Questions and Answers
What are the 6 key components of the definition of advertising?
- Advertising is a type of communication 2. Advertising is typically directed to receivers 3. Advertising is paid for by sponsors 4. Advertising is mediated, meaning it reaches us through a channel of communication referred to as a medium 5. Most advertising is intended to be persuasive 6. An ad identifies its sponsor
Which of the 6 key components of advertising do product placements not fulfill?
Product placement advertisements don't identify their sponsor
What is the ultimate goal of marketing?
To earn a profit for the firm by exchanging products or services with customers who need or want them
What are the 4 P's of the marketing mix and under which does advertising fall?
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What guidance does marketing strategy give to advertising planning?
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What are the 7 functions of advertising as a marketing tool?
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Within integrated marketing communications, advertising is the messaging option over which a company has the greatest control.
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Who is regarded as the 'father' of modern advertising?
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What is the term for an advertisement that is free of charge to the advertiser because it serves in the best interest of the public?
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What is a marketing function that identifies products and their source and differentiates them from similar products and competitors?
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What decade was the first ad agency formed?
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In 1839, what technological advance led to a new level of creativity, reality, and credibility in advertising?
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What is the association of a brand's features and benefits with a certain set of customer needs, setting it apart from competitors in the mind of the consumer?
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Which of these time periods was when the U.S. saw a significant growth in the number of large national agencies and societal concern about the effects of advertising?
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What did Congress pass in 1914 to protect the public from unfair business practices that included misleading and deceptive advertising?
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In a free-market system, consumers can choose the values they want in products they buy.
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Advertising, by its very nature, is not complete information. It is biased in favor of the advertiser.
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What principle states that an economy produces more goods and services than can be consumed?
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What government organization is the major regulator of advertising and is charged with keeping the marketing process competitive and fair?
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What is the term for doing what the advertiser and the advertiser's peers believe is morally right in a given situation?
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Almost half of the billions of dollars spent each year on advertising in the United States is devoted to what?
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What type of advertising attempts to create a favorable opinion of the business as a whole and for a long period of time?
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Which of the following is not a way that local and national advertisers differ?
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Advertising agencies have a legal, financial, and ethical obligation to who?
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What type of agency is equipped to serve its clients in all areas of communication and promotion?
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Study Notes
Definition of Advertising
- Advertising is a communication method directed at specific receivers.
- It is funded by sponsors and mediated through various channels.
- Primarily aims to persuade and must identify its sponsor.
Product Placement Limitations
- Product placements fail to identify their sponsors, differing from traditional ads.
Ultimate Marketing Goal
- The main objective of marketing is to generate profit through the exchange of products or services with customers.
Marketing Mix
- The 4 P's include Product, Price, Place, and Promotion, with advertising falling under Promotion.
Role of Marketing Strategy
- A marketing strategy guides advertising by identifying target markets, appropriate advertising venues, and specific advertising goals.
Functions of Advertising
- Advertising serves multiple purposes: identifying products, communicating information, inducing trial and reuse, stimulating distribution, increasing usage, building brand loyalty, and lowering sales costs.
Integrated Marketing Communications
- Advertising allows for the highest level of control in messaging compared to other marketing options.
Historical Figure
- Albert Lasker is recognized as the "father" of modern advertising.
Public Service Announcement
- An advertisement that benefits the public interest, offered at no charge to the advertiser is termed a Public Service Announcement.
Branding Concept
- Branding involves identifying products and differentiating them from competitors.
First Advertising Agency
- The 1860s marked the formation of the first advertising agency.
Advances in Advertising
- The introduction of photography in 1839 enhanced creativity and credibility in advertising.
Positioning Concept
- Positioning connects a brand's benefits with specific customer needs, distinguishing it from competitors.
Growth Era of Advertising
- The Golden Age saw a rise in large national agencies and increased societal concern regarding advertising effects.
Federal Trade Commission Act
- Enacted in 1914, this act protects the public against misleading advertising practices.
Free-Market System
- Consumers have the freedom to select products based on their values in a free-market economy.
Nature of Advertising
- Advertising provides biased information favoring the advertiser, indicating it does not present complete data.
Economic Principle
- The concept of Abundance describes producing more goods and services than can be consumed.
Major Advertising Regulator
- The Federal Trade Commission oversees advertising regulation, ensuring competitive and fair marketing processes.
Ethical Advertising
- Refers to aligning actions with what advertisers and peers consider morally right.
Local Advertising Spending
- Nearly half of U.S. advertising expenditure goes toward local advertising efforts.
Institutional Advertising
- This type of advertising aims to foster long-term positive perceptions of a business as a whole.
Local vs. National Advertisers
- Customer persona is not a differentiating factor between local and national advertisers.
Agency Responsibilities
- Advertising agencies hold legal, financial, and ethical obligations primarily towards their clients.
Full-Service Agencies
- Agencies that provide comprehensive communication and promotion services are defined as full-service agencies.
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Description
Test your knowledge of the key components and definitions of advertising with these flashcards covering Chapters 1-9. This quiz will help solidify your understanding of the fundamental principles that define advertising communication and its functions. Perfect for students in advertising courses!
