Advertising 101: A Comprehensive Study Guide - Prof. Steven R. Hall, Exams of Banking Law and Practice

Download Advertising 101: A Comprehensive Study Guide - Prof. Steven R. Hall and more Exams Banking Law and Practice in PDF only on Docsity! ADV 300 study guide CHAPTER ONE Advertising- The structured and composed no personal communication of information, usually paid for and usually persuasive in nature, about products (goods, services, and ideas) by identified sponsors through various media. Consumers - people who buy products and services for their own, or someone else’s personal use. Public Service announcements- an advertisement serving the public interest often for a non-profit organization carried by the media at no charge. Goods - tangible products such as suits, soap, and soft drinks. Services- A bundle of benefits that may or may not be physical, that are temporary in nature, and that come from the completion of a task. Ideas - economic, political, religious, or social viewpoints that advertising may attempt to sell. Product – The particular good or service a company sells. Medium- instrument or communications vehicle that carries or helps transfer a message from the sender to the receiver. Word- of-mouth advertising – passing of information especially product recommendations, by verbal communication, in an informal, unpaid, person to person manner, rather than by advertising or other forms of traditional marketing. Mass media - print or broadcast media that reach very large audiences. Mass media include radio, television, newspapers, magazines and billboards. Marketing- an organizational function and a set of processes for creating, communicating, and delivering value, to costumers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing mix- four elements called the 4p’s product, price, place, and promotion. That every company has the option of adding, subtracting, or modifying space in order to create a desired marketing strategy. Deceptive advertising- according to the FTC any ad in which there is a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment. Unfair advertising – according to the FTC advertising that causes a consumer to be unjustifiably injured or that violates public policy. Comparative advertising – advertising that claims superiority to competitors in some aspect. Substantiation – evidence that backs up cited survey finding or scientific studies that the FTC may request from a suspected advertising violator. Endorsements - The use of satisfied consumers and celebrities to endorse a product in advertising. Testimonials – the use of satisfied customers and celebrities to endorse a product in advertising. Affirmative disclosure- advertisers must make known their products limitations and limitations or deficiencies. Consent decree- document advertisers sign without admitting any wrongdoing, in which they agree to stop objectionable advertising. Cease and desist order- May be issued by the FTC if an advertiser wont sign a consent decree prohibits further use of an ad. Corrective advertising – may be required by the FTC for a period of time to explain and correct offending ads. Nutritional labeling and education act- 1994 congressional law setting stringent legal definitions for terms such as fresh , light, low fat, and reduced calorie. Setting standard serving sizes and requiring labels to show food value for one serving along side the total recommended daily value as established by the national research council. CHAPTER 3 THE ADVERTISERS Types of local advertisers (4 main types) 1. Dealers or local franchises of national companies (Honda, Mcdonald’s, Maill boxes and H and R block) 2. Stores that sell a variety of branded merchandise ( convenience, grocery, and department stores) 3. specialty businesses and services (banks, restaurants, music stores, remodeling contractors, florists, hair salons, attorneys and accountants) Production houses – companies that specialize in film or video production. Research supplies – companies that conduct and analyze marketing research. Media- a plural form of medium referring to communications vehicles paid to represent an advertisement to their target audience. Most often used to refer to radio and television networks stations that have news reporters and publications that carry news and advertising. CHAPTER 4 ADVERTISING AND THE PRODUCT ELEMENT Product life cycle- progressive stages in the life of a product including introduction growth maturity and decline that affects the way a product is marketed and advertised. Pull strategy- marketing, advertising, and sales promotion activities aimed at introducing trial purchase and repurchase by consumers. Push strategy- marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers retailers and sales people. Distribution channel The network of all the firms and individuals that take title or assist in taking title to the product as it moves from the producer to the consumer. Intensive distribution – strategy based on making the product available to consumers at every possible location so that the consumers can buy with a minimum of effort. Selective distribution – strategy of limiting the distribution of a product to select outlets in order to reduce distribution and promotion costs.