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Principles of Advertising Exam 1
Terms in this set (50)
President Obamas 2008 2012 Campaigns
positioning himself as "change"; heavy spending on advertising;social media and digital advertising;integrated communications plan
the structured and composed non personal communication of information, usually paid for and usually persuasive in nature, about products (goods, services, and ideas) by identified sponsors through various media
people who buy products and services for their own or someone else's personal use
an advertisement serving the public interest, often for a nonprofit organization, carried by the media at no charge
Examples of PSAs
pg. 7->perfect parent/cake pg. 24->energy star ratings pg. 39->guide dogs being adopted...VERIZON IN 30 ROCK
a bundle of benefits that may or may not be physical, that are temporary in nature, and that come from the completion of a task
economic, political, religious, or social viewpoints that advertising may attempt to sell
the particular good or service a company sells
an instrument of communications vehicle that carries or helps transfer a message from the sender to the receiver
the passing of information especially product recommendations, in an informal, unpaid, person-to-person manner, rather than by advertising or other forms of traditional marketing
four elements, called the 4Ps, that every company has the option of adding, subtracting or modifying in order to create a desired marketing strategy
4 P's of Advertising
Product, Price, Place, and Promotion
3 divisions of business
Operations (production/manufacturing), Finance/administration, marketing
Principles of Free Market Economics
there are four fundamental assumptions of free-market economics that a market-driven society strives to achieve
people and organizations tend to act in their own self-interest. people are more acquisitive and always want more-for less.
access by buyers and sellers to all information at all times about what products are available, at what quality, and at what prices, leads to greater competition and lower prices for all.
Many buyers and sellers
having a wide range of sellers ensures that if one company does not meet customer needs, another will capitalize on the situation by producing a more market-responsive product.
Absence of externalities(social costs)
sometimes the sale or consumption of products may benefit or harm other people who are not involved in the transaction and didn't pay for the product. In these cases, the government may use taxation and/or regulation to compensate for or eliminate the externalities
benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction and didn't pay for the product
a marketing function that identifies products and their source and differentiates them from all other products
Functions and effects of advertising as a marketing tool
1. to identify products and differentiate them from others 2. to communicate information about the product, its features, and its place of sale 3. to induce consumers to try new products and to suggest reuse. 4. to stimulate the distribution of a product. 5. to increase product use 6. to build value, brand preference, and loyalty. 7. to lower the overall cost of sales.
read and know the history
Five Ages of Advertising
Preindustrial, Industrializing, Industrial, PostIndustrial, Global Interactive
Signs with symbols were early form of advertising;Chinese invented paper and Europe had its first paper mill by 1275; Johannes Gutenberg invented the printing press in Germany
Gutenburg's press was not only the most important development in the history of advertising, and indeed communication, but t also revolutionized the way people lived and worked.
the "father" of advertising art, made ads more readable by using large headlines and considerable white space. In fact, Franklin was the first American known to use illustration ads.
lasted roughly until the end of World War I (1918) when the manufacturers were principally concerned with production
Volney B. Palmer
set up business in Philadelphia in 1941. He contracted with newspapers for large volumes of advertising space at discount rates and then resold the space to advertisers at a higher rate. Advertisers usually prepared the ads themselves
Ayer & sons
Francis Ayer formed an ad agency in 1869 at age 21. First agency to charge a commission based on the "net cost of space" and the first to conduct a formal market survey. In 1890, became the first ad agency to operate as agencies do today-planning, creating, and executing complete ad campaigns in exchange for media-paid commissions or fees from advertisers.
introduced in 1839,added credibility and a new world of creativity. now ads could show products, people, and places as they really were, rather than how an illustrator visualized them.
started around the turn of the twentieth century and lasted well into the 1970s. Period marked by tremendous growth and maturation of the country's industrial base. It saw the development of new, often inexpensive brands of the luxury and convenience goods we now classify as consumer packaged goods
Consumer Packaged Goods
Everyday-use consumer products packaged by manufacturers and sold through retail outlets. Generally these are goods such as food and beverages, health and beauty care, cleaning products, and detergents that get used up and have to be replaced frequently.
Production to Sales orientation
dedicated themselves to new product development, strengthened their sales forces, packaged and branded their products, and engaged in heavy national brand advertising. early brands of this era included Wrigley's, Coca-Cola, Jell-O, Kellogg's, Campbell's
written by the legendary copywriter Claude Hopkins at Albert Lasker's agency, Lord & Thomas. published in 1923, it became a classic and was republished in 1950 and 1980. His principles outlawed humor, style, literary flair, and anything that might detract from his basic copy strategy of a preemptive product claim repeated loudly and often.
WAS BORN ABOUT THIS SAME TIME AND RAPIDLY BECAME THE NATION'S PRIMARY MEANS OF MASS COMMUNICATION AND A POWERFUL NEW ADVERTISING MEDIUM. In fact, the first radio shows were produced by their sponsors' ad agencies.
manufacturers portraying their brands as different from and better than similar competitive products through advertising, packaging, or physical product differences.
Unique Selling Proposition
the distinctive benefits that make a product different than any other. the reason marketers believe consumers will buy a product even though it may seem no different from many others just like it.
strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product's utility
the association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer
period of cataclysmic change, starting in about 1980, when people first became truly aware of the sensitivity of the environment in which we live
term coined during the energy shortage of the 1970s and 1980s when advertising was used to slow the demand for products
big multinational companies and their advertising agencies went on a binge, buying other big companies and creating a new word in the financial lexicon
a direct inducement offering extra incentives all alon the marketing route-from manufacturers through distribution channels to customers-to accelerate the movement of the product from the producer to the consumer. such as coupons, direct mail
Global Interactive Age
delivering programming to a specific group defined by demographics and/or program content, rather than mass appeal. Usually used to describe cable networks. the opposite of broadcasting
Integrated Market Communication
presenting exciting new challenges and opportunities to marketing and advertising professionals.
1906 Pure Food and Drug Act
passed to protect the public's health and control drug advertising.
1914 Federal trade Commission Act
to protect the public from unfair business practices, including misleading and deceptive advertising
AAF & BBB
today's outgrowths of those early groups formed to improve advertising effectiveness and promote professionalism and started vigilance to safeguard the integrity of the industry.
Lance Armstrong: nike dropped him for violating the spirit of fair play and competition within his sport. Stood by Mike Vick, Tiger Woods. "won't let any one person get bigger than the brand"
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