Chapter 16 Marketing Terms

Product Advertising
gives benefits of a specific product or service and relies on rational arguments why a customer should buy it
Brand Advertising
aims to build an image; this defines what a product or company stands for example being cool, fun, young, makes a statement, rebellious, etc.
Advertising Agency
a company that specializes in creating advertising
Media Plan
a detailed listing of where and when ads will run; a media planner designs the plan to give the business the best coverage of it’s target market
Advertising Plan
a document that outlines the activities to be completed and resources needed to create advertising
Advertising Campaign
a series of related ads with a similar look, feel, and theme that centers on a specific product, service, or brand
Steps of an Advertising Campaign
Set Objectives, Budget, Strategy, Select/Schedule Media, Develop Concept, Produce the Ads, Evaluation of Plan
4 Budget Methods
All You Can Afford, Percentage of Sales, Match Competition, Objective and Task
CPM
cost per thousand; the per reader cost of print ads in newspapers, magazines that is calculated by taking the cost of the ad divided by the total number of readers ($50,000/500,000 readers =$100 per person)
Reach
the total number of people who see an ad; in TV it is the number of people watching, for billboards it is the amount of traffic counted on that road
Frequency
the total number of times a member of the target audience is exposed to the advertising message
Lead Time
the amount of time required to place an ad
Ad Formats
musical, dramatization, testimonial, comedy, image, or product demonstration, or competitive
Quantitative Research
surveys about the advertising, recall tests that see if people remember the ads, and other types of testing that ask questions and allow respondents to pick from a set of answers
Qualitative Research
presents customers with open-ended questions rather than specific shoices
FTC
Federal Trade Commission oversee all commerce and commercial communications in the US
FCC
Federal Communications Commission oversees all commerce and commercial communications in the US
Cease and Desist Order
a legal order to discontinue the deceptive advertising; the company may be forced to run corrective ads and be fined