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JOUR 2000:Study Guide
Conflict of Interest |
a situation that occurs when an advertising agency is handling two or more clients that compete with one another. |
Cost-Plus Fee |
an agency compensation agreement whereby the agency bills its costs plus a fair profit margin to its client. |
Creative Strategy |
a document that contains the objectives, target audience description, consumer promise, key copy support points, and brand personality that the advertising campaign must address. |
Creative Boutiques |
agencies that limit their services to the conceptualization and production of creative executions. |
Design Houses |
similar to creative boutiques, with more of a graphic design emphasis, work will include corporate projects such as corporate standards and annual reports in addition to marketing materials. |
Fixed Fee |
compensation agreement that specifies a fixed amount of money to be paid for certain services over a period of time. |
Full-Service Agency |
an advertising agency with the size, staff, and resources to provide four major departmental functions: account management, creative services, media planning and buying, and research. |
Markup |
a way agencies make money by adding an additional charge to the cost of production and other services. Traditionally, agencies marked up these materials and services 17.65% of the net cost. |
Media Billing(s) |
the amount of money an agency or client account places in media. |
Media Buying |
the implementation of the media plan; the purchase of media. |
Media Buying Services |
companies that specialize in handling media planning and buying for their clients. |
Media Commission |
a traditional system for agency compensation whereby the agency retains a percentage (traditionally 15%) of the media space and time it purchases for its clients. |
Perceived Value |
the percieved unique value or brand personality of a product or service. |
Performance Fee |
an agency compensation agreement that provides incentives for meeting the client's awareness or sales goals. Compensation is either increased or decreased depending on the results.
Pre-press -preparation of production of print materials, often done in-house at the agency. |
Production |
department within an advertising agency responsible for the production of the copywriter and art director's work. May refer to either print production or broadcast production. |
Promotion Mix |
the various marketing communications disciplines a company may use to communicate with prospects and customers: advertising, public relations, sales promotion, direct response, packaging, and personal selling. |
RFP |
Request for Proposal. A request from a client to a number of agencies to prepare an initial credentials presentation which usually includes initial qualifications for the requesting client. |
Service Cluster Teams |
a team within an agency with the function to serve a client with the services which best meet the client's brand strategy. |
Short List |
a list of agencies compiled by a client to compet for the client's account. Often, the second stage of a review. |
Sliding Scale |
agency compensation system that lowers the media commission percentage as the media budget increases. |
"Spec" |
short for "Speculative Creative." Ads, commercials and promotional materials that represent the agency's views of what the advertising should be. |
Strategy Review Board |
a group of agency senior executives responsible for reviewing major new strategies and campaigns being developed for the agency's clients. |
Traffic |
a department within an agency staffed with account coordinators who are responsible for steering the various creative projects through the different agency departments making sure approval procedures are followed and deadlines are met. |
Affirmative Disclosure |
The FTC uses affirmative disclosure rulings to force businesses to include health and safety information, credit terms and agreements, product ingredients and warning labels. These rulings are designed to prevent consumer deception before they can be harmed. |
Caveat emptor |
Latin for "let the buyer beware" |
Cease and Desist order |
legal order issued by an agency or court with jurisdiction that your ad must stop running immediately or fines will be assessed. |
Commercial Speech Doctrine |
The series of Supreme Court cases that have resulted in the current level of protection offered to advertising. |
Disclaimer |
a written statement intended to clarify claims made in the body copy of an advertisement. |
Deontological ethics |
The evaluation of right and wrong based on intentions, regardless of outcomes. Deontological = intent |
Guarantee |
A guarantee is a promise by the manufacturer to correct defects according to the terms stated. |
laissez-faire |
Status quo, leaving the status of the matter alone, and choosing not to act in a manner to change it. |
Merchantability |
The implied claim that the product will work as expected if correctly used. Software is an interesting exception to this rule. Software is often shipped with "bugs", and these bugs often prevent the software from fulling its promised function. (This might also be called "fraud.") |
Material claims |
Any claim that affects a consumers choice or behavior. |
Normative expectations |
What a reasonable person might normally expect. |
