Advertising and Promotion

Midterm Study Guide

Chapter 1:
Exchange: Trade of something of value between 2 parties
Marketing: Activity, set of institutions & processes for creating,
communicating, delivering & exchanging offerings that have value for
customers, clients, & society
Value: Customers perception of the benefits of a product/service vs. cost
of getting it
Marketing Mix: 4 Ps product, price, promotion, place
Integrated Marketing Communications (IMC): generates short- term
financial returns & build long term brand & shareholder value.
Promotion: efforts to set up channels of info and persuasion (sell goods
services)
Promotional Mix: tools used to accomplish organizations
communications objectives. advertising direct marketing sales
promotion publicity/PR personal selling
Advertising: any paid form of non-personal communication about an
organization product, service, or idea by sponsor
benefits: cost-effective to reach many people, builds brand
equity/perceptions
Direct Marketing: Organization communicated directly w/ customers to
generate reaction or sale
Direct Response Advertising: Advertising for a product/service that
elicits a sales response directly from advertiser

Interactive Media: Allows users to participate in & modify the

form/content of the info they receive in real time
Social Media: online means of communication/interactions between
people that exchange, create, and share
information/insights/experiences/perspectives
Sales Promotion: Marketing activities that provide extra value or
incentives to the sales force, distributors, or consumer
Publicity: communications regarding an organization
product/service/idea that are NOT directly paid for under identified
sponsor
Public Relations: organization that develops programs to manage a
companys publicity, image, and affairs with customers
Personal Selling: person to person communication where seller
attempts to persuade a prospective buyer to purchase something
Contact/Touch Point: each and every opportunity a consumer has to
see or hear or experience a company or brand
IMC Management: process of planning, executing, evaluating, and
controlling the use of various promotional mix elements to communicate
with target audience
IMC Plan: document that provides framework for controlling IMC
Marketing Plan: written document that describes the overall marketing
strategy and programs developed for an organizations line or brand
Internal Analysis: phase of promotional process that focuses on the
product offering and the firm itself capabilities of the firm, ability to
develop and implement a successful integrated marketing comm.
program

External Analysis: phase of promotional planning that focuses on

factors such as the characteristics of organizations customers, market
segments, positioning strategies, competitors and environment
Marketing Objectives: goals to be accomplished by organizations overall
marketing program such as sales, market share or profitability
Communications Objectives: goals that an organizations seeks to
achieve through its promotional program in terms of communication
effects such as creating awareness, knowledge, image, attitudes,
preferences, and purchase intentions

Chapter 2
Strategic Market Planning: the planning framework for specific
marketing activities
Market Segments: identifiable groups of customers sharing similar
needs/wants that make them likely to respond in a similar fashion
Market Opportunities: areas where a company believes there are
favorable demand trends/needs/wants that are not being satisfied and
where it can compete effectively
Competitive Advantage: something unique or special that a firm does
or possesses that provides an advantage over its competitors
Target Marketing: the process of identifying the specific needs of
segments, selecting one or more of these segments as a target, and
developing a marketing program directed to each
Market Segmentation: process of dividing a market into distinct groups
that have common needs and will respond similarly

Geographic Segmentation: method of segmenting a market on the basis

of different geographic units or areas.
Demographic Segmentation: method of segmenting a market based on
the demographic characteristics of consumers
Psychographic Segmentation: dividing the product on the basis of
personality/lifestyle
Behavioristic Segmentation: method of segmenting a market by
dividing customers into groups based on their usage, loyalty, or buying
responses to a product/service
80-20 Rule:
Benefit Segmentation: method of segmenting markets based off the
major benefits consumers seek in a product
Undifferentiated Marketing: strategy in which market segment
differences are ignored and one product is offered to the entire market
Differentiated Marketing: type of marketing strategy where a firm offers
products to a number of different market segments and develops
different marketing strategies for each product
Concentrated Marketing: type of marketing strategy where a firm
chooses to focus its marketing efforts on one particular marketing
segment
Positioning: art and science of fitting the product to one or more
segments of the market in such a way to set in meaningfully apart from
competition
Salient Attributes: attributes considered important to customers in the
purchase decision process
Repositioning: the changing of a product or brands positioning

Product Symbolism: the meaning that the product or brand has to

customers
Brand Identity: combination of the names, logo, symbols, design,
packaging, image and associations held by consumers toward a brand
Brand Equity: intangible asset of added value or good that results from
the favorable image, impressions, or strength of consumer attachment of
a company name, brand, trademark
Marketing Channels: set of interdependent organizations involved in the
process of making a product available to customers
Direct Channels: marketing channel where producer and ultimate
consumer interact directly with one another
Indirect Channels: marketing channel where intermediaries such as
wholesalers and retailers are utilized to make a product available to the
customer
Promotional Push Strategy: strategy where advertising and promotional
efforts are targeted to the trade to attempt to get them to promote and
sell the product to the ultimate consumer
Promotional Pull Strategy: strategy where advertising and promotion
efforts are targeted at the ultimate consumer to encourage them to
purchase the manufactures brand
Trade Advertising: advertising targeted to wholesalers and retailers

Chapter 3
Clients: the organizations with the products, services, or causes to be
marketed and for which advertising agencies and other marketing
promotional firms provide services.

