Student Resources
Study Guide: Advertising Services
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ad click The action when an Internet user
clicks on a display ad to get more information.
ad click rate The number of ad clicks relative
to the number of ad views.
ad views The number of times a display ad
appears on a page an Internet user is viewing.
ad layout A rough draft that shows the general
arrangement and appearance of a finished print advertisement.
advertising Any paid form of nonpersonal
presentation and promotion of ideas, goods, or services by an identified
sponsor.
advertising agencies
Companies that work jointly with business clients to develop advertising
campaigns.
advertising campaign The creation and
coordination of a series of advertisements (both broadcast and print) around
a particular theme to promote a product.
advertising proof Prepared by a newspaper or
magazine to show exactly how an ad will appear in print.
affordability method A method for determining
an advertising budget by spending what money is available.
agate line A unit of measurement in newspapers
that equals 1/14th of an inch.
bait advertising
An advertisement that uses false pretenses to entice customers.
bandwidth A measure of the amount of data that
can be transferred through a given Internet connection.
banner ad A wide shallow rectangle at the top
or bottom of a Web page that provides a link to the advertiser's Web page.
billboard Outdoor advertising in the form of
large, standardized posters.
bleed An ad that runs to the edge of the
paper, not surrounded by white space.
brand A name, term,
design, or symbol (or combination of them) that identifies a business or
organization and their products.
brand mark The part of the brand that is a
symbol or design.
brand name The word, group of words, letters,
or numbers representing a brand that can be spoken.
broadcast media Advertising that uses radio
and television.
broadside A direct-mail advertisement printed
on large, newspaper-size paper.
catalog
A popular multi-page printed brochure showing the products offered by a
manufacturer or seller.
circulation The number of copies of a
newspaper or magazine that are produced on a regular basis.
co-branding strategy A branding strategy that
combines one or more brands to increase customer loyalty and sales for each
individual brand.
communication The process of exchanging
information, ideas, and feelings.
competitive parity method A method for
determining an advertising budget by matching advertising spending to what a
competitor is spending.
concentrated marketing
strategy A strategy in which a company tries to reach only a single
target market.
cookie A piece of code in an online
advertisement that tracks where a visitor goes and what links they follow in
a Web site.
cooperative advertising A cost-sharing
arrangement whereby both a supplier and a local advertiser pay for
advertising.
copy The selling message in a written
advertisement.
cost per thousand (CPM) The media cost of
exposing 1,000 readers to an ad.
coverage area The area
in which an advertiser's message may be seen.
database A collection or file
of related information about a specific topic.
demographics Statistics that describe a
population in terms of personal characteristics.
desktop publishing A computer software program
that aids in graphic design and page layout.
differentiated marketing strategy A strategy
in which a company tries to reach only its target markets.
direct mail
Advertisements sent through the mail, usually to targeted recipients.
domain
name The unique name that identifies a
Web site, such as mc-graw-hill.com.
dummy A rough layout of a direct mail piece
that shows the finished size, color, shape, and organization of the piece,
particularly for a multi-page instrument.
e-commerce The buying and
selling of goods through the Internet.
educational copy Advertising copy that is
written to educate the audience about the product or service.
emotional blocks
Biases against the opinions expressed by the sender that prevent a person
from understanding a message.
emotional motive A feeling experienced by a
customer through association with a product.
esteem need A person's need to feel that they
are worthwhile.
e-tailing Retailers selling products to
customers over the Internet.
Federal Trade Commission (FTC)
A federal regulatory body, sometimes called the watchdog of the advertising
industry, that enforces laws related to advertising.
focal point The area
of an advertisement to which the eye is drawn.
Food, Drug, and Cosmetic Act A law that
prohibits false or misleading information on product labels.
full page An advertisement that covers a full
page of a newspaper or magazine, with no text on the page.
full position A premium space in newspaper
advertising in which an ad is run at the top of the column, with editorial
on one side, or with editorial on the top and side of the ad.
Generation X The more than 40
million Americans born between 1965 and 1976.
Generation Y The 77
million Americans born between 1977 and 1997.
geographics Segmentation of the market based
on where people live.
GIF Graphics interchange format; the standard
format for graphics in Internet pages.
goods Products you can touch or hold in your
hand.
headline The part of an
advertisement that gets the readers' attention, arouses their interest by
providing a benefit, and leads them to read the rest of the ad.
home page The first
page of a Web site.
host A computer that holds information or
software used by other computers on a network or the Internet.
house organ A newsletter produced by a company
to send to its customers.
HTML Hyper text markup language; the standard
programming language for creating Web pages.
http Hyper text transfer protocol; the
Internet's standard method for transferring data from a server to a computer
via a web browser.
illustration
The photograph or drawing used in a print advertisement.
impression A single viewing of a Web page.
industrial ad An advertisement placed by a
business aimed at other businesses or commercial buyers.
institutional advertising Advertising that
attempts to create a favorable impression and goodwill for a business or an
organization.
interior display Any display inside a store
created to increase interest in the store's products.
