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| Advertising Response Function | a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns |
| Institutional Advertising | a form of advertising designed to enhance a company's image rather than promote a particular product |
| Product Advertising | a form of advertising that touts the benefits of a specific good or product |
| Advocacy Advertising | A form of advertising in which an organization expresses its views on controversial issues or responds to media attacks |
| Types of Product Advertising | Pioneering advertising, competitive advertising, comparative advertising |
| Pioneering Advertising | a form of advertising designed to stimulate primary demand for a new product or product category |
| Competitive Advertising | a form of advertising designed to influence demand for a specific brand |
| Comparative Advertising | a form of advertising that compares two or more specifically named or shown competing brands on one ore more specific attributes |
| Advertising Campaign | a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals |
| Competitive Advertising and the FTC | Used to be outlawed (Unless competitor was veiled and unidentified), but in 1971 the FTC ruled that comparative advertising is okay as long as neither company or product is portrayed inaccurately |
| What are the steps to create an advertising campaign? | 1 Develop goals and objectives 2 identify product benefits 3 develop and evaluate advertising appeals 4 execute the message 5 evaluate the campaign |
| Advertising Objective | A specific communication task that a campaign should accomplish for a specified target audience during a specified period |
| DAGMAR Approach Acronym | (Defining Advertising Goals for Measured Advertising Results) |
| DAGMAR Approach | All advertising objectives should precisely define the target audience, the desired percentage change in some specified measure of effectiveness, and the time frame in which that change is to occur |
| Example of a effective Advertising Objective using the DAGMAR Approach | "Educate 15% of 18-30 year old men about the Gillette Fusion razor's benefits within the next 12 months." |
| Competitive Parity | Keep up advertising campaigns with your competitors |
| % Sales Method | 3.5% of sales generally go to advertising in most companies. However, sometimes a good year of sales means you don't have to advertise exactly what the method requires |
| Emotional Bonding | The way mastercard has distinguished itself from the competition by invoking emotion from their consumers through their "There are some things money can't buy" advertising campaign |
| Step 1: Develop Goals and Objectives | Budget objects, message goals, use either the AIDA or DAGMAR approach |
| Step 2: Identify Product Benefits | "Sell the Sizzle, not the Steak"; Sell a products benefits, not its attributes |
| Benefit vs. Attribute | a benefit is what the consumer will achieve by using the product. "What's in it for me?"; Benefits apply to the rational or logical side of consumer versus their emotional side |
| Step 3: Develop and Evaluate Appeal | The emotional reason for a person to buy a product; Often expressed as the product's "theme" |
| Advertising Appeal | a reason for a person to buy a product |
| Unique Selling Proposition | a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign. Usually a slogan |
| Criteria for evaluating an appeal | Desirability, exclusiveness, and believability |
| Common Advertising Appeals | Profit, Health, Love or Romance, Fear, Admiration, Convenience, Fun & Pleasure, Vanity & Egotism, Environmental Consciousness |
| Step 4: Execute the Message | The way an ad portrays its information; Must attract attention and interest, but not distract from the content |
| Common Executional Styles for Advertising | Slice-of-life, lifestyle, spokesperson/testimonial, fantasy, humorous, real/animated product symbols, mood or image, demonstration, musical, scientific |
| Medium | The channel used to convey a message to a target market |
| Media Planning | the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target |
| Step 5: Evaluate the Campaign | Pretests Measures: are consumers likely to respond positively to the ad? Post Test Measures: Do consumers understand the ad? Did the ad meets its objectives/goals? |
| Media Types Used in Advertising | newspapers, magazines, radio, television, outdoor media, yellow pages, internet |
| Advantages of Using Newspapers | Geographic selectivity and flexibility; short-term advertiser commitments, news value and immediacy; year-round readership; high individual market coverage; co-op and local tie-in availability |
| Advantages of Using Magazines | Good reproduction, especially for color; demographic selectivity; regional selectivity; local market selectivity; relatively long advertising life; high pass-along rate |
| Advantages of Using Radio | Low cost; immediacy of message; can be schedule on short notice; relatively no seasonal change in audience; highly portable; short-term advertiser commitments; entertainment carryover |
