Marketing Exam 3 Flashcards

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Questions and Answers

What is advertising?

Communication only through social media

Any form of impersonal, sponsor-paid communication (correct)

Communication that requires two-way interaction

A form of personal communication

Why do many brands with a large market share spend proportionally less on advertising compared to brands with a small market share?

Beyond a certain volume of promotion, diminishing returns set in.

What does the advertising response function help marketers do?

Use their budget wisely.

Why do companies with new brands that have a small market share tend to spend proportionately more for advertising compared to those with a large market share?

To achieve a certain minimum level of exposure to measurably affect purchase habits. Signup and view all the answers

What is institutional advertising designed for?

To enhance a company's image rather than promote a particular product. Signup and view all the answers

What does advocacy advertising involve?

An organization expressing its views on controversial issues or responding to media attacks. Signup and view all the answers

What does product advertising do?

Touts the benefits of a specific good or service. Signup and view all the answers

What are the three types of product advertising?

Pioneering advertising, competitive advertising, and comparative advertising. Signup and view all the answers

When is pioneering advertising heavily utilized?

During the introductory stage of the product life cycle. Signup and view all the answers

What is competitive advertising designed to do?

Influence demand for a specific brand. Signup and view all the answers

What does comparative advertising compare?

Two or more specifically named or shown competing brands on one or more specific attributes. Signup and view all the answers

What is the purpose of an advertising campaign?

To focus on a common theme, slogan, and set of advertising appeals over a defined period. Signup and view all the answers

What is an advertising objective?

A specific communication task that a campaign should accomplish for a specific target audience. Signup and view all the answers

What method is used for setting advertising objectives?

DAGMAR (Defining Advertising Goals for Measured Advertising Results). Signup and view all the answers

What is a feature of a product?

An attribute. Signup and view all the answers

What is a benefit in advertising?

What consumers will receive or achieve by using the product. Signup and view all the answers

What does an appeal in advertising identify?

A reason for a person to buy a product. Signup and view all the answers

What is a unique selling proposition?

The advertising appeal that becomes the campaign slogan. Signup and view all the answers

What does an animated product symbol do?

Creates a character that represents the product in advertisements. Signup and view all the answers

What is message execution in advertising?

The way the advertisement portrays its information. Signup and view all the answers

What is meant by medium in advertising?

The channel used to convey a message to a target market. Signup and view all the answers

What is media planning?

The series of decisions advertisers make regarding the selection and use of media. Signup and view all the answers

What affects the selection of media in advertising?

The appeal and executional style of the ad. Signup and view all the answers

What is outdoor advertising characterized as?

Flexible and low cost. Signup and view all the answers

What is the advantage of newspaper advertising?

Being both timely and geographically flexible. Signup and view all the answers

What is cooperative advertising?

An arrangement where the manufacturer and retailer split the cost. Signup and view all the answers

What does advergaming involve?

Placing advertising messages in web-based and video games. Signup and view all the answers

What are alternative media?

Mediums that are non-traditional. Signup and view all the answers

What is a media mix?

How much space or time will be placed in each advertising medium. Signup and view all the answers

What is not used for making a media mix decision?

Media schedule. Signup and view all the answers

What is cost per contact?

The cost of reaching one member of the target market. Signup and view all the answers

What does reach measure?

The number of target consumers exposed to a commercial at least once. Signup and view all the answers

What is frequency in advertising?

A measure of the number of times an individual is exposed to a brand message. Signup and view all the answers

What is audience selectivity?

The ability of an advertising medium to reach a precisely defined market. Signup and view all the answers

What does flexibility of the medium refer to?

The ability to change the messages to fit changing market. Signup and view all the answers

What is noise level in advertising?

The amount of distractions involved with a type of medium. Signup and view all the answers

What is the lowest noise level medium?

Direct mail. Signup and view all the answers

What does media fragmentation indicate?

Media planners have many more media options today. Signup and view all the answers

What does a media schedule designate?

The medium or media to be used, specific vehicles, and insertion dates. Signup and view all the answers

What is pioneering advertising used for?

Stimulate demand for a new product or product category. Signup and view all the answers

What is continuous media schedule?

Advertising based on reminder for products in the later stages of the product life cycle. Signup and view all the answers

What is flighted media schedule?

Heavily schedules ads for a period then drops them and repeats. Signup and view all the answers

What does pulsing combine?

Continuous and flighted media schedules. Signup and view all the answers

What is recency planning?

Influences brand choice of people ready to buy. Signup and view all the answers

What can publicity prompt for advertisers?

Free news stories or positive word of mouth. Signup and view all the answers

What is the purpose of promotion by marketers?

To inform, persuade, and remind potential buyers about a product. Signup and view all the answers

What is the main function of a promotional strategy?