Physiological needs |
The basic requirements of life, including shelter, clothing, food, air and water. |
Policy |
A form of unofficial guidelines that private firms, individuals, and organizations create for internal (and in some cases, external) conduct. (Policy is not regulation.) |
Reasonable basis |
A rationale (or foundation) for making claims that advertisers must have prior to making any claims about a product or service. |
Reasonable consumer |
A standard of judgment. The crux of whether or not a claim is deceptive or merely puffery often relies on the consumer's likely interpretation. The FTC created a "test" to make sure they consider questions of advertising deception from the viewpoint of reasonable consumers. This is pretty much a circular definition - a reasonable consumer is one who is acting reasonably (not as an expert nor as an idiot) at the time under normal circumstances. |
Susceptibility |
The level of expertness or sophistication the typical consumer has in regard to product use or purchasing. For example, the FTC is not likely to perceive medical doctors as highly susceptible to advertising claims and in great need of regulation to remedy any problem. However, the commission will apply a much stricter standard when the intended target of an ad is somehow disadvantaged (or susceptible), such as the elderly or children. There is current discussion in this area related to ads for casinos and lotteries and people with gambling problems. |
Teleological ethics |
The evaluation of right and wrong based on the social benefits derived by the outcome of an action without regard for the intention of the action. Teleological = results. |
Warranty |
A promise of performance, attributes or benefits made by a manufacturer. It becomes a contract between the manufacturer and the consumer. For example, Kodak advertisements say that their film is free from defects in materials and workmanship. |
Advertising Effectiveness |
a measure to determine the extent that the advertising campaign met the objectives that were established. |
Advertising Evaluation |
a process to determine the effectiveness of the advertising campaign. Four measures used for evaluation include recall, persuasion, entertainment, and sales. The evaluation can take place in rough stage prior to the final production of the advertising or when it is complete for all measures except sales. |
Background Review |
ometimes called a situation analysis, it is a recap of what is currently known about the Brand. Some common parameters with the background review include: Current users, geographic, seasonality, purchase cycle, creative requirements, competitive sales, and competitive spending. |
Consumer orientation |
to think about the brand from the consumer's point-of-view instead of the manufacturer's viewpoint. |
Creative Brief |
this is used to brief the creative department. It contains a creative strategy and other background information needed to write and visually create advertising. |
Creative Platform |
similar to a creative brief, but follows a more exacting format. The parameters contained are usually target audience, benefit, support, and some type of tone and manner or brand character statement. |
Creative Strategy |
How the advertiser plans to fulfill the objective. A good template is to convince _____, to use _____, instead of _____, because _____. |
Decision Grid |
a quantitative weighting system used to make complicated decisions. |
Marketing Plan/Strategy |
the five Ps: price, product, promotion, place, and people. Also the Advertising, creative, and media objectives. |
Positioning |
art of arranging the mental picture of your Brand maintained by the target audience. Positioning is done to the mind, not the product. |
Public Relations |
part of the "Promotion" P. It seeks to use publicity and other forms of non paid communication to influence attitudes and buying behavior. |
Reach |
The percent of the target group which has been exposed to the advertising at least once. It is an unduplicated number. |
Sales Promotion |
part of the "Promotion" P. It seeks to use small rewards to change the value relationship of the Brand. An example is a fifty cent coupon. |
Target Audience |
the group of people most likely to purchase of the product. These people can be users, those who influence the users, and actual buyers. |
Trade |
retailers and wholesales in the distribution channel who will resell the product to the end users or consumer. |
Above-the-line |
All expenditures appropriated to advertising media. |
Audience composition |
A description of a media vehicle's total audience in terms of demographic classification of individuals. |
Below-the-line |
All promotional expenditures which are not allocated to paid media advertising. |
Blinkering |
One of four types of ad schedules that is characterized with short in-and-out bursts of advertising throughout the ad campaign period. Hiatuses are approximately the same length and are brief. |
Circulation |
The total number of copies of a newspaper or magazine that is distributed by subscription, newsstand and/or bulk. |
Continuity |
refers to a continuous ad schedule where media weight is scheduled constantly throughout the year with no variation in the amount of advertising and no hiatus. |
Co-Op Advertising |
Retail advertising that is partly or fully funded by a manufacturer. |
