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Principles of Marketing

Key Terms

Principles of MarketingKey Terms

Key Terms

advertising
paid communication messages that identify a brand or organization and are intended to reach a large number of recipients
aided recall
a type of advertising posttest that uses cues to assist a sample audience in recalling brands and products in an advertisement
all-you-can-afford approach
advertising budget approach that ensures everything else in the organization is budgeted for and then sets aside the remaining funds for advertising
attitude tests
a type of advertising posttest that investigates the attitudes of a sample target audience toward a product or service
brand awareness
metric used to determine if audiences can recall information about a brand
brand recognition
the ability of a campaign audience to recognize and identify a specific brand
comparative advertising
type of advertising that showcases the benefits and values of one product as compared to its competitors
competitive-parity approach
advertising budget strategy that relies on setting budgets based on the expected budgets of competitors
conversion rate
the percentage of an audience that has completed a desired action
engagement
any interaction with advertising content
frequency
how many times someone is exposed to an advertisement in a given time period or how many times an advertisement is shown in a time period
impact
how quickly members of the audience receive an advertising message
impressions
quantifying how many times an advertisement appears in a medium
informative advertising
a type of advertising intended to raise awareness of a product through educational communication to increase demand of the product
inquiry test
a type of advertising posttest that runs two or more similar ads on a limited scale and determines which of the ads are most recalled by and effective for respondents
institutional advertisements
advertisements intended to create a positive image or support for an entire organization
jury tests
a form of pretesting in which the respondents discuss the advertisements that are most likely to induce a purchase
key performance indicators (KPIs)
indicators (metrics) that measure how an advertising campaign is achieving certain goals or objectives
lobbying
networking and other efforts that have the intention of influencing public policy and law
objective-and-task approach
advertising budget strategy that is based on the objectives set previously for the advertising plan
percentage-of-sales approach
advertising budget strategy that utilizes prior years’ sales or predicted year’s sales and sets a percentage of those sales aside for advertising
persuasive advertising
a type of advertising that aims to highlight the benefits of a product or service being advertised
portfolio tests
a type of advertising pretest that consists of respondents browsing through various versions of an advertisement and then being asked to recall certain details from each
press relations
efforts to establish and maintain positive relationships with those in the media by sending press releases and other stories that help to maintain a positive image of the brand
pretesting advertising
research that predicts the performance of an advertisement before it airs
product advertisements
advertisements that promote a specific product within the organization’s product mix
public affairs
efforts to influence public policy and engage with public officials and trade associations
public relations
any actions that help to create and maintain a favorable public image
publicity
notice or attention given by the media
pull strategy
advertising strategy intended to bring audiences to the product
push strategy
advertising strategy aimed at pushing the brand in front of an audience
reach
the estimated number of potential customers you can reach with an advertising campaign
reminder advertising
advertising aimed at bringing a product back into the forefront of the consumer’s mind
return on ad spend (ROAS)
metric that measures the amount of revenue earned for every dollar spent on advertising
return-on-investment (ROI) approach
advertising budget strategy that focuses on every dollar spent on advertising; a return of that dollar—plus some—is expected
sales test
a type of posttest in advertising that determines how many sales will be made based on a test market
theater tests
a form of advertising pretest in which the audience is shown advertisements—usually television ads—in the context that they would be shown to the entire market
unaided recall
a type of advertising posttest that does not use any cues or prompts to test the recollection of the advertisement message
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