Introduction to Advertising - Exam 1 Study Guide | ADV 300, Study notes of Banking Law and Practice

Download Introduction to Advertising - Exam 1 Study Guide | ADV 300 and more Study notes Banking Law and Practice in PDF only on Docsity! TEST 1 REVIEW Wednesday Feb. 17 112 Greg Hall 9:00 A.M. CHAPTER 1 Integrated brand promotion- process of using a wide range of promotional tools working together to create widespread brand exposure Advertisement- the specific message someone or some organization has placed to persuade an audience Advertising campaign- a series of coordinated advertisements that communicate a reasonably cohesive and integrated theme Audiences for advertising Audience- a group of individuals who receive and interpret messages sent from companies (household consumers, college students, or business people – any large group) Target audience- particular group of consumers singled out by an organization for an advertising or promotion campaign; singled out because the firm has discovered that audience members like or might like the product category Audience categories- Household consumers- most conspicuous; most mass media directed to them Members of business organizations- for firms that produce business and industrial goods and services Members of a trade channel- retailers, wholesalers, and distributors; target audience for producers for both household and business goods and services Professionals- doctors, lawyers, accountants, teachers, or any other professional group that has special training or certification; members have specialized needs and interests Trade journals- magazines published specifically for members of a trade and carry highly technical articles Gov. officials & employees- large dollar volume of buying that federal, state, and local govs. do (schools, road maintenance operations…) Audience geography- Global advertising- ad is used worldwide with only minor changes (Sony, Singapore Airlines…); does not vary by culture International advertising- firms prepare and place different advertising in different national markets outside their home market (Unilever laundry products) National advertising- reaches all geographic areas of one nation; we see the most in mass media in domestic U.S. market Regional advertising- producers, wholesalers, distributors, and retailers concentrate efforts in relatively large, but not national, geographic region (a national grocery store would only place ads in regions where it has stores) Local advertising- like regional; directed at audience in a single trading area, either a city or state Cooperative advertising- sharing of advertising expenses between national companies and local merchants Advertising as a business process Role of Advertising in Marketing Mix- 1 Marketing- the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives Marketing mix- a wide range of responsibilities in an organization related to conceiving, pricing, promotion, and distributing goods, services, and even ideas. These four areas of responsibility and decision making in marketing are referred to as the marketing mix. Mix is used to describe the blend of strategic emphasis on the product vs. its price vs. its promotion vs. its distribution when a brand is marketed to consumers Role of Advertising in Brand Management- Brand- a name, sign, term, symbol, or any other feature that identifies one seller’s goods/service as distinct from those of other sellers Brand extension- adaptation of an existing brand to a new product area (ex. snicker’s candy bar – to ice cream bar) Brand loyalty- consumer repeatedly purchases the same brand to the exclusion of competitors’; can result because of habit, because brand names are prominent in the consumer’s memory, because of conscious associations with brand images, or because consumers have attached some fairly deep meanings to the brands they buy Brand equity- when a firm creates and maintains positive associations with the brand in the mind of consumers; when it occurs over long period of time = short-term adv. activities are key to long-term success Direct vs Delayed Response Advertising Direct- asks consumers to act immediately (ex. “call this toll-free number”); used for products that consumers are familiar with, that do not require inspection at the point of purchase, and relatively low-cost Delayed- relies on imagery and message themes that emphasize benefits and satisfying characteristics of a brand; attempts to develop awareness and preference for a brand over time CHAPTER 2 Advertisers (business, non-for-profit and gov. organizations that use advertising and other promotional techniques to communicate with target marketers and to stimulate awareness and demand for their brands) / clients (advertisers are also referred to as clients by their advertising and promotion agency partners) Manufactures & service firms- most prominent users of promotion; essential to create awareness and preference for their brands (ex. Verizon, General Foods…) Trade resellers- general description for all organizations in the channel of distribution that buys products to resell to consumers (ex. retailers, wholesalers – Walmart, McDonald’s…) Federal, State & local governments- govs. are huge advertisers easily spending over $2 billion annually; promotion is concentrated on armed forces recruiting and social issues Social & Non-for-Profit Organizations- use advertising to raise awareness of their organization, seek donations, and attempt to shape behavior (ex. American Red Cross, United Way…) Advertising and Promotion Agencies Ad agency- an organization of professionals who provide creative and business services to clients in planning, preparing, and placing advertisements; often global businesses as well Full service agencies- includes an array of advertising professionals to meet all promotional needs of a client 2 Corrective advertising- most extensive remedy for adv determined to be misleading; in cases where evidence suggest that consumers have developed incorrect beliefs about based on deceptive or unfair advertising, the firm may be required to run corrective ads in an attempt to dispel those faulty beliefs Celebrity endorsements- the FTC has specific rules for advertisements that use expert or celebrity as a spokesperson for a product; experts = endorser’s actual qualifications must justify his or her status as an