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Test 2 Review/Study Guide

by: Sabrina Saguin

Test 2 Review/Study Guide ADV 3008

Marketplace > University of Florida > Advertising > ADV 3008 > Test 2 Review Study Guide
Sabrina Saguin
GPA 3.8

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Principles of Advertising study guide for Test 2!
Principles of Advertising
Study Guide
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This 31 page Study Guide was uploaded by Sabrina Saguin on Thursday February 25, 2016. The Study Guide belongs to ADV 3008 at University of Florida taught by in Spring 2016. Since its upload, it has received 39 views. For similar materials see Principles of Advertising in Advertising at University of Florida.

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Date Created: 02/25/16
Chapter 7 Review 11/04/2014 ▯ Marketing Research  Not to be confused with Market Research  Identifies consumer needs & market segments  Provides the information for developing new products & marketing strategies  Enables managers to access the effectiveness of promotional activities  Useful in financial planning, economic forecasting, and quality control Market Research Information gathered about a particular market or market segment ▯ ▯ 3 R’s of Marketing RECRUITING new customers o Product attribute models to match buyers with the right products and service RETAINING current customers o Customer satisfaction studies o Databases of customer transactions may identify reasons for customer satisfaction or dissatisfaction REGAINGING lost customers o Review service records for former customers & devise some marketing action or appeal to win them back ▯ ▯ IMC Research Uncovers the information needed for making IMC decisions Systematic gathering and analysis of information to help develop or evaluate massage strategies, individual promo’s, and whole campaigns ▯ ▯ IMC Grouped into 4 Categories IMC Strategy Research o Define the product concept or assist in the selection of target markets, messages, or media vehicles Create Concept Research o Measures the target audience’s acceptance to different creative ideas at the concept stage Message Pretesting o Diagnose possible communication problems before campaign begins Message Post-testing o Enables marketers to evaluate a campaign after it runs ▯ ▯ Creative Mix ▯ Product Concept, Target Audience, Communication Media, Creative Message Product Concept o Bundles of values that encompasses both utilitarian and symbolic benefits to the consumer o IMC can shape and magnify the brand’s position and image over time  Target Audiences Selection o Important to develop a rich profile of the bran’s target markets and audiences o Markets want to know their audience through demographics, geographics, psychographics, and purchase behavior o Dominance Concept: researching which markets are most important to product sales and targeting those where it can focus its resources to achieve promotional dominance Media Selection o Develop media strategies, select media vehicles, and evaluate their results, agencies use a subset of IMC research (media research)  Media Research: gathering and analysis of information on the reach & effectiveness of media vehicles Message Element Selection o Companies hope to find promising messages by studying consumers likes and dislikes in relation to brands and products ▯ ▯ Developing Creative Concepts Helpful in determining which concepts to use Pretesting & Post-testing o IMC is one of the largest costs in company’s market budget o Companies want to know what they’re getting for their money & weather their messages are working & assurance before their ads run o Pretesting: testing the effectiveness of an advertisement for gaps or flaws in message content before recommending it to clients, often conducted through focus groups o Post-testing: (tracking) provides the marketer with useful guidelines for future advertising o Testing uses IMC $ wisely o Testing can prevent costly error, especially in judging which strategy or medium is most effective & it can give the marketer some measure of campaigns value ▯ ▯ Testing Helps Make Important Decisions with the 5 M’s Merchandise: (aka product concept) Pretest many things: package design, how a message positions the brand, or how well it communicates the products features (benefit testing)  Markets: Group of potential customers who share a common interest, need, or desire: who can use the offered good or service to some advantage; and who can afford or are willing to pay the purchase price  Motives: Emotions, desires, psychological needs, or similar impulses that may incite consumers to action outside company’s control, but he messages they create to appeal to those motives or not  Media: Marketers hold their agencies accountable for demonstrating the effectiveness of media buys ▯ ▯ Types of Media Decisions  Media Class: Broad media categories of electronic, print, outdoor, and direct mail  Media Subclass: Smaller divisions of media classes, such as a radio, TV, magazine, newspaper, etc.  