CPM (Cost per Thousand) |
A method of comparison whereby the cost of an advertising vehicle is multiplied by a thousand and divided into the vehicle's total audience. The CPM shows how much it costs to reach a thousand audience members and thus it can be used to compare which advertising vehicles are most cost efficient. |
Daypart |
The part of a broadcast day when a particular program is either seen or heard. It also refers to how advertising time slots are grouped, with the most common being morning, afternoon, early evening, night and late night. |
Double Truck |
A two-page spread in newspapers where the editorial content or the advertising runs across the gutter. |
Flighting |
One of four types of ad schedules which includes periodic waves of advertising followed by long periods of total inactivity. |
GRP (Gross Rating Points) |
The summation of rating points. A duplicated figure that shows how much weight a particular media buy is delivering. |
High-involvement |
Refers to a product that requires considerable thought and consideration from consumers when it comes to purchase, a computer for example. |
HUT (Households Using Television) |
A Nielsen term which refers to the percentage of households that is tuning into television at a given time. |
Low-involvement |
Refers to a product that requires little thought and consideration from consumers when it comes to purchase, a package of gum for example. |
Media fragmentation |
The splintering of mass media audiences into small, specific groups. |
Nontraditional Media |
Media that are often driven by technology and can be any new media form that allows for commercial expression. |
Pass-along Readership |
Magazine that gets read by a person other than the subscriber or the purchaser of the magazine. Pass-along readers are those who get the magazine second hand, patients in a doctor's reception room for example |
Precision Marketing |
marketing aimed at a specific segment or even individuals
Prospects -Individuals identified as those most predisposed to buying a company's product or service. |
Pulsing |
One of four types of ad schedules which combines continuity and flighting. Pulsing includes a continuous base of advertising that is reinforced by periodic bursts of heavier media action. |
PUT (Person Using Television) |
A Nielsen term that refers to the percentage of individuals who tune into television during a given time period. It reports the total persons tuned into TV, not to specific programs. |
Ratings |
A figure that reports the number of different individuals who tuned into the electronic media or read the print media over a specific time period. |
Readership |
A term used to refer to a publication's audience which tells the total number of different persons reading an average copy of a magazine. |
Syndicated Research |
Data that is sold to companies by independent research firms. |
Target Market |
A group of individuals that has been identified as having real sales potential for the brand and can be defined in concrete terms that can include demographics, psychographics, product usage, etc. |
Target Profile |
For media planning purposes, the target audience is quantified and defined in terms of demographics, psychographics, product usage and media usage. |
Traditional Media |
These include newspapers, magazine, television, radio, outdoor advertising and yellow pages, they are the media that are established and have been in the marketplace for a long time. |
Unit Cost |
The amount of money charged for a specific unit of time or space in the media. |
Advergames |
video games commissioned by a brand and developed around a strong brand theme and presence |
Annual Report |
presents pertinent financial data of the past year ot stockholders and stakeholders |
Benefit |
what the advertiser promises the consumer |
Branded Integration |
The practice of working a brand into the fabric or plot of a film or video, in a more significant way than a simple product placement. Involving multiple mentions or scenes. |
"Call to action" (CTA) |
Ad statements urging specific actions such as purchase, registration, site visit, etc. |
Cause Marketing |
An emotional aid. Often a brand will help a charity that relates to the targeted consumers. |
Chutzpa |
bold, with attitude |
Clitchik |
well-turned phrase at the end of an ad |
Closer |
The finishing touch on an argument. ex) "If you can read this, thank a teacher." |
Companion ad |
one of two or more online ads working to extend or reinforce the message in other ads on the same web page |
Drop |
the actual act of mailing direct mailing material |
Imaginative Divergence |
the surprising part of the concept. |
Landing Page |
Destination web page where users land after clicking on an ad or a link |
Lift Note |
a note or added small piece in the mailing which adds urgency and extra incentive to prompt reply |
Maven |
an expert |
Pay per action (PPA) |
An online display ad for which advertisers pay only when a click-through results in a defined action such as a purchase, registration, appointment for test drive, etc. |
Pay per click (PPC) |
advertisers only pay when a user clicks |
Premium |
a gift. Rule of thumb- when you offer something worth getting, response is greater |
Schtick |
a piece of business |
Thumbnails |
small sketches of possible as ideas or layout approaches for an ad. |