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IMC Exam #2
Terms in this set (212)
last a short time and leave nothing tangible for the viewer to examine and consider
share the advertising revenue they receive during these time periods with their affiliates
free to sell commercial time in nonnetwork period and during station breaks in the preempted periods to both national and local advertisers
TV Ads advantages:
-National, regional, and local available
-Highly selective "narrowcasting"
TV Ads limitations:
-Overshadowed by major networks
-Lacks penetration in major markets
Network ad advantages:
-Simplification of the purchase process
-Offer the most popular programs and control prime-time programming
-Reaching nationwide audiences with one media buy
Network ad disadvantages:
High cost of network time
commercials shown on local TV, with time negotiated and purchased directly from the individual stations
National spot advertising:
all non-network advertising done by a national advertiser
airtime sold to local firms
sold or distributed on a station-by-station, market-by-market basis
advertiser assumes responsibility for the production and perhaps content (Sponsor has control and can capitalize on a show's prestige)
participating sponsors share the cost (May participate regularly or sporadically.
Advertiser isn't responsible for production.
Participants lack control over content)
Method of media buying:
sponsorship, participation, spot announcements
may be purchased by daypart or adjacency
% of HH using TV in a specific time period that are turned to a particular program
HUT (households using Television):
the percentage of homes in a given area that are watching television during a specific time period
1 rating point (national point) =
1% of all the TV HH in a particular area turned into a specific program
(HH tuned into show / total US HH)
(HH tuned to show / US HH using TV)
the rating periods during which the viewing audience is measured in every television market
Nielsen station index (NSI): viewing times, programs
watched, audience size estimates, demographics
Commercial ratings (C3):
measures of the average viewership of the commercials both live and up to three days after the ads are played back on DVR
Buying network ad time:
up-front market, scatter market
a buying period that occurs before the TV season begins
runs through the TV season
require consumers to expend some time and energy to process the information they provide
print media has:
Magazine classification (based on the audience)
consumer, farm, business
Magazine creative flexibility:
gateholds, bleed pages
the use of a third page that folds out to create an extra advertising spread
extend to the end of the page rather than leaving a margin around the ad
two or more versions of an ad are printed in alternate copies of a particular issue of a magazine
the number of individuals who receive a publication through either subscription or store purchase
readers per copy X circulation
Alliance for Audited Media (AAM):
consumers magazines and farm publications
Business Publications Audit (BPA):
offer advertisers the opportunity to buy space in a group of publications as a package deal
General advertising rates:
a display advertisers outside the newspaper's designated market area (DMA) (75% higher than local)
Retail or local advertising rates:
apply to advertisers that conduct business or sell goods or service within the DMA
Standard advertising units (SAUs):
column and inches wide
Rate structure for newspaper ads:
Flat vs. Open-Rate
Preferred position rate
the paper can place the ad on any page or in any position
uses a variety of channels to deliver communications and to promote products and services
Role of support media:
reach target audience that primary media may not have effectively reached (Reinforce or support primary media messages)
in-store ads, aisle displays, store leaflets, shopping cart signage, in-store TV, point-of-purchase media (traditional support media)
station posters, platform posters, terminal posters, inside cards, outside posters
Promotional product marketing:
the advertising or promotional medium or method that uses promotional products, such as ad specialties, premiums, business gifts, awards, prizes, or commemoratives
a form of advertising that blends marketing and entertainment through television, film, music talent, and technology
promoting a product using plugs for products within movies, books, TV shows, video games...
