M300 Chapter 15

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  1. advertising
    Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.
  2. product advertisements
    Advertisements that focus on selling a product or service; forms include pioneering (informational), competitive (persuasive), and reminder.
  3. Competitive advirtisements
    Advertising that promotes a brands specific features and benefits. Most of the time using comparative advertisements, where it compares to it's competitors. These claims most be true though
  4. Reminder advertising
    used to reinforce previous knowledge of a product. Used with reinforcement advertisements, where the ad reinforces the buyer that they made the right choice
  5. industrial advertisements
    • Advertisements designed to build goodwill or an image for an organization, rather than promote a specific product or service. Four alternative forms
    • 1. Advocacy 
    • 2. Pioneering institutional 
    • 3. Competitive instutional
    • 4. Reminder institutional
  6. Advocacy advirtisments
    form of institutional advertising.  state the position of a company on a issue. Also can be used to request action or behavior
  7. Pioneering institutional advertisments
    form of institutional advertisements are used for announcements about what a company is, what it can do, or where it is located. ("One Team, One Planet" -Bridgestone)
  8. Competitive institutional advirtisments
    s promote the advantages of one product class over another and are used in markets where different product classes  compete for the same buyers. ("Got Milk" used to go against other beverage companies)
  9. Reminder institutional advirtisments
    , simply bring the company’s name to the attention of the target market again. The Army branch of the U.S. military use this type of ad
  10. Steps to Developing an advertising program
    • 1. Identify the Target Audience
    • 2. Specify Advertising Objectives
    • 3. Setting the Advertising Budget
    • 4. Designing the Advirtisement
  11. Identifying the Target Market
    • How do you reach the target market. Who are we advertising to?
    • When and Where can we reach the target market?
  12. Specifying the Advertising Objectives
    What do we want our customers to learn? What do we want them to get from the advertisement
  13. Setting the Advertising Budget
    How much can we spend on an ad?
  14. Message Content
    • (Developing an ad) 
    • Most common appeals: Fear, sex and Humor
    • 1. Fear appeals - suggest  to the consumer can avoid negative experience if they have this product (PSA about drugs)
    • 2. sex appeals - suggest to the audience that the product will increase the attractiveness of the user. Helps create stand out advertisements but does not enhance recall
    • 3. Humorous appeal - using humor to attract customer, humor can bring attention to the product, but can wear out quickly. Can also not be as effective on a global campaign
  15. (AD DEVELOPMENT)Creating the Actual Message
    Copywriters are responsible to creating the text portion of the ad. It can be expensive. Average cost is around 354,000 dollars. Cost for one actor can be around 19,000 dollars
  16. advertising media
    • (Selecting Right Media)
    • the means by which the message is communicated to the target audience. (Newspaper, Internet, TV, etc.)
  17. reach
    is the number of different people or households exposed to an advertisement.
  18. rating
    the percentage of households in a market that are tuned to a particular TC show or radio station.
  19. frequency
    the average number of times a person in the target audience is exposed to a message or advertisement
  20. gross rating points(GPR)
    When reach (expressed as a percentage of the total market) is multiplied by frequency, an advertiser will obtain a commonly used reference number
  21. Cost per thousand(CPM)
    refers to the cost of reaching 1,000 individuals or households with the advertising message in a given medium
  22. Different Media Alternatives
    See page 382 (425 in pdf)
  23. Television
    Reaches extremely large audience; uses picture, print, sound, and motion for effect; can target specific audiences. High cost to prepare and run ads; short exposure time and perishable message; difficult to convey complex information
  24. Radio
    Low cost; can target specific local audiences; ads can be placed quickly; can use sound, humor, and intimacy effectively. No visual element, short exposure time, diffucult to convey complex messages
  25. Magazine
    Can target specific audiences; high-quality color; long life of ad; ads can be clipped and saved; can convey complex information.L ong time needed to place ad; relatively high cost; competes for attention with other magazine feature
  26. Newspaper
    Excellent coverage of local markets; ads can be placed and changed quickly; ads can be saved; quick consumer response; low cost. Ads compete for attention with other newspaper features; short life span; poor color
  27. Yellow Pages
    Excellent coverage of geographic segments; long use period; available 24 hours/365 day. Proliferation of competitive directories in many markets; difficult to keep up to date
  28. Internet
    Video and audio capabilities; animation can capture attention; ads can be interactive and link to advertiser. Animation and interactivity require large files and more time to load; effectiveness is still uncertain
  29. Outdoor
    Low cost; local market focus; high visibility; opportunity for repeat exposures. Message must be short and simple; low selectivity of audience; criticized as a traffic hazard
  30. Direct Mail
    High selectivity of audience; can contain complex information and personalized messages; high-quality graphicHigh cost per contact; poor image (junk mail)

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M300 Chapter 15
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