86 terms

Advertising Principles Exam #2

Advertising Principles Professor Coleman Chapter 4-6 **only goes halfway through chapter 5**
organizations with product, service or ideas to promote - referred to as clients
helps the advertisers plan, create and prepare ad campaigns and other promotional materials
assist both advertisers and agencies in preparing advertising materials - usually photographers, illustrators, prints and web developers
local advertisers
advertising by businesses within a city or county directed toward customers within the same geographical area
franchisees, retail, independent and government/nonprofit
4 main types of local advertisers
product, institutional, classified
types of local advertising
promotes a specific product or service that stimulates short-term action while building awareness of the business
attempts to create a favorable long-term perception of the business as a whole, not just a particular product or service
newspaper, magazine and now internet advertisements usually arranged under subheads that describe the class of goods or the need the ads seek to satisfy
the sharing of advertising costs by the manufacturer and the distributor or retailer - usually 2 types
vertical co-op
the manufacturer provides the complete ad and pays a percentage of the cost of placement - bigger brand provides funding
horizontal co-op
joint advertising effort of related businesses to create traffic for their type of business
regional advertisers
operate in one part of the country and market exclusively within that region - in one or several states
what kind of advertising: "New England is AT&T country."
national advertisers
sell in several regions or throughout the country
brands; business
national companies are concerned about building their _____; local focus on attracting customers to ________
strategically; tactically
how do national advertisers plan; local?
organization of companies with foreign marketing divisions, typically decentralized and responsible for their own product lines - different for every nation
global advertisers
multinationals that use a standardized approach to marketing and advertising in all countries - the same for every nation
advertising agency
independent organization of creative people and business people who specialize in developing and preparing marketing and advertising plans, advertisements and other promotional tools
local agency
advertising agency that specializes in creating advertising for local businesses - use ad agencies less extensively than national advertisers
regional agency
advertising agency that focuses on the production and placement of advertising suitable for regional campaigns
national agency
advertising agency that produces and places the quality of advertising suitable for national campaigns
international agency
an advertising agency that has officers or affiliates in major communication centers around the world and can help its clients market internationally or globally
WWP Group; London
what is the name of the largest advertising agency organization today; where is it located?
full service advertising agency
agency equipped to serve its clients in all areas of communication and promotion
creative boutique, media-buying service, interactive agency
what are the 3 types of specialized service agencies
creative boutique
an organization of creative specialists who work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages and specialized art
media-buying service
an organization that specializes in purchasing and packaging radio and television time
interactive agency
specializes in the creation of ads for a digital interactive medium such as web pages, CD-ROMs or electronic kiosks
in house agencies
creates ads IN the company
saves money, CONTROL, know the product more personally
advantages to in house agencies
not as quality work
disadvantages to in house agencies
account management
mangers who supervise account executives and who report to the agency's director of account services
account executives
usually starting level position - liaison between the agency and the client; responsible for managing all the agency's services for the client; must know everything about the client
account planning
a hybrid discipline that bridges the gap between traditional research, account management and the creative direction
creative director
heads a creative team of agency copywriters and artists that are assigned to the client - responsible for the creative product
people who create the words and concepts for ads and commercials - condense all that can be said about a product into few pertinent points
art directors
along with graphic designers, determines how the ads verbal and visual symbols will fit together
media planning and buying
critical because the only way advertisers can communicate is through some media - buying space
traffic management
coordinates all phase of production and makes sure everything is completed before client and/or media deadlines
media commission
compensation paid by a medium with recognized advertising agencies for advertising placed with it - media allow agencies to retain 15% commission on the space or time they purchased on behalf of their clients
a source of agency income gained by adding some amount to a suppliers bill
how much percent is markup usually?
fee-commission combination
pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned
straight fee/retainer method
method of compensation for any ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula
incentive system
the agency shares in the client's success with a campaign attains specific, agreed-upon goals
a product's ability to provide symbolic or psychological want satisfaction and functional satisfaction
form, time, place or possession
what are the 4 parts to utility
the trading of one thing of value for another thing of value - a core theory of marketing
personalized way we sense, interpret and comprehend various stimuli
perceptual screens
the physiological or psychological perceptual filers that messages must pass through
people or organizations who consume goods and services
current customers
people who have already bought something from a business/buy it regularly
prospective customers
people about to make an exchange or considering it
centers of influence
customers, prospective customers or opinion leaders whose ideas and actions others respect
a group of potential customers who share a common interest, need or desire; who can use the offered good or service to some advantage and who can afford/willing to pay price
consumer markets
people who buy for their own use or something's personal use
business markets
organizations that buy services, natural resources and component products that they resell, use to conduct business or use to manufacture another product
reseller markets
individuals or companies that buy products to resell them
industrial markets
individuals or companies that buy products to use to produce other goods
any person or organization that has products, services or ideas to sell
logal, regional/national, transnational/global
3 markets on different levels
consumer behavior
a wide spectrum of mental and emotional processes and physical activities that affect, derive from, or form the context of human consumption
consumer decision process
the series of steps a consumer goes through in deciding to make a purchase
extended problem solving
high involvement, low experience - deliberate, careful search
brand loyalty
high involvement, high experience - conscious commitment to find some branch each time purchase is made
limited problem solving
low involvement, low experience - common products, limited search
habit or variety seeking
low involvement, high experience - switch brands at random or buy single brand repeatedly
personalized way we sense, interpret and comprehend various stimuli
physical information through senses
perceptual screen
the physiological or psychological perceptual filters that messages must pass through
the mental processes involved in perception, thinking, recognition, memory and decision making
mental (perceptual) files
stored as memories in the consumers mind
theories of learning
a relatively permanent change in thought process or behavior that occurs as a result of reinforced experience
cognitive theory
views learning as a mental process of memory, thinking and rational application
conditioning theory
treats learning as a trial-and-error process
elaboration likelihood model
a theory of persuasion that the route of persuasion depends on the consumers level of involvement with the product and message
central and peripheral
what are the 2 routes to persuasion
central route
ability and motivation to process a message is high; close attention is paid to message content
peripheral route
receiver pays more attention to superficial cues rather than message content; low involvement of process and motivation
acquired mental position regarding some idea or object - brand sticks in consumer's mind; can be positive or negative
brand interest
an individuals openness or curiosity about a brand
an acquired behavior pattern that becomes nearly or completely involuntary - natural extension of learning
brand loyalty
the consumer's conscious or unconscious decision to repurchase a brand continually
the underlying drives that stem from the conscious or unconscious needs of the consumer and contribute to the individual consumers purchasing actions