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centralized exchange
a system of trade and marketing through specialized intermediaries rather than the direct exchange of goods between buyers and producers
first printed outdoor signs- the forerunner of modern outdoor advertising
premarketing era
the period from prehistoric times to the eighteenth century; buyers and sellers communicated in very primitive ways
mass communication era
the period from the 1700s to the early decades of the 20th century, in which advertisers were able to reach large segments of the population through the mass media
research era
in recent years, advertisers increasingly have been able to identify narrowly defined audience segments through sophisticated research methods
interactive era
communication will increasingly be controlled by consumers who will determine when and where they can be reached with promotional messages
behavioral research
market research that attempts to determine the underlying nature of purchase behavior
handwritten posters in 16th and 17th century England; forerunners of modern advertising
penny press
forerunner of the mass newspaper in the US; first appeared in the 1830s
mass production
a manufacturing technique using specialization and interchangeable parts to achieve production efficiencies
American Association of Advertising Agencies
the national organization of advertising agencies
Pure Food and Drug Act
passed in 1906 by legislation, it was one of the earliest attempts by the federal government to protect consumers
Federal Trade Commission (FTC)
the agency of the federal government empowered to prevent unfair competition and to prevent fraudulent, misleading, or deceptive advertising in interstate commerce
Council of Better Business Bureaus
national organization that coordinates a number of local and national initiatives to protect consumers
Printers' Ink Model Statue
the act directed at fraudulent advertising, prepared and sponsored by Printers' Ink, which was the pioneer advertising magazine
Audit Bureau of Circulations (ABC)
the organization sponsored by publishers, agencies, and advertisers for securing accurate circulation statements
War Advertising Council
founded in 1942 to promote WW2 mobilization; evolved into the Advertising Council
Advertising Council
a nonprofit network of agencies, media, and advertisers dedicated to promoting social programs through advertising
audience fragmentation
the segmenting of mass-media audiences into smaller groups because of diversity of media outlets
permission marketing
asking consumers for permission or to "opt in" before sending them advertising and other forms of marketing communication
the blending of various facets of marketing functions and communication technology to create more efficient and expanded synergies
return-on-investment (ROI)
one measure of the efficiency of a company; how many dollars are produced for every dollar spent
marketing mix
combination of marketing functions, including advertising, used to sell a product
sales promotion
extra incentive for a customer to make an immediate purchase
public relations
communication with various internal and external publics to create an image for a product or corporation
consists of paid notices from identified sponsors normally offered through communication media
distribution channel
the various intermediaries that control the flow of goods from manufacturers to consumers
brand name
the written or spoken part of a trademark
brand extension
these are new product introductions under an existing brand to take advantage of existing brand equity
conjoint analysis
a research technique designed to determine what consumers perceive as a product's most important benefits
product life cycle
the process of a brand moving from introduction to maturity and, eventually, to either adaptation or demise
product differentiation
unique product attributes that set off one brand from another
value gap
the perceived difference between the price of a product and the value ascribed to it by consumers
yield management
a product pricing strategy to control supply and demand
national advertising
advertising by a marketer of a trademarked product or service sold through different outlets
retail advertising
advertising by a merchant who sells directly to the consumer
end-product advertising
building consumer demand by promoting ingredients in a product
direct-response advertising
any form of advertising done in direct marketing, using all types of media
trade advertising
advertising directed to the wholesale or retail merchants or sales agencies through whom the product is sold
industrial advertising
addressed to manufacturers who buy machinery, equipment, raw materials, and the components needed to produce the goods they sell
professional advertising
directed at those in professions who are in a position to recommend the use of a particular product or service to their clients
institutional advertising
done by an organization speaking of its work views, and problems as a whole, to gain public goodwill and support rather than to sell a specific product
idea advertising
used to promote an idea or cause rather than to sell a product or service
service advertising
promotes a service rather than a product
full-service agency
an agency that handles planning, creation, production, and placement of advertising clients
in-house agency
an arrangement whereby the advertiser handles the total agency function by buying individually, on a fee basis, the needed services under the direction of an assigned advertising director
acquisition of broadcast time by an advertiser or an agency in exchange for operating capital or merchandise
a name, term, sign, design, or a unifying combination of them intended to identify and distinguish the product or service from competing products or services
brand equity
the value of how such people as consumers, distrubutors, and salespeople think and feel about a brand relative to its competition 
a group of people who can be identified by some common characteristic, interest, or problem
pioneering stage
the advertising stage of a product in which the need for such a product is not recognized and must be established or in which the need has been established but the success of a commodity in filling that need has to be established
competitive stage
