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Advertising Test 3 Study Guide

by: Allison Notetaker

Advertising Test 3 Study Guide MKTG4025

Marketplace > University of Cincinnati > Marketing > MKTG4025 > Advertising Test 3 Study Guide
Allison Notetaker

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About this Document

Includes list of key terms with definitions for Chapters 12, 13, 14, 15, & 16, and list of concepts to know/study.
Advertising Management
Sean Rugless
Study Guide
advertising management, Advertising, business, Marketing, advertisement, chapter 12, 13, 14, 15, 16, Test 3, advertising study guide
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This 12 page Study Guide was uploaded by Allison Notetaker on Sunday April 10, 2016. The Study Guide belongs to MKTG4025 at University of Cincinnati taught by Sean Rugless in Spring 2016. Since its upload, it has received 42 views. For similar materials see Advertising Management in Marketing at University of Cincinnati.


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Date Created: 04/10/16
Advertising Test 3 Study Guide: Key Terms: Chapter 12: Media Planning Essentials • Deal proneness: the ease with which a consumer can get a deal, know what a good deal is, operate with knowledge of what a good price would be, and know a seller’s cost • Price/cost transparency: ease with which consumers can find out the price of a product and the seller’s cost • Above-the-line promotion: traditional measured media advertising; any message broadcast to the public through conventional means such as TV, internet, radio, and magazines • Measured media: media that are closely measured to determine advertising costs and effectiveness; TV, radio, newspaper, magazines and outdoor media • Below-the-line promotion: a promotional effort that includes in-store promotions, coupons, dealer discounts, and product placement • Unmeasured media: Media less formally measured for advertising costs and effectiveness direct mail, catalogs, special events, and other ways to reach business and household consumers • Media plan: specifies the media in which advertising messages will be places to reach the desired audience • Media class: broad category of media, such as TV, radio, or newspapers • Media vehicle: a particular option for placement within a medial class; example Newsweek is a media vehicle within the magazine-media class • Media mix: the blend of different media that will be used to effectively reach the target audience • Single-source marketing service: research service that offer information not only on demographics, but also on brands, purchase frequency, prices paid, and media exposure; example BehaviorScan • Geographic scope: scope of the geographic area to be covered by advertising media • Geo-targeting: the placement of ads in geographic regions where higher purchase tendencies for a brand are evident • Reach: the number of people or households in a target audience that will be exposed to a media vehicle or schedule at least one time during a given period of time; often expressed as a percentage • Frequency: the average number of times an individual or household within a target audience is exposed to a media vehicle in a given period of time (typically a week or a month) • Effective frequency: the number of times a target audience needs to be exposed to a message before the objective of the advertisers are met- either communication objectives or sales impact • Effective reach: the number or percentage of consumers in the target audience that are exposed to an ad some minimum number of times • Message weight: the total mass of advertising delivered • Gross impressions: the sum of exposures to the entire media placement in a media plan; 2 types – potential ad impressions/opportunities (program or publication) and message impressions (exposure to ads themselves) • Between-vehicle duplication: exposure to the same advertisement in different media • Within-vehicle duplication: exposure to the same advertisement in the same media at different times • Continuity: the pattern of placement of advertisements in a media schedule • Continuous scheduling: a patter of placing ads at a steady rate over a period of time • Flighting: media scheduling strategy achieved by scheduling heavy advertising for a period of time, usually two weeks, then stopping advertising altogether for a period, only to come back with another heavy schedule • Pulsing: media scheduling strategy that combines elements from continuous and flighting techniques; advertisements are scheduled continuously in media over a period of time, but with periods or much heavier scheduling; appropriate for products sold year long but with seasonal requirements (i.e. clothing) • Forgetting function: idea that people’s forgetting is fairly predictable and seems to obey a mathematical function • Square root law: the recognition of print ads increases with the square of the illustration (size) • Context effects: how the context of the media through which an ad is presented affects consumers’ impression of the ad • Share of voice: the calculation of any one of advertiser’s brand expenditures relative to the overall spending in a category o Share of Voice = 1 brand’s advertising expenditures in a medium/ Total product category ad expenditures in a medium • Cost per thousand (CPM): the dollar cost of reaching the 1000 members of an audience using a particular medium • Cost per thousand-target market (CPM-TM): cost of media buy/targeted audience x 1000 • Cost per rating point (CPRP): $ for a program placement/program rating o CPRP = dollar cost of ad placement on a program/ Program rating • RSS (Really Simple Syndication): a channel or feed from blogs, podcasts, or other content that the computer user has linked to • Net promoter scores: essential good mentions-bad mentions • Media buying: securing the electronic media time and print media space specified in the schedule • Agency of record: the advertising agency chosen by the advertiser to purchase time and space • Upfronts: a period where the TV networks reveal their fall line-ups and pre-sell advertising on them • Media-buying service: an independent organization that specializes in buying large blocks of media time and space and reselling it to advertisers Chapter 13: Media Planning: Newspapers, Magazines, TV, and Radio Newspapers • Display advertising: newspapers; standard components used to set ad off from the news content • Co-op advertising: manufacturer pays part of the media bill when a merchant features the manufacturer’s brand in advertising • Preprinted insert: an ad delivered to the newspaper fully printed and ready for insertion into the newspaper • Free-standing inserts (FSI): coupons • Classified advertising: newspaper ads that appear as all copy messages under categories such as employment and auto • Rate card: contains info on costs, closing times, specifications, and special pages or features available in the newspaper • Column inch: unit of space 1in. deep by 1 column wide • Standard advertising unit (SAU): system for selling ad spaces • Run-of-paper (ROP): ad may appear anywhere, on any page in paper • Preferred position: ad placed in specific section • Full position: ad placed near the top of page or in the middle of editorial material • Circulation: the number of newspapers distributed each day • Paid circulation: the number of copies sold through subscriptions and newsstand distribution • Controlled circulation: the number of copies of the newspaper that are given away free • Readership: the measure of the circulation multiplied by the number of readers of a copy • Hyper-localism: provide in-depth coverage of local issues • Pay-for-inquiry advertising model: a payment scheme in which the medium gets paid by advertisers based solely on the inquiries an advertiser receives in response to an ad Magazines • Bleed page: background color runs to end of page • Gatefold ads: ads that fold out of a magazine • First cover page: front cover • Second cover page: inside front cover • Third cover page: inside back cover • Furth cover page: back cover • Double-page spreads: ads that bridge two facing pages • Space contract: establishes a rate for all ads placed in a publication • Space order: insertion order; commitment by an advertisers to ad space in a particular issue • Closing date: the date when production ready ad materials must be delivered • On-sale date: date magazine is issued to subscribers/sold in stores • Cover date: date of publication that appears on magazine • Guaranteed circulation: a stated minimum number of copies of an issue • Pass-along readership: additional number of people, other than readers who may see publication Television • Cable TV • Video on demand (VOD) • Off-network syndication: programs that were previously run in network prime time • First-sun syndication: programs developed specifically for sale to individual stations • Barter syndication: both off-network and first-run syndication shows offered free or at a reduced rate to local television stations • Satellite and closed-circuit • Narrowcasting: the development and delivery of specialized programming to well- defined audiences • Channel grazing: using a remote control to monitor programming on other channels while an ad is being played; avoid ad • V-chip: a device that can block TV programming based on rating • Digital video recorders (DVR) sponsorship: advertiser agrees to pay for the production of a TV program and for most of the ads that appear in the program • Participation: several different advertisers by commercial time during a specific TV program • Spot advertising: all TV ad time purchased from and aired through local TV stations • Dayparts: TV program times • TV Households: households that own TV • Households using TV (HUT) • Program rating: percentage of TV households in a market that are tuned to a program during a time period o Program Rating = TV households tuned to a program / Total TV households in the market • Ratings point: 1% of all the TV households in an area were tuned to the program • Share of audience: proportion of households using TV (HUT) in a specific time period that are tuned to a program o Share of audience = TV households tuned to a program / Total TV households • Direct broadcast by satellite (DBS): example Sirius Radio • Radio networks • Radio syndication • Local spot radio advertising • Avg. quarter-hour persons • Avg. quarter-hour share • Avg. quarter-hour rating • RADAR – Radio’s All Dimension Audience Research Chapter 14: Media Planning: Advertising and IBP in Digital/Interactive Media • Wi fi • WiMax – hotspots (central antenna, 25 to 35mi vs 300ft Wi-Fi) • Mi-Fi – mobile Wi-Fi; available on car or train/public transportation • Ultra broadband – move extremely large files quickly over short distance • Opt-in email: Consumer resistance is lessened by opt in consent • Spam • WWW • Surfing • Search engine • Portal: is a starting point for web access and search and channeling surfers to particular sites • Website: a collection of web pages, images, videos, and other digital content • Mas-up: the combination of one or more websites to a single site • Personal website can be created by individuals to highlight interests/lifestyle • Blog: a personal journal that is frequently updated, intended for public use, can be personal or professional • Blogger • Click-through • Types of Digital/Interactive Internet Advertising: o Paid search § Pay portal to have ad come up first in search results § Search engine optimization (SEO) o Display/Banner ads § See on side of site, click to go to advertiser’s site o Sponsorship § Sponsor creates content on site o Pop up/Pop under § Splash screen § Annoying but effective to be seen o Rich media/video and audio § Ad on YouTube, Pandora before selected video o Corporate/brand home pages o Widgets o Virtual worlds § Second life – virtual mall; simulate shopping experience o Video Games • Direct Marketing/E-commerce o Email: customized/target market, better with opt in lists o Mobile marketing: smartphone, mp3, laptop message transmission; o Virtual malls: gateway to internet storefronts • Measuring the effectiveness of digital/interactive advertising and IBP o Hits o Page views o Visits o Unique visitors – number