Marketing Final Exam, Chp. 18

The next big thing in TV is online TV and online streaming. What are some companies that already participate in that?
Hulu, Netflix, Apple, Amazon
Product advertisements take what three forms?
Pioneering (informational), competitive (persuasive), reminder
What kind of advertisement would be considered Pioneering (informational)?
The kind that tells people what a product is, what it can do and where it can be found. Key is to inform the target market. Products such as Trident gum or Campbells soup.
What kind of advertisement would be considered Competitive (persuasive)?
The kind that promotes a specific brand’s features and benefits. Objective is to persuade the target audience. Products such as ads comparing prices to one company to another, like GoDaddy.
What kind of advertisement would be considered for reminder?
The kind that needs reinforcement of a product. Products like a 1800flowers.com commercial to send a reminder about Valentines Day. The products using this advertising are typically in the mature stage.
What is another type of reminder ad?
Reinforcement which Dial soap advertisement use saying “aren’t you glad you use Dial. Don’t you wish everybody did?”
What kind of advertisement build goodwill or an image for an organization rather than promote a specific good or service?
Institutional advertisements; Texaco, Pfizer, IBM are examples in the book
What are 4 alternative forms of Institutional advertisements?
Advocacy, Pioneering Institutional, Competitive Institutional, Reminder Institutional
What kind of advertisements state the position of a company on an issue?
Advocacy advertisements. Examples like Tobacco companies and Chevron’s “We Agree” campaign, or American Red Cross for blood donations.
What kind of advertisement tell us what the company is, what it can do, or where it is located?
Pioneering Institutional. This is very similar to Pioneering advertising, but focuses on companies, not products. Examples like Bayer advertising “we cure more headaches than you think”, Bridgestone, Jeep and Laundry
What kind of advertisements promote the advantages of one product class over another where different product classes compete for the same buyers?
Competitive Institutional. For example the “Got Milk” campaign is used to increase the demand for milk as it competes against other beverages.
The Reminder Institutional is much like the Reminder advertisement for products, in that it bring’s the companies name to the attention of the target market again. What is an example of Reminder Institutional?
The Army Branch of the US Military sponsors a campaign to remind potential recruits of the opportunities in the Army.
What are some examples of identifying a target audience?
Dr. pepper promoted its reduced-calorie soda to 25-34 year old men, while Kraft targeted 20-30 ear old women for its Greek Yogurt, Athenos. Gatorade introduxed the G-Series Fit placing ads on E! and mapmyfitness.com to “reach” fitness athletes who exercise regularly.
What are the most common type of advertising appeals?
Fear, sex and humor
Which advertising appeal suggests to the consumer that he or she can avoid some negative experience through the purchase and use of a product or service, a change in behavior, or a reduction in the use of a product?
Fear appeal. For example, automobile safety ads, social ads about drug and alcohol use, food producers encouraging low-carb, low-fat.
Which advertising appeal suggests to the audience that the product will increase the attractiveness of the user?
Sex appeal. For example, Bebe, Candie’s
Which advertising appeal implies either indirectly or subtly that the product is more fun or exciting than competitors’ offerings?
Humorous appeal. For example, Geico, AFLAC duck, Travelocity gnome’s
Which advertising agency was the US Agency of the Year for its creative approach to bringing “brands closer to consumers”?
Wieden + Kennedy
Examples of the Wieden + Kennedy’s advertising approach would include
“Imported from Detroit” campaign for Chrysler, “The Man Your Man Should Smell Like” campaign for Old Spice, “Curve ID” campaign for Levi’s
What popular thing can you use to advertise?
A celebrity spokesperson
Who are the top 5 celebrity spokespersons?
Tom Hanks, Morgan Freeman, Pauley Perrette, Robin Williams, Clint Eastwood.
How much would an actor get paid for a TV ad?
$17,000
What are examples of advertising media?
Newspapers, magazines, radio, TV
What is the decision for media selection based on?
The target audience, type of product, nature of the message, campaign objectives, available budget, and the costs of the alternative media
Which 3 advertising media selections account for 65% of all advertising expenditures?
Television, direct mail and newspaper
What is the number of different people or households exposed to an advertisement that advertisers try to maximize the number of individuals in the target market?
Reach, which newspapers typically use
How do TV and radio stations describe their reach term?
Rating, which is the percentage of households in a market that are tuned to a particular TV show or radio station
When advertisers want to reach the same audience more than once, they are concerned with what?
Frequency, which is the average number of times a person in the target audience is exposed to the message or advertisement.
What is the equation to get the Gross Rating Points (GRP)?
Reach times Frequency
What refers to the cost of reaching 1,000 individuals or households with the advertising message in a given medium?
Cost per thousand (CPM)
What are the advantages of Television as an advertising medium?
Reaches a large audience, use picture, print, sound and motion for effect, can target specific audiences
What are the disadvantages of Television as an advertising medium?
High cost, short exposure time, and perishable message, difficult to convey complex information.
What are the advantages of Radio as an advertising medium?
Low cost, targets specific audience, ads can be placed quickly, can use sound, humor and intamacy effectively
What are the disadvantages of Radio as an advertising medium?
No visual element, short exposure time and perishable message, difficult to convey complex info
What are the advantages of Magazines as an advertising medium?
Can target specific audiences, high-quality color, long life of ad, ads can be clipped and saved, can convey complex info
What are the disadvantages of Magazines as an advertising medium?
Long time needed to place ad, relatively high cost, competes for attention with other magazine features
What are the advantages of Newspapers as an advertising medium?
Excellent coverage of local markets, ads can be placed and changed quickly, ads can be saved, quick consumer response, low cost
What are the disadvantages of Newspaper as an advertising medium?