IP address A unique
numerical address assigned to every computer on the Internet.
ISP Internet service provider; a company that
provides consumers access to the Internet.
java A programming language
that enables the creation of dynamic content.
jingle A short, catchy song played as part of
an advertisement.
JPEG The standard format for photographs on
Web pages.
Lanham Act
A law passed in 1946 that established procedures for protecting trademarks.
layout The blueprint for a printed
advertisement that shows where the headline, illustration, copy, and logo
will appear.
leader An item priced just above cost to lure
customers.
leaflet A printed sheet that is printed,
folded, and mailed as part of a direct mail campaign or handed to customers.
local radio advertising Advertising done by a
local business for its target market.
loss leader An item
priced at cost to draw customers into a store.
love and belonging need A person's need to
feel that they are loved and are part of a group.
Magnuson-Moss Act A law passed
in 1975 that created requirements for warranties.
manufacturer brand A brand owned and initiated
by a manufacturer; also called a producer brand.
market All potential customers who share
common needs and wants, and who have the ability and willingness to buy the
product.
market position A
business's relative standing in relation to its competitors.
market research The systematic gathering,
recording, analyzing, and presentation of information related to marketing
goods and services.
market segmentation A way of analyzing a
market by specific characteristics in order to create a target market.
market share A company's percentage of the
total sales volume generated by all competitors in given market.
marketing The process of developing,
promoting, and distributing products to satisfy customers' needs and wants.
marketing concept
Businesses must satisfy customers' needs and wants in order to make a
profit.
marketing information system A set of
procedures and methods that regularly generates, stores, analyzes, and
distributes marketing information for use in making marketing decisions.
marketing mix Four basic marketing strategies,
collectively known as the four Ps-product, place, price, and promotion.
marketing niche An area in which a company is
a specialist, a very specific form of target marketing.
marketing research The marketing function that
links the consumer, customer, and public to the market through information.
marketplace Wherever
two or more people agree to buy and sell a product.
media The agencies, means, or instruments used
to convey advertising messages to the public.
media concentration theory The idea that for
an advertising message to be effective, it must be continually carried
before the public.
media research
Marketing research that focuses
on issues of media selection and frequency.
message The idea that an advertiser wants to
convey through an advertisement.
monologue A
conversational type of advertising copy.
national advertiser A company
that advertises to attract customers all over the country, including
manufacturers whose products are sold nationwide, and retailers with stores
nationwide.
national spot radio advertising Radio
advertising by national firms to advertise on a local station-by-station
basis.
network radio advertising An ad broadcast from
a studio to all affiliated radio stations throughout the country.
next reading position (NR) A newspaper
advertising position in which the ad is placed next to editorial copy.
objective-and-task method A method of determining an advertising
budget based on a company's objectives and the tasks required to meet them.
one-price policy Pricing policy in which all
customers are charged the same price for goods and services.
online advertising Advertising messages on the
Internet.
outdoor advertising Any form of advertising
visible in the outdoors, such as billboards, transit cards, and even sky
writing by airplanes.
outdoor showings An advertising rate quoted by
outdoor advertisers based on how much of the market will see the
advertisement.
paste-up A layout of a completed ad, with all
elements in their final position, but without color.
percentage-of-sales method A method for
determining an advertising budget based on a company's sales.
penetration pricing A pricing policy that sets
a very low initial price for a new product.
personal selling
Any form of direct contact
occurring between a salesperson and a customer.
physiological needs A person's most basic
needs: food, shelter, and clothing.
pica One-sixth of an
inch.
point-of-purchase display A product display
near a cash register or checkstand designed to encourage impulse buying,
usually provided by the manufacturer.
point-of-sale research A form of research that
combines natural observation with personal interviews in which people
explain their buying behavior.
positioning Creating perceptions for consumers
about what a product is and what it does.
premium Merchandise that is given away either
for free or with a small charge with a purchase.
presentation software
Software applications used to create slide shows or multimedia
presentations.
press conference A meeting in which a business
or organization invites media members to hear an announcement about a
newsworthy event.
press kit A folder containing articles, news
releases, feature stories, and photographs about a company, product, or
person.
prestige pricing Setting higher-than-average
prices to suggest status and prestige to the consumer.
price competition Competition that focuses on
the sale price of a product.
price discrimination A
practice in which a firm charges different prices to similar customers in
similar situations.
price fixing An illegal practice in which
competitors agree on certain price ranges within which they set their own
prices.
price lining A pricing technique in which a
store to offer all merchandise in a given category at certain prices, such
as $10 and $20.
price The value of money (or its equivalent)
placed on a good or service.
primary data Data obtained for the first time
and used specifically for the particular problem or issue under study.
print media Written
advertising that may be included in everything from newspapers and magazines
to direct mail, signs, and billboards.
product depth The number of product items
offered within each product line.
product features Basic, physical, or extended
attributes of the product or purchase.
product item A specific model, brand, or size
of a product within a product line.
product life cycle The stages that a product
goes through during its life: introduction, growth, maturity, and decline.
product line A group
of closely related products that are manufactured or sold by a business.