Advertising Agency: a firm that specializes in the creation, production,

and placement of advertising messages and may provide other services
that facilitate the marketing communications process
Media Organizations: one of four major participants in the IMC process
whose function is to provide information or entertainment to subscribers,
viewers, or readers while offering marketers an environment for reaching
audiences with print and broadcasting messages
Specialized Marketing Communication Services: organizations that
provide marketing communication services in their areas of expertise
including direct marketing, PR, and sales promotion firms
Collateral Services: companies that provide companies with specialized
services such as package design, advertising production, and marketing
research
Advertising Manager: the individual in an organization who is
responsible for the planning, coordinating, budgeting, and implementing
of the advertising program
Centralized System: organizational system where advertising along with
other marketing activities such as sales, market research and planning
are divided along functional lines and are run from one central marketing
department.
Decentralized System: organizational system where planning and
decision making responsibility for marketing, advertising, and promotion
lies with a product/brand manager or management ream rather than a
centralized department
Brand Manager: person responsible for the planning, implementation
and control of the marketing program for an individual brand
Category Management System: organizational system where manager
have responsibility for the marketing programs for a particular category
or line of products.

In-House Agency: advertising agency set up, owned, and operated by an

advertiser that is responsible of planning and executing the companys
advertising program
Billings: amount of client money agencies spend of media purchases and
other equivalent activities often used as a way of measuring the size of
advertising agencies
Superagencies: large external agencies that offer integrated marketing
communications on a worldwide basis
Full-Service Agency: advertising agency that offers clients a full range
of marketing and communications services including the planning,
creating, producing, and placing of advertising messages and other forms
of promotion
Account Executive: the individual who serves as the liaison between the
advertising agency and the client responsible for managing all of the
services the agency provides to the clients and represent the agencies
point of view to the clients
Account Planners: advertising agency personnel who gathers
information that is relevant to a clients product and can be used in the
development of the creative strategy as well as other aspects of the IMC
campaign
Copywriters: individual who helps conceive the ideas for ads and
commercials and writes the words or copy for them
Departmental System: organization of an advertising agency into
departments based on functions such as account services, creative,
media, marketing services
Group System: organization of an advertising agency by dividing into
groups consisting of specialist from various departments
Creative Boutique: an advertising agency that specializes in and
provides only services related to the creative aspects of advertising

Media Specialist Companies: companies that specialize in the buying of

advertising media time and space, particularly for radio and television
Commission System: method of compensating advertising agencies
where the agency receives a specified commission (15%) from the media
on any advertising time or space it purchases
Negotiated Commission: method of compensating advertising agencies
where the client and agency negotiate the commission structure rather
than relying on the traditional 15%
Fixed-Fee Method: method of agency compensation where the agency
and client agree on the work to be done and the amount of money the
agency will pay for its services
Cost-Plus System: method of compensating advertising agencies where
the agency receives a fee based on the cost of the work it performs plus
an agreed on amount for profit
Incentive-Based System: form of compensation where an advertising
agencys compensation level depends on how will it meets predetermined
performance goals such as sales or market share
Percentage Charges: the mark ups charged by advertising agencies for
services provided to clients
Financial Audit: an aspect of the advertising agency evaluation process
(how the company conducts financial affairs related to serving clients)
Qualitative Audit: audit of the agencies efforts in planning, developing,
and implementing the clients communications programs
Direct-Marketing Agency: a company the provides a variety of direct
marketing services to their clients including database management,
direct mail, research, etc.

Public Relations Firm: organization that develops and implements

programs to mange a companys publicity, image, and affairs with
consumers
Digital/Interactive Agencies: agencies that specialize in the
development and strategic use of various digital and interactive
marketing tools such as websites for the Internet, banner ads, search
engine optimization, social media

Chapter 4
Perception: the process by which an individual receives, selects,
organizes, and interprets information to create a meaningful picture of
the world
Sensation: the immediate and direct response of the senses to a
stimulus such as an advertisement, package, brand name, or point of
purchase display
Selective Perception: the perceptual process involving the filtering or
screening of exposure, attention, comprehension, and retention
Selective Exposure: a process whereby consumers choose whether or
not to make themselves available to media and message information
Selective Attention: a perceptual process in which consumers choose to
attend to some stimuli and not others
Selective Comprehension: the perceptual process whereby consumers
interpret information based on their own attitudes, beliefs, motives, and
experiences
Selective Retention: the perceptual process whereby consumers
remember some information but not all
Mnemonics: basic cues such as symbols, rhymes, and associations that
facilitate the learning and memory process

Subliminal Perception: the ability of an individual to perceive a

stimulus below the level of conscious awareness
Evaluative Criteria:
Functional Consequences:
Psychosocial Consequences:
Multi-attribute Attitude Model:
Salient Beliefs: beliefs concerning specific attributes or consequences
that are activated and form the basis of an attitude
Integration Process:
Heuristics:
Affect Referral Decision Rule:
Purchase Intention:
Brand Loyalty:
Cognitive Dissonance:
Classical Conditioning:
Conditioned Stimulus:
Conditioned Response:
Operant Conditioning:
Reinforcement:

Schedules of Reinforcement:
Shaping:
Culture:
Subcultures:
Social Class:
Reference Group:
Situational Determinants:

Chapter 5

Communication:
Source:
Encoding:
Message:
Channel:
Mass Media:
Word of Mouth:
Buzz Marketing:
Viral Marketing:

Seeding:
Receiver:
Decoding:
Field of Experience:
Noise:
Response;
Feedback:
AIDA Model:
Hierarchy of Effects Model:
Innovation Adoption Model:
Standard Learning Model:
Dissonance/Attribution Model:
Low-Involvement Hierarchy:
Cognitive Responses:
Counterarguments:
Support Arguments:
Source Derogations:
Source Bolsters:
Ad Execution-Related Thoughts:

Attitude Toward The Ad:

Elaboration Likelihood Model:
Central Route to Persuasion:
Peripheral Route to Persuasion: