1. DEFINE advertisitng
    is the structured and composed nonopersonal communication of information, usually paid for and usually persuasive in nature,about products (goods,services, and ideas) by identified sponsors through various media.
  2. define goods and serivices
    • goods are objects like soap,towels
    • services are things like a cleaning service,laywers
  3. within the area of business functions, which business functions primary role is to bring in revenue?
  4. define marketing
    is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stakeholder.
  5. how dose economics influence the growth of advertising
    free enterprise system
  6. four priciples of free market economics
    • self-interest
    • complete information
    • many buyers and sellers
    • absence of externalities (social costs)
  7. define externalities
    benifit or harm caused by the sale or consumption of products to people who are involved in the transaction and didint pay for the product
  8. define marketing communications
    correct term for things like tv commecials, coupons, web sites, sales letters and so on
  9. define consumers
    people who buy products for their personal use
  10. define public service announcements (PSAs)
    ads by non profit organaztion they dont have to pay for them
  11. define products
    encompasses goods,services, and ideas
  12. define medium
    advertising reaches us through a channel of communication 
  13. define word of mouth (WOM) advertising
    when you tell someone about a product thats WOM
  14. define mass media
    (the plural of medium),newspaper,magizine, and billboards-to send their messages
  15. what the four P's of marketing mix
    • products
    • pricing
    • places
    • promoting
  16. define marketing strategy
    it helps determine who the targets of advertising should be, in what markets the advertising should appear, and what goals the advertising shouls accomplish
  17. define advertising stragtegy
    it will refine the target audience and define what response the advertiser is seeking-what audience should notice,think, and feel
  18. define branding
    to identify products and their source and differentiate them from others
  19. as a marketing tool what is advertising designed to do
    to communicate about goods and services and products to consumers to get them to buy their stuff
  20. what was the importance of the printing press in the history of advertising?
    the introduction of printing allowed facts to be established,substantiated,recored, and transported. it changed the way we lived and worked. we no longer had to rely on memories. in 1440s johannes gutenberg
  21. list all seven functions and effects of advertising
    • identify products and differenate them from others
    • communicate information about the products. its features,                     
    •        and its place of sales
    • 3. to induce consumers to try new products and to suggest reuse
    • 4. to stimulate the distribution of a product
    • 5. to increase product use
    • 6. to build value, brand preference, and loyalty
    • 7. to lower overall cost of sales
  22. define preindustrial age 
    beining of recored history and expanded till about the nineteenth century. markets got bigger so did demand and alot of people couldnt read so signs just had pictures on them.
  23. what inventations and events directly effected the growth of advertising
    • photography
    • telegraph
    • telephone
    • motion pictures
    • free mail system
    • the invention of the first ad agency
    • railroad
    • steamship
  24. define industrializing age
    • which lasted roughly until the end of world war one
    • manufactores were concerend with production
    • maketing fell to the wholesellers
    • they could get their products out past there local market
  25. define product defferentiation and why its important
    vigorously, seeking to protray their brands as different from and better than the competition by offering consumers quality, variety, and convenience. by doing this it helps to promote selling and helps to build brand loyality and prefence. it stimulates the economy
  26. define industrial age
    • started around the turn of the 20th century and lasted until 1970.
    • a period of tremendous growth and maturationof the countrys industrial base
  27. define market segmentation and why its important
    • in which marketers searched for unigue groups of people whose needs could be addressed through specialized products.
    • it was the first step which led to postioning of products 
  28. define unique selling propostion (USP) 
    • features that would differentiate it from competitive products
    • it helped to build a new way of thinking when it came to advertising. it was used over and over so consumers had trouble seeing what was unique anymore
  29. define demarketing
    means to advertise to get people to use less or stop using a product all together ( ie  tobacco)
  30. define postindustrial age
    • began around the 1980s
    • megamergers were born
    • the me generation was in play here big
    • there was huge growth more than the century before
  31. define sales promotion
    cost effective alternatives such as coupons,direct mail, and direct marketing to build sales volume.
  32. define postioning
    proved effective in seprateing a particular brand from its compeitiors by associating that brand with a particular set of needs that ranked high on the consumers priority list
  33. what impact on pricing dose advertising have 
    if you advertise and sell more  the price of the product goes down
  34. what is primary demand
    dosent matter what brand just the same catagory like= if i go to get paper towels and dont care what brand just grab one
  35. what is selective demand
    when it is for a specific brand and only that brand will do= like if i want bread and i will only take sarah lee brand
  36. define narrowcasting
    more specialized medium
  37. define global interactive age
    • its at the 21st century
    • dvrs
    • cable tv
    • satelites
    • computer technology
    • you could watch channels devoted to single types of programming
    • all these things effected advetising
  38. what inventations have led to advertising to evlove into a two way medium
    where consumers with PC'S, internet connections,DVD's. and cable TV can choose which information they access and then spend time reseaching the product information they desire
  39. what do supporters of advertising have to say about its ability to raise standerds of living, encourage press freedom and subsidize the arts
    by publicizing the  material, social, and cultural opportunities of a free enterprise society. advertising has increased productity by management and labor
  40. define puffery
    refers to exaggerated, often subjective claims that cant neccessarily be proven true or false, such as "the best" or the only way to fly."
