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social media
final exam
47
Marketing
Undergraduate 3
12/13/2016

Additional Marketing Flashcards

 


 

Cards

Term
Magnitude of Advertising in the USA
Definition
$300B in 2010. $1,000 dollars spent on advertising per each person in the USA. 2.2 Of Gross domestic product.
Term
Global Advertising spending outside USA
Definition
$500B in 2010. Brazil, Russia, China, India are growing rapidly.-Fellow consumers are more likely to trust each other than advertisers
Term
Advertising-to-sales Ratio-​
Definition
Effectiveness of an advertising campaign that is calculated by dividing total advertising expenses by sales revenue. USA 3.20%. or 3 Cents of each dollar made is spent on advertising.
Term
Positive effect of advertising on the economy(information)
Definition
Argues that by informing consumers about products benefits they become more price sensitive.
Prices are forced down because consumers create pressure on firms
Term
Negative effect of advertising on the economy (market power)
Definition
power allows them to raise prices/charge more than they would in absent advertising.
Consumers are less price sensitive
Term
How does advertising impact economy
Definition
During Bad economic periods dollars spent on advertising are cut 4-6% and even as high as 10%. Dollars spent on advertising often depend on the current state of the economy.
Term
Advertising = Market Power
Definition
Negative view of advertisers on economy. Argues advertising yields marketing power in being able to “differentiate physically homogenous products”. It fosters brand loyalty, less price sensitive, has a tougher entry barrier and has higher prices.
Term
Advertising = Information
Definition
Antithesis of A=MP. Positive view on advertising. Informing consumers of information. More price sensitive, less entry barriers, prices are forced down
Term
4 Major Advertising Functions
Definition
Informing
Influencing
Reminding and increasing salience
Adding value
Term
Informing
Definition
Publicize brand. Makes consumers aware of distinct features, educates consumers, facilitates and creates positive/distinct image. Uses expansion advertising Ex: outing ranch in the frozen foods section and people began weating it with wings and pizza
Term
Influencing​
Definition
Primary demand, building demand for entire product category
Secondary demand, building demand for the company's brand
Term
Reminding and increasing salience
Definition
Keeping the brand fresh. Meet consumers’ needs/wants. With prior advertising customers think of your product/brand when they have these needs/wants. Possess favorable attributes.
Term
Adding Value
Definition
3 basic ways. Innovate, improve quality, and alter consumer perception. All three must work together to be effective.
Term
Task of full service Advertising agency
Definition
creative services
media services
research services
account management
Term
Creative
Definition
create campaigns, create Copy & Visualizations. Enhance equity, sales volume, market share, and profits. Often are not good enough to stand out
Term
Media​
Definition
Selecting the best ad media for clients target market. Achieve ad objectives and budgets. Where, how often, and when to advertise.
Term
Research
Definition
Study clients’ customers: buying habits, purchase preferences, and ad responsiveness. “Focus Groups, Mail surveys”
Term
Account Management
Definition
Link agency with their client. Act as liaisons. Executives and supervisors also help to create schedules, secure new business, and develop strategies.
Term
Invest​
Definition
Justified only if the revenue from the advertising is more than the actual cost of advertising. It should also raise brand awareness and perception of consumers in the market should be positively affected. Enhance brand equity
Term
Disinvest​
Definition
During high performance times or during recessions. Reduction in advertising is common during a period where a product or brand is doing well. This holds true to disinvest if volume/price of product is not adversely affected.
Term
Invest or Disinvest
Definition
disinvest is better in the short run because every dollar not spent is a dollar in pocket, Although it does not directly effect revenue it is more reliable than maintaining or increasing ad expenditures that will increase profit
Term
Benefits of online advertising
Definition
Individualization- Individuals control the flow.
nteractivity- users select info relevant to them.
Immediate publishing- ads in real time no constraints.
Cost efficient
Term
(SEA)​
Definition
Placing online ads on web pages that show results from search engine queries. Ads match “keywords” on engines like google, yahoo and yelp based on the users search. Words that are linked as keywords to this ad will result in the ad being displayed.
Term
Content
Definition
advertisers choose specific websites rather than keywords. That typically would intrigue users of these websites based off of online surfer behavior
Term
Keywords
Definition
specific words and short phrases that describe the nature, attributes, and benefits.
Term
Click Through Rates (CTR)
Definition
Internet users, clicking through banners ads, and then is directed to banner ad sites. Only 0.3% click through to the advertiser’s website.
Term
Banner Advertising
Definition
