Marketing Exam 3 Flashcards

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.