on the street, low budget, viral, buzz
interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location
direct marketing objective:
immediate behavioral response
the medium is used directly to obtain an order
may use one medium to obtain inquiry and qualify prospect (Typically follow up with a second medium to complete the sale)
Direct marketing media:
Direct mail, Catalogs, Email, Broadcast media (TV spots, Infomercials, Home shopping), Print media, Telemarketing
Cost per order (CPO):
evaluates the relative effectiveness of an ad based on the number of calls generated
Customer lifetime value (CLTV):
determines the dollar value associated with a long-term relationship with a customer
Customer lifetime value (CLTV):
helps determine if a customer should be acquired//optimizes existing customers' service levels
Recency: how recently a customer has purchased
Frequency: how often the customer purchases
Monetary: how much the customer spends
Forms of internet advertising:
Search engine marketing:
Search engine optimization (SEO)
Search engine optimization:
the process of improving the volume of traffic driven to one's site by a search engine through unpaid (organic) results as opposed to paid inclusions
PPC (pay per click):
targeting online ads to consumers based on their Web searching behavior
ads are determined by the content on the webpage
a group of internet-based applications that build on the ideological and technological foundation of Web 2.0 and that allow the creation and exchange of user-generated content
Social networking sites:
platforms for networks or social relations among people who share interests, activities, backgrounds, or real-life connections
How to use internet (apply IMC campaign):
Sales promotion on the internet (online coupon, sweepstake)
Personal selling on the internet (B-to-B)
Public relations on the internet
Direct marketing on the internet
decentralization of communication/interactivity/consumer content
customer has transaction and gives feedback to store
customers have interaction, conversation, a contribution in a constant cycle with a store
a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale
Reasons for sales promotion increases:
Growing power of retailers
Declining brand loyalty
Increased promotional sensitivity
The growth of digital marketing
Account-specific marketing (co-marketing):
a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives
Types of consumer-oriented promotions:
Refunds and rebates
coupon usable on the same product
redeemable on the purchase of a different product
an offer of an item, merchandise, or service, free or at a low cost, that is an extra incentive for customers
Types of trade-oriented promotions
Contests and incentives
Point-of-purchase (POP) materials
Sales training programs
discount or deal offered to retailers or wholesalers to encourage them to stock, promote, or displays the manufacturer's product
fee retailers charge for providing a slot to accommodate the new product
manufacturers display their products to current and potential buyers
the cost of ad is shared by more than one party
Horizontal cooperative advertising:
groups of retailers
Ingredient-sponsored cooperative advertising:
Vertical cooperative advertising:
manufacture pays a portion of ad a retailer runs to promote the product
the management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest and executes a program of action (and communication) to earn public understanding and acceptance
MPR (marketing public relations):
message credibility and expense
product releases, executive-statement releases, feature articles
Public internal audience:
Stockholders and investors
Suppliers and customers
Public external audience:
Civic & business organizations
Press release/press conference
Social networks and blogs
Avoidance of clutter
the generation of news about a person, product, or service that appears in broadcast or print media
a subset of public relations (lack of control, timing, accuracy)
Corporate Advertising (consumers' interest, cost, image):
An extension of the PR function
(Does not promote a specific product or service)
Promotes the organization
company's overall reputation
controversial social issues of public importance in a manner that supports the interests of the sponsor
a form of marketing whereby companies link with nonprofit organizations as contributing sponsors
Selling through a person-to-person communications process
an organization's effort to develop a link with individual customers for mutual benefit
Personal Selling Advantages
Tailoring of the message
Lack of distraction
Involvement in purchase decision
Source of research information
Personal selling disadvantages
Management-sales force conflict
Potential ethical problems
Personal selling & other tools:
What to test:
source factors, message variables, media strategies, budget decisions
whether the spokesperson being used is effective
memorable, but not too strong to change attitude?
vehicle option source effect
ad budget and sales
occur at a number of points, from as early on as idea generation to rough execution (concept testing)
determine if the campaign is accomplishing the objectives
Where to test:
lab tests, field test
high control but low realism (testing bias)
low control but high realism
measure the effects of advertising on awareness, recall, interest, and attitudes toward an ad and/or brand as well as purchase intentions at regular intervals
Essentials of effective testing:
Use a consumer response model
Establish communications objectives
Understand and implement proper research
Use multiple measures
Use pretests and posttests
Four international marketing environment:
information implicitly received
information explicitly conveyed
Economies of scale in production, distribution
Lower costs due to less planning and control
Lower advertising production costs
Ability to exploit good ideas worldwide
Consistent international brand, company image
Simplification of ad coordination and control
Problems with global advertising
Differences in culture, market, and economic development
Consumer needs and usage patterns
Media availability or usage
Country of origin effect:
Consumers' general perceptions of quality for products made in a given country
National reputations for quality and/or a destructive image can be used as the basis for global advertising
