Term
| Factors in determining role of advertising in promotion mix: |
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Definition
-Whether to push or pull product through channel
-Size and accessibility of audience (adv. preferred for widely dispursed markets)
-Whether firms promo objs. are product or institutional focused
-Stage of product life cycle:
Intro- create awareness, expenditures usually high
Growth- promo focus on product/brand diffs, per unit expen decrease but total spending increases
Maturity- hold market share, expend level out as market matures and ads become reminders
Decline- adv becomes defensive if used at all, to maintain cust loyalty |
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Term
Advertising does not control human behavior, influences and works by the sequence of events:
Hierarchy of effects: |
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Definition
Simplified version, called AIDA sequence:
Attention
Interest
Desire
Action |
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Term
| Pereceived positive economic effects of adv: |
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Definition
-Provides consumer w/ info which allows to make rational choices
-Supports natl. comm. network
-Helps stimulate product development
-Expands production and creates econ. of scale resulting in lower consumer prices
-Helps promote full employment in econ. |
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Term
| Pereceived negative economic effects of adv: |
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Definition
-Adv used for persuasion, not consumer info.
-Adv only affects composition of spending, not totaly volume (Ex: buying Ford vs. Nissan vs. Toyota)
-Adv does not create economy of scale or lower prices
-Adv creates barriers to entry
-Adv creates signif social costs; see graph |
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Term
| Social criticisms of Adv: |
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Definition
-PRODUCT being advertised
-CONTENT of adv; using sex, subliminal
-AMOUNT of adv; too much
-IMPACT of adv on human affairs |
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Term
| Issues of social criticisms: |
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Definition
-Subliminal Advertising
-Decetpion in adv:
Actual deception is illegal, "puffery" allowed but critics think soft-core deception should be outlawed
-Much of adv exposed to is bad taste
-Sexual themes prevalent in adv
- Adv of controversial products: tobacco and alcohol, condoms, fem hygiende products
-Adv to children: Child watch over 20% of TV per week, shapes prefs for toys/food, young child do not understand intent of adv, pref for presweetened cereals and high adv toys, FTC taken light hand in issue, Attempt to curtail child adv will raise 1st amend issues |
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Term
| Too much adv stereotypes groups: |
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Definition
| Women, Hispanics, Elderly, African Americans |
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Term
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Definition
1.Laws and regulations;Congress and FTC
2. Control by media through guidelines
3. Self regulation by advs and agencies through trade practice reccomendations and codes of conduct |
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Term
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Definition
Competing retailers must be offered same proportionate discounts and allowances
Seller has obligation to take steps to provide notice to competing customers of availability of promo services and allowances |
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Term
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Definition
| regulates food, drug, and cosmetics; created in 1938 Congress passed act; primarily authority over packaging, labeling, and adv prescription drugs |
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Term
| United States Postal Inspection Service: |
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Definition
| 1872, Congress passed Mail Fraud Statute, nation's oldest fed consumer protection statute |
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Term
| State and Local Laws Relating to Promo: |
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Definition
State: Printers Ink Statutes; truth in adv laws
Local: signage and placement of outdoor adv
Green River Ordinance-regulates personal selling |
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Term
| Concern related to adv is deception or misleading adv: |
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Definition
| Deception is not in best interest of co.'s, deceptive adv may create initial sales but not LT survival,False and deceptive adv for product diminishes a brand's equity, misleading adv causes loss of consumer confidence |
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Term
| Truthfulness of adv classified: |
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Definition
Literal truth- no controversy, claims can be verified
Discerrible exaggeration- claim so far from thruth consumers unlikely to be deceived (puffery)
False adv- blatant unverifiable, claims being made
True but leaves false impression- claims may be true but impression it creates is false |
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Term
| Background of Adv and 1st Amend Protection: |
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Definition
1942- Supreme court ruled adv was not entitles to 1st amend protection
1964- court decided advertisement expressed opinion on public issue protected by 1st amend.
1975- court gave adv 1st constitutional protection |
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Term
| NAD/NARB Self Regulation Program: |
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Definition
Council of better bus bureaus-
Natl Adv Review Council (NARC)
1 Natl. Adv Division (NAD)
2 Childrens adv review unit (CARU)
(1 and 2 investigation)
Natl Adv Review Board (NARB)
CARU: self reg guidelines for childrends adv; product presentation- true and accurate; adequacy of disclosures; sales pressure not allowed
NAD cannot order adv to stop AD, impose a fine, bar anyone from adv, or boycott adv or product (NAD has no enforcement) |
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Term
| Why is adv imp to economy? |
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Definition
-250 + bill $ industry
-substantial part of income of mass media
-creates jobs in economy |
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Term
| Why is adv imp to bus firms? |
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Definition
-made firms successful
-disallowing adv would cause failure of many of those firms; hurting econ |
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Term
| Why is adv imp to individuals? |
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Definition
| Prime source of marketplace info. for consumers |
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Term
| Why is adv imp to society? |
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Definition
| How we live, think, values we hold, how we define ourselves, aspirations |
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Term
| Relationship of adv to MKTG MIX: |
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Definition
PRODUCT- categories of goods/services
PRICE- strategies
PROMOTION- Direct mktg, P.R and publicity, advertising, personal selling, internet and interactive mktg, sales promotion |
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Term
| Prereq's to LT successful adv: |
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Definition
-Product must be good
-Potential market to justify cost
-Co. must have ability to handle increase in vol. of business
-Generic trend of product category should be favorable
-Price must be right
-Product should have or should be able to create unique signif differential advantage (Determinant Attribute) over existing products
-Firm must be willing and able to maintain consistent level for product/service |
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Term
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Definition
Natl- market in several regions of U.S; manufacturers
Retail- stores and bus.; done by middlemen
Trade- targeted to middlemen; EX: Redken AD-->Salons
Industrial- targted to industry/govt
Professional- docs, lawyers
Public relations- managing firms relations w/ its publics
Public service- promo of social service; EX: don't drive drunk
Commercial- profit firms
NonCommercial- non profit
Direct Response- sell directly to customer bypass retail store
Political/people- election, campaigns |
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