Advertising Types and Development

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Questions and Answers

Explain the differences between product advertising and institutional advertising.

Product advertisements focus on selling a product or service, while institutional advertisements are used to build goodwill for an organization.

Describe the steps used to develop an advertising program.

Identify the target audience, specify advertising objectives, set the advertising budget, design the advertisement, create the message, select the media, and schedule the advertising.

What is direct mail advertising?

Direct mail can be targeted at very selective audiences but has a high cost per contact.

What are the characteristics of outdoor advertising?

<p>It provides repeat exposures, but its message must be very short and simple.</p> Signup and view all the answers

What is internet advertising?

<p>Internet advertising can be interactive but is difficult to measure in effectiveness.</p> Signup and view all the answers

What are the advantages of Yellow Pages advertising?

<p>It has a long use period and is available 24 hours a day.</p> Signup and view all the answers

What are the advantages and disadvantages of newspapers as a medium?

<p>Newspapers provide excellent local market coverage and quick changes but have a short life span and poor color.</p> Signup and view all the answers

What does magazine advertising allow?

<p>Magazine advertising can target specific audiences and convey complex information.</p> Signup and view all the answers

What are the characteristics of radio advertising?

<p>It is inexpensive and can be placed quickly, but has no visual element and is perishable.</p> Signup and view all the answers

What are the key features of television advertising?

<p>Television advertising reaches large audiences and incorporates picture, print, sound, and motion.</p> Signup and view all the answers

What are the strengths and weaknesses of consumer-oriented sales promotions?

<p>Coupons encourage retailer support but may delay purchases; samples encourage product trial but can be expensive.</p> Signup and view all the answers

What is public relations in advertising?

<p>Public relations activities communicate positive aspects of a business, using tools like publicity.</p> Signup and view all the answers

What is the difference between pioneering and competitive ads?

<p>Pioneering ads inform about a product; competitive ads persuade consumers to choose a specific brand.</p> Signup and view all the answers

What is the purpose of an institutional advertisement?

<p>To build goodwill or an image for an organization.</p> Signup and view all the answers

How can advertising objectives influence other decisions?

<p>They can influence media selection, campaign evaluation, and the hierarchy of effects.</p> Signup and view all the answers

What is a potential shortcoming of using a celebrity spokesperson?

<p>The spokesperson's image may change, becoming inconsistent with the brand's image.</p> Signup and view all the answers

Is seeing the same ad in different media an example of reach or frequency?

<p>Reach.</p> Signup and view all the answers

Why has the internet become a popular advertising medium?

<p>It offers interactive and visual messaging that reaches younger consumers.</p> Signup and view all the answers

What factors must be considered when choosing alternative media?

<p>Media habits of the target audience, product's attributes, reach, and cost.</p> Signup and view all the answers

What is the difference between pretesting and post-testing advertising copy?

<p>Pretests verify communication before placement; post-tests assess effectiveness after exposure.</p> Signup and view all the answers

What is the difference between aided and unaided recall posttests?

<p>Aided recall prompts respondents about ads; unaided recall tests if they remember without prompts.</p> Signup and view all the answers

What is the difference between a coupon and a deal?

<p>A coupon provides a reduced price, whereas a deal is a short-term price reduction.</p> Signup and view all the answers

Which sales promotional tool is most common for new products?

<p>Samples.</p> Signup and view all the answers

Which trade promotion is used on an ongoing basis?

<p>Trade allowance.</p> Signup and view all the answers

What is a news release?

<p>An announcement regarding changes in the company or product line.</p> Signup and view all the answers

What is the difference between government regulation and self-regulation?

<p>Government regulation involves legal controls; self-regulation involves ethical guidelines by the industry.</p> Signup and view all the answers

What is unique about 3-D advertising compared to traditional advertising?

<p>It immerses consumers in an experience rather than just being observational.</p> Signup and view all the answers

Another name for competitive advertising is __________.

<p>persuasive advertising.</p> Signup and view all the answers

What type of advertisement does General Motors use in their community-oriented ads?

<p>Advocacy institutional advertisement.</p> Signup and view all the answers

In advertising, __________ suggest to the audience that the product will increase the attractiveness of the user.

<p>SEX Appeals.</p> Signup and view all the answers

How is reach defined in advertising?

<p>The number of different people or households exposed to an advertisement.</p> Signup and view all the answers

What is a disadvantage of television as an advertising medium?

<p>It has a perishable message.</p> Signup and view all the answers

Which statement regarding newspapers as an advertising medium is most accurate?

<p>National ad campaigns rarely include newspapers unless in conjunction with local distributors.</p> Signup and view all the answers

What is click fraud?

<p>The deceptive clicking of ads to increase costs for advertisers.</p> Signup and view all the answers

What does a Starch test do?

<p>Scores an ad using aided recall to measure audience memory.</p> Signup and view all the answers

Three commonly used trade promotions are __________.

<p>allowances and discounts, cooperative advertising, and salesforce training.</p> Signup and view all the answers

What is advertising?

<p>Any paid form of nonpersonal communication about an organization, good, or service.</p> Signup and view all the answers

What are consumer-oriented sales promotions?

<p>Sales tools used to support advertising and selling directed to ultimate consumers.</p> Signup and view all the answers

What is cooperative advertising?