  41. what are the standards to determine if puffery is deceptive
    if it has the potential to deceive or mislead cause harm to reasonable people
  42. under current law, what types of products claims are concered deceptive
    those that are factually false or convey a false imperssion and therefore can mislead resonable persons
  43. why are advertisers concerned with stereotypes
    because if they are not they could hurt or cause pain to a pictular type or race and do more harm then good
  44. define abundance principle
    this states that in an economy that produces more goods and services than can be consumed, advertising serves two important purposes.

     (complete information)consumers informed ot their alternatives

    (self-interest)allows companies to compete more effectively for consumer dollars
  45. define subliminal advertising
    hidden in the illustrations
  46. what impact do advertisers hope to have on peoples value system
    they hope to get us to buy buy buy even if its things we dont need
  47. what impact do consumers have over creation and use of offensive advertising
    • ultimately, the market place has veto power
    • we can boycott
  48. define ethical advertising
    means doing what the advertising and advertisiers peers believe is morally right in a given situtations.
  49. how do advertisers show social responsibility
    • they provide thousands of hours millions of dollars of pro bono     work to charitable organzations and public agencies
    • they provide scholorships,internships
    • contributions that serve the whole society
    • they regulate themselfs fairly and effectively
  50. how has the supreme court defined the right of advertisiers under the 1st amendment
    • (speech that promotes a commercial transaction)
    •       that truthful commercial speech is entitled to significant if not      full protection under the 1st amendment
  51. define privacy rights
    its illegal to use a persons likenessin an ad without the persons permission
  52. what is FTC
    • federal trade commission
    • is the major regulator of advertising for products sold in intersate commerce
    • (they enforce variety of federal antitrust and consumer protection laws that regulate works of the marketplace to elimanate acts that are unfair and deceptive)
  53. define deceptive advertising and why is it unlawful
    • any ad that contains a misrepresentation,omission, or any other practice that can mislead a significant number of reasonable consumers to their detriment.
    • its unlawful because it dosent properly represent the facts and therefore  a consumer can not make an informed decision and can not be prepared for the task at hand
  54. define unfair advertising
    occurs when a consumer is "unjustifiably injured' or there is a "violation of public policy" (such as other government statues)
  55. define comarative advertising
    to claim superiority to competitors in some aspect
  56. defien affirmative disclosure and why do we have them
    • must inform the consumer of their products limitations or deficiencies
    • so as consumers we can be safe
    • they must tell us if it is hazardous to our health or the limits of a product ( like mileage on a car)
  57. define substatantiation
    supporting data
  58. what actions can the FTC take aganst a advertiser who runs a unfair or deceptive ad
    • 1. issue a consent decree
    • 2. issue a cease-and -desist
    • 3. corrective advertising
  59. define consent decree
    is a document the advertiser signs agreeing to stop the objectionable advertising without admitting wrong doing
  60. define cease-and-desist order
    porhibiting further use of the ad
  61. define corrective advertising
    for some period os time to explain and correct offending ads
  62. define FDA food and drug administration
    is authorized by congress to enforcce the federal food, drug, and cosmetic act and serval other health laws
  63. what authority dose the FDA have to regulate food and therepeutic devices
    all prodcuts must disclose weight, contents, ingerdents it regulates words like family, mega, light, lowfat it sets standards for serving sizes and requires labels show serving size for one alongside the recommended daily value
  64. how dose the FCC have control over advertising
    • it has jurisdiction over tv, radio, satelite, cable tv
    • it regulate what it fair and morale and when and how shows and ads go out over the airwaves
    • like not showing full nudity not show ads of adult nature when kids would be up watching
  65. define trademark
    is any word,name,symbol, or device or any combination thereof adopted and used by a manufacturer to identify his goods and distinguish them from those manufactured or sold by others
  66. define patents
    a grant made by government that confers upon the creator of an invention the sole right to make, use, and sell that invention for a set period of time
  67. define copyright and what dose it protect
    is a form of protection provided to the authors of  "orginal works" or authorship," including literary,dramatic, musical, artistic, and certain other "interellectual works"
  68. what is (NARC) national advertising review council and what is its primary purpose
    its primary purpose is to promote and enforce standards or truth, accuracy, taste, morality, and social responsibility in advertising
  69. define antitrust
    opposing or intended to restrain trusts,  monopolies, or other large combinations of business and capital, especially with a view tomaintaining and promoting competition:
  70. what is the (AAAA) american association of advertising agencies
    an association of the largest advertising agencies throughout the united states. controls agency practices by denying membership to any agency judged unethical.
  71. define intellectual property
    something produced by the mind, such as original works of authorship
  72. define broadcast standards department
    it is where advertisers must submit there ads to see if they are ecceptable for print,broadcasting and so forth each network or magaizine has there own
  73. define consumerism
    social action to dramatize the rights of the buying public
  74. define consumer advocate
    groups investagate advertising complaints received from the public and those that grow out of their own research
Card Set
test 1