Principles of Advertising Exam 1-
Graded A
The various efforts and tools companies use to initiate and maintain communication with
customers and prospects, including solicitation letters, newspaper ads, event
sponsorship, publicity, telemarketing, statement stuffers, and coupons, to mention a
few. - ANSWER-marketing communication
The structured and composed non-personal communication of information, usually paid
for and usually persuasive in nature, about products (goods, services, ideas) by
identified sponsors through various media. - ANSWER-advertising
People who buy products and services for their own, or someone else's, personal use. -
ANSWER-consumers
An advertisement servicing the public interest, often for a nonprofit organization, carried
by the media at no charge. - ANSWER-public service announcements (PSA's)
The plan a that directs the company's marketing effort. - ANSWER-marketing plan
A factual statement of the organization's current situation and how it got there. -
ANSWER-situation analysis (also called situational analysis)
After assessing a companies situation, the writer of a marketing plan prepares an
analysis that identifies the brand's or product's strengths, weaknesses, opportunities,
and threats. - ANSWER-SWOT analysis (also see 7-B, p. 183)
The association of a brand's features and benefits with a particular set of customer
needs, clearly differentiating it from the competition in the mind of the customer. -
ANSWER-positioning
Creating, maintaining, and enhancing long-term relationships with customers and other
stakeholders that result in exchanges of information and other things of mutual value. -
ANSWER-relationship marketing
The process of building and reinforcing mutually profitable relationships with employees,
customers, other stakeholders, and the general public by developing and coordinating a
strategic communications program that enables them to make consecutive contact with
the company/brand through a variety of media. - ANSWER-integrated marketing
communications (IMC)
, A document that helps media planners determine how messages will be delivered to
consumers. It defines the target audience, the communication objectives that must be
achieved, and the characteristics of the media that will be used for delivery of the
messages. - ANSWER-media strategy (p. 193)
A method of advertising budget allocation based on a percentage of the previous year's
sales, the anticipated sales for the next year, or a combination of the two. - ANSWER-
percentage-of-sales method (budgeting methods)
A method of allocating advertising funds based on determining the firm's goals for a
certain share of the market and then applying a slightly higher percentage of industry
advertising dollars to the firm's budget. - ANSWER-share-of-market/share-of-voice
method (budgeting methods)
A method of determining advertising allocations, also referred to as the budget-buildup
method, that defines objectives and how advertising is to be used to accomplish them. It
has three steps: defining the objectives, determining the strategy, and estimating the
cost. - ANSWER-objective/task method (budgeting methods)
Identifying groups of people with certain shared needs and characteristics and
aggregating these groups into larger market segments according to their interest in the
product's utility. This will result in market segments large enough to target and
reachable through a suitable mix of marketing activities--including advertising. -
ANSWER-market segmentation
The market segment or group within the market segment toward which all marketing
activities will be directed. - ANSWER-target market
The specific group of individuals to whom the advertising message is directed. -
ANSWER-target audience
The particular product attributes offered to customers, such as high quality, low price,
status, speed, sex appeal, good taste, and so on. - ANSWER-benefits
Statistical data relating to the population and particular groups within it. - ANSWER-
demographics
The grouping of consumers into market segments on the basis of psychological
makeup--values, attitudes, personality and lifestyle. - ANSWER-psychographics
Four elements, called the 4Ps (product, price, place, and promotion) that every
company has the option of adding, subtracting, or modifying in order to create a desired
marketing strategy. - ANSWER-marketing mix
Graded A
The various efforts and tools companies use to initiate and maintain communication with
customers and prospects, including solicitation letters, newspaper ads, event
sponsorship, publicity, telemarketing, statement stuffers, and coupons, to mention a
few. - ANSWER-marketing communication
The structured and composed non-personal communication of information, usually paid
for and usually persuasive in nature, about products (goods, services, ideas) by
identified sponsors through various media. - ANSWER-advertising
People who buy products and services for their own, or someone else's, personal use. -
ANSWER-consumers
An advertisement servicing the public interest, often for a nonprofit organization, carried
by the media at no charge. - ANSWER-public service announcements (PSA's)
The plan a that directs the company's marketing effort. - ANSWER-marketing plan
A factual statement of the organization's current situation and how it got there. -
ANSWER-situation analysis (also called situational analysis)
After assessing a companies situation, the writer of a marketing plan prepares an
analysis that identifies the brand's or product's strengths, weaknesses, opportunities,
and threats. - ANSWER-SWOT analysis (also see 7-B, p. 183)
The association of a brand's features and benefits with a particular set of customer
needs, clearly differentiating it from the competition in the mind of the customer. -
ANSWER-positioning
Creating, maintaining, and enhancing long-term relationships with customers and other
stakeholders that result in exchanges of information and other things of mutual value. -
ANSWER-relationship marketing
The process of building and reinforcing mutually profitable relationships with employees,
customers, other stakeholders, and the general public by developing and coordinating a
strategic communications program that enables them to make consecutive contact with
the company/brand through a variety of media. - ANSWER-integrated marketing
communications (IMC)
, A document that helps media planners determine how messages will be delivered to
consumers. It defines the target audience, the communication objectives that must be
achieved, and the characteristics of the media that will be used for delivery of the
messages. - ANSWER-media strategy (p. 193)
A method of advertising budget allocation based on a percentage of the previous year's
sales, the anticipated sales for the next year, or a combination of the two. - ANSWER-
percentage-of-sales method (budgeting methods)
A method of allocating advertising funds based on determining the firm's goals for a
certain share of the market and then applying a slightly higher percentage of industry
advertising dollars to the firm's budget. - ANSWER-share-of-market/share-of-voice
method (budgeting methods)
A method of determining advertising allocations, also referred to as the budget-buildup
method, that defines objectives and how advertising is to be used to accomplish them. It
has three steps: defining the objectives, determining the strategy, and estimating the
cost. - ANSWER-objective/task method (budgeting methods)
Identifying groups of people with certain shared needs and characteristics and
aggregating these groups into larger market segments according to their interest in the
product's utility. This will result in market segments large enough to target and
reachable through a suitable mix of marketing activities--including advertising. -
ANSWER-market segmentation
The market segment or group within the market segment toward which all marketing
activities will be directed. - ANSWER-target market
The specific group of individuals to whom the advertising message is directed. -
ANSWER-target audience
The particular product attributes offered to customers, such as high quality, low price,
status, speed, sex appeal, good taste, and so on. - ANSWER-benefits
Statistical data relating to the population and particular groups within it. - ANSWER-
demographics
The grouping of consumers into market segments on the basis of psychological
makeup--values, attitudes, personality and lifestyle. - ANSWER-psychographics
Four elements, called the 4Ps (product, price, place, and promotion) that every
company has the option of adding, subtracting, or modifying in order to create a desired
marketing strategy. - ANSWER-marketing mix