B2B has a higher CTR than B2C. Higher CTR’s for prominent well-known brands. Banners ads are regulated by the IAB and must be formatted to one of the 7 banner ad format sizes. They are a staple of online advertising are static ads that somewhat appear analogous to print ads
Term
video advertising
Definition
the fastest growing form of online advertising, includes episodes
Term
Blog
Definition
Digital communities, mostly comprised of like mindedness can exchange views on topics and often on brands. This builds brand awareness and gives companies
an opportunity to exchange with customers and protect their brands. This especially true if there are specific blogs made for the brand or by the brand/product.
Term
Podcasts
Definition
Audio version of blogs. Consumers subscribe to podcasts. Advertisers buy ad time in these podcasts and target consumers who share similar lifestyles based on podcast content
Term
True meaning and function of mobile advertising
Definition
It is meant to be interactive between consumers and advertisers.
2015 4 Billion phones in world or 67% of the world’s population. It is regarded as the most exciting and creative online advertising format. It can enhance brand awareness, loyalty, customer satisfaction, sales promotions. Is the medium in which companies are testing new marking ideas.
Term
Cons of Mobile Advertising
Definition
Can be view as an invasion of privacy it can be antithetical
Term
Pro's of Social media
Definition
Flexibility, reach options, consumer engagement, 2-way dialogue, integration and ability to drive traffic. Improved metrics and research, and cost effective
Term
Con's of social Media
Definition
Privacy/Censorship, lost productivity, addiction, fatigue, meaningless comments/Babble, hackers & fraud, dealing with negative or viral comments
Term
2 main Social Medias
Definition
Facebook,Twitter
Term
Facebook
Definition
developed in 2003 by Mark Zuckerberg a Harvard student.
In 2012 Facebook filed for an IPO estimated value at 50-125 billion. Profit went up 65% in the last year. Revenue includes online games and ad revenue.81% of current users are outside of the United States
Term
Twitter
Definition
Established in 2006.
Is an online social network and micro-blogging service
500 million users initially was for the age range 35-54
most people on twitter follow celebrities
Term
Major primary concerns associated with social media brands
Definition
notice, consent, access, security
Term
Direct response advertising​
Definition
involves the use of any of several media to transmit messages that encourage buyers to purchase directly from the advisor. Direct mail, and other media outlets such as TV online websites . It makes a definite offer, contains necessary information for prospects to make a decision, and includes a response device (Coupons, phone #, website links) to facilitate immediate action by the consumer
Term
Direct Marketing
Definition
is an interactive system of marketing which uses one or more advertising media to effect a measurable response and or transaction at any location.
Involves interactive marketing in that it entails personalized communications.
It is easier to measure typically more immediate responses than mass media, and can be tracked to specific customers
Term
Data Base Marketing
Definition
Process in which companies collect information on consumers, analyze is to predict who will buy it and then develop tailored marketing messages to those consumers. Past Purchase details, behavior, demographics, geographic and physiological components are considered. Used to establish long term communication.
Better the data base=better direct marketing
Term
Purpose of a Database
Definition
Enables contact with present or prospective customers who can be accessed by companies whose databases contain direct mail, and e-mail addresses along with other demographic info. Thus trying to create individual relationships with each prospective customer.
Term
Database provides for the firm
Definition
direct advertising to indivuduals who represent the best prospect for the company, varied messages to different groups, create long term relationships, enhance advertising productivity, calculate lifetime value of a customer
Term
Underlying Assumptions behind lifetime value analysis
Definition
each current or prospective customer is view as a long term asset. It is the net present value (NVP)of the profit that a company stands to realize on the average new customer during a given year.
Term
5 ways to augment lifetime value
Definition
increase the retention rate
increase the referral rate
enhance the average purchase volume per customer
cut direct cost
reduce marketin communication costs
Term
Underlying purpose of data mining
Definition
Discover hidden facts contained in the data base. Revealing relations among the variables contained in a database to better target prospective customers, develop cooperative marketing relations with other companies and otherwise better understand who buys what, when and how often. Segregate companies customer’s lists by: Recently, Frequency and monetary value.
Term
Major Function of Advergaming
Definition
Reaches a difficult to reach consumer group of young men. Provides and excellent advertising medium. The marketers either customize a game or incorporate a brand into existing games. The producers of video games now pursue tie ins with brand marketers
Supporting users have an ad free experience!