An In-Between Approach
Standardizing products -- "think globally, act locally" -- localizing ad messages
ads follow a basic approach, but themes, copy, and visual elements are adapted to difference in local markets
Internal advertising Centralization:
Firms main office (authority)
Internal advertising decentralization:
Region 1: each has campaign, creative, media, research, budgets
Major agency with both domestic and overseas offices
Agency that is affiliated with agencies in other countries
Local agency for each national market
Self regulation goal:
maintain consumer trust and confidence; limit government interference
Self regulation sections:
better business bureau: largest and best known self regulatory mechanism by the business
Advertising Self-Regulatory Council:
earlier known as NARC, Mission: to sustain high standards of truth and accuracy in national advertising
American Association of Advertising Agencies:
major trade association of the ad agency business
Federal Trade commission:
divisions of consumer protection, economics, and competition
causes substantial physical or economic injury to consumers
misrepresentation, omission, or practice that is likely to mislead customers
affirmative disclosure, advertising substantiation
consumers need to know information about consequences, conditions, and limitations associated with the use of the product
must have supporting documents for their claims and prove the claims are truthful
presentations that praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts
an agreement to stop the practice or advertising in question: cease-and-desist orders (within 30 days)an agreement to stop the practice or advertising in question: cease-and-desist orders (within 30 days)
an advertiser who is found guilty of deceptive advertising claims must run ads to rectify the situation
encompass false advertising by prohibiting "any false description or representation including words or other symbols tending falsely to describe or represent the same"
Robinson patman act:
Prohibits price discrimination
Vertical cooperative ads
(Co-op funds must be equal and non-discriminatory)
Social and ethical criticism of advertising:
Untruthful or deceptive
Offensive or in bad taste (source, sexual appeals, shock advertising)
Advertising and children
Social and cultural consequences
sees to create needs rather than merely fulfilling them; surrounding consumers with images of the good life; show products as symbols of status and success
Economic impact of advertising:
consumer choice, competition, product costs and prices
differentiation, brand loyalty
Economies of scale:
large advertisers have more money for advertising and competitive advertising for media buying (ex: reducing rates)
Product costs and prices:
advertising is an expense that increases product costs
Advertisers have little control over the placement of their commercials within a program when they advertise using a(n) _____ arrangement.
_____ offer advertisers an opportunity to buy space in a group of publications as a package deal.
_____ figures represent the number of individuals who receive a magazine publication through either subscription or store purchase.
The buying period that takes place before the TV season begins and where networks sell much of their commercial time is referred to as the:
Which of the following is an advantage of network advertising?
It simplifies the purchase process.
Which of the following statements about spot advertising is true?
It offers the national advertiser flexibility in adjusting to local market conditions.
Pluto Inc. prepares two magazine ads with slight regional variations. The ads are set to be launched in alternate copies of a particular issue. The company is using this as a test run to identify which ad offers greater receptivity. In this scenario, Pluto is using _____.
_____ are often referred to as high-involvement media because they generally require some attention and effort on the part of the consumer to process the information that they provide.
newspapers and magazines
Which of the following is an inherent disadvantage of television advertising?
fleeting nature of messages
_____ is defined as one percent of all the television households in a particular area tuned to a specific program.
a ratings point
The two-step approach to direct marketing:
uses the first effort to screen potential buyers.
The most common direct marketing objective that is typically expected by companies is to:
seek a behavioral response.
Which of the following is an advantage of indoor transit advertising?
long length of exposure
_______ are (is) used to reach those people in the target market the primary media may not have effectively reached and to reinforce their messages.
Tristan Inc., a manufacturer of consumer appliances, engages in social responsibility activities. In order to solicit funds to charitable organizations, it uses telemarketing to contact its high-income, upscale customers and requests them to make donations. Tristan is using a combination of:
direct marketing and public relations.
In a movie, the lead actor is shown wearing Zelus Running Shoes in several scenes. Marketers of Zelus are using the nontraditional support medium of:
Ether Inc., an electronics manufacturer, offers free T-shirts with the company's logo on them free of charge to its customers. Ether believes that this will help promote the company's products and attract more customers. This is an example of:
Advertisers can measure the relative effectiveness of a direct marketing program quickly by using:
cost per order (CPO).d. cost per order (CPO).
_____ media include billboards, street furniture, alternative media, transit, as well as specific forms of radio.
_____ is a measure of effectiveness used to determine whether or not a customer should be acquired, as well as to optimize service levels to existing customers.
Customer Lifetime Value
Pluto Inc. places a 50 cent-off coupon for another brand, Krispies maple syrup, on the outside of boxes of its Pluto Rice Cereal. This is an example of a(n) _____ coupon.
_____ is the process of improving the volume of traffic driven to one's site by a browser or web portal through unpaid (organic) results as opposed to paid inclusions.
