfair Advertising?
Deceptive advertising misleads consumers, while unfair advertising causes consumer harm.
What is a Consent Decree?
A legal agreement to settle a dispute without admission of guilt or liability.
What is the Better Business Bureau?
A nonprofit organization that helps consumers find trustworthy businesses.
How does Advertising differ from Marketing?
Advertising focuses on promoting products, while marketing encompasses a broader range of activities including research and strategy.
What are the differences between Local, Regional, and National Advertisers?
Local advertisers focus on local markets, regional advertisers target specific areas, and national advertisers reach audiences across the country.
What is Cooperative (Co-Op) Advertising?
A partnership between manufacturers and retailers to share advertising costs.
What are the types of Advertising Agencies?
- Full-Service Agencies * Creative Boutiques * In-House Agencies
What is the role of Traffic Management in Advertising Agencies?
To ensure projects are completed on time and within budget.
What are Agency Compensation models?
- Commissions * Fees * Hourly rates
What are the 7 Types of Advertising?
- Informative * Persuasive * Reminder * Reinforcement * Institutional * Comparative * Cooperative
What are Customer Needs and Wants?
Needs are basic requirements, while wants are desires shaped by culture and personality.
What are the Four Types of Market Segmentation?
- Demographics * Psychographics * Geographic * Behavioral
What do PRIZM and VALS stand for?
PRIZM: Potential Rating Index for Zip Markets; VALS: Values and Lifestyles.
What is the Target Marketing Process?
Identifying and reaching specific consumer segments.
What is the Product Life Cycle?
Stages a product goes through: Introduction, Growth, Maturity, Decline.
What is the difference between Primary Audience and Secondary Audience?
Primary audience is the main target, while secondary audience is additional potential customers.
What are User Status and Usage Rates?
User status categorizes consumers based on their usage, while usage rates measure frequency of use.
What are the types of Distribution?
- Intensive * Selective * Exclusive
What is the Consumer Decision Process?
Stages: Perception, Learning/Persuasion, Motivation.
What is Brand Awareness?
The extent to which consumers recognize or recall a brand.
What is Cognitive Dissonance?
The psychological discomfort experienced when holding conflicting beliefs or values.
What is Account Planning in Advertising?
The process of understanding consumer insights and developing strategies.
What are the differences between Market Research, Advertising Research, and Consumer Research?
- Market Research: General market information * Advertising Research: Specific ad effectiveness * Consumer Research: Insights about consumer behavior
What are the Stages of Advertising Research?
- Advertising Strategy * Creative Concept * Pre-testing * Post-testing
What is the importance of Consumer Insight?
It helps in creating effective advertising strategies that resonate with audiences.
What is the difference between Qualitative and Quantitative Research?
Qualitative research focuses on understanding consumer behavior, while quantitative research measures numerical data.
What are the Steps in the Research Process?
- Define problem * Collect data * Analyze data * Present findings
What is a SWOT Analysis?
A strategic planning tool assessing Strengths, Weaknesses, Opportunities, and Threats.
What are Test Markets?
Geographic areas used to test marketing strategies before a wider release.
What is the difference between Validity and Reliability?
Validity measures accuracy, while reliability measures consistency of results.
What is Strategic Planning?
The process of defining objectives, strategies, and tactics.
What is the difference between Top Down and Bottom Up Marketing Plans?
Top down is directive from management, while bottom up is based on grassroots input.
What is Perceptual Mapping?
A visual representation of consumer perceptions of products or brands.
What are the Seven Approaches to Positioning Strategy?
- Attribute * Benefit * Use/Application * User * Product Category * Competitor * Quality/Price
What are common Advertising Budgeting methods?
- Percentage of Sales * Objective-Task Method * Competitive Parity
What are the Sources of Brand Messages?
- Advertising * Public Relations * Personal Selling * Sales Promotion
What is Loyalty in Marketing?
The tendency of consumers to continue purchasing the same brand.
What is LTV in Marketing?
Lifetime Value, the total worth of a customer over the whole period of their relationship with a brand.
What is Relationship Marketing?
A strategy aimed at fostering customer loyalty and long-term engagement.
What is the 80/20 Rule in Marketing?
The principle that 80% of a company’s profits come from 20% of its customers.