Convince target customers that a firm's products offer competitive advantages. Signup and view all the answers

What is a competitive advantage?

A unique aspect of an organization that draws customers away from competitors. Signup and view all the answers

What is communication?

The process of exchanging or sharing meaning through symbols. Signup and view all the answers

What are the two major categories of communication?

Mass and interpersonal. Signup and view all the answers

What comprises the communication process?

Encoding, decoding, channel, sender, and receiver. Signup and view all the answers

Who is the sender in communication?

The originator of the message. Signup and view all the answers

What is encoding?

The conversion of a sender's ideas into a message. Signup and view all the answers

What is decoding?

The interpretation of symbols sent by the source. Signup and view all the answers

What are channels in communication?

The transmitters of the message. Signup and view all the answers

Who are receivers in communication?

People who decode the message. Signup and view all the answers

What is feedback in communication?

A receiver's response to a message. Signup and view all the answers

What are the four basic tasks of promotion?

Informing, persuading, reminding, and connecting. Signup and view all the answers

When is informative promotion generally used?

During the early stages of the product life cycle. Signup and view all the answers

What is the goal of persuasive promotion?

To stimulate a purchase or an action. Signup and view all the answers

What is reminder promotion used for?

To keep a familiar brand name in the public's mind. Signup and view all the answers

What does the promotional mix include?

Product, promotion, price, and place. Signup and view all the answers

What are internal costs associated with publicity?

Costs that a company incurs in attracting attention to a product. Signup and view all the answers

What are sales promotions?

Trade shows, coupons, premiums, and vacation giveaways. Signup and view all the answers

What is personal selling?

Planned, face-to-face presentations with prospective purchasers. Signup and view all the answers

What is public relations best at doing?

Drawing attention to a product or company. Signup and view all the answers

Study Notes

Advertising Concepts

Advertising is an impersonal, sponsor-paid, one-way communication method, encompassing mediums like commercials and magazine inserts.
Advertising expenditures increased nearly 5% in 2011.
Brands with large market shares spend less on advertising due to diminishing returns beyond certain promotion volumes.
New brands with small market shares invest more in advertising to achieve necessary exposure for impacting purchase decisions.

Types of Advertising

Institutional Advertising: Enhances a company’s image rather than promoting a specific product; fosters a favorable attitude without a direct call to action.
Advocacy Advertising: Organizations express views on controversial issues or respond to negative media coverage.
Product Advertising: Highlights benefits of a specific good or service and includes categories such as pioneering, competitive, and comparative advertising.

Advertising Strategies

Pioneering Advertising: Used during the product's introduction to stimulate demand for new products.
Competitive Advertising: Aims to influence demand for a specific brand during the growth phase of the product life cycle.
Comparative Advertising: Compares competing brands on specific attributes, regulated by the FTC in the U.S.

Campaign and Objectives

An advertising campaign consists of related advertisements with a common theme, lasting for a defined period.
Advertising objectives delineate specific communication tasks for targeted audiences within a set timeframe, often defined by the DAGMAR method.

Features and Benefits

Feature: An attribute of the product.
Benefit: What consumers achieve by using the product, shaping their purchasing thoughts.

Advertising Appeals

The appeal identifies reasons to purchase and leads to the unique selling proposition, which becomes the campaign's slogan.
Animated Product Symbols: Utilize characters to represent products in advertisements.

Media Planning

Media planning involves decisions on selecting and utilizing media to effectively communicate with the target audience.
The medium delivers the message, considering aspects like reach (target consumer exposure) and frequency (how often consumers see an advertisement).

Types of Media

Outdoor Advertising: Flexible and cost-effective, but often faces high noise levels from competing ads.
Newspaper Advertising: Offers timely and geographically flexible options for reaching audiences.
Cooperative Advertising: Manufacturers and retailers share advertising costs for brands.

Communication Process

The communication process involves encoding, decoding, channels, sender, and receiver to exchange meanings through symbols.
Feedback, the receiver's response, is essential for effective communication.

Promotion Strategies

Four basic tasks of promotion: informing, persuading, reminding, and connecting.
Different promotion types cater to various life cycle stages: informative promotion for early stages, persuasive promotion during growth, and reminder promotion during maturity.

Promotional Mix

The promotional mix includes product, promotion, price, and place, incorporating major tools like advertising, personal selling, sales promotion, public relations, and social media.
Personal selling is characterized by face-to-face presentations aimed at making sales.

Public Relations and Sales Promotions

Public relations focus on drawing attention to products or companies.
Sales promotions include trade shows, coupons, and giveaways, effectively creating purchase intent.

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Test your knowledge with these flashcards focused on key marketing concepts, specifically in advertising. Learn about the intricacies of advertising strategies and spending patterns among brands. Perfect for review before your marketing exam!