Term
| 19th century advertising growth factors |
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Definition
| Photography, mass production, national railroad system, telephone, telegraph, magazines, first advertising agency, rural free mail service |
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Term
| Who invented the USP and what is it? |
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Definition
| Rosser Reeves invented it as a way to differentiate your product from others like it. |
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Term
| What does the FTC regulate? |
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Definition
| "Unfair methods of competition," and "unfair deceptive acts or practices." |
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Term
| What did the Wheeler Lea Ammendment do? |
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Definition
| It gave the FTC authority over both “unfair methods of competition,” and “unfair or deceptive acts or practices.” |
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Term
| What did the Central Hudson case entail? |
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Definition
| The question of when commercial speech can be regulated. |
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Term
| What is the definition of advertising? |
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Definition
| "Salemanship in print." It is a usually paod for form of communication, structured, with an identified sponsor. Tries to persuade or influence, is conveyed through a variety of media, and is nonpersonal. |
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Term
| How did WWI affect advertising? |
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Definition
| If you were into advertising at this point, you weren't very well liked. The industry cancelled all consumer contracts and offered their services to promote the war for free. |
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Term
| How do we make decisions based on ethics? |
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Definition
| Ethics are a set of rules and guidelines that help you determine right from wrong. We judge on Advocacy(whether what the ad is advocating for is in line with our ethics) Accuracy (if it is misleading) and Aquisitiveness (whether it merely encourages us to spend or acquire stuff). |
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Term
| What did Ben Franklin have to do with advertising? |
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Definition
| He was the a big time newspaper guy and was pretty famous for it. He was also the first one to use illustrations in his advertisements, as well as white space. |
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Term
| What can advertising do for prices? |
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Definition
| Advertising puts a cap on prices and lets you know how much you should pay for something. |
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Term
| What impact does advertising have on competition? |
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Definition
| If you are a small business attempting to compete with a large possible nationaly recognized brand, you probably don't stand a chance. Advertising keeps competition in line. |
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Term
| What are the differences between local and national advertisers? |
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Definition
| National advertisers focus on the brand, market share, strategies, and markets. They aim for a long-term time frame spending $5-10 million on advertising with the help of many specialists. Local advertisers focus on their location, volume, tactics, and customers. They aim for a short-term time frame spending <$1 million on advertising with the help of few generalists. |
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Term
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Definition
| You would use an independent agency to acheive objectivity, experience, talent and contacts. You would use an in-house agency to allow individuals to become technical experts on products being advertised, receive priority for client and client's needs, to save costs, and remain in complete control. |
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Term
| Describe the client/agency relationship. |
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Definition
| It is much like a marriage. You have the pre-relationship stage, the development stage, the maintenance stage, and then the termination stage. the factors affecting the relationship are communication, chemistry, changes, and conduct. |
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Term
| What is media commission? |
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Definition
| A payment that represents a percentage of a client's total media spending. |
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Term
| How does media commision work? |
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Definition
| The agency finds out how much it will cost for the media advertising and bills the client that much. The advertiser then pays the media 85% of the actual cost therefore keeping 15% percent. |
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Term
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Definition
| The production cost+the fixed percent. Agencies add 17.65% of the cost of outside service. |
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Term
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Definition
| An agency compensation plan which charges an hourly rate or by product. |
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Term
| What are incentive systems? |
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Definition
| An agency compensation plan with a tightly-specified objective. |
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Term
| What is the difference between department systems and group systems? |
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Definition
| Department systems operate as one system and work on the same client at the same time. Everyone works together. Group systems operate seperately with each group working on a different client. |
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Term
| What are the types of agencies? |
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Definition
| Geographic scope:Local, regional, national, and international. Range of Services:Full service (general consumer, business-to-business). Specialized services:Creative boutiques, media- buying services, interactive, and markets. |
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Term
| What is a speculative presentation? |
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Definition
| One way that agencies get clients. They prepare a presentation that creatively and efficiently hsows off what they can do and present it to the potential client. |
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Term
| What is the difference between a centralized agency and a decentralized agency? |
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Definition
| A centralized agency is run by one person. It is better for effiency and continuity. A decentralized agency is run or controlled by more than one person or group of people. It is more flexible and creates competition among company brands. |
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Term
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Definition
| Essentially an exagerated description or representation used by advertisers to embelish their product. |
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Term
| What is the definition of deception in advertising? |
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Definition
| The ad must mislead the "Reasonable Consumer" and/or lead to material injury. |
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Term
| Why did the industry decide to be self-regulated? |
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Definition
| In order to establish some sort of self-discipline and avoid controversey. |
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Term
| How does the media help regulate the industry? |
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Definition
| Televison, radio, magazines, and newspapers all assist in regulating the industry. |
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Term
| What does the FDA have control over? |
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Definition
| Package labeling, ingredient listings, and advertising for food and drug. |
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Term
| What does the FCC have control over? |
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Definition
| The FCC can issue and revoke licenses to broadcasting stations and has the power to ban messages that are deceptive and/or in poor taste. |
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Term
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Definition
| Demarketing is when you run a campaign to discourage something you formerly promoted such as smoking or drinking. |
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Term
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Definition
| Product, Price, Place, and Promotion. |
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Term
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Definition
- Marketing begins with questions about the product from the consumer’s perspective
- Managers must translate product characteristics into concrete attributes with demonstrable benefits
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Term
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Definition
- Dictated by supply and demand
- Influenced by production & distribution costs
- Should convey value relative to other products
- Should meet a company’s objective
- Should match with product’s positioning
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Term
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Definition
- Must be consistent with brand image
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Term
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Definition
- Advertising
- Personal selling
- Sales promotion
- Public Relations
- Direct marketing
- Pont-of-sale/Packaging
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Term
| What are the distribution strategies? |
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Definition
Direct (avon) versus Indirect (stores or retailers).
Intensive: Sell everywhere. Lowprofit/High volume
Selective: Limit number of sales outlets.
Exclusive: Used to maintain prestige. |
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Term
| What are the differences in positioning? |
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Definition
| Positioning can be accomplished using Attributes,Price,Ability to surpass the competition,Application, and the Product user |
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Term
| Describe a product's lifecycle. |
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Definition
| First come the primary demand which is the introduction, then come market expansion or growth, then the decline, new technology usually comes about, and then changing consumer tastes results in the final downfall |
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Term
| What is VALS psychographics? |
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Definition
Values, attitudes, personality, and lifestyle.
The VALS classification system segments according to resources and decision-making motivation. |
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