Term
| Magnitude of Advertising in the USA |
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Definition
| $300B in 2010. $1,000 dollars spent on advertising per each person in the USA. 2.2 Of Gross domestic product. |
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Term
| Global Advertising spending outside USA |
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Definition
| $500B in 2010. Brazil, Russia, China, India are growing rapidly.-Fellow consumers are more likely to trust each other than advertisers |
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Term
| Advertising-to-sales Ratio- |
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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. |
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Term
| Positive effect of advertising on the economy(information) |
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Definition
Argues that by informing consumers about products benefits they become more price sensitive.
Prices are forced down because consumers create pressure on firms |
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Term
| Negative effect of advertising on the economy (market power) |
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Definition
power allows them to raise prices/charge more than they would in absent advertising.
Consumers are less price sensitive |
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Term
| How does advertising impact economy |
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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. |
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Term
| Advertising = Market Power |
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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. |
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Term
| Advertising = Information |
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Definition
| Antithesis of A=MP. Positive view on advertising. Informing consumers of information. More price sensitive, less entry barriers, prices are forced down |
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Term
| 4 Major Advertising Functions |
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Definition
Informing
Influencing
Reminding and increasing salience
Adding value |
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Term
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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 |
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Term
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Definition
Primary demand, building demand for entire product category
Secondary demand, building demand for the company's brand |
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Term
| Reminding and increasing salience |
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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. |
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Term
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Definition
| 3 basic ways. Innovate, improve quality, and alter consumer perception. All three must work together to be effective. |
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Term
| Task of full service Advertising agency |
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Definition
creative services
media services
research services
account management |
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Term
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Definition
| create campaigns, create Copy & Visualizations. Enhance equity, sales volume, market share, and profits. Often are not good enough to stand out |
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Term
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Definition
| Selecting the best ad media for clients target market. Achieve ad objectives and budgets. Where, how often, and when to advertise. |
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Term
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Definition
| Study clients’ customers: buying habits, purchase preferences, and ad responsiveness. “Focus Groups, Mail surveys” |
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Term
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Definition
| Link agency with their client. Act as liaisons. Executives and supervisors also help to create schedules, secure new business, and develop strategies. |
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Term
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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 |
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Term
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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. |
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Term
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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 |
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Term
| Benefits of online advertising |
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Definition
Individualization- Individuals control the flow.
nteractivity- users select info relevant to them.
Immediate publishing- ads in real time no constraints.
Cost efficient |
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Term
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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. |
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Term
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Definition
| advertisers choose specific websites rather than keywords. That typically would intrigue users of these websites based off of online surfer behavior |
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Term
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Definition
| specific words and short phrases that describe the nature, attributes, and benefits. |
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Term
| Click Through Rates (CTR) |
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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. |
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Term
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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 |
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Term
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Definition
| the fastest growing form of online advertising, includes episodes |
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Term
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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. |
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Term
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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 |
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Term
| True meaning and function of mobile advertising |
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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. |
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Term
| Cons of Mobile Advertising |
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Definition
| Can be view as an invasion of privacy it can be antithetical |
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Term
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Definition
| Flexibility, reach options, consumer engagement, 2-way dialogue, integration and ability to drive traffic. Improved metrics and research, and cost effective |
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Term
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Definition
| Privacy/Censorship, lost productivity, addiction, fatigue, meaningless comments/Babble, hackers & fraud, dealing with negative or viral comments |
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Term
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Definition
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Term
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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 |
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Term
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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 |
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Term
| Major primary concerns associated with social media brands |
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Definition
| notice, consent, access, security |
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Term
| Direct response advertising |
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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 |
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Term
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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 |
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Term
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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 |
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Term
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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. |
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Term
| Database provides for the firm |
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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 |
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Term
| Underlying Assumptions behind lifetime value analysis |
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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. |
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Term
| 5 ways to augment lifetime value |
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Definition
increase the retention rate
increase the referral rate
enhance the average purchase volume per customer
cut direct cost
reduce marketin communication costs |
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Term
| Underlying purpose of data mining |
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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. |
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Term
| Major Function of Advergaming |
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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 |
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