<p>Programs where a manufacturer pays a retailer's local advertising expenses.</p> Signup and view all the answers

What does 'cost per thousand' (cpm) refer to?

<p>The cost of reaching one thousand individuals or households.</p> Signup and view all the answers

What is frequency in advertising?

<p>The average number of times a person is exposed to a message.</p> Signup and view all the answers

What is a full-service agency?

<p>An advertising agency that provides the complete range of services.</p> Signup and view all the answers

What are gross rating points (GRPs)?

<p>A reference number obtained by multiplying reach by frequency.</p> Signup and view all the answers

What are infomercials?

<p>Program-length advertisements that educate potential customers.</p> Signup and view all the answers

What are in-house agencies?

<p>Agencies that consist of a company's advertising staff.</p> Signup and view all the answers

What are institutional advertisements?

<p>Advertisements designed to build goodwill for an organization.</p> Signup and view all the answers

What are limited-service agencies?

<p>Advertising agencies that specialize in one aspect of the advertising process.</p> Signup and view all the answers

What are posttests?

<p>Tests conducted after an advertisement has been shown to determine its effectiveness.</p> Signup and view all the answers

What are pretests?

<p>Tests conducted before an advertisement is placed to assess communication.</p> Signup and view all the answers

What are product advertisements?

<p>Advertisements focusing on selling goods or services.</p> Signup and view all the answers

What is product placement?

<p>Using a brand-name product in media like movies or shows.</p> Signup and view all the answers

What is rating in advertising?

<p>The percentage of households tuned to a specific show or station.</p> Signup and view all the answers

What does reach refer to in advertising?

<p>The number of different people or households exposed to an advertisement.</p> Signup and view all the answers

What are trade-oriented sales promotions?

<p>Sales tools supporting advertising directed to wholesalers or retailers.</p> Signup and view all the answers

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Study Notes

Advertising Types

  • Product Advertising: Aims to sell a specific product or service, with three forms:
    • Pioneering Ads: Introduce a product, informing people about its purpose and availability.
    • Competitive Ads: Persuade consumers to choose a brand over competitors by highlighting unique features.
    • Reminder Ads: Reinforce brand knowledge among existing customers.
  • Institutional Advertising: Focuses on building goodwill or a company’s image, including:
    • Advocacy Ads: Express the company's stance on social issues.

Advertising Program Development

  • Key steps include:
    • Identifying the target audience
    • Specifying advertising objectives
    • Setting the advertising budget
    • Designing the advertisement
    • Creating the message
    • Selecting media platforms
    • Scheduling advertising timings

Advertising Mediums

  • Direct Mail: Targets specific audiences with high per-contact costs.
  • Outdoor Advertising: Offers repeated exposure; messages must be brief and straightforward.
  • Internet Advertising: Interactive format; effectiveness can be difficult to measure.
  • Yellow Pages: Available 24/7; challenges include multiple directories and infrequent updates.
  • Newspapers: Great for local coverage; has a short lifespan and limited color quality.
  • Magazine Advertising: Can target specific audiences; more time-consuming and pricey.
  • Radio Advertising: Cost-effective with rapid placement; lacks visual component and is ephemeral.
  • Television Advertising: Reaches vast audiences using various media but is costly and transient.

Sales Promotions

  • Consumer-Oriented: Promote products directly to consumers to stimulate demand.
    • Coupons: Discount price for redemption; may delay purchases.
    • Deals: Temporary price reductions; can reduce perceived value.
    • Samples: Encourage product trials, though expensive.
    • Loyalty Programs: Aim to foster long-term customer loyalty but are costly.
  • Trade-Oriented: Support advertising targeted at wholesalers and distributors.
    • Allowances and Discounts: Encourage higher volumes but may alter ordering patterns.
    • Cooperative Advertising: Manufacturer subsidizes retailer advertising costs.
    • Salesforce Training: Enhances retailer knowledge and selling skills.

Testing and Evaluation

  • Pretesting: Checks communication effectiveness before ad launch; selects among ad variants.
  • Post-Testing: Assesses whether the advertisement achieved its goals after the campaign.
  • Recall Tests: Measure recognition (aided vs. unaided) to evaluate advertisement memory.

Advertising Objectives and Effects

  • Advertising objectives influence media selection and campaign evaluation processes.
  • Reach: Number of unique people or households exposed to an advertisement.
  • Frequency: Average times individuals encounter the advertisement.

Regulations in Advertising

  • Government Regulation: Enforced laws from government entities.
  • Self-Regulation: Ethical guidelines developed by trade associations and advertising agencies.

Innovative Advertising

  • 3-D Advertising: Immersive experiences for consumers, engaging them actively rather than passively.

Key Terminology

  • Gross Rating Points (GRPs): Measure combining reach and frequency for advertisement efficiency.
  • Infomercials: Extended advertisements providing educational content to audiences.
  • Click Fraud: Deceptive practices increasing ad costs through false engagements.

General Insights

  • Sales promotions are critical for both consumer engagement and trade relationships.
  • Media selection should consider target audience behavior, product attributes, and cost efficiency (CPM).
  • The effectiveness of advertisements can be enhanced through proper testing, targeting, and follow-up evaluation.

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