| Advantages of Using Television | Ability to reach a wide, diverse audience; low cost per thousand; creative opportunities for demonstration; immediacy of messages; entertainment carryover; demographic sensitivity with cable stations |
| Advantages of Using Outdoor Media | Repetition; moderate cost; flexibility; geographic selectivity |
| Advantages of Using the Internet | Fastest-growing medium; ability to reach a narrow target market audience; relatively short lead time required for creating Web-based advertising; moderate cost |
| Disadvantages of Using Newspapers | Little demographic selectivity; limited color capabilities; low pass-along rate; may be expensive |
| Disadvantages of Using Magazines | Long-term advertiser commitments; slow audience buildup; limited demonstration capabilities; lack of urgency; long lead time |
| Disadvantages of Using Radio | No visual treatment; short advertising life of message; high frequency required to generate comprehension and retention; distractions from background sound; commercial clutter |
| Disadvantages of Using Television | Short life of message; some consumer skepticism about claims; high campaign cost; little demographic selectivity with network stations; long-term advertiser commitments; long lead times require for production; commercial clutter |
| Disadvantages of Using Outdoor Media | Short message; lack of demographic selectivity; high "noise" level distracting audience |
| Disadvantages of Using the Internet | Difficult to measure ad effectiveness and return on investment; ad exposure relies on "click-through" from banner ads; not all consumers have access to the internet |
| How much is the average time time TV ad? | About $300,000 |
| How much is the average Superbowl Ad? | About $3 million |
| Unique Ads | Cell phone ads more common in Europe & Pizza Hut's attempt to project a pizza onto the moon |
| Cooperative Advertising | an arrangement in which the manufacturer and the retailer split the costs of advertising and the manufacturer's brand |
| Infomercial | A 30-Minute or longer advertisement that looks more like a TV talk show than a sales pitch |
| Advergaming | placing advertising messages in web-based or video games to advertise or promote a product, service, organization or issue |
| advertainment | mini movies that promote a product and are shown via the internet |
| media mix | the combination of media to be used for a promotional campaign |
| cost per contact | the cost of reaching one member of the target market |
| reach | the number of target consumers exposed to a commercial at least once during a specified period, usually four weeks |
| frequency | the number of times an individual is exposed to a given message during a specific period |
| audience selectivity | the ability of an advertising medium to reach a precisely defined market |
| CPM | Cost per thousand people |
| Gross Ratings Points (GRP) | The higher this is, the more people that are watching a television show |
| Factors of Media Mix Decisions: | cost per contact, reach, frequency, audience selectivity, flexibility, noise level, and life span |
| "Holding Power" | The ability of a television show to keep watchers watching. The less likely you are to change the channel, the more likely you are to remember the commercials |
| Qualitative Selectivity | how homogenous is your target market? Magazines and cable TV programs have very high audience selectivity |
| How much does it cost to air an ad during a season finale? | About $500,000+ |
| Media Schedule | designation of the media, the specific publications or programs, and the insertion dates of advertising |
| Continuous Media Scheduling | A media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the latter stages of the product life cycle |
| Flighted Media Schedule | A media scheduling strategy in which ads are run heavily every other month or every two weeks, to achieve a greater impact with an increased frequency and reach at those times |
| Pulsing Media Schedule | a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods |
| Seasonal Media Schedule | a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used (School Supplies) |
| Recency Planning | Continuous scheduling is more effective than flighted scheduling because people are most influenced right before they make a purchase |
| Publicity | the effort to capture media attention for your firm using various publication methods |
| What are the major public relations tools? | New-Product publicity, product placement, consumer education, sponsorship, internet websites |
| Product Placement | a public relations strategy that involves getting a product, service, or company name to appear in a source of media not directly seen as an advertisement |
| Sponsorship | A public relations strategy in which a company spends money to support an issue that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image |
| cause-related marketing | a type of sponsorship involving the association of a for-profit organization and a nonprofit organization; through the sponsorship, the company's product or service is promoted, and money is raised for the nonprofit |
| Crisis management | a coordinated effort to handle all the effect of unfavorable publicity or of another unexpected unfavorable event |