Ads compete for attention with other newspaper features, short life span, poor color
What are the advantages of Yellow Pages as an advertising medium?
Excellent coverage of geographic segments, long use period, available 24/7/365 days
What are the disadvantages of Yellow Pages as an advertising medium?
Proliferation of competitive directories in many markets, difficult to keep up-to-date
What are the advantages of Internet as an advertising medium?
Video and audio capability, animation can capture attention, ads can be interactive and link to advertiser
What are the disadvantages of Internet as an advertising medium?
Animation and interactivity require large files and more time to load, effectiveness is still uncertain
What are the advantages of Outdoor as an advertising medium? (example billboard)
Low cost, local market focus, high visibility, opportunity for repeat exposures
What are the disadvantages of Outdoor as an advertising medium?
Message must be short and simple, low selectivity of audience, criticized as traffic hazard
What are the advantages of Direct Mail as an advertising medium?
High selectivity of audience, can contain complex info and personalized messages, high quality graphics
What are the disadvantages of Direct Mail as an advertising medium?
High cost per contact, poor image (junk mail)
What are some of the 565 cable networks?
ESPN, MTV, Lifetime, Oxygen, the Speed Channel, History Channel, Science Channel, Food Network
What were some of the most popular infomercials during the last 12 months?
Total Gym, Sleep Number, Nutrisystem, Oreck Air
Which infomercial was the most successful ever produced?
An infomercial run by President Obama attracted 33.5 million viewers
Who mostly still listens to the radio?
18-24 year olds, averaging 12.5 hours a week
Which magazine has the highest circulation?
AARP magazine with a circulation of 22.4 million
What kind of internet advertising medium has interactive ads with drop-down menus, built-in games, etc?
Rich media
What are the most popular online advertising options?
Paid search, display (banner ads), classified ads, and video.
What is the fastest growing form of Internet advertising?
Paid search
Approximately 80% of all Internet traffic begins at a search engine with which 2 search engines?
Google & Yahoo!
Messages that are displayed in locations such as airports, movie theatres, health clubs, doctor offices grocery stores are called what?
Out-of-home advertising or place based media
What factors must be considered when choosing among an alternative media?
Knowing the media habits of the target audience, knowing product attributes to determine which media to use (for example, if color is an aspect of product appeal, radio would not work), and the final factor is cost.
What 3 factors must be considered when scheduling to advertise a product?
Buyer turnover, purchase frequency, forgetting rate
How often new buyers enter the market to buy the product is called what?
Buyer turnover. The higher the buyer turnover, the greater amounf of advertising is required.
The more frequently the product is purchased, the less repetition is required is called what?
Purchase frequency
The speed with which buyers forget the brand if advertising is not seen is called what?
Forgetting rate
Setting schedules for advertising requires an understanding of how the market behaves. What 3 basic approaches do most companies follow?
Continuous, steady scheduled – advertising is run at a continuous. (cereal)
Flighting (intermittent) schedule – seasonal demand. (black friday, sun tan lotion, skis)
Pulse (burst) schedule – continuous & flight combined, heavy periods of promotion, intro to a new product (super bowl, automobiles, toys)
Pretests are conducted before the advertisements are placed in any medium to determine whether the advertisement communicates the intended message. What are the pretests?
1. Portfolio Tests – test copy alternatives that consumers rate
2. Jury Tests – showing the ad copy to a jury panel and have them rate it. Unlike the portfolio test, a test advertisement is not hidden within other ads.
3. Theater Tests – the most sophisticated of pretesting. Consumer view new TV shows or movies where test commercials are also shown.
What are the 3 ways to carry out an advertising program?
Full-service agency, limited-service (specialty) agency, in-house agency
What services are provided with the full-service agency?
Provides the most complete range of services, does research, selects media, develops copy, produces artwork, also coordinated integrated campaigns with all marketing efforts. 46% of all agency clients use this approach.
What services are provided with the limited-service (specialty) agency?
Specializes in one aspect of creative process, usually provides creative production work, buys previously unpurchased media space
What services are provided with the in-house agency?
Company’s own advertising staff, provides range of services, depending on company needs
Advertisements may go through posttests after it has been shown to the target audience to determine whether it accomplished its intended purpose. What are the 5 common approaches to posttests?
Aided recall – respondents are asked whether their previous exposure to it was through reading, viewing or listening (Starch test). Unaided recall – an unexpected approach asking respondents to determine whether they saw or heard advertising messages. Attitude tests – did their attitudes change after the advertisement?. Inquiry tests – additional product info, product samples, or premiums are offered to an ad’s readers or viewers. Sales tests – controlled experiments
What kind of sales promotions are sales tools used to support a company’s advertising and personal selling?
Consumer-oriented sales promotions, or consumer promotions
What are the types of consumer-oriented sales promotions?
Coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, POS displays, rebates, product placements
What are sales tools used to support a company’s advertising and personal selling directed to wholesalers, retailers, or distributors?
Trade-oriented sales promotions, or trade promotions
What 3 common types of trade promotions are there?
Allowances and discounts, cooperative advertising, training of distributors’ salesforces
Many companies use which frequently used publicity tool that consists of announcements regarding changes in the company or the product line?
News release
Which publicity tool is used when representatives of the media are all invited to an informational meeting, and advance materials regarding the content are sent? This tool is offten used when new products are introduced or significant changes in corporate structure are being made.
News conference.
Which publicity tool is free space or time that is donated by the media?
Public Service Announcements (PSA)
Which publicity tool is used to create visibility for their companies, their products, and themselves?
High-visibility individuals. Celebrity’s and US Senators use this.
In what 2 ways can you increase the value of promotion?
Emphasize on long-term relationships and increase self-regulation