Search engine optimization
Pay-per-click advertising is an example of:
Which of the following serves as a reason for the increase in sales promotion?
Growing power of retailers
_____ is an Internet advertising strategy that is based on advertisers' targeting consumers by tracking their website surfing patterns, such as which websites they have visited and/or searches they have made.
_____ has led to dramatic changes in the World Wide Web, primarily as a result of decentralization of communications and interactivity, with information provided by users as contributors of content.
_____ marketing is a type of marketing in which a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives.
A(n) _____ is an offer of an item of merchandise or services, either free or at a reduced price, that is used to provide an extra incentive to purchase.
Which of the following is true of horizontal cooperative advertising?
It is sponsored by a group of retailers.
Cats Purr is a non-profit organization that provides shelter and care for abandoned cats and kittens. Cats Purr uses its website to display information about the cats that are available for adoption, how they are cared for at the shelter, and to spotlight various volunteer efforts. This is an example of how the Internet can be used as a(n) _____ tool.
_____ is a major form of corporate advertising that addresses social, business, or environmental issues.
Personal selling has many advantages over other communications methods. However, most companies do not use this extensively. Which of the following is a reason for this?
Personal selling is expensive compared to other forms of communication.
_____ refers to an organization's effort to develop a long-term, cost-effective link with individual customers for mutual benefits.
One of the main disadvantages of publicity is the:
lack of control over the information conveyed.
_____ is a form of corporate advertising devoted to promoting an organization's overall reputation.
The new role of public relations is characterized primarily by:
a more marketing-oriented role.
_____ marketing is an increasingly popular method of image building, in which companies link with charities or nonprofit organizations as contributing sponsors.
Since public relations communications are typically perceived as _____, they are not subject to the problems of clutter that are associated with other forms of promotional communication.
The press, educators, civic and business groups, governments, and financial communities are all:
_____ is the management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance.
Products from countries with national reputations for quality and/or a distinctive image that can be used as the basis for global advertising capitalize on the:
One major disadvantage of laboratory tests is the lack of realism, and perhaps the greatest effect of this lack of realism is _____.
a testing bias
_____ variables that marketers must consider include language, customs, tastes, attitudes, lifestyles, values, and ethical/moral standards.
The vehicle option source effect refers to the:
fact that people perceive ads differently depending on their context.
_____ is a marketing approach that assumes that the needs satisfied by a product or service and the ways it is used are the same everywhere in the world, and therefore utilizes a common approach in all countries.
Companies prefer to _____ the international advertising and promotion function so that all decisions about agency selection, research, creative strategy and campaign development, media strategy, and budgeting are made at the firm's home office.
_____ is the most visible as well as the most culture bound of a firm's marketing functions.
_____ is a format where ads in a campaign follow the same basic approach but their themes, copy, and visual elements may be adjusted.
_____ have been used to measure the effects of advertising on awareness, recall, interest, and attitudes toward an ad and/or brand as well as purchase intentions at regular intervals.
The communications, transportation, financial, and distribution networks of a country are part of its:
The goal of affirmative disclosure is to
give consumers sufficient information to make an informed decision.
Advertisers are often supportive of voluntary self-regulation because:
self-regulation is viewed as a way of limiting government interference in advertising.
The use of superlatives such as "greatest," "best," and "finest" in advertising would constitute
According to the Federal Trade Commission (FTC), _____ exists if there is a misrepresentation, omission, or practice that is likely to mislead the consumer acting reasonably in the circumstances to the consumer's detriment.
Under the Wheeler-Lea Amendment, the Federal Trade Commission (FTC) is empowered to stop an advertiser from making a specified claim within 30 days and prohibit the advertiser from engaging in the objectionable practice until after a hearing is held. This is known as
a cease-and-desist order
Advertisements often seek to create needs rather than merely show how a product or service fulfills them. Many critics claim that this aspect of advertising has an adverse effect on consumers' values. Which of the following is the main reason for this claim?
Creating needs encourages materialism in people.
A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices, and among them, the largest and best known is the _____.
Better Business Bureau (BBB)
Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television. Which of the following phenomena describes this effect?
economies of scale
The _____ empowered the Federal Trade Commission to regulate unfair or deceptive practices in commerce including those in advertising.
According to Federal Trade Commission (FTC) policy, the basis for determining _____ is that a trade practice causes substantial physical or economic injury to consumers, could not reasonably be avoided by consumers, and must not be outweighed by countervailing benefits to consumers or competition.
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