of different people visiting a site, different IP o Web analytic software – allows for tracking of website usage o New methods – tracking behavior of a sample of “internet families” and projecting behavior to larger populations • Internet Data and click fraud o Impressions - number of times a page is viewed o Pay-per-click o Click throughs – clicking on ad and through to website o Click fraud – false generation of clicks Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media • Sales Promotion: using incentives to create a perception of greater brand value • Consumer market: induce household consumers to purchase a firm’s brand • Trade-Market: motivate distributors, wholesalers, and retailers to stock and feature a brand • Business market: cultivate buyers in large corporations who make purchase decisions • Coupon • Price-off deal: money taken off at point of sale • Premiums: offered for free or at a reduced price with the purchase of another item • Free premiums • Self-liquidating premium: example - cigarettes with t-shirt • Advertising specialties • Contest: consumer competes for prize • Sweepstakes: by chance, equal opportunity • Sampling: consumables • In-store sampling • Door-to-door sampling • Mail sampling • Newspaper sampling • On-package sampling • Mobile sampling • Trial offers: more expensive, subscriptions • Rebate: Good for manufacturers – consumer buys at perceived lower price, but few send in rebate (forget, extra work, etc); Often for large ticket items or multiple purchases • Frequency programs: continuity program; Discounts or points given to multiple purchases; example - Airlines, hotels • Push strategy: involves convincing trade channel members to “push; the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts • Pull strategy: attempts to get consumers to “pull” the product from the manufacturer through the marketing channel. The company focuses its marketing communication efforts on consumers in the hope that it stimulates interest and demand for the product at the end-user level. • Push money: manufacturer pays retailer more beforehand to place product • Merchandise allowances: products packed in regular shipments to maintain displays, sold at discount • Slotting fees: manufacturer pays retailer to maintain position on shelf; prime shelf space is at eye-level • Bill-back allowances: monetary incentives for featuring a brand in in-store displays or material; • Off-invoice allowances • Cooperative advertising • Trade Shows • Point-of-purchase (POP) advertising: materials used in the retail setting to attract shoppers’ attention to a brand to convey primary product benefit or highlight pricing information • Short-term promotional displays • Permanent long-term displays • Support media: Purpose: to reinforce or extend a message being delivered through other media; Examples - signs, billboard, posters • Riding the boards: companies send individuals to billboard site location to asses if location is desirable • Out-of-hone media advertising Outdoor Signage and billboards • Advantages: o Wide local exposure o Can be captivating o Around the clock exposure o Can address an immediate need or desire o New digital technology being used • Disadvantages: o Message limits o Location affects impact (need traffic for more exposure) o Relatively expensive Transit Ads • Urban environments • Reasonable demographic segment • Good message repetition • Timely to purchase locations • Can subtlety build brand awareness Aerial Ads • Blimps increasingly common • Common at sporting events o Lots of people to see it o Digital technology offers more creativity o Skies are getting crowded o Networks are in control ARI Cinema • On-screen and off-screen in theaters • Consumers say they are annoyed; go to theater to relax • Reasonable presence Directory Advertising • Advantages: o High acceptance o High availability o Final link to purchase • Disadvantages o Too many directories; yellow book and each telephone company o Long lead times for printed versions o Limited creativity Packaging: • Promotional benefits of packaging to the advertiser: o The package carries the brand name and logo o The package can communicate “value” o The package can communicate “image” and “quality” Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment • Madison (NYC) and vine (LA) • Chaos scenario: A mass exodus from traditional media o Dollars will leave – audience fragmentation and ad avoidance o Reduced funds from ads will compromise programming o Compromised programming will reduce audience size leading to more ad erosion o Billion of dollars will flow to other IBP techniques • Event Sponsorship: Involves a marketer providing financial support to help fund an event • Media impressions: i.e. how many times camera shows logo during ball game • Leveraging • Product Placement: placing a branded product in the context of an entertainment event/product • Authenticity: i.e. Oprah/weight watchers could endorse Coke Zero, but not regular Coke • Branded Entertainment: developing and supporting a sporting event, TV Show, theme park, short film, movie, or video game where the objective is to feature a brand to impress and connect with consumers in a unique and compelling way Things to Know: • Fundamentals of Media Planning; techniques • Advantages and disadvantages to each media type (TV, Radio, Print, etc) • Forms of IBP; Advantages and disadvantages (sales promotion, POP, Events) • The difference between advertising and sales promotion o Sales Promotion: 1. Short-term demand 2. Encourages brand switching 3. Induces trial use (vs repeat use, bargain/incentive) 4. Promotes price (consumers are price sensitive) 5. Immediate results (converts to sales quick) 6. Measurable results (ie number of coupons redeemed) o Advertising: 1. Long-term demand 2. Brand loyalty 3. Encourage repeat purchase 4. Maintains Brand Image 5. Long-term effects 6. Difficult to measure (if ads turn into sales) • The difference between branded entertainment and Product placement o More control over branded entertainment o Product placement is more for bringing awareness


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