product mix All of the different products that
a company makes or sells.
product modification An alteration in a
company's existing product.
product planning Making decisions about the
features that are needed to sell a business's products, services, or ideas.
product promotion Communication used by a
business to convince potential customers to buy a specific product.
product research
Marketing research focused on evaluating product design, package design,
product usage, and consumer acceptance of new and existing products.
product width The number of different product
lines a business manufactures or sells.
production costs The amount paid for studio
facilities, cameras, and recording equipment for an advertisement.
promotion Any form of communication a business
or organization uses to inform, persuade, or remind customers.
promotional advertising Advertising designed
to increase sales of a specific product or service.
promotional mix A
combination of the different types of promotion.
promotional pricing A psychological pricing
technique generally used in conjunction with sales promotions when prices
are lower than average.
promotional tie-ins Sales promotional
arrangements between one or more retailers or manufacturers.
psychographics Market segmentation based on
social and psychological characteristics.
psychological pricing A pricing technique that
creates an illusion for customers or that makes shopping easier for them.
publicity A specific
kind of public relations that involves placing positive and newsworthy
information about a business, its products, or its policies in the media.
pull policy A promotion policy designed to
build strong consumer demand for a product. p>puller
A phrase on the outside of a direct mail piece that encourages the receiver
to open the envelope and read the contents.
push policy A promotion policy aimed at
markets with the intention of getting retailers to stock a product in order
to build supply in the marketplace.
retail advertiser A store that
advertises to attract customers within its selling area.
retailers Businesses
that buy goods from wholesalers or manufacturers and resell them to
customers.
Robinson-Patman Act A law passed in 1936 that
regulates advertising allowances and discounts, providing protection for
small retailers.
rough layout A first draft of an advertisement
in the exact size of the final ad, designed to give an advertiser a sense
for what the final ad will look like.
run-of-paper (ROP) Describes a newspaper ad
that can be run anywhere in the paper, at the newspaper's discretion.
safety need A person's need to
be safe from harm.
sales letter A form of
direct mail in which an advertiser sends a letter to a potential customer.
search engine A Web site that allows Internet
users to search for other Web sites.
secondary data Data that have already been
collected for some purpose other than the current study.
selective distribution A form of distribution
in which a limited number of outlets in a given geographic area sell the
product.
self-actualization need A person's need to
become the person they are capable of being.
sense-appeal copy
Describes advertising copy that appeals to one of the five senses.
sequence The order in which the eye will see
the elements of an advertisement.
server A computer that holds information
accessible via the Internet or on a private computer network.
service A kind of product that you can't
physically touch; tasks performed for a customer.
signature Logotype (logo) symbol used to
distinctly identify a business.
slogan A catch phrase
or small group of words that are combined in a special way to identify a
product or company.
slotting allowance A cash premium paid by the
manufacturer to a retail chain for the costs involved in placing a new
product on its shelves.
social marketing
A marketing message designed
to promote a social concern or political idea as well as a product.
specialty media Relatively inexpensive, useful
items with an advertiser's name printed on them, such as pens and keychains.
standard advertising unit (SAU) A standard
unit of measurement used by newspapers to quote advertising rates.
story-form copy A type
of advertising copy in which the advertising message is presented as a
story.
storyboard A set of sketches that present the
ideas, images, and script for a television advertisement.
synergistic Describes advertising functions,
or advertising efforts, by more than one company that work together for
greater benefit.
tabloid A small newspaper that
opens like a book, printed on paper that is usually 10 by 14 inches, often
containing seedy content.
talent costs The amount paid for actors or
announcers in an advertisement.
target marketing
Focusing all marketing decisions on a very specific group of people a
business wants to reach.
telemarketing The process of selling over the
telephone.
test marketing A type of marketing research
that occurs when a new product is placed in one or more selected geographic
areas to gauge customer response.
thumbnail
sketch A simple drawing, usually
quite small, that shows the basic elements of a print advertisement.
trade name A name that identifies a company or
a division of a particular corporation.
trade show An event at
which companies in related businesses gather to showcase their products and
services to other businesses and sometimes the public.
trademark A brand name, brand mark, trade
name, trade character, or a combination of these, that is given legal
protection by the federal government.
trading area The geographical area from which
a business draws its customers.
transit advertising Any advertising that
appears on the interior or exterior of buses, taxicabs, subway cars, and
other public transportation.
undifferentiated marketing strategy
A strategy in which a company tries to reach all customers without regard
for market segmentation.
unfair practices acts
Laws passed by most states that outlaw certain unfair business practices,
such as bait-and-switch advertising.
visual merchandising
The
coordination of all the physical elements in a place of business that are
used to project the right image to its customers.
Wheeler-Lea Act A law passed
in 1938 to broaden the powers of the Federal Trade Commission in relation to
advertising with regard to unfair and deceptive practices.
white space
The area of a print advertisement
that is left blank in order to capture attention.
window display A display of merchandise in the
front windows of a retail store.
zapper
A person who
continually changes the TV channel with the remote control.
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