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gross impressions: The total of all the audiences delivered by a media plan.
gross rating points (GRPs): The total audience delivery or weight of a specific media schedule. It is computed by dividing the total number of impressions by the size of the target population and multiplying by 100, or by multiplying the reach, expressed as a percentage of the population, by the average frequency. In television, gross rating points are the total rating points achieved by a particular media schedule over a specific period. For example, a weekly schedule of five commercials with an average household rating of 20 would yield 100 GRPs. In outdoor advertising, a 100 gross rating point showing (also called a number 100 showing) covers a market fully by reaching 9 out of 10 adults daily over a 30- day period.
corrective advertising: May be required by the FTC for a period of time to explain and correct offending ads.
cease-and-desist order: May be issued by the FTC if an advertiser won't sign a consent decree; prohibits further use of an ad.
Federal Communications Commission (FCC): Federal regulatory body with jurisdiction over radio, television, telephone, and telegraph industries. Through its licensing authority, the ___has indirect control over broadcast advertising.
Federal Trade Commission (FTC): The major federal regulator of advertising used to promote products sold in interstate commerce.
local advertising: Advertising by businesses within a city or county directed toward customers within the same geographical area.
national advertising: Advertising used by companies that market their products, goods, or services in several geographic regions or throughout the country.
brand development index (BDI): The percentage of a brand's total sales in an area divided by the total population in the area; it indicates the sales potential of a particular brand in a specific market area.
reach: The total number of different people or households exposed to an advertising schedule during a given time, usually four weeks. ____measures the unduplicated extent of audience exposure to a media vehicle and may be expressed either as a percentage of the total market or as a raw number.
category development index (CDI): The percent of a product category's total U.S. sales in an area divided by the percent of total U.S. population in the area.
frequency: The number of times the same person or household is exposed to a vehicle in a specified time span. Across a total audience, __is calculated as the average number of times individuals or homes are exposed to the vehicle.
households using TV (HUT): The percentage of homes in a given area that have one or more TV sets tuned on at any particular time. If 1,000 TV sets are in the survey area and 500 are turned on, the HUT figure is 50 percent.
share-of-market/share-of-voice method: 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.
hierarchy of needs: Maslow's theory that the lower biological or survival needs are dominant in human behavior and must be satisfied before higher, socially acquired needs become meaningful.
Elaboration Likelihood Model: A theory of how persuasion occurs due to promotion communication. Psychologists Petty, Cacioppo, and Schumann theorize that the method of persuasion depends on the consumer's level of involvement with the product and the message. When consumers have a higher level of involvement with the product or the message, they will tend to comprehend product-related information, such as product attributes and benefits or demonstrations, at deeper, more elaborate levels. This can lead to product beliefs, positive brand attitudes, and purchase intention. On the other hand, people who have low involvement with the product or the message have little or no reason to pay attention to it or to comprehend the central message of the ad. As a result, direct persuasion is also low, and consumers form few if any brand beliefs, attitudes, or purchase intentions. However, these consumers might attend to some peripheral aspects of the ad or commercialâ€”say, the pictures in the ad or the actors in a commercialâ€”for their entertainment value. And whatever they feel or think about these peripheral, nonproduct aspects might integrate into a positive attitude toward the ad. See also central route to persuasion and peripheral route to persuasion.
cognitive theory: An approach that views learning as a mental process of memory, thinking, and the rational application of knowledge to practical problem solving.
cognition: The point of awareness and comprehension of a stimulus.
theory of cognitive dissonance: The theory that people try to justify their behavior by reducing the degree to which their impressions or beliefs are inconsistent with reality.
pull strategy: Marketing, advertising, and sales promotion activities aimed at inducing trial purchase and repurchase by consumers.
position: The way in which a product is ranked in 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.
pretesting: Testing the effectiveness of an advertisement for gaps or flaws in message content before recommending it to clients, often conducted through focus groups.
secondary data: Information that has previously been collected or published.
percentage-of-sales method: 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.
Institutional advertising: A type of advertising that attempts to obtain favorable attention for the business as a whole, not for a specific product or service the store or business sells. The effects of _____ advertising are intended to be long term rather than short range.
In-house agency: Agency wholly owned by an advertiser and set up and staffed to do all the work of an independent full-service agency.
media-buying service: An organization that specializes in purchasing and packaging radio and television time.
reference groups: People we try to emulate or whose approval concerns us.