Media Vehicles: Particular media programs or publications (ESPN)  Media Units: Specific units of advertising in each type of medium, such as half-page magazine ads, 30 second spots, etc. ▯ ▯ Steps in the Research Process 1. Situation Analysis & Problem Definition a. MIS (Marketing Information System): sophisticated set of procedures designed to generate a continuous, orderly flow of information for use in marking marketing decisions 2. Conducting Informal (Exploratory) Research a. Designed to explore a problem by reviewing secondary data & interviewing a few key people with the most information to share b. To learn more about the market, the competition, and the business environment, and to better define the problem i. Primary Data: Info. Gained directly from the marketplace ii. Secondary Data: Info. That has previously been collected or published  Gathering External Secondary Data o Little to no cost, from government, market research companies, trade associations, various trade publications, or computerized databases o Info. May be out of date  Using Secondary Data for International Markets o May be out dated o Research profession isn’t as sophisticated as N. America & Europe o Deals with “facts’ about foreign markets 3. Establishing Research Objectives a. Should be formulated at the beginning of any research project b. Company must be clear about what decisions it has to make that the research results will guide i. Market Share: ii. Research Objectives: who are our customers? Who are the customers of other dept. stores? Etc. ▯ ▯ 4. Conducting Primary Research a. Primary Research: collecting primary data directly from the marketplace using qualitative or quantitative metods Two Types of Primary Research o Qualitative Research: research that tries to determine market variables according to unquantifiable criteria (attitudes, beliefs, and lifestyle) o Quantitative Research: research that tries to determine market variables according to reliable hard stats about specific market conditions ▯ 5. Interpreting & Reporting Findings a. Final report must be comprehensible to the company’s managers and relevant to their needs ▯ Methods of Qualitative Research  Projective Techniques: o Asking indirect questions or otherwise involving consumers in a situation where they can express feelings about the problem or product o Purpose- to get an understanding of people’s underlying or subconscious feelings, attitudes, opinions, needs, and motives  Intensive Techniques: o Aimed at probing the deepest feelings, attitudes, and beliefs of respondents through direct questioning o Methods:  In-Depth Interview: intensive interview technique that uses carefully planned but loosely structured questions to probe respondents deeper feelings  Focus Groups: qualitative research which 4 or more people, typical of the target market are invited to a group session to discuss the product, the service or the marketing situation for an hour or more ▯ ▯ Methods of Quantitative Research  Observation Method: o Method of research used when researchers actually monitor people’s action  Ex. Universal Product Code (UPC)- identifying serious of vertical bars with a 12 digit number that adorns every consumer packaged good  Experimental Method: o A method of scientific investigation in which a researcher alters the stimulus received by a test group(s) and compares the results with those f a control group that did not receive the altered stimulus o Test Market: isolated geographic area used to introduce and test the effectiveness of a product, ad campaign, or promotional campaign, or prior to a national rollout  Survey Method: o Basic method of quantitative research. To get people’s opinions, surveys may be conducted in person, by mail, on the telephone, or via the internet ▯ ▯ Pretesting Methods  Direct Questioning: o Designed to elicit a full range of responses to the advertising. It is especially effective for testing alternative advertisements in the early stages of development  Central Location Test: o A type of pretest in which videotapes of test commercials are shown to respondents on a one-to-one basis, usually in shopping center locations  Clutter Tests: o In which commercials are grouped with noncompetitive control commercials and shown to prospective customers to measure their effectiveness in gaining attention, increasing brand awareness and comprehension, and causing attitude shifts ▯ ▯ Post-Testing Methods  Attitude Test: o Type of post-test that usually seeks to measure the effectiveness of an advertising campaign in creating a favorable attitude or evaluation for a company, its brand, or its products  Recall Tests o Used to determine the extent to which an advertisement and its message have been noticed, red, or watched  Inquiry Tests o Form of test in which consumer responses to an ad for information or free samples are tabulated  Sales Tests o Useful measure of advertising effectiveness when advertising is the dominant element, or the only variable, in the company’s marketing plan. o More suited for gauging the effectiveness of campaigns than of individual ads or components of ads  Unaided Recall ▯ ▯ Important Issues in IMC Research  Validity For a test to be valid, it must reflect the true status of the market  Reliability For a test to be reliable, it must be repeatable, producing the same result each time it is administered ▯ ▯ Sampling Methods  Universe: the entire target population  Sample: portion of the population selected by market researchers to represent the appropriate targeted population. Free trial of a product  Sample Unit: Actual individuals chosen to be surveyed or studied  Random Probability Samples: Sampling method in which every unit in the population universe is given an equal chance of being selected for the research  Nonprobability Samples: Research samples that do not provide every unit in the population with an equal chance of being included. As a result, there is no guarantee that the sample will be representative ▯ ▯ * Four most common types of questions are open-ended, dichotomous, multiple-choice, and scale. * Strategic Planning: The Marketing Plan ▯ Marketing Plan: plan that directs the company’s marketing effort.  