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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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