IMC planning model (Wang and Schultz): 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 constructive contact with the company/ brand through a variety of media
creative boutique: An organization of creative specialists (such as art directors, designers, and copywriters) who work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages, and specialized art. A boutique performs only the creative work.
peripheral route to persuasion: One of two ways researchers Petty, Cacioppo, and Schumann theorize that marketers can persuade consumers. People who have low involvement with the product or message have little or no reason to pay attention to it or to comprehend the central message of the ad. However, these consumers might attend to some peripheral aspects of an ad or commercial for their entertainment value. Whatever they feel or think about these peripheral, nonproduct aspects might integrate into a positive attitude toward the ad. At some later date, these ad-related meanings could be activated to form some brand attitude or purchase intention. Typical of advertising for many everyday lowinvolvement purchases such as many consumer packaged goods: soap, cereal, toothpaste, and chewing gum. See also elaborationlikelihood model.
central route to persuasion: One of two ways researchers Petty, Cacioppo, and Schumann theorize that marketers can persuade consumers. When consumers have a high level of involvement with the product or the message, they are motivated to pay attention to the central, product-related information in an ad, such as product attributes and benefits, or demonstrations of positive functional or psychological consequences; see elaboration likelihoodmodel.
perception: Our personalized way of sensing and comprehending stimuli.
North American Industry Classification System (NAICS) codes: Method used by the U.S. Department of Commerce to classify all businesses. The _ _ _ _ _ -codes are based on broad industry groups, subgroups, and detailed groups of firms in similar lines of business.
motivation: The underlying drives that stem from the conscious or unconscious needs of the consumer and contribute to the individual consumer's purchasing actions.
Product life cycle: Progressive stages in the life of a productâ€” including introduction, growth, maturity, and declineâ€”that affect the way a product is marketed and advertised.
geodemographic segmentation: Combining demographics with geographic segmentation to select target markets in advertising.
habit: An acquired or developed behavior pattern that has become nearly or completely involuntary.
push strategy: Marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers, retailers, and salespeople. Inducements might include introductory price allowances, distribution allowances, and advertising dollar allowances to stock the product and set up displays.
positioning strategy: An effective way to separate a particular brand from its competitors by associating that brand with a particular set of customer needs.
benefit segmentation: Method of segmenting consumers based on the benefits being sought.
marketing information system (MIS): A set of procedures for generating an orderly flow of pertinent information for use in making market decisions.
volume segmentation: Defining consumers as light, medium, or heavy users of products.
evoked set: The particular group of alternative goods or services a consumer considers when making a buying decision.
posttesting: Testing the effectiveness of an advertisement after it has been run.
qualitative research: Research that tries to determine market variables according to unquantifiable criteria such as attitudes, beliefs, and lifestyle.
quantitative research: Research that tries to determine market variables according to reliable, hard statistics about specific market conditions or situations.
psychographic segmentation: Method of defining consumer markets based on psychological variables including values, attitudes, personality, and lifestyle.
projective techniques: In marketing research, asking indirect questions or otherwise involving consumers in a situation where they can express feelings about the problem or product. The purpose is to get an understanding of people's underlying or subconscious feelings, attitudes, opinions, needs, and motives.
marketing strategy: The statement of how the company is going to accomplish its marketing objectives. The strategy is the total directional thrust of the company, that is, the how-to of the marketing plan, and is determined by the particular blend of the marketing mix elements (the 4 Ps) which the company can control.
Primary research: primary research is research that's tailored to a companyâ€™s particular needs. By customizing tried-and-true approaches -- focus groups, surveys, field tests, interviews or observation -- you can gain information about your target market.

advertising agency: An independent organization of creative people and businesspeople who specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers. The agency also arranges for or contracts for purchase of space and time in various media.
suppliers: People and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production.
media: A plural form of medium, referring to communications vehicles paid to present an advertisement to its target audience. Most often used to refer to radio and television networks, stations that have news reporters, and publications that carry news and advertising.
Structure of the advertising industry (major players): 1. Advertisers 2. Agency 3. Media 4. Suppliers 5. Regulators
Relevance: How relevant is what you have to offer to your prospect? If you reach a large number of prospects and follow up with them regularly but have nothing relevant to offer, your plan will produce mediocre results. Todayâ€™s clients want a more sophisticated search partner, someone who can act as a consultant and surprise the client by delivering more than what was expected. Relationship building skills now play a much bigger role in marketing success. We are in the â€œservice ageâ€ and clients want problem solvers who can help them save time, save money and increase productivity.