First, it assembles all the pertinent facts about the organization, the markets it serves, and its products, services, customers, and competition.  Second, it forces the functional managers within the company to work together- product development, production, selling, advertising, credit, transportation- to focus efficiently on the customer.  Third, it sets goals and objectives to be attained within specified periods of time and lays out the precise strategies that will be used to achieve them. ▯ ** Mission Statement Short description of the organizations purpose and philosophy ▯ ▯ 1. Situation Analysis A factual statement of the organization’s current situation and how to get there. It includes relevant facts about the company’s history, growth, products & services, sales volume, share of market, competitive status, market served, distribution system, past advertising programs, results of market research studies, company capabilities, and strengths and weaknesses. o SWOT Analysis: acronym for internal strengths and weaknesses and external opportunities and threats, which represent the four categories used by advertising managers when reviewing a marketing plan.  Briefly restates the company’s current situation, reviews the target market segments, itemizes the long- and short-term marketing objectives, and cites decisions regarding market positioning and the marketing mix ▯ 2. Marketing Objectives Goals of the marketing effort that may be expressed in terms of the needs of specific target markets and specific sales objectives o Sales-Target Objectives: marketing objective that relates to a company’s sales. They should be specific as to product and market, quantified as to time and amount, and realistic. May be expressed in terms of total sales volume; sales by product, market segment, or customer type; market share; growth rate of sales volume; or gross profit o Communication Objectives: outcomes that can reasonably be associated with promotional activities, such as increases in brand recognition or awareness, increased comprehension of a brand's attributes or benefits, more positive attitudes about a brand or a more favorable image of the brand or its typical user, and stronger intentions to try or buy a brand o DAGMAR: acronym stands for Defining Advertising Goals for Measured Advertising Results. A planning tool for setting communications adjectives for a campaign  formulate objectives related to one of four outcomes:  awareness (knowing the brand exists)  comprehension (knowing about the brand's benefits or attributes)  conviction (a favorable attitude toward the brand)  action (purchasing and using the brand) ▯ 3. Marketing Strategy Statement of how the company is going to accomplish its marketing objectives. The strategy is the total directional thrust of the comaply, the how-to of the marketing plan, and is determined by the particular blend of the marketing mid (the 4 P’s), which the company can control o Selecting the Target Market o Positioning the Product o Determining the Marketing Mix ▯ ▯ 4. Marketing Tactics Precise details of a company’s marketing strategy that determine the specific short-term actions that will be used to achieve its marketing objectives Tactical Planning: Small Company “Bottom-Up” Marketing The opposite of standard, top-down marketing planning, bottom-up marketing focuses on one specific tactic and develops it into an overall strategy ▯ Bottom-Up Marketing Plan:  Marketing Results  Marketing Strategy  Marketing Tactics ▯ ▯ IMC Plan The written document that directs the company’s advertising effort. A natural outgrown of the marketing plan, it analyzes the situation, sets advertising objectives, and lays out a specific strategy from which ads and campaigns are created o The first section of the plan should summarize briefly the situation analysis and SWOT analysis, review the target market segments, itemize the long- and short-term marketing objectives, and restate decisions regarding market positioning and the marketing mix.  