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Chapter 6_defs_first - Contemporary Advertising...

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Unformatted text preview: Contemporary Advertising Contemporary Chapter 6: Definitions Chapter Definitions The terms are given, you generate the The definitions definitions Twelfth Edition Arens, Weigold, Arens Run “slideshow” in PowerPoint to view Market Segmentation Market Strategy of identifying groups of people or Strategy organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product’s utility (p. 174) interest Behavioristic Segmentation Behavioristic Segmenting consumers by how they buy. Examples Segmenting include user status, usage rate, purchase occasion, and benefits sought (p. 174) benefits User Status User Six categories into which consumers can be placed Six which reflect varying degrees of loyalties to certain brands and products: sole users, semisole users, discount users, aware nontriers, trial/rejectors, and repertoire users (p. 174) repertoire Usage Rate Usage The extent to which consumers use a product: light, The medium, or heavy (p. 175) medium, Volume Segmentation Volume Discounts given to advertisers for purchasing print Discounts space or broadcast time in bulk quantities (p. 175) space Purchase Occasion Purchase A method of segmenting markets on the basis of method when consumers and use a good or service (p. 177) when Benefits-sought segmentation Benefits-sought Method of segmenting consumers based on the Method utilities that consumers desire in a product (p. 177) utilities Benefits Benefits The product attributes offered to customers such as The high quality, low price, status, speed, sex appeal, good taste, and so on (p. 177) good Geographic Segmentation Geographic A method of segmenting markets by geographic method regions based on the shared characteristics, needs, or wants of people within the region (p. 177) wants Demographic Segmentation Demographic Based on a population’s statistical characteristics Based such as sex, age, ethnicity, education, education, occupation, income or other quantifiable factors (p. 178) 178) Geodemographic Segmentation Geodemographic Combining demographics with geographic Combining segmentation to select target markets in advertising (p. 178) (p. Psychographic Segmentation Psychographic Method of defining consumer markets based on Method psychological variables including values, attitudes, personality and lifestyle (p. 181) personality Psychographics Psychographics The grouping of consumers into market segments on The the basis of psychological makeup – values, attitudes, personality and lifestyle (p. 181) personality Resource Axis Resource A term in the Values and Lifestyle (VALS) typology term relating to the range of psychological, physical, demographic, and material capacities that consumers can draw upon. The resource axis includes education, income, self-confidence, health, eagerness to buy and energy level (p. 181) energy Primary Motivation Primary The pattern of attitudes and activities that help people The reinforce, sustain or modify their social and selfreinforce, image. An understanding of the primary motivation image. of individuals helps advertisers promote and sell goods and services (p. 181) goods Business Markets Business Organizations that buy natural resources, component Organizations products, and services that they resell, sue to conduct their business, or use to manufacture another product (p. 184) (p. Reseller Reseller Businesses that buy products from manufacturers or Businesses wholesalers and then resell the merchandise to consumers or other buyers; also called middlemen. These businesses do not change or modify the goods before they resell them (p. 184) before North American Industry Classification System (NAICS) codes codes Method used by the US Department of Commerce to Method classifies all businesses. The NAICS codes are based on broad industry groups, subgroups, and detailed groups of firms in similar lines of business (p. 186) groups Primary Demand Trend Primary A product’s market potential in a given region or area product’s (p. 187) (p. Target Market Target The market segment or group within the market The segment toward which all marketing activities will be directed (p. 189) directed Target Marketing Process Target The sequence of activities aimed at assessing various The market segments, designating certain ones as the focus of marketing activities, and designing marketing mixes to communicate with and make sales to these targets (p. 189) to Product Concept Product The consumer’s perception of a product as a “bundle” The of utilitarian and symbolic values that satisfy functional, social, and psychological and other wants and needs. Also, as an element of the creative mix used by advertisers to develop advertising strategy, it is the bundle of product values the advertiser presents to the consumer (p. 191) to Four Ps (4Ps) Four Also called the marketing mix. Mnemonic device for Also recalling four marketing functions (p. 191) recalling Product Element Product The most important element of the marketing mix: The the good or service being offered and the values associated with it – including the way the product is designed and classified, positioned, branded and packaged (p. 191) packaged Product Life Cycle Product Progressive stages in the life of a product – including Progressive introduction, growth, maturity, and decline – that affect the way a product is marketed and advertised (p. 191) (p. Early Adopter Early Prospects who are willing to try new things (p. 191) Primary Demand Primary Consumer demand for a whole product category (p. Consumer 192) 192) Introductory Phase Introductory The initial phase of the product life cycle (also called The pioneering phase) when a new product is introduced, costs are highest and profits are lowest (p. 192) costs Pull Strategy Pull Marketing, advertising, and sales promotion activities Marketing, aimed at inducing trial purchase and repurchase by consumers (p. 192) consumers Push Strategy Push A monetary inducement for retail salespeople to push monetary the sale of particular products (p. 192) the Sales Promotion Sales A direct inducement offering extra incentives all direct along the marketing route – from manufacturers through distribution channels to customers – to accelerate the movement of the product from the producer to the consumer (p. 192) producer Growth Stage Growth The period in a product life cycle that is marked by The market expansion as more and more customers make their first purchases while others are already making their second and third purchases (p. 192) their Maturity Stage Maturity That point in the product life cycle when the market That has become saturated with products, the number of new customers has dwindled, and competition is most intense (p. 