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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

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