When setting objectives- the brand manager determines what tasks IMC must accomplish. Objectives should be realistic, specific, and measurable  Sales goals are marketing objectives, not advertising objectives  “Marketing Sells, IMC Tells”  The IMC Pyramid: o Awareness- to acquaint people with the company, product, service, and brand o Comprehension- to communicate enough information about the product, so that some % of the aware group recognizes the products purpose, image, or position, and perhaps some features o Conviction- to persuade a certain number of people to actually believe in the products value o Desire- to want the product o Action- to buy the product o PYRAMID WORKS IN 3 DIMENSIONS: time, dollars, and people ▯ ▯ Different Ways Consumers Learn about Brands  Learn-feel-do: High involvement products  DO-feel-learn: Low involvement products ▯ ▯ IMC Strategy & The Creative Mix Methodology advertisers use to achieve their advertising objectives. The strategy is determined by the particular creative mix o Creative Mix: target audience, product concept, communications media, and advertising message  Target Audience: specific group of individuals to whom the advertising message is directed  Product Concept: consumers perception of a product as a “bundle” of utilitarian and symbolic values hat satisfy functional, social, and psychological, and other wants and needs. Used by advertisers to develop advertising strategy…bundle of product values the advertiser presents  Communications Media: comprising the various methods or vehicles that will be used to transmit the advertiser’s message  Advertising Message/IMC Message: comprising what the company plans to say in its advertisements and how it plans to say it- verbally or nonverbally ▯ * Key to successful planning is INFORMATION * ▯ IMC Budgeting Approaches  Money is the motor that drives every marketing and IMC plan.  IMC—as one element of the marketing mix—is an investment in a product or brand. While IMC is often used to stimulate immediate sales, its greatest power is in its cumulative, long-range, reinforcement effect  Substantial research does support the following principles: o In consumer goods marketing, increases in market share are closely related to increases in the marketing budget. And market share is a prime indicator of profitability. o Sales normally increase with additional advertising. At some point, however, the rate of return plateaus and then declines. o Sales response to advertising may build over time, but the durability of advertising is brief, so a consistent investment is important. o Advertising expenditures below certain minimum levels have no effect on sales. o Some sales will occur even if there is no advertising. o Culture and competition impose saturation limits above which no amount of advertising can increase sales. ▯ ▯ Developing an IMC Budget (Methods)  Percentage of Sales Method: based on a % of the pervious year’s sales, the anticipated sales for the next year, or a combination of the two  Share of Market/ Share of Voice Method: funds based on determining the firm’s goads for a certain share of the market and then applying a slightly higher % of industry advertising dollars to the firm’s budget  Objective/ Task Method: (budget-buildup method) that defines objectives and how advertising is to be used to accomplish them. Three steps: defining objectives, determining strategy, and estimating the cost  Empirical Research Method: funds for advertising that uses experimentation to determine the best level of advertising expenditure. By running a series of test in diff. markets with diff. budgets, companies determine the most efficient level of expenditure ▯ Media Planning The process that directs advertising messages to the right people in the right place at the right time  Where should we advertise? (In what countries, states, or parts of town?)  Which media vehicles should we use?  When during the year should we concentrate our advertising?  How often should we run the advertising?  What opportunities are there to integrate our media advertising with other communication tools? ▯ ▯ Media Options  TV is now fragmented into network, syndicated, spot, local, and OnDemand, as well as cable.  Specialized magazines now aim at every possible population and business segment.  Even national magazines publish editions for particular regions or demographic groups  Nontraditional media—from DVD and movie advertising to interactive kiosks and even shopping carts—also expand the menu of choices  Below-the-line” (noncommissionable) activities are the fastest- growing segments at some of the large agency holding companies  the cost of exposing 1,000 people to each of the major media (called cost per thousand) rose faster than inflation  Value-added packages often employ communications vehicles outside traditional media planning, such as public relations activities, sales promotion, and direct marketing ▯ ▯ Marketing Objectives and Strategy  Convincing 25 percent of the target market during the next year of the brand's need-satisfying abilities.  Positioning the brand as a cost-effective alternative to the market leader in the minds of 30 percent of men ages 18 to 34 during the next two years.  Increasing brand preference by 8 percent in the South during the next year.  