192) intense Selective Demand Selective Consumer demand for the particular advantages of Consumer one brand over another (p. 192) one Decline Stage Decline The stage in the product life cycle when sales begin The to decline to obsolescence, new technology, or changing consumer tastes (p. 193) changing Service Service A bundle of benefits that may or may not be physical, bundle that are temporary in nature, and that come from the completion of a task (p. 194) completion Equipment-Based Service Equipment-Based A service business that relies mainly on the use of service specialized equipment (p. 194) specialized People-Based Service People-Based A service that relies on the talents and skills of service individuals rather than on highly technical or specialized equipment (p. 194) specialized Position Position The way in which a product is ranked in the The consumer’s mind by the benefits it offers, by the way it is classified or differentiated from the competition, or by its relationship to certain target markets (p. 194) or Perceptible Differences Perceptible Differences between products that are visibly Differences apparent to the consumer (p. 195) apparent Hidden Differences Hidden Imperceptible but existing differences that may Imperceptible greatly affected the desirability of a product (p. 195) greatly Induced Differences Induced Distinguishing characteristics of products effected Distinguishing through unique branding, packaging, distribution, merchandising, and advertising (p. 195) merchandising, Brand Brand The combination of name, words, symbols, or design The that identifies the product and its source and distinguishes it from competing products- the fundamental differentiating device for all products (p. 195) 195) Individual Brand Individual Assigning a unique name to each product a Assigning manufacturer makes (p. 196) manufacturer Family Brand Family The marketing of various products under the same The umbrella name (p. 196) umbrella National Brand National Product brand that is marketed in several regions of Product the country (p. 196) the Private Label Private Personalized brands applied by distributors or dealers Personalized to products supplied by manufacturers. Private brands are typically sold at lower prices in large retail chain stores (p. 196) stores Licensed Brand Licensed Brand names that other companies can buy the right Brand to use (p. 196) to Brand Equity Brand The totality of what consumers, distributors, dealers The and competitors feel and think about a brand over an extended period of time; in short, it is the value of the brand’s capital (p. 196) brand’s Copy Points Copy Copywriting themes in a product’s advertising (p. Copywriting 197) 197) Price Element Price In the marketing mix, the amount charged for the In good or service – including deals, discounts, terms, warranties and so on. The factors affecting price are market demand, cost of production, distribution, competition, and corporate objectives (p. 198) competition, Distribution Channel Distribution The network of all the firms and individuals that take The title or assist in taking title, to the product as it moves from the producer to the consumer (p. 200) from Distribution Element Distribution How and where customers will buy a company’s How product; either direct or indirect distribution (p. 200) product; Direct Distribution Direct The method of marketing in which the manufacturer The ells directly to customers and use a variety of media to communicate with them directly such as through ads and catalogs (p. 200) ads Network Marketing Network A method of direct distribution in which individuals method act as independent distributors for a manufacturer or private-label marketer (p. 200) private-label Intensive Distribution Intensive A distribution strategy based on making the product distribution available to consumers at every possible location so that consumers can buy with a minimum effort (p. 201) 201) Selective Distribution Selective Strategy of limiting the distribution of a product to Strategy select outlets in order to reduce distribution and promotion costs (p. 201) promotion Cooperative Advertising Cooperative The sharing of advertising costs by the manufacturer The and the distributor or retailer. The manufacturer may repay 50 or 100 percent of the dealer’s advertising costs or some other amount based on sales (p. 202) costs Exclusive Distribution Exclusive The strategy of limiting the number of wholesalers or The retailers who can sell a product in order to gain a prestige image, maintain premium prices, or protect other dealers in a geographic region (p. 202) other Vertical Marketing System (VMS) Vertical A centrally programmed and managed system that centrally supplies or otherwise serves a group of stores or other businesses (p. 202) businesses Franchising Franchising A type of vertical marketing system in which dealers type pay a fee to operate under the guidelines and directions of the manufacturer (p. 202) directions Communication Element Communication All marketing related communications between the All seller and the buyer (p. 203) seller Communications Mix Communications A variety of marketing communications tools, variety grouped into personal and nonpersonal selling activities (p. 203) activities Personal Communication Personal Marketing activities that include all person-to-person Marketing contact with customers (p. 203) contact Nonpersonal Communication Nonpersonal Marketing activities that uses some medium as an Marketing intermediary for communication, including advertising, direct marketing, public relations, collateral materials, and sales promotion (p. 203) collateral Direct Marketing Direct A system of marketing in which companies build system their own database of customers and use a variety of media to communicate with them directly such as through ads and catalogs (p. 204) through Telemarketing Telemarketing Selling products and services by using the telephone Selling to contact prospective customers (p. 204) to Publicity Publicity The generation of news about a person, product or The service that appears in broadcast or print media (p. 204) 204) Special Events Special Scheduled meetings, parties, and demonstrations Scheduled aimed at creating awareness and understanding for a product or company (p. 204) product Collateral Materials Collateral Al the accessory nonmedia advertising materials Al prepared by manufacturers to help dealers sell a product- booklets, catalogs, brochures, films, tradeproductshow exhibits, sales kits, etc. (p. 204) Tere and Joe Zubi Tere Founders (mother and son) of one of the largest Founders multicultural agencies in the U.S. The agency, based in Coral Gables, provides minority-targeted advertising services to some of America’s top advertisers (p. 206) advertisers ...
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