MKT103 – Chapter 1 – The Evolution of Advertising

advertising strategy
The advertising objective declares what the advertiser wants to achieve with respect to consumer awareness, attitude, and preference; the advertising strategy describes how to get there. Advertising strategy consists of two substrategies: the creative strategy and the media strategy.
advertising
The structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products (goods, services, and ideas) by identified sponsors through various media.
branding
A marketing function that identifies products and their source and differentiates them from all other products.
consumer packaged goods
Everyday-use consumer products packaged by manufacturers and sold through retail outlets. Generally these are goods such as food and beverages, health and beauty care, cleaning products, and detergents that get used up and have to be replaced frequently.
consumers
People who buy products and services for their own, or someone else’s, personal use.
demarketing
Term coined during the energy shortage of the 1970s and 1980s when advertising was used to slow the demand for products.
digital video recorders
A device (such as TiVo) that is similar to a VCR, but records programs on a hard drive in digital format, providing high-quality image and sound and the ability to “pause live TV.”
externalities
Benefit or harm caused by the sale or consumption of products to people who are not involved in the transaction and didn’t pay for the product.
goods
Tangible products such as suits, soap, and soft drinks.
ideas
Economic, political, religious, or social viewpoints that advertising may attempt to sell.
industrial age
A historical period covering approximately the first 70 years of the twentieth century. This period was marked by tremendous growth and maturation of the U.S. industrial base. It saw the development of new, often inexpensive brands of the luxury and convenience goods we now classify as consumer packaged goods.
industrializing age
The period of time from the mid-1700s through the end of World War I when manufacturers were principally concerned with production.
market segmentation
Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product’s utility.
marketing communications
The various efforts and tools companies use to communicate with customers and prospects, including newspaper ads, event sponsorship, publicity, telemarketing, digital ads, and coupons, to mention just a few.
marketing mix
Four elements, called the 4Ps (product, price, place, and promotion), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy.
marketing strategy
The statement of how the company is going to accomplish its marketing objectives.
marketing
An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
mass media
Print or broadcast media that reach very large audiences. Mass media include radio, television, newspapers, magazines, and billboards.
medium
An instrument or communications vehicle that carries or helps transfer a message from the sender to the receiver.
narrowcasting
Delivering programming to a specific group defined by demographics and/or program content, rather than mass appeal. Usually used to describe cable networks. The opposite of broadcasting.
positioning
The association of a brand’s features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer.
postindustrial age
Period of cataclysmic change, starting in about 1980, when people first became truly aware of the sensitivity of the environment in which we live.
preindustrial age
Period of time between the beginning of written history and roughly the start of the nineteenth century, during which the invention of paper and the printing press and increased literacy gave rise to the first forms of written advertising.
process
A sequence of actions or methods aimed at satisfying consumer needs profitably.
product differentiation
Manufacturers portraying their brands as different from and better than similar competitive products through advertising, packaging, or physical product
product
The particular good or service a company sells.
public service announcement (PSA)
An advertisement serving the public interest, often for a nonprofit organization, carried by the media at no charge.
sales promotion
A direct inducement offering extra incentives all along the marketing route—from manufacturers through distribution channels to customers—to accelerate the movement of the product from the producer to the consumer.
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.
unique selling proposition
The distinctive benefits that make a product different than any other. The reason marketers believe consumers will buy a product even though it may seem no different from many others just like it.
word-of-mouth advertising
The passing of information, especially product recommendations, in an informal, unpaid, person-to-person manner, rather than by advertising or other forms of traditional marketing.