Improving the target stakeholder group's attitude toward the company's environmental efforts by at least 15 percent by campaign end. ▯ Defining Media Objectives  Audience Objectives: specific types of people the advertiser watns to reach  Distribution Objectives: where, when, and how advertising should appear (message weight, reach, frequency, and continuity) o Circulation: statistical measure of a print medium’s audience (ex. Subscription) o Readers per Copy (RPC): variable used to determine the total reach of a given print medium. Multiplied by the # of vendor and subscription sales to determined the total audience size o Message Weight: total size of the audience for a set of ads or an entire campaign o Advertising Impression: possible exposure of the advertising message to one audience member o Opportunity to See (OTS): possible exposure of an advertising message to one audience member. Effective frequency is considered to be three or more opportunities to see over a four-week period; but no magic # works for every commercial and every product o Gross Impression: total of all the audiences delivered by a media plan o Rating: % of homes or individuals exposed to an advertising medium o Television Households (TVHH): households with TV sets o Gross Rating Points (GRP): total audience delieery or weight of a specific media schedule. Dividing the total # of impressions by the size of the target population and multiplying by 100 OR Multiplying the reach (expressed as a %) by the average frequency In TV, GRP are the total rating points achieved by a particular media schedule over a specific period. o Reach: total # of DIFFERENT people or households exposed to an advertising schedule during a given time, usually 4 weeks  Effective Reach: used to describe the quality of exposure. It measures the # or % of the audience who receive enough exposures for the message to truly be received o Frequency: # of times the same person/household is exposed to a vehicle in a specified time span.  Average Frequency = Total exposures/ Audience Reach  Effective Frequency: average # of times a person must see or hear a message before it becomes effective o Continuity: duration of an advertising message or campaign over a given period of time o Advertising Response Curve: studies of this indicate that incremental response to advertising actually diminishes- rather than builds- with repeated exposure o Recency Planning: Erwin Ephron’s theory that most advertising works by influencing the brand choie of consumers who are ready to buy, SUGGESTING that CONTINUITY of advertising is MOST IMPORTANT ▯ Media Mix- 5 M’s  Markets: group of potential customers who share a common interest, need, or desire; who can use the offered good or service to some advantage; and hwo can afford or are willing to pay  Money: how much to budget and how to allocate it  Media: plural form of medium, referring to communications vehicles paid to present an advertisement to its target audience  Mechanics: dealing creatively with the available advertising media options  Methodology: overall strategy of selecting and scheduling media vehicles to achieve the desired reach, frequency, and continuity objectives ▯ ▯ Scope of the Media Plan  Domestic Markets: A media planner normally limits advertising to areas where the product is available. o Local Plan- a store serves only one town, or if a city has been chosen to test market a new product o Region Plan- may cover several adjoining metropolitan areas, an entire state or province, or several neighboring states o National Plan- advertisers who want to reach several regions or an entire country  International Markets: Foreign media can be a challenge for U.S. advertisers. While many broadcast stations are being privatized in countries as diverse as Israel and Russia, governments around the world still control many broadcast media, and some still do not permit commercials. Others limit advertising to a certain number of minutes per hour or per day.  Sales Potential and Different Markets o Brand Development Index (BDI): indicates the sales potential of a particular brand in a specific market area  BDI= % of brand sales/ Territory Population % of brand sales/ U.S. population o Category Development Index (CDI): determine the potential of the whole product category  CDI= % of category sales/ Territory Pop. % of category sales/ U.S. population o LOW BDI/ HIGH CDI: low market share, good market potential o LOW BDI/ LOW CDI: low market share, low market potential o HIGH BDI/ HIGH CDI: high market share, good market potential o HIGH BDI/ LOW CDI: high market share, monitor for sales decline ▯ * Spillover Media: foreign media aimed at a national population that are inadvertently received by a substantial number of the consumers in a neighboring country ▯ ▯ Characteristics of Media Audiences  Audience: the group of people exposed to a particular medium  Exposure Value: value of a medium determined by how well it exposes an ad to the target audience. AKA how many people an add “sees” rather than the other way around  Attention Value: the degree of attention paid to ads in particular media by those exposed to them. Relates to the advertising message and copy just as much as to the medium  Motivation Value: the medium’s ability to motivate people to act. Positive factors include prestige, good quality, reproduction, timeliness, and editorial relevance ▯ ▯ Cost Efficiency of Media Vehicles  Cost per thousand (CPM): describing the cost of reaching 1,000 people in a mediums audience. Used by media planners to compare the cost of various media vehicles o CPM= cost . # of thousands of people in the audience o EX. CPM= $5,000 . = $16.67 per thous. 