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Chapter 18 - Advertising, Sales Promotion, and Public Relations

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Term
Definition
Advertising   any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor  
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Consumer-Oriented Sales Promotions   sales tools used to support a company's advertising and personal selling directed to ultimate consumers (also called consumer promotions)  
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Cooperative Advertising   advertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products  
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Cost Per Thousand (CPM)   the cost of reaching 1000 individuals or households with the advertising message in a given medium (M is the Roman Numeral for 1000)  
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Frequency   the average number of times a person in the target audience is exposed to a message or an advertisement  
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Full-Service Agency   an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production  
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Gross Rating Points (GRPs)   a reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency  
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Infomercials   Program-length (30-minute) advertisements that take an educational approach to communication with potential customers  
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In-House Agencies   consist of the company's own advertising staff, who may provide full services or a limited range of services  
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Institutional Advertisements   advertisements designed to build goodwill or an image for an organization rather than promote a specific good or service  
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Limited-Service Agencies   advertising agencies that specialize in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media space, or providing Internet services  
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Posttests   tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose  
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Pretests   tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement  
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Product Advertisements   advertisements that focus on selling a good or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder  
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Product Placement   a consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product  
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Publicity Tools   methods of obtaining nonpersonal presentation of an organization, good, or service without direct cost, such as news releases, news conferences, and public service announcements  
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Rating   the percentage of households in a market that are tuned to a particular TV show or radio station  
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Reach   the number of different people or households exposed to an advertisement  
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Trade-Oriented Sales Promotion   sales tools used to support a company's advertising and personal selling directed to wholesalers, distributors, or retailers (also called trade promotions)  
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