the advertising stage a product reaches when its general usefulness is recognized but its superiority over similar brands has to be established in order to gain preference
retentive stage
the third advertising stage of a product, reached when its general usefulness is widely known, its individual qualities are thoroughly appreciated, and it is satisfied to retain its patronage merely on the strength of its past reputation
target marketing
identifying and communicating with groups of prime prospects
marketing concept
a management orientation that views the needs of consumers as primary to the success of a firm
market segmentation
the division of an entire market of consumers into groups whose similarity makes them a market for products serving their special needs
situation analysis
the part of the advertising plan that answers the questions: Where are we today and how did we get here? Consists of strengths, weaknesses, opportunities, and threats
product-user segmentation
identifying consumers by the amount of product usage
brand loyalty
a consumer's preference for and commitment to a specific brand
lifestyle segmentation
identifying consumers by combining several demographics and lifestyles
Values and Lifestyle System (VALS)
developed by SRI International to cluster consumers according to several variables in order to predict consumer behavior
niche marketing
a combination of product and target market strategy; focuses on niches or comparatively narrow windows of opportunity within a broad product market or industry
segmenting a market by creating a product to meet the needs of a select group or by using a distinctive advertising appeal to meet the needs of a specialized group, without making changes in the physical product
market profile
a demographic and psychographic description of the people or the households of a product's market
a description of a market based on factors such as attitudes, opinions, interests, perceptions, personalities, and lifestyles of consumers comprising that market
target audience
that group that composes the present and potential prospects for a product or service
Producer Led 4 Ps
price, product, promotion, place
Consumer Led 4 Cs
consumer, cost, convenience, communication
Claude Hopkins
Reason why advertising; looked at advertising as a science; had laws of good advertising; used logical and ration appeals; said that products solve problems
Rosser Reeves
Unique selling proposition; there is a formula you can apply to everything
Rosser Reeves' formula
repetition (pick and repeat a key word in the ad), continuity (last ad in the campaign should look like the first), single and simple message, unique selling proposition (something that no competitor has)
David Ogilvy
Ogilvy's scorecard; used a type of grading rubric: all layouts should look like a magazine page, ads should use photographs, type should be blank ink on a white background
producer-led paradigm
predictable, controllable consumers; mass-produced; rigid and formulaic advertising; centralization, standardization
3 people of the creative revolution
Bill Bernbach, David Ogilvy, Mary Wells
Bill Berbach
known for the VW car campaigns; got rid of assembly lines, but had small teams work on the entire project; insisted on agency autonomy
difference between producer-led vs. consumer-led
producer led: company origin, STRESS ON FUNCTIONALITY consumer led: market origin, STRESS ON STYLE
hip consumerism
advertising in consumer-led paradigm; ads express new ideas (products make you free and help you stand out)
evolution of ways of buying
traditionally: countrystore, new: department store, now: mail-order house
campaign components
objective, strategy, tactics
strategic planning key parts
brand equity audit analysis, strategic opinions and recommendations, brand equity research, and creative brief
creative brief
single page that summarizes the product and its competitors, objective, target market, desired brand or positioning, key features and benefits, and the message (One Thing)
communication objectives
awareness, branding, positioning
features vs. benefits
people don't buy features, they buy benefits
media planning
how you get the ads out to your target markets
key dimensions of media planning
budget, continuity, frequency, reach
2 ways to measure reach
impressions and gross rating points (GRP)
what goes into choosing a frequency level?
1. audience motivation 2. purchase decision (involvement) 3. message complexity 4. advertising effectiveness 5. time of day 6. competitive pressure
continuity scheduling options
steady, pulsing, flighting
steady continuity
same levels of frequency through whole campaign
pulsing continuity
weeks of higher frequency with weeks of lower frequency
flighting continuity
periods of high frequency followed by periods of none; ex: seasonal ads
when to use steady vs. flighting vs. pulsing
if a long campaign, use pulsing or flighting, if a campaign in 6 months or less, use steady
how to measure cost effectiveness
dollars per GRP; choose the cheapest answer
newspaper agent
direct employee of a single publication 
space broker
not direct employees; independent business
space wholesaler
independent businesses, much bigger volume of clients; start with the media and go to businesses without the back and forth
concession agent
buy ads and sell to businesses; huge volume because they buy everything so everyone has to go through them
possibilities of effectiveness
cause you to buy (powerful), persuade you to buy (not powerful)' pressure you to buy (potentially powerful)
bundles of needs, urges, and instincts we can't control; conditioning (overt and subliminal); powerful
people have needs and wishes that they can control; advertisers should deliver truthful and dependable information; says advertising is not powerful
born into and taught general ways of understanding the world; pressures to buy can be negative or positive; representation (signification)
techniques that speakers use to connect to audiences (visual vs. narrative)
visual rhetorics
ways of showing; allegory (symbols that reveal the nature of the world), mimesis (images as "windows to the world", perspective), a show (for flattery and entertainment)
narrative rhetorics
way of telling; epigram (short paradoxical statement of surprising insight), advice (ex: Old Spice commercials), parable (a story that teaches a lesson)

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