300,000/ 1,000  Cost Efficiency: cost of reaching the target audience through a particular medium as opposed to the cost of reaching the medium’s total circulation  Cost per Point (CPP): used by media buyers to determine which broadcast programs are the most efficient in relation to the target audience. o CPP= cost of the show . Show’s expected rating ▯ Synergy of Mixed Media  Mixed-Media Approach: combination of advertising media vehicles in a single advertising campaign o To reach people who are unavailable through only one medium. o To provide repeat exposure in a less expensive secondary medium after attaining optimum reach in the first. o To use the intrinsic value of an additional medium to extend the creative effectiveness of the ad campaign (such as music on radio along with long copy in print media). o To deliver coupons in print media when the primary vehicle is broadcast. o To produce synergy, where the total effect is greater than the sum of its parts  Synergy: effect achieved when the sum of the parts is greater than that expected from simply adding together the individual components ▯ ▯ Methods of Scheduling Media  Continuous Schedule: advertising runs steadily with little variation  Flighting: periods of advertising are alternated with periods of no advertising at all  Pulsing: mixing continuity and flighting strategies in media scheduling  Bursting: promoting high-ticket items that require careful consideration (running the same commercial every half-hour on the same network in primetime)  Road-blocking: buying simultaneous airtime on all four TV networks  Blinking: advertiser floods the airwaves for one day on both cable and network channels to make it virtually impossible to miss the ads  ▯ The Role of the Print Media Buyer  Media Buyer: person responsible for negotiating and contracting the purchase and advertisement space and time in various media o Require creativity for developing ingenious, sophisticated ways to integrate the advertiser's print media efforts into the whole creative mix. o They should also have an understanding of the impact of new technologies on the print media. ▯ ▯ Using Magazines in the Creative Mix  Bleed: colors, type, or visuals that run all the way to the edge of the page  Cover Position: advertising space on the front inside, back inside, and back cover pages of a publication which is usually sold at a premium price  Pros of Magazine Advertising: o Flexibility o Color o Authority and believability o Permanence o Prestige o Audience selectivity o Cost efficiency o Selling power o Reader loyalty o Extensive pass-along readership o Merchandising assistance  Cons of Magazine Advertising: o Lack of immediacy o Shallow geographic coverage o Inability to deliver mass audiences at a low price o Inability to deliver high frequency o Long lead time o Heavy advertising competition o High cost per thousand o Declining circulations  Junior Unit: large magazine advertisements (60% of the page) placed in the middle of a page and surrounded by editorial material  Island Half: half-page of magazine space that is surrounded on two or more sides by editorial material. Designed to dominate a page and is therefore sold a a premium price  Insert: an ad or brochure that the advertiser prints and ships to the publisher for insertion into a magazine or newspaper  Gatefold: mag cover or page extended and folded over to fit into the mag. May be a fraction of a page of two or more pages, and it is ALWAYS sold at a premium  Custom Magazines: magazine-length ads that look like regular magazines but are created by advertisers. Sold at newsstands and produced by the same companies that publish traditional magazines ▯ Buying Magazine Space ▯ ~TERMS~  Rate Base: circulation figure on which the publisher bases its rates  Guaranteed Circulation: # of copies of a magazine that the publisher expects to sell. If this # is not reached, the publisher must give a refund to advertisers  Audit Bureau of Circulations (ABC): organization supported by advertising agencies, advertisers, and publishers that verifies circulation and other marketing data on newspapers and magazines for the benefit of its members  Circulation Audit: thorough analysis of circulation procedures, distribution outlets, and other distribution factors by a company such as the ABC  Primary Circulation: # of people who receive a publication, whether through direct purchase or subscription  Secondary (pass-along) Readership: # of people who read a publication in addition to the primary purchasers  Vertical Publications: business publications aimed at people w/in a specific industry (restaurants & institutions)  Horizontal Publications: business publications targets at people with particular job functions that cut across industry lines (purchasing magazine)  Paid Circulation: total # of copies of an average issue of a newspaper or magazine that is distributed through subscriptions and newsstand sales  Controlled Circulation: free publication mailed to a select list of people the publisher feels are in a unique position to influence the purchase of advertised products ▯ ▯ Reading Rate Cards Magazine rate cards follow a standard format. This helps advertisers determine costs, discounts, mechanical requirements, closing dates, special editions, and additional costs for features like color, inserts, bleed pages, split runs, or preferred positions.  