expert; celebs = FTC guidelines state that the celeb must be an actual user of the product, or the ad is considered deceptive Self-regulation- the promotion industry’s attempt to police itself Consumer Organizations- CFA- encourage creation of consumer organizations, provide services to consumer groups and act as a clearing house for info exchange between consumer groups Consumers Union- publishes consumer reports; provides consumers with info and advice on goods, services, health, and personal finance Consumer Alert- champions consumer causes through testimony and comments to legislative and regulatory bodies, legal action, issues management, and media outreach Commercial Alert- headed by Ralph Nader; keep the commercial culture within its proper sphere and to prevent it from exploiting children and subverting higher values Regulatory issues in Public Relations- Public relations is not bound by the same sorts of laws as other elements of promotional mix. Because PR activities deal with public press and public figures, much of the regulation relates to these issues. The public relations activities of a firm may place it on either side of legal issues with respect to privacy, copyright infringement, or defamation trough slander and libel. Privacy- privacy problems facing a PR firm center on the issue of appropriation Appropriation- the use of pictures/images owned by someone else without permission. If a firm uses a model’s photo or a photographer’s work in an advertisement/company brochure without permission, then the work has been appropriated without the owner’s permission. The same is true of PR materials prepared for release to the press or as part of a company’s PR kit Copyright Infringement- can occur when a PR effort uses written, recorded, or photographic material in PR materials. Much as with appropriation, written permission must be obtained to use such works. Defamation- when a communication occurs that damages the reputation of an individual because the info in the communication was untrue; can occur either through slander or libel Slander- oral defamation and in the context of promotion would occur during television or radio broadcast of an event involving a company and its employees Libel- defamation that occurs in print and would relate to magazine, newspaper, direct mail, or Internet reports The PR practitioner’s job is to protect clients from slanderous or libelous reports about a company’s activities 5 POWERPOINT1 Advertising- a paid form of communication to convey a non-personal message; an attempt to persuade mass mediated identified source Communication- process, NOT static – it evolves Things people agree on when it comes to defining advertising: Paid for, mass mediated, non-personal, identified source, attempts to persuade Communication Model-  Sender- o Communicator- do or do not communicate effectively o The person or organization that has info to share with another person/group o Anyone/anything can be a sender  Encoding- o Putting thought, ideas or info into symbolic form o Target audience needs to be considered o GOAL= encode message in a way it will be understood by receiver o EX. the letter “C” used for Chicago bears and cubs but they are distinguishable o When encoding, symbols have intended meaning which will be “negotiated” on the other end by receivers o Anything can have symbolic meaning (buildings, statues, logos, etc.) o Minor changes can have a different meaning o Products themselves encode meaning  Message- o Contains info or meaning the source hopes to convey o Can be verbal, non-verbal, oral, written, symbolic o Contain both content and relationship dimensions o Must be put into a transmittable form appropriate to the channel of communication o EX. images are “read”  Channel- o Method message travels from sender to receiver  Personal = direct inter-personal contact (salespeople, friends, coworkers, family…)  Non-personal = carry message without interpersonal contact between sender and receiver (radio, TV, magazines, billboards)  Receiver- the person(s) with whom the sender shares thoughts or info o Target audience = the intended audience for something  Decoding- o The process of transforming sender’s message into thought (heavily dependent on field of experience) o Very important; different for everyone (background plays a HUGE role)  Field of Experience- o Background, experience, perception, attitudes, and values brought to the communication situation by communicators o Communication is affected by these backgrounds o ***Effective communication is more likely when there’s a common ground 6 o Advertisers need field of experience to establish common ground  Noise- extraneous factors that can distort or interfere with the message (ex. problems when encodings)  Response/Feedback o Response takes a variety of forms (ex. storing in memory, calling toll free #) o Feedback is part of the receiver’s response that’s communicated back to the sender o “close the communication loop” so to speak… and helps people monitor how their message was received o target market o consumers who hear or see marketer’s message and decode it  Target Market o Consumers who hear or see marketer’s message and decode it POWERPOINT2  Brands- o Evolve over time o Means different things to different people  to marketers = brands are business units  to agencies = brands are clients  to media companies = brands are customers  to customers = brands are a system  Who does advertising anyways? o Consumer packages/non durable goods (cereal) o Consumer durable goods (cars, Leatherman tools) o Services (Comcast) o Mixed products and services (Zagat restaurant surveys = online, books, maps, movie guide) o Specific category example  Agriculture (John Deere, seed industry)  Cause (American Cancer Society)  Entertainment (Disney)  Financial services (Insurance, banks)  Hospitality (airlines, car rental)  Tourism (hotels)  Travel (rental car agencies)  Health Care (hospitals, Blue Cross Blue Shield)  Retail (gas stations, Old Navy)  Media (ESPN, Food Network, radio stations)  Technology (Intel)  Sports (Chicago Cubs)  Raw materials (sugar, almonds) o Business to Business  Marketing agencies, bureaus, and organizations (Got Milk? ad)  Governmental agencies, bureaus, and organizations (air force, Navy)  Experience (Vegas, Mount Rushmore)  Events (Olympics)  People (Hannah Montana) 7