3 Rs of marketing: Repetition Reach Relevance The â€œThree Râ€™sâ€ can provide you with a simple compass to make sure that you stay on course when thinking about your marketing strategy. If one of the three is missing your plan will likely produce spotty results. If all three are present, you will be destined for stronger production and an ever growing client list
behavioristic segmentation: Method of determining market segments by grouping consumers into product-related groups based on their purchase behavior.
demographic segmentation: Based on a population's statistical characteristics such as sex, age, ethnicity, education, occupation, income, or other quantifiable factors
geographic segmentation: A method of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within the region.
growth stage: The period in a product life cycle that is marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases.
introductory phase: 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.
market segmentation: Strategy of identifying groups of people or 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.
marketing mix: 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.
maturity stage: That point in the product life cycle when the market has become saturated with products, the number of new customers has dwindled, and competition is most intense.
account planning: A hybrid discipline that bridges the gap between traditional research, account management, and creative direction whereby agency people represent the view of the consumer in order to better define and plan the client's advertising program.
account executive (AE): The liaison between the agency and the client. The account executive is responsible both for managing all the agency's services for the benefit of the client and for representing the agency's point of view to the client.
American Advertising Federation (AAF): A nationwide association of advertising people. The AAF helped to establish the Federal Trade Commission, and its early "vigilance" committees were the forerunners of the Better Business Bureaus.
American Association of Advertising Agencies (AAAA): The national organization of the advertising business. It has members throughout the United States and controls agency practices by denying membership to any agency judged unethical.
Association of National Advertisers (ANA): An organization composed of 400 major manufacturing and service companies that are clients of member agencies of the AAAA. These companies, which are pledged to uphold the ANA code of advertising ethics, work with the ANA through a joint Committee for Improvement of Advertising Content.
markup: A source of agency income gained by adding some amount to a supplier's bill, usually 17.65 percent.
straight-fee (retainer) method: A method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula. Under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies by some factor.
fee-commission combination: A pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned.
incentive system: A form of compensation in which the agency shares in the client's success when a campaign attains specific, agreed-upon goals.
Product differentiation: is the modification of a product to make it more attractive to the target market. This involves differentiating it from competitors' products as well as one's own product offerings. In economics, successful product differentiation leads to monopolistic competition and is inconsistent with the conditions for perfect competition, which include the requirement that the products of competing firms should be perfect substitutes.
deceptive advertising: According to the FTC, any ad in which there is a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment.
comparative advertising: Advertising that claims superiority to competitors in some aspect.
consent decree: A document advertisers sign, without admitting any wrongdoing, in which they agree to stop objectionable advertising.
Nielsen Net Ratings: Nielsen//NetRatings is the global standard for Internet audience measurement and premier source for online advertising intelligence, enabling clients to make informed business decisions regarding their Internet and digital strategies. The Nielsen//NetRatings portfolio includes panel-based and site-centric Internet audience measurement services, online advertising intelligence, user lifestyle and demographic data,e-commerce and transaction metrics, and custom data, research and analysis
Tracking studies: Tracking studies are shorter, focused surveys that are conducted on a regular basis to measure the trends that are taking placeâ€”trends that may include customer awareness, behaviors, and purchase plans
attitude test: A type of posttest that usually seeks to measure the effectiveness of an advertising campaign in creating a favorable image for a company, its brand, or its products.
recall tests: Posttesting methods used to determine the extent to which an advertisement and its message have been noticed, read, or watched.
inquiry test: A form of test in which consumer responses to an ad for information or free samples are tabulated.
sales test: A useful measure of advertising effectiveness when advertising is the dominant element, or the only variable, in the company's marketing plan. ____ tests are more suited for gauging the effectiveness of campaigns than of individual ads or components of ads.
Open-ended questions: An open-ended question is designed to encourage a full, meaningful answer using the subject's own knowledge and/or feelings. It is the opposite of a closed-ended question, which encourages a short or single-word answer. Open-ended questions also tend to be more objective and less leading than closed-ended questions
The main types of closed-ended question are: Dichotomous questions â€“ these are questions with only two possible answers, e.g., Yes/No, True/False, Male/Female 2. Multiple-choice questions â€“ these are questions with a definite range of answers (typically 4 or 5), from which the respondent makes a choice. E.g.

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