Cover Date: date printed on the cover of a publication  On-Sale Date: date a magazine is actually issued  Closing Date: publication’s final deadline for supplying printing material for an advertisement ▯ ▯ Discounts  Frequency Discounts: In newspapers, advertisers earn this discount by running an ad repeatedly in a specific time period  Volume Discounts: discount given to advertisers for purchasing print space of broadcast time in bulk quantities ▯ ▯ Premium Rates  Geographic Editions: magazines that target geographic markets and have different rates for ads  Demographic Editions: magazines that reach readers who share a demographic trait, such as age, income level, or professional status ▯ ▯ Newspapers  Daily Newspapers: often called dailies, these newspapers are published at least five times a week, in either morning or evening editions  Weekly Newspapers: newspapers that are published once a week and characteristically serve readers in small urban or suburban areas or farm communities with exclusive emphasis on local news and advertising  Pros of Newspaper Advertising: o Mass medium o Local medium o Comprehensive in scope o Geographic selectivity o Timeliness o Credibility o Selective attention o Creative flexibility o Active medium o Permanent record o Reasonable cost  Cons of Newspaper Advertising o Lack of selectivity o Short life span o Low production quality o Clutter o Lack of control o Overlapping circulation ▯ Physical Size  Standard-size newspaper: measuring approx. 22 in. deep and 13 in. wide and divided into 6 columns  Tabloid newspaper: half as deep as standard-sized newspaper; usually about 14 inches deep and 11 in wide  Standard Advertising Unit (SAU): sizes that can be accepted by all standard-size newspapers w/out consideration of their precise format or page size. Allows advertisers to prepare one advertisement in a particular size or SAU and place it in various newspaper regardless of the format ▯ ▯ Types of Newspaper Advertising  Display Advertising: includes copy, illustrations, or photographs, headlines, coupons, and other visual components o Reading Notice: variation of a display ad designed to look like editorial matter. Law required the word “advertisement” at the top o Cooperative (Co-0p) Advertising: sharing of advertising costs by the manufacturer and the distributor or retailed  Classified Advertising: ususally arranged under subheads that describe the class of goods or theneed the ads seek to satisfy. Rates based on the # of lines the ad occupies o Classified Display Ads: ads that run in the classified section of the newspaper but have larger-sized type, photos, art boarders, abundant white space, and sometimes color  Public Notices: for a nominal fee, newspapers carry these legal changes in business, personal relationships, public govt reports, notices by private citizens and organizations, and financial reports  Preprinted Inserts: newspaper advertisements printed in advance by the advertiser and then delivered to the newspaper plant to be inserted into a specific edition. Inserted into the fold of the newspaper and look like a separate, smaller section of the paper ▯ How Advertisers Buy Newspaper Space  Rate Card: lists advertising rates, mechanical and copy requirements, deadlines, and other information.  National Rate: A newspaper advertising rate that is higher, attributed to the added costs of serving national advertisers.  Flat Rate: A standard newspaper advertising rate with no discount allowance for large or repeated space buys.  Open Rate: The highest rate for a one-time insertion in a newspaper.  Contract Rates: special rate for newspaper advertising usually offered to local advertisers who sign an annual contract for frequent or bulk-space purchases.  Bulk Discounts: Newspapers offer advertisers decreasing rates (calculated by multiplying the number of inches by the cost per inch) as they use more inches.  Frequency Discoutns: In newspapers, advertisers earn this discount by running an ad repeatedly in a specific time period.  Earned Rates: A discount applied retroactively as the volume of advertising increases through the year.  Short Rate: The rate charged to advertisers that, during the year, fail to fulfill the amount of space for which they have contracted. This is computed by determining the difference between the standard rate for the lines run and the discount rate contracted.  Combination Rates: Special newspaper advertising rates offered for placing a given ad in (1) morning and evening editions of the same newspaper; (2) two or more newspapers owned by the same publisher; or (3) two or more newspapers affiliated in a syndicate or newspaper group.  Run of Paper (ROP) Advertising Rate: A term referring to a newspaper's normal discretionary right to place a given ad on any page or in any position it desires—in other words, where space permits. Most newspapers make an effort to place an ad in the position requested by the advertiser.  Preferred Position Rate: A choice position for a newspaper or magazine ad for which a higher rate is charged.  Full Position: near the top of a page or on the top of a column next to reading matter. It is usually surrounded by editorial text and may cost the advertiser 25 to 50 percent more than ROP rates.  Split Runs: hat allows advertisers to test the comparative effectiveness of two different advertising approaches by running two different ads of identical size, but different content, in the same or different press runs on the same day.  Newspaper Association of America (NAA): The promotional arm of the American Newspaper Publishers Association and the nation's newspaper industry. Insertion Orders & Tearsheets Insertion Order: when an advertiser wants to run an advertisement. This form states the date(s) on which the ad is to run, its size, the requested position, and the rate. Proof Copy: A copy of the completed advertisement that is used to check for final errors and corrections.  Tearsheet: The printed ad cut out and sent by the publisher to the advertiser as a proof of the ad's print quality and that it was published.  ▯ The Medium of Television Broadcast TV: TV sent over airwaves opposed to over cables o VHF (very high frequency): television channels 2 through 13; about half of the U.S. commercial TV stations are VHF. o UHF (ultrahigh frequency): television channels 14 through 83; about half of the U.S. commercial TV stations are UHF. o Pros of Broadcast TV Advertising:  mass coverage  relatively low cost  some selectivity  impact  creativity  prestige  social dominance o Cons of Broadcast TV Advertising:  High production cost  High airtime cost  Limited selectivity  Brevity  Clutter  Zipping and zapping Cable TV: Television signals carried to households by cable and paid by subscription. o Around since the last 1940s o Pros of Cable TV Advertising:  Selectivity  Audience demographics  Low cost  Flexibility  Testability o o Cons of Cable TV Advertising:  Limited reach  Fragmentations  Quality  Zipping and zapping ▯ ▯ Terms Sponsorship: The presentation of a radio or TV program, or an event, or even a Web site by a sole advertiser. The advertiser is often responsible for the program content and the cost of production as well as the advertising. This is generally so costly that single sponsorships are usually limited to TV specials. Participation Basis: The basis on which most network television advertising is sold, with advertisers buying 30- or 60-second segments within the program. This allows the advertiser to spread out the budget and makes it easier to get in and out of a program without a long-term commitment. Spot Announcements: individual commercial message run between programs but having no relationship to either. Spots may be sold nationally or locally. They must be purchased by contacting individual stations directly. ▯ Syndication Inventory: commercial time Off Network Syndication: he availability of programs that originally appeared on networks to individual stations for rebroadcast. First Run Syndication: Programs produced specifically for the syndication market. Barter Syndication: Marketing of first-run television programs to local stations free or for a reduced rate because some of the ad space has been presold to national advertisers. ▯ ▯ Direct Response TV  Program Length Advertisement (PLA): A long-form television commercial that may run as long as an hour; also called an infomercial. Designated Market Areas (DMA): The geographic areas in which TV stations attract most of their viewers. Primetime: Highest level of TV viewing (8 p.m. to 11 p.m. EST). Daypart Mix: media scheduling strategy based on the TV usage levels reported by the rating services. ▯ ▯ Audience Measures Households using TV (HUT): % of homes in a given area that have one or more TV sets turned on at any particular time. Program Rating: % of TV households in an area that are tuned in to a specific program. o Rating= TVHH tuned into a specific program Total TVHH in area  Share: % of homes with TV sets in use (HUT) tuned to a specific program  Total Audience: total # of homes reached by some portion of a TV program. This figure is normally broken down to determine the distribution of the audience into demographic categories.  Audience Composition: he distribution of an audience into demographic or other categories. ▯ Buying TV Time  Avails: abbreviated term for time slots available  Cost per thousand  Cost per point  Preemption Rates: Lower TV advertising rate that stations charge when the advertiser agrees to allow the station to sell its time to another advertiser willing to pay a higher rate  Affidavit of Performance: A signed and notarized form sent by a television station to an advertiser or agency indicating what spots ran and when. It is the station's legal proof that the advertiser got what was paid for.  Makegoods: TV spots that are aired to compensate for spots that were missed or run incorrectly. ▯ Radio- ▯ George Gallup  Ran his own polling firm  “Babe Ruth of the polling profession” ▯ ▯ Samantha Avivi, Global Marketing Director at Kimberly-Clark  Daughter of advertising giant- Stan Harris  IMC was in Samantha’s blood ▯ Ken Cervantes, VP, Activation Director  Forty-Two Degrees at Media Vest  Multicultural strategy and investment for the Heineken and Tecate brands for one of the largest multicultural agencies in the country ▯ Linda Johnson Rice, President and CEO  Johnson Publishing Company  Father is founder of Johnson Publishing Company  She's licensed the Ebony brand name to American Greetings for a line of cards, and even has a home décor line and a furniture company.  Oversees a thriving cosmetics business. ▯ ▯ Joe Uva, CEO, Univison  Job is demolishing several stereotypes about the network's audience —like the one that its viewers aren't wealthy enough to matter to Madison Avenue. Or the one that Hispanic Americans who have entered the mainstream culture don't